CZBANK (02016) announced that to promote high-quality development, strengthen its capital foundation, and reduce capital costs, the board of directors has resolved to issue capital bonds in a timely manner based on actual business needs. This matter is subject to review and approval by the shareholders' meeting and obtaining approval from relevant regulatory authorities.

Upon obtaining approval from the shareholders' meeting and relevant regulatory authorities, the bank will issue capital bonds under the following terms and conditions:

(1) Issue Size: Capital bonds not exceeding RMB 45 billion.

(2) Instrument Type: Capital bonds, including perpetual capital bonds and Tier 2 capital bonds.

(3) Maturity: (a) Perpetual capital bonds: consistent with the bank's continuous business operation period; (b) Tier 2 capital bonds: not less than 5 years.

(4) Redemption Option: Starting from the fifth anniversary of the issuance date, the bank has the right to redeem all or part of the perpetual capital bonds and Tier 2 capital bonds, subject to regulatory approval.

(5) Interest Rate: Determined with reference to market interest rates.

(6) Loss Absorption Method: When trigger events specified in the issuance documents occur, losses will be absorbed through write-down mechanisms.

(7) Use of Proceeds: (a) Perpetual capital bonds: In accordance with applicable laws, regulations and regulatory approval, to supplement the bank's Additional Tier 1 capital; (b) Tier 2 capital bonds: In accordance with applicable laws, regulations and regulatory approval, to supplement the bank's Tier 2 capital.

(8) Resolution Validity Period: From the date of shareholders' meeting approval for the issuance of these capital bonds until 24 months after approval by the National Financial Regulatory Administration.