Stock Code: 603650 stock abbreviation: Red Avenue New Materials Group Co.Ltd(603650) No.: 2022-009 bond Code: 113621 bond abbreviation: Tongcheng convertible bond
Red Avenue New Materials Group Co.Ltd(603650)
Announcement on interest payment of convertible corporate bonds
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents. Important content tips:
● registration date of interest payment creditor’s rights of convertible bonds: January 25, 2022
● ex dividend date of convertible bonds: January 26, 2022
● interest payment date of convertible bonds: January 26, 2022
The convertible corporate bonds (hereinafter referred to as “this convertible bond” or “Tongcheng convertible bond”) publicly issued by Red Avenue New Materials Group Co.Ltd(603650) (hereinafter referred to as “the company”) on January 26, 2021 will pay interest from January 26, 2021 to January 25, 2022 from January 26, 2022. In accordance with the relevant provisions of the prospectus for the public offering of convertible corporate bonds (hereinafter referred to as the “prospectus”), the relevant matters are hereby announced as follows:
1、 Basic information of Tongcheng convertible bonds
(I) bond Name: Red Avenue New Materials Group Co.Ltd(603650) convertible corporate bonds
(II) bond abbreviation: Tongcheng convertible bond
(III) bond Code: 113621
(IV) bond type: convertible corporate bonds convertible into A-Shares of the company
(V) issuance scale: RMB 800.18 million
(VI) issue quantity: 8001800 sheets (800180 hands)
(VII) face value and issue price: the face value of each convertible corporate bond issued this time is RMB 100, which is issued at face value.
(VIII) bond term: the term of convertible corporate bonds issued this time is 6 years from the date of issuance, i.e. from January 26, 2021 to January 25, 2027.
(IX) coupon rate: 0.30% in the first year, 0.50% in the second year, 1.00% in the third year, 1.50% in the fourth year, 1.80% in the fifth year and 2.00% in the sixth year.
(x) term and method of repayment of principal and interest:
The convertible corporate bonds issued this time adopt the interest payment method of paying interest once a year, return the principal and pay the interest of the last year when due.
1. Annual interest calculation
Annual interest refers to the current interest enjoyed by the holders of convertible corporate bonds for each full year from the first date of issuance of convertible corporate bonds according to the total face value of convertible corporate bonds held.
The calculation formula of annual interest is: I = B × i
1: Means the annual interest amount;
B: Refers to the total face value of convertible corporate bonds held by the holders of convertible corporate bonds issued this time on the registration date of interest paying creditor’s rights in the interest bearing year (hereinafter referred to as “current year” or “each year”);
i: The current year’s coupon rate of convertible corporate bonds.
2. Interest payment method
A. The convertible corporate bonds issued this time adopt the interest payment method of paying interest once a year, and the starting date of interest calculation is the first day of convertible corporate bonds issuance (January 26, 2021, t day).
B. Interest payment date: the interest payment date of each year is the date of each full year from the first date of issuance of convertible corporate bonds. If the day is a legal holiday or rest day, it shall be postponed to the next trading day without additional interest. Every two adjacent interest payment days is an interest year.
C. Interest payment creditor’s right registration date: the interest payment creditor’s right registration date of each year is the trading day before the interest payment date of each year. The company will pay the interest of the current year within five trading days after the interest payment date of each year. For the convertible corporate bonds that apply for conversion into the company’s shares before the registration date of interest paying creditor’s rights (including the registration date of interest paying creditor’s rights), the company will no longer pay the interest of this interest year and subsequent interest years to its holders.
D. The tax payable on the interest income obtained by the holders of convertible corporate bonds shall be borne by the holders themselves. （11） Conversion period: the conversion period of convertible bonds issued this time starts from the first trading day (August 2, 2021) six months after the end of the issuance of convertible bonds (February 1, t + 4, 2021) to the maturity date of convertible bonds (January 25, 2027). (in case of legal holidays or rest days, it shall be extended to the first working day thereafter; the interest payment during the extended period shall not be calculated separately).
（12） Conversion price: the initial conversion price is 32.96 yuan / share, The latest conversion price is 32.62 yuan / share (due to the company’s implementation of the 2020 annual profit distribution plan, the conversion price is adjusted to 32.62 yuan / share from June 8, 2021. For details, see the announcement on the price adjustment of convertible bonds to shares disclosed on the website of Shanghai Stock Exchange on June 3, 2021, Announcement No.: 2021-074).
（13） Credit rating: the main credit rating result of the company is AA, and the rating result of Tongcheng convertible bond is AA, and the rating outlook is stable.
（14） Credit rating agency: United credit rating Co., Ltd.
（15） Guarantee matters: no guarantee is provided for the convertible corporate bonds issued this time.
（16） Listing time and place: listed on Shanghai Stock Exchange on February 22, 2021.
