The board of directors of the China Ocean Industry Group Limited announced that on 20 March 2020, the Company has entered into a memorandum of understanding on co-operation with Dragon Star Shipping Sdn Bhd and Jiangxi Jingniu Hovercraft Manufacturing Co., Ltd. Pursuant to the MOU, the parties thereto agreed to, among other things, the following intentions on their co-operation: Dragon Star intends to order 30 passengers ships and 5 hovercrafts with a capacity of 60-80 passengers from the Company and Jiangxi Jingniu. The Company and Jiangxi Jingniu are responsible for the development and construction of 100 high-speed passenger ships with a capacity of 300 passengers; and 20 passenger and vehicle ships with a capacity of 80 vechicles and 550 passengers. The technical requirements and the delivery time are subject to the mutual agreement of the parties under the MOU.