Group 1 - The company is issuing convertible bonds named "Lu Wei Convertible Bonds" with a total amount of RMB 615 million, a maturity of 6 years, and a face value of RMB 100 per bond [1][2] - The actual net proceeds from the bond issuance amount to RMB 607,155,585.94 after the issuance process [1] - The bond conversion period starts on December 17, 2025, and ends on June 10, 2031, with specific conditions for non-trading days [2] Group 2 - Investors must meet the suitability requirements for Sci-Tech Innovation Board stock investors to convert their bonds into shares; otherwise, they will face risks of not being able to convert their holdings [2] - The company emphasizes the importance of understanding the risks associated with not meeting the investor suitability requirements for the convertible bonds [2][3] - For detailed information regarding the "Lu Wei Convertible Bonds," investors are directed to the company's prospectus published on June 9, 2025 [3]

Company Overview - Shenzhen Luwei Optoelectronics Co., Ltd. focuses on the research, production, and sales of photomasks, which are essential in the microelectronics manufacturing process for transferring graphics [2] - The company is the only domestic manufacturer capable of producing photomasks for all generations from G2.5 to G11, catering to various panel production lines [2] - Luwei Optoelectronics has developed a dual core product line focusing on flat panel display photomasks and semiconductor photomasks, establishing a development pattern of "screen-driven chip" [2] Financial Performance - For the first quarter of 2025, Luwei Optoelectronics reported a revenue of 260.1 million yuan, representing a year-on-year increase of 47.09% [2] - The net profit attributable to shareholders for the same period was 49.15 million yuan, up 19.66% year-on-year, while the net profit after deducting non-recurring items was 44.83 million yuan, reflecting a 19.9% increase [2] Shareholder Structure - As of March 2025, the concentration of shares is high, with the top ten shareholders holding a combined 57.53% of the shares, and the top ten circulating shareholders holding 35.6% [2] - The number of shareholders stands at 8,257, with an average circulating shareholding of 14,010 shares per person and an average holding amount of 461,400 yuan [2] Convertible Bond Details - On July 21, Luwei's convertible bonds rose by 2.02% to 139.775 yuan per bond, with a trading volume of 35.64 million yuan and a conversion premium of 34.8% [1] - The convertible bonds have a credit rating of "AA-" and a maturity of 6 years, with a coupon rate increasing from 0.2% in the first year to 2.0% in the sixth year [1] - The conversion price for the bonds is set at 32.7 yuan, with the conversion period starting on December 17, 2025 [1]

