Reference is made to the announcement of a discloseable transaction published by Shanghai Jin Jiang Capital Company Limited on 9 March 2020 in relation to, among others, the Previous Entrusted Loan Agreement, pursuant to which, the Company has agreed to entrust Jin Jiang International Finance Company Limited (Finance Company) to provide loans with a principal amount of RMB 87,500,000 to Kunlun Hotel during the period from 10 March 2020 to 9 March 2021. As the expiry date of the Previous Entrusted Loan Agreement is 9 March 2021, the Company, Finance Company and Beijing Kunlun Hotel Company Limited (Kunlun Hotel) entered into the Entrusted Loan Extension Agreement on 9 March 2021 to extend the term of the Previous Entrusted Loan Agreement to 8 March 2022, pursuant to which, the Company has agreed to entrust Finance Company to provide loans with a principal amount of RMB 87,500,000 to Kunlun Hotel during the period from 9 March 2021 to 8 March 2022. Save as supplemented, amended or modified by the Entrusted Loan Extension Agreement, other terms of the Previous Entrusted Loan Agreement will remain unchanged with full effect. The Entrusted Loan Extension Agreement constitutes a part of the Previous Entrusted Loan Agreement. The principal terms of the Provision of Entrusted Loans to Kunlun Hotel by Finance Company as entrusted by the Company are summarised as follows: The Company entrusts its self-owned funds of RMB 87,500,000 to Finance Company. Finance Company shall provide such funds to Kunlun Hotel as loans to supplement its working capital on behalf of the Company according to the purpose, amount and currency, terms and interest rate as designated by the Company. The Company shall pay to Finance Company a commission equivalent to 0.05% of the actual amount utilised by Kunlun Hotel per annum. The expiry date of the Previous Entrusted Loan Agreement is 9 March 2021. Pursuant to the Entrusted Loan Extension Agreement, the term of the Previous Entrusted Loan Agreement is extended to 8 March 2022, namely, the term of the entrusted loans is from 9 March 2021 to 8 March 2022. 3.915%. Kunlun Hotel shall settle the interest on a quarterly basis. Kunlun Hotel may advance loan repayments within the term of the Previous Entrusted Loan Agreement as extended by the Entrusted Loan Extension Agreement. The Board is of the view that the Provision of Entrusted Loans to Kunlun Hotel by Finance Company as entrusted by the Company will fulfil the working capital requirements of Kunlun Hotel and help Kunlun Hotel resume production and operation under the impact of COVID-19, thereby safeguarding sound and stable business development. It will also facilitate the centralised application of the Group's existing funding resources to improve its fund application efficiency and generate interest income for the Group. The Board (including the independent non-executive Directors) is of the view that the terms of the Entrusted Loan Extension Agreement are fair and reasonable, on normal commercial terms, and are in the interest of the Company and its shareholders as a whole. As Mr. Yu Minliang, Ms. Guo Lijuan, Mr. Chen Liming, Mr. Ma Mingju, Ms. Zhou Wei and Mr. Sun Yu hold positions at Jin Jiang International, they abstained from voting in respect of the Board resolution approving the Entrusted Loan Extension Agreement. Save as disclosed above, none of the other Directors had a material interest in the relevant transactions or was required to abstain from voting on the relevant resolution of the Board.