China Merchants Securities raises property leasing annual caps to RMB283.87m

China Merchants Securities Co., Ltd. (CMS) announced on November 24, 2025, a revision to the annual caps for its continuing connected transactions under the 2022 Property Leasing Framework Agreement. The revised annual cap for the year ending December 31, 2026, has been increased from RMB177.34 million to RMB283.87 million. This adjustment covers rental expenses, property management fees, and the value of right-of-use assets for properties leased by CMS from China Merchants Group and its associates.

The board of directors considered historical data, existing and proposed lease agreements, and the need to strengthen business synergies, reduce costs, enhance efficiency, and support business expansion when determining the revised cap. CMS plans to lease additional properties for office use, with an estimated increase in right-of-use asset value of up to RMB103.62 million and property management fees of up to RMB2.91 million by 2026. This move also supports relocating some operations to prime commercial areas in Hong Kong.

As China Merchants Group is the controlling shareholder, holding approximately 44.17% of CMS shares, these transactions constitute continuing connected transactions under the Listing Rules. The revised annual cap necessitates reporting, announcement, and annual review but is exempt from independent shareholders' approval.