Group 1 - The report highlights that the convertible bond strategy for April 2026 focuses on stability and defensiveness, emphasizing valuation cost-effectiveness and performance certainty, particularly in the chemical, new energy, and cyclical sectors [2][11][17] - Since late February, external uncertainties have increased, leading to a simultaneous adjustment in the A-share and convertible bond markets, with geopolitical conflicts in the Middle East significantly boosting global risk aversion and impacting market dynamics [11][12][14] - The convertible bond market has seen a notable release of price and valuation pressure, with the median price dropping from 143 yuan to around 134 yuan, and the premium rate compressing from 35% to 32%, indicating a significant adjustment [15][18] Group 2 - The report suggests focusing on two aspects for bond selection: bonds with relatively low prices and stable credit ratings for down protection, and equity-type targets with clear underlying logic and no short-term redemption pressure, which are expected to recover first as market sentiment improves [16][19] - The top ten convertible bonds for April 2026 are recommended based on their performance in the context of rising oil prices and inflation expectations, with specific recommendations including HeBang, WanKai, and NengHua bonds in the chemical sector, and ZhuoBang, JingNeng, and JieNeng bonds in the new energy sector [17][19] - The cyclical sector is highlighted for its potential for profit elasticity and valuation recovery, with recommendations for DongNan, YaKe, and KeShun bonds as the economy shows signs of recovery and growth policies take effect [17][19]

Group 1 - The report highlights that recent geopolitical risks have led to increased volatility in the A-share market, causing a decline in investor expectations for the stock market throughout the year. This is reflected in the adjustment of the premium rates for equity-linked convertible bonds, with current valuations for bonds priced between 100-120 yuan being lower than historical medians for bonds priced below 100 yuan [1][11] - The analysis indicates that the median conversion premium for convertible bonds with conversion values in the ranges of 120-150 yuan and above 150 yuan has significantly decreased recently, returning to levels seen in December 2025 [1][11] - In the context of domestic industrial upgrades, certain high-end manufacturing and electronics companies are expected to yield excess returns in the medium to long term. These convertible bonds, due to higher volatility in their underlying stocks, typically exhibit higher premium rates compared to other bonds at similar parity [1][11] Group 2 - The report notes that the valuation of "offensive" high-quality convertible bonds has adjusted significantly due to cooling investor expectations. If geopolitical risks decrease or market pricing stabilizes, the A-share market is expected to trend upwards again, potentially enhancing the performance of equity-linked convertible bonds [2][12] - The weekly strategy indicates that most stock indices have adjusted, with the China Convertible Bond Index declining by 3.15%. Despite this, the long-term outlook for the stock market remains optimistic, with expectations of continued inflows of capital into the market in 2026 [3][15] - The report suggests focusing on convertible bonds in sectors such as AI and semiconductor industries, which are expected to benefit from rising overseas demand and domestic advancements. Specific bonds recommended include those from companies like Ruike, Qizhong, and Huayi [3][16]

Group 1 - Haineng Industrial's shareholders plan to reduce their holdings by no more than 1% of shares [1] - Changgao Convertible Bond will be available for subscription on March 9 [1] - Tongling Technology's new shares will be listed on the Beijing Stock Exchange [1] Group 2 - Convertible bond data includes various bonds with their current prices, redemption prices, last trading dates, last conversion dates, conversion values, remaining scales, and the proportion of convertible bonds to the underlying stocks [3] - Notable convertible bonds include Huazhong Convertible Bond with a current price of 107.055 and a remaining scale of 1.7508 billion [3] - Other convertible bonds listed show varying premium rates and remaining scales, indicating potential investment opportunities [5]

Core Viewpoint - The China Convertible Bond Index opened with a rise of 0.18%, reaching 531.72 points on February 25 [1] Group 1: Market Performance - The top gainers in the convertible bond market included Youcai Convertible Bond, Baichuan Convertible Bond 2, HeBang Convertible Bond, Youfa Convertible Bond, and Keshun Convertible Bond, with increases of 16.65%, 5.93%, 3.93%, 3.05%, and 2.09% respectively [1] - The top losers were Fengyu Convertible Bond, Daimei Convertible Bond, Jiayuan Convertible Bond, Jiazhe Convertible Bond, and Yongji Convertible Bond, which saw declines of 1.92%, 1.42%, 1.24%, 1.13%, and 0.95% respectively [1]

