Zhongguancun Science-Tech Leasing Co., Ltd. announced that on December 21, 2023, the Company (as the Lessor) entered into the Finance Lease Agreement with the Gansu Chuanqi Ganwei Dairy Co., Ltd, pursuant to which, the Lessor shall acquire the Leased Assets owned by the Lessee at a transfer consideration of RMB 58,565,132.74; and the Lessor shall lease the Leased Assets back to the Lessee for a term of 36 months with a total lease payment of RMB 50,058,134, which shall include a finance lease principal of RMB 45,000,000 and a finance lease interest income (inclusive of VAT) of RMB 5,058,134. The Leased Assets are related production equipment under the dairy processing business, with a net book value of approximately RMB 58,565,132.74. 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 Agreement 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 Agreement, the Lessee is entitled to acquire the Leased Assets at the consideration of RMB100 in nominal value pursuant to the terms and conditions of the Finance Lease Agreement, upon the expiry of the Finance Lease Agreement. The lease period of the Finance Lease Agreement is 36 months, which shall commence on December 21, 2023.

Under the Finance Lease Agreement, the total lease payment of RMB 50,058,134 included the finance lease principal of RMB 45,000,000 and the finance lease interest income (inclusive of VAT) of RMB 5,058,134 (calculated based on the interest rate of 6.75% 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 Agreement during the lease period. The terms of the Finance Lease Agreement, including the transfer consideration for the Leased Assets, finance lease principal, finance lease interest income and other expenses, are 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.