Group 1 - The company, Zhejiang Xinghua New Materials Group Co., Ltd., plans to acquire at least 51.00% of Hangzhou Tiankuan Technology Co., Ltd. through a cash payment [1] - Following the completion of this transaction, Tiankuan Technology will become a subsidiary of the company [1] - The company currently lacks management experience in the relevant industry, which poses challenges for coordination and integration capabilities [1] Group 2 - The transaction may involve operational risks and business integration risks, which investors are advised to pay attention to [1]

Company Overview - Tongling Jeya Biotechnology Co., Ltd. was established in 1999 and specializes in the research, production, and sales of wet wipes, accumulating over 20 years of industry experience [2]. - The company was listed on the Shenzhen Stock Exchange's Growth Enterprise Market on December 3, 2021 [2]. Financial Performance - For the first three quarters of 2025, the company reported a revenue of 5.65 billion CNY and a net profit of 6,790.31 million CNY [2]. Q&A Highlights Production and Expansion - The U.S. factory is currently in the equipment installation and debugging phase, expected to commence production in the second half of this year [2]. - Land has been purchased in Egypt for future expansion to cover global markets outside the U.S., with the project still in the early planning stages [3]. Mergers and Acquisitions - The company is actively seeking quality acquisition targets that can create synergies with existing operations and add substantial value for long-term growth [3]. Product Lines and Market Strategy - There are no significant planned investments in the collagen business at this time [3]. - The performance of personal care products is currently limited in order volume, but customer expansion efforts are ongoing [3]. - The company's core competitive advantages lie in its long-term focus on the wet wipes market, with strengths in technology R&D, production processes, quality control, customer resources, and product variety [3]. Future Growth Prospects - Future growth is expected to come from deepening collaborations with existing international brand clients and expanding product categories and sales regions, as well as leveraging new market opportunities and localized supply chain advantages from the U.S. factory [3]. Compliance and Governance - The company adhered to the Shenzhen Stock Exchange's regulations during the investor communication event, ensuring no significant undisclosed information was leaked [3].

Core Viewpoint - Global New Materials International (06616) has seen a significant stock price increase, attributed to the announcement of a special shareholder meeting to approve the acquisition of Merck's global surface solutions business [1] Financial Performance - The company's stock rose over 9% during trading, with a current price of 4.82 HKD and a trading volume of 44.8457 million HKD [1] - Guozheng International has adjusted its profit forecasts, anticipating that the Merck Susonity business will be consolidated in the second half of 2025, which may increase financial expenses due to the acquisition [1] Business Operations - The main businesses, including pearlescent pigments and synthetic mica, are expected to maintain good cash flow and continue to grow [1] - The company’s existing production capacity for pearlescent pigments is 18,000 tons, nearing full capacity, with a second-phase factory set to begin operations in February 2024, designed for a capacity of 30,000 tons, currently producing 15,000 tons [1] - The synthetic mica production capacity stands at 12,000 tons, with a second-phase factory under construction in Tonglu City, expected to be operational by 2026, with an initial capacity of 40,000 tons, which will alleviate current capacity constraints [1] Strategic Synergies - The acquisition is expected to create synergies in sales channels, raw materials, and research and development among Seven Colors, CQV, and Merck Susonity, leading to performance growth [1]

Core Viewpoint - Global New Materials International (06616) is experiencing a significant stock price increase due to the announcement of a special shareholder meeting to approve the acquisition of Merck's global surface solutions business, which is expected to enhance future performance and synergies in various operational aspects [1] Company Summary - The company's stock rose over 9% during trading, with a current price of 4.82 HKD and a trading volume of 44.8457 million HKD [1] - The acquisition of Merck's Susonity business is anticipated to be consolidated in the second half of 2025, leading to adjustments in profit forecasts due to increased financial expenses [1] - The main businesses, including pearlescent pigments and synthetic mica, are expected to maintain strong cash flow and continue to grow [1] Industry Summary - The company’s existing production capacity for pearlescent pigments is 18,000 tons, which is nearing full capacity, while the second-phase factory is set to commence production in February 2024 with a designed capacity of 30,000 tons, currently producing 15,000 tons [1] - The synthetic mica production capacity stands at 12,000 tons, with a second-phase factory under construction in Tonglu City, expected to be operational by 2026 with an initial capacity of 40,000 tons, which will alleviate current capacity constraints [1]