Core Viewpoint - The China Convertible Bond Index rose by 0.57% on January 16, reaching 519.83 points, indicating a positive market sentiment in the convertible bond sector [1]. Group 1: Market Performance - The index's increase was driven by significant gains in several convertible bonds, with Hengshuai Convertible Bond rising by 10.64%, Libai Convertible Bond by 10.34%, and Huayi Convertible Bond by 9.37% [1]. - Conversely, some convertible bonds experienced declines, with Fumiao Convertible Bond dropping by 7.69%, Jiamei Convertible Bond by 6.73%, and Xinfeng Convertible Bond by 5.07% [1].

1. Report Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core Viewpoints of the Report - 2026 Q1 may see an increase in convertible bond calls, but high - parity convertible bond valuations are at historical highs. High valuations do not guarantee post - call valuation maintenance, and the pressure on convertible bond prices before and after the call is relatively large. It is recommended to take profit before the call or stop loss in a timely manner after the call based on market conditions [3][7]. - The overall trend of convertible bond valuations is likely to be high - level oscillations, with a possibility of short - term foaming. In January 2026, institutional demand for configuration will support valuations, and if the equity market performs better than expected, valuations may foam [28]. - In December 2025, the convertible bond market oscillated upward, with both convertible bonds and underlying stocks performing strongly, and valuations oscillated and increased. The trading volume of the convertible bond and equity markets decreased, but margin trading funds showed a strengthening trend [48][56]. - The issuance of new convertible bonds slightly increased in December 2025, and the number of new issuance plans continued to rise. The overall scale of holders in the Shanghai and Shenzhen Stock Exchanges decreased, with obvious reductions by insurance funds [3][62]. 3. Summary According to Relevant Catalogs 3.1 Historical Facts and Changes before and after Convertible Bond Calls - **Before the Call Announcement** - High market valuations do not guarantee post - call valuation maintenance. After the call, the valuation compresses to near 0%, and the compression process is basically completed before the call announcement [3][8]. - The strength of the underlying stock before the call can partially offset the compression of convertible bond valuations, but when valuations are high, the pressure on convertible bond prices before the call is still relatively large [3]. - The decline before the call mainly occurs within T - 10 days, and the day of the highest price is advancing [3][16]. - **After the Call Announcement** - In most months, convertible bond prices continue to decline after the call announcement, but in some months with a strong equity market, prices rebound [3][20]. - There is generally a decline of varying degrees on T - day, and the months with price rebounds mainly show strength from T + 1 to T + 15 days [3][21]. - The stronger the equity market, the more delayed the appearance of the highest price [3][25]. 3.2 Valuation Outlook - The overall trend is high - level oscillations, with a possibility of short - term foaming. In December 2025, valuations oscillated upward. As of December 31, 2025, the 100 - yuan par - value fitted conversion premium rate was 34.04%, up 2.50 pct from the end of November, reaching the highest level since 2019 [28]. 3.3 Key Focused Convertible Bonds - From December 1 to December 31, 2025, the convertible bond portfolio rose 3.84%, outperforming the benchmark index by 1.70 pct. Huayi and Xingqiu had obvious increases [41]. - The "Huachuang Convertible Bond" January key - focused portfolio is adjusted to include Xingqiu, Mingli, Yirui, Huachen, Huayi, Yifeng, Ziyin, Qingnong, Zhongyin, and Xingye [43]. 3.4 Market Review - **Market Performance** - In December 2025, the convertible bond market oscillated upward, with a strong performance in the second half of the month. Most sectors of the convertible bond market rose, and technology - related concepts declined. The science and technology and manufacturing sectors showed significant increases, and the cyclical sector also performed well [48][50]. - **Fund Performance** - The trading volume of the convertible bond and equity markets decreased slightly. From December 1 to December 31, 2025, the average daily trading volume of CSI Convertible Bonds was 63.803 billion yuan, a 1.27% decrease from November, and the average daily trading volume of Wind All - A was 1.880842 trillion yuan, a 1.76% decrease from November [56]. - Margin trading funds oscillated and strengthened. As of December 31, 2025, the balance of margin trading in the Shanghai and Shenzhen Stock Exchanges was approximately 2.53 trillion yuan, an increase of 66.664 billion yuan from the end of November. Most industries received net margin purchases [60]. 3.5 Supply and Demand Situation - **New Bond Issuance and Listing** - In December 2025, 7 convertible bonds were issued, with a total scale of 5.494 billion yuan, and 5 new convertible bonds were listed, with a total scale of 3.005 billion yuan. The online new - bond issuance subscription scale increased, with an average effective subscription amount of 8.85 trillion yuan, a 2.61% increase month - on - month [62]. - **Expected Issuance Scale and New Plans** - The total expected issuance scale is approximately 122.663 billion yuan. As of December 31, 2025, 7 listed companies obtained convertible bond issuance approvals, with a planned issuance scale of 8.583 billion yuan; 6 companies' convertible bond issuances passed the review committee, waiting for approvals, with a total scale of 3.361 billion yuan. In December, 6 new board plans were added, with a total scale of approximately 77.9 billion yuan [65]. - **Holder Scale Changes** - The overall scale of holders in the Shanghai and Shenzhen Stock Exchanges decreased. In December 2025, the total par value of convertible bonds held by the two exchanges was 552.692 billion yuan, a decrease of 6.144 billion yuan from November, a 1.10% decline. The scale of public funds increased, while the scale of enterprise annuities decreased [83][87].

