THE DISPOSAL On 22 April 2019, (i) Yongzhou Jiepai Concord entered into the Daoxian Century Concord SPA with Suzhou RECO, pursuant to which Yongzhou Jiepai Concord, as the vendor, agreed to sell and Suzhou RECO, as the purchaser, agreed to acquire 75% equity interest in Daoxian Century Concord, at the consideration of RMB117,643,000 (equivalent to approximately HK$137,642,310), payable by Suzhou RECO in accordance with the terms and conditions of the Daoxian Century Concord SPA; (ii) Yongzhou Jiepai Concord entered into the Daoxian Jingtang SPA with Suzhou RECO, pursuant to which Yongzhou Jiepai Concord, as the vendor, agreed to sell and Suzhou RECO, as the purchaser, agreed to acquire 75% equity interest in Daoxian Jingtang, at the consideration of RMB108,665,000 (equivalent to approximately HK$127,138,050), payable by Suzhou RECO in accordance with the terms and conditions of the Daoxian Jingtang SPA; and (iii) Yongzhou Jiepai Concord entered into the Equity Transfer Agreement with RECO (Concord), pursuant to which Yongzhou Jiepai Concord, as the vendor, agreed to sell and RECO (Concord), as the purchaser, agreed to acquire the entire equity interest in Suzhou RECO and certain debts at the aggregate consideration of RMB226,308,000 (equivalent to approximately HK$264,780,360), payable by RECO (Concord) in accordance with the terms and conditions of the Equity Transfer Agreement. As one or more of the applicable percentage ratio(s) (as defined in the Listing Rules) in respect of the Disposal exceed(s) 5% but less than 25%, the Disposal and the transactions contemplated therein shall constitute a discloseable transaction for the Company under Chapter 14 of the Listing Rules and is subject to the reporting and announcement requirements under the Listing Rules. * For identification purposes only — 2 — PROVISION OF GUARANTEES On 22 April 2019, (i) Century Concord, Suzhou RECO, Daoxian Century Concord and Yongzhou Jiepai Concord entered into the Shenzhangtang Guarantee Agreement, pursuant to which Century Concord agreed to continue to provide the joint liability guarantee for Daoxian Century Concord to the Shenzhangtang Lessor and Daoxian Century Concord shall in return pay guarantee fee to Century Concord; and (ii) Century Concord, Suzhou RECO, Daoxian Jingtang and Yongzhou Jiepai Concord entered into the Jingtang Guarantee Agreement, pursuant to which Century Concord agreed to continue to provide the joint liability guarantee for Daoxian Jingtang to the Jingtang Lessor and Daoxian Jingtang shall in return pay guarantee fee to Century Concord. As one or more of the applicable percentage ratio(s) (as defined in the Listing Rules) in respect of the provision of guarantees, in aggregate, exceed(s) 5% but less than 25%, the provision of guarantees and the transactions contemplated therein shall constitute a discloseable transaction for the Company under Chapter 14 of the Listing Rules and is subject to the reporting and announcement requirements under the Listing Rules.