Dawn's merger and acquisition plan for Dawn Titanium is released, a key step forward for Dawn Group's overall listing

Dawn (002838) has made new progress in acquiring a controlling stake in Dawn Titanium. On the evening of November 11, Dawn Shares 'plan to acquire a controlling stake in Dawn Titanium was released. The company planned to acquire 100% equity of Dawn Titanium by issuing shares and paying cash. Trading of the company's shares resumed on November 12.

Wang Youqing, Secretary of the Board of Directors of Dawn, told a reporter from Securities Daily: "Mergers and acquisitions are an important way to promote effective allocation of resources, assist industrial integration, and improve quality and efficiency. Regulators have recently introduced mergers and acquisitions policies to encourage listed companies to achieve high-quality development through mergers and acquisitions. The M & A transaction launched by the company this time is not only in line with national policy guidance, but also in line with the requirements of high-quality development of the industry, achieving industrial integration, transformation and upgrading through mergers and acquisitions."

Strengthen industrial synergy

"New chemical materials have become a key force in promoting technological innovation and structural upgrading in the chemical industry." Song Qinghui, founder of Qinghui think tank, told a reporter from Securities Daily that the main products of the company targeted by Dawn's acquisition include new inorganic chemical materials such as titanium dioxide and ferrous sulfate, which are complementary to Dawn's existing new polymer materials business. By integrating resources and strengthening synergy effects, the company will further promote the company's technological innovation and product optimization.

After the completion of this transaction, Dawn shares will realize the extension of its business segment to the upstream of the industrial chain. Wang Youqing said: "Dawn Titanium's titanium dioxide can be used as a colorant to have direct and significant correlation and synergy with the company's functional polymer materials, special engineering materials and masterbatch businesses, which can better meet the needs of new energy vehicles, consumer electronics, electronic appliances and other markets for upgrades and improvements."

In terms of products, the two sides will also achieve coordinated development in innovation and upgrading of high-performance lithium battery cathode materials. The target company's product ferrous sulfate can be used to prepare lithium iron phosphate and lithium ferromanganese phosphate, which can be used as the cathode main material of high-performance lithium batteries. The listed company's product, Hydrogenated nitrile rubber (HNBR), can be used as the cathode material of high-performance lithium batteries. As a binder, after the business integration of both parties, they can work together to innovate and upgrade high-performance lithium battery cathode materials. In addition, the target company can prepare iron oxide red, iron oxide black and iron oxide yellow with ferrous sulfate as raw material, further enriching the color and types of polymer materials of listed companies and enhancing the competitiveness of listed companies 'products.

In terms of R & D, Dawn Titanium will accumulate new nano-titanium dioxide in the future and create synergy with listed companies in future development layout areas such as insulation materials, shielding materials and carbon nanotubes in R & D and application, promoting the joint efforts of both parties in ultra-high voltage cable materials. Collaborative research and development, collaborative management and collaborative sales in strategic emerging areas such as national defense and military applications will create new development opportunities for listed companies to continue to transform and upgrade their businesses into new quality productivity fields.

"The acquisition of Dawn shares will help further enhance the company's profitability and market competitiveness." Zhang Yi, CEO and chief analyst of Ai Media Consulting, believes that Dawn Titanium is one of the leading companies in China's titanium dioxide industry with good product quality and profitability. After completing the merger, it will help listed companies increase their performance safety mat, enhance their ability to resist risks, and reserve new momentum for future performance growth.

Achieve the overall listing of the group's core assets

This transaction is also an important measure for the overall listing of Dawn Group's core assets. As an original private enterprise, Dawn Group has become a modern enterprise group focusing on the research and development, production, sales and application of new materials after more than 30 years of development. This transaction is an important step for Dawn Group to achieve the overall listing of its core assets. It will make full use of the favorable conditions of the capital market to accelerate the development of the group.

Recently, after the introduction of the national policy to encourage mergers and acquisitions, Dawn Titanium's original plan to list in A-shares through IPO was changed, and finally chose to be acquired by Dawn, a listed company under the same real controller.

Sky Eye inspection shows that the controlling shareholder of Dawn Titanium is Dawn Group, with a shareholding ratio of 94.86%. The controlling shareholder of Dawn shares is also Dawn Group. The company's third quarterly report shows that Dawn Group holds 44.2% of the listed company.

In the new stage of the transformation of China's economy from rapid development to high-quality development, Dawn Group has proposed "focusing on one circle and three chains, strengthening the three major industries, refining related enterprises, doing a good job in joint ventures, realizing three modernizations, and moving towards two hundred billion yuan." The overall strategy of the group.

Wang Youqing said that the polymer new materials industry and the titanium industry are two important industries under the Dawn Group. Through this transaction, the polymer new materials industry and the titanium industry continue to strengthen integration and coordination, improve management efficiency, and achieve mutual empowerment between the two business segments. Empowering and giving full play to the overall industrial advantages of 1+1>2.

With the overall listing of the Group's titanium assets, the business of listed companies will expand into the upstream inorganic fine chemical field in the future, and the synergy between the Group's two major industrial sectors will be further amplified. Listed companies will also continue to absorb and integrate high-quality resources around the concept and connotation of new chemical materials to accelerate the realization of the strategic long-term goals of listed companies.