Sinopharm Group (1099) Q2 2025 earnings summary

Executive summary

• Revenue for 1H 2025 was RMB286,043 million, down 2.95% year-over-year, mainly due to declines in pharmaceutical and medical device distribution segments.

• Net profit attributable to owners was RMB3,465.69 million, down 6.43%; total net profit was RMB5,337.25 million, down 9.53%.

• Gross margin fell to 7.11% from 7.45%; net profit margin decreased to 1.87% from 2.00% year-over-year.

• Retail pharmacy segment achieved 3.65% revenue growth and a 215.81% increase in net profit, outperforming other segments.

• Expense ratios improved, with selling, administrative, and financial expense ratios all declining, supporting profit stabilization.

Financial highlights

• Operating margin dropped to 2.60% from 2.79% year-over-year; operating profit was RMB7,445.69 million, down 9.44%.

• Basic earnings per share was RMB1.11, a 6.72% decrease year-over-year.

• Cash and cash equivalents at period end were RMB35,238 million, down from RMB54,313 million at year-end 2024.

• Net cash used in operating activities was RMB34,111.09 million, an improvement from RMB40,994 million in the prior year.

• Gearing ratio as of June 2025 was 69.25%, up from 67.75% at year-end 2024.

Outlook and guidance

• Plans to expand market coverage in pharmaceutical and medical device distribution, focusing on high-value products and innovative drugs.

• Retail pharmacy to deepen dual-brand strategy, optimize integration of online and offline stores, and target outpatient prescriptions.

• Continued emphasis on digitalization, cost reduction, asset quality, and service innovation to drive future growth and operational efficiency.