CNQC Introduces Great Wall as Strategic Investor and Establishes a “Belt and Road” Asset Fund

(16 May, 2017 - Hong Kong) CNQC International Holdings Limited ("CNQC International," "the Company," together with its subsidiaries, collectively referred to as "the Group”, stock code: 1240.HK), a leading property developer and contractor in Singapore, entered into a limited partnership agreement with Great Wall International Investment I Ltd (“Great Wall International Investment”), a wholly subsidiary of  Great Wall Pan Asia International Investment Company Ltd (“Great Wall”), in relation to the formation of a fund ("Fund"). At the same time, the Group and Great Wall agreed to establish a strategic cooperation, to enhance it between the existed investment funds of both parties. It will also further expand the resources of property development projects, increase the magnitude of the cooperation and focus on the development of the “Belt and Road” asset funds.

According to the agreement, CNQC Asset Management Ltd, a wholly subsidiary of the Group, together with Great Wall International Investment, and Guotsing Asset Management Ltd (indirectly wholly-owned by the controlling shareholder Guosting Holdings Co., Ltd) committed to establishing the Fund. The committed Fund size at US$280 million (equivalent to approximately HK$2180.4 million). While, CNQC has conditionally agreed to commit a cash contribution of US$90 million (equivalent to approximately HK$700.8 million) to the Fund, representing approximately 32.14% of the committed fund size. Great Wall agreed to contribute 65.72% of the committed fund size.

Meanwhile, the Group entered into a strategic cooperation agreement with Great Wall, to improve the partnership of existed funds and businesses. Pursuant to this agreement, Great Wall will consider prioritizing the introduction of the Group as a general contractor, provided that the Group offers similar terms to other tendered contractors, to jointly develop any property development projects of Great Wall in Hong Kong, Macau, and Singapore. If Great Wall has property development projects in any other areas, Great Wall will further discuss with the Group on the feasibility on such cooperation. Furthermore, the Group will consider prioritizing the introduction of Great Wall, provided that Great Wall offers similar terms to other potential investors, to jointly develop or participate in the project investment funds of any property development projects of any members of the Group.

Cheng Wing On Michael, the Chairman of CNQC said: "CNQC has been developed in Singapore for 18 years and has entered into Hong Kong, Macau, Indonesia, Vietnam and other Southeast Asia countries successively. Introducing competitive business partner is a crucial step to implementing and expanding our business. Coinciding with the ‘Belt and Road’ policy, Chinese government support multinational companies to catch more business opportunities and explore new markets, as well as to improve the investment merge in Asia area. Great Wall is an international investment company with diversified market resources and qualified profit performance history, while CNQC is one of the first-tier property developer and contractors in Singapore. Thus, this cooperation is a positive response to the government. It enables the Group position at the view of strategic development, clenching market opportunities and seeking for the best resource allocation.   Our cooperation will integrate and share each company’s market status and network resources to pursuit for mutual benefit. The Fund, established by both parties, will be used to invest in the development of Shunfu Villa project. We believe it will become a showcase project for branding once be accomplished and bring a promising interest to the Group. We will advocate our superiorities in business and resources aspects, to perseveringly bring long-term investment return to business partners and shareholders.”

Shunfu Ville project is a collective sale project. It is one of the largest collective sales in Singapore’s history. The project located near the Bishan-Thomson area, where is welcomed by house buyers due to its prestige area, fully-equipped with traffic and convenience. The site covers an area of approximately 38,000 sq.m. with an estimated gross floor area of over 100,00 sq.m. The Group intends it to be developed as a private condominium with over 1,000 apartments.