Shares of China Resources Pharmaceutical Group (HKG:3320) plummeted 5.13% in Wednesday's trading session, following the release of the company's 2024 financial results. The steep decline came as investors reacted to a notable drop in the pharmaceutical giant's annual profit, despite an increase in revenue.

According to the company's filing with the Hong Kong Stock Exchange, China Resources Pharmaceutical's attributable profit for 2024 fell to 3.35 billion yuan, down from 3.85 billion yuan in the previous year. This represents a significant 13% decrease in profitability. Earnings per share also declined, dropping to 0.53 yuan from 0.61 yuan in 2023. The disappointing bottom-line performance overshadowed the company's revenue growth, which rose to 257.7 billion yuan from 244.7 billion yuan a year earlier.

In an attempt to maintain shareholder confidence, the company declared a final dividend of 0.052 yuan per share, payable on July 14 to shareholders of record as of June 2. However, this gesture did little to stem the sell-off, as investors appeared to focus on the concerning profit decline. The sharp drop in share price suggests that market participants are worried about the company's ability to maintain profitability in the face of rising costs or increased competition in the pharmaceutical sector.