[Company News] On July 21st,2025, at the extraordinary general meeting of shareholders held by Global New Material International Holdings Limited, a resolution regarding the proposed acquisition of Merck’s global surface solutions business was successfully passed. The transaction is expected to close by the end of July. The extraordinary general meeting received unanimous support from the attending shareholders, and the proposal was passed with 100% affirmative votes.

Su Ertian, Chairman and Chief Executive Officer of Global New Material International, attended and presided over the extraordinary general meeting. Representatives of Global New Material International shareholders, executive directors, independent non-executive directors, management, as well as representatives of third parties such as lawyers and auditors attended the meeting.

Surface Solutions, a global leader in pearlescent pigment surface solutions, cosmetic active substances and industrial functional materials, has outstanding technological innovation capabilities, deep industry accumulation and efficient global teams in the industry. It has a broad and solid customer base in high-end markets such as automotive coatings, cosmetics and industrial, making it a highly valuable acquisition target for Global New Material International.

Su Ertian, Chairman of the Board of Directors of Global New Material International, elaborated on the purpose and strategic significance of the acquisition to shareholders on behalf of the board.

First of all, in terms of global layout, the market focus of Global New Material International is currently mainly concentrated in China and South Korea. This acquisition will enable GNMI to quickly gain access to the sales network, high-quality customer resources and global brand influence that Surface Solutions has built in major countries in Europe, the United States and Asia. By leveraging the mature cross-border e-commerce channels and local service systems, Global New Material International will be able to reach international customers more efficiently, drive continuous sales growth, fully accelerate the implementation of the group’s globalization strategy, and expand broader development space in the international market.

Another highlight is the enrichment of the product matrix. After the acquisition is completed, by integrating Surface Solutions’ leading product and R&D capabilities in cosmetic active ingredients, Global New Material International will further extend its high-end cosmetic solutions system based on pearlescent materials.

Optimizing the global supply chain is also one of the key goals of the acquisition. GNMI has the world’s leading self-owned technology for synthetic mica and has obvious advantages in terms of cost, scale and flexibility based on the domestic manufacturing system in China; Surface Solutions, on the other hand, has strong global operational and quality control capabilities. After the integration is completed, the two sides will form a mutually positive complementarity in areas such as raw materials integration, production capacity layout, process synergy and cost control, enhance supply chain resilience, comprehensively improve operational efficiency and profitability, and gain a more favorable position in global market competition.

In terms of R&D strength and ESG performance, the deep accumulation of both parties in product safety, green sustainability of raw materials and environmental protection technologies will be effectively integrated. This merger will accelerate joint innovation in key areas such as green materials and eco-friendly formulations, push Global New Material International to new heights in technological capabilities and sustainable development (ESG) management, create more comprehensive value returns for customers, employees, society and investors, and set a good example for enterprises on the path of sustainable development.

For Global New Material International, this acquisition is not only an opportunity for industrial synergy, but also an important strategic deployment for global resource integration and value reshaping. It will lay a solid foundation for Global New Material International to build a globally leading new materials platform company. It is believed that driven by the synergy and development potential of this acquisition, Global New Material International will take more resolute and powerful steps in the global high-end functional materials field, create more brilliant achievements, bring rich returns to shareholders and inject new vitality into the development of the industry.