Shandong Dawn Polymer (002838.SZ) plans to increase its share capital to purchase 100% equity of Daon Titanium Industry, expanding the titanium industry chain related business. It will resume trading on November 12th.

Shandong Dawn Polymer (002838.SZ) released a pre-plan for issuing shares, paying cash to purchase assets, raising matching funds, and related party transactions. The listed company intends to purchase 100% equity of Dawn Titanium, a company held by 13 trading parties including Dawn Group, in the form of issuing shares and paying cash and to raise matching funds from up to 35 specific investors. As of the signing date of this pre-plan, the asset audit and evaluation work of the target assets of this transaction have not been completed, and the estimated value and transaction price have not been determined. In this transaction, the trading parties Dawn Group and Song Huidong are related parties of the listed company. Dawn Group is the controlling shareholder of the listed company, and Song Huidong is a director of the listed company. Apart from this, the other trading parties in this transaction have no relationship with the listed company. It is reported that the target company, Dawn Titanium, has been committed to the research, production, and sales of titanium dioxide materials for a long time. Its main products include rutile titanium dioxide, ferrous sulfate, and polymeric ferric sulfate, widely used in downstream markets such as plastics, masterbatches, chemical fibers, rubber, coatings, inks, papermaking, cosmetics, and water purification agents. With the research and reserve of new technologies and products by the target company, the future products of the target company have great application prospects in frontier areas such as photovoltaics, lithium batteries, supercapacitors, environmental purification and protection, and high-performance coating. The listed company and the target company both belong to the category of chemical new materials. In the existing field of plastic applications, titanium dioxide is an important raw material for the listed company's production of modified plastics, masterbatches, dyes, etc. With the further consolidation and expansion of the listed company's main business, the mutual relevance and synergy in the product chain and industry chain between the two sides will be further strengthened. Apart from product synergy, both parties have the business foundation for customer co-development and co-marketing in downstream applications such as automobiles, home appliances, and consumer electronics. After the completion of this transaction, with the continuous layout of strategic emerging materials by the listed company, the product and technology reserves of both parties will have extensive synergies in high-end power batteries, ultra-high-voltage cables, photovoltaic industry, and the application of national defense and military industry products. Through this transaction, Dawn Titanium will become a wholly-owned subsidiary of Shandong Dawn Polymer, and the main business of the listed company will add titanium industry-related businesses on the basis of the original business. In terms of industrial chain layout, the business chain of the listed company will further extend to the upstream, helping the listed company reduce related transactions, lower production costs, enhance research and development synergy, improve product competitiveness, and perfect the industrial chain. The integration of titanium industry-related businesses by the listed company will significantly promote the improvement of product quality, accelerate the development of new products, layout future industries, and continuously meet the diverse new material needs of customers. After applying to the Shenzhen Stock Exchange, the company's stock will resume trading from November 12, 2024 (Tuesday).