On June 28th, Gelunhui announced that Zhongliang Holdings (02772.HK) issued 3.0% convertible bonds due in 2027 ("Convertible Bonds"). The company hereby announces that, according to the convertible bond deed, on the interest payment date of July 1st, 2024: (i) cash interest on the convertible bonds is not required to be paid on the interest payment date; (ii) the total amount of physical payment interest ("PIK Interest") accumulated on the convertible bonds on the interest payment date is USD 1,882,157; and (iii) the unpaid principal amount of the convertible bonds due to the accumulated PIK interest increases from USD 125,477,133 to USD 127,359,290 as of the interest payment date.

According to the convertible bond deed, the conversion price of the convertible bonds will be adjusted on the reset date of July 1st, 2024 ("Reset Date") to (i) the average market price and (ii) HKD 0.8 (whichever is higher). If the volume-weighted average price is lower than HKD 0.8 in the 30 consecutive trading days ending on the day before the reset date, the conversion price of the convertible bonds will be reset to HKD 0.8 per share from the reset date. Except for the above adjustments, all other terms and conditions of the convertible bonds remain unchanged.