Highlights

• Established
  in 1967, one of the leading building contractors in Hong Kong with over 50 years
  of experience
• Principally
  act as a main contractor in building construction works and RMAA works projects
  across public and private sectors in Hong Kong
• According
  to the CIC Report, the Group ranked the third among all main contractors in
  Hong Kong in terms of revenue from building construction works for the year
  ended 31 December 2018 with a market share of approximately 5.2%
• The
  Group has completed 16 building construction works projects and nine RMAA works
  projects during the Track Record Period, the aggregate original contract sum of
  which amounted to approximately HK$8,710.9 million and HK$876.5 million,
  respectively
• As
  at the Latest Practicable Date, the Group has nine building construction works
  projects and eight RMAA works projects which were in progress

Financial
Highlights

HONG KONG, CHINA
-�Media OutReach�- 27 September 2019 -�
CR Construction Group Holdings Limited ("CR Construction", together with its
subsidiaries, the "Group"; stock code: 1582.HK), the third largest main building
contractor in Hong Kong in 2018[1],
announces the details of its plan to list on the Main Board of The Stock
Exchange for Hong Kong Limited ("SEHK")
today.

�

A total of 138,850,000
shares will be offered under the Share Offer, of which 124,965,000 Shares,
or 90% (subject to re-allocation), will be offered by way of Placing;
while the remaining 10%, or 13,885,000 Shares (subject to re-allocation), will
be offered under the Public Offer. The Offer Price per Offer Share is expected to be not
less than HK$1.0 and not more than HK$1.4. The Public Offer will commence on 27
September 2019 (Friday) and close at 12:00 noon on 3 October 2019 (Thursday). The
allotment result is expected to be announced on 15 October
2019 (Tuesday). Dealings
in CR Construction's shares on the Main Board of the SEHK are expected to
commence on 16 October 2019 (Wednesday).

�

Assuming an Offer Price of HK$1.2 per Offer
Share (being the
midpoint of the Offer Price range), the aggregated net proceeds from the Share
Offer, after deducting underwriting fees and estimated expenses payable in
connection with the Share Offer, will be approximately HK$123.0 million. CR
Construction intends
to use these net proceeds for the following purposes: 1) approximately 87.3% will
be used for financing the upfront costs for potential new building construction
works and RMAA works projects; 2) approximately 8.0% will be used in strengthening
manpower; and 3) approximately 4.7% will be used in enhancing information
technology.

�

First Shanghai Capital Limited is the
Sole Sponsor, while First Shanghai Securities Limited, Zhongtai International
Securities Limited, First Capital Securities Limited, Guotai Junan Securities
(Hong Kong) Limited" and Haitong International Securities Company Limited are
the Joint Bookrunners and the Joint Lead Managers. Livermore Holdings Limited,
CVP Securities Limited and Zinvest Global Limited are the Joint Lead Managers. �

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Business Overview

�

Established
in 1967, CR Construction
is one of the leading building contractors in Hong Kong with over 50 years of
experience. The Group principally act as a main contractor in building
construction works and RMAA
works projects across public and private sectors in Hong Kong. According
to the CIC Report, it
ranked the third among all main contractors in Hong Kong in terms of
revenue from building
construction works for the year ended 31 December 2018 with a market
share of approximately 5.2%.

�

As a main contractor, the
Group is responsible for (i) overall management of the projects; (ii)
formulating work
programmes; (iii) engaging subcontractors and supervising their works;
(iv) sourcing construction
materials; (v) communication and coordination with customers and their
consultant teams; and (vi)
safeguarding compliance with safety, environmental and other contractual
requirements.

�

Customers of
the Group can be divided into two categories: (a) customers from the public
sector including various Government departments such as the Housing Authority
and the Education Bureau, educational institutions and NGOs; and (b) customers
from the private sector such as private property developers and other listed
and private companies.

�

For each of
the three years ended 31 December 2018 and the three months ended 31 March
2019, the Group recorded revenue of approximately HK$2,577.4 million,
HK$3,141.4 million, HK$4,813.9 million and HK$1,115.0 million respectively,
while profit amounted to approximately HK$45.9 million, HK$58.9 million, HK$63.4
million and HK$17.1 million respectively.

