Core Viewpoint - Shenwei Pharmaceutical (02877) reported a decline in revenue and profit for the first half of 2025, with total revenue at 1.653 billion RMB, down 20.8% year-on-year, and net profit at 615 million RMB, down 1.89% year-on-year [1] Financial Performance - The company's gross profit margin decreased from 75.3% in the same period last year to 72.2%, primarily due to rising raw material costs and the impact of centralized procurement on drug prices [1] - Operating profit for the first six months of 2025 also decreased compared to the same period last year, but net profit only slightly decreased by 1.9% due to increased investment income and cost control measures [1] - Sales and distribution costs and administrative expenses were reduced by approximately 20.7% and 12.9% respectively compared to the same period last year, resulting in a net profit margin increase from 30.0% to 37.2% [1] Product Sales Breakdown - Oral products accounted for 65.8% of total sales in the first half of 2025, while injectable products made up 34.2% [1] - Total sales of injectable products decreased by 27.4% year-on-year, with significant declines in sales for specific products such as Qingkailing injection and Shenmai injection, which fell by 50.1% and 21.0% respectively [2] - Other injectable products, including Shuxue Ning injection, Guanzhong Ning injection, and Danshen injection, also experienced sales declines of 6.3%, 9.6%, and 24.6% respectively [2]

| 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的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因 | | | --- | --- | | 公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 | | | 股票發行人現金股息公告 | | | 發行人名稱 | 中國神威藥業集團有限公司 | | 股份代號 | 02877 | | 多櫃檯股份代號及貨幣 | 不適用 | | 相關股份代號及名稱 | 不適用 | | 公告標題 | 二零二五年財政年度第二次中期股息 | | 公告日期 | 2025年8月27日 | | 公告狀態 | 新公告 | | 股息信息 | | | 股息類型 | 其他 | | 二零二五年財政年度第二次中期股息 | | | 股息性質 | 普通股息 | | 財政年末 | 2025年12月31日 | | 宣派股息的報告期末 | 2025年12月31日 | | 宣派股息 | 每 股 0.11 RMB | | 股東批准日期 | 不適用 | | 香港過戶登記處相關信息 | | | 派息金額及公司預設派發貨幣 | 每 股 0.12 HKD | | 匯率 | 1 R ...

[Company Overview and Financial Summary](index=1&type=section&id=Company%20Overview%20and%20Financial%20Summary) [Financial Highlights](index=1&type=section&id=1.1%20Financial%20Highlights) In the first half of 2025, the Group faced industry challenges with declining turnover and gross profit margin, yet net profit only slightly decreased due to stringent cost control and increased investment income, maintaining stable operating cash flow H1 2025 Financial Highlights | Metric | H1 2025 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | | Turnover | 1,652,698 | -20.8% | | Gross Profit Margin | 72.2% | -3.1 percentage points | | Profit for the Period | 614,663 | -1.9% | | Earnings Per Share | 81 cents | -2.4% | | Net Cash from Operating Activities | 566,319 | +0.4% | | Second Interim Dividend | 11 cents per share | - | [Performance Overview and Market Environment](index=2&type=section&id=1.2%20Performance%20Overview%20and%20Market%20Environment) In H1 2025, the Group experienced negative operational growth with sales down 20.8% year-on-year and gross margin falling from 75.3% to 72.2%, primarily due to shrinking TCM demand, consumption downgrade, centralized procurement price cuts, rising production costs, and medical insurance cost controls; however, net profit only slightly decreased by 1.9% through cost efficiency and increased investment income - Overall sales decreased by **20.8%** to **RMB 1,652,698,000**, primarily due to macro factors such as shrinking demand in the Traditional Chinese Medicine (TCM) industry, consumption downgrade, centralized procurement price reductions, rising production costs, and medical insurance cost controls[4](index=4&type=chunk) - Gross profit margin decreased from **75.3%** in the same period last year to **72.2%**, mainly due to increased raw material procurement costs and the impact of centralized procurement on drug prices[4](index=4&type=chunk) - Through cost control and efficiency improvements, sales and distribution costs decreased by **20.7%**, administrative expenses by **12.9%**, and coupled with increased investment income, net profit only slightly decreased by **1.9%**, with net profit margin improving from **30.0%** to **37.2%**[5](index=5&type=chunk) - Net cash from operating activities was **RMB 566,319,000**, a slight increase of **0.4%** year-on-year, generating approximately **RMB 465,705,000** in free cash flow during the first half[5](index=5&type=chunk) [Dividend Declaration](index=3&type=section&id=1.3%20Dividend%20Declaration) The Board declared a second interim dividend of RMB 11 cents per share for 2025, bringing the total dividends paid to shareholders for 2025 to RMB 47 cents per share, including the first interim dividend - Declared a second interim dividend of **RMB 11 cents per share** for 2025[6](index=6&type=chunk) - Together with the first interim dividend of **RMB 36 cents per share** for 2025, total dividends paid to shareholders for 2025 amounted to **RMB 47 cents per share**[6](index=6&type=chunk) [Operating Performance Analysis](index=3&type=section&id=Operating%20Performance%20Analysis) [Sales by Dosage Form](index=3&type=section&id=2.1%20Sales%20by%20Dosage%20Form) In H1 2025, the Group experienced a general decline in sales across all dosage forms, with total sales decreasing by 20.8% year-on-year, while oral products remained a key development strategy, accounting for 65.8% of total sales H1 2025 Sales by Dosage Form | Dosage Form | H1 2025 Sales (RMB thousands) | Y-o-Y Change | 2025 Sales Share | | :--- | :--- | :--- | :--- | | Injections | 565,628 | -27.4% | 34.2% | | Soft Capsules | 217,383 | -24.7% | 13.2% | | Granules | 272,695 | -21.0% | 16.5% | | TCM