Core Viewpoint - Dongwu Securities report indicates that Zhaoli Pharmaceutical plans to issue convertible bonds to build capacity and develop "Wuling + X" products, supporting long-term growth [1] Group 1: Production and Capacity Expansion - The production scale of Wuling capsules and Bailing capsules is expected to continue growing in the near future [1] - The new production base and capacity expansion project are necessary measures to ensure market supply, consolidate industry position, and support strategic goals [1] Group 2: Research and Development Investment - Increased R&D investment will enrich the Wuling product series [1] - The main purpose of the fundraising project is for the development of innovative drugs and health products in the Wuling series [1] Group 3: Shareholder Returns - The company has maintained a dividend payout ratio around 80% since 2022, ranking among the top in the industry [1] - Considering the company's combination of high growth and high dividends, and the expected continuous release of core product performance in 2026, a "buy" rating is maintained [1]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report The report presents the top ten convertible bonds for December 2025, analyzing each bond's issuer, including its financial performance, business scope, and key attractions [1][3][4]. 3. Summary by Company 3.1 Zhongte Convertible Bond - **Company Profile**: A globally leading specialized special steel material manufacturing enterprise with a production capacity of about 20 million tons of special steel materials per year [11]. - **Financial Performance**: In 2024, its operating income was 109.203 billion yuan (YoY -4.22%), and the net profit attributable to the parent was 5.126 billion yuan (YoY -10.41%). In the first three quarters of 2025, the operating income was 81.206 billion yuan (YoY -2.75%), and the net profit attributable to the parent was 4.33 billion yuan (YoY +12.88%) [11]. - **Company Highlights**: It is one of the world's most comprehensive special steel enterprises in terms of variety and specifications, with leading market shares in core products such as bearing steel and automotive steel. It has a complete industrial chain and strong cost - control capabilities, and is actively seeking external expansion [12]. 3.2 Shanlu Convertible Bond - **Company Profile**: Mainly engaged in road and bridge engineering construction and maintenance, and actively expanding into other fields. It has a complete business and management system [29]. - **Financial Performance**: In 2024, its operating income was 71.348 billion yuan (YoY -2.3%), and the net profit attributable to the parent was 2.322 billion yuan (YoY +1.47%). In the first three quarters of 2025, the operating income was 41.354 billion yuan (YoY -3.11%), and the net profit attributable to the parent was 1.41 billion yuan (YoY -3.27%) [29]. - **Company Highlights**: Controlled by the Shandong Provincial State - owned Assets Supervision and Administration Commission, it has the concept of "China Special Valuation". It is expected to benefit from infrastructure construction in Shandong and the "Belt and Road" initiative [30]. 3.3 Hebang Convertible Bond - **Company Profile**: With advantages in salt mines, phosphate mines, and natural gas supply, it has completed the basic layout in the chemical, agricultural, and photovoltaic fields [44]. - **Financial Performance**: In 2024, its operating income was 8.547 billion yuan (YoY -3.13%), and the net profit attributable to the parent was 31 million yuan (YoY -97.55%). In the first three quarters of 2025, the operating income was 5.927 billion yuan (YoY -13.02%), and the net profit attributable to the parent was 93 million yuan (YoY -57.93%) [44]. - **Company Highlights**: Its phosphate mines and salt mines contribute stable profits, and the liquid methionine business has high - margin performance [45]. 3.4 Huayuan Convertible Bond - **Company Profile**: Focused on building a complete vitamin D3 upstream - downstream industrial chain, with products including cholesterol, vitamin D3, and chemical preparations [57]. - **Financial Performance**: In 2024, its operating income was 1.243 billion yuan (YoY +13.58%), and the net profit attributable to the parent was 309 million yuan (YoY +60.76%). In the first three quarters of 2025, the operating income was 936 million yuan (YoY -0.2%), and the net profit attributable to the parent was 234 million yuan (YoY -3.07%) [57]. - **Company Highlights**: It is a leader in NF - grade cholesterol and 25 - hydroxyvitamin D3 products. It is expanding its product matrix and has a layout in the pharmaceutical manufacturing field [58]. 