The Board of Modern Chinese Medicine Group Co., Ltd. announced a profit warning, indicating an expected net loss of no less than RMB13.00 million for the financial year ended 31 December 2025. This contrasts with the net profit of approximately RMB9.70 million recorded in FY2024.

The reversal from profit to loss is primarily attributed to four factors: 1. Loss of certain distributors, which directly affected sales channels. 2. Removal of best-selling products, including Cardiotonic Enhancement Capsule, from the national medical insurance list amid ongoing healthcare reforms, leading to lower demand. 3. Reduced purchase orders that kept unit fixed costs elevated. 4. Margin pressure from price reductions on other products that remain within the medical insurance catalogue.

The figures are based on the Group’s unaudited management accounts and may be adjusted upon completion of the annual audit. Modern Chinese Medicine expects to publish its full FY2025 results by the end of March 2026.

Shareholders and potential investors are advised to exercise caution when dealing in the Company’s securities.