As the 2022 Silica Sand Sales Agreement and the 2022 Silica Sand Purchase Agreement have expired on 31 December 2022, Xinyi Solar and Xinyi Glass have renewed the continuing connected transactions for another term of one year from 1 January 2023 to 31 December 2023 (both days inclusive) by entering into the 2023 Silica Sand Sales Agreement and the 2023 Silica Sand Purchase Agreement on 5 January 2023 (after trading hours). Pursuant to the 2023 Silica Sand Sales Agreement, member of the XYS Group continue to supply to members of the XYG Group silica sand for the production of float glass. Pursuant to the 2023 Silica Sand Purchase Agreement, members of XYS Group continue to purchase from the XYG Group low iron silica sand for the production of solar glass.

The transactions under each of the 2023 Silica Sand Sales Agreement and the 2023 Silica Sand Purchase Agreement are separate and independent from each other as (a) member of the XYS Group is seller under the 2023 Silica Sand Sales Agreement; (b) members of the XYS Group are purchasers under the 2023 Silica Sand Purchase Agreement; and (c) the subject matters under the two agreements are different in terms of usage, pricing bases and functional properties. The XYS Directors and the XYG Directors are of the view that the transactions contemplated under the 2023 Silica Sand Sales Agreement and the 2023 Silica Sand Purchase Agreement should not be aggregated for the purpose of the Listing Rules. The XYG Group will purchase from Hepu Xinyi not more than 558,000 tonnes of silica sand at an aggregate estimated purchase amount of not more than RMB 94.8 million (equivalent to HKD 103.6 million).

This kind of silica sand is used by members of the XYG Group for the production of float glass. The sales and purchase of silica sand will be charged at the then prevailing market prices, which will be settled by way of bank transfers on a monthly basis within thirty (30) days after each month end.