CSPC Pharmaceutical Group (1093) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB 13,273 million, down 18.5% year-over-year, mainly due to centralised procurement price cuts on key products.

• Reported profit attributable to shareholders fell 15.6% to RMB 2,548 million; underlying profit dropped 27.9%.

• Interim dividend declared at HK14 cents per share, a 12.5% decrease year-over-year.

• Active share buy-backs totaling HK$300 million were completed by June 30, 2025, with 64.3 million shares repurchased and cancelled.

• R&D expenses increased 5.5% year-over-year, reflecting continued investment in innovation.

Financial highlights

• Gross profit margin decreased by 6.0 percentage points to 65.6%, with gross profit at RMB 8,710 million (down 25.3% YoY).

• Basic EPS was RMB 22.29 cents, down 12.6% year-over-year.

• Operating cash inflow rose to RMB 3,187 million from RMB 1,425 million in H1 2024.

• R&D expenses reached RMB 2,683 million, representing 26.2% of finished drug revenue.

• Finished drug revenue declined 24.4% to RMB 10,248 million; bulk products rose 11.9% to RMB 2,075 million; functional food and others increased 8.0% to RMB 951 million.

Outlook and guidance

• Focus on innovation and internationalisation, with plans to submit over 50 new drugs or indications for marketing approval by 2028.

• Continued expansion of out-licensing and global partnerships to drive recurring revenue.

• Multiple innovative drugs in late-stage clinical trials and regulatory submissions planned through 2027.

• Plans to strengthen core competitiveness and pursue sustainable, high-quality growth amid industry transformation.