China Galaxy Securities revises up annual transaction caps with controlling shareholder

China Galaxy Securities announced a revision of its annual caps for continuing connected transactions with controlling shareholder Galaxy Financial Holdings, effective from January 1, 2025, to December 31, 2027. This adjustment, outlined in a supplemental agreement, reflects increased business activity between the parties.

The revised annual caps for service charges and commissions receivable by China Galaxy Securities from Galaxy Financial Holdings for securities and financial services are RMB231 million for 2025, RMB944 million for 2026, and RMB961 million for 2027. These figures represent a substantial increase from the original caps of RMB169 million, RMB202 million, and RMB219 million, respectively. Additionally, the annual caps for interest payable by China Galaxy Securities to Galaxy Financial Holdings for entrusted funds have been revised to RMB10 million annually for the three years, up from original caps of RMB3.99 million, RMB4.39 million, and RMB4.83 million.

The revision is primarily driven by changes in the management of a Large Collective Product, which will now be handled by a fund company within Galaxy Financial Holdings Group, requiring China Galaxy Securities to continue providing sales agency and integrated financial services. The increased capital market activity and ample funds of Galaxy Financial Holdings also indicate a potential rise in entrusted funds. These transactions are exempt from independent shareholders' approval but are subject to reporting, announcement, and annual review under Chapter 14A of the Listing Rules.