Global New Material International Holdings Limited (stock code: 06616) has issued a profit warning for the financial year ended 31 December 2025 (FY2025), projecting a loss attributable to shareholders between RMB370.00 million and RMB390.00 million. The anticipated loss for the period contrasts sharply with the RMB242.00 million profit recorded in FY2024.

\n\nKey drivers of the expected downturn include:

1. Acquisition-related costs and finance expenses—approximately RMB220.00 million in one-off transaction and professional fees, plus about RMB180.00 million in fair-value adjustments and intangible-asset amortisation—stemming from the 31 July 2025 completion of the global surface solutions business acquisition from Merck KGaA.

2. Business integration expenses—roughly RMB140.00 million tied to transitional service agreement fees and spin-off costs following the acquisition.

\n\nManagement underscored that most of the above expenses are either non-cash (e.g., amortisation) or non-recurring, thus having limited impact on operating cash flow.

\n\nOperationally, revenue for FY2025 is expected to reach RMB2.80 billion–RMB3.00 billion, representing a year-on-year increase of approximately 72%–80%. The Group also anticipates a positive EBITDA for the period, reflecting underlying business resilience.

\n\nAudited FY2025 results are scheduled for release by the end of March 2026. The Board advises shareholders and potential investors to exercise caution when dealing in the Company’s shares until the final figures are confirmed.