1. Report's Industry Investment Rating - Not specified in the provided content 2. Core Viewpoints of the Report - In the short term, there is a high certainty that the liability growth rate of the real - sector will rise in February, and the financial sector (funding situation) is okay. Overall, the macro - liquidity is improving, with a positive view on equities, and the value and growth styles are tending to balance. Convertible bonds still have the advantage of asymmetric gains and losses in a volatile environment, and the demand for convertible bonds, especially convertible bond ETFs, may remain rigid. The valuation of the convertible bond market is expected to stay at a high level [23]. 3. Summary According to Relevant Catalogs Market Performance - Last week, due to the confirmation of the new candidate for the Fed Chairman, market risk appetite declined, and various assets fluctuated. Convertible bond prices followed the decline of the underlying stocks, but the valuation of convertible bonds remained at a historical high, and supported by the valuation, convertible bonds performed better than the underlying stocks. The average daily trading volume of the entire convertible bond market was 77.3 billion yuan, with basically no change compared to the previous week. The 100 - yuan premium rate remained at 34%, and the implied volatility fluctuated around the historical extreme point of 45%. The trading sentiment of convertible bonds continued to cool down slightly, and the trading popularity of traditional speculative bonds returned to a historical low. The trends of each sector were consistent with the underlying stocks, and the valuations changed passively. High - price, large - cap, low - rated, and newly - listed bonds had relatively large adjustment ranges [11]. - In a high - valuation environment, most industries are dominated by equity - like convertible bonds and high - price - high - premium convertible bonds. Industries with high - price - high - premium convertible bonds accounting for over 50% include the automotive and computer industries, where the valuation of convertible bonds deviates significantly. Industries with equity - like convertible bonds accounting for over 50% include the military, non - ferrous metals, non - bank finance, machinery, and chemical industries, where convertible bonds have high elasticity and strong offensiveness [11]. Funding Sentiment - Comparing the share fluctuations of various broad - based indices, bond - type, and major commodity (gold) ETFs, last week, the shares of the Shanghai Stock Exchange 50 and CSI 1000 continued to decline significantly, the CSI 500 was newly added as a major reduction target, and the capital inflow trend of the CSI 2000 stopped. The share of gold ETFs continued to increase significantly, with a growth rate of 12%, the same as the previous week. Convertible bond ETFs have maintained a stable net inflow recently, with the fund shares increasing significantly for four consecutive weeks, and the shares continued to grow by 3.5% last week. The share of interest - rate bonds continued to shrink [21]. Investment Strategy - Short - term investment strategy: Be optimistic about equities, with value and growth styles tending to balance. The valuation of the convertible bond market is expected to stay high, but be aware of the call risk and the risk of double - kill of the underlying stocks and valuation during the earnings disclosure period [23]. - Bond - selection suggestions: Emphasize the performance support of the underlying stocks. Pay attention to Jintian Convertible Bond and Guoli Convertible Bond in the UHV sector; Liugong Convertible Bond 2 and Yunji Convertible Bond in the pro - cyclical and engineering overseas sectors; Lixun Convertible Bond in AI applications; Ruichuang Convertible Bond in the military industry. For newly - listed bonds, recommend paying attention to Weidao Convertible Bond, Yongxi Convertible Bond, Weice Convertible Bond, and Dinglong Convertible Bond in the field of domestic substitution of semiconductors; Ruike Convertible Bond in the field of AI server connectors; Jin 05 Convertible Bond (Jinpan Technology) in power grid equipment; Yingliu Convertible Bond for gas turbines; and Jin 25 Convertible Bond (Jinchangxin) [23].

Report Industry Investment Rating No industry investment rating is provided in the report. Core Viewpoints The equity bull market expectation combined with the rigid demand for convertible bonds has led to persistently high valuations in the convertible bond market. Attention should be paid to the risks of forced redemptions and the double - kill of the underlying stocks and valuations during the earnings disclosure period. [4] Summary by Directory 1. Market Performance - Last week, the median convertible bond price continued to rise to 142 yuan. The average daily trading volume of the entire convertible bond market was 78.6 billion yuan, a 15% decrease from the previous week. The 100 - yuan premium rate continued to rise to 35% at its historical high level. The implied volatility fluctuated around the historical extreme of 45%, and the implied volatility spread dropped from around 13% to around 11%. The trading sentiment of convertible bonds cooled marginally, the trading popularity of low - rated convertible bonds was adjusted, but the turnover rate of small - balance convertible bonds remained high. [1] - Among sub - new bonds, the median price of the underlying stocks rose 2.9%, the median price of convertible bonds rose 3.9%, and the conversion premium rate increased by 2.6%. High - parity convertible bonds rose 2.4%, outperforming the underlying stocks by 0.8%. [1] - In a high - level environment, each industry is mainly composed of equity - like convertible bonds and double - high convertible bonds. Industries with more than 50% of double - high convertible bonds include agriculture, forestry, animal husbandry, and fishery, automotive, computer, and pharmaceutical and biological sectors, with relatively high deviations in convertible bond valuations; industries with more than 50% of equity - like convertible bonds include non - ferrous metals, non - bank finance, military, and machinery and equipment, with high elasticity and strong offensive capabilities. [2] 2. Capital Sentiment - Comparing the share fluctuations of various broad - based indices, bond - type, and major commodity (gold) ETFs, last week, the main ETFs represented by the SSE 50 and CSI 1000 had capital outflows, while the CSI 2000 had an inflow of 25% and the gold ETF's share increased by 12%. [3] - The convertible bond ETF has been sought after by funds recently, with its fund shares increasing significantly for three consecutive weeks, and last week, the shares continued to grow by 6%. The share of interest - rate bonds continued to shrink significantly. [3] 3. Investment Strategy - When selecting bonds, emphasis should be placed on the performance support of the underlying stocks. For the latest earnings forecasts, pay attention to Bojun Convertible Bond and Guoli Convertible Bond. [4] - For new bonds, it is recommended to focus on: Weidao Convertible Bond and Yongxi Convertible Bond in the field of domestic substitution of semiconductors; Ruike Convertible Bond in the field of AI server connectors; Jin 05 Convertible Bond for power grid equipment; Yingliu Convertible Bond for gas turbines; Bo 25 Convertible Bond for automotive parts' wire - controlled braking suppliers; and Jin 25 Convertible Bond. [4]

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].