Core Viewpoint - CICC maintains an "outperform" rating for China National Pharmaceutical Group (01099) with a target price of HKD 24.7, indicating a potential upside of 27.2% based on projected earnings multiples for 2025 and 2026 [2] Financial Performance - For the first half of 2025, the company reported revenue of RMB 286.04 billion, a decrease of 2.95% year-on-year, and a net profit of RMB 3.466 billion, down 6.43% year-on-year, with earnings per share of RMB 1.11, aligning with CICC's expectations [2] - The net profit forecasts for 2025 and 2026 are RMB 7.475 billion and RMB 7.926 billion, respectively, both reflecting a year-on-year growth of 6.0% [2] Business Segments - **Pharmaceutical Distribution**: Revenue for pharmaceutical distribution in 1H25 was RMB 218.53 billion, down 3.52% year-on-year, with an operating profit margin of 2.58%, a decrease of 0.17 percentage points due to ongoing industry challenges [3] - **Medical Device Distribution**: Revenue for medical device distribution was RMB 57.05 billion, down 2.46% year-on-year, with an operating profit margin of 1.92%, a decline of 0.33 percentage points, impacted by price reductions from centralized procurement [3] - **Retail Pharmacy**: Retail revenue increased by 3.65% year-on-year to RMB 17.16 billion, with an operating profit margin of 2.68%, up 1.13 percentage points, benefiting from revenue growth and cost reduction strategies [4] Operational Metrics - The overall gross margin for 1H25 was 7.11%, down 0.33 percentage points, primarily due to a slight decrease in the proportion of high-margin businesses [5] - The sales expense ratio was 2.74%, down 0.13 percentage points, while the management expense ratio was 1.28%, down 0.05 percentage points, and the financial expense ratio was 0.35%, down 0.02 percentage points [5] Strategic Outlook - The company aims to strengthen its market leadership through differentiated regional business strategies and optimization of its business structure [3] - The dual-brand strategy focusing on professional pharmacies and Guoda pharmacies is expected to drive high-quality growth [4]

Core Viewpoint - The report from CICC maintains the net profit forecast for China National Pharmaceutical Group (01099) at RMB 7.475 billion and RMB 7.926 billion for 2025 and 2026 respectively, reflecting a year-on-year growth of 6.0% for both years [1] Group 1: Financial Performance - For the first half of 2025, the company reported operating revenue of RMB 286.043 billion, a decrease of 2.95% year-on-year, and a net profit attributable to shareholders of RMB 3.466 billion, down 6.43% year-on-year, resulting in earnings per share of RMB 1.11, which aligns with CICC's expectations [1] - The company's pharmaceutical distribution revenue for 1H25 was RMB 218.527 billion, a decline of 3.52% year-on-year, primarily due to the ongoing expansion of centralized procurement and national negotiations [2] - The medical device distribution revenue for 1H25 was RMB 57.053 billion, down 2.46% year-on-year, influenced by proactive business governance strategies and price reductions in centralized procurement products [2] Group 2: Profitability and Margins - The overall gross margin for the first half of 2025 was 7.11%, a decrease of 0.33 percentage points year-on-year, mainly due to a slight decline in the proportion of high-margin businesses [4] - The operating profit margin for the pharmaceutical retail business increased by 1.13 percentage points to 2.68% in 1H25, benefiting from revenue growth, network optimization strategies, and significant cost reductions [3] Group 3: Business Strategy and Outlook - The company aims to consolidate its leading position in the industry by advancing a differentiated regional business development strategy and accelerating business structure optimization [2] - The company is expected to achieve high-quality growth through the continuous deepening of its "dual-brand" strategy involving professional pharmacies and Guoda pharmacies [3]

