CITIC Securities subsidiary faces securities misrepresentation litigation over 2017 placement

CITIC Securities South China Company Limited, formerly Guangzhou Securities, is involved in litigation concerning the 2017 private placement of shares by Tunghsu Optoelectronics Technology Co. South China Company acted as the lead underwriter for the placement and is one of 37 defendants, including Tunghsu Optoelectronic and related parties.

On December 3, 2025, South China Company received a civil ruling from the Hebei Provincial High People's Court, confirming the case will proceed under ordinary representative proceedings. The ruling defined eligible investors as those who purchased Tunghsu Optoelectronics shares between February 15, 2016, and July 5, 2024, and held them after market close on July 5, 2024. The 11 plaintiffs currently claim a total of RMB1,828,167.34.

CITIC Securities stated that this litigation arises from projects undertaken by Guangzhou Securities prior to its acquisition by the company. All potential losses were fully considered before the acquisition's completion, and the company does not anticipate a material impact on its current or future profits. CITIC Securities will monitor the litigation and fulfill its disclosure obligations.