First Capital subsidiary under CSRC investigation for alleged negligence

Northeast Securities, entrusted manager for various bonds of First Capital Securities, has reported that First Capital Securities’ wholly-owned subsidiary, First Capital Securities Underwriting and Sponsoring Co., Ltd. (First Capital Investment Banking), received a case filing notice from the China Securities Regulatory Commission (CSRC) on October 31, 2025. The investigation, initiated on October 29, 2025, stems from alleged negligence in ongoing supervision during the 2019 convertible bond project of Hongda Xingye Co., Ltd.

Bonds impacted by this development include those issued by First Capital Securities from 2021 to 2025, specifically the "21 First Capital 02" to "25 First Capital K2" series. Northeast Securities emphasizes that First Capital Investment Banking will cooperate with the CSRC investigation, and the issuer will fulfill its information disclosure obligations.

Despite the ongoing investigation, First Capital Securities reports its operations remain normal and financial condition stable. The company asserts the case filing notice has no significant adverse impact on its daily management, production, operations, or solvency, nor does it affect the validity of its shareholder meetings or board resolutions. Northeast Securities will continue to monitor the investigation's progress to safeguard bond investor interests.