1. Report Industry Investment Rating No investment rating for the industry is provided in the report. 2. Core Viewpoints of the Report - Risk preference recovery and the strengthening of the equity nature in the convertible bond market suggest that the liquidity style is expected to strengthen again. The convertible bond market has entered the "high-beta stage of a slow bull market", with the pricing logic shifting from "bond defense" to "equity elasticity". The liquidity factor is expected to strengthen once more [1]. - In the short - term, as the global market's expectation of recent liquidity tightness eases marginally, the correction space of the convertible bond market with sufficient incremental funds may be limited. Under the slow - bull expectation, the equity market's spring rally is in the making, and the convertible bond market still has structural opportunities [2][11]. - In the medium - term, the marginal improvement in liquidity and market structural characteristics highlight the allocation value of the liquidity style. The liquidity factor is expected to shift from "steady contribution" to "strong performance" [3][18]. - In the long - term, the convertible bond market shows obvious liquidity premium. The liquidity style has the best performance under a market - neutral condition [4][12]. 3. Summary According to the Table of Contents 3.1 Convertible Bond Weekly Thinking - From December 15th to December 19th, 2025, the small - and medium - cap stocks' trend was initially weak and then strong. The convertible bond market fluctuated upward following the underlying stocks. High - priced targets performed weakly, while low - priced convertible bonds performed strongly. The increase of convertible bonds was significantly lower than that of the underlying stocks due to the drag of high - priced convertible bonds. In terms of industries, the materials (+1.62%), optional consumption (+1.04%), and healthcare (+0.97%) sectors strengthened, while the finance (-0.43%) and information technology (-0.11%) sectors weakened [2][11]. - The Bank of Japan's interest rate hike was finalized this week, removing the suppressing factor for risk preference. The U.S. CPI data on Friday was lower than market expectations, providing more room for the subsequent monetary easing policy of the Federal Reserve [2][11]. 3.2 Convertible Bond Market Tracking 3.2.1 Convertible Bond Market Conditions - The report presents the performance of various convertible bond indices in different time periods (recent week, recent two weeks, since September, recent month, recent two months, recent half - year, and recent one - year), such as the Wind Convertible Bond Energy Index, Wind Convertible Bond Materials Index, etc [21]. 3.2.2 Convertible Bond Individual Securities - The report shows the top ten and bottom ten convertible bond individual securities in terms of price increase and decrease in the recent week, but specific names and data are not fully presented [22][24]. 3.2.3 Convertible Bond Valuation - The report provides the moving average trends of the conversion premium ratios of bond - like, balanced, and equity - like convertible bonds over the weeks [28][30][34]. 3.2.4 Convertible Bond Prices - The report shows the trends of the proportion of high - priced bonds and the median price of convertible bonds [31][32].

Core Insights - The report highlights the performance of three investment strategies: Low Price Enhancement, Improved Dual Low, and High Price High Elasticity, which recorded returns of 1.3%, 0.5%, and 0.7% respectively during the last period, outperforming the benchmark return of 0.3% [1] - Year-to-date, these strategies have achieved returns of 17.4%, 28.2%, and 52.2%, with cumulative excess returns of 0.3%, 11.2%, and 35.2% compared to the benchmark return of 17.0% [1] - The equity market experienced fluctuations, with the Wind All A and CSI Convertible Bonds rising by 1.5% and 0.3% respectively, indicating a resurgence of low volatility strategies [1] Low Price Enhancement Strategy - The latest holdings include new entries such as Jinggong Convertible Bond (Construction Decoration), Shangyin Convertible Bond (Bank), and Yangfeng Convertible Bond (Basic Chemicals) among others [2] - The adjustment rationale is based on the strong performance of the low price index (1.4%) and the resurgence of low volatility strategies, with a focus on stable or improving performance and reasonable premium rates [3] Improved Dual Low Strategy - The latest holdings feature new entries like Shangyin Convertible Bond (Bank) and Zhonghuan Convertible Bond (Environmental Protection) [4] - Adjustments were made due to the upward movement of the dual low index (0.4%), with a focus on stocks with improved performance or stable operations while avoiding those with high redemption progress [5] High Price High Elasticity Strategy - The latest holdings include new entries such as Wankai Convertible Bond (Basic Chemicals) and Shuiyang Convertible Bond (Beauty Care) [6] - The strategy's adjustments were influenced by the decline in high price index returns (-1.5%) and the need to manage redemption risks while maintaining a balanced industry allocation [7]

