SHINEWAY PHARM (02877) announced its interim results for 2025, reporting revenue of 1.653 billion yuan (RMB), representing a 20.8% decrease compared to the same period last year. Net profit for the period reached 615 million yuan, down 1.89% year-on-year. Basic earnings per share stood at 81 cents, and the company proposed an interim dividend of 11 cents per share.

According to the announcement, the group's gross profit margin declined during the period, dropping from 75.3% in the same period last year to 72.2%. This decrease was primarily attributed to rising procurement costs for product raw materials and the impact of centralized procurement on drug pricing. The decline in overall sales and gross profit margin led to a reduction in the group's operating profit for the first six months of 2025 compared to the same period last year.

However, due to increased investment income and the group's focused efforts on cost control and efficiency improvement, selling and distribution costs decreased by approximately 20.7% and administrative expenses fell by 12.9% compared to the same period last year. This resulted in only a slight 1.9% decrease in net profit compared to the previous year, while the net profit margin increased from 30.0% to 37.2%.

The group continues to focus on expanding oral dosage forms as its key development strategy. In the first six months of 2025, oral products accounted for 65.8% of total sales, while injectable products represented 34.2% of total sales. Total sales of injectable products declined 27.4% compared to the same period last year, mainly due to decreases in sales of Qingkailing Injection and Shenmai Injection by 50.1% and 21.0% respectively. Sales of several other injectable products, including Shuxuening Injection, Guanxinning Injection, and Danshen Injection, also decreased by 6.3%, 9.6%, and 24.6% respectively.