Global New Material International Holdings Limited (Stock code: 06616) published an announcement detailing a series of transactions consisting of: (1) establishing a limited partnership named Junheng LLP; (2) a possible grant of a put option; (3) acquiring 29.89% of Zhejiang Jihua Group (listed on the Shanghai Stock Exchange); and (4) resuming trading of its shares.

Junheng LLP was formed to acquire 202,308,716 shares of Zhejiang Jihua for RMB1,494.5 million. Shenzhen Chesir, a wholly owned subsidiary of Global New Material International, acts as the general partner with a 40% contribution, while Hongzun LLP, associated with Dr. Su (a connected person), contributes the remaining 60%. The acquisition cost will be funded by both partner contributions (totaling RMB700 million) and external resources such as bank borrowings.

The deal involves a potential put option that, if granted, allows Hongzun LLP to sell up to 60% of its Junheng LLP interest to Shenzhen Chesir (or its affiliates). This arrangement, pending further agreement, could become both a connected and a major transaction once exercised.

Upon completion of the share transfer, Global New Material International plans to consolidate the financial results of Zhejiang Jihua as a non-wholly owned subsidiary. As the acquisition’s size exceeds 25% but is below 100% under the relevant Listing Rules, it is classified as a major transaction requiring shareholders’ approval at an extraordinary general meeting.

Innovax Capital Limited has been appointed as the Independent Financial Adviser to advise on these arrangements. A circular with further details will be dispatched on or before 27 March 2026. Trading in Global New Material International’s shares, halted on 9 February 2026, has resumed from 12 February 2026. The company cautions investors that these transactions may or may not proceed, depending on whether certain conditions precedent are fulfilled.