Report Industry Investment Rating - No relevant content provided Core View of the Report - From the beginning of 2025 to September 19, the convertible bond market performed slightly worse than the equity market. The current valuation of convertible bonds is relatively high, and adjustments are ongoing. In the long - term, convertible bonds are still relatively high - quality assets, but one needs to focus on the structure [1][3] Summary by Related Catalogs Market行情 - From September 15 to 19, 2025, the CSI Convertible Bond Index decreased by 1.5% (last week it was +0.4%), and the CSI All - Share Index changed by -0.2% (last week it was +2.1%). Since the beginning of 2025, the CSI Convertible Bond Index has increased by 14.2%, and the CSI All - Share Index has increased by 21.0% [1] - By rating, high - rated bonds (AA+ and above), medium - rated bonds (AA), and low - rated bonds (AA - and below) decreased by 1.68%, 1.06%, and 1.22% respectively this week, with high - rated bonds having the largest decline [1] - By convertible bond size, large - scale convertible bonds (bond balance > 5 billion yuan), medium - scale convertible bonds (balance between 500 million and 5 billion yuan), and small - scale convertible bonds (balance < 500 million yuan) decreased by 1.98%, 1.33%, and 1.20% respectively this week, with large - scale convertible bonds having the largest decline [1] - By conversion parity, ultra - high - parity bonds (conversion value > 130 yuan), high - parity bonds (conversion value between 110 and 130 yuan), medium - parity bonds (conversion value between 90 and 110 yuan), low - parity bonds (conversion value between 70 and 90 yuan), and ultra - low - parity bonds (conversion value < 70 yuan) decreased by 0.20%, 2.03%, 1.36%, 1.54%, and 1.57% respectively this week, with ultra - high - parity bonds having the smallest decline [2] Current Convertible Bond Valuation Levels - As of September 19, 2025, there were 432 outstanding convertible bonds (437 at the end of last week), with a balance of 599.191 billion yuan (607.826 billion yuan at the end of last week) [2] - The average convertible bond price was 130.41 yuan (132.0 yuan last week), with a percentile of 98.3% - The average convertible bond parity was 105.51 yuan (105.10 yuan last week), with a percentile of 95.5% - The average conversion premium rate of convertible bonds was 25.2% (26.0% last week), with a percentile of 47.0%. The conversion premium rate of medium - parity convertible bonds (conversion value between 90 and 110 yuan) was 28.1% (28.8% last week), higher than the median of the conversion premium rate of medium - parity convertible bonds since 2018 (20.3%) [2] Convertible Bond Performance and Allocation Direction - The CSI Convertible Bond Index is still in the adjustment phase. In the long - term, convertible bonds are relatively high - quality assets, but the current overall valuation level is high, so one needs to focus on the structure [3] Convertible Bond Gain Situation - The top 15 convertible bonds in terms of gains this week include Jingxing Convertible Bond, Hengshuai Convertible Bond, etc. Each bond has different positive stock gains and corresponding convertible bond gains [21]

Core Viewpoint - Huaxiang Co., Ltd. plans to issue convertible bonds to unspecified investors, aiming to raise up to RMB 1.30752 billion for core component capacity enhancement, supply chain extension, working capital, and debt repayment [1][2]. Group 1: Convertible Bond Issuance - The convertible bonds will have a face value of RMB 100.00 each and a term of six years from the issuance date [1]. - The initial conversion price will be determined based on the average trading price of the company's stock over the 20 trading days prior to the announcement and the previous trading day [1]. - The issuance will be prioritized for existing shareholders, who may waive their preemptive rights [3]. Group 2: Fund Utilization - The total investment for the core component capacity enhancement and supply chain extension project is RMB 1.4126192 billion, with RMB 1.30752 billion expected to be raised from the bond issuance [3]. - Specific projects include: - Smart home component capacity enhancement: RMB 553.0858 million [3] - Automotive component capacity enhancement: RMB 448.1075 million [3] - Engineering machinery component upgrade: RMB 161.426 million [3] - An additional RMB 250 million will be allocated for working capital and debt repayment [3]. Group 3: Previous Fundraising Activities - In a previous issuance, Huaxiang raised RMB 800 million through 8 million convertible bonds, with a net amount of RMB 786.51 million after fees [4]. - The company has a history of fundraising, including a stock issuance in 2020 that raised RMB 416 million, with a net amount of RMB 365 million [6]. Group 4: Financial Performance - For the first half of 2025, the company reported revenue of RMB 1.976 billion, a year-on-year increase of 2.38% [8]. - The net profit attributable to shareholders was RMB 290 million, reflecting a 25.66% increase compared to the previous year [8]. - The net cash flow from operating activities was negative RMB 176 million, a decrease of 169.25% year-on-year [8].

