Notice of Service Fee Adjustment

 Dear Valued Client,

In light of the upcoming implementation of the Uncertificated Securities Market ("USM") regime in the Hong Kong securities market, our Company will revise the following fee items under the "General Service Fees and Transaction Charges" schedule. The revised charges will take effect on 16 November 2026, the date on which the USM regime is implemented.

The revisions include the charging arrangement for the Hong Kong securities Custody Fee. With effect from the above date, the fee will be charged at 0.005% p.a. on market value, accrued daily (Note 1) and charged on the last business day of each month (Note 2). Details of the updated charges and service arrangements are set out below:

Note 1: The Custody Fee accrues on every calendar day, including Saturdays, Sundays and Hong Kong public holidays (i.e. non-trading days of the Hong Kong stock market). The daily fee is calculated on the market value of the settled Prescribed Securities held in the client's account at the end of that day, based on the latest available closing prices; for non-trading days, the closing prices of the most recent trading day apply.

Note 2: The Custody Fee is charged on the last business day of each month. If the last business day of a month is not the last calendar day of that month, the fee for the remaining non-business days of that month will be accrued on the last business day and charged in one lump sum. For example, the last business day of January 2027 is 29 January (Friday); the fee for 30 and 31 January (Saturday and Sunday) will be accrued on 29 January and charged together with the rest of the fee for January.

* The Custody Fee is charged only on "Prescribed Securities", i.e. securities that:

a.      are listed on the SEHK; and

b.      fall within one of the following categories:

·        shares – shares of both Hong Kong incorporated and non-Hong Kong incorporated companies are covered;

·        depositary receipts;

·        stapled securities;

·        interests in SFC-authorised collective investment schemes (CIS) – these include listed real estate investment trusts (REITs), but exclude exchange-traded funds (ETFs) unless they are withdrawable from the Central Clearing and Settlement System (CCASS);

·        subscription warrants to subscribe for any of the above types of securities; and

·        rights under a rights issue to subscribe for any of the above types of securities.

Callable bull/bear contracts, derivative warrants and ETFs that cannot be withdrawn from CCASS are not Prescribed Securities.

The Custody Fee applies only to registered securities held in CCASS, excluding: (i) Exchange Fund Notes, (ii) Government Bonds, (iii) Specified Debt Instruments, (iv) CMU Debt Instruments, (v) Foreign Securities, and (vi) China Connect Securities.

The applicable fee items for each service scenario are as follows:

 For details of the USM arrangements and their implications for clients, please refer to the Important Notice Regarding the Implementation of the Uncertificated Securities Market Regime in Hong Kong. Further information on the USM regime is available on the following webpages:

• HKEX USM webpage: https://www.hkex.com.hk/Services/Settlement-and-Depository/USM?sc_lang=en
• SFC USM webpage: https://www.sfc.hk/en/Rules-and-standards/Uncertificated-Securities-Market

Should you have any questions regarding the Service Fee Adjustment or the USM regime, please contact your Relationship Manager or call our Customer Service Hotline at (852) 2237 9338 / 400 818 0338 from 9:00 a.m. to 6:00 p.m., Monday to Friday. For the full General Service Fees and Transaction Charges, please refer to our Company's website.

In the event of any discrepancy between the Chinese and English versions of this notice, the Chinese version shall prevail.

Yours faithfully,

CITIC Securities Brokerage (HK) Limited