Xinhuajin recently announced that the company intends to purchase a 50% stake in Qingdao Senhui Graphite Co., Ltd. (referred to as Qingdao Senhui) held by related party Shandong Xinhuajin New Materials Technology Co., Ltd. (referred to as New Materials Company) for RMB40.75 million in cash. Xinhuajin will take this merger as a starting point for its entering into the new graphite material field and related industrial chains and target the new graphite material business as its new strategic development direction.

Xinhuajin said that the graphene industry is currently in its infancy, and the company is optimistic about its future development. It will use this merger and acquisition as an opportunity to enter the graphene-related industries and hope to achieve outcomes in the preparation and application of graphene.