According to the Zhitong Finance App, Longsheng Group Holdings (06829) announced that the company signed a non-legally binding framework agreement with a precast concrete manufacturer in the People's Republic of China on May 31, 2023 and July 5, 2023, respectively, on cooperation matters relating to the Assembly of Composite Construction (MIC); and a consultancy agreement with an architectural design consulting firm in Hong Kong.

Under the framework agreement, the company agreed to cooperate with the precast concrete manufacturer to jointly prepare the MIC project to be carried out in Hong Kong and to jointly execute and complete any project involving the MIC project for a period of three years. The company also agreed to design and promote MIC projects and other precast concrete components in Hong Kong. The precast concrete manufacturer agreed to optimize the design of precast concrete components and send experts to Hong Kong to conduct field visits to ensure the quality of MIC engineering and other precast concrete components.

Under the consultancy agreement, the company agreed to appoint consultants to provide consultancy services for applying to the Hong Kong Buildings Department for approval of the MIC system in principle.

The board believes that establishing framework agreements and consultancy agreements with precast concrete manufacturers and consultants is of great benefit to diversifying the company's existing business and expanding its revenue sources, enriches its existing construction expertise, allows the company to develop more comprehensively, and helps the company to meet increasing market demand.

The board also believes that precast concrete manufacturers specialize in the production of precast concrete components for MIC, and that the company can use its expertise to strengthen the company's position in the MIC engineering field in Hong Kong, so it is in the overall interests of the company and its shareholders.