Sinopharm Group (1099) investor relations material

Executive summary

• Revenue for 2025 was RMB575.17 billion, down 1.6% year-over-year, while net profit rose 3.94% to RMB10.83 billion, and profit attributable to owners increased 1.5% to RMB7.16 billion.

• The company maintained its leading position in China's pharmaceutical distribution industry, with improved operational efficiency, cost control, and cash flow management.

• Retail pharmacy segment achieved a strategic turnaround, with significant reduction in losses and improved profitability.

• Digital transformation and integrated management strategies enhanced operational quality and efficiency.

Financial highlights

• Gross profit was RMB41.67 billion, down 5.84% year-over-year; gross margin declined to 7.25% from 7.57%.

• Operating profit was RMB16.04 billion, a slight decrease of 0.93% year-over-year.

• Basic earnings per share increased to RMB2.29, up 1.33% year-over-year.

• Net cash generated from operating activities rose 22.45% to RMB14.14 billion.

• Asset-liability ratio improved to 65.63%, down 2.12 percentage points year-over-year.

• Final dividend proposed at RMB0.69 per share, totaling RMB2.15 billion.

Outlook and guidance

• Focus on high-quality development, digital transformation, and lean management to drive efficiency and profitability.

• Plans to expand market share in pharmaceutical and medical device distribution through differentiated strategies and innovation.

• Retail pharmacy segment to pursue synergistic growth under a dual-brand strategy, emphasizing professional services and digital empowerment.

• Continued emphasis on compliance, risk management, and value-added services across the supply chain.