Global New Material International Holdings Limited released its audited results for the year ended 31 December 2025.

Revenue and Profitability • Revenue surged 76.9% year-on-year to RMB2.92 billion, supported by the first-time consolidation of the newly acquired German Surface Solutions business. • Gross profit grew 30.5% to RMB1.14 billion, but the gross margin fell to 39.1% from 53.0% due to fair-value inventory adjustments at acquisition and the lower-margin cost base of the German operation. • The Group recorded a net loss of RMB306.36 million versus a profit of RMB320.27 million in 2024; adjusted net profit, which excludes one-offs related to the acquisition, was RMB254.71 million, 20.4% lower year-on-year. • Adjusted EBITDA increased 37.7% to RMB843.69 million.

Segment Performance • PRC Business Operation: revenue RMB1.64 billion, up 23.1%, representing 56.2% of group sales. • Korea Business Operation: revenue RMB285.49 million, down 9.8% in RMB terms, contributing 9.8%. • Germany Business Operation (consolidated from 1 Aug 2025): revenue RMB991.66 million, accounting for 34.0%.

Product Mix • Pearlescent pigments remained the core driver, generating RMB2.53 billion (86.9% of total), up 65.8%. • Functional mica filler revenue rose 89.8% to RMB176.07 million. • Cosmetic active ingredients, added through the acquisition, contributed RMB187.43 million, or 6.4% of sales.

Geographical Sales • China accounted for 62.1% of revenue. • Europe and North America saw sharp expansion to RMB409.61 million and RMB208.44 million, respectively, reflecting new high-end customer penetration.

Costs and Expenses • Cost of goods sold more than doubled to RMB1.76 billion. • Selling expenses climbed to RMB412.75 million and administrative/other operating expenses to RMB595.21 million, largely owing to the German unit’s five-month consolidation and professional fees. • Finance costs increased 181.5% to RMB333.38 million as borrowings rose to fund the transaction.

Balance Sheet and Liquidity • Total assets more than doubled to RMB14.80 billion; goodwill rose to RMB1.32 billion post-acquisition. • Cash and bank balances stood at RMB3.75 billion; interest-bearing borrowings, including convertible bonds, expanded to RMB7.49 billion, lifting the gearing ratio to 56.8%. • Capital commitments totalled RMB932.00 million, mainly for new production capacity and post-merger projects.

Strategic Developments • The EUR665 million purchase of Merck KGaA’s Surface Solutions business closed on 31 July 2025, adding six global R&D centres and six manufacturing bases across Europe, Asia and the Americas. • A 100,000-tonne synthetic mica facility in Tonglu was completed and entered trial production in February 2026. • No final dividend was declared for 2025.

Post-balance-sheet Events • In January 2026 the company issued HK$1.00 billion of 5-year, HKD-denominated convertible bonds at an initial conversion price of HK$10.19 per share. • On 20 January 2026 Global New Material issued 9.57 million new shares to raise its stake in subsidiary Chesir Pearl to 99.76%.

Outlook Management will focus on integrating the German operation, ramping up new synthetic mica capacity and strengthening cash generation while maintaining a prudent capital structure.