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 - Shenzhen Gas Group Co., Ltd. announced the interest payment details for its convertible bonds "燃23转债" which will commence on July 28, 2025, following the established schedule and terms outlined in the bond issuance documentation [2][4]. Summary by Sections Convertible Bond Issuance Overview - The company issued 30 million convertible bonds on July 27, 2023, with a total value of 300 million RMB, each with a face value of 100 RMB, and a maturity period of six years [2][3]. - The coupon rates are structured to increase annually: 0.20% for the first year, 0.40% for the second year, 0.80% for the third year, 1.20% for the fourth year, 1.80% for the fifth year, and 2.00% for the sixth year [2][3]. Interest Payment Plan - The bonds will pay interest annually, with the first interest payment covering the period from July 27, 2024, to July 26, 2025 [4]. - The interest calculation is based on the formula I = B × i, where I is the annual interest, B is the total face value of the bonds held, and i is the applicable coupon rate for that year [5][6]. Key Dates for Interest Payment - The bondholders' registration date for interest payment is July 25, 2025, with the ex-dividend date and interest payment date both set for July 28, 2025 [8]. Payment Method - The company has appointed China Securities Depository and Clearing Corporation Limited to handle the interest payment process, ensuring that funds are transferred to the designated accounts for distribution to bondholders [9]. Tax Implications for Investors - Individual investors are subject to a 20% tax on interest income, resulting in a net interest payment of 0.32 RMB per bond after tax [10]. - Resident enterprises are responsible for their own tax payments on interest income, while qualified foreign institutional investors are exempt from corporate income tax on interest income until December 31, 2025 [11].

Core Points - The announcement details the interest payment schedule for the "Ran 23 Convertible Bond" issued by Shenzhen Gas Group Co., Ltd. [1][2] - The bond was issued on July 27, 2023, with a total amount of 3 billion RMB, and a maturity period of six years [1][2] - The annual interest payment will be made once a year, with the first payment scheduled for July 28, 2025 [2][3] Summary by Sections Bond Issuance Overview - The company received approval from the China Securities Regulatory Commission to issue 30 million convertible bonds, each with a face value of 100 RMB, totaling 3 billion RMB [1][2] - The bonds are set to mature on July 26, 2029, with an annual interest rate specified in the offering document [1][2] Interest Payment Plan - The interest for the bonds will be calculated based on the formula: I = B × i, where I is the annual interest amount, B is the total face value held, and i is the annual interest rate [2] - Interest payments will be made within five trading days after the interest payment date [2] Key Dates - The bond interest payment record date is July 25, 2025, with the ex-dividend date and payment date both set for July 28, 2025 [3] Payment Method - The company has appointed China Securities Depository and Clearing Corporation Limited to handle the interest payments [4] - If the company fails to transfer the necessary funds on time, it will be responsible for subsequent payment arrangements [4] Taxation on Interest Income - Individual investors are subject to a 20% tax on interest income, resulting in a net payment of 0.32 RMB per bond after tax [5] - Resident enterprises are responsible for their own tax payments on bond interest, with the same net payment applicable [5] - Non-resident enterprises are exempt from corporate income tax on bond interest until November 7, 2025 [5] Contact Information - The issuer is Shenzhen Gas Group Co., Ltd., with contact details provided for further inquiries [6]

Key Insights - As of June 2025, China's foreign exchange reserves stood at 33,174 billion USD, indicating a stable economic environment [1] - The convertible bond market showed a 3.3% increase in June, following a 4.7% rise in the stock market, driven by policy stimuli and geopolitical factors [2][3] - The life sciences upstream sector is experiencing a turning point, with a projected revenue growth of 10.75% year-on-year in 2024, driven by stable investment and domestic substitution trends [7][8] - The North Exchange is expected to maintain high trading activity and market attention, with a focus on new industries such as artificial intelligence and commercial aerospace for the second half of 2025 [12][17] Convertible Bond Market - The convertible bond market's valuation is not overly high, with structural opportunities still available, particularly in sectors showing improved economic conditions such as non-ferrous metals, machinery, agriculture, and computing [4][3] - The market is transitioning from a policy-driven focus to a fundamental pricing approach, with expectations of a 5% economic growth target being met [3][4] - Recommended convertible bonds for July include Guotou Convertible Bond, Ran 23 Convertible Bond, and others, indicating a strategic focus on sectors benefiting from policy support [4] Life Sciences Upstream Sector - The life sciences upstream sector is characterized by high specialization and significant barriers to entry, with major companies expanding and exploring international markets [7][8] - The sector is poised for growth due to the booming demand for innovative drugs, with the Chinese antibody drug market expected to reach 510.8 billion RMB by 2030 [8] - Mergers and acquisitions are becoming more prevalent, with domestic companies looking to replicate the growth paths of global giants, enhancing industry concentration and growth potential [9][10] North Exchange - The North Exchange's trading activity has slightly decreased, with an average daily turnover of approximately 279.83 billion RMB, but it remains higher than other markets [13] - The North Exchange's overall price-to-earnings ratio is around 50.4 times, indicating a slight decline but still higher than other boards, with the electronics sector showing the highest ratios [14] - The North Exchange is optimizing its evaluation system to support the high-quality development of small and medium-sized enterprises, focusing on innovation and market ecology improvement [15][17]

