Core Points - The company will pay the third-year interest on the "Zhongchong Convertible Bond 2" on October 27, 2025, at a rate of 6.00 CNY per 10 bonds (including tax) [2][10] - The bond has a total issuance amount of 76,904.59 million CNY, with a maturity period of six years from October 25, 2022, to October 24, 2028 [3][4] - The interest rates for the bond are structured to increase over the years, starting from 0.20% in the first year to 2.00% in the sixth year [3][9] Bond Payment Details - The interest payment date is set for October 27, 2025, with the record date for bondholders being October 24, 2025 [10][12] - The actual interest received by individual investors will be 4.80 CNY per 10 bonds after a 20% tax deduction [10][11] - The bondholders who convert their bonds to stocks before the record date will not receive the interest for the current and future periods [12][13] Taxation Information - Individual bondholders are subject to a 20% personal income tax on the interest income, which will be withheld by the payment agency [11][13] - Foreign institutional investors are exempt from corporate income tax and value-added tax on the interest income until December 31, 2025 [11][14] - Other bondholders are responsible for their own tax payments on the interest income [14] Additional Information - The bond's initial conversion price is set at 28.35 CNY per share, with the current conversion price at 27.46 CNY per share [9] - The company has a credit rating of AA- from China Chengxin International Credit Rating Co., Ltd., with a stable outlook [9] - For further details, investors can refer to the company's bond issuance prospectus published on October 21, 2022 [15]

Core Viewpoint - The China Convertible Bond Index experienced a decline of 0.26% on October 15, closing at 478.56 points, indicating a downward trend in the convertible bond market [1] Group 1: Market Performance - The top decliners in the market included Guanzhong Convertible Bond, Changji Convertible Bond, Huicheng Convertible Bond, Shima Convertible Bond, and Yongxi Convertible Bond, with declines of 7.04%, 5.37%, 5.01%, 4.74%, and 4.39% respectively [1] - Conversely, the top gainers were Saili Convertible Bond, Zhongchong Convertible Bond, Jingxing Convertible Bond, Shuiyang Convertible Bond, and Fuxin Convertible Bond, which saw increases of 9.99%, 5.69%, 5.62%, 5.51%, and 4.12% respectively [1]

Core Points - Yantai Zhongchong Food Co., Ltd. announced the conversion status of its convertible bonds for the third quarter of 2025, indicating a total conversion reduction of 132,500 yuan and 4,786 shares converted in the current quarter [1] - As of September 30, the cumulative conversion reduction reached 285,197,500 yuan, with a total of 10,263,722 shares converted, leaving a remaining balance of convertible bonds at 483,848,400 yuan [1] - The company's total share capital increased from 304,371,634 shares to 304,376,420 shares during the quarter [1] Shareholding Changes - The shareholding ratio of the controlling shareholder and its concerted parties decreased from 26.35% to 25.00% due to the conversion and reduction of shares [1] - Other shareholders with more than 5% holdings, including Zheng Investment and Ito Yokado, saw their shareholding ratios diluted from 17.06% and 10.17% to 16.52% and 9.86%, respectively [1]

Core Viewpoint - The announcement details the changes in shareholding percentages of Yantai Zhongchong Food Co., Ltd. due to the conversion of convertible bonds and the reduction of shares by a significant shareholder, which collectively triggered a change in ownership that reached a 5% threshold [3][5]. Group 1: Shareholding Changes - The passive dilution of the controlling shareholder, Yantai Zhongxing Biotechnology Co., Ltd., occurred due to the conversion of convertible bonds, reducing its shareholding from 28.98% to 26.41% [3]. - The controlling shareholder's action partner, Shanghai Tongyi Investment Management Co., Ltd., through the Tongyi Chunxiao No. 19 private equity fund, also experienced a change in shareholding due to the conversion of bonds and a share reduction, leading to a combined ownership change that reached the 5% threshold [3][5]. - As of September 16, 2025, the combined shareholding of Yantai Zhongxing and Tongyi Chunxiao No. 19 decreased from 25.52% to 25.00% after the latter reduced its holdings by 1,579,000 shares [5]. Group 2: Convertible Bonds - The company issued 7,690,459 convertible bonds with a total value of 769.0459 million yuan, which began trading on November 21, 2022 [4]. - As of September 15, 2025, the total amount converted from these bonds reached 285.1975 million yuan, resulting in the issuance of 10,263,722 shares [4]. - The remaining balance of convertible bonds as of the same date was 483.8484 million yuan [4].

Core Viewpoint - The announcement details the change in shareholding percentages of the actual controllers of Yantai Zhongchong Food Co., Ltd. due to the conversion of convertible bonds and the reduction of shares by a related party, resulting in a decrease in their holding percentage crossing the 1% threshold [1][3]. Group 1: Shareholding Changes - The actual controllers, Mr. Hao Zhongli and Ms. Xiao Ailing, experienced a passive dilution of their shareholding due to the conversion of the company's convertible bonds, leading to a new holding of 115,667,445 shares, which represents 38.63% of the total share capital as of April 29, 2025 [1][3]. - The shareholding percentage decreased to 37.94% after the conversion and a reduction of 182,000 shares by a related party, Shanghai Tongyi Investment Management Co., Ltd., which is part of the controlling shareholder's consortium [3][4]. - The related party plans to reduce its holdings by up to 4.56 million shares, accounting for 1.50% of the total share capital, within three months starting from August 7, 2025 [2][4]. Group 2: Convertible Bonds - The company issued convertible bonds, known as "Zhongchong Zhuan 2," with a total issuance amount of 769.0459 million yuan, which began trading on November 21, 2022 [2]. - As of 2023, the remaining balance of the convertible bonds is 483,951,200 yuan, equivalent to 4,839,512 units [2].

