On 19 June 2024, Shanghai Seacon entered into an Agreement in relation to the JV Formation with Tianjin COSCO and DFTP-PICI, of which both are independent third parties. The principal terms of the Agreement are as follows: Date 19 June 2024 (after trading hours of the Stock Exchange) Parties: (1) Shanghai Seacon; (2) Tianjin COSCO; and (3) DFTP-PICI. Joint Venture: Tianjin Tianhui Shipping Co., Ltd.* (), subject to final approval of registration.

Principal scope of business: Ship operation and management. Registered capital and Capital Contribution The Parties shall make a total capital contribution of RMB 220 million, of which (i) Shanghai Seacon shall contribute in cash RMB 99 million, accounting for 45% of the registered capital of the Joint Venture; (ii) Tianjin COSCO shall contribute in cash RMB 99 million, accounting for 45% of the registered capital of the Joint Venture; and (iii) DFTP-PICI shall contribute in cash RMB 22 million, accounting for 10% of the registered capital of the Joint Venture. The Parties' equity percentages in the Joint Venture shall be proportional to their respective Capital Contribution.

The Parties shall make their respective Capital Contribution within one year after the registration of the Joint Venture, subject to further negotiation and agreement among the Parties, in the following manner: (1) Shanghai Seacon, Tianjin COSCO and DFTP-PICI shall make initial capital contribution in the amount of RMB 19.8 million, RMB 19.8 million and RMB 4.4 million, respectively, within 20 working days after the registration of the Joint Venture; and the remaining Capital Contribution shall be paid in a timely manner based on the Joint Venture's business development needs in proportion to the Parties' equity interest in the Joint Venture. The amount of Capital Contribution was determined after arm's length negotiations between the Parties with reference to the expected capital requirements and the preliminary business plan of the Joint Venture. The Capital Contribution to be made by Shanghai Seacon will be funded by internal resources of the Group.

Distribution of profits: The Parties shall be entitled to the distributable profits of the Joint Venture according to their respective proportion of paid-up Capital Contribution. REASONS FOR AND BENEFITS OF THE JV FORMATION: The Group is principally engaged in the provision of shipping services and ship management services. The JV Formation, which consolidated the resources and experience of Tianjin COSCO and DFTP-PICI, plays a constructive role in scaling up the shipping and ship management services capacity, strengthening the foundation of shipping services and improving capital usage efficiency, thereby enhancing the Company's competitiveness.

The Joint Venture will be principally engaged in ship operation and management. The JV Formation is expected to generate additional economic benefits to the Group and is in line with the Group's overall business strategy and interest in the long run. Having considered the above reasons for and benefits of the JV Formation and that the Capital Commitment is in proportion to the Group's interest in the Joint Venture, the Directors believe that the JV Formation and the terms of the Agreement are fair and reasonable and in the interests of the Shareholders as a whole.