Core Viewpoint - The acquisition of Merck's Surface Solutions business (SUSONITY) for €665 million is framed as a resonance of long-term values between two companies, emphasizing a commitment to employee welfare and sustainable business practices [1][2]. Group 1: Strategic Vision and Market Position - The acquisition is seen as a step towards becoming a global leader in high-performance materials, combining Eastern innovation with Western industrial rigor [1][8]. - After 14 years of development, the company has become the largest producer of pearlescent pigments in China, driven by demand in high-end markets such as automotive and cosmetics [2][7]. - The company is expanding its production capacity, with a new plant for 30,000 tons of pearlescent materials set to start operations in 2024, and a 100,000-ton surface performance materials project nearing completion [2][6]. Group 2: Long-term Commitment and Employee Focus - The negotiation process highlighted the company's long-term commitment, which reassured Merck about the future of its employees and the business [2][3]. - The company aims to ensure that all employees feel valued and secure, fostering a culture of trust and collaboration across its global workforce [3][6]. Group 3: Integration Philosophy - The integration strategy emphasizes flexibility and customer orientation, avoiding a one-size-fits-all approach and allowing business units to maintain some independence while focusing on core objectives [4][6]. - The company plans to leverage its market insights and Merck's global customer network to enhance service efficiency while creating a responsive global strategy for production and supply [4][5]. Group 4: Financial Performance and Synergies - The previous acquisition of CQV has shown positive results, with a revenue increase of 17.8% and a net profit surge of 171.3% in 2024, indicating successful integration and synergy [5]. - The collaboration has led to CQV's products entering the supply chains of major automotive manufacturers in China, enhancing the company's market presence [5][6]. Group 5: Future Aspirations - The company aims to lead the global market for synthetic and natural pearlescent pigments, addressing the supply chain challenges associated with natural mica, which is a limited resource [7][8]. - The vision includes positioning the company as a hub for innovation that connects global industrial advantages and shapes the future of the industry [8].

Core Viewpoint - The establishment of the Asia-Pacific headquarters in Hangzhou marks a strategic milestone for the company, aiming to link global innovation and serve global customers in the new materials industry [1][2]. Group 1: Asia-Pacific Headquarters - The Asia-Pacific headquarters will leverage the innovation hub of Hangzhou and the advantages of the Yangtze River Delta industrial cluster to integrate resources from China, Germany, South Korea, the United States, and Japan [2]. - The headquarters aims to create a global high-end market-oriented R&D innovation and business collaboration platform, supporting the company's goal of becoming a "global new materials technology platform enterprise" [2]. Group 2: Recent Acquisition - The company recently completed the acquisition of Merck's surface solutions business, SUSONITY, with a total investment of €665 million, marking the largest overseas acquisition in China's pearlescent materials industry [2]. - This acquisition is seen as a milestone in the company's globalization strategy and a key turning point for the Chinese materials industry from "technology following" to "value co-creation" [2]. Group 3: Global Integration and Collaboration - The launch ceremony facilitated the first gathering of management teams from SUSONITY, CQV, and Qisec Pearl, promoting global integration and collaboration [2]. - The company emphasizes that the blending of diverse cultures and management philosophies will enhance synergy and accelerate its expansion and innovation in global high-end markets [2]. Group 4: Future Plans - The company plans to use the Asia-Pacific headquarters as a new starting point to increase R&D investment and promote the innovative application of functional materials [3]. - The company aims to actively participate in industry standard formulation and support green transformation and high-quality development [3]. - The company will continue to deepen strategic collaboration with global customers and partners to create a new chapter in leading and integrating the Chinese new materials industry [3].