�

The Group has
completed 16 building construction works projects and nine RMAA works projects during
the Track Record Period, the aggregate original contract sum of which amounted
to approximately HK$8,710.9 million and HK$876.5 million, respectively. After
the Track Record Period and up to the Latest Practicable Date, it has completed
two building construction works projects, with aggregate original contract sum
of approximately HK$254.5 million. It had nine building construction works
projects and eight RMAA works projects with an aggregate original contract sum of
approximately HK$10,403.1 million and HK$1,488.6 million, respectively, which
were in progress as at the Latest Practicable Date. As at the Latest Practicable
Date, the Group has been awarded one RMAA works project with an original
contract sum of approximately HK$3.2 million, in which it has not commenced
on-site works.

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Competitive Strengths

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1)���� Established history and a proven track record in
the building construction works and RMAA

�

Since it is founded in 1967, the Group has built up strong reputation
and presence in the Hong Kong building construction works and RMAA works
industries. The projects the
Group undertook as main contractor include (i) building construction works
for the Hong Kong Housing Society, various educational institutions, private
property developers and other listed or private companies in Hong Kong; (ii)
public housing construction for the Housing Authority; (iii) redevelopment and revitalisation
projects for the Urban Renewal Authority; and (iv) RMAA works for various Government
departments including the Architectural Services Department and the Education
Bureau and private property developers in Hong Kong. In 2012, it completed one
RMAA works project which was so far the largest RMAA works project in Hong Kong
in terms of contract sum as at the Latest Practicable Date. The Group has also
received various awards and recognitions

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2)����
Well positioned to secure
emerging opportunities in public and private building construction

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In light of the expected growth in both public and private building
construction works industry in Hong Kong, the Directors of the Group consider
CR Construction is well positioned to secure these new business opportunities.

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In relation to public building construction projects, the Group is on
the list of approved and confirmed Group C contractor with WBDB, such that it
is eligible to tender for WBDB's public building construction works contracts of
any values exceeding HK$300 million. The Group was also granted the probationary
status as an approved building contractor for building (new works) (group NW2)
by the Housing Authority.

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During the Track Record Period, the Group has also been building up
portfolio in building construction works and RMAA works for the private sector
in Hong Kong. The Directors of the Group believe that, the Group has
accumulated considerable experience, knowledge and market presence in tendering
for public and private sector projects competitively and that has obtained the
necessary registrations and permits to engage in building construction works
and RMAA works projects across public and private sectors.

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3)����
Long-standing
and strong relationships with major business partners

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The group has built up long-standing and strong relationships with major
customers from both public and private sectors. It has maintained over ten
years of business relationship with some of its major customers. It has also
maintained strong relationships with consultants employed by its customers. The
Directors of the Group believe that, the Group's track record of satisfactory
project execution has rewarded long-term relationships with its major customers
and their consultants.

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The Group has also developed and maintained strong relationships with
numerous suppliers and subcontractors. Some of its major suppliers and
subcontractors have worked with the Group for over five years. The Directors of
the Group believe that, such an extensive network and relationship with
suppliers and subcontractors allows the Group to (i) select suppliers and
subcontractors with flexibility; (ii) minimise risks of delay or shortage of
materials or services; and (iii) execute works on schedule.

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4)����
Stringent
quality control and high safety standard and environmental impact control

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The Group places emphasis on providing consistently high quality
services. It has adopted and implemented a quality control system that complies
with international standards. Since 1993 and up to the Latest Practicable Date,
it was assessed and certified to have complied with the requirements of ISO
9001: 2015 accreditation for management system.

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The Group has set up an occupational health and safety system to promote
safe working practices among all employees and to prevent the occurrence of
accidents through safety inspections. Further, it has also set up an
environmental management system to promote environmental awareness and to
prevent pollution of the environment resulting from projects undertaken by the
Group. The Group's safety and environmental management systems have been
certified to be in compliance with OHSAS 18001: 2007 and ISO 14001: 2004
standards respectively.

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5)����
Experienced
and committed management team and professional staff members

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Led by
chairman, Mr. Guan Manyu and executive Directors, the Group has an experienced senior
management and project management team which are committed to working closely
with customers, suppliers and subcontractors and implementing various projects
efficiently.

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With the
industry insights and experiences of the Board and senior management of the
Group, it has been able to devise strategic business plans, assess and manage
risks thoroughly and securing emerging opportunities.

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As at the
Latest Practicable Date, most of the staff members of the Group in project
department and technical department have over ten years of experience in
building construction works industry, respectively and all of them possess
relevant professional qualifications. They are equipped with practical
knowledge and technical skills in building construction works and RMAA works.