3.5 Xingye Convertible Bond - **Company Profile**: One of the first joint - stock commercial banks approved by the State Council and the People's Bank of China, evolving into a modern financial service group [71]. - **Financial Performance**: In 2024, its operating income was 212.226 billion yuan (YoY +0.66%), and the net profit attributable to the parent was 77.205 billion yuan (YoY +0.12%). In the first three quarters of 2025, the operating income was 161.234 billion yuan (YoY -1.82%), and the net profit attributable to the parent was 63.083 billion yuan (YoY +0.12%) [71]. - **Company Highlights**: It has stable asset quality and scale growth, with a large number of corporate and retail customers [72]. 3.6 Huanxu Convertible Bond - **Company Profile**: A global leader in electronic manufacturing design, providing value - added services to brand customers [81]. - **Financial Performance**: In 2024, its operating income was 60.691 billion yuan (YoY -0.17%), and the net profit attributable to the parent was 1.652 billion yuan (YoY -15.16%). In the first three quarters of 2025, the operating income was 43.641 billion yuan (YoY -0.83%), and the net profit attributable to the parent was 1.263 billion yuan (YoY -2.6%) [81]. - **Company Highlights**: It is a leading manufacturer of smart wearable SiP modules, with advanced packaging technologies and a global production layout [82]. 3.7 Chongyin Convertible Bond - **Company Profile**: The earliest local joint - stock commercial bank in the upper reaches of the Yangtze River and Southwest China, listed on the Hong Kong Stock Exchange and selected for the "Leading Bank" program [94]. - **Financial Performance**: In 2024, its operating income was 13.679 billion yuan (YoY +3.54%), and the net profit attributable to the parent was 5.117 billion yuan (YoY +3.8%). In the first three quarters of 2025, the operating income was 11.74 billion yuan (YoY +10.4%), and the net profit attributable to the parent was 4.879 billion yuan (YoY +10.19%) [94]. - **Company Highlights**: Benefiting from the Chengdu - Chongqing economic circle strategy, it has stable asset - scale growth and a reasonable credit strategy [96]. 3.8 Tianye Convertible Bond - **Company Profile**: The first industrial enterprise of the Xinjiang Production and Construction Corps and a leading enterprise in the chlor - alkali chemical industry, with an integrated circular economy industrial chain [103]. - **Financial Performance**: In 2024, its operating income was 11.156 billion yuan (YoY -2.7%), and the net profit attributable to the parent was 68 million yuan (YoY +108.83%). In the first three quarters of 2025, the operating income was 7.97 billion yuan (YoY +2.2%), and the net profit attributable to the parent was 7 million yuan (YoY -28.79%) [103]. - **Company Highlights**: The cost of caustic soda production is relatively fixed, and it plans to increase the dividend frequency and has coal - mine projects in progress [106]. 3.9 Aorui Convertible Bond - **Company Profile**: A company focusing on the R & D, production, and sales of complex APIs and preparations, leading in several technical fields [119]. - **Financial Performance**: In 2024, its operating income was 1.476 billion yuan (YoY +16.89%), and the net profit attributable to the parent was 355 million yuan (YoY +22.59%). In the first three quarters of 2025, the operating income was 1.237 billion yuan (YoY +13.67%), and the net profit attributable to the parent was 354 million yuan (YoY +24.58%) [119]. - **Company Highlights**: It has an optimized distributor network, expanding preparation products, and high - quality customer resources [120]. 3.10 Yushui Convertible Bond - **Company Profile**: The largest water supply and drainage integrated enterprise in Chongqing, with a stable monopoly position in the local market [133]. - **Financial Performance**: In 2024, its operating income was 6.999 billion yuan (YoY -3.52%), and the net profit attributable to the parent was 785 million yuan (YoY -27.88%). In the first three quarters of 2025, the operating income was 5.568 billion yuan (YoY +7.21%), and the net profit attributable to the parent was 779 million yuan (YoY +7.1%) [133]. - **Company Highlights**: It has a high market share in Chongqing, is expanding externally, and has effective cost - control measures [134].

