Zhitong Finance App News, Chenghui International (01094) announced that on April 12, 2024, the company and Ms. Liu Luoxiu signed a separate EPC service framework agreement. According to the agreement and complies with the terms of the agreement, the Group can provide EPC services to Ms. Liu's contacts; according to the main procurement framework agreement, the Group can purchase PV modules from Ms. Liu's contacts, and Ms. Liu's contacts can supply PV modules to the Group, subject to the terms and conditions set forth in the main procurement framework agreement, which is valid until March 31, 2025.
The Group is mainly engaged in providing procurement services, including services for EPC projects. On March 31, 2023 and the six-month period ending September 30, 2023, the Group obtained revenue of approximately HK$37.6 million and HK$84.8 million, mainly involving procurement of goods for EPC projects, mainly related to photovoltaic development projects. In line with the rapid development of the new energy market, the Group is strategically planning to further expand its business to provide comprehensive services to customers engaged in the new energy development business, especially photovoltaic development that widely uses the EPC model. As one of the most important and key components of photovoltaic power generation, the Group hopes to improve the quality of its services by ensuring the supply of photovoltaic modules to meet customer needs in a stable manner. As mentioned above, Ms. Liu's contact is a long-term market participant in the new energy industry and has good contacts in the field of new energy. The group expects that Ms. Liu's contact procurement support for suitable photovoltaic modules will greatly improve the quality of the Group's comprehensive EPC services, thereby improving its competitiveness, because a more stable supply of products reduces the chance of project development interruptions. This is common in the new energy market. To ensure that the Group can increase revenue and profits in a more sustainable manner, management believes that it would be beneficial and useful to maintain a stable source of PV modules by establishing a main procurement framework agreement.