Core Viewpoint - Shenzhen Gas Group Co., Ltd. announced a cash dividend distribution of 0.16 yuan per share for the fiscal year 2024, approved at the annual shareholders' meeting on May 23, 2025 [1][3][14]. Summary by Sections Dividend Distribution - The cash dividend of 0.16 yuan per share will be distributed to all shareholders registered with China Securities Depository and Clearing Corporation Limited, Shanghai Branch, as of the close of trading on the registration date [2][3]. - The total cash dividend distribution amounts to 460,278,507.52 yuan, which represents 31.97% of the net profit attributable to shareholders for the fiscal year 2024 [3]. Implementation Details - The distribution will be executed through the clearing system of China Securities Depository and Clearing Corporation Limited, with shareholders able to receive their dividends at their designated securities firms on the payment date [4][5]. - Specific shareholders, including government and investment entities, will receive their dividends directly from the company [6]. Taxation Information - For individual shareholders and securities investment funds, no withholding tax will be deducted at the time of dividend distribution; tax will be calculated based on the holding period upon the actual transfer of shares [7]. - For qualified foreign institutional investors (QFII) and RMB qualified foreign institutional investors (RQFII), a 10% withholding tax will apply, resulting in a net dividend of 0.144 yuan per share [8]. - Other institutional investors will be responsible for their own tax payments, receiving the full dividend of 0.16 yuan per share [9]. Convertible Bond Adjustment - Following the dividend distribution, the conversion price of the company's convertible bond "燃23转债" will be adjusted from 7.56 yuan to 7.40 yuan per share, effective from June 19, 2025 [9][16][17]. - The convertible bond will be suspended from conversion from June 10 to June 18, 2025, and will resume conversion on June 19, 2025 [16][17].

Group 1 - The company announced an adjustment to the convertible bond conversion price from 7.56 CNY/share to 7.40 CNY/share due to the implementation of the 2024 annual profit distribution plan [1][2][3] - The "Ruan 23 Convertible Bond" will stop conversion from June 10, 2025, and will resume conversion on June 19, 2025 [1][3] - The cash dividend distribution is set at 0.16 CNY per share (including tax) for all shareholders based on the total share capital registered on the dividend distribution date [2] Group 2 - The adjustment formula for the conversion price is based on the cash dividend distribution, calculated as P1 = P0 - D, where P0 is the previous conversion price, D is the cash dividend per share, and P1 is the adjusted conversion price [2] - The adjustment will take effect on June 19, 2025, following the ex-dividend date [3] - The company issued a total of 3 billion CNY in convertible bonds to unspecified investors on July 27, 2023, as approved by the China Securities Regulatory Commission [1]

Group 1 - The company announced a cash dividend distribution of 0.16 yuan per share (including tax) for the 2024 fiscal year, approved at the annual general meeting [2] - The company will not issue bonus shares or increase capital from reserves in the profit distribution plan [2] - The conversion price of the "燃23转债" will be adjusted following the implementation of the dividend distribution [2] Group 2 - The convertible bonds will be suspended from conversion during the dividend distribution process, with resumption of conversion on the first trading day after the record date [2] - Holders of the convertible bonds wishing to benefit from the dividend distribution must convert their bonds by June 9, 2025 [2] - The company has provided contact information for further inquiries regarding the announcement [2]