Group 1 - The company Zhongchong Co., Ltd. announced a cash dividend distribution plan for the first half of 2025, proposing to distribute 2.00 RMB per 10 shares to all shareholders [2] - The dividend distribution will not include stock dividends or capital reserve transfers, with any undistributed profits carried forward to future distributions [2] - The ex-dividend date is set for August 14, 2025, and the adjusted conversion price for the company's convertible bonds will be 27.46 RMB per share, effective from the same date [2]

Group 1 - The Zhongzheng Convertible Bond Index closed up 0.84% at 452.81, with a trading volume of 73.29 billion [1] - The top gainers included Julong Convertible Bond, which rose by 20%, and Jinxian Convertible Bond, which increased by over 12% [1] - Other notable gainers were Jingyuan Convertible Bond, up over 9%, and both Jing23 Convertible Bond and Saili Convertible Bond, which rose nearly 9% [1] Group 2 - The Zhongchong Convertible Bond experienced a decline of over 2%, while both Punaite Convertible Bond and Huahong Convertible Bond fell by more than 1% [1]

Core Viewpoint - The China Convertible Bond Index increased by 0.41%, indicating a positive trend in the convertible bond market [1] Group 1: Performance of Convertible Bonds - Seli Convertible Bond rose by 15.58%, showing significant appreciation [1] - Hongbai Convertible Bond increased by 7.20%, reflecting strong investor interest [1] - Feilu Convertible Bond gained 7.18%, contributing to the overall positive performance [1] - Zhongqi Convertible Bond declined by 7.14%, indicating a negative trend [1] - Liande Convertible Bond fell by 6.33%, suggesting potential concerns among investors [1] - Zhongchong Convertible Bond decreased by 5.99%, highlighting a weaker performance compared to peers [1]

Key Insights - As of June 2025, China's foreign exchange reserves stood at 33,174 billion USD, indicating a stable economic environment [1] - The convertible bond market showed a 3.3% increase in June, following a 4.7% rise in the stock market, driven by policy stimuli and geopolitical factors [2][3] - The life sciences upstream sector is experiencing a turning point, with a projected revenue growth of 10.75% year-on-year in 2024, driven by stable investment and domestic substitution trends [7][8] - The North Exchange is expected to maintain high trading activity and market attention, with a focus on new industries such as artificial intelligence and commercial aerospace for the second half of 2025 [12][17] Convertible Bond Market - The convertible bond market's valuation is not overly high, with structural opportunities still available, particularly in sectors showing improved economic conditions such as non-ferrous metals, machinery, agriculture, and computing [4][3] - The market is transitioning from a policy-driven focus to a fundamental pricing approach, with expectations of a 5% economic growth target being met [3][4] - Recommended convertible bonds for July include Guotou Convertible Bond, Ran 23 Convertible Bond, and others, indicating a strategic focus on sectors benefiting from policy support [4] Life Sciences Upstream Sector - The life sciences upstream sector is characterized by high specialization and significant barriers to entry, with major companies expanding and exploring international markets [7][8] - The sector is poised for growth due to the booming demand for innovative drugs, with the Chinese antibody drug market expected to reach 510.8 billion RMB by 2030 [8] - Mergers and acquisitions are becoming more prevalent, with domestic companies looking to replicate the growth paths of global giants, enhancing industry concentration and growth potential [9][10] North Exchange - The North Exchange's trading activity has slightly decreased, with an average daily turnover of approximately 279.83 billion RMB, but it remains higher than other markets [13] - The North Exchange's overall price-to-earnings ratio is around 50.4 times, indicating a slight decline but still higher than other boards, with the electronics sector showing the highest ratios [14] - The North Exchange is optimizing its evaluation system to support the high-quality development of small and medium-sized enterprises, focusing on innovation and market ecology improvement [15][17]

Group 1 - The company issued a total of 7,690,459 convertible bonds with a total value of 769.0459 million yuan, approved by the China Securities Regulatory Commission [1][2] - The initial conversion price of the bonds was set at 28.35 yuan per share, which was later adjusted to 28.30 yuan per share on May 24, 2023, and further adjustments are scheduled for future dates [4][5][7] - The conversion period for the bonds started on May 4, 2023, and will last until October 24, 2028 [1][3] Group 2 - As of June 30, 2025, the total amount of convertible bonds reduced due to conversion was 285.065 million yuan, with a total of 10,258,936 shares converted [8] - The remaining balance of convertible bonds as of June 30, 2025, is 483.9809 million yuan [8] - The company plans to hold annual shareholder meetings to approve profit distribution proposals, which will affect the conversion price of the bonds [6][7]