Stock Code: 200771 Stock ID: Hangqilun B Announcement No.: 2025-122
A-Share Issuance of Hangzhou Hirisun Technology Incorporated for Share
Swap Merger with Hangzhou Turbine Power Group Co. Ltd. and related
Transaction - A/B Share Securities Account Conversion Procedures and Investor
Operation Guide
November 2025
1Contents
Special Reminder:
Part I: Explanation of Investor Types
1.Classification of B-Share Securities Accounts
2.Investor Classification in this Operation Guide
Part II: Basic Operational Procedures
1.Cash Option Declaration and Registration
2. Linkage Relationship of Hangqilun B Share Investors' One-Account-Pass (Applicable
Only to Domestic Individual Investors)
3.Share Adjustment for Agents of Overseas Investors Not Trading Domestically
4.Determining the Securities Account and Custody Unit for Hirisun A-Shares
5.Allocation of Shenzhen Market Transfer-Restricted Accounts
6.B-Share Deregistration and A-Share Initial Registration
7.RMB Fund Account Activation/Opening (Applicable only to investors allocated a
transfer-restricted account)
8.Share Sale and Clearing & Settlement
9. Fund Transfer
10. Capital Reserve Conversion into Shares Bonus Share Issuance and Dividend
Distribution
11.Differential Dividend Tax
12.Treatment of Fractional Shares Arising from the Share Swap
13. General Meetings of Shareholders
14.Cancellation of Transfer-Restricted Accounts
15.Handling of Pledges Freezes and Non-Trading Transfers for Transfer-Restricted
Accounts
Appendix I:
Declaration Form for Correspondence between A/B-share Securities Accounts and Custody
Units
Appendix II:
Declaration Form for Securities Accounts and Custody Units of Investors of Hangqilun
B-Share Not Trading Domestically
Appendix III: Contact Information for CITIC Securities Inquiries and Business Handling
Appendix IV: Contact Information for ICBC Inquiries and Business HandlingSpecial Reminder
Hangzhou Hirisun Technology Incorporated (hereinafter referred to as "Hirisun" Stock Code:
300277) issued A-shares for share swap merger with Hangzhou Turbine Power Group Co. Ltd.
(hereinafter referred to as " Hangqilun B" Stock Code: 200771) and related transaction scheme
was approved by the general meetings of shareholders of Hirisun and Hangqilun B respectively in
June 2025. In September 2025 the China Securities Regulatory Commission issued the Approval
on the Registration of Hangzhou Hirisun Technology Incorporated's Share Swap Merger with
Hangzhou Turbine Power Group Co. Ltd. (ZJXK [2025] No. 2141).To ensure the smooth implementation of this share swap merger and to guide securities
companies and investors in completing the account conversion operations involved in converting
Hangqilun B Shares into Hirisun A-shares this Operation Guide is formulated based on the results
of communication and discussions with relevant parties.As after converting into Hirisun A-share shareholders the processes for overseas investors
including the allocation of transfer-restricted accounts the opening of RMB fund accounts share
sales clearing and settlement fund transfers and the currency exchange and remittance operations
involved in dividends are relatively complex and time-consuming requiring more documentation.If overseas investors cannot accurately and completely provide the required documents at
that time there is a risk that funds cannot be remitted out in a timely manner. Overseas
investors are specially reminded to pay attention to the relevant risks.To ensure that investors can smoothly register and trade Hirisun A-shares after the
future share swap investors are strongly advised to actively cooperate with their custodian
securities companies in making declarations and carefully verify and confirm the accuracy
of the declared A-share securities account and custody unit information prior to the
deadline.Investors are hereby specifically reminded that from the completion of the securities
account and custody unit information declaration until the completion of the swap of
Hangqilun B Shares into Hirisun A-Shares actions such as deregistering the securities
accounts altering shareholder identity information or any other actions that may disrupt
the normal use of the securities accounts and custody units are strictly prohibited.Regarding matters pertaining to the securities trading rules transaction fees for the
B-shares and A-shares involved in this share swap as well as inquiries into account
securities balances and fund balances investors are advised to directly contact their
respective securities companies/brokers for consultation and clarification.For certain basic procedures involved in this account conversion such as the deregistration of
B-shares and the initial registration of A-shares specific details will be subsequently provided by
the relevant regulatory or executive authorities in further documents or notices. This Operation
Guide offers only a general description of the relevant procedures and the specific operating
workflows shall be subject to the documents or notices issued by the said authorities at the
relevant time.This Operation Guide is prepared in both Chinese and English versions. In case of any
discrepancy between the two versions the Chinese version shall prevail.Part I: Explanation of Investor Types
1. Classification of B-Share Securities Accounts
Based on investor identity category and future trading declaration channels investors are
classified into the following three types: Domestic Individual Investors Overseas Investors
Trading Domestically and Overseas Investors Not Trading Domestically.Investor Type Classification Criteria
