On 14 September, Ka Shui Group entered into a cooperation planning agreement (the “Agreement”) with the Northern Development Group in Qiqihar regarding the research and development (“R&D”) of using magnesium alloy’s motor casing for energy-saving electric vehicles. Northern Development Group is a private enterprise in the PRC which specializes in the R&D on the application technology of rare earth, as well as the transformation of its research results into applications. Equipped with first-class laboratorial facilities and R&D professionals, the Northern Development Group has established cooperation with different institutions, including the Changchun Institute of Applied Chemistry Chinese Academy of Sciences, the Harbin University of Science and Technology and Beijing Central Iron & Steel Research Institute. To meet up with the governmental policies and trends of “Vehicle Weight Reduction” and “New Energy Automobiles” in the PRC, the Group has continuously focusing on the R&D and application of rare earth magnesium alloy. Adding rare earth to magnesium alloy can enhance its existing physical properties, such as strength, malleability, toughness, mobility, corrosion protection and high temperature creep resistance etc. With the merit of such physical properties, rare earth magnesium alloy can then be used for the production of automotive parts which require high temperature resistance and high strengths. This Agreement was signed by Mr. Lee Yuen Fat, the Chairman of our Group, and Mr. Qu Cheng-yuan, the President of Northern Development Group. Mr. Hao Ming-zhe, the Deputy Mayor of the Qiqihar Municipal Government, had expressed in the signing ceremony that not only could this strategic cooperation facilitates further exploration in the domain of rare earth application, it could also be deemed as a technical revolution for rare earth. The cooperation between both parties is expected to further complement and extend the industry value chain, so as to achieve a win-win situation.

During this visit to Qiqihar, Mr. Han Dong-yan, the Secretary of Qiqihar Municipal Party Committee, Mr. Sun Shen, the Mayor of the Qiqihar Municipal Government, Mr. Hao Ming-zhe, the Deputy Mayor of the Qiqihar Municipal Government and Mr. Chen Hong-wei, the Secretary-General of Municipal Party Committee met with our Group’s Chairman (he is also the Chairman of the Hong Kong Federation of Innovative Technologies and Manufacturing Industries) and the delegates from the China Foundry Association, the Hong Kong Foundry Association, the Hong Kong Electro-plating Association, the Hong Kong Surface Finishing Society, the Hong Kong Metals Manufacturers Association, the Hong Kong 3D Printing Association, the SAE Hong Kong and the Hong Kong Critical Components Manufacturers Association. During the meeting, they had exchanged thoughts about the execution of cross-border projects, and had in-depth discussion with regard to technical details. Mr. Han Dong-yan had further expressed under the country’s strategic development of the “One Belt, One Road”, the competitive advantages of the nodal city – Qiqihar – have become more prominent. Hong Kong business sector has unique cognitive sense and capability in the international and domestic markets. This cooperation can facilitate the development and cooperation between Hong Kong’s manufacturing industries and the old north eastern industrial bases by bonding the strengths of these two regions together. Mr. Lee Yuen Fat, the Chairman of our Group, also commented that the delegates from various participating organizations believed that this trip to Qiqihar was very fruitful and had unveiled a lot of business opportunities.

Rare earth magnesium alloy and rare earth aluminum alloy are both important focus of development for our Group in the forthcoming future. Following the governmental policies of “Vehicle Weight Reduction” and “New Energy Automobiles” in the PRC, this cooperation not only can enhance the Group’s market share and position in the automotive components’ sector, but also help to extend the application of these alloys from 3C products to automotive parts which can create a more prosperous business future for the Group.

Group Photo of Government officials and the delegates from Hong Kong various commerce associations – Mr. Han Dong-yan, the Secretary of Qiqihar Municipal Party Committee (left 5 in the front), Mr. Sun Ji-zhou, the Secretary of Longsha District Party Committee (left 3 in the front), Mr. Qu Cheng-yuan, President of Northern Development Group (left 2 in the front)

Group photo of the tour with Mr. Qu Cheng-yuan, President of Northern Development Group (Left 4 in the front) 

Mr. Lee Yuen Fat, Chairman of Ka Shui Group visited China First Heavy Industries with Mr. Wang, Shu-sheng, the Secretary of Fularji District Party Committee (Right 2)

Mr. Sun Shen, the Mayor of the Qiqihar Municipal Government (Left 3) welcomed the delegates from Hong Kong various commerce associations

Visit to local industries workshop (From the right: 1. Mr. Xie Guang-quan, the Deputy Secretary of Longsha District Party Committee; 2. Local specicalist; 3. Mr. Jackie Hung, Senior Manager of R&D Center of Ka Shui Group; 4. Mr. Sun Ji-zhou, the Secretary of Longsha District Party Committee; 5. Mr. Lee Yuen Fat, Chairman of Ka Shui Group; 6. Dr. Peter Wong, CEO of Ka Shui Group; 7. Mr. Chow Hoi Ping, Permanent Honorable Chairman of the Hong Kong Metals Manufacturers Association; 8. Mr. Lawrence Chan, Chairman of Hong Kong Electro-plating Merchants Association; 9. Mr. Wong Lo Kin, Honorable Chairman of the Hong Kong Metals Manufacturers Association; 10. Mr. Yip Wai Hung, Honorable Chairman of Hong Kong Foundry Association)

Visit to Sapphire R&D center (From the right in the front: 1. Mr. Sun Ji-zhou, the Secretary of Longsha District Party Committee; 2. Mr. Lau Lei Keung, Chairman of Hong Kong Surface Finishing Society; 3. Mr. Lee Yuen Fat, Chairman of Ka Shui Group)

Delegates from Hong Kong various commerce associations at the welcome cocktail (From the right: 1. Mr. Wong Lo Kin, Honorable Chairman of the Hong Kong Metals Manufacturers Association; 2. Mr. Chu Kong Hop, Deputy Chairman of Hong Kong Electro-plating Merchants Association; 3. Mr. Lawrence Chan, Chairman of Hong Kong Electro-plating Merchants Association; 4. Mr. Leung Wun Cho, Permanent Honorable Chairman of Hong Kong Foundry Association; 5. Ir Dr. W.C. Keung, Deputy Director of China Foundry Association; 6. Mr. Chow Hoi Ping, Permanent Honorable Chairman of the Hong Kong Metals Manufacturers Association; 7. Ms. Ami Sin, Chairlady of Hong Kong 3D Printing Association; 8. Mr. Brian Yau, Senior Manager of New Business Development of Ka Shui Group)

Visit to Longhua New Energy Automobile and ride on electric motor bus (From the left: 1. Ms. Ami Sin, Chairlady of Hong Kong 3D Printing Association; 2. Mr. LEE Yuen Fat, Chairman of Ka Shui Group; 3. Mr. Herman Chow, Chairman of SAE Hong Kong)