China Traditional Chinese Medicine Holdings Co (HK:0570) has released an update.
China Traditional Chinese Medicine Holdings Co. Limited has issued a profit warning, expecting a substantial 60-70% drop in net profit for the first half of 2024 compared to the previous year. This decline is attributed to reduced sales and profitability in their concentrated TCM granules business, increased credit impairment losses due to long-aging trade receivables, and the impact of remedial taxes on certain subsidiaries. The company’s privatization proposal by Sinopharm Common Wealth Company Limited is also underway, as indicated by a pre-conditional offer announced earlier.
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