Phoenix Tree Holdings Limited announced its entry into investment and cooperation agreements with the local government of the Huaqiao Economic Development Zone ("Huaqiao EDZ") in Kunshan, Jiangshu Province, China. Pursuant to the agreements, Danke will establish a wholly-owned subsidiary in the Huaqiao EDZ (the "Huaqiao Subsidiary"), which will then form a joint venture with Kunshan Yinqiao Holding Group Co. Ltd. ("Kunshan Yinqiao"), an investment entity of the local government. The Huaqiao Subsidiary will make a capital contribution of RMB625 million in exchange for 51.02% equity interest in the joint venture while Kunshan Yinqiao will make a capital contribution of RMB600 million in exchange for the remaining 48.98% stake. The joint venture will use all the capital contributions to develop the co-living apartment business. Danke is expected to control and consolidate the joint venture in Danke's consolidated financial statements. It is also agreed that the Huaqiao Subsidiary and Kunshan Yinqiao will not transfer their respective equity interests in the joint venture for a period of eight years after the capital contributions to the joint venture are completed. After the eight years, Kunshan Yinqiao will have the right to require the Huaqiao Subsidiary or its designated party to repurchase all of Kunshan Yinqiao's equity interest in the joint venture at a price equal to Kunshan Yinqiao's initial capital contribution of RMB 600 million plus interest accrued on such amount calculated at an annual interest rate equal to the PBOC's benchmark rate (plus certain spread if the Huaqiao Subsidiary and its affiliates established in the Huaqiao EDZ contribute tax revenues to the local government of less than a certain amount in the aggregate in the eight-year period).