1. Report Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core Viewpoints of the Report - 2026 Q1 may see an increase in convertible bond calls, but high - parity convertible bond valuations are at historical highs. High valuations do not guarantee post - call valuation maintenance, and the pressure on convertible bond prices before and after the call is relatively large. It is recommended to take profit before the call or stop loss in a timely manner after the call based on market conditions [3][7]. - The overall trend of convertible bond valuations is likely to be high - level oscillations, with a possibility of short - term foaming. In January 2026, institutional demand for configuration will support valuations, and if the equity market performs better than expected, valuations may foam [28]. - In December 2025, the convertible bond market oscillated upward, with both convertible bonds and underlying stocks performing strongly, and valuations oscillated and increased. The trading volume of the convertible bond and equity markets decreased, but margin trading funds showed a strengthening trend [48][56]. - The issuance of new convertible bonds slightly increased in December 2025, and the number of new issuance plans continued to rise. The overall scale of holders in the Shanghai and Shenzhen Stock Exchanges decreased, with obvious reductions by insurance funds [3][62]. 3. Summary According to Relevant Catalogs 3.1 Historical Facts and Changes before and after Convertible Bond Calls - **Before the Call Announcement** - High market valuations do not guarantee post - call valuation maintenance. After the call, the valuation compresses to near 0%, and the compression process is basically completed before the call announcement [3][8]. - The strength of the underlying stock before the call can partially offset the compression of convertible bond valuations, but when valuations are high, the pressure on convertible bond prices before the call is still relatively large [3]. - The decline before the call mainly occurs within T - 10 days, and the day of the highest price is advancing [3][16]. - **After the Call Announcement** - In most months, convertible bond prices continue to decline after the call announcement, but in some months with a strong equity market, prices rebound [3][20]. - There is generally a decline of varying degrees on T - day, and the months with price rebounds mainly show strength from T + 1 to T + 15 days [3][21]. - The stronger the equity market, the more delayed the appearance of the highest price [3][25]. 3.2 Valuation Outlook - The overall trend is high - level oscillations, with a possibility of short - term foaming. In December 2025, valuations oscillated upward. As of December 31, 2025, the 100 - yuan par - value fitted conversion premium rate was 34.04%, up 2.50 pct from the end of November, reaching the highest level since 2019 [28]. 3.3 Key Focused Convertible Bonds - From December 1 to December 31, 2025, the convertible bond portfolio rose 3.84%, outperforming the benchmark index by 1.70 pct. Huayi and Xingqiu had obvious increases [41]. - The "Huachuang Convertible Bond" January key - focused portfolio is adjusted to include Xingqiu, Mingli, Yirui, Huachen, Huayi, Yifeng, Ziyin, Qingnong, Zhongyin, and Xingye [43]. 3.4 Market Review - **Market Performance** - In December 2025, the convertible bond market oscillated upward, with a strong performance in the second half of the month. Most sectors of the convertible bond market rose, and technology - related concepts declined. The science and technology and manufacturing sectors showed significant increases, and the cyclical sector also performed well [48][50]. - **Fund Performance** - The trading volume of the convertible bond and equity markets decreased slightly. From December 1 to December 31, 2025, the average daily trading volume of CSI Convertible Bonds was 63.803 billion yuan, a 1.27% decrease from November, and the average daily trading volume of Wind All - A was 1.880842 trillion yuan, a 1.76% decrease from November [56]. - Margin trading funds oscillated and strengthened. As of December 31, 2025, the balance of margin trading in the Shanghai and Shenzhen Stock Exchanges was approximately 2.53 trillion yuan, an increase of 66.664 billion yuan from the end of November. Most industries received net margin purchases [60]. 3.5 Supply and Demand Situation - **New Bond Issuance and Listing** - In December 2025, 7 convertible bonds were issued, with a total scale of 5.494 billion yuan, and 5 new convertible bonds were listed, with a total scale of 3.005 billion yuan. The online new - bond issuance subscription scale increased, with an average effective subscription amount of 8.85 trillion yuan, a 2.61% increase month - on - month [62]. - **Expected Issuance Scale and New Plans** - The total expected issuance scale is approximately 122.663 billion yuan. As of December 31, 2025, 7 listed companies obtained convertible bond issuance approvals, with a planned issuance scale of 8.583 billion yuan; 6 companies' convertible bond issuances passed the review committee, waiting for approvals, with a total scale of 3.361 billion yuan. In December, 6 new board plans were added, with a total scale of approximately 77.9 billion yuan [65]. - **Holder Scale Changes** - The overall scale of holders in the Shanghai and Shenzhen Stock Exchanges decreased. In December 2025, the total par value of convertible bonds held by the two exchanges was 552.692 billion yuan, a decrease of 6.144 billion yuan from November, a 1.10% decline. The scale of public funds increased, while the scale of enterprise annuities decreased [83][87].

