The Board of Zhongguancun Science-Tech Leasing Co., Ltd. hereby announced that on June 19, 2024, the Company (as the Lessor) entered into the Finance Lease Agreement with the Lessee, pursuant to which (i) the Lessor shall acquire the Leased Assets owned by the Lessee at a transfer consideration of RMB 45,000,000; and (ii) the Lessor shall lease the Leased Assets back to the Lessee for a term of 48 months, with a total finance lease payment of RMB 50,589,036, which shall include a finance lease principal of RMB 45,000,000 and a finance lease interest income (inclusive of VAT) of RMB 5,589,036. Lessee: a limited company incorporated in the PRC, which is principally engaged in park gas supply, on-site gas supply, and retail business of liquid oxygen and liquid nitrogen. The Leased Assets are air separation equipment, with the appraisal value of approximately RMB 63,352,600.00.

The Lessee does not separately calculate the profits before and after tax of the Leased Assets. The transfer consideration for the acquisition of the Leased Assets under the Finance Lease Agreement will be funded by the Company's internal resources. If the Lessee has properly and fully performed all of its obligations under the Finance Lease Agreement, the Lessee is entitled to acquire the Leased Assets at the consideration of RMB100 in nominal value pursuant to the terms and conditions of the Finance Lease Agreement, upon the expiry of the Finance Lease Agreement.

Under the Finance Lease Agreement, the total lease payment of RMB50,589,036 included the finance lease principal of RMB45,000,000 and the finance lease interest income (inclusive of VAT) of RMB5,589,036 (calculated based on the interest rate of 5.85% per annum). The Lessee shall pay the lease payment to the Lessor at the end of each quarter in installments in accordance with the terms and conditions of the Finance Lease Agreement during the lease period. The terms of the Finance Lease Agreement, including the transfer consideration for the Leased Assets, finance lease principal, finance lease interest income and other expenses, were determined upon arm's length negotiation between the Lessee and the Lessor with reference to appraisal value value of the Leased Assets and prevailing market prices of the same category of finance lease products in the PRC.

The Lessee agreed to pay the security deposit for the Finance Lease Agreement of RMB2,250,000 (bearing nil interests). When the last lease payments are due to be paid, the lease payment and other payables under the final payment will automatically be deducted from the deposit, and the Lessor will refund the Lessee the remaining amount (if any). The guarantee and security arrangements for the Finance Lease Agreement are set out below: (1) The controlling shareholder of the Lessee shall provide joint and several liabilities guarantee for the debts under the Finance Lease Agreement; (2) The Lessee shall provided pledge of accounts receivable under the Finance Lease Agreement; and (3) 100% of the Lessee 's equity interest will be pledged by the controlling shareholder to the Lessor.