By Amanda Lee

Sinopharm Group's shares fell by their most in more than six months in early trade after the Chinese state-owned pharmaceutical giant's quarterly profit fell amid higher operating costs and impairments.

Shares were down 6.4% at 20.45 Hong Kong dollars ($2.61) early Monday, taking them into the red for the year.

Sinopharm said ahead of trading that first-quarter profit dropped 11% from a year earlier to 1.42 billion yuan ($196 million). A 1.2% rise in total operating revenue was offset by a 1.5% rise in total operating cost, while credit impairment losses expanded 15% on year.

The company separately said its board had approved a plan to raise CNY30.0 billion via the issuance of corporate debt to repay loans and matured debt, replenish working capital and fund project construction, saying the moves would help trim financing costs and improve debt structure.

The issuance, which is subject to approval by shareholders and regulators, will comprise CNY25.0 billion in short-term debt with a one-year term and CNY5.0 billion in debt with a term of up to 10 years.

Write to Amanda Lee at

(END) Dow Jones Newswires

04-28-24 2346ET