Recently, as Ronggong Construction Engineering (Chongqing) Co., Ltd. successfully completed the change of industrial and commercial registration, Chongqing Ronggong officially became a wholly-owned subsidiary of L&K Engineering (Suzhou) Co., Ltd. This is a key step for L&K to enhance the business synergies and its market competitiveness, which will help the company to further focus on its main business, greatly improve its business capacity and expand its market space.
 

Ronggong Construction Engineering (Chongqing) Co., Ltd., founded in 2007, is mainly engaged in the construction of housing construction projects and has the second-class qualification for general contracting of construction projects. Previously, the company's controlling shareholder L&K Engineering Co., Ltd. and Taiwan Ronggong Engineering Co., Ltd. held a total of 100% of the shares together.
 

The acquisition of Chongqing Ronggong will be conducive to the company's planning and layout strategy, and it will enhance the company's business synergies, and thus enhance the company's business opportunities and make it occupy more advantages in the market competition. Thus, the company held the 11th session of the fourth board of directors on April 29 this year, deliberating and adopting the Proposal on the Acquisition of 100% Equity of Ronggong Construction Engineering (Chongqing) Co., Ltd. and Related Transactions, and held the first interim general meeting of shareholders in 2020 on May 15 which adopted the Proposal.
 

The completion of Chongqing Ronggong’s change in industrial and commercial registration drew a perfect full stop for this acquisition. The company will focus on exploring the main business and operate the businesses prudently to keep improving. By integrating the resources of two sides, including enterprise qualification, brands, R&D and technology, taping potential and expanding the main customer resources, we will achieve synergies and strengthened advantages between the company and Chongqing Ronggong, and look for more in-depth market space. At the same time, the company will also give play to its own strong power, strive to achieve business upgrading, improve the overall profitability, so as to create more efficient and diversified service system for customers.