According to the announcement of Huicong Group (02280.HK) on September 5, 2023, the China Securities Regulatory Commission issued "opinions on the High-quality Construction of the Beijing Stock Exchange" to promote the high-quality development of the Beijing Stock Exchange. One of the overall requirements of the China Securities Regulatory Commission is to reform the reserve price system and improve the marketization level of the Beijing Stock Exchange. The Beijing Stock Exchange announced new measures on these opinions on the same day. These new measures include that the Beijing Stock Exchange will no longer require issuers to determine the reserve price in advance when submitting their listing applications. Instead, the issuer can use the price resulting from subsequent inquiry or pricing as the reserve price.
When submitting the listing application, in accordance with the listing rules and practices of the Beijing Stock Exchange at that time, the reserve price for the issue was determined in advance at RMB6.5 per Zhaoxin share, and the final offering price will be determined by the Board of Directors of Beijing Zhaoxin and its lead underwriter based on the results of the inquiry and after fair negotiation taking into account the market conditions, the growth of Beijing Zhaoxin and the trading price for a certain period before the offering. In view of the above new measures of the Beijing Stock Exchange, the board of directors of Beijing Zhaoxin has decided accordingly that Beijing Zhaoxin will use the result of future inquiry or pricing as the reserve price of the offering, replacing the above-mentioned reserve price.