Research Brief | China Resources Double Crane's Earnings Conference Highlights: Specialty Business Grows by 14%, Multiple Breakthroughs in Synthetic Biology Draw Attention

Basic Information of the Meeting

On March 20, 2026, China Resources Double Crane Pharmaceutical Co., Ltd. (hereinafter referred to as “China Resources Double Crane”) held its 2025 annual performance briefing. The meeting was conducted in a hybrid format combining in-person and online participation, located at the company’s conference room at No. 1, Lize East 2nd Road, Wangjing, Chaoyang District, Beijing. The company’s Party Secretary and Chairman Lu Wenchao, Director and President Zhao Qian, along with several senior executives attended to provide detailed answers to investor concerns regarding specialized business growth, responses to centralized procurement, and synthetic biology layout.

Core Business Performance: Specialized Field as a Growth Engine, Multi-plate Coordination Boosts Efforts

Double-digit Growth in Specialized Business, Revenue Share Rises to 28%

In 2025, China Resources Double Crane’s specialized business achieved a 14% year-on-year growth, with revenue share rising to 28%, an increase of 3.2 percentage points from the previous year, becoming the core driver of the company’s revenue growth. Each sub-sector performed excellently:

• Oncology Field: Core product Teniposide Injection experienced rapid growth, and the CAR-T product Lenalidomide Injection introduced at the end of 2025 focuses on gliomas and hematological tumors. The Lomustine Capsules expected to be approved in the second quarter will fill the domestic treatment gap for gliomas.
• Antiviral Field: Bromovalerylurea achieved over 100 million in sales revenue within a year of its launch, with market share rising to second place, forming a competitive landscape with original research products.
• Pediatrics Field: Despite a slight overall decline due to the drop in newborn birth rates, the introduction of Dextroamphetamine Sustained-Release Capsules fills the domestic ADHD treatment gap and is expected to become a major product; the acquisition of Henan Zhongshuai enriches the product line, and Acetazolamide Sustained-Release Capsules (the second in the world, first in China for altitude sickness treatment) are about to be approved.
• Nephrology Field: Four new peritoneal dialysis products have been approved, and in the next 3-5 years, the product structure is expected to benchmark against international leader Baxter, becoming an important growth point for the specialized business.

Clear Strategy for Centralized Procurement Response, Stable Growth in Stock, Expected Incremental Growth

The company actively embraces centralized procurement policies, having cumulatively won bids for 35 varieties in the first round of procurement and 53 varieties in continuous procurement, ranking among the top 10 domestic pharmaceutical companies. The four “barefoot varieties” (newly approved or assessed varieties) selected in the 11th batch of procurement in 2025 are expected to contribute incrementally. Notably, the optimization of policies for the first to eighth batches of centralized procurement has shifted to a “brand-name reporting” model. Relying on a marketing team of over 3,000 people and nationwide terminal coverage advantages, nearly 30 barefoot varieties have achieved active reporting, providing solid support for the performance baseline.

Outlook for Key Business Segments

Infusion Business: Four Major Measures to Increase Market Share

In 2025, the company’s infusion business accounted for 23% of revenue, maintaining a good profit margin through a low-cost strategy across the entire value chain. If no public health emergencies occur in 2026, the market size is expected to be in the range of 11-12 billion bags. The company will enhance its share through four major measures:

• Actively participate in provincial alliance procurement; in the second half of 2025, it has achieved an increase of over 70 million bags in Guangdong, Sichuan, and other regions;
• Promote marketing transformation, accelerate the establishment of direct sales capabilities, and improve the profit structure;
• Focus on high-value therapeutic and nutritional infusions, with nearly 40 related products in reserve;
• Advance the relocation phase one project of the Anhui Double Crane Industrial Park, with a production capacity of 1.2 billion bags after production starts, further reducing costs.

API Business: Rebound from the Bottom, Expected Continuous Growth in 2026

In 2025, the API business achieved revenue of 1.26 billion yuan, a year-on-year increase of 5.4%, with net profit growing double digits year-on-year, successfully emerging from the downturn. Core measures include: integrating marketing teams to widen channels, empowering cost reduction and production increase through synthetic biology technology, and implementing lean management to enhance capacity utilization. Looking forward to 2026, Shenzhou Bio, as a core growth engine, will drive the API business’s revenue and net profit to maintain good growth.

Strategic Layout: Synthetic Biology as the Second Growth Curve, R&D and M&A Drive Development

Multiple Breakthroughs in Synthetic Biology, Accelerating Industrialization Process

The company has positioned synthetic biology as the second growth curve, making key progress in 2025:

• Technical Breakthroughs: The high-temperature nylon precursor 1,4-diaminobutane project has achieved a production scale of hundreds of tons, opening up the entire industrial chain; all seven technology platforms have been completed, with six products entering the process standardization stage, and e-commerce sales of health products and overseas listings expected within the year.
• Industrial Fund Implementation: The synthetic biology industrial fund in cooperation with the Inner Mongolia government will accelerate the construction of industrialization bases and promote product introduction and incubation.
• Empowering Existing Businesses: Through strain optimization and process improvements, the core products Coenzyme Q10 and S-sodium salt have seen reduced costs and increased production, significantly improving profit levels.

R&D Pipeline Improvement, Innovation and Generic Drug Development in Sync

In the generic drug sector, the company will maintain a research scale of about 100 varieties during the 14th Five-Year Plan; in the innovative drug field, the Mercaptopurine Tablets (II) were approved for listing in 2025 (the first innovative drug in Beijing for 2025), Hydroxocobalamin Injection (for rare pediatric diseases) has entered phase III clinical trials, and products like DC6001 (for juvenile macular degeneration) are progressing steadily. In terms of product introduction, the powder-liquid dual-chamber bag BD cooperation has been implemented, and Lomustine Capsules are expected to be approved in the second quarter, continuously enriching the pipeline.

Performance Outlook and Shareholder Returns

As the first year of the 14th Five-Year Plan, the company expects the growth rate of main business revenue and net profit attributable to shareholders to be no less than the industry average in 2026. Regarding dividends, during the 13th Five-Year Plan period, cumulative cash dividends and repurchases amounted to 1.298 billion yuan, and in the future, the company will steadily increase dividend payouts while ensuring production and operations and strategic implementations to enhance shareholder returns.

China Resources Double Crane stated that it will focus on the strategic goals of “creating China’s leading prescription drug brand” and “building a benchmark leading enterprise in synthetic biology” through dual drives of R&D innovation and external development, achieving high-quality sustainable development.

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