The board of Zhongguancun Science-Tech Leasing Co., Ltd. announced that on March 4, 2024, the company (as the Lessor) entered into a total of 1 Financing Lease Agreement (One Finance Lease Agreement) with Mofang (Guangzhou) Apartment Management Co., Ltd, pursuant to which, (i) the Lessor shall acquire a patented technology owned by one of the Lessees (Mofang (Guangzhou) Apartment Management Co., Ltd) at a transfer consideration of RMB 20,000,000; and (ii) the Lessor shall lease the patented technology back to one of the Lessees (Mofang (Guangzhou) Apartment Management Co., Ltd) for the term of 24 months with a total lease payment of RMB 22,090,783 which shall include the finance lease principle of RMB 20,000,000 and the finance lease interest income (inclusive of VAT) of RMB 2,090,783. Reference is made to the announcement of the Company dated August 29, 2023 in relation to 7 Financing Lease Agreements (Seven Finance Lease Agreements), pursuant to which, among other things, the Company (as the Lessor) agreed to: (i) acquire the electronic appliances and other equipment owned by each of the Lessees respectively at the aggregate transfer consideration of RMB 49,000,000; and (ii) lease the electronic appliances and equipment back to each of the Lessees for a term of 24 months with the aggregate total lease payment of RMB 53,244,712 which included the aggregate finance lease principal of RMB 49,000,000 and the aggregate finance lease interest income (inclusive of VAT) of RMB 4,244,712. The Leased Assets are electronic appliances and other equipment and a patented technology.

The net book value of the Leased Assets under each of the Finance Lease Agreements is inferred in the table under the section of "BACKGROUND". The Lessees do 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 Lessees have properly and fully performed all of their obligations under the Finance Lease Agreements, the Lessees are 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. The lease period of the Finance Lease Agreement I to the Finance Lease Agreement VII is 24 months, which commenced on August 29, 2023. The lease period of the Finance Lease Agreement VIII is 24 months, which shall commence on March 4, 2024.

The total lease payment, the finance lease principal and the finance lease interest income (inclusive of VAT) under each of the Finance Lease Agreements is referred in the table under the section of "BACKGROUND". The finance lease interest income under each of the Finance Lease Agreement I, the Finance Lease Agreement II, the Finance Lease Agreement III, the Finance Lease Agreement IV, the Finance Lease Agreement V, the Finance Lease Agreement VI and the Finance Lease Agreement VII is calculated based on the interest rate of 7.7% per annual. The finance lease interest income under the Finance Lease Agreement VIII is calculated based on the interest rate of 8.8% per annual.

The Lessees 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. The security deposit (bearing nil interests) for each of the Finance Lease Agreements is referred in the table under the section of "BACKGROUND".

When the last lease payments are due to be paid, the lease payment and other payables under the final payment will automatically be deducted from the deposit, and the Lessor will refund the Lessees the remaining amount respectively (if any). The guarantee and security arrangements for each of the Finance Lease Agreements are set out below: The controlling shareholder of the Lessees shall provide joint and several liabilities guarantee for the debts of Lessees under the Finance Lease Agreements. The Lessees' four affiliated company controlled by the same ultimate controlling shareholder shall provide asset collateral for the debts of Lessee under the Finance Lease Agreement VIII.

The Company's principal activities are to provide finance leasing and advisory services to customers. The entering of the Finance Lease Agreements is part of the Company's ordinary and usual course of business, which is expected to provide a stable revenue and cashflow to the Company. The Directors consider that entering into the Finance Lease Agreements will generate revenue and profit to the Company over the lease period and is consistent with the Company's business development strategy.

Since the Finance Lease Agreements were entered into under normal commercial terms, the Directors are of the view that the terms under the Finance Lease Agreements are fair and reasonable and are in the interests of the Company and its shareholders as a whole.