Group 1 - Taifu Pump Industry has terminated the acquisition of 51% equity in Nanyang Huacheng [1] - Shareholder Fosun Pharma of Shanhe Pharmaceutical Auxiliary plans to reduce its stake by no more than 3% [1] - Several convertible bonds including Anji Convertible Bond, Longda Convertible Bond, and Oujing Convertible Bond will not undergo forced redemption [1][2] Group 2 - The following convertible bonds will not be adjusted: Oujing Convertible Bond, Longda Convertible Bond, and Tong 22 Convertible Bond [2] - New shares from Danna Biotechnology will be listed on the Beijing Stock Exchange [1] - North Mining Testing is also set to issue new shares on the Beijing Stock Exchange [1]

Core Viewpoint - Tongwei Co., Ltd. announced that its stock price has triggered the downward adjustment clause for its convertible bonds due to the closing price being below 85% of the conversion price for 15 out of 30 consecutive trading days. However, the company decided not to adjust the conversion price downward [1]. Summary by Sections - **Company Announcement** - On October 31, Tongwei Co., Ltd. released an announcement regarding its convertible bonds, specifically "Tong 22 Convertible Bonds" [1]. - **Stock Price Performance** - The company's stock closing price was below the current conversion price of 29.41 yuan per share for 15 out of the last 30 trading days, triggering the adjustment clause [1]. - **Board Decision** - The company's board of directors, during its fifth meeting of the ninth session, decided not to proceed with the downward adjustment of the conversion price [1]. - **Future Considerations** - The company will not propose any downward adjustment plan for the conversion price within three months following the board's decision, specifically from November 1, 2025, to January 31, 2026 [1].

Core Viewpoint - The company has announced the extension of its employee stock ownership plan, reflecting confidence in long-term development and commitment to employee interests [9][10][14]. Financial Data - The company reported improvements in net profit and earnings per share due to a rebound in prices across the photovoltaic industry chain during the reporting period [5]. Shareholder Information - As of the end of the reporting period, the company has repurchased 101,688,812 shares, accounting for 2.26% of the total share capital [6]. Employee Stock Ownership Plan - The initial duration of the employee stock ownership plan was from February 25, 2021, to February 24, 2024, which has now been extended by 36 months to February 24, 2029 [10][14]. - The plan currently holds 76,499,840 shares, representing 1.70% of the company's total share capital [14]. Board Meeting Resolutions - The board of directors held a meeting on October 24, 2025, where two proposals were unanimously approved, including the third-quarter report and the extension of the employee stock ownership plan [30][31].

Summary of Convertible Bond Conversion Results - As of September 30, 2025, a total of 168,700 units of "Tong 22 Convertible Bonds" have been converted into A-shares of Tongwei Co., Ltd, amounting to 16,870,000 CNY and resulting in 441,653 shares converted, which represents 0.00981% of the company's total issued shares before conversion [2][5] - The remaining unconverted "Tong 22 Convertible Bonds" amount to 11,983,130,000 CNY, accounting for 99.85942% of the total issuance [2][5] - In the third quarter of 2025, from July 1 to September 30, 1,300 units of "Tong 22 Convertible Bonds" were converted into A-shares, totaling 130,000 CNY and resulting in 3,745 shares converted [2][4] Overview of "Tong 22 Convertible Bonds" Issuance - The company issued 120 million units of convertible bonds on February 24, 2022, with a total value of 12 billion CNY, maturing on February 23, 2028, and a tiered interest rate starting from 0.20% in the first year to 2.00% in the sixth year [3] - The initial conversion price was set at 39.27 CNY per share, adjusted to 38.36 CNY on May 30, 2022, and further adjusted to 35.50 CNY on May 31, 2023, and to 34.60 CNY on June 14, 2024, due to annual profit distributions [3] Guarantee Provision Update - During the period from September 1 to September 30, 2025, the company and its subsidiaries provided mutual guarantees totaling 1.853 billion CNY, while the subsidiary Tongwei Agricultural Financing Guarantee Co., Ltd provided guarantees amounting to 195 million CNY for clients [7][8] - As of September 30, 2025, the total actual balance of mutual guarantees provided by the company and its subsidiaries was 43.822 billion CNY, with no overdue guarantees reported [9][16] - The company has authorized a guarantee limit of up to 120 billion CNY for mutual guarantees and 900 million CNY for client guarantees, which can be reused within the authorization period [12]

Core Viewpoint - The company has reported significant asset impairment and write-off for the first half of 2025, totaling 25.44 billion yuan in profit reduction, which reflects the ongoing challenges in the photovoltaic industry and aims to provide a more accurate representation of its financial status [3][8]. Group 1: Financial Data - The company has recognized an asset impairment provision of 25.04 billion yuan, primarily due to inventory and receivables showing signs of impairment [4][5]. - Specifically, the inventory impairment provision amounted to 24.19 billion yuan, attributed to the ongoing supply-demand imbalance in the photovoltaic sector [4]. - The company also reported a write-off loss of 0.40 billion yuan for assets deemed unusable [7]. Group 2: Board Decisions - The board of directors convened and unanimously approved the half-year report and the asset impairment and write-off proposals [10][16]. - The meeting was held in compliance with relevant laws and regulations, with all nine directors present [12][13]. - The board's decisions included the approval of the "Quality Improvement and Efficiency Recovery" action plan's semi-annual evaluation report [16].

