According to the Zhitong Finance App, China Traditional Chinese Medicine (00570) announced that the Group expects a loss of about RMB 800 million to RMB 850 million for the six months ending June 30, 2026, and a loss of about RMB 142 million for the same period last year.

The Board of Directors believes that (i) the Chinese medicine formula granule business was affected by industry policy adjustments and changes in the market environment, leading to further impairment of goodwill; (ii) the revenue scale and profitability of the Chinese herbal medicine business and the production and operation of Chinese herbal medicines declined; and (iii) the increase in asset impairment, credit impairment, and supplementary tax payments of some subsidiaries during the current period also had an impact on losses. The Board of Directors emphasized that the above impairment of goodwill is non-cash and is a necessary measure to improve the Group's financial situation in the future. Facing an increasingly strict external regulatory environment, the Group will actively investigate the existing business model and effectively address the ongoing challenges brought about by increased industry competition and the macroeconomic environment by improving operating efficiency, optimizing resource allocation, and reforming marketing models.

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