Modern Chinese Medicine Group Co., Ltd. (MODERN CHI MED, 01643) reported a net loss of RMB13.56 million for the year ended 31 December 2025, reversing a profit of RMB9.67 million in 2024. The downturn was driven by a 32.2% contraction in revenue to RMB145.17 million, primarily attributed to the loss of certain distributors, removal of key products from China’s national medical-insurance list and price reductions under volume-based procurement.
Gross profit dropped 57.3% to RMB23.56 million, compressing the gross margin to 16.2% from 25.8% a year earlier. Selling and distribution expenses rose 40.4% to RMB31.33 million, reflecting heavier advertising outlays, while administrative and other operating expenses edged down 3.4% to RMB8.77 million after the suspension of R&D spending. Finance costs remained negligible at RMB6,000.
Basic and diluted loss per share stood at RMB2.05 cents, versus earnings of RMB1.61 cents in 2024. The board proposed no final dividend.
Balance-sheet highlights: • Cash and cash equivalents: RMB229.71 million (2024: RMB229.67 million) • Net assets: RMB497.99 million (2024: RMB484.23 million) • Gearing ratio: 0.01% (unchanged) • Capital expenditure: RMB36.30 million, mainly for plant and machinery.
During 2025 the company issued 120 million new shares at HK$0.27 each, raising net proceeds of HK$32.38 million (about RMB29.51 million) earmarked for potential Chinese-medicine investments and R&D enhancement.
Regional sales mix: Northeast China contributed 60.8% of revenue, Northern 16.5%, Southern 15.2%, Eastern 5.7%, Southwest 1.1% and Northwest 0.7%.
Post-year-end, on 19 January 2026 the group agreed to acquire a 30% stake in AI Health Global Holdings, whose subsidiaries hold Hong Kong PCM manufacturing licences.
The company recorded no material contingent liabilities, asset charges or foreign-exchange exposure and maintained a staff count of 189 at end-2025.
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