Jinhui Holdings Company Limited (137) disclosed supplemental information regarding the recent acquisition of equity linked fixed coupon notes (FCNs). The FCNs provide a pre-set fixed coupon until maturity and are linked to the performance of underlying shares. They may be redeemed early if certain trigger prices are reached or otherwise redeemed at maturity. If the underlying share price falls below the strike price by maturity, redemption may occur in the form of physical delivery of the underlying shares at the strike price.

The acquired FCNs focus on the underlying shares of five companies: China Unicom (#762), China Mobile (#941), Hong Kong China Gas (#0003), Hong Kong Exchanges and Clearing (#388), and Alibaba Group Holding (#9988). Each of these underlying companies recorded net profits and net assets for their respective financial reporting years, with financial information extracted from their public disclosures.

The maximum risk exposure Jinhui Holdings Company Limited faces from these FCNs is limited to the principal amount invested in each note, with additional credit risk arising from the issuer. The company’s objective in pursuing these FCNs is to enhance yield relative to traditional deposits while keeping tenors short and coupons predictable.

It is noted that one of the FCNs (FCN-1) was subject to an early redemption event because the closing prices of the underlying shares exceeded the trigger prices on the relevant observation date. As a result, Jinhui Holdings Company Limited received full redemption of the principal amount plus interest income, amounting to approximately CNY46,000 (around HKD50,000).

The corporate update indicates a continuing focus on balanced treasury management, based on stable income generation and controlled risk.