Formula Granules | 487,717 | -12.1% | 29.5% | | Others | 109,275 | -8.1% | 6.6% | | Total Oral Products | 1,087,070 | -16.9% | 65.8% | | Total Sales | 1,652,698 | -20.8% | 100.0% | - Oral products accounted for **65.8%** of total sales, while injection products accounted for **34.2%**, with the Group continuing to prioritize the expansion of oral preparations as a key development strategy[7](index=7&type=chunk) [Injections](index=3&type=section&id=2.1.1%20Injections) Total sales of injection products decreased by 27.4% year-on-year, primarily due to significant reductions in sales of Qingkailing Injection and Shenmai Injection - Total sales of injection products decreased by **27.4%**, with Qingkailing Injection and Shenmai Injection sales decreasing by **50.1%** and **21.0%** respectively[8](index=8&type=chunk) [Soft Capsules](index=4&type=section&id=2.1.2%20Soft%20Capsules) Total sales of soft capsule products decreased by 24.7% year-on-year, mainly due to reduced sales of Wufu Xinnaoqing Soft Capsules, Huoxiang Zhengqi Soft Capsules, and Qingkailing Soft Capsules, though exclusive products Jiangzhi Tongluo Soft Capsules and Dandeng Tongnao Soft Capsules achieved growth - Total sales of soft capsule products decreased by **24.7%**, with Wufu Xinnaoqing Soft Capsules, Huoxiang Zhengqi Soft Capsules, and Qingkailing Soft Capsules sales decreasing by **67.4%**, **16.0%**, and **24.6%** respectively[9](index=9&type=chunk) - Exclusive products Jiangzhi Tongluo Soft Capsules and Dandeng Tongnao Soft Capsules recorded sales growth of **16.5%** and **15.2%** respectively[9](index=9&type=chunk) [Granules](index=4&type=section&id=2.1.3%20Granules) Total sales of granule products decreased by 21.0% year-on-year, primarily due to significant reductions in sales of respiratory medications Phenamin Caffeine Granules and Xiao'er Qingfei Huatan Granules, though the exclusive product Shujin Tongluo Granules achieved growth - Total sales of granule products decreased by **21.0%**, with Phenamin Caffeine Granules and Xiao'er Qingfei Huatan Granules sales decreasing by **40.1%** and **57.8%** respectively[9](index=9&type=chunk) - Exclusive product Shujin Tongluo Granules recorded sales growth of **43.8%**[9](index=9&type=chunk) [TCM Formula Granules](index=4&type=section&id=2.1.4%20TCM%20Formula%20Granules) Sales of TCM formula granules decreased by 12.1% year-on-year, primarily due to increased overdue accounts receivable leading to delayed shipments, and intensified market competition - Sales of TCM formula granules decreased by **12.1%**, mainly due to increased overdue accounts receivable and the Group's temporary suspension of shipments to institutions not meeting risk management requirements[9](index=9&type=chunk) [Other Dosage Forms](index=3&type=section&id=2.1.5%20Other%20Dosage%20Forms) Sales of other dosage forms, including pills and tablets, decreased by 8.1% year-on-year - Sales of other dosage forms decreased by **8.1%** year-on-year[7](index=7&type=chunk) [Sales by Drug Category](index=4&type=section&id=2.2%20Sales%20by%20Drug%20Category) The Group experienced significant declines in sales of essential medicines and prescription drugs, with an even larger drop in OTC drugs, reflecting weak market demand and policy impacts [Essential Medicines](index=4&type=section&id=2.2.1%20Essential%20Medicines) Overall sales of the Group's regularly produced drugs listed in the National Essential Medicines Catalogue decreased by 30.7% to RMB 582,080,000, accounting for 35.2% of total sales, mainly due to reduced sales of related varieties; national policies promoting widespread use of essential medicines are expected to drive future growth - Eighteen of the Group's regularly produced drugs are listed in the National Essential Medicines Catalogue, but overall sales decreased by **30.7%** to **RMB 582,080,000**, accounting for **35.2%** of the Group's total sales[10](index=10&type=chunk) - The National Health Commission emphasized improving the national drug system, implementing grassroots drug linkage services, and consolidating the essential medicines system, which is expected to drive sustained growth in essential medicines[11](index=11&type=chunk) [Prescription and Over-the-Counter Drugs](index=5&type=section&id=2.2.2%20Prescription%20and%20Over-the-Counter%20Drugs) Prescription drug sales decreased by 20.4% year-on-year, accounting for 89.3% of total sales; OTC drug sales decreased by 24.0%, accounting for 10.7% H1 2025 Sales by Drug Category and Efficacy | Drug Category | H1 2025 Sales (RMB thousands) | Sales Share | Sales Change | | :--- | :--- | :--- | :--- | | TCM Formula Granules | 487,717 | 29.5% | -12.1% | | Respiratory Prescription Drugs | 264,410 | 16.0% | -47.6% | | Cardiovascular and Cerebrovascular Injection Prescription Drugs | 294,462 | 17.8% | -14.9% | | Exclusive Oral Prescription Drugs | 266,627 | 16.1% | 3.6% | | Other Prescription Drugs | 162,726 | 9.9% | -15.2% | | **Total Prescription Drugs** | **1,475,942** | **89.3%** | **-20.4%** | | **OTC Drugs** | **176,756** | **10.7%** | **-24.0%** | | **Total Sales** | **1,652,698** | **100%** | **-20.8%** | [Key Product Line Details](index=6&type=section&id=2.3%20Key%20Product%20Line%20Details) The Group's key product lines face diverse challenges, with declining sales in TCM formula granules and respiratory drugs, cardiovascular and cerebrovascular injections affected by centralized procurement, but exclusive oral prescription drugs maintaining growth, while OTC drugs decreased due to high base and consumer confidence [TCM Formula Granules Business](index=6&type=section&id=2.3.1%20TCM%20Formula%20Granules%20Business) Sales of TCM formula granules decreased by 12.1% to RMB 