TORONTO, Aug. 6 /CNW/ - Boyuan Construction Group, Inc., (TSX-V: BOY & BOY.DB) a leading builder of commercial, residential and municipal infrastructure projects in China's fast-growing regions of the Yangtze River Delta and the city of Sanya on Hainan Island, announced today that it has signed new agreements for two separate construction projects. The total aggregate value of the new agreements is US $21.8 million.
"While favorable economic and demographic trends, including the rise of the middle class, continue to drive our growth in our core markets, we are also expanding into newer regions, such as the Jiangxi province, where our reputation for building quality projects on time and budget is helping us to win new customers and long-term projects," said Mr. Cai Liang Shou, Chairman of Boyuan Construction Group.
Boyuan will construct a residential development project consisting of a gross construction area of 120,000 square metres in Jiangxi, a fast-growing province in southern China with approximately 42.8 million people. Valued at US $16.8 million, the residential development project is expected to be completed by the first quarter of 2011. Jiangxi represents a new market opportunity for Boyuan, particularly for residential projects.
Boyuan will also construct a new school facility in Zhejiang, a province in the Yangtze River Delta, Boyuan's core market. The project, valued at approximately US $5 million is expected to be completed by the second quarter of 2010. The Yangtze River Delta is home to approximately 80 million people and 20% of China's gross domestic product, equivalent to US $2 trillion.
About Boyuan Construction Group, Inc.
Based in Jiaxing City, China, Boyuan Construction Group, Inc. is in the business of residential and commercial building construction, municipal infrastructure and engineering projects. In its last three fiscal years ended June 30, 2008, Boyuan completed more than 120 projects for a number of private and public sector clients including Cargill and the Dalian Shide Group, a billion dollar conglomerate whose partners include DuPont, Mitsubishi and GE. Boyuan's current projects include residential, industrial and mixed-use developments, including a five-star hotel and a project at the Qingshan Nuclear Plant, China's first and largest nuclear facility. From its operating bases in Zhejiang Province and on Hainan Island, Boyuan focuses on construction projects in China's fast-growing regions of the Yangtze River Delta and the city of Sanya.
Caution concerning forward-looking statements
Statements in this news release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future.
It is important to note that actual outcomes and Boyuan's actual results could differ materially from those in such forward-looking statements. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others: (1) the failure of Boyuan to execute its business plan, (2) the risks arising from Boyuan's operations generally (such as the ability to secure raw materials, arrange for manufactured products on a timely basis, and maintain an adequate workforce), (3) Boyuan's ability to remain competitive as other parties develop and release competitive projects and services, (4) Boyuan's ability to retain the employees necessary to continue research and development of current and new projects and services, (5) the success by Boyuan of the sales of its projects and services, (6) the impact of competitive products on the sales of Boyuan's projects and services, (7) the impact of technology changes on Boyuan's projects and services, (8) Boyuan's reliance on contractual rights such as licenses and leases in the conduct of its business, (9) general economic conditions as they affect Boyuan and its current and prospective customers, (10) the ability of Boyuan to control costs operating, general administrative and other expenses, and (11) insufficient investor interest in the Boyuan's securities which may impact on Boyuan's ability to raise additional financing as required.
Actual future results may differ from the anticipated results expressed in the forward-looking statements contained in this press release and Boyuan does not undertake to update this information. Investors are cautioned against placing undue importance on forward-looking information contained herein and should consult Boyuan's disclosure documents filed from time to time on SEDAR and other public filings which contain a more exhaustive analysis of risks and uncertainties connected to Boyuan's business.
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