Zhenghai convertible bonds: final call for investors to convert

Yantai Zhenghai Magnetic Material Co., Ltd. has issued an urgent advisory for holders of its "Zhenghai Convertible Bonds," which will cease trading on September 17, 2025, and halt conversion rights by September 22, 2025. Unconverted bonds will be mandatorily redeemed at CNY 100.50 per bond on September 22, 2025, a price notably lower than the bond's current secondary market value.

The company's stock triggered the conditional redemption clause by trading above 130% of the conversion price (CNY 16.419 per share) for at least 15 out of 30 consecutive trading days between July 25, 2025, and August 22, 2025. Bondholders are strongly advised to convert their bonds into shares by the final conversion date of September 19, 2025, to avoid potential investment losses.

Investors are reminded that a Shenzhen Stock Exchange ChiNext trading account is required for conversion. Funds from the redemption are expected to reach the China Securities Depository and Clearing Corporation Limited account by September 25, 2025, and individual investor accounts by September 29, 2025.