HK Stock Market Move | TRAD CHI MED (00570) opened nearly 4% lower after issuing a profit warning. The company expects its annual net profit to decline by 90-100% compared to the previous year.

TRAD CHI MED (00570) opened nearly 4% lower after issuing a profit warning, falling 3.9% to HK$1.97 as of the time of writing, with a trading volume of HK$7.308 million. According to reports, TRAD CHI MED announced that the group is expecting a 90%-100% year-on-year decrease in net profit for the year 2024, with a 50%-60% year-on-year decrease in adjusted net profit. The decline in profit is mainly due to factors such as lower procurement prices, intensified market competition, high costs of Chinese herbal medicines affecting the sales scale and profit level of traditional Chinese medicine granule business; increased provisions for credit impairments, impairment of goodwill and plant assets; and payment of overdue taxes by some of the company's subsidiaries. It is worth noting that on October 18, 2024, TRAD CHI MED announced that the plan for its controlling shareholder, China National Pharmaceutical Group, to privatize TRAD CHI MED at a price of HK$4.6 per share has been officially called off due to conditions not being met. It was reported that in February 2024, TRAD CHI MED announced that China National Pharmaceutical Group planned to privatize TRAD CHI MED at a price of HK$4.6 per share.