The South China Assets Holdings Limited (SCHC) Board and the South China Holdings Company Limited (SCAH) Board announced that on 3 February 2020, South China Industries (BVI) Limited (SCI) (a wholly-owned subsidiary of SCHC) and SCAH entered into the MOU for an intention to cooperate in production and sales of medical face masks and related products. On 9 April 2020 (after trading hours), SCI and SCAH entered into the JV Agreement for the purpose of formation of the JV Company. The JV Company will be an investment holding company and will directly or indirectly carry out production and sales of medical face masks and related products. Upon the formation of the JV Company, SCAH will hold 60% of the equity interests in the JV Company. Therefore, the JV Company will be a non-wholly-owned subsidiary of SCAH, and its financial results will be consolidated into the financial statements of SCAH. SCI will hold 40% and SCAH - 60%. Maximum Contribution: HKD 4 million, to be contributed by SCI and SCAH as: (1) 40% (amounting to HKD 1.6 million in the form of a shareholder loan) by SCI; and (2) 60% (amounting to HKD 2.4 million in the form of a shareholder loan) by SCAH.