SHANGHAI PHARMACEUTICALS ANNOUNCES 2025 ANNUAL RESULTS
Dual Improvement in Quality and Efficiency Lays a Solid Foundation, Forge Ahead with Fortitude for the “15th Five-Year” Plan
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(March 30, 2026) Shanghai Pharmaceuticals Holding Co., Ltd. (“Shanghai Pharmaceuticals” or the “Company”, Stock Codes: 601607.SH; 02607.HK) is pleased to announce the annual results of the Company and its subsidiaries (collectively, the “Group”) for the year ended December 31, 2025 (the “Reporting Period”).
In 2025, Shanghai Pharmaceuticals remained committed to “building a solid chassis, strengthening the core and making breakthroughs in innovation”, and continuously optimized its “Three Horizontals and Three Verticals” system. Rising to challenges and seeking transformation through innovation, the Company ranked among the Fortune Global 500 for six consecutive years, climbing to the 407th position. Meanwhile, the Company was listed on the “2025 Global Most Valuable Pharma Brands”, “Global Top 10 Strongest Pharma Brands” and “China’s ESG Listed Companies Pioneer 100”, further solidifying its industry position and significantly enhancing its brand value.
During the Reporting Period, the Company achieved operating income of RMB283.580 billion, representing a year-on-year increase of 3.03%. Among which, the pharmaceutical manufacturing achieved sales revenue of RMB24.522 billion, representing a year-on-year increase of 3.33%; the pharmaceutical service achieved sales revenue of RMB259.058 billion, representing a year-on-year increase of 3.00%. During the Reporting Period, the Company’s R&D investment: RMB2.604 billion, accounting for 10.62% of the sales of pharmaceutical manufacturing. Among them: R&D expenditure amounted to RMB2.340 billion, accounting for 9.54% of the sales of pharmaceutical manufacturing. In 2025, the operating net cash inflow of the Company amounted to RMB6.154 billion, representing a year-on-year increase of 5.61%, continuously maintaining its high-quality development.
Innovative R&D Achieves Multiple Breakthroughs, Pipeline Layout Builds Growth Momentum
2025 was a crucial year for Shanghai Pharmaceuticals to realize innovative achievements, with major breakthroughs in R&D. The class 1 innovative drug Stogilan Malate Tablet (Xintuoan®) was officially approved for marketing, providing a new treatment plan for more than 300 million patients with primary hypertension in China, becoming a milestone achievement in the Company's innovative drug R&D. As of the end of the Reporting Period, there were 59 new drug pipelines for clinical application acceptance and entering the clinical study stage, including 47 innovative drugs and 12 improved new drugs. Among the innovative drug pipelines, 1 innovative drug pipeline has been submitted for marketing application and accepted, and 6 innovative drug pipelines are in clinical phase III, supporting sustainable development with a ladder layout.
Progress in key new drug development projects was remarkable. The new drug application for the innovative recombinant humanized anti-interleukin-17 (IL-17) monoclonal antibody BCD-085 for the treatment of ankylosing spondylitis was accepted for review. The pivotal study of the globally innovative anti-CD20 antibody drug B001 injection for the treatment of neuromyelitis optica spectrum disorder (NMOSD) completed the primary endpoint analysis, and enrollment of all subjects for the Phase II clinical studies of B007 in multiple indications was completed. All cases of the Phase III clinical trial of the new drug of class 1.1 of traditional Chinese medicine Shenqi Sherong Pill have been dismissed, which is expected to fill the gap in Chinese patent medicine for cervical spondylotic myelopathy. The Phase III clinical trial of SHPL-49, an innovative drug of class 1 of chemical drug clinically intended to be used to treat acute ischemic stroke (AIS), has been initiated, with its multi-target and multi-channel mechanism of action demonstrating clinical advantages. Additionally, progress was made in rare disease drug R&D, with the first subject enrollment for the Phase III clinical trial of SRD4610 in China and a written response received from the FDA. Multiple research achievements in the field of cell therapy were featured on the international academic stage, including a SCI paper titled “Functional tumor-reactive CD8+ T cells in pancreatic cancer” jointly published in the international journal “Journal of Experimental & Clinical Cancer Research”, with an impact factor of 12.8.
R&D systems and innovation ecosystem upgraded simultaneously. The Company continued to strengthen its in-house technical platforms for peptides and macromolecules, leveraged the National Key Laboratory of Innovative Immunotherapy to initiate 10 new projects, and together with Shanghai Jiao Tong University, actively promoted the supporting development of raw materials by jointly establishing the Raw Material Drug Technology Innovation Center. Shanghai Frontier has attracted 24 high-quality institutions to settle in; it jointly established a Proof-of-Concept Center with Shanghai Jiao Tong University School of Medicine, with over 40 projects collected, 9 projects approved and receiving funding support, and assisted 7 incubated enterprises in securing over RMB500 million in financing, accelerating the formation of an open-source innovation ecosystem that promotes synergy among industries, universities, research institutes, hospitals and capital. In addition, notable progress was made in secondary development, with continued breakthroughs in evidence-based research on large varieties of traditional Chinese medicine (TCM). Multiple products, including Shexiang Baoxin Pill, Weifuchun, Yangxinshi Tablet and Guanxinning Tablet, were included in authoritative guidelines. The consistency evaluation for generic drug was steadily advanced, with 13 varieties passing the consistency evaluation throughout the year, bringing the cumulative number of products that have passed the evaluation to 87 varieties (117 specifications), further solidifying the advantages in terms of varieties of the pharmaceutical manufacturing.
