A large meat bond ~ Bairun Convertible Bond subscription on September 29

Bairun Convertible Bond: (Underlying stock code: 002568; rights issue code: 082568) Rating: AA — higher ratings for convertible bonds are preferable. Issue size: RMB 1.128 billion — a moderate scale; larger issuance sizes generally imply better liquidity. Put provision: Yes. Downward adjustment of conversion price: Triggered if the stock price closes below 85% of the conversion price for 15 out of any 30 consecutive trading days — a relatively stringent condition. Conversion value: Today’s closing price of Bairun Co., Ltd. is RMB 70.70; conversion price is RMB 66.89. Conversion value = face value / conversion price × underlying stock price = 100 / 66.89 × 70.7 ≈ 105.7. This conversion value is acceptable — higher conversion values are preferable for convertible bonds. Maturity value (capital preservation threshold): Maturity value = sum of coupon payments + redemption price = 0.3 + 0.5 + 1 + 1.5 + 1.8 + 110 = RMB 115.1 — coupon rates are average. Pure bond value (floor value): Assuming an AA-rated, 6-year corporate bond yield of 4.5255% (based on ChinaBond enterprise bond yield curve), the simplified calculation yields a pure bond value of approximately RMB 88.26 — indicating a relatively strong floor value. Company profile: Bairun Co., Ltd. operates in the food and beverage industry. Its brand “RIO (RIO)” is a nationally renowned trademark with high brand recognition. It ranks first in market share within the premixed cocktail niche segment, enjoying clear scale advantages and first-mover competitive advantages. The company has specialized in flavor & fragrance for over 20 years, accumulating extensive product portfolios and technical expertise. Since 2018, both revenue and total profit have grown steadily, with compound annual growth rates of 25.16% and 97.39%, respectively — demonstrating strong profitability. Founded in 1997, the company went public in March 2011. Its current market capitalization stands at RMB 53.01 billion; interest-bearing debt ratio is 0.00%; P/E ratio is 76.598; P/B ratio is 15.977. 2021 Semi-Annual Report highlights: Revenue increased by 53.72% year-on-year; net profit attributable to shareholders increased by 73.94% year-on-year.

(II) Face Elements of Bonds A bond’s face typically specifies the following elements: face value (the basis for interest calculation and principal repayment; RMB 100 in China), coupon rate (annual interest as a percentage of face value), maturity date (the date on which principal is repaid), interest payment method (e.g., single payment at maturity or annual payments), issuer name (directly determining credit risk level), and bond name (e.g., “26 Coupon-Bearing Government Bond No. 10”). (III) Characteristics of Bonds Bonds possess four fundamental characteristics: • Repayability (a fixed maturity date exists, and principal must be repaid upon maturity); • Liquidity (bonds can be traded on secondary markets or pledged for financing); • Safety (relative to stocks, bond returns are fixed and senior in liquidation order); • Yield (returns derive from both contractual interest and capital gains/losses from trading). Note that “safety” is relative—credit bonds may still default, and interest-rate bonds may suffer price declines due to rising interest rates. Differences between Bonds and Stocks — Six-Dimensional Comparison: Dimension Bond Stock Nature of right Credit instrument Ownership instrument Relationship with issuer Creditor-debtor relationship Shareholder–company relationship Principal Repayable at maturity Not repayable; transferable only Return Fixed contractual interest Dividends + capital gains; uncertain Liquidation priority Senior to equity Subordinate to bonds Participation in management No voting rights Entitled to participate in major decisions (IV) Classification of Bonds Bonds can be classified along multiple dimensions. In practice, the most common classification is by issuing entity: government bonds, financial bonds, corporate bonds, and enterprise bonds. Additional classifications include: • By interest payment method: discount bonds (issued below face value, redeemed at face value—the difference constitutes interest), coupon bonds (periodic interest payments; dominant in China), and cumulative coupon bonds (interest accumulates and is paid in full at maturity); • By interest rate structure: fixed-rate vs. floating-rate bonds; • By maturity: short-term (≤1 year), medium-term (1–10 years), and long-term (>10 years); • By offering method: public offerings vs. private placements; • By security: secured bonds (backed by mortgage, pledge, or guarantee) vs. unsecured (credit) bonds; • By embedded options: callable, puttable, and convertible bonds. II. Government Bonds Government bonds are debt instruments issued by governments to raise funds, backed by sovereign credit—the highest credit rating among all bond types. In China, government bonds comprise two tiers: central government bonds (i.e., treasury bonds) and local government bonds. (I) Treasury Bonds Issued by the central government (represented by the Ministry of Finance), treasury bonds are backed by national credit and widely regarded as “gilt-edged securities”—theoretically carrying the lowest default risk among all bond categories. In China, treasury bonds are divided into two types based on circulation method: Type Target investors Tradable? Key features Book-entry treasury bonds Primarily institutions; individuals may purchase via securities accounts Yes, tradable on exchanges Recorded electronically; prices fluctuate with market conditions Savings treasury bonds (certificate-type) Individuals only Non-transferable, but redeemable before maturity Paper-based certificates; principal and interest repaid in full at maturity Savings treasury bonds (electronic-type) Individuals only Non-transferable, but redeemable before maturity Electronic registration; annual interest payments; purchasable via mobile banking

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This profile details the 2.3% 2030 bond issued by International Flavors & Fragrances Inc., outlining key terms such as maturity, face value, and interest payment schedules.

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