The Board of Zhongguancun Science-Tech Leasing Co., Ltd. announced that January 29, 2024, the Company entered into the Finance Lease Agreement II with the Lessee, pursuant to which the Lessor shall acquire the Leased Assets II owned by the Lessee at a transfer consideration of RMB 20,000,000; and the Lessor shall lease the Leased Assets II back to the Lessee for a term of 36 months with a total lease payment of RMB 22,170,322, which shall include a finance lease principal of RMB 20,000,000 and a finance lease interest income (inclusive of VAT) of RMB 2,170,322. Within the past 12 months, on August 22, 2023, the Company (as the Lessor) entered into the Finance Lease Agreement I with the Lessee, pursuant to which, among other things, the Company (as the Lessor) agreed to: acquire the Leased Assets I owned by the Lessee at a transfer consideration of RMB 20,000,000; and lease back the Leased Assets I to the Lessee for a term of 36 months with a total lease payment of RMB 22,197,319, which included a finance lease principal of RMB 20,000,000 and a finance lease interest income (inclusive of VAT) of RMB 2,197,319. The Leased Assets I are steam plating equipment, with a net book value of approximately RMB 20,121,081.81.

The Leased Assets II are steam plating equipment, with a net book value of approximately RMB 22,123,893.81. The Lessee does not separately calculate the profits before and after tax of the Leased Assets. The transfer consideration for the acquisition of the Leased Assets under the Finance Lease Agreements will be funded by the Company's internal resources.

If the Lessee has properly and fully performed all of its obligations under the Finance Lease Agreements, the Lessee is entitled to acquire the Leased Assets at the consideration of RMB 100 in nominal value pursuant to the terms and conditions of the Finance Lease Agreements, upon the expiry of the Finance Lease Agreements respectively. Lease Period The lease period of the Finance Lease Agreement I is 36 months, which commenced on August 22, 2023. The lease period of the Finance Lease Agreement II is 36 months, which shall commence on January 29, 2024.

Lease Payment and Method of Payment: Under the Finance Lease Agreement I and the Finance Lease Agreement II, the respective total lease payment of RMB 22,197,319 and RMB 22,170,322, included the respective finance lease principal of RMB 20,000,000 and RMB 20,000,000, and the respective finance lease interest income (inclusive of VAT) of RMB 2,197,319 (calculated based on the interest rate of 6.6% per annum) and RMB 2,170,322 (calculated based on the interest rate of 6.6% per annum). The Lessee shall pay the lease payment to the Lessor at the end of each quarter in installments in accordance with the terms and conditions of the Finance Lease Agreements during the lease period. The terms of the Finance Lease Agreements, including the transfer consideration for the Leased Assets, finance lease principal, finance lease interest income and other expenses, were determined upon arm's length negotiation between the Lessee and the Lessor with reference to net book value of the Leased Assets and prevailing market prices of the same category of finance lease products in the PRC.