Pa Shun International Holdings Limited Issues Profit Warning for Year Ended 31 December 2025

Key Highlights from the Announcement

• Significant Increase in Net Loss Expected: The Board of Pa Shun International Holdings Limited (“the Company”) has announced that, based on its preliminary assessment, the Group expects to record a net loss ranging from RMB20.0 million to RMB27.0 million for the year ended 31 December 2025. This represents a substantial increase compared to the net loss of RMB15.3 million reported for the year ended 31 December 2024.
• Key Reason Behind the Loss: The escalation in net loss is mainly attributed to a significant number of the Group’s products being included in the National Centralised Drug Procurement programme initiated by the Chinese government in 2025. This programme is a major national policy aimed at reducing drug prices and alleviating the burden of medical expenses on the public.
• Impact on Business Operations: In accordance with the programme’s pricing mechanism, the Group was required to lower the selling prices of affected products. This led to a substantial narrowing of gross profit margins on these products, which adversely affected the overall profitability of the Group for the year.
• Results Still Under Finalisation: The financial data presented is preliminary and based on unaudited consolidated management accounts. The final results are still subject to adjustments and review by the Board and its audit committee. The official annual results announcement is expected to be published around 31 March 2026.

Important Information for Shareholders and Potential Investors

• Price Sensitive Development: The anticipated increase in net loss, primarily due to the impact of the National Centralised Drug Procurement programme, is a significant development. This could potentially affect investor sentiment and the Company’s share price, as it signals increased financial challenges and lower profitability for the Group.
• Ongoing Uncertainty: Since the results are still being finalised and are subject to adjustments, there may be further changes to the net loss figures once the audit process is complete. Investors are advised to closely monitor the upcoming annual results announcement for the finalised financial data.
• Caution Advised: Given the negative outlook on profitability and ongoing uncertainties, shareholders and potential investors are strongly advised to exercise caution when dealing in the Company’s securities.

Board Composition

• The current Board comprises Executive Directors Mr. Ma Qinghai and Mr. Yuan Hongbing (Chairman), Non-Executive Directors Mr. Chen Zhongzheng and Mr. Zhou Jinkai, and Independent Non-Executive Directors Ms. Li Yan, Dr. Lowe Chun Yip, and Mr. Wong Tung Yuen.

Summary

The profit warning issued by Pa Shun International Holdings Limited serves as a key update for investors, highlighting increased losses for 2025 due to regulatory and policy changes in the pharmaceutical sector. The inclusion of a large number of the Group’s products in China’s National Centralised Drug Procurement programme has led to price reductions and squeezed profit margins, significantly impacting the bottom line. Investors should stay alert for the official annual results and approach trading with caution given the current uncertainties and the potential for share price volatility.

Disclaimer: This article is prepared for informational purposes only and does not constitute investment advice. Investors are urged to read the full annual results announcement when available and consult their financial advisors before making any investment decisions.

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