About CENTURY GP INTL Company

As a subcontractor, we are mainly engaged in site formation projects in Hong Kong. We have over 14 years of experience in undertaking site formation projects in Hong Kong. As a subcontractor, we provide customers with comprehensive site leveling solutions, which usually include (a) general earthwork (including soil and rock excavation, disposal of demolition materials, filling and compaction to form a new site or develop it to the design level); (b) tunnel excavation (including rock excavation work to build tunnels through drilling and crushing and/or drilling and explosives and constructing related temporary tunnel support buildings); (c) foundation engineering (including excavation and side support works to build piles and caps for commercial and residential building projects) works); and (d) road and drainage works (including construction of access roads and drainage systems at construction sites). As part of our supporting services, we also undertake steel processing and installation of steel work platforms as a subcontractor. Given that (a) we have been undertaking site preparation projects for over 14 years since we started our business in 2001; (b) we have not been included in the list of approved public works contractors or registered as a registered specialist contractor with the Building Authority under the building regulations applicable to general contractors; and (c) most of our direct clients are general contractors with whom we have had stable business relationships over many years, we have positioned ourselves as site preparation subcontractors. In particular, we are proud of our ability and expertise in undertaking explosion projects. During the track record period, we have completed two site preparation projects involving explosion works, and have confirmed a total revenue of approximately HK$218,700,000. Most of our direct clients are general contractors for various infrastructure, commercial and residential development projects in Hong Kong. These projects are generally classified as public sector projects and private sector projects. A public sector project refers to a project where a government or statutory body employs a general contractor, while a private sector project refers to a project that is not a public sector project. Most of our revenue during the track record period came from public sector projects, which accounted for about 95.0%, 99.3% and 73.8% of our revenue for the three years ended March 31, 2016, respectively. Since we are not registered on the list of approved public works contractors maintained by the Development Council, we are not eligible to directly participate in public project tenders. Therefore, we must rely on general contractors on the list of approved public works contractors for such projects, and if we can successfully bid for such projects, they will appoint the Group as a subcontractor for such public projects. Site preparation projects are non-recurrent in nature. As a subcontractor, we were invited to submit our bids, and after a fiercely competitive bidding process, we obtained the project from the general contractor. Our pricing is generally based on a cost plus model, and the bonus amount is determined on an individual project basis. We have our own machines and equipment (hydraulic excavators, hydraulic hammers, drills, large drilling rigs, concrete sprayers, loaders, vibratory rollers, air compressors, electric welding machines and platforms) to carry out site preparation works, so there is no need to rely too much on leasing machines and equipment from third parties. We believe our investment in machinery and equipment enables us to undertake site preparation projects of varying size and complexity to meet anticipated growing customer needs.