The Board announced that on 11 October 2023 (after trading hours), Hangzhou Gangze (as the lessee), being an indirect wholly-owned subsidiary of the Company, entered into the Property Rental Agreement 1 and the Property Rental Agreement 2 with Lessor 1 and Lessor 2 Hangzhou Binjiang Real Estate Group Co.,Ltd (as the lessors), being Independent Third Parties, in respect of leasing Property 1 and Property 2 respectively each for a lease term of nineteen years and six months commencing from 12 April 2024 to 11 October 2043 (both days inclusive), subject to the terms and conditions provided therein. Parties: Hangzhou Gangze, as the lessee and Hangzhou Binjiang Real Estate Group Co. Ltd., as the lessor.

Leased Property: Part of Unit 101 of a property located at 55 Fengqidong Road, Shangcheng District, Hangzhou, Zhejiang Province, the PRC. Rental area: 2,179.48 sq.m. Handover date: 12 October 2023. Use of Property: Property 2 is for commercial (non-catering) use.

Lease Term: Nineteen years and six months commencing from 12 April 2024 to 11 October 2043 (both days inclusive). The period commencing from 12 October 2023 to 11 April 2024 is a rent-free period. Rent: Rent includes the rent payable to lease Property 2, which does not include property management fees, water usage fees, electricity usage fees, telecommunication fees, internet fees, air-conditioner fees and other actual fees incurred when using Property 2. Hangzhou Gangze should bear the property management fees, water usage fees, electricity usage fees, telecommunication fees, internet fees, air-conditioner fees and other actual fees incurred when operating Property 2. Based on the rental area, the total rent payable is RMB 43,443,845 (tax included).

Payment terms: During the Lease Term of Property 2, under the principle of "pay before use", rent shall be payable in advance every six months (each payment term of six months). Hangzhou Gangze shall pay the rent in the form of RMB bank transfer as agreed in the Property Rental Agreement 2. Rental deposit: Hangzhou Gangze should pay rental deposit of RMB 297,000 to Lessor 2 before 12 October 2023. Renewal or termination term: Hangzhou Gangze shall provide written request to Lessor 2 on renewal of the Property Rental Agreement 2 three months prior to the expiration of the Lease Term of Property 2, then both parties shall consider negotiating the renewal of the Property Rental Agreement 2. The Property Rental Agreement 2 may be terminated in specific circumstances set out in the Property Rental Agreement 2. In particular, Hangzhou Gangze is entitled to terminate the Property Rental Agreement 2 under certain circumstances without breach of contract or liquidated damages payment.

Otherwise, if Hangzhou Gangze terminates the Property Rental Agreement 2 for other reasons not specified therein, it shall pay liquidated damages to Lessor 2 according to the terms of the Property Rental Agreement 2.