In order to remain competitive in the global marketplace and to meet the ever evolving demands of customers, it is important for us to keep abreast of the latest industry technology trends and develop new products with distinctive designs. By 2009, we obtained approvals on over 40 patent registrations in the PRC for its products and production technologies to protect our proprietary rights.

In December 2003, L.K. (Shenzhen) earned the "Technology Centre of Shenzhen Enterprise" award which was jointly granted by the Economic and Trade Bureau, Finance Bureau, as well as the Local and National Tax Bureaus of the Shenzhen City. This achievement is fitting recognition of research and development abilities of L.K. (Shenzhen) and approval of our investment in research and development, and the quality of the research and development staff.

As of June 2009, the Group had over 200 engineers, technicians and staff in research and development departments, carrying out work for the Group's products and technologies. The critical components of die-casting or plastic injection moulding machines (including the injection system unit, the hydraulic control system unit and the electrical and electronic control systems unit) are all designed and developed internally by the Group.