On 19 February 2024, Luteng Healthcare Technology, a wholly-owned subsidiary of Landsea Green Life Service Company Limited, as procurer, and Qingyu Elderly Service, as service provider, entered into the Service Procurement Agreement in relation to the procurement of elderly care related services. The contract price of the Service Procurement Agreement is RMB 5,371,000 (tax inclusive). Luteng Healthcare Technology agreed to engage Qingyu Elderly Service to provide elderly care related services, including home services, community activities, and smart health management services.

The service location is located in Nanjing, Jiangsu Province (excluding Liuhe, Lishui and Gaochun). The specific services to be provided by Qingyu Elderly Service are as follows: Home services: Physical assessment, accompanying medical treatment, bathing service, professional escort, rehabilitation training, etc. Community activities: Elderly-themed activities, traditional festival activities, health diagnosis activities, etc.

Smart health management: Tracking health management platform, use of chronic disease management equipment, health testing, special healthy lifestyle guidance services, etc. Qingyu Elderly Service shall provide services to the customers of the designated projects of Luteng Healthcare Technology within 1 day after receiving the written notice from Luteng Healthcare Technology, and the specific service schedule shall be based on the assessment of the customers and the co-ordination of the service personnel; the specific service location and number of people shall be subject to the written notice from Luteng Healthcare Technology. Payment: Within 10 working days after the signing of the Service Procurement Agreement, Luteng Healthcare Technology shall pay 50% of the total contract price, i.e. RMB2,685,500, to Qingyu Elderly Service for the preparatory work of personnel and materials required by Qingyu Elderly Service for the commencement of the services.

Within 10 working days from the date on which Qingyu Elderly Service has provided all the services as agreed in the Service Procurement Agreement, Luteng Healthcare Technology shall pay the remaining 50% of the total contract price, i.e. RMB2,685,500 to Qingyu Elderly Service. The aggregate price of the Service Procurement Agreement will be paid in cash by the Group using its internal resources. Service Term: The service term is from 19 February 2024 to 18 February 2025.

The contract price of the Service Procurement Agreement was determined by the parties after arm's length negotiations and on normal commercial terms after taking into account, amongst other things, (i) the demand for elderly care related services for the Group's projects under management in Nanjing; (ii) the prevailing market price of similar services provided by other suppliers; (iii) all costs, taxes and profits required by Qingyu Elderly Service in completing all of the work under the Service Procurement Agreement; and (iv) the reasons and benefits as detailed in the paragraph headed ``Reasons for and Benefits of Entering into the Service Procurement Agreement'' below. The Group is principally engaged in the provision of property management services, community value-added services and value added services to non-property owners in the PRC. Considering the level of aging population, there is a strong demand for services in respect of elderly care in the community.

Meanwhile, Qingyu Elderly Service has been engaging in the elderly service business for years and possesses extensive experience in the business, holding a leading position in the industry. The Board is of the view that the procurement of the services from Qingyu Elderly Service will enhance the quality of the Group's services and contribute to the sustainable development of its business and is in the interest of the Group. The Directors (including the independent non-executive Directors but excluding Mr. Tian, who has abstained from voting on the relevant Board resolution due to his indirect 50% interest in Qingyu Elderly Service) consider that the terms of the Service Procurement Agreement and the transactions contemplated thereunder are on normal commercial terms, fair and reasonable and in the interests of the Company and the Shareholders as a whole.