China Development Bank Financial Leasing Co., Ltd. entered into the Finance Lease Agreement with the Lessee, pursuant to which the Lessor purchased the Leased Assets from the Lessee at a consideration of RMB 800,000,000.00 and (ii) the Lessor agreed to lease the Leased Assets to the Lessee with a lease period of 180 months. Date 3 July 2023. Guoyue Huizhou Power Co., Ltd., a company with limited liability located in Guangdong Province, the PRC, which is principally engaged in the businesses of hydropower generation and new energy technical research and development and consultation, etc.

The Leased Assets are the fixed assets under hydropower station and photovoltaic power station projects located in Guangdong Province, the PRC. The appraised value of the Leased Assets is approximately RMB 980,600,000.00 in aggregate. The Lessee does not separately calculate the profits before and after tax of the Leased Assets.

Pursuant to the Finance Lease Agreement, the Lessor agreed to lease back the Leased Assets to the Lessee. The rent, including value-added taxes, comprised of lease principal and lease interest. The lease principal is of the same amount as the transfer consideration, totaling RMB 800,000,000.00; the total amount of lease interest for the lease period is approximately RMB336,000,000.00.

The rent, which is calculated and paid in RMB, shall be payable and divided into 180 consecutive periods. The rent shall be paid by the Lessee to the Lessor in quarterly installments during the lease period. The terms of the Finance Lease Agreement, including the Leased Assets' transfer consideration, lease principal, lease interest and other expenses under the Finance Lease Agreement were determined upon arm's length negotiation between the Lessee and the Lessor with reference to the appraised value of the Leased Assets and the prevailing market prices of the same category of finance lease products in the PRC.

The Lessee has agreed to transfer and/or change the registration of the Leased Assets to the Lessor during the lease period at a total transfer consideration of RMB 800,000,000.00. The consideration will be paid by the Lessor's self-owned funds and/or commercial loans. At the same time, the Lessor has agreed to lease back the Leased Assets to the Lessee.

The Lessee is entitled to the possession, usage and benefits of such assets. Upon expiration of the lease period, the Lessee may purchase back the Leased Assets from the Lessor at a consideration of RMB100.00 in nominal value. The Finance Lease Agreement is entered into by the Company during its ordinary and usual course of business.

Entering into of the Finance Lease Agreement with the Lessee benefits the Company by increasing the income of its finance lease business and is consistent with the Company's business development strategy. The Directors are of the view that the terms under the Finance Lease Agreement are fair and reasonable and are in the interests of the Company and its shareholders as a whole. Guoyue Investment Group Co., Ltd. shall undertake pledge guarantee for the Lessee's obligations under the Finance Lease Agreement.