Shanghai Pharmaceuticals (601607) Q3 2024 earnings summary

Executive summary

• Revenue for Jan–Sep 2024 reached RMB 209.63 billion, up 6.14% year-over-year; net profit attributable to shareholders was RMB 4.05 billion, up 6.78% year-over-year.

• Industrial segment sales fell 12.10% to RMB 18.28 billion, while commercial segment sales rose 8.28% to RMB 191.35 billion year-over-year.

• Operating cash flow for Jan–Sep 2024 was RMB 2.78 billion, up 20.87% year-over-year.

Financial highlights

• Q3 2024 revenue was RMB 70.22 billion, up 8.16% compared to Q3 2023.

• Q3 2024 net profit attributable to shareholders was RMB 1.11 billion, down 6.29% year-over-year.

• Adjusted net profit (excluding non-recurring items) for Jan–Sep 2024 was RMB 3.69 billion, up 11.56% year-over-year.

• Basic and diluted EPS for Jan–Sep 2024 were both RMB 1.09, compared to RMB 1.03 in the prior year.

• Total assets at Sep 30, 2024 were RMB 223.74 billion, up 5.55% from year-end 2023.

Outlook and guidance

• Focus on innovation-driven growth, with 60 new drug pipelines in clinical or post-application stages, including 46 innovative drugs.

• Continued expansion in innovative drug commercialization and supply chain services, with 13 new imported products and strong CSO contract sales growth.