Domestic individual investors who have opened B-share securities
Domestic Individual Investors accounts with domestic securities companies and trade through the
trading systems of domestic securities companies
Overseas investors who have opened B-share securities accounts with
Overseas Investors Trading
domestic securities companies and trade through the trading systems of
Domestically
domestic securities companies
Overseas Investors Not Trading Overseas investors who have opened separate B-share securities
Domestically accounts with overseas brokers and trade through overseas brokers
2.Investor Classification in this Operation Guide
The account conversion process and subsequent operations involved in Hirisun's share swap
merger of Hangqilun B are mainly carried out primarily according to the following investor
classifications. After confirming the classification of their B-share securities account investors
should determine their specific type based on the three categories below and proceed with the
account conversion by following the corresponding sections of this Guide.Investor Type Classification Criteria Corresponding Content in this Guide
Domestic individual investors who have Part 2 "Sections 4 5 7 8 9" - (I) Domestic
Domestic opened B-share securities accounts with Individual Investors
Individual domestic securities companies and trade
Investors through the trading systems of domestic
securities companies
Overseas investors who have opened Part 2 "Sections 4 5 7 8 9" - (II) Overseas
Overseas
B-share securities accounts with domestic Investors Trading Domestically
Investors Trading
securities companies and trade through the
Domestically
trading systems of domestic securitiescompanies
Overseas Overseas investors who have opened Part 2 "Sections 4 5 7 8 9" - (III) Overseas
Investors Not separate B-share securities accounts with Investors Not Trading Domestically
Trading overseas brokers and trade through overseas
Domestically brokersPart II: Basic Operational Procedures
In line with the principle of serving and facilitating investors throughout the account
conversion process for the conversion of Hangqilun B Shares to Hirisun A-Shares Domestic
Individual Investors and Overseas Investors Trading Domestically may direct their specific
inquiries and conduct their business through their respective B-share account securities companies
whereas Overseas Investors Not Trading Domestically may contact CITIC Securities Company
Limited (hereinafter referred to as "CITIC Securities") for account inquiries and procedural
guidance with the option to subsequently proceed with their business either through CITIC
Securities or another domestic securities company of their choice after understanding the relevant
details.
1.Cash Option Declaration and Registration
In this share swap merger Hangzhou State-owned Capital Investment and Operation Co. Ltd.(hereinafter referred to as "Hangzhou Capital") the controlling shareholder of Hangqilun B acts
as the cash option provider for Hangqilun B and provides a cash option denominated in Hong
Kong dollars to eligible target shareholders of Hangqilun B. After the cash option record date
Hangqilun B investors may by declaring and exercising the cash option transfer their
Hangqilun B shares to Hangzhou Capital and receive the cash option consideration thereby
realizing their exit.For matters related to cash option declaration and registration please refer to the separate
announcement issued by Hangqilun B.
2.Linkage Relationship of Hangqilun B Share Investors' One-Account-Pass (Applicable
Only to Domestic Individual Investors)
After the launch of the unified account platform by China Securities Depository and Clearing
Corporation Limited Shenzhen Branch (hereinafter referred to as "CSDC") a One-Account-Pass
was opened for investors in addition to the original Shanghai and Shenzhen A-share and B-share
securities accounts. This serves as the master account recording investor identity information and
securities assets while the original securities accounts serve as sub-accounts for investors' trading
activities with a linkage relationship opened between the One-Account-Pass and the
sub-accounts.
1. For investors who have a one-to-one correspondence between their A-share and B-share
securities accounts under the One-Account-Pass and whose linkage relationship has beenconfirmed after the deregistration of Hangqilun B shares Hirisun A-shares will be initially
registered in the investor's A-share securities account.For investors who have two or more A-share securities accounts under their
One-Account-Pass and whose linkage relationships have been confirmed it is recommended that
investors and their original B-share custodian securities company select an A-share securities
account for the initial registration of Hirisun A-shares in the following order: First select the
A-share securities account where the information declaration securities company is the same as
the Hangqilun B share custodian securities company; secondly select the A-share securities
account with the latest account opening date as the A-share securities account for the initial
registration of Hirisun A-shares.
2. For investors who have both A-share and B-share securities accounts under their
One-Account-Pass but whose linkage relationship is not confirmed they can go to the securities
company where their B-share securities account or A-share securities account is traded to
complete the linkage relationship confirmation procedure before the declaration deadline for
securities accounts and custody units.
