{"success":true,"data":{"pressRelease":{"id":"157482","rtpr_id":"nPNAbc9HMa-20261001","ticker":"6616","exchange":"HKEX","all_tickers":["6616"],"title":"Global New Material International: Completion of Share Transfer for Controlling Stake in Jihua Group -- \"Hong Kong + A-share\" Dual-Platform Footprint Takes Shape, Opening a New Phase of Synergistic Growth","author":"PR Newswire","published_at":"2026-10-01T05:26:12.761Z","article_body":"Global New Material International: Completion of Share Transfer for\nControlling Stake in Jihua Group -- \"Hong Kong + A-share\" Dual-Platform\nFootprint Takes Shape, Opening a New Phase of Synergistic Growth\nPR Newswire\n\nHONG KONG, Oct. 1, 2026\n\nHONG KONG, Oct. 1, 2026 /PRNewswire/ -- On 30 September 2026, Global New\nMaterial International Holdings Limited (\"GNMI\" or the \"Company\", together\nwith its subsidiaries, the \"Group\"; stock code: 06616.HK) announced that, in\nrespect of the transaction under which the Company acquires approximately\n29.89% of the shares of Zhejiang Jihua Group Co., Ltd. (\"Zhejiang Jihua\",\nstock code: 603980.SH; together with its subsidiaries, the \"Jihua Group\")\nthrough Tonglu Junheng Equity Investment Partnership (Limited Partnership)\n(\"Junheng LLP\"), the registration of the share transfer was completed with\nChina Securities Depository and Clearing Corporation Limited, Shanghai Branch\non 29 September 2026. Subsequent arrangements, including the reorganisation of\nthe board of directors of Zhejiang Jihua, will proceed in accordance with the\nrelevant procedures.\n\nTurning the clock back to 6 February 2026, the date on which the acquisition\nagreement was signed: from signing to share transfer, the transaction took\napproximately eight months, passing through reviews by the stock exchanges in\nboth jurisdictions, funding arrangements and the share transfer. It stands as\none of the more smoothly executed cases in recent years of a Hong Kong-listed\ncompany acquiring control of an A-share listed company.\n\nAt first glance, market attention tends to focus on the consideration of\nRMB1,495 million paid to secure control of an A-share listed company. Looking\nbeyond the capital transaction, however, a clear industrial logic emerges. As\na global leader in surface performance materials, GNMI has consistently\npursued organic growth alongside external M&A and integration. The acquisition\nof a controlling stake in Jihua Group continues the development path\nestablished by its earlier acquisitions of CQV and SUSONITY, which broadened\nthe Group's product, technology and geographic coverage, and marks a key step\nin expanding the Group's industrial footprint.\n\nQuality of the Target: A Leading Dye Manufacturer in a Cyclical Recovery\nWindow\n\nTo understand the rationale behind GNMI's acquisition, one must first take\nstock of what Jihua Group actually brings to the table.\n\nJihua Group is no ordinary dye manufacturer. It is a leading player in China's\ndisperse dye segment and operates the world's third-largest dye production\nbase, with complete production capacity across the entire fine chemicals chain\nand self-sufficiency in disperse dyes, reactive dyes and the key intermediate\nH-acid. Against the backdrop of sharp raw-material price volatility and\ncontinuously tightening environmental standards in the dye industry, Jihua\nGroup's full-industry-chain foundation constitutes a barrier that is difficult\nto replicate.\n\nBeyond its core dye business, Jihua Group has extended into water-based\nnon-stick coatings, polyurethane foam and other businesses, and has entered\nthe pharmaceutical and healthcare sector. In June 2025, Jihua Group was\ngranted the Drug Registration Certificate for Rivastigmine Transdermal Patch\nby the National Medical Products Administration, marking a major breakthrough\nin the pharmaceutical field.\n\nIn terms of research and development, Jihua Group holds 119 patents and has\nled or participated in the formulation of 41 national and industry standards.\nIts three subsidiaries, namely Jiangsu Jihua, Jihua Jiangdong and Jihua\nMaterials, are all recognised as high-tech enterprises, and it operates\nplatforms including a national-level postdoctoral research workstation and a\nprovincial-level enterprise research and development centre.\n\nTurning to its asset base, as at 30 June 2026, Jihua Group's\nliability-to-asset ratio was only 11.15%, with current assets amounting to as\nmuch as RMB3,124 million and ample cash on its balance sheet. In addition,\nJihua Group owns production bases and industrial land totalling more than\n710,000 square metres across multiple locations in the Yangtze River Delta,\nfurther reinforcing its physical foundation.\n\nDespite its robust asset base, this fine chemicals platform — with solid\nassets, low leverage and a full industry chain — has seen its profitability\ncome under pressure in certain periods, owing to cyclical fluctuations in the\ndye industry and phases of overcapacity. That said, the cyclical trough has\nnot weakened Jihua Group's underlying industrial strength.