Hsin Chong hit by purported nonpaymentsBusiness | Dominique Nguy 26 Jan 2017
Hsin Chong Group (0404), a local construction company, reportedly owes subcontractors a total of HK$500 million, a local newspaper has reported, citing an unnamed Hsin Chong staff.
The stalled payments are said to have adversely affected the pace of construction work at Marriott Hotel at Ocean Park and at M+, a museum of visual culture in west Kowloon. Another Hsin Chong staff member said work on M+ had slowed and certain electrical and mechanical services subcontractors had threatened to suspend their work.
A Hsin Chong spokesman said the company was working to make payments to subcontractors. He declined to comment on individual projects.
Meanwhile, Ocean Park said the Marriott Hotel project is being developed by Lai Sun Development (0488) which has been paying Hsing Chong on time. It added work on the project was going on.
Meanwhile the West Kowloon Cultural District Authority said it has been making full payments on time to companies charged with construction work in the district.
It said was not aware of any delay in construction of M+ and it would monitor closely progress on the project.
Last September, Anonymous Analytics issued a "sell" rating on Hsin Chong and claimed the latter's non- executive chairman, Lin Zhuoyan, was using Hsin Chong as his "personal dumping ground" for problematic and non-revenue generating development properties at the expense of minority shareholders.