3. For investors who have a B-share securities account under their One-Account-Pass but
temporarily do not have an A-share securities account they can complete the opening of an
A-share securities account and confirm the linkage relationship before the declaration deadline for
securities accounts and custody units. It is recommended that investors choose the sales
department of the securities company where their B-share securities account is traded to open a
new A-share securities account.After the aforementioned deadline for investors lacking a corresponding A-share
securities account under their One-Account-Pass Hirisun will apply to CSDC to allocate a
transfer-restricted account for the investor. Please refer to Section "V. Allocation of Shenzhen
Market Transfer-Restricted Accounts" in this chapter.After the deregistration of Hangqilun B
shares Hirisun A-shares will be registered in the investor's transfer-restricted account.It is particularly important to note that investors are required to first verify with the
securities company where their B-share securities account is traded whether their A-share
and B-share securities accounts are under the same One-Account-Pass and whether the
linkage relationship has been confirmed. For those whose A-share and B-share securities
accounts are not under the same linkage relationship or whose linkage relationship is not
confirmed investors are advised to contact the securities company where their B-share securities
account is traded as soon as possible to modify account details and complete the linkage
confirmation procedure.3.Share Adjustment for Agents of Overseas Investors Not Trading Domestically
According to CSDC B-Share Business Registration and Settlement Service Guide Hangqilun
B shareholders can authorize their agents to apply to CSDC Shenzhen Branch (Contact Number:
0755-21899306) for an agent account share adjustment. If applying for an agent account share
adjustment the process must be completed within one week before the declaration deadline for
securities accounts and custody units (Investors are advised to pay attention to the subsequent
agent share adjustment deadline announced by the listed company).
4.Determining the Securities Account and Custody Unit for Hirisun A-Shares
(I) Domestic Individual Investors
As the existing B-share securities accounts of Hangqilun B investors cannot directly register
Hirisun A-shares and given that the Shenzhen Stock Exchange (hereinafter referred to as "SZSE")
implements a share custody and trading system a situation may arise where shares under the same
investor's securities account are held across multiple custody units. Therefore the securities
account and custody unit for the investor's future Hirisun A-shares after the share swap are
determined according to the following principles:
1. The domestic securities company custodian o Hangqilun B prior to the declaration
deadline for securities accounts and custody units and following solicitation of investor's intention
shall declare the A-share securities account and custody unit for each Hangqilun B investor.Hangqilun B shares originally registered in the B-share securities account after conversion
into Hirisun A-shares will be registered in the declared A-share securities account and custody
unit. If the declared information for the A-share securities account or custody unit is incorrect it
may result in the failure to properly register or sell the A-shares obtained after the conversion.Investors and their respective securities companies are strongly advised to carefully verify the
accuracy of the declared information.
2. If an investor fails to declare or incorrectly declares the A-share securities account
and custody unit before the declaration deadline for securities accounts and custody units
(Investors are advised to note the subsequent declaration deadline announced by the listed
company) the converted Hirisun A-shares will be registered into a transfer-restricted
account opened by CSDC for the relevant investor and custodied to the A-share custody unit
declared by the original B-share custodian securities company; If the original B-share
custodian securities company fails to declare an A-share custody unit for the convenience ofinvestors the listed company will authorize CITIC Securities to provide a custody unit and
the Hirisun A-shares obtained by such investors will be custodied to CITIC Securities'
A-share custody unit. Investors whose shares are custodied with CITIC Securities can only
conduct trades transfers of custody and other operations after opening a fund account and
completing related procedures with CITIC Securities.Please refer to "V. Allocation of
Shenzhen Market Transfer-Restricted Accounts". For specific matters investors can consult their
original B-share custodian securities company.Method for declaring securities accounts and custody units: The original B-share custodian
securities company is advised to fill out the Declaration Form for Correspondence between
A/B-share Securities Accounts and Custody Units (see Appendix I for details hereinafter
referred to as the "Declaration Form") in a consolidated manner and send the following materials
to the designated email address of CITIC Securities;
1) A completed electronic version of the Declaration Form in consolidated format;
2) A scanned copy of the printed completed and consolidated Declaration Form stamped
with the securities company's official seal as an appendix;
During declaration please completely declare the A-share securities account and custody unit
information corresponding to all B-share securities accounts and custody units. The content of the
electronic declaration form must be consistent with the information declared in the stamped
document; If declared multiple times the last complete set of declaration information received
will be taken as the standard.For any questions please contact CITIC Securities. Contact information is detailed in
Appendix III.(II) Overseas Investors Trading Domestically
As the existing B-share securities accounts of Hangqilun B investors cannot directly register
Hirisun A-shares and given that SZSE implements a share custody and trading system a situation
may arise where shares under the same investor's securities account are held across multiple
custody units. Therefore the securities account and custody unit for the investor's future Hirisun
A-shares after the share swap are determined according to the following principles:
1. The domestic securities company where Hangqilun B is traded prior to the declaration
deadline for securities accounts and custody units and following solicitation of the investor's
intention shall declare the A-share securities account (if any) and custody unit for each Hangqilun
B investor. Such A-share securities account and custody unit must ensure that the investor can
normally trade A-shares.Hangqilun B shares originally registered in the B-share securities account after conversion
into Hirisun A-shares will be registered in the declared A-share securities account and custody
unit.If the declared information for the A-share securities account or custody unit is incorrect it
may result in the failure to properly register or sell the A-shares obtained after the conversion.Investors are strongly advised to carefully verify the accuracy of the declared information.
