NEWTREND GROUP (02573) issued a profit warning, expecting a mid-term loss of approximately 48.8 million to 65.8 million yuan, a year-on-year turn from profit to loss.

NEWTREND GROUP (02573) announced that it expects the group to report a loss of approximately RMB 48.8 million to RMB 65.8 million for the six months ending June 30, 2026, compared to an unaudited net profit of approximately RMB 24.4 million for the six months ended June 30, 2025. The Board believes that the anticipated shift from profit to loss during the reporting period is mainly due to (i) ongoing uncertainties in global trade policies, coupled with a weak macroeconomic environment, leading to a slowdown in market demand; (ii) continued intense competition in the market and a worsening of price competition in the industry, resulting in a decrease in the average selling price of sales orders, which negatively impacts the groups revenue and leads to a decrease in operating income compared to the same period last year; (iii) ongoing increases in raw material costs and other production costs during the reporting period, putting pressure on the group's gross margin; and (iv) fluctuations and appreciation of the RMB exchange rate resulting in an increase in the groups net exchange loss compared to the same period last year.