Analysis of the Impact of Dr. Eyewear (300622) Convertible Bond Issuance on Shareholder Equity

Based on confirmed basic information, I analyze the impact of Dr. Eyewear’s convertible bond issuance on existing shareholder equity for you:

Dr. Eyewear (300622)'s application for the issuance of convertible corporate bonds to unspecified targets was reviewed and approved by the Listing Review Committee of the Shenzhen Stock Exchange on December 18, 2025 [1], but still needs to go through the registration process with the China Securities Regulatory Commission (CSRC).

• Financing Convenience: As a hybrid financing tool, convertible bonds have lower financing costs compared to pure equity financing and are more flexible than debt financing.
• Avoid Immediate Dilution: Before conversion, it will not immediately dilute the equity ratio of existing shareholders, avoiding the immediate equity dilution effect of equity financing methods such as private placements.

• Interest Expenses: Convertible bonds require payment of coupon interest, increasing the company’s financial expenses and possibly affecting short-term profitability.
• Stock Price Suppression: The potential conversion expectation of convertible bonds may exert a certain suppression effect on the stock price.

According to confirmed information, the issuance scale of Dr. Eyewear’s convertible bonds is 375 million yuan [2]. According to industry practice, the conversion price is usually not lower than the higher of the average trading price of the company’s stock over the 20 trading days before the announcement date of the prospectus and the average trading price of the previous trading day.

Assuming Dr. Eyewear’s current stock price is 20 yuan and the conversion price is set at 22 yuan (10% premium), then:

• Convertible Shares Quantity: 375 million yuan ÷ 22 yuan/share ≈ 17.05 million shares
• If the company’s total share capital is 120 million shares, the dilution ratio is approximately 14.2%

According to market practice, the conversion price of convertible bonds is usually not lower than the following on the announcement date of the prospectus:

• The average trading price of the company’s stock over the previous 20 trading days
• The average trading price of the company’s stock on the previous trading day
• The higher of the two

• Protect Existing Shareholders
  : A moderate conversion premium (usually 10%-30%) can reduce the conversion dilution effect.
• Attract Investors
  : Excessively high premiums may reduce the investment attractiveness of convertible bonds.
• Market Balance
  : A balance needs to be struck between shareholder protection and investor attractiveness.

According to industry analysis, the raised funds may be invested in the following areas:

• Store expansion and brand upgrading
• Digital transformation and smart retail
• Supply chain optimization and product R&D

• New funds are expected to drive business expansion
• Enhance the company’s competitiveness and market share
• May support stock price performance in the long run

• The increase in tradable shares after conversion completion may exert pressure on the stock price
• Corresponding performance growth is needed to offset the dilution effect

• The issuance of convertible bonds may be interpreted by the market as a signal of capital demand
• May affect investor sentiment in the short term

• Pay attention to the efficiency of raised funds utilization
• Focus on whether the company’s performance growth can exceed the speed of equity expansion
• Regularly evaluate the conversion progress and dilution impact

• Diversify investments to avoid over-concentration
• Pay attention to the gap between the conversion price and the market price
• Monitor changes in the company’s fundamentals

• Progress and effect of raised funds utilization
• Company’s performance growth
• Conversion progress and conversion ratio
• Industry development trends and competitive landscape

Dr. Eyewear’s convertible bond issuance is an important capital operation with dual impacts on existing shareholder equity:

, the financing cost is relatively low and immediate equity dilution is avoided, but attention needs to be paid to the impact of interest expenses on profitability.

, after successful conversion, there will be a certain equity dilution effect, but if the raised funds are used effectively to drive rapid business growth, it is expected to offset the dilution impact through performance growth and achieve long-term shareholder value growth.

It is recommended that investors closely follow the company’s subsequent utilization of raised funds and operating performance, and comprehensively evaluate the impact of the convertible bond issuance on the company’s long-term value.

— References:
[1] Dr. Eyewear (300622.SZ) Convertible Bond Issuance Application Approved by Shenzhen Stock Exchange Review Committee (NetEase, December 18, 2025)
[2] Jinling API Data and Market Analysis Data
[3] Relevant Materials on Convertible Bond Conversion Price Determination and Dilution Effect Analysis