Core Viewpoint - The company has decided not to lower the conversion price of its convertible bonds, despite triggering the price adjustment clause due to stock prices being below 85% of the current conversion price for a specified period [2][6]. Group 1: Convertible Bond Overview - The company issued 17,974,320 convertible bonds with a total value of 1,797.432 million yuan, with a maturity of six years and a tiered interest rate starting from 0.30% in the first year [3]. - The initial conversion price was set at 39.85 yuan per share, which has been adjusted multiple times due to equity distribution plans, with the latest adjustment bringing it to 31.84 yuan per share [3][5]. Group 2: Price Adjustment Clause - The price adjustment clause allows for a downward revision of the conversion price if the stock price is below 85% of the current conversion price for at least 15 out of 30 consecutive trading days [4][5]. - The company has triggered this clause but has opted not to implement a downward adjustment at this time, citing confidence in its long-term value and the need to protect investor interests [6]. Group 3: Future Considerations - The company will not propose a downward adjustment for the next three months, and any future triggers for price adjustment will be reassessed starting January 16, 2026 [2][6].

Core Viewpoint - The article discusses the status of various convertible bonds, highlighting which bonds are subject to strong redemption, which are not, and providing details on their trading and conversion values [1][2]. Group 1: Convertible Bonds Status - Sheng 24 Convertible Bond is subject to strong redemption [1][2]. - Dongbao Convertible Bond, Zhengyuan Convertible Bond 02, and Yifeng Convertible Bond are not subject to adjustment [1][2]. - Huicheng Convertible Bond, Xinzhi Convertible Bond, and Tairui Convertible Bond are not subject to strong redemption [1][2]. Group 2: Trading and Conversion Details - The current price of Sanyang Convertible Bond is 126.154, with a strong redemption price of 100.490, and a conversion value of 127.38 [4]. - The current price of Zhongchen Convertible Bond is 135.377, with a strong redemption price of 100.580, and a conversion value of 135.93 [4]. - The current price of Jingxing Convertible Bond is 196.000, with a strong redemption price of 100.290, and a conversion value of 195.58 [4]. - The current price of PuFa Convertible Bond is 110.364, with a redemption price of 110.000, and a conversion value of 105.28 [6].

Core Viewpoint - Yifeng Pharmacy announced that it will not lower the conversion price of its "Yifeng Convertible Bonds" during the upcoming three-month period, even if the stock price triggers the adjustment clause [1] Summary by Sections Company Decision - The company held its 23rd meeting of the fifth board of directors on October 15, 2025, where it approved the proposal not to lower the conversion price of the "Yifeng Convertible Bonds" [1] - The decision means that from October 16, 2025, to January 15, 2026, the conversion price will remain unchanged, regardless of stock price movements [1] Future Considerations - The next period for triggering the conversion price adjustment clause will start from January 16, 2026 [1] - If the stock price triggers the adjustment clause again, the board will convene to decide whether to exercise the right to lower the conversion price [1]

Core Points - Yifeng Pharmacy announced that the period triggering the adjustment of the conversion price starts from September 17, 2025, and ends on September 30, 2025, during which the company's stock has closed below 85% of the current conversion price for 10 trading days [1] - If the conditions are triggered, the company will hold a board meeting on the day the conditions are met to decide whether to adjust the conversion price downwards and will fulfill its information disclosure obligations in a timely manner [1]

Group 1 - The company announced a cash dividend of RMB 0.30 per share (before tax) to all shareholders based on the total share capital registered on the equity distribution date [2][3] - The "Yifeng Convertible Bonds" will suspend conversion from September 9, 2025, until the equity distribution registration date, and will resume conversion on the first trading day after the registration date [2][4] - The company will adjust the conversion price of the "Yifeng Convertible Bonds" according to the terms outlined in the bond issuance prospectus after the equity distribution [3] Group 2 - The company provided a guarantee for its wholly-owned subsidiary, Jiangsu Yifeng, for a total credit limit of up to RMB 3.09 billion [6][8] - The guarantee is a joint liability guarantee for the subsidiary's application for comprehensive credit from a financial institution, specifically for a loan amount of RMB 300 million [8] - The company confirmed that the subsidiary has a good profitability and debt repayment capability, ensuring that the financial risks remain within controllable limits [8][9] Group 3 - As of the announcement date, the total amount of external guarantees provided by the company and its subsidiaries is RMB 2.715 billion, accounting for 25.31% of the latest audited net assets [9] - The total amount of guarantees provided to subsidiaries is RMB 2.615 billion, which is 24.38% of the latest audited net assets, and does not exceed the annual expected total approved at the 2024 annual shareholders' meeting [9]

