Summary of Key Points Core Viewpoint - The company has initiated the process to lift restrictions on a portion of its restricted stock under the fourth phase of its stock incentive plan, with specific details regarding the number of shares and the conditions for lifting the restrictions [2][3][4]. Group 1: Restricted Stock Incentive Plan - The company held meetings on May 27, 2024, where it approved the first vesting period of the second category of restricted stock under the fourth phase of its stock incentive plan, with 331,469 shares (0.005% of total shares) being eligible for release [2][3]. - A total of 780 participants have committed to voluntarily lock up 40% of their vested shares for a period of 8 years, amounting to 7,152,270 shares [3][4]. Group 2: Lifting of Restrictions - The lifting of restrictions applies to 45 shareholders whose original lock-up period was set to expire on June 5, 2032, due to changes in their employment status [3][4]. - All shareholders involved in the lifting of restrictions have adhered to their commitments, and there are no legal restrictions preventing the transfer of the released shares [4][5]. Group 3: Share Structure Changes - The total number of shares before and after the lifting of restrictions remains at 6,653,926,781, maintaining a 100% share structure [6].

Core Viewpoint - The report outlines the issuance of convertible bonds by Wens Food Group Co., Ltd., detailing the bond's terms, management, and the implications of changes in the company's actual controlling shareholders [2][12]. Group 1: Bond Issuance Details - Wens Food Group issued 92,970,000 convertible bonds at a price of 100 RMB each, raising a total of 9,297,000,000 RMB, with net proceeds after fees amounting to 9,227,000,000 RMB [2][8]. - The bonds will pay interest annually and are set to mature on March 28, 2027, with a redemption price of 108% of the face value at maturity [3][5]. Group 2: Major Terms and Conditions - The bonds have a fixed annual interest rate, with interest calculated based on the bondholder's total face value held [3][4]. - The company has the right to adjust the conversion price if the stock price falls below 90% of the current conversion price for 15 out of 30 consecutive trading days [4][6]. - Bondholders can redeem their bonds at face value plus accrued interest under certain conditions, including if the stock price remains below 70% of the conversion price during the last two interest years [6][7]. Group 3: Use of Proceeds - The raised funds will be allocated to various projects, including pig farming (585,726,000 RMB), chicken farming (153,140,740 RMB), waterfowl projects (150,933,000 RMB), and working capital (277,900,000 RMB) [8]. Group 4: Changes in Control - The actual controlling shareholders of Wens Food Group will change on June 4, 2025, with a new agreement extending the control period and adding new members to the controlling group [9][12]. - The new agreement ensures that the controlling shareholders will act in unison regarding shareholder rights and decisions, maintaining the company's governance structure [11][12]. Group 5: Commitments and Compliance - The controlling shareholders have made commitments to avoid conflicts of interest and ensure the company's independent operation, including not engaging in competing businesses [14][15]. - The company will continue to comply with relevant laws and regulations, ensuring that the governance structure remains intact and does not harm the interests of minority shareholders [13][18].

Macro Overview - The Federal Reserve is expected to maintain interest rates for a longer period, with a higher probability of rate cuts occurring in the second half of the year, although the likelihood of a July cut is decreasing due to slow tariff negotiations and resilient economic growth [1][2][7] - The A-share market is anticipated to show stronger resilience due to ongoing policy support aimed at stabilizing and activating the capital market, with a focus on mergers and acquisitions for company transformation [1][12] Equity Market Insights - The U.S. stock market is facing multiple pressures that could trigger a downward spiral, despite some recovery due to eased tariff policies and fiscal stimulus expectations [1][17] - The A-share market is expected to benefit from policies promoting long-term capital inflows and corporate restructuring, with a focus on high-margin assets and sectors boosted by policy support [1][17] Fixed Income Strategy - The convertible bond market is experiencing a decline, with a focus on identifying undervalued securities and opportunities related to redemption clauses [19][20] - The performance of convertible bonds is closely tied to the overall equity market, with a recommendation for a diversified portfolio including specific convertible bonds [19][21] Non-Banking Financial Sector - The "Action Plan for Promoting the High-Quality Development of Public Funds" aims to enhance investor returns and expand the scale of equity investments in public funds, which is crucial for long-term capital market stability [24][28] - The plan emphasizes performance-based fee structures and long-term investment strategies to improve the overall quality of the public fund industry [25][26] Automotive Industry - The automotive sector has shown strong performance in Q1 2025, with significant fund allocation and a continuous increase in holdings by public funds, driven by favorable policies and market conditions [30][31] - The sector is expected to maintain high growth momentum due to new product launches and consumer demand stimulation [30][31] Pharmaceutical Sector - The pharmaceutical industry is under pressure due to cost control measures, with a notable decline in revenue and profit margins, but there are signs of recovery in the innovative drug segment [36][39] - The innovative drug sector is projected to benefit from supportive policies and improving market conditions, leading to potential value recovery [38][39]

