Report Industry Investment Rating No relevant information provided. Core Viewpoints of the Report - In July, the convertible bond market continued its upward trend, with the equal - weighted index significantly outperforming the weighted index. The median convertible bond price reached a maximum of 129 yuan, approaching the level at the beginning of 2022, but the structure showed that low - priced bonds were significantly higher than those at the beginning of 2022, while high - priced bonds were significantly lower [2][9]. - The July market was a "second - derivative" fluctuation, while the equity "first - derivative" remained positive. Before the September 3 parade, A - shares may have opportunities, and the dumbbell strategy (high - dividend + micro - cap stocks) may rebound. The convertible bond market will continue to follow the underlying stocks and remain strong [2]. - The new VAT policy on the interest income of bonds such as treasury bonds may increase the cost - effectiveness of stable and low - volatility convertible bonds, and the buying volume of bond - type convertible bonds and the entire convertible bond market may increase [2]. - After short - term winning - rate volatility pricing, the market will shift to odds - based advantages. It is recommended to pay attention to the cost - effectiveness improvement of bank convertible bonds and high - elasticity varieties, and the future will shift from position - based victory to structure - based victory [4]. Summary According to Relevant Catalogs 1. Review of the Convertible Bond Market in July: Recovery under Strong Equity - **Price and Index Performance**: The convertible bond market continued to rise in July, with a steeper upward slope compared to June. The equal - weighted index significantly outperformed the weighted index, and there was a slight pullback at the end of the month. The median convertible bond price reached a maximum of 129 yuan and closed at around 127 yuan at the end of the month [2][9]. - **Style and Sector Performance**: In July, small - cap and low - rating styles were dominant again, and their excess performance since the beginning of the year reached a new high. The pharmaceutical sector led the rise, while the financial sector significantly underperformed other sectors since 2025 [10][12][15]. - **Comparison with Underlying Stocks**: Convertible bonds slightly underperformed the underlying stocks, but the underperformance margin further narrowed compared to June. The convertible bond market showed strong performance overall, and its valuation advantage was significant [16][21]. - **Valuation Situation**: The convertible bond valuation confirmed an upward trend, with the 100 - yuan premium rate rising to a maximum of 33% in July. The current high - valuation problem is mainly reflected in the low - parity area, while the 120 - 130 yuan parity is still a valuation depression [22][24][27]. 2. Outlook for the Convertible Bond Market in August: Shifting from Position - Based Victory to Structure - Based Comparison - **Equity Market and Convertible Bond Market**: The short - term adjustment of the equity market is due to the full implementation of the market rotation and catch - up market, and the market has returned to a volatile state. Before the September 3 parade, A - shares may have opportunities, and the convertible bond market will follow the underlying stocks and remain strong [2][46]. - **Valuation of Convertible Bonds**: The high valuation of convertible bonds may be maintained because the overall risk of the stock market is controllable. However, the absolute valuation of bond - type convertible bonds is relatively high, and there are potential adjustment risks. After the short - term adjustment, they have certain cost - effectiveness [48][53][60]. - **Impact of VAT Policy**: The adjustment of the bond VAT policy may increase the attractiveness of bond - type convertible bonds. After the tax increase, the cost - effectiveness of pure bonds decreases, and the buying volume of bond - type convertible bonds may increase [63][66]. - **Cost - Effectiveness of Different Types of Convertible Bonds**: The cost - effectiveness of high - dividend and low - volatility convertible bonds such as bank convertible bonds may increase, and attention should also be paid to high - elasticity varieties and individual bonds with odds advantages [4]. 3. Bond Selection Directions and Targets in August - **Bond Selection Directions**: First, pay attention to the directions favored by the high - to - low shift in the August market, such as bank convertible bonds and some "bank - like" convertible bonds; second, focus on small - cap growth sectors such as self - controllability and national defense and military industries; third, pay attention to convertible bonds that are not subject to forced redemption or have been listed for less than 6 months; fourth, pay attention to convertible bonds that can replace underlying stocks [4]. - **Targets in August**: Low - volatility convertible bonds include Lvdong Convertible Bond, Hengyi Convertible Bond 2, etc.; stable convertible bonds include Bo 25 Convertible Bond, Guanghe Convertible Bond, etc.; high - volatility convertible bonds include Daotong Convertible Bond, Jiahe Convertible Bond, etc. [4]

New Stock Issuance - ST凯利 (300326) is undergoing a tender offer from July 17, 2025, to August 15, 2025[1] - 中程退 (300208) has its last trading day on July 18, 2025[1] - 退市锦港 (600190) and 退市锦B (900952) also have their last trading day on July 18, 2025[1] Market Alerts - 广生堂 (300436) is experiencing severe abnormal fluctuations as of July 17, 2025[1] - 华银电力 (600744) has a market alert issued on July 15, 2025[1] - 扬电科技 (301012) and 新易盛 (300502) have announcements made on July 17, 2025[1] Other Notable Stocks - 皇氏集团 (002329) and 浙江黎明 (603048) have announcements on July 18, 2025[1] - ST立方 (300344) and 国晟科技 (603778) also have announcements on July 18, 2025[1] - 英利汽车 (601279) and 天宸股份 (600620) have announcements on July 18, 2025[1]

