CK ASSET(HK:01113) Sou Hu Cai Jing·2025-05-25 19:02Core Viewpoint - The Hong Kong Independent Commission Against Corruption (ICAC) has launched an operation named "Battle Drum" targeting the Longfor Group's "First Home Ownership Scheme" project, revealing significant corruption and safety issues in the construction process [1][3]. Group 1: Project Overview - Longfor Group acquired the Anderson Road site for HKD 49.5 billion, planning to build six residential towers with nearly 3,000 units, one-third of which were to be sold at a 20% discount to assist ordinary citizens [3]. - The project was initially perceived positively due to the reputation of the Li Ka-shing family and the government's focus on public welfare [3]. Group 2: Corruption and Safety Issues - The ICAC's investigation uncovered severe deficiencies in the steel reinforcement work, including improper spacing, reduced diameter of steel bars, and significant misalignment of critical load-bearing structures [3][5]. - The investigation revealed a systematic corruption scheme where subcontractors bribed main contractors and supervisory personnel, leading to compromised construction quality [5]. Group 3: Company Response and Public Perception - Longfor Group's public relations response attempted to deflect responsibility onto subcontractors and supervisory parties, claiming the group was not directly involved [7]. - The chairman of Longfor Group, Li Zeju, avoided addressing the quality issues during a shareholder meeting, instead focusing on the company's financial health [7]. - The incident has led to a potential loss of public trust in Longfor Group, with the construction site now symbolizing the ethical dilemmas within the capital-driven industry [9]. Group 4: Industry Implications - The ICAC's actions signal a forthcoming overhaul in the Hong Kong construction industry, aiming to eliminate corrupt practices such as bribery and document falsification [9]. - The need for a fundamental restructuring of values within the industry has been highlighted, as the current situation threatens the reputation of major players like Longfor Group [9].