Newtrend Group Holding (2573) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 54.3% YoY to RMB334.798m; net profit increased to RMB24.375m from RMB3.551m, driven by higher sucralose and food-grade glycine sales.

• H shares listed in June, raising net proceeds of HK$164.15m; overseas production in Indonesia and Thailand supported sales amid trade-policy uncertainty.

Financial highlights

• Gross profit rose to RMB77.948m from RMB22.098m; gross margin expanded 13.1 percentage points to 23.3%.

• Profit before tax was RMB28.353m versus RMB2.377m; income tax expense was RMB3.978m versus a tax credit of RMB1.174m.

• Basic and diluted EPS was RMB0.28 versus RMB0.04; net profit margin was 7.3% versus 1.6%.

• Listing expenses were RMB12.661m versus RMB7.633m; expected-credit-loss impairment was RMB4.2m versus RMB0.9m.

• Operating cash flow was an outflow of RMB13.143m versus an inflow of RMB9.580m.

Outlook and guidance

• H2 priorities include deploying listing proceeds, pursuing growth, reducing costs, improving efficiency and strengthening internal controls amid trade uncertainty.

• Plans include expanding Thailand sucralose capacity, producing isomalt in Thailand and leveraging the Indonesia plant to mitigate trade and tariff risks.

• Product development targets include seaweed dietary fiber, serine, curcumin and dietary syrup; R&D capacity and international sales networks are also set to expand.