On 25 September 2020 (after trading hours), Watts International Maritime Engineering Limited as service provider and Watts Gallop as service recipient entered into the Master Construction Services Agreement. Pursuant to the Master Construction Services Agreement, the Group will, if engaged by Watts Gallop Group, provide engineering construction services to Watts Gallop Group. The engineering construction services shall include but not limited to (i) marine engineering construction services, (ii) municipal public engineering construction services and (iii) other engineering construction services that may be provided by the Group. The Master Construction Services Agreement will be valid from the Effective Date to 31 December 2022. The Master Construction Services Agreement and the transactions contemplated thereunder and the proposed annual caps is conditional upon the approval by the Independent Shareholders in accordance with the Listing Rules. When determining the fees to be charged by the Group for the engineering construction services to be provided by the Group under the Master Construction Services Agreement, the Company will mainly consider the expected gross profit margin of the project based on scope of work, nature, size, duration, cost of raw material and subcontractors, complexity etc.