On 30 April 2026, PICC Property and Casualty Company Limited (PICC P&C) executed a Supplemental Agreement with wholly owned PICC Group subsidiary PICC Asset Management Company Limited (PICC AMC), revising the fee structure for the insurer’s entrusted asset management mandate.

The new arrangement, effective from 1 May 2026 to 31 December 2027, replaces the previous flat-rate model (weighted average cap 0.08%) with a three-tier mechanism: • Basic fixed management fee: 0.068% per annum on daily net asset value. • Floating management fee: 0%–0.012% per annum, determined by investment performance relative to targets set in the insurer’s guidelines. • Excess performance incentive: up to 0.008% per annum once predefined outperformance thresholds are met.

Under this structure, the total annual fee rate will range between 0.068% and 0.088%, in line with the 0.06%–0.12% range observed at four peer insurers reviewed by PICC P&C. Fees are accrued daily and settled within 90 business days after each half-year end.

The agreement does not alter the previously approved annual caps for combined fees payable to PICC AMC and PICC Capital Insurance Asset Management Company Limited: • RMB 590.00 million for the year ending 31 December 2026 • RMB 650.00 million for the year ending 31 December 2027 • RMB 380.00 million for the period 1 January – 30 June 2028

Historical aggregated payments to PICC AMC and PICC Capital were RMB 297.00 million in 2023, RMB 304.00 million in 2024, RMB 364.00 million in 2025, and RMB 107.00 million for the first quarter of 2026.

Because PICC AMC is a connected person, the transaction remains classified as a continuing connected transaction under Chapter 14A of the Hong Kong Listing Rules. With annual caps exceeding 0.1% but below 5% of the applicable percentage ratios, the deal requires announcement, annual review, and reporting, but is exempt from independent shareholders’ approval.

PICC P&C states that the revised fee model better aligns manager and shareholder interests by linking remuneration to investment outcomes, while existing internal monitoring systems, real-time cap tracking, and annual internal audits will remain in place to ensure compliance.