1. Report Industry Investment Rating No information provided in the report regarding the industry investment rating. 2. Core Viewpoints of the Report - Last week, the median convertible bond price dropped from 132 yuan to 129 yuan, with the average daily turnover in the entire convertible bond market remaining at a relatively low level of 65.2 billion yuan. The median conversion premium rate increased from 27.8% to 28.5%, and the implied volatility decreased from 37% to 35.5% (historical quantile of 73%). The trading sentiment of convertible bonds recovered, and the turnover rates of extremely low - balance and low - rated convertible bonds increased. After the market adjustment, the proportion of dual - low convertible bonds in industries such as commercial trade, banking, non - banking, and transportation increased [1]. - Last week, the risk appetite of funds continued to decline. The share of gold ETFs increased significantly by 22.7%, the share of dividend - concept ETFs increased by 5.2%, while the shares of stock - type and convertible bond ETFs decreased, with the decrease rate of convertible bond ETF fund shares (-3.5%) slightly larger than that of the overall stock - type ETFs (-2.6%) [2]. - After the TACO transaction was confirmed last weekend, the market risk appetite recovered. Structurally, overall attention should be paid to the performance realization of the underlying stocks. Combine performance and focus on Q3 performance - promising targets and sub - new convertible bonds [3][4]. 3. Summary by Relevant Catalogs Market Performance - The median convertible bond price decreased from 132 yuan to 129 yuan, the average daily turnover in the entire convertible bond market was 65.2 billion yuan, remaining at a low level. The median conversion premium rate rose from 27.8% to 28.5%, and the implied volatility dropped from 37% to 35.5% (historical quantile of 73%). The trading sentiment of convertible bonds improved, and the turnover rates of extremely low - balance and low - rated convertible bonds went up. Due to the protection of the bond floor in a falling market, the valuation of low - price convertible bonds increased significantly, outperforming other sectors. After the market adjustment, the proportion of dual - low convertible bonds in commercial trade, banking, non - banking, and transportation increased [1]. Funds Sentiment - Comparing the share fluctuations of various broad - based indexes, bond - type, and major commodity (gold) ETFs, last week, the risk appetite of funds continued to decline. The share of gold ETFs increased by 22.7%, the share of dividend - concept ETFs increased by 5.2%, while the shares of stock - type and convertible bond ETFs decreased. The decrease rate of convertible bond ETF fund shares (-3.5%) was slightly larger than that of the overall stock - type ETFs (-2.6%) [2]. - In September, bond investors such as insurance, social security, and securities asset management concentrated on reducing their holdings of convertible bonds, with the reduction amplitude significantly larger than the shrinkage amplitude of the convertible bond market scale. Retail investors maintained a selling trend in a relatively strong stock market. Convertible bond ETFs provided certain liquidity to the convertible bond market, and the public - offering convertible bond holdings remained stable [23]. Investment Strategy - After the TACO transaction was confirmed last weekend, the market risk appetite recovered. Focus on the performance realization of the underlying stocks and pay attention to the following directions: - Q3 performance - promising targets: 1) Technologically leading manufacturers in the domestic substitution field, such as Dinglong Co., Ltd. (Dinglong Convertible Bond) and Guoli Electronics (Guoli Convertible Bond). 2) Companies in high - growth sectors with continuous technological upgrades, like Daotong Technology (Daotong Convertible Bond) and Luxshare Precision (Luxshare Convertible Bond). 3) Industries benefiting from anti - involution price increases, such as power equipment and chemicals, including Zhuhai Guanyu (Guanyu Convertible Bond) and Limin Co., Ltd. (Limin Convertible Bond) [3]. - Sub - new convertible bonds: Due to the intensified supply - demand contradiction in the convertible bond market, the elasticity and valuation of sub - new convertible bonds have been pushed up, and many are popular themes with good performance. They are worth paying attention to during market pullbacks, such as Jinwei Convertible Bond, Weidao Convertible Bond, etc. [4]. - Considering the performance realization, convertible bonds such as Changyin Convertible Bond, Chongyin Convertible Bond, etc., are worthy of attention. The dumbbell strategy portfolio remained unchanged this period and outperformed the CSI Convertible Bond Index by 1.77 percentage points last week [28][29].

