Xinjiang Tianrun Dairy (SH:600419) Zheng Quan Zhi Xing·2025-08-15 16:24Core Viewpoint - Xinjiang Tianrun Dairy Co., Ltd. has decided not to exercise the early redemption rights of its convertible bonds, known as "Tianrun Convertible Bonds," despite triggering the conditional redemption clause due to stock price performance [2][3][4]. Group 1: Convertible Bond Issuance and Terms - The company issued 9.9 million convertible bonds with a total value of 990 million yuan, maturing in six years with a tiered interest rate starting from 0.30% in the first year to 2.00% in the sixth year [3][4]. - The conversion price for the bonds was adjusted to 8.28 yuan per share as of June 27, 2025, due to the company's equity distribution [4][5]. - The conditional redemption clause allows the company to redeem the bonds if the stock price remains above 10.76 yuan (130% of the conversion price) for at least 15 trading days within a 30-day period [4][6]. Group 2: Decision on Early Redemption - The company's board of directors, in a meeting held on August 15, 2025, unanimously decided not to exercise the early redemption rights for the "Tianrun Convertible Bonds," citing confidence in the company's future prospects and market conditions [2][3][7]. - The company will not exercise the early redemption rights for the next three months, with a review planned if the redemption conditions are triggered again after November 15, 2025 [3][8]. Group 3: Shareholder Activity - The actual controller and major shareholders of the company have reduced their holdings of the convertible bonds prior to the redemption conditions being met, with the largest shareholder reducing their holdings from 3,078,900 to 1,066,070 bonds [7]. - The major shareholder has committed to comply with legal regulations regarding any future reductions in bond holdings [7]. Group 4: Regulatory Compliance - The underwriting institution, CITIC Securities, confirmed that the decision not to redeem the bonds early was made following necessary procedures and complies with relevant regulations and the terms outlined in the offering prospectus [7][8].