ISSUING AUTHORITY:

Shanghai Stock Exchange, Shenzhen Stock Exchange

DATE OF ISSUANCE:

September 26, 2023

On September 26, the Shanghai Stock Exchange and the Shenzhen Stock Exchange issued a Notice on Further Regulation of Share Reduction Activities (the “Notice”).

According to the Notice, if a listed company experiences a breach of the issuance price or net asset value, if it has not paid cash dividends in the past three years, or if the cumulative cash dividends amount to less than 30% of the average net profit over the past three years, the controlling shareholder or actual controller shall not reduce their holdings of the company's shares through the secondary market.

Under the Notice, the secondary market refers to centralized price-bidding transactions and block trades. The controlling shareholder or actual controller shall judge whether there is any circumstance under which the shareholding reduction is prohibited disclosing a shareholding reduction plan in advance.

Reference:

《关于进一步规范股份减持行为有关事项的通知》（上海证券交易所）

《关于进一步规范股份减持行为有关事项的通知》（深圳证券交易所）