487,717,000, accounting for 29.5% of total sales, primarily due to increased overdue accounts receivable leading to delayed shipments and price wars from new suppliers; the Group is reorganizing its team, increasing national market personnel, and prioritizing hospital market development in 10 other provinces - Sales of TCM formula granules decreased by **12.1%** to **RMB 487,717,000**, accounting for **29.5%** of total sales, ranking among the top five listed companies for TCM formula granules nationwide[13](index=13&type=chunk) - The sales decline was mainly due to increased overdue accounts receivable leading to temporary suspension of shipments to some hospitals and primary healthcare institutions, as well as price wars from new suppliers[13](index=13&type=chunk) - The Group is reorganizing its formula granule business unit team, increasing national market personnel, and prioritizing the development of hospital markets in 10 provinces outside Hebei and Yunnan[14](index=14&type=chunk) [Respiratory Prescription Drugs](index=6&type=section&id=2.3.2%20Respiratory%20Prescription%20Drugs) Sales of respiratory prescription drugs significantly decreased by 47.6% to RMB 264,410,000, accounting for 16.0% of total sales, primarily due to a high base of social inventory post-pandemic, slowing macroeconomy, and inventory adjustments in terminal channels; the self-developed 'JC Capsule' has completed Phase III clinical trials and is expected to obtain a production license in the second half of the year - Sales of respiratory prescription drugs significantly decreased by **47.6%** to **RMB 264,410,000**, with Qingkailing Injection and Phenamin Caffeine Granules sales decreasing by **50.1%** and **40.1%** respectively[15](index=15&type=chunk) - The sales decline was mainly due to a high base post-pandemic, weak market demand caused by a slowing macroeconomy, and inventory adjustments by medical institutions and retail pharmacies[16](index=16&type=chunk) - The self-developed **'JC Capsule'** for upper respiratory tract infections has completed Phase III clinical trials and is expected to obtain a production license in the second half of 2025[16](index=16&type=chunk) [Cardiovascular and Cerebrovascular Injection Prescription Drugs](index=7&type=section&id=2.3.3%20Cardiovascular%20and%20Cerebrovascular%20Injection%20Prescription%20Drugs) Sales of cardiovascular and cerebrovascular injection prescription drugs recorded a negative growth of 14.9% to RMB 294,462,000, accounting for 17.8% of total sales, primarily due to the national centralized procurement's 'dual control' policy, leading to a significant decline in hospital procurement demand - Sales of cardiovascular and cerebrovascular injection prescription drugs recorded a negative growth of **14.9%** to **RMB 294,462,000**[17](index=17&type=chunk) - The primary sales channel is hospitals, and sales significantly declined due to the implementation of 'dual control' policies on drug prices and procurement volumes across various regions following national centralized procurement[17](index=17&type=chunk) [Exclusive Oral Prescription Drugs](index=7&type=section&id=2.3.4%20Exclusive%20Oral%20Prescription%20Drugs) Sales of exclusive oral prescription drugs grew by 3.6% year-on-year, accounting for 16.1% of total sales, with Jiangzhi Tongluo Soft Capsules, Dandeng Tongnao Soft Capsules, and Shujin Tongluo Granules all achieving significant growth; Qihuang Tongmi Soft Capsules and Dandeng Tongnao Soft Capsules received recommendations in expert consensus and medication guidelines, enhancing clinical recognition; the Group will continue to increase evidence-based medicine research and academic promotion - Sales of exclusive oral prescription drugs increased by **3.6%**, accounting for **16.1%** of total sales[18](index=18&type=chunk)[19](index=19&type=chunk) - Jiangzhi Tongluo Soft Capsules, Dandeng Tongnao Soft Capsules, and Shujin Tongluo Granules grew by **16.5%**, **15.2%**, and **43.8%** respectively[18](index=18&type=chunk) - Qihuang Tongmi Soft Capsules were recommended in the 'Expert Consensus on Integrated Traditional Chinese and Western Medicine Diagnosis and Treatment of Functional Constipation (2025)', and Dandeng Tongnao Soft Capsules were included in the 'Guidelines for Rational Drug Use in Cerebrovascular Diseases', enhancing their clinical standing[19](index=19&type=chunk)[20](index=20&type=chunk) [Over-the-Counter Drugs](index=9&type=section&id=2.3.5%20Over-the-Counter%20Drugs) Overall OTC drug sales decreased by 24.0% year-on-year, with Huoxiang Zhengqi Soft Capsules, Qingkailing Soft Capsules, and Xiao'er Qingfei Huatan Granules all experiencing sales declines, primarily due to high base reserves by the public and pharmacies post-pandemic, and slowing economic growth affecting consumer confidence - Overall OTC drug sales decreased by **24.0%** year-on-year, with Huoxiang Zhengqi Soft Capsules and Qingkailing Soft Capsules declining by **16.0%** and **24.6%** respectively[22](index=22&type=chunk) - Xiao'er Qingfei Huatan Granules sales decreased by **57.8%**[22](index=22&type=chunk) - The sales reduction was mainly due to high base reserves post-pandemic and slowing economic growth affecting consumer confidence[22](index=22&type=chunk) [Research and Development & Innovation](index=9&type=section&id=Research%20and%20Development%20%26%20Innovation) [New Drug Clinical Trial Progress](index=9&type=section&id=3.1%20New%20Drug%20Clinical%20Trial%20Progress) The Group continues to increase R&D investment, focusing on modern TCM new drug development for chronic diseases; the exclusive innovative drug 'Q-B-Q-F Concentrated Pills' is still in Phase III clinical trials, while 'Sailuotong Capsules' and 'JC Capsules' have