New contracts awarded to China State Construction International Holdings Limited for construction projects in Macau totalled HK$2.51 billion (US$321.92 million/MOP2.58 billion) for the first five months of the year, according to a company filing with the Hong Kong Stock Exchange.
The amount of new contracts awarded represents a drop of 43.7 per cent from the same period in 2016, when new deals signed in the city totalled HK$4.46 billion.
As for cash construction and related projects in progress in Macau up to May 31, the company announced they were valued at HK$25.48 billion, with a backlog amounting to HK$4.58 billion – similar to the same period a year earlier, when cash projects and related projects in progress were valued at HK$22.75 billion, with a backlog of HK$11.41 billion.
In addition to several contracts awarded to China State Construction in the past by local casino operators and hotels – such as Wynn Resorts, MGM, Melco and The 13 – the group has also been awarded contracts for public works and urban development projects in the city.
According to previous reports, the company claims that it has been ‘the biggest contractor for the [Macau SAR] government.’
Past contracts awarded to the group locally include the 228 Project, for the Liason Office of the Central People’s Government (2008), the Macau MSR Drinking Treatment Plant Extension Project, for Macau Water Supply Company Limited (2006), and the Commercial & Residential Development at Lot U, for Nova Taipa Urbanization Ltd. (2006).
The company is also working on Nova Grand, a residential and commercial complex in Taipa, scheduled for completion in the fourth quarter of 2018, according to its developer Shun Tak Holdings.
Other operating information
New contracts for China State in Hong Kong amounted to HK$10.98 billion during the five months of the year ended May 31, while cash construction and related projects on-hand were valued at HK$66.57 billion plus a backlog of HK$27.57 billion.
In terms of new contracts awarded to the group as a whole, these amounted to an accumulated value of HK$43.43 billion over the five months ended May 31, with the company noting that it had achieved 48.3 per cent completion of the full year target for 2017, established at no less than HK$90 billion.
The total value of projects in progress by the company was valued at some HK$290.44 billion as of May 31, 2017, with a backlog of nearly HK$174.8 billion.
New contracts and contracts on-hand include infrastructure projects in mainland China, and cash construction and related projects in Macau, Hong Kong and others, as well as deals with Far East Global, a subsidiary of China State Construction, which the company acquired in March 2012.
New major contracts in May 2018
China State Construction also highlighted in the filing, major new contracts awarded to the group for the month of May 2017 to be developed in mainland China, including the investment and construction project of relocation housing and infrastructure, in Linyi city in Shandong province, with a contract value to the group of about HK$3.16 billion. Other projects include the investment and construction project of municipal infrastructure, in Zibo city in Shandong province, with an attributable contract value to the group of HK$1.9 billion; and the investment and construction project of relocation housing, Xuzhou, in Jiangsu Province, with a HK$520 million contract.
