TRAD CHI MED: INSIDE INFORMATIONPROFIT WARNING

TRAD CHI MED has issued a profit warning, estimating that the net profit for the year ending December 31, 2024, will decline by 90%-100% year-on-year, and the adjusted net profit will decline by 50%-60% year-on-year. The significant drop in profit is primarily influenced by three major factors: a reduction in procurement prices, intensified market competition, and high costs of medicinal materials affecting the sales scale and profitability of the Chinese medicine granule business; an increase in credit impairment, goodwill impairment, and factory impairment in the current period; and additional tax payments made by certain subsidiaries.The Board of Directors emphasizes that the adjusted net profit has deducted the effects of goodwill and factory impairment provisions, as well as the impact...Show More

TRAD CHI MED has issued a profit warning, estimating that the net profit for the year ending December 31, 2024, will decline by 90%-100% year-on-year, and the adjusted net profit will decline by 50%-60% year-on-year. The significant drop in profit is primarily influenced by three major factors: a reduction in procurement prices, intensified market competition, and high costs of medicinal materials affecting the sales scale and profitability of the Chinese medicine granule business; an increase in credit impairment, goodwill impairment, and factory impairment in the current period; and additional tax payments made by certain subsidiaries.The Board of Directors emphasizes that the adjusted net profit has deducted the effects of goodwill and factory impairment provisions, as well as the impact of the additional tax payments from subsidiaries. The Board believes that by eliminating the effects of non-operational or non-recurring expenses, it will provide investors with more effective News for assessing the group's operating performance. The company expects to publish the annual results announcement for 2024 by the end of March 2025. The Board stated that the aforementioned decline in adjusted net profit will not adversely affect the group's ongoing operating capability.