Dynasty Home (01198) announced that on February 10, 2023, Guangdong Hengcheng (an indirect wholly-owned subsidiary of the company) signed a construction agreement with Science City (Guangzhou) Construction and Guangzhou Construction. Guangdong Hengcheng agreed to entrust Science City (Guangzhou) Construction (as general contractor) and Guangzhou Construction (as a co-contractor) to provide construction services for the construction project, at a total cost of about RMB 182 million (tax included).
As the project was adjusted due to production line restructuring, Guangdong Hengcheng (an indirect wholly-owned subsidiary of the company) signed a supplementary construction agreement with Science City (Guangzhou) Construction and Guangzhou Construction on January 24, 2024. According to this agreement, the total cost of providing construction services for construction projects was reduced to about RMB 51.6767 million (tax included).
The announcement stated that the conclusion of construction agreements and supplementary construction agreements and development and construction projects is beneficial to the Group, as construction projects will enable the Group to manufacture furniture and accessories and further develop its main business (i.e. design, sale and manufacture of furniture).