TRAD CHI MED (HKEX: 00570) has announced an anticipated net loss for the six-month period ending June 30, 2026, in the range of 800 million to 850 million yuan. This compares to a loss of approximately 142 million yuan for the same period last year.

The board of directors attributes the increased loss to several key factors. Firstly, sales revenue and profitability within the traditional Chinese medicine formula granules business have declined due to industry policy adjustments and shifting market conditions, leading to a further impairment of goodwill.

Secondly, both the proprietary Chinese medicine segment and the medicinal materials production and trading operations have experienced decreases in revenue scale and profitability.

Thirdly, the period's results were also impacted by increased asset impairments, credit impairment losses, and additional tax payments required by certain subsidiaries.

The board emphasized that the aforementioned goodwill impairment is a non-cash item, representing a necessary step to improve the group's financial position going forward. In response to an increasingly stringent external regulatory environment, the group stated it will actively review its existing business models. It plans to address intensifying industry competition and ongoing macroeconomic challenges by enhancing operational efficiency, optimizing resource allocation, and reforming its marketing strategies.