Methodology Change | Solactive-KEDI China Global Leaders TOP3Plus Index | Effective Date 26/11/2025

Today, on the 20/11/2025 Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):

Rationale for Methodology Change

Solactive has determined to add RBICS subindustry “A.I./Large Scale Processing Graphics Controller” and remove the 20% outside of China revenue requirement for all the Semiconductor related subindustries.

Recently, Chinese companies are strengthening their capabilities to enter overseas markets for advanced technologies, supported by government-led incentives. Semiconductors are a core value chain for Chinese companies to secure global capabilities in advanced technologies like AI, thus it plays a unique role in China’s global technology ecosystem.

Unlike finished goods industries, AI semiconductors are technology-driven rather than product-exportoriented. Their global competitiveness often stems from intangible exports such as IP licensing, chip design, and model optimization. Companies like Alibaba, Baidu, and Huawei develop these technologies and generate indirect overseas revenue through global cloud and AI services, even if such activities are not fully captured in official overseas sales data.

In addition, semiconductors function as intermediate goods that support China’s global export competitiveness. Even if semiconductor firms do not directly export, their technologies and components are embedded in globally distributed products.

Hence, applying a strict overseas sales threshold (e.g., 20%) does not fully reflect the sector’s contribution to international trade and technology leadership.

 Allowing this exception would enable the index to better capture companies that play a global technological leadership role, despite limited visible overseas revenue.

Changes to the Index Guideline

The following Methodology changes will be implemented in the following points of the Index Guideline

 Section 2.1  INDEX UNIVERSE REQUIREMENTS

OLD:

6. Security must generate at least 20% of their total revenues outside of China, as provided by FactSet.

NEW:

6. Security must generate at least 20% of their total revenues outside of China, as provided by FactSet. This requirement does not apply to securities classified under the specified semiconductor-related sectors, as defined below.

Defined terms used in this announcement, but not defined herein, have the meaning assigned to them in the respective index guideline of the Affected Indices. The amended version of the index guideline will be available on the effective date.