Kinwong convertible bond faces early redemption after trading surge

Shenzhen Kinwong Electronic’s “Jing 23 Convertible Bond” experienced abnormal trading fluctuations, with its closing price deviating by over 30% across two consecutive trading days on September 10 and 11, 2025. As of September 11, 2025, the bond closed at CNY 292.577 per share, representing a 192.58% premium over its par value and an 11.57% conversion premium.

The company announced its stock had met the early redemption trigger, with closing prices at or above 130% of the current conversion price of CNY 23.91 per share for fifteen trading days between August 20 and September 9, 2025. Consequently, the board of directors convened on September 9, 2025, and resolved to exercise its right to early redeem “Jing 23 Convertible Bond.”

Bondholders must decide whether to continue trading the bonds in the secondary market, convert them into shares at CNY 23.91 per share within the specified timeframe, or face mandatory redemption at par value plus accrued interest. Investors are cautioned about potential significant investment losses if the bonds are forcibly redeemed.