Core Viewpoint - The company, Lutai A (000726), is focused on its core business of producing mid-to-high-end woven shirt fabrics, knitted fabrics, and functional materials, while also preparing for the upcoming redemption of convertible bonds due in April 2026, with sufficient cash flow to meet obligations [2][3][4]. Group 1: Business Operations - The company specializes in mid-to-high-end woven shirt fabrics, knitted fabrics, pants fabrics, women's fabrics, functional fabrics for light business and sports, and uniform workwear [2]. - Since 2014, the company has been implementing a comprehensive internationalization strategy, establishing production bases in three Southeast Asian countries [2]. Group 2: Financial Preparedness - The company has approximately 14 billion yuan in convertible bonds maturing in April 2026, with a reported cash balance of about 18 billion yuan as of the latest quarterly report [3][4]. - As of the end of Q3 2025, the company reported total monetary funds and trading financial assets of approximately 32.80 billion yuan, indicating a strong ability to meet the redemption of convertible bonds if they cannot be fully converted [3][4]. Group 3: Market Activity - On December 31, the company's stock closed at 7.12 yuan, down 0.14%, with a turnover rate of 0.92% and a trading volume of 54,100 shares, amounting to a total transaction value of 38.67 million yuan [1]. - On the same day, there was a net outflow of 1.70 million yuan from major funds, accounting for 4.41% of the total transaction value [5][6].

Core Viewpoint - The announcement details the upcoming maturity and redemption of the "Yingke Convertible Bonds," including the conversion price, redemption amount, and tax implications for investors [1][2][3][4][5] Group 1: Convertible Bond Overview - The "Yingke Convertible Bonds" were issued on August 16, 2019, with a total issuance of 4.70 million bonds, amounting to 470 million RMB [1] - The current conversion price for the bonds is set at 3.42 RMB per share [2] Group 2: Redemption and Payment Details - The bonds will be redeemed at 128% of the face value, equating to 128 RMB per bond, including the last interest payment [2][3] - The maturity date for the bonds is August 15, 2025, with the payment date for the redemption set for August 18, 2025 [3] Group 3: Trading and Tax Implications - Trading of the "Yingke Convertible Bonds" ceased on June 29, 2021, and will be delisted on August 18, 2025 [2][4] - Individual investors are subject to a 20% tax on interest income, with the expected net payout being 127.2 RMB per bond after tax [4][5]

Key Points - The company issued 6.30 million convertible bonds with a total value of 630 million RMB, which were approved by the China Securities Regulatory Commission and listed on the Shanghai Stock Exchange on August 23, 2019 [1] - The bonds are set to mature on July 31, 2025, with a total repayment amount of 662,134,000 RMB, and the payment date is scheduled for August 1, 2025 [2][4] - As of July 31, 2025, a total of 28,059,000 RMB worth of bonds were converted into 1,744,376 shares, representing 0.5634% of the company's total shares before conversion [3] - The total number of bonds to be repaid at maturity is 6,019,400, and the bonds will cease trading on July 29, 2025, with the last trading day being July 28, 2025 [5] - The company maintains a good financial condition and normal cash flow, indicating that the repayment of the convertible bonds will not affect its daily operations [5]