Global New Material International Holdings Limited reported its first full six-month results after integrating the acquired Merck Surface Solutions business.
Revenue climbed 180.5 % year on year to RMB2.56 billion, driven by the first-time full-period consolidation of the German operation, which contributed 59.5 % of Group revenue. The PRC and Korea operations accounted for 34.1 % and 6.4 %, respectively.
Gross profit rose 106.3 % to RMB977.74 million, though the margin contracted to 38.2 % from 52.0 %. Key drags were (i) a one-off RMB118.00 million inventory fair-value adjustment linked to the German acquisition, (ii) higher structural costs at production sites in Germany, the United States and Japan, and (iii) early-stage ramp-up costs at the new 100,000-tonne synthetic-mica plant in Hangzhou.
Selling expenses increased 681.4 % to RMB425.39 million, reflecting German business marketing costs and amortisation of acquired intangibles. Administrative and other operating expenses grew 233.6 % to RMB403.53 million, including transitional-service fees to Merck and global governance investments.
Finance costs almost doubled to RMB293.54 million, mainly due to additional borrowings for the 2025 German acquisition and the HKD1.00 billion convertible bond issued in January 2026.
After one-off acquisition-related items, the Group recorded a net loss of RMB93.36 million versus a RMB99.63 million profit a year earlier. Adjusted for these items, net profit stood at RMB43.50 million, while adjusted EBITDA increased 36.6 % to RMB589.30 million, implying a 23.0 % margin.
Cash and cash equivalents reached RMB4.63 billion, up from RMB3.75 billion at end-2025, outpacing the rise in total borrowings to RMB8.71 billion. Net debt narrowed slightly to RMB4.08 billion. Gearing (interest-bearing debt/total assets) edged up to 57.7 %.
Product mix shifted: pearlescent effect pigments delivered 82.2 % of revenue, functional fillers 6.6 %, and cosmetic actives—added through the German business—10.7 %. Direct sales to end-users rose to 59.2 % of total sales from 18.4 % a year earlier.
Strategic developments • The Hangzhou Tonglu synthetic-mica plant began commissioning in February 2026; Phase I targets 30,000 tonnes annually. • Cross-selling has launched 60 products from the PRC unit through the German network, reaching over 40 countries. • Global R&D capabilities expanded with the June opening of the Frankfurt Innovation and Application Centre. • In January 2026 the Group issued HKD1.00 billion 4.25 % convertible bonds, fully deployed for working capital, refinancing and general corporate use. • In May the Group placed a JPY4.63 billion sustainability-linked bond due 2028 at 3.6 %. • A conditional agreement was signed to acquire 29.89 % of Shanghai-listed Zhejiang Jihua Group for RMB1.49 billion; completion awaits regulatory and shareholder approvals.
Outlook Management will prioritise: stabilising the German integration, accelerating synthetic-mica ramp-up, tightening working-capital and cost controls, and advancing the Zhejiang Jihua transaction. Focus remains on automotive and new-energy-vehicle coatings, high-end cosmetics, and functional-material applications to convert global scale into sustainable cash flow and capital returns.
No interim dividend was declared.
Comments