completed Phase III clinical trials, with the goal of completing production license applications by year-end - The exclusive innovative drug **'Q-B-Q-F Concentrated Pills'** is still in Phase III clinical trials[23](index=23&type=chunk) - **'Sailuotong Capsules'** and **'JC Capsules'** have completed Phase III clinical trials, with the goal of completing the submission of production license applications by the end of 2025[23](index=23&type=chunk) - R&D expenses accounted for **3.0%** of total sales revenue during the period, and the Group will continue to develop innovative TCM drugs focusing on advantageous areas such as cardiovascular and cerebrovascular diseases, pediatric diseases, orthopedic diseases, gynecological diseases, and geriatric diseases[24](index=24&type=chunk) [Technological Innovation and Awards](index=10&type=section&id=3.2%20Technological%20Innovation%20and%20Awards) The Group's 'Research and Application Project of Hawthorn Leaves and Formula Granules, Hebei Characteristic Traditional Chinese Medicine' won the Third Prize of Hebei Provincial Science and Technology Progress Award; this project achieved significant results in hawthorn leaf quality evaluation, material basis research for formula granules, and quality standard formulation, promoting the standardized development of the TCM industry - The **'Research and Application Project of Hawthorn Leaves and Formula Granules, Hebei Characteristic Traditional Chinese Medicine'** won the **Third Prize of Hebei Provincial Science and Technology Progress Award**[25](index=25&type=chunk) - The project achieved significant results in constructing a quality evaluation system for hawthorn leaves, researching the material basis of formula granules, formulating quality standards, and industrial upgrading, filling a gap in this field[25](index=25&type=chunk) - A total of **49 papers** were published, **1 provincial standard** and **1 local standard** were formulated, and **2 authorized utility model patents** were obtained[25](index=25&type=chunk) [Development of Ancient Classic Prescriptions](index=11&type=section&id=3.3%20Development%20of%20Ancient%20Classic%20Prescriptions) The Group actively promotes the inheritance and innovation of Traditional Chinese Medicine, having developed and researched over 100 ancient classic prescriptions for new drug transformation; the self-developed 'Shaoyao Gancao Tang Granules' received NMPA approval for market launch, becoming the first approved classic prescription in 2025; Phase II clinical trials for 'Yigong San Granules', a Class 1.1 new TCM drug for chronic anemia, are progressing smoothly - Over **100 ancient classic prescriptions** have been developed and researched for new drug transformation, and the registration applications for multiple Class 1.1 and Class 3.1 new TCM drugs are being accelerated[26](index=26&type=chunk) - The self-developed **'Shaoyao Gancao Tang Granules'** received approval from the National Medical Products Administration (NMPA) for market launch, becoming the **first approved classic prescription in 2025** and the Group's second approved classic prescription[26](index=26&type=chunk) - Preparations for Phase II clinical trials of **'Yigong San Granules'**, a Class 1.1 new TCM drug for chronic anemia, are progressing smoothly, with its clinical value particularly prominent for those unresponsive to EPO treatment[26](index=26&type=chunk) [Industry Policies and Market Dynamics](index=11&type=section&id=Industry%20Policies%20and%20Market%20Dynamics) [National Support Policies for TCM](index=11&type=section&id=4.1%20National%20Support%20Policies%20for%20TCM) In H1 2025, the state continued to introduce multiple policies supporting the high-quality development of the TCM industry, including deepening the '14th Five-Year Plan' for TCM development, promoting standard system construction, enhancing TCM quality and technological innovation, incorporating innovative drugs and high-value TCM drugs into medical insurance, and promoting TCM services to grassroots levels, providing opportunities for TCM enterprises to expand their markets - The National Conference of Directors of Traditional Chinese Medicine Bureaus outlined key tasks for 2025, including deepening the **'14th Five-Year Plan' for TCM development**, promoting standard system construction, and enhancing TCM quality and technological innovation[28](index=28&type=chunk) - The National Healthcare Security Administration announced the inclusion of innovative drugs and high-value TCM drugs in medical insurance policy adjustments and management, supporting TCM innovation[29](index=29&type=chunk) - The National Health Commission promoted the optimization of community and grassroots TCM service systems, enhancing basic public health service capabilities in TCM, thereby driving TCM enterprises to expand their markets at the grassroots level[29](index=29&type=chunk) [National Centralized Procurement Bidding for Proprietary Chinese Medicines](index=12&type=section&id=4.2%20National%20Centralized%20Procurement%20Bidding%20for%20Proprietary%20Chinese%20Medicines) Eight of the Group's key products, including Qingkailing Injection and Shuxuening Injection, successfully won bids in the national centralized procurement for proprietary Chinese medicines; this successful bid aligns with DRGs/DIP payment requirements, enhancing the Group's product demand, market coverage, and sales potential in the terminal market - Eight of the Group's key products, including **Qingkailing Injection**, **Shuxuening Injection**, **Shenmai Injection**, **Shuanghuanglian Injection**, **Dengzhanhuasu Injection**, **Yinzhihuang Injection**, **Qingkailing Soft Capsules**, and **Xuesaitong Dripping