1. What Happened?: NEWON’s H1 2025 Performance Breakdown

NEWON reported revenue of KRW 23.27 billion in H1 2025, a significant increase year-over-year. However, operating income swung to a loss of KRW -9.22 billion, with a net loss of KRW -10.16 billion. Despite strong sales growth in the health functional food and household goods segments, weak performance in the specialized machinery business and high selling, general, and administrative expenses (SG&A) eroded profitability.

2. Why is this Happening?: Six Years of Losses and a Precarious Financial Position

NEWON has recorded operating losses for six consecutive years and faces serious financial challenges, including excess current liabilities exceeding KRW 180 billion and accumulated losses of over KRW 130 billion. The high SG&A ratio (104.7%) further complicates profitability improvements. Concerns about the company’s ability to continue as a going concern are mounting.

3. What to Do Now?: Action Plan for Investors

In the short term, investors should exercise extreme caution with NEWON. Without improvements in the operating loss structure, financial difficulties are likely to persist. In the medium to long term, close monitoring of performance improvements in the machinery business, profitability in the health food/household goods segment, and normalization of the financial structure is crucial. Pay close attention to the Q3 earnings release and the execution of specific business plans. Currently, the investment risk is very high, requiring careful consideration before making any investment decisions.