Anhui Honglu Steel holds firm, won't adjust convertible bond price

Anhui Honglu Steel Construction Group announced on December 19, 2025, that its board of directors resolved not to amend downwards the conversion price of its "Honglu convertible bonds." The company's stock price had fallen below 85% of the current conversion price (RMB 32.08/share) for fifteen trading days within a consecutive thirty-day period, triggering the downward revision clause. The current conversion price of RMB 32.08/share was last adjusted on June 14, 2025.

The board's decision was based on a comprehensive consideration of the company's fundamentals, market conditions, and confidence in its long-term stable development and intrinsic value. The conversion period for the bonds is from April 15, 2021, to October 8, 2026.

Following this decision, the calculation for triggering the downward revision clause will restart from December 22, 2025. Should the clause be triggered again, the company's board will reconvene to determine whether to exercise the right to adjust the "Honglu convertible bonds" conversion price downwards. Investors are advised to be aware of investment risks.