2. If an investor fails to declare or incorrectly declares the A-share securities account
and custody unit before the declaration deadline for securities accounts and custody units
(Investors are advised to note the subsequent declaration deadline announced by the listed
company) the converted Hirisun A-shares will be registered into a transfer-restricted
account opened by CSDC for the relevant investor and custodied to the A-share custody unit
declared by the original B-share custodian securities company; If the original B-share
custodian securities company fails to declare an A-share custody unit for the convenience of
investors the listed company will authorize CITIC Securities to provide a custody unit and
the Hirisun A-shares obtained by such investors will be custodied to CITIC Securities'
A-share custody unit. Investors whose shares are custodied with CITIC Securities can only
conduct trades transfers of custody and other operations after opening a fund account and
completing related procedures with CITIC Securities.Please refer to "V. Allocation of
Shenzhen Market Transfer-Restricted Accounts". For specific matters investors can consult their
original B-share custodian securities company. Method for declaring securities accounts and
custody units: The original B-share custodian securities company is advised to fill out the
Declaration Form for Correspondence between A/B-share Securities Accounts and Custody
Units (see Appendix I for details) in a consolidated manner and send the following materials to the
designated email address of CITIC Securities;
1) A completed electronic version of the Declaration Form in consolidated format as an
appendix;
2) A scanned copy of the printed completed and consolidated Declaration Form stamped
with the securities company's official seal as an appendix.During declaration please completely declare the A-share securities account (if any) and
custody unit information corresponding to all B-share securities accounts and custody units. The
content of the electronic declaration form must be consistent with the information declared in the
stamped declared information; If declared multiple times the last complete set of declaration
information received will be taken as the standard.For any questions please contact CITIC Securities. Contact information is detailed in
Appendix III.(III) Overseas Investors Not Trading Domestically
As the existing B-share securities accounts of Hangqilun B investors cannot directly register
Hirisun A-shares and given that SZSE implements a share custody and trading system a situation
may arise where shares under the same investor's securities account are held across multiple
custody units. Therefore the securities account and custody unit for the investor's future Hirisun
A-shares after the share swap are determined according to the following principles:
Investors who intend to self-designate their domestic securities company and securities
account/custody unit must contact their chosen domestic securities company before the declaration
deadline to confirm the securities account (if any) and custody unit. The designated securities
company will then proceed with the declaration.Method for Declaring Securities Accounts and Custody Units: Please complete the
Declaration Form for Securities Accounts and Custody Units of Investors of Hangqilun
B-Share Not Trading Domestically (see Appendix II for details). The declaration along with the
following materials must be sent by the securities company of the chosen A-share custody unit to
the email address designated by CITIC Securities:
1) Copied and pasted completed declaration content directly in the body of the email;
2) Printed completed declaration form stamped and scanned as an email attachment.
When declaring please accurately fill in the A-share securities account and custody unit
information. If declared multiple times the last complete set of declaration information received
will be taken as the standard.
1.If an investor fails to declare their A-share securities account before the specified deadline
(investors are advised to note the subsequent declaration deadline announced by the listed
company) the converted Hirisun A-shares will be registered into a transfer-restricted
account opened by CSDC for the relevant investor.Please refer to "V. Allocation of Shenzhen
Market Transfer-Restricted Accounts" in this chapter.For the convenience of investors the listed company has authorized CITIC Securities to
provide custody units. If overseas B-share investors not trading domestically fail to declare a
custody unit before the declaration deadline for securities accounts and custody units their
acquired Hirisun A-shares will be automatically custodied to CITIC Securities' A-share
custody unit. Such investors can only conduct trading and custody transfer operations after
completing relevant procedures such as fund account opening with CITIC Securities.For any inquiries please contact CITIC Securities. Contact details are provided in Appendix
III.5.Allocation of Shenzhen Market Transfer-Restricted Accounts
(I) Domestic Individual Investors
After completing the securities account declaration process for domestic individual
investors who do not have an A-share securities account or fail to correctly declare an
A-share securities account Hirisun will apply to CSDC to uniformly allocate
transfer-restricted accounts free of charge for such investors based on their B-share
securities account information and will custody the A-shares to the securities company
designated by the original B-share custodian securities company in its A-share custody unit
declaration.This securities account is a special restricted account which can only be used to
place sell orders and shall not be used for other purposes.During the allocation process of the transfer-restricted account investors are not required to
perform any additional operations. After the allocation of the transfer-restricted account is
completed the securities company will inform investors about matters related to the allocation of
the transfer-restricted account through one or more channels such as the internet telephone SMS
email and posting announcements at business premises. The sales departments of each securities
company will assist in opening the transfer-restricted account in the trading system. Investors
shall go to the securities company's sales department to complete the RMB third-party
custodianship procedures for the fund account of the transfer-restricted account to enable
subsequent sell order transactions for the converted A-shares. For specific business handling
procedures and required documents investors may consult the securities company where their