\n\nIts financial trajectory places Jihua Group precisely at the point where an\nearnings inflection is being confirmed. In the first half of 2026 (\"1H2026\"),\nJihua Group recorded operating revenue of RMB796 million, representing a\nyear-on-year increase of 12.27%; net profit attributable to shareholders of\nthe listed company of RMB46.16 million, representing a year-on-year increase\nof 1,235.47%; net profit attributable to shareholders of the listed company\nafter deducting non-recurring gains and losses of RMB19.64 million, turning\naround from a loss in the corresponding period of the previous year; and net\ncash flows from operating activities of RMB111 million, representing a\nyear-on-year increase of 436.91%.\n\nSince the beginning of 2026, the price of H-acid, a core dye intermediate, has\nrisen from approximately RMB40,000 per tonne at the start of the year to\nRMB150,000 per tonne in early September, an increase of 275%. Jihua Group has\ntotal dye production capacity of nearly 100,000 tonnes (including 75,000\ntonnes of disperse dyes, ranking among the top three in the industry, and\n20,000 tonnes of reactive dyes), supported by upstream intermediate capacity\nof 20,000 tonnes of H-acid and 330,000 tonnes of sulphuric acid. In the\ncurrent intermediate-constrained price upcycle, Jihua Group's H-acid capacity\nprovides an important supply safeguard against rising raw-material prices.\n\nM&A and Integration at Home and Abroad: GNMI Continues to Expand Its New\nMaterials Footprint\n\nJihua Group's solid fine chemicals foundation also places high demands on the\nacquirer's industrial integration capabilities — an area in which GNMI has\naccumulated extensive hands-on experience.\n\nSince its listing in Hong Kong in 2021, GNMI has completed two landmark\noverseas acquisitions: the acquisition of CQV in Korea in 2023, and, in July\n2025, the acquisition of SUSONITY (formerly Merck Surface Solutions, the\nglobal surface solutions business of Merck, Germany, and currently the Group's\nGerman business operation) for EUR665 million — the largest overseas\nacquisition to date in China's pearlescent materials industry.\n\n1H2026 marked the first full half-year following the consolidation of the\noverseas assets into GNMI, during which the Group's global synergies continued\nto materialise. The German business operation moved past the disruptions of\nthe acquisition transition period and restored its production capacity, with\naverage monthly revenue up 32.3% compared with its initial consolidation\nperiod. Excluding foreign-exchange impacts, revenue of the Korea business\noperation increased by 17.2%. The Group advanced cross-selling across business\nsegments, coordinated supply among its six global manufacturing bases, and the\nalignment of process technologies between its domestic and overseas\noperations. The proportion of overseas revenue rose significantly to 57.5%,\nand a global structure featuring multi-region, multi-point growth has taken\nshape.\n\nThe results of this expansion are likewise borne out in the Group's financial\nstatements. In 1H2026, GNMI's revenue increased by 180.5% year-on-year to\nRMB2,558.3 million, gross profit increased by 106.3% year-on-year to RMB977.7\nmillion, and adjusted EBITDA reached RMB589.3 million, representing a\nyear-on-year increase of 36.6%.\n\nGNMI's technological strength is equally notable. The Company has synthetic\nmica as its core technological foundation. Compared with natural mica,\nsynthetic mica offers significant advantages in purity, whiteness and control\nof heavy-metal content, and serves as the entry ticket to high-end\ncosmetic-grade and automotive-grade pearlescent pigments. As one of the few\ncompanies worldwide to have mastered full-chain synthetic mica technology,\nGNMI possesses the world's largest synthetic mica production capacity. This\nadvantage at the fundamental materials level underpins the Company's pricing\npower and customer loyalty in the high-end market.\n\nAt present, under GNMI's integrated operational coordination, the Group has\nestablished a sales network covering more than 150 countries and regions\nworldwide, directly serving the supply chains of leading global end brands\nsuch as Mercedes-Benz, BMW, L'Oréal and Estée Lauder.\n\nSynergy Logic: Bridging Colour and Lustre Materials, from \"Colour\" to \"Surface\nFunctional Materials\"\n\nIf the acquisitions of the Korean and German businesses represented GNMI's\nhorizontal integration within the pearlescent pigment segment, the acquisition\nof Jihua Group will bring the Group multiple synergies of a \"vertical +\ncross-sector\" nature.\n\nFirst, the transaction achieves a strategic extension of the product\nportfolio. GNMI's pearlescent pigments are characterised by lustre and\nangle-dependent colour-shifting effects, while Jihua Group's dyes impart\ncolour to textiles. Collaboration between the two would give GNMI the\nopportunity to upgrade from an effect pigment supplier to a comprehensive\nsurface performance materials platform covering \"colour + effect + function\".