PICC: Administrative penalties and litigation related to the private placement do not constitute an obstacle to the issuance.

PICC announced that King & Wood Mallesons (Beijing) issued a supplementary legal opinion regarding the company's issuance of A-shares to specific targets. From January 1, 2023 to June 30, 2026, the company and its domestic branches received a total of 374 administrative penalties of more than RMB 100,000 each, involving fines of RMB 146 million, and one additional penalty of suspension from accepting new agricultural insurance business. None of these constitute major illegal acts and do not constitute a substantive obstacle to the issuance. As of June 30, 2026, the company, as a defendant, had a total of 42 pending major litigation and arbitration cases involving amounts of more than RMB 40 million each, with total amounts in dispute of RMB 7.905 billion, accounting for 2.32% of equity attributable to shareholders of the parent company. These will not have a material adverse impact on daily operations and financial condition, and do not constitute an obstacle to the issuance.