On October 6, 2021, United Time Technology Co., Ltd. ("UTime SZ"), a consolidated subsidiary controlled by the Company through certain variable-interest-entity agreements, entered into an investment agreement (the "Investment Agreement") with the local government of Jiangnan, Nanning pursuant to which UTime SZ agreed to invest an aggregate of RMB 150 million (approximately USD 23.2 million) by establishing manufacturing facilities and producing electronic devices at Jiangnan, Nanning. The Company agreed to incorporate an operating entity with at least USD 2 million of investment from foreign sources by October 21, 2021 and to begin manufacturing electronic devices off the assembly lines installed at the factory located at Jiangnan, Nanning by February 6, 2022. The Jiangnan Government agreed to provide to the Jiangnan Subsidiary various benefits, including discounted rent for local factory and worker's dormitories, cash subsidies against the relocation of manufacturing equipment and logistics expenses and coordination with the financial institutions on granting credit lines or loans to the Jiangnan Subsidiary. UTime SZ further agreed not to use the rented factory for subleasing or any other purposes without the prior consent of the Jiangnan Government or to use the cash subsidies for non-operating purposes, including paying dividends to equity holders.