Industrial Securities International extends guarantees to Hong Kong subsidiaries

Industrial Securities Co., Ltd. announced that its overseas holding company, Industrial Securities International Financial Group Limited, has provided guarantees to its wholly-owned subsidiaries, Industrial Securities International Securities Limited and Industrial Securities International Futures Limited. These guarantees support financing arrangements with Bank of China (Hong Kong) Limited. Industrial Securities International Securities received a guarantee of up to HK$9.1 bn, while Industrial Securities International Futures received a guarantee of up to HK$0.2 bn. Both guarantees are for an indefinite term and do not have counter-guarantees.

As of the announcement date, Industrial Securities International Securities Limited reported total assets of HK$74.44 bn and net assets of HK$36.21 bn for the period ending June 30, 2025 (unaudited). Industrial Securities International Futures Limited reported total assets of HK$4.96 bn and net assets of HK$0.64 bn for the same period. Industrial Securities, through Industrial Securities International, holds a 59.35% equity stake in both guaranteed entities as of October 31, 2025.

The total guarantee amount by Industrial Securities and its holding subsidiaries stands at RMB 234.34 bn, all directed towards its subsidiaries. Guarantees to holding subsidiaries specifically total RMB 55.52 bn, representing 40.53% and 9.60% of the company's latest audited net assets, respectively. The company noted that while Industrial Securities International Futures Limited has a debt-to-asset ratio exceeding 70%, the associated default and financial risks are deemed controllable, thus not harming the company or shareholder interests.