As of June 7, 2024 (after the trading period of the Stock Exchange), Asian Citrus (00073) and its non-wholly-owned subsidiary Juyuan Wanjiang, together with joint venture partner Hubei Qi'ai Technology Group Co., Ltd. (Hubei Qi'ai), have entered into an agreement that will establish a joint venture company and develop its business. The business scope of the joint venture company will cover (including) the manufacturing, production, sales, and distribution of commodities and the provision of technology-related services.

According to the capital contribution agreement, the total registered capital of the joint venture company to be paid will be RMB 6 million, of which Juyuan Wanjiang and joint venture partner will contribute RMB 3.06 million and RMB 2.94 million, respectively, based on their respective proportions of the registered capital of the joint venture company. After its establishment, the joint venture company will be owned by (i) Juyuan Wanjiang, who will have a 51% equity interest; and (ii) the joint venture partner, who will have a 49% equity interest. The amount of the contribution is determined by the contracting parties through fair negotiation based on the initial capital requirements of the joint venture company.

The Group continues to diversify its business portfolio and expand its market share in China, thereby expanding its revenue base.

After the establishment of the joint venture company, it will be a non-wholly-owned subsidiary of the Group, which will mainly engage in (including) the manufacturing, production, sales, and distribution of commodities and the provision of technology-related services in China. The Board of Directors believes that the establishment of the joint venture company will help the Group expand its existing product and service portfolio. In addition, the Board of Directors believes that through the establishment of the joint venture company, the Group will benefit from possible cooperation with joint venture partners in the future, and the Group will also be able to expand the overall business of the Group and the joint venture company by leveraging the joint venture partner's expertise and business network.