KA SHUI INT'L (00822) announced that on March 17, 2026, the buyer, Ka Shui Metal Limited (an indirect wholly-owned subsidiary of the company), entered into an agreement with the seller, Jiaxian Zhongtuo Huixin Technology Co., Ltd. Pursuant to the agreement, the seller agreed to sell and the buyer agreed to acquire a 40% equity interest in the target company, Jiamai New Material Technology (Yulin) Co., Ltd., for a total cash consideration of RMB 14.3 million. Upon completion of the acquisition, the target company will become an indirect wholly-owned subsidiary of KA SHUI INT'L. The target company is currently an indirect non-wholly owned subsidiary of the company, with the buyer holding a 60% stake and the seller holding the remaining 40%.

The Board of Directors believes that obtaining full ownership post-acquisition will grant the group complete management autonomy, thereby accelerating decision-making processes. This move is expected to speed up the trial production and commercialization of a newly developed magnesium alloy by the target company, which features flame retardant, corrosion-resistant, and high thermal conductivity properties. The acquisition will also enable the target company to respond more effectively to the growing market demand for magnesium alloys. This demand growth is driven by the cost advantages of magnesium alloys over aluminum alloys, as well as a regulatory shift away from plastics.

Furthermore, the target company can leverage its existing die-casting production capacity, coupled with lower energy costs and competitive raw material costs in Northwest China, to provide customers with comprehensive magnesium alloy and die-casting solutions. In the long term, the company aims to expand its business operations to cover the entire Northwest China region.