Group 1 - The company held its fifth board meeting on June 16, 2025, where it was confirmed that the stock price had fallen below 85% of the conversion price for 15 out of the last 30 trading days, triggering the downward adjustment clause for the "Rida Convertible Bonds" [1] - The board proposed to lower the conversion price of the "Rida Convertible Bonds" to enhance investment value and optimize the capital structure, while protecting the interests of bondholders [2] - The board's proposal will be submitted for approval at the upcoming third extraordinary general meeting of shareholders scheduled for July 2, 2025 [4] Group 2 - The board meeting reached a unanimous decision with 7 votes in favor and no opposition or abstentions regarding the proposal to adjust the conversion price [3] - The company plans to establish a futures business department in Guangzhou, with the management authorized to determine the specific plan and submit the application according to regulatory requirements [3]

Core Viewpoint - The company anticipates triggering the condition for a downward adjustment of the conversion price of its convertible bonds due to the stock price being below 85% of the current conversion price for 10 consecutive trading days [1][4]. Group 1: Convertible Bond Basic Information - The company issued a total of 980 million yuan (98,000 million) in convertible bonds on March 13, 2025, with a maturity of 6 years and an initial conversion price of 18.29 yuan per share [1][2]. - The conversion period for the bonds is from September 19, 2025, to March 12, 2031 [2]. Group 2: Conversion Price Adjustment Conditions - The conversion price can be adjusted downward if the stock price is below 85% of the current conversion price for at least 15 out of 30 consecutive trading days [3][4]. - The adjusted conversion price must not be lower than the average trading price of the stock for the 20 trading days prior to the shareholders' meeting [3]. Group 3: Anticipated Trigger for Price Adjustment - From April 29, 2025, to June 13, 2025, the company's stock price has been below 15.50 yuan per share, which is 85% of the current conversion price, indicating a likely trigger for the price adjustment [4][5]. - If the adjustment condition is triggered, the board of directors will propose a downward adjustment plan to be voted on at the shareholders' meeting [4].

Core Viewpoint - The company has decided not to adjust the conversion price of its convertible bonds despite triggering the downward adjustment clause due to stock prices falling below 85% of the current conversion price [4][5]. Group 1: Convertible Bond Issuance - The company issued 2.8 million convertible bonds with a total value of 280 million yuan, approved by the China Securities Regulatory Commission [1]. - The bonds were listed on the Shenzhen Stock Exchange on February 10, 2023, under the name "声迅转债" and code "127080" [2]. Group 2: Conversion Price Adjustments - The initial conversion price was set at 29.34 yuan per share, which was adjusted to 29.14 yuan following a cash dividend distribution of 0.2 yuan per share [2][3]. - A further adjustment will take the conversion price down to 28.94 yuan per share effective from June 4, 2024 [3]. Group 3: Downward Adjustment Clause - The downward adjustment clause is triggered if the stock price is below 85% of the conversion price for at least 15 out of 30 consecutive trading days [4]. - The board has the authority to propose a downward adjustment, which requires a two-thirds majority approval from shareholders [4]. Group 4: Decision on Adjustment - As of May 27, 2025, the stock price had triggered the downward adjustment clause, but the board decided not to proceed with the adjustment [5]. - The company will reassess the situation if the clause is triggered again after May 28, 2025 [5].