On 12 March 2024, Hainan Saftower, an indirect wholly-owned subsidiary of China Saftower International Holding Group Limited, entered into the JV Articles with Yiheng Tengyu in relation to the formation of the Joint Venture, which is to be held as to 51% by Hainan Saftower and 49% by Yiheng Tengyu. The principal terms of the JV Articles are summarised below. Scope of business The Joint Venture will be principally engaged in the development and operation of charging facilities for Non-motorised Vehicles.

The Joint Venture has not yet commenced business. It will be recognised as an indirect non-wholly owned subsidiary of the Company and its accounts will be consolidated with those of the Company. Shareholding Structure and Capital commitment: Pursuant to the JV Articles, the Joint Venture is to be held as to 51% by Hainan Saftower and 49% by Yiheng Tengyu.

The Joint Venture will have a registered capital of RMB 10,000,000, which will be contributed by Hainan Saftower as to RMB5,100,000 and Yiheng Tengyu as to RMB 4,900,000, respectively. Each of the members is required to pay up its respective committed registered capital on or before 12 March 2029 pursuant to the JV Articles. The amount of the capital commitment was determined after arm's length negotiation between the Parties, with reference to, among others, the development plans, the business needs and the expected capital requirements of the Joint Venture.

Depending on the financial resources of the Group at the time when Hainan Saftower has to make payment of the registered capital pursuant to the JV Articles, such contribution may be funded by internal resources of the Group or external borrowings.