Daming International Holdings Limited (Daming International), a Chinese company which specializes in stainless steel processing, sales and technical services, has announced that it has inked a five-year strategic cooperation agreement with one of its suppliers, Baosteel Stainless Steel, aimed at strengthening cooperation in business development, sales and distribution, value-added services, and product research and development.
In addition, as part of the strategic business cooperation between Daming International and Baosteel, Daming will issue 104 million new shares valued at RMB 3.69 per share ($0.6 per share) for Hwabao Trust, which is representing Baosteel Stainless Steel. The new shares will account for 9.09 percent of total equity after issuance. The net income from the new shares estimated at around RMB 382 million ($61.6 million) is expected to be used for general operating funds and for a heavy industry project of Daming International at Jingjiang, Jiangsu Province.