Guolian Min Sheng Securities Underwriting and Sponsorship Co., Ltd.
Due Diligence Report on Wuhan Huakang Century Clean Technology Co., Ltd.'s Early Redemption of "Huayi Convertible Bonds"
Guolian Min Sheng Securities Underwriting and Sponsorship Co., Ltd. (hereinafter referred to as "Guolian Min Sheng" or "Sponsor") is the sponsor for Wuhan Huakang Century Clean Technology Co., Ltd. (hereinafter referred to as "Huakang Clean" or "the Company")'s issuance of convertible corporate bonds to unspecified targets in 2024. In accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship Business," "Measures for the Administration of Convertible Corporate Bonds," and "Shenzhen Stock Exchange Listed Company Self-Regulatory Supervision Guidelines No. 15 - Convertible Corporate Bonds," etc., Guolian Min Sheng has investigated the Company's early redemption of "Huayi Convertible Bonds." The details of the investigation are as follows:
I. Basic Information of Convertible Bonds
(I) Issuance of Convertible Bonds
With the approval of the China Securities Regulatory Commission's "Approval on the Registration of Wuhan Huakang Century Medical Technology Co., Ltd.'s Issuance of Convertible Corporate Bonds to Unspecified Targets" (Securities Regulatory Permit [2024] No. 220), the Company issued 7.5 million convertible corporate bonds to unspecified targets on December 23, 2024, with a face value of RMB 100 per bond. The total amount raised was RMB 750,000,000.00. After deducting underwriting and sponsorship fees, accounting, legal, credit rating, and other issuance expenses (excluding VAT), totaling RMB 6,183,142.52, the net proceeds were RMB 743,816,857.48. These proceeds were received on December 27, 2024. The receipt of these proceeds was audited by Zhonghui Certified Public Accountants (Special General Partnership), who issued the "Verification Report" (Zhonghui Audit Verification [2024] No. 11046) on December 27, 2024.
(II) Listing of Convertible Bonds
With the approval of the Shenzhen Stock Exchange, these convertible corporate bonds were listed and traded on the Shenzhen Stock Exchange on January 9, 2025. The bond name is "Huayi Convertible Bonds," and the bond code is "123251."
(III) Conversion Period of Convertible Bonds
The conversion period for these convertible bonds begins six months after the end of the issuance period (December 27, 2024, T+4 days) and ends on the maturity date of the convertible bonds, i.e., from June 27, 2025, to December 22, 2030 (if it falls on a statutory holiday or rest day, it will be extended to the next trading day; interest payments during the extension period will not be compounded).
(IV) Adjustment of Conversion Price of Convertible Bonds
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The initial conversion price of the convertible bonds issued by the Company was RMB 22.48 per share.
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Due to the Company's 2024 annual equity distribution plan, the conversion price of "Huayi Convertible Bonds" was adjusted from RMB 22.48 per share to RMB 22.43 per share. The adjustment took effect on May 29, 2025. For details, please refer to the "Announcement on the Adjustment of Convertible Bond Conversion Price due to 2024 Annual Equity Distribution" disclosed by the Company on Juchao Information Network (http://www.cninfo.com.cn) on May 22, 2025 (Announcement No.: 2025-062).
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Due to the Company's 2025 annual equity distribution plan, the conversion price of "Huayi Convertible Bonds" was adjusted from RMB 22.43 per share to RMB 22.24 per share. The adjustment took effect on May 29, 2026. For details, please refer to the "Announcement on the Adjustment of Convertible Bond Conversion Price due to 2025 Annual Equity Distribution" disclosed by the Company on Juchao Information Network (http://www.cninfo.com.cn) on May 22, 2026 (Announcement No.: 2026-046).