Core Viewpoint - Aikodi announced an adjustment to the conversion price of its convertible bonds, which remains unchanged at 17.55 yuan per share following the repurchase and cancellation of restricted stock under its 2024 incentive plan [2]. Group 1 - The original conversion price for Aikodi's convertible bonds was set at 17.55 yuan per share, and this price remains unchanged after the adjustment [2]. - The number of restricted stocks repurchased and canceled under the 2024 incentive plan is small relative to the total share capital of the company [2]. - The adjustment calculation for the conversion price was rounded, resulting in no change to the conversion price of "Aidi Convertible Bonds" [2].

Core Points - The company, Aikedi Co., Ltd., has announced the tracking credit rating results for its convertible bonds, "Aidi Convertible Bonds," for the year 2025 [1][2] - The previous bond rating was "AA," and the issuer rating was also "AA," with a stable outlook [1] - The current bond rating remains "AA," and the issuer rating is still "AA," with a stable outlook, indicating no change from the previous assessment [2] Summary by Sections - **Previous Ratings**: The previous bond rating and issuer rating were both "AA," with a stable outlook [1] - **Current Ratings**: The current ratings for both the bond and the issuer remain unchanged at "AA," with a stable outlook [2] - **Rating Agency**: The ratings were conducted by Zhongzheng Pengyuan Credit Rating Co., Ltd., based on a comprehensive analysis of the company's operational status [2]

Core Viewpoint - The company is undergoing changes in its registered capital due to the conversion of convertible bonds and the implementation of the sixth phase of the restricted stock incentive plan, necessitating amendments to its articles of association [2][3]. Group 1: Changes in Registered Capital - The company issued 15.7 million convertible bonds at a face value of 100 yuan each, totaling 15.7 billion yuan, with a term of 6 years [2]. - The convertible bonds, named "爱迪转债" (Aidi Convertible Bonds), began trading on October 28, 2022, and can be converted into shares from March 29, 2023, to September 22, 2028, with an initial conversion price of 18.93 yuan per share [2]. - The conversion price has been adjusted multiple times due to profit distribution and stock incentive plans, with the latest adjustment bringing it to 18.03 yuan per share as of December 25, 2024 [2]. - As of May 22, 2025, a total of 4312 shares have been converted from the "爱迪转债" [2]. Group 2: Restricted Stock Incentive Plan - The company approved the sixth phase of the restricted stock incentive plan, granting 264,000 shares at a price of 7.15 yuan per share to 12 incentive recipients [3]. - The total number of shares increased from 984,852,804 to 985,121,116, resulting in a registered capital increase from 984,852,804 yuan to 985,121,116 yuan [3]. Group 3: Amendments to Articles of Association - The company plans to amend relevant clauses in its articles of association to reflect the changes in registered capital due to the convertible bond conversion and the restricted stock incentive plan [3][4]. - The amendments will not affect other clauses in the articles of association, and the changes do not require shareholder approval as per previous authorizations [7].

Core Viewpoint - The company announced an adjustment to the conversion price of its convertible bonds due to the 2024 profit distribution plan, which includes a cash dividend of 0.30 yuan per share [4]. Group 1: Conversion Price Adjustment - The conversion price before adjustment was 18.03 yuan per share, and after adjustment, it will be 17.73 yuan per share [4]. - The adjustment will take effect on June 25, 2025, following the dividend distribution [4][5]. - The total cash dividend to be distributed amounts to 295,536,351.30 yuan, based on a total share capital of 985,121,171 shares [4]. Group 2: Dividend Distribution Details - The record date for the dividend distribution is June 24, 2025, and the ex-dividend date is June 25, 2025 [4]. - The company will suspend the conversion of the convertible bonds from June 17, 2025, until the record date [5].

