Modern Chi Med Group issues a profit warning, expecting interim profit attributable to shareholders to be no less than HKD 2 million, turning from loss to profit year-on-year
MODERN CHI MED expects that the interim profit attributable to shareholders for the period ending June 30, 2025, will not be less than HKD 2 million, achieving a turnaround from a loss of HKD 6.9 million in the same period of 2024. The improvement in performance is mainly attributed to a significant reduction in losses from the disposal of properties, plants, and equipment, although revenue is expected to decrease by 15% to 20% due to intense industry competition
According to the announcement from MODERN CHI MED (01643), the group expects to achieve a profit attributable to equity holders of no less than RMB 2 million for the six months ending June 30, 2025, while it anticipates a loss of approximately RMB 6.9 million for the six months ending June 30, 2024. The board believes that the turnaround from loss to profit is mainly due to a significant reduction in losses from the disposal of properties, plants, and equipment. For the six months ending June 30, 2024, the group incurred substantial losses from the disposal of properties, plants, and equipment due to the demolition of the formulation workshop.
Nevertheless, the revenue for this period is expected to decrease by 15% to 20% compared to the six months ending June 30, 2024. The board believes that the revenue decline is primarily due to intense industry competition
