Lizhong convertible bonds called for early redemption

Lizhong Group announced the early redemption of its "Lizhong Convertible Bonds" at a price of CNY 100.39 per bond, including accrued interest. The redemption applies to all outstanding bonds recorded by the close of business on the redemption registration date, December 16, 2025. Trading of the convertible bonds will cease on December 12, 2025, and the last day for conversion to shares is December 17, 2025. Holders who do not convert by December 16, 2025, will have their bonds forcibly redeemed.

The company's stock price met the conditional redemption trigger, trading at or above 130% of the current conversion price for at least 15 out of 30 consecutive trading days between September 29, 2025, and November 17, 2025. The conversion price was adjusted multiple times, most recently to CNY 18.65 per share on November 14, 2025.

Additionally, the controlling shareholder's ownership, Tianjin Dongan Brothers Co., Ltd., and its concerted parties experienced a passive dilution. Their direct shareholding decreased from 65.60% to 64.87%, a reduction exceeding 5% integer multiples. This was due to an increase in the company's total share capital from the implementation of the 2022 restricted stock incentive plan and continuous conversion of convertible bonds.