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.