Core Viewpoint - The document outlines the legal opinions regarding the issuance of shares and cash payment for asset acquisition by Dongmu New Materials Group Co., Ltd, including the necessary approvals and the status of the transaction [2][3][7]. Group 1: Transaction Overview - Dongmu New Materials Group Co., Ltd is engaged in a transaction involving the issuance of shares and cash payment to acquire assets and raise supporting funds [2][3]. - The transaction has undergone updates to the reporting period, now covering 2023, 2024, and the first half of 2025 [3]. - The legal opinions provided are supplementary to previous legal documents issued regarding the same transaction [3][7]. Group 2: Approval and Authorization - The transaction has received necessary approvals, including the revision of the asset acquisition report and related resolutions [7][9]. - Further approvals are required from the Shanghai Stock Exchange and the China Securities Regulatory Commission before the transaction can be implemented [9][7]. Group 3: Asset Details - The historical background of the target company, Shanghai Fuchi High-Tech Co., Ltd, includes a valuation of its total equity at 1.1728 billion yuan as of September 30, 2019 [10]. - The share transfer agreement specifies that Dongmu will acquire 47,362,590 shares for a total price of 1.039 billion yuan [10][11]. - Following the share transfer, the total registered capital of Shanghai Fuchi will increase to 879.76275 million yuan [12]. Group 4: Investor Rights and Obligations - The investor, Yuanzhi Xinghuo, has specific rights including priority in share purchases and anti-dilution rights [12][19]. - The agreement stipulates conditions under which the investor can request a buyback of shares, including breaches of the investment agreement [27][29]. - The buyback price is calculated based on the total investment amount plus interest, minus any dividends received [21][27].

Core Viewpoint - Dongmu Co., Ltd. has shown significant growth in revenue and net profit in the first half of 2025, driven by its advanced MIM technology platform, while also experiencing fluctuations in stock price and capital flow [1]. Financial Performance - In the first half of 2025, Dongmu Co., Ltd. achieved operating revenue of 2.93 billion yuan, representing a year-on-year increase of 24.51% [1]. - The net profit attributable to shareholders of the listed company was 261 million yuan, reflecting a year-on-year growth of 37.61% [1]. - Revenue from the MIM technology platform reached 1.207 billion yuan, marking a substantial increase of 57.26% year-on-year [1]. Stock Market Activity - As of August 7, 2025, Dongmu's stock price was 27.34 yuan, up by 0.90 yuan or 3.40% from the previous trading day [1]. - The stock opened at 27.29 yuan, with a high of 28.97 yuan and a low of 26.93 yuan, with a trading volume of 665,167 hands and a transaction amount of 1.851 billion yuan [1]. - On August 7, there was a net outflow of 65.8961 million yuan in main funds, accounting for 0.39% of the circulating market value, while over the past five days, there was a net inflow of 60.6366 million yuan, representing 0.36% of the circulating market value [1]. Shareholding Changes - By the end of the second quarter, the basic pension insurance fund 1205 combination held 6.2664 million shares of Dongmu, an increase of 43.23% compared to the previous quarter, making it the sixth largest circulating shareholder of the company [1].

Core Viewpoint - Dongmu Co., Ltd. (600114.SH) continues to achieve steady growth in operating performance, driven by market expansion and technological innovation [1][2]. Financial Performance - In the first half of 2025, Dongmu Co., Ltd. reported operating revenue of 2.93 billion yuan, a year-on-year increase of 24.51%, and a net profit attributable to shareholders of 261 million yuan, up 37.61% [1]. - The company’s quarterly performance showed consistency, with net profits of 112 million yuan and 149 million yuan in Q1 and Q2 respectively, both reflecting a growth of approximately 37.6% [1]. - From 2022 to 2024, the company’s operating revenue was 3.726 billion yuan, 3.861 billion yuan, and 5.143 billion yuan, with year-on-year growth rates of 3.76%, 3.62%, and 33.2% respectively [2]. Market and Industry Trends - The powder metallurgy industry is experiencing a trend towards high-end, green, and intelligent development, with Dongmu Co., Ltd. increasing its R&D investment to enhance its technology [3]. - The demand in the consumer electronics market is recovering, and the company benefits from the growth in automotive, new energy, photovoltaic, and energy storage sectors [2]. Shareholder Returns - Dongmu Co., Ltd. has consistently returned value to shareholders, having distributed cash dividends for 21 consecutive years, with a cumulative net profit of 2.895 billion yuan and cash dividends of 1.56 billion yuan since its listing [3]. - The average dividend payout ratio stands at 53.89% [3]. Research and Development - The company’s R&D investments have increased over the years, with expenditures of 271 million yuan, 278 million yuan, and 322 million yuan from 2022 to 2024, and 162 million yuan in the first half of 2025, accounting for 5.54% of operating revenue [3]. - As of June 30, the company holds 922 authorized patents, including 231 invention patents [4].