China National Pharmaceutical Group (08156) issues profit warning, expecting annual net loss attributable to owners not exceeding 1 million Hong Kong dollars, a significant decrease of approximately 95% year-on-year.

The China Medicine Technology Co., Ltd. (08156) announced that it is expected that the group will achieve a net loss attributable to owners of the company of not more than HK$1 million for the year ending June 30, 2025, representing a significant decrease of approximately 95% compared to the previous year. The board of directors believes that the significant improvement in the group's financial performance during the reporting period is mainly attributable to the net effects of the following factors, including: (i) Business improvement resulting in a year-on-year increase in gross profit of approximately HK$9.2 million or 184%; (ii) Strengthened cost control of administrative and operating expenses; (iii) Capitalization of loan costs resulting in capitalized interest income of approximately HK$3.9 million during the reporting period; and (iv) Reduction in financing costs during the reporting period due to loan capitalization.