Report Industry Investment Rating No information about the report industry investment rating is provided in the given content. Core Viewpoints - Last week, the stock market continued to adjust, with major indices oscillating downward and daily trading volume shrinking to the 2 - 2.4 trillion range. Geopolitical conflicts and weakened Fed rate - cut expectations suppressed risk appetite. The bond market showed a weak and oscillating pattern, with the 10 - year Treasury yield rising. The convertible bond market mostly declined, with the CSI Convertible Bond Index down 3.15% for the week [1][6][7]. - Amid the escalating US - Iran conflict and rising oil prices, market risk - aversion persisted. The Shanghai Composite Index fell below 4000 points, and convertible bonds adjusted with the underlying stocks. The valuation of debt - biased convertible bonds was significantly compressed, while the premium rate of convertible bonds with a par value above 120 yuan rebounded. In the short term, convertible bonds present individual - bond opportunities. It is recommended to focus on sectors such as semiconductors, computing power leasing, energy storage, and defensive sectors [2][17]. Summary by Relevant Catalogs Market Trends (2026/3/16 - 2026/3/20) Stock Market - The overall market continued to adjust, with major indices oscillating downward and daily trading volume shrinking to 2 - 2.4 trillion. Geopolitical conflicts and weakened Fed rate - cut expectations suppressed risk appetite. The technology sector fluctuated more, and upstream resource products showed divergent trends. Defensive sectors were relatively resilient [1][6]. - By industry, most Shenwan primary industries declined. Communications (2.10%), banks (0.36%), and food and beverages (-0.48%) performed relatively well, while non - ferrous metals (-11.82%), basic chemicals (-10.53%), and steel (-10.29%) performed poorly [7]. Bond Market - Despite balanced and loose liquidity, bond yields generally rose due to factors such as improved economic data, inflation pushed up by geopolitical conflicts, and liquidity concerns. The bond market showed a weak and oscillating pattern, and the 10 - year Treasury yield closed at 1.83% on Friday, up 1.56bp from the previous week [1][7]. Convertible Bond Market - Most convertible bond issues declined. The CSI Convertible Bond Index fell 3.15% for the week, the median price dropped 3.31%, and the arithmetic average par value fell 5.54%. The overall conversion premium rate increased by 2.71% compared with the previous week. The arithmetic average conversion premium rates of convertible bonds in the par value ranges of [90,100), [100,110), and [110,120) changed by -3.51%, -4.74%, and -2.68% respectively, and were at the 95%, 91%, and 78% quantiles since 2023 [7]. - By industry, convertible bonds in most industries declined. Banks (-0.72%), commerce and retail (-1.21%), and beauty care (-1.71%) performed relatively well, while petroleum and petrochemicals (-10.05%), social services (-9.69%), and non - ferrous metals (-7.23%) performed poorly [10]. - In terms of individual bonds, Yubang (photovoltaic welding tape), Hongbai (organosilicon), Jinhong (helium), Haiyou (photovoltaic film), and Songlin (smart home) convertible bonds led the gains; Zhongchong Zhuan 2 (pet food), Jize (wind power), Baichuan Zhuan 2 (fine chemicals), Hengyi (chemical fiber), and Hongqiang (concrete admixture) convertible bonds led the losses [1][11]. - The total trading volume of the convertible bond market last week was 316.723 billion yuan, with an average daily trading volume of 6.3345 billion yuan, a decrease from the previous week [15]. Valuation - As of March 20, 2026, for equity - biased convertible bonds, the average conversion premium rates of convertible bonds in the par value ranges of 80 - 90 yuan, 90 - 100 yuan, 100 - 110 yuan, 110 - 120 yuan, 120 - 130 yuan, and above 130 yuan were 49.44%, 41.36%, 28.57%, 19.24%, 16.43%, and 14.53% respectively, at the 97%/96%, 97%/97%, 94%/93%, 87%/81%, 92%/93%, and 97%/95% quantiles since 2010/2021 [18]. - For debt - biased convertible bonds, the average YTM of convertible bonds with a par value below 70 yuan was -2.95%, at the 4%/11% quantiles since 2010/2021 [18]. - The average implied volatility of all convertible bonds was 46.08%, at the 92%/96% quantiles since 2010/2021. The difference between the implied volatility of convertible bonds and the long - term actual volatility of the underlying stocks was 4.55%, at the 88%/88% quantiles since 2010/2021 [18]. Primary Market Tracking Newly Announced Issuances and Listings - Last week (2026/3/16 - 2026/3/20), Shang 26 and Boshi convertible bonds announced issuances, and Tonglian convertible bonds were listed [25]. - As of the announcement on March 20, there were no announcements of convertible bond issuances or listings for the next week (2026/3/23 - 2026/3/27) [29]. Issuance Progress - Last week, Shenergy Co., Ltd. was approved for registration by the exchange. Shengde Xintai, Baotai Co., Ltd., Tonghe Technology, and Huaxiang Co., Ltd. passed the review of the listing committee. Runbei Hangke and Xianfeng Jinke passed the general meeting of shareholders. Shentong Express had a board of directors' plan. There were no newly accepted enterprises by the exchange [29]. - As of now, there are 100 convertible bonds to be issued, with a total scale of 167.22 billion yuan. Among them, 4 have been approved for registration, with a total scale of 6.43 billion yuan; 12 have passed the listing committee, with a total scale of 11.89 billion yuan [29].