Summary of Key Points Core Viewpoint - The company has renewed its product/service mutual supply framework agreement with Sinopharm Holdings, extending the agreement from January 1, 2026, to December 31, 2028, to support ongoing business needs [1][2]. Group Overview - The mutual supply framework agreement is essential for the company's operations, which span pharmaceutical manufacturing, medical devices, and healthcare services, creating a necessary and ongoing business relationship with Sinopharm Holdings [2][4]. Financial Data - The actual transactions between the company and Sinopharm Holdings for the years 2023, 2024, and the first half of 2025 are as follows: - Sales of raw materials or goods: 642,908,000 RMB in 2023, 557,908,000 RMB in 2024, and 292,003,000 RMB in the first half of 2025 - Purchases of raw materials or goods: 35,794,000 RMB in 2023, 45,187,000 RMB in 2024, and 21,991,000 RMB in the first half of 2025 - Provision of services: 93,000 RMB in 2023, 49,000 RMB in 2024, and 4,000 RMB in the first half of 2025 - Acceptance of services: 427,000 RMB in 2023, 179,000 RMB in 2024, and 121,000 RMB in the first half of 2025 [3][4]. Expected Transaction Limits - The expected transaction limits under the new framework agreement are as follows: - Sales of raw materials or goods: 1,100,000,000 RMB for 2026, 1,300,000,000 RMB for 2027, and 1,500,000,000 RMB for 2028 - Purchases of raw materials or goods: 80,000,000 RMB for 2026, 100,000,000 RMB for 2027, and 120,000,000 RMB for 2028 - Provision of services: 100,000 RMB for 2026, 120,000 RMB for 2027, and 150,000 RMB for 2028 - Acceptance of services: 2,000,000 RMB for 2026, 2,500,000 RMB for 2027, and 3,000,000 RMB for 2028 [4][5]. Approval Process - The renewal of the framework agreement requires approval from the company's shareholders after being reviewed and approved by the board of directors, excluding related directors [5][9].

为反映带量采购扩张对药品及医疗器械业务的影响，该行将2025至27年收入预测下调1.6%至1.7%，盈 利预测下调3.1%、2.9%及2.8%；目标价由22.2港元微升至23港元，重申"买入"评级。 美银证券发表研报指，国药控股上半年总收入按年跌2.9%至2860亿元，毛利率由去年同期的7.4%降至 7.1%，归属股东净利润按年下降6.4%至35亿元。至于次季，总收入按年跌2.1%、按季升1.9%至1444亿 元，归属股东净利润按年跌12%至20亿元。 ...

Core Viewpoint - Despite facing short-term pressures from regional healthcare fund challenges and the expansion of volume-based procurement, the management of China National Pharmaceutical Group (Sinopharm) remains optimistic about the long-term development of the industry [1] Group 1: Management Outlook - Management anticipates a potential turning point starting in the second half of this year due to rapid growth in sales of innovative drugs and medical devices, increased market share driven by professional services, and a relatively low base from the second half of last year [1] Group 2: Financial Forecast Adjustments - The revenue forecasts for 2025, 2026, and 2027 have been reduced by 8%, 9%, and 11% respectively [1] - The net profit forecasts for the same years have been adjusted downwards by 12%, 11%, and 11% respectively [1] - The target price has been slightly decreased from HKD 23.8 to HKD 22.7, while maintaining a "Buy" rating [1]

美银证券发布研报称，国药控股(01099)上半年总收入同比跌2.9%至2,860亿元人民币(下同)，毛利率由 去年同期的7.4%降至7.1%，归属股东净利润同比下降6.4%至35亿元。至于次季，总收入同比跌2.1%、 按季升1.9%至1,444亿元，归属股东净利润同比跌12%至20亿元。为反映带量采购扩张对药品及医疗器 械业务的影响，该行将2025至27年收入预测下调1.6%至1.7%，盈利预测下调3.1%、2.9%及2.8%。目标 价由22.2港元升至23元，重申"买入"评级。 ...

智通财经APP获悉，美银证券发布研报称，国药控股(01099)上半年总收入同比跌2.9%至2,860亿元人民 币(下同)，毛利率由去年同期的7.4%降至7.1%，归属股东净利润同比下降6.4%至35亿元。至于次季，总 收入同比跌2.1%、按季升1.9%至1,444亿元，归属股东净利润同比跌12%至20亿元。为反映带量采购扩 张对药品及医疗器械业务的影响，该行将2025至27年收入预测下调1.6%至1.7%，盈利预测下调3.1%、 2.9%及2.8%。目标价由22.2港元升至23元，重申"买入"评级。 ...

