Potential for Achieving Integrated Molding of the Chassis for B-segment Cars

HONG KONG SAR - Media OutReach Newswire - 15 December 2023 - L.K. Technology Holdings Limited (Stock Code: 558, hereafter "L.K. Technology" or the "Company") together with its subsidiaries (collectively, the "Group") is pleased to announce that, it held a "Signing Ceremony for Strategic Cooperation in Giga Press and Technology" in collaboration with Nezha Motors, a rising force in the automotive industry, where both parties reached a deep strategic cooperation on the joint development of 20000 tonnes of Giga Press and various businesses. The die casting unit to be developed through this collaboration will have the highest clamping force in the world, with the potential to expand integrated die casting applications to the entire car body chassis of B-class vehicles and larger-sized models, creating more possibilities for integrated manufacturing.

The "Signing Ceremony for Strategic Cooperation in Giga Press and Technology" was held today (15th) at the headquarters of Nezha Motors in Shanghai. Mr. Zhang Yong, Co-founder and CEO of Nezha Motors, and Mr. Liu Siong Song, Founder of the Group, delivered speeches at the ceremony. According to the cooperation agreement, Nezha Motors plans to purchase multiple sets of smart die casting equipment from the Group, which includes the joint development of the world's largest 20000-ton Giga Press. These purchases set multiple industry records in terms of procurement scale and clamping force, breaking records in both the automotive and die casting equipment industries. Additionally, both parties will engage in comprehensive and strategic cooperation in various business aspects, including the establishment of a die casting demonstration base and the formation of a die casting research institute.

The 20,000-ton Giga Press to be developed in this collaboration will be currently the largest clamping force die casting unit in the world. It features advanced casting technology and a higher clamping force mechanism. The integration capabilities will expand beyond the previous A0-C class and SUV models to include the chassis of B-class vehicles. This opens up more possibilities for the integrated manufacturing of technologically complex and larger automotive structural components. As a representative of the emerging force in the automotive industry, Nezha Motors covers the mainstream A0-B class market. It is expected that the 20,000-ton Giga Press will assist them in achieving greater die casting machine applications, including the chassis of B-class vehicles. This will help accelerate their adoption of integrated die casting technology and seize opportunities in the new energy vehicle market.

The successful signing of the 20,000-ton Giga Press represents a significant milestone in the entire die casting industry. This equipment is expected to surpass the previous maximum tonnage of die casting machines and propel the integrated die casting technology for large automotive structural components to new heights. The upgrade in clamping force from 16,000 tons to 20,000 tons demonstrates the Group's confidence in technological innovation and product development, as well as its potential to lead the automotive die casting components towards larger and more integrated solutions. Moreover, this strategic cooperation agreement with Nezha Motors, a new and powerful client for the company, will facilitate industry-wide exchange of technology and experience, promote the application of Giga Press in the field of new energy vehicles, and achieve mutual benefits and win-win outcomes.

As part of this strategic cooperation, in addition to joint development of the 20,000-ton Giga Press, both parties will also collaborate on establishing a die casting demonstration manufacturing base in Anhui Province. They will also establish a die casting research institute, aiming to create the world's largest integrated die casting research institution that combines production, academy, and research. The focus will be on nurturing high-level design talents in the field of die casting research and development, technology, and tooling, with the goal of benefiting the industry and society as a whole.

Mr. Liu Siong Song, the founder of L.K. Technology Holdings Limited, said, "We are delighted to see the successful strategic cooperation between our Group and Nezha Motors, and we look forward to further exploration with Nezha Motors in the future. Our die casting machine technology has always been at the forefront of the industry, and we are committed to leveraging our rich experience and market-driven approach to continuously iterate and optimize our products. In just four years, we have achieved the delivery and application of intelligent die casting units ranging from 6,000 tons to 16,000 tons. Our strong technical capabilities, which are constantly refined, have won the favor of customers and provide solid support for our abundant order backlog. This collaboration with Nezha Motors for the development of a groundbreaking Giga Press officially marks the industry's entry into the era of 20,000-ton clamping force. We will remain true to our initial aspirations and continue to promote the intelligent, lightweight, and green development of the new energy vehicle industry."

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About L.K. Technology Holdings Limited (Stock Code: 558.HK)

L.K. Technology Holdings Limited (the "Company") is one of the world's largest die-casting machine manufacturers. It is principally engaged in the design, manufacture and sale of three product lines, namely, die-casting machine, plastic injection moulding machine and computerised numerical controlled (CNC) machining centre. The products are widely used in automobile bodies and accessories, home appliances, accessories and electronic products. It has 12 manufacturing bases and R&D centres in Shenzhen, Zhongshan, Ningbo, Shanghai, Fuxin, Kunshan, Taiwan and Italy. L.K. Technology owns the world's top precision mechanical brand, Idra. It has developed the revolutionary Giga Press, a super large die casting equipment that offers "one-piece molding" die casting technology, which is used by the world's leading new energy vehicle companies. In October 2023, L.K. Technology released the world's first 16000T super large smart die casting machines.

About Nezha Motors

Ne Zha focuses on the mass market, and will launch a number of models of different classes at the pace of a new car each year, based on a well-crafted new pure EV exclusive platform covering A0-B class market. Currently, Ne Zha has launched certain models such as Ne Zha S, Ne GT, Ne U-Ⅱ and Ne Zha V. Ne Zha automobile's vision is to "make high-quality smart EVs reach." Adhering to the brand mission of "a paid-up dream man", the Group will take "car-making for the people" as the original intention and "science and technology flattening" as the brand value, focus on products and forward-looking technologies, promote the continuous evolution of EV, and lead the future development trend of science and technology.

Nezha Motors is a product brand under Zhejiang Hozon New Energy Automobile Co Ltd., with its global headquarters located in Putuo District, Shanghai. Nezha Motors focuses on the mass consumer market and has developed a dedicated platform for all-new electric vehicles. With the goal of launching a new model every year, Nezha Motors offers a range of vehicle models covering mainstream A0-B segments. Currently, Nezha Motors has introduced models such as Nezha S, Nezha GT, Nezha U-II, and Nezha V. The vision of Nezha Motors is to make high-quality intelligent electric vehicles accessible to the public. Guided by the brand mission of being a "trustworthy dream maker", Nezha Motors is driven by the commitment to "manufacturing cars for the people" and the brand values of "technology equity". They focus on product development and forward-looking technologies, driving continuous evolution in the electric vehicle industry and leading future technological trends.