The development experience of K. Wah Group

In the 1970s, Sir MacLehose became the Governor of Hong Kong. In order to improve the living environment of the people, he vigorously promoted urban planning. In addition, as the export of industrial products continues to rise, Hong Kong has gradually become a major free port in the world and has become one of the Four Asian Tigers. A series of infrastructure projects have been started in line with social development, further driving the rise in demand for building materials. At this time, the development of K. Wah Building Materials was maturing. Its Anderson Road Quarry had advanced technology and modern facilities at the time, providing high-quality stone for many government infrastructure projects and public housing estates, becoming a leading stone quarry in Hong Kong. Major supplier of products and concrete.

As the quality of life of Hong Kong people improves, the market space for high-end residential buildings continues to expand. Taking advantage of the situation, K. Wah focused on developing its real estate business. In 1974, it built Park Path, consisting of eight luxurious garden houses, in Bullet Path, Southern District, Hong Kong Island. The excellent location and luxurious decoration created the first of Hong Kong's early housing estate-style combined bungalows, and the sale price of one of the villas set a new high in the real estate market record at that time.

In the late 1970s, Hong Kong won the reputation as a shopping paradise, with more than 2 million tourists visiting Hong Kong every year. However, the development of the hotel industry was not perfect, especially the lack of high-quality world-class hotels. In view of this, Dr. Lui took the initiative to cooperate with the internationally renowned brand Holiday Inn. In 1979, he invested HK$68 million in Tsim Tsim East waterfront land and spent HK$300 million to build the Holiday Inn Harbor View Hotel (now the "Harbourview Jiafu Hotel"). In 1981, It opened in 2006 and introduced a franchise management system, becoming a famous five-star hotel. In the following decades, adhering to the "customer-oriented" service tenet, K. Wah cultivated a group of professional hotel management talents, which not only laid the foundation for the group's future development of hotel business in the United States and Macau entertainment and leisure business, but also laid the foundation for the development of Hong Kong's tourism industry. Contribute to long-term development. After entering the 1980s, Hong Kong's industries took off and the city dominated by industry transformed into a tourist city. In order to speed up urban construction, the government has launched a series of large-scale infrastructure projects, driving up the demand for building materials. Understanding the development needs of society, Dr. Lu visited Europe, the United States and Japan many times and actively developed new production technologies. In 1979, he introduced advanced ready-mixed concrete and canal tube manufacturing technology to improve productivity and safety standards and consolidate the core Building materials business. In 1983, K. Wah Concrete Co., Ltd. was established, marking the company's development into a vertically integrated building materials supplier, undertaking quarry mining, gravel production, washed sand production, asphalt production, concrete and full-line production of concrete precast components, serving the government Supply building materials products for large-scale infrastructure projects.

Backed by Hong Kong, an international financial center, K. Wah Stone Group Co., Ltd. (later renamed "K. Wah International Group Co., Ltd.") was listed on the main board in 1987 with a stock number of 0173 and was responsible for the group's Real estate and other investment businesses not only improve the company's management structure, increase the company's visibility, but also help attract outstanding talents to join the work.

During this period, K. Wah Group, based in Hong Kong, was also looking for potential investment opportunities at home and abroad. At a time when China's economy is opening up and urban construction in the mainland is developing rapidly, K. Wah is actively developing business northward and investing in building materials projects in Shenzhen, Guangzhou and East China. In addition to quarry business, it also includes concrete, cement products and pipes, etc., becoming a One of the first Hong Kong companies to invest in the mainland. In addition, the group has also expanded to North America. Based in San Francisco, Stanford Hospitality, Cresleigh Homes and Cresleigh Properties manage its hotel, residential and commercial real estate businesses in North America respectively. During the same period, the group entered the real estate market in Southeast Asia such as Singapore, Malaysia and Thailand. It first focused on investing in medium-sized residential and commercial projects, and later turned to the development of diversified real estate projects. Entering the 1990s, K. Wah Group actively entered the mainland real estate market. In line with national development policies, it participated in Guangzhou's first old city renovation project, transforming old buildings in Yuexiu District into a modern large-scale residential and commercial community - Jiahe Garden. It also became one of the first Hong Kong companies to enter the Shanghai real estate market, purchasing multiple pieces of land in the most prime locations and developing projects such as Gangtai Plaza and Jiali Garden. The Group has also established its position in the North American real estate market with its famous residential brands Cresleigh Homes and Cresleigh Properties, with projects in California, Arizona and Sacramento.

As for Hong Kong, K. Wah International Center was completed and opened in 1991 and became the Hong Kong headquarters of the group. With its prudent and flexible investment strategy, the Group was able to take the lead in applying to the government for land auctions after the 1997 financial crisis, and has successively invested in many high-quality land parcels, including Broadcasting Road in Kowloon Tong, Hartwick Road, Waterloo Road, Sham Tseng and Ma Anshan et al.

