Honglu convertible bond triggers put option for eleventh time

Anhui Honglu Steel Construction Group's "Honglu Convertible Bonds" have triggered a conditional put option for the eleventh time. This option became effective because the company's stock price traded below 70% of the current conversion price (CNY 32.08/share) for thirty consecutive trading days between October 9, 2025, and November 19, 2025. The bonds are also in their final two interest-accrual years.

Bondholders can exercise their put option for all or part of their untransferred bonds at a price of CNY 100.312 per bond, which includes principal and accrued interest. The put option declaration period is from December 5, 2025, to December 11, 2025. The company will receive funds by December 16, 2025, with investor funds expected by December 18, 2025.

For individual and mutual fund investors, a 20% income tax will be withheld, resulting in a net return of CNY 100.249 per bond. Qualified foreign investors (QFII and RQFII) are exempt from income tax and will receive the full CNY 100.312 per bond. Other bondholders will also receive CNY 100.312 per bond but are responsible for their own tax obligations.