Manufacturing Segment Improved Quality and Efficiency, with Digital Intelligence Transformation Empowering Industrial Upgrading
The pharmaceutical manufacturing segment deepened its transformation, achieving significant results in intelligent manufacturing as well as cost reduction and efficiency improvement. SPH Sine Pharmaceutical deepened the application of the MES system to achieve intelligent optimization of the entire production process. SHP Xingling Sci.&Tech. Pharmaceutical’s practice of full-chain digital intelligence transformation drove the digital control rate of key equipment to 100%, significantly improving multiple metrics such as overall equipment effectiveness and production efficiency, while reducing the comprehensive energy consumption per unit of product by 22%. The Company rolled out “six measures to reduce costs”, implementing more than 100 cost-cutting measures targeted at centralized procurement products. A total of 156 lean management projects achieved cost savings and efficiency gains exceeding RMB40 million, while 74 joint purchases of traditional Chinese herbal medicines drove down procurement costs by approximately 8%.
Furthermore, the Company advanced industrial marketing transformation and the cultivation of its second growth curve in tandem. Amisulpride Orally Disintegrating Tablets (Aosian®) became the Company’s first improved new drug included in the National Reimbursement Drug List. For the full year, 40 products generated over RMB100 million in industrial sales, 4 products exceeded RMB1 billion, and sales from 60 key varieties reached RMB13.443 billion. Meanwhile, the Company accelerated the cultivation of the “second growth curve” and deeply expanded OTC and big health businesses and strove to build a diversified online platform covering both B end and C end.
The Commercial Sector Achieved Innovative Breakthroughs, Continuously Expanding to Consolidate Its Leading Position
Cornerstone businesses were upgraded in quality, and in-depth network layout was further accelerated. The Company has continuously promoted the nationwide regional platform-based and integrated construction, focusing on the development of an access system and the integration of middle and back offices to drive the capability upgrade of provincial platforms. Its national pure sales network covers 25 provinces and cities across the country. The number of provinces with business scale exceeding RMB10 billion increased to 8. Pure sales business maintained steady growth, laying a solid foundation for the sector’s development.
Meanwhile, the Company’s commercial innovation businesses achieved comprehensive breakthroughs, with value contribution continuously improving. During the Reporting Period, the overall scale of the CSO business exceeded RMB10 billion. The Company signed multiple new pharmaceutical cooperation projects and obtained regional promotion rights for a number of vaccine products, efficiently linking global pharmaceutical resources with local market demand. The service advantages in innovative drugs continued to expand, with annual sales reaching RMB53.7 billion, achieving a year-on-year significant increase. The construction of three major import platforms progressed steadily. During the year, the Company newly imported 28 product specifications under general agency, covering 21 world-renowned pharmaceutical enterprises. During the 8th China International Import Expo (CIIE), the Company signed strategic cooperation agreements with several internationally leading pharmaceutical companies including Pfizer and Eisai, with a cumulative contract value exceeding RMB14 billion. Meanwhile, the Company made positive progress in the layout of its international supply chain, successfully launching China’s first direct export business supplying pharmaceuticals via cruise ships. The structure of devices and big health business continued to optimize, and relevant professional service capabilities continuously strengthened. During the Reporting Period, the Company has entered into contracts for more than 30 new SPD projects. The sales scale of the devices and big health business exceeded RMB44.7 billion, achieving steady growth; The “New Retail Integration” strategy was implemented in an orderly manner, and the development of the large retail system was accelerated. During the Reporting Period, the Company accelerated the integration of national retail businesses, focused on enhancing the integrated service capabilities of its specialised pharmacies, improved the “system + data + knowledge” empowerment system relying on SPH Cloud Health, and innovated service models. Relying on MediTrust Health, the Company built a collaborative “medical–pharmaceutical–insurance” ecosystem, accelerated the commercialization of innovative drugs through digital intelligence measures, thereby feeding back into clinical research and reshaping the patient service experience.
Accelerated Digital Intelligence Transformation and AI-driven Quality Improvement and Innovation
Digital intelligence transformation has become an important driver of development. The Company has formulated and implemented the Guidelines for Digital Intelligence Transformation and AI Application, establishing a digital intelligence management system covering the entire industrial chain. The project management module launched in the R&D field covers more than 50 ongoing research projects.
