Shineway sees revenue drop amidst challenging TCM market, profit stable

China Shineway Pharmaceutical Group Limited announced its unaudited consolidated results for the six months ended June 30, 2025, reporting a 20.8% decrease in turnover to RMB1,652,698,000 compared to the same period last year. Despite the revenue decline, net profit for the period saw only a slight decrease of 1.9%, amounting to RMB614,663,000, with earnings per share at RMB81 cents. The gross profit margin for the period was 72.2%, a decrease from 75.3% in the prior year.

The company attributes the sales reduction to a challenging traditional Chinese medicine (TCM) industry environment, characterized by shrinking demand, lower centralized procurement prices, and stricter medical insurance policies. Sales of injection products decreased by 27.4%, soft capsule products by 24.7%, and granule products by 21.0%. TCM formula granules also experienced a 12.1% sales decline.

In response to market conditions, Shineway focused on cost control and efficiency, with selling and distribution costs declining by 20.7% and administrative expenses by 12.9%. Net cash from operating activities slightly increased by 0.4% to RMB566,319,000. The board declared a second interim dividend of RMB11 cents per share for 2025.