Zhongguancun Science Tech Leasing : DISCLOSEABLE TRANSACTION FACTORING AGREEMENTS

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ʕᗫӀ߅Ҧॡ༣ٰ΅Ϟࠢʮ̡

ZHONGGUANCUN SCIENCE-TECH LEASING CO., LTD.

(a joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 1601)

DISCLOSEABLE TRANSACTION

FACTORING AGREEMENTS

Reference is made to the announcement of the Company dated November 19, 2020 in relation to the Factoring Agreement II.

FACTORING AGREEMENTS

The Board hereby announces that on March 12, 2021, the Company entered into the Factoring Agreement III with the Factoring Bank, pursuant to which the Company has agreed to transfer the creditor's rights and relevant rights of the undue Lease Receivables VII under the Finance Lease Agreement VII, the outstanding lease principals of which are RMB23,019,722 to the Factoring Bank, and the Factoring Bank has agreed to receive such creditor's rights and relevant rights and to provide the Company with factoring facilities of approximately RMB17,455,250 and factoring facility services.

Within the past twelve months, on November 19, 2020, the Company entered into the Factoring Agreement II with the Factoring Bank, pursuant to which the Company has agreed to transfer the creditor's rights and relevant rights of the undue Lease Receivables V and Lease Receivables VI under the Finance Lease Agreement V and the Finance Lease Agreement VI, the outstanding lease principals of which were RMB31,821,666 and RMB50,476,061, respectively, to the Factoring Bank, and the Factoring Bank has agreed to receive such creditor's rights and relevant rights and to provide the Company with factoring facilities of approximately RMB68,217,954 and factoring facility services.

LISTING RULES IMPLICATIONS

On March 12, 2021, the Company entered into the Factoring Agreement III with the Factoring Bank. As the Factoring Agreement II was entered into with the Factoring Bank within a 12-month period prior to and inclusive of the date of the Factoring Agreement III, the transactions contemplated under the Factoring Agreement II and the Financial Leasing Agreement III will be aggregated as a series of transactions for the Company pursuant to Rule 14.22 of the Listing Rules.

As the highest applicable percentage ratio upon aggregation of the Factoring Agreements is higher than 5% but lower than 25%, therefore, the transactions thereunder constitute discloseable transactions of the Company and are subject to the notification and announcement requirements under Chapter 14 of the Listing Rules.

Reference is made to the announcement of the Company dated November 19, 2020 in relation to the Factoring Agreement II.

BACKGROUND

The Board hereby announces that on March 12, 2021, the Company entered into the Factoring Agreement III with the Factoring Bank, pursuant to which the Company has agreed to transfer the creditor's rights and relevant rights of the undue Lease Receivables VII under the Finance Lease Agreement VII, the outstanding lease principals of which are RMB23,019,722 to the Factoring Bank, and the Factoring Bank has agreed to receive such creditor's rights and relevant rights and to provide the Company with factoring facilities of approximately RMB17,455,250 and factoring facility services.

Within the past twelve months, on November 19, 2020, the Company entered into the Factoring Agreement II with the Factoring Bank, pursuant to which the Company has agreed to transfer the creditor's rights and relevant rights of the undue Lease Receivables V and Lease Receivables VI under the Finance Lease Agreement V and the Finance Lease Agreement VI, the outstanding lease principals of which were RMB31,821,666 and RMB50,476,061, respectively, to the Factoring Bank, and the Factoring Bank has agreed to receive such creditor's rights and relevant rights and to provide the Company with factoring facilities of approximately RMB68,217,954 and factoring facility services.

THE FACTORING AGREEMENTS

The principal terms contained in each of the Factoring Agreements are substantially similar. The principal terms of the Factoring Agreements are summarized as follows:

Date

Factoring Agreement II: November 19, 2020

Factoring Agreement III: March 12, 2021

Parties

• (1) The Company; and

• (2) The Factoring Bank.

After making all reasonable enquiries, to the best of the Directors' knowledge, information and belief, the Factoring Bank and its ultimate beneficial owners are all independent third parties of the Company and its connected persons (as defined under the Listing Rules).

Factoring Facilities

Pursuant to the terms and conditions of the Factoring Agreement II, the Factoring Bank will provide factoring facility services for the Lease Receivables V and the Lease Receivables VI with an aggregate factoring facilities of approximately RMB68,217,954 to the Company. Pursuant to the terms and conditions of the Factoring Agreement III, the Factoring Bank will provide factoring facility services for the Lease Receivables VII with factoring facilities of approximately RMB17,455,250 to the Company.

