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.