Core Viewpoint - Ningbo Homelink Eco-iTech Co., Ltd. has successfully issued convertible bonds to raise funds for its operations, with a total of 7.5 million bonds issued, amounting to RMB 750 million, which will be used for various projects and operational needs [2][14][27]. Section 1: Bond Overview - The bond issuance was approved by the company's board and shareholders, with the registration approved by the China Securities Regulatory Commission [2][3]. - The bonds will be traded on the Shenzhen Stock Exchange starting January 18, 2024, under the name "Homelink Convertible Bonds" with the code "123236" [3][27]. - The bonds have a fixed interest rate of 1.80% for the first five years and 2.00% for the sixth year, with annual interest payments [3][4]. Section 2: Company Overview - Ningbo Homelink Eco-iTech Co., Ltd. specializes in the research, production, and sales of plastic products, biodegradable materials, and plant fiber products, providing green packaging solutions for various industries [11][12]. - The company reported a revenue of RMB 2.33 billion for the reporting period, a 35.16% increase year-on-year, with a net profit of RMB 57 million, up 25.68% [12][13]. Section 3: Financial Performance - The company's gross profit margin decreased to 17.62%, down 1.61% from the previous year, attributed to lower capacity utilization and increased costs [13]. - The company’s total assets increased by 10.57% to RMB 4.55 billion, while the asset-liability ratio rose to 59.81% [12][13]. Section 4: Fund Utilization - The net proceeds from the bond issuance, after deducting issuance costs, are planned to be invested in specific projects, including the production of biodegradable materials [14][15]. - As of December 31, 2023, the company had allocated RMB 50.09 million of the raised funds to its projects, achieving 67.34% of the planned investment [15][18]. Section 5: Debt Management - The company has established a series of measures to ensure timely repayment of the bonds, including regular financial disclosures and adherence to the bondholder meeting rules [21][23]. - The first interest payment of RMB 2.00 per bond was made on December 23, 2024, confirming the company's commitment to fulfilling its debt obligations [24][21]. Section 6: Credit Rating - The credit rating agency maintained the company's long-term credit rating at AA- and the bond rating at AA-, with a stable outlook [24].

Group 1: Financial Performance and Challenges - The company experienced a slight revenue increase in 2024, achieving 2.326 billion CNY, a 35.16% rise year-on-year, but faced significant losses in Q1 2025 due to underutilization of production capacity and increased financial costs [1][5]. - The company's external sales accounted for 55% of total revenue, with the U.S. market being a major contributor; however, trade policies and tariffs have created uncertainties affecting order volumes [2][5]. - The proposal to adjust the conversion price of convertible bonds was triggered by the stock price remaining below 85% of the conversion price, aimed at alleviating financial pressure and enhancing bond attractiveness [2][5]. Group 2: Business Strategy and Future Outlook - The company focuses on green transformation, global expansion, and technological innovation as key growth strategies, with production bases in Thailand and the U.S. to enhance supply chain stability [5][6]. - Future revenue growth is expected from increasing market share among existing high-quality domestic clients, expanding product categories, and enhancing brand recognition through partnerships with leading customers [6][7]. - The industry outlook remains positive, with growing demand for biodegradable products and a shift towards sustainable practices, driven by consumer awareness and regulatory support [6][7]. Group 3: Operational Risks and Market Position - Key operational risks identified include trade policy risks, raw material price fluctuations, exchange rate risks, and intense market competition [4][5]. - The company has established a global production network with smart manufacturing bases in various regions, enhancing its competitive edge and capacity to meet diverse market demands [7].