HK Stock Market Move | TRAD CHI MED (00570) continues to fall by over 3%. The company expects a year-on-year decrease in net profit of 90%-100% for the full year.

TRAD CHI MED (00570) continued to fall by more than 3%, with the stock falling by over 6% yesterday. As of the time of writing, it has dropped by 3.13% to 1.86 Hong Kong dollars, with a trading volume of 70.85 million Hong Kong dollars. On the news front, TRAD CHI MED previously issued a profit warning, expecting the group's net profit for 2024 to decrease by 90%-100% year-on-year; adjusted net profit for this period to decrease by 50%-60% year-on-year. The decline in net profit is mainly due to multiple factors such as reduced purchasing prices, intensified market competition, and high costs of Chinese herbal ingredients affecting the sales scale and profitability of the Chinese herbal granule business. Additionally, there is an increase in credit impairment, goodwill impairment, and factory impairment; as well as certain subsidiary companies of the company having to pay back taxes.