CSPC PHARMA (01093) issues a profit warning, expecting a decrease of approximately 26% in the annual net profit attributable to shareholders compared to the previous year.

CSPC PHARMA (01093) announced that it is expected the group's attributable profit to owners for the year ending December 31, 2024 will decrease by approximately 26% compared to the year ending December 31, 2023, which was approximately RMB 5.873 billion. It is reported that the decrease in the group's attributable profit to owners for the year ending December 31, 2024 is mainly due to a decrease in revenue from the pharmaceutical business by about 7% compared to the year ending December 31, 2023. The main reasons are as follows: (1) The prices of the two products, Jin You Li and Duo Mei Su, were reduced by approximately 58% and 23% respectively in the "3+N" alliance drug centralized procurement in the Beijing-Tianjin-Hebei region. As the centralized procurement started to be implemented in various provinces in March 2024, the sales of these two products significantly declined. As a result, the revenue in the oncology treatment area decreased by about 28% for the year ending December 31, 2024 compared to the year ending December 31, 2023; and (2) Xuan Ning was not selected in the national eighth batch centralized procurement in 2023, leading to a significant impact on its sales in hospitals strictly following the centralized procurement. Consequently, the revenue in the cardiovascular treatment area decreased by about 15% for the year ending December 31, 2024 compared to the year ending December 31, 2023.