CSPC Pharmaceutical Group (1093) Q4 2025 earnings summary

Executive summary

• Revenue declined 10.4% year-over-year to RMB 26,006M, mainly due to centralised procurement price cuts for key products.

• Reported profit attributable to shareholders decreased 10.3% to RMB 3,882M; underlying profit dropped 24.5%.

• R&D expenses rose 11.9% to RMB 5,809M, reflecting continued investment in innovation and new product launches.

• Major licensing deals and global collaborations, including a record $18.5B agreement with AstraZeneca, drove significant non-recurring income and expanded international presence.

• Dividend per share increased 11.5% year-over-year, with HK$300M–HK$453M used for share buybacks.

Financial highlights

• Revenue: RMB 26,006M (down 10.4% YoY); gross profit: RMB 17,059M (down 16%).

• Gross margin: 65.6% (down 4.4 percentage points YoY).

• R&D expenses: RMB 5,809M (up 11.9% YoY), representing 28.2% of finished drug revenue.

• Operating cash flow improved to RMB 5,832M from RMB 4,535M.

• Basic EPS: 33.98 RMB cents (down 7.8% YoY).

Outlook and guidance

• Over 30 innovative drugs and new formulations expected to launch between 2026–2028.

• 20+ generic drugs planned for launch in 2025–2026, with 30 more in research.

• Continued focus on global expansion, platform-based strategic collaborations, and AI-driven drug discovery.

• Plans to deepen global strategy, expand product registration, and enhance overseas business efficiency.

• Focus on emerging sectors such as gene therapy, cell therapy, and metabolomics.