Shares of CSPC Pharmaceutical Group Ltd. plummeted as much as 13% on Thursday, marking the biggest one-day drop since August 22nd. The steep decline was triggered by the company's warning of a projected 16% year-over-year decrease in net profit for the nine months ended September 2024.

According to CSPC Pharmaceutical Group, the decline in profit is attributed to dwindling revenue from its finished drugs business in key therapeutic areas like oncology, cardiovascular, and nervous system treatments. The implementation of volume-based procurement by hospitals has negatively impacted sales in these crucial segments.

With a current market capitalization of around HK$61.4 billion ($7.88 billion), CSPC Pharmaceutical's stock hit a low of HK$5 during trading, the lowest level since September 23rd. The sell-off contrasted with the broader market trend, as the Hang Seng Commerce & Industry Index climbed 1%, the healthcare index rose 0.7%, and the Hang Seng Index increased by 1% during the same trading session.