China NT Pharma Group Issues Profit Warning: Significant Reduction in Net Loss Expected for FY2025

Key Points from the Announcement

• The Board of China NT Pharma Group Company Limited has issued a profit warning for the financial year ended 31 December 2025.
• The Group expects to record a net loss attributable to owners of the Company in the range of RMB25.0 million to RMB30.0 million for FY2025.
• This represents a substantial reduction of approximately 43.8% to 53.2% compared to the net loss of RMB53.4 million for FY2024.
• The improvement is primarily due to non-recurring, non-cash items related to fair value changes in financial assets.

Details for Investors and Shareholders

China NT Pharma Group attributes the expected reduction in net loss to two main factors:

1. Absence of One-off Non-cash Fair Value Loss: In FY2024, the Group recorded a one-off non-cash fair value loss of approximately RMB29.5 million following the accounting reclassification of its equity interest in Beijing Kangchen Biological Technology Co., Ltd. This loss did not recur in FY2025.
2. Fair Value Gains on Financial Asset: During FY2025, the financial asset at fair value through profit or loss—representing the aforementioned equity interest—recorded fair value gains of approximately RMB14.0 million.

The Board emphasizes that a material portion of this improvement stems from fair value gains, which are non-cash in nature and are based on market parameters and assumptions. These gains do not represent recurring cash inflows from the Group’s core operations and may be subject to significant fluctuations depending on future valuation assumptions, market conditions, and other factors.

Potential Impact on Share Price and Investor Considerations

The announcement contains information that is potentially price sensitive:

• The significant reduction in net loss may positively influence investor sentiment and share price.
• However, shareholders should be aware that much of the improvement is due to non-cash fair value changes, not underlying operational improvements.
• These fair value gains could fluctuate in future periods, impacting the Group’s financial results and potentially the share price.

The Company is still in the process of finalizing its annual results for FY2025. The figures provided are based on preliminary unaudited management accounts and may be subject to adjustments. The audited annual results will be published by the end of March 2026.

Investors and shareholders are strongly advised to exercise caution when dealing in the shares of China NT Pharma Group. In case of any doubts, it is recommended to seek independent professional or financial advice.

Board and Management Update

As of the date of the announcement, the Board comprises executive directors Mr. Ng Tit and Ms. Ng Anna Ching Mei; non-executive directors Dr. Qian Wei and Ms. Chin Yu; and independent non-executive directors Mr. Yu Tze Shan Hailson, Mr. Ng Ming Kwan, and Dr. Zhao Yubiao.

Disclaimer

The information in this article is based on preliminary unaudited financial reports and may be subject to change. The final audited results will be released by the Company at a later date. This article is for informational purposes only and does not constitute investment advice. Investors are advised to exercise caution and consult with independent advisors before making any investment decisions.

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