GLOBAL NEW MAT (06616) participated in the establishment of a partnership enterprise to acquire 29.89% of Zhejiang Jihua's (603980.SH) shares. Resume trading on February 12th.

Global New Mat (06616) announces that the contracting parties have entered into a share transfer agreement, with Jun Heng Limited Partnership conditionally agreeing to purchase the shares of Jihua Sales upon the fulfillment of certain conditions. The sellers (Hangzhou Jinhui and Mr. Shao Hui) have conditionally agreed to sell the Jihua Sales shares. Jun Heng Limited Partnership was established for the purpose of the acquisition, with Shenzhen Qise (a wholly-owned subsidiary of the company) acting as the general partner and Hongzun Limited Partnership as the limited partner. Jun Heng Limited Partnership was formed with Shenzhen Qise and Hongzun Limited Partnership as partners, with initial contributions based on a percentage (40% from Shenzhen Qise and 60% from Hongzun Limited Partnership). According to the agreement, the total contribution made by the partners to Jun Heng Limited Partnership amounts to RMB 700 million. The shares for sale by Jihua consist of a total of 202 million shares of Zhejiang Jihua (603980.SH), representing 29.89% of the total issued shares of Zhejiang Jihua. Hangzhou Jinhui will conditionally sell 196 million shares of the Jihua shares, while Mr. Shao will conditionally sell 6.3087 million shares of the Jihua shares. The purchase price according to the share transfer agreement is RMB 1.4945 billion. Additionally, the company may grant a put option to increase its participation in the acquisition. Under the put option, Hongzun Limited Partnership has the right to sell up to 60% of its equity interest in Jun Heng Limited Partnership to Shenzhen Qise (or its holding company or affiliated company) at the put option price, which will be acquired by Shenzhen Qise (or its holding company or affiliated company). By establishing Jun Heng Limited Partnership with initial contributions based on the percentage, the company only needs to provide partial funds towards the purchase price. Specifically, Shenzhen Qise only holds a 40% equity interest in Jun Heng Limited Partnership, corresponding to the proportion of the company's contribution to Jun Heng Limited Partnership. Therefore, the establishment of this entity effectively spreads the risk of being the sole investor/buyer of the Jihua shares, with other partners of Jun Heng Limited Partnership sharing part of the risks associated with the acquisition. Another core function of Jun Heng Limited Partnership is to achieve risk isolation. By including specific assets or projects (including the Jihua shares) in Jun Heng Limited Partnership, its assets and liabilities are completely independent of the company or other related parties. The specific risks of Jun Heng Limited Partnership (such as project failure or debt default) will not affect the company. This isolation mechanism effectively safeguards the financial stability of the company and protects shareholder interests. Jun Heng Limited Partnership can serve as an independent financing platform, using its assets and cash flow to support borrowing from financial institutions or issuing bonds. Given the relatively transparent asset quality of Jun Heng Limited Partnership and its risk isolation from the company, its financing costs may be lower than those generated through direct financing by the company. In terms of the acquisition, in addition to using the funds that the partners of Jun Heng Limited Partnership plan to contribute, the partnership will also obtain bank financing to pay the full purchase price. The acquisition is based on Jun Heng Limited Partnership's recognition of the intrinsic value of Zhejiang Jihua Group and their confidence in its future prospects, intending to acquire control of Zhejiang Jihua through the acquisition. After completion, the acquisition will expand the company's market share in the coatings and chemical industry, positively impacting its market value management in the A-share market and global market, thereby benefiting the company's long-term development. The company has applied to the Stock Exchange for trading of shares to resume from 9:00 am on February 12, 2026 (Thursday).