Accord Medicines reports Q3 net profit decline amidst revenue dip

China National Accord Medicines Corporation (Accord Medicines) announced its preliminary financial results for the first three quarters of 2025, reporting total operating revenue of 55.12 billion yuan, a 2.38% decrease year-on-year. Net profit attributable to shareholders for the period stood at 957.12 million yuan, marking a 10.18% decline compared to the previous year. Basic earnings per share also fell by 9.95% to 1.72 yuan.

For the third quarter alone (July to September 2025), operating revenue was 18.33 billion yuan, a 1.89% decrease from the same period last year. Net profit attributable to shareholders in Q3 was 291.21 million yuan, representing a 9.58% decrease. The distribution segment generated 40.59 billion yuan in revenue, a slight decrease of 0.59%, with net profit down 7.32% due to increased credit impairment losses.

The retail segment, specifically Sinopharm National Accords Pharmacy Co., Ltd., saw revenues decrease by 7.14% to 15.23 billion yuan but remarkably achieved a net profit of 13 million yuan, a 133.91% increase. This profit growth was attributed to optimized procurement, strengthened private brands, and enhanced operational efficiency from closing underperforming stores, despite market challenges. The company plans to focus on digital transformation and operational adjustments to improve performance and manage risks.