GF SEC (01776.HK): RMB 370mn Advance Compensation Fund Set Up for Qingyue Technology Case

NewTimeSpace News: On 23 October 2026, GF Securities Co., Ltd. (the "Company") announced the formal establishment of the advance compensation special fund for the Qingyue Technology case. The announcement referred to the Company's overseas regulatory announcement dated 9 May 2026 regarding the resolutions of the 16th meeting of the 11th session of the board; as disclosed therein, the Company acted as the sponsor and lead underwriter for the initial public offering and listing of Suzhou Qingyue Optoelectronics Technology Co., Ltd. ("Qingyue Technology", whose shares are listed on the STAR Market of the Shanghai Stock Exchange), and the board resolved on 8 May 2026 that, if Qingyue Technology were found by the China Securities Regulatory Commission to have committed fraudulent issuance, false statements or other material violations and were subject to administrative penalties, the Company would proactively take advance compensation measures, including jointly contributing to an advance compensation special fund with relevant parties, and authorised management to handle the specific matters.

The announcement disclosed that the Company understands that Qingyue Technology announced on 15 October 2026 that it had received the Administrative Penalty Decision ([2026] No. 57) from the CSRC, and was subject to administrative penalties for fraudulent issuance and violations in information disclosure (the "Qingyue Technology Incident"). The board announced that, to protect investors' lawful rights and interests and maintain the stability of the securities market, the Company, together with Qingyue Technology's auditor Shu Lun Pan Certified Public Accountants (Special General Partnership) (the "Auditor") and Qingyue Technology's actual controller Mr. Gao Yudi, has formally established the advance compensation special fund for the Qingyue Technology Incident, to advance compensation to eligible investors for investment losses suffered as a result of the incident.

The Company stated that the fund's establishment contribution is RMB 370 million; if the compensation ultimately payable to eligible investors who complete valid claims exceeds that amount, the Company, the Auditor and Mr. Gao Yudi will contribute the difference in a timely manner. Once the compensation funds are received, the Company and the Auditor will acquire, in accordance with law, the eligible investors' rights to claim compensation for false statement losses against the parties responsible for the Qingyue Technology Incident. Details of the scope of compensation and the calculation method are set out in the Company's announcement on the formal establishment of the advance compensation special fund published on the website of the Shenzhen Stock Exchange; the specific process for confirming and transferring compensation funds will be separately announced by the fund's manager, China Securities Investor Protection Fund Corporation Limited, in the dedicated section on its official website.