Jihe Expressway R&E Project and the signing of the PPP Contract between the Transport Commission and SZ Expressway on 30 September 2022. Unless otherwise stated, capitalised terms used herein shall have the same meanings as those defined in the Announcement. As disclosed in the Announcement, SZCDTI, as the cooperative investor of the Jihe Expressway R&E Project, SZCDTI entered into the strategic cooperation framework agreements (I) and (II) with SZ Expressway on 30 September 2022, pursuant to which the parties agreed to cooperate in investment in the Jihe Expressway R&E Project and jointly fulfil the investment obligation under the PPP Contract.

The amounts to be raised by SZCDTI under the strategic cooperation framework agreements (I) and (II) are RMB 1.4935 billion and RMB 13.809 billion, respectively. SZ Expressway and SZCDTI have reached consensus on the specific commercial conditions and implementation details of the strategic cooperation framework agreement (I) and entered into the joint investment and construction agreement (I) in respect of the Jihe Expressway R&E Project (the "Joint Construction Agreement (I)") on 13 October 2022. Cooperation period: Tentatively 29 years which comprises the construction period of 4 years and the operation period of 25 years.

The construction period may be extended should the Transport Commission determine to further extend the construction period in accordance with the PPP Contract. Construction arrangement: SZ Expressway and SZCDTI agreed to jointly undertake the investment obligation under the PPP Contract. SZ Expressway shall self-raise RMB 12.987 billion for investment in the Jihe Expressway R&E Project and construct assets package from such fund.

SZ Expressway will own such assets package and the relevant rights attached thereto. SZCDTI shall raise fund of RMB 1.4935 billion through policy-based and developed financial instruments for investment in the Jihe Expressway R&E Project and construct assets from such fund (the "SZCDTI Assets Package"). SZCDTI will own the SZCDTI Assets Package and the relevant rights attached thereto.

SZ Expressway shall make priority payment of the asset usage fee and obtain the right for using the SZCDTI Assets Package. SZ Expressway will be legally entitled to the entire concession operation right of the Jihe Expressway R&E Project according to the PPP Contract. In the event SZCDTI fails to obtain the approval for the issue of policy- based and developed financial instruments, it shall raise its investment fund of RMB 1.4935 billion through other means.

SZ Expressway shall be responsible for the overall construction, operation and maintenance of the Jihe Expressway R&E Project. SZCDTI shall entrust SZ Expressway to carry out its construction, maintenance and management work on its behalf. Asset usage fee: After the operation period of the Jihe Expressway R&E Project commences, SZ Expressway shall start to pay SZCDTI the asset usage fee for use of the SZCDTI Assets Package of RMB 109.45 million per year.

The asset usage fee is determined based on the expected investment return rate of 4%, and having taken into account factors and assumptions such as the interest to be accrued from SZCDTI's investment during the construction period, the expected operation period of 25 years, and the value-added tax rate. The asset usage fee is subject to adjustment if the operating period, VAT rate, etc. are adjusted or different from expectations.

Effectiveness: Effective upon the signing and sealing of the Joint Construction Agreement (I).