On 23 May 2023, Zhongshan Hengsheng, a wholly-owned subsidiary of the Company, entered into the Construction Contract with Shenzhen Xinmei, pursuant to which Shenzhen Xinmei shall provide construction services to Zhongshan Heng Sheng for the construction of the Hengsheng Factory at a consideration of RMB102,000,000. The principal terms of the Construction Contract are set out as follows: Date, 23 May 2023, Parties,: (i) Zhongshan Heng sheng, a wholly-owned subsidiaries of the Company; and, (ii) Shenzhen Xinmei, as the contractor, Scope of services to be provided,: Provide construction services for the Hengsheng Factory, a factory premise to be constructed in the Shengwugu Avenue, Zhongshan Torch Gaojishu Industry Development Zone, Zhongshan, Guangdong, the PRC, Consideration,: RMB 102,000,000. The consideration of the Construction Contract was arrived at after arm's length negotiations between the parties and with reference to, inter alia, the scope of each of the Construction Contract and the prevailing market condition.

The consideration for the Construction Contract will be financed by internal resources of the Group. Payment terms.: Payment shall be made by Zhongshan HengSheng to the contractor based on the actual progress of construction work completed each month according to the assessment of an independent project management company. Unless specified, the independent project management company shall audit the progress payment request and send the results to the Zhongshan Hengheng within 7 days of submission from the contractor.

Zhongshan Hengherng shall sign off the audited progress payment request within 7 days and subsequently complete the payment within 14 days upon receiving the audited progress payment request. Any adjustments after the sign off of the progress payment request by Zhongshan H Engsheng or the contractor shall be reflected in the progress payment in the following month. Completion: The construction of the Hengsheg Factory is expected to be completed on or before March 2024.