Group 1 - The core viewpoint of the news is the announcement regarding the review decision of Guoyao Holdings Henan Medical Equipment Co., Ltd. related to a procurement project, where the company's appeal against a previous violation decision was rejected [1][4]. - The applicant, Guoyao Holdings Henan Medical Equipment Co., Ltd., contested a violation decision made by a procurement management department, seeking to overturn the ruling [1][4]. - The review concluded that the applicant's claims were unfounded, and the original violation decision was upheld, maintaining the penalties imposed [1][4]. Group 2 - The violation involved collusion in bidding during the procurement activity for project number 2021-JQ64-W3014, leading to a two-year ban from participating in military procurement activities [4][6]. - The ban on Guoyao Holdings Henan Medical Equipment Co., Ltd. is effective from April 10, 2025, and applies to its legal representative and other companies under their control [6].

Policy Developments - The National Medical Products Administration (NMPA) has released multiple registration review guidelines for cancer screening in vitro diagnostic reagents, aiming to further standardize the management of these products [1] Medical Device Approvals - Sinno Medical announced that its subsidiary received a medical device registration certificate for a disposable microcatheter, which will enhance its product portfolio in the neurointerventional sector [2] - Heng Rui Medicine received approval for clinical trials of HRS-6093 tablets, a novel oral KRASG12D inhibitor, and HRS-2162 injection, a new generation muscle relaxant antagonist, both of which currently have no similar products approved in the market [3] - Mayinglong's subsidiary obtained a drug registration certificate for Olopatadine Hydrochloride eye drops, used for treating allergic conjunctivitis [4] Financial Reports - Xiaofang Pharmaceutical reported a 3.06% year-on-year increase in revenue to 270 million yuan and a 1.69% increase in net profit to 121 million yuan for the first half of the year [5] - Renhe Pharmaceutical's revenue decreased by 16.46% to 1.975 billion yuan, with a net profit decline of 13.87% to 290 million yuan for the same period [6] - China National Pharmaceutical Group announced a revenue of 286 billion yuan and an operating profit of 7.45 billion yuan for the first half of the year, with a gross margin of 7.11% [7] Capital Market Activities - BeiGene entered into a royalty purchase agreement with Royalty Pharma, agreeing to pay $885 million for the rights to a significant portion of royalties from the monoclonal antibody Imdelltra outside of China [9] - Terumo Corporation announced a $1.5 billion acquisition of OrganOx to expand its presence in the transplant medicine sector, focusing on liver preservation technology [10] Industry Developments - A domestic team has successfully utilized brain-computer interface technology for precise diagnosis and treatment of hydrocephalus, significantly reducing diagnosis time from 2-3 days to 30 minutes, marking a breakthrough in the application of this technology [11] - Sailun Biotech has launched its rabies serum product for sale in several provinces, becoming the only company to market this product [12] Corporate News - Yifeng Pharmacy announced the resignation of its Vice President, Zhang Jia, due to personal reasons [13]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性 亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因倚賴該等內容而引致 之任何損失承擔任何責任。 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第 13.10B 條作出。 以下公告的中文原稿將由國藥控股股份有限公司於 2025 年 8 月 25 日於中國貨幣網網站 (http://www.chinamoney.com.cn)及上海清算所網站(http://www.shclearing.com.cn)發佈，僅供參閲。 承董事會命 國藥控股股份有限公司 董事長 趙炳祥 中國，上海 2025 年 8 月 25 日 於本公告日期，執行董事為連萬勇先生及孫京林先生；非執行董事為趙炳祥先生、陳啟宇先生、祖敬先 生、邢永剛先生、陳玉卿先生、文德鏞先生及馮蓉麗女士；獨立非執行董事為李培育先生、吳德龍先生、 俞衛鋒先生、石晟昊先生及陳威如先生。 * 本公司以其中文名稱及英文名稱「 Sinopharm Group Co. Ltd. 」根據香港公司條例註冊為非香港公司。 25 重要提示 发行人承诺将及时、公 ...