CF PharmTech, Inc. has warned shareholders that both revenue and earnings for the year ending 31 December 2025 will contract sharply, according to a preliminary review of unaudited management accounts.
Revenue Outlook • Management projects 2025 revenue between RMB410.00 million and RMB450.00 million, down 25.9%-32.5% from the RMB607.75 million recorded in 2024.
Earnings Guidance • Net profit attributable to shareholders under IFRS is expected at RMB2.00-3.00 million, versus RMB21.09 million in 2024—an 85.8%-90.5% decline. • Adjusted net profit (excluding share-based payments and listing expenses) is forecast at RMB30.00-35.00 million, compared with RMB51.87 million a year earlier, representing a drop of 32.5%-42.1%.
Key Factors Behind the Decline 1. Lower average selling price for core product CF017 (budesonide suspension for inhalation) after the renewal of Volume-Based Procurement (VBP) terms, combined with delayed national and provincial procurement schedules that slowed product deliveries. 2. Reduced market demand for inhaled formulations due to a lower incidence of respiratory infections in 2025. 3. Temporary sales disruption stemming from the reorganisation of the distribution network, including greater reliance on distributors and fewer third-party promoters. 4. Increased research and development spending on innovative drug candidates, compressing profit margins. 5. One-off listing expenses related to the company’s H-share listing in October 2025, which weigh on IFRS profit but are excluded from the adjusted figure.
Operational Developments • Regulatory milestones: the marketing authorisation application for budesonide nasal spray and IND applications for ICF004 and ICF001 have been accepted by China’s National Medical Products Administration; clinical trials for olopatadine hydrochloride and mometasone furoate monohydrate nasal spray have been approved. • CF017 has completed brand-volume reporting under the renewed national VBP programme, extending hospital coverage nationwide through 2028. • The company’s H-shares are now constituents of the Hang Seng Composite Index and eligible for Southbound Trading, potentially boosting liquidity. • CF PharmTech has initiated share repurchases under a December 2025 mandate and may consider further buybacks subject to market conditions.
The disclosed figures are based on unaudited data and may change upon finalisation of the 2025 annual results, scheduled for release by end-March 2026. Shareholders and prospective investors are advised to exercise caution when dealing in the company’s securities.