Zhitong Financial APP News, Longsheng Group Holdings (06829) announced that the company entered into a non-legally binding framework agreement with a precast concrete manufacturer of the people's Republic of China on May 31, 2023 and July 5, 2023, respectively, and entered into a consultancy agreement with an architectural design consultancy firm in Hong Kong.
Under the framework agreement, the company agreed to work with precast concrete manufacturers to prepare MIC projects in Hong Kong and to jointly implement and complete any projects involving MIC works for a period of three years. The company also agreed to design and promote MIC engineering and other precast concrete components in Hong Kong. The precast concrete manufacturer agreed to optimize the design of precast concrete components and send experts to Hong Kong for site visits to ensure the quality of the MIC project and other precast concrete components.
In accordance with the consultancy agreement, the company agreed to appoint consultants to provide consultancy services to the Hong Kong buildings Department for approval of the MIC system in principle.
The Board is of the view that the conclusion of framework agreements and consultancy agreements with precast concrete manufacturers and consultants will go a long way in diversifying the company's existing business and broadening its sources of revenue, enrich its existing construction expertise and enable the company to develop in a more all-round way. and help the company to catch up with the increasing market demand.
The Board is also of the view that precast concrete manufacturers specialize in the production of precast concrete components for MIC and that the company can use its expertise to consolidate the company's position in the field of MIC engineering in Hong Kong, which is therefore in the overall interests of the company and its shareholders.