Group 1: Bond Information - The A+ - rated ShangSheng Convertible Bond (127088.SZ) has a bond balance of 468 million yuan, accounting for 89.99% of the total issuance, and a remaining term of 3.59 years. As of December 3rd, its closing price was 128.86 yuan, with a conversion premium rate of 36.11% and a YTM of -3.04% [1] Group 2: Underlying Stock Information - The underlying stock, ShangSheng Electronics (002810.SZ), is the largest automotive acoustic product supplier in China. Its in - vehicle speakers had a 15.24% global market share in 2024, and both domestic and global market shares have increased for three consecutive years. From 1Q to 3Q in 2025, its revenue was 2.135 billion yuan (yoy +7.06%), and the net profit attributable to the parent was 135 million yuan (yoy -28.83%). Its latest total market value is 4.488 billion yuan [3] Group 3: Key Highlights of ShangSheng Convertible Bond - The company has achieved full - stack self - research in the in - vehicle acoustic system and built a three - dimensional technology system of "self - developed chips + intelligent algorithms + vehicle - grade verification". In 2025, it launched the industry's first intelligent seat pure digital link panoramic sound field solution, and earlier achieved mass production of AVAS products [4] - The proportion of high - margin products is continuously increasing, and the profit structure is optimized. The product structure has shifted from single speakers to "speakers + amplifiers + AVAS", and the supporting value per vehicle is expected to continue to rise. In H1 2025, the gross profit margins of in - vehicle amplifiers and AVAS were 21.50% and 27.85% respectively, higher than the 19.39% of in - vehicle speakers [4] - The company has a well - developed global production capacity layout and its customers cover mainstream domestic and foreign automakers. It has production bases in China, Europe, and the Americas, and its overseas revenue in 2024 was 959 million yuan, accounting for 34.56% of the total revenue [5] - The performance and valuation of the underlying stock are at a low level, and the convertible bond's indicators are also attractive. The Hefei factory is in the early stage of operation, and the low capacity utilization rate has dragged down the company's performance. It is expected that the company's profit will recover quarter by quarter as capacity is released. The expected PE in 2025 is 20.6x, which is at a historically low level and lower than the average of the auto parts industry. The market price of ShangSheng Convertible Bond is lower than the market median, and the conversion premium rate is within a reasonable range [5] Group 4: Reasonable Valuation of ShangSheng Convertible Bond - Based on the Shanxi Securities convertible bond valuation model, if the stock price remains unchanged and without considering forced redemptions and downward revisions, the reasonable valuation of ShangSheng Convertible Bond is between 129 and 135 yuan [6]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][3][35] Core Insights - The company has shown a revenue growth of 1.7% year-on-year in Q3 2025, with total revenue for the first three quarters reaching 2.135 billion yuan, a 7.06% increase year-on-year. However, the net profit attributable to the parent company decreased by 28.83% to 135 million yuan [1][9] - The company is focusing on enhancing its competitive edge in the automotive acoustic system market, with a significant increase in the value of its products per vehicle, which can reach up to 1,000 yuan for certain models [2][27] - The company is actively expanding its production capacity and improving its manufacturing capabilities, with plans to upgrade its production lines and enhance smart manufacturing [30][32] Financial Performance - In Q3 2025, the company achieved a gross margin of 20.8%, a decrease of 8.0 percentage points year-on-year, but an increase of 0.8 percentage points quarter-on-quarter. The net margin was 6.5%, down 3.7 percentage points year-on-year [1][14] - The company’s revenue projections for 2025-2027 are 3.262 billion, 3.702 billion, and 4.202 billion yuan, respectively, with net profit estimates of 209 million, 305 million, and 398 million yuan [4][35] Market Position - The company has increased its market share in the global automotive speaker market, achieving a share of 15.24% in 2024, up from 12.64% in 2020 [2][23] - The company has been recognized for its leadership in the automotive acoustic product field, having developed a fully self-researched AI panoramic sound system technology [2][31] Future Outlook - The company plans to continue its focus on research and development, with a commitment to maintaining high levels of investment in technology and innovation [31][30] - The company is also looking to expand its customer base and deepen relationships with existing clients, aiming to secure new project approvals from well-known automotive manufacturers [30][31]

