Shenglong Splendecor International Limited has released details of two construction contracts that together amount to RMB118.20 million (USD16.60 million), marking a major expansion of its downstream production capacity for impregnated paper and press-laminated panels in southern China.
The first agreement (Construction Contract 1), valued at RMB42.20 million (USD5.83 million), was signed on 28 December 2024 between wholly owned subsidiary Guigang Shenglong and Zhejiang Capital Construction Engineering. The works cover a 34,569 sq m site in Guigang Industrial Park, Guangxi, and include full plant construction, decoration, utilities and ancillary facilities. Building began on 31 December 2024 and was completed within the contracted 300-day schedule; an independent audit is now finalising the total audited contract price. As of 25 March 2026, 71.1 % of the contract sum had been paid.
The second contract (Construction Contract 2) was executed on 28 March 2025 by Guangdong Shenglong for a 27,819 sq m plot in Guangqing Industrial Park, Qingyuan City. With a headline value of RMB76.00 million (USD10.49 million), the project targets completion by 30 April 2026. About 76.7 % of the contract price had been disbursed by the latest practicable date.
Both projects are financed through internal resources and existing bank loan facilities. Expenditure will be capitalised as “construction in progress” and transferred to property, plant and equipment upon completion; no immediate material impact on net profit is anticipated. At end-February 2026 the Group reported RMB570.43 million (USD80.89 million) in total bank borrowings against RMB1.03 billion (USD146.22 million) in available credit lines, leaving RMB459.58 million (USD65.21 million) undrawn.
The Board views the investments as essential to its vertical-integration strategy, enabling Shenglong Splendecor to move closer to furniture manufacturing clusters, shorten delivery cycles and enhance profitability through higher-value finished decorative panels.
Both contracts qualify as major transactions under Chapter 19 of the GEM Listing Rules. Majority shareholder Bright Commerce Investment Limited and Chairman/CEO Mr. Sheng Yingming (collectively holding 60.82 % of shares) have provided written approval in lieu of a general meeting. The company acknowledged a prior delay in compliance with disclosure requirements, attributing it to a misinterpretation of the rules, and has outlined eight remedial measures, including enhanced training, strengthened internal protocols and proactive consultation with external advisers.
No material adverse change in the Group’s financial position has occurred since 31 December 2024. The directors affirm that current cash, internal resources and undrawn banking facilities are sufficient to meet working-capital needs for at least the next 12 months.