Zall Smart Commerce Group Ltd. announced that dated 24 October 2017 in relation to the lease agreement dated 11 September 2017 entered into among Wuhan North Hankou Trade Market Investment Co., Ltd. and Zall Investment Group Co., Ltd. (together with North Hankou Trade Market, the ‘Lessors'), both being a wholly-owned subsidiary of the Company, as lessors, and Jiangsu Eastide Group Co., Ltd. (‘Jiangsu Eastide''), as lessee; and (ii) the announcement of the Company dated 17 December 2020 in relation to the transfer agreement (the ‘Transfer Agreement'') dated 17 December 2020 entered into among the Lessors, Jiangsu Eastide and Wuhan Dequn Business Management Co., Ltd. (‘Wuhan Dequn'') pursuant to which all parties to the Transfer Agreement agreed that all rights and obligations of Jiangsu Eastide under the Lease Agreement shall be fully transferred to Wuhan Dequn. Unless otherwise stated, capitalised terms used herein shall have the same meanings as those defined in the Circular. The Board announces that on 15 February 2022, the Lessors and Wuhan Dequn entered into a termination agreement (the ‘Termination Agreement'') pursuant to which the Lessors and Wuhan Dequn agreed to terminate the Lease Agreement (as amended by the Transfer Agreement) (the ‘2020 Lease Agreement'') effective from 15 February 2022.

Pursuant to the Termination Agreement, Wuhan Dequn has surrendered the tenancy under the 2020 Lease Agreement and has settled all the relevant outstanding fee, including but not limited to the management fee, utility fee and garbage disposal fee, for the Leased Premises up to and including 14 February 2022. The Lessors have granted to Wuhan Dequn a waiver in respect of the obligation of Wuhan Dequn to pay the lease fee in the amount of approximately RMB 288.0 million calculated according to the 2020 Lease Agreement during the period from 1 July 2021 to 14 February 2022.