On 16 October 2015, Kunming Dianchi Water Treatment Co., Ltd. entered into the Concession Contracts with the Administrative Committee of Bokeo Special Economic Zone in Laos, pursuant to which the Company (through Dianchi Water (Laos)) invested in the construction of the running water plants and the wastewater treatment plants in the Golden Triangle of Laos under the BOT model. On 8 April 2024 (after trading hours), the Company, Dianchi International, Dianchi Water (Laos) (as the Project Company) and the Administrative Committee of Bokeo Special Economic Zone in Laos entered into the Concession Termination Agreement. Pursuant to which, the Company and the Administrative Committee of Bokeo Special Economic Zone in Laos agreed to terminate the Concession Contracts signed by both parties.

Given that the Company and Dianchi Water (Laos) have fulfilled part of their obligations and incurred expenses under the Concession Contracts, the Company is entitled to receive, and the Administrative Committee of Bokeo Special Economic Zone in Laos is obliged to pay the corresponding Consideration to the Company or the subsidiary designated by the Company in accordance with the relevant provisions of the Concession Termination Agreement, the total Consideration being RMB 51,141,888.60, comprising (i) the preliminary investment and completion settlement audit fee of RMB 3,389,790.74 for the construction of the running water plants; (ii) the construction investment and completion settlement audit fee of the wastewater treatment plants of RMB 46,643,443.80; (iii) the basic fee for the operation and maintenance of the wastewater treatment plants during the period from 1 July 2023 to 31 December 2023 of RMB 411,281.71; (iv) the operation and maintenance costs and relevant taxes of the wastewater treatment plants during the period from 1 January 2024 to 30 June 2024 of RMB 348,000.00; and (v) the monitoring equipment of RMB 349,372.35. Upon Completion, the Company/Dianchi Water (Laos) no longer owns the concession rights of Laos Project. The principal terms of the Concession Termination Agreement are summarized below: Date: 8 April 2024 (after trading hours).

Parties: (i) the Company; (ii) the Administrative Committee of Bokeo Special Economic Zone in Laos; (iii) Dianchi International; and (iv) Dianchi Water (Laos) (as the Project Company). Subject of the Termination: The concession right of the running water plants and the wastewater treatment plants . Payment of Consideration (i) within 5 working days from the date of completion of the transfer of the information list and asset list (as described below), the Administrative Committee of Bokeo Special Economic Zone in Laos or a third party designated by it shall pay the aforesaid Consideration (i), (ii), (iii) and (v) in the total amount of RMB 50,793,888.60 to Dianchi International, subsidiary designated by the Company, or the Project Company; and (ii) the aforesaid Consideration (iv) shall be paid by the Administrative Committee of Bokeo Special Economic Zone in Laos or a third party designated by it to Dianchi International, subsidiary designated by the Company, or the Project Company, before 30 June 2024.

Transfer Arrangement (i) within 15 days from the date of signing of the Concession Termination Agreement, the Company and the Administrative Committee of Bokeo Special Economic Zone in Laos shall complete the confirmation procedures for the project information and asset list of the running water plants and wastewater treatment plants, and transfer the information list and asset list; and (ii) within 10 working days from the date of receipt by Dianchi International/the Project Company of the aforesaid Consideration (i), (ii), (iii) and (v) in the total amount of RMB 50,793,888.60 made by the Administrative Committee of Bokeo Special Economic Zone in Laos or its designated third party, the Company and the Administrative Committee of Bokeo Special Economic Zone in Laos shall complete the transfer procedures for the ownership of all the Laos Project Assets and sign the transfer confirmation letter. Thereafter, the ownership of all the Laos Project Assets shall have been transferred to the Administrative Committee of Bokeo Special Economic Zone in Laos. Completion: Since the signing of the Concession Termination Agreement, the Concession Contract was terminated and the Company/Dianchi Water (Laos) shall cease to have the concession rights of the running water plants and the wastewater treatment plants.

The Termination was completed upon the transfer of the ownership of all the Laos Project Assets to the Administrative Committee of Bokeo Special Economic Zone in Laos.