Sinopharm (01099): China National Accord Medicines Corporation (000028.SZ) is expected to have a net profit attributable to shareholders of approximately 561 million to 760 million yuan in 2024, a year-on-year decrease of 52.48% to 64.92%.

SINOPHARM (01099) announced that it is expected that China National Accord Medicines Corporation (000028.SZ) will have a net profit attributable to shareholders of the listed company of approximately 561 million to 760 million yuan in 2024, a year-on-year decrease of 52.48% to 64.92%; it is expected that the non-net profit will be approximately 497 million to 696 million yuan, a year-on-year decrease of 54.59% to 67.58%. According to the preliminary test results of goodwill impairment testing, China National Accord Medicines Corporation plans to make a provision for impairment of goodwill and intangible assets (brand use rights and sales network) of approximately 876 million to 1.07 billion yuan this time, which is expected to reduce the net profit attributable to shareholders of the listed company by 505 million to 618 million yuan during the reporting period. During the reporting period, China National Accord Medicines Corporation conducted inspections and analysis of various assets such as receivables and inventory, excluding the impairment of goodwill and intangible assets mentioned above. Based on enterprise accounting standards and company accounting policies and other related regulations, and based on the principle of conservatism, the expected provision for impairment of assets other than the impairment of goodwill and intangible assets is approximately 94 million to 141 million yuan (the corresponding asset impairment provision amount accounted for in the same period of 2023 was 94.57 million yuan), expected to reduce the net profit attributable to shareholders of the listed company by 50 million to 75 million yuan (the corresponding asset impairment provision accounted for in 2023 reduced the net profit attributable to shareholders of the listed company by 51.27 million yuan), and the final impairment provision amount will be determined after audit by the audit firm hired by China National Accord Medicines Corporation. In 2025, to actively respond to industry changes, the retail sector of China National Accord Medicines Corporation will focus on improving overall performance, flexibly adjusting layout structures based on strategic planning and operational management needs, and fully promoting multiple positive comprehensive measures to enhance the operational quality of the retail sector in all aspects. On the one hand, it will continue to focus on cultivating advantages in key regions, further strengthening store management foundations, implementing precise strategies for each store, and enhancing the quality of single-store operations. On the other hand, it will actively expand cooperation with the industry, strive for upstream resource support, and effectively reduce costs. Additionally, it will optimize product structures, focus on increasing the proportion of private brands and unified procurement sales, and enhance product competitiveness. Furthermore, China National Accord Medicines Corporation will also promote digital innovation transformation, continuously optimize process efficiency, effectively reduce costs, and inject momentum into the high-quality development of the retail sector.