Zhejiang Tiantai Xianghe Industrial Co.,Ltd. (SHSE:603500) entered into an agreement to acquire 6.6% stake in Zhongyuan Lida Railway Track Technology Development Co., Ltd from Genertec Investment Managers Ltd. for CNY 48 million on December 22, 2022. Under the terms of transaction, Genertec Investment transfers the subject matter under this contract to Zhejiang Tiantai Xianghe at the price of CNY 40,800,000. The security deposit paid by Party B in accordance with the requirements of Party A and the property transfer information disclosure announcement shall be converted into a part of the transfer price after Party B pays the remaining transfer price other than the security deposit in accordance with this contract.

After this contract takes effect, if any party proposes to terminate the contract without reason, it shall pay the other party liquidated damages in one lump sum of 2% of the transfer price of this contract. As of September 20, 2022, Zhongyuan Lida had total asset and net assets of approximately CNY 820 million and CNY 510 million respectively. Zhejiang Tiantai Xianghe Industrial held the tenth meeting of the third board of directors on November 10, 2022, and reviewed and approved the "Proposal on Participating in the Transfer of 6.60% Equity of Zhongyuan Lida Railway Track Technology Development Co., Ltd. Transaction is subject to regulatory approval and agency for approval in accordance with laws and administrative regulations, this contract will become effective on the date when both parties seal and sign by the legal representative.