King Wan Corporation Limited
News Release
King Wan Unveils Plans for Associate’s “Shicheng Huayuan” Township Project in Lushunkou District, Dalian, China
Entire development will include approximately 3,000 units of high and low-rise apartments, terrace houses, commercial buildings and shop- fronts with amenities such as landscaped recreational facilities, club– houses, and childcare centres
Phase 1 entails land area of approximately 54,500 sqm or 20% of the total 270,768.19 sqm earmarked for the township that will be modelled on Singapore
Inaugural sales launch of residential and commercial units targeted for kick-off in late 2005
SINGAPORE – 25 February 2005 – SGX Mainboard-listed King Wan Corporation Limited (“King Wan"), today unveiled plans by 35%-owned associate company Dalian Shicheng Property Development Co., Ltd (“DSPD”) for the multi-phase development of a township in Lushunkou District, Dalian to be named “Shicheng Huayuan”, which will be modelled on Singapore, at a presentation by a delegation from Dalian Lushunkou District led by Standing Vice Ward Head, Mr Han Yuming.
Lushunkou District is about 45 kilometres from Dalian City, located on the southern tip of Liaodong Peninsula of China and part of the Bohai Economic Zone, with easy access to Dalian’s international harbour and airport in the vicinity.
King Wan, a leading integrated provider of specialist mechanical and electrical engineering services to contractors in Singapore’s building industry, had previously announced in July 2004 that the Group’s wholly owned subsidiary King Wan Development Pte Ltd (“KWD”) has subscribed for 35% in the share capital of DSPD at US$743,251 (S$1.28 million), which was funded by its shares placement exercise conducted in May 2004.
DSPD is one of the first foreign enterprise companies in Lushunkou District. DSPD had successfully tendered and obtained the development and land use rights in 2004 to a piece of
King Wan Unveils Plans for Associate’s “Shicheng Huayuan” Township Project in Lushunkou, Dalian, China 25 February 2005 Page 2 of 3
land extending over 270,768.19 square metres (“sqm”) with a plot ratio of 1.2 for both residential and commercial use.
Aptly named as Shicheng Huayuan, the project will be developed in phases into approximately 3,000 units of high and low-rise apartments with floor areas of between 60 to 120 sqm, terrace houses, commercial buildings and shop-fronts and includes amenities such as club–houses, landscaped recreational facilities and child-care centres.
In addition, the project’s close proximity to the proposed Dalian University Village, local government administrative offices and nature reserves coupled with easy access via existing main highways flanking the development will enhance the appeal of Shicheng Huayuan as a premier residential and commercial hub.
Phase 1 will involve a land area of 54,500 sqm or 20% of the total land area. The issued share capital of DSPD in conjunction with Phase 1 has since been increased from the US$3.0 million previously announced to US$4.0 million. Hence, King Wan’s investment has been accordingly increased to US$1.4 million ($2.36 million).
DSPD’s two largest shareholders are King Wan’s subsidiary KWD (35% stake) and Mr Tan Han Meng (30% stake) who is also the director and General Manager of DSPD. Other investors include SGX-listed Ann Aik Limited (19%), Mr Ong Kim Huat (10%), Premium Capital Asia Limited (3%) and Mr Chua Zhihong (3%). King Wan’s Chairman Mr Chua Kim Hua is also the Chairman of DSPD while Mr James Ow, Ann Aik’s Executive Chairman is the Deputy Chairman.
Preparation of the land for construction has commenced since December 2004 and the inaugural sales launch of Shicheng Huayuan’s residential and commercial units is scheduled for kick-off in late 2005. Main target market comprises local Dalian home buyers and buyers from other parts of China, as well as executives working in Dalian’s flourishing ship-building and electronic manufacturing industries, which have particularly drawn many companies from Japan and South Korea.
Said King Wan’s Chairman Mr Chua Kim Hua, “Our investment in Dalian Shicheng is part of our strategy to seek opportunities in the region to grow new revenue and profit streams and reduce our reliance on Singapore’s construction industry. Dalian City’s economic development has progressed expeditiously and the local authorities are intensely expanding the development zones to areas beyond the city centre such as Lushunkou District, which is slightly smaller in size compared to Singapore.
King Wan Unveils Plans for Associate’s “Shicheng Huayuan” Township Project in Lushunkou, Dalian, China 25 February 2005 Page 3 of 3
“Shicheng Huayuan is a long term project for which we are confident of its future prospects. Dalian Shicheng entered the market at the initial stage and has the full support of the Dalian and Lushunkou District authorities. There is an upward trend in the demand for good quality residential and commercial properties in Dalian as the population becomes more affluent and possesses higher spending power,” added Mr. Chua.
Similar projects in the area are selling at between RMB1,800 to RMB2,800 per square metre depending on unit location. Land prices have steadily risen since DSPD was successfully awarded the tender.
The project would not have had any material impact on the consolidated net tangible assets per share and earnings per share of the Company and its subsidiaries for the current financial year ending 31 March 2005 or for the next financial year ending 31 March 2006.
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Issued on behalf of King Wan Corporation Limited by WeR1 Consultants Pte Ltd
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About King Wan Corporation Limited (“King Wan”)
Established in 1977 and listed on the Singapore Exchange since 2000, King Wan is a leading integrated provider of specialist mechanical and electrical engineering services to contractors in Singapore’s building and construction industry. The Group has worked on many electrical, plumbing and sanitary installation projects awarded by Singapore’s Housing Development Board as well as the private sector.
In line with the Group’s diversification strategy to grow additional revenue streams, King Wan has recently invested in a strategic 20% stake in Environment Pulp and Paper Company Limited (“EPPCO”), a company incorporated in Thailand and engaged in the production and sale of chemically bleached pulp derived from sugar cane bagasse, a by-product derived from the process in which cane sugar is extracted from sugar cane using the Elemental Chlorine-free (“ECF”) environmentally friendly production process. The Group is also involved in the production, sale and distribution of ethanol in Thailand for various applications such as in the pharmaceutical and chemical industries as well as drinking alcohol.