Core Viewpoint - The article discusses recent developments in various companies and convertible bonds, highlighting share reduction plans, technology contracts, and new stock listings. Group 1: Share Reduction and Convertible Bonds - The actual controller of Fuchun Dyeing and Weaving and its concerted actors plan to reduce their holdings by no more than 1% of the company's shares [1] - Lu Shan Convertible Bond is subject to strong redemption [1][2] - Song Sheng Convertible Bond will not undergo strong redemption [1][2] - Jiu Qiang Convertible Bond and Yang Feng Convertible Bond will not be adjusted [1][2] Group 2: Technology Contracts and New Listings - Fengshan Group signed a technology development contract with Tsinghua University for sodium-ion battery electrolyte and solid-state lithium-ion battery electrolyte projects [1] - New stocks from Yunhan Chip City and Ruili Kemi are available for subscription on the Shanghai and Shenzhen stock exchanges [1]

Group 1: Major Projects Review and Outlook - The "14th Five-Year Plan" has established 102 major projects as key measures to stabilize the economy, and the "15th Five-Year Plan" is expected to continue focusing on five categories: livelihood, technology + industry, infrastructure, ecological construction, and safety engineering [3] - New projects during the "15th Five-Year Plan" will particularly emphasize water conservancy infrastructure, technology integration, and urban renewal [3] Group 2: Convertible Bond Market Analysis - As of September 12, 2025, the pricing deviation indicator for the convertible bond market is at 5.27%, which is at the 99.3 percentile level since 2018, indicating high volatility in valuations [4] - The report suggests that investors aiming for absolute returns should consider reducing their positions in equity-linked convertible bonds to mitigate potential market downturns [4] Group 3: Company Analysis - Core International - Core International (300662.SZ) is a leading enterprise in the human services industry, with a focus on AI and international expansion as new growth points [5] - The company has established a comprehensive ecosystem through technology investment, including its own AI model and the industrial interconnection platform "He Wa," covering recruitment, flexible employment, and other services [5] - Revenue projections for Core International are estimated at 15.09 billion, 18.93 billion, and 22.82 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 300 million, 370 million, and 430 million yuan [5]

