On September 30, 2026, Global New Material International (06616.HK) announced that the share transfer for the transaction to acquire a controlling stake in Jihua Group (603980.SH) was completed on September 30. Following the completion of the transaction, Tonglu Junheng Equity Investment Partnership (Limited Partnership) holds a 29.89% stake in Jihua Group, becoming its single largest shareholder and controlling shareholder.

Following acquiring South Korea’s CQV and SUSONITY—the former surface solutions business of Germany’s Merck, GNMI has made Jihua Group a key component of its new materials strategy. Global New Material International has thereby established a development framework supported by dual listings on the Hong Kong and A-share markets, with interconnected global R&D and market resources, and complementary material technologies and fine chemicals manufacturing capabilities.

Global Material Platform Adds a New Pivot Point for Industrialization

From Chesir to Zhejiang Hongzun, and from CQV to SUSONITY, GNMI has continuously built up its technical and product capabilities in areas such as synthetic mica, effect materials, functional fillers, active ingredients for cosmetics, and surface treatments, serving application markets including automotive and industrial coatings, beauty and personal care, plastics, and printing.

GNMI has established R&D and production facilities in China, Germany, South Korea, Japan, the United States, and other locations. According to the 2026 Mid-Year Report, GNMI’s sales network spans more than 150 countries and regions worldwide. The addition of Jihua will more closely link this global network with the fine chemicals industry base in the Yangtze River Delta, creating new opportunities for collaboration in technology development, product applications, and large-scale manufacturing.

Jihua Distinguishes Itself Through Technological Expertise and Large-Scale Manufacturing

Over more than three decades of development, Jihua has built capabilities in fine chemicals spanning research and development, process development, and large-scale production. Its industrial foundation—encompassing raw materials, intermediates, energy infrastructure, and comprehensive environmental management—provides the necessary support for stable production, quality control, and engineering applications. With industrial facilities located in Zhejiang and Jiangsu Province, it is able to leverage the Yangtze River Delta’s mature chemical industry infrastructure and talent pool to conduct its business.

As of June 30, 2026, Jihua held 119 patents, had led or participated in the formulation of 44 national and industry standards, and operated a provincial-level R&D platform as well as several high-tech enterprises. These achievements demonstrate Jihua’s long-standing capability in product R&D, process improvement, and the development of industry standards.

Functional Coatings and Fine Chemicals Open Up New Opportunities for Collaboration

In addition to dyes and intermediates, Jihua has established businesses in non-stick coatings, polyurethane foam, and other areas, and possesses the corresponding R&D, formulation, and production expertise. These businesses, which are closely tied to material performance and end-use applications, provide concrete entry points for both parties to engage in product development, application validation, and customer collaboration.

With Jihua’s addition, GNMI has further strengthen its R&D and engineering manufacturing capabilities in organic chemicals, building upon its existing strengths in inorganic substrates, effect materials, and surface treatments. GNMI can now promote deeper collaboration among substrates, surface treatments, formulation applications, and large-scale manufacturing to address customers’ diverse needs for color, texture, and functionality.

In terms of technology and products, both parties will strengthen R&D exchanges focused on functional coatings, pigments, and specialty functional materials. They will conduct formulation testing, performance optimization, and application validation based on customer needs, and will conduct phased process and industrialization assessments of eligible technological achievements. The focus of this collaboration is to transform technological expertise into products with stable performance that are suitable for customer applications.

In terms of marketing and operations, GNMI will align suitable products with its global sales network based on the product characteristics of each business unit and customer certification requirements; at the same time, it will strengthen collaboration in procurement, manufacturing, quality, and supply chain management to enhance supply stability and customer service levels. Jihua will also gain broader opportunities for technical exchange and market cooperation as a result.

Dual Listing Platform Supports Long-Term Industrial Development

The dual listing structure on the Hong Kong and A-share markets, supported by Global New Material International and Jihua Group, provides GNMI with broader scope to coordinate international resources with domestic industrial capabilities. Global New Material International will leverage its experience in cross-border operations and global resource integration to support Jihua in consolidating its existing businesses, enhancing operational quality, and cultivating new development opportunities in areas where it possesses a solid technological and market foundation.

Upon completion of the transaction, GNMI will prioritize a smooth transition, stable production and operations, and uninterrupted customer service while advancing subsequent governance arrangements in accordance with the law. While maintaining Jihua Group’s independent and compliant operations and adhering to necessary decision-making and information disclosure procedures, GNMI will proceed with integration in phases, translating the technical, manufacturing, and market strengths of all parties into specific products and customer projects.

Global New Material International will continue to deepen its expertise in surface properties and functional materials, connecting global R&D with industry needs and leveraging manufacturing capabilities to support technological applications, thereby creating greater material value for customers and generating long-term returns for shareholders.