Today, a cooperation agreement on establishing a cable joint venture was entered by and between Yangtze Optical Fibre and Cable Joint Stock Limited Company (stock code: 06869.HK, hereinafter referred to as "YOFC") and PT Fibre Optik Teknologi Indonesia (hereinafter referred to as " PT FOTI") in Singapore.

The newly established cable joint venture was YOFC's second joint venture in Indonesia, whose its first joint venture named Yangtze Optical Fibre and Cable (Indonesia) Co., Ltd. was established in January 2015. The paid-in capital of the joint venture is 14 million dollars and contributed in cash, with the share proportion being 70: 30 (70% by YOFC and 30% by PT FOTI). Upon completion, the joint venture will has a cable production capacity of 2 million core kilometers.

YOFC has accelerated its globalization layout since its listing to follow President Xi Jinping's "Belt and Road" Initiative. The joint venture is another milestone of YOFC's step into overseas market, marking that YOFC is quickening its pace of internationalization and globalization. As the world's largest supplier of optical fibre preform, optical fibre and optical cable, YOFC has good brand image and advanced technologies, while PT FOTI enjoys good relationships with local government and customers, and is familiar with the local telecommunication market. Thus, their combination and mutual cooperation are conducive to resource complementarity, core competitiveness improvement, and participation into Indonesia and ASEAN market competition for greater market shares.

Indonesia is the world's fourth most populous country with a population of 260 million. In recent years, it enjoys stable political environment and steady economic development, but has a relatively slow development of telecommunications industry and low popularity of internet and broadband. In this regard, the Government of Indonesia launches a national broadband plan to substantially boost the development of internet and broadband, so it is expected that Indonesia will usher in the peak of optical network construction, which will bring huge demands for optical fibre. With the establishment of this joint venture, YOFC will establish its industry chain of optical fibre and cable in Indonesia, and the joint venture will integrate its shareholders' resources and expand businesses from Indonesia to neighboring countries and regions, striving to become the most influential optical cable manufacturer in Indonesia and ASEAN.