On May 8, 2025, Horizon Construction Development (stock code: 09930.HK), a leading Chinese integrated equipment operation service enterprise, announced the formal signing of an equity acquisition agreement with TH Tong Heng Machinery, Malaysia's largest local comprehensive equipment leasing company. In the first phase, the acquisition will acquire 80% of Tong Heng's equity and fully integrate it with Horizon's Malaysian business, which is expected to generate considerable synergies; the remaining 20% equity will be priced based on future long-term operating performance. This is the first cross-border controlling-stake M&A by a leading enterprise in China's equipment leasing industry, marking a new stage of in-depth integration of "industrial capital + local operations" in Chinese companies' global layout.

Signing ceremony site for the strategic merger of Horizon Construction Development and TH Tong Heng Machinery

Public information shows that the acquired party, TH Tong Heng Machinery, was founded in 1994 and is led by Malaysian Chinese entrepreneur Tan Kheng Chai. Tong Heng is Malaysia's largest local comprehensive multi-category equipment leasing company, with numerous core product lines including aerial work platforms and lifting equipment. It ranked 71st on the 2024 Access 50 list of the world's top 50 aerial work machinery rental companies[1] and first in Malaysia.

Tong Heng equipment

The acquirer, Horizon Construction Development, is the equipment operation flagship platform under Far East Horizon (03360.HK), a comprehensive group spanning finance and industry. It completed its spin-off listing in Hong Kong in May 2023 and ranked 14th on the 2024 IRN100 list of the world's top 100 equipment rental companies[2], while also ranking global No. 2 on the 2024 Access 50 list of the world's top 50 aerial work machinery rental companies[3].

Backed by strategic shareholder resources including XCMG, Zoomlion, Zhejiang Dingli, and Shandong Lingong, together with Far East Horizon's "finance + industry" development DNA and deep resources in the international construction machinery industry, Horizon Construction Development focuses on providing one-stop integrated "product + service" solutions for construction and industrial customers. It leads domestic peers in overseas layout and has now built a global service network covering 59 overseas outlets[4] in 7 overseas countries. After completion of this transaction, the two parties will achieve "triple strategic synergy," including product complementarity, channel overlap, and technology integration.

Horizon Construction Development equipment

According to Horizon Construction Development's publicly disclosed Q1 operating summary, overseas business revenue in Q1 2025 grew substantially year on year, accounting for more than 15% of total revenue. Horizon Construction Development's globalization strategy has entered a harvest period.

Strategically for Horizon Construction Development, this acquisition is not a simple capital M&A, but a re-engineering of the value chain for "Chinese manufacturing + Chinese services" going global. Horizon Construction Development CEO Zhan Jing emphasized, "Horizon Construction Development is committed to becoming a world-class integrated equipment operation service provider. This acquisition is a key measure in the company's international strategic layout after careful consideration. It will not only enhance the company's market share and competitiveness in Malaysia and achieve in-depth expansion of asset categories and customer groups, but will also set a successful example for the company's strategic cooperation with high-quality enterprises in Belt and Road countries."

[1] Ranking published by Access International under the UK's KHL Group

[2] Ranking published by International Rental News under the UK's KHL Group

[3] Ranking published by Access International under the UK's KHL Group

[4] Data source: Horizon Construction Development 2025 First Quarter Operating Summary Announcement (https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0414/2025041400868_c.pdf)