Core Viewpoint - The company, Suzhou Shangsheng Electronics Co., Ltd., has announced adjustments to its plan for issuing convertible bonds, reducing the total amount from RMB 330 million to RMB 324.85 million, while ensuring that the funds will be used for projects related to technological innovation and enhancing operational efficiency [9][10][44]. Financial Data - The company reported that the total amount for the issuance of convertible bonds has been adjusted to not exceed RMB 324.85 million [10][45]. - The net proceeds from the issuance will be allocated entirely to specific projects after deducting issuance costs [12][46]. Board Meeting and Resolutions - The third board meeting of the company was held on October 29, 2025, where all ten directors attended, and the meeting was deemed legally valid [8]. - The board unanimously approved several resolutions, including the adjustment of the convertible bond issuance plan and the feasibility analysis of the use of raised funds [9][13][22]. Use of Proceeds - The funds raised from the convertible bond issuance will be used for projects that enhance the company's core competitiveness and sustainable development capabilities [29]. - The company plans to invest in upgrading its production lines and establishing advanced research laboratories, focusing on automotive acoustic technology [29][30]. Risk Mitigation Measures - The company has outlined measures to mitigate the potential dilution of immediate returns for existing shareholders due to the issuance of convertible bonds [34]. - These measures include improving operational efficiency, ensuring effective use of raised funds, and maintaining a stable profit distribution policy [35][37]. Commitment from Major Shareholders - Major shareholders have committed to not interfering with the company's management and to ensure the fulfillment of measures aimed at mitigating the dilution of immediate returns [39][40].

Core Viewpoint - The company is experiencing growth in revenue and expanding its product offerings in the automotive acoustic system market, with a focus on enhancing its competitive edge through technological advancements and customer collaborations [2][6][8]. Financial Performance - In H1 2025, the company achieved revenue of 1.367 billion yuan, a year-on-year increase of 10.35%, while net profit decreased by 23.96% to 85 million yuan [3][9]. - In Q2 2025, revenue reached 731 million yuan, up 14.03% year-on-year and 14.85% quarter-on-quarter, with net profit of 57 million yuan, reflecting an 8.34% increase year-on-year and a 110.40% increase quarter-on-quarter [3][8]. - The gross margin for H1 2025 was 20.3%, down 4.5 percentage points year-on-year, while the net margin was 6.0%, down 2.9 percentage points year-on-year [5][14]. Product Performance - The company’s revenue from automotive speakers in H1 2025 was 1.052 billion yuan, a growth of 11.6%, with a gross margin of 19.39%. Revenue from automotive amplifiers was 238 million yuan, up 15.2%, with a gross margin of 21.50% [3][8]. - The company is enhancing its product mix from speakers to a combination of speakers, amplifiers, and AVAS, significantly increasing the per-vehicle value from 100-200 yuan to potentially over 1000 yuan for certain models [7][22][23]. Market Position - The company has seen its global market share for automotive speakers increase from 12.64% in 2020 to 15.24% in 2024, indicating a steady growth trajectory in the automotive acoustic market [19][21]. - The company has secured new project designations from several well-known automotive manufacturers, indicating strong customer relationships and market demand [28]. Technological Advancements - The company is focusing on R&D, with 13 patents filed in H1 2025, including advancements in AI panoramic sound system technology, showcasing its leadership in automotive acoustic products [29][30]. - The company is committed to building a comprehensive technology system that includes self-developed chips, smart algorithms, and automotive-grade verification to enhance its product offerings [29][30]. Operational Strategy - The company is expanding its production capacity and upgrading its technology through the establishment of a new factory in Hefei, which began operations in late 2024 [8][30]. - The company is also planning to issue convertible bonds to fund the technological upgrade of its speaker production line in Suzhou, aimed at improving smart manufacturing capabilities [8][30].

