Warrant Risk Disclosure Statement (2005-08-12)

Warrant Risk Disclosure Statement

Different from stocks, warrant trading has a financial leverage effect. Although investors have the opportunity to obtain greater returns at limited costs, they may also suffer full or huge losses in a short time. Before participating in warrant trading, investors should carefully assess their own economic conditions and financial capabilities, and fully consider whether it is appropriate to participate in such leveraged transactions. Before deciding to conduct warrant trading, investors should fully understand the following matters:

1、 Warrants have various risks associated with securities product exchanges.

2、 During the duration of the warrant, the price of the warrant and the price of its underlying securities affect each other. Investors should pay special attention to the impact of the price fluctuation of the underlying securities on the price of the warrant.

3、 The warrants are subject to T+0 transaction.

4、 Prior to the listing of warrants, the issuer shall determine the exercise price, exercise proportion, exercise date and other factors (the exercise price and exercise proportion of warrants will be subject to

5、 Before participating in the warrant transaction, investors should analyze and understand the performance ability of the warrant issuer, such as financial status, credit status, etc., and study the conditions and agreements for the issuance of warrants.

6、 When the warrant expires and there is no other performance value, the warrant will have no value. Investors should also pay attention to whether the agreed terms of the warrant include an automatic exercise mechanism. If there is no automatic exercise mechanism, investors should pay attention to timely exercise to avoid investment losses.

7、 When conducting warrant trading, investors must know whether their securities companies are qualified to engage in warrant trading brokerage services, or their trading qualifications may be partially or completely restricted, and make corresponding arrangements.

The risk disclosure items in this risk disclosure statement are only listed in nature, and fail to list all risks of warrant trading and all factors that may affect the price of warrants in detail. Before participating in the warrant trading, investors should carefully read the warrant issuance prospectus and listing announcement, understand and master other factors that may affect the warrant trading or the warrant price, and be sure that they have made adequate risk assessment and financial arrangements to avoid unbearable losses due to participating in the warrant trading.