Core Viewpoint - The quantitative convertible bond portfolio experienced a slight decline in November, with a year-to-date return of 20.14% and an excess return of 3.96% [1] Group 1: Portfolio and Performance - The quantitative convertible bond portfolio is generated based on three factor systems: fundamental factors, low-frequency price-volume factors, and high-frequency price-volume factors [5] - The portfolio's performance in November showed a return of -0.72% and an excess return of -0.03% [1] Group 2: Convertible Bond Factors - A total of 32 fundamental factors, 80 low-frequency price-volume factors, and 32 high-frequency price-volume factors are tracked for convertible bonds [2] - The report illustrates the latest data using the pricing deviation factor as an example [2] Group 3: Risk Warnings for Convertible Bonds - The report provides risk warnings for convertible bonds based on forced delisting rules and credit scoring methods, highlighting various risks including trading and financial delisting risks [3][13] Group 4: Timing for Convertible Bond Index - The report employs price-volume models, pricing deviations, and convertible bond elasticity for timing and position management of the CSI Convertible Bond Index, indicating a bullish signal for the end of November with a position recommendation of 1/3 [4][14] Group 5: Timing Signals - The timing signals for the CSI Convertible Bond Index from early November show a mix of bullish and neutral signals, with a position recommendation fluctuating between 0% and 67% throughout the month [15]

Group 1: Investor Relations Activities - The company conducted an analyst meeting and a specific object survey on November 27, 2025 [2] - Participants included analysts from various securities firms and individual investors [2] - The analyst meeting was held online, while the specific object survey took place in the company meeting room [2] Group 2: Company Operations and Financials - The company is currently using some renewable energy transportation and handling equipment, including electric forklifts and electric traction vehicles [3] - The total amount intended to be raised from the convertible bond issuance is up to RMB 380 million, with RMB 266 million allocated for the "Guinea transshipment project" and RMB 114 million for "supplementing working capital and repaying bank loans" [3] - The company aims to enhance its intrinsic value through operational improvements and maintain good communication with investors to convey its investment value [3] Group 3: Financial Management and Risk Mitigation - The company's investment expenditures primarily focus on logistics and warehousing facility construction, including land acquisition and transportation equipment [3] - The purpose of foreign exchange hedging is to mitigate potential adverse impacts of exchange rate fluctuations on overall performance [3] - Currently, the company does not have plans for equity incentives, but will disclose any future plans in accordance with relevant laws and regulations [3]

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - In the week from November 17 - 21, 2025, the stock market oscillated downward due to factors like geopolitical tensions, concerns about overseas AI bubbles, and weakening interest - rate cut expectations. The bond market had a narrow - range oscillation. The convertible bond market mostly declined, with the CSI Convertible Bond Index down 1.78% for the week, the price median down 1.89%, and the arithmetic average parity down 6.70%. The overall market conversion premium rate increased by 7.72% compared to the previous week [1][8][9]. - During the period from November 24 - 28, 2025, the convertible bond market showed strong resilience during the A - share adjustment. Fed officials' dovish signals may improve market sentiment, and the convertible bond asset prices have strong bottom support. Attention should be paid to sectors such as energy storage, power, semiconductor equipment and materials, photovoltaic, and chemical industries, and high - volatility underlying stocks in balanced convertible bonds or low - premium equity - biased individual bonds should be selected [2][18]. Summary by Relevant Catalogs Market Trends - **Stock Market**: In the week from November 17 - 21, 2025, the market oscillated downward. All Shenwan primary industries closed down. Banks (-0.89%), media (-1.25%), food and beverage (-1.44%), national defense and military industry (-1.72%), and household appliances (-2.30%) performed relatively well, while power equipment (-10.54%), comprehensive (-9.18%), basic chemicals (-7.47%), and commercial retail (-7.24%) performed poorly [8][9]. - **Bond Market**: At the beginning of the week, the capital was tight, and it became balanced and loose in the second half of the week. The bond market had a narrow - range oscillation, and the 10 - year Treasury bond rate closed at 1.82% on Friday, up 0.26bp from the previous week [1][9]. - **Convertible Bond Market**: Most convertible bond individual bonds declined. The CSI Convertible Bond Index was down 1.78% for the week, the price median was down 1.89%, and the arithmetic average parity was down 6.70%. The overall market conversion premium rate increased by 7.72% compared to the previous week. The total trading volume of the convertible bond market last week was 318.036 billion yuan, with an average daily trading volume of 63.607 billion yuan, a decrease from the previous week [1][9][16]. Valuation Overview - As of November 21, 2025, for equity - biased convertible bonds, the average conversion premium rates in different price ranges are at relatively high percentile values. For debt - biased convertible bonds, the average YTM of those with a parity below 70 yuan is -4.27%, at the 1%/4% percentile since 2010/2021. The average implied volatility of all convertible bonds is 46.1%, at the 93%/99% percentile since 2010/2021 [19]. Primary Market Tracking - **Last Week (November 17 - 21, 2025)**: Maolai Convertible Bond was announced for issuance, and Qizhong Convertible Bond was listed. Maolai Convertible Bond has a scale of 563 million yuan, and Qizhong Convertible Bond has a scale of 850 million yuan [27][28]. - **Next Week (November 24 - 28, 2025)**: Zhuomei Convertible Bond is expected to be listed, with a scale of 450 million yuan [29][30]. - **Approval Progress**: Last week, 2 companies including Aohong Electronics and Pulian Software got registration approval, 1 company including Chunfeng Power passed the listing committee review, 4 companies including Haoneng Co., Ltd. passed the general meeting of shareholders, and 1 company including Zhaomin Technology had a board of directors' plan. As of now, there are 95 convertible bonds to be issued, with a total scale of 143.93 billion yuan [31].