\nThis change not only brings diversified revenue — Jihua Group's revenue of\nRMB1,524 million in 2025 was equivalent to approximately 52.2% of GNMI's\nrevenue for the same period — but also means that the business is expected\nto expand beyond automotive, cosmetics and industrial coatings into the\ntrillion-scale textile printing and dyeing sector.\n\nSecond, the two parties have a strong complementary foundation in research and\ndevelopment, manufacturing and market resources.\n\nGNMI excels in inorganic materials, with deep expertise in synthetic mica,\nplatelet substrates and surface modification; Jihua Group specialises in\norganic chemicals, with deep expertise in dye synthesis, intermediates and\nlarge-scale chemical production. Its subsidiary, Jihua Materials, has 6,000\ntonnes of water-based non-stick coating production capacity, and coatings\nhappen to be a core downstream application for GNMI's pearlescent pigments. In\naddition, GNMI has built a mature overseas distribution and customer service\nnetwork.\n\nSubject to compliance with their respective listing rules and relevant\nundertakings, the two parties can fully tap into their technological,\nindustrial and channel resources to explore \"organic + inorganic\" technology\nintegration and the iterative testing of pigment formulations, advance\nclosed-loop validation across raw materials, formulations and end\napplications, and jointly build a more comprehensive research and development\nplatform for colourants, coatings and specialty functional materials.\nMeanwhile, the two parties may assess market cooperation opportunities and\nstudy the potential feasibility of providing colour material solutions to\ntextile industry clusters in Southeast Asia and South Asia.\n\nOverall, as the subsequent steps of the acquisition are implemented, GNMI is\nexpected to build a richer business matrix, opening up new room for long-term\ngrowth.\n\nPro Forma Financial Information Highlights a Strengthened Balance Sheet;\nControlling Shareholder's Share Purchases Demonstrate Confidence in Long-term\nDevelopment\n\nAccording to the unaudited pro forma financial information set out in the\ncircular, assuming the transaction had been completed on 31 December 2025, the\nGroup's total assets would increase from RMB14,801 million to RMB19,636\nmillion, net assets would increase from RMB4,474 million to RMB7,787 million,\nand the gearing ratio would decrease from 56.8% to 47.1%. The pro forma\nfigures under this hypothetical scenario illustrate the strengthening effect\nthat a cash-rich company would have on the Group's financial statements.\n\nFor GNMI, this represents the third key piece of its M&A footprint, following\nthe acquisition of CQV in Korea in August 2023 and the completion of the\nSUSONITY acquisition in Germany in July 2025. The successful completion of the\nfirst two transactions has already validated the Company's platform-based\ngrowth model of acquisition, integration and continuous expansion.\n\nActions on the capital market front are progressing in parallel. On 17\nSeptember 2026, GNMI entered into a subscription agreement, and convertible\nbonds in an aggregate principal amount of RMB1.3 billion were issued on 24\nSeptember 2026. The initial conversion price of HK$10.93 per share represents\na premium of approximately 15.05% over the closing price of HK$9.50 per share\non 17 September 2026, the date on which the agreement was signed. The net\nproceeds amounted to approximately RMB1,281 million, which will be mainly used\nfor the refinancing of existing debts and replenishment of working capital.\n\nSince the beginning of this year, Dr SU Ertian has increased his shareholding\nin the Company on multiple consecutive occasions, and currently holds 36.4% of\nthe Company's shares. The controlling shareholder's share purchases with real\nmoney and the issuance of bonds at a premium together form a set of mutually\ncorroborating capital market signals.\n\nConclusion: With the Share Transfer Completed, Synergy Realisation Reaches a\nNew Starting Point\n\nLooking back on GNMI's development, its strategic path has been clear and\nresolute: building on its synthetic mica technology, integrating brands,\nchannels and production capacity through successive rounds of global M&A, and\ncontinuously upgrading towards a full-dimensional surface materials platform\ncovering colour, effect and function.\n\nAcquiring control of Jihua Group is a key step in advancing the Company's\nstrategy. The transaction completes the organic colour piece of the puzzle,\nsecures a low-leverage A-share chemical platform, opens up the new textile\nprinting and dyeing sector, and provides a vehicle for synergies in coatings\nand technology.