Core Viewpoint - The China Convertible Bond Index rose by 0.01% to 493.52 points on December 26, indicating a slight upward trend in the convertible bond market [1] Group 1: Top Gainers - The top gainers in the convertible bond market included: - Jiamei Convertible Bond, which increased by 12.68% - Mengsheng Convertible Bond, which rose by 12.45% - Dazhong Convertible Bond, which saw an increase of 8.69% - Jinzong Convertible Bond, which went up by 6.16% - Beigang Convertible Bond, which gained 4.68% [1] Group 2: Top Losers - The top losers in the convertible bond market included: - Huicheng Convertible Bond, which decreased by 3.46% - Jiazhe Convertible Bond, which fell by 3.17% - Guanzhong Convertible Bond, which dropped by 3.10% - Jingzhuang Convertible Bond, which declined by 3.02% - Huayi Convertible Bond, which saw a decrease of 2.91% [1]

Core Viewpoint - Huakang Clean (301235) announced that the "Huayi Convertible Bond" (bond code: 123251) will pay its first-year interest at face value on December 23, 2025, with an interest distribution of 2.00 yuan (including tax) for every 10 bonds (face value 1,000.00 yuan) [1] Summary by Category - **Company Announcement** - Huakang Clean will distribute the first-year interest for the "Huayi Convertible Bond" on December 23, 2025 [1] - The interest payment is set at 2.00 yuan for every 10 bonds, which corresponds to a face value of 1,000.00 yuan [1]

Core Viewpoint - The article discusses recent announcements regarding convertible bonds, highlighting adjustments and redemption statuses for various bonds, which may impact investment strategies in the convertible bond market [1][2][3]. Group 1: Convertible Bond Announcements - 蓝帆转债 (Blue Fan Convertible Bond) has announced a downward adjustment of less than 0.5 yuan [1][3]. - 华医转债 (Hua Yi Convertible Bond) will not be forcibly redeemed [1][3]. - 巨星转债 (Giant Star Convertible Bond) will not undergo any downward adjustment [2][3]. Group 2: Key Data on Convertible Bonds - 中能转债 (Zhong Neng Convertible Bond) has a current price of 168.200 yuan, with a strong redemption price of 100.010 yuan, and a remaining scale of 0.025 billion yuan [5]. - 立中转债 (Li Zhong Convertible Bond) is priced at 118.260 yuan, with a strong redemption price of 100.390 yuan, and a remaining scale of 0.205 billion yuan [5]. - Z豫光转 (Z Yu Guang Convertible Bond) is currently at 181.919 yuan, with a strong redemption price of 100.106 yuan, and a remaining scale of 0.208 billion yuan [5]. - 中旗转债 (Zhong Qi Convertible Bond) has a current price of 303.000 yuan, with a strong redemption price of 100.805 yuan, and a remaining scale of 0.527 billion yuan [5]. - 楚天转债 (Chu Tian Convertible Bond) is priced at 112.797 yuan, with a strong redemption price of 100.450 yuan, and a remaining scale of 1.671 billion yuan [5].

Group 1 - The core point of the article is that Huakang Clean announced the decision not to redeem the "Huayi Convertible Bonds" in advance during the second meeting of the third board of directors [2] Group 2 - The announcement was made on the evening of December 15 [2] - The decision was approved by the board of directors [2]

Core Viewpoint - Huakang Clean announced that it will not exercise the early redemption rights for the "Huayi Convertible Bonds" to protect the interests of bondholders, considering the short conversion period and current market conditions [1] Summary by Relevant Sections - **Company Decision**: The board of Huakang Clean decided not to redeem the "Huayi Convertible Bonds" early during the meeting held on August 19, 2025 [1] - **Conversion Period**: The bonds have been convertible since June 27, 2025, and the company believes the conversion time is relatively short [1] - **Future Actions**: The company will not exercise early redemption rights for the next three months (from August 20, 2025, to November 19, 2025) if the conditional redemption clauses are triggered again [1] - **Post-Redemption Review**: After November 19, 2025, the company will reassess whether to exercise early redemption rights if the bonds trigger the conditional redemption clauses again, in accordance with relevant laws and regulations [1]

