Global New Materials International (06616) is forecasting a medium-term loss of about 50 million yuan to 100 million yuan to a year-on-year profit loss

According to Zhitong Finance App News, Global New Materials International (06616) announced that the Group is expected to record revenue of about RMB 2.5 billion to RMB 2.7 billion (same unit) for the six months ended June 30, 2026 (same unit), an increase of about 180%-200% over the same period in 2025.

During the review period, it is expected to record a loss of about 50 million yuan to 100 million yuan, while a profit of about 100 million yuan was recorded for the same period in 2025.

Earnings before interest, taxes, depreciation and amortization (EBITDA) are expected to be recorded during the review period of approximately $450 million to $500 million, an increase of about 30%-45% over the same period in 2025; adjusted EBITDA of about $500 million to $600 million, an increase of about 16%-39% over the same period in 2025.

The Group's losses during the review period were mainly due to the Group's completion of the acquisition (acquisition) of Merck Group (Merck)'s global surface solutions business in July 2025, which resulted in the following non-cash and one-time items relating to the acquisition: (i) fair value adjustments and amortization of intangible assets, approximately $130 million to $140 million; (ii) one-time transaction costs and professional expenses related to the acquisition and delivery, approximately $20 million to $30 million; and (iii) total business consolidation costs of $60 million- 70 million yuan, including the Transitional Service Agreement (TSA) fees paid to Merck for the operation of the German business, as well as other costs and expenses required by the Group in connection with the acquisition.

During the review period, the Group confirmed non-cash fair value income of about 100 million yuan to 110 million yuan (same period in 2025: confirmed fair value loss of about 1 million yuan) and generated financing expenses of about 70 million yuan to 80 million yuan (same period in 2025: financing expenses of about 27 million yuan). The combined net effect of the above two on the Group's profit before tax during the period under review was net profit of approximately RMB 20 million to RMB 40 million (same period in 2025: net loss of approximately RMB 28 million).

The fair value earnings described above are non-cash, fluctuate with changes in the Company's stock price and other market parameters, and may turn into fair value losses in the future period, and do not reflect the Group's core operating performance.

Most of the above projects are non-cash (such as fair value adjustments, amortization of intangible assets) or one-time costs associated with acquisitions, and have not had a significant adverse impact on the Group's production and operating cash flow and daily operations. The expected losses recorded during the review period are phased accounting results during the merger and acquisition consolidation period. As business integration progresses, synergy effects are released, and subsequent debt structure optimization, medium- to long-term profit levels have room for repair.