Flowchart Investment Approval by vuk38131

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									   America’s Center for
Foreign Investment (ACFI )
           Presents

    Hybrid Kinetic Motors
      Alabama Project

                	


                	    	      	   	   	   	   	

	   	


           September 2010
                                                1
America’s Center for Foreign Investment
150 S. Los Robles Ave., Suite 860
Pasadena, CA 91101       USA: (888) 688-ACFI
Tel: (626) 683-9120      Fax: (626) 683-7393
Website: www.acfi-usa.com

Hybrid Kinetic Motors Corp.
800 E. Colorado Blvd., Suite 888
Pasadena, CA 91101
Tel: (626) 683-7330      Fax: (626) 683-0693
Website: www.hkmotors.com
                                                            TABLE OF CONTENTS




America’s Center for Foreign Investment
   I.    Overview .............................................................................................................................. 1

   II. Immigrant Investor Program ................................................................................................ 2

   III. Benefits of Having a Green Card .......................................................................................... 2

   IV. EB-5 Immigration Procedure Flowchart ............................................................................... 3

   V. ACFI Background .................................................................................................................. 4

   VI. ACFI Management................................................................................................................ 5

   VII. About Alabama .................................................................................................................... 7




HK Motors Alabama Project
   I.    Mission Statement ............................................................................................................... 8

   II. Project Summary .................................................................................................................. 8

   III. Management Team ............................................................................................................ 10

   IV. Products ............................................................................................................................. 14

   V. Technologies....................................................................................................................... 15

   VI. Marketing Strategies .......................................................................................................... 20

   VII. Alabama Project ................................................................................................................. 21

   VIII. Summary ............................................................................................................................ 27




APPENDIX
   I.    USCIS Approval of HK Motors Project A ............................................................................. 28

   II. Frequently Asked Questions .............................................................................................. 29

   III. Government Letters of Support ......................................................................................... 30

   IV. Progress Timeline............................................................................................................... 33
                                            I. OVERVIEW


The EB-5 is an Employment-Based 5th Preference visa which was created by the Immigration Act of 1990. It
provided for 10,000 immigrant visas per year to qualified individuals seeking permanent resident status on the
basis of their investment in a new commercial enterprise. Due to disappointing results with this original
immigrant investor program, in 1993, Congress enacted the Immigrant Investor Pilot Program, commonly
referred to as the “Regional Center Program.” A Regional Center is defined as an economic unit which is
involved with the promotion of economic growth, which includes improved regional productivity and job
creation.




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                          II. IMMIGRANT INVESTOR PROGRAM

Under Section 203(b)(5) of the Immigration and Nationality Act (INA), 8 USC §1153(b)(5), 10,000
immigrant visas are available annually to qualified individuals seeking permanent resident status on the basis
of their investment in a new commercial enterprise.

The Investor's investment in the new commercial enterprise must create at least 10 full time jobs for U.S.
Citizens, lawful permanent residents and other immigrants lawfully authorized to be employed in the United
States.

This new commercial enterprise can be located in a Regional Center. A Regional Center is an entity,
organization or agency that has been approved as such by the USCIS. It seeks to promote economic growth
and improved regional productivity. The Investor must demonstrate that the qualifying investment is being
made within an approved Regional Center.

The Investor must also show using accepted econometric models that 10 or more jobs are actually created
either directly or indirectly by the new commercial enterprise. Please note that ACFI will ensure that the
Investor will meet these conditions.

The investment must be $1,000,000 or at least $500,000 where the investment is being made in a “targeted
employment area” which is an area that has experienced high unemployment or a rural area as designated by
the Office of Management and Budget.

Permanent Resident status based upon EB-5 eligibility is available to investors, their spouses and unmarried
children under 21 years of age.




                       III. BENEFITS OF HAVING A GREEN CARD
Upon receipt of conditional permanent resident status, the investors and their families are entitled to the same
benefits as other lawful permanent residents (LPR). Some of these benefits include:

    –    Live and work anywhere in the U.S.
    –    Start any business in the U.S.
    –    Travel abroad and return to the U.S. without having to apply for an additional visa
    –    Study in the U.S. at resident cost, and legally work while enrolled as a student
    –    Establish eligibility for becoming a US citizen



                                                                                                          2
IV. EB-5 IMMIGRATION PROCEDURE FLOWCHART




                                           3
         V. AMERICA’S CENTER FOR FOREIGN INVESTMENT (ACFI)

On June 11, 2007, the Alabama Center for Foreign Investment (ACFI) was approved by United States
Citizenship and Immigration Services (USCIS) as Alabama’s statewide Regional Center. On October 21, 2009,
ACFI expanded its geographic region to include the state of Tennessee and portions of the states of Florida,
Georgia and Mississippi. Subsequent to this expansion, ACFI was renamed America’s Center for Foreign
Investment.

As such, ACFI participates in the EB-5 Immigrant Investor Pilot Program, providing foreign nationals the
opportunity to become permanent residents of the United States through a qualified investment. To ensure
compliance with immigration laws and for the safety of the investor, ACFI carefully identifies, evaluates and
selects investment projects which meet the Immigrant Investor requirements as specified by United States
Citizenship and Immigration Services (USCIS). ACFI’s management team has decades of experience in
immigration law, finance, economic development and governmental relations. This experience provides
investors with quality professional assistance during the entire process.

ACFI's premier investment opportunity is with Hybrid Kinetic Motors (HK Motors), an American car
company using cutting-edge technology to produce vehicles that are destined to set a new standard in the
automobile industry. HK Motors will produce a full line of high quality, affordable hybrid vehicles which are
energy efficient and environmentally friendly without sacrificing performance. HK Motors’ management team
has a strong background in the automotive industry and a proven track record of developing and
manufacturing motor vehicles.

On June 1, 2010, United States Citizenship and Immigration Services (USCIS) approved ACFI’s HK Motors
Proposal for the Immigrant Investor EB-5 Program. USCIS has determined that all HK Motors Agreements,
Memorandums and its Business Plan are in compliance with established EB-5 eligibility requirements. This
approval will facilitate the approval of all I-526 (Immigration Petition by Alien Entrepreneur) petitions
submitted by investors in the HK Motors Project A, LP. The investor petitioner will only have to provide
biographic information and show the source and path of funds to be invested.

Also in June, 2010, an HK Motors investor’s petition was successfully expedited by USCIS – approved only
two weeks after expedited processing was requested. This is an unprecedented achievement for an EB-5
Regional Center. Shortly thereafter, HK Motors filed Form D with the United States Securities and Exchange
Commission, ensuring full project compliance with US securities law.

America’s Center for Foreign Investment, LLC (ACFI) is committed to provide quality consulting services to
assist individuals in complying with all aspects of the Immigrant Investor Pilot Program, also known as the
EB-5 Visa Program. ACFI carefully identifies, evaluates, and selects qualified investment projects for
consideration by accredited investors. This selection process may include, but is not limited to, analysis
related to financial statements, business plans, pro forma, market analysis, econometric models and project
principals.

ACFI professionals will assist the investor with this entire process from start to finish ensuring that all aspects
of the program will be carried out as smoothly, effectively, and efficiently as possible. ACFI is committed to
assist the investor throughout the entire process, by providing personal, professional, and quality service.



