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Property developer Mah Sing Group Bhd is planning a mixed development project in Wujin, Jiangsu province in China, with an estimated investment cost of US$620mil.

The company, via wholly-owned subsidiary Mah Sing International (HK) Ltd, yesterday signed a letter of intent with the Wujin Government to develop the said project.

In a statement yesterday, Mah Sing said it would establish a joint-venture (JV) company with China-based developer DanLong Realty (Beijing) Co to jointly develop a 87.31-acre site along Wuyi Road, a major thoroughfare in the central area of the Wujin district.

»We are confident of creating an outstanding development« TAN SRI LEONG HOY KUM

Mah Sing, which would have a 51% stake in the JV company, said the development would comprise “medium- to high-end residential and commercial components.”

The Wujin Government had also given the JV company the opportunity to explore additional land, namely 53.13 acres north of Wujin High-New Zone of Zhangzhou City and 82.37 acres at the north intersection of Wunan Road and Wuyi Road, Wujin District, it said.

Mah Sing group managing director-cum-group executive Tan Sri Leong Hoy Kum said in the statement: “We are confident of creating an outstanding development providing unique lifestyle experiences which will transform the way people live, work and play in Wujin.”

In a separate statement, Mah Sing said it had acquired 3.38 acres of freehold land in Penang for a cash consideration of RM38.65mil via its wholly-owned subsidiary, Klassik Tropika Sdn Bhd.

Mah Sing said the land in George Town would be developed into a high-end condominium with an estimated gross development value of RM280mil.

“The acquisition is strategic as it allows the group to tap on the success and spillover demand of Mah Sing’s Residence@Southbay project in Batu Maung,” Mah Sing said.

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John Master Industries Bhd, which said last month that it planned to sell the business and return capital to shareholders, will stay listed on the local bourse after a reverse takeover by a Chinese textile maker.

It may become the fourth company from China to be listed on Bursa Malaysia once several corporate exercises are completed by the first quarter of next year.

Xingquan International Sports Holdings Ltd, a Chinese shoemaker, was the first direct foreign listing in Malaysia last month. Another China firm, Multi Sports Holdings Ltd, is due to be listed soon.

Sino Hua-An International Bhd was the first China company to go public here via a back-door listing when it took over Antah Holdings Bhd’s listing status in March 2007.

John Master said yesterday that it will sell the entire clothing and property business through an open tender for RM78.5 million and return RM77.5 million, or 63 sen per share, to shareholders after deducting the expenses involved.
After that, it will issue new shares, convertible bonds, and make a rights offer to buy China-based Be Top Group Ltd, the holding company of fabric maker Top Textile (Suzhou) Co, for RM328 million.

Be Top’s owners, Pan Ding and Pan Dong, will own more than 51 per cent of the company after the deal, while John Master’s existing key shareholder, the Ho family, may hold up to 9 per cent. The new owner is providing a profit guarantee of at least 100 million yuan after tax for financial year 2009.

“We are excited with John Master’s re-emergence as a China-based manufacturing powerhouse. Shareholders will have the choice of re-investing in a transformed company or keeping the cash from the capital repayment,” John Master executive director Jackson Ho said in a media briefing in Kuala Lumpur yesterday.

John Master shares rose 8.1 per cent to close at 73.5 sen on Monday before trading was suspended for the announcement yesterday.

Trading in the stock will resume this morning. The stock has risen 67 per cent this year, with most of the gains made in the last one month or so.

Be Top Group received approval to float its shares in Singapore last August, but the plan was put on hold due to the financial crisis. It turned to Malaysia because the stock market here is more stable and less affected by the credit crunch, founder Pan Ding said.

“John Master has also shown great faith in us after visiting our factory in China. The major shareholder is staying on as an investor after the deal. I believe other existing investors will continue to stay on board,” Pan Ding said.

Be Top’s garment products are sold to many well-known brands in China, he added, and the industry has huge potential as the country’s 1.3 billion people are beginning to see clothing as a fashion item rather than basic essentials given the rising affluence.

Be Top’s products are also exported to established Western chain stores like Wal-Mart, Target, Sears, Marks and Spencer, and H&M.

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Goldis Bhd’s wholly-owned subsidiary Goldis Water Pte Ltd expects to recoup the capital outlay for its newly clinched waste water treatment plant project in China in five to eight years, said Goldis Water director Leong Kok Chi.

According to Leong, the project would need an investment outlay of some RM13.8mil, financed via internal funds and bank borrowings.

Goldis Water yesterday signed a build, operate and transfer (BOT) concession for a waste water treatment plant in Zou Cheng Industrial Park in Shangdong, China, with Zou Cheng Industrial Park Management Committee via its unit Zoucheng Xincheng Waste Water Co Ltd.

The 25-year concession is the third waste water treatment concession in China for the Goldis group.

It already operates two other BOT waste water treatment concessionaires in Shangdong and Jiangsu provinces which are already in operation and contributing to group earnings.

“The first BOT was completed in 2007 while the second was only finished in the middle of last year. Both are contributing positively to cash flow currently,” Leong said.

Zoucheng Xincheng Waste Water director Lee Choon Kok said the total capacity of the waste water treatment plant was 80,000 cu m per day with an initial capacity of 20,000 cu m per day.

“Construction is expected to start next month with the plant to be commissioned by the end of next year,” he said, adding that it would take three to four years to reach maximum capacity.

As for other contracts, Leong said the group was following up on a couple of similar projects in China and was “talking to several parties at the moment”.

“China will be our focus for the time being in terms of waste water treatment projects. The two provinces, Shangdong and Jiangsu, are where we have started to build our base,” he added.

Leong noted that there was tremendous growth opportunities in the water and waste water treatment industry in China as it was relatively underdeveloped and new compared with developed countries.

Zou Cheng City is said to be considering another three waste water treatment projects with daily capacities of 60,000, 80,000 and 100,000 cu m respectively.

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