The board of Blue Sky Gas has decided to exercise the right to downwardly adjust the conversion price of the Blue Sky Convertible Bond and will propose the downward revision to the shareholders' meeting. However, director Fan Xiaohua cast a dissenting vote, citing that the downward revision would dilute existing shareholders' earnings per share. The company's stock price had been below 85% of the current conversion price of 7.98 yuan for fifteen trading days between June 18 and July 9, triggering the downward revision clause. As of the close on July 9, the stock price was 6.36 yuan, down 17.62% year to date. From October 2025 to June 2026, no conversions occurred for three consecutive quarters. As of the end of June 2026, 672 million yuan of the Blue Sky Convertible Bond remained unconverted, accounting for 77.19% of the total issuance.
Henan Lantian Gas Co LtdDownward revision of conversion price dilutes existing shareholders' EPS, and director opposition signals governance concern.