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]

Core Viewpoint - Hengyi Petrochemical Co., Ltd. announces the interest payment details for its convertible bond "Hengyi Zhuan 2" for the year 2025, with a fixed interest rate of 4.00 CNY per bond [1][2]. Group 1: Bond Issuance and Payment Details - The bond "Hengyi Zhuan 2" was publicly issued on July 21, 2022, and will start paying interest from July 21, 2025, covering the period from July 21, 2024, to July 20, 2025 [1][2]. - The interest payment for this bond is set at 4.00 CNY for every 10 bonds (face value 1,000 CNY each) [2][5]. - The interest will be paid annually, with the principal and final year's interest returned at maturity on July 20, 2028 [2][3]. Group 2: Taxation and Payment Process - Individual bondholders are subject to a 20% withholding tax on the interest income, which will be deducted by the payment agency [4][5]. - Non-resident corporate bondholders are exempt from corporate income tax and value-added tax on the interest income until December 31, 2025 [5]. - The payment of interest will be managed by China Securities Depository and Clearing Corporation Limited, Shenzhen Branch, which will distribute the funds to the designated securities firms or other recognized institutions [3][4]. Group 3: Contact Information and Additional Resources - The issuer, Hengyi Petrochemical Co., Ltd., is located at 260 North Shixin Road, Xiaoshan District, Hangzhou, Zhejiang Province, with contact details provided for further inquiries [5][6]. - Investors can refer to the full prospectus of the bond issued on July 21, 2022, available on the official website for more detailed information [5][6].

Basic Information - Hengyi Petrochemical Co., Ltd. issued the convertible bond "Hengyi Zhuan 2" on July 21, 2022, which began trading on August 18, 2022, under the bond code "127067" [1] - The conversion price of the convertible bond was adjusted from 10.50 CNY/share to 10.41 CNY/share due to the annual equity distribution in 2023, and further adjustments were made for the 2024 annual equity distribution [1] Conversion Price Adjustment - The adjustment of the conversion price is based on the regulations of the Shenzhen Stock Exchange and the company's fundraising prospectus, which stipulates that the conversion price will be adjusted in response to changes in the company's stock due to stock dividends, capital increases, new share issuances, or cash dividends [2] - The formula for adjusting the conversion price is provided, detailing how to calculate the new price based on various factors such as stock dividends, new share prices, and cash dividends [2][3] Recent Developments - On April 28, 2025, the company held board and supervisory meetings, and on May 15, 2025, it convened the annual general meeting to approve the change in the purpose of the second phase of share repurchase from "for employee stock ownership plans or equity incentives" to "for cancellation and reduction of registered capital" [2] - The company plans to cancel 63,703,752 shares from its repurchase account, with the cancellation confirmed by the China Securities Depository and Clearing Corporation on July 9, 2025 [2] New Conversion Price - Following the share repurchase and cancellation, the conversion price of "Hengyi Zhuan 2" will be adjusted to 10.37 CNY/share, calculated using the provided formula [4][5] - The adjustment reflects the previous conversion price of 10.36 CNY/share, the average transaction price of the repurchased shares at 9.79 CNY/share, and the proportion of shares canceled [5]

Group 1 - The core point of the announcement is the adjustment of the conversion prices for the company's convertible bonds, "恒逸转债" and "恒逸转2", due to annual profit distribution plans and other corporate actions [1][2][3][4][5][6][7][8]. - The conversion price for "恒逸转债" has been adjusted multiple times: from 11.50 to 11.20 yuan/share on July 6, 2021, to 11.00 yuan/share on July 7, 2022, to 10.91 yuan/share on June 26, 2024, and finally to 10.41 yuan/share on November 19, 2024 [1][3][5]. - The conversion price for "恒逸转2" was initially set at 10.50 yuan/share and was adjusted to 10.41 yuan/share on June 26, 2024, and further adjusted to 10.15 yuan/share on June 20, 2025 [6][7][8]. Group 2 - The company has issued a total of 200,000 million yuan of "恒逸转债" which has been listed on the Shenzhen Stock Exchange since November 16, 2020 [2]. - The total share capital of the company before the recent adjustments was 3,666,321,336 shares, which increased to 3,666,321,624 shares after the adjustments [9]. - The company distributed cash dividends of 3.00 yuan per 10 shares for the 2020 fiscal year and 1.00 yuan per 10 shares for the 2023 fiscal year [3][4][8].

Core Viewpoint - The company has approved the 2024 annual equity distribution plan, which includes a cash dividend of 0.50 RMB per 10 shares, with a total cash distribution amounting to 165,017,526.75 RMB, after excluding repurchased shares from the total share count [1][3][4]. Group 1: Equity Distribution Plan - The equity distribution plan is based on a total share count of 3,666,321,624 shares, minus 365,971,089 repurchased shares, resulting in a base of 3,300,350,535 shares for the cash dividend calculation [3][4]. - The cash dividend per share is calculated as 0.0450090 RMB, which will be used to adjust the ex-dividend price accordingly [2][6]. - The ex-dividend date is set for June 20, 2025, with the record date being June 19, 2025 [5]. Group 2: Shareholder Rights and Taxation - Shares held in the company's repurchase account will not participate in the profit distribution, meaning those shares are excluded from the dividend calculation [3][4]. - Different tax rates apply for various categories of shareholders, with specific provisions for foreign investors and domestic funds regarding dividend tax [4][5]. Group 3: Convertible Bonds Adjustment - The conversion prices for the company's convertible bonds will be adjusted following the equity distribution, with "恒逸转债" changing from 9.20 RMB to 9.15 RMB per share, and "恒逸转2" from 10.41 RMB to 10.36 RMB per share, effective from June 20, 2025 [5][6].