Baiying Holdings Group Limited entered into a sale-leaseback transaction with Yanping State-owned Assets under the Finance Lease Agreement. Pursuant to the Finance Lease Agreement, the Purchaser would purchase from Yanping State-owned Assets the Leaseback Assets at the Consideration of RMB 25,000,000 and lease to Yanping State-owned Assets the Leaseback Assets for a term of 36 months in return for Lease Payments. The Leaseback Assets are 1 set of starch and starch emulsion machine, 1 set of sugar machine, 1 set of generator for thermal power plant. The Consideration for the purchase of the Leaseback Assets is RMB 25,000,000. The Consideration payable by the Purchaser was based on the original purchase prices payable by Yanping State-owned Assets for the purchase of the Leaseback Assets as evidenced by the invoices issued by relevant vendors and the valuation report issued by qualified evaluation institution. In determining the amount of the Consideration, the Purchaser has made reference to the original purchase prices of the Leaseback Assets, and determined the amount through arm's length negotiation with Yanping State-owned Assets. Subject to the fulfilment of certain conditions, including, among others, the receipt by the Purchaser from Yanping State-owned Assets of the proof documents in respect of the pledge under the Finance Lease Agreement; evidence of due payments of management fee, security deposit and other fees under the Finance Lease Agreement; and Yanping State-owned Assets' declaration that no encumbrance has been created in respect of the Leaseback Assets, the Purchaser shall pay to Yanping State-owned Assets' the Consideration within 7 business days after the fulfilment of the aforesaid conditions. The Consideration will be financed by the Group's internal resources of RMB 2,000,000 and bank borrowing of RMB 23,000,000. The Purchaser will be entitled to the Leaseback Assets upon the signing of the Finance Lease Agreement. The Leaseback Assets leased from the Purchaser to Yanping State-owned Assets for a term of 36 months commencing from 18 June 2021. The aggregate Lease Payments for the entire lease term is RMB 27,390,000. The Lease Payments shall be payable by Yanping State-owned Assets by 12 quarterly instalments commencing from 18 June 2021. The quarterly instalment in respect of the Lease Payments is RMB 2,282,500. The aggregate Lease Payments for the entire lease term was based on the Consideration plus the total amount of interest agreed to be charged by the Purchaser to Yanping State-owned Assets for the entire lease term. The interest rate for the sale-leaseback transaction under the Finance Lease Agreement is 5.69% per annum. The interest rate was determined by the Purchaser and Yanping State-owned Assets through arm's length negotiation, and in determining the interest rate, the Purchaser has taken into account the prevailing bank lending rate, creditability of Yanping State-owned Assets with reference to its credit track record, as well as the interest rate payable by companies comparable to Yanping State-owned Assets.