Boyuan Initiates Construction on Two New Projects Totaling US$35.3 Million
Monday, August 13, 2012
- US$29.3 million project located in Hainan Lingshui County represents a new market for Boyuan -
TORONTO, Aug. 13, 2012 /CNW/ - Boyuan Construction Group, Inc., (TSX: BOY, BOY.DB, BOY.DB.A) a fast-growing construction company in China of commercial, residential and municipal infrastructure projects, announced today that it has initiated construction on two new projects with a total value of US$35.3 million.
The first project is a residential development located in Hainan Lingshui County, a new market for the Company, and consists of 30 villas and two 12-story condominiums. The project has a gross construction area of 110,000 square metres and is valued at US$29.3 million. Completion date is still under negotiation.
The second project is a commercial tower located in Hiayan County, Jiaxing, one of Boyuan's core markets. The commercial tower is 21 stories high, totaling 23,000 square metres and is valued at US$6.0 million. The expected date of completion is in the first quarter of calendar 2014.
"We have been very selective recently with the projects we have considered for construction, ensuring maximum profitability, due to the current economic situation and tighter liquidity for property developers in China," said Mr. Cai Liang Shou, Chairman of Boyuan Construction Group. "Despite that, the initiation of these two new projects, one in a core market and one in a new market, demonstrate there are still plenty of quality opportunities for us to choose from as we remain cautious during this uncertain economic time."
Lingshui is located in the southeast part of Hainan Island. Launched in 2009, China's International Tourist Destination Policy is aimed at fostering Hainan Island's economic growth and development. As part of the goal to turn Hainan Island into a major international tourism destination, a tax-free shopping plan for foreign travelers was implemented effective January 1, 2011.
About Boyuan Construction Group, Inc.
Based in Jiaxing City, China, Boyuan Construction Group, Inc. is in the business of commercial building and residential construction, municipal infrastructure and engineering projects. In its last three fiscal years ending June 30, 2011, Boyuan completed more than 80 projects for a number of private and public sector clients. Boyuan's current project backlog includes residential, commercial, industrial and mixed-use developments. From its operating bases in Zhejiang Province and in Hainan Province, Boyuan focuses on construction projects in China's fast-growing regions of the Yangtze River Delta, Hainan Province and Shandong Province. For more information visit www.boyuangroup.com.
Caution Regarding Forward-Looking Information:
Certain information contained in this press release constitutes forward-looking information, which is information relating to future events or the Company's future performance and which is inherently uncertain. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes the expectations reflected in the forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and readers are cautioned not to place undue reliance on forward-looking information contained in this press release. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking information contained in this press release have been identified in the Company's AIF for the fiscal year ended June 30, 2011 and in the Company's other public disclosure documents filed with certain Canadian securities regulatory authorities and available at www.sedar.com. The forward-looking information contained in this press release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as otherwise required by law.
SOURCE: Boyuan Construction Group, Inc.
For further information:
Boyuan Construction Group, Inc.
Mr. Paul Law, CFO
+(852) 9329 5088
(416) 815 0700 ext. 253