Dynagreen Environmental Protection Group Co., Ltd. released its third-quarter 2026 update on the conversion status of its A-share convertible corporate bonds and the resulting changes in share capital.
Convertible Bond Snapshot • Issue size: RMB 2.36 billion, nominal value RMB 100 per bond, six-year tenor (issued 25 Feb 2022). • Coupon structure: 0.20% (Year 1), 0.40% (Year 2), 0.60% (Year 3), 1.50% (Year 4), 1.80% (Year 5), 2.00% (Year 6). • Trading commenced on the Shanghai Stock Exchange on 23 Mar 2022 under code 113054 (“Dynagreen Convertible Bonds”). • Conversion window: 5 Sep 2022 to 24 Feb 2028. • Conversion price history: initially RMB 9.82 per share; adjusted eight times to RMB 8.89 per share on 26 Dec 2025 and further to RMB 8.67 per share on 8 Jul 2026 following successive equity distributions and an incentive scheme.
Q3 2026 Conversion Activity • Bonds converted during 1 Jul–30 Sep 2026: RMB 3,000 (345 shares). • Cumulative conversions since 5 Sep 2022: RMB 0.15 million (15,143 shares), equal to 0.0011% of pre-conversion share capital. • Outstanding principal as at 30 Sep 2026: RMB 2.36 billion, or 99.9938% of the original issue, indicating limited investor take-up of the conversion option to date.
Share Capital Movements • Repurchase and cancellation of 180,000 restricted A shares (due to the death of an incentive plan participant) reduced restricted A shares to 36.95 million. • Post-adjustment share structure (30 Sep 2026): – Restricted A shares: 36.95 million – Unrestricted A shares: 989.10 million – H shares: 404.36 million • Total share count fell by 0.18 million to 1.43 billion shares.
Key Implications The negligible conversion volume underscores continued investor preference for holding the bond over equity at the current conversion price, leaving virtually the entire RMB 2.36 billion issue outstanding. Concurrently, the company’s buyback of restricted shares has marginally reduced total share capital, signaling active management of equity incentives while maintaining a stable capital base.