Hangzhou Boiler Group's Xizi convertible bonds near forced redemption

Hangzhou Boiler Group's convertible bonds, formerly "Hangzhou Boiler Convertible Bonds," will cease trading on September 17, 2025, and stop converting to shares on September 22, 2025. The last day for investors to convert their bonds into shares is September 19, 2025. Unconverted bonds will be forcibly redeemed at a price of CNY 101.12 per bond, including taxes, on September 22, 2025. The company emphasizes that this redemption price may differ significantly from market prices before the conversion and trading halt, potentially leading to investor losses.

The company's board of directors approved the early redemption on August 28, 2025, after the convertible bonds' stock price met the conditional redemption criteria. The stock traded at or above 130% of the current conversion price of CNY 10.99 per share for at least 15 trading days between July 23, 2025, and August 28, 2025. The bonds were initially issued on December 24, 2021, with a total value of CNY 1.11 bn.

The conversion price has been adjusted several times from its initial CNY 28.08 per share, most recently to CNY 10.99 per share, effective August 12, 2025. Funds for the redemption are expected to reach the central depository account by September 25, 2025, with investor accounts credited by September 29, 2025. Investors with pledged or frozen bonds should release them before the conversion halt.