CHI MED (00570) issues profit warning, expecting a net loss of approximately 350 to 500 million yuan in 2025.

TRAD CHI MED (00570) announced that the group is expected to change from profit to loss for the year ending December 31, 2025, with an estimated net loss ranging from RMB 350 million to 500 million, compared to a net profit of approximately RMB 207.7 million in the same period last year. The adjusted net profit for the current period is expected to decrease by 45% to 55% compared to the same period last year, which was around RMB 635.5 million. The board of directors believes that the main reasons for the group's change from profit to loss this period are: a decrease in revenue and profitability due to the increase in the proportion of centralized procurement business and intensified market competition in the Chinese medicine granule business; an increase in impairment of goodwill, impairment of intangible assets, and credit impairment in this period; and the adjusted net profit is the net profit after deducting the following impacts: impairment of goodwill and related asset groups; and payment of tax arrears by some subsidiaries.