Emergency plan released! Dongwu Securities proposes to acquire 83.77% equity stake in Donghai Securities, resuming trading next Monday

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“Dongwu + Donghai” transaction plan announced.

On the evening of March 13, Dongwu Securities Co., Ltd. (hereinafter referred to as “Dongwu Securities,” 601555) announced that the company plans to acquire an 83.77% stake in Donghai Securities Co., Ltd. (hereinafter referred to as “Donghai Securities”).

Regarding the transaction plan, Dongwu Securities intends to purchase 83.77% of Donghai Securities held by 61 counterparties, including Changzhou Investment Group Co., Ltd. (hereinafter “Changtou Group”), through issuing shares and paying cash.

The transaction price is set at the average trading price of the company’s stock over the 20 trading days prior to the pricing date, which is 9.46 yuan per share.

Regarding equity, Dongwu Securities stated that based on the current plan, the company’s controlling shareholder and actual controller after the transaction are expected to remain as Suzhou International Development Group Co., Ltd. (hereinafter “Gufa Group”). The transaction is not expected to result in a change of actual control of the listed company. “The final ownership structure after the completion of this transaction will be determined based on the actual number of shares issued.”

“Preliminary estimates indicate that after the transaction, Changtou Group is expected to hold more than 5% of the company’s total share capital. According to the ‘Stock Listing Rules,’ Changtou Group is expected to become an associated party of the company after this transaction,” further noted Dongwu Securities.

Regarding the purpose of this transaction, Dongwu Securities pointed out in the announcement: first, to implement national strategies and serve regional development; second, to enhance core competitiveness and support sustainable growth; third, to leverage synergies and improve the efficiency of state-owned capital operations.

“According to relevant regulations, after applying to the Shanghai Stock Exchange, the company’s stock will resume trading starting from the opening on March 16, 2026 (Monday),” said Dongwu Securities.

It is worth noting that the integration of “Dongwu + Donghai” is the first resource consolidation within the securities industry involving provincial and different prefecture-level state-owned securities firms.

According to the latest information on the official website, Dongwu Securities was established in 1993, formerly known as Suzhou Securities, with its registered location in Suzhou, Jiangsu Province. The company has 30 branches and 133 business outlets nationwide, with wholly owned subsidiaries including Dongwu Venture Capital, Dongwu Innovation Capital, Dongwu Hong Kong, and Dongwu Singapore, and it holds stakes in Dongwu Fund and Dongwu Futures. On December 12, 2011, Dongwu Securities was listed on the Shanghai Stock Exchange.

In terms of performance, in 2024, Dongwu Securities achieved operating revenue of 11.534 billion yuan, a year-on-year increase of 2.24%; net profit attributable to shareholders of the parent company was 2.366 billion yuan, up 18.19% year-on-year.

In the first three quarters of 2025, Dongwu Securities reported operating revenue of 5.37 billion yuan, a 35.45% increase; net profit attributable to shareholders was 1.832 billion yuan, up 60.23% year-on-year.

Regarding ownership, the third-quarter report of 2025 shows that as of the end of the reporting period, only one shareholder held more than 5% of the company’s shares—Suzhou International Development Group Co., Ltd., with a stake of 24.33%.

The latest official information indicates that Donghai Securities (formerly “Changzhou Securities”) was established in 1993 in Changzhou, Jiangsu Province, and became one of the first ten innovative pilot securities firms nationwide in 2005. In 2015, the company was listed on the National Equities Exchange and Quotations (stock code: 832970). Currently, the company has a registered capital of 1.856 billion yuan, over 2,000 employees, with 19 branches and more than 60 business departments nationwide.

In terms of subsidiaries, Donghai Securities controls Donghai Futures Co., Ltd., Donghai Investment Co., Ltd., and Donghai Securities Innovation Products Investment Co., Ltd., holds stakes in Donghai Fund Management Co., Ltd., and has expanded into Hong Kong and overseas markets through Donghai International Financial Holdings.

In performance, in 2024, Donghai Securities achieved revenue of 1.469 billion yuan, a 125.94% increase; net profit attributable to shareholders was 23.487 million yuan.

In the first half of 2025, revenue was 815 million yuan, up 38.07%; net profit attributable to shareholders was 106 million yuan, up 231.01%.

Ownership-wise, the latest shareholding structure shows two shareholders with over 5% stakes: Changzhou Investment Group Co., Ltd. (26.68%) and Shanjin JinKong Capital Management Co., Ltd. (16.69%).