                                                                                                             4
                                    VI. ACFI MANAGEMENT

                             James DeBates          President and CEO

                             America’s Center for Foreign Investment (ACFI) is directed by Mr. James
                             DeBates. Mr. DeBates has more than 30 years experience working for the
                             Federal Government. He was with the US Department of Justice – Immigration
                             and Naturalization Service for twenty-six years and spent four years with the
                             Department of Homeland Security – US Citizenship and Immigration Services.
                             More than twenty-six years were in management and supervision, focused on
                             granting the benefits of residency and citizenship.

                           Mr. DeBates held numerous high level positions with the government. In
                           Washington, D.C. he oversaw all US Immigration activities in Asia, Mexico, and
Central and South America. He was the Immigration Attaché at the American Consulate in Hong Kong where
he was US Immigration's chief representative in Hong Kong, People's Republic of China, Macau, Mongolia
and Taiwan. Mr. DeBates was also assigned to US Immigration offices in Los Angeles, San Diego, CA,
Anaheim, CA, Detroit, MI and St. Croix, United States Virgin Islands.

Among the varied duties and responsibilities of Mr. DeBates, such as participating in the drafting and revision
of regulations for the EB-5 Investor Visa, he also gave training on US Immigration law, visa issuance,
regulations, policies and procedures to US State Department officials in Washington, DC and at various US
Embassies and Consulates. Mr. DeBates gave similar presentations to foreign government officials and was
the designated US Immigration liaison person for these officials.

During his career with the US Department of Homeland Security and the Department of Justice, Mr. DeBates
was awarded 17 Outstanding Achievement Awards, received the Commissioner's Award for Excellence,
received an Outstanding Merit Award from the President of the US Olympic Organizing Committee, was
honored and awarded with Senator Ted Kennedy by the Los Angeles County Bar Association, and received
international recognition from numerous governments throughout Asia. Mr. DeBates was also a member of
the US Congressional Advisory Committee.

                            Ron Drinkard              Board Director, Vice President

                            Ron Drinkard is a lifelong resident of Alabama who graduated from Troy
                            University in Troy, Alabama, with a Bachelor of Science degree in accounting. He
                            is also a graduate of the Louisiana State University School of Banking in Baton
                            Rouge, Louisiana. Drinkard was Director of Area Development for the
                            Metropolitan Development Board of Birmingham, Alabama, before moving to an
                            industrial development position with the Alabama Development Office in
                            Montgomery.

                          From 1979 to 1985, Drinkard was Vice President for Industrial Development at
                          AmSouth Bank in Montgomery and from 1985 to 2005, he served as Senior Vice
President of SouthTrust Bank/Wachovia. Upon retirement from banking he started a governmental relations
business, The Ron Drinkard Group, LLC.


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Drinkard's background in banking, economic development and governmental relations is combined with his
dedicated community involvement and civic and charitable organizations throughout the state of Alabama.
Currently, he serves as a board director and Vice President for government and public relations for America’s
Center for Foreign Investment, LLC.



                            Boyd F. Campbell          Board Director, Vice President, General Counsel

                            Boyd Campbell was born in Germany and has practiced immigration and
                            nationality law in Montgomery, Alabama, since 1988. He is a graduate of
                            Montgomery public schools, the University of Alabama in Tuscaloosa, Alabama,
                            and Columbia University in New York, New York. He received his law degree
                            from Jones School of Law in Montgomery, Alabama, in 1987, and served as a law
                            clerk for the Alabama Supreme Court before opening his law practice.

                          Mr. Campbell has worked with individual foreign investors and multinational
                          corporations in order to meet their needs and assist them in complying with U.S.
                          immigration laws. He is a noted speaker on issues involving U.S. immigration law
and served on the American Bar Association's Coordinating Committee on Immigration Law from 1994 to
1998. He is a founding member of the International Law Section of the Alabama State Bar.

More recently, Mr. Campbell became Vice-Chair of the AILA Investor EB-5 Committee. Mr. Campbell has 19
years of experience in working with foreign nationals to address legal matters involving U.S. immigration
laws. Currently, he serves as a Board Director, Vice President, and General Counsel for America’s Center for
Foreign Investment, LLC.



                           Judson C. Edwards, Ph.D.          Economist

                           Dr. Judson C. Edwards is the Dean of the School of Business at Troy University. He
                           received a B.S. in Economics and Geography from Troy University and M.S. and
                           Ph.D. in International Development from The University of Southern Mississippi.

                           Before returning to his alma mater, Dr. Edwards served as tenure-track faculty at
                           The University of Southern Mississippi and the University of North Dakota. While
                           at Southern Miss, he directed the Economic Development Master’s Degree Program
                           and led numerous applied research projects for economic development
                           organizations and industry.

Dr. Edwards specializes in economic impact analysis, cost-benefit analysis, and retail trade studies. Currently,
he serves as the Managing Editor of Applied Research in Economic Development and Editor of the Troy
University Business and Economic Review. Dr. Edwards is a Board Member of The Council for Community
and Economic Research (C2ER) and member of the Special Advisory Committee to the Executive Council of
the Alabama Rural Action Commission.




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                                    VII. ABOUT ALABAMA



Alabama is one of the fastest growing states in the United States. According to the Alabama Development
Office (ADO), over $9 billion was invested in new or expanded foreign industry in Alabama between 2000 and
2006, which generated in excess of 36,000 jobs for Alabamians.

The state’s pro-business climate has attracted more than 300 foreign-based manufacturers from more than 30
nations to Alabama including Mercedes-Benz U.S. International, Honda Manufacturing of Alabama, Hyundai
Motor Manufacturing, Toyota Motor Manufacturing, Alabama, Inc., Siemens, Michelin, Eaton Corporation,
and Goodyear.

The State of Alabama has sixty-seven counties and a land area of 52,423 square miles. Alabama borders
Tennessee to the North; Georgia to the East; Florida to the South; and Mississippi to the West. The largest
metropolitan cities in Alabama are Birmingham, Montgomery, Mobile, and Huntsville.




         * Southern Auto Corridor map provided by the Economic Partnership of Alabama (EDPA).




                                                                                                      7
                       Hybrid Kinetic Motors Alabama Project

                                    I. MISSION STATEMENT
Hybrid Kinetic Motors (HK Motors) strives to become the world’s leading enterprise for developing,
manufacturing and marketing advanced technology vehicles with low emissions and high energy efficiency,
while providing customers worldwide with high quality, superior performance vehicles and services. The
company offers vehicles which will revolutionize the automotive industry, reduce greenhouse gas emissions,
lessen oil dependence, create green jobs, improve state and local economies, and strengthen US
competitiveness in green vehicle development, manufacturing, and marketing.



                                    II. PROJECT SUMMARY
The world economy is transitioning to a green economy for economic recovery after a severe economic
recession and automotive crisis. Two components of the green economy include using alternative energy
while improving energy efficiency and reducing greenhouse gas, especially carbon dioxide (CO2), emissions.
Green transportation is one of the leading industries in the green economy because it requires a large
investment, creates a large number of jobs, and has a significant impact on the economy, environment, and
society. Hybrid Kinetic Motors is at the forefront of the trend and positioned to succeed.

