Hutchison China MediTech's consolidation boosts performance; Shanghai Pharmaceuticals' net profit increased by 25.74% year-on-year

◎Reporter He Xinyi

On the evening of March 30, Shanghai Pharmaceuticals released its 2025 annual report. During the reporting period, the company achieved operating revenue of RMB 283.58 billion, a year-on-year increase of 3.03%; attributable net profit to the parent company was RMB 5.725 billion, a year-on-year increase of 25.74%, reaching a new high since the company’s listing. Net cash inflow from operating activities was RMB 6.154 billion, a year-on-year increase of 5.61%.

In the pharmaceutical distribution segment, Shanghai Pharmaceuticals achieved sales revenue of RMB 259.058 billion, a year-on-year increase of 3%. Among them, the company strengthened and upgraded its cornerstone business, accelerating and deepening its network layout. Its nationwide pure-sales network coverage expanded to 25 provinces, and the number of provinces with business scale exceeding RMB 10 billion increased to 8. The stable growth of its pure-sales business laid a solid foundation for the segment’s development.

The company’s commercial innovation business achieved comprehensive breakthroughs. The CSO business scale exceeded RMB 10 billion; the company signed new cooperation projects for multiple drugs and vaccines. Innovation drug services achieved sales revenue of RMB 53.7 billion, representing a substantial year-on-year increase. For import and export business, it introduced 28 imported authorized product specifications; at the CIIE, it signed deals exceeding RMB 14 billion. In the medical devices and healthcare business, sales scale exceeded RMB 44.7 billion; the company signed more than 30 SPD projects. Leveraging the formation of the Mixin Health ecosystem, it built a “medicines–pharmaceuticals–insurance” collaborative ecosystem, accelerating the commercialization landing of innovative drugs.

In the pharmaceutical manufacturing segment, Shanghai Pharmaceuticals achieved sales revenue of RMB 24.522 billion, a year-on-year increase of 3.33%; R&D investment reached RMB 2.604 billion, accounting for 10.62% of industrial sales revenue.

During the reporting period, Shanghai Pharmaceuticals’ transformation of industrial marketing and cultivation of its second growth curve were advanced in parallel. Amsulpride oral崩片 (Ossian) (奥思安) became the company’s first改良型新药 included in the National Reimbursement Drug List. Throughout the year, there were 40 industrial-sold products with sales exceeding RMB 100 million, and 4 products with sales exceeding RMB 1 billion. Sales revenue of 60 key products totaled RMB 13.443 billion. The company accelerated the development of its OTC and healthcare businesses and is committed to building a diversified online platform covering both the B-end and C-end.

In addition, consolidating Yellow Pharm with equity boosted Shanghai Pharmaceuticals’ performance, bringing in more than RMB 1 billion in profit.

On January 1, 2025, Shanghai Pharmaceuticals announced that it planned to acquire 10% equity interest in Yellow Pharm for RMB 995 million and become the controller of Yellow Pharm. This not only brought the nationally confidential formulation product Shexiang Baoxin Pills, but also further strengthened the company’s overall strength in traditional Chinese medicine. On April 25 of the same year, Shanghai Pharmaceuticals completed the equity acquisition delivery procedures for the 10% stake in Yellow Pharm. The company’s total equity proportion in Yellow Pharm changed from 50% to 60%. The company’s accounting for it changed from the equity method as a joint venture to accounting as a subsidiary.

2025 is a key year for Shanghai Pharmaceuticals to see innovative achievements translate into real outcomes, with innovation R&D blooming across multiple points. In December 2025, its Class 1 innovative drug Apple acid Sotu… (信妥安) was approved for listing, for more than 300 million patients with primary hypertension, becoming a milestone result for its innovative drug R&D.

As of the end of the reporting period, the number of new drug pipelines that had been accepted for clinical applications and entered subsequent clinical research stages reached 59, including 47 innovative drugs. At the same time, the company’s innovative recombinant human anti–interleukin-17 monoclonal antibody BCD-085 had its application for marketing approval accepted for a new drug targeting ankylosing spondylitis.

Shanghai Pharmaceuticals stated that in 2026, the first year of the “15th Five-Year Plan” period, it has established its operating guideline of “strengthen the foundation, improve quality and efficiency; drive breakthrough innovation to promote transformation.” The company will further consolidate the foundation of its industrial sector, strengthen its commercial services platform, and accelerate international expansion as well as the application of AI technology scenarios. With a steady operating strategy and resolute innovation-driven transformation, it aims to seize opportunities in the industry and become a leading pharmaceutical enterprise with strong comprehensive capabilities.

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