Pills**, successfully won bids in the national centralized procurement for proprietary Chinese medicines[30](index=30&type=chunk) - The winning products cover therapeutic areas such as cardiovascular and cerebrovascular diseases, respiratory diseases, and digestive system diseases, all of which are commonly used medical insurance and essential drug varieties in clinical practice[30](index=30&type=chunk) - This centralized procurement bid win aligns with DRGs/DIP payment requirements, which will further enhance the Group's product demand, market coverage, and greater market sales potential in the terminal market[31](index=31&type=chunk) [Financial Analysis](index=13&type=section&id=Financial%20Analysis) [Turnover](index=13&type=section&id=5.1%20Turnover) In H1 2025, the Group's turnover decreased by 20.8% year-on-year to RMB 1,652,698,000, with major dosage forms such as injections, soft capsules, granules, and TCM formula granules all experiencing declining turnover H1 2025 Turnover by Dosage Form | Dosage Form | H1 2025 Turnover (RMB thousands) | Y-o-Y Change | Share of Total Turnover | | :--- | :--- | :--- | :--- | | Injections | 565,628 | -27.4% | 34.2% | | Soft Capsules | 217,383 | -24.7% | 13.2% | | Granules | 272,695 | -21.0% | 16.5% | | TCM Formula Granules | 487,717 | -12.1% | 29.5% | | Other Dosage Forms | 109,275 | -8.1% | 6.6% | | Total Turnover | 1,652,698 | -20.8% | 100.0% | - Turnover from prescription drugs and OTC drugs was **RMB 1,475,942,000** and **RMB 176,756,000** respectively, accounting for **89.3%** and **10.7%** of total turnover[32](index=32&type=chunk) [Cost of Sales](index=13&type=section&id=5.2%20Cost%20of%20Sales) In H1 2025, the cost of sales was RMB 459,092,000, representing 27.8% of turnover, with direct materials accounting for 66.8% of total production costs - Cost of sales was **RMB 459,092,000**, accounting for **27.8%** of turnover[33](index=33&type=chunk) - Direct materials, direct labor, and other production costs accounted for **66.8%**, **14.3%**, and **18.9%** of total production costs respectively[33](index=33&type=chunk) [Operating Gross Profit Margin](index=13&type=section&id=5.3%20Operating%20Gross%20Profit%20Margin) In H1 2025, the overall gross profit margin was 72.2%, a decrease from 75.3% in the same period last year, with average gross profit margins for all major product dosage forms declining to varying degrees H1 2025 Average Gross Profit Margin by Dosage Form | Dosage Form | H1 2025 Gross Profit Margin | H1 2024 Gross Profit Margin | | :--- | :--- | :--- | | Injections | 71.6% | 76.0% | | Soft Capsules | 76.0% | 77.8% | | Granules | 77.5% | 78.6% | | TCM Formula Granules | 69.7% | 72.9% | | **Overall Gross Profit Margin** | **72.2%** | **75.3%** | [Other Income](index=14&type=section&id=5.4%20Other%20Income) Other income primarily included enterprise development funds of RMB 156,300,000, a slight decrease from the same period last year - Other income primarily consisted of enterprise development funds of **RMB 156,300,000** (H1 2024: RMB 162,297,000)[35](index=35&type=chunk) [Investment Income](index=14&type=section&id=5.5%20Investment%20Income) Investment income significantly increased, primarily from interest income on bank deposits and structured deposits, and income from financial product investments - Investment income primarily included interest income from bank deposits and structured deposits of **RMB 119,821,000** (H1 2024: RMB 116,556,000) and income from financial product investments of **RMB 98,469,000** (H1 2024: RMB 4,617,000)[36](index=36&type=chunk) [Other Gains and Losses](index=14&type=section&id=5.6%20Other%20Gains%20and%20Losses) The Group recorded a net exchange gain of RMB 32,843,000, primarily due to changes in the exchange rates of AUD and HKD against RMB - Recorded a net exchange gain of **RMB 32,843,000** (H1 2024: RMB 19,118,000), primarily due to changes in the exchange rates of AUD and HKD against RMB[37](index=37&type=chunk) [Impairment of Financial Assets](index=14&type=section&id=5.7%20Impairment%20of%20Financial%20Assets) The Group made an impairment reversal of RMB 2,706,000 for trade receivables and recognized an impairment of RMB 871,000 for trade receivables secured by bank notes - Made an impairment reversal of **RMB 2,706,000** for trade receivables (H1 2024: impairment of RMB 4,788,000)[38](index=38&type=chunk) - Recognized an impairment of **RMB 871,000** for trade receivables secured by bank notes (H1 2024: impairment reversal of RMB 502,000)[38](index=38&type=chunk) [Selling and Distribution Costs](index=14&type=section&id=5.8%20Selling%20and%20Distribution%20Costs) Selling and distribution costs decreased by 20.7% year-on-year, accounting for 39.2% of turnover, primarily due to the Group's enhanced cost control, reducing market development, marketing management, and promotional expenses, as well as sales personnel numbers and salaries - Selling and distribution costs decreased by **20.7%** year-on-year, accounting for **39.2%** of turnover[39](index=39&type=chunk) - Mainly due to enhanced cost control, reducing market development expenses, marketing management expenses, market promotion expenses, and the number and salaries of sales personnel[39](index=39&type=chunk) [Administrative Expenses](index=15&type=section&id=5.9%20Administrative%20Expenses) Administrative expenses decreased by approximately 12.9% year-on-year, accounting for about 7.7% of turnover - Administrative expenses decreased by approximately **12.9%** year-on-year, accounting for about **7.7%** of turnover (H1 2024: 7.0%)[40](index=40&type=chunk) [Research and Development Costs](index=15&type=section&id=5.10%20Research%20and%20Development%20Costs) Research and development