The board of directors of Asia Cassava Resources Holdings Limited announced that the Group is going to establish a joint venture company (the "JV company"), a limited liability company established under the laws of Laos, and its principal activities are production and sales of tapioca starch (the "JV Business"). Pursuant to the terms of the relevant agreement (the "Agreement"), the JV company's registered capital will be USD 10,000,000 (equivalent to approximately HKD 78,000,000). The Group agreed to contribute (by stages) in the form of cash of USD 5,000,000 (equivalent to approximately HKD 39,000,000) to subscribe the 51% equity interest in the JV Company and Ms. Moui Vannavong ("Ms. Vannavong", another party to the Agreement) agreed to subscribe 49% equity interest in the JV Company with contribution of the land and equipment (which are valued at US$5,000,000 approximately).

The financial position and performance of the JV Company will be included in the Company's consolidated financial statements accordingly. Pursuant to the terms of the Agreement, the board of directors of the JV Company consists of 5 directors, in which 3 directors to be nominated by the Group and the remaining 2 directors to be nominated by Ms. Vannavong.