The report published by Sinocrystal Diamond Company, on Nov 15, showed that the company will establish holdings subsidiary together with Luoyang Huake Superhard Material Products Company through friendly negotiation. The subsidiary is mainly working on the research and development, production and sales of resin diamond cutting line.

The registered capital of Joint Venture Company is 50 million. The scope of business: research and development, production and sales of resin diamond cutting line (based on the standard of registration authority has checked). The company will invest 45 million Yuan in cash, accounting for 90% of registered capital; Luoyang Huake’s amount of contribution is 5 million in cash accounting for 10% of registered capital.

The company has established wholly-owned subsidiaries of Sinocrystal Precision Company to work on the research and development, production and sales of electroplated diamond cutting line. The holdings subsidiary will work on the market development of resin diamond cutting line, which benefits the products structure of the company, strengthens the research and development and market competitiveness in resin diamond cutting line and improve the comprehensive competitive advantages.