Hong Kong IPO disclosure precedents · 29 companies, 29 items
Outsourcing of construction, EPC works or facility building activities to independent contractors or subcontractors, including selection procedures, retained management responsibility and liability for subcontractors' performance.
Most of construction activities for our facilities are carried out by independent contractors.
Business · p. 165
If a contractor fails to meet the agreed timeline or quality standards, resulting in project delays or deficiencies, they may be liable for penalties as stipulated in the contract.
Business · p. 165
In cases of material breach, we reserve the right to terminate the agreement and seek compensation for any resulting economic losses.
In 2023, 2024, 2025 and the six months ended June 30, 2025 and 2026, we incurred subcontracting charges of RMB1,619.3 million, RMB1,045.3 million, RMB531.3 million, RMB199.4 million and RMB148.1 million, respectively.
Business · p. 126
We adopt a range of measures to manage and monitor the performance of our subcontractors to ensure compliance with applicable progress, quality and safety requirements.
Business · p. 127
As of the Latest Practicable Date, we had 25 qualified subcontractors on our approved list, which we review and update on a periodic basis.
We generally do not directly carry out the labour works for installation or fitting out works and subcontract the labour works to one or more subcontractors, depending on the size and nature of the project.
Business · p. 108
During the Track Record Period, our purchases from top five subcontractors amounted to S$8.4 million, S$7.4 million, S$8.0 million and S$7.2 million in 2023, 2024, 2025 and the six months ended 30 June 2026, respectively, accounting for 40.8%, 23.8%, 19.7% and 24.5% of our total purchases, respectively.
Business · p. 134
We mitigate our exposure to rectification costs by allocating liability for defects to our subcontractors on a back-to-back basis.
In terms of the number of subcontractors engaged, all independent third parties, to perform the aforementioned works, we have in total 432, 427 and 426 subcontractors for the years ended 31 December 2023, 2024 and 2025.
Business · p. 131
We take measures to manage our subcontracting costs and to ensure the quality of subcontracting work, as follows: (i) maintaining a list of preferred subcontractors which is regularly reviewed and updated, thereby maintaining long-term business relationships with our preferred subcontractors to secure availability of subcontracting business at reasonable prices, and (ii) engaging subcontractors through a tender and bidding process in which we typically solicit bids from at least three or more qualified potential subcontractors, primarily based on their qualifications, proposed subcontracting fees and track record.
Business · p. 136
Furthermore, we conduct quality control tests on the semi-finished or finished products processed by our subcontractors before accepting the finished products.
During the Track Record Period, we engaged more than 10 major subcontractors to carry out certain engineering and construction, security, and cleaning works, allowing us to focus our time and resources on our energy management business.
Business · p. 154
During the Track Record Period and up to the Latest Practicable Date, we did not experience any material delay in projects that were caused by subcontractors, nor did we have any material disputes with our subcontractors that had a significant impact on our business and financial performance, except for the First Litigation.
Business · p. 154
To ensure and maintain the quality of service provided by our subcontractors, we have established internal rules and procedures to monitor our selection of, cooperation with and inspections of the subcontractors, which are the same rules and procedures as selecting suppliers.
We do not, however, engage in material and equipment manufacturing or land and building construction. Accordingly, we source such items from suppliers, and/ or sub-contract such procurement and construction works to licenced service providers
Business · p. 122
For FY2023, FY2024, FY2025, purchase from our five largest sub-contactors amounted to RMB78.7 million, RMB50.4 million and RMB75.1 million, respectively, accounting for approximately 28.1%, 26.9% and 27.8% of our total purchase cost, respectively.
Business · p. 152
We generally select sub-contractors through open tenders or invited tenders.
Subcontractors are engaged in the installation of the equipment and components, while our technical and supervising personnel are responsible for debugging the energy management systems.
Business · p. 119
Typically, a lump sum price is specified in the subcontracting agreement, which is determined based on the agreement between our Company and our subcontractors.
Business · p. 128
To ensure and maintain the quality of service provided by our subcontractors, we have established internal rules and procedures to monitor our selection of, cooperation with and inspections of the subcontractors, which are the same as selecting suppliers.
During the Track Record Period, we entered into certain labor subcontracting arrangements with independent third-party labor subcontractor agencies to meet the need of our business operations.
Business · p. 149
We are responsible for inspecting and supervising the on-site work quality and verifying the completion status of the tasks performed by the subcontracted personnel.
Typically, the construction and building of power station projects are carried out by third-party contractors, with the supply chain management center overseeing the external bidding process for project construction.
During the Track Record Period, we engaged subcontractors to carry out EPC service, allowing us to focus our time and resources on our DES asset development.
Business · p. 126
As our model matures and becomes validated gradually, we are pivoting toward a fully outsourced EPC model under which a third party serves as the general contractor.
Business · p. 100
To ensure and maintain the quality of service provided by our subcontractors, we have established internal rules and procedures to monitor our selection of, cooperation with and inspections of the subcontractors, which have the same rules and procedures as selecting suppliers.
In accordance with industry standards, we hire qualified contractors to outsource certain activities.
