Nanshan Group triggers early redemption of exchangeable bonds

Shandong Nanshan Aluminium Company Limited announced its controlling shareholder, Nanshan Group Co., Ltd., will conduct an early redemption of its 2023 privately issued exchangeable corporate bonds (Tranche 1, Type 1). The redemption is triggered because the outstanding bond balance fell below 50m yuan. The last conversion date for the bonds is set for December 5, 2025, with bondholders required to convert before the Shanghai Stock Exchange market close.

The redemption will occur on December 8, 2025, for the remaining principal and accrued interest. Each bond, with a par value of 1,000.00 yuan, will receive an interest payment of 9.493 yuan (tax inclusive), based on a 1.50% annual interest rate for the period from April 21, 2025, to December 7, 2025. The bonds will be delisted on December 8, 2025.

Individual investors are subject to a 20% income tax on interest earned from these corporate bonds. Non-resident enterprises investing in the domestic bond market are exempt from enterprise income tax and value-added tax on bond interest income until December 31, 2025, provided they do not have a domestic establishment with actual ties to the bond interest.