Shanghai Pharmaceuticals (601607) H2 2025 earnings summary

Executive summary

• Revenue reached RMB 283.58 billion in 2025, up 3.03% year-over-year; net profit attributable to shareholders was RMB 5.72 billion, up 25.74% year-over-year, mainly due to one-time gains from the consolidation of Shanghai Hutchison Pharmaceuticals.

• Excluding non-recurring items, adjusted net profit attributable to shareholders was RMB 4.72 billion, down 5.56% year-over-year.

• Operating cash flow was RMB 6.15 billion, up 5.61% year-over-year, maintaining strong liquidity.

• The company completed the acquisition of a controlling stake in Shanghai Hutchison Pharmaceuticals, expanding its industrial portfolio.

Financial highlights

• Gross margin for industrial operations was 57.13%, with a slight decrease of 2.08 percentage points year-over-year.

• Basic and diluted EPS were RMB 1.54, up 25.20% year-over-year.

• Adjusted EPS (excluding non-recurring items) was RMB 0.80, down 27.27% year-over-year.

• Weighted average ROE was 7.74%, up 1.24 percentage points year-over-year.

• R&D investment reached RMB 2.60 billion, accounting for 10.62% of industrial revenue.

Outlook and guidance

• The company targets high-quality growth by focusing on innovation, digital transformation, and international expansion.

• 2026 is the first year of the new five-year plan, with a focus on strengthening core businesses, accelerating transformation, and expanding the second growth curve.

• Risks include international trade volatility, ongoing healthcare cost controls, and uncertainties in innovative drug R&D cycles.