The Board announced that on 13 March 2024 (after trading hours of the Stock Exchange), China Zenith Chemical Group Limited has entered into the JV Agreement with China Mining pursuant to which the parties agreed to establish the JV Company with a registered capital of RMB 20 million. Upon its establishment, the JV Company will be owned as to 51% by the Company and 49% by China Mining. The total registered share capital shall be injected into the JV Company within one year after the establishment of the JV Company.

Accordingly, the JV Company will be accounted for as a subsidiary of the Group and its financial results will be consolidated into the consolidated financial statements of the Group. The capital contribution of RMB 10,200,000 by the Company will be funded by internal resources of the Group. The amount of capital contributions was determined after arm's length negotiation between the parties to the JV Agreement with reference to the total registered share capital of the JV Company and their respective shareholding interest in the JV Company.

Distribution of profit: Each shareholder of the JV Company shall be entitled to, on a pro rata basis of the contributed registered capital, receive the dividend.