To continue growth and development via vertical and horizontal integration, the Group is setting up a joint venture company with Qingdao Port Investment and Construction Group Co., Ltd, a state-owned entity incorporated in the PRC, to engage in warehousing and processing of iron ore and coal business in Dongjiakou Port, Qingdao.
This joint venture investment complements the present business structure of the Group and the management expects to have a positive multiplier impact to the various business units of the Group. We believe that the joint venture arrangement shall bring substantial benefits to the Group’s strategic move with the development of unique and sustainable long term business opportunities.
The global demand for iron ore and coal continue to grow significantly. The Group is expecting the joint venture arrangement shall provide steady income and enhance overall profit margin.
