The Board of the Sinotrans Limited announced that, on 11 June 2021, the Company entered into the Partnership Agreement with China Merchants Venture Capital Fund, L.P. and China Merchants Venture Capital Management Co. Ltd. in relation to the establishment of the Fund, pursuant to which, the total capital contribution of the Fund shall be RMB 300.1 million, and CMVC (as a limited partner), the Company (as a limited partner) and CMVCGP (as the general partner) shall make cash contribution in the amount of RMB150 million, RMB150 million and RMB0.1 million, respectively. The Fund will not be considered as a subsidiary of the Company and its financial results will not be consolidated into the accounts of the Company. As at the date of this announcement, both the general partner (executive partner), being CMVCGP, and limited partner of CMVC are subsidiaries of China Merchants, the ultimate controlling shareholder of the Company, CMVCGP and CMVC are therefore connected persons of the Company. Therefore, the entering into of the Partnership Agreement and the transaction contemplated thereunder constitute a connected transaction of the Company under Chapter 14A of the Listing Rules. As the applicable percentage ratio (as defined under the Listing Rules) in respect of the entering into of the Partnership Agreement and the transaction contemplated thereunder is more than 0.1% but less than 5%, such transaction is subject to the reporting and announcement requirements but exempted from the independent shareholders' approval requirement under Chapter 14A of the Listing Rules.