Taiji Group revises 2024 profit forecast downward after tax review

Chongqing Taiji Industry Group (SSE: 600129) has significantly revised its 2024 annual performance forecast, now expecting a net profit attributable to shareholders of approximately 2.67 million RMB, a 96.76% decrease year-over-year. This revision follows an internal review and local tax inspection of its subsidiaries, Southwest Pharmaceutical and Chongqing Traditional Chinese Medicine Materials Co., resulting in a combined tax and surcharge liability of around 100 million RMB. Southwest Pharmaceutical needs to pay about 80 million RMB in taxes, while Chongqing Traditional Chinese Medicine Materials needs to pay about 20 million RMB in taxes. The company emphasizes that these payments will be charged as current costs and profits of 2024. The company has revised its original forecast that predicted a net profit attributable to shareholders of approximately 156.4 million RMB and a decrease of 80.98%. Taiji Group assures investors it is committed to strengthening internal controls, compliance, and risk management at its subsidiaries, but urges caution.