China Medical System Holdings Limited (CMS, 00867.HK; 8A8.SGX) released its audited results for the year ended 31 December 2025, marking the first set of annual results since its secondary listing in Singapore.

Financial Performance • Turnover increased 9.9% year-on-year (YoY) to RMB 8.21 billion; assuming direct sales of all medicines, turnover reached RMB 9.39 billion, up 8.9%. • Gross profit rose 8.3% to RMB 5.87 billion; gross margin stood at 71.5% (62.4% on a direct-sales basis). • Reported profit fell 10.5% to RMB 1.44 billion due to a one-off tax repayment of RMB 278.80 million. Excluding this item, normalised profit grew 3.6% to RMB 1.78 billion. • Basic EPS decreased 7.8% to RMB 0.6154. • Bank balances and cash totalled RMB 2.70 billion at year-end. • Final dividend proposed at RMB 0.1366 per share, lifting full-year dividend 9.0% to RMB 0.2921.

Operational Highlights • Key exclusive/branded and innovative products contributed 59.8% of 2025 revenue on a direct-sales basis, with sales up 44.1% YoY. • Skin-health subsidiary Dermavon reported revenue of RMB 1.07 billion, +73.2% YoY, and is progressing towards a separate Hong Kong listing. • R&D spend climbed 77.3% to RMB 585.02 million; total R&D investment (expensed plus capitalised) reached RMB 1.06 billion, 12.9% of turnover. • Two innovative drugs approved in China in early 2026: Lumirix (ruxolitinib phosphate cream) for vitiligo and Desidustat tablets for CKD-related anaemia. Six NDAs, including Loberamisal for Injection and Comekibart (MG-K10) for atopic dermatitis, remain under review. • Six in-house INDs cleared, covering areas such as obesity (siRNA CMS-D008) and cardiomyopathy (CMS-D003). • Strategic collaborations added four innovative biologics (e.g., Vecantoxatug for tetanus, Silevimig for rabies) and two anti-VEGF ophthalmology products (Lucentis and Beovu).

Segment Detail • Integrated pharmaceuticals revenue: RMB 7.15 billion, profit RMB 1.55 billion. • Skin-health revenue: RMB 1.07 billion, segment loss RMB 0.10 billion, reflecting scale-up costs.

Capital & Liquidity • Net current assets improved to RMB 7.83 billion. • Bank borrowings reduced to RMB 651.82 million; gearing fell to 3.4%.

International Expansion • Secondary listing on SGX completed July 2025. • Emerging-market platform Rxilient has filed nearly 20 registrations across Asia-Pacific and MENA, with initial approvals secured in Hong Kong, Macau and Singapore. • Manufacturing arm PharmaGend’s Singapore facility holds HSA GMP and US FDA cGMP certifications, supporting up to 1.5 billion tablets annually.

Post-Period Events • IND approvals obtained for CMS-D017 (complement factor B inhibitor) in kidney disease and CMS-D008 (INHBE-targeting siRNA) for obesity. • Exclusive China distribution secured for Lidoderm® lidocaine cataplasms.

Outlook Management positions 2025 as the pivot year for returning to a “long-cycle growth trajectory,” underpinned by a refreshed product mix, specialty focus and accelerated internationalisation. The proposed final dividend is subject to shareholder approval at the April 2026 AGM, with payment expected on 7 May 2026.