Shanghai Fosun Pharmaceutical (600196) H2 2024 earnings summary

Executive summary

• Revenue reached RMB 41,067 million, down 0.80% year-over-year, reflecting portfolio adjustments and strategic transformation toward innovative drugs and high-value devices.

• Net profit attributable to shareholders rose 16.08% year-over-year to RMB 2,770 million; net profit after one-off gain was RMB 2,314 million, up 15.10% year-over-year.

• Operating cash flow increased 31.13% year-over-year to RMB 4,470 million, driven by supply chain and asset structure optimization.

• R&D expense decreased 16.15% year-over-year to RMB 3,644 million, with continued focus on key pipelines and efficiency improvements.

• Key products such as Serplulimab Injection (PD-1), Axicabtagene Ciloleucel Injection, and others achieved steady growth.

Financial highlights

• Gross margin improved to 48.0% from 47.8% year-over-year; selling and distribution expense ratio dropped to 21.1% from 23.5%.

• Administrative expenses decreased on a comparable basis, excluding newly acquired enterprises.

• Cash and bank balances stood at RMB 13,524 million; net assets attributable to shareholders reached RMB 47,261 million.

• Debt-to-asset ratio improved to 49.0% from 50.1% year-over-year.

Outlook and guidance

• Strategic focus remains on innovative drugs, high-value devices, and internationalization.

• Continued optimization of asset structure and capital expenditures to enhance free cash flow.

• Ongoing expansion of global operations, with revenue outside mainland China up 8.93% year-over-year.