The Board of Directors of Yangzijiang Shipbuilding (Holdings) Ltd. announced that the Company has through its wholly-owned subsidiary, Yangzijiang Terminals China Holding Pte. Ltd. entered into a joint venture agreement with Wuxi China Resources Gas Co., Ltd. and Jiangyin Xinyangchuan Enterprise Management Center (Limited Partnership) to establish a proposed joint venture company, Jiangsu Run Yuan Energy Co., Ltd. with an aggregate initial issued and paid-up capital of RMB 20 million. WCRG is a subsidiary of China Resources (Holdings) Company Limited, one of the largest state- owned conglomerates and a leading gas utilities group in China, principally engaged in downstream city gas distribution business including piped natural gas distribution and natural gas filling stations operation. Its operations are strategically located in regions that are economically more developed and densely populated, with rich reserves of natural gas in China. Xinyangchuan is a limited partnership established in the People's Republic of China. Xinyangchuan is principally engaged in the business of investing in companies operating in various industries such as energy, manufacturing and property development. Mr. Ren Yuanlin (the Honorary Chairman and substantial shareholder) and his son, Mr. Ren Letian (the Executive Chairman and Chief Executive Officer) own an aggregate of 41% interest in Xinyangchuan. Accordingly, Xinyangchuan is an associate of Mr. Ren Yuanlin pursuant to the Listing manual of the Singapore Exchange Securities Trading Limited (the listing manual) and therefore an interest person transaction pursuant to Rule 904 of the listing manual. The joint venture by YTCH (which is an "entity at risk" pursuant to Rule 904 of the Listing Manual) with Xinyangchuan will constitute an "interested person transaction" under Chapter 9 of the Listing Manual. It was agreed that YTCH, WCRG and Xinyangchuan shall subscribe for 30%, 51% and 19% equity interest in the proposed joint venture company respectively. The initial capital contribution by the Company into the proposed joint venture company shall be RMB 6 million (30% of RMB 20 million). Further capital injection may be made in accordance with approved investment opportunity, relevant proposal and implement plan. The principal activities of JREC is related to those investment and operation of the Jiangyin LNG project including the construction of LNG storage facilities, natural gas trading and businesses in relation to other parts of the LNG supply chain. The Board is of the view that the proposed establishment of the joint venture company is in the long- term interest of the Group as it will provide the Group with an initial exposure to a broader range of LNG-related business, set the stage for it to capture the long-term growth potential in this market segment, and enhance shareholders' value. The above establishment of the joint venture company will be funded internally and is not expected to have any material impact on the earnings per share or net tangible assets of the Group for the current financial year ending 31 December 2021.