Zhenghai convertible bonds face mandatory early redemption

Yantai Zhenghai Magnetic Material Co., Ltd. has issued its fifth reminder regarding the early redemption of its Zhenghai convertible bonds. The company will compulsorily redeem all outstanding bonds at RMB 100.50 per bond, inclusive of accrued interest, for any bonds not converted by the close of market on September 19, 2025. Trading of the bonds will cease on September 17, 2025, and the conversion period will end on September 22, 2025, with delisting from the Shenzhen Stock Exchange to follow.

The redemption condition was met on August 22, 2025, as the company's stock price closed above 130% of the current conversion price (RMB 12.63 per share) for 15 out of 30 consecutive trading days. The board approved the early redemption to reduce interest expenses and enhance capital efficiency. Holders who do not convert by the deadline will receive the redemption payment on September 29, 2025.

The company explicitly warns that the current market price of the Zhenghai convertible bonds differs significantly from the redemption price. Investors who fail to convert their bonds to shares in time may incur losses. Additionally, bondholders intending to convert must have an open GEM trading account.