A-share securities account is traded.(II) Overseas Investors Trading Domestically
After completing the securities account declaration process for overseas investors
trading domestically who do not have an A-share securities account or fail to correctly
declare an A-share securities account Hirisun will apply to CSDC to uniformly allocate
transfer-restricted accounts free of charge for such investors based on their B-share
securities account information and will custody the A-shares to the securities company
designated in the A-share custody unit declaration submitted by the original B-share
custodian securities company. This securities account is a special restricted account which
can only be used to place sell orders and shall not be used for other purposes.The securities company will inform investors about matters related to the allocation of the
transfer-restricted account through one or more channels such as the internet telephone SMS
email and posting announcements at business premises. The sales departments of each securities
company will assist in activating the RMB settlement function for the original B-share fund
account to enable subsequent sell order transactions for the transfer-restricted account. Investors
shall go to the securities company's sales department to complete the RMB custodianship
procedures for the fund account of the transfer-restricted account to enable subsequent sell
order transactions for the converted A-shares.During the allocation process of the transfer-restricted account investors are not required to
perform any additional operations. Before the listing of the new Hirisun A-shares the securities
company where the investor's B-share securities account is traded will inform them about matters
related to the allocation of the transfer-restricted account through one or more channels such as the
internet telephone SMS email and posting announcements at business premises. Investors are
advised to pay attention to the relevant notices and announcements at that time.After the transfer-restricted account is allocated investors can make inquiries to the securities
company of their designated A-share custody unit through counter inquiries telephone online
trading systems etc.(III) Overseas Investors Not Trading Domestically
After completing the Hangqilun B cash option process for overseas investors not
trading domestically who do not have an A-share securities account or fail to correctly
declare an A-share securities account Hirisun will apply to CSDC to uniformly allocate
transfer-restricted accounts free of charge based on their B-share securities account
information. This securities account is a special restricted account which can only be used to
place sell orders and shall not be used for other purposes.As the investor's B-share securities account is not opened with any domestic securities
company the investor is required to self-designate a domestic securities company to serve as
the future custodian for the transfer-restricted account upon being informed of the account
conversion details (see Part 2 Section 4 for details).Investors are required to promptly go to
this securities company to complete procedures such as fund account opening and only after
this securities company completes the linking of the investor's transfer-restricted account
can they inquire about the Hirisun A-shares in the transfer-restricted account and place sell
orders.The listed company has authorized CITIC Securities to provide an A-share custody unit.If the investor has not designated a domestic securities company as the trading securities
company for their future transfer-restricted account they shall promptly go to CITIC
Securities to complete relevant procedures such as fund account opening before they can
conduct trades transfers of custody and other operations.
6.B-Share Deregistration and A-Share Initial Registration
Based on Hangqilun B's application for deregistration CSDC provides Hangqilun B with
relevant materials such as the investor register at the time of B-share deregistration and terminates
its share registration relationship with Hangqilun B.HTC transfers the investor register at the time
of B-share exit to Hirisun. Hirisun calculates the number of Hirisun A-shares obtained after the
share swap for all registered B-share investors based on the share swap ratio of this share swap
merger and updates the share details of each B-share investor into the A-share investor register.Hirisun sends the updated investor register (including judicial freeze and pledge registration
data) to CSDC and applies to CSDC to complete the initial registration of Hirisun A-shares.Based
on Hirisun's application CSDC initially registers the Hirisun A-shares held by investors into their
ordinary A-share securities account or transfer-restricted account.After the initial share
registration for domestic individual investors whose shares are registered in an ordinary A-share
securities account and who have opened ChiNext market trading permissions according to the
Shenzhen Stock Exchange ChiNext Market Investor Appropriateness Management Implementation
Measures (2020 Revision) and other implementing rules the normal transaction of Hirisun
A-shares will follow the existing operational procedures for ordinary A-share securities accounts.This Operation Guide will not reiterate the relevant business processes.For domestic individual
investors who have not opened ChiNext market trading permissions their held Hirisun
A-shares will be subject to trading restrictions; they can only sell held shares and shall not
conduct buy operations.Domestic individual investors and all overseas investors whose shares
are registered in a transfer-restricted account will hold or sell Hirisun A-shares through the
transfer-restricted account. Relevant investors shall follow the business operation process below
and be further classified based on the investor classification in this Operation Guide (for specific
content see basic business operation processes VII to XV).7.RMB Fund Account Activation/Opening (Applicable only to investors allocated a
transfer-restricted account)
For investors whose Hirisun A-shares are initially registered to a transfer-restricted account
operations are classified according to the investor types in this Operation Guide. The specific
processes are as follows:
(I) Domestic Individual Investors
After the initial A-share registration is completed CSDC will send the correspondence
between the B-share account and the transfer-restricted account to the custodian securities
company. Each domestic securities company that receives the corresponding data must notify
investors about the initial registration of the Hirisun A-shares obtained from the share swap into
