We provide (I) decoration works and (ii) building construction works for Macau contractors mainly in Macau. We have been operating interior decoration business in Macau since 2007 and started to provide building construction projects in 2015.
As a decoration contractor, we mainly undertake decoration projects in the private sector, including hotels and casinos, restaurants and retail outlets, and other properties. Our renovation projects include the first renovation of newly built properties or the refurbishment of existing properties. In general decoration projects, the scope of decoration works includes construction drawings, procurement of materials, implementation of decoration works, site supervision, management of subcontractors and overall project management. Up to December 31, 2014, 2015 and 2016, we have completed one, ten and two renovation projects respectively. For the years ended December 31, 2014, 2015 and 2016, approximately 86.4%, 74.6% and 35.7% of revenue came from hotel and casino customers. Since our establishment, we have provided services to five of the six licensed casino operators in Macau.
With our experience in decoration projects, we have diversified our business by providing building construction services for the first time in Macau in 2015. During the track record period, the first building construction project undertaken by us as the main contractor was also the only building construction project undertaken by us during the track record period. The scope of our building construction projects includes structural works, metal wallboards, painting, approval works, electrical and mechanical installation works and decoration works. As at the latest practicable date, the building construction project is still under construction and has not yet been completed. Based on the best estimates of the directors, the completion date of the project is expected to be the fourth quarter of 2017.
In order to better control the quality and progress of our projects, we generally use our own workers to deal with the more complex parts of the project and engage subcontractors to handle certain labour-intensive projects through independent contracts with subcontractors. As at the last practicable date, we had about 336 direct workers in Macau. According to the terms of the contract with the subcontractor, we may be responsible for purchasing the materials required for the project, while in other cases, the subcontractor may be responsible for purchasing all materials. As at the latest practicable date, there are about 64 subcontractors on our approved list, of which 41 have worked with us for three years or more.
We have obtained decoration projects and building construction projects through competitive tendering procedures or bidding invitations. After the award of the contract, we usually make a detailed project plan for the construction quality of the project. Our customers may pay in advance after the execution of the contract in accordance with the terms of the relevant contract. We are generally required to provide a performance bond to ensure our proper and punctual performance and to collect monthly progress payment from our customers according to the value of the project.
CEO： Zhenyu Xie
Market： Hong Kong motherboard
Listing Date： 01/16/2018