\n\nAgainst the backdrop of the restructuring of global industrial chains, GNMI's\nentry into the fine chemicals sector by way of a Hong Kong-listed company\nacquiring control of an A-share company is both a commercially rational choice\nand a reflection of the strategic evolution of Chinese new materials\nenterprises — from \"going global\" to strengthening capabilities both at home\nand abroad. This cross-sector expansion from pigments to dyes merits the\nmarket's long-term attention.\n\nView original\ncontent:https://www.prnewswire.com/apac/news-releases/global-new-material-international-completion-of-share-transfer-for-controlling-stake-in-jihua-group--hong-kong--a-share-dual-platform-footprint-takes-shape-opening-a-new-phase-of-synergistic-growth-302895442.html\n\nSOURCE Global New Materials International\n\n\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPNAbc9HMa-20261001","title":"Global New Material International: Completion of Share Transfer for Controlling Stake in Jihua Group -- \"Hong Kong + A-share\" Dual-Platform Footprint Takes Shape, Opening a New Phase of Synergistic Growth","author":"PR Newswire","ticker":"6616","created":"2026-10-01T05:26:12.761Z","tickers":["6616"],"exchange":"HKEX","article_body":"Global New Material International: Completion of Share Transfer for\nControlling Stake in Jihua Group -- \"Hong Kong + A-share\" Dual-Platform\nFootprint Takes Shape, Opening a New Phase of Synergistic Growth\nPR Newswire\n\nHONG KONG, Oct. 1, 2026\n\nHONG KONG, Oct. 1, 2026 /PRNewswire/ -- On 30 September 2026, Global New\nMaterial International Holdings Limited (\"GNMI\" or the \"Company\", together\nwith its subsidiaries, the \"Group\"; stock code: 06616.HK) announced that, in\nrespect of the transaction under which the Company acquires approximately\n29.89% of the shares of Zhejiang Jihua Group Co., Ltd. (\"Zhejiang Jihua\",\nstock code: 603980.SH; together with its subsidiaries, the \"Jihua Group\")\nthrough Tonglu Junheng Equity Investment Partnership (Limited Partnership)\n(\"Junheng LLP\"), the registration of the share transfer was completed with\nChina Securities Depository and Clearing Corporation Limited, Shanghai Branch\non 29 September 2026. Subsequent arrangements, including the reorganisation of\nthe board of directors of Zhejiang Jihua, will proceed in accordance with the\nrelevant procedures.\n\nTurning the clock back to 6 February 2026, the date on which the acquisition\nagreement was signed: from signing to share transfer, the transaction took\napproximately eight months, passing through reviews by the stock exchanges in\nboth jurisdictions, funding arrangements and the share transfer. It stands as\none of the more smoothly executed cases in recent years of a Hong Kong-listed\ncompany acquiring control of an A-share listed company.\n\nAt first glance, market attention tends to focus on the consideration of\nRMB1,495 million paid to secure control of an A-share listed company. Looking\nbeyond the capital transaction, however, a clear industrial logic emerges. As\na global leader in surface performance materials, GNMI has consistently\npursued organic growth alongside external M&A and integration. The acquisition\nof a controlling stake in Jihua Group continues the development path\nestablished by its earlier acquisitions of CQV and SUSONITY, which broadened\nthe Group's product, technology and geographic coverage, and marks a key step\nin expanding the Group's industrial footprint.\n\nQuality of the Target: A Leading Dye Manufacturer in a Cyclical Recovery\nWindow\n\nTo understand the rationale behind GNMI's acquisition, one must first take\nstock of what Jihua Group actually brings to the table.\n\nJihua Group is no ordinary dye manufacturer. It is a leading player in China's\ndisperse dye segment and operates the world's third-largest dye production\nbase, with complete production capacity across the entire fine chemicals chain\nand self-sufficiency in disperse dyes, reactive dyes and the key intermediate\nH-acid. Against the backdrop of sharp raw-material price volatility and\ncontinuously tightening environmental standards in the dye industry, Jihua\nGroup's full-industry-chain foundation constitutes a barrier that is difficult\nto replicate.\n\nBeyond its core dye business, Jihua Group has extended into water-based\nnon-stick coatings, polyurethane foam and other businesses, and has entered\nthe pharmaceutical and healthcare sector. In June 2025, Jihua Group was\ngranted the Drug Registration Certificate for Rivastigmine Transdermal Patch\nby the National Medical Products Administration, marking a major breakthrough\nin the pharmaceutical field.\n\nIn terms of research and development, Jihua Group holds 119 patents and has\nled or participated in the formulation of 41 national and industry standards.\nIts three subsidiaries, namely Jiangsu Jihua, Jihua Jiangdong and Jihua\nMaterials, are all recognised as high-tech enterprises, and it operates\nplatforms including a national-level postdoctoral research workstation and a\nprovincial-level enterprise research and development centre.