Ching Lee (stock code: 3728) announced to make a potential acquisition for strengthening and expanding the construction services

HONG KONG, CHINA - Media OutReach - 2 Feb 2018 - Ching Lee Holdings Limited (the "Company", stock code: 3728) is pleased to announce that on 1 February 2018, the Company, as purchaser, entered into a memorandum of understanding (the "MOU") with a third party in relation to a possible acquisition (the "Possible Acquisition") of certain interests in a company, which is principally engaged in air-conditioning and electrical engineering installation and alteration works in Hong Kong. The Board considers that the Possible Acquisition will strengthen the Group's construction services in Hong Kong, and help to expand related businesses, so as to enhance the Group's business diversification.

In respect of the Possible Acquisition, the Vendor and the Company will negotiate and enter into a binding agreement on or before 31 March 2018 (or such other date as the parties may agree). Pursuant to the terms of the MOU, the Company paid a sum of HK$2,500,000 in cash to the Vendor upon execution of the MOU as a refundable deposit for the Possible Transaction.

The Company and its subsidiaries operate as a contractor in Hong Kong principally engaged in providing substructure building works services, superstructure building works services, and repair, maintenance, alteration and addition works services. The Company has transferred listing to Main Board from GEM Board on 18th September 2017.

About the company

Ching Lee Holdings Limited (3728.hk) is a main contractor in Hong Kong with over 17 years of experience undertaking projects in both public and private sectors. Our major business sectors include substructure building works services, superstructure building work services and RMAA works services. Ching Lee Holdings Limited transferred listing to Main Board from GEM Board of the Hong Kong Exchange on 18th September 2017.