1. Report Industry Investment Rating The document does not mention the industry investment rating. 2. Core Viewpoints of the Report - The convertible bond index leads the market, while the science - innovation bond index and the benchmark market - making credit bond index continue to decline with negative stage returns. Convertible bond - related ETFs lead the gains, and short - term financing ETFs achieve positive returns in the current period, while the current yields of other credit bond ETFs are negative [2][8]. - The second batch of science - innovation bond ETFs are being issued. The issuance of bond index sample bonds in the primary market shows differentiation, and the trading volume of convertible bond - related index component bonds is the largest in the secondary market [2][23]. - Looking ahead, the equity market is favored in the long term. Although convertible bond - related ETFs may fluctuate in the short term, they are still favored in the long term. It is recommended to pay attention to Convertible Bond ETF (511380.SH) and CSI Short - Term Financing (511360.SH) [48]. 3. Summary by Relevant Catalogs Market Conditions - **Bond Index Market Conditions**: The convertible bond index outperforms, with the CSI Convertible Bond and Exchangeable Bond Index and the Shanghai Investment - Grade Convertible Bond and Exchangeable Bond Index rising 1.02% and 0.54% respectively in the past two weeks, and 15.81% and 11.32% year - to - date. Most pure - bond indices decline due to market volatility and the stock - bond seesaw effect [8]. - **Bond ETF Market Conditions**: Convertible bond - related ETFs lead the gains, with Convertible Bond ETF (511380.SH) and Shanghai Convertible Bond ETF (511180.SH) rising 0.89% and 0.44% respectively. Short - term financing ETF (511360.SH) gets a positive return of 0.04%. Most credit bond ETFs are in a discount state, indicating weak market sentiment [10]. - **Bond ETF Unit Net Value**: The unit net value of convertible bond - related ETFs shows an upward - fluctuating trend, not falling below 13 yuan in the past two weeks. The net value of science - innovation bond - related ETFs fluctuates downward, and that of benchmark market - making credit bond ETFs also declines [13]. - **Bond ETF Fund Flows**: Short - term financing ETFs have continuous net inflows. The subscription scale of Convertible Bond ETF (511380.SH) and Shanghai Convertible Bond ETF (511180.SH) decreases by 7.26 billion yuan. The trading volumes of science - innovation bond ETFs and short - term financing ETFs are relatively large, and the turnover rates of some science - innovation bond ETFs are high [16]. Credit Bond ETF Overview - Convertible Bond ETF (511380.SH) and Short - Term Financing ETF (511360.SH) have scales exceeding 60 billion yuan. The growth rate of science - innovation bond - related ETFs slows down, with a scale of 123.646 billion yuan. The scale of benchmark market - making credit bond ETFs ranks first, at 124.602 billion yuan [20]. - The annualized yields of Convertible Bond ETF (511380.SH) and Shanghai Convertible Bond ETF (511180.SH) are 25.38% and 18.24% respectively. The highest annualized yield among pure - bond ETFs is 1.53% for Short - Term Financing ETF (511360.SH), and all science - innovation bond - related ETFs have negative annualized yields since July [20]. Credit Bond ETF Application, Issuance, and Dynamics On August 20, fourteen fund companies collectively submitted 14 science - innovation bond ETFs for the second batch, which were approved on September 8 and issued on September 12, tracking high - credit - rating science - innovation bond indices [23]. Primary Market - **Primary Issuance of Important Bond Index Sample Bonds**: Short - term financing and Shanghai market - making corporate bonds have the largest issuance volume and scale, at 69.163 billion yuan and 65.424 billion yuan respectively. The weighted average coupon rate of Shanghai Urban Investment Bond Index sample bonds is 2.34%, ranking first [27]. - **Primary Issuance of Important Bond Index Sample Bonds This Year**: In early September, the issuance of Shanghai Urban Investment Bond Index sample bonds accelerated, with most sample bonds having higher issuance rates and shorter terms. The issuance of important bond index sample bonds slowed down, but the issuance scale of Shanghai Urban Investment Bond sample bonds was close to that of last month, while the issuance scale of CSI Short - Term Financing sample bonds was only 22.91% of last month [28]. Secondary Market - **Trading of Important Bond Index Component Bonds**: The trading volume of convertible bond - related index component bonds is the largest, with a total of 926.721 billion yuan for the CSI Convertible Bond and Exchangeable Bond Index and the Shanghai Investment - Grade Convertible Bond and Exchangeable Bond Index. The Shanghai Urban Investment Bond Index component bonds are traded at a premium, with a closing deviation of - 7.23bp [33]. - **Spreads of Important Credit Bond Indices**: The Shanghai Urban Investment Bond Index has the highest credit spread, but it is less than 36bp. The yields of several important bond indices have been rising oscillatingly, and the valuation yield of the Shanghai Urban Investment Bond Index is significantly higher than others [36]. Credit Events and Market News - **Postponed/Cancelled Bond Issuances**: In the past two weeks, 11 bonds with a planned issuance amount of 6.133 billion yuan were cancelled, including 8 for the inter - bank market and 3 for the Shanghai Stock Exchange [44]. - **Market News**: The Ministry of Finance will advance the quota of new local government debt in 2026, use the debt - resolution quota in advance, and take multiple measures to resolve existing implicit debts. As of the end of June 2025, over 60% of financing platforms have exited [45][47]. Investment Recommendations Considering the fundamentals, capital situation, and stock - bond market, it is recommended to pay attention to Convertible Bond ETF (511380.SH) and CSI Short - Term Financing (511360.SH) [48].

