SHINEWAY PHARM (02877) announced its full-year financial results for the fiscal year ended December 31, 2025. The group's revenue reached RMB 3.135 billion, representing a decrease of 17.0% compared to the previous year. The gross profit margin stood at 72.3%, down from 75.0% a year earlier. Annual profit amounted to RMB 950 million, marking an increase of 13.1% year-on-year. Earnings per share were RMB 1.26, and the company declared a first interim dividend for 2026 of RMB 0.43 per share.

In 2025, the group successfully secured bids for eight key products in the National Chinese Patent Medicine Purchasing Alliance's centralized procurement program. The winning products cover major therapeutic areas, including cardiovascular and cerebrovascular diseases, respiratory illnesses, and digestive disorders. These are widely used medications covered by medical insurance and essential drug lists. Following the successful bids, the products are better aligned with DRG/DIP payment requirements, offering more patients access to high-quality, cost-effective treatment options. This is expected to enhance future end-market demand, market coverage, and sales potential for the group's products.

During the year, the traditional Chinese medicine formula granules industry entered a period of significant adjustment due to multiple policy influences, including the full implementation of national standards, regular provincial centralized procurement, and ongoing cost control measures in medical insurance. The industry shifted away from high growth, facing pressures on both volume and price, structural reorganization, and intensified competition. Overall industry sales declined during the year, and SHINEWAY PHARM's revenue from TCM formula granules decreased by 14.4%.

Concurrently, the group's sales team has been actively expanding its presence in target provinces across the country, controlling costs, and strengthening regional and product competitiveness. As the industry landscape gradually stabilizes, the group expects its TCM formula granules business to return to growth.