The Board hereby announced that on September 18, 2020, Zhongguancun Science-Tech Leasing Co., Ltd. (as the Lessor) entered into the Finance Lease Agreement with Wen `an Zhongxin Biomass Heating Co., Ltd. (the Lessee), pursuant to which (i) the Lessee would sell its own assets namely, the Leased Assets to the Lessor, at a transfer consideration of RMB 45,000,000; and (ii) the Lessor would lease back the Leased Assets to the Lessee for a term of 36 months with a total lease payment of RMB 49,656,581, which under the Finance Lease Agreement shall include a finance lease principal of RMB 45,000,000 and a finance lease interest income (inclusive of VAT) of RMB 4,656,581. The Leased Assets are facilities and equipment of centralized gas supply project located in Hebei Province, the PRC, with a net book value of approximately RMB 155,859,518. The Lessee does not separately calculate the profits before and after tax of the Leased Assets. The transfer consideration for acquisition of the Leased Assets under the Finance Lease Agreement will be funded by the Company's internal resources. The lease period of the Finance Lease Agreement is 36 months. Pursuant to the Finance Lease Agreement, the lease payment comprises finance lease principal and finance lease interest income (inclusive of VAT). The finance lease principal is RMB 45,000,000, the finance lease interest income (inclusive of VAT) is RMB 4,656,581 (calculated based on the interest rate of 6.20% per annum), the total lease payment is RMB 49,656,581, the Lessee shall pay the lease payment to the Lessor at the end of each quarter in instalments in accordance with the Finance Lease Agreement during the lease period. The terms of the Finance Lease Agreement, including transfer consideration for the Leased Assets, finance lease principal, finance lease interest income and other expenses under the Finance Lease Agreement, were determined upon arm's length negotiation between the Lessee and the Lessor with reference to net book values of the Leased Assets and prevailing market prices of the same category of finance lease products in the PRC. The Lessee agreed to pay the security deposit for the Finance Lease Agreement of RMB 3,600,000 (bearing nil interests). When the last lease payment of the Finance Lease Agreement, the lease payment and other payables under the final payment will automatically be deducted from the deposit, and the Lessor will refund the Lessee the remaining amount (if any). During the lease period, the ownership of the Leased Assets shall be vested in the Lessor. If the Lessee has properly and fully performed all of its obligations under the Finance Lease Agreement, upon the expiry of the Finance Lease Agreement, the Lessor will transfer the Leased Assets to the Lessee at the consideration of RMB 100 in nominal value.