Jiamei Food Packaging Chuzhou Co. Ltd. Announces Early Redemption of Convertible Bond and Upcoming Trading Halt
On 28 January 2026, Jiamei Food Packaging Chuzhou Co. Ltd. (002969) issued a formal notice detailing the early redemption of its 2021‑issued convertible bond (code 127042) and the imminent suspension of bond trading. The announcement, released by the board of directors, confirms that the company will exercise its right to redeem the bond in full, effective 6 February 2026, after meeting the conditional trigger set forth in the bond’s prospectus.
Key Dates and Mechanics
| Event | Date | Action |
|---|---|---|
| Board approval | 15 January 2026 | Board approves early redemption under the bond’s redemption clause. |
| Last trading day | 2 February 2026 | Bond ceases trading on the Shenzhen Stock Exchange. |
| Last conversion day | 5 February 2026 | Holders may still convert shares up to market close. |
| Redemption registration | 5 February 2026 | Official registration of the redemption. |
| Redemption payment | 6 February 2026 | Redemption funds disbursed to the bond registry. |
| Settlement | 13 February 2026 | Investors receive redemption proceeds. |
The bond, originally issued on 9 August 2021 with a face value of RMB 100 per unit and a total issuance of 750 million units (RMB 750 million), had an initial conversion price of RMB 4.87 per share. After several equity distributions, the conversion price was adjusted to RMB 4.55 on the most recent half‑yearly adjustment in September 2025. The trigger for early redemption required that, between 19 December 2025 and 15 January 2026, the company’s shares closed at or above 130 % of the conversion price—i.e., RMB 5.92 per share—for at least 15 trading days. This condition was satisfied, prompting the redemption.
Market Context
Jiamei Food Packaging’s stock price experienced a dramatic surge of 408 % during the period from 17 December 2025 to 23 January 2026, largely driven by the company’s transition to a robot‑technology concept stock following a change in controlling shareholders. The convertible bond mirrored the share’s performance, trading at approximately RMB 508 per unit on 23 January 2026, and was poised for redemption at a price of RMB 100.893 per unit. Investors who had not converted before 5 February 2026 would be forced to accept the redemption price, potentially incurring significant losses relative to the market value of the bond.
Implications for Stakeholders
- Shareholders: The bond redemption eliminates a layer of convertible debt that could dilute equity if conversion were exercised. It also removes a potential source of upward pressure on the share price, given the bond’s sensitivity to share movements.
- Bondholders: Those who converted shares prior to 5 February 2026 retain the newly issued equity; those who held the bond until the redemption will receive the redemption amount of RMB 100.893 per unit, inclusive of tax.
- Market Participants: The suspension of trading on 2 February 2026 will provide a short window for investors to execute conversion or sale decisions. The company’s decision to redeem the bond reflects confidence in its liquidity position and a strategic move to streamline its capital structure.
Forward‑Looking Perspective
By redeeming the convertible bond ahead of schedule, Jiamei Food Packaging signals its intention to reduce leverage and simplify its debt profile at a time when share prices are markedly elevated. This maneuver is likely to enhance earnings stability and improve the firm’s debt‑to‑equity ratio, positioning the company favorably for future capital‑raising activities. Investors should monitor the company’s subsequent disclosures, particularly any announcements regarding new financing initiatives or strategic expansions in the food packaging sector, to assess the long‑term impact of this redemption on Jiamei Food Packaging’s financial trajectory.
