Shenzhen Salubris Pharmaceuticals (002294) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached RMB 1.06 billion, down 2.64% year-over-year, mainly due to lower generic drug sales offset by growth in patented and new products.

• Net profit attributable to shareholders was RMB 200.33 million, nearly flat year-over-year; adjusted net profit (excluding non-recurring items) slightly decreased by 4.64%.

• Operating cash flow dropped 26.39% year-over-year to RMB 169.39 million, reflecting lower sales receipts and increased spending on new product promotion and R&D.

Financial highlights

• Gross margin remained stable; basic and diluted EPS were both RMB 0.18, unchanged from last year.

• Total assets at quarter-end were RMB 10.66 billion, up 1.89% from year-end 2024; shareholders' equity rose 2.37% to RMB 8.92 billion.

• Weighted average ROE was 2.27%, down 0.20 percentage points year-over-year.

• Non-recurring gains totaled RMB 8.21 million, mainly from government subsidies and investment income.

Outlook and guidance

• Company continues to shift sales mix toward patented and new products, expecting further growth in these segments.

• Generic drug revenue share is expected to decline further due to ongoing policy impacts.

• Increased investment in new product promotion and innovation R&D will continue.