WAI KEE HOLD (00610) announced that on October 3, 2024, Hongda (利...
Zhìtōng Cáijīng APP Information, WAI KEE HOLD (00610) announced that on October 3, 2024, Hongda (利基's wholly-owned subsidiary and company's non-wholly-owned subsidiary) entered into a joint venture agreement with Hui Bao Construction to establish Hui Bao Hongda joint venture. Hui Bao Construction and Hongda will each have 60% and 40% equity participation rights. Hui Bao Hongda joint venture is expected to enter into a joint venture subcontract agreement with a contract amount of approximately HK$2.0925 billion before any changes, and an HK$0.6101 billion Hongda subcontract agreement which can be revaluated before any changes with Hongda. Details are as described below. Based on the estimated operational capital requirements of Hui Bao Hongda joint venture, Hongda is required to provide operational capital to Hui Bao Hongda joint venture proportionally not exceeding HK$50 million. Hongda is also required to submit a performance bond to Hui Bao Hong Kong with a value of approximately HK$47.88 million (40% of the performance bond value submitted by Hui Bao Hong Kong to the employer under the main contract), provided that upon return of Hui Bao Hong Kong's performance bond by the employer, Hongda's performance bond will be returned in the short term.
The announcement stated that the joint venture agreement and the proposed transactions (including joint venture subcontract agreements and Hongda subcontract agreements) are fair and reasonable, considered normal commercial terms or better terms from the perspective of the group, entered into in the group's normal course of business and general operations, and in the interest of the company and shareholders.