Recently, HBIS GROUP and POSCO of South Korea signed a memorandum of understanding on the establishment of a joint venture in China to jointly develop, produce and sell high-grade automobile panels. The two sides will seize the market opportunity of upgrading China's automobile consumption structure, aim at the high-end market, and discuss the establishment of a new limited liability company mainly producing high-strength automobile panels and high-grade automobile panels on the basis of the cold rolling project of Laoting Iron and Steel Base of HBIS. Through practical cooperation in the project, we will deepen the comprehensive partnership between the two sides and enhance business competitiveness and strategic synergy.

HBIS GROUP and POSCO are both steel enterprises with global competitiveness and influence, among which POSCO is the largest steel enterprise in South Korea, which has been rated as the most competitive steel enterprise in the world by World Steel Dynamics (WSD) for 10 consecutive years, and has the world's leading technical strength, marketing system and high-quality customer base in the field of automotive panels. Hegang Group is China's highest degree of internationalization of iron and steel enterprises, has become China's second largest supplier of automotive steel, automotive steel production in 2018 more than 7 million tons, cold-rolled and coated automotive sheet products cover more than 100 brands of ten series, to achieve a full range of coverage from structural steel, spare parts steel, cold-rolled to coated sheet steel, with the ability to supply automotive steel.

It is reported that since the establishment of the comprehensive cooperative partnership on August 29, 2017, the two sides have established a normal exchange mechanism in four aspects, namely, strategic planning, raw material resources, iron and steel technology, energy and environment, and achieved fruitful results. In the first half of this year, the two sides have carried out multi-level technical and commercial exchanges around the automobile plate project cooperation, and reached an intention to cooperate at the capital level.Next, according to the MOU framework signed by the two sides, we should give full play to our respective advantages in technology and resources, take the joint venture company as the carrier, strengthen business collaboration and jointly enter the high-end automobile plate market.