We noted the press statement issued by the West Kowloon Cultural District Authority (WKCDA) in relation to the Main Contract for the M+ Museum construction project (M+ project), the Group wishes to state that we have to-date not received any formal notification of the intended termination in accordance with the terms specified in the Main Contract. Further we found that the intended termination of the Main Contract of the M+ project was not based on a valid reason provided in the Main Contract.
The Group does not agree to the alleged reason of termination of the Main Contract in relation to insolvency. First, there is no evidence that Hsin Chong Construction Company Limited (HCC) was insolvent. Secondly, the financial condition of Hsin Chong Group Holdings, HCC's parent company, was irrelevant insofar as the Main Contract is concerned. Procedurally, the announcement of WKCDA’s termination has not complied with the procedure set out in the Main Contract.
Based on the above, the Group concludes that there is no valid termination to-date and the purported termination was incorrect.
The Group is disappointed with WKCDA's approach towards the matter and their action. The Group has been in frequent and open discussions with WKCDA on how our delivery of the project can be further improved. We have made various proposals to WKCDA and have been jointly exploring the possibility of such proposals. Yet, without first notifying us, WKCDA unilaterally chose to speak to the public.