On 11 March 2014, FEGG acquired the entire equity of Treasure Construction Engineering Limited (TCEL) from its parent company, China State Construction International Holding Limited (CSC International). As the applicable percentage ratio for the acquisition calculated with Rule 14A.10 of the Listing Rules is less than 0.1%, the acquisition is exempt from the reporting, announcement and independent shareholders' approval. TCEL is a company that holds a Hong Kong Certificate of Register of General Building Contractor (RGBC). It has undertaken a number of building construction projects in Hong Kong and has a good reputation in the industry.
After the completion of the acquisition, FEGG, with its qualifications and reputation in the industry, conducts local and overseas main contracting business in the short-term period. In order to avoid competition within the industry, TCEL will not enter the main contracting construction market in Macau, nor participate in the Hong Kong government’s projects, the Hong Kong government shareholding’s public utilities or public agency projects, as well as large private development projects. TCEL will selectively participate in the construction projects of small to medium-sized private developers.
Since FEGG acquired TCEL from its parent company in 2014, TCEL has accumulated a total contract amount about HK$3 billion for main contracting business, with a cumulative turnover of more than HK$1.2 billion. Major projects under construction include The Emperor Hotel Hong Kong, One Kai Tak, L’ Aquatique, Mid-Levels Mosque Temple Street Residential Development Project, Chong’s Tuen Mun 514 Residential Development Project and other minor renovation projects.
The Emperor Hotel Hong Kong project has a contract sum of approximately HK$600 million. The construction of a 3-story basement, 2-storey podium and 25-storey guest rooms has been successfully delivered to the owner, Emperor International, and is now in use, with a total of 299 rooms, located in 373 Queen's Road East, Wan Chai, Hong Kong.
The L’ Aquatique project has a contract sum of approximately HK$550 million. It has constructed two 15-storey residential towers with one basement of parking lot, one-storey clubhouse, 14 typical floors and one duplex floor. It provides a total of 196 rooms from one studio to 3-bedroom units and 2 mega-size seafront luxurious residential units. This project has entered the stage of preparation and rehearsal of Fire Services Inspection. It is expected that the project will be delivered to the client in mid-2018 and formally delivered to the individual owner by the end of 2018. It derives a great significance meaning as it is a milestone project for the first cooperation of TCEL and FE Aluminium.
The contract sum of the Mid-Levels Mosque Temple Street residential project in Central is approximately HK$250 million. It has to construct one residential tower with 3-storey podium and 28 floors high. This residential building provides 94 units of 1-2 rooms and 4 complex units. Except the Lift Contractor which is Nominated Sub-Contractor (NSC), the rest are all Domestic Sub-Contractor (DSC), and the trade of curtain wall is with FE Aluminium as well. At present, the project has entered the concreting stage with aluminum formwork in 4 days cycle and is expected to be delivered to the owner in the fourth quarter of 2018.
The Chong’s Tuen Mun 514 project has a Construction Floor Area (CFA) of more than 20,000 m² and a contract sum of approximately HK$550 million. It is to construct a residential building with one basement parking lot, 4-storey podium of shopping mall and 20-storey residential tower, totally to provide 377 residential units. At present, the installation of tower crane is completed, formwork and rebar fixing are in progress. The facade, aluminum formwork and aluminum window of typical floors are in design stage. It is expected that the construction of the concreting 4 days cycle will be started in the third quarter of 2018, and the building will be top out at the end of 2018 and the owner will be delivered by the end of February 2020.
Based on the market platforms of CSC International and FF Aluminium in Hong Kong, Macau and overseas markets, TCEL is maintaining close cooperation with its brotherhood company and is striving to explore the market. We believe that we will quickly to open up the aspect and keep abreast with the curtain wall business in future.