Report Industry Investment Rating - Not provided in the given content Core Viewpoints - Last week, the equity market had a volume - driven rally. The real estate, steel, and building materials sectors were strong, while the banking sector declined. The bond market adjusted, and the 10 - year Treasury bond rate closed at 1.67% on Friday, up 2.2bp from the previous week. The convertible bond market mostly rose, with the CSI Convertible Bond Index up 0.76% for the week [1][8][9]. - In the short term, convertible bond supply may significantly shrink. The follow - up momentum of the convertible bond market has weakened, and valuations have been further compressed. It is recommended to focus on balanced convertible bonds or high - price, low - premium and non - redeemable in the short - term equity - biased varieties. For those with high requirements for drawdown, consider reducing positions [2][17]. - With the disclosure of mid - year report performance forecasts, attention should be paid to sectors such as consumer goods, technology, power grid equipment, and innovation drugs. Also, be cautious about bonds with a high proportion of exports to the US [3][18]. Summary by Relevant Catalogs Market Trends (2025/7/7 - 2025/7/11) - **Stock Market**: The equity market rose with volume. Real estate, steel, and building materials sectors performed well due to policy expectations and "anti - involution" themes. The non - banking sector was strong driven by the stablecoin theme, while the banking sector declined. Different sectors showed different performances on each trading day [8]. - **Bond Market**: The bond market adjusted. Factors such as the postponement of Trump's equal - tariff effective date, the Shanghai Composite Index breaking through 3500, and real estate policy rumors suppressed bond market sentiment. The 10 - year Treasury bond rate closed at 1.67% on Friday, up 2.2bp from the previous week [1][9]. - **Convertible Bond Market**: Most convertible bond issues rose. The CSI Convertible Bond Index increased by 0.76% for the week, the median price rose by 0.95%, and the calculated arithmetic average parity increased by 2.07%. The overall market conversion premium rate decreased by 1.29% compared with the previous week. Sectors like non - banking finance, coal, and computer in the convertible bond market led the gains, while social services, banking, and automotive sectors lagged. The total trading volume of the convertible bond market last week was 3405.76 billion yuan, with an average daily trading volume of 681.15 billion yuan, an increase from the previous week [9][12][15]. Viewpoints and Strategies (2025/7/14 - 2025/7/18) - **Supply Outlook**: Convertible bond supply may significantly shrink in the short term. The approval of the "potential new bond" Fudan Microelectronics expired, and there are only 5 issues in the pending - issuance list that have passed the listing committee, with a total scale of less than 5 billion yuan. Also, the delisting of existing bonds is accelerating [2][17]. - **Investment Suggestions**: Due to the intensified supply - demand contradiction, it is recommended to focus on balanced convertible bonds that can quickly consume the premium rate with high - volatility underlying stocks or high - price, low - premium and non - redeemable in the short - term equity - biased varieties. Consider reducing positions for those with high drawdown requirements [2][17]. - **Sector Focus**: Pay attention to sectors such as consumer goods (appliances, auto parts, two - wheeled vehicles), technology (PCB, copper - clad laminates, data center power supplies), power grid equipment, sea - wind power, energy storage, innovation drugs, and chemical pharmaceuticals. Be cautious about bonds with a high proportion of exports to the US [3][18]. Valuation Overview - As of July 11, 2025, for equity - biased convertible bonds, the average conversion premium rates in different parity intervals are at different percentile levels since 2010 and 2021. For debt - biased convertible bonds, the average YTM of bonds with a parity below 70 yuan is - 1.04%, at the 4%/0% percentile since 2010/2021. The average implied volatility of all convertible bonds is 33.92%, at the 64%/45% percentile since 2010/2021, and the difference between the implied volatility of convertible bonds and the long - term actual volatility of the underlying stocks is - 13.38%, at the 27%/32% percentile since 2010/2021 [19]. Primary Market Tracking - **Last Week (2025/7/7 - 2025/7/11)**: Guanghe Convertible Bond announced its issuance, and Luwei and Huachen Convertible Bonds were listed. Guanghe Convertible Bond, with an issuance scale of 4.9 billion yuan, is for the Guangdong Lufeng Nuclear Power Plant Project. Luwei Convertible Bond, with an issuance scale of 615 million yuan, is mainly for semiconductor and high - precision flat - panel display mask expansion projects. Huachen Convertible Bond, with an issuance scale of 460 million yuan, is for new - energy power equipment manufacturing and digital factory construction projects [27][28][29]. - **Next Week (2025/7/14 - 2025/7/18)**: Xizhen and Yongxi Convertible Bonds will be listed. Xizhen Convertible Bond, with an issuance scale of 520 million yuan, is for the Langfang Zhenhua Automobile Parts Project. Yongxi Convertible Bond, with an issuance scale of 1.165 billion yuan, is for multi - dimensional heterogeneous advanced packaging technology R & D and industrialization projects [30][31]. - **Overall Pending Issuance**: As of July 11, there are 75 convertible bonds to be issued, with a total scale of 116.32 billion yuan, including 2 issues approved for registration (total scale of 2.11 billion yuan) and 3 issues passed by the listing committee (total scale of 2.62 billion yuan) [32].