Core Viewpoint - The convertible bond market showed positive performance with the China Convertible Bond Index rising by 0.82% to 530.76, and a total trading volume of 61.523 billion yuan on the day [1]. Group 1: Convertible Bond Performance - A total of 370 convertible bonds were traded, with 287 rising, 0 remaining flat, and 83 declining [1]. - Notably, 59 convertible bonds had gains exceeding 2%, with Shandong Glass Fiber Convertible Bond (111001) up by 18.11%, Shuangliang Energy Convertible Bond (110095) up by 17.86%, and Nanjing Julong Convertible Bond (123209) up by 14.04% [2]. - Conversely, 13 convertible bonds experienced declines over 2%, with Deepin Technology Convertible Bond (123210) down by 13.86%, Yongchuang Intelligent Convertible Bond (113654) down by 6.36%, and Dingjie Intelligent Convertible Bond (123263) also down by 6.36% [2]. Group 2: Corresponding Stock Performance - Among the stocks corresponding to the traded convertible bonds, 270 stocks rose, 5 remained flat, and 95 declined [1]. - Specifically, 24 convertible bonds had corresponding stocks that increased by more than 5%, with Hebang Biological (603077) hitting the daily limit and rising by 10.08%, while its corresponding convertible bond, Hebang Convertible Bond (113691), rose by 6.33% [1]. - There were 3 convertible bonds linked to stocks that fell by more than 5%, but no stocks hit the daily limit down [1].