their transfer-restricted account through one or more channels such as the internet telephone
SMS email and posting announcements at business premises. The sales departments of each
securities company will assist in activating the RMB settlement function for the original B-share
fund account and notify investors to complete the third-party custodianship procedures for the
fund account of the transfer-restricted account.When investors go to the securities company's sales
department to handle relevant procedures the specific operational steps for each securities
company are as follows:
1) The securities company shall activate the RMB currency denomination and add RMB
settlement functionality to the original B-share funds account of the Domestic Individual Investor;
2) The securities company shall open the corresponding transfer-restricted account under the
aforementioned funds account within its trading system;
3) Each investor are required to sign a third-party custodianship agreement and complete the
third-party custodianship procedures for the fund account according to the relevant regulations of
each securities company for handling third-party custodianship business for fund accounts.The
general handling process is that the securities company is responsible for sending the
pre-designation information of the investor's RMB fund account to the third-party custodian bank
and the investor goes to the custodian bank's business outlet to complete the linkage procedure for
the third-party custodianship of the fund account thereby realizing third-party custodianship for
the investor's fund account; the specific operational process can be consulted with the securities
company where the A-share is custodied and traded.It is recommended that each securities company execute the aforementioned step 2) only
after the investor has completed the third-party custodianship business procedures. On the day
after completing the above steps investors can use their original B-share fund account number and
trading password to access the trading interface to query their transfer-restricted accountinformation and the number of Hirisun A-shares registered in this securities account and can
place sell orders after the listing of the new A-shares resulting from Hirisun's share swap merger.The above process is only a general description. The specific operational process shall be
determined by each securities company according to their relevant regulations.(II) Overseas Investors Trading Domestically
Upon being informed of the account conversion details investors are advised to select their
original B-share custodian securities company as the future custodian for the transfer-restricted
account. Such securities company assists in activating the RMB settlement function for the
original B-share fund account and opens the transfer-restricted account under the B-share
fund account that has already activated RMB currency settlement functionality. Only upon
completion of these steps can investors proceed to inquire about the Hirisun A-shares held in
the transfer-restricted account and place sell orders. In the future the A-share custody unit of
this securities company will handle the custody and one-way sell transactions for the Hirisun
A-shares held in their transfer-restricted account. Such account does not require investors to
handle third-party custodianship business.(III) Overseas Investors Not Trading Domestically
The transfer-restricted account allocated to such investors requires the designation of a
domestic securities company as its custodian to activate standard functions for querying and
selling the held Hirisun A-shares. To achieve this the investor shall go to the designated securities
company to complete the funds account opening procedures. Only after the securities company
has established the funds account linked to this transfer-restricted account can.Investor proceed to query Hirisun A-share holdings and place sell orders. In the future the
A-share custody unit of this securities company will handle the custody and one-way sell
transactions for the Hirisun A-shares held in their transfer-restricted account. Before this investors
cannot place sell order declarations for Hirisun A-shares.Investors can contact CITIC Securities to inquire about their transfer-restricted account and
other related information. At the same time investors can also contact CITIC Securities to consult
on relevant business processes involved in this account conversion such as account opening and
subsequent operations of the transfer-restricted account and can complete the above-related
business at CITIC Securities. Upon understanding the relevant business details investors may also
choose to visit another domestic securities company of their choice to handle the relevant
procedures. The specific business process flow should be inquired by the investor directly with the
chosen securities company.The Contact Information for CITIC Securities Inquiries and Business Handling is detailed in
Appendix 3.When investors go to the securities company that will serve as the trading securities company
for their future transfer-restricted account to open an account in addition to assisting investors in
submitting and filling out relevant account opening materials the securities company shall
generally also carry out the following operational steps: 1) Open Hong Kong dollar and RMB
fund accounts for the investor and complete the setting of the investor's trading password; 2) Open
the corresponding transfer-restricted account under the RMB fund account; 3) Directly send
entrustment trading instructions to the exchange through the trading system to complete
entrustment trading for the transfer-restricted account; 4) Inform the investor of the fund account
number and trading method.Upon completing the above steps investors can use the fund account
number obtained during account opening and the trading password to log in to the trading
interface of the securities company where their transfer-restricted account is held to query their
transfer-restricted account information and place sell orders for Hirisun A-shares after the listing
of the new A-shares resulting from Hirisun's share swap merger.As the account opening process for overseas investors is relatively complex the above
process is only a general description. The specific account opening and procedure handling
processes forms (such as provision of on-site or non-on-site account opening services) and
whether each securities company chooses a domestic platform or overseas platform to provide
account opening and related services for investors shall be determined by the investor's selected
securities company according to their relevant regulations.
