Grand Pharmaceutical Group (512) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 grew 1.0% year-over-year to HK$6,107.32 million, with innovative and barrier products accounting for 51.0% of total revenue, up 14.9 percentage points year-over-year.

• Net profit attributable to owners was HK$1,169.02 million, down 25.0% year-over-year, mainly due to lower gains from Telix investment and increased marketing expenses for new products.

• Excluding Telix investment impact, normalized profit declined 5.9% year-over-year, primarily from centralized procurement price reductions and higher marketing costs.

• The Group maintained strong R&D investment and global expansion, with 133 projects under research and 42 innovation projects across multiple therapeutic areas.

• Strategic acquisitions in medical devices and traditional Chinese medicine expanded the product pipeline and market competitiveness.

Financial highlights

• Revenue: HK$6,107.32 million (+1.0% YoY); in RMB terms, +2.0% YoY; excluding centralized procurement, +13.0% YoY.

• Net profit attributable to owners: HK$1,169.02 million (-25.0% YoY); normalized profit: HK$1,017.29 million (-5.9% YoY).

• Gross profit: HK$3,600.16 million (flat YoY); EPS: 33.38 HK cents (vs. 44.41 HK cents last year).

• Distribution costs: HK$1,916.29 million (+19% YoY); administrative expenses: HK$691.75 million (+14% YoY); finance costs: HK$80.35 million (down from HK$86.12 million).

• R&D and project investment: HK$1,022 million for the period.

• Cash and cash equivalents: HK$479.10 million as of 30 June 2025.

Outlook and guidance

• The Group will continue to focus on innovation-driven growth, global expansion, and product pipeline optimization.

• Emphasis on advancing blockbuster products like STC3141 and YiGanTai® for sepsis and expanding the nuclear medicine portfolio globally.

• Ongoing investment in R&D and international clinical trials to accelerate commercialization of innovative drugs.

• The Group aims to strengthen its global presence and maintain high R&D investment to support sustainable development.