FEG Holdings Corporation Limited (FEG HOLDING-NEW, 01413) has announced that its wholly-owned unit FEG Engineering (Shenzhen) Co. Ltd. signed a non-legally binding Memorandum of Understanding (MOU) with Rongyichaoye (Shenzhen) Construction Engineering Co., Ltd. after market close on 18 March 2026.
The two-year MOU establishes a strategic cooperation framework focused on developing health and wellness infrastructure across mainland China, particularly in the Guangdong-Hong Kong-Macao Greater Bay Area. Key components include:
1. Engineering & Construction • Rongyichaoye will prioritise FEG Engineering as engineering services provider for upcoming projects. • Initial projects named are the Bokang Care Home and the Zhongkang Qijing Health Station, scheduled to start construction progressively from Q3 2026.
2. Capital Collaboration • The parties will study forming a dedicated construction fund to attract external financing. • Subject to Hong Kong Listing Rules, they will examine the feasibility of injecting selected Rongyichaoye project assets into FEG Engineering.
3. Standards Development • Joint research to formulate standards for elderly-friendly design and wellness community construction, aiming to support orderly sector growth.
Rongyichaoye, led by industry veteran Mr Xiong Yi, has secured letters of intent covering multiple health and wellness projects in the Greater Bay Area. The aggregate potential engineering contract value is estimated in the multi-billion range over the next three to five years.
FEG’s Board views the agreement as a strategic step to diversify and transform the Group’s business portfolio, capitalising on rising demand driven by China’s ageing demographics and evolving healthcare needs. As the MOU is non-binding (except for clauses on confidentiality, legal effect and dispute resolution), each project will require separate definitive agreements.
The MOU does not constitute a notifiable or connected transaction under Hong Kong Listing Rules. Further announcements will be made if and when binding agreements are executed.
Shareholders and prospective investors are cautioned that there is no assurance the intended cooperation will proceed or be completed.