The Board of Directors of Qian Hu Corporation Limited (the "Company") wishes to announce that on 9 June 2003, Guan Guan Aquarium Sdn Bhd ("Guan Guan"), a wholly owned subsidiary of the Company, signed a Joint Venture Agreement ("JVA") with The Pet Safari Pte Ltd ("Pet Safari"), a company incorporated in Singapore, to set up a joint venture company ("JVC") in Malaysia for the purpose of provision of pets, pet supplies, boarding, grooming, pet food, pet accessories and other ancillary services in Malaysia.
The name of the JVC is PLC Pet Safari (Kuala Lumpur) Sdn Bhd. The authorized share capital of the JVC will be RM500,000 divided into 500,000 shares. Its initial issued and paid-up share capital will be RM300,000, to be held in the following proportions:
Guan Guan 49%
Pet Safari 51%
The investment of Guan Guan in the joint venture company will be financed from its internal funds.
The investment in the joint venture company is not expected to have a material impact on the earnings per share and the net tangible assets per share of the Company or of the Group for the financial year ending 31 December 2003.
None of the directors or substantial shareholders of the Company has any direct or indirect interest in Pet Safari or the joint venture company.