(23 March 2016, Hong Kong) — China Minsheng Drawin Technology Group Limited (“CM Drawin”, “the Company” or “the Group”; Stock Code: 0726.HK), is pleased to announce its acquisition of the land use rights of industrial sites (the “Sites”) in Jiangning district, Nanjing of Jiangsu Province, for a total consideration of RMB 60.52 million. The Sites cover 100,838 sq.m. and will be developed into a China Minsheng Drawin Green Construction Technology Park (the “Technology Park”), which will provide advanced construction solutions, including the R&D, design, production and sales of intelligent green building construction technology and prefabricated construction modules. The Sites are conveniently located next to the Wuhu Highway, which will enable the Group to expand its business to surrounding cities.
China recently has launched a number of favorable policies on industrialized construction, which presents great market prospects for the Group’s business development. In February 2016, the State Council announced “The Opinions and Guidelines on Further Strengthening Urban Planning and Development Management”, which states that the country will push forward prefabricated buildings in order to generate less construction waste and dust pollution, shorten construction time and improve the overall quality of the buildings. It also projects that 30% of new buildings will be prefabricated within the next 10 years. At the local government level, in December 2015, the Nanjing Municipal Government announced “The Opinion on Accelerating the Modernization of the Construction Industry and Facilitating Industrial Upgrades”, which suggests to increase the level of prefabrication for new government-invested projects and to push forward with fully decorated residential housing, aiming to make modern industrialized construction an industry norm by 2025, and to increase the prefabrication rate to over 50% for all newly-constructed buildings. This policy will give more support to the Group and enable it to grow rapidly following the acquisition of the land parcel.
Industrialized construction is an approach based on standardized design, the production of prefabricated materials and modules in factories, mechanized construction and modern management methods. Compared with the traditional ways of construction, the advantages of industrialized construction include a higher production efficiency, improved quality, lower costs and more environmental friendly. It is a new sector which has huge potential and is aligned with China’s development progress. The Group believes that Nanjing has a lot of potential for development given it’s the capital city of Jiangsu Province. The need to adopt prefabrication and decoration for the city’s construction projects will provide huge opportunities for the Group.