According to Zhitong Finance App, Fengzhan Holdings (01826) announced that on October 13, 2026, the Company's indirect wholly-owned subsidiary Dalan Stroy Service LLP (Dalan) (as the main contractor) and HuaLin Energy Ltd. (whose ultimate beneficial owner is an independent third party) (as an employer (employer)) entered into an engineering, procurement and construction agreement (EPC agreement). The EPC agreement involves the construction of a 4.5 MW natural gas power generation facility (EPC project) in Atyrau, Kazakhstan. The Group expects to use its existing EPC capabilities and experience to deliver its first EPC project in Kazakhstan.
The estimated total amount involved in the EPC project is approximately $11.8 million, of which approximately $6 million is the fixed tax-inclusive contract price payable to Dalan for the EPC project. The balance relates to imported equipment and materials (equipment and materials) supplied by the employer, and Dalan will arrange payment, logistics, customs clearance, receipt, installation and system integration (reimbursement based on actual expenses) of such equipment and materials on behalf of the employer. The construction site is located in Atyrau, Kazakhstan. The construction consists of a 4.5 MW natural gas power generation facility. Once completed, the facility is expected to provide stable and reliable clean electricity to the Atyrau region. According to the EPC agreement, Dalan is required to provide a performance guarantee. The amount is 30% of the sum of the fixed contract price and the provisional amount of equipment and materials, and the initial amount is approximately US$3.55 million.
The Board of Directors believes that using the net proceeds raised from the share offering to support the EPC project and its smooth implementation is in line with the long-term development direction of the Group. The EPC project is expected to generate stable long-term returns and enhance the Group's market reputation and competitiveness in markets outside Hong Kong. With existing EPC capabilities, the company is currently looking for a number of new EPC-related business opportunities in Kazakhstan. The Company will continue to allocate proceeds from the stock offering to expand its strategic focus beyond the local market and seek growth opportunities in emerging “blue ocean” regions, including expanding EPC-related businesses and developing digital computing power asset-related businesses in Kazakhstan and/or other overseas markets. The terms of the EPC agreement are based on normal commercial terms and are in the overall best interests of the Company and its shareholders.