On 18 January 2017, Huatai International Finance Limited received the Notice of Rectification Measures on Huatai Securities Co., Ltd., which is a notice on administrative regulatory measures from the CSRC, the original text of which is as follows: "Upon investigation, CSRC found that the business departments and the asset management subsidiaries of company have marketed private asset management products to the public through a WeChat public account under company name and official website. The above conduct has violated Article 39 of the Measures for the Administration of the Customer Asset Management Business of Securities Companies, Article 14 of the Interim Measures for Supervision and Administration of Private Investment Funds and Article 27 of the Regulation on the Supervision and Administration of Securities Companies. As a result, CSRC have decided to impose administrative regulatory measures of rectification on company in accordance with Article 33 of the Interim Measures for Supervision and Administration of Private Investment Funds and Article 70 of the Regulation on the Supervision and Administration of Securities Companies. On the same day, Huatai United Securities, a majority-owned subsidiary of the Company, received the Decision on Issuing a Warning Letter to Huatai United Securities Co., Ltd., which is a notice on the administrative regulatory measures from the CSRC, the original text of which is as follows: "Upon investigation, it found that, as the financial advisor of Beijing Leadman Biochemistry Technology Company Limited in respect of the projects for issuance of shares, purchase of assets and ancillary fund-raising, company has not conducted adequate investigation into major customers and suppliers of the underlying assets. The above conduct has violated Articles 3 and 24 of the Administrative Measures on Financial Advisory Business of Listed Companies for Mergers and Reorganization. In accordance with Article 39 of the Administrative Measures on Financial Advisory Business of Listed Companies for Mergers and Reorganization, it has decided to impose an administrative regulatory measure on company by way of issuing a warning letter. The Company and Huatai United Securities will adopt rectification measures, further adjust relevant procedures and enhance the compliance awareness of relevant employees in accordance with relevant laws, administrative regulations and the requirements of the CSRC so as to prevent similar events from happening in future operation.