Mudajaya Group Berhad, an active participant in the construction, power generation, property as well as manufacturing and trading sectors; is focused on executing its jobs in hand, winning new projects to build up its pipeline domestically, as well as working on strategic growth plans to expand overseas. Mudajaya announced that it has moved forward with its investment into China, with the acquisition of the entire equity interest in Real Jade Limited; by a wholly-owned indirect subsidiary of the Group, Xelmont Limited. This was for an indicative purchase consideration of HKD 400,000,000 (equivalent to MYR 224,320,000) on an accepted net asset basis.

Real Jade Limited is principally engaged in investment holding. Through its subsidiaries, Real Jade commenced business in 1993 and is involved in the manufacturing and trading of cement and clinker in China. Real Jade and its subsidiaries are also involved in the provision of energy conservation and reuse solutions, through the installation of energy efficient and environmentally friendly air-conditioning and heating systems for commercial, residential and industrial buildings.

Real Jade Group also owns and operates a production plant located in Shandong, China. The plant possesses a total land area of approximately 1.4 million square feet for its manufacturing of cement and clinker; with an annual production capacity of 1 million tonne. Over the years, Real Jade Group has invested over RMB10 million on research which is supported by a workforce of more than 50 employees.

With its acquisition of Real Jade Group, Mudajaya has expanded its geographical footprint into the China market, which bodes well with the Group's objective to capture the growth opportunities abroad in the manufacturing and trading of construction materials. China's central and local governments are expediting the rollout of major infrastructure projects as the country faces downward economic pressure. The country's top economic planning agency recently announced that it will moderately front-load infrastructure investment and steadily push forward mega projects earmarked for the 14th Five-Year Plan period (2021-25).

This expansion of Mudajaya's trading and manufacturing segment overseas will allow the Group to expand its revenue stream. The Group is confident that the acquisition will contribute positively to the Group's earnings and growth moving forward.