NetDragon Websoft Holdings Limited entered into the JV Agreement with Fujian Local Industry Fund and Fujian Leading Enterprises Fund in respect of the formation of the JV Company. The JV Company will be principally engaged in the application of information technologies concerning, among others, the healthcare and tourism industries and the development and application of VR and AR technology in the PRC, and seeks to expand the coverage of its products and services to One Belt, One Road countries. Under the JV Agreement, the parties agreed that, the JV Company shall be established and shall be held as to 60% by NetDragon, 30% by Fujian Local Industry Fund and 10% by Fujian Leading Enterprises Fund. The JV Company will be deemed a non wholly-owned subsidiary of the company. The JV Company shall have a registered capital of RMB 1,000,000,000, which shall be contributed by NetDragon (Fujian), Fujian Local Industry Fund and Fujian Leading Enterprises Fund as to RMB 600,000,000 in cash, RMB 300,000,000 in cash and RMB 100,000,000 in cash respectively. Within 30 days of the establishment of the JV Company, NetDragon (Fujian) shall contribute RMB 18,000,000 while Fujian Local Industry Fund and Fujian Leading Enterprises Fund shall contribute RMB 9,000,000 and RMB 3,000,000 respectively within 5 days after NetDragon (Fujian) has made the initial contribution to the JV Company. The remaining portion of the capital contribution of each party shall be made based on the actual capital requirement of the JV Company for business development and approved by the board of directors of the JV Company.