Hengdeli Holdings Limited intended to continue carrying out the transactions under the Master Services Agreement in relation to provision of the Services in the ordinary and usual course of business of the Group after expiration of the 2023 Renewal Agreement, i.e. 31 December 2023, on 3 May 2024, the Company (for itself and on behalf of its subsidiaries) entered into the 2024 Renewal Agreement with Primetime (for itself and on behalf the behalf of its subsidiaries) for a further term of one year commenced on 1 January 2024 on substantially the same term as the Master Services Agreement. The Annual Cap for the transactions contemplated under the 2024 Renewal Agreement for the year ending 31 December 2024 is RMB 28.0 million. Unless the context requires otherwise, capitalised terms used herein shall have the same meanings as defined in the Announcements.

As the Group intends to continue carry out the transactions under the Master services Agreement in relation to provision of The Services in the ordinary and usual courses of business of the Group after expire of the 2023 Renewal agreement, i.e. 31December 2023, on 3 May 2022, the Company (for itself & on behalf of its subsidiaries), entered into a renewal agreement (the "2024 Renewal Agreement") with Primetime Group Co. Ltd. (Sheng Shi Zhong Biao Ji Tuan Gu Fen You Xian Gong Si) for a further term of One year commenced on 1 January 2024 On substantially the same term as the master Services Agreement. The 2024 Renewal Agreement is a framework agreement.

Specific terms of each transaction under the 2024 Renewal Agreement are to be determined by on a case-by-case basis and a separate agreement is to be entered into by the Group and Primetime Group. Annual Cap is set as RMB 28.0 million, which is determined by the Directors with reference to, among other things: (a) the historical transaction amounts between the Group and Primetime Group in relation to the provision of the Services by Primetime Group; and. (c) the prevailing general business environment in the PRC.

From 1 January 2024 to the date of this announcement, the aggregate transaction amount between the Group and Primetime group in relation to the provision of The Services is approximately RMB 2.4 million. 2024 Renewal Agreement. Pursuant to the 2024 Renewal Agreement, the Group agreed to provide the Services to Primetime Group and Primetime Group agreed to purchase the Services from the Group.

The term of the 2024 Renewal Agreement is one year, which was commenced on 1 January 2024 and will expire on 31 December 2024. The major cost components for the Services are (a) costs of decoration materials; and (b) labour costs. When sourcing decoration materials, the Group obtains certain quotations from independent suppliers and selects the supplier who is able to provide the decoration materials in a timely manner with a reasonable price.

Labour is arranged through the Group's internal project manager, who is responsible for overseeing and coordinating the workers. In consistent with the Group's past business and operation of providing the Services, the Company (for itselfand on behalf its subsidiaries) entered into the 2022 Renewal Agreement, which is in the interests of the Company and the Shareholders as a whole. The Directors (including the independent non-executive Directors but excluding Mr. Zhang Yuping, who are interested in Primetime and abstained from voting on the relevant board resolutions for approving the 2024 Renewal Agreement and the transactions contemplated there under) are of the view that (i) the renewal of the Master Services Agreement and the entry into the 2024 Renewal Agreement are in the ordinary and usual course the Group and on normal commercial terms; (ii) the terms of the 2024 Renewal Agreement are considered to be fair and reasonable and in the interests of the Group and the Shareholders as a Whole; and (iii) the basis of determining the Annual Cap is fair and reasonable.