MODERN CHI MED's stock plummeted 6.13% during intraday trading on Tuesday.
The sharp decline followed the company's release of its full-year 2025 financial results, which showed a significant deterioration in performance. Modern Chinese Medicine Group swung to a net loss of RMB13.56 million for the year ended December 31, 2025, reversing a profit of RMB9.67 million in 2024.
Revenue fell 32.2% to RMB145.17 million, which management attributed to the loss of certain distributors, the removal of key products from China's national medical-insurance list, and price reductions under volume-based procurement reforms. The gross margin compressed to 16.2% from 25.8% a year earlier.
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