Over recent years, local and overseas construction markets, particularly those in the Southeast Asia Region, have been thriving. Customers in those areas prefer to select construction companies with sound construction techniques and project management experience. The Group inherited vast experience in the construction field from its parent company and received a team of individuals highly experienced in the construction management following its acquisition by CSCIHL. The Group is now equipped with both stronger capacity and more sufficient resources to undertake general contracting work.
The Group has acquired 100% of equity interests in Treasure Construction Engineering Limited (“Treasure Construction”) from CSCIHL on 11 March 2014. Since the applicable percentage ratios as defined in Rule 14A.10 of the Listing Rules for the Acquisition are less than 0.1%, the Acquisition is exempt from the reporting, announcement, independent shareholders’ approval requirements. Treasure Construction is licensed with a Certificate of Registration of General Building Constructor previously completed a number of building construction engineering work in Hong Kong and has a proven engineering track record.
Upon completion of above acquisition, the Group will have the qualification and track record to quickly enter into the general contracting business both in local and overseas markets. To avoid intra-group competition, Treasure Construction will not engage in general contracting work in Macau, nor participate in engineering projects by the Hong Kong Government, utilities or public authorities in which the Hong Kong Government is a shareholder, as well as large scale engineering projects involving private developers. Treasure Construction may undertake small to medium size building construction projects with private developers in Hong Kong and anywhere overseas. The Group is actively locating potential general contracting projects in these areas.