The Board announced that on 31 October 2023 (after trading hours), China Development Bank Financial Leasing Co., Ltd. (as the Lessor) agreed on main terms of the New Finance Lease Agreement with the Lessee, pursuant to which the Company intended to (i) purchase the Leased Assets from the Lessee at a consideration of RMB 3,000,000,000, and (ii) agree to lease the Leased Assets to the Lessee with a lease period of 72 months . The Company will convene the 2023 second extraordinary general meeting to consider and, if thought fit, approve, among other things, the entering into of the Transaction and the New Finance Lease Agreement. To the best of the Directors' knowledge, having made reasonable enquiries, no Shareholder is required to abstain from voting at the 2023 second Extra general meeting for the approval of entering into of the Transaction and The New Finance Lease Agreement.

The Company as the lessor will determine the execution date and enter into the New Finance Lease Agreement With the Lessee, pursuant towhich the Company intended to (i") purchase the Leased Assets from The Lessee at a consideration of RMB 3,000,000000, and (ii) agreed to lease the Leased Assets To the Company's business development strategy. The Leased Assets are the manufacturing equipment of electronic special materials located in total appraised value of approximately RMB3,045,800,000. The Lessee does not separately calculate the profits before and after tax of the Leased Assets.

Lease period: 42 months. Pursuant to the New Finance Lease Agreement, the Company agreed to lease back the Leased Assets to the Lessee. The rent, including value-added taxes, is calculated and paid in RMB and comprised of lease principal and lease interest.

In particular, the lease principal is of the same amount as the transfer consideration, totalling RMB3,000,000,000. The total amount of lease interest for the lease period is approximately RMB420,000,000. The lease principal and lease interest shall be paid by the Lessee to the Lessor on a quarterly basis in installments during thelease period.