Hybrid Kinetic Motors is an American automobile company that designs, manufactures, and markets
advanced technology vehicles which are characterized by high fuel efficiency, low emissions, high
performance, and great affordability. HK Motors was incorporated in Delaware and is headquartered in
Pasadena, California. Hybrid Kinetic Motors Project A, LP is the first project company of Hybrid Kinetic
Motors.

HK Motors aims to become the world’s leading manufacturer of clean energy hybrid vehicles. Its ultimate
success will reshape the American automotive landscape, help the US regain its leadership role in the global
automotive industry and create a very large number of direct, indirect and induced jobs across the country. HK
Motors Alabama Operations – The Project A, LP – will be the world’s largest manufacturing complex with
annual production capacity of one million green vehicles. Full production capacity will be reached in 2018
after Phase 1 production (300,000 vehicles per year) starts in mid-2013 and Phase 2 (600,000vehicles per year)
in late-2016.

Through intensive studies of energy resources and distribution, crisis and continuously rising costs, HK
Motors believes that in the next several decades, only compressed natural gas (CNG) can replace gasoline as
the primary vehicle fuel in large quantity (30~40%) with relatively stable and affordable price (around $1-$2
per gas gallon equivalent). Conveniently, the world’s two largest automotive markets, US and China, also
both hold significant proven natural gas reserves. The oil shortage and high oil prices are pushing up the
demand for natural gas vehicles (NGVs). It is projected by the International Association of Natural Gas
Vehicles (IANGV) that there will be 65 million NGVs in the year 2020, when NGVs will account for 9% of
the world vehicle market. Currently, there are approximately 7 million retrofit NGVs in the world, and
130,000 NGVs, primarily buses, in the US. The United States is at the turning point for the rapid growth of
NGV market that will provide a lifetime opportunity for HK Motors. By developing unique hybrid vehicles,
HK Motors will be at the forefront of this transition.


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HK Motors’ unique multi-fuel engine and electric-drive hybrid power train technologies will utilize these
natural gas reserves to provide a highly competitive, environmentally friendly alternative to gasoline.
Technical simulations indicate that HK Motors’ engines not only easily outperform today’s leading
automakers in terms of fuel economy and CO2 emissions but also meet the most stringent international
standards, including the 2016 Corporate Average Fuel Economy (CAFÉ) standards mandated by the US
Government (35.5 miles per gallon), the 2012 European Community CO2 emission standards (120 grams per
kilometer) and 2015 EPA CO2 regulations (155 g/km).

HK Motors’ strategy of adopting a single engine platform combined with several advanced power boosting
technologies will allow HK to offer cutting-edge, high-performance engine systems at costs comparable to
current gasoline engines of twice the size. This is the key to HK Motors’ overall cost advantage and technical
advantages in high fuel economy and low emissions.

HK Motors’ primary operations will be based in the state of Alabama, along the Southern Auto Corridor
where Mercedes Benz, Honda, Toyota, and Hyundai have operations, and in a state that has a great workforce
with strong work ethics and good skills. The targeted production capacity is 1,000,000 vehicles per year, with
full product lines of three vehicle groups, including:
           – Passenger Cars Group: entry-level midsize, full size, luxury cars;
           – SUV/VAN Group: SUV (Sport Utility Vehicle), CUV (Crossover Utility Vehicle), Van
                (mini-van and large vans);
           – Truck Group: pickup trucks, light-duty trucks.

According to the current plan, production will begin in 2013 if all project financing benchmarks are reached. It is
expected that full production of one million vehicles will be accomplished by 2018. Once full production is
reached, the estimated revenues and profits are $35 billion and $2.8 billion per annum respectively, with an
average net profit margin of 8%. HK Motors aims to be the first company in the world completely dedicated to
the mass production of multi-fuel (natural gas and gasoline) electric-drive hybrid vehicles.

Highlights of Investment Advantages:

    •   Unique opportunity for immigrant investors to become US permanent residents and invest in
        America’s future
    •   Innovative financing: EB-5 program backed by a public company, allowing investors a profitable exit
        after a five year investment in the project
    •   Leading the global automotive industry trend towards fuel efficient, environmentally friendly vehicles
    •   Strong management experience in both the automotive industry and financial markets
    •   Proprietary technology for a super engine and power train with excellent fuel economy and low
        emissions, plus proprietary technology for next generation engines (nano-engines) beginning in 2020
    •   Excellent strategy to reduce manufacturing costs, making advanced technology vehicles affordable to
        all customers
    •   Innovative marketing: free natural gas for the first 50,000 miles
    •   Significant state and county incentive packages for the project
    •   Federal tax credits for alternative fuels, fuel efficiency and low emission vehicles
    •   “American Power Act” introduced on May 12, 2010 and “The NAT GAS ACT” introduced on June 8,
        2009, by both the Senate and US House of Representatives which will provide for federal subsidies,
        credits, and tax breaks for developing, manufacturing, and purchasing natural gas vehicles (up to
        $12,500 for light-duty vehicles)


                                                                                                             9
                                   III. MANAGEMENT TEAM



HK Motors management team consists of a group of experienced global financial experts and auto makers.
This team has learned from experience that the business of developing and building automobiles is complex
and expensive, but the team has “done it before.” HK Motors executives have an excellent track record and
will strive to win again in green transportation.




                             Dr. Yung Yeung                   Chairman and Founder

                             Dr. Yung “Benjamin” Yeung, Chairman of Hybrid Kinetic Motors Corp. and
                             Hybrid Kinetic Group Limited (formerly Far East Golden Resources Limited), is
                             a well-known, highly successful automotive industrialist and pioneering
                             international financier from China. Dr. Yeung led Brilliance China Automotive
                             Holdings Ltd (“Brilliance China”) to its listing on New York Stock Exchange on
                             October 9,1992. By 2001, Brilliance China ranked first in China in margins and
                             return on equity and third largest in after-tax profits in the Chinese automotive
                             industry. Under Dr. Yeung’s leadership, Brilliance China developed the
                             “Zhonghua” sedan, the first Chinese indigenous car with its own intellectual
                             property. By the time Dr. Yeung moved to the USA in 2002, Brilliance China
had established joint ventures with General Motors for SUV production, BMW for luxury car production,
Mitsubishi for engine manufacturing, Renault for economy sedan manufacturing and licensing arrangement,
and Toyota for minibus manufacturing. Brilliance China also forged a strategic alliance with the United
Kingdom MG Rover Group. Dr. Yeung was ranked by Forbes Magazine as the third richest entrepreneur in
China in 2003, and founded Hybrid Kinetic Motors Corp. in 2008.




                            Dr. Chunhua Huang                Vice Chairman

                             Dr. Chunhua “Charles” Huang is the Vice Chairman of Hybrid Kinetic Motors
                             Corp. He started his investment banking career as a China equity analyst at James
                             Capel (Asia) (now HSBC Securities) in Hong Kong covering China’s B shares, H
                             shares and red chips in 1994. He was a senior member of the top-ranked China
                             research team of Credit Lyonnais Securities Asia (CLSA) between 1996 and 2000.
                             Dr. Huang joined Brilliance China to serve as Chief Financial Officer of Far East
                             Golden Resources between August 2000 and May 2004 and as Deputy Chairman
                             between November 2002 and August 2007. In May 2007 Dr. Huang returned to
                             the brokerage industry to join BNP Paribas as Director of China Equity Research
                             and a China Equity Strategist. After two extremely successful years at BNP
Paribas, Dr. Huang left the investment banking industry in April 2009 to rejoin Dr. Yeung’s business group.