Core Viewpoint - The convertible bond market experienced a significant decline from late August to early September, mirroring the performance of the Shanghai Composite Index, but has shown signs of stabilization since then [1]. Market Performance - The Wind convertible bond equal-weight index reached a historical high of 242.59 points on August 26, followed by a sharp decline over eight trading days, with the largest single-day drop of 3.21% on August 27, erasing gains made since early August [1]. - As of September 11, the index closed at 233.07 points, down less than ten points from its historical high [1]. - The largest convertible bond ETF, Bosera Convertible Bond ETF, saw its scale exceed 63.2 billion yuan this year, but experienced its first net outflow since June [1]. Institutional Behavior - Institutions are showing signs of profit-taking in the fixed-income + strategy, primarily due to several listed companies redeeming their convertible bonds or converting them into stocks [2]. - The decline in institutional convertible bond scale is not necessarily negative, as it reflects profit realization rather than losses [2]. Market Dynamics - The convertible bond market has been buoyed by strong performance in the equity market, with nearly 20 billion yuan net inflow into Bosera Convertible Bond ETF this year [3]. - The recent market adjustment is attributed to high profit-taking pressure, as convertible bond prices had significantly exceeded the past decade's highs [3]. - The market is experiencing increased trading activity, although demand for allocation remains strong [3]. Future Outlook - The total remaining scale of the convertible bond market is reported to be below 610 billion yuan, with expectations of a rapid decline below 600 billion yuan due to upcoming redemptions [4]. - The market is anticipated to undergo adjustments unless there are large-scale new bond issuances within a month [4]. Specific Company Insights - Jingwang Electronics announced unusual trading fluctuations in its convertible bonds, with the "Jing 23 Convertible Bond" experiencing a cumulative price deviation of over 30% [6]. - The bond's closing price was reported at 292.577 yuan, reflecting a premium of 192.58% over its face value [6]. - The company has shown steady revenue growth, with a compound annual growth rate of 15.7% from 2020 to 2024, and a 20.93% year-on-year increase in revenue for the first half of 2025 [8]. Investment Strategy - The current high valuation of convertible bonds suggests a need for structural adjustments, with a focus on finding opportunities during equity market fluctuations [9]. - The market's potential for growth remains significant, despite recent profit-taking, as the overall scale of fixed-income + strategies surged by 240 billion yuan in the first half of the year [9].

Macro - In the first half of the year, listed companies achieved operating income of 35.01 trillion yuan, a year-on-year increase of 0.16%; net profit reached 3 trillion yuan, with a year-on-year growth of 2.54%, an increase of 4.76 percentage points compared to the previous year's full-year growth [3][4] - In August, the manufacturing PMI was 49.4%, up 0.1 percentage points month-on-month; the non-manufacturing business activity index was 50.3%, up 0.2 percentage points month-on-month; the composite PMI output index was 50.5%, up 0.3 percentage points month-on-month [3] - Several banks indicated that they continued to support the stabilization of the real estate market in the first half of the year by increasing mortgage loan issuance, with the second-hand housing loan issuance increasing by over 20% year-on-year [4] Convertible Bonds - In August, the convertible bond market continued to be active, with the convertible bond index rising by 4.32%, underperforming the overall market index which rose by 10.74% [6] - The high-priced convertible bond index outperformed low-priced and mid-priced indices, with an increase of 8.92% in August, indicating stronger performance in a rising equity market [6][9] - The dual-low strategy underperformed in a strong market, with only a 2.48% increase in August, while the high-priced low-premium strategy rose by 7.07% [9] Traditional Chinese Medicine Industry - Shouxiangu reported a 16.51% decrease in operating income to 300 million yuan in the first half of 2025, with a net profit decline of 33.99% to 65.56 million yuan [14] - The company expects performance to improve in the third quarter, as July saw a return to positive growth in revenue [15] - The company is expanding its online channels, with internet sales increasing by 15.14% year-on-year, while traditional sales channels are being enhanced through strategic partnerships [16] Innovative Drug Industry - Sanofi's half-year report showed a revenue of 4.36 billion yuan, a slight decrease of 0.8%, while net profit increased by 24.6% to 1.36 billion yuan [20] - The company is focusing on innovative therapies, with several products in clinical trials, including SSGJ-707, which has potential for significant market value [21] - Existing products are performing steadily, with a notable increase in sales in the hair loss segment, while other segments are experiencing slight fluctuations [22] Medical Equipment - Ruimait's half-year performance was strong, with a revenue of 544 million yuan, a year-on-year increase of 42.30%, and a net profit of 131 million yuan, also up 42.19% [25] - The company has improved its expense ratios significantly, with a sales expense ratio of 10.43%, down 2.24 percentage points year-on-year [26] - The rebranding to "Ruimait" is expected to enhance brand value and market penetration, aligning the company's identity with its core products [28]

