Chenzhen Pharmaceuticals' 2025 performance declines twice, with investment income contributing nearly 40% of net profit

Sourced from: Taishan Finance

Taishan Finance reporter Zhao Shijie

Taishan Finance learned that recently, Chenxin Pharmaceutical (603367.SH) released its 2025 annual report. For the full year, the company achieved operating revenue of RMB 3.445 billion, down 13.48% year over year; net profit attributable to shareholders was RMB 421 million, down 17.22% year over year; and profit after deducting non-recurring items was RMB 256 million, down 39.82% year over year. At the same time, backed by large-scale wealth management assets, during the reporting period, the company’s wealth management investment income reached RMB 163 million, accounting for nearly 40% of net profit attributable to shareholders for the period.

In terms of business composition, revenue from Chenxin Pharmaceutical’s core product lines generally declined. For its leading business, revenue from large-volume injection products was RMB 1.431 billion, down 17.67% year over year, and the gross margin fell by 7.79 percentage points; revenue from small-volume injection products was RMB 1.065 billion, down 11.02% year over year, and the gross margin decreased by 2.06 percentage points. Except for infusion drops, revenue from the other product lines declined to varying degrees.

On expenses, Chenxin Pharmaceutical significantly reduced overall spending. In 2025, selling expenses were RMB 888 million, down 18.81% year over year; administrative expenses were RMB 243 million, down 19.5% year over year; and R&D expenses were RMB 286 million, down 16.59% year over year.

Despite pressure on operating performance, the company’s financial position remains sound. As of the end of 2025, Chenxin Pharmaceutical’s total assets were RMB 7.597 billion, total liabilities were RMB 1.367 billion, and its asset-liability ratio was only 18%. Notably, the company held RMB 1.212 billion in monetary funds on its books, and its trading financial assets were RMB 1.73 billion; together, they totaled nearly RMB 3.0 billion. Of this, trading financial assets increased by 35.68% from RMB 1.275 billion at the beginning of the year, with the vast majority being wealth management products.

The large scale of wealth management assets also brought considerable financial returns to the company. In 2025, Chenxin Pharmaceutical realized wealth management investment income of RMB 124 million, and the fair value change gains generated by trading financial assets were RMB 39.6796 million; together, they totaled about RMB 163 million, accounting for 38.7% of net profit attributable to shareholders for the period.

According to information, Chenxin Pharmaceutical was established in 1970, located in Jining City, Shandong Province. Its predecessor was Jining No. 3 Pharmaceutical Factory. It was listed on the main board of the SSE in September 2017. It is a large-scale comprehensive pharmaceutical enterprise integrating R&D, production, and sales.

In its annual report, Chenxin Pharmaceutical said that in 2025, competition in the pharmaceutical industry continued to intensify. The normalization of centralized procurement and the tightening of regulation further accelerated industry consolidation, with resources moving toward leading companies; at the same time, internationalization has become an important direction for companies to expand their development space.

Against this backdrop, Chenxin Pharmaceutical adheres to a “four-wheel drive” strategy of high-end generic drugs, OTC topical drugs, innovative drugs, and special medical foods. The company continues to advance reforms of its marketing system and upgrades of smart manufacturing, while also accelerating its internationalization layout. In 2025, the company’s operating revenue from overseas regions increased by 81.53% year over year, and its gross margin improved by 7.9 percentage points.

In terms of R&D innovation, the company’s R&D anti-drug-resistant tuberculosis bacterium Type 1 new drug has entered Phase III clinical research; the dual-target anti-tumor Type 1 new drug is in Phase II clinical stage; and two Type 1 new drugs for treating autoimmune inflammation and anti-fungal have both completed Phase II clinical trials. In addition, the company has made a cross-industry foray; it has initiated the veterinary-drug R&D work for an acute pancreatitis Type 1 new drug.

Edited by: Lu Yunzhu

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