China ITS (Holdings) Co., Ltd. (“China ITS”) announced that from January 1, 2025, to September 5, 2025, its non-wholly owned subsidiary Forever Opensource Software Inc. (“FOSS”) subscribed to wealth management products offered by China Guangfa Bank, Industrial Bank, China CITIC Bank, China Merchants Bank, and China Minsheng Bank. Among these subscriptions, 16 constituted discloseable transactions, while the subscription made on May 23, 2025, through China CITIC Bank was recognized as a major transaction under the Listing Rules.

According to the announcement, an Extraordinary General Meeting will be convened for shareholders to consider and, if approved, ratify the May 23 CITIC wealth management product subscription. The company indicated that principal protection and the relatively low-risk profile of most of these products were key considerations, seeking better returns on idle funds after consolidation of FOSS into the group in January 2025.

The announcement also explained that certain non-compliances stemmed from initial unfamiliarity with the Hong Kong Listing Rules following FOSS’s consolidation. Measures to prevent similar incidents include temporarily suspending new wealth management product subscriptions starting September 8, 2025, conducting targeted compliance training, and introducing enhanced internal procedures to ensure thorough oversight of future transactions and timely disclosure.