Core Viewpoint - The investigation of the actual controller Tan Pingtao by the Guangdong Provincial Supervisory Committee raises concerns about corporate governance and potential insider trading, particularly in light of his recent significant sell-off of convertible bonds before the investigation was announced [1][3][4]. Group 1: Company Events - On August 13, Huakang Clean announced that its actual controller Tan Pingtao was placed under investigation, with specific reasons undisclosed [1]. - The company activated a temporary management mechanism, appointing director and general manager Xie Xinqiang to assume the responsibilities of chairman and legal representative, emphasizing that daily operations would not be significantly affected [1]. - Tan Pingtao chaired a board meeting to review the semi-annual report just two weeks prior to his detention, indicating the suddenness of the event [1]. Group 2: Convertible Bond Issues - In late 2024, Huakang Clean plans to issue 750 million yuan in convertible bonds, with Tan Pingtao and his wife allocated 44.81% of the total [2]. - Between July 30 and August 4, Tan Pingtao and his wife sold off a significant portion of their holdings, totaling approximately 2.94 million bonds, resulting in cash proceeds of around 2.94 billion yuan [2]. - After the sell-off, Tan Pingtao retained 17.89% of the convertible bonds, while his wife completely exited her position [2]. Group 3: Financial Performance and Concerns - The company reported a 50.73% increase in revenue for the first half of 2025, with a net profit turnaround of 18.68 million yuan; however, the net operating cash flow plummeted to -294 million yuan, a 74.03% year-on-year decline [3]. - The significant cash flow issues are attributed to increased procurement payments and taxes, raising questions about the use of funds from the convertible bond issuance [3]. - The company has 3.827 billion yuan in orders, with 66% from medical projects, but the reliance on advance funding and long repayment cycles continues to pressure cash flow [3]. Group 4: Governance and Structural Issues - The governance structure is criticized for its lack of checks and balances, as Tan Pingtao and his family hold a 51.75% stake, which may facilitate potential misuse of funds [3][6]. - The case highlights the urgent need for governance reform in private enterprises, particularly in the context of the founder's absolute control leading to corporate crises [6]. - The company faces challenges in converting its substantial orders into positive cash flow, especially with the ongoing investigation casting a shadow over its operations [6]. Group 5: Market Reactions and Future Implications - The announcement of the investigation led to a 7.9% drop in the company's stock price, with convertible bond prices also declining, reflecting investor concerns about governance stability [4]. - There is a high probability of regulatory inquiries regarding the timing of the sell-off and the compliance of information disclosure, which could lead to further investigations [4]. - The interim management must act quickly to stabilize cash flow and mitigate the impact of the investigation on ongoing projects to avoid further financial distress [7].

Group 1 - The China Convertible Bond Index rose by 0.09% to 473.35 points on August 14 [1] - The Wind Convertible Bond Equal-weighted Index decreased by 0.12% to 230.16 points [1] - Notable gainers included Jincopper Convertible Bond, Zhanggu Convertible Bond, Yuanshin Convertible Bond, Outong Convertible Bond, and Tianlu Convertible Bond, with increases of 16.25%, 11.93%, 7.64%, 7.17%, and 6.49% respectively [1] - Significant decliners included Lidao Convertible Bond, Haitai Convertible Bond, Jing 23 Convertible Bond, Jiaojian Convertible Bond, and Huayi Convertible Bond, with decreases of 9.70%, 8.74%, 7.68%, 6.09%, and 4.16% respectively [1]

Core Viewpoint - The announcement details the public disclosure and verification of the list of incentive targets for the 2025 Restricted Stock Incentive Plan of Wuhan Huakang Century Clean Technology Co., Ltd, ensuring compliance with relevant laws and regulations [1][2][3] Disclosure Situation - The company has publicly disclosed the names and positions of the incentive targets internally, following the requirements of the relevant laws and regulations [2] - Feedback was collected from the supervisory board regarding the public disclosure [2] Verification Situation - The supervisory board verified the list of proposed incentive targets, including their identification documents and employment contracts with the company and its subsidiaries [2][3] Supervisory Board's Verification Opinion - The supervisory board confirmed that the proposed incentive targets meet the qualifications stipulated by the Company Law, Securities Law, and other relevant regulations [3] - The proposed incentive targets do not fall under any disqualifying conditions as per the management regulations [3] - The incentive targets consist of senior management and core employees, excluding independent directors, supervisors, and major shareholders [3] - The basic information of the incentive targets is accurate, with no falsehoods or significant omissions [3]