1. Report Industry Investment Rating No relevant content provided. 2. Report's Core View The report presents the top ten convertible bonds in January 2026, including their credit ratings, closing prices at the end of December, conversion premium rates, and the trailing twelve - month price - to - earnings ratios (PE - TTM) of their underlying stocks. It also details the business profiles, financial performance, and key highlights of the companies corresponding to these convertible bonds [2][4][6]. 3. Summary by Company 3.1 Zhongte Convertible Bond - **Company Overview**: A globally leading specialized special - steel material manufacturer with an annual production capacity of about 20 million tons of special - steel materials. It has multiple production and raw - material bases, forming a coastal and riverside industrial chain layout [11]. - **Financial Performance**: In 2024, its operating income was 109.203 billion yuan (YoY - 4.22%), net profit attributable to the parent company was 5.126 billion yuan (YoY - 10.41%). In the first three quarters of 2025, operating income was 81.206 billion yuan (YoY - 2.75%), and net profit attributable to the parent company 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 specification. It has a complete industrial chain, leading cost - control ability, and is seeking external expansion opportunities [12]. 3.2 Shanlu Convertible Bond - **Company Overview**: Focuses on road and bridge engineering construction and maintenance, and is 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%), net profit attributable to the parent company was 2.322 billion yuan (YoY + 1.47%). In the first three quarters of 2025, operating income was 41.354 billion yuan (YoY - 3.11%), and net profit attributable to the parent company was 1.41 billion yuan (YoY - 3.27%) [29]. - **Company Highlights**: It has the concept of China - specific valuation, potential for improvement in balance sheet and orders, benefits from regional infrastructure plans, and is exploring overseas markets [30]. 3.3 Hebang Convertible Bond - **Company Overview**: Has advantages in resource supply and has completed a basic layout in the chemical, agricultural, and photovoltaic fields, with four major business segments [44]. - **Financial Performance**: In 2024, its operating income was 8.547 billion yuan (YoY - 3.13%), net profit attributable to the parent company was 31 million yuan (YoY - 97.55%). In the first three quarters of 2025, operating income was 5.927 billion yuan (YoY - 13.02%), and net profit attributable to the parent company was 93 million yuan (YoY - 57.93%) [44]. - **Company Highlights**: Its phosphate mines and salt mines contribute profits, and its liquid methionine production is a major profit - contributor [45]. 3.4 Huayuan Convertible Bond - **Company Overview**: Focuses on building a complete vitamin D3 upstream - downstream industrial chain, with products in the vitamin and chemical - preparation fields [56]. - **Financial Performance**: In 2024, its operating income was 1.243 billion yuan (YoY + 13.58%), net profit attributable to the parent company was 309 million yuan (YoY + 60.76%). In the first three quarters of 2025, operating income was 936 million yuan (YoY - 0.2%), and net profit attributable to the parent company was 234 million yuan (YoY - 3.07%) [56]. - **Company Highlights**: It has leading products in the market, is expanding its product matrix, and has a strong layout in the pharmaceutical manufacturing field [57]. 3.5 Xingye Convertible Bond - **Company Overview**: One of the first joint - stock commercial banks in China, evolving into a modern financial service group with multiple financial licenses [70]. - **Financial Performance**: In 2024, its operating income was 212.226 billion yuan (YoY + 0.66%), net profit attributable to the parent company was 77.205 billion yuan (YoY + 0.12%). In the first three quarters of 2025, operating income was 161.234 billion yuan (YoY - 1.82%), and net profit attributable to the parent company was 63.083 billion yuan (YoY + 0.12%) [70]. - **Company Highlights**: It has stable asset quality and scale growth, with a large number of customers [71]. 3.6 Aima Convertible Bond - **Company Overview**: The leading enterprise in the electric two - wheeled vehicle industry, producing and selling electric bicycles, scooters, and motorcycles [80]. - **Financial Performance**: In 2024, its operating income was 21.606 billion yuan (YoY + 2.71%), net profit attributable to the parent company was 1.988 billion yuan (YoY + 5.68%). In the first three quarters of 2025, operating income was 21.093 billion yuan (YoY + 20.78%), and net profit attributable to the parent company was 1.907 billion yuan (YoY + 22.78%) [80]. - **Company Highlights**: It may benefit from government subsidies, new national standards, and has potential for improving gross margins [81]. 3.7 Chongyin Convertible Bond - **Company Overview**: 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 included in the "Leading Sheep" plan [90]. - **Financial Performance**: In 2024, its operating income was 13.679 billion yuan (YoY + 3.54%), net profit attributable to the parent company was 5.117 billion yuan (YoY + 3.8%). In the first three quarters of 2025, operating income was 11.74 billion yuan (YoY + 10.4%), and net profit attributable to the parent company was 4.879 billion yuan (YoY + 10.19%) [90]. - **Company Highlights**: It benefits from the regional economic development, has stable asset - scale growth, and actively adjusts its business strategies [91][94]. 3.8 Tianye Convertible Bond - **Company Overview**: The first industrial enterprise of the Xinjiang Production and Construction Corps, 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%), net profit attributable to the parent company was 68 million yuan (YoY + 108.83%). In the first three quarters of 2025, operating income was 7.97 billion yuan (YoY + 2.2%), and net profit attributable to the parent company was 7 million yuan (YoY - 28.79%) [103]. - **Company Highlights**: It has cost - advantage in caustic soda production and plans to increase dividend frequency and has coal - mine projects in progress [106]. 3.9 Aorui Convertible Bond - **Company Overview**: 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%), net profit attributable to the parent company was 355 million yuan (YoY + 22.59%). In the first three quarters of 2025, operating income was 1.237 billion yuan (YoY + 13.67%), and net profit attributable to the parent company was 354 million yuan (YoY + 24.58%) [119]. - **Company Highlights**: It is optimizing its distribution network, expanding its overseas market for preparations, and has high - quality customer resources [120]. 3.10 Yushui Convertible Bond - **Company Overview**: The largest water supply and drainage integrated enterprise in Chongqing, with a monopoly position in the local market [133]. - **Financial Performance**: In 2024, its operating income was 6.999 billion yuan (YoY - 3.52%), net profit attributable to the parent company was 785 million yuan (YoY - 27.88%). In the first three quarters of 2025, operating income was 5.568 billion yuan (YoY + 7.21%), and net profit attributable to the parent company was 779 million yuan (YoY + 7.1%) [133]. - **Company Highlights**: It has a high market share, is expanding its business regionally, and has achieved cost control through intelligent applications [134].

