The Zhitong Finance App learned that Fengzhan Holdings (01826) has risen more than 17%, and the cumulative increase in stock prices over the past two months has been more than fivefold. As of press release, it rose 17.29% to HK$0.78, with a turnover of HK$4.998,700.
According to the news, recently, Fengzhan Holdings announced that Dalan Stroy Service LLP (Dalan) (Dalan), an indirect wholly-owned subsidiary registered under Kazakh law, entered into an engineering, procurement and construction agreement (EPC agreement) with HuaLin Energy Ltd. (whose ultimate beneficial owner is an independent third party) (as an employer (employer)). 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 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.