Core Viewpoint - The acquisition of SUSONITY by Global New Materials International is a strategic move to enhance its position in the global surface performance solutions market, with a transaction value of €665 million (approximately ¥5.187 billion) [1] Group 1: Acquisition Details - The acquisition includes SUSONITY's production bases and global sales network in Germany, Japan, and the United States [1] - The deal is expected to reshape the competitive landscape of the industry and propel Global New Materials International towards becoming a leader in surface performance solutions [1] Group 2: Strategic Benefits - The product portfolio, supply chain, and regional coverage of Global New Materials International and SUSONITY are highly complementary, which will significantly expand the company's global business reach [2] - SUSONITY holds a 22% global market share in high-end surface solutions, particularly in the automotive and cosmetics sectors, enhancing Global New Materials International's market influence [2] - The acquisition will facilitate access to SUSONITY's established sales network and premium customer resources in Europe, America, and major Asian countries [2] Group 3: Financial Performance and Growth - Global New Materials International has shown strong financial performance, with a projected revenue growth of 55% and a net profit increase of over 33% in 2024, maintaining a gross margin above 50% [3] - The company is also expanding its production capacity, with a new project for 30,000 tons of pearl materials set to launch in February 2024, and a new synthetic mica production base expected to be operational by the end of 2025 [3] Group 4: Future Outlook - The acquisition is seen as a step towards creating a leading enterprise in pearl pigments that combines German precision manufacturing with Chinese innovation [4] - The core team of SUSONITY will remain intact, and existing operations in Germany, the United States, and Japan will continue [4]

Core Viewpoint - The completion of a €665 million acquisition by Global New Materials International marks the largest cross-border merger in China's pearlescent materials industry, reflecting a shift from being a technology follower to a global rule-maker in the cosmetics and industrial pigments sector [2][4]. Company Overview - Global New Materials International is a leader in the global surface performance materials sector, uniquely covering the entire industry chain from raw materials to high-end pearlescent materials, holding the largest market share in synthetic mica [3]. - The acquired company, SUSONITY, specializes in surface solutions for coatings, cosmetics, and industrial applications, holding a significant position in the high-quality market, particularly in the automotive and cosmetics sectors [3]. Strategic Development - The acquisition of SUSONITY is a significant milestone in Global New Materials International's external development strategy, enhancing its global operational system and transitioning from "Asian manufacturing" to "global operations" [4]. - The integration of production bases in Germany, Japan, and the United States is expected to strengthen the company's strategic depth and cyclical resilience [4]. Financial Impact - Following the acquisition, Global New Materials International anticipates long-term revenue and profit growth, reinforcing its global leadership position in the pearlescent pigment market [4]. - In 2024, the company expects a revenue growth of 55% with a gross margin maintained above 50% [3].

Core Viewpoint - The acquisition of Merck Surface Solutions by Global New Materials International is a strategic move aimed at accelerating the company's expansion and reshaping the surface performance materials industry landscape [2][7]. Group 1: Acquisition Details - The acquisition plan was approved unanimously at the shareholders' meeting, with Global New Materials International set to acquire 100% of Merck Surface Solutions for €665 million (approximately ¥5.187 billion), valuing the transaction at 11.08 times the 2023 EBIT [2][6]. - Merck Surface Solutions reported approximately €405 million in revenue and €60 million in EBIT for the fiscal year 2023, holding a significant position in the high-quality pearlescent pigment market, particularly in the automotive and cosmetics sectors [2][3]. Group 2: Strategic Expansion - Global New Materials International has been actively expanding, having previously acquired a 42.45% stake in South Korea's largest pearlescent pigment manufacturer, CQV, in 2023, with plans to increase this stake to 45.11% by 2025 [3]. - The company is also developing a new project in Tonglu, Hangzhou, with an annual production capacity of 100,000 tons of synthetic mica, further enhancing its market presence [3]. Group 3: Synergy and Market Position - The acquisition is expected to create significant synergies beyond mere capacity expansion, including enhanced sales channels, product offerings, and supply chain efficiencies [4][5]. - Merck Surface Solutions' established customer base in high-end markets, including luxury automotive and leading cosmetics brands, will provide Global New Materials International with valuable access to international markets [4][5]. Group 4: Future Integration Plans - The integration of Merck Surface Solutions is anticipated to be completed by July 2025, with a focus on deepening collaboration across various operational dimensions, including production, supply chain, R&D, and human resources [6]. - The strategic acquisition aligns with the trend of consolidation in the pearlescent pigment industry, positioning Chinese enterprises to become global leaders in this sector [7].