CPB uses ratings for both Investor Objectives and Risk Tolerances to determine the types of products and services that are available to you.

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1 Dear Client, Thank you for your continued support of Citi Private Bank ( CPB ). As a leading global wealth manager, we are dedicated to help you manage your assets and achieve your financial goals in line with regulatory requirements. Private Banking Customers In view of guidance issued by the Hong Kong Monetary Authority ( HKMA ) to facilitate the private banking industry s compliance with regulatory requirements governing the sales of investment products, private banks in Hong Kong may provide investment services using private banking approach to clients who meet the criteria to qualify as Private Banking Customers ( PB Customers ). PB Customers are specifically defined to refer to clients with: (i) at least US$ 1million or its equivalent in any other currency in investable assets under CPB s management ( Account Threshold ); or (ii) at least US$3million or its equivalent in any other currency in investable assets with other financial institutions, as evidenced by supporting documentation. Investable assets comprise securities, deposits and certificates of deposits. CPB provides investment services to clients who meet the criteria to qualify as PB Customers. We deploy a holistic approach to understand each PB Customer s financial circumstances and preferences, and we assess our client s suitability for investment products on a portfolio basis under an agreed Investment Mandate. Investment Mandate Based on information you provide to us from time to time, your Investment Mandate with CPB is documented in your Suitability Confirmation Letter, which is/will be sent to you at the time of account opening and periodically throughout our relationship. It includes information such as your investment objective, risk tolerance, investment experiences and knowledge and account relationship type. In order to assist you to better understand how we determine the types of products and services that are available to you, we would like to provide you with additional information on the different components of your Investment Mandate, as well as CPB s portfoliobased approach to conducting suitability. CPB uses ratings for both Investor Objectives and Risk Tolerances to determine the types of products and services that are available to you. 1. Investment Objective There are five selection choices for Investment Objective: Capital Preservation - A preference for preservation/relative safety of invested capital over return on investments. Investors who prefer to hold cash, time deposits and/or lower risk fixed income instruments. Income A preference for investments primarily intended to generate income rather than capital appreciation. Growth & Income A preference of investments that offer some of income and capital appreciation. Investors who are willing to subject their portfolio to some risk for potential growth and a level of income commensurate with their overall risk tolerance.

2 Growth A preference for assuming a certain level of risk that is related to the pursuit of capital appreciation generally due to company performance, general market appreciation, income reinvestment or a combination thereof. Speculation/Trading A preference for investments or trading strategies that may assume higher-than-normal market risks with the hope of commensurate gains. Clients may engage in tactical or occasional trading, which may involve higher volatility and variability of returns. 2. Risk Tolerance There are four levels of Risk Tolerance: Conservative Investors who emphasize preservation of principal over return on investment. Moderate Investors willing to subject some portion of their principal to increased risk in order to generate a potentially greater rate of return. Aggressive Investors who emphasize return on investment over principal preservation. They are willing to subject a large portion of their portfolio to greater risk and market value fluctuations in anticipation of a potentially greater return on investment. Very Aggressive Investors who emphasize return on investment over principal preservation. They are willing to subject their entire portfolio to greater risk and market value fluctuations in anticipation of a potentially greater return on investments 3. Investor Rating Clients engaging in investment activities are assigned an Investor Rating by CPB. The Investor Rating is derived from the information provided during the suitability assessment, which include measures of your Risk Tolerance and Investment Objective for the account, your time horizon, liquidity requirements, and general knowledge and experience of investments. The Investor Rating ranges from 1 (the most conservative) to 6 (most aggressive). Risk Tolerance Capital Preservation Investment Objective (Investor Rating) Income Growth & Income Growth Speculative/ Trading Cap on Investor Rating ( IR ) for EG Conservative (1) (2) (2) 2 Moderate (2) (3) (3) (3) 3 Aggressive (4) (4) (4) (5) 5 Very Aggressive Not Valid (5) (5) (6) (6) 6

3 4. Product Rating Each investment product offered by CPB is assigned a Product Rating (PR) on the basis of a six-point scale with a rating of 1 representing the lowest indication of risk and a rating of 6 representing the highest indication of risk. Product Ratings reflect both a quantitative and qualitative assessment of a given product, relate directly to the product s volatility and potential for loss in capital value. The Product Rating balances quantitative and qualitative factors differently depending on the specific asset class. The following descriptions provide general guidance on what product ratings are intended to indicate. Investors must understand that market conditions change and the product s risk may increase or decrease over its life. If you require further clarification on product ratings please ask your Relationship Professional. Product Rating Risk Indicator Description of Product Rating Note: the term risk of loss as used below refers to an indication of a product s susceptibility to a negative change in its realizable value over a one year period in normal market conditions. 1 Very Low Negligible risk of loss and high certainty of being able to obtain a price at which the product can be liquidated daily. 2 Low Some risk of loss mitigated by reasonably high certainty of being able to obtain a price at which the product can be liquidated quickly. 3 Moderate Material risk of loss associated with fairly volatile markets, mitigated by reasonably high certainty of being able to obtain a price at which the product can be liquidated quickly under normal market conditions. 4 Moderately High Significant risk of loss associated with higher volatility markets, the possibility of material event risks such as extreme market price changes, greater risk of corporate failure, and erratic liquidity conditions, mitigated by reasonable certainty of being able to obtain a price at which the product can be liquidated within a reasonable timeframe under normal market conditions. 5 High Very significant risk of loss associated with strategy and event risks, erratic price and liquidity conditions and/or products with extended redemptions terms. 6 Very High Subject to high event risks, material uncertainty on the realizable value of assets and lack of redemption rights, therefore very significant risk of loss in the event of a forced sale. The following table provides a high-level mapping of product types by product rating. The product rating indicated below generally refers to the intrinsic risk to capital of the product type and does not take into account other risks such as foreign exchange and leverage.

