Capital Securities Corp. Ltd.

Beijing Capital Securities was fined 1.06 million yuan by the Beijing Branch of the People's Bank of China for failing to conduct customer due diligence as required, failing to preserve customer identity information and transaction records as required, and failing to report suspicious transactions as required. Two responsible individuals were also penalized: Sun from the Operations Management Center was fined 15,800 yuan, and Cao Bin from the Customer Service Center was fined 17,300 yuan. This is the second regulatory penalty Beijing Capital Securities has received this year, following a warning letter issued to its Fujian branch by the Fujian Securities Regulatory Bureau. The company is currently advancing its H-share listing and has passed the listing hearing of the Hong Kong Stock Exchange, but still needs to obtain final approval.

Capital Securities announced that shareholder City Dynamics, holding 0.687% of shares, plans to reduce its stake by no more than 18.7791 million A-shares through competitive bidding, representing no more than 0.687% of the company's total share capital.