\n\nTurning to its asset base, as at 30 June 2026, Jihua Group's\nliability-to-asset ratio was only 11.15%, with current assets amounting to as\nmuch as RMB3,124 million and ample cash on its balance sheet. In addition,\nJihua Group owns production bases and industrial land totalling more than\n710,000 square metres across multiple locations in the Yangtze River Delta,\nfurther reinforcing its physical foundation.\n\nDespite its robust asset base, this fine chemicals platform — with solid\nassets, low leverage and a full industry chain — has seen its profitability\ncome under pressure in certain periods, owing to cyclical fluctuations in the\ndye industry and phases of overcapacity. That said, the cyclical trough has\nnot weakened Jihua Group's underlying industrial strength.\n\nIts financial trajectory places Jihua Group precisely at the point where an\nearnings inflection is being confirmed. In the first half of 2026 (\"1H2026\"),\nJihua Group recorded operating revenue of RMB796 million, representing a\nyear-on-year increase of 12.27%; net profit attributable to shareholders of\nthe listed company of RMB46.16 million, representing a year-on-year increase\nof 1,235.47%; net profit attributable to shareholders of the listed company\nafter deducting non-recurring gains and losses of RMB19.64 million, turning\naround from a loss in the corresponding period of the previous year; and net\ncash flows from operating activities of RMB111 million, representing a\nyear-on-year increase of 436.91%.\n\nSince the beginning of 2026, the price of H-acid, a core dye intermediate, has\nrisen from approximately RMB40,000 per tonne at the start of the year to\nRMB150,000 per tonne in early September, an increase of 275%. Jihua Group has\ntotal dye production capacity of nearly 100,000 tonnes (including 75,000\ntonnes of disperse dyes, ranking among the top three in the industry, and\n20,000 tonnes of reactive dyes), supported by upstream intermediate capacity\nof 20,000 tonnes of H-acid and 330,000 tonnes of sulphuric acid. In the\ncurrent intermediate-constrained price upcycle, Jihua Group's H-acid capacity\nprovides an important supply safeguard against rising raw-material prices.\n\nM&A and Integration at Home and Abroad: GNMI Continues to Expand Its New\nMaterials Footprint\n\nJihua Group's solid fine chemicals foundation also places high demands on the\nacquirer's industrial integration capabilities — an area in which GNMI has\naccumulated extensive hands-on experience.\n\nSince its listing in Hong Kong in 2021, GNMI has completed two landmark\noverseas acquisitions: the acquisition of CQV in Korea in 2023, and, in July\n2025, the acquisition of SUSONITY (formerly Merck Surface Solutions, the\nglobal surface solutions business of Merck, Germany, and currently the Group's\nGerman business operation) for EUR665 million — the largest overseas\nacquisition to date in China's pearlescent materials industry.\n\n1H2026 marked the first full half-year following the consolidation of the\noverseas assets into GNMI, during which the Group's global synergies continued\nto materialise. The German business operation moved past the disruptions of\nthe acquisition transition period and restored its production capacity, with\naverage monthly revenue up 32.3% compared with its initial consolidation\nperiod. Excluding foreign-exchange impacts, revenue of the Korea business\noperation increased by 17.2%. The Group advanced cross-selling across business\nsegments, coordinated supply among its six global manufacturing bases, and the\nalignment of process technologies between its domestic and overseas\noperations. The proportion of overseas revenue rose significantly to 57.5%,\nand a global structure featuring multi-region, multi-point growth has taken\nshape.\n\nThe results of this expansion are likewise borne out in the Group's financial\nstatements. In 1H2026, GNMI's revenue increased by 180.5% year-on-year to\nRMB2,558.3 million, gross profit increased by 106.3% year-on-year to RMB977.7\nmillion, and adjusted EBITDA reached RMB589.3 million, representing a\nyear-on-year increase of 36.6%.\n\nGNMI's technological strength is equally notable. The Company has synthetic\nmica as its core technological foundation. Compared with natural mica,\nsynthetic mica offers significant advantages in purity, whiteness and control\nof heavy-metal content, and serves as the entry ticket to high-end\ncosmetic-grade and automotive-grade pearlescent pigments. As one of the few\ncompanies worldwide to have mastered full-chain synthetic mica technology,\nGNMI possesses the world's largest synthetic mica production capacity. This\nadvantage at the fundamental materials level underpins the Company's pricing\npower and customer loyalty in the high-end market.\n\nAt present, under GNMI's integrated operational coordination, the Group has\nestablished a sales network covering more than 150 countries and regions\nworldwide, directly serving the supply chains of leading global end brands\nsuch as Mercedes-Benz, BMW, L'Oréal and Estée Lauder.