Shanghai Fosun Pharmaceutical (600196) H2 2025 earnings summary

Executive summary

• Achieved revenue of RMB 41.66 billion in 2025, up 1.45% year-over-year; net profit attributable to shareholders was RMB 3.37 billion, up 21.69% year-over-year.

• Innovation drug revenue grew 29.59% to RMB 9.89 billion, accounting for 23.75% of total revenue; overseas revenue rose 14.87% to RMB 12.98 billion, 31.15% of total revenue.

• R&D investment reached RMB 5.91 billion, 14.19% of revenue; innovation drug R&D accounted for 72.77% of total R&D.

• Cash flow from operations was RMB 5.21 billion, up 16.45% year-over-year.

• Proposed cash dividend of RMB 3.90 per 10 shares (pre-tax), with a payout ratio of 30.54%.

Financial highlights

• Revenue: RMB 41.66 billion (+1.45% YoY); net profit attributable to shareholders: RMB 3.37 billion (+21.69% YoY); adjusted net profit (excluding non-recurring items): RMB 2.34 billion (+1.12% YoY).

• Basic and diluted EPS: RMB 1.27 (+22.12% YoY); adjusted EPS: RMB 0.88.

• Gross margin: 50.06%; operating margin: 12.55%.

• Cash and equivalents: RMB 13.10 billion; total assets: RMB 120.05 billion; net assets: RMB 48.74 billion.

• R&D expense: RMB 5.91 billion (+6.46% YoY); innovation drug R&D: RMB 4.30 billion (+15.98% YoY).

Outlook and guidance

• Will focus on innovation-driven growth, international expansion, and AI integration.

• 2026 strategy includes strengthening core pipelines in oncology, immunology, neurology, and expanding into chronic and rare diseases.

• Plans to enhance global supply chain, digital transformation, and operational efficiency.