Core Viewpoint - The company achieved a revenue of 730 million yuan in Q2 2025, marking a year-on-year growth of 14.0%, while the net profit attributable to shareholders decreased by 23.96% due to rising operational costs and declining overall gross margins [1][2]. Financial Performance - In H1 2025, the company reported a total revenue of 1.367 billion yuan, a year-on-year increase of 10.35%, with a net profit of 85 million yuan, down 23.96% [1]. - Q2 2025 saw a revenue of 731 million yuan, a year-on-year increase of 14.03% and a quarter-on-quarter increase of 14.85%, with a net profit of 57 million yuan, up 8.34% year-on-year and up 110.40% quarter-on-quarter [1]. - The gross margin for Q2 2025 was 19.9%, down 5.5 percentage points year-on-year and 0.7 percentage points quarter-on-quarter, while the net profit margin was 7.6%, down 0.5 percentage points year-on-year but up 3.5 percentage points quarter-on-quarter [2]. Product Performance - In H1 2025, the revenue from automotive speakers was 1.052 billion yuan, up 11.6% year-on-year, with a gross margin of 19.39%. The revenue from automotive amplifiers was 238 million yuan, up 15.2% year-on-year, with a gross margin of 21.50%. The revenue from AVAS was 60 million yuan, up 2.4% year-on-year, with a gross margin of 27.85% [1]. Market Position and Strategy - The company is enhancing its competitive edge in the acoustic system market, with an upgrade in product categories from speakers to a combination of speakers, amplifiers, and AVAS, increasing the per vehicle value from 100-200 yuan to potentially 1000 yuan for certain models [3]. - The company has demonstrated its leadership in automotive acoustic products by achieving full self-research capabilities from hardware to software, including AI panoramic sound system technology [3]. - The company has seen an increase in market share for automotive speakers, rising from 12.64% in 2020 to 15.24% in 2024, and has secured new project designations from several well-known automotive manufacturers [3]. Production Capacity and Investment - The new factory in Hefei began production at the end of 2024, with capacity gradually ramping up. The company plans to issue convertible bonds to fund technological upgrades for its Suzhou speaker production line, aiming to enhance its smart manufacturing capabilities [3].

Company Overview - Suzhou Aosheng Electronics Co., Ltd. is located in Suzhou, Jiangsu Province, and was established on June 27, 1992. The company went public on April 19, 2021. Its main business involves the research and design of acoustic products, system solutions, and related algorithms [1]. Business Performance - The company's main revenue composition includes: 73.84% from automotive speakers, 19.23% from automotive amplifiers, 4.35% from AVAS, and 2.58% from other supplementary products [1]. - As of September 1, the stock price increased by 5.03% to 30.90 CNY per share, with a trading volume of 144 million CNY and a turnover rate of 2.95%. The total market capitalization is 5.032 billion CNY [1]. Shareholder Information - Among the top ten circulating shareholders, E Fund's New Silk Road Mixed Fund (001373) reduced its holdings by 187,800 shares in the second quarter, now holding 579,400 shares, which accounts for 0.36% of the circulating shares. The estimated floating profit today is approximately 857,500 CNY [2]. - The New Silk Road Mixed Fund was established on May 27, 2015, with a current scale of 2.787 billion CNY. Year-to-date returns are 12.62%, ranking 5308 out of 8254 in its category; the one-year return is 27.68%, ranking 4936 out of 8037; and since inception, the return is 91.9% [2]. Fund Management - The fund managers of E Fund's New Silk Road Mixed Fund are Wang Sinan and Qiu Tianlan. Wang has been in position for 1 year and 16 days, with a total fund size of 2.787 billion CNY, achieving a best return of 26.42% during his tenure. Qiu has been in position for 287 days, with the same fund size, achieving a best return of 9.16% during his tenure [3].