1. Report Industry Investment Rating There is no information regarding the industry investment rating in the provided report. 2. Core Viewpoint of the Report The report forecasts the May convertible bond strategy, suggesting a focus on performance as the foundation, with opportunities in oversold targets and terms as the driving forces. It anticipates the end of the phased impact of tariff negatives and advocates for left - side oversold layout under monetary easing. The recommended convertible bond portfolio for May includes Wenshan Convertible Bond, Hongfa Convertible Bond, etc. [3][46] 3. Summary According to the Catalog 3.1 April Convertible Bond Market Review 3.1.1 Convertible Bond Market Review: Resilient Against the Underlying Stocks Amid Tariff Games, with Declining Parity but Rising Valuation - In April, the equity market fell 3.2%, and the convertible bond market followed with a 1.3% decline. The convertible bond ETF scale contracted 5.0% to 41.3 billion yuan. The trading activity of the equity - biased market declined, and the convertible bond parity dropped 7.4% to 86.9 yuan, while the 100 - yuan parity premium rate (MA5) rose 2.8pp to 25.3% [3][5][8] 3.1.2 Industry and Style: Media and Agriculture Led the Gains in April, with Medium - priced, Small - cap, and High - rated Styles Outperforming - In April, most industries' convertible bonds declined. Media (2.8%) and agriculture (1.9%) led the gains, while coal (-3.9%) and power equipment (-3.2%) had the largest declines. In terms of style, medium - priced, small - cap, and high - rated convertible bonds were more advantageous [22][25][29] 3.2 May Convertible Bond Market and Strategy Outlook 3.2.1 Convertible Bond Market Outlook: The End of the Phased Impact of Tariff Negatives, Left - side Oversold Layout Under Monetary Easing - In 2024, the performance of convertible bond underlying stocks was generally under pressure, but there was marginal improvement in Q1 2025. Targets with overseas revenue accounting for over 20% were still 3% more oversold than the industry average in April and may have room for repair. About 32% of convertible bonds that entered the call - back progress and 45% that triggered the call - back clause since last year chose to implement the call - back. The central bank announced a 50BP reserve requirement ratio cut and a 10BP interest rate cut on May 7 [35][41][45] 3.2.2 Convertible Bond Strategy Outlook: Performance as the Foundation, Opportunities in Oversold Targets and Terms as the Driving Forces - The strategy combines a 40% base position of broad - based large - cap targets, 30% for oversold repair, and 30% for call - back clause opportunities. The recommended convertible bond portfolio for May includes Wenshan Convertible Bond, Hongfa Convertible Bond, etc. [46][47] 3.3 Quantitative Strategies: Medium - volatility Strategies Outperformed, High - volatility Strategies Underperformed 3.3.1 Low - volatility Strategy: Low - price Enhancement Strategy - The strategy uses the low - price factor and relaxed the overseas revenue ratio constraint after April 22. The performance from April 1 - 30 was 0.01%, outperforming the benchmark by 1.32%. The current holdings and changes compared to the previous period are also provided [52][53][57] 3.3.2 Medium - volatility Strategy: Improved Dual - low Strategy - The strategy selects convertible bonds with relatively low prices and conversion premium rates. The performance in April was 1.28%, outperforming the benchmark by 2.59%. The current holdings and changes are presented [59][62][63] 3.3.3 High - volatility Strategy: High - price and High - elasticity Strategy - The strategy selects high - price and low - premium convertible bonds and balances industry allocation. The performance in April was - 2.20%, underperforming the benchmark by 0.89%. The current holdings and changes are detailed [65][66][70] 3.4 Primary Market Tracking 3.4.1 May Primary Market Issuance - As of May 5, there were no announced convertible bonds pending listing or issuance in May. Convertible bonds listed in April included Zhengfan Convertible Bond, Haohan Convertible Bond, etc. The issuance process of convertible bonds and the list of recently fast - tracked convertible bonds are also provided [72][73][75]