Shanghai Fosun Pharmaceutical (600196) H2 2025 earnings summary

Executive summary

• Revenue reached RMB 41.66 billion, up 1.45% year-over-year, with overseas revenue accounting for 31.15% and growing 14.87% year-over-year.

• Net profit attributable to shareholders was RMB 3.371 billion, up 21.69% year-over-year; adjusted net profit was RMB 2.34 billion, up 1.12% year-over-year.

• R&D investment increased 6.46% year-over-year to RMB 5.913 billion, with 72.77% allocated to innovative drugs.

• Non-core asset disposals brought in nearly RMB 3 billion in 2025.

Financial highlights

• Gross profit was RMB 20.862 billion, gross margin improved to 50.1% from 48.0% year-over-year.

• Operating cash flow from activities was RMB 5.213 billion.

• Sales expense ratio rose to 22.1%, management expense ratio to 11.0%, and R&D expense ratio to 9.6%.

• Net asset attributable to shareholders reached RMB 48.742 billion.

• Asset-liability ratio improved to 48.5%.

Outlook and guidance

• Continued focus on innovative drug R&D and internationalization, with over 70 innovative and biosimilar drug projects in the pipeline.

• Capital expenditure expected to stabilize as core capacity buildout completes.

• Multiple products newly included in national and commercial insurance catalogs, supporting future commercialization.