Core Viewpoint - The company reported a strong performance in the first half of 2025, with revenue growth driven by high-value products, despite a decline in net profit due to one-time acquisition costs [1] Financial Performance - In the first half of 2025, the company achieved revenue of 9.12 billion yuan, a year-on-year increase of 17.7% [1] - Net profit was 0.996 billion yuan, a decrease of 31.1% year-on-year, influenced by acquisition-related one-time expenses [1] - The company's non-GAAP net profit was 2.6 billion yuan, reflecting a year-on-year growth of 54.4% [1] - Gross margin improved by 2% to 52%, significantly above the industry average, driven by an increase in the proportion of high-value products [1] Technological Innovation and Market Demand - The company is a leader in the surface performance materials sector, holding the top global market share in artificial mica and possessing a comprehensive patent portfolio with 159 patents [2] - The product range includes over 2,192 types of pearlescent pigments, with more than 50% being mid-to-high-end products [2] - The company is expanding its applications in various industries, including new energy and future technology sectors, indicating a growing demand for pearlescent pigments [2] Expansion and Global Strategy - The company is steadily increasing its production capacity, with approximately 18,000 tons of pearlescent pigment capacity from its first-phase factory as of June 2025 [4] - A new production base for artificial mica with an annual capacity of 100,000 tons is under construction and expected to be operational by the end of 2025 [4] - The acquisition of SUSONITY for 6.65 billion euros (approximately 51.87 billion yuan) marks a significant step in the company's globalization strategy [4][5] Synergy from Acquisition - The acquisition of SUSONITY will enhance the company's global presence and provide access to established sales networks and quality customer resources [5] - The integration is expected to enrich the product matrix, particularly in high-end cosmetic solutions, leveraging SUSONITY's global operational capabilities [5] - The company is positioned to become a global leader in the pearlescent pigment industry, supported by its technological capabilities and production expansion [5]

Group 1 - The provincial government emphasizes the importance of project construction and effective investment to achieve high-quality development goals [1][3] - The Hangzhou Xiaoshan Airport Station hub and connecting project, spanning approximately 85 kilometers, is a key infrastructure initiative with 43.6% of total investment completed [2] - The Global New Materials Asia-Pacific headquarters and surface performance materials R&D production base is the first 10 billion-level manufacturing project in Tonglu County, focusing on synthetic mica [3] Group 2 - The government encourages the use of policy financial tools and special bonds to ensure project quality and safety during construction [2] - There is a strong focus on optimizing the business environment to support enterprises and enhance project construction efficiency [3] - The third quarter is identified as a critical period for achieving annual goals, with an emphasis on accelerating project progress and attracting investment in advanced manufacturing and technology innovation [3]

Core Viewpoint - The acquisition of Merck Group's surface solutions business (SUSO) by China's leading synthetic mica company, Global New Materials International, marks a significant shift in the global new materials industry, indicating a transition from "market for technology" to "technology wins market" for Chinese enterprises [1][2][4]. Group 1: Company Backgrounds - Merck Group, one of the oldest chemical and pharmaceutical companies, has evolved into a global pharmaceutical giant with revenues of €17.4 billion in life sciences and healthcare in 2024 [2]. - Merck's semiconductor solutions business accounted for 69% of its electronic technology revenue in 2024, while SUSO's contribution declined to only 11%, leading to its divestment [2][3]. - Global New Materials International, established in 2011, has rapidly grown to become China's largest synthetic mica and pearlescent pigment manufacturer, achieving revenues of ¥1.649 billion in 2024, a 55% increase year-on-year [7][18]. Group 2: Strategic Acquisition - The acquisition price for SUSO was €665 million (approximately ¥5.187 billion), with a valuation of 11.08 times EBIT for the 2023 fiscal year, significantly lower than initial estimates [16]. - Global New Materials International's confidence in the acquisition stems from its proprietary core technologies and strong financial performance, with a compound annual growth rate of approximately 27% over the past five years [17][18]. - The integration of SUSO is expected to enhance Global New Materials' production capabilities and market reach, leveraging SUSO's established global sales network and brand reputation [12][20]. Group 3: Market Dynamics - The global demand for synthetic mica is increasing, driven by its applications in cosmetics and automotive coatings, as natural mica faces supply constraints and regulatory challenges [3][4][22]. - The collaboration between Global New Materials and SUSO is anticipated to create a comprehensive product matrix that covers high, medium, and low-end markets, reducing reliance on low-cost competition [21][23]. - The strategic partnership is expected to enhance both companies' operational efficiencies, reduce procurement costs, and improve profitability, particularly in high-value sectors like automotive and cosmetics [13][20]. Group 4: Future Outlook - The merger is projected to lead to the formation of a global new materials industry group, enhancing the competitive positioning of both companies in the international market [21][24]. - The integration of technologies and resources is expected to foster innovation and expand market opportunities, positioning Global New Materials as a leader in the synthetic mica and pearlescent pigment sectors [23][24]. - The successful execution of this acquisition could serve as a model for other Chinese enterprises seeking to expand globally through technology-driven strategies [24].

