China Travel International Investment Hong Kong Limited announced that reference is made to the announcement of the Company dated 28 December 2018 in respect of the continuing connected transactions in relation to the provision of management services by the Company to the CTS Real Estate Group under the 2018 Management Services Master Agreement. As the 2018 Management Services Master Agreement has expired on 31 December 2021, the Company entered into the 2022 Management Services Master Agreement with China CTS on 18 March 2022, pursuant to which the Company will continue to provide management services to the CTS Real Estate Group for a term commencing from 18 March 2022 and ending on 31 December 2024. It is contemplated that individual specific agreements will be entered into between the Group and the CTS Real Estate Group in respect of the transactions within the scope of the 2022 Management Services Master Agreement. The terms of the specific agreements will be entered into in accordance with the principles in the 2022 Management Services Master Agreement. In the event that there is any conflict between the terms of any such specific agreement and the terms of the 2022 Management Services Master Agreement, the terms of the 2022 Management Services Master Agreement shall prevail. Pursuant to the 2022 Management Services Master Agreement, the principal scope of the management services to be provided by the Company includes, among other things: management services in respect of the strategic and project development and management, business operations, finance, human resources, marketing and administration of the CTS Real Estate Group; preparation of annual budgets, operational plan, and investment and financing proposal, and their implementation after obtaining approval from the board of directors of the CTS Real Estate Group; formulation of the management structure plans and basic management systems for the CTS Real Estate Group; appointment or dismissal of the management personnel of the CTS Real Estate Group; preparation of resolutions for the purposes of board meetings or shareholders' meetings of the CTS Real Estate Group; and other operational-related duties and responsibilities not under the direct authority of the board of directors or the shareholders of the CTS Real Estate Group. The management fee under the 2022 Management Services Master Agreement will be payable by the
CTS Real Estate Group in cash on a quarterly basis.