（17） Registration, custody, entrusted bond dividend distribution and cashing Institution: China Securities Depository and Clearing Co., Ltd. Shanghai Branch (hereinafter referred to as “China Clearing Shanghai Branch”).
2、 This interest payment scheme
According to the provisions of the prospectus, this interest payment is the first year of Tongcheng convertible bonds, and the interest period is from January 26, 2021 to January 25, 2022. The coupon rate of this interest year is 0.30% (tax included), that is, the interest exchange amount of each convertible corporate bond with a face value of RMB 100 is RMB 0.30 (tax included). 3、 Registration date, ex dividend date and payment date of interest payment creditor’s rights
(I) registration date of interest payment creditor’s rights of convertible bonds: January 25, 2022;
(II) ex dividend date of convertible bonds: January 26, 2022;
(III) issuing date of convertible bond interest conversion: January 26, 2022.
4、 Interest payment object
The interest payment object is all holders of “Tongcheng convertible bonds” registered with China Clearing Shanghai branch after the closing of Shanghai Stock Exchange on January 25, 2022.
5、 Interest payment method
(I) the company has signed the agreement on entrusted agency bond cashing and interest conversion with CSDCC Shanghai Branch, and entrusted CSDCC Shanghai branch to cashing and interest conversion of bonds.
The company will fully transfer the current interest of convertible bonds to the bank account designated by China Clearing Shanghai Branch 2 trading days before the current interest payment date. If the company fails to transfer the bond cashing and interest exchange funds to the bank account designated by CSDCC Shanghai Branch on time and in full, CSDCC Shanghai Branch will terminate the entrusted agency bond cashing and interest exchange services according to the agreement, and the subsequent cashing and interest exchange work shall be handled by the company itself. The relevant implementation matters shall be subject to the announcement of the company.
(II) after receiving the payment, CSDCC Shanghai Branch will transfer the interest of convertible bonds to the corresponding cashing institution (securities company or other institution recognized by CSDCC Shanghai Branch) through the capital settlement system, and the investor will receive the interest of convertible bonds from the cashing institution.
6、 Notes on income tax on interest of convertible bonds
(I) in accordance with the individual income tax law of the people’s Republic of China and other relevant tax regulations and documents, individual investors in corporate convertible bonds (including bondholders of securities investment funds) shall pay income tax on individual interest income of corporate bonds at the tax rate of 20% of the interest amount, That is, the interest exchange amount of each convertible bond with a face value of RMB 100 is RMB 0.30 (before tax), and the actual distributed interest is RMB 0.24 (after tax). The individual income tax on convertible bond interest will be uniformly withheld and paid by each cashing institution and directly to the local tax department where each cashing institution is located. If each interest payment outlet fails to perform the obligation of withholding and paying the individual income tax of the above bond interest, the resulting legal liability shall be borne by each interest payment outlet.
(II) according to the enterprise income tax law of the people’s Republic of China and other relevant tax regulations and documents, for resident enterprises holding convertible bonds, the bond interest income tax shall be paid by themselves, that is, the actual distribution amount of each convertible bond with a face value of RMB 100 is RMB 0.30 (including tax).
(III) for non resident enterprises such as qualified foreign institutional investors and RMB foreign institutional investors holding current convertible bonds (its meaning is the same as the enterprise income tax law of the people’s Republic of China), according to the announcement on the continuation of enterprise income tax and value-added tax policies for overseas institutions investing in the domestic bond market (Announcement No. 34 of the State Administration of Taxation of the Ministry of Finance in 2021), From November 7, 2021 to December 31, 2025, the bond interest income obtained by overseas institutions investing in the domestic bond market is temporarily exempted from corporate income tax and value-added tax, that is, the actual distribution amount of each convertible bond with a face value of RMB 100 is RMB 0.30 (including tax). The scope of the above temporary exemption from enterprise income tax does not include the bond interest actually connected with the institutions and sites established by overseas institutions in China.
7、 Relevant institutions and contact methods
(I) issuer: Red Avenue New Materials Group Co.Ltd(603650)
Contact address: room 2501, 25 floor, Shanghai Center Tower, No. 501, Yingcheng Middle Road, Pudong New Area, Shanghai.
Contact Department: Office of the board of directors Tel.: 021-62109966 (Ⅱ) recommendation institution (lead underwriter): China Merchants Securities Co.Ltd(600999) contact address: No. 111, Fuhua 1st Road, Futian street, Futian District, Shenzhen sponsor representative: Han Fenquan LAN libing Tel.: 0755-82943666 (III) custodian: China Securities Depository and Clearing Co., Ltd. Shanghai branch office address: No. 188, Yanggao South Road, Pudong New Area, Shanghai Tel.: 4008-058-058 this announcement is hereby made.
Red Avenue New Materials Group Co.Ltd(603650) board of directors January 20, 2022