Core Viewpoint - The acquisition of Merck Group's surface solutions business (SUSONITY) by China's leading synthetic mica company, Global New Materials International, marks a significant shift in the global new materials industry, indicating a transition from "market for technology" to "technology wins market" for Chinese enterprises [2][3][6]. Group 1: Industry Dynamics - The acquisition highlights the contrasting fates of SUSONITY and Global New Materials, with the former struggling due to rising costs and declining market share, while the latter has rapidly expanded its revenue and market presence [6][10]. - The global new materials industry is witnessing a power shift, with Chinese "invisible champions" gaining ground against established European chemical giants like Merck [3][4]. - The synthetic mica market in China has been growing rapidly, with a compound annual growth rate (CAGR) exceeding 20% from 2016 to 2024, driven by demand from downstream industries such as coatings, plastics, inks, automotive, and cosmetics [9][12]. Group 2: Strategic Acquisition - Global New Materials International's acquisition of SUSONITY for €665 million (approximately ¥5.187 billion) is seen as a strategic move to enhance its competitive edge in high-end manufacturing [21][22]. - The acquisition is expected to create synergies between the two companies, leveraging Global New Materials' advanced synthetic mica technology and SUSONITY's established market presence and customer base [17][24]. - The integration of SUSONITY into Global New Materials' operations is anticipated to enhance production capabilities, reduce costs, and improve profitability, particularly in the high-value automotive and cosmetics sectors [18][19]. Group 3: Financial Performance - Global New Materials International has demonstrated strong financial growth, with a revenue CAGR of approximately 27% over the past five years, and a significant increase in revenue to ¥1.649 billion in 2024, representing a 55% year-on-year growth [23]. - The company's gross profit margin reached 53% in 2024, with net profit increasing by 33.4% to ¥242 million, indicating robust operational efficiency and market demand [23]. - The successful integration of the Korean company CQV has further bolstered Global New Materials' financial performance, contributing to its optimistic outlook for the SUSONITY acquisition [23][25]. Group 4: Future Outlook - The merger is expected to create a more collaborative global materials group, enhancing supply chain efficiency and expanding product offerings across various market segments [27][30]. - The strategic focus on synthetic mica aligns with national policies promoting advanced materials, positioning Global New Materials and its subsidiaries for significant growth in emerging markets [7][29]. - The integration of technologies and market channels is likely to establish Global New Materials as a leading player in the global synthetic mica and pearlescent pigment market, reshaping perceptions of Chinese manufacturing on the world stage [30].

Core Viewpoint - The acquisition of SUSONITY by Global New Materials International Holdings Limited marks the largest cross-border merger in the pearl material industry in China, valued at €665 million (approximately ¥5.187 billion or HK$5.586 billion) [1] Group 1: Acquisition Details - The acquisition was completed on July 31, with the delivery ceremony held in Frankfurt, Germany, and SUSONITY will operate as a subsidiary under an independent brand [1] - This strategic acquisition is a significant step in the company's globalization strategy, positioning it at the center of the global surface performance materials competition [1][4] Group 2: Market Position and Synergies - Global New Materials International is a leading player in the global synthetic mica-based pearl material market, while SUSONITY has established expertise in surface solutions for coatings, cosmetics, and industrial applications [2][3] - The integration of SUSONITY is expected to enhance the company's market position and customer-centric strategies, particularly in high-end markets such as automotive coatings and cosmetics [3][4] Group 3: Global Expansion and Operational Efficiency - The acquisition will expand the company's geographic coverage and sales channels, particularly in the automotive and cosmetics sectors, enhancing its competitive edge [4] - New production facilities in Germany, Japan, and the United States will contribute to the company's operational efficiency and supply chain strengthening [4] - The company aims to leverage SUSONITY's established sales network and customer resources in Europe, America, and Asia to drive sales growth [4] Group 4: Future Outlook and Strategic Goals - The company plans to enrich its product matrix and deepen key technology areas while expanding its global high-end customer market [5] - Recent acquisitions, such as the 42.45% stake in South Korea's CQV, have shown positive financial results, indicating a successful strategy for growth and collaboration [5]

