Megachem (Thailand) Public Company incorporated joint venture known as Mega Fuji Graphite Limited in Thailand with an equity interest of 49%. The balance 51% equity interest is held by Fuji Graphite Works Co. Ltd. The Company, through its shareholding in Megachem Thailand, has an indirect equity interest of approximately 17.7% in Mega Fuji Graphite. The principal activities of Megachem Fuji Graphite consists of production and sales of expandable graphite and its initial registered capital is five million Thai Baht. This joint venture seeks to derive synergistic value by tapping on Fuji Graphite's deep expertise in production of expandable graphite and extensive distribution network in Asia. None of the directors and controlling shareholders of the Company or their respective associates has any interest, direct or indirect, in the above transaction, save through their respective shareholdings and/or directorships in the Company. The Company did not receive any notification from any of its controlling shareholders that they have any direct or indirect interest in the above transaction.