Shui On Land Limited announced that on 6 March 2018, Shanghai Panrui a wholly-owned subsidiary of the Company, entered into the Joint Venture Agreement with the Founder Securities Co., Ltd. in relation to the establishment of the Joint Venture Company for the purpose of potential future investment in an urban transformation and redevelopment project in Qingpu District, Shanghai, the PRC. The Joint Venture Company has an initial registered capital of RMB 4.9 million, of which Shanghai Panrui will contribute and own 49% of the equity interests, and the JV Partner will contribute and own 51% of the equity interests. The amount of capital contribution to be made by the parties was arrived at after arm's length negotiations between the parties having taken into account the expected capital requirements of the Joint Venture Company. Shanghai Panrui plans to satisfy its initial capital contribution of RMB 2.401 million in the Joint Venture Company by internal resources.