Xiangcai Securities to acquire Shanghai DZH in all-stock merger

Xiangcai Securities Co., Ltd. is set to acquire Shanghai DZH Co., Ltd. through a share-for-share merger, issuing new A-shares to Shanghai DZH shareholders and undertaking a private placement of supporting funds. Shanghai DZH stated that the application for the share issuance and asset acquisition, along with the private placement, has been accepted by the Shanghai Stock Exchange as of October 23, 2025. This move aligns with Xiangcai Securities' goal of integrating financial technology to enhance its securities business, leveraging Shanghai DZH's resources and technical expertise.

The merger will result in Shanghai DZH being delisted and ceasing its legal existence, with Xiangcai Securities assuming all its assets, liabilities, and operations. The share exchange ratio is set at 1.27 Xiangcai Securities shares for every 1 Shanghai DZH share, based on the average trading prices over the 120 trading days prior to the pricing benchmark date.

The private placement of supporting funds will raise up to RMB 80.00 bn, to be used for financial technology projects and to supplement working capital. The success of the private placement is not a precondition for the merger. This strategic transaction is expected to enhance the combined entity's operational efficiency, expand its market presence, and strengthen its financial service capabilities.