Core Viewpoint - The completion of the acquisition of Merck's Surface Solutions business marks a significant milestone for Global New Materials International, establishing its presence in the global surface performance materials sector and enhancing the globalization strategy of Chinese new materials companies [1][2]. Group 1: Acquisition Details - The acquisition was finalized on July 31, 2025, with a transaction value of €665 million, encompassing subsidiaries and production bases in Germany, Japan, and the United States [1]. - The acquired business will be rebranded as SUSONITY and will continue to operate independently, serving a global customer base [1]. - This acquisition is the largest cross-border merger in China's pearlescent materials industry to date [1]. Group 2: Strategic Importance - The acquisition is seen as a strategic necessity amid the restructuring of the global pearlescent materials market, with a shift towards high purity, weather resistance, and green safety [2]. - The integration of Merck's Surface Solutions business allows Global New Materials International to gain access to a comprehensive patent portfolio, stable high-end customer resources, and a mature R&D and application collaboration platform [1][2]. Group 3: Financial and Operational Support - Financial data indicates that Global New Materials International's revenue is projected to grow by 55% year-on-year in 2024, with a gross margin maintained above 50% [2]. - The previous acquisition of Korean CQV has resulted in a doubling of profits, providing a reference for business synergy post-integration [2]. Group 4: Future Outlook - The company aims to merge global sales networks, optimize cost structures, and enhance brand matrices, facilitating a transition from "Asian manufacturing" to "global operations" [2]. - The acquisition reflects the rising status of Chinese new materials companies within the global supply chain, with expectations of stronger global competitiveness in surface materials through deepened technological collaboration and capacity integration [2][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].

Core Viewpoint - The article discusses the growth potential and market dynamics of the mica industry, particularly focusing on the insulation and high-temperature applications of mica materials, with significant growth expected in the new energy sector and home appliances. Group 1: Market Overview - Mica is a major rock-forming mineral widely used in insulation, high-temperature, and pearlescent materials, with 80.8% of its application in the refractory insulation sector in 2022 [2] - The global market for new energy mica is projected to exceed 10 billion by 2027, with a CAGR of 40.5% from 2023 to 2027, driven by the increasing demand for safety in new energy vehicle batteries [4] - The home appliance mica market is expected to grow at a CAGR of 20.2% from 2020 to 2025, with the market size reaching 1.341 billion by 2025 [6] - The global high-temperature refractory mica market is expected to reach 5.73 billion by 2025 [8] Group 2: Competitive Landscape - The industry has high barriers to entry due to customer, technical, financial, and product certification barriers, creating a strong moat for existing players [12][17] - Leading companies like Zhejiang Rongtai and Ping An Electric have revenues approaching those of international leaders, while most domestic firms remain small and varied in technical capabilities [18] - The market is characterized by a fragmented structure with leading firms holding significant market shares, particularly in the new energy sector where Zhejiang Rongtai had a market share of 27.14% in 2022 [20] Group 3: Industry Trends - The domestic mica market is expanding, driven by increasing demand from the new energy vehicle sector and energy storage applications, with a market size of 5.6 billion in 2022 [26] - The trend towards integrated solutions in new energy vehicles is expected to enhance the value proposition of mica manufacturers, as they shift from providing single products to comprehensive thermal runaway protection solutions [31][32] - The performance of mica products is moving towards high-end applications, with synthetic mica showing significant potential due to its superior properties compared to natural mica [35]