Fundraising Overview - The company has received approval from the China Securities Regulatory Commission to issue 4,800,000 convertible bonds at a face value of RMB 100 each, raising a total of RMB 480 million, with a net amount of RMB 466,974,528.31 after deducting issuance costs [1][2] - The funds will be stored in a dedicated account and a tripartite supervision agreement has been signed with the underwriter and the bank [2][3] Tripartite Supervision Agreement - The company established a special account at China Merchants Bank for the project "High-end Electronic Vacuum Devices and Integrated Systems Intelligent Manufacturing Expansion Project" [3][4] - The agreement outlines that the funds in the special account are solely for the designated project, with the underwriter responsible for supervising the fund's usage [4][5] Securities Name Change - The company will change its stock abbreviation from "Guoli Co., Ltd." to "Guoli Electronics" effective September 11, 2025, while the stock code remains unchanged [9][12] - The name change reflects the company's strategic focus on the electronics sector, enhancing brand recognition and aligning with its core business [11][12] Convertible Bond Buyback Notice - The company announced a buyback price of RMB 100.22 per bond during the buyback period from September 2 to September 8, 2025 [15][22] - Holders of the convertible bonds have the option to sell back their bonds at this price, which includes accrued interest [18][23]

Core Points - The company announced the first notice regarding the optional repurchase of its convertible bonds, "Guoli Convertible Bonds" [1] - The repurchase price is set at 100.22 RMB per bond, including the current interest [1][4] - The repurchase period is from September 2, 2025, to September 8, 2025, with funds to be disbursed on September 11, 2025 [1][4] Summary by Sections Repurchase Terms and Price - The repurchase terms allow bondholders to sell back their bonds at a price of 100.22 RMB per bond, which includes accrued interest calculated based on the bond's face value and interest rate [3][4] - The repurchase is not mandatory, and bondholders can choose whether to participate [4][5] Bond Issuance and Fund Utilization - The company issued 4.8 million convertible bonds on June 12, 2023, with a total issuance amount of 48 million RMB [2] - The company plans to adjust the use of raised funds for a new project, reducing the initial allocation for one project and reallocating it to another [2][3] Trading and Repurchase Procedures - During the repurchase period, "Guoli Convertible Bonds" will continue to trade but will not be convertible into shares [5] - Bondholders must submit their repurchase requests through the Shanghai Stock Exchange trading system during the specified period [4][5]

Group 1 - The company issued convertible bonds with a total face value of RMB 480 million, with a maturity of 6 years [1][2] - The net amount raised after deducting issuance costs was RMB 466,974,528.31 [1] - The company has established a special account for the raised funds and signed a storage supervision agreement with the sponsor and the commercial bank [2] Group 2 - The additional redemption clause for the convertible bonds became effective after the company held a temporary shareholders' meeting and a bondholders' meeting [2][3] - Holders of the convertible bonds have the right to redeem their bonds at face value plus accrued interest if there are significant changes in the use of raised funds [2][3] Group 3 - The redemption price for the bonds in the third year is set at RMB 100.22 per bond, which includes accrued interest [3][4] - The redemption period is from September 2, 2025, to September 8, 2025 [4] - The company will announce the results of the redemption and its impact after the redemption period [4] Group 4 - The convertible bonds will continue to trade during the redemption period, but conversion will be suspended [4] - If the total face value of the bonds in circulation falls below RMB 30 million due to redemptions, trading will still continue until the end of the redemption period [4] Group 5 - The sponsor has confirmed that the redemption matters comply with relevant laws and regulations [5]

Core Points - The announcement details the buyback option for the "Guoli Convertible Bonds" with a buyback price of 100.22 RMB per bond, including accrued interest [1][5] - The buyback period is set from September 2, 2025, to September 8, 2025, with funds to be disbursed on September 11, 2025 [1][5] - During the buyback period, the "Guoli Convertible Bonds" will stop conversion into shares [1][5] Buyback Terms - The buyback is not mandatory; bondholders have the right to choose whether to sell their bonds back to the company [1][5] - The buyback price is based on the face value plus accrued interest, calculated using the formula: IA = B × i × t / 365 [3][4] - If the total face value of the convertible bonds falls below 30 million RMB due to buybacks, the bonds will continue to trade until the end of the buyback period [6] Trading and Procedures - Bondholders can sell part or all of their unconverted bonds during the buyback period [4][5] - The buyback application period is from September 2, 2025, to September 8, 2025, and applications cannot be revoked once confirmed [5] - The bonds will continue to trade during the buyback period, but conversion will be halted [5][6]

