CMSC to Vote on RMB3.90 Billion Cash Dividend, New Capital Mandates at 26 June AGM

Bulletin Express06-04

China Merchants Securities Co., Ltd. (CMSC) has convened its 2025 Annual General Meeting for 26 June 2026 in Shenzhen. Key resolutions up for shareholder approval include the following:

Dividend and Profit Distribution • 2025 final dividend proposed at RMB4.49 (tax-inclusive) per 10 shares, totalling RMB3.90 billion based on the year-end share count of 8.70 billion. • Cash dividends will be paid in RMB to A-share holders and in Hong Kong dollars to H-share holders using the five-day average PBoC exchange rate prior to the meeting. • The board is seeking authority to declare 2026 interim dividends of no less than the 2025 interim level and capped at 40 % of interim net profit.

Capital Allocation and Investment • Proprietary-trading budget for 2026 set at up to 100 % of real-time net capital for equity instruments and 500 % for non-equity instruments; long-term equity investments are excluded from this ceiling. • A general mandate authorising the board to issue additional A or H shares—up to 20 % of current issued capital—is on the agenda. • The board also seeks a fresh mandate to issue domestic or overseas debt instruments with an outstanding cap of 3.5 times year-end net assets.

Auditor Engagement • KPMG Huazhen LLP and KPMG are proposed as external auditors for 2026; audit fees are expected to range between RMB3.60 million and RMB4.25 million, subject to final board approval.

Related-Party Transactions and Guarantees • Ordinary related-party transactions for 2026—covering China Merchants Bank, China COSCO Shipping, PICC Life, directors and senior executives, and other affiliates—will be put to a vote. • CMS International and its wholly-owned subsidiaries seek aggregate guarantee limits of HKD71 billion, of which HKD4.10 billion is earmarked for financing guarantees.

Governance and Remuneration • Shareholders will vote on new Remuneration Management Rules, amendments to the Articles of Association and meeting procedures, and the election of two non-executive directors—Mr. Tao Wu and Mr. Gao Hong. • The company proposes to designate the chief legal advisor as a senior officer and to clarify board-committee structures.

Key Dates for H-Share Investors • Register closes: 23–26 June 2026 (both days inclusive). • Last day to lodge transfers: 22 June 2026 at 4:30 p.m. (Hong Kong time). • Proxy forms must be submitted no later than 10:00 a.m. on 25 June 2026.

All resolutions require ordinary or special-majority approval, with cumulative voting for director elections and poll voting for all items.

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