On 16 October 2020, Poly Business Commercial Property, a wholly-owned subsidiary of the Company, as lessee, entered into the Property Leasing Agreement with Poly Developments and Holdings, as landlord, for a lease term from 16 October 2020 to 31 December 2021. Lease term is From 16 October 2020 to 31 December 2021. Subject matter: Poly Developments and Holdings agreed to lease the Subject Properties it owned to Poly Business Commercial Property for business management on an as-is basis. Rental expense: The rent payable under the Property Leasing Agreement will be paid in the form of "guaranteed rent + shared rent". Poly Business Commercial Property is required to pay the guaranteed rent in full during the lease term as follows: From 16 October 2020 to 31 December 2020: approximately RMB 36.56 million. From 1 January 2021 to 31 December 2021: approximately RMB 184.50 million. The excess of the actual operating income from the Subject Properties over the amount of guaranteed rent during the lease term will be shared between both parties at ratios of 50% and 50%. The amount of the guaranteed rent and the sharing ratio under the Property Leasing Agreement have been arrived after arm's length negotiations between the parties and have been determined with reference to, among other things, factors such as the actual rental income in the past and the terms of existing leasing contracts. The rent under the Property Leasing Agreement is expected to be financed by internal resources in the ordinary and usual course of business of the Group. Payment arrangement: Poly Business Commercial Property shall pay the rent to Poly Developments and Holdings on a monthly basis by the 25th day of each month, calculated 90% of the guaranteed rent for each calendar year during the lease term. The actual rent is settled on a calendar year basis. Poly Business Commercial Property shall complete the audit by 25 December of each year, and both parties will settle the actual amount upon confirmation by Poly Developments and Holdings. Terms relating to: As Poly Developments and Holdings and its associates subleasing to have reserved certain properties in the Subject Properties connected persons and will rent properties in the Subject Properties for their own use, Poly Business Commercial Property will become the lessor of such reserved and newly rented properties upon signing the Property Leasing Agreement. The Subleasing Transactions between Poly Business Commercial Property and Poly Developments and Holdings and its associates will constitute connected transactions. According to the Property Leasing Agreement, the pricing principles for the Subleasing Transactions between Poly Business Commercial Property and Poly Developments and Holdings and its associates are: (i) For the existing leasing contracts, the existing rent shall be kept for the remaining lease term without modification. (ii) For the new leasing contracts, the amount of rent shall be in line with the market pricing principle with reference to factors such as the market rents of relevant properties and the market rents of comparable properties, in an amount of no less than the price at which Poly Business Commercial Property leases comparable properties to independent third parties. The contracts shall be carried out on normal commercial terms. The aggregate amount of subleasing income from subleasing to connected persons during the lease term is estimated not to exceed RMB 83 million.