8.Share Sale and Clearing & Settlement
(I) Domestic Individual Investors
Upon completing the aforementioned operational steps all domestic individual investors
allocated transfer-restricted accounts may conduct share sales and clearing & settlement following
the current operational procedures for ordinary A-share securities accounts. The specific steps are
as follows:
1) On T-day the investor logs into the trading interface using the funds account number and
trading password associated with the newly opened transfer-restricted account enters the Hirisun
A-share stock code in the sell order and inputs the number of shares to sell and the order price to
submit the sell order application;
2) The securities company's trading system automatically selects the investor's transfer-restricted
account and the designated A-share custody unit for reduction based on the Hirisun A-share stock
code and submits the sell order to the exchange;3) The Shenzhen Stock Exchange matches and executes the trade through the trading system
then sends the trade execution report to the securities company;
4) At the end of T-day CSDC receives the day's trading data from the Shenzhen Stock
Exchange conducts clearing of both funds and securities and distributes the clearing data to each
securities company; On T+1 day it completes the fund transfer for settlement with each securities
company based on the T-day securities trading clearing results;
5) At the end of T-day each domestic securities company conducts secondary clearing and
settlement with investors based on the trading clearing data sent by CSDC. The Hirisun A-shares
in the investor's transfer-restricted account decreases accordingly and the RMB amount in the
fund account increases accordingly;
6) The RMB funds in the investor's funds account will accrue interest at the prevailing
People's Bank of China RMB demand deposit rate. This interest will be calculated and credited to
the investor's RMB funds account on the designated interest calculation date.(II) Overseas Investors Trading Domestically
The share sale and clearing & settlement process is the same as the operational process
described in "VIII. Share Sale and Clearing & Settlement" - "1. Domestic Individual Investors".However the RMB proceeds from the sale are unavailable and non-withdrawable and shall be
uniformly converted to Hong Kong dollars as required by the State Administration of Foreign
Exchange. Specific operations refer to the chapter "IX. Fund Transfer".(III) Overseas Investors Not Trading Domestically
The share sale and clearing & settlement process is the same as the operational process
described in "VIII. Share Sale and Clearing & Settlement" - "1. Domestic Individual
Investors".The RMB proceeds from the sale are unavailable and non-withdrawable and must be
uniformly converted to Hong Kong dollars as required by the State Administration of Foreign
Exchange. Specific operations refer to the chapter "IX. Fund Transfer".On T-day after all domestic individual investors and overseas investors complete the above
operational steps the Hirisun A-shares that investors entrusted to sell have been successfully sold
and cleared & settled. Consequently the number of Hirisun A-shares held in the investor's
transfer-restricted account decreases accordingly and the RMB funds in the fund account increase
accordingly.On T+1 day CSDC uniformly transfers the RMB funds obtained from investors' share sales
to the settlement reserve accounts of each domestic securities company.9. Fund Transfer
(I) Domestic Individual Investors
1) On T+1 Day each domestic securities company shall transfer the RMB funds obtained from the
sale of Hirisun A-shares by investors from the settlement reserve account to the master third-party
custodian account for client trading settlement funds;
2) On T+1 Day investors may initiate the standard A-share third-party custodian bank-securities
transfer process to move the RMB proceeds from the sale of Hirisun A-shares from their securities
funds account to their designated personal bank account thereby completing the final fund
transfer.(II) Overseas Investors Trading Domestically
Upon completion of the share swap for original Hangqilun B-share overseas investors the
RMB funds obtained from selling Hirisun A-shares through the transfer-restricted account or from
dividends must be uniformly converted into Hong Kong Dollars (HKD) in accordance with the
requirements of the State Administration of Foreign Exchange. The securities company will then
facilitate the final settlement in HKD through a designated foreign exchange bank. Consequently
while the RMB proceeds from share sales in the transfer-restricted account are settled on the
aforementioned T+1 basis the final withdrawable HKD funds for investors will be available on
T+m Day (m≥3) depending on the settlement progress of the foreign exchange bank's conversion
process. That is investors may apply to their securities company to withdraw the HKD proceeds
from the share sale on T+m Day.Investors may consult the securities company where their
transfer-restricted account is held for specific details.(III) Overseas Investors Not Trading Domestically
Investors may appoint CITIC Securities or another domestic securities company of their
choice for delegated trading. After completing account opening with the designated securities
company the foreign exchange purchase and transfer process for the RMB funds obtained from
reducing A-shares or dividends through the transfer-restricted account is largely the same as that
described in "IX. Fund Transfer" - "2. Overseas Investors Trading Domestically". The specific
process shall be determined by the investor's designated settlement securities company or CITIC
Securities through their own liaison.Industrial and Commercial Bank of China (ICBC) as the cooperating bank assists overseas
investors and securities firms with currency exchange and remittance operations and handles
business applications inquiries and communications related to currency exchange services under
the premise of complying with Chinese laws and regulations as well as relevant foreign exchange
rules and requirements.After consulting ICBC to understand the relevant business detailsinvestors may choose to conduct their fund remittance business with other eligible banks.The
contact information for ICBC Hangzhou Branch is detailed in Appendix IV.