Group 1 - The bondholders' meeting for "Guoli Convertible Bonds" was held on August 25, 2025, with a total of 3 participants representing 728,730 convertible bonds, accounting for 15.1824% of the total outstanding bonds [1][2] - The meeting was convened by the company's board of directors and chaired by Mr. Yin Jianping, following the regulations of the Company Law and the company's articles of association [2] - The resolutions passed during the meeting are binding on all bondholders, including those who did not attend or voted against the resolutions [1][2] Group 2 - The meeting's procedures, including the qualifications of the convenor and attendees, as well as the voting process, complied with relevant laws and regulations [2] - The legal representatives confirmed that the meeting's convening and voting procedures were in accordance with applicable laws and the bondholders' meeting rules [2]

Group 1 - The core opinion of the article is that the bondholders' meeting of Kunshan Guoli Electronics Technology Co., Ltd. was conducted in accordance with relevant laws and regulations, and the resolutions passed during the meeting are valid [1][4] Group 2 - The bondholders' meeting was convened by the company's board of directors and the notice was published on August 8, 2025, detailing the meeting's time, location, and agenda [2][3] - The meeting was attended by representatives of bondholders who held a total of 728,730 bonds, accounting for 15.1824% of the total outstanding bonds with voting rights [2][3] - The resolution regarding the change of certain fundraising projects for the convertible bonds was approved unanimously, with 100% of the voting rights in favor [3][4]

Core Viewpoint - The company is convening a shareholder meeting to discuss several key proposals, including changes to registered capital, the cancellation of the supervisory board, and amendments to the company's articles of association [1][6][9]. Group 1: Meeting Procedures - The meeting will require attendees to confirm their identity and sign in to ensure proper attendance [2][3]. - Attendees have the right to speak, inquire, and vote during the meeting, but must register in advance to speak [2][3]. - Voting will be conducted both on-site and online, with specific time frames for each method [5][6]. Group 2: Proposals - Proposal 1 involves changing the registered capital and abolishing the supervisory board, with the supervisory board's functions being transferred to the audit committee of the board of directors [6][8]. - Proposal 2 aims to amend various governance documents to enhance the company's governance structure and operational compliance [9][10]. - Proposal 3 seeks to adjust the funding allocation for a convertible bond project, reducing the budget for one project and reallocating it to a new project focused on high-end electronic vacuum devices [10][11]. Group 3: Financial Details - The company has reduced its registered capital by RMB 619,468, resulting in a new total of RMB 9,531,553,600 [7][8]. - As of June 30, 2025, a total of RMB 18,000 has been converted into company stock from the convertible bonds issued [6][7].

Core Points - The meeting is convened to discuss the proposal for changing the use of raised funds from the convertible bonds, specifically reducing the funding for one project and reallocating it to another project [5][6]. Group 1: Meeting Procedures - The meeting will be organized by a working group led by the company's board secretary to ensure proper procedures and order [1]. - Bondholders must arrive 30 minutes prior to the meeting for registration and must present necessary identification documents [2]. - Bondholders have the right to speak, consult, and vote during the meeting, with specific guidelines on how to register for speaking and the limits on speaking time [3]. Group 2: Voting Process - The meeting will utilize a combination of on-site and remote voting, with each bond representing one vote [4]. - Voting will be conducted through a named ballot system, and improperly filled ballots will not be counted [4]. - Two bondholders will be elected to oversee the counting of votes, ensuring transparency in the voting process [4]. Group 3: Proposal Details - The proposal includes a reduction in the funding for the "Wind and Solar Storage and Flexible Direct Current Transmission and Distribution Equipment Production Project" from 200 million RMB to 57.5 million RMB [5]. - The reallocated funds will be directed towards a new project focused on "High-end Electronic Vacuum Devices and Integrated Systems Intelligent Manufacturing Expansion," expected to be completed by 2027 [5][6].

Group 1 - The company held its 15th meeting of the third supervisory board on August 4, 2025, with all three supervisors participating in the voting, complying with relevant laws and regulations [1] - The supervisory board approved the proposal to change the registered capital, cancel the supervisory board, and amend the company's articles of association, allowing the audit committee of the board to assume the supervisory board's responsibilities [1][2] - The proposal to change part of the fundraising projects for the company's convertible bonds was also approved, aligning with the company's strategic planning and operational needs [2][3] Group 2 - The company approved a proposal for its subsidiary, Kunshan Guoli Yuantong New Energy Technology Co., Ltd., to implement equity incentives through capital increase, which is expected to enhance internal motivation and align employee interests with those of the company [3] - The voting results for the equity incentive proposal included 2 votes in favor, 0 against, 0 abstentions, and 1 abstention due to conflict of interest [3]