                                                                                                       10
                            Dr. Chuantao Wang                 Chief Executive Officer, Board Member

                           Dr. Chuantao Wang is the Chief Executive Officer of Hybrid Kinetic Motors Corp.
                           With more than 29 years’ experience in the field of manufacturing engineering, Dr.
                           Wang is an internationally recognized technologist and business leader in the
                           development and implementation of advanced automotive body manufacturing
                           using computer-aided engineering technology and production systems for digital
                           die manufacturing and stamping for automotive applications. Before joining HK
                           Motors, Dr. Wang was the Chief Die Engineer and GM Technical Fellow in the
                           Global Die-Stamping-Manufacturing Engineering Technology Center at General
                           Motors Corp., responsible for development and application of digital engineering
                           technology in large scale automotive manufacturing. Dr. Wang has received
numerous international awards in recognition of his sustained, distinguished achievements and contributions
for automotive applications. Among these, he received national honor as the “2008 Asian American Engineer
of the Year.”

                            Dr. Shuguang Hong                 Chief Information Officer, Board Member

                          Dr. Shuguang Hong is the Chief Information Officer of HK Motors. He is a
                          seasoned information technology professional with both academic and industry
                          experience reflecting solid technology fundamentals, entrepreneurship, strong
                          leadership qualifications and “hands-on” technical expertise. Before joining HK
                          Motors, he was an executive director of the Information Technology Department
                          at China International Capital Corporation. Prior to that, he served as a director of
                          application development and a chief architect at Automatic Data Processing (ADP)
                          and was a co-founder of AtWork Technologies. Prior to joining the private sector,
                          Dr. Hong was a professor in the Computer Information Systems Department at
Georgia State University. He has published more than 25 articles in scholarly journals and international
conference proceedings and presented research results at more than 10 international conferences.

                            Peter Schippl                     Senior Vice President, Board Member

                              Peter Schippl serves as the Senior Vice President for Vehicle Manufacturing for
                              Hybrid Kinetic Motors Corp. After studying Mechanical Engineering, he started
                              his career in 1972 at FAG Kugelfischer as a specialist in grinding technology. In
                              1977 he joined the BMW Group and became responsible for engine production
                              technology. Afterwards he held positions in engine production, motorcycle
                              production, quality management, launch management, and plant management. His
                              international experience includes responsibilities in the USA, India, South Africa,
                              England, and China. After serving as Managing Director at BMW’s Rover Oxford
                              plant in England, he moved to China to lead a team supporting Brilliance’s launch
                              of their first Zhonghua sedan. He then was responsible for planning, establishing,
and running the BMW-Brilliance joint venture plant in Shenyang. Under his management, the Shenyang plant
manufactured BMW 3 and 5 series, reaching the highest level of quality within the first year of production. After
Peter Schippl fulfilled his contract with the BMW Group, he started a new career as Senior Consultant for
Brilliance Jinbei, the joint venture partner of BMW. He joined HK Motors in August 2010.



                                                                                                          11
                            Larry Achram                Senior Vice President, Board Member

                          Larry Achram is a Product Development expert with over 35 years of global
                          automotive experience. Before joining HK Motors as Senior Vice President for
                          Product Development, Larry held several key senior executive positions at
                          Chrysler, including Vice President of Advanced Vehicle Engineering and Vice
                          President of the Large Car Platform Team. He led the design and development of
                          many vehicles in all phases from concept to production, including such well
                          known products as the first Jeep Grand Cherokee, the Chrysler 300 and its sibling
                          vehicles, and the Chrysler Crossfire. Over the last several years, he has also
                          worked on business development projects in the US and Asia with a special
                          emphasis on Chinese automobiles, and was one of the co-leaders of the team that
achieved a long term partnership agreement for Chrysler with a major Chinese automotive company. Larry
holds BSME and MSME degrees from Wayne State University and an MBA from Michigan State University.

                            Richard Chow-Wah            Senior Vice President, Board Member

                            Richard Chow-Wah serves as HK Motors Senior Vice President for Power Train
                            Manufacturing. Before joining HK Motors, he was Vice President of Power Train
                            Manufacturing for Chrysler since January 2002 and has been responsible for
                            engine, transmission, and axle production. He served on the Board of Directors at
                            GEMA, a joint venture between Chrysler, Hyundai and Mitsubishi to design and
                            produce engines in their respective countries (United Stated, Korea and Japan),
                            and also served on the Board of Directors at Tritec, a joint venture between
                            Chrysler and BMW to produce engines in Brazil. Prior to this position, he was
                            Vice President of Power Train in Chrysler’s Engine/Foundry/Axle Division. He
                            joined Chrysler in 1994 as Operations Manager at Huntsville Electronics. Prior to
Chrysler he was employed with the Ford Motor Company Electronics Division in 1983, United Technologies’
Carrier Air Conditioning in 1981, and General Electric Canada in 1980.

                            Dr. Gang Lin                         Senior Vice President, Board Member

                            Dr. Gang Lin currently serves as Senior Vice President for Corporate
                            Management for HK Motors Corp. Dr. Lin started his career in automotive
                            engineering and manufacturing. In July 1996, he joined General Motors and
                            served in various positions, including Senior Engineer, Senior Analyst, and Senior
                            Manufacturing Engineer. As a core team member of GM’s advanced tooling
                            technology, Dr. Lin played an important role in GM’s historical transition from
                            traditional tool making to science-based technology, and made many critical
                            contributions. Dr. Lin left GM in April 2004, and returned to Chongqing, China,
                            where he established an engineering company, Digidie System International
                            (Chongqing) Inc (DSI). In March 2006, Dr. Lin became a board director, Deputy
General Manager and Chief Engineer for a joint venture between DSI and two partner companies and gained
extensive experience in manufacturing and management. Through his many years in the US and Chinese
automotive industries, Dr. Lin has built broad knowledge in automotive body engineering and manufacturing,
and acquired extensive experience in business development and management.



                                                                                                       12
                           Dr. Wei Wang                     Senior Vice President, Board Member

                            Dr. Wang currently serves as Vice President for Marketing, Sales, and Services.
                            Prior to joining Hybrid Kinetic Motors, he served as Chief Representative in
                            SeverStal Overseas Ltd.’s Beijing Representative Office and as General Manager
                            for Strategic Raw Materials Development in SeverStal North America, Inc. Dr.
                            Wang started his career in iron and steel research and development in 1994 at
                            Inland Steel Company (now part of Arcelor-Mittal Steel), and assumed
                            management responsibility for product development and application in 1999 at
                            Rouge Steel Company (now part of SeverStal North America, Inc.). In 2004, he
                            started to undertake commercial responsibilities for overseas strategic raw
                            materials development and supply. Over the past 15 years, Dr. Wang has
accumulated extensive knowledge in engineering, engineering management, purchasing, global logistics,
international trade, and new supplier development. Dr. Wang received his MBA from the University of
Michigan with high distinction, his doctorate and masters in Materials Science and Engineering from Ohio
State University, and his undergraduate degree from the University of Science and Technology in Beijing.

