CSPC Pharmaceutical Group (1093) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2025 was RMB 19,891 million, down 12.3% year-over-year, with gross profit declining 18.4% to RMB 13,049 million and gross margin dropping to 65.6%.

• Reported profit attributable to shareholders fell 7.1% to RMB 3,511 million, while underlying profit dropped 23.0% to RMB 3,079 million, reflecting non-recurring items.

• Basic earnings per share fell 4.1% year-over-year to RMB 30.72 cents.

• R&D expenses increased 7.9% year-over-year to RMB 4,185 million, supporting a robust pipeline of innovative drugs and new formulations.

• Over 200 innovative drugs and new formulations are in development, with 52 new drugs approved and significant clinical progress in oncology, immunity, and metabolism.

Financial highlights

• Finished drugs revenue declined 17.2% year-over-year to RMB 15,450 million, while bulk vitamin C and functional food segments grew 22.3% and 12.4%, respectively.

• Bulk products revenue rose 10.3% year-over-year to RMB 3,006 million, driven by vitamin C sales.

• Oncology revenue dropped 56.8%, nervous system by 21.6%, and anti-infectives by 22.7% year-over-year.

• Operating profit from finished drugs fell 23.6%, but bulk vitamin C operating profit rose 77.9%.

• Gross profit for the period was RMB 13,049 million, down from RMB 15,985 million in the prior year.

Outlook and guidance

• Multiple pivotal clinical trials and regulatory submissions are planned for 2025-2027, including BLA/NDA filings for key oncology and metabolic products.

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

• Continued focus on innovation and internationalization, with increased R&D investment and a robust pipeline of nearly 90 products in clinical trials.

• Strategic collaborations and out-licensing agreements are expected to drive future growth and global expansion.