---
title: "Global New Material Flags 2025 Loss on Merck Deal Costs Despite Strong Revenue Growth"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/279688011.md"
description: "Global New Material International Holdings Limited (HK:6616) expects a significant loss of RMB370 million to RMB390 million in 2025, despite a revenue increase of 72% to 80%, reaching approximately RMB2.8 billion to RMB3.0 billion. The loss is attributed to one-off acquisition costs related to the purchase of Merck’s global surface solutions business. Management indicates that these costs are primarily accounting-related and do not impact operating cash flow. The company aims to enhance market share and brand influence while navigating short-term earnings pressure. Analysts rate the stock as a Buy with a target price of HK$10.00."
datetime: "2026-03-18T23:08:33.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/279688011.md)
  - [en](https://longbridge.com/en/news/279688011.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/279688011.md)
---

# Global New Material Flags 2025 Loss on Merck Deal Costs Despite Strong Revenue Growth

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Global New Material International Holdings Limited ( (HK:6616) ) just unveiled an update.

Global New Material International warned that it expects to swing from a 2024 profit to a substantial loss in 2025, with loss attributable to shareholders projected at RMB370 million to RMB390 million despite revenue jumping about 72% to 80% to roughly RMB2.8 billion to RMB3.0 billion. The downturn is largely driven by one-off acquisition-related transaction costs, fair value adjustments, intangible amortisation and integration expenses linked to its purchase of Merck’s global surface solutions business, though most charges are non-cash or non-recurring and the group still anticipates positive EBITDA while pursuing global integration, capital structure optimisation and market expansion to support long-term growth.

Management stresses that the acquisition and integration costs have not materially hurt operating cash flow or daily operations, suggesting the loss is primarily accounting in nature. The company is focusing on unlocking synergies between legacy and acquired operations, strengthening financial resilience, consolidating technological advantages and broadening its global customer base to enhance market share and brand influence while navigating short-term earnings pressure.

The most recent analyst rating on (HK:6616) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Global New Material International Holdings Limited stock, see the HK:6616 Stock Forecast page.

**More about Global New Material International Holdings Limited**

Global New Material International Holdings Limited is a Cayman Islands-incorporated company listed in Hong Kong that operates in advanced materials, with a focus on global surface solutions. The group is expanding internationally following its acquisition of Merck KGaA’s global surface solutions business, aiming to leverage technology, scale and an enhanced customer base to grow its market presence.

**Average Trading Volume:** 7,550,130

**Technical Sentiment Signal:** Buy

**Current Market Cap:** HK$10.09B

For a thorough assessment of 6616 stock, go to TipRanks’ Stock Analysis page.

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