Important Statement
Zhejiang Securities Co., Ltd. (hereinafter referred to as "Zhejiang Securities") has prepared this report based on publicly disclosed information from Hangyang Group Co., Ltd. (hereinafter referred to as "Hangyang" or "the Company") and materials provided by the issuer to Zhejiang Securities. This report is compiled in accordance with relevant regulations such as the "Management Measures for Convertible Corporate Bonds," "Management Measures for the Issuance and Trading of Corporate Bonds," and the "Code of Conduct for Trustees of Corporate Bonds," as well as the provisions of the "Trustee Management Agreement" signed with Hangyang. This report does not constitute a recommendation for investors to take or refrain from any action; investors should make independent judgments regarding related matters and should not rely on any content in this report as a commitment or statement made by Zhejiang Securities.
I. Approval Documents and Approval Scale
Hangyang obtained the approval from the China Securities Regulatory Commission on February 28, 2022, for the public issuance of convertible bonds (Approval No. [2022] 408). The issuer is approved to publicly issue convertible corporate bonds with a total face value of RMB 1.137 billion, with a term of six years.
II. Basic Information on the Trustee Managed Bonds
(1) Bond Name
Hangyang Group Co., Ltd. 2022 A-share Convertible Corporate Bonds (hereinafter referred to as "Convertible Bonds").
(2) Bond Code and Abbreviation
Bond Code: 127064; Bond Abbreviation: Hangyang Convertible Bonds.
(3) Bond Issuance Date
The issuance date of the bonds is May 19, 2022.
(4) Issuance Scale
The total amount of the convertible bonds issued is RMB 1.137 billion.
(5) Face Value and Issuance Price
The face value of each convertible bond is RMB 100, issued at face value.
(6) Bond Term
The term of the issued convertible bonds is six years from the date of issuance.
(7) Bond Interest Rate
The coupon rates for the issued convertible bonds are set as follows: Year 1: 0.20%, Year 2: 0.40%, Year 3: 0.60%, Year 4: 1.50%, Year 5: 1.80%, Year 6: 2.00%.
(8) Repayment of Principal and Interest
The convertible bonds will pay interest annually, with the principal and final year's interest repaid at maturity.
- Annual Interest Calculation
Annual interest refers to the interest that convertible bondholders are entitled to based on the total face value of the convertible bonds they hold, calculated from the issuance date. The formula is: I = B × i
- I: Annual interest amount
- B: Total face value of convertible bonds held by the bondholder on the interest record date
- i: Coupon rate for that year
- Payment Method
- The convertible bonds will pay interest once a year, starting from the issuance date.
- Interest payment date: The interest payment date is the same day each year after the issuance date. If this day is a legal holiday or weekend, it will be postponed to the next working day, with no additional interest paid during the postponement. Each pair of adjacent interest payment dates constitutes one interest year.
- Interest record date: The interest record date is the trading day before each interest payment date. The company will pay the annual interest within five trading days after the interest payment date. Convertible bonds converted into company stock before (including) the interest record date will not enjoy interest for that year and subsequent interest years.
- Tax liabilities on interest income received by convertible bondholders shall be borne by the holders.
(9) Conversion Period
The conversion period for the issued convertible bonds is from the first trading day after six months from the end of the issuance until the maturity date of the convertible bonds.