CICC(03908): CICC Wealth's registered capital will be reduced from 8 billion yuan to 7.173 billion yuan.

CICC (03908) announced that in order to implement the central government's work deployment and related regulatory requirements to promote the reduction and improvement of financial institutions, and to promote the intensive operation and high-quality development of futures business, the board of directors of CICC, the sole shareholder of Zhongjin Wealth, approved the proposal to promote the integration of futures subsidiaries within the group. Specifically, Zhongjin Wealth will transfer 100% equity of Zhongjin Wealth Futures Co., Ltd. (hereinafter referred to as "Zhongjin Wealth Futures") held by itself to CICC based on the net assets as of September 30, 2025, and then Zhongjin Wealth Futures will absorb and merge with Zhongjin Futures Co., Ltd. (hereinafter referred to as "Zhongjin Futures"). The above-mentioned integration of futures business was approved by the China Securities Regulatory Commission on April 8, 2026, and the industrial change registration of the transfer of Zhongjin Wealth Futures shareholders has recently been completed. Based on the above arrangements for equity transfer, Zhongjin Wealth will offset the long-term equity investment in Zhongjin Wealth Futures from the book value of capital, related to the equity transfer matters. Zhongjin Wealth will offset the book value of the long-term equity investment in Zhongjin Wealth Futures by 827 million and decrease the registered capital of Zhongjin Wealth from 8 billion to 7.173 billion, with corresponding amendments to the relevant provisions of the company's articles of association. CICC, the sole shareholder of Zhongjin Wealth, approved the proposal to promote the integration of futures subsidiaries within the group at the 12th meeting of the third board of directors on December 17, 2025. According to the relevant provisions of the Articles of Association of China Zhongjin Wealth Securities Co., Ltd., the capital reduction issue was approved at the 28th meeting of the fifth board of directors of Zhongjin Wealth on May 21, 2026, and was also approved at the third shareholders' meeting of Zhongjin Wealth in 2026 on May 25, 2026. This capital reduction is a result of the accounting treatment of the equity transfer of Zhongjin Wealth Futures, and does not change CICC's shareholding proportion in Zhongjin Wealth. This capital reduction will not have a significant adverse impact on CICC's ability to repay debts.