Da Ming International (01090.HK): Chongqing Iron & Steel and Independent Investor to Inject Capital into Chongqing Da Ming, Stake Diluted to 65%
Newtimespace (newtimespace.com) reported: On June 26, 2026, Da Ming International Holdings Limited (1090.HK) announced that its indirect wholly-owned subsidiary, Jiangsu Da Ming, entered into an investment agreement with Chongqing Iron & Steel, an independent investor, and Chongqing Da Ming. Pursuant to the agreement, Chongqing Iron & Steel and the independent investor conditionally agreed to pay RMB24,733,884.61 and RMB9,893,553.85, respectively, to subscribe for registered capital of RMB25,000,000 and RMB10,000,000 in Chongqing Da Ming. Upon completion, Da Ming International's indirect beneficial interest in Chongqing Da Ming will be diluted from 100% to 65%, with Chongqing Iron & Steel holding 25% and the independent investor holding 10%.
The consideration was determined after fair negotiation, taking into account Chongqing Da Ming's actual circumstances and operational needs, as well as the asset value of RMB64,308,010.01 as assessed by an independent valuer as of June 30, 2025. The consideration shall be paid in cash within 30 days after all registration requirements are fulfilled.
Chongqing Da Ming is principally engaged in the manufacturing and sales of special-purpose and general-purpose equipment, and electromechanical equipment in China. For the period from January 2, 2025 (date of establishment) to December 31, 2025, Chongqing Da Ming recorded a loss before tax of RMB7,612,943 and a loss after tax of RMB5,739,088. As of December 31, 2025, its audited total assets were RMB109,697,554 and net asset value was RMB59,260,912.
The Directors believe that the parties will integrate production capacity, technology, capital and market resources, and leverage the independent investor's expertise in port and logistics to build a competitive metal processing business environment. As Chongqing Da Ming will remain a subsidiary of the Company immediately after completion, no significant gain or loss is expected to be recognized in the consolidated statement of profit or loss. The proceeds are intended to supplement Chongqing Da Ming's working capital.
As the highest applicable percentage ratio exceeds 0.1% but is below 5%, the transaction does not constitute a notifiable transaction under Chapter 14 of the Listing Rules. The Chongqing Iron & Steel transaction constitutes a connected transaction under Chapter 14A, subject to reporting and announcement requirements but exempt from independent shareholders' approval.
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