China Traditional Chinese Medicine Holdings Co. Limited has issued a profit warning, indicating a significant decline in net profit for the first half of 2025. The company expects a year-on-year decrease in net profit by 165% to 175% for the period ending June 30, 2025. This downturn is primarily attributed to a decline in revenue and profitability from its concentrated traditional Chinese medicine (TCM) granules business. The decline is due to increased competition and a higher proportion of centralized procurement business. Additionally, the company has made a provision for goodwill impairment regarding the assets group related to the TCM granules business, which is non-cash in nature. This measure aims to position the company for future financial improvement, although it will not affect the cash flow. Shareholders and potential investors are advised to exercise caution when dealing with the company's securities.