costs accounted for approximately 3.0% of turnover, an increase from 2.1% in the same period last year - Research and development costs accounted for approximately **3.0%** of turnover (H1 2024: 2.1%)[41](index=41&type=chunk) [Taxation](index=15&type=section&id=5.11%20Taxation) Total taxation for the period was RMB 160,015,000, with the effective tax rate decreasing from 27.3% in the same period last year to 20.7%, primarily due to reduced withholding tax on dividends distributed by domestic subsidiaries - Total taxation for the period was **RMB 160,015,000**, with the effective tax rate decreasing from **27.3%** in the same period last year to **20.7%**[42](index=42&type=chunk) - Mainly due to a decrease in withholding tax on dividends distributed by domestic subsidiaries during the period compared to the same period last year[42](index=42&type=chunk) [Profit for the Period](index=15&type=section&id=5.12%20Profit%20for%20the%20Period) Net profit for H1 2025 was RMB 614,663,000, a 1.9% decrease from the same period last year, primarily due to increased raw material procurement costs and the impact of centralized procurement on drug prices, leading to reduced turnover and gross profit - Net profit was **RMB 614,663,000**, a decrease of **1.9%** compared to the same period last year[43](index=43&type=chunk) - The decrease in profit was mainly due to increased raw material procurement costs and the impact of centralized procurement on drug prices, leading to reduced turnover and gross profit[43](index=43&type=chunk) [Liquidity and Financial Resources](index=15&type=section&id=5.13%20Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's bank balances and cash amounted to RMB 6,860,819,000, indicating a robust financial position with sufficient resources for future development - As of June 30, 2025, bank balances and cash amounted to **RMB 6,860,819,000** (December 31, 2024: RMB 6,140,153,000)[44](index=44&type=chunk) - The fair value of financial assets at fair value through profit or loss was **RMB 100,419,000**[44](index=44&type=chunk) - The Directors believe the Group's financial position is robust, with sufficient financial resources to meet future development needs[44](index=44&type=chunk) [Capital Expenditure and Property, Plant and Equipment](index=16&type=section&id=5.14%20Capital%20Expenditure%20and%20Property%2C%20Plant%20and%20Equipment) In H1 2025, the Group's capital expenditure included additions to construction in progress of approximately RMB 59,126,000 and acquisition of other property, plant and equipment of approximately RMB 19,063,000; depreciation of property, plant and equipment was RMB 69,511,000 - Additions to construction in progress of **RMB 59,126,000** and acquisition of other property, plant and equipment of **RMB 19,063,000** in H1 2025[45](index=45&type=chunk) - Depreciation of property, plant and equipment was **RMB 69,511,000** (H1 2024: RMB 75,634,000)[45](index=45&type=chunk) [Condensed Consolidated Financial Statements](index=17&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=17&type=section&id=6.1%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement presents the Group's unaudited consolidated profit or loss and other comprehensive income for the six months ended June 30, 2025, showing key financial indicators such as turnover, gross profit, profit for the period, and earnings per share, along with comparisons to the prior year Summary of Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 1,652,698 | 2,086,695 | | Cost of Sales | (459,092) | (514,511) | | Gross Profit | 1,193,606 | 1,572,184 | | Other Income | 162,059 | 168,985 | | Investment Income | 218,290 | 121,173 | | Other Gains and Losses | 29,418 | 14,206 | | Reversal (Provision) for Impairment Loss on Financial Assets, Net | 1,835 | (4,286) | | Selling and Distribution Costs | (647,836) | (817,369) | | Administrative Expenses | (126,452) | (145,212) | | Research and Development Costs | (50,378) | (44,746) | | Finance Costs | (5,864) | (2,852) | | Profit Before Tax | 774,678 | 862,083 | | Taxation | (160,015) | (235,604) | | Profit and Total Comprehensive Income for the Period | 614,663 | 626,479 | | Basic Earnings Per Share | RMB 81 cents | RMB 83 cents | [Condensed Consolidated Statement of Financial Position](index=18&type=section&id=6.2%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This statement presents the Group's unaudited consolidated financial position as of June 30, 2025, including key components such as non-current assets, current assets, current liabilities, non-current liabilities, and shareholders' equity Summary of Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Non-current Assets** | **1,434,737** | **1,443,007** | | Property, Plant and Equipment | 1,225,148 | 1,219,402 | | **Current Assets** | **8,952,919** | **8,598,523** | | Inventories | 722,369 | 813,190 | | Trade Receivables | 915,803 | 908,115 | | Bank Balances and Cash | 6,860,819 | 6,140,153 | | **Current Liabilities** | **2,428,081** | **2,449,996** | | Trade Payables | 373,676 | 367,046 | | **Net Current Assets** | **6,524,838** | **6,148,527** | | **Non-current Liabilities** | **149,952** | **124,630** | | **Net Assets** | **7,809,623** | **7,466,904** | | **Total Equity** | **7,809,623** | **7,466,904** | [Notes to the Condensed Consolidated Financial Statements](index=20&type=section&id=6.3%20Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, explaining the basis of preparation, significant accounting policies, composition and reasons for changes in financial data, and important information such as related party transactions and capital commitments [General Information and Significant Accounting