Shanghai Pharmaceuticals (601607) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached RMB 141.59 billion, up 1.56% year-over-year, with net profit attributable to shareholders at RMB 4.46 billion, a 51.56% increase, mainly due to a one-time gain from the consolidation of Hutchison Whampoa Pharmaceuticals.

• Excluding the one-off gain, adjusted net profit attributable to shareholders was RMB 2.78 billion, down 2.06% year-over-year.

• The company completed the acquisition of an additional 10% stake in Hutchison Whampoa Pharmaceuticals, increasing its holding to 60% and consolidating it as a subsidiary.

Financial highlights

• Operating income: RMB 141.59 billion (+1.56% YoY).

• Net profit attributable to shareholders: RMB 4.46 billion (+51.56% YoY).

• Adjusted net profit (excluding one-off): RMB 2.78 billion (-2.06% YoY).

• Basic and diluted EPS: RMB 1.20 (+51.90% YoY).

• Operating cash flow: RMB 989 million (+91.98% YoY).

• Gross margin: 10.5% (calculated from revenue and cost of sales).

Outlook and guidance

• The company will focus on stable growth, quality improvement, and innovation in H2 2025, emphasizing core business strengthening, digital transformation, and risk management.

• High priority on completing annual operational targets and advancing the 15th Five-Year Plan.