Sinopharm Group (1099) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was RMB 575,167.88 million, a 1.6% decrease year-over-year, while net profit attributable to owners rose 1.5% to RMB 7,155.09 million and total net profit increased 3.94% to RMB 10,834.43 million.

• The company maintained its leading position in China's pharmaceutical distribution industry, with improved operational efficiency, cost control, and cash flow management.

• Retail pharmacy segment achieved a strategic turnaround, with significant reduction in losses, improved profitability, and strong growth offsetting declines in other segments.

• Digital transformation and integrated management strategies enhanced operational quality and efficiency.

Financial highlights

• Net profits increased 3.94% year-over-year to RMB 10,834.43 million.

• Net cash from operating activities rose by RMB 2,592.20 million to RMB 14,138.21 million, up 22.45%.

• Capital expenditure decreased to RMB 1,917.30 million.

• Asset-liability (gearing) ratio improved to 65.63%, down 2.12 percentage points year-over-year.

• Final dividend proposed at RMB 0.69 per share, totaling RMB 2.15 billion.

Outlook and guidance

• Focus on high-quality development, digital transformation, and lean management to drive efficiency and profitability.

• Plans to stabilize and expand market share in pharmaceutical and medical device distribution through differentiation, innovation, and deeper hospital customer engagement.

• Retail pharmacy to pursue synergistic growth under a dual-brand strategy, emphasizing professional services, operational efficiency, and digital empowerment.

• Continued emphasis on compliance, risk management, and value-added services across the supply chain.