On September 2, Gelonhui: Shen Tong Technology (02495.HK) announced that on August 31, 2024, the company signed a strategic cooperation agreement with China State Construction Engineering Corporation's indirect subsidiary, China Construction First Bureau Construction Development Co., Ltd. ("China Construction First Bureau Construction Development"). Under the strategic cooperation agreement, both parties agree to cooperate in the following areas:
Industrial park construction projects. As the company's business continues to expand, the company will gradually participate in industrial park construction projects in Shanghai, Wuhan, Malaysia, and other locations. China Construction First Bureau Construction Development will continue to leverage its professional expertise and experience in the construction field to collaborate with the company in providing high-quality construction services to ensure the quality, safety, timely delivery of projects, and fully support the further expansion of the company's business.
Intelligent construction business. China Construction First Bureau Construction Development's subsidiary, China Construction First Bureau Technology Co., Ltd. ("China Construction First Bureau Technology"), has launched its self-owned brand "Linker" smart construction site system, establishing a smart construction platform to provide comprehensive intelligent management for numerous ongoing projects of China Construction First Bureau Construction Development. China Construction First Bureau Construction Development will promote deep cooperation between China Construction First Bureau Technology and the company to jointly participate in the intelligent construction business of construction projects undertaken by China Construction First Bureau Construction Development.
Intelligent operation business. As both parties are actively expanding their operation business, they will negotiate to establish an operation company to achieve complementary advantages in the industrial value chain. The company will be responsible for providing comprehensive intelligent services in the industrial park, while China Construction First Bureau Construction Development will be responsible for providing construction services. Both parties will integrate their resources in the construction and operation fields to jointly promote the efficient implementation of projects.
According to the strategic cooperation agreement, both parties have agreed to establish a cooperation mechanism, including: (i) holding bilateral high-level meetings from time to time to smoothly promote strategic cooperation; (ii) strengthening cooperation at the departmental level; and (iii) encouraging daily work exchanges. Both parties may establish a joint working group as needed to implement specific cooperation plans.
