Announcement Regarding Anticipated Trigger of Downward Adjustment Clause for Conversion Price

Lei Zhi Holdings Group Co., Ltd.

Announcement Regarding Anticipated Trigger of Downward Adjustment Clause for Conversion Price

The Company and all members of the Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed in this announcement, and that there are no false representations, misleading statements, or material omissions.

Special Reminder:

1. Security Code: 002398 Security Abbreviation: Lei Zhi Group

2. Bond Code: 127062 Bond Abbreviation: Lei Zhi Convertible Bond

3. Conversion Price: 7.51 RMB/share

4. Conversion Period: October 27, 2022 to April 20, 2028

5. From June 17, 2026 to July 1, 2026, if the closing price of the company's stock falls below 85% of the current conversion price on at least 10 trading days within a continuous 30-trading-day period, it is anticipated that the condition for a downward adjustment of the conversion price will be triggered. If the condition for adjusting the conversion price is triggered, the company will promptly fulfill subsequent deliberation procedures and information disclosure obligations in accordance with the relevant regulations of the Shenzhen Stock Exchange and the terms of the bond prospectus.

I. Issuance and Listing of Convertible Corporate Bonds

(I) Issuance of Convertible Bonds

As approved by the China Securities Regulatory Commission (CSRC) under Permit [2022] No. 409, "Approval for Lei Zhi Holdings Group Co., Ltd. to Publicly Issue Convertible Corporate Bonds," the company was approved to issue 3,963,000.00 convertible corporate bonds, with a total fundraising amount of RMB 396,300,000.00. After deducting issuance expenses totaling RMB 5,839,448.12 (excluding VAT), the net proceeds raised were RMB 390,460,551.88.

(II) Listing of Convertible Bonds

The convertible bonds were listed and traded on the Shenzhen Stock Exchange starting from May 20, 2022, with bond code "127062" and bond abbreviation "Lei Zhi Convertible Bond," with the consent of the Shenzhen Stock Exchange.

(III) Conversion Period of Convertible Bonds

The conversion period for the convertible bonds issued begins on the first trading day six months after the issuance completion date (April 27, 2022, T+4 day) and ends on the maturity date of the convertible bonds, which is from October 27, 2022, to April 20, 2028.

(IV) Adjustment of Conversion Price of Convertible Bonds

1. In accordance with the resolution of the 2021 Annual General Meeting of Shareholders, the company implemented its 2021 annual equity distribution plan. Based on a total share capital of 720,230,406 shares as of April 28, 2022, a cash dividend of RMB 0.80 per 10 shares (including tax) was distributed to all shareholders. No bonus shares were issued, nor was there any capital reserve to bonus share conversion. In accordance with the relevant clauses of the "Prospectus for the Public Offering of Convertible Corporate Bonds by Lei Zhi Holdings Group Co., Ltd." and the relevant regulations of the China Securities Regulatory Commission for the public offering of convertible corporate bonds, the conversion price of "Lei Zhi Convertible Bond" was adjusted to RMB 7.74 per share, effective from June 8, 2022. For details, please refer to the "Announcement on the Adjustment of the Conversion Price of Lei Zhi Convertible Bond" (Announcement No.: 2022-049) published by the company on June 8, 2022, on the Juchao Information Network (www.cninfo.com.cn).