PASHUN INT'L (00574) issued a profit warning: expected net loss for 2025 to increase by 20 to 27 million yuan compared to the previous year.

PASHUN INT'L (00574) announced that the Group is expected to incur a net loss of RMB 20 million to 27 million in the unaudited comprehensive income statement for the current year (year ending December 31, 2025), compared to a net loss of RMB 15.3 million for the year ending December 31, 2024. The increase in net loss is mainly due to several products of the Group being included in the national organized drug centralized procurement program implemented by the government of the People's Republic of China in 2025. The national organized drug centralized procurement program is an important policy implemented by the government to lower drug prices and reduce the burden of drug costs on the public. In accordance with the pricing mechanism of this national policy, the Group adjusted the selling prices of the relevant selected products, resulting in a significant narrowing of the gross profit margin of the affected products, thereby adversely affecting the overall profitability of the Group for the current year.