Core Insights - The performance of convertible bond funds has significantly outperformed other investment products in the capital market, with the "Southern Changyuan Convertible Bond A" fund leading with a return of 38.09% this year [2] - Convertible bond funds have become the dominant players in the bond fund market, occupying 6 out of the top 30 positions in terms of returns, and accounting for 19 out of the top 30 funds overall [2] - Private equity convertible bond funds have also shown impressive performance, with some achieving annualized returns exceeding 70% without any negative returns reported [2] Group 1: Performance Analysis - The average net value growth rate of convertible bond funds has surpassed 20% this year, significantly higher than the overall bond fund average of 2.13% [6] - Among the top 50 bond funds, 29 positions are held by convertible bond funds, showcasing their dual investment advantages in both equity and debt [6] - The convertible bond market has seen a 41% increase in fund size in the third quarter, reaching 133.4 billion yuan [4] Group 2: Market Dynamics - The "strong stock, stable bond" market environment has provided an ideal backdrop for convertible bonds, with the stock market's upward momentum driving the rebound of convertible bonds [5] - The characteristics of convertible bonds, which offer downside protection and unlimited upside potential, make them particularly attractive during market volatility [5] - The acceleration of forced redemptions in the convertible bond market has created opportunities for active strategies, allowing investors to capitalize on predictable outcomes [9] Group 3: Investment Strategies - Public funds tend to have more restrictions on individual bond selection due to risk control and liquidity requirements, while private funds have greater flexibility, potentially leading to higher returns [7] - The performance of private equity convertible bond products can vary significantly, with top performers achieving remarkable returns, but also carrying higher risks and lower transparency [6][7] - Investors are advised to focus on selecting high-quality management products rather than engaging in direct trading, especially in a volatile market environment [10]

Core Viewpoint - The article discusses various convertible bonds, highlighting their redemption status, trading prices, and key dates for conversion and redemption [1][4][6]. Group 1: Convertible Bonds Status - Guocheng Convertible Bond (127019) is subject to strong redemption on November 20, 2025 [1]. - Southeast Convertible Bond (127103) will not undergo adjustment [1]. - Huicheng Convertible Bond (118049) and Haoyuan Convertible Bond (118051) are not subject to strong redemption [1]. - Yinbang Convertible Bond (123252) will not be adjusted [1]. - Zhongjin Convertible Bond (127020) has its last trading day on November 20, 2025 [1]. Group 2: Pricing and Trading Information - Luokai Convertible Bond (113689) current price is 156.168, with a strong redemption price of 100.038, and a last trading day on November 17, 2025 [4]. - Chengfeng Convertible Bond (113628) current price is 153.032, with a last trading day on November 17, 2025 [4]. - Zhongjin Convertible Bond (127020) current price is 124.350, with a strong redemption price of 100.700, and a last trading day on November 20, 2025 [4]. - Hengbang Convertible Bond (127086) current price is 118.195, with a strong redemption price of 100.280, and a last trading day on November 24, 2025 [4]. - Qibin Convertible Bond (113047) current price is 113.481, with a strong redemption price of 101.174, and a last trading day on November 27, 2025 [4]. Group 3: Additional Convertible Bonds Information - Fenghuo Convertible Bond (110062) current price is 106.676, with a redemption price of 106.000, and a last trading day on November 26, 2025 [6]. - Ying19 Convertible Bond (110063) current price is 113.327, with a redemption price of 111.000, and a last trading day on December 12, 2025 [6]. - Hongda Convertible Bond (404003) current price is 54.781, with a redemption price of 118.000, and a last trading day on December 15, 2025 [6]. - Jianguo Convertible Bond (110064) current price is 113.369, with a redemption price of 113.000, and a last trading day on December 16, 2025 [6].

