Nantong Jiangshan Agrochemical & Chemicals Co Ltd announced the comprehensive publication of the listing statement for its convertible corporate bond issuance aimed at general investors, completing a strategic multi-year financing initiative. The financing effort, spanning two years and seven months, successfully progressed through six board deliberations, three general shareholder meetings, approval from the Shanghai Stock Exchange Listing Review Committee at its 22nd meeting on May 21, 2026, and final registration approval from the China Securities Regulatory Commission under CSRC Permit [2026] No. 1417 issued on June 12, 2026. Following the completion of subscription procedures on July 14, 2026, the instruments—officially named "Jiangnong Convertible Bonds" under bond code 110102—will commence public trading on the Shanghai Stock Exchange starting August 5, 2026.
The total issuance volume reaches RMB 1.185 billion, represented by 11.85 million individual bonds with a face value of RMB 100 each. Formulated with a six-year tenor expiring on July 13, 2032, the bonds carry a progressive step-up coupon structure starting at 0.20 percent in the first year, followed by 0.40 percent in year two, 0.60 percent in year three, 1.50 percent in year four, 1.80 percent in year five, and reaching 2.00 percent in the final year, concluding with a guaranteed maturity redemption at 108 percent of nominal value. The conversion period initiates on January 20, 2027, with an initial conversion price set at RMB 20.64 per share, underpinned by investor protection clauses including an 85 percent downward price revision trigger, a 130 percent conditional forced redemption threshold, and a 70 percent put option during the terminal period. Both the issuer and the bond issue have received an AA+ credit rating with a stable outlook from Dongfang Jincheng.
Investor demand across all channels resulted in an almost complete clearance of the subscription pool. Existing shareholders exercised preferential allocation rights to absorb RMB 848 million, or 71.60 percent of the total issue, led by the company's largest shareholder, Nantong Industrial Holdings Group, which subscribed to its full proportional entitlement of RMB 343 million. Institutional and public online investors accounted for RMB 331 million (27.95 percent), leaving a negligible underwriter balance of RMB 5.426 million (0.46 percent). Principal institutional bondholders joining the top-tier register alongside Nantong Industrial Holdings include the Social Security Fund 110 Portfolio, ZhongOu Times Pioneer, and Xingquan Global Vision.
Net proceeds from the offering totaling RMB 1,173,701,200 will be deployed across three core capital allocation channels to expand technical capabilities, drive eco-friendly chemical innovation, and solidify financial stability. RMB 548,701,200 is committed to a new green herbicide active ingredient and formulation build focused on Isoxafenacil, a proprietary uracil-structured PPO-inhibitor herbicide backed by independent intellectual property. Commercialized at the Zhijiang production base with initial manufacturing costs reduced by over 10 percent, this facility expansion will reinforce market barriers in high-efficiency weed control. A second allocation of RMB 340,000,000 funds a technical renovation project designed to produce 10,000 annual tons of S-metolachlor—a mainstream pre-emergence selective herbicide for corn, soybean, and peanut crops—alongside byproduct recycling systems. The remaining RMB 285,000,000 will directly supplement working capital to strengthen liquidity and operational resilience.
Together, the two primary production developments represent approximately 75.7 percent of net capital usage, executed through a coordinated multi-base geographic framework. This expansion strategy links the Guizhou manufacturing base—which utilizes local mineral reserves to build a circular phosphate chemical chain—with the Hubei base, dedicated to high-end green pesticides and active intermediate manufacturing, creating operational synergies with the primary central headquarters in Nantong. This multi-site integration provides crucial structural depth and market leadership while small and medium-sized competitors face accelerated clearing amid ongoing industry consolidation.
