Shanghai Pharmaceuticals forecasts significant profit growth in first half

Shanghai Pharmaceuticals Holding Co., Ltd. (the "Company") projects a net profit attributable to shareholders of the parent company of CNY 4.45 billion for the first half of 2025. This represents an increase of approximately CNY 1.508 billion, or roughly 52%, compared to the same period last year. The preliminary calculation has not been audited by a registered accountant. A key factor driving this growth is the acquisition of an additional 10% equity stake in Shanghai Hutchison Pharmaceuticals, completed on April 25, 2025. This increased the Company's total holding to 60%, consolidating Shanghai Hutchison Pharmaceuticals into its financial statements. The accounting treatment shifted from equity method to subsidiary accounting. As per accounting standards, this also triggered a revaluation of the existing stake held before the purchase date, with the difference between the fair value and book value recognized as investment income for the period. Investors are advised to exercise caution and be aware of investment risks.