Group 1 - The core viewpoint of the article discusses the transfer of shares by shareholders and the credit rating adjustments of convertible bonds due to company performance issues [1][2][5] - The controlling shareholder of Hengfeng Information plans to transfer no more than 3% of the company's shares, indicating potential liquidity changes [1] - Longda Convertible Bond's credit rating has been downgraded to A- due to weakened debt repayment capacity, reflecting the company's losses in the first three quarters of 2025 [1][2] Group 2 - The article lists various convertible bonds, including those that are subject to strong redemption and those that will not undergo adjustments, providing specific details such as bond codes and announcement dates [2][5] - The current prices and redemption prices of several convertible bonds are provided, along with their last trading and conversion dates, indicating market conditions and investor sentiment [5][7] - The article highlights the remaining scale and market capitalization ratios of different convertible bonds, which can be useful for assessing investment opportunities [5][7]

Core Insights - The convertible bond funds have shown remarkable performance in 2025, with an average net value growth rate exceeding 20%, significantly outperforming the overall bond fund average of 2.13% [1][2] - The strong performance of convertible bond funds is closely linked to the underlying market, with the CSI Convertible Bond Index rising by 18.61% year-to-date [2] - The unique "dual nature" of convertible bond funds allows them to benefit from equity market gains while providing downside protection, making them suitable for various market conditions [2][3] Performance Summary - As of November 14, all convertible bond funds have achieved positive returns this year, with 29 funds rising over 20% and 5 exceeding 30% [1] - The average net value growth rate for the 38 convertible bond funds in the market is 23.49%, with notable funds like Southern Changyuan Convertible Bond A and Huaxia Convertible Bond Enhanced Bond A showing growth rates over 30% [1][2] - In the top 10 performing bond funds this year, 6 are convertible bond funds, highlighting their strong market position [1] Market Dynamics - The strong performance of convertible bond funds is driven by two main factors: robust equity market performance enhancing the conversion value of bonds, and a notable supply-demand imbalance in the convertible bond market [2] - As of October 31, the issuance scale of convertible bonds was 57.2 billion, showing a significant recovery compared to the previous year, but the total outstanding scale has decreased by over 160 billion since the beginning of the year [2]

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report - The main economic indicators in October 2025 showed a decline, including industrial production, fixed - asset investment, and social consumption [1][2]. - In the bond market, investors should gradually become more optimistic, with a short - to - long duration strategy for interest - rate bonds and a focus on structural opportunities for convertible bonds [3]. 3. Summary According to the Directory 3.1 Event - On November 14, 2025, the National Bureau of Statistics released the economic data for October 2025, including industrial added value, fixed - asset investment, and social consumption data [1][6]. 3.2 Economic Data Analysis 3.2.1 Industrial Production - In October 2025, the year - on - year growth rate of industrial added value above a designated size was 4.9%, down 1.6 percentage points from September. The month - on - month growth rate was + 0.17%, the lowest of the year and lower than the same period in 2023 and 2024 [2][6]. - The decline in the year - on - year growth rate of industrial added value was mainly due to the decrease in the mining and manufacturing sectors, while the production and supply of electricity, heat, gas, and water increased [7]. 3.2.2 Fixed - Asset Investment - From January to October 2025, the cumulative year - on - year growth rate of fixed - asset investment was - 1.7%, continuing the downward trend. The month - on - month growth rate in October was - 1.62%, with an expanding decline [2][14]. - The cumulative year - on - year growth rates of real estate, manufacturing, and general infrastructure investment all decreased. Real estate investment remained weak, and manufacturing and infrastructure investment weakened from their high levels at the beginning of the year [18]. 3.2.3 Social Consumption - In October 2025, the year - on - year growth rate of social consumption was 2.9%, slightly lower than the previous month. The month - on - month growth rate was + 0.16%, turning positive but weaker than the seasonal average [2][21]. - Among consumer goods, the year - on - year growth rate of essential consumption increased. Among optional consumption, the decline in automobile and home appliance consumption was significant, while optional consumption such as gold, silver, and jewelry, and communication equipment still performed well. The year - on - year growth rate of catering consumption increased significantly [21]. 3.3 Bond Market View 3.3.1 Interest - Rate Bonds - Since August 2025, the yield of treasury bonds has shown a significant divergence. The short - end yield fluctuated little, while the long - end yield first increased and then decreased. By November 13, the 10 - year and 30 - year treasury bond yields had decreased by 9bp and 13bp respectively from their previous highs [3][27]. - Given the current loose liquidity, investors should be more optimistic about the bond market. The duration selection can be from short to long, and the view that the fluctuation center of the 10 - year treasury bond yield is 1.7% is maintained [3][28]. 3.3.2 Convertible Bonds - As of November 13, 2025, the increase and decrease of the CSI Convertible Bond Index was + 19.3%, and that of the CSI All - Index was + 25.3%. The convertible bond market underperformed the equity market. Since late October, the convertible bond market has seen a new round of growth [3][36]. - In the context of the slow - bull expectation of the equity market and the difficult - to - change pattern of strong demand over supply in the convertible bond market, convertible bonds are still relatively high - quality assets in the long run, and more attention should be paid to the structure [36].