Dear customer

As the delivery period for sc2306, fu2306, and lu2306 futures contracts approaches, customers holding the aforementioned contracts are requested to confirm their position intentions in advance and provide timely feedback to our service department to prepare accordingly. The delivery risks related to the above contract are now indicated as follows:

（1） Last trading day

The last trading day of contracts sc2306, fu2306, and lu2306 is May 31, 2023.

（2） Delivery unit

The delivery unit for crude oil, fuel oil, and low sulfur fuel oil futures is the same as the trading unit, that is, one hand can participate in the delivery.

（3） Self inspection of delivery qualification

1. Delivery invoice: able to deliver or receive value-added tax ordinary invoices for crude oil/fuel oil/low sulfur fuel oil (tax exempt).

2. Tax exemption filing:

When domestic institutions apply for tax exemption for crude oil/low sulfur fuel oil futures bonded delivery business for the first time, they should communicate with the competent tax authority in advance, submit a written explanation for engaging in crude oil/low sulfur fuel oil futures bonded delivery business, and handle tax exemption filing;

When participating in the fuel oil futures bonded business for the first time, in addition to handling tax exemption filing, it is also necessary to communicate with the competent tax authority in advance to confirm the invoicing matters.

3. Electronic warehouse receipt system: It has been activated and can be logged in and used normally.

（4） Closing time cut-off point

Customers without delivery qualifications or with no intention of delivery should promptly close their positions:

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Please pay timely attention to the account's position situation and fully consider the liquidity of contracts approaching the delivery period. If transactions are inactive or prices are discontinuous, please adjust your position as soon as possible.

（5） Prompt for cancellation of discount on holding margin

Please pay attention to replenishing the position deposit in advance and pay attention to financial risks

Fu2306, sc2306, and lu2306 contracts will cancel the one-way margin discount from May 24, 2023 when settled.

（6） Preparation before delivery

1. Delivery handling fee: The fee standard has been agreed upon, and if not agreed upon, it will be charged according to the company's default standard.

2. Position situation: Adjust the position in a timely manner based on the planned delivery quantity, and the position should meet the limit requirements (if the speculative limit is exceeded, apply for hedging or arbitrage limit in advance and build the position in a timely manner).

After the closing of the market on May 31, 2023 (the last trading day), the same customer's long and short positions in the same contract will enter the delivery process. If a customer needs to deliver a one-way position, please make sure to complete the position adjustment.

3. Buyer Customer Preparation:

3.1 Reserve sufficient payment in the futures account before May 31, 2023;

3.2 Submit accurate and complete invoicing materials to our company (including invoicing information, invoicing requirements, and mailing address);

3.3 Purchase and delivery intention (!! The warehouse receipt purchased for delivery may not be consistent with the delivery intention!! If the paired warehouse receipt cannot be accepted, it may be any goods that meet the delivery quality standards. Please be sure to close the position in advance to avoid losses or other possible consequences caused by entering the delivery!!):

Customers can submit their buyer's intentions through the warehouse receipt system on their own from May 29, 2023 to the morning of June 1, 2023, before the close of the market.

4. Seller Customer Preparation:

4.1 Timely prepare sufficient commodities that meet delivery quality standards and exchange requirements, conduct delivery forecasts, register sufficient valid standard warehouse receipts, or purchase sufficient valid standard warehouse receipts;

4.2 Sufficient and valid delivery warehouse receipts should be authorized to our company for delivery by May 31, 2023 at the latest (the pledged warehouse receipts must be authorized to complete the transfer of pledge delivery on the morning of June 1, 2023);

Special reminder: A valid warehouse receipt should meet the following requirements:

The payment deadline for storage fees must cover June 2, 2023.

The payment deadline for storage fees must cover June 7, 2023.

4.3 Ensure that there is sufficient invoice amount, and the delivery invoice must be delivered to our company before the morning of June 7, 2023.

If you are interested in participating in the delivery of crude oil, fuel oil, and low sulfur fuel oil futures, please carefully read the above business and risk prompts, carefully study the relevant rules, and prepare accordingly.

CITIC Futures Co., Ltd