The Board of China Development Bank Financial Leasing Co., Ltd. announced that on 18 March 2024 (after trading hours), the Company (as the Lessor) entered into the Finance Lease Agreement with the Lessee, pursuant to which, (i) the Hebei Hongmeng No. 2 Wind Power Co., Ltd. (Lessor) purchased the Leased Assets from the Lessee at a consideration of RMB1,400,000,000, and (ii) the Lessor agreed to lease the Leased Assets to the Lessee with a lease period of 180 months. The Leased Assets are wind power generation facilities located in Kangbao County, Zhangjiakou City, Hebei Province, the PRC.

The net book value of the Leased Assets is approximately RMB 1,460,000,000 in total. The Lessee does not separately calculate the profits before and after tax of the Leased Assets. Lease Period is 180 months.

Pursuant to the Finance Lease Agreement, the Lessor agreed to lease the Leased Assets to the Lessee. The rent, including value-added taxes, is calculated and paid in RMB and is comprised of lease principal and lease interest, of which, the lease principal is of the same amount as the transfer consideration, totaling RMB 1,400,000,000. The total amount of lease interest for the lease period is approximately RMB 622,319,000.

The lease principal and lease interest shall be paid by the Lessee to the Lessor on a quarterly 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 net book value of the Leased Assets and the prevailing market prices of the same category of finance lease products in the PRC. Hebei Hongmeng New Energy Co., Ltd. undertakes joint liability guarantee in respect of the debt commitment by the Lessee under the Finance Lease Agreement.