Newtrend Group Holding Co., Ltd. Issues Significant Profit Warning for FY2025

Key Highlights from the Announcement

• Profit Decline Expected: Newtrend Group Holding Co., Ltd. has issued a profit warning, expecting a substantial decrease in profit for the year ended 31 December 2025.
• Magnitude of Decline: The company anticipates profit to fall by approximately 60% to 80% compared to the previous financial year (2024).
• Reason for Decline: The Board attributes the expected decrease primarily to:
  • A reduction in net foreign exchange gains
  • An increase in administrative expenses
  • Higher credit impairment costs
  • Rising finance costs
• Nature of Announcement: The figures are based on a preliminary review of unaudited management accounts and other information currently available. The numbers have not been audited or reviewed by the company’s auditors.
• Final Results Pending: The company is still in the process of finalizing its annual results for FY2025. The final figures may differ from those disclosed in this profit warning.
• Results Announcement Date: Newtrend Group expects to announce its final results for FY2025 on 31 March 2026.

Important Information for Shareholders

• Potential Impact on Share Price: This profit warning is a material development and could have a significant impact on the company’s share price. Shareholders and potential investors should be aware of the possibility of negative market reaction due to the anticipated sharp drop in profit.
• Exercise Caution: The Board explicitly advises shareholders and potential investors to exercise caution when dealing in the shares of the company, given the uncertainty surrounding the final results and the magnitude of the expected decline.
• Price Sensitive Information: The expected decrease in profit is considered inside information and is likely to be price sensitive, as per Hong Kong listing rules.

Board Composition

The Board currently consists of:

• Executive Directors: Mr. Wang Xiaoqiang (Chairman), Mr. Wang Hao, Ms. Chen Lijun, Mr. Wu Dingfeng, Ms. Zuo Yue
• Non-Executive Director: Mr. Xiao Fan
• Independent Non-Executive Directors: Dr. Song Jingjin, Dr. Li Ling, Mr. Lo Kwing Yu

Summary and Investor Guidance

Newtrend Group Holding Co., Ltd. has warned of a sharply lower profit for FY2025, driven by decreased foreign exchange gains and rising costs. Investors should monitor the company’s official results announcement on 31 March 2026 for definitive figures. The Board’s caution to investors underscores the potential volatility and risk associated with the shares in the near term.

Disclaimer: This article is based on the company’s official profit warning announcement and preliminary financial information. The final audited results may differ from the estimates provided. Investors should conduct their own due diligence and consult professional advisors before making any investment decisions. The information here should not be construed as investment advice.

View NEWTREND GROUP Historical chart here