SHINEWAY PHARM (02877) announces interim results with a net profit of 615 million yuan, a decrease of 1.89% year-on-year.

SHINEWAY PHARM (02877) released its mid-year performance for 2025 with a revenue of 1.653 billion yuan, a decrease of 20.8% year-on-year; a net profit of 615 million yuan, a decrease of 1.89% year-on-year; basic earnings per share of 81 cents; and a proposed interim dividend of 11 cents per share. According to the announcement, the group's gross profit margin declined during the period, from 75.3% in the same period last year to 72.2%. This was mainly due to the rise in procurement costs of raw materials for products, along with the impact of centralized procurement on drug prices. As overall sales and gross profit margin declined during the period, the group's operating profit for the first six months of 2025 also decreased compared to the same period last year. However, with an increase in investment income and a focus on cost control and efficiency improvement, sales and distribution costs and administrative expenses decreased by approximately 20.7% and 12.9% respectively compared to the same period last year, resulting in a slight decrease of only 1.9% in net profit compared to the same period last year, while the net profit margin increased from 30.0% to 37.2%. The group continues to focus on expanding oral dosage forms as a key development strategy. In the first six months of 2025, oral products accounted for 65.8% of total sales, while injection products accounted for 34.2% of total sales. The total sales of injection products decreased by 27.4% compared to the same period last year, mainly due to a 50.1% decrease in sales of Qingkailing injection and a 21.0% decrease in sales of Shenmai injection, as well as decreases in sales of other injection products such as Shuxuening injection, Guanxinning injection, and Danshen injection by 6.3%, 9.6%, and 24.6% respectively.