Haidilao International Holding Ltd. entered into an investment and cooperation agreement and a supplemental agreement thereto with the Chengdu Eastern New Area Management Committee on December 19, 2020, pursuant to which the company shall, among others, acquire the land use right of the target land in accordance with laws and regulations, construct and develop the target land as the headquarters complex of the group. The construction of the project is expected to complete in five years. The total investment amount of the project shall not be less than RMB 2.4 billion. The principal terms of the investment and cooperation agreement are set out as follows: Date: December 19, 2020; Parties: the company and the Chengdu Eastern New Area Management Committee; Term: The project is divided in three phases and is expected to complete in June 2026; Proposed Geographical Location: Baijinshan Reservoir Area, Gaoming Town, Chengdu Eastern New Area, PRC; Proposed Site Area: Approximately 1,348 acres; Details of the project: the company shall, among others, acquire the land use right of the target land in accordance with laws and regulations, construct and develop the target land as the company’s headquarters complex. The company’s headquarters complex shall mainly comprise the reception center, the conference center, the corporate history and culture exhibition center, staff dormitories, the new technology exhibition center, the training center, the library, restaurants, hotels, offices and other relevant facilities, etc. The Chengdu Eastern New Area Management Committee shall assist the company in the development, construction and operation of the company’s headquarters complex mainly by, among others, assisting in the business and tax registration as well as various approval and filing requirements in accordance with applicable laws and regulations and providing the infrastructure construction supports. The project will be carried out by the company's wholly-owned subsidiary incorporated in the Chengdu Eastern New Area. The registered capital of project company shall be no less than RMB 100 million, among which RMB 30 million shall be paid up within 60 days from the date of registration. The remaining registered capital shall be fully paid up before the operation of the company’s headquarters complex. The acquisition of the land use right of the target land is subject to the completion of the relevant legal procedures. If the company is unable to successfully acquire the land use right of the target land by bidding, the investment and cooperation agreement shall terminate automatically. Consideration: pursuant to the investment and cooperation agreement, the total investment amount shall not be less than RMB 2.4 billion, which includes the costs of the acquisition, construction and development of the target land. the overall construction period of the project is around five years in three phases. The investment amount will be utilized in instalments on a progressive basis during the overall period. The board considers that the consideration to be paid under the investment and cooperation agreement is fair and reasonable having taken into account the estimated costs of the acquisition, construction and development of the target land, the location of the target land, the current market conditions, business prospects and growth potential of Chengdu. The amount of the consideration will be satisfied mainly by the company's internal resource.