Risk Disclosure

Dear Investor: Before participating in the private equity investment activities of the Shanghai Private Equity Association (the "Association"), please carefully read and fully understand the following risk disclosure. Private equity investment is a high-risk activity and is not suitable for all investors.

1. Investment Risk Disclosure

Private equity investment involves the following major risks. Investors should fully understand and evaluate them before making investment decisions:

1. Market Risk

Macroeconomic cycles, industry policy changes, and capital market fluctuations may cause significant declines in investment valuations. PE investment value may fall significantly below investment cost due to market environment changes.

2. Liquidity Risk

PE investments typically have long lock-up periods (generally 3-7 years), during which investors cannot redeem their shares. Even after lock-up, exit depends on IPO, M&A, or equity transfer conditions of portfolio companies, posing risk of inability to liquidate timely.

3. Credit Risk

Portfolio companies may default or go bankrupt due to poor management, financial deterioration, or other reasons, leading to partial or total loss of investment principal and returns.

4. Management Risk

Fund managers' investment decisions, risk control capabilities, and operational management may be inadequate, potentially affecting returns. Key personnel changes may also adversely impact investment management.

5. Policy and Legal Risk

Changes in national laws, regulations, supervisory policies, and tax policies may significantly impact PE fundraising, investment, management, and exit stages.

6. Technology Risk

Technology iteration in portfolio companies' industries may cause their products or services to be substituted, affecting enterprise valuation and investment returns.

7. Other Risks

Including but not limited to operational risk, moral hazard, and force majeure risk.

2. Qualified Investor Requirements

Per the "Interim Measures for the Supervision and Administration of Private Investment Funds," the Association only serves qualified investors meeting the following criteria:

• Possess corresponding risk identification and risk-bearing capacity
• Minimum investment of 1,000,000 CNY per private fund
• Individual investors: financial assets >= 3,000,000 CNY or average annual income >= 500,000 CNY in the past 3 years
• Institutional investors: net assets >= 10,000,000 CNY

3. Investor Declaration

By registering as a member and participating in investment activities, investors are deemed to make the following declarations:

• Meet qualified investor criteria with corresponding risk identification and risk-bearing capacity
• Have fully understood the above risk disclosure and voluntarily assume investment risks
• All information provided is true, accurate, and complete
• Investment funds are from legitimate and compliant sources

4. Important Disclaimer

5. Contact

For any questions, please contact us:

• Email: beijingtuzhu@88.com
• Address: Shanghai