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BUSINESS
STRATEGIES

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1)���
Business
expansion in building construction works and RMAA works

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To sustain
business growth, create long-term shareholders' value and increase market share
in the building construction works and RMAA works industries, the Group intends
to tender for and secures more contracts in both public and private sectors
such as public works with various Government departments, public housing
projects with the Housing Authority and private residential developments with
private property developers. It aims to identify and pursue new business opportunities
building on past success and experiences in the construction industry.

�

Private
projects

�

During the
Track Record Period and up to the Latest Practicable Date, the Group has
completed seven residential projects, seven commercial projects and three hotel
project in Hong Kong. Based on past experience and involvement in similar
projects, the Group will actively tender for both building construction works
and RMAA works projects in the private sector. As at the Latest Practicable
Date, it (i) had 13 ongoing private work projects; (ii) have been awarded one
private work project but have not commenced on-site works; and (iii) have
submitted 12 tenders which were pending for results.

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Public works

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Given that CR
Construction is an approved and confirmed Group C contractor of WBDB for public
works buildings, it is eligible to tender for public building construction
works contracts of any values exceeding HK$300 million. The Group will actively
tender for public building construction works and RMAA works projects based on
past experience and involvement in similar projects such as building
construction works for educational institutions and NGOs and RMAA works for various
Government departments. As at the Latest Practicable Date, it (i) had four
ongoing public work projects; and (ii) have submitted tender for 14 public work
projects which were pending for result.

Public housing

�

The Group was
granted a probationary status as an approved contractor for building (new
works) (Group NW2) by the Housing Authority in the year 2000 and it can
undertake not more than one Housing Authority's Group NW2 direct contract at
any one time. During the Track Record Period and up to the Latest Practicable
Date, the Group undertook and completed one public housing project which
involved building construction works of a community complex under public estate
redevelopment,

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The Group intends
to apply for a confirmed status in around September 2020 (the expected
completion date of Project C33, of which the Directors of the Group are
confident, after taking into account the size and nature of the project, would
fulfil the conditions pertaining to the application), in order to increase
involvement in public housing projects.

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2)��� Further strengthening manpower

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It is believed
that the Group's success in the construction industry is largely attributable
to its experienced management and skilled staff members. In order to secure the
emerging business opportunities in the construction industry and drive business
expansion, it intends to further strengthen human resources by recruiting more
experienced staff for projects department and technical department

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The Group
deploys building information modelling and aerial technology to simulate
project plan and assist construction sites supervision, respectively. Since an effective
operation of the building information modelling and aerial technology requires
sufficient number of skilled staff, the Group intends to recruit additional
staff with relevant knowledge and arrange more training courses for staff on
the usage of the technologies.

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3)���
Further
enhancing information technology

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In addition
to the technologies the Group has employed when executing projects, it also
intends to enhance the efficiency of operations by introducing an enterprise
resource planning system and expanding and upgrading computer hardwares and
softwares. It is �believed that
introducing an enterprise resource planning system, which is a system of
integrated applications to manage the business and automate various back office
functions related to technology, services and human resources, will allow the
Group to: (i) increase efficiency of business procedures; (ii) promote
operational control in different areas of operation; and (iii) ensure
consistency in services offered.

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4)���
Adhering
to prudent financial management to ensure sustainable growth and capital
sufficiency

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The Group generally
fund its project expenditure with cash flows from operations and bank loans as necessary.
It has managed its capital and cash position prudently to ensure that� funds are properly and efficiently collected
and deployed and to maintain sufficient level of funds to settle liabilities
when they fall due. This allowed the group to minimise finance costs.

�

The Group
will continue to monitor liquidity positions by managing key measures such as
gearing ratio and cash flows. In the process of identifying and capturing
emerging business opportunities, it will continue to cooperate with external
parties to develop projects on a selective basis to take advantage of
cooperating partners' resources. It will remain disciplined in capital commitments
and seek long-term financing opportunities.

About CR Construction Group Holdings Limited

CR
Construction Group Holdings Limited, established in 1967, is one of the leading
building contractors in Hong Kong with over 50 years of experience. The Group
principally acts as a main contractor in building construction works and RMAA
works projects across public and private sectors in Hong Kong. According to the
CIC Report, it ranked the third among all main contractors in Hong Kong in
terms of revenue from building construction works for the year ended 31
December 2018 with a market share of approximately 5.2%.