The board of directors of the company announced that, on 26 April 2019, China Huiyuan Juice Group Limited and Beijing Huiyuan Food & Beverage Co., Ltd. ("Beijing Huiyuan", together with the company, "Huiyuan") entered into an investment cooperation framework agreement with Tiandi No. 1 Beverage Inc. ("Tiandi No. 1") and Guangzhou Hezhi Investment Management Co., Ltd. ("Guangzhou Hezhi", together with Tiandi No. 1, the "Potential JV Partners") in relation to a potential establishment of a joint venture company in the People's Republic of China. Pursuant to the Cooperation Framework Agreement, it is intended, among others, that the parties will further discuss on the Proposed JV Establishment and enter into legally binding formal agreement(s) as soon as practicable. Pursuant to the Cooperation Framework Agreement, the Company, Beijing Huiyuan, Tiandi No. 1 and Guangzhou Hezhi intended to establish the Potential JV Company, which shall be held as to 60% by the Potential JV Partners and 40% by Beijing Huiyuan. Pursuant to the Cooperation Framework Agreement, the parties further intended that: the Potential JV Partners shall contribute an amount of RMB3.6 billion into the Potential JV Company by way of cash; Huiyuan shall contribute an amount of RMB 2.4 billion into the Potential JV Company by way of asset contribution, including registered trademarks in the brand name of "Huiyuan"; upon the establishment of the Potential JV Company, the Potential JV Company shall, at an appropriate time and upon arm's length's negotiation, acquire the assets, equity interests and channels required for its operating activities from the Group at a fair value of RMB 3 billion, for the purpose of expanding the fruit juice market; and the Company will establish a long-term cooperative relationship with Tiandi No. 1 and the Potential JV Company by supplying raw materials (puree and concentrated juice) required for the fruit juice production and processing services in relation to the fruit juice production. The company has been actively looking for opportunities for other investors to invest in its business in order to maximize return to the Company and the shareholders of the company. The Proposed JV Establishment and the transactions as contemplated thereunder the Cooperation Framework Agreement, if materialized, would have the following effects on the Group: the Potential JV Partners and the Group shall complement each other's strengths in product categorisation, marketing areas and distribution channels, etc. so as to facilitate greater expansion and development of the juice beverage business, thereby consolidating and accelerating the overall future growth and development of the Group; the positive operation of the Potential JV Company would contribute to the growth and preservation of the Group's asset value; in view of the long-term cooperation between the Potential JV Partners and the Potential JV Company, the Group will be able to secure stable business order and recurring operating cash flows, which is beneficial to the healthy and steady development of the Group's business; and through cash obtained from the potential asset transactions with the Potential JV Company as well as the recurring operating cash flow generated from the long-term cooperation with the Potential JV Partners, the Company's cash position would be improved and so will ease its debt position.