HK Stock Market Move | TRAD CHI MED (00570) fell nearly 4% after issuing a profit warning, with an expected 90%-100% decline in net profit for 2024 compared to the previous year.

TRAD CHI MED (00570) fell by nearly 4% after issuing a profit warning, dropping by 3.9% to HK$1.97 as of the time of writing, with a turnover of HK$152 million. On the news front, TRAD CHI MED announced that the group is expecting a 90%-100% year-on-year decline in net profit for 2024, and a 50%-60% year-on-year decrease in adjusted net profit for the current period. The board believes that the decline in net profit for the current period is mainly due to factors such as price reductions in bulk procurement, intensified market competition, and high costs of medicinal materials affecting the sales volume and profitability of the traditional Chinese medicine granule business. Additionally, impairments on credits, goodwill, and plant have increased, as well as the repayment of taxes by some of the company's subsidiaries, causing a significant impact on the group's net profit for the current period. The adjusted net profit is the net profit after deducting the following impacts: provisions for impairments on goodwill and plant based on the current operational situation, as well as the repayment of taxes by some subsidiaries.