Global New Material Issues Profit Warning: H1 Revenue to Soar 180%–200% but One-Off Costs Swing Results to RMB50-100 Million Loss

Bulletin Express
Aug 10

Global New Material International Holdings Limited (Global New Material) expects a sharp top-line expansion for the six months ended 30 June 2026 yet forecasts a return to the red due to non-cash and one-off expenses arising from its July 2025 acquisition of Merck’s global surface-solution business.

Revenue Outlook • Management projects revenue of RMB2.50 billion–2.70 billion, up 180%–200% from RMB0.91 billion in the prior-year period, reflecting the first full-period consolidation of the acquired business.

Profitability Guidance • The company anticipates a net loss of RMB0.05 billion–0.10 billion versus a RMB0.10 billion profit a year earlier. • Core operating performance remains positive: EBITDA is estimated at RMB0.45 billion–0.50 billion, 30%–45% higher year on year, while adjusted EBITDA (excluding acquisition-related items) should reach RMB0.50 billion–0.60 billion, up 16%–39%.

Key Non-Cash and One-Off Drivers 1. Fair-value adjustments and amortisation of intangible assets linked to the Merck acquisition: RMB0.13 billion–0.14 billion. 2. Transaction and professional fees: RMB0.02 billion–0.03 billion. 3. Business-integration expenses, including Transitional Service Agreement payments: RMB0.06 billion–0.07 billion. 4. Finance items: • Fair-value gain on the derivative component of convertible bonds: RMB0.10 billion–0.11 billion (prior-year period: RMB0.001 billion loss). • Finance costs: RMB0.07 billion–0.08 billion (prior-year period: RMB0.027 billion). • Combined, these finance items contribute a net pre-tax gain of RMB0.02 billion–0.04 billion, partly offsetting acquisition-related charges.

Liquidity and Operations Management emphasises that most negative items are either non-cash or one-off in nature and therefore do not materially affect operating cash flow. Integration of the acquired assets is ongoing, and the board expects medium- to long-term profitability to improve as synergies materialise and the capital structure is optimised.

Reporting Schedule The unaudited interim results are slated for release by end-August 2026. Shareholders and potential investors are advised to exercise caution when trading in the company’s shares.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10