HK Stock Market Move | GLOBAL NEW MAT (06616) rose nearly 9% in the afternoon with the company recently increasing its holdings in CQV shares. The increase in production capacity supports sales growth.

GLOBAL NEW MAT (06616) rose nearly 9% in the afternoon, up 8.49% as of the time of writing, at 6.52 Hong Kong dollars, with a turnover of 181 million Hong Kong dollars. On the news front, GLOBAL NEW MAT plans to redeem $40 million convertible bonds on November 8. The company previously announced that it had collectively purchased 1.1218 million shares of CQV, a non-wholly owned subsidiary of the company, from July to October this year. After the increase in shareholding, the company now holds a total of 5.5118 million shares of CQV, accounting for approximately 50.75% of the total number of shares issued by CQV. Sinolink released a research report stating that the domestic operating entity of GLOBAL NEW MAT's seven-color production capacity plan, currently has a pearlescent pigment production capacity of 33,000 tons, with a future plan for a pearlescent pigment production capacity of 48,000 tons, and a combined capacity of 2,600 tons at the CQV South Korean base. Capacity deployment supports sales growth. The planned synthetic mica production capacity of 100,000 tons at the Tonglu factory is expected to be completed and put into operation in 25H2, with expectations for the expansion of the second phase in Guangxi and the acquisition of CQV/Merck to provide capacity digestion channels for synthetic mica, as well as the current domestic synthetic mica base cost still being higher than the natural mica base, expecting a cost-reducing expansion to bring a moment of cost breakthrough.