\n\nSynergy Logic: Bridging Colour and Lustre Materials, from \"Colour\" to \"Surface\nFunctional Materials\"\n\nIf the acquisitions of the Korean and German businesses represented GNMI's\nhorizontal integration within the pearlescent pigment segment, the acquisition\nof Jihua Group will bring the Group multiple synergies of a \"vertical +\ncross-sector\" nature.\n\nFirst, the transaction achieves a strategic extension of the product\nportfolio. GNMI's pearlescent pigments are characterised by lustre and\nangle-dependent colour-shifting effects, while Jihua Group's dyes impart\ncolour to textiles. Collaboration between the two would give GNMI the\nopportunity to upgrade from an effect pigment supplier to a comprehensive\nsurface performance materials platform covering \"colour + effect + function\".\nThis change not only brings diversified revenue — Jihua Group's revenue of\nRMB1,524 million in 2025 was equivalent to approximately 52.2% of GNMI's\nrevenue for the same period — but also means that the business is expected\nto expand beyond automotive, cosmetics and industrial coatings into the\ntrillion-scale textile printing and dyeing sector.\n\nSecond, the two parties have a strong complementary foundation in research and\ndevelopment, manufacturing and market resources.\n\nGNMI excels in inorganic materials, with deep expertise in synthetic mica,\nplatelet substrates and surface modification; Jihua Group specialises in\norganic chemicals, with deep expertise in dye synthesis, intermediates and\nlarge-scale chemical production. Its subsidiary, Jihua Materials, has 6,000\ntonnes of water-based non-stick coating production capacity, and coatings\nhappen to be a core downstream application for GNMI's pearlescent pigments. In\naddition, GNMI has built a mature overseas distribution and customer service\nnetwork.\n\nSubject to compliance with their respective listing rules and relevant\nundertakings, the two parties can fully tap into their technological,\nindustrial and channel resources to explore \"organic + inorganic\" technology\nintegration and the iterative testing of pigment formulations, advance\nclosed-loop validation across raw materials, formulations and end\napplications, and jointly build a more comprehensive research and development\nplatform for colourants, coatings and specialty functional materials.\nMeanwhile, the two parties may assess market cooperation opportunities and\nstudy the potential feasibility of providing colour material solutions to\ntextile industry clusters in Southeast Asia and South Asia.\n\nOverall, as the subsequent steps of the acquisition are implemented, GNMI is\nexpected to build a richer business matrix, opening up new room for long-term\ngrowth.\n\nPro Forma Financial Information Highlights a Strengthened Balance Sheet;\nControlling Shareholder's Share Purchases Demonstrate Confidence in Long-term\nDevelopment\n\nAccording to the unaudited pro forma financial information set out in the\ncircular, assuming the transaction had been completed on 31 December 2025, the\nGroup's total assets would increase from RMB14,801 million to RMB19,636\nmillion, net assets would increase from RMB4,474 million to RMB7,787 million,\nand the gearing ratio would decrease from 56.8% to 47.1%. The pro forma\nfigures under this hypothetical scenario illustrate the strengthening effect\nthat a cash-rich company would have on the Group's financial statements.\n\nFor GNMI, this represents the third key piece of its M&A footprint, following\nthe acquisition of CQV in Korea in August 2023 and the completion of the\nSUSONITY acquisition in Germany in July 2025. The successful completion of the\nfirst two transactions has already validated the Company's platform-based\ngrowth model of acquisition, integration and continuous expansion.\n\nActions on the capital market front are progressing in parallel. On 17\nSeptember 2026, GNMI entered into a subscription agreement, and convertible\nbonds in an aggregate principal amount of RMB1.3 billion were issued on 24\nSeptember 2026. The initial conversion price of HK$10.93 per share represents\na premium of approximately 15.05% over the closing price of HK$9.50 per share\non 17 September 2026, the date on which the agreement was signed. The net\nproceeds amounted to approximately RMB1,281 million, which will be mainly used\nfor the refinancing of existing debts and replenishment of working capital.\n\nSince the beginning of this year, Dr SU Ertian has increased his shareholding\nin the Company on multiple consecutive occasions, and currently holds 36.4% of\nthe Company's shares. The controlling shareholder's share purchases with real\nmoney and the issuance of bonds at a premium together form a set of mutually\ncorroborating capital market signals.\n\nConclusion: With the Share Transfer Completed, Synergy Realisation Reaches a\nNew Starting Point\n\nLooking back on GNMI's development, its strategic path has been clear and\nresolute: building on its synthetic mica technology, integrating brands,\nchannels and production capacity through successive rounds of global M&A, and\ncontinuously upgrading towards a full-dimensional surface materials platform\ncovering colour, effect and function.