Policies](index=20&type=section&id=6.3.1%20General%20Information%20and%20Significant%20Accounting%20Policies) The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, presented in RMB, and adopt the same accounting policies and methods of computation as the annual consolidated financial statements for 2024 - The condensed consolidated financial statements are prepared in accordance with **International Accounting Standard 34** and the **Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited**[51](index=51&type=chunk) - Presented in the Company's functional currency, **RMB**, and adopt the same accounting policies and methods of computation as the annual consolidated financial statements for 2024[52](index=52&type=chunk)[53](index=53&type=chunk) - The application of amendments to International Financial Reporting Standards had no significant impact on the financial position and performance for the current and prior periods[54](index=54&type=chunk) [Turnover and Segment Information](index=20&type=section&id=6.3.2%20Turnover%20and%20Segment%20Information) The Group operates a single segment business of research, development, manufacturing, and trading of Traditional Chinese Medicine products, primarily selling to external customers in China (including Hong Kong); the notes provide an analysis of turnover by major products - The Group operates a single segment business of research, development, manufacturing, and trading of Traditional Chinese Medicine products[55](index=55&type=chunk) Analysis of Turnover from Major Products | Product | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Injections | 565,628 | 779,238 | | Soft Capsules | 217,383 | 288,759 | | Granules | 272,695 | 345,074 | | TCM Formula Granules | 487,717 | 554,726 | | Others | 109,275 | 118,898 | | **Total** | **1,652,698** | **2,086,695** | [Taxation](index=21&type=section&id=6.3.3%20Taxation) Taxation includes PRC corporate income tax, under-provision for prior years, withholding tax on distributed profits of PRC subsidiaries, and deferred tax; certain subsidiaries enjoy a 15% preferential tax rate or tax exemption; a 5% withholding tax rate applies to dividends distributed by PRC subsidiaries to overseas investors Composition of Taxation | Tax Category | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | PRC Corporate Income Tax | 97,329 | 144,053 | | Under-provision in Prior Years | 5,763 | 7,979 | | Withholding Tax on Distributed Profits of PRC Subsidiaries | 70,287 | 81,752 | | Deferred Tax | (13,364) | 1,820 | | **Total Taxation** | **160,015** | **235,604** | - Certain subsidiaries operating in Western China and recognized as high-tech enterprises enjoy a **15% preferential PRC corporate income tax rate**, while a subsidiary engaged in agricultural product business enjoys tax exemption[58](index=58&type=chunk) - Direct holding companies of PRC subsidiaries enjoy a **5% withholding tax rate**[58](index=58&type=chunk) [Profit for the Period](index=22&type=section&id=6.3.4%20Profit%20for%20the%20Period) Profit for the period is stated after deducting amortization of intangible assets, depreciation of property, plant and equipment, and including enterprise development funds, net exchange gains, and gains from disposal of property, plant and equipment Items Deducted (Included) in Profit for the Period | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Amortization of Intangible Assets | 4,424 | 5,044 | | Depreciation of Property, Plant and Equipment | 69,511 | 75,634 | | Enterprise Development Funds (included in other income) | (156,300) | (162,297) | | Net Exchange Gains (included in other gains and losses) | (32,843) | (19,118) | | Gain (Loss) on Disposal of Property, Plant and Equipment | (7,619) | 255 | [Dividends](index=23&type=section&id=6.3.5%20Dividends) The Company's Directors have declared a second interim dividend of RMB 11 cents per share for 2025, totaling RMB 83,094,000, to be paid on September 26, 2025 - The Directors have declared a second interim dividend of **RMB 11 cents per share** for 2025, totaling **RMB 83,094,000**[61](index=61&type=chunk) - The dividend will be paid on **September 26, 2025**, to shareholders whose names appear on the Company's register of members on **September 12, 2025**[61](index=61&type=chunk) [Earnings Per Share](index=23&type=section&id=6.3.6%20Earnings%20Per%20Share) Basic and diluted earnings per share attributable to owners of the Company are calculated based on profit for the period and the weighted average number of ordinary shares outstanding Earnings Per Share Calculation Data | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit attributable to owners of the Company | 614,663 | 626,479 | | Weighted average number of ordinary shares outstanding | 755,400,000 | 755,400,000 | | Basic and diluted earnings per share | RMB 81 cents | RMB 83 cents | [Property, Plant and Equipment](index=24&type=section&id=6.3.7%20Property%2C%20Plant%20and%20Equipment) In H1 2025, the Group added RMB 59,126,000 in construction in progress and acquired other property, plant and equipment totaling RMB 19,063,000; a gain of RMB 7,619,000 was recognized from the disposal of certain property, plant and equipment - Additions to construction in progress of **RMB 59,126,000** (H1 2024: RMB 40,518,000)[65](index=65&type=chunk) - Acquisition of other property, plant and equipment of **RMB 19,063,000** (H1 2024: RMB 22,088,000)[65](index=65&type=chunk) - Gain on disposal of property, plant and equipment of **RMB 7,619,000** (H1 2024: loss of RMB 255,000)[65](index=65&type=chunk) [Trade Receivables / Trade Receivables Secured by Bank Notes](index=24&type=section&id=6.3.8%20Trade%20Receivables%20%2F%20Trade%20Receivables%20Secured%20by%20Bank%20Notes) As of June 30, 2025, net trade