China Traditional Chinese Medicine Holdings Limited (00570) has announced that the Group expects to record a shift from profit to loss for the fiscal year ending December 31, 2025. The estimated net loss is projected to be in the range of approximately RMB 350 million to RMB 500 million, compared to a net profit of about RMB 20.77 million in the same period last year. Furthermore, the adjusted net profit for the current period is expected to decrease by 45% to 55% year-on-year, having been approximately RMB 635.5 million in the prior year. The Board of Directors attributes the Group's shift to a loss in the current period primarily to the following factors: the revenue scale and profitability of the traditional Chinese medicine formula granules business have declined due to the increased proportion of centralized procurement and intensified market competition; impairments for goodwill, intangible assets, and credit have increased during the period. The adjusted net profit is calculated by excluding the impact of the following items: impairments related to goodwill and associated asset groups; and back taxes paid by certain subsidiaries.
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