\n\nAcquiring control of Jihua Group is a key step in advancing the Company's\nstrategy. The transaction completes the organic colour piece of the puzzle,\nsecures a low-leverage A-share chemical platform, opens up the new textile\nprinting and dyeing sector, and provides a vehicle for synergies in coatings\nand technology.\n\nAgainst the backdrop of the restructuring of global industrial chains, GNMI's\nentry into the fine chemicals sector by way of a Hong Kong-listed company\nacquiring control of an A-share company is both a commercially rational choice\nand a reflection of the strategic evolution of Chinese new materials\nenterprises — from \"going global\" to strengthening capabilities both at home\nand abroad. This cross-sector expansion from pigments to dyes merits the\nmarket's long-term attention.\n\nView original\ncontent:https://www.prnewswire.com/apac/news-releases/global-new-material-international-completion-of-share-transfer-for-controlling-stake-in-jihua-group--hong-kong--a-share-dual-platform-footprint-takes-shape-opening-a-new-phase-of-synergistic-growth-302895442.html\n\nSOURCE Global New Materials International\n\n\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-10-01T05:26:12.801207544Z","server_sent_at_ms":1790832372801},"received_at":"2026-10-01T05:26:12.950Z","source_url":null},"analysis":{"id":"146145","press_release_id":"157482","analysis_json":{"industry":{"label":"Chemicals","sector":"Materials"},"redFlags":["convertible bond issuance adds potential dilution; proceeds mainly for refinancing existing debt, not growth","Jihua's adjusted net profit (RMB19.64M) is far below headline net profit, indicating reliance on non-recurring gains","dye business is cyclical and has seen overcapacity-driven profitability pressure"],"eventType":"m_and_a","narrative":"GNMI completed registration of the share transfer for its ~29.89% controlling stake in A-share listed Zhejiang Jihua on 29 September 2026, roughly eight months after the acquisition agreement was signed.\n\nThe consideration was RMB1,495 million, and the deal adds a leading disperse dye producer with full-chain capacity and a cyclical earnings inflection — Jihua's 1H2026 net profit rose 1,235% YoY amid a 275% surge in H-acid prices.\n\nPro forma figures show a strengthened balance sheet: net assets rising to RMB7,787 million and gearing falling from 56.8% to 47.1%. GNMI also issued RMB1.3 billion of convertible bonds at a 15.05% premium, while controlling shareholder Dr SU Ertian has raised his stake to 36.4%.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"GNMI closes its RMB1.5B control acquisition of Jihua Group, forming a Hong Kong + A-share dual platform timed to a dye-cycle upswing."},"keyFigures":{"dealValueUsd":"RMB1,495 million","customDimensions":{"cb_premium":"15.05% over HK$9.50 close","stake_acquired":"~29.89% of Zhejiang Jihua (603980.SH)","cb_conversion_price":"HK$10.93","gnmi_1h2026_revenue":"RMB2,558.3 million (+180.5% YoY)","jihua_1h2026_revenue":"RMB796 million (+12.27% YoY)","pro_forma_net_assets":"RMB7,787 million (up from RMB4,474 million)","jihua_1h2026_net_profit":"RMB46.16 million (+1,235.47% YoY)","pro_forma_gearing_ratio":"47.1% (down from 56.8%)","convertible_bond_principal":"RMB1.3 billion","gnmi_1h2026_adjusted_ebitda":"RMB589.3 million (+36.6% YoY)"}},"quotedText":"the registration of the share transfer was completed with China Securities Depository and Clearing Corporation Limited, Shanghai Branch on 29 September 2026","namedEntities":{"people":[{"name":"Dr SU Ertian","role":"controlling shareholder (36.4% holder)"}],"products":["synthetic mica","pearlescent pigments","disperse dyes","reactive dyes","H-acid","Rivastigmine Transdermal Patch","water-based non-stick coatings"],"companies":[{"name":"Global New Material International Holdings Limited","ticker":"06616.HK","relationship":"filer/acquirer"},{"name":"Zhejiang Jihua Group Co., Ltd.","ticker":"603980.SH","relationship":"target"},{"name":"Tonglu Junheng Equity Investment Partnership (Limited Partnership)","relationship":"acquisition vehicle"},{"name":"China Securities Depository and Clearing Corporation Limited, Shanghai Branch","relationship":"registrar"},{"name":"CQV","relationship":"prior acquisition (Korea, 2023)"},{"name":"SUSONITY (formerly Merck Surface Solutions)","relationship":"prior acquisition (Germany, 2025)"},{"name":"Merck","relationship":"seller of prior German acquisition"}],"dollarAmounts":[{"amount":"RMB1,495 million","context":"consideration for Jihua Group controlling stake"},{"amount":"EUR665 million","context":"SUSONITY acquisition (July 2025)"},{"amount":"RMB1.3 billion","context":"convertible bonds issued 24 September 2026"},{"amount":"RMB1,281 million","context":"net proceeds of convertible bond issuance"},{"amount":"RMB2,558.3 million","context":"GNMI 1H2026 revenue"},{"amount":"RMB977.7 million","context":"GNMI 1H2026 gross