Notice on the Share Swap Absorption Merger of Hongyuan Securities Co., Ltd. by Shenwan Hongyuan Securities Co., Ltd.

Important Notice

1. Approved by the China Securities Regulatory Commission (CSRC) under document [2014] 1279, Shenwan Hongyuan Securities Co., Ltd. ("Shenwan Hongyuan") will issue shares to absorb and merge with Hongyuan Securities Co., Ltd. ("Hongyuan Securities" or "the Company").
2. To fully protect the legitimate interests of dissenting shareholders of Hongyuan Securities, cash options will be provided by Central Huijin Investment Ltd. ("Central Huijin") to dissenting shareholders. The results of the cash option declaration can be found in the announcement published on December 19, 2014.
3. The Company's stock (stock code: 000562) has been suspended from trading since December 10, 2014, and will not resume trading until the share swap is implemented and converted into Shenwan Hongyuan shares listed on the Shenzhen Stock Exchange.
4. Shenwan Hongyuan, as the absorbing party and share swap implementer, will convert the shares held by investors in Hongyuan Securities into Shenwan Hongyuan shares based on the share swap ratio determined by the merger plan. After the conversion, Shenwan Hongyuan will handle the initial listing registration with the Shenzhen branch of China Securities Depository and Clearing Corporation Limited ("China Clearing Shenzhen").
5. After the cash option plan is implemented, Hongyuan Securities will enter the delisting process, and the shares held by original Hongyuan Securities shareholders will be converted into Shenwan Hongyuan shares according to the swap ratio. On the share swap registration date (to be announced), if investors have submitted Hongyuan Securities shares as collateral for margin trading, the converted shares will also be Shenwan Hongyuan shares.
6. Investors engaged in repurchase agreements with Hongyuan Securities should complete early repurchase procedures before the close of trading on the share swap registration date. If there are still outstanding repurchase agreements after the registration date, relevant securities companies must promptly contact China Clearing Shenzhen to handle related matters. Any losses incurred due to failure to contact China Clearing Shenzhen in a timely manner will be the responsibility of the parties involved in the repurchase agreement, and China Clearing Shenzhen will not bear any liability.
7. For Hongyuan Securities shares that have been pledged, have oth