Prefabricated construction, or "prefab", which involves assembling buildings on-site using prefabricated components, represents a significant shift in construction methods. Prefab offers advantages such as resource and energy conservation, reduced construction pollution, improved labor productivity, quality and safety, and deep integration between the construction and information industries. In November 2015, the Ministry of Housing and Urban-Rural Development issued the Outline for Modernizing the Construction Industry, which aimed to achieve a proportion of over 20% for prefabricated buildings in new buildings by 2020 and over 50% by 2025. National authorities have also called for government-funded projects to lead the way in prefab development and promote its expansion overseas.
Hiteknova (Xiamen) Intelligent Technology Co., Ltd. is a renowned domestic provider of intelligent solutions for multi-story prefabricated buildings. Established in 2009, Hiteknova stands as a high-tech enterprise dedicated to the development of industrial-grade 3D architectural design software and computer-aided manufacturing (CAM) software, running of an internet platform for architectural components, R&D of prefab systems, and the development and manufacturing of intelligent devices. Since inking a partnership agreement with Victwo in 2022, Hiteknova has benefited from Victwo's support in connecting with various construction projects in Africa, Asia, and the Americas. However, constraints such as risk management and financing have impeded Hiteknova's participation in large-scale overseas construction projects.
To address these bottlenecks and facilitate Hiteknova's substantial growth in overseas markets, a delegation consisting of four experts from SINOSURE, a company under the direct administration of the Ministry of Finance, visited Hiteknova's headquarters for the production of prefabricated steel structure buildings in Xiamen on March 13, 2024, at the special invitation of Victwo and in the company of Mr. Edward Yang, Chairman of Victwo, and Mr. Wang Jinfang, Assistant Director of SINOSURE Xiamen Branch. On inspecting Hiteknova's exhibition hall, production workshop, and sample display room, the delegation engaged in discussions with Mr. Edward Yang and General Manager Chen Xin of Hiteknova on the specific opportunities for Hiteknova's participation in a public housing construction project in an African country.
The delegation first introduced the background and business experience of SINOSURE and SINOSUREC CREDIT. To help Hiteknova expand its business scale, Mr. Edward Yang and the visiting experts suggested that Hiteknova transition from an equipment supplier to a supplier of prefab products and upgrade the business model from product export only to project contracting and industrial investment combined. In addition to overseas risk management services, visiting experts said, SINOSURE is capable of providing clients with tailored short-term, medium-term, and long-term project financing solutions. On the strength of Victwo's overseas market resources and SINOSURE's expertise in risk management and financing for overseas projects, as well as its extensive connections with state-owned enterprises, Hiteknova has the potential to transform from a well-known domestic provider of IT-enabled prefab equipment to an internationally renowned supplier of prefab products, eventually achieving substantial growth in sales revenue and profits in overseas markets.