Group 1 - The core point of the news is the listing of Luwei Optoelectronics' convertible bonds, which have a high conversion value and a relatively small issuance scale [1] - The convertible bond has a rating of AA-, indicating a high credit quality [1] - The current market for convertible bonds is experiencing a surge, with many new issues being well-received by investors [3][4] Group 2 - The market for convertible bonds is supported by the performance of the underlying stocks, primarily from small and mid-cap companies, which are currently in focus [7] - Despite the pressure on the broader market around the 3500-point level, there is potential for opportunities in small and mid-cap stocks as larger financial stocks may face a pullback [9][10] - The previous underperformance of small and mid-cap stocks may lead to a rebound when larger stocks start to cool down, creating a favorable environment for these smaller stocks [10]

Group 1 - Recent trend of shareholders opting for inquiry-based share reductions instead of direct secondary market sales, indicating a competitive bidding process based on price, quantity, and time priority [1] - Huayou Cobalt expects a net profit of 2.6 to 2.8 billion yuan for the first half of 2025, representing a year-on-year growth of 55.62% to 67.59% [1] - Tianeng Heavy Industry's shareholders plan to transfer 4% of the company's shares through inquiry [1] Group 2 - Announcement regarding the Blue Fan convertible bond is pending [1] - Huachen and Luwei convertible bonds are set to be listed on July 10 [1]

Group 1 - The company Shenzhen Luwei Optoelectronics Co., Ltd. has successfully issued convertible bonds with a total scale of 615 million yuan [1][2] - The issuance has received approval from the China Securities Regulatory Commission, with the bond code being "118056" and the bond name "Luwei Convertible Bonds" [1][2] - The subscription results indicate that original shareholders subscribed for 483,301 hands, amounting to 483,301,000 yuan, with no abandonments [2] Group 2 - Public investors subscribed for 128,621 hands, totaling 128,621,000 yuan, while 3,078 hands were abandoned, amounting to 3,078,000 yuan [2] - The underwriter, Guosen Securities, fully underwrote the abandoned subscriptions, with a total of 3,078 hands and a corresponding amount of 3,078,000 yuan, representing 0.50% of the total issuance [2][3] - The company will submit a bond registration application to the China Securities Depository and Clearing Corporation for the underwritten convertible bonds [2]

Macro Strategy - The report discusses the shift in policy focus from "controlling high prices" to "controlling low prices" to boost core CPI, suggesting that service price subsidies could increase core CPI by approximately 0.3 percentage points, offsetting declines in housing service prices [1][10][11] - Core CPI has shown a significant rebound since September of the previous year, despite four months of negative growth driven mainly by food and energy prices [10][11] - The report emphasizes the limited upward potential for core goods and housing service prices, indicating that future policy should focus on enhancing prices of other services [10][11] Industry Insights - The report highlights the new phase of controllable nuclear fusion as a potential ultimate energy solution, driven by policy and capital support, with multiple devices under construction [5][16][17] - It identifies key suppliers in the nuclear fusion sector, including West Superconducting, Lianchuang Optoelectronics, and Aikesaibo, suggesting that the industry is moving from experimental to industrial stages with significant future potential [5][16][17] - The report also discusses the trend towards lightweight robots, emphasizing the increasing application of magnesium alloys and PEEK materials, which are expected to enhance performance and reduce weight in humanoid robots [18]

Group 1 - The board of directors of JianGong proposed a downward adjustment for the convertible bonds [1] - New TaiGe shareholders plan to reduce their holdings by no more than 3% of the company's shares [1] - LuWei convertible bonds are available for subscription on June 11 [1] Group 2 - XinHengHui new shares are available for subscription on the Shanghai and Shenzhen stock exchanges [1]

Group 1 - The company Shenzhen Luwei Optoelectronics Co., Ltd. plans to issue convertible bonds worth 615 million yuan, with the bond code "118056" [3][9] - The issuance has received approval from the China Securities Regulatory Commission [3] - The bonds will be offered to unspecified investors, with priority given to existing shareholders [4][10] Group 2 - The priority subscription for existing shareholders will occur on June 11, 2025, with a subscription ratio of 0.003201 hand per share [5][12] - The total number of shares eligible for priority subscription is 192,118,630, allowing a maximum of 615,000 hands of convertible bonds to be allocated to shareholders [11] - The bonds will be traded on the Shanghai Stock Exchange starting from the listing date [9][17] Group 3 - The main underwriter for this issuance is Guosen Securities Co., Ltd., which will also take on a maximum underwriting responsibility of 30% of the total issuance amount [9][17] - If the total subscriptions do not reach 70% of the issuance amount, the company and the underwriter may consider suspending the issuance [17] - Investors must comply with regulatory requirements regarding asset scale when participating in the subscription [15]