XINJIANG TIANYE(SH:600075) Zheng Quan Zhi Xing·2025-09-05 09:16Core Viewpoint - Xinjiang Tianye Co., Ltd. has been approved to publicly issue convertible bonds totaling up to RMB 3 billion, with significant terms and conditions outlined for investors [3][15]. Summary by Sections Approval Status - The issuance of convertible bonds has been approved by the China Securities Regulatory Commission, allowing Xinjiang Tianye to issue up to RMB 3 billion [3]. Key Terms of the Convertible Bonds - The total amount of the convertible bonds to be issued is RMB 3 billion, consisting of 30 million bonds with a face value of RMB 100 each [3]. - The bonds will have a maturity period of 6 years, from June 23, 2022, to June 22, 2028 [3]. - The interest rates for the bonds are structured as follows: 0.20% for the first year, 0.40% for the second year, 0.60% for the third year, 1.50% for the fourth year, 1.80% for the fifth year, and 2.00% for the sixth year [3][4]. Interest Payment and Conversion - Interest will be paid annually, with the first payment occurring one year after the issuance date [4]. - The initial conversion price for the bonds is set at RMB 6.90 per share, subject to adjustments based on specific corporate actions [5][6]. Price Adjustment Mechanism - The conversion price can be adjusted downward under certain conditions, such as stock dividends or capital increases, ensuring the protection of bondholders' interests [7][8]. - The company has the authority to propose adjustments to the conversion price if the stock price falls below 85% of the current conversion price for a specified period [8][9]. Redemption and Buyback Provisions - The bonds can be redeemed at 108% of the face value within five trading days after maturity if not converted [10]. - Conditional redemption can occur if the stock price exceeds 130% of the conversion price for a specified period or if the remaining balance of the bonds is less than RMB 30 million [10]. Additional Buyback Rights - Bondholders have the right to sell back their bonds at face value plus accrued interest if there are significant changes in the use of raised funds [11]. - In the last two interest years, if the stock price falls below 70% of the conversion price, bondholders can sell back their bonds under specified conditions [11][12]. Corporate Governance and Bondholder Meetings - The company must convene bondholder meetings under certain circumstances, such as changes to the bond issuance terms or failure to pay interest [13]. - Proposals for meetings can be initiated by the board or by bondholders holding a significant portion of the bonds [13]. Credit Rating - The bonds have been rated AA+ by China Chengxin International Credit Rating Co., Ltd., indicating a stable outlook for the issuer [13].