Investment Rating - The report assigns an "Accumulate" rating for the basic chemical industry [2] Core Insights - The report highlights the upward trend in the prices of storage chips (DRAM), which benefits upstream semiconductor materials [4] - It notes significant profit growth for New Yangfeng, with a year-on-year increase of 23.87% in net profit excluding non-recurring items [4] - Strategic collaborations, such as the one between Boyuan Co. and Dingsheng Technology, are aimed at overcoming key material bottlenecks in solid-state batteries [4] Summary by Sections Investment Recommendations - Focus on convertible bonds in the basic chemical sector, including Zhaobang Convertible Bond, Yangfeng Convertible Bond, and others [4] Market Performance - The report reviews the performance of issued convertible bonds in the basic chemical sector from December 19 to December 26, 2025, noting increases of 14.32% for Kaisheng Convertible Bond, 13.93% for Songlin Convertible Bond, and 12.31% for Zhenhua Convertible Bond, while Su Li, Qilin, and Kesi Convertible Bonds saw declines of 2.77%, 1.79%, and 0.42% respectively [5][6] Upcoming Convertible Bonds - As of December 26, 2025, several companies, including Jiangshan Co., Shuangle Co., and others, have received shareholder approval for their convertible bond proposals [4][12]

Investment Rating - The report assigns an "Overweight" rating for the basic chemical industry [1]. Core Insights - The report highlights the focus on convertible bonds in the basic chemical sector, specifically mentioning several bonds such as Qilin Convertible Bond, Zhoubang Convertible Bond, Yangfeng Convertible Bond, Miwei Convertible Bond, Huakang Convertible Bond, and Hebang Convertible Bond as key investment opportunities [3][4]. - The report notes that the prices of storage chip DRAM are continuously rising, which benefits the upstream semiconductor materials [4]. - The report provides a summary of the performance of various convertible bonds in the basic chemical sector, indicating significant price increases for some bonds, such as Songlin Convertible Bond, which rose by 19.20%, and Su Li Convertible Bond, which increased by 7.42% [5][8]. Summary by Sections Convertible Bond Performance - The report details the performance of issued convertible bonds in the basic chemical sector, with notable increases in prices for bonds like Songlin Convertible Bond (up 19.20%), Su Li Convertible Bond (up 7.42%), and Shuiyang Convertible Bond (up 5.18%) [5][8]. - Conversely, some bonds such as Xin Hua Convertible Bond, Yong 22 Convertible Bond, and Fu Xin Convertible Bond experienced declines of 1.72%, 3.33%, and 3.37% respectively [5][8]. Upcoming Convertible Bonds - As of December 23, 2025, several companies, including Jiangshan Co., Shuangle Co., and Bailong Chuangyuan, have received shareholder approval for their convertible bond proposals [9]. - The report lists companies with pending convertible bond proposals, indicating ongoing developments in the sector [9][12].

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 convertible bond market showed mixed performance with the Zhongzheng Convertible Bond Index rising by 0.1% to 482.09, and a total trading volume of 53.624 billion yuan [1] Convertible Bonds Performance - A total of 395 convertible bonds were traded today, with 215 rising, 0 unchanged, and 180 declining [1] - 21 convertible bonds saw gains exceeding 2%, with notable performers including: - Furong Convertible Bond (113672) up 7.71% - Fuxin Convertible Bond (111012) up 7.14% - Guanzhong Convertible Bond (123207) up 6.54% [2] - Conversely, 12 convertible bonds experienced declines over 2%, with: - Huicheng Convertible Bond (123118) down 9.78% - Yingbo Convertible Bond (123249) down 6.45% - Dazhong Convertible Bond (127070) down 4.73% [2] Corresponding Stocks Performance - Among the stocks corresponding to the traded convertible bonds, 241 rose, 12 remained unchanged, and 142 fell [1] - 12 stocks had gains exceeding 5%, including: - Asia Pacific Technology (002540) up 10.06% - Hebang Bio (603077) up 10.05% - Furong Technology (603327) up 10.01% [1] - 2 stocks saw declines over 5%, with: - Huitong Group (603176) down 9.94% - Corresponding Huicheng Convertible Bond (113665) down 3.46% [1]