For macromolecules, we have built the WeMol intelligent molecular computing software platform, with local deployment of IgFold (a deep learning model for protein structure prediction) and the lightweight AlphaFold (ColabFold), GROMACS for atomic-level dynamic simulation, as well as MDAnalysis for data mining and the PyMOL visualization system, enabling the whole process from static structure prediction to atomic-level dynamic interaction analysis. For small molecules, the structure-based AI-designed high-throughput cyclic peptide generation platform and the cyclic peptide membrane permeability prediction model (CycPAMPA-pred) have both achieved expected prediction accuracy on test and validation sets. In the pharmaceutical manufacturing field, the Phase III QMS system was launched, and the AI Assistant for quality regulations has realized intelligent quality control and management. In the pharmaceutical service field, the Company officially established the Data and Artificial Intelligence Innovation Center, with more than 30 "AI+" projects implemented. Two core data products were listed for trading at the Shenzhen Data Exchange, achieving deep integration of digital intelligence technologies with core businesses.
Deepen Synergy in External Expansion Layout and Make Solid Progress in International Business
The Company’s external development strategy has been continuously implemented. The equity acquisition of Shanghai Hutchison was successfully completed, and the post-investment “100-Day Plan” has been steadily carried out, realizing two-way empowerment in areas including R&D pipeline, academic promotion and traditional Chinese medicine production. In 2025, all core operating indicators of Shanghai Hutchison achieved growth, and its core advantages were continuously consolidated.
The layout of international business has been accelerated, and the Shanghai-Hong Kong linkage strategy has taken effect. The Hong Kong Headquarters has submitted registration applications for 5 traditional Chinese medicine varieties and promoted the development of 2 big health products. 9 traditional Chinese medicine enterprises under the Company participated in the First Hong Kong International Traditional Chinese Medicine Expo. Significant breakthroughs were achieved in overseas market expansion. Throughout the year, a total of 11 products involving 16 specifications were approved in multiple countries across Southeast Asia and the Middle East. In addition, the registration declarations of 18 new overseas projects were completed, with 32 projects currently under review. SPH Thailand achieved a 250.1% year-over-year increase in sales revenue, while SPH Philippines realized its first sales revenue. The Company’s presence in Southeast Asia and the Middle East has been further strengthened, laying a solid foundation for the global expansion of traditional Chinese medicines and pharmaceutical products.
Anchoring the New Starting Point of the “15th Five-Year” Plan to Blueprint High-Quality Development
The year 2026 is the first year of the “15th Five-Year” Plan. The pharmaceutical industry will enter a new stage characterized by specialization, intensification, and high-quality development. In line with industry trends, Shanghai Pharmaceuticals has formulated its general business policy of “consolidating foundations, enhancing quality and efficiency, and driving transformation through innovation-driven breakthroughs,” with a focus on building a full-chain advantage of “pharmaceutical manufacturing and service research and investment”.
For the pharmaceutical service segment, the Company will accelerate its penetration into advantageous regions, core cities and key customers, and consolidate its market position as a provincial platform. Besides, the Company will adhere to transformation and breakthroughs, upgrade the life-cycle service system for innovative drugs, and elevate the innovation level of its CSO business. For the pharmaceutical manufacturing segment, the Company will continue to implement refined product management and maintain product life cycles, agilely iterate its innovation model to increase the contribution of the second growth curve, and also firmly advance innovation-driven transformation to strengthen foundations, build up strength and increase efficiency and profitability. Meanwhile, the Company will continue to carry out mergers and acquisitions (M&A) and business development (BD) activities to reinforce the industrial chain, seize the development trend of digital and intelligent technology innovation, integrate business and management needs, and explore and promote AI+ scenario applications. The Company will also strengthen risk management and control, strictly uphold the bottom lines of safety, quality and compliance, and enhance the Company’s core competitiveness and sustainable development capacity.
In the face of uncertainties such as market fluctuations, industry adjustments, and evolving policy directions, Shanghai Pharmaceuticals will proactively optimize its product mix and market strategies, accelerate its international expansion, and continuously advance innovation-driven transformation. By seizing opportunities arising from the new round of industry restructuring, the Company is committed to growing into a world-class pharmaceutical and healthcare group led by scientific and technological innovation.
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About Shanghai Pharmaceuticals Holding Co., Ltd. (Stock Code: 02607.HK)
Shanghai Pharmaceuticals Holding Co., Ltd. is a leading pharmaceutical industrial group listed in both Shanghai and Hong Kong. Its main businesses cover pharmaceutical R&D, manufacturing, distribution, and retail. The Group ranks among the top in China overall and is one of the few listed pharmaceutical companies in the country that holds leading positions in both pharmaceutical products and distribution markets. The Company maintains a long-term commitment to innovation in R&D and is dedicated to providing safe and effective therapies for major and chronic diseases. The Company has been included in the SSE 180 Index, CSI 500 Index, and Hang Seng Index.