Build King Holdings Limited (Build King) announced that its indirect wholly-owned unit, Titan Foundation, has signed two connected sub-contracts with Faith Oriental Investment, a wholly-owned subsidiary of Build King’s majority shareholder Wai Kee Holdings.
Key transaction terms 1. Underground Quarry Sub-Contract • Scope: Design, construction and maintenance of underground tunnels, associated drainage, landscaping, site accommodation and security at Lam Tei Quarry. • Contract value: HK$888.85 million on a fixed-price basis, subject to authorised variations. • Execution milestones: Cumulative completion targets range from 3% within one year to 100% within 10 years. • Tenor: Up to 5,022 days (approximately 13 years 9 months) from site possession, expected in the last quarter of 2026. • Payment: Monthly progress payments with 1% retention; revenue recognised under the percentage-of-completion method.
2. Rock Transportation Sub-Contract • Scope: On-site transportation, uploading and feeding of excavated and imported rock within the quarry, including logistical support for crushing and processing plants. • Estimated value: HK$217.12 million, measured by actual quantities at agreed unit rates; subject to variation orders. • Tenor and payment terms: Co-terminous with the underground contract; monthly payments with 1% retention.
Strategic rationale Management cited Titan’s established track record at Lam Tei under the 2015 Sub-Contract and the alignment of quarry and transportation services with the Group’s core construction competencies. Accelerated excavation within five years—versus the 10-year milestone schedule—could enhance cost control, although payments remain tied to the longer 2026 Main Contract timetable.
Connected-transaction implications • Wai Kee controls 58.33% of Build King’s issued shares, making both Wai Kee and Faith Oriental connected persons under Hong Kong’s Listing Rules. • The HK$888.85 million and HK$217.12 million deals each exceed the 5% shareholder approval threshold; hence reporting, announcement and independent shareholder approval are required. • An Independent Board Committee comprising all four INEDs will advise minority investors, with Ballas Capital appointed as Independent Financial Adviser. • Wai Kee and its associates, as well as Chairman Mr Derek Zen (who holds 9.89% of Build King and 34.15% of Wai Kee), will abstain from voting.
Next steps A special general meeting is scheduled for 14 August 2026 to seek independent shareholders’ approval. The circular containing full details of the transactions and the IFA’s opinion is expected on or before 30 July 2026.
Comments