GLOBAL NEW MAT (06616) has announced that the group expects to record a shareholder net loss in the range of RMB 370 million to RMB 390 million for the 2025 fiscal year. The group's overall loss for 2025 is projected to be between RMB 280 million and RMB 320 million. The difference between the shareholder net loss and the overall loss is primarily attributed to the varying commencement dates of ownership for different business segments. This contrasts with the fiscal year ended December 31, 2024, during which the group achieved a shareholder net profit of approximately RMB 242 million and an overall profit of about RMB 320 million.

The board of directors attributes the anticipated loss for the 2025 fiscal year mainly to the following factors: (a) **Increased Acquisition-Related Costs and Financial Expenses:** The group completed the acquisition of the global surface solutions business from the Merck Group on July 31, 2025. This acquisition resulted in: (i) one-off transaction costs and professional fees related to the acquisition amounting to approximately RMB 220 million; and (ii) fair value adjustments and amortization of intangible assets arising from the acquisition totaling about RMB 180 million. (b) **Business Integration Expenses:** Following the completion of the acquisition, the group is in the initial stages of global business integration. This includes costs under the Transitional Services Agreement (TSA) paid to Merck for the operation of the German business, as well as other costs and expenses borne by the group related to the spin-off from Merck, amounting to approximately RMB 140 million, which are reflected in the 2025 fiscal year.