profit"},{"amount":"RMB589.3 million","context":"GNMI 1H2026 adjusted EBITDA"},{"amount":"RMB796 million","context":"Jihua 1H2026 operating revenue"},{"amount":"RMB46.16 million","context":"Jihua 1H2026 net profit attributable"},{"amount":"RMB3,124 million","context":"Jihua current assets as at 30 June 2026"},{"amount":"RMB14,801 million","context":"Group total assets pre-transaction (31 Dec 2025 pro forma base)"},{"amount":"RMB19,636 million","context":"pro forma Group total assets"}]},"materialImpact":{"score":4,"reasoning":"Completion of the RMB1,495 million acquisition of a ~29.99% controlling stake in A-share listed Zhejiang Jihua, giving GNMI a dual Hong Kong + A-share platform and a third major M&A integration. A completed, registration-confirmed control transaction is materially significant, though not a top-tier market event for a mid-cap."},"tickerRelevance":{"others":[{"ticker":"603980.SH","relevance":"target"}],"primary":"6616"},"globalImportance":45,"audienceRelevance":25,"eventTypeSecondary":["debt_offering"],"importanceComponents":{"tickerTier":"HK mid-cap, low US retail awareness","eventGravity":"completed control acquisition of A-share company (RMB1.5B)","sectorWeight":"specialty chemicals","householdBrandBoost":0,"retailFavoriteBoost":0}},"event_type":"m_and_a","event_type_secondary":["debt_offering"],"sentiment":"bullish","material_impact_score":4,"narrative":"GNMI completed registration of the share transfer for its ~29.89% controlling stake in A-share listed Zhejiang Jihua on 29 September 2026, roughly eight months after the acquisition agreement was signed.\n\nThe consideration was RMB1,495 million, and the deal adds a leading disperse dye producer with full-chain capacity and a cyclical earnings inflection — Jihua's 1H2026 net profit rose 1,235% YoY amid a 275% surge in H-acid prices.\n\nPro forma figures show a strengthened balance sheet: net assets rising to RMB7,787 million and gearing falling from 56.8% to 47.1%. GNMI also issued RMB1.3 billion of convertible bonds at a 15.05% premium, while controlling shareholder Dr SU Ertian has raised his stake to 36.4%.","key_figures":{"dealValueUsd":"RMB1,495 million","customDimensions":{"cb_premium":"15.05% over HK$9.50 close","stake_acquired":"~29.89% of Zhejiang Jihua (603980.SH)","cb_conversion_price":"HK$10.93","gnmi_1h2026_revenue":"RMB2,558.3 million (+180.5% YoY)","jihua_1h2026_revenue":"RMB796 million (+12.27% YoY)","pro_forma_net_assets":"RMB7,787 million (up from RMB4,474 million)","jihua_1h2026_net_profit":"RMB46.16 million (+1,235.47% YoY)","pro_forma_gearing_ratio":"47.1% (down from 56.8%)","convertible_bond_principal":"RMB1.3 billion","gnmi_1h2026_adjusted_ebitda":"RMB589.3 million (+36.6% YoY)"}},"named_entities":{"people":[{"name":"Dr SU Ertian","role":"controlling shareholder (36.4% holder)"}],"products":["synthetic mica","pearlescent pigments","disperse dyes","reactive dyes","H-acid","Rivastigmine Transdermal Patch","water-based non-stick coatings"],"companies":[{"name":"Global New Material International Holdings Limited","ticker":"06616.HK","relationship":"filer/acquirer"},{"name":"Zhejiang Jihua Group Co., Ltd.","ticker":"603980.SH","relationship":"target"},{"name":"Tonglu Junheng Equity Investment Partnership (Limited Partnership)","relationship":"acquisition vehicle"},{"name":"China Securities Depository and Clearing Corporation Limited, Shanghai Branch","relationship":"registrar"},{"name":"CQV","relationship":"prior acquisition (Korea, 2023)"},{"name":"SUSONITY (formerly Merck Surface Solutions)","relationship":"prior acquisition (Germany, 2025)"},{"name":"Merck","relationship":"seller of prior German acquisition"}],"dollarAmounts":[{"amount":"RMB1,495 million","context":"consideration for Jihua Group controlling stake"},{"amount":"EUR665 million","context":"SUSONITY acquisition (July 2025)"},{"amount":"RMB1.3 billion","context":"convertible bonds issued 24 September 2026"},{"amount":"RMB1,281 million","context":"net proceeds of convertible bond issuance"},{"amount":"RMB2,558.3 million","context":"GNMI 1H2026 revenue"},{"amount":"RMB977.7 million","context":"GNMI 1H2026 gross profit"},{"amount":"RMB589.3 million","context":"GNMI 1H2026 adjusted EBITDA"},{"amount":"RMB796 million","context":"Jihua 1H2026 operating revenue"},{"amount":"RMB46.16 million","context":"Jihua 1H2026 net profit attributable"},{"amount":"RMB3,124 million","context":"Jihua current assets as at 30 June 2026"},{"amount":"RMB14,801 million","context":"Group total assets pre-transaction (31 Dec 2025 pro forma base)"},{"amount":"RMB19,636 million","context":"pro forma Group total assets"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-10-01T05:26:22.663Z","global_importance":45,"audience_relevance":25,"importance_components":{"tickerTier":"HK mid-cap, low US retail awareness","eventGravity":"completed control acquisition of A-share company (RMB1.5B)","sectorWeight":"specialty chemicals","householdBrandBoost":0,"retailFavoriteBoost":0}},"durationMs":9693,"modelName":"glm-5.3-flashx"}}