GLOBAL NEW MAT (06616) surged nearly 9% in afternoon trading, reaching HK$6.52 with a turnover of HK$181 million. The company announced plans to redeem $40 million in convertible bonds due on November 8.

From July to October, GLOBAL NEW MAT purchased 1.1218 million shares of its non-wholly owned subsidiary CQV, increasing its total stake to 5.5118 million shares, or approximately 50.75% of CQV's issued shares.

Analysts noted that GLOBAL NEW MAT's domestic subsidiary, Qise, currently has a pearlescent pigment capacity of 33,000 tons, with long-term plans to expand to 48,000 tons. CQV's South Korean facility contributes an additional 2,600 tons.

The company's Tonglu factory is set to commence production of 100,000 tons of synthetic mica in the second half of 2025. Further expansion in Guangxi and the acquisition of CQV/Merck are expected to provide additional channels for synthetic mica capacity utilization. While current domestic synthetic mica production costs remain higher than natural mica, cost reductions through expansion are anticipated to reach a critical inflection point.