Prefabricated Construction

Market Outlook

Prefabricated construction technology has been widely applied in construction industry in mainland China, Hong Kong, and Macao. Since the release of Guiding Opinions of the General Office of the State Council on Effectively Adopting Prefabricated Construction in 2016, promoting prefabricated construction has become a national strategy, according to which prefabricated construction will account for 30 percent of new construction by 2025.

Driven by policy, China's prefabricated construction has been in an explosive growth period. The area of newly built prefabricated construction in mainland China increased from 14.25 million square meters in 2012 to 290 million square meters in 2018 (accounting for 13.9% of new construction), with a CAGR of 65.2%. By 2025, the scale of prefabricated construction market will exceed 1.5 trillion.

Hong Kong, as a pioneer of prefabricated construction, has been adopting an upgraded technology called MiC (Modular Integrated Construction) to overcome challenges in construction such as high cost and labour shortage. The Group applied the MiC in building Lei Yue Mun Park and Holiday Village Emergency Virus Prevention Observation and Isolation Centre project and Temporary Quarantine Facilities at Penny‘s Bay project in Hong Kong.

Business Overview

• China State Construction Hailong Technology (Hailong), the Group's prefabricated construction platform, was founded in 1993 and entered the prefabricated construction market in Hong Kong. It has been acknowledged as qualified supplier of industrial construction products by Hong Kong's Housing Department, Buildings Department, Drainage Services Department, and Highways Department. Since its expansion into mainland China in 2012, Hailong has been awarded as the National Housing Industrialization Base.

  Adopting a whole-industry-chain development mode, Hailong:

  • integrates the R & D, design, production, transportation and installation of construction components;
  • explores the technology of construction industrialization, standardization and informatization;
  • designs and produces new prefabricated construction products, green energy-saving and environmental protection building material;
  • provides related technical services and training.

  Since its establishment, Hailong has accomplished over 240 prefabricated construction projects, with a total construction area of 31 million square meters.

  Learn more: http://hl.cohl.com/

Production Capacity

Since its establishment, Hailong has continuously improved its production and operation capacity, maintaining an absolute leading position in the industry. In 2019, Hailong's revenue exceeded 1 billion HKD and the net profit exceeded 100 million HKD. At present, Hailong owns 6 production bases and 32 production lines, with a designed capacity of 1.45 million cubic meters. In addition to the internal project demand of the group, the proportion of external sales is expected to reach 30% in 2020.