Hongfa technology to redeem convertible bonds early

Hongfa Technology Co., Ltd. announced its decision to exercise the early redemption right for its "Hongfa Convertible Bonds." This decision follows the company's stock price exceeding 130% of the current conversion price for 15 consecutive trading days, from October 31, 2025, to November 20, 2025. The stock price reached at least CNY 29.536 per share, surpassing the 130% threshold of the current conversion price of CNY 22.72 per share, thereby triggering the conditional redemption clause.

The company's board of directors approved the early redemption, citing reasons to reduce financial costs, lower the asset-liability ratio, and optimize the overall asset structure. Investors are urged to be aware that their bonds will be forcibly redeemed at face value plus accrued interest if not converted or sold, potentially leading to significant investment losses.

Hongfa Technology emphasized the importance for convertible bondholders to convert their bonds at CNY 22.72 per share or sell them in the secondary market within the specified timeframe. Those who fail to do so will have their bonds redeemed at CNY 100 per bond plus accrued interest. The company will issue further announcements detailing the redemption procedures, price, payment methods, and specific timelines.