Boosts Financial and Technical Strengths for Participating in PPP Projects in the PRC
HONG KONG — Chanhigh Holdings Limited (“Chanhigh” or “the Group”; stock code: 2017) signed two strategic cooperation agreements (“agreements”) today with (i) Shanghai AijianTrust Co., Ltd.* (“Aijian Trust”) and the Faculty of Architectural, Civil Engineering and Environment of Ningbo University* (the “University”), and (ii) Shanghai International Trust Co., Ltd.* (“Shanghai Trust”) and the University.
Pursuant to the agreements, Aijian Trust and Shanghai Trust will provide comprehensive financial services relevant to Chanhigh to meet its financial needs, including but not limited to, provision of financial products and solutions. Aijian Trust and Shanghai Trust have agreed to provide to the Group with a comprehensive credit and financing line not exceeding RMB5 billion and RMB10 billion respectively.
Established in 1986, Ningbo University is in the first batch of “Double First Class University Plan” and “Plan 111” universities in Zhejiang Province. It will, as stated in the agreements, provide comprehensive Public-Private-Partnership (“PPP”) technical advice and support, and relevant business resources to the Group.
According to the Notice on Rectifying of Management of PPP Integrated Information Platform (Cai Ban Jin [2017] No. 92) issued by the Ministry of Finance on 10 November 2017 and the Notice on Enhancing Risk Management of Central Enterprises PPP Business (Guo Zi Fa Cai Guan [2017] No. 192) issued by the State-Owned Assets Supervision and Administration Commission of the State Council on 17 November 2017, state-owned enterprises are restricted from participating in PPP projects. In other words, non-state-owned enterprises like the Group have enormous opportunities to participate in new PPP projects. The management believes the cooperation agreements signed between Aijian Trust, Shanghai Trust and the University will help diversify the Group’s financing channels and provide the Group with strong financial and technical supports to take part in new PPP projects.
Moreover, the Group is armed with various professional qualifications, such as four first-grade qualifications, namely First-Grade General Contractor for Municipal Public Works, First-Grade Professional Contractor for Urban and Street Lighting Projects, First-Grade Professional Contractor for Building Renovation Projects and First-Grade Professional Contractor for Historic Building Projects, among others. These qualifications give the Group advantages in capturing business opportunities in relation to PPP projects in China. The management is confident that, with the support of its latest cooperative partners, the Group will be able to strengthen its competitiveness and in turn enhance business performance in the long run.