Modern Chinese Medicine Group (01643) has issued a profit warning, indicating that it expects to record a net loss of approximately RMB 25.9 million for the six months ending June 30, 2026.

This anticipated loss marks a significant swing from the net profit of roughly RMB 2.5 million reported for the corresponding period in the prior year, based on a preliminary assessment of the group's unaudited consolidated management accounts and information currently available to the board.

According to the directors, the shift from profitability to a net loss is primarily attributed to two key factors. Firstly, increased promotional and marketing expenses were incurred to support the expansion of the group's business operations in the East China region. Secondly, research and development costs rose as part of efforts to enhance product quality and strengthen clinical value research.