China Medical System (867) H2 2025 earnings summary

Executive summary

• Turnover increased 9.9% year-over-year to RMB8,212.1 million, with normalized profit up 3.6% to RMB1,775.5 million, despite reported profit declining 10.5% due to a one-off tax payment.

• Innovative and exclusive products drove growth, accounting for 59.8% of revenue (up from 52.8%), with sales in this segment rising 44.1% year-over-year.

• Two new drugs were approved for marketing, and six NDAs are under review, reflecting a robust innovation pipeline.

• The skin health business (Dermavon) saw revenue surge 73.2% and is proposed for a separate listing.

• The group completed a secondary listing in Singapore, accelerating its internationalization strategy.

Financial highlights

• Gross profit rose 8.3% to RMB5,871.5 million; gross margin declined to 71.5% from 72.6% due to pricing pressure.

• Basic EPS decreased 7.8% to RMB0.6154.

• Bank balances and cash stood at RMB2,701.4 million at year-end.

• Proposed final dividend of RMB0.1366 per share, total annual dividend up 9.0% to RMB0.2921 per share.

• R&D expenses increased 77.3% to RMB585.0 million, with total R&D spend up 40.5% to RMB1,058.4 million (12.9% of turnover).

Outlook and guidance

• Focus remains on dual engines of collaborative development and in-house R&D to sustain pipeline growth.

• Continued expansion in specialty therapeutic fields and international markets, leveraging Singapore as a hub.

• AI-enabled digital transformation to drive operational efficiency and decision-making.