Huamao convertible bonds near redemption trigger amid strong stock performance

HMT (Xiamen) New Technical Materials Co. ("Huamao Technology") has issued a cautionary announcement regarding its "Huamao convertible bonds." As of November 28, 2025, the company's stock price has traded at or above 130% of the current conversion price (43.86 yuan per share) for 10 trading days since November 17, 2025. If the stock maintains this performance for at least 15 out of 30 consecutive trading days, it will trigger the conditional redemption clause outlined in the bond's prospectus.

The "Huamao convertible bonds" were issued on September 14, 2023, with a total value of 1.05 billion yuan and are listed on the Shanghai Stock Exchange. The initial conversion price was 34.18 yuan per share, adjusted multiple times due to stock option exercises and profit distributions. The latest adjustment, effective October 13, 2025, set the conversion price at 33.74 yuan per share.

Should the redemption conditions be met, the company's board of directors will convene on the trigger date to decide whether to redeem all or part of the outstanding convertible bonds at their face value plus accrued interest. Investors are advised to monitor subsequent company announcements closely due to the inherent investment risks.