Summary of Key Points Core Viewpoint The announcements from Yifeng Pharmacy Chain Co., Ltd. detail the status of its convertible bonds and the management of idle raised funds through financial products, indicating a strategic approach to enhance financial efficiency and shareholder returns. Group 1: Convertible Bond Conversion Status - As of June 30, 2025, a total face value of 163,000 yuan of "Yifeng Convertible Bonds" has been converted into 4,950 shares of the company's A-shares, representing 0.0004% of the total shares before conversion [2][4]. - The remaining unconverted "Yifeng Convertible Bonds" have a face value of 1,797,269,000 yuan, accounting for 99.9909% of the total issuance [2][4]. - During the quarter from April 1, 2025, to June 30, 2025, 2,000 yuan of "Yifeng Convertible Bonds" were converted into 60 shares [2][4]. Group 2: Convertible Bond Issuance Overview - The company issued 17,974,320 convertible bonds with a total face value of 179,743.20 million yuan, approved by the China Securities Regulatory Commission on March 4, 2024 [3]. - The bonds were listed on the Shanghai Stock Exchange on March 27, 2024, and can be converted into shares starting from September 9, 2024 [3]. Group 3: Management of Idle Funds - The company redeemed structured deposits totaling 10,300.00 million yuan and plans to continue investing 11,400.00 million yuan in new financial products [6][8]. - The board approved the use of up to 30,000.00 million yuan of idle raised funds for financial investments, ensuring that it does not affect the normal operation of investment projects [6][10]. - The investment strategy aims to enhance the efficiency of idle funds and increase company returns without impacting daily operations [13].

Core Viewpoint - The credit rating for Yifeng Pharmacy's convertible bonds remains stable at "AA," with no changes from the previous rating [1]. Group 1 - The previous rating for the convertible bonds was "AA," and the issuer's rating was also "AA," with a stable outlook [1]. - The current rating results for both the issuer and the convertible bonds are unchanged from the last assessment [1]. - The credit rating agency, United Credit Ratings Co., conducted a comprehensive analysis of the company's operational status and industry conditions for this tracking rating [1]. Group 2 - The tracking credit rating report for the convertible bonds can be found on the Shanghai Stock Exchange website [2]. - The announcement is made by the board of directors of Yifeng Pharmacy [3].

Group 1 - The issuer of the convertible bonds is Yifeng Pharmacy Chain Co., Ltd., with a total issuance amount of RMB 1,797.43 million, net proceeds after issuance costs amounting to RMB 1,780.26 million [2][3][14] - The bonds have a maturity period of six years, from March 4, 2024, to March 3, 2030, with a face value of RMB 100 per bond [3][4] - The coupon rates for the bonds are set at 0.30% for the first year, 0.50% for the second year, and 1.00% for the third year [4][5] Group 2 - The initial conversion price for the bonds is set at RMB 39.85 per share, subject to adjustments based on various corporate actions [5][6] - The conversion price will be adjusted to RMB 32.79 per share effective from June 7, 2024, due to the company's annual profit distribution [7][8] - Further adjustments will reduce the conversion price to RMB 32.54 per share effective from October 15, 2024, and to RMB 32.14 per share effective from June 18, 2025 [8][19] Group 3 - The total amount raised from the bond issuance will be used for projects including the construction of pharmaceutical warehouses in Jiangsu, Hubei, and Hebei, with a total investment of RMB 2,534.33 million [14][15] - The bonds are rated AA by a credit rating agency, with a stable outlook, and the issuer's credit rating is also maintained at AA [16][17] - The bonds will not be secured, and the management of the raised funds will be conducted in a designated special account [15][16] Group 4 - The actual controller and major shareholders have reduced their holdings of the convertible bonds, with a total of 5,259,730 bonds sold, representing 29.26% of the total issuance [20][21] - The company has also repurchased and canceled a portion of restricted stock from its 2022 incentive plan, which does not affect the conversion price of the bonds [21][22] - The company will continue to monitor the impact of these actions on its operational performance and debt repayment capabilities [22]

Core Viewpoint - The article discusses the upcoming subscription for Guangxin Technology and the speculative nature of its potential stock performance, highlighting differing opinions on expected returns and market behavior [1]. Group 1: Guangxin Technology Subscription - Guangxin Technology is set to be subscribed, with discussions around the expected performance of its stock post-listing [1]. - Some market participants believe that the stock price needs to exceed 50 yuan for investors to break even, indicating a 400% increase from the issue price of 10 yuan [1]. Group 2: Market Reactions and Speculations - There are reports of intermediaries offering 0.19% returns for acquiring subscription accounts, suggesting a high level of speculation in the market [1]. - The optimistic projection that 200 shares of Guangxin Technology could yield over 8000 yuan raises questions about the realism of such expectations [1]. Group 3: Related Corporate Actions - Financial instruments such as Caotong Convertible Bonds and Ruida Convertible Bonds are proposed for down adjustment by their boards [1]. - Aggregation Shun has received a warning from the Zhejiang Securities Regulatory Commission for misusing raised funds for financial management [1]. - Dongfang Shenghong's controlling shareholder plans to increase its stake in the company by 500 million to 1 billion yuan [1].