Newtrend Group announced a revised use of its remaining IPO net proceeds, shifting resources away from lower-than-expected seaweed dietary fibre and serine projects toward two core-business initiatives.

• Original allocation: HK$90.80 million was earmarked for seaweed dietary fibre and serine production. To date, HK$5.60 million has been spent on a 100-tonne pilot line for seaweed dietary fibre, leaving HK$85.20 million unutilised.

• New allocation: – HK$69.00 million will fund construction of the Jingzhou glycine production base, designed for annual output of 60,000 tonnes of industrial-grade and 40,000 tonnes of food-grade glycine. The facility targets scale efficiencies, automated production, and lower logistics and raw-material costs in Central China. – HK$16.20 million will support a sucralose technology transformation project aimed at raising product yield by over 20% and cutting unit costs by about 20%; completion is expected by end-2027.

• Rationale: – Market feedback and orders for seaweed dietary fibre remain weak; existing pilot capacity is deemed sufficient for R&D and small-batch needs through 2028. – Industry analysis indicates surplus serine capacity, prompting a suspension of the planned serine expansion until market conditions improve. – Redirecting funds to glycine and sucralose aligns with current demand, cost-control priorities and clearer implementation timelines.

The board states that the reallocation is consistent with Newtrend Group’s strategic focus on strengthening its core glycine business, enhancing competitiveness, and optimising capital efficiency, without altering the company’s principal operations. All other information in the 15 May 2026 AGM circular remains unchanged.