New Stock Listings - Huadian New Energy (600930) listed at an issue price of 3.18 on July 16, 2025[1] - Zhongcheng Tui (300208) has 2 trading days remaining until the last trading day[1] - Tui Shi Jin Gang (600190) also has 2 trading days remaining until the last trading day[1] Abnormal Fluctuations - Huayin Power (600744) reported severe abnormal fluctuations on July 15, 2025[1] - Changcheng Military Industry (601606) announced abnormal fluctuations on July 15, 2025[1] - ST Yanzhen (603389) reported abnormal fluctuations on July 16, 2025[1] Other Notable Announcements - ST Ya Zhen (000627) reported significant fluctuations with a value of 7189 on July 16, 2025[3] - Guosheng Technology (603778) reported fluctuations with a value of 3370 on July 15, 2025[3] - ST Xin Chao (600777) reported fluctuations with a value of 1008 on July 11, 2025[3]

Core Points - The report discusses the issuance of convertible bonds by Shanghai Weice Semiconductor Technology Co., Ltd, with the bond code 118055.SH, and highlights the management of bondholder rights by Ping An Securities [1][2] - The bond has a total issuance scale of RMB 1.175 billion, with a maturity period of six years from April 9, 2025, to April 8, 2031 [3][4] - The initial conversion price of the bonds is set at RMB 82.15 per share, which has been adjusted to RMB 62.68 per share due to corporate actions [5][9] Bond Issuance Details - The bond issuance was approved by the board of directors and shareholders' meetings held in April 2024 and January 2025, respectively [2] - The bond has a tiered interest rate structure: 0.10% for the first year, 0.30% for the second year, and 0.60% for the third year [3] - Interest payments will be made annually, with the first payment starting from the issuance date [4][5] Conversion and Adjustment Mechanism - The conversion period for the bonds starts on October 15, 2025, and ends on April 8, 2031 [5][9] - The conversion price can be adjusted based on various corporate actions, including stock dividends and capital increases, following specific formulas outlined in the bond's prospectus [6][7] - The adjusted conversion price reflects the impact of a recent stock incentive plan, resulting in a new price of RMB 62.68 per share [8][9] Credit Rating and Management - The bonds have been rated AA by Zhongjian Pengyuan Credit Rating Co., Ltd, with a stable outlook [6] - The bonds are not secured by any collateral, and the management will continue to monitor the interests of bondholders closely [6][9]

Core Viewpoint - The company conducted a self-examination regarding insider trading related to its 2025 restricted stock incentive plan, confirming no violations occurred during the specified period [1][2][3] Group 1: Company Actions - The company held meetings on June 24, 2025, to approve the draft of the 2025 restricted stock incentive plan and disclosed the relevant announcements on June 25, 2025 [1] - The company implemented necessary confidentiality measures and registered individuals with insider knowledge of the incentive plan [2] Group 2: Examination Findings - During the self-examination period from December 24, 2024, to June 24, 2025, no insider trading activities were detected among the registered individuals, except for stock acquired through the first vesting period of the 2024 incentive plan [2] - The company adhered to relevant laws and internal regulations, ensuring that no insider information was leaked prior to the public announcement of the incentive plan [3]

Core Points - The company has announced the public disclosure and verification of the list of incentive objects for its 2025 restricted stock incentive plan [1][2] - The supervisory board confirmed that no objections were raised during the public disclosure period, which lasted from June 25 to July 4, 2025 [2] - The supervisory board conducted a thorough verification of the proposed incentive objects, ensuring compliance with relevant laws and regulations [2][5] Disclosure and Verification Process - The company publicly disclosed the names and positions of the proposed incentive objects internally for a period of 10 days [1] - Employees were allowed to provide feedback through verbal or written means during the public disclosure period [1][2] Supervisory Board's Verification Opinion - The supervisory board reviewed the list of incentive objects and confirmed that all individuals met the qualifications set forth in the relevant laws and regulations [2][5] - The verification process included checking the identity documents, employment contracts, and positions held by the proposed incentive objects [2] - The supervisory board concluded that all individuals listed as incentive objects are legally and validly qualified under the incentive plan [5]

