Tianfeng Securities extends subordinated debt with Hubei Hongtai, cuts interest rate

Tianfeng Securities Co., Ltd. announced a supplementary agreement to its subordinated debt contract with controlling shareholder Hubei Hongtai Group Co., Ltd. The original RMB 4 bn debt, initially for five years with a 5% annual interest rate, will now be extended by one year, with the interest rate for the extended period adjusted to 4% per annum. The debt will continue to be repaid quarterly, with principal due at maturity.

This decision, approved by the company's board of directors on December 18, 2025, is a strategic move to maintain stable net capital, enhance business quality, and optimize the company's debt structure. The adjustment aligns with current market financing costs, including lower LPR and industry subordinated bond rates.

Hubei Hongtai Group directly holds 28.33% of Tianfeng Securities, making it the company's controlling shareholder. As of December 31, 2024, Hubei Hongtai Group reported consolidated total assets of RMB 231.244 bn and net assets of RMB 89.229 bn. This related party transaction, valued at RMB 4 bn, does not require shareholder approval as it falls below 5% of Tianfeng Securities' most recent audited net assets.