                            Dr. Junwen Hou                   Senior Vice President, Board Member

                            Dr. Junwen Hou has served as Senior Vice President for Global Power Train
                            Development since joining HK Motors Corp. in April, 2009. Prior to joining
                            HKMC, Dr. Hou was a specialist in power train product engineering at Chrysler.
                            During his fifteen-year tenure at Chrysler he had held various engineering and
                            management positions with increasing responsibilities. He served as project
                            manager responsible for engine and transmission sales to outside OEMs
                            worldwide and business development. He led the corporate hypoid gear design
                            and development for all axle programs as a gear development manager. He led
                            and was involved in several new automatic transmission program launches in the
                            capacities of manufacturing specialist and advanced manufacturing engineering
manager.

                            Jason Xu                         Vice President, Board Member
                            Jason Xu currently serves as HK Motors Vice-President for Global Sourcing. He
                            has 20 years’ experience in mechanical engineering and the automotive industry.
                            Before joining HK Motors, Mr. Xu worked for Magna International Group to start
                            his career in the automotive industry. He has extensive experience in product
                            development, engineering management, product planning, purchasing and
                            supplier management. Mr. Xu was involved in multiple projects for Asian and
                            European automakers such as Nissan, Honda and Volkswagen. In 2008, Mr. Xu
                            was assigned to Magna Closures (Kunshan) Automotive Corporation as
                            engineering manager to establish its technical center in China. Mr. Xu has an
                            in-depth understanding of the global automotive industry, particularly the Chinese
                            automotive industry. From 1991 to 1999, Mr. Xu also worked for Structural
Dynamics Research Corporation (SDRC) China Branch as a Computer Aided Design and Engineering
Specialist, and served as the Regional Manager. He was one of the key experts who developed the Chinese
computer aided engineering industry in the 1990s.



                                                                                                       13
                                            IV. PRODUCTS
HK Motors is committed to producing green cars with great fuel economy that remain affordable to
mainstream consumers. The company’s advanced technology vehicles will target customers that are energy
and ecology conscious. To attract new customers, the company intends to offer them hybrid vehicles with
energy efficiency, low emissions, strong consumer appeal, riding comfort, driving performance, and
affordability. HK Motors products are characterized by:

         •    Unique multi-fuel electric-drive hybrid propulsion systems that enable energy-on-demand
              driving modes, i.e. consumers can select driving mode by the availability and cost of the fuels in
              different regions of the world (countries and local areas)
         •    High fuel economy: Minimum 80 MPGGE (Miles per Gasoline Gallon Equivalent) in hybrid
              driving mode, and minimum 45MPG using pure gasoline. HK Motors advanced technology
              vehicles consumes 60% less fuel than vehicles with the same horsepower
          •    Low CO2 emissions (60g/km) that meet and exceed the most stringent international standards
               (2012 EC 120g/km standard and 2015 US EPA 155 g/km)
         •     Full vehicle lineups: Car , CUV, SUV, Truck, and Van
         •     One common engine platform: large volume production to lower vehicle cost
         •     Integrated power boosting and hybrid technologies: max. power output up to 400 horsepower
         •     Superior driving performance: 6 second acceleration from 0 to 60 mph (100km/hour)
         •     Riding comfort: mid-size, full size, luxury vehicles
         •     Safety: Satisfies Euro NCAP and US NCAP five star safety requirements

         Comparison of HK Motors vehicle (E-class J2) with BENZ, BMW, AUDI and LEXUS




To meet the demands of various customer bases, HK Motors plans to provide a full product line of three
vehicle groups: passenger cars, SUVs & vans, and light trucks. To further meet consumer demand, a number
of models will be provided in each group. To a large extent, different models will share common parts, which
will help to cut down production costs and make operations more flexible.


                                                                                                         14
                                            V. TECHNOLOGIES

Primary Fuel Choice – Natural Gas

After extensive research, it has been found that Natural Gas (“NG”) is the best and most available substitute
for oil as an alternative energy source to power next-generation vehicles. Natural gas is the world’s second
most common and cleanest fossil fuel source. Natural gas is abundant, clean, cheap, and energy-efficient.
Worldwide proven natural gas reserves will last 200 years at the current vehicle market growth rate. The US is
the world’s second largest NG producer. Proven domestic NG reserves as estimated in 2008 can power US
houses and vehicles for 118 years (per American Clean Energy Foundation).

A major discovery was made in May 2009 at the Marcellus gas formation in Appalachia, which is situated
more than a mile underground and stretches southwest from New York, through Pennsylvania, and into West
Virginia. It is estimated that the Marcellus formation, 5,000 square miles in area, may contain up to 1,300
trillion cubic feet of natural gas. This site alone can provide 60 years worth of NG supply for the nation.

                                     U.S. Total Gas Supply Resource Base




                                          Source: American Clean Energy Foundation


The price of natural gas is a fraction of the crude oil price. Crude oil is 6 (when oil price is low) to 25 (when
oil price is high) times more expensive than NG (per DOE/EIA Feb. 2009 projections). The chart of fuel price
for vehicles shows a much lower and more stable price for natural gas. This is one of the major financial
benefits of driving NG vehicles.

                                 Gasoline and natural gas Price comparison




                           Source: “International Energy Outlook 2009”, EIA/US Department of Energy



                                                                                                          15
Another advantage of using natural gas as an alternative fuel is the life cycle energy efficiency. Natural gas is
the only fossil-based fuel that can be directly used to power a vehicle without costly processing as used in
gasoline production. The following charts compare the total energy use and efficiency among different fuel
and energy sources. Natural gas vehicles (NGV) use the least energy per driving unit of distance and have the
highest efficiency among all fuel and energy sources.

           NGV Competitiveness – Most Energy Efficient among All Alternative Fuel Choices




               Source: The Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) Model 1.8b


Finally, natural gas is one of the cleanest burning alternative fuels and has less carbon than any other fossil
fuel, thus producing lower CO2 emissions. Compared to a gasoline engine of the same capacity, a CNG engine
can reduce CO2 emissions by 30 ~ 40% , carbon monoxide (CO) by 70-90%, nitrogen oxides (NOx) by 87%,
non-methane organic gas (NMOG) by 87%, hydrocarbon by 50%, volatile organic compounds (VOC) by 10%,
and emitted particulate matter (PM) by 80%.

The HK Motors plan to develop, manufacture and market hybrid vehicles with natural gas as the primary fuel
will support energy independence and national security, reduce greenhouse gases and emissions, and improve
fuel efficiency. The world NGV market is rapidly developing and has reached a turning point. It is projected
by IANGV (International Association of Natural Gas Vehicles) that there will be 65 million NGVs in the year
2020, when NGVs will account for 9% of the world vehicle market. Currently, there are around 7 million
retrofit NGVs in the world, and 130,000 NGVs, primarily buses, in the US. By developing unique hybrid
vehicles, HK Motors will be at the forefront of this new endeavor to produce clean, efficient, and affordable
natural gas vehicles.




                                  Source: IANGV (International Association of Natural Gas Vehicles)


                                                                                                                        16
Multi-fuel Electric Drive Hybrid Propulsion Technology

In HK Motors vehicles, the combustion engine will support multiple fuels, including CNG (Compressed
Natural Gas), gasoline, and other hydro-carbon fuels. The primary power will be CNG, which can carry the
vehicle for an extended range. Considering the density of CNG stations and charging stations is not as high as
that of gasoline stations in the U.S., each vehicle will also be equipped with a 5-gallon reserve gasoline tank
which will help drivers find a CNG station after the CNG has been completely consumed. Both fuels will
share the same combustion engine.

In addition, each vehicle will be powered with a battery-electric motor. The battery can be recharged via a
normal wall outlet. Discounted electric utility rates in the late evening in many locations will provide
incentives to car owners to conduct overnight recharging. It will be a win-win situation for car owners, electric
utilities companies, and society. With certain configurations, a fully-charged battery alone can achieve a
driving range sufficient for the typical daily commuter in North America.

Moreover, the combustion engine will feature many energy-efficient optimization technologies, such as
Weight Reduction, Start/Stop-System, Aerodynamic Improvement, and Heat Storage. These advanced
technologies, together with alternative fuels, will enable the vehicle to achieve greater energy-efficiency by
increasing the thermal utilization rate. Combined with CNG and electric power, the vehicle can reach an
impressive fuel economy that is significantly higher than the average fuel economy in today’s market.
Moreover, since it uses multiple energy sources - CNG, battery, and gasoline - the vehicle will have a long
driving range, approximately 600 miles for a full tank of CNG with a fully charged battery and full tank of
gasoline.

                                 HK Motors Advanced Power Train System




High Performance Driving Technology

In addition to the high energy efficiency of the vehicles, unlike most original equipment manufacturers
(OEMs) that focus on downsizing both engine power and vehicle dimensions to improve limited fuel economy,
HK Motors’ vehicles maintain ride comfort without downsizing vehicle dimensions, and improve driving
performance using a combination of advanced boosting and hybrid technologies to improve power output to
400HP through a specially developed 1.5 liter engine. These boosting technologies include variable
compression ratios (VCR), dynamic variable valve timing (DVVT), variable valve lifting (VVL), twin turbo
charge (TTC), and spark ignition direct injection (SIDI).


                                                                                                          17
Low Emission Technology

Another important objective that the company aims to achieve is emission reduction. HK Motors believes that
increasingly lower emission standards provide a great opportunity for growth and innovation. The specially
developed 1.5 liter CNG engine emits much less CO2 and other pollutants than benchmark gasoline vehicles
with the same horsepower. The vehicles will engage battery-electric power at ignition, which can eliminate
emissions entirely. In other words, the car will be a ZEV (Zero Emission Vehicle) in electric-driving mode.
This will be a significant improvement to emission control, since starting a vehicle disproportionally generates
a large amount of CO2. Furthermore, vehicle optimization features, such as Start/Stop System and Reduced
Weight, will achieve additional emission reduction. The second-generation full battery-electric cars will be
ZEVs (Zero Emission Vehicle), with no emissions from driving.

Summary of HK Motors Advanced Technology Vehicles

HK Motors advanced technology vehicles are developed by the finest engineering resources in the world.
These vehicles satisfy EU and US requirements on safety, emission, fuel economy, and recycling. The
characteristics of the vehicles include:

         •   Unique multi-fuel electric-drive hybrid propulsion systems that enable energy-on-demand
             driving modes, i.e. consumers can select driving mode by the availability and cost of the fuels in
             different regions of the world (countries and local areas)
         •   High fuel economy: Minimum 80 MPGGE (Miles per Gasoline Gallon Equivalent) in hybrid
             driving mode, and minimum 45MPG using pure gasoline. HK Motors advanced technology
             vehicles consumes 60% less fuel than vehicles with the same horsepower
         •   Low CO2 emissions (60g/km) that meet and exceed the most stringent international standards
             (2012 EC 120g/km standard and 2015 US EPA 155 g/km)
         •   Full vehicle lineups: Car, CUV, SUV, Truck, and Van
         •   One common engine platform: large volume production to lower vehicle cost
         •   Integrated power boosting and hybrid technologies: max. power output up to 400 horsepower
         •   Superior driving performance: 6 second acceleration from 0 to 60 mph (100km/hr)
         •   Riding comfort: mid-size, full size, luxury vehicles
         •   Safety: Satisfies Euro NCAP and US NCAP five star safety requirements


                                HK Motors Advanced Vehicle Body Systems




                                                                                                         18
Specific advanced technologies (including trademarks and patents)



    •   Advanced power train technologies
           o Variable Compression Ratio (VCR)
           o Dynamic Variable Valve Timing (DVVT)
           o Variable Valve Lift (VVL)
           o Twin Turbo
           o Turbo Charged Direct Injection (TCDI) for Gasoline and CNG
           o Piezo injectors for gasoline and solenoid injectors for CNG
           o Integrated Exhaust System
           o Controlled Auto Ignition (CAI)
           o 8 Speed Hybrid Automated Manual Transmission (8H-AMT)
           o New Concept for Hybrid System



    •   Advanced chassis technologies
           o Steering system of all versions in vehicle family of HK Motors will adopt electric power
              system by wire
           o Electric braking system will be introduced into the chassis for all versions of HK Motors’s
              vehicles
           o HK Motors Electric active suspension system
           o CVJ (Constant Velocity Joints) in front axle
           o Auxiliary frame (for mounting engine) will adopt integral construction using high intensity
              magnesium light alloy



    •   Advanced body technologies
           o Lightweight multi-material body design using advanced high strength steels, ultra-high
              strength steels, aluminum, magnesium alloys as well as fiberglass reinforced panels (FRP) to
              reduce the total vehicle weight by 25%
           o Sheet material optimization to reduce scraps by 20%
           o Satisfy Euro NCAP, US NCAP and VCD Auto-Umwelt List (Germany) five star
              requirements
           o Superior comfort and noise, vibration and harshness (NVH) performance
           o Vehicle models can be produced in modular production lines



    •   Advanced vehicle manufacturing technologies
           o Lightweight body manufacturing
           o Hot stamping for ultra-high strength steel structures
           o Advanced tube and sheet hydroforming
           o High pressure forming of Aluminum-Magnesium panels
           o Laser blazing and welding
           o EcoDryScrubber green solution to reduce painting energy usage by 60% and reduce
              pollution
           o Offal usage to improve material utilization


                                                                                                    19
                                                   VI. MARKETING STRATEGIES
HK Motors will fully utilize its technological strength and product advantages to market advanced technology
vehicles by heavily promoting high energy efficiency, low emissions, high performance, ride comfort,
affordable prices, and low driving costs. Favorable marketing advantages include:
 • Advanced technology vehicles with ride comfort, driving excitement and fuel economy, that are
   environmentally friendly
 • Government policies and regulations in HK Motors’ favor
 • Consumers that are more educated and environment conscious
 • Economic driving: affordable purchasing after all government rebates and incentives, and superior savings
   in driving cost
 • Most importantly, HK Motors offers free natural gas for 50,000 miles or 4 years, whichever comes first

The Department of Energy projects that oil prices will continue to climb towards $110/barrel or higher in
2015, and $130/barrel or higher in 2030. That correlates to a gasoline price of $3.5-$4.5/gallon, while the
CNG price will remain around $1.5-$2/gge (gasoline gallon equivalent). Government incentives, tax credits,
and rebates also exist for fuel efficient, low emission vehicles. HK Motors will deploy marketing strategies
that focus first on the following primary states:
                                                        • States that are major natural gas producers, allowing
                                                          for NG consumption at a lower cost. Experts now
                                                          believe that the recently discovered Marcellus
                                                          formation - situated more than one mile
                                                          underground and stretching southwest from New
                                                          York, through Pennsylvania, and into West Virginia
                                                          - may contain up to 1,300 trillion cubic feet of
                                                          natural gas. This site alone can provide 60 years
                                                          worth of NG supply for the nation. This will make
                                                          the states of Pennsylvania, New York, and West
                                                          Virginia the nation’s premier natural gas production
            Sources: EIA; Natural Gas Monthly
                                                          league.

                                                                                       State incentives and laws for Fuel Efficient and
                                                                                                    Low Emission Vehicles
   • States that are more environment-conscious and
   have the most incentives and laws, such as
   California, New York, Texas, and large
   metropolitan areas.


       2007 Residential Price of Natural Gas
Average price = $13 per thousand cf or $1.58/GGE   (GGE: Gasoline Gallon Equivalent)
                                                         1 GGE = 121.5 cf



                                                                                                        Source: HK Motors




                                                                                       •   States that have low NG consumer prices.


                              Source: EIA


                                                                                                                                      20
                                              VII. ALABAMA PROJECT

HK Motors Alabama Operations is the company’s first US project for large volume production of advanced
technology vehicles that use natural gas as alternative fuels and have high energy efficiency and low
emissions. The highlights of the Project are summarized as follows:
    • Three phases in capacity building: Phase One for 300,000 vehicles by 2013, Phase Two for 600,000
        units by 2016, and Phase Three for 1,000,000 units by 2018
    • Production schedule: start of production in 2013, full capacity by 2018
    • Employees: 5890 direct employees in Phase One; 18,688 direct employees at full capacity by 2018
    • Total (direct, indirect and induced) employees: 157,243 at full capacity
    • Maximum immigrant investors: 15,724 between 2010 and 2014
    • Maximum proceeds (net of issuer expenses): USD$7.862 billion
    • Use of proceeds: development of engine and power train system, development of vehicles,
        construction of plant, purchasing and installing vehicle manufacturing and assembly lines and
        equipment, working capital, contingency expenses

    1. Joint Announcement

On Sept. 24, 2009, HK Motors and the State of Alabama had a joint press conference to formally announce
the HK Motors Alabama Project.

      HK Motors and State of Alabama Joint                            Governor Riley and Chairman Yeung unveil HK
      Announcement of HK Motors Project                                 Motors Alabama Manufacturing Complex




 (L-to-R: Alabama Governor Bob Riley, HK Motors Chairman Benjamin

 Yeung, HK Vice Chairman Charles Huang, AL Lieutenant Governor Jim

Folsom, AL Speaker of the House Seth Hammett, HK CEO Chuantao Wang)



In his speech, Dr. Chuantao Wang, CEO of HK Motors, stated “HK Motors aims to be the first large-scale
manufacturer of energy-efficient and environmentally-friendly vehicles, which will reshape US automotive
landscape and help revitalize the American automotive industry while protecting the environment and
stimulating the local and national economy.” Utilizing a unique hybrid engine that employs compressed
natural gas (CNG), electricity, and gasoline, the company’s three-in-one hybrid vehicles will provide
unprecedented efficiency at affordable prices to consumers, while bringing thousands of


                                                                                                            21
environmentally-friendly new jobs to American workers. “Our cutting-edge multi-fuel hybrid power train
system delivers excellent performance while reducing CO2 emissions to exceed Euro-2012 and future EPA
guidelines,” said Chairman Yeung.

In his speech, Governor Riley pointed out that “It didn’t take long for Alabama to become a leader in the
automotive industry. Now as America and the world begin making a historic transition to a green economy, we
look to make Alabama a leader in the production of next-generation, clean-tech automobiles.” He further
emphasized that “our Alabama team, in cooperation with local officials in Baldwin County, has been working
with HK Motors for several months on this project. We will continue to work with them as the company puts
the financing in place to move forward.”

Under the leadership of Chairman Yeung and an executive board with many years of combined automotive
experience, HK Motors has chosen some of the world’s most renowned automotive companies to serve as its
partners in this endeavor. Senior leaders from these suppliers were also present at the press conference.

   2. Site Location
HK Motors Alabama Operations will be located on a 3,000 acre site near Interstate-65 and Highway 287 in
Baldwin County in southern Alabama. As one of many incentives from the state and local governments,
Baldwin County will provide a 3,000-acre parcel (the Mega Site) to HK Motors to build the manufacturing
complex. Local joint announcements of the site were conducted on September 24 and October 6, 2009.




                                                                        September 24 - Baldwin County

           HK Motors site location and map
  Address: 49780 Rabun Rd, Bay Minette, Alabama, 36507




                                                                          October 6 - Baldwin County




                                                                                                     22
    3. Manufacturing Facilities

                                    HK Motors Alabama Operations
              The World’s Largest and Most Advanced Green Vehicle Manufacturing Complex




HK Motors Alabama Operations will be the world’s largest and most advanced green manufacturing complex
for green vehicles. There will be six manufacturing plants in the complex: stamping plant, body shop, paint
shop, engine plant, transmission plant and vehicle assembly plant. These six plants will be equipped with the
latest and the most advanced manufacturing technologies, processes and equipment. The manufacturing lines
will be exceptionally energy efficient, using 25% less energy consumption than existing automotive plants,
and environmentally friendly.




                                                                                                      23
Stamping Lines by Schuler




  Body Shop by KUKA




                            24
Advanced Paint Shop by DURR




 Power Train Plant by MAG




                              25
   4. Manufacturing Plans

HK Motors production plans are divided into three phases. In Phase One, HK Motors will invest USD$1.530
billion, employ 5,890 people, and produce 300,000 vehicles per year. Through an intensive modular-building
strategy, production capacity can be quickly and efficiently increased. By the end of 2018, the HK Motors
Alabama manufacturing complex will reach its full capacity of 1,000,000 vehicles per year.

                         HK Motors Alabama Operations Production Planning




   5. Concept Vehicles
On January 21, 2010, Dr. Chuantao Wang, CEO of HK Motors, traveled to Baldwin County, Alabama, to
unveil HK’s concept vehicle, a luxury utility vehicle (LUV) designed by EDAG of Germany.

             A front view of the LUV                                  The rear of the LUV




                                                                                                    26
                                            VIII. SUMMARY

HK Motors will become a world leading enterprise in the developing, manufacturing, and marketing of
advanced technology vehicles by attracting global talents, adopting world leading technologies, and
developing innovative business and sales models.

Currently, car manufacturers are encountering three major challenges. The first challenge is the global
recession and automotive industry crisis: as in many other industries, the car industry is in survival mode. The
second challenge stems from the rapid rise of oil demands and shrinking supplies. Oil may only last 40-70
years using current auto volume and market growth. In addition, major suppliers of oil are in geopolitically
unstable regions, and thus constitute a national security risk. The increase of oil and gasoline prices appears to
be permanent and inevitable, and have become an economic growth constraint for all industries. The third
challenge comes from increasingly stringent regulations and government mandates for fuel efficiency and
greenhouse gas emissions, in response to global warming.

HK Motors’ advanced 3-in-1 hybrid vehicles using three energy sources - natural gas as primary fuel, battery,
and gasoline for emergency use - provide an optimum solution to all of these challenges, because natural gas
is the world’s second most abundant and cleanest fossil fuel source, and the best replacement for oil. More
importantly, proven US natural gas reserves can power our homes and vehicles for more than 160 years.
These natural gas-fueled, environmentally friendly green vehicles will meet and exceed all rigid regulations.

HK Motors Alabama Manufacturing Complex will become the world’s largest manufacturing base for
advanced technology vehicles with low emissions, high fuel efficiency, high performance and high quality. As
the world’s largest automotive production complex, it will create more than 18,000 direct and 157,000 total
jobs (direct, indirect and induced). It will annually produce 1,000,000 advanced hybrid propulsion systems
and green vehicles, and generate $35 billion in revenue. HK Motors Alabama Project will lead innovation in
the automotive industry, create green jobs, stimulate state and local economies, harmonize the environment,
and benefit society. This project will inevitably reshape the American automotive landscape, accelerate the
green transition and strengthen Alabama’s leadership on the green transportation super-highway.

Highlights of Investment Advantages:
   • Unique opportunity for immigrant investors to become US permanent residents and invest in
       America’s future
   • Innovative financing: EB-5 program backed by a public company, allowing investors a profitable exit
       after a five year investment in the project
   • Leading the global automotive industry trend towards fuel efficient, environmentally friendly vehicles
   • Strong management experience in both the automotive industry and financial markets
   • Proprietary technology for a super engine and power train with excellent fuel economy and low
       emissions, plus proprietary technology for next generation engines (nano-engines) beginning in 2020
   • Excellent strategy to reduce manufacturing costs, making advanced technology vehicles affordable to
       all customers
   • Innovative marketing: free natural gas for the first 50,000 miles
   • Significant state and county incentive packages for the project
   • Federal tax credits for alternative fuels, fuel efficiency and low emission vehicles
   • “American Power Act” introduced on May 12, 2010 and “The NAT GAS ACT” introduced on June 8,
       2009, by both the Senate and US House of Representatives which will provide for federal subsidies,
       credits, and tax breaks for developing, manufacturing, and purchasing natural gas vehicles (up to
       $12,500 for light-duty vehicles)

                                                                                                           27
Appendix I: USCIS Approval of HK Motors Project A, LP




                                                        28
                           Appendix II: Frequently Asked Questions


Once the investor’s EB-5 petition is approved, USCIS issues a “conditional green card.” What is a
“conditional” green card?
A “conditional” green card is valid for two years. A conditional green card holder has the same rights and
privileges as a permanent green card holder. Its holder should file a petition to remove conditions three month
before the second anniversary of issuance. If the investor successfully removes conditions, a ten-year
permanent green card will be issued.

What is the difference between “conditional” and permanent green cards?
A permanent green card is valid for ten years without conditions. Both cards offer the same rights and
privileges.

Can my spouse and children also receive "green cards" under the EB5 visa program?
Yes. Your spouse and minor children are eligible for the conditional immigrant visa that you applied for when
you filed your I-526 petition.

If I was denied a US visa, can I still apply for EB-5?
Yes, an investor still can apply for an EB-5 immigrant visa, even if he or she has been denied a US visa in
another category, unless the reasons for denial are related to immigration fraud or other major problems.
It is most important that all criminal, medical, and U.S. immigration history problems be disclosed to
ACFI and legal counsel in advance of your petition.

Do I have to stay in the US once I receive my green card?
According to immigration regulations, the green card holder must create a residence in the US, and spend at
least 6 months a year in the US in order to keep permanent resident status.
If family, employment, or business issues will not allow you to meet the residence requirement, you can apply
for a re-entry permit. Re-entry permits are valid for two years and can be renewed after expiration.




           For further information and access to ACFI’s approval letters and other documentation,
                             please visit ACFI on the web at www.acfi-usa.com.


                                                                                                         29
Appendix III: Government Letters of Support




                                              30
31
32
      Appendix IV: Progress Timeline – HK Motors Alabama Project


•   5/15/2009: $250 million hybrid power train development contract signed with FEV GmbH, a global
    leader in power train development, for development of eight vehicles;

•   9/24/2009: HK Motors and State of Alabama make joint announcement for HK Motors’ Alabama
    Project in Baldwin County, Alabama;

•   1/26/2010: HK Motors’ parent company, Hybrid Kinetic Group, Ltd. (HKG) - a publicly traded
    company on the Hong Kong exchange (symbol HKG:1188) - obtains shareholder approval to allow
    EB-5 investors to convert their investments in the HK Motors Alabama Project to HKG shares after
    five years;

•   2/12/2010: Hong Kong Stock Exchange authorizes HKG to increase stock issues for EB-5 exit
    strategy;

•   4/14/2010: Joint announcement by American Natural Gas Vehicle Alliance with APGA (American
    Public Gas Assn.), NGVA (Natural Gas Vehicles for America) and HK Motors to announce the
    formation of a strategic collaboration to promote the mass production and sales of natural
    gas-powered hybrid passenger vehicles;

•   5/3/2010: HK Group purchases GBS Energy, a company that specializes in the development and
    manufacturing of the high-power, high-energy LiFeMnPO4 battery pack suitable for electric and
    hybrid vehicle applications. GBS battery packs and control systems are currently employed by three
    leading contenders in the Progressive Automotive XPrize Competition;

•   6/1/2010: United States Citizenship and Immigration Services (USCIS) approves ACFI's HK Motors
    Proposal under the Immigrant Investor EB-5 Program. USCIS has determined that all HK Motors
    Agreements, Memorandums and Business Plan are in compliance with established EB-5 eligibility
    requirements. This approval will facilitate the approval of all I-526 petitions submitted by investors in
    the HK Motors Project A LP, as the investor petitioner will only have to provide biographic data and
    show the source and path of funds to be invested;

•   6/9/2010: HK Motors, ACFI, the State of Alabama, and Baldwin County hold joint conference in
    Beijing to introduce the HK Motors Alabama Project to nearly 200 participants, including
    immigration agents and potential investors from around China;

•   6/15/2010: USCIS approves an HK Motors investor’s petition less than two weeks after ACFI
    requested expedited processing. This quick turnaround is an unprecedented achievement for an EB-5
    regional center;

•   6/29/2010: United States Securities and Exchange Commission accepts HK Motors Notice of Exempt
    Offering of Securities. This allows ACFI agents to offer and sell the HK Motors EB-5 investment
    without having to register with the SEC;

•   8/8/2010: HK Group announces a joint venture with Jianghuai Automobile Company for the purpose
    of eco-friendly engine research, development, design and manufacture.

                                                                                                       33
America’s Center for Foreign Investment        Hybrid Kinetic Motors Corp.
150 S. Los Robles Ave., Suite 860              800 E. Colorado Blvd., Suite 888
Pasadena, CA 91101       USA: (888) 688-ACFI   Pasadena, CA 91101
Tel: (626) 683-9120      Fax: (626) 683-7393   Tel: (626) 683-7330           6
                                                                       Fax: ( 26) 683-0693
Website: www.acfi-usa.com                      Website: www.hkmotors.com

								
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