Western Securities’ new borrowings exceed 40% of net assets, triggers management report

As of October 31, 2025, Western Securities’ total borrowings reached 487.49 bn yuan, a cumulative increase of 117.51 bn yuan from the end of 2024. This increase constitutes 40.50% of the company’s net assets at the end of the previous year, exceeding the 40% threshold that triggered an ad hoc entrusted management report from Orient Securities Company Limited. The new borrowings comprise 1.05 bn yuan in bank loans, 11.60 bn yuan from corporate bonds, company bonds, financial bonds, and non-financial enterprise debt financing instruments, and 104.86 bn yuan from other borrowings, primarily due to an increase in interbank borrowings, sell-back repurchase of financial assets, and income certificates.

Western Securities successfully issued multiple tranches of bonds in 2024 and 2025, with a total of nine bond issues. The bond issuances, including "24 Western 01" to "24 Western 05," "25 Western 01" to "25 Western 03," and "25 Western K1," collectively contributed to the rise in company bond balances. For instance, "24 Western 05" saw a successful issuance of 700 million yuan with a 3-year term and a coupon rate of 2.19%, with interest payments scheduled for November 14, 2025.

Guoyuan Securities, as the bond trustee, issued its sixth ad hoc entrusted management report for Western Securities’ company bonds in 2025, emphasizing that the new borrowings align with regulations and do not adversely affect the company's operations or solvency. Investors are advised to note that the financial data, with the exception of year-end 2024 figures, remains unaudited.