Shanaya Limited has entered into a Business Collaboration Agreement ("BCA") with Environmental Projects Co-operative Association ("EPCA"), a Saudi-based for-profit environmental association under the Ministry of Human Resources and Social Development to explore opportunities of establishing an integrated cruise and ship waste management and treatment facility near to the Jeddah Islamic Port ("JIP") in Saudi Arabia, the second-largest and second-busiest port in the Arab world. According to data published by the United Nations ("UN") and the Economist Intelligence Unit ("EPCA"), Saudi Arabia's ports saw a growth of 36% in the number of passengers between 2021 and 2022 while container throughput grew 13% over the same period. In late-2022, the Saudi Ports Authority ("Mawani") awarded construction contracts worth USD171 million to deepen and build new berths at JIP.

Meanwhile, Cruise Saudi, the government agency responsible for developing cruise infrastructure in JIP and two other ports, has set a target of attracting one million cruise passengers by 2028. Putting the expansions aside, JIP is already facing issues in managing air and water pollution due to the absence of an adequate port reception facility. Shanaya and EPCA aim to construct an integrated facility capable of handling the recovery of valuable material for repurposing and recycling, ultimately reducing the carbon footprint of JIP.

The project supports the circular economy model outlined under The Saudi Vision 2030. The facility in discussion is set to be a first-of-its-kind in Jeddah, Saudi Arabia. Shanaya owns 2 facilities at 27 Kian Teck Drive and 3A Tuas South Street 15, Singapore, and is dedicated to providing cruise and ship waste management services.

In 2022, the Group handled waste discharge for approximately 10.4% of the vessels arrived in Singapore ports. Under the BCA, Shanaya and EPCA will jointly conduct a feasibility study for the project. The Group will be taking on responsibilities such as developing the business plan, design, and layout of the facility while EPCA focuses on regulatory requirements, fund raising, location sourcing, and stringing together the relevant industrial partners.

The BCA is valid for a period of six months. After which, and upon the necessary preparations, both parties will enter into a joint venture agreement. The Group's entry into the BCA is not expected to have a material impact on the earnings per share or net tangible assets per share of the Group for the current financial year ending 31 December 2023.

None of the directors or controlling shareholders of the Company has any interest, direct or indirect, in the BCA, save for their respective shareholdings in the Company (if any). The Company will make such further announcement(s) to keep shareholders informed, as and when there are material updates or developments in connection with the BCA.