Jiangsu Expressway Company Limited and its subsidiaries: Guangjing Xicheng Company, Longtan Bridge Company, Zhendan Company, Wufengshan Company, Ninghu Investment Company, YS Energy Company, Ninghu Properties Company, Hanwei Company, and Yangtze River Management Company) entered into an agreement with Factoring Company in respect of carrying out factoring business. The term of the agreement is from 1 September 2023 to 30 April 2024, and the factoring amount shall not exceed RMB 50 million. In order to further stabilize the supply chain and promote the Company's supply chain management, the Company intends to carry out factoring business with Factoring Company, whereby Factoring Company will provide factoring services for accounts receivable to suppliers that provide the Company and its subsidiaries with services such as emergency protection, development and maintenance of operation information system and smart transportation infrastructure.

The expenses payable by the service suppliers to Factoring Company shall be determined after arm's length negotiations between such service suppliers and Factoring Company, and neither the Company nor its subsidiaries shall participate in such negotiations or discussions. Factoring Company shall bear the relevant risks of the factoring business, particularly in cases where the service suppliers fail to perform services (whether in terms of quantity or quality) to the Company or its subsidiaries. The Company and its subsidiaries will not make payments solely based on invoices sent by service suppliers, and will only make payments for services that have been completed and met the requirements.

The Company and its subsidiaries will not incur any costs and expenses as a result of the factoring services provided by Factoring Company to service suppliers in respect of the accounts receivable. The Company and its subsidiaries will consider the service quality, capability, price and content of supply of each service supplier to decide which supplier to choose. Whether the service providers will use the factoring services provided by Factoring Company will not be considered.

The Company entered into a framework agreement with Factoring Company in this regard. The factoring period is from 1 September 2023 to 30 April 2024. The total amount of factoring business shall not exceed RMB 50 million (among which, not more than RMB 20 million in 2023 and not more than RMB 30 million from 1 January to 30 April 2024).

The total factoring amount in respect of the Company shall not exceed RMB 21 million (not more than RMB 7.5 million in 2023 and not more than RMB 13.5 million from 1 January to 30 April 2024), the total factoring amount in respect of Guangjing Xicheng Company shall not exceed RMB 2 million (not more than RMB 1 million in 2023 and not more than RMB 1 million from 1 January to 30 April 2024), the total factoring amount in respect of Longtan Bridge Company shall not exceed RMB 3 million (not more than RMB 1 million in 2023 and not more than RMB 2 million from 1 January to 30 April 2024), the total factoring amount in respect of Zhendan Company shall not exceed RMB 2 million (not more than RMB 1 million in 2023 and not more than RMB 1 million from 1 January to 30 April 2024), the total factoring amount in respect of Wufengshan Company shall not exceed RMB 2 million (not more than RMB 1 million in 2023 and not more than RMB 1 million from 1 January to 30 April 2024), the total factoring amount in respect of Ninghu Investment Company shall not exceed RMB 2 million (not more than RMB 1 million in 2023 and not more than RMB 1 million from 1 January to 30 April 2024), the total factoring amount of YS Energy Company shall not exceed RMB 8 million (not more than RMB 3 million in 2023 and not more than RMB 5 million from 1 January to 30 April 2024), the total factoring amount in respect of Ninghu Properties Company shall not exceed RMB 4 million (not more than RMB 2 million in 2023 and not more than RMB 2 million from 1 January to 30 April 2024), the total factoring amount in respect of Hanwei Company shall not exceed RMB 5 million (not more than RMB 2 million in 2023 and not more than RMB 3 million from 1 January to 30 April 2024), and the total factoring amount of Yangtze River Management Company shall not exceed RMB 1 million (not more than RMB 0.5 million in 2023 and not more than RMB 0.5 million from 1 January to 30 April 2024). The caps are estimated on the basis of the projected amount of small contracts of the Company and the relevant subsidiaries during the relevant periods and on the assumption that only a small portion of service providers would require such factoring services. In the event that the caps are insufficient, a separate agreement will be reached between the parties and the Company will comply with the disclosure and/or shareholders' approval requirements under the relevant Listing Rules.