Xinquan automotive convertible bond conversion dilutes major shareholder stake

As of September 30, 2025, Jiangsu Xinquan Automotive Trim Co., Ltd. announced that 222,227,000 yuan of its Xin 23 Convertible Bonds have been converted into 4,378,593 company shares, representing 0.8985% of the company's total shares issued before the conversion. In the third quarter of 2025 alone, 222,133,000 yuan of the convertible bonds were converted, adding 4,376,768 shares to the company's capital.

Following these conversions, the company's total share capital increased to 491,680,564 shares. The outstanding amount of Xin 23 Convertible Bonds yet to be converted stood at 937,773,000 yuan, accounting for 80.8425% of the total issued amount.

The conversion resulted in a passive dilution of the controlling shareholders' stake. While the number of shares held by the controlling shareholder and parties acting in concert remained unchanged at 190,214,752 shares, their collective ownership percentage decreased from 39.03% to 38.68%. This reduction crossed the 1% integer threshold for equity changes. The company clarified that this passive dilution does not involve active share reduction by the shareholders, does not trigger a tender offer, and will not alter the company's controlling shareholder or actual controller, nor will it impact the corporate governance structure or continuous operations.