Tong Ren Tang Technologies Co. Ltd. announced that with the expiration of the Previous Land Use Right Leasing Agreement, the Company and China Beijing Tong Ren Tang Group Co. Ltd. (Tong Ren Tang Holdings) entered into the New Land Use Right Leasing Agreement on 26 March 2021, pursuant to which Tong Ren Tang Holdings has agreed to lease the Land to the Company, with a leasing period of 5 years commencing from 6 October 2020 to 5 October 2025. Tong Ren Tang Holdings is the ultimate controlling Shareholder of the Company, and is therefore a connected person of the Company under the Hong Kong Listing Rules. In accordance of IFRS 16, the Company recognizes the value of the right-of-use asset on its consolidated statement of financial position in connection with the lease of the Land under the New Land Use Right Leasing Agreement. Accordingly, the transactions contemplated thereunder is regarded as an acquisition of right-of-use asset by the Company which will constitute a one-off connected transaction of the Company pursuant to Chapter 14A of the Hong Kong Listing Rules. Rent is RMB 8,372,700 per year, subject to adjustment in case of any changes in national policies. The rent is payable on a yearly basis during 5 October to 31 October each year.