Core Viewpoint - Company maintains a "Buy" rating for Global New Materials International (06616) due to progress in mergers and acquisitions, enhanced synergies, and a promising outlook in the pearlescent pigment market [1] Recent Events - On December 16, 2025, the company announced a differentiated pricing adjustment and plans to issue HKD 1 billion convertible bonds. The pricing adjustments will be implemented in phases across certain product groups to optimize business structure and enhance operational quality [1] - The company plans to issue convertible bonds with a total principal amount of HKD 1 billion, a coupon rate of 4.25%, maturing on January 4, 2027, with an initial conversion price of HKD 10.19, representing a premium of approximately 7.49% over the previous trading day's closing price [1] Operational Analysis - Initial synergies from the integration with SUSONITY are becoming evident, with organizational optimization completed and a cross-regional collaboration mechanism established to improve governance efficiency [2] - Accelerated cross-selling with SUSONITY in sectors like new energy and cosmetics is starting to show collaborative benefits [2] - The R&D team has initiated joint projects to combine cutting-edge technology with large-scale production, enhancing a "demand-driven" R&D mechanism to accelerate medium to long-term growth [2] Pricing Adjustment for High-Quality Development - The differentiated pricing adjustment will be implemented in phases across three major business platforms: Seven Color Pearlescent, SUSONITY, and CQV, to align with market trends and strengthen core competitiveness [3] - The adjustment range will be between 3-30%, tailored to product characteristics, technological content, application scenarios, and customer types, aiming to better match product value with market demand [3] Convertible Bond Issuance for Global Expansion - The net proceeds from the convertible bond issuance, approximately HKD 981 million, will primarily be used to supplement working capital, refinance existing debts, and for general corporate purposes [4] - This will optimize the company's capital structure, enhance cash flow stability, and provide solid financial support for core product R&D upgrades, global market expansion, and supply chain integration [4]