Shanghai Pharma reports robust growth in first half of 2025

Shanghai Pharmaceuticals Holding Co. Ltd. (SPH) reported a robust financial performance for the first half of 2025, with operating income reaching RMB141.59 billion, a 1.56% year-on-year increase. This growth was primarily driven by pharmaceutical service revenue, which rose by 2.17% to RMB129.433 billion. Despite a 4.50% decrease in pharmaceutical manufacturing revenue to RMB12.160 billion, the company achieved a total profit of RMB6.82 billion, marking a substantial 41.45% increase from the prior year.

Net profit attributable to equity holders of the listed company surged by 51.56% to RMB4.459 billion. This significant increase was largely attributed to one-off special gains from the change in accounting treatment for Hutchison Pharmaceuticals, moving from equity method to subsidiary accounting. Excluding these one-off gains, net profit attributable to the owner of the parent company saw a slight decrease of 2.06% to RMB2.782 billion. Basic earnings per share increased by 51.90% to RMB1.20, and net cash flows from operating activities grew by 91.98% to RMB989.26 million.

The company continued to advance its R&D and innovation efforts, investing RMB1.148 billion in R&D, accounting for 9.44% of pharmaceutical manufacturing sales revenue. SPH also expanded its "Great Health OTC + New Retail" strategy and pharmaceutical service innovations, including growth in its Contract Sales Organization (CSO) business and import under general agency, which increased sales revenue by 11.7% to RMB17.5 billion.