Financing Term

The term of the Factoring Agreement II will be no more than 3 years.

The term of the Factoring Agreement III will be no more than 2 years.

Type of Factoring

The recourse right is attached. If any lessees to the Finance Lease Agreement V, the Finance Lease Agreement VI and the Finance Lease Agreement VII fails to fully pay the Lease Receivables V, the Lease Receivables VI, and the Lease Receivables VII within the agreed time limit due to credit issues, the Factoring Bank has recourse for a claim against the Company in respect of the outstanding payment.

Transfer of Lease Receivables

Pursuant to the Factoring Agreement II, the Company has agreed to transfer the creditor's rights and relevant rights of the undue Lease Receivables V and Lease Receivables VI to the Factoring Bank, with the transfer amount of the Lease Receivables V of RMB31,821,666 and the Lease Receivables VI of RMB50,476,061. The Factoring Bank has agreed to receive such creditor's rights and relevant rights and provide factoring facility services to the Company. The Company does not separately calculate the profit before and after tax of the Lease Receivables V and the Lease Receivables VI.

Pursuant to the Factoring Agreement III, the Company has agreed to transfer the creditor's rights and relevant rights of the undue Lease Receivables VII to the Factoring Bank, with the transfer amount of the Lease Receivables VII of RMB23,019,722.00. The Factoring Bank has agreed to receive such creditor's rights and relevant rights and provide factoring facility services to the Company. The Company does not separately calculate the profit before and after tax of the Lease Receivables VII.

Factoring Charge and Interests

The charge for factoring services of Factoring Agreement II amounted to approximately RMB513,215. The charge for factoring services shall be paid by the Company to Factoring Bank at the date when the Company receives the factoring facilities. The interest rate applicable to the factoring facilities is 4.00%, being a rate on the day before facility payment date equivalent to the one year loan prime rate announced by the People's Bank of China + 15 basic points (one basic point equal to 0.01%). Factoring facilities interest = factoring facilities balance × factoring facilities interest rate × actual occupancy day/360. The amount of the factoring facilities interest is the same as the amount of interest payable by the lessees under the Lease Receivables V and the Lease Receivables VI of the Finance Lease Agreement V and the Finance Lease Agreement VI, and will be paid by the Company to the Factoring Bank upon receipt of the rent paid by the lessees on each rent payment date.

The charge for factoring services of Factoring Agreement III amounted to approximately RMB89,341. The charge for factoring services shall be paid by the Company to Factoring Bank at the date when the Company receives the factoring facilities. The interest rate applicable to the factoring facilities is 4.00%, being a rate on the day before facility payment date equivalent to the one year loan prime rate announced by the People's Bank of China + 15 basic points (one basic point equal to 0.01%). Factoring facilities interest = factoring facilities balance × factoring facilities interest rate × actual occupancy day/360. The amount of the factoring facilities interest is the same as the amount of interest payable by the lessees under the Lease Receivables VII of the Finance Lease Agreement VII, and will be paid by the Company to the Factoring Bank upon receipt of the rent paid by the lessees on each rent payment date.

REASONS AND BENEFITS FOR THE ENTERING INTO THE FACTORING AGREEMENTS

The Factoring Agreements are entered into by the Company in the ordinary and usual course of business, and are conducive to giving full play to the advantages of all parties. Entering into the Factoring Agreements are beneficial for the Company to activate its credit assets, accelerate the circulation of its assets, widen its finance channels, and enhance its development strength.

The terms of the Factoring Agreements (including factoring facilities, charge and interests) were reached among all parties after arm's length negotiation, with reference to prevailing commercial practice.

The Directors are of the view that the terms of the Factoring Agreements are on normal commercial terms, are fair and reasonable and in the interests of the Company and its shareholders as a whole.

INFORMATION ABOUT THE PARTIES

Information about the Company

The Company is a pioneer and a dedicated finance lease company in serving technology and new economy companies in China. As the sole finance lease platform under Zhongguancun Development Group Co., Ltd. ( ʕᗫӀ೯࢝ණྠٰ΅Ϟࠢʮ̡ ), the Company offers efficient finance lease solutions and a variety of advisory services to satisfy technology and new economy companies' needs for financial services at different stages of their growth. The Company's finance lease solutions primarily take the form of direct lease and sale-and-leaseback. The Company also delivers a variety of advisory services, including policy advisory and management and business consulting, to help its customers achieve rapid growth.

