S E A Holdings Limited and HKL (an independent third party) have agreed to establish a joint venture in the JV Company, in which each of the Company and HKL will own 50% upon the Completion. The JV Company through its wholly-owned subsidiary (i.e. the Project Company) is holding the Land located at South Bay Road, Repulse Bay, Hong Kong for construction and development into luxury residences. Upon Completion, the JV Company will cease to be a subsidiary of the Group and will not be consolidated into the accounts of the Group.