GLOBAL NEW MAT (06616) issues profit warning. It is expected that shareholders will incur a loss of between 370 million to 390 million in 2025, compared to a profit in the same period last year.

GLOBAL NEW MAT (06616) announced that the Group is expected to incur a loss attributable to shareholders ranging from RMB 370 million to RMB 390 million in the financial year 2025. The Group's expected loss for the financial year 2025 is between RMB 280 million and RMB 320 million. The difference between the loss attributable to shareholders and the loss is mainly due to the different commencement dates of ownership of different businesses by the Group. In comparison, for the financial year ended December 31, 2024, the Group recorded a profit attributable to shareholders of approximately RMB 242 million and a profit of approximately RMB 320 million. The Board of Directors believes that the expected loss in the financial year 2025 is mainly attributed to the following factors: (a) Increase in acquisition-related costs and financial expenses: The Group completed the acquisition of Merck Group's Global Surface Solutions Business on July 31, 2025 (the Acquisition). The Acquisition resulted in: (i) one-off transaction costs and professional fees related to the Acquisition of approximately RMB 220 million; and (ii) fair value adjustments and amortization of intangible assets related to the Acquisition of approximately RMB 180 million. (b) Business integration costs: Following the completion of the Acquisition, the Group is in the initial stage of global business integration, including transitional service agreement (TSA) costs paid by the German business operations to Merck, and other costs and expenses incurred by the Group as a result of the separation from Merck, amounting to approximately RMB 140 million, which are reflected in the financial year 2025.