Xuerong Bio's controlling shareholder diluted amidst convertible bond redemption

Shanghai Xuerong Bio-Technology announced that its controlling shareholder, Yang Yongping, and his concerted parties experienced a passive dilution of their shareholding, falling from 21.1404% to 20.8842% as of September 2, 2025. This change, which crossed the 1% threshold, was due to the increase in the company’s total share capital resulting from the conversion of convertible bonds.

Concurrently, the company triggered the conditional redemption clause for its "Xuerong Convertible Bonds." From August 14 to September 3, 2025, the company's stock price met the redemption condition. The board approved the early redemption at a price of 100.93 per bond (including accrued interest) with the last trading day for the bonds being October 10, 2025, and the last day for conversion being October 15, 2025.

The board of directors passed the early redemption resolution on September 3, 2025, after a comprehensive review of market conditions and the company's situation. The company's management is authorized to oversee the redemption process, which will see the "Xuerong Convertible Bonds" delisted from the Shenzhen Stock Exchange upon completion. Investors are urged to convert their bonds by the deadline to avoid potential losses from forced redemption.