The board of directors Tan Chong International Limited informed the shareholders of the company and potential investors that Fuji Heavy Industries Limited ("FHI"), with respect to its plan to establish a joint venture company in February 2017 with TC Manufacturing and Assembly (Thailand) Co., Ltd., a wholly owned subsidiary of the Company for the complete knock down (the "CKD") production of Subaru vehicles in Thailand. The proposed JV Company will be established in Thailand. The Group and FHI will own 74.9% and 25.1% of the JV Company respectively. FHI and the Group propose the JV Company to further reinforce their existing business foundations in Southeast Asia. FHI intends to work with the Group to expand the CKD production of Subaru vehicle for distribution in the region. The JV Company aims to commence production in 2019. The vehicles produced shall be distributed by the Group through its Subaru dealer network.