Newtrend Group Holding (2573) H1 2026 earnings summary

Executive summary

• H1 2026 revenue fell 39.1% YoY to RMB204.022m; gross result swung to a RMB2.2m loss from RMB77.9m profit, and net result to a RMB64.733m loss from RMB24.375m profit.

• Weaker demand, intense price competition, higher input and production costs, and a RMB20.973m net foreign-exchange loss pressured results; no interim dividend was declared.

Financial highlights

• Revenue was RMB204.022m versus RMB334.8m; cost of sales was RMB206.207m versus RMB256.9m, resulting in a gross margin of -1.1% versus 23.3%.

• Loss before tax was RMB69.2m versus profit before tax of RMB28.4m; net loss was RMB64.733m versus net profit of RMB24.375m, with loss per share of RMB0.67 versus earnings per share of RMB0.28.

• Administrative expenses rose to RMB27.282m from RMB19.915m, finance costs to RMB9.069m from RMB4.614m; H1 included RMB12.661m of listing expenses.

• Operating cash outflow was RMB46.321m versus RMB13.143m; investing cash outflow was RMB72.2m and financing cash inflow was RMB120.6m.

Outlook and guidance

• Priorities include core products, cost reduction, efficiency, stronger internal controls, R&D and overseas market expansion, alongside execution of domestic projects and annual operating indicators.

• Thailand is targeting higher isomalt capacity utilisation by end-2026; Indonesia curcumin capacity is expected to reach designed levels gradually in Q4 2026.

• Jingzhou glycine base preparation is scheduled to finish by Dec 2027, production to start Jan 2028 and full production to be reached Jan 2031, subject to approvals, construction and market conditions.

• Ji'an plant construction is scheduled to begin in Sep 2026 and finish by Dec 2027, with full commissioning targeted by end-Dec 2028; planned products include dietary fibre, prebiotics and functional sugar alcohols.