Core Points - The company announced a cash dividend of 0.30 CNY per share (including tax) for its A shares [1][2] - The total cash dividend to be distributed amounts to 295,536,351.30 CNY based on a total share capital of 985,121,171 shares [2] - The dividend distribution plan was approved at the annual general meeting held on April 29, 2025 [1] Related Dates - The key dates for the dividend distribution are as follows: - Record date: June 24, 2025 - Last trading day: June 25, 2025 - Ex-dividend date: June 25, 2025 [2] Distribution Method - Cash dividends for shareholders will be distributed through China Securities Depository and Clearing Corporation Limited, Shanghai Branch [2] - Shareholders who have completed designated transactions can receive their cash dividends on the distribution date [2] Taxation Information - For individual shareholders holding unrestricted shares, the cash dividend is not subject to withholding tax at the time of distribution, but will be taxed based on the holding period upon transfer [4] - The tax rates for individual shareholders vary based on the holding period, with a maximum tax rate of 20% for shares held for one month or less [4] - For qualified foreign institutional investors (QFII), a 10% withholding tax applies to the cash dividend [6]

Group 1 - The company will suspend the conversion of its convertible bonds "Aidi Convertible Bonds" from June 17, 2025, until the equity distribution registration date due to the implementation of the 2024 equity distribution plan [1][2] - The equity distribution plan includes a cash dividend of 3.00 yuan (including tax) for every 10 shares held, amounting to a total distribution of 295,456,520.10 yuan (including tax), which represents 31.45% of the net profit attributable to shareholders for 2024 [1][2] - The remaining undistributed profit of 2,470,946,593.96 yuan will be retained for future distribution, and there will be no increase in share capital from surplus reserves and capital reserves for the 2024 fiscal year [1][2] Group 2 - The company will announce the implementation of the equity distribution and the adjustment of the conversion price for "Aidi Convertible Bonds" on June 18, 2025 [2] - Holders of "Aidi Convertible Bonds" must convert their bonds before June 16, 2025, to enjoy the benefits of the equity distribution, as the conversion will resume after the equity registration date [2]

Core Points - The company has completed the registration of the sixth phase of its restricted stock incentive plan, involving 264,000 shares on June 4, 2025 [1][4] - The total number of shares granted to core personnel is 264,000, which accounts for 3.31% of the total stock incentive plan and 0.03% of the total share capital at the time of granting [2][5] - The incentive plan has a maximum validity period of 48 months, with a lock-up period of 12 months for the granted restricted stocks [2][3] Incentive Plan Details - The incentive plan's effective period is from the completion of the restricted stock registration until the stocks are fully unlocked or repurchased, not exceeding 48 months [2] - The first unlock period allows for 50% of the reserved stocks to be unlocked after 24 months, while the second unlock period allows for the remaining 50% after 36 months [3][4] - The company has received a total of RMB 1,887,600 from 12 incentive recipients, with an increase in registered capital of RMB 264,000 [4][6] Shareholding Structure - The total number of shares before the grant was 984,855,067, which increased to 985,121,116 after the grant [6][7] - The controlling shareholder's shareholding ratio slightly decreased from 29.74% to 29.73% post-grant, indicating no change in control [5][6] Financial Impact - The incentive plan is expected to impact the company's financial results for the years 2025 to 2027, with the total amortized cost of the restricted stocks to be determined based on the fair value at the grant date [7][8] - The final accounting cost will depend on various factors, including the actual number of stocks that become effective or ineffective [8]

Core Viewpoint - The conversion price of "Aidi Convertible Bonds" remains unchanged at 18.03 yuan/share following the completion of the registration for the sixth phase of the restricted stock incentive plan, as the number of restricted stocks granted is small relative to the total share capital [1][3]. Group 1: Conversion Price Adjustment - The pre-adjustment conversion price is 18.03 yuan/share [1]. - The post-adjustment conversion price is also 18.03 yuan/share, indicating no change [1]. - The number of restricted stocks granted under the incentive plan is 264,000 shares, which is a small proportion of the total share capital [3]. Group 2: Incentive Plan Details - The sixth phase of the restricted stock incentive plan involves granting 264,000 shares to 12 eligible participants at a price of 7.15 yuan/share, with the grant date set for May 15, 2025 [1][2]. - The registration for the granted restricted stocks was completed on June 4, 2025 [1]. - The relevant details of the incentive plan will be disclosed on the Shanghai Stock Exchange website [1]. Group 3: Adjustment Formula - The adjustment formula for the conversion price is specified in the company's prospectus, detailing how changes in share capital affect the conversion price [2]. - The formula accounts for various scenarios, including stock dividends, capital increases, and cash dividends [2]. - The specific calculation for this adjustment was based on the new share issuance price and the percentage of new shares issued [3].