Jiangsu Expressway Company Limited and its wholly-owned subsidiary Ninghu Properties Company entered into an agreement with Communications Holding Commercial Operation Company in respect of additional material procurement. The term of the agreement is from 1 September 2023 to 30 April 2024, and the transaction amount shall not exceed RMB 5.68 million; the Company entered into an agreement with Communications Holding Commercial Operation Company in respect of the outsourcing of the operation rights of Douzhuang Service Area of Jiangsu Expressway. The term of the agreement is from 1 September 2023 to 31 August 2026, and the transaction amount shall not exceed RMB 39 million; As considered and approved at the sixteenth meeting of the tenth session of the board of directors of the Company, on 24 March 2023, the Company entered into the Framework Agreement on Related Party Transaction in relation to office leasing, property services and material procurement of the Company and its subsidiary with Communications Holding Commercial Operation Company, of which the material procurement involved the amount of RMB 4.36 million (the amount shall not exceed RMB 2.69 million in 2023 and shall not exceed RMB 1.67 million in 2024).

Due to business requirements, on 25 August 2023, the Company and its wholly-owned subsidiary Ninghu Properties Company entered into an agreement with Communications Holding Commercial Operation Company in relation to the additional material procurement of office supplies and office equipment. The term of the agreement is from 1 September 2023 to 30 April 2024, and the transaction amount shall not exceed RMB 5.68 million of which: the transaction amount of the material procurement of the Company shall not exceed RMB 5.08 million (the amount shall not exceed RMB 4.41 million from 1 September 2023 to 31 December 2023, and shall not exceed RMB 670,000 from 1 January 2024 to 30 April 2024); the transaction amount of the material procurement of Ninghu Properties Company shall not exceed RMB 600,000 (the amount shall not exceed RMB 500,000 from 1 September 2023 to 31 December 2023, and shall not exceed RMB 100,000 from 1 January 2024 to 30 April 2024). The aforementioned transaction amounts are estimated based on the daily office and operation use of the Company and its wholly-owned subsidiary, Ninghu Properties Company, the office supplies and equipment to be procured include mainly stationery, office computers, printers and other electrical appliances.

Reference is made to the procurement price of the same office supplies and office equipment that the Company entered into with Communications Holding Commercial Operation Company on 24 March 2023. (The material procurement under the Framework Agreement on Related Party Transaction entered into with Communications Holding Commercial Operation Company on 24 March 2023 was determined through price inquiry and comparison. The Company estimated the usage of the relevant supplies and made inquiries to three companies with relevant qualifications according to relevant business needs, among which, Communications Holding Commercial Operation Company is a related party/connected person of the Company, and the other two companies are third parties independent of the Company and its related parties/connected persons.

The project assessment committee (with members randomly selected from the Company's senior management database with relevant experiences) has selected Communications Holding Commercial Operation Company for cooperation after evaluating the quotations and services provided by these three companies.) The amount under the agreement will be paid by the Company and Ninghu Properties Company with their own funds or financing funds in line with the use of funds after receiving the relevant services. Affected by the decline in traffic volume in the past three years, the current lessee of Douzhuang Service Area of Jiangsu Expressway submitted an application to the Company for the termination of the lease contract and intends to enter into a contract termination agreement with the Company. Facing insufficient market demand, in order to ensure the rapid and smooth resumption of normal operation of Douzhuang Service Area, the Company, after consultation and negotiation with Communications Holding Commercial Operation Company, agreed the operation rights of Douzhuang Service Area (exclusive of the gas station and the auto repair factory) to be outsourced to Communications Holding Commercial Operation Company, and entered into the lease management contract on 25 August 2023.

The term of the lease is from 1 September 2023 to 31 August 2026. The rent will adopt a "base rent + concession rent" model, with base rent of RMB 11.5 million per year, subject to a maximum "base rent + concession rent" of RMB 13 million per year. For the purpose of continuing connected transactions, the rental shall not exceed RMB 4.3 million from September to December 2023, shall not exceed RMB 13 million in 2024, shall not exceed RMB 13 million in 2025, shall not exceed RMB 8.7 million from January to August 2026, and shall not exceed RMB 39 million in total for three years.