Newtrend Group (NEWTREND GROUP) released its first post-listing annual report, posting mixed operating metrics and a qualified audit opinion.
Revenue and Earnings For the year ended 31 December 2025, revenue rose 2.5% year on year (YoY) to RMB 583.20 million, supported by higher sucralose sales. Despite a 6.6% rise in gross profit to RMB 108.58 million and a 0.7 percentage-point improvement in gross margin to 18.6%, net profit dropped 69.9% to RMB 13.06 million. Net margin narrowed sharply to 2.2% from 7.6% a year earlier. Basic earnings per share fell to RMB 0.14 from RMB 0.51. The Board proposes no final dividend.
Cost and Expense Dynamics Administrative expenses expanded by RMB 18.28 million to RMB 49.14 million, while finance costs climbed to RMB 10.31 million (2024: RMB 2.79 million). Foreign-exchange gains fell by RMB 9.43 million, further eroding profitability. Listing expenses of RMB 12.66 million and a RMB 9.84 million net expected-credit-loss charge also weighed on earnings.
Segment Performance • Sucralose revenue jumped 17.6% to RMB 279.23 million, becoming the largest contributor (48% of group sales). • Food-grade glycine declined 6.4% to RMB 223.71 million. • Industrial-grade glycine dropped 29.0% to RMB 47.13 million. • Other products, including curcumin and isomalt, generated RMB 33.13 million, up 27.3%.
Balance-Sheet Movements Total assets expanded 39.2% to RMB 1.13 billion, driven by a 73.9% surge in current assets to RMB 685.66 million. Trade and bills receivables climbed 51.8% to RMB 340.95 million, with 58.2% past due. Cash and bank balances stood at RMB 168.54 million, up 227.5% YoY.
Interest-bearing debt increased markedly: bank borrowings reached RMB 194.60 million (2024: RMB 74.70 million) and other borrowings totalled RMB 88.66 million. The current ratio improved to 1.9, yet net operating cash outflow amounted to RMB 35.31 million versus an inflow of RMB 4.30 million in 2024.
Qualified Auditor’s Opinion Confucius International CPA issued a qualified opinion, citing insufficient evidence to validate a HK$65 million (approximately RMB 58.49 million) cash-management note subscribed during the year. Uncertainty around the note’s commercial substance, underlying assets and payment flows prevented the auditor from verifying its valuation and classification.
Capital Expenditure and IPO Proceeds Capital commitments totalled RMB 4.26 million at year-end. Of the HK$164.15 million net proceeds from the June 2025 Hong Kong listing, HK$22.83 million had been deployed by 31 December 2025, mainly for R&D and working capital; HK$141.32 million remains earmarked for isomalt, seaweed dietary fiber/serine projects and R&D expansion.
Post-Balance-Sheet Event On 3 March 2026, the Stock Exchange approved the conversion of 41.08 million domestic shares into H shares under the company’s full-circulation scheme; further announcements will follow upon completion of the conversion and listing procedures.
Outlook Management plans to deepen overseas market penetration, ramp up Thailand and Indonesia capacities, and broaden the product mix to include curcumin, isomalt and dietary-fibre lines, while enhancing R&D and supply-chain controls amid evolving international trade dynamics.
No other material subsequent events or contingent liabilities were reported.
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