- Already the in-house contractor and project delivery partner for China Railway Construction Corporation (“CRCC”), Vivocom now formalises partnership with subsidiary of China Nuclear Engineering Group Corporation to collaborate on projects!

KUALA LUMPUR, May 31 (Bernama) -- Vivocom Intl Holdings Berhad (“Vivocom”; stock code 0069) has just announced to Bursa Malaysia that it has signed a letter of intention to cooperate (“LOI”) issued by Zhonghe Huaxing Development (M) Sdn Bhd ("Zhonghe Huaxing”) for the purposes of cooperating and collaborating on property development, construction, project management and other related activities in connection with property development and construction projects (“Proposed Cooperation”).
 
Zhonghe Huaxing is a subsidiary company of China Nuclear Industry Huaxing Construction Company Limited (“China Nuclear Huaxing”), which in turn is controlled by China Nuclear Engineering Group Corporation (“China Nuclear Engineering”) a conglomerate with expertise in the construction of military and civil infrastructures as well as commercial development, both in China and abroad. China Nuclear Engineering Group Corporation is a state owned enterprise held by the central government of China. 

According to the Bursa filing, the intention of the collaboration is for both parties to work together, collaborate and combine resources for the purpose of procuring development and construction projects; and to record the general understanding and relationship to undertake business collaboration in respect of such projects as well as the preparation and submission of tenders or proposals, and the responsibilities of each party in respect of the projects secured.
 
None of the directors or major shareholders of Vivocom and/or any persons connected to them have any interests, direct or indirect, in the LOI.
 
“We are very pleased and proud to be in partnership with a reputable conglomerate such as China Nuclear Engineering Group Cooperation, which can only augur well to the foreseeable prospects of Vivocom Group. This partnership will put the Company in very good stead as we can now look forward to cooperating on endless projects with a proven giant in the construction industry worldwide” said Vivocom executive director Choo Seng Choon.
 
Vivocom – A Long Term Player
For Q1 2016, Vivocom’s quarterly revenue surged to RM141.54 million with profit before taxation soaring to RM33.29 million for the first three months of 2016. After accounting for taxation and minority interests, net profit came in at RM19.87 million, a 2,053 percent giant of a jump from the RM923,000 posted in the previous corresponding period.
 
This huge jump in revenue and profits was attributed to Vivocom’s construction division which posted PBT of RM30.01 million of the back of RM125.81 million in revenue. What’s more, the company’s order book is swelling to above RM1.4 billion, and comes on the heels of its sterling Q1 2016 results when it exceeded analysts’ expectations by a whopping 76%!
 
“This collaboration with China Nuclear will most definitely multiply wealth and add tremendous value to Vivocom, and we are most confident that this partnership will contribute positively and strongly to the financial performance of the company in the foreseeable future, and ultimately to our loyal shareholders who take a long term view with us,” said Choo.
 
About China Nuclear Huaxing
China Nuclear Huaxing is a large and comprehensive construction company, with shares held by China Nuclear Engineering Group Corporation directly under state central management. It is a leading enterprise of nuclear power construction at home and abroad, and a domestically well-known construction company with supreme qualification for housing construction and a military enterprise group with rich experience of military engineering. The main responsibilities of China Nuclear Huaxing are to undertake nuclear projects, national defense projects, nuclear power plants and other industries and civil project construction.
 
China Nuclear Huaxing adopts a corporation management mode with project division as the core, possessing over 40 subsidiary and associate companies with around 8,000 staff. China Nuclear Huaxing takes nuclear power engineering, non-nuclear civil engineering and military engineering as its major business, with business capacity of complete value chain of construction industry such as investment and financing, research and development, engineering consulting, survey, design, civil engineering, installation, manufacturing, supervision, property and so on. 

China Nuclear Huaxing was founded in 1958, with the excellent tradition and profound military background, undertook the construction of the test base of China’s “A-bomb, H-bomb and nuclear-powered submarine” and many other nuclear and military projects. At present, the business income from military engineering accounts for about 10%.
 
China Nuclear Huaxing has undertaken a large number of military construction works of science and technology related with national defense and has accumulated rich project technologies and management experience, which makes it possess special advantages in the fields of military and nuclear engineering with high standards for high-tech and sophisticated technology and security etc to become one of the main contractors for national defense and military projects.
 
Amongst the notable projects undertaken by China Nuclear Huaxing include:
 
Nuclear segment
1)    Jiangsu Tian Wan Nuclear Power Plant
2)    Guangdong Da Ya Bay Nuclear Power Plant
3)    Guangdong Taishan Nuclear Power Plant
4)    Fujian Ning De Nuclear Power Plant
5)    Liao Ning Hong Yan He Nuclear Power Plant
 
Non-nuclear segment
1)    Shanghai International Gymnastic Center
2)    School of Mechanical and Aerospace Engineering, Singapore
3)    Global Innovation Center of Johson & Johnson (China) Co. Ltd in Shanghai
4)    Hassanm Sport City, Jordan
5)    Australian Hall, Shanghai World Expo
6)    Lincoln Suite in Singapore
7)    Johor Bahru D’pristine Project, Malaysia
8)    Abbot Nutrition Plant in Jiaxing

SOURCE :VIVOCOM INTL HOLDINGS BERHAD

FOR MORE INFORMATION,PLEASE CONTACT:
Name: Choo Seng Choon
Executive Director 
Email: info@vivocomgroup.com

--BERNAMA