Core Viewpoint - The report outlines the issuance of convertible bonds by Shanghai Weicai Semiconductor Technology Co., Ltd., detailing the bond's characteristics, pricing adjustments, and the impact of the company's 2024 annual profit distribution plan on the bond's conversion price [2][10]. Group 1: Bond Issuance Overview - The convertible bonds, named "Weicai Convertible Bonds" with code 118055.SH, were approved for issuance by the company's board and shareholders in 2024 [2][3]. - The total issuance amount is RMB 1,175 million, with each bond having a face value of RMB 100 [4][3]. - The bonds have a maturity period of six years, from April 9, 2025, to April 8, 2031 [3][4]. Group 2: Interest and Payment Terms - The interest rates for the bonds are set at 0.10% for the first year, 0.30% for the second year, and 0.60% for the third year, with annual interest payments [5][6]. - The interest payment date is the anniversary of the bond issuance, with the first payment scheduled for April 9, 2026 [5][6]. Group 3: Conversion Price Adjustment - The initial conversion price was set at RMB 82.00 per share, which will be adjusted to RMB 62.82 per share effective June 18, 2025, due to the company's profit distribution plan [7][10]. - The adjustment is based on the company's decision to distribute cash dividends and increase capital stock, with specific formulas outlined for calculating the new conversion price [8][9]. Group 4: Credit Rating and Management - The bonds have been rated AA by China Chengxin International Credit Rating Co., Ltd., indicating a stable outlook [6][7]. - The bonds are not secured by any collateral, and the management will closely monitor the issuer's ability to meet interest and principal repayment obligations [7][10].

Core Viewpoint - The company announced an adjustment to the conversion price of its convertible bonds, "Weicet Convertible Bonds," following a profit distribution plan approved at the 2024 annual shareholders' meeting, resulting in a new conversion price of 62.82 CNY per share, effective from June 18, 2025 [1][4]. Summary by Sections Adjustment Basis - The adjustment of the conversion price is based on the profit distribution plan, which includes a cash dividend of 3.40 CNY per 10 shares and a capital reserve conversion of 3 shares for every 10 shares held [1][2]. Adjustment Method - The conversion price will be adjusted according to specific formulas outlined in the prospectus, which account for stock dividends, capital increases, and cash dividends [2][3]. Calculation Process - The new conversion price is calculated using the formula: P1 = (P0 - D) / (1 + n), where P0 is the previous conversion price of 82.00 CNY, D is the cash dividend of 0.34 CNY, and n is the capital increase rate of 0.30. This results in a new conversion price of 62.82 CNY per share [4]. Other Information - Investors seeking more details about the "Weicet Convertible Bonds" can refer to the prospectus disclosed on the Shanghai Stock Exchange website [4].

Group 1 - The company, Shanghai Weicai Semiconductor Technology Co., Ltd., is issuing convertible bonds named "Weicai Convertible Bonds" with a total issuance scale of RMB 1.175 billion [4][10] - The bonds have a maturity period of six years, from April 9, 2025, to April 8, 2031, with annual interest rates starting at 0.10% in the first year and increasing to 0.60% by the third year [3][4] - The initial conversion price for the bonds is set at RMB 82.15 per share, which has been adjusted to RMB 82.00 per share due to a stock incentive plan [6][10] Group 2 - The bonds will be managed by Ping An Securities, which is responsible for monitoring significant matters affecting bondholders' rights [2][10] - The bondholders will receive interest annually, with the first interest payment starting from the issuance date [5][6] - The conversion period for the bonds will begin on October 15, 2025, and will last until the maturity date [6][10] Group 3 - The company has received a credit rating of AA from Zhongceng Pengyuan Credit Rating Co., Ltd., indicating a stable outlook for the bonds [6][10] - The bonds are unsecured, meaning they do not have any collateral backing [6][10] - The company will adjust the conversion price in accordance with specific corporate actions such as stock dividends or capital increases, ensuring fair treatment for bondholders [8][10]

Core Viewpoint - The company has adjusted the conversion price of its convertible bonds, "Weicet Convertible Bonds," from 82.15 yuan per share to 82.00 yuan per share, effective from May 28, 2025, due to the completion of the first vesting period of its 2024 restricted stock incentive plan [1][5]. Group 1: Conversion Price Adjustment - The adjustment of the conversion price is based on the issuance of 325,018 shares to 63 incentive recipients, increasing the total share capital from 113,834,777 shares to 114,159,795 shares [1][4]. - The new conversion price formula accounts for stock dividends, capital increases, and cash dividends, ensuring that the conversion price reflects changes in the company's equity structure [2][3]. Group 2: Conversion Period - The conversion period for "Weicet Convertible Bonds" is set from October 15, 2025, to April 8, 2031, and the bonds have not yet entered the conversion period [1][5]. Group 3: Communication and Disclosure - The company will disclose any future adjustments to the conversion price in accordance with relevant regulations and will ensure that the rights of convertible bondholders are protected [3][4]. - Investors seeking more information about "Weicet Convertible Bonds" can refer to the company's previously published prospectus on the Shanghai Stock Exchange website [5].