Live Record! Chairman of CITIC Securities Responds to M&A Movement, Proprietary Trading Details, and Investment Banking Strategy

```

On the morning of October 27, CITIC Securities held its third-quarter results briefing.

As of the end of September 2025, CITIC Securities had total assets of 2.03 trillion yuan; net assets attributable to the parent company reached 315 billion yuan.

In the first three quarters of 2025, the company achieved operating income of 55.815 billion yuan, a year-on-year increase of 32.70%; net profit attributable to the parent company reached 23.159 billion yuan, a year-on-year increase of 37.86%, with operating performance reaching a record high.

At this briefing, attended by Chairman Zhang Youjun, General Manager Zou Yingguang, and other executives, CITIC Securities’ management responded to many hot topics for Wallstreetcn, including M&A trends, wealth management transformation, and investment banking strategy focus.

The content of this briefing is compiled below for readers.

Response to M&A Trends

Chairman Zhang Youjun of CITIC Securities pointed out: In March 2024, the CSRC clearly proposed to “support leading institutions to become better and stronger through mergers and acquisitions, organizational innovation, etc.” By 2035, the aim is to “form 2 to 3 investment banks and investment institutions with international competitiveness and market leadership.”

We understand that mergers and acquisitions can effectively integrate market resources, rapidly expand company scale, achieve complementary business advantages, and enhance business capabilities and market competitiveness. This is an important way for securities companies to become better and stronger, as well as an effective approach to creating first-class investment banks and institutions. In the future, we will continue to maintain a strategic balance between endogenous development and external growth, consolidate our leading position domestically, grow and strengthen our international business, and accelerate the construction of first-class investment banks and institutions.

Investment Portfolio Configuration Details

Ms. Xi Zhiying, head of CITIC Securities’ accounting department, revealed that the company’s securities investment business adheres to a client-driven asset allocation philosophy and a prudent asset allocation style. Its holdings mainly consist of financing, fixed-income, and client demand-hedging stocks, with overall asset allocation showing good results.

Wealth Management Transformation

The Chinese wealth management market is booming, and the huge client base and constantly emerging business opportunities in wealth management are the biggest sources of our confidence and drive to firmly pursue wealth management transformation.

In the future, CITIC Securities will focus on the following aspects: First, building a full-scenario financial product system and developing core wealth allocation capabilities and models. As one of the first institutions in the industry to provide clients with wealth allocation services, CITIC Securities has built a multi-layered buy-side advisory allocation service system, providing wealth allocation services covering all asset classes and all client segments starting from as little as 10,000 yuan.

Second, delivering integrated financial service capabilities. CITIC Securities' wealth management is based on its institutional client service background, coordinates advantages in investment banking, asset management, trading, and other areas, and unites CITIC Group's premium full-license financial resources to connect the value chain of financial institutions and build CITIC’s distinctive integrated service capability.

Third, building a new type of wealth management team. CITIC Securities ranks first in the industry by number of registered investment advisors. While implementing an "advisor-for-all" talent strategy, CITIC Securities deepens the "1+1+N" service system to better provide clients with comprehensive solutions.

Fourth, strengthening digital service capabilities. CITIC Securities is committed to building a complete closed-loop between product and client ends through digitization, transforming from "doing business" to "serving clients," and even "serving users."

Fifth, establishing a global wealth service system. Based on the Hong Kong wealth management platform, CITIC Securities has set up wealth management platforms in Singapore and other locations to better provide global asset allocation and trading services for domestic and international clients, thus expanding the radius and scope of international services.

Cumulative Dividend of 88.7 Billion Yuan

Since listing on the A-share market in 2003, CITIC Securities has carried out cash dividends for 23 consecutive years, with cumulative dividends exceeding 88.7 billion yuan, and over the past three years, the company’s cash dividend payout ratio has consistently remained above 30%.

It is worth noting that in 2025, CITIC Securities will carry out interim dividends for the second consecutive year. Compared to the 2024 interim period, the company will increase the cash dividend payout from 2.40 to 2.90 yuan per 10 shares, and the total amount of interim cash dividends from 3.557 billion yuan to 4.298 billion yuan, an increase of over 20% year-on-year.

Dealing with "Headwinds" in Investment Banking

In recent years, CITIC Securities’ investment banking business has actively adapted to market changes, kept pace with policy guidance to adjust business directions and focus, continued to improve professional capabilities and service quality, and constantly strengthened its ability to serve the real economy and national strategy.

Specifically, first, we prioritize function, more actively respond to national strategy and support real economic development, and constantly strengthen key client services that support technological innovation and new quality productive forces; second, we increase efforts to explore incremental business, continue to strengthen innovation in various bond products, focus on identifying M&A needs of tech innovation companies, and provide clients with diversified and professional financial products; third, we continue to accelerate the pace of internationalization, especially utilizing the advantage of Chinese client coverage to vigorously expand overseas business.

Risk Reminder and DisclaimerThe market has risks, investment needs caution. This article does not constitute personal investment advice, nor does it consider the individual investment objectives, financial situation, or needs of specific users. Users should consider whether any opinions, views, or conclusions in this article fit their particular situation. Investment based on this is at your own risk. ```