Hanison Construction Holdings Limited Board announced that on 19 January 2021, HCL entered into the Second Supplemental Agreement in respect of the Project relating to the SKW Development to develop the SKW Site as a residential development with the Hanison Construction Holdings Limited; FYL and SHK to, among other things, further extend the term of the SKW Development Agreement and change the respective Relevant Shares in the SKW Site owned by HCL and FYL. Since the signing of the SKW Development Agreement, efforts have been made to design the planning of the SKW Development and application has been submitted to the Town Planning Board for planning permission. The Board is delighted to announce that the proposed rezoning to increase the plot ratio and the latest planning permission have been approved by and obtained from the Town Planning Board on 4 September 2015 and 3 May 2019, respectively, and the Government has determined the land premium payable for the SKW Site which is an aggregate amount of approximately HKD 2,683 million. Such land premium offered by the Government is acceptable to both FYL and HCL. Taking into consideration the latest development schedule for the SKW Development, the parties to the SKW Development Agreement entered into the Second Supplemental Agreement pursuant to which, among other things, the parties agreed to further extend the term of the SKW Development Agreement to 31 December 2021 which may be further extended for two years until 31 December 2023 by either party serving a written notice to the other and change the respective Relevant Shares in the SKW Site owned by HCL and FYL whereby HCL's Relevant Shares will be adjusted up on a pro-rata basis from 23.63% to 24.82% based on the change in the site area of land to be co ntributed by FYL to the SKW Development (without any change to the land to be contributed by HCL). The total site area to be regranted by the Government upon land exchange for the development will be approximately 235,990 square feet. The total maximum gross floor area will be approximately 613,570 square feet. In addition to the amendments made to the SKW Development Agreement pursuant to the Second Supplemental Agreement, the company contemplated that the total amount of contribution which the respective parties to the SKW Development Agreement will need to contribute for the Project covering the projected increase in the Project Costs and indemnities that may need to be taken by them, shall also be increased. As at the date of this announcement, the Group had already paid approximately HKD 666 million representing the Group's prorated shares of the land premium amount according to the Group's Relevant Shares. The joint development arrangement under the SKW Development Agreement as supplemented by the Second Supplemental Agreement is a joint arrangement formed solely for the Project, namely the development of the SKW Site (i.e. the various land lots in Demarcation District Nos. 374 and 375 in So Kwun Wat) for sale.