Hengyi Petrochemical opts against convertible bond price adjustment

Hengyi Petrochemical announced its decision not to downwardly adjust the conversion price of its "Hengyi Convertible Bond 2" (127067), despite its stock price meeting the trigger condition (closing price below 85% of the current conversion price for at least 15 out of 30 consecutive trading days). The board passed this resolution at its August 28, 2025 meeting.

The company will also not propose a downward adjustment if the trigger is met again within the next six months, from August 29, 2025, to February 28, 2026. The conversion price, initially CNY 10.50 per share, was adjusted to CNY 10.41 per share on June 26, 2024, then to CNY 10.36 per share on June 20, 2025, and most recently to CNY 10.37 per share on July 11, 2025.

The board cited the convertible bond’s long remaining term and the belief that the current stock price does not accurately reflect the company's long-term intrinsic value as reasons for this decision, aiming to protect the interests of all investors. If the trigger is met again after March 2, 2026, the board will reconsider a potential adjustment.