Sinocera Receives Up to RMB 700 Million Guarantee Credit Line, Exclusively for the Acquisition of Dental Consumables Supplier SDI

Source: Shandong Sinocera Functional Material Co., Ltd.'s announcement regarding its wholly-owned subsidiary's application for SDI project loans from banks and the company's provision of guarantees for such loans and hedging margin.

DentalGoodNews｜June 15, 2026 - Shandong Sinocera Functional Material Co., Ltd. (hereinafter referred to as "Sinocera") announced that its wholly-owned subsidiary, InnoXvest PTY. LTD, intends to apply for a maximum of RMB 600 million in acquisition loans and RMB 100 million in hedging credit from the Shenzhen Branch of China Merchants Bank Co., Ltd. This funding will be specifically used to pay for the transaction consideration, fees, and related costs for acquiring 100% equity of Australian-listed company SDI Limited (hereinafter referred to as "SDI").

Sinocera was founded in 2005 and primarily engages in functional ceramic materials and biomedical materials. The borrowing entity, InnoXvest PTY. LTD, is a wholly-owned subsidiary of Sinocera registered in Australia on April 16, 2026, with a registered capital of AUD 1,000, mainly focusing on the R&D, production, and marketing of dental restorative materials. The target company, SDI, was established in 1972 and is headquartered in Melbourne, specializing in the manufacture of professional dental materials, with products sold in multiple countries and regions.

According to the agreement, the acquisition loan amount is RMB 600 million, with a loan term of 60 months, using a floating interest rate with quarterly interest payments. The hedging credit line is RMB 100 million, with a term of 12 months; the total limit for corresponding foreign exchange derivative hedging contracts does not exceed AUD 166,411,742 or equivalent in foreign currency, in the form of forward contracts, with the credit validity period from June 14, 2026, to June 13, 2027, aimed at locking in exchange rate fluctuation risks during the SDI acquisition process. Sinocera, as the parent company, provides joint and several liability guarantee for all the above debts, with a total maximum amount of RMB 700 million.

As of the disclosure date of this announcement, the total guarantee amount of the company and its controlled subsidiaries is RMB 900 million, and the total balance of guarantees provided accounts for 12.58% of the company's latest audited net assets.

According to previous reports by DGN, Sinocera announced in February 2026 its plan to fully acquire SDI at a price of AUD 1.40 per share (total price approximately RMB 816 million).

Currently, the transaction still requires filing or approval procedures from relevant government authorities in China and Australia.