CSPC Pharma H1 2026: Profit Surges 139%, License Fees Drive 57% Finished-Drug Growth

Bulletin Express
Sep 17

CSPC Pharmaceutical Group (CSPC Pharma) reported strong interim results for the six months ended 30 June 2026, underpinned by soaring licence income and expanding innovative drug sales.

Financial Performance • Revenue climbed 40.10% year-on-year to RMB 18.59 billion, led by a 56.70% jump in finished-drug sales to RMB 16.06 billion. • Licence fee income—principally from recent deals with AstraZeneca—rose 448.50% to RMB 5.90 billion, accounting for 36% of finished-drug revenue. • Reported profit attributable to shareholders more than doubled, up 139.20% to RMB 6.09 billion; underlying profit advanced 165.80% to RMB 6.16 billion. • Gross margin expanded 10.6 percentage points to 76.2%; basic EPS increased 139.80% to RMB 0.5345. • Operating cash inflow reached RMB 10.89 billion versus RMB 3.19 billion a year earlier; cash, bank and structured deposits totalled RMB 22.66 billion. • The board declared an interim dividend of HK 18 cents per share, up 28.60%.

Segment Review • Finished drugs: Revenue RMB 16.06 billion; growth fuelled by licence fees and solid sales of NBP, Jinyouli and Anfulike. • Bulk products: Revenue fell 20.00% to RMB 1.66 billion amid lower vitamin C and antibiotic prices. • Functional food & others: Revenue slipped 8.20% to RMB 0.87 billion on weaker glucose and caffeine demand.

R&D and Partnerships • R&D spend increased 12.90% to RMB 3.03 billion, representing 29.80% of finished-drug sales excluding licence fees. • Six innovative drugs received China marketing approval; 30 INDs cleared and 18 phase III trials initiated in H1. • AstraZeneca collaborations: – Long-acting peptide deal delivered a US$1.20 billion upfront payment in May and a US$25 million milestone in July. – July siRNA alliance added a US$30 million upfront payment and potential US$1.74 billion in milestones. – Both parties plan a Shijiazhuang biologics plant via 51/49 joint venture. • AI-enabled discovery and eight technology platforms highlighted as future growth engines.

Balance Sheet & Capital Management • Gearing remained low at 1.0%; capex was RMB 0.63 billion. • HK$321 million was deployed to repurchase 46.18 million shares under the employee share award scheme.

Outlook Management reiterated the “Innovation & Internationalisation” dual-engine strategy, targeting deeper China market penetration, accelerated global filings and continued monetisation of its R&D pipeline through external partnerships.

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