Common use of Lease Consideration Clause in Contracts

Lease Consideration. As at the date of this announcement, the RMB benchmark lending rate for term loans of more than five years promulgated by the PBOC is 6.55% per annum. Based on this interest rate and assuming the Purchase Consideration will be paid by Kunlun Financial Leasing in three equal instalments every two months after the execution of the Finance Lease Agreement in accordance with the notice of payment issued by Sichuan Petrochemical, the total amounts of lease interests and pre-lease interests for the entire term of the Finance Lease Agreement are approximately RMB1,061 million (equivalent to approximately HK$870 million) and RMB33 million (equivalent to approximately HK$27 million), respectively. The Lease Consideration for the entire term of the Finance Lease Agreement is approximately RMB4,094 million (equivalent to approximately HK$3,357 million). In the event that PBOC adjusts the RMB benchmark lending rate for term loans of more than five years, the rate for lease interests and pre-lease interests under the Finance Lease Agreement will be adjusted accordingly. Kunlun Financial Leasing will issue a notice of adjustment to the pre-lease interests and the lease rent to Sichuan Petrochemical. The Lease Consideration has been determined after arm’s length negotiation between Sichuan Petrochemical and Kunlun Financial Leasing with reference to the prevailing market rate for comparable assets finance leases. Titles of the Lease Assets shall vest in Kunlun Financial Leasing throughout the lease period. Subject to there being no default by Sichuan Petrochemical under the Finance Lease Agreement, or that such default has been rectified by Sichuan Petrochemical and accepted by Kunlun Financial Leasing, and upon the expiry of the Finance Lease Agreement, Sichuan Petrochemical has an option to purchase the Lease Assets from Kunlun Financial Leasing at a nominal price of RMB10,000 (equivalent to approximately HK$8,200). Upon the receipt of full payment by Kunlun Financial Leasing, titles of the Lease Assets shall vest in Sichuan Petrochemical on an as-is basis.

Lease Consideration. As at the date of this announcement, the RMB benchmark lending rate for term loans of more than five years promulgated by the PBOC is 6.55% per annum. Based on this interest rate and assuming the Purchase Consideration will be paid by Kunlun Financial Leasing in three equal instalments every two months after the execution of the Finance Lease Agreement in accordance with the notice of payment issued by Sichuan Petrochemical, the total amounts of lease interests and pre-lease interests for the entire term of the Finance Lease Agreement are approximately RMB1,061 million (equivalent to approximately HK$870 million) and RMB33 million (equivalent to approximately HK$27 million), respectively. The Lease Consideration for the entire term of the Finance Lease Agreement is approximately RMB4,094 million (equivalent to approximately HK$3,357 million). In the event that PBOC adjusts the RMB benchmark lending rate for term loans of more than five years, the rate for lease interests and pre-lease interests under the Finance Lease Agreement will be adjusted accordingly. Kunlun Financial Leasing will issue a notice of adjustment to the pre-lease interests and the lease rent to Sichuan Petrochemical. The Lease Consideration has been determined after arm’s length negotiation between Sichuan Petrochemical and Kunlun Financial Leasing with reference to the prevailing market rate for comparable assets finance leases. Titles of the Lease Assets shall vest in Kunlun Financial Leasing throughout the lease period. Subject to there being no default by Sichuan Petrochemical under the Finance Lease Agreement, or that such default has been rectified by Sichuan Petrochemical and accepted by Kunlun Financial Leasing, and upon the expiry of the Finance Lease Agreement, Sichuan Petrochemical has an option to purchase the Lease Assets from Kunlun Financial Leasing at a nominal price of RMB10,000 (equivalent to approximately HK$8,200). Upon the receipt of full payment by Kunlun Financial Leasing, titles of the Lease Assets shall vest in Sichuan Petrochemical on an as-is basis.. Pursuant to the Finance Lease Agreement, Sichuan Petrochemical has conditionally agreed to sell and Kunlun Financial Leasing has conditionally agreed to purchase the Lease Assets at the consideration of RMB3,000 million (equivalent to approximately HK$2,460 million). Payment of the Purchase Consideration by Kunlun Financial Leasing under the Finance Lease Agreement will be made by instalments and is subject to the following conditions: