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During the post war 1950s, Hong Kong’s population jumped considerably, yet the living environment was abominable. After the big fire in Shek Kip Mei in 1953, the Government speeded up building infrastructure and public housing. The young Lui saw it as an opportunity and acquired surplus machines left from the Korean War in Japan for quarrying. In 1955, he started the first K. Wah company and implemented automation equipment in the quarry, where work had been manually done. It marked the start of safe and efficient quarrying in Hong Kong, laying solid foundations for the company to excel in the construction materials industry.

Quarrying activities blossomed in early 1960s. In order to regulate the industry, in particular its safety standard, the Government started to contract qualified players via open tender for authorised quarrying activities. Pioneering in the industry, K. Wah was the first private enterprise to obtain a quarrying rights contract in Hong Kong, at Anderson Road (Quarry 1) in 1964.

With rapid development of local industries and increasing income of people, demand for quality housing was also burgeoning. Riding on the opportunity, K. Wah made its first move to develop private housing by investing in a project at Cha Kwo Ling Road in 1962.