Report Industry Investment Rating No relevant information provided. Core Viewpoints of the Report - In July, the convertible bond market continued its upward trend, with the equal - weighted index significantly outperforming the weighted index. The median convertible bond price reached a maximum of 129 yuan, approaching the level at the beginning of 2022, but the structure showed that low - priced bonds were significantly higher than those at the beginning of 2022, while high - priced bonds were significantly lower [2][9]. - The July market was a "second - derivative" fluctuation, while the equity "first - derivative" remained positive. Before the September 3 parade, A - shares may have opportunities, and the dumbbell strategy (high - dividend + micro - cap stocks) may rebound. The convertible bond market will continue to follow the underlying stocks and remain strong [2]. - The new VAT policy on the interest income of bonds such as treasury bonds may increase the cost - effectiveness of stable and low - volatility convertible bonds, and the buying volume of bond - type convertible bonds and the entire convertible bond market may increase [2]. - After short - term winning - rate volatility pricing, the market will shift to odds - based advantages. It is recommended to pay attention to the cost - effectiveness improvement of bank convertible bonds and high - elasticity varieties, and the future will shift from position - based victory to structure - based victory [4]. Summary According to Relevant Catalogs 1. Review of the Convertible Bond Market in July: Recovery under Strong Equity - **Price and Index Performance**: The convertible bond market continued to rise in July, with a steeper upward slope compared to June. The equal - weighted index significantly outperformed the weighted index, and there was a slight pullback at the end of the month. The median convertible bond price reached a maximum of 129 yuan and closed at around 127 yuan at the end of the month [2][9]. - **Style and Sector Performance**: In July, small - cap and low - rating styles were dominant again, and their excess performance since the beginning of the year reached a new high. The pharmaceutical sector led the rise, while the financial sector significantly underperformed other sectors since 2025 [10][12][15]. - **Comparison with Underlying Stocks**: Convertible bonds slightly underperformed the underlying stocks, but the underperformance margin further narrowed compared to June. The convertible bond market showed strong performance overall, and its valuation advantage was significant [16][21]. - **Valuation Situation**: The convertible bond valuation confirmed an upward trend, with the 100 - yuan premium rate rising to a maximum of 33% in July. The current high - valuation problem is mainly reflected in the low - parity area, while the 120 - 130 yuan parity is still a valuation depression [22][24][27]. 2. Outlook for the Convertible Bond Market in August: Shifting from Position - Based Victory to Structure - Based Comparison - **Equity Market and Convertible Bond Market**: The short - term adjustment of the equity market is due to the full implementation of the market rotation and catch - up market, and the market has returned to a volatile state. Before the September 3 parade, A - shares may have opportunities, and the convertible bond market will follow the underlying stocks and remain strong [2][46]. - **Valuation of Convertible Bonds**: The high valuation of convertible bonds may be maintained because the overall risk of the stock market is controllable. However, the absolute valuation of bond - type convertible bonds is relatively high, and there are potential adjustment risks. After the short - term adjustment, they have certain cost - effectiveness [48][53][60]. - **Impact of VAT Policy**: The adjustment of the bond VAT policy may increase the attractiveness of bond - type convertible bonds. After the tax increase, the cost - effectiveness of pure bonds decreases, and the buying volume of bond - type convertible bonds may increase [63][66]. - **Cost - Effectiveness of Different Types of Convertible Bonds**: The cost - effectiveness of high - dividend and low - volatility convertible bonds such as bank convertible bonds may increase, and attention should also be paid to high - elasticity varieties and individual bonds with odds advantages [4]. 3. Bond Selection Directions and Targets in August - **Bond Selection Directions**: First, pay attention to the directions favored by the high - to - low shift in the August market, such as bank convertible bonds and some "bank - like" convertible bonds; second, focus on small - cap growth sectors such as self - controllability and national defense and military industries; third, pay attention to convertible bonds that are not subject to forced redemption or have been listed for less than 6 months; fourth, pay attention to convertible bonds that can replace underlying stocks [4]. - **Targets in August**: Low - volatility convertible bonds include Lvdong Convertible Bond, Hengyi Convertible Bond 2, etc.; stable convertible bonds include Bo 25 Convertible Bond, Guanghe Convertible Bond, etc.; high - volatility convertible bonds include Daotong Convertible Bond, Jiahe Convertible Bond, etc. [4]

Group 1 - The core viewpoint of the announcement is that Tongwei Co., Ltd. maintains its AAA credit rating for both the company and its convertible bonds, with a stable outlook [1][2] - The previous credit rating results indicated that the company's credit rating was AAA and the "Tong 22 Convertible Bond" also had a credit rating of AAA, with a stable outlook [1] - The tracking rating was conducted by United Ratings Co., Ltd. based on a comprehensive analysis of the company's operational status, industry, and other factors [2] Group 2 - The tracking rating report was issued on June 6, 2025, confirming the company's and the bond's credit ratings remain unchanged [2] - The report is available on the Shanghai Stock Exchange website for further details [2]