On 25 October 2018, Beijing Enterprises Environment Group Limited entered into the Renewed Property Escrow Agreement with Beijing Enterprises Holdings Hong Chuang Co. Ltd. ("Beikong Hong Chuang"), pursuant to which Beikong Hong Chuang will extend to provide the Escrow Services to the Company during the term of the Renewed Property Escrow Agreement. The Property subjected to escrow is Block 5 of Beikong Hong Chuang Technology Park which is situated at No. A1, Chaoqian Road of Science and Technology Park in Changping District, Beijing, the PRC. The Property is a six storeys office premises with gross floor area of approximately 4,705 square metres (the gross floor area is subject to finalisation by the surveying and mapping department in Beijing or the premises permit). The escrow period for the Property shall be three years from 1 September 2018 to 31 August 2021. Beikong Hong Chuang shall pay the Rent of RMB 2,575,987 (equivalent to approximately HKD 2,911,000) to the company for the first year of the Escrow Period, which is calculated based on an escrow fee of RMB 1.50 per square metre per day. Both parties agreed to review the Rent for the remaining two years of the Escrow Period based on the market value, subject to an aggregate increment of not more than 20%. During the Escrow Period, the property management fee, heating fee and other expenses incurred (including but not limited to expenses for water, electricity, gas, telecommunication, etc.) in respect of the Property will be borne by Beikong Hong Chuang. Beikong Hong Chuang shall pay all the Rent to the Company in accordance with the terms and payment schedule of the Renewed Property Escrow Agreement, and guaranteed the Company to fulfil all the obligations in the Renewed Property Escrow Agreement even the Property is not sublet to any tenant. The aggregate of the Rent payable by Beikong Hong Chuang to the Company for the four years ending 31 December 2018, 2019, 2020 and 2021 are subject to the annual caps of HKD 3,200,000, HKD 3,500,000, HKD 4,000,000, and HKD 2,800,000 respectively. The annual caps are based on the current annual Rent of RMB 2,575,987 (equivalent to approximately HKD 2,911,000) payable by Beikong Hong Chuang to the company, the potential adjustments to the prevailing market rent generally applicable to similar properties in Beijing during the term of the Renewed Property Escrow Agreement and the exchange rate fluctuations.