Business · p. 159
As we expand our production scale, we expect these outsourcing arrangements to adequately meet operational demands, reduce operating costs, and mitigate operational risks.
Business · p. 159
Our Directors are of the view that our contractors are in compliance with all material applicable laws and regulations and outsourcing will not be expected to have many material impacts for our control of our mining activities and daily operations.
We would engage third-party contractors for design, construction, and supervision, while equipment suppliers handle manufacturing, delivery, and commissioning.
Business · p. 138
In addition, we also follow a structured process in selecting subcontractors, which typically involves competitive tendering, qualification review, and technical and safety assessments.
We further monitor their performance through ongoing on-site supervision, periodic evaluations and strict quality-control measures to ensure that subcontracted works comply with our engineering, safety and environmental standards.
For FY2023, FY2024 and 6M2025, we incurred subcontracting costs of approximately RM46.0 million, RM77.9 million and RM37.9 million, respectively, representing approximately 70.0%, 72.6% and 65.1% of our total cost of services, respectively, for the corresponding years/period.
Business · p. 169
Hence, we usually engage subcontractors to perform labour-intensive works such as reinforced concrete structure works, beam casting works and road furniture works; and other works that require niche technical expertise, such as bored piling works, soil investigation works, environmental works, earthworks and geotechnical works where it would be cost prohibitive for us to maintain in-house capabilities.
Business · p. 167
Though our contracts with customers do not prohibit delegation of works to subcontractors, we remain contractually liable for our subcontractors’ performance and quality of their subcontracted works.
During the Track Record Period, all of the on-site installation work of our projects in the PRC and overseas were performed by labor subcontractors.
Business · p. 259
As advised by our PRC Legal Advisers, our Directors confirmed that the labor subcontracting agreements had complied with all applicable PRC laws, rules and regulations in material respects during the Track Record Period and up to the Latest Practicable Date.
For FY2023/24 and FY2024/25, we incurred subcontracting fees of approximately HK$64.0 million and HK$80.6 million, representing approximately 64.5% and 65.4% of our total cost of services, respectively.
Summary · p. 4
Depending on our capability, resources level, cost effectiveness and the complexity of the project, we may subcontract works, such as works related to building management systems, to our subcontractors when the availability of our own labour resources is limited or the subcontracted works require specialised skills or expertise.
Business · p. 186
During the Track Record Period, a water leakage incident occurred in one of our work sites at a commercial property in Central after our subcontractor performed the works, and our customer complained about the damage allegedly caused in the incident.
To ensure an efficient and smooth process of our constructions, we have adopted the engineering, procurement and construction (EPC) model and engaged CCECC (including its local branch in Kazakhstan) as our EPC contractor for construction activities through an open tender based on evaluation and selection procedures conducted by a committee comprising of four experts selected by a third party and a representative from our Company.
Summary · p. 19
The total contract sum payable by us to CCECC under the EPC contract is RMB1,091.6 million.
Summary · p. 19
On October 17, 2024, we have entered into a mining services procurement agreement with a local subsidiary of CCECC in Kazakhstan (the “Mining Services Procurement Agreement”), pursuant to which Subsidiary ZV will procure stripping and mining work in the open pit mining from CCECC’s subsidiary in Kazakhstan in the production phase of the Boguty Project.
In the PRC, we outsource a portion of our exploration and shaft construction/engineering work to qualified contractors.
Summary · p. 32
In Laos, we outsource third-party contractors, especially mining and processing work in our projects in Laos.
Summary · p. 32
During the Track Record Period and up to the Latest Practicable Date, we did not encounter any material disputes with our contractors in PRC, Laos and Ghana or experience any suspension or delay in our operations as a result of misconduct of our contractors.
Depending on our capability, resources level, cost effectiveness and the complexity of the project, we may subcontract specific parts of the project, such as jointing and trenching, to our subcontractors when the availability of our own labour resources is limited or the subcontracted works require specialised skills or expertise.
Business · p. 225
We remain accountable to our customers for the performance and quality of work rendered by our subcontractors.
Business · p. 226
We have implemented the following measures to monitor the quality and progress of works outsourced to our subcontractors so as to ensure compliance with our contract specifications:
The Group’s labour procurement costs represented the largest component of the its cost of sales for the years ended 31 December 2021, 2022 and 2023 accounting for approximately 78.4%, 91.5% and 89.5% respectively.
Financial Information · p. 319
As advised by the PRC Legal Advisers, the engagement of labour suppliers by the Group does not constitute subcontracting in nature, and the labour suppliers are not considered as the Group’s subcontractors.
Business · p. 235
As at the Latest Practicable Date, the Group maintained a list which contained over 60 approved labour suppliers whom the Group would engage from time to time.
We outsource certain services, mainly including labor services and specialized services subcontracting.
Business · p. 261
We keep a list of qualified subcontractors based on our series of evaluation requirements, including the period of existence, the scope of overall activities, industry credentials, and technical capabilities, in order to assure the general quality of our subcontractors.
Business · p. 261
In the event that our subcontractors fail to adhere to our performance standards, we reserve the right to claim the rescission right, impose liquidated damages or deduct subcontracting fees.