China Isotope & Radiation Corporation (company) entered into the Renewed Supply Agreement with China National Nuclear Corporation (CNNC) on 31 October 2023, pursuant to which CNNC and its associates (excluding the Group) will purchase from the Group, and the Group will supply to CNNC and its associates (excluding the Group) the following products, i.e. radioactive source products, radioactive instruments and pharmaceuticals and other products, and the Group will provide detection, recycling, transportation and reloading services related to the sales of such products, research services related to research and development projects, and other services. Term: The agreement will come into force on 1 January 2024 and expire on 31 December 2025, subject to renewal as may be agreed and negotiated upon by both parties. Reasons for the transaction: The Group sells radioactive source products, radioactive instrument and pharmaceuticals to CNNC and/or its associates in its ordinary and usual business.

For example, the Group sells isotope products to CNNC and/or its associates which are used in their engineering projects and radioactive products sold to their hospitals. The Group plays a critical role in the nuclear technology application business of CNNC and the research services provided by the Group to CNNC are expected to increase gradually in the next two years. As a result, resources could be gathered to facilitate the success of key research and development projects of CNNC, creating synergy effect of enhancing the competitiveness of both CNNC and the Group along the whole industrial chain.

Pricing Policy: The specific prices set by the Group for the sales of products to CNNC and its associates (excluding the Group) shall be determined by relevant parties through fair negotiation, and shall not be more favourable than those entered into between the Company and Independent Third Parties in the latest three months. The Company shall make reference to the historical prices of the products and collect information on market price and profit margin of relevant products from industry associations, industry peers and other channels, and determine the prices based on the average market profit margin or on cost-plus basis in order to ensure the fairness and reasonableness of the prices of products and services provided. The relevant cost consists of raw materials, ancillary materials, depreciation, labor cost, energy, administrative expense and finance cost.

With respect to services provided in relation to transportation, the service cost shall be reflected in the cost of sales of products accordingly. The price of the research services provided by the Group to CNNC and its associates (excluding the Group) shall be mainly determined by both parties through negotiation, having taken into account the relevant research cost.