THE board of directors of HLH Group announced on Wednesday the termination of the construction project D'Seaview in Sihanoukville, Cambodia with Yanjian Group Co Ltd from July 21.
It was a mutual termination agreement on the basis that Yanjian Group was unable to comply with the terms set in the contract.
As consideration of the termination, HLH Group forfeited the tender deposit of US$10,000 made by Yanjian Group during the tender process for the project. It has also been agreed that both parties are responsible for and shall bear their own costs and expenses as a result of the termination.
On another note, HLH Group announced that the construction project has been newly awarded to Sinohydro Corporation Limited for about US$35 million. Piling works for the D'Seaview project has been completed, and the site has been officially handed over to Sinohydro.
As a result of this transaction, the percentage of sales achieved on the D'Seaview project is 53 per cent. Construction of the mixed development is still in progress.
The company advised shareholders that this is not expected to have any material impact on the financial performance of HLH for the financial year ending Dec 31, 2016.