PLA teams up with developer for hi-tech mainland project
Property developer Po Wing Kwan International Holdings has reached agreement with affiliates of the People's Liberation Army (PLA) and San Xia over a mainland telecommunications project.
The project, which will take the form of a Sino-foreign joint venture, will be held 70 per cent by the company through Ming Hung Telecommunications, 20 per cent by PLA affiliates and 10 per cent by San Xia.
The venture, with a registered share capital of 50 million yuan (about HK$46.53 million), would 'operate and promote telecommunications networks and high-technology products in the mainland', it said.
Overall investment in the project during the first year of operations is estimated by the company at 280 million yuan.
It did not give the particulars of San Xia, but the Chinese translation indicates it is the Three Gorges Development Corp, linked to the hydroelectric power project of the same name.
The company said the diversification would help it broaden its income base in the long run.
Under the terms of the joint venture, Po Wing Kwan shall be responsible for the planning and management of the operations, while the PLA affiliates will provide technical assistance and expertise to the joint venture as well as prepare feasibility reports and formulate its investment plans.
San Xia is tasked with the responsibility of applying for relevant mainland government licences and approvals.
BUSINESS CALL Venture 70pc held by Po Wing Kwan Registered share capital is $46 million Three Gorges firm may be involved