Hainan Rubber's controlling shareholder to issue exchangeable bonds

Hainan Natural Rubber Industry Group Co., Ltd. announced that its controlling shareholder, Hainan State Farms Investment Holdings Group Co., Ltd., intends to issue non-public exchangeable corporate bonds. These bonds will be backed by a portion of Hainan Rubber's A-share stock directly held by the controlling shareholder.

The proposed exchangeable bonds will have a term not exceeding five years, with a fundraising target of up to RMB 2.1 bn. Bondholders will have the right to convert their bonds into Hainan Rubber A-shares during the exchange period, provided conversion conditions are met. The application for this issuance has been approved by the Hainan Provincial State-owned Assets Supervision and Administration Commission and accepted by the Shanghai Stock Exchange. Final approval and issuance details depend on market conditions and relevant departmental consent.

As of the announcement date, Hainan State Farms Investment Holdings Group Co., Ltd. directly holds 2,754,012,024 A-shares of Hainan Rubber, representing 64.35% of the company's total share capital. This exchangeable bond issuance is not expected to change the company's controlling shareholder or actual controller. Hainan Rubber will disclose information regarding the issuance and conversion progress as required by regulations, cautioning investors to be aware of investment risks.