Sing Kung’s business model is built on its deep connections to China’s top urban planning institutions, discipline in analyzing the financial position of client municipalities, a focus on strategic partnerships with those municipal clients it chooses to serve, and senior management relationships that facilitate the assembly and oversight of construction consortiums to efficiently handle primary infrastructure construction across the country. Management believes this capability is difficult for competitors to replicate and this affords the Company competitive edge in builds the scale of its business.

Urban planning. For historical and policy reasons, urban planning in China is performed primarily through the state-funded university system, either directly with faculty led teams or teams led by staff of university-affiliates. These institutions have long history of consulting for the Chinese government at the central, provincial and municipal level on new city planning and economic development. The Company’s collaborations with university project teams allows them to actively participate in assessing project economic viability, and selecting the most attractive projects that come to bid in the BT mode.

Client financial assessment. Given China’s lack of transparency in the financial health of governmental institutions and independent rating mechanism compatible to those in developed countries, assessment of municipal financial risk is difficult to be implemented in China. The Company conducts its own analysis of municipal government financial condition before proposing any BT project involving long-term payments. In this area, it relies heavily upon guidance from its Chairman, who used to work as the Chief Economist for the China Development Bank, as well as a robust advisor team who have close relationships with both state and commercial banks. As a result, they can provide useful information and their perspective on municipal fiscal condition.

Municipal relations. The Company’s senior management and advisors have established a large network with municipal and provincial leaders, including those who had satisfactory experience with the Company. Regular contacts are maintained with more than 50 municipalities for client pool. In addition, the Company has set up an active business development calling mechanism with municipal governments introduced by urban planning partners. To maintain established social network as well as identify new opportunities, the Company deploys senior staffs in project offices across China, who are well honored in urban planning profession, to maintain a smooth and frequent contact with municipal officials for pending projects . They also assist in counseling project financing, marketing and later-stage development activities. Their roles make more sense for those emerging administrative cities, small and lack of talent resources. Their sophistication can shortly obtain the officials’ trust and win the projects.

Engineering and construction partnerships. The management of the Company has cultivated long term relationships with leading engineering and construction companies in China who are sophisticated in evolving cost norms to conduct projects and best practices in China’s enormous but highly fragmented construction industry. They also represent reliable go-to resources to constitute competitive bidding consortiums who can work anywhere in the country. Execution partners are selected by the Company’s management and the qualified ones should have strong background in project operation and be able to provide a substantial portion of working capital for a project. The Company’s BT project consortiums often include one or more of strategic partners who are qualified with Class 1 licenses to design and execute state-funded infrastructure projects. They are cooperative and experienced in fully utilizing local resources by re-injecting collected project revenues into cash flow cycle in the form of wages and sub-contract revenues to secure synchronized operation on different projects.