Blue Sky Gas shareholders approved a proposal to lower the conversion price of the Blue Sky convertible bond, reducing it from 7.98 yuan to 6.72 yuan, a cut of about 15.8 percent. As of June 30, 2026, 672 million yuan of the Blue Sky convertible bond remains unconverted. If fully converted, the company's share capital would increase by 13.98 percent, and earnings per share would fall by 12.27 percent. At the board meeting, director Fan Xiaohua voted against the move, citing dilution of existing shareholders' earnings per share from the conversion. At the shareholder vote, over 91 percent of minority shareholders holding less than 5 percent of shares opposed the resolution. However, because their combined holdings are far smaller than those of the major shareholder, the proposal still passed with more than 90 percent approval. Blue Sky Gas's major shareholder is Blue Sky Group. The actual controller, Li Xinhua, and parties acting in concert hold a combined 51.38 percent stake. The company paid cumulative dividends of 2.47 billion yuan from 2020 to 2025, of which over 1.3 billion yuan went to the major shareholder. The major shareholder also achieved short-term arbitrage through convertible bond subscriptions, pledges, and reductions, with returns potentially exceeding 30 percent within a few months. Blue Sky Gas's share price is currently below its IPO price, leaving most public shareholders with paper losses. If the convertible bond conversion is factored in, the share price will face further pressure.
Henan Lantian Gas Co LtdLowering conversion price dilutes existing shareholders' earnings per share by 12.27% and increases share capital by 13.98%, pressuring share price.