Shares of CHINARES PHARMA (03320) plummeted by 11.87% on Monday morning after the company's pharmacies retail operating arm, CR Care, announced plans to shut down all its outlets in Hong Kong citing external uncertainty and operational challenges.
CR Care operates 19 retail pharmacies in Hong Kong according to its website. In its interim report, CHINARES PHARMA stated that it runs one of China's largest retail pharmacy networks with 760 outlets under the CR Care and Teck Soon Hong brands.
The planned closure of CR Care's Hong Kong operations raised concerns among investors about the potential impact on the company's overall revenue and profitability, triggering a sharp sell-off in CHINARES PHARMA's shares.
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