Zhong Guo Zheng Quan Bao - Zhong Zheng Wang·2026-02-24 22:35Core Viewpoint - The equity change is due to the conversion of convertible bonds, resulting in a dilution of the controlling shareholder's stake without affecting the number of shares held [2][3]. Group 1: Convertible Bond Issuance - The company issued 13.75 million convertible bonds with a total value of 137.5 million yuan, approved by the China Securities Regulatory Commission [4]. - The bonds began trading on the Shanghai Stock Exchange on August 14, 2023, under the name "Zhonghe Convertible Bonds" with a code of "110094" [4]. - The latest conversion price for the bonds is set at 6.65 yuan per share, with the conversion period starting from January 24, 2024 [4]. Group 2: Equity Change Details - The total share capital of the company will increase from 1,403,713,211 shares to 1,434,954,521 shares due to the bond conversion, leading to a passive dilution of the controlling shareholder's stake from 36.81% to 36.00% [5]. - This equity change does not trigger a mandatory tender offer and will not alter the controlling shareholder or actual controller of the company [3][6]. Group 3: Governance and Future Considerations - The equity change will not affect the company's governance structure or ongoing operations, as the controlling shareholder remains TBEA Co., Ltd., and the actual controller is Mr. Zhang Xin [6]. - The decision of bondholders to convert their bonds into shares remains uncertain, and any future equity changes will be disclosed in accordance with regulations [6].