TH Heavy Engineering Berhad entered into a strategic collaboration agreement with TELLUS ASIA SDN BHD and ENIGMA TECHNICAL SOLUTION SDN BHD, in relation to exploring a potential collaboration between the Parties in jointly pursuing potential shipbuilding and ship repair projects as well as in support services for maritime sector The Agreement allows the Company, TELLUS ASIA and ENIGMA ("the Parties") to memorialize the intention of the Parties to explore and discuss the potential areas of collaboration and cooperation and the respective roles and obligations of the Parties related to any particular Project, in a manner that will be mutually beneficial to the Parties, including entering into a definitive formal agreement to implement the Potential Collaboration or to set up a joint-venture company to jointly undertake a Potential Project. Immediately after the execution of this Agreement or as soon as possible thereafter, the Parties will: discuss, evaluate and assess the feasibility of a Potential Collaboration including the details thereof for which purpose the Parties shall periodically meet to discuss and exchange information on and for the Potential Collaboration; discuss, develop and agree on the details of the Potential Collaboration including the appropriate arrangements to be put in place, including the business model, of the Potential Collaboration, the business and contractual structure of the Potential Collaboration and the commercial terms and conditions thereof to be incorporated into a definitive agreement to be entered into by the Parties in respect of the Potential Collaboration; and discuss, develop and agree on the approach to be taken in executing the Project being the object of the Potential Collaboration and in meeting the funding requirements for the Project.