Guotai Haitong Securities Co., Ltd. (Stock Code: 02611) has approved the renewal of its framework agreement with Shanghai International Group Co., Ltd. (“International Group”) for the period from 1 January 2026 to 31 December 2028. The original agreement is set to expire on 31 December 2025, and this renewal aims to maintain business continuity and support ongoing corporate expansion.

According to the renewed agreement, mutual securities and financial transactions, as well as related services, will be provided on normal commercial terms. International Group and its associates hold an aggregate 20.40% stake in Guotai Haitong Securities, making them connected persons under Chapter 14A of the Listing Rules. The applicable percentage ratio for these transactions exceeds 0.1% but is below 5%, subjecting the transactions to reporting, announcement, and annual review requirements but exempting them from independent shareholders’ approval.

Key provisions of the agreement include securities and financial product transactions such as fixed-income and equity products, financing, derivatives, and other investments. Both parties will continue to offer services including underwriting, sponsorship, brokerage, custodial, and advisory. Pricing will adhere to prevailing market rates, market references, and relevant laws, while internal control measures govern transaction terms and pricing consistency.

Historical data show inflows and outflows for the Securities and Financial Product Transactions, with expected increases due to business expansion following a merger completed in March 2025. Looking ahead, the annual caps have been set for 2026 to 2028, reflecting the anticipated rise in transaction volume and the expanded scope of business between the parties.

The board of directors considers the renewed framework agreement to be in the ordinary course of business, on normal commercial terms, and beneficial to the interests of Guotai Haitong Securities and its shareholders. Several directors abstained from voting due to affiliations with International Group and its associates. This renewal aligns with the Listing Rules and underlines the company’s ongoing growth strategy and deepening business cooperation with International Group.