China Industrial Securities International Financial Group Limited Acquires CNY114 Million in Bonds – Key Details for Investors

Summary of Announcement

China Industrial Securities International Financial Group Limited (“CISI”, Stock Code: 6058) has announced that its indirect wholly-owned subsidiary, CISI Investment Limited, has completed acquisitions of bonds with an aggregate principal amount of CNY114,000,000 (approximately HK\$129,435,600) for a total consideration of approximately CNY114,525,047 (approximately HK\$130,031,738) on the open market. These acquisitions occurred between 20 November 2025 and 16 March 2026.

Key Points for Investors

• Type of Transaction: The acquisitions constitute a discloseable transaction under Chapter 14 of the Hong Kong Listing Rules. While each acquisition alone did not exceed 5% of the relevant ratios, when aggregated with previous acquisitions, one of the ratios exceeded 5% but was less than 25%. This triggers a disclosure requirement but does not require shareholder approval.
• Bonds Details:
  • Issuer: CNTD Success Company Limited (a BVI-incorporated entity)
  • Keepwell Provider: Wuxi Communications Industry Group Co., Ltd., a state-owned entity in China
  • Aggregate Principal Amount of Bond Issuance: CNY1,500,000,000
  • Interest Rate: Fixed at 2.95% per annum
  • Maturity Date: 27 November 2028
  • Issue Price: 100% of principal
• Support Structure: The bonds benefit from both a keepwell and liquidity support deed, and a deed of equity interest purchase undertaking provided by the Keepwell Provider, enhancing credit support for the bonds.
• Funding: The acquisitions were funded from CISI’s internal resources, indicating a healthy cash position and no additional debt or equity issued for this purpose.
• Seller Information: The securities were acquired on the open market, and CISI is not aware of the identities of the sellers, but has confirmed that they are independent third parties.

Potentially Price-Sensitive Information for Shareholders

• Portfolio Diversification and Yield: The board highlighted that these investments are aimed at generating stable returns within an acceptable risk profile, and are part of the Group’s broader strategy to diversify its portfolio across various asset classes. This could potentially enhance the Group’s revenue streams and support sustainable business growth, which is positive for shareholders.
• Issuer and Keepwell Provider Profile:
  • The Issuer is a wholly-owned subsidiary of China New Town Development Company Limited (CNTD, Stock Code: 1278), which is indirectly controlled by Wuxi Communications Industry Group, a state-owned enterprise serving as an investment platform for transportation infrastructure in Wuxi, Jiangsu, PRC.
  • The Keepwell Provider is 100% owned by the Wuxi Municipal People’s Government State-owned Assets Supervision and Administration Commission, signifying strong government backing.
• Transaction Size: The aggregate consideration for all acquisitions (including previous ones) totals approximately CNY194 million (about HK\$219.8 million), representing an increased exposure to this single issuer and sector.
• No Shareholder Approval Required: As the transaction does not require shareholder approval but is discloseable, it reflects a level of significant investment activity that may impact the company’s financials and risk profile, but management believes it is in the best interests of the company and its shareholders.

Detailed Transaction Breakdown

• On 20 November 2025: CISI Investment acquired CNY70,000,000 in bonds for approximately CNY70,000,000 (HK\$79,478,000).
• On 27 January 2026: Acquired CNY9,000,000 in bonds for approximately CNY9,078,053 (HK\$10,307,222).
• On 16 March 2026: Acquired CNY35,000,000 in bonds for approximately CNY35,446,993 (HK\$40,246,516).
• Total Previous Acquisitions: CNY79,078,053 (HK\$89,785,222).

Strategic Rationale

According to the board, these acquisitions are part of the Group’s ongoing investment strategy to broaden its revenue streams and generate stable returns through a diversified investment portfolio, including stocks, bonds, funds, structured products, and derivatives. These actions are intended to increase value for shareholders and manage risk exposure effectively.

Board Composition

• Non-executive Director & Chairman: Mr. Xiong Bo
• Executive Director: Mr. Lin Dan
• Independent Non-executive Directors: Ms. Ye Jianfang, Mr. Tian Li, Ms. Du Li

Important Notes

• The transaction is subject to reporting and announcement requirements under Chapter 14 of the Listing Rules, but is exempt from shareholders’ approval.
• All currency conversions are based on CNY1.00 = HK\$1.1354 for illustration purposes only.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research and consult with their advisors before making any investment decisions. The information herein is based on company disclosures and is believed to be accurate as of the date of the original announcement. No liability is accepted for any loss resulting from reliance on the contents of this article.

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