NEWTON RES (01231) issued a profit warning, expecting a mid-term net loss of approximately 1.1 million USD, an increase compared to the same period last year.

NEWTON RES (01231) announced that the Group expects to incur a net loss of approximately $1.1 million for the six-month period ending June 30, 2026 (the current period), compared to a net loss of approximately $400,000 for the six-month period ending June 30, 2025 (the same period last year). The expected decline in the Group's performance during the current period is primarily due to a decrease in revenue and gross profit compared to the same period last year. This decline is attributed to two factors: (i) the supply of iron ore from the Group's main suppliers during the current period has decreased compared to the same period last year and the quality is relatively lower, leading to a decline in the Group's sales; and (ii) due to weak demand from customers for the Group's lower-grade iron ore during the current period, the Group prioritized lowering inventory risk and accelerating sales, resulting in a decrease in gross profit margin.