10. Capital Reserve Conversion into Shares Bonus Share Issuance and Dividend
Distribution
Capital reserve conversions bonus share issuance registrations and dividend distributions for
shares in the transfer-restricted account are handled by reference to existing normal A-share
accounts.
11. Differential Dividend Tax
The calculation and withholding of differential dividend tax are handled according to existing
laws regulations and business rules.
12. Treatment of Fractional Shares Arising from the Share Swap
After the share exchange is completed the number of Hirisun A-shares obtained by
Hangqilun B share investors should be whole numbers. If the number resulting from multiplying
the Hangqilun B shares held by an investor by the share swap ratio is not an integer then based
on the size of the fractional part (after the decimal point) each investor will receive one additional
share in sequence until the actual number of swapped shares matches the planned issuance
quantity. In cases where multiple shareholders have identical fractional portions exceeding the
remaining shares available for allocation a computerized random allocation system shall be used
until the actual number of shares for share swap matches the planned issuance quantity. After the
deregistration of Hangqilun B shares the investor register will be transferred to Hirisun. Hirisun
will calculate the number of Hirisun shares obtained by all registered investors after the share
swap according to the above fractional share treatment principles and update the share details of
each B-share investor into the A-share investor register.
13. General Meetings of Shareholders
Shareholders may attend the general meetings of shareholders in person or by proxy to
exercise voting rights. Requirements and documents for shareholders and shareholder
representatives to attend meetings are detailed in the notice of the general meeting of shareholders
to be disclosed by the listed company in due course.14. Cancellation of Transfer-Restricted Accounts
When the balance of Hirisun A-shares in an investor's transfer-restricted account reaches zero
the securities company where the transfer-restricted account is traded may apply for the
cancellation of such account.
15. Handling of Pledges Freezes and Non-Trading Transfers for Transfer-Restricted
Accounts
1. Pledge and Non-Trading Transfer Services: Handled according to the relevant business rules of
CSDC.
2. Judicial Matters: Each securities company and CSDC will provide assistance in enforcement in
accordance with the law.Hangzhou Turbine Power Group Co. Ltd.November 52025Appendix I:
Declaration Form for Correspondence between A/B-share Securities
Accounts and Custody Units
Account B-Share Custody Unit A-Share Custody Unit
Account Number of
Account Name Number of (Required) (Required)
Number of Hangqilun B
Name of of Hangqilun B Hangqilun B
S/N A-Share Shares Held
Settlement Shareholder Shareholder's
Securities (Shares)
Participant (Required) B-Share Custody Custody Custody Custody
(If any) (Required)
(Required) (Required) Unit Unit Unit Unit
Number Name Number Name
Note: When securities companies consolidate shareholder declaration information they shall
fill in the A-share custody unit information regardless of whether the shareholder has opened an
A-share account.Name of Handling Person:
Contact Phone Number:
Full Name of Settlement Participant (Seal):
Declaration Date: ___________Appendix II:
Declaration Form for Securities Accounts and Custody Units of Investors of Hangqilun
B-Share Not Trading Domestically
I/We_______________ Identity Number:_______________ Shenzhen B-Share Securities
Account Number: ________________ being an overseas investor in Hangqilun B not trading
domestically hereby declare that as I/We have determined custody matters with a domestic
securities company (Company Name: ____________) all Hirisun (Stock Code: 300277) shares
obtained from the share swap of Hangqilun B shares (Total shares ____________) held by me/us
_________________shall be registered to (A-Share Securities Account Number if any):
_______________ and custodied to (Securities Company Name): _______________ Shenzhen
A Custody Unit Number: ____________.Name of Declarant/Company: ____________
Identity Type of Declarant/Company: ____________
Identity Number of Declarant/Company: ____________
Signature (Seal) of Declarant/Company: ____________
Declaration Date: ___________
Handling Person of Securities Company:
Contact Information:
Full Name of Domestic Securities Company Settlement Participant (Seal):Appendix III:
Contact Information for CITIC Securities Inquiries and Business Handling
CITIC Securities Company Limited Zhejiang Branch
Contact Person (Chinese):Huang Lei 86-0571-85772223
Contact Person (English): Pan Xinchen 86-0571-87995380
E-mail：hql-zj@citics.com
Fax: 86-0571-85166500
Address: 19F Dikai Silver Center No. 29 Jiefang East Road Shangcheng District Hangzhou City
Zhejiang ProvinceAppendix IV:
Contact Information for ICBC Inquiries and Business Handling
ICBC Hangzhou Branch
Contact Person (Chinese):Wang Yang 0571-87043551
Contact Person (English): Weng Xiaoying 0571-85109607
E-mail：365306561@qq.com
Address: No. 29 Qingchun RoadGongshu District Hangzhou City Zhejiang Province
沪公网安备31011802005267号
