Suzhou Basecare Medical Corporation Limited entered into the General Construction Contracts with Zhongyifeng Construction Group Co. Ltd. with Total Contract Price of RMB 157,500,000 in respect of the construction of headquarters, R&D center and plants located to the east of Xingtang Street and north of Jiangyun Road, Suzhou Industrial Park, Jiangsu, PRC. Pursuant to the General Construction Contracts, the Company is responsible for applying for relevant approvals for the construction, paying the Contractor at the Total Contract Price and providing construction site under conditions as prescribed thereunder, and the Contractor is responsible for the construction of headquarters, R&D center and plants located to the east of Xingtang Street and north of Jiangyun Road, Suzhou Industrial Park, Jiangsu, PRC, including but not limited to the overall management of the construction, applying for relevant certificates for the construction and completing registrations according to relevant laws and regulations.

The Total Contract Price shall mean the all-inclusive and lump sum price set in the General Construction Contracts, which is a total of RMB157,500,000, subject to adjustment according to the fluctuation of market price of labor, materials and equipment. The headquarters construction project of the Company is a key project in Suzhou Industrial Park. The planned gross floor area of the project is 71,850 sq.m., with 21,700 sq.m. for research and development office use and 32,800 sq.m. for production use.

The construction of headquarters can render better support to the production and operation of the Group. The headquarters building of the Group will also serve as an exchange platform for the field of fertility, facilitate communication with upstream and downstream enterprises in the field of assisted reproduction and fertility, promote industry development through synergy, and create cluster effect for the next-generation sequencing testing industry. The development and construction of the headquarters building will also be conducive to laying a solid foundation for the existing and future operation of the Group, so that the Group can further improve in the key areas of business operation, including control of product research and development, production, finance and sales.

The Company considers that the construction of the headquarters building of the Company will lay a solid foundation for the strategic development of the Group. They are consistent with the Group's development strategies.