Newtrend Group Holding (2573) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 2.5% YoY to RMB583.2m and gross profit increased 6.6% to RMB108.6m, while profit for the year fell 69.9% to RMB13.1m.

• Profit pressure reflected administrative expenses up RMB18.3m, net foreign-exchange gain down RMB9.4m, and finance costs up RMB7.5m.

• Cash and bank balances increased to RMB168.5m, but operating cash flow was an outflow of RMB35.3m; the auditor issued a qualified opinion relating to a RMB58.5m cash management note.

Financial highlights

• Revenue was RMB583.2m vs RMB568.9m in 2024; gross profit was RMB108.6m vs RMB101.9m.

• Profit for the year and attributable profit were RMB13.1m vs RMB43.4m; basic and diluted EPS were RMB0.14 vs RMB0.51.

• Administrative expenses rose to RMB49.1m from RMB30.9m; listing expenses were RMB12.7m vs RMB10.2m.

• Net foreign-exchange loss was RMB1.3m vs a gain of RMB8.2m; impairment loss under the expected credit loss model rose to RMB9.8m from RMB5.6m.

Outlook and guidance

• Thailand isomalt utilization is planned to increase significantly by end-2026; capacity ramp-up and market expansion are expected to support revenue and profit.

• Indonesia curcumin expansion is planned to finish in H1 2026, with commissioning and production thereafter and designed capacity targeted within Q3 2026; annual capacity is expected to reach 250 metric tons.

• Growth priorities include overseas market expansion, product diversification, expanded R&D capability, cost reduction and efficiency gains, and use of listing proceeds for business growth.