4 Product Type Money Market Product Rating Short-term money market products Long-term money market products Debt Short-term to medium term, investment grade debt securities Non-investment grade debt securities Equities Publically listed equities Other equities Mutual Funds Structured Products Derivatives Money market, short-term investment grade debt, large cap equities Principal protected structures Multi-asset strategies, complex strategies Non-principal protected structure Derivatives 5. Account Relationship Types Account Relationship Types contribute to determining what products and services a client may execute within a given account, and the nature of the Bank s and client s obligations to each other, especially as regards provision of information. CPB offers three different types of accounts: Recommended Account, Designated Account and Trading Account. 5.1 Recommended Account In a Recommended Account relationship, you will receive information from us, including recommendations, on various investments and also carry out non-advised or unsolicited transactions in relation to a wide range of products. We do not directly receive a fee for such information and recommendations, but may receive fees, for example, in connection with the execution of transactions. Fees will vary depending on the types of products and services you select, and will be communicated to you in the related documentation. Please also note the following: A Recommended Account relationship is not a fiduciary relationship and as a result, we will not be under any obligation to provide ongoing advice in relation to your investments. We will be under no obligation to bring investment opportunities to your attention or to update the information or advice provided unless we have agreed in writing to maintain your portfolio under continuous review and provide specific recommendations from time to time. We are not obliged to provide periodic portfolio reviews. Periodic portfolio reviews will not be provided to you unless: (a) it is required by local laws or regulations; or (b) we have specifically agreed with you in writing to provide such service.

5 5.2 Designated Account If you enter into formal discretionary investment management agreements with us, in which you pay Citi a fee for discretionary investment management services with respect to an account, such account would be a Designated Account. In a Designated Account relationship, Citi has discretionary trading authority over the account and is not required to obtain your authorisation prior to executing a transaction within the account. There will be periodic portfolio reviews, which may include (i) a review of the products in your portfolio and (ii) recommendations or reporting as stipulated in the written agreement between us. 5.3 Trading Account In a Trading Account relationship, we provide you with access to an investment platform solely to allow for the execution of non-advised or unsolicited transactions pertaining to a more limited range of products than are available in a Recommended Account Relationship. We receive a fee in connection with the execution of such transactions. Portfolio reviews and portfolio assessments are not provided given the nature of the account. A Trading Account relationship is not a fiduciary relationship, and we will not be under any obligation to provide ongoing advice in relation to your investments or to bring investment opportunities to your attention. The client profile for a Trading Account relationship, in addition to personal information, may consist only of information related to your product-category knowledge and experience so as to establish the range of products available to you within your account. 6. Aggregated Portfolio Risk Rating and Transaction Risk Assessment (applies only to Recommended or Designated Account Relationships) The Aggregated Portfolio Risk Rating can be calculated for your investment portfolio using a Weighted Average Adjusted Risk Rating (WAARR). The WAARR score for your portfolio, as calculated from time to time, uses Product Ratings to capture the risk associated with each component of a portfolio. WAARR is a simple model which is used to calculate an aggregated risk rating for all of the products in your investment portfolio, on a scale ranging from 1.5 to 6.5. The Transaction Risk Assessment process involves our assessment of whether a transaction is within your risk tolerance and investment objective, as determined by your Aggregated Portfolio Risk Rating - measured using the WAARR score - and your Investor Rating. This methodology is intended to ensure that the impact of a proposed transaction on your portfolio risk is consistent with your Investor Rating. When your portfolio s WAARR score exceeds your Investor Rating, we will alert you on the mismatch and seek your advice on whether to proceed, or rebalance. At times we may seek management review and require you to consider whether you wish to proceed, and if so provide some further written authority.

6 What should you do? It is important that we keep our information about your financial or personal circumstances current as we will use such information to determine the types of products and services that are available to you. Please review your Suitability Confirmation Letter together with the additional information provided in this letter carefully and contact your private banker if you do not agree or if you have any questions relating to the contents thereof. Thank you for taking the time to review this important information. We look forward to serving you in the future. Sincerely, Citi Private Bank