TONGDA GROUP (00698.HK): Unit Subscribes Four China Galaxy Securities Wealth Products Totalling RMB 50mn

NewTimeSpace News: On 23 October 2026, Tongda Group Holdings Limited (the "Company") announced that on 20 January 2026, 26 May 2026, 14 September 2026 and 23 October 2026, Tongda Smart Tech, an indirect non-wholly-owned subsidiary of the Company, used its idle funds to subscribe for certain wealth management products, comprising the first, second, third and fourth China Galaxy Securities wealth management products, in amounts of RMB 10 million, RMB 10 million, RMB 10 million and RMB 20 million respectively, totalling RMB 50 million.

The announcement disclosed that the first China Galaxy Securities subscription commenced on 21 January 2026 and is an index-linked floating income deposit linked to the Galaxy Commodity CTA Composite Index (Wind code: GCTA.WI), with a subscription amount of RMB 10 million, a term of 1,094 days and an expected annualised yield of 0.00% to 3.00%. The second commenced on 27 May 2026 and is an index-linked floating income deposit linked to the Galaxy China Multi-Strategy Index 2.0 (GMSI2.WI), with a subscription amount of RMB 10 million, a term of 1,093 days and an expected annualised yield of 0.00% to 3.00%. The third commenced on 15 September 2026 and is an index-linked floating income deposit linked to Shanghai Gold, with a subscription amount of RMB 10 million, a term of 358 days and an expected annualised yield of 0.10% to 3.25%. The fourth commenced on 26 October 2026, with Tongda Smart Tech (Xiamen) as subscriber, and is an index-linked floating income deposit linked to the Galaxy China Multi-Strategy Index 2.0(A) (GMSI2A.WI), with a subscription amount of RMB 20 million, a term of 365 days and an expected annualised yield of 0.00% to 2.65%.

The Company stated that the consideration for each subscription was determined by the Group and the counterparty through arm's length negotiation, by reference to the prevailing market prices of the relevant wealth management products and the minimum subscription amounts set by the issuers, on normal commercial terms; the subscriptions were funded by Tongda Smart Tech's surplus cash and will not affect its or the Group's working capital or operations. China Galaxy Securities is a leading comprehensive financial services provider in China's securities industry established under PRC law, whose issued shares are listed on the Main Board of the Stock Exchange (stock code: 06881) and the Shanghai Stock Exchange (stock code: 601881); to the best of the directors' knowledge, information and belief after making all reasonable enquiries, China Galaxy Securities and its ultimate beneficial owners are independent third parties. Under Rule 14.22 of the Listing Rules, as one of the applicable percentage ratios for the China Galaxy Securities subscriptions exceeds 5% while all the ratios are below 25%, the subscriptions constitute a discloseable transaction of the Company on an aggregated basis and are subject to the notification and announcement requirements under the Listing Rules. The board considers that the subscriptions help improve capital efficiency and maximise returns on the Group's working capital, taking into account the relatively low risks, returns better than prevailing fixed deposit rates generally offered by commercial banks in China, and no material impact on the Group's operations and working capital.