The Board of Zhongguancun Science-Tech Leasing Co., Ltd. announced that on March 29, 2022, the Company (as the Lessor) entered into the Finance Lease Agreement with the Lessee, pursuant to which (i) the Lessor shall acquire the Leased Assets owned by the Lessee at a transfer consideration of RMB 45,000,000; and (ii) the Lessor shall lease the Leased Assets back to the Lessee for a term of 36 months with a total lease payment of RMB 49,888,208, which shall include a finance lease principal of RMB45,000,000 and a finance lease interest income (inclusive of VAT) of RMB 4,888,208 under the Finance Lease Agreement. Under the Finance Lease Agreement, the total lease payment of RMB 49888,208 shall include (i) the finance lease principal of RMB 45,000,000, and (ii) the finance lease interest income (inclusive of VAT) of RMB4,888,208 (calculated based on the interest rate of 6.8% 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, 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.