The group's building materials business has also become increasingly mature. K. Wah Building Materials Co., Ltd. (formerly known as "International Tube Industry Co., Ltd.") was listed in Hong Kong in 1991 (0027) and became a large-scale one-stop building materials manufacturer in Hong Kong. business, and actively expanded its business in Mainland China and Hong Kong, including the construction of the largest quarry in Guangzhou, the Huangpi Quarry, in 1993, and the signing of a 17-year "Anderson Road Quarry Mine Redevelopment Agreement" with the Hong Kong government in 1997. The Consolidation and Beautification Scheme Agreement will convert the quarry into a mixed-use development site.

In 1990, Stanford International Hotel Group was formally established and is mainly responsible for hotel development and management business in Hong Kong. The group's flagship hotel business in the United States, Stanford Hospitality, was ranked among the top 12 hotel owners and development groups in the United States in 1998, with impressive results. Entering the 21st century, the world has experienced turbulent years such as September 11, SARS, and the financial tsunami, and the business environment is full of variables. However, K. Wah Group has overcome many obstacles and achieved remarkable results despite adversity.

What the Group is particularly proud of is that it successfully obtained the Macau entertainment license in 2002 and expanded its business territory to Macau's large-scale comprehensive entertainment convention and exhibition industry. Combining decades of experience in operating environmentally friendly building materials, tourist hotels, and real estate, the group is ready to embrace this huge potential business opportunity in Asia.

In 2005, Galaxy Entertainment Group ("GEG"; stock code: 0027) was listed in Hong Kong and immediately received strong support from international strategic investor Permira. Over the past few years, GEG has developed rapidly in Macau and is on par with many international entertainment and leisure operators. In 2006, GEG’s first five-star flagship StarWorld Hotel Macau opened in Macau and won numerous international professional awards. At the same time, GEG invested more than 15.5 billion Hong Kong dollars, with a construction area of ??550,000 square meters. A large-scale integrated resort city with the purpose of "proud of the world and passionate about Asia" - "Galaxy Macau?" opened in May 2011. This is one of the Group's largest development projects in recent years, integrating entertainment, vacation, convention and exhibition, shopping, and food. It takes "Heart of Asia" as its business philosophy and introduces the award-winning Asia's top hotel and resort brand Macau. From Banyan Tree Macau and the internationally renowned Hotel Okura Macau to "Galaxy Macau", plus the much-anticipated five-star "Galaxy Hotel", it brings a unique new tourist destination to Macau. GEG, which has always been adhering to the "Heart of Asia" as its business philosophy, has become the most shining and impressive corporate brand under the K. Wah Group.

The group’s development momentum in mainland China is not far behind. In 2005, the group's new headquarters in Shanghai, the K. Wah Center located in a prime location on Huaihai Middle Road, was officially opened and became the general command center for the group to further explore the huge mainland market. Among them, the Group's multiple high-quality real estate projects in the Yangtze River Delta and building materials projects in North China, East China, South China and other regions have also been developed and implemented one by one under the effective implementation of localization strategies and resource sharing.

In the past ten years, Jiahua Building Materials has successfully transformed from a traditional vertical model building materials supplier into a one-stop comprehensive environmental protection value-added industry, and has cooperated with Beijing Shougang, Yunnan Kunming Iron and Steel, Anhui Maanshan Iron and Steel, and Nanjing Iron and Steel , Hubei Egang, Guangdong Shaogang and Guizhou Shuigang and other well-known steel companies have formed strategic partners to recycle water slag from steel plants and use new technology to refine slag powder into environmentally friendly products, which are provided to many large-scale infrastructure projects in the mainland.

The Group’s real estate flagship, K. Wah International Group, was repositioned in 2005. With decades of development experience in Hong Kong, it is committed to developing high-quality residential buildings, Grade A commercial buildings, specialty shops, hotels and There are more than ten projects of high-quality properties such as serviced apartments. Among them, the representative works are Chantilly in Mid-levels of Hong Kong Island and No. 9 Sham Wan in Southern District. They are rare super luxury houses and are very popular. Top luxury properties such as Huizhi Lake Garden in Shanghai, Jia Yuting on Jianguo West Road in Xuhui District, and Jiatian Hui at Yanjiazhai in Jing'an District all continue the K. Wah Group's development mission of "high quality". In addition, the group is also actively purchasing a number of high-quality land parcels in China and Hong Kong to add momentum to its long-term development.

Through the ups and downs, K. Wah Group has become a multinational enterprise with diversified businesses. Facing the future, the Group will actively implement the "Greater China Concept", base itself in Hong Kong, accelerate the pace of business in Asia, further leverage its comprehensive strength, and coordinate with the country's general direction of sustainable development.