CSPC Pharmaceutical Group (1093) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 21.9% year-over-year to RMB 7,015M, with gross profit down 27.6% and gross margin dropping 5.2pp to 67.1%.

• R&D expenses rose 11.4% year-over-year, reflecting continued investment in innovation.

• Reported profit attributable to shareholders fell 8.4% year-over-year to RMB 1,478M; underlying profit dropped 18.2%.

• Two new drugs approved, three breakthrough therapy designations, and 33 IND approvals highlight robust pipeline progress.

• Multiple international licensing deals executed, including major agreements with AstraZeneca, BeiGene, Radiance Biopharma, Cipla, and Alphamab Oncology.

Financial highlights

• Revenue: RMB 7,015M, down 21.9% year-over-year; gross profit: RMB 4,705M, down 27.6%.

• Gross margin decreased to 67.1% from 72.3% year-over-year.

• R&D expenses increased to RMB 1,302M, up 11.4% year-over-year.

• Basic EPS (reported): 12.91 RMB cents, down 5.1%; underlying EPS: 12.33 RMB cents, down 15.2%.

• HK$300M in share repurchases completed up to May 2025.

Outlook and guidance

• Pipeline includes multiple late-stage assets with anticipated launches in oncology, immunity, and chronic disease management through 2027.

• 20 generic drugs expected to be approved in 2025-2026, with 30 more in research.

• Continued focus on international expansion, out-licensing, and collaboration with biotech firms to drive future growth.