On 27 September 2019, the Company and BNSIGC entered into the Transfer Agreement in respect of the Land Use Right of the Land. BNSIGC proposes to transfer and the Company proposes to accept the Land Use Right of the Land. The preliminary appraised value of the transfer price is approximately RMB4,739 million (tax exclusive). The transfer price shall ultimately be determined by both the Company and BNSIGC with reference to the appraised value arrived at in the valuation of the Land by a third-party assets appraiser with relevant qualifications and approved by Beijing SASAC.

For the purpose of safeguarding the interests of the Company and its shareholders, the Company and BNSIGC (as the performance guarantor) entered into the Compensation Agreement on 27 September 2019, which forms an integral part of the Transfer Agreement. Pursuant to the Compensation Agreement, BNSIGC undertakes to compensate the Company for any shortfall of the income generated from the Land and the buildings erected thereon during the Performance Guarantee Period. BNSIGC undertakes that the Guaranteed Income generated from the Land and the buildings erected thereon for each of the full financial years of 2019, 2020 and 2021 shall be no less than RMB808 million, RMB762 million and RMB893 million, respectively.