Core Viewpoint - The company experienced a significant decline in revenue and net profit in the first half of 2025, primarily due to reduced downstream demand in the industry, leading to lower rental rates and increased fixed costs impacting profitability [2]. Group 1: Financial Performance - In the first half of 2025, the company achieved an operating income of 590 million yuan, a decrease of 19.80% compared to the same period last year [2]. - The net profit attributable to shareholders was -12 million yuan, representing a decline of 109.20% year-on-year [2]. - Financial expenses decreased by 14.46% compared to the previous year, attributed to the repayment of bank loans and a reduction in borrowing rates [3]. Group 2: Debt and Cash Flow Management - The company issued a total of 670 million yuan in convertible bonds on July 17, 2020, which will mature on July 16, 2026 [4]. - As of the reporting period, the company had a cash balance of 614.82 million yuan and unused bank credit of 292.42 million yuan, indicating no immediate debt repayment pressure [4]. Group 3: Strategic Investments - In March 2025, the company co-invested to establish Huizhou Hongzhi Chemical Logistics Co., Ltd., holding a 51% stake, to provide comprehensive services for the chemical industry in the Guangdong-Hong Kong-Macao Greater Bay Area [5]. - The establishment of Huizhou Hongzhi is expected to fill a gap in the company's chemical warehouse business in the eastern part of the Greater Bay Area and create synergies with operations in Zhuhai [5]. Group 4: Subsidiary Performance - Fujian Port Energy achieved an operating income of 49.98 million yuan in the first half of 2025, an increase of 10.28% year-on-year, but reported a net loss of 19.97 million yuan, which is a reduction in losses by 7.47 million yuan compared to the previous year [6].

Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 590 million yuan, a decrease of 19.80% compared to the same period last year [2] - The net profit attributable to shareholders was -12 million yuan, down 109.20% year-on-year, primarily due to reduced downstream demand leading to lower rental rates and gross profit margins [2] - Financial expenses amounted to 106 million yuan, a decrease of 14.46% year-on-year, mainly due to repayment of bank loans and a decline in borrowing rates [3] Group 2: Debt and Cash Flow Management - The company has 670 million yuan of convertible bonds maturing in July 2026, with sufficient cash flow to meet repayment obligations, including available funds of 614.82 million yuan and unused bank credit of 292.42 million yuan [4] - There is no significant repayment pressure or default risk, and the company will continue to strengthen cash flow management and capital expenditure planning [4] Group 3: Strategic Investments - In March 2025, the company established Huizhou Hongzhi Chemical Logistics Co., Ltd., with a 51% ownership stake, to provide integrated services for hazardous chemical storage and logistics in a leading petrochemical industrial base [5] - The project aims to fill the gap in the company's chemical warehouse business in the eastern Guangdong-Hong Kong-Macao Greater Bay Area and create a synergistic network with existing storage bases [5] Group 4: Operational Developments - The Fujian Port Energy achieved operating revenue of 49.98 million yuan in the first half of 2025, a growth of 10.28% year-on-year, but reported a net loss of 19.97 million yuan, indicating a reduction in losses compared to the previous year [6] - The development of the Quanzhou Meizhou Bay petrochemical base is expected to increase storage demand for petrochemical products, providing a solid foundation for future operations [6]

Group 1 - The article discusses the current bull market aiming for the highest point since 2008, targeting 5178 points, surpassing the previous high of 3731 points [1] - It emphasizes the collection and organization of various warning indicators related to the bull market peak [1] - The article provides insights on how to successfully exit from convertible bonds during a bull market [1] Group 2 - The platform mentioned, Jisilu, focuses on data-driven investment and financial services, specializing in new stocks, convertible bonds, bonds, and closed-end funds [2] - The community's philosophy is to ensure capital safety while achieving steady asset growth [2]