China Galaxy Securities adjusts connected transaction caps amid market shifts

China Galaxy Securities Co. has revised its annual caps for service charges and commissions receivable from Galaxy Financial Holdings Group for the three years ending December 31, 2027. The updated caps are RMB231 million, RMB944 million, and RMB961 million, respectively. This revision primarily stems from an anticipated increase in sales agency fee income, as the Group continues to provide sales agency services for the Large Collective Product following a change in its manager to a fund company within Galaxy Financial Holdings Group. The estimated annual income from these services could reach RMB700 million annually after the manager change.

Additionally, the company adjusted the annual cap for interest payable to Galaxy Financial Holdings Group to RMB10 million for each of the three years ending December 31, 2027. This change reflects the significant volatility in the PRC capital market during 2025, which saw the Shanghai Composite Index fluctuate considerably and an increase in transaction volumes. The revised cap considers historical peak interest amounts paid during periods of high market activity, ensuring preparedness for potential fluctuations.

The board of China Galaxy Securities Co. believes these revised annual caps for both service charges and interest payments are fair, reasonable, and in the best interests of the company and its shareholders. The company commits to ongoing monitoring of transaction amounts to ensure adherence to these new caps.