Yee Hop Hldgs (ASX: 01662) announced that on July 6, 2026, after trading hours, its wholly-owned subsidiary, Yee Hop Global, entered into a shareholders' agreement with joint venture partner, Crown Glory Industrial Development Limited, and the joint venture company, Yee Hop New Materials Holdings Limited.

Under this agreement, Yee Hop Global will subscribe for 5,100 shares in the joint venture company at a cost of HK$510,000, while the joint venture partner will subscribe for 4,900 shares for HK$490,000.

The joint venture company will be a non-wholly owned subsidiary of Yee Hop Hldgs, with Yee Hop Global holding a 51% interest and the partner holding the remaining 49%.

Business Operations of the New Entity

According to the terms of the shareholders' agreement, the joint venture company and its subsidiaries will engage in business activities, specifically: (i) providing technical services, machinery, and equipment for the production of eco-friendly construction materials using fly ash and other industrial waste; and (ii) distributing the recycled material construction products manufactured through the aforementioned technical services of the joint venture group.

Strategic Rationale for the Venture

The establishment of this joint venture enables the group to leverage its corporate network and capital while utilizing the partner's licensed patented technology.

This initiative will process industrial solid waste and fly ash into environmentally friendly building products, creating a new, high-margin revenue stream that aligns with regional low-carbon transition policies.

The board of directors believes that, after evaluating the expected returns from service fees to be charged to the operator, this joint venture represents a favorable investment opportunity for the group.

Furthermore, under the fly ash recycling technical service agreement, the service fees payable by the operator to the joint venture group, calculated based on a minimum guaranteed fly ash processing volume, are expected to provide a stable income source for both the joint venture group and Yee Hop Hldgs.

Related Equipment Procurement Agreement

Also on July 6, 2026, after trading hours, joint venture subsidiary A, Yee Hop New Materials (Jiangmen) Co., Ltd., which is a wholly-owned subsidiary of the joint venture company and a non-wholly owned subsidiary of Yee Hop Hldgs, entered into an equipment procurement and installation agreement with a contractor and the operator concerning the business.

Under this agreement, joint venture subsidiary A and the operator engaged the contractor to carry out equipment procurement at an approximate cost of RMB 71.7 million.

Upon completion of the procurement and payment, the machinery and equipment acquired under this agreement will belong to joint venture subsidiary A and will be recorded as its assets.