The Board of China Development Bank Financial Leasing Co., Ltd. announced that on 28 August 2023 (after trading hours), the Company (as the Lessor) entered into the Finance Lease Agreement with Truly (Renshou) High-end Display Technology Limited (the Lessee), pursuant to which the Lessor purchased the Leased Assets from the Lessee at a consideration of RMB 900,000,000, and the Lessor agreed to lease the Leased Assets to the Lessee with a lease period of 36 months. The Leased Assets are the high-end display equipment and other assets located in Sichuan Province, the PRC. The appraised value of the Leased Assets is approximately RMB 1,011,000,000 in aggregate.

The Lessee does not separately calculate the profits before and after tax of the Leased Assets. Pursuant to the Finance Lease Agreement, the Lessor 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.

Of which, the lease principal is of the same amount as the transfer consideration, totaling RMB 900,000,000; the total amount of lease interest for the lease period is approximately RMB 86,000,000. The lease principal and lease interest shall be paid by the Lessee to the Lessor on a semi-annual basis in installments during the lease period. The terms of the Finance Lease Agreement, including the Leased Assets' transfer consideration, lease principal, lease interest and other expenses under the Finance Lease Agreement were determined upon arm's length negotiation between the Lessee and the Lessor with reference to the appraised value of the Leased Assets and the prevailing market prices of the same category of finance lease products in the PRC.

The Lessee has agreed to transfer and/or change the registration of the Leased Assets to the Lessor during the lease period at a total transfer consideration of RMB 900,000,000. The consideration will be paid by the Lessor's self-owned funds and/or commercial loans. At the same time, the Lessor has agreed to lease back the Leased Assets to the Lessee.

The Lessee is entitled to the possession, usage and benefits of such assets. Upon expiration of the lease period, the Lessee may purchase back the Leased Assets from the Lessor at a consideration of RMB 100 in nominal value. Renshou Development of Investment Group Co., Ltd. shall provide a joint liability assurance guarantee for the obligations of the Lessee under the Finance Lease Agreement.