GLOBAL NEW MAT (06616) saw its stock price plummet by 9.85% in Friday's trading session, following the release of its 2025 interim results. The significant drop reflects investors' concerns over the company's mixed financial performance for the first half of the year.

According to the interim report, Global New Material International Holdings Ltd. posted a revenue of RMB 912 million for the six months ended June 30, 2025, marking a 17.7% increase from the same period in 2024. However, the company's bottom line told a different story. Net profit for the period fell by 31.1% year-on-year to RMB 99.6 million, while earnings per share (EPS) dropped to RMB 0.05 from RMB 0.09 in the previous year. The stark contrast between revenue growth and profit decline appears to be the primary driver behind the stock's sharp decrease.

Despite some positive indicators, such as a 54.4% increase in net profit excluding non-recurring items and a 48.4% rise in adjusted EBITDA to RMB 431.3 million, investors seem to be focusing on the overall profit decline. The company's decision not to declare an interim dividend, consistent with its policy from the previous year, may have also contributed to the negative market sentiment. As Global New Material International continues to invest in enhancing its product portfolio and expanding its market share both domestically and internationally, the market reaction suggests that investors may be concerned about the company's ability to translate top-line growth into improved profitability in the near term.