SBI Offshore Ltd Announces Joint Venture with Honghua Group Limited's Honghua Holdings Limited

SBI Offshore Ltd announced that the Company has entered into a joint venture agreement with Honghua Holdings Limited (Honghua Holdings), a wholly-owned subsidiary of Hong Kong Stock Exchange-listed Honghua Group Limited (Honghua Group), to establish a joint venture company in which SBI holds a 30% interest (Joint Venture). HS Offshore Pte. Ltd. (HS Offshore) which was incorporated in Singapore as the wholly-owned subsidiary of the Company on July 4, 2011 with an initial issued and paid-up capital of SGD10 comprising 10 ordinary shares will be the vehicle for the Joint Venture. Both Honghua Holdings and SBI will as soon as practicable subscribe, in proportion to their respective shareholdings interest in HS Offshore, for such new ordinary shares such that the issued and paid-up capital of HS Offshore will be increased to USD1,000,000, comprising 1,000,000 ordinary shares. The principal activities of HS Offshore will be provision of contract manufacturing services to offshore and marine (O&M) equipment companies. It expects to have first-mover advantage as western offshore equipment companies seek out competent original equipment manufacturers in Asia in order to benefit from lower production costs and being closer to the shipyards in Asia, which account for the building of approximately 80% of all mobile offshore drilling and construction units in the world.