Red Avenue New Materials to early redeem convertible bonds

Red Avenue New Materials Group Co., Ltd. has announced its decision to early redeem all outstanding convertible bonds. This follows the triggering of a conditional redemption clause, as the company’s stock price closed at or above 130% of the current conversion price for 15 trading days between September 24, 2025, and October 22, 2025. The current transfer price is 31.11 yuan per share, making the 130% threshold 40.443 yuan per share.

The board of directors approved the early redemption on October 22, 2025, which will be executed at the bond's face value plus accrued interest. Investors holding these convertible bonds must either sell them on the secondary market, convert them into company shares at 31.11 yuan per share, or face compulsory redemption at 100 yuan per bond plus accrued interest.

The company warns that compulsory redemption may lead to significant investment losses for bondholders who do not take action. Further details on the redemption procedures, price, payment methods, and timelines will be disclosed in an upcoming announcement.