*************** Xiangyu Dredging Holdings Limited together with the wholly owned subsidiary Jiangsu Xiangyu Port Construction Company Limited (Jiangsu Xiangyu),is pleased to announce to have entered into two reclamation dredging contracts with a project company established in PRC for artificial island construction and development under Nanshan Group. Under such contracts, Xiangyu Dredging will provide service in connection with reclamation project at the western coastline of Nanshan, Shandong Province. The estimated total contract sum is approximately RMB449.0 million (equivalent to about HK$552.3million). The work site is adjoining and located at Long Port Development Area of Longkou City, Shandong Province. The dredging service is expected to commence in April 2012 and finish in December 2014, representing a time length of 32 months. The estimated total contract sum reached approximately RMB449.0 million. The final aggregate sum of the contract to be received by the Group is subject to the volume and other parameters of the works delivered and accepted by the customer. The Contract sums will be paid in stages based on the progress of the works, and the final remaining balance will be paid upon expiry of the relevant warranty period. |