CSPC Pharmaceutical Group (1093) Q1 2026 earnings summary

Executive summary

• Revenue for 1Q26 was RMB 6,465 million, down 7.8% year-over-year, mainly due to a sharp decline in licence fee income.

• Reported profit attributable to shareholders dropped 41.8% year-over-year to RMB 860 million, with underlying profit down 40.3%.

• Excluding licence fee income, revenue grew 0.4% year-over-year and 7.7% sequentially, while reported profit excluding licence fee income declined 7.3% year-over-year to RMB 736 million.

• R&D investment increased 7.7% year-over-year, supporting a robust pipeline with multiple clinical and regulatory milestones.

Financial highlights

• Gross profit was RMB 4,268 million, down 9.3% year-over-year; gross margin declined by 1.1 percentage points to 66.0%.

• Basic EPS was 7.54 RMB cents, down 41.6% year-over-year.

• Licence fee income was RMB 146 million, a significant drop from RMB 718 million in 1Q25.

• Finished drugs revenue fell 5.0% year-over-year to RMB 5,224 million; bulk products revenue dropped 25.7% to RMB 796 million.

• Functional food and others revenue grew 0.5% to RMB 445 million.

Outlook and guidance

• Over 30 innovative drugs and new formulations are planned for launch between 2026 and 2028.

• More than 20 generic drugs are expected to launch in 2026–2027, with 10 additional projects in research.

• R&D pipeline remains robust with over 130 products in development and 11 indications submitted for marketing approval.

• Regulatory progress includes 2 new drugs approved in China, 1 in the EU, and 7 overseas clinical trial approvals.