China Traditional Chinese Medicine (570) H2 2025 earnings summary

Executive summary

• Revenue declined 10.7% year-over-year to RMB14.74 billion, mainly due to lower sales in concentrated TCM granules and Chinese medicinal herbs integration segments.

• Net loss for the year was RMB458.1 million, compared to a profit of RMB20.8 million last year, driven by increased impairments and market pressures.

• Adjusted net profit (excluding impairments and remedial taxes) was RMB333.4 million, down 47.5% year-over-year.

• Gross profit margin improved slightly to 48.1%, up 0.5 percentage points, due to cost optimization and sales structure improvements.

• The group undertook strategic restructuring, focusing on core businesses and disposing of non-core assets to improve long-term asset quality.

Financial highlights

• Revenue: RMB14.74 billion (down 10.7% year-over-year).

• Gross profit: RMB7.09 billion (down 9.7% year-over-year).

• Net loss: RMB458.1 million (vs. profit of RMB20.8 million last year).

• Adjusted net profit: RMB333.4 million (down 47.5% year-over-year).

• Basic loss per share: RMB6.79 cents (vs. earnings of RMB1.07 cents last year).

• Current ratio: 2.3; gearing ratio: 11.8% (improved from 18.5%).

• No final dividend proposed for 2025.

Outlook and guidance

• 2026 marks the start of a new strategic cycle, focusing on operational quality, efficiency, and core business growth.

• Plans include enhancing supply chain integration, digital transformation, innovation in R&D, and compliance reinforcement.

• The group aims to leverage policy support for TCM, expand in primary healthcare, and strengthen its leadership in the industry.