Zhongguancun Science-Tech Leasing Co., Ltd. Board announced that on March 25, 2022, the Company (as the Lessor) entered into the Finance Lease Agreement III with the Lessee, pursuant to which (i) the Lessor shall acquire the Leased Assets III owned by the Lessee at a transfer consideration of RMB 49,000,000; and (ii) the Lessor shall lease back the Leased Assets III to the Lessee for a term of 36 months with a total lease payment of RMB 53,442,615, which shall include a finance lease principal of RMB 49,000,000 and a finance lease interest income (inclusive of VAT) of RMB 4,442,615 under the Finance Lease Agreement III. Leased Assets: The Leased Assets II and the Leased Assets III are production equipment of battery recovery and regeneration of lead located in Anhui Province, the PRC, with net book value of approximately RMB 40,723,894, and RMB 59,099,335 respectively. The Lessee does not separately calculate the profits before and after tax of the Leased Assets.

The transfer considerations for acquisition of the Leased Assets under the Finance Lease Agreements will be funded by the Company's internal resources. Lease Period: The lease period of the Finance Lease Agreement II is 36 months, which has commenced on September 29, 2021. The lease period of the Finance Lease Agreement III is 36 months, which shall commence on March 25, 2022.

Lease Payment and Method of Payment: Under the Finance Lease Agreement II and the Finance Lease Agreement III, the total lease payment of RMB 37,991,176 and RMB 53,442,615, included (i) the finance lease principal of RMB 35,000,000 and RMB 49,000,000 respectively, and (ii) the finance lease interest income (inclusive of VAT) of RMB 2,991,176 (calculated based on the interest rate of 5.23% per annum) and RMB 4,442,615 (calculated based on the interest rate of 5.5% per annum) respectively. 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 II and the Finance Lease Agreement III 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 under the Finance Lease Agreements, were determined upon arm's length negotiation between the Lessees 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.

Security Deposits: The Lessee agreed to pay the security deposits for the Finance Lease Agreements of RMB 2,100,000 (bearing nil interests) and RMB 2,940,000 (bearing nil interests) respectively. When the respective last lease payments of the Finance Lease Agreements are due to be paid, the lease payments and other payables under the final payment will automatically be deducted from the related deposit, and the Lessor will refund the Lessee the remaining amount (if any). Ownership of the Leased Assets: 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 obligations under the respective Finance Lease Agreements, upon the expiry of the Finance Lease Agreements, the Lessor will transfer the Leased Assets to the Lessee at the consideration of RMB 100 in nominal value respectively. Guarantee: The ultimate beneficial owners of the Lessee provide joint and several liabilities guarantee for the debts of the Lessee under the Finance Lease Agreement II and the Finance Lease Agreement III respectively.