China Galaxy Securities revises transaction limits with controlling shareholder

China Galaxy Securities Co. has announced a revision to its ongoing connected transaction limits with China Galaxy Financial Holdings Co. for 2025-2027. This change is due to the planned transfer of two "public collective asset management products," including the "Galaxy Water Star Cash Management Collective Asset Management Plan." These products, managed by the company's subsidiary Galaxy Gold-Link Securities Asset Management Co., will be transferred to Galaxy Fund Management Co., a subsidiary of Galaxy Financial Holdings. This transfer is expected to exceed the original service income ceiling in the existing framework agreement.

The revised framework and supplemental agreements, approved by the company's board of directors, set the income upper limits for connected transactions between the Galaxy Securities Group and the Galaxy Financial Holdings Group at RMB 231 million, RMB 944 million, and RMB 961 million for 2025, 2026, and 2027, respectively. Interest expenditure across these periods is set at RMB 0.1 billion. The revised agreement aligns with market customary terms and general business conditions, ensuring no harm to the company or its minority shareholders.

Galaxy Financial Holdings, holding 47.43% of the company's shares, is its controlling shareholder and a connected party. As of December 31, 2024, Galaxy Financial Holdings reported total assets of RMB 772.105 billion and owner's equity of RMB 168.547 billion.