Core Viewpoint - The company, Suzhou Aosheng Electronics Co., Ltd., has shown a mixed performance in terms of financing and stockholder dynamics, with a notable increase in revenue but a significant decline in net profit [1][2]. Financing Summary - On August 26, Aosheng Electronics had a financing buy-in amount of 11.51 million yuan, with a net financing buy of 3.26 million yuan, resulting in a total financing and securities balance of 102 million yuan [1]. - The current financing balance of 102 million yuan accounts for 2.14% of the circulating market value, which is below the 50th percentile level over the past year, indicating a low financing level [1]. - There were no shares sold or repaid in the securities lending market on August 26, with a securities lending balance of 0, which is above the 70th percentile level over the past year, indicating a high level of securities lending [1]. Company Performance Summary - As of March 31, the number of shareholders increased by 4.22% to 7,071, while the average circulating shares per person decreased by 4.04% to 23,030 shares [2]. - For the first quarter of 2025, Aosheng Electronics reported a revenue of 636 million yuan, reflecting a year-on-year growth of 6.4%, but the net profit attributable to shareholders decreased by 53.27% to 27.33 million yuan [2]. - Since its A-share listing, the company has distributed a total of 171 million yuan in dividends, with 152 million yuan distributed over the past three years [2]. Shareholder Dynamics Summary - As of March 31, 2025, the sixth largest circulating shareholder is E Fund New Silk Road Mixed Fund, holding 767,200 shares as a new shareholder [2]. - The seventh largest circulating shareholder, Southern Science and Technology Innovation Board 3-Year Open Mixed Fund, reduced its holdings by 485,100 shares to 762,500 shares [2]. - Several funds, including China Europe Value Discovery Mixed A and China Europe Potential Value Flexible Allocation Mixed A, have exited the top ten circulating shareholders list [2].

Group 1 - The company, Suzhou Sonavox Electronics Co., Ltd., is issuing convertible bonds to unspecified investors and plans to list them on the Sci-Tech Innovation Board [1][4] - The total amount of funds to be raised from this issuance is not to exceed 330 million RMB, with the net proceeds allocated to specific projects and working capital [23][24] - The company has a registered capital of 162.8472 million RMB and was established on June 27, 1992, with its stock listed on April 19, 2021 [4][12] Group 2 - The company specializes in manufacturing automotive speakers, audio systems, and various electronic components, indicating a focus on the automotive and electronics sectors [4][14] - The company has established a strong presence in the automotive acoustic product supply chain, collaborating with well-known automotive manufacturers [14][19] - The company’s financial health is supported by its average distributable profits over the last three years, which are sufficient to cover the interest on the convertible bonds [16][18] Group 3 - The underwriting institution, Dongwu Securities, has conducted thorough due diligence and confirmed that the issuance complies with relevant laws and regulations [10][15] - The convertible bonds will have a face value of 100 RMB each and will be issued at par value, with specific terms regarding conversion and redemption outlined [25][28] - The bonds will be rated A+ by Zhongceng Pengyuan, indicating a stable credit outlook [25][26]

Core Viewpoint - Suzhou Sonavox Electronics Co., Ltd. is issuing convertible bonds to unspecified investors and plans to list them on the Sci-Tech Innovation Board, aiming to enhance its capital structure and support business growth [1][23]. Company Overview - Suzhou Sonavox Electronics was established on June 27, 1992, and became a joint-stock company on December 28, 2017. It was listed on April 19, 2021 [2]. - The company specializes in acoustic technology to enhance driving experiences and is a leading domestic supplier of automotive acoustic products, integrated into the development systems of many well-known automotive manufacturers [2][3]. Main Business - The company focuses on the research and development of acoustic products, including in-car speaker systems, amplifiers, and AVAS (Acoustic Vehicle Alerting System), providing comprehensive product solutions [2][3]. Core Technologies and R&D Capabilities - The company has developed multiple core technologies in the acoustic field, including acoustic product simulation and design, vehicle sound system design, and acoustic signal processing technologies [4][5]. - Key technologies include active noise control, digital speaker system technology, and multi-zone sound reproduction technology, which enhance the company's competitive edge in the acoustic industry [6][7]. Financial Data - The company reported total assets of 3.21 billion yuan in 2021, with operating income of 636 million yuan and a net profit of 26 million yuan [12]. - The company has shown a significant increase in revenue over the past three years, with operating income rising from 176.89 million yuan in 2019 to 277.59 million yuan in 2021 [12]. Convertible Bond Issuance - The total amount of the convertible bonds to be issued is not more than 330 million yuan, with each bond having a face value of 100 yuan [23][24]. - Existing shareholders will have priority in the subscription of the bonds, with the specific ratio to be determined by the board of directors [24]. Risk Factors - The company faces risks related to high customer concentration, continuous technological innovation, and potential core technology leakage, which could impact its competitive position and financial performance [15][16][20]. - The automotive industry is subject to cyclical fluctuations, and any downturn could adversely affect the company's operations and profitability [20][21].