Information about the Factoring Bank

The Factoring Bank is a joint stock bank which is principally engaged in banking and related financial services.

LISTING RULES IMPLICATIONS

On March 12, 2021, the Company entered into the Factoring Agreement III with the Factoring Bank. As the Factoring Agreement II was entered into with the Factoring Bank within a 12-month period prior to and inclusive of the date of the Factoring Agreement III, the transactions contemplated under the Factoring Agreement II and the Financial Leasing Agreement III will be aggregated as a series of transactions for the Company pursuant to Rule 14.22 of the Listing Rules.

As the highest applicable percentage ratio upon aggregation of the Factoring Agreements is higher than 5% but lower than 25%, therefore, the transactions thereunder constitute discloseable transactions of the Company and are subject to the notification and announcement requirements under Chapter 14 of the Listing Rules.

DEFINITIONS

In this announcement, unless the context otherwise requires, the following terms have the following meanings:

"Board"	the board of directors of the Company
"Company"	Zhongguancun Science-Tech Leasing Co., Ltd. ( ʕᗫӀ߅Ҧॡ༣ٰ
΅Ϟࠢʮ̡ ), a joint stock company incorporated under the laws of the
PRC with limited liability, the H shares of which are listed on the Stock
Exchange with stock code of 1601
"Director(s)"	the director(s) of the Company
-5-

"Factoring Bank"	Hang Seng Bank (China) Limited ( ܩ͛ვБ ( ʕ਷ ) Ϟࠢʮ̡ ), a
joint stock bank which is principally engaged in banking and related
financial services, and also a subsidiary of Hang Seng Bank Limited, a
company listed on the Stock Exchange of Hong Kong Ltd., (stock code:
0011)
"Factoring Agreements"	the Factoring Agreement II and the Factoring Agreement III
"Factoring Agreement II"	the revolving factoring facility agreement entered into between the
Company and Factoring Bank on November 19, 2020
"Factoring Agreement III"	the revolving factoring facility agreement entered into between the
Company and Factoring Bank on March 12, 2021
"Finance Lease	The finance lease agreement entered into between the Company and a
Agreement V"	private enterprise located in Shanxi, the PRC, in respect of the lease
assets such as production equipment of cathode materials for ternary
batteries, the amount of lease receivables thereunder is RMB31,821,666
"Finance Lease	The finance lease agreement entered into between the Company and a
Agreement VI"	private enterprise located in Jiangsu, the PRC, in respect of the lease
assets such as HVAC manufacturing equipment, the amount of lease
receivables thereunder is RMB50,476,061
"Finance Lease	The finance lease agreement entered into between the Company and a
Agreement VII"	private enterprise located in Tianjin, the PRC, in respect of the lease
assets such as orthopedic medical equipment, the amount of lease
receivables thereunder is RMB23,019,722
"independent third party(ies)"	any individual or company not being the connected persons (as defined
under the Listing Rules) of the Company, independent of the Company
and its connected persons (as defined under the Listing Rules) and not
connected with them
"Lease Receivables V"	the remaining lease rent under the Finance Lease Agreement V
"Lease Receivables VI"	the remaining lease rent under the Finance Lease Agreement VI
"Lease Receivables VII"	the remaining lease rent under the Finance Lease Agreement VII
"Listing Rules"	the Rules Governing the Listing of Securities on The Stock Exchange of
Hong Kong Limited
"PRC"	the People's Republic of China, which, for the purpose of this
announcement, excludes the Hong Kong Special Administrative Region
of the PRC, the Macau Special Administrative Region of the PRC and
Taiwan

"RMB"	Renminbi, the lawful currency of the PRC
"Stock Exchange"	The Stock Exchange of Hong Kong Limited
"%"	percent

By order of the Board

Zhongguancun Science-Tech Leasing Co., Ltd.

DUAN Hongwei

Chairman

Beijing, the PRC, March 12, 2021

As at the date of this announcement, the Board comprises Mr. HE Rongfeng and Mr. HUANG Wen as executive Directors, Mr. DUAN Hongwei, Mr. LOU Yixiang, Mr. ZHANG Shuqing and Mr. LI Peng as non-executive Directors, and Mr. CHENG Dongyue, Mr. WU Tak Lung and Ms. LIN Zhen as independent non-executive Directors.