Core Viewpoint - Dongmu New Materials Group Co., Ltd. plans to issue shares and pay cash to acquire a 34.75% stake in Shanghai Fuchi High-Tech Co., Ltd. and raise matching funds through the issuance of shares to no more than 35 specific investors [1][12]. Transaction Overview - The transaction involves issuing shares and paying cash to acquire assets, specifically the 34.75% equity of Shanghai Fuchi [10][11]. - The total amount of matching funds raised will not exceed 100% of the transaction price for the asset acquisition [12]. - The transaction is subject to approval from the Shanghai Stock Exchange and registration with the China Securities Regulatory Commission [3][12]. Financial Impact - The estimated transaction price for the 34.75% stake in Shanghai Fuchi is approximately 73.46 million yuan, based on an assessed value of 193.8 million yuan for 100% of the equity, reflecting a 105.44% increase [11][12]. - After the transaction, the total share capital of the company will increase from 616,383,477 shares to 653,675,737 shares, assuming the issuance of 37,292,260 new shares [13][14]. Strategic Importance - The acquisition is expected to enhance the company's core competitiveness in the MIM (Metal Injection Molding) business, leveraging synergies between powder metallurgy technologies [12][13]. - The transaction aligns with the company's strategy to focus on high-quality development and provide optimal material solutions for new energy and high-end manufacturing [12][13]. Shareholder Commitments - Major shareholders, including Mu Metal and Ningbo Jinguang, have expressed their principle support for the transaction, indicating it aligns with legal requirements and benefits the company and its shareholders [18]. - Shareholders have committed not to reduce their holdings during the transaction process [18]. Investor Protection Measures - The company will adhere to strict information disclosure obligations to protect the rights of investors, particularly minority shareholders [19]. - The transaction will follow fair and transparent procedures, ensuring that related party transactions are approved in compliance with regulations [19].

Core Viewpoint - Dongmu New Materials Group Co., Ltd. plans to issue shares and pay cash to acquire 34.75% equity in Shanghai Fuchi High-Tech Co., Ltd. and raise supporting funds through a private placement to no more than 35 specific investors [1][11]. Transaction Overview - The transaction involves issuing shares and paying cash to acquire assets, specifically the 34.75% equity in Shanghai Fuchi High-Tech Co., Ltd. [11][18]. - The total amount of supporting funds to be raised will not exceed 100% of the transaction price for the asset acquisition [14]. Financial Details - The transaction price for the 34.75% equity is set at approximately 73,462.54 million yuan, based on an evaluation that indicates a 105.44% increase in value [11][18]. - The company plans to use 34.10% of the raised funds (approximately 18,680.21 million yuan) for cash compensation related to the acquisition and 65.90% (approximately 36,102.12 million yuan) for the technical transformation and production line expansion of high-strength lightweight MIM parts [14]. Impact on Business Operations - The acquisition is expected to enhance the strategic position of the MIM business within the company, leveraging the complementary nature of powder metallurgy technologies [18]. - Post-transaction, the company will hold 99% of the equity in the target company, which is anticipated to strengthen its core competitiveness and open up new growth opportunities [18]. Share Structure Changes - Following the transaction, the total share capital of the company will increase from 616,383,477 shares to 653,675,737 shares, reflecting the issuance of approximately 37,292,260 new shares [18].

Overview of the Transaction - The transaction involves issuing shares and paying cash to acquire 34.75% equity in Shanghai Fuchi High-Tech Co., Ltd. from five counterparties, including Yuanzhi Xinghuo and Zhong Wei [8][11] - The transaction aims to enhance the company's capabilities in powder metallurgy and new material solutions, aligning with its strategic focus on high-quality development [11][15] Financial Details - The total transaction price for the acquisition is approximately 73,462.54 million RMB, with an estimated value increase of 105.44% based on the assessment [8][11] - The company plans to raise up to 54,782.33 million RMB in supporting funds, with 34.10% allocated for cash payment and 65.90% for technology upgrades and production line enhancements [10][11] Impact on Company Structure - Post-transaction, the company's total share capital will increase from 616,383,477 shares to 653,675,737 shares, with the issuance of 37,292,260 new shares [11][13] - The transaction will not alter the control structure of the company, which remains without a controlling shareholder [13][15] Strategic Benefits - The acquisition is expected to strengthen the company's core competitiveness by integrating the technologies of powder metallurgy and metal injection molding, enhancing its market position in the new materials sector [11][14] - The company anticipates improved financial metrics, including an increase in earnings per share from 0.64 RMB to 0.70 RMB for the fiscal year 2024 [18][20] Shareholder Commitments - Major shareholders, including Mu Metal and Ningbo Jinguang, have expressed their support for the transaction, emphasizing its alignment with legal requirements and benefits for the company's sustainability [15][20] - Shareholders and management have committed to not reducing their holdings during the transaction process, ensuring stability [15][20]