receivables amounted to RMB 915,803,000, and net trade receivables secured by bank notes amounted to RMB 276,312,000; the Group generally grants credit terms ranging from six months to one year Trade Receivables and Trade Receivables Secured by Bank Notes | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables | 950,242 | 945,260 | | Less: Provision for Expected Credit Losses | (34,439) | (37,145) | | **Net Trade Receivables** | **915,803** | **908,115** | | Trade Receivables Secured by Bank Notes | 278,883 | 295,462 | | Less: Provision for Expected Credit Losses | (2,571) | (1,700) | | **Net Trade Receivables Secured by Bank Notes** | **276,312** | **293,762** | | **Total** | **1,192,115** | **1,201,877** | - The Group generally grants credit terms ranging from **six months to one year** to its trade customers[67](index=67&type=chunk) [Reversal (Provision) for Impairment Loss on Financial Assets under Expected Credit Loss Model, Net](index=25&type=section&id=6.3.9%20Reversal%20(Provision)%20for%20Impairment%20Loss%20on%20Financial%20Assets%20under%20Expected%20Credit%20Loss%20Model%2C%20Net) In H1 2025, an impairment loss reversal of RMB 2,706,000 was recognized for trade receivables, and an impairment loss of RMB 871,000 was recognized for trade receivables secured by bank notes, resulting in a net reversal of RMB 1,835,000 Reversal (Provision) for Impairment Loss on Financial Assets, Net | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Impairment loss recognized (reversed) on trade receivables | (2,706) | 4,788 | | Impairment loss recognized (reversed) on trade receivables secured by bank notes | 871 | (502) | | **Total** | **(1,835)** | **4,286** | [Trade Payables / Trade Payables Secured by Bank Notes](index=26&type=section&id=6.3.10%20Trade%20Payables%20%2F%20Trade%20Payables%20Secured%20by%20Bank%20Notes) As of June 30, 2025, total trade payables amounted to RMB 377,676,000, of which RMB 4,000,000 were trade payables secured by bank notes; the average credit period ranged from two to six months Trade Payables and Trade Payables Secured by Bank Notes | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Payables | 373,676 | 367,046 | | Trade Payables Secured by Bank Notes | 4,000 | 35,918 | | **Total** | **377,676** | **402,964** | - The average credit period obtained for trade purchases ranged from **two to six months**[70](index=70&type=chunk) [Share-based Payment Transactions](index=27&type=section&id=6.3.11%20Share-based%20Payment%20Transactions) The Company's share option scheme expired on May 28, 2025, with no outstanding share options; the share award scheme, adopted in 2018 to incentivize employees, had 71,600,000 shares held by the trustee at the end of the reporting period, with no shares granted or traded during the period - The Company's share option scheme expired on **May 28, 2025**, with no outstanding share options[71](index=71&type=chunk) - The share award scheme was adopted in **2018** to recognize employee contributions and attract talent[72](index=72&type=chunk) - As of the end of the reporting period, **71,600,000 shares** were held by the trustee, and no shares were sold or purchased by the trustee during the period[72](index=72&type=chunk) [Related Party Disclosures](index=28&type=section&id=6.3.12%20Related%20Party%20Disclosures) The Group has transactions with related parties, including Shenwei Pharmaceutical Technology Co Ltd, Shenwei (Sanhe) Real Estate Development Co Ltd, and Shijiazhuang Luancheng Shenwei Training School, involving interest expenses on lease liabilities and service fees Summary of Related Party Transactions and Balances | Related Party Name | Nature of Transaction | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Shenwei Pharmaceutical Technology Co Ltd | Interest expense on lease liabilities | 287 | 412 | | Shenwei Pharmaceutical Technology Co Ltd | Service fees | 5,916 | 5,916 | | Shenwei (Sanhe) Real Estate Development Co Ltd | Interest expense on lease liabilities | 47 | 68 | | Shenwei (Sanhe) Real Estate Development Co Ltd | Service fees | 1,353 | 1,353 | | Shijiazhuang Luancheng Shenwei Training School | Service fees | 621 | 360 | | Related Party Name | Nature of Balance | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | | Shenwei Pharmaceutical Technology Co Ltd | Lease liabilities | 10,517 | 13,871 | | Shenwei (Sanhe) Real Estate Development Co Ltd | Lease liabilities | 1,733 | 2,285 | - Shenwei Pharmaceutical Technology, Shenwei Sanhe, and Shenwei Training School are all ultimately controlled by the Company's controlling shareholder[73](index=73&type=chunk) [Capital Commitments](index=29&type=section&id=6.3.13%20Capital%20Commitments) As of June 30, 2025, the Group's contracted capital expenditure for the acquisition of property, plant and equipment, but not yet provided for in the condensed consolidated financial statements, amounted to RMB 225,175,000 - As of June 30, 2025, contracted capital expenditure for the acquisition of property, plant and equipment, but not yet provided for in the condensed consolidated financial statements, amounted to **RMB 225,175,000** (December 31, 2024: RMB 217,818,000)[74](index=74&type=chunk) [Corporate Governance and Other Information](index=30&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Closure of Register of Members](index=30&type=section&id=7.1%20Closure%20of%20Register%20of%20Members) The Company will suspend registration of members from September 11 to September 12, 2025, to determine eligibility for the second interim dividend for 2025 - The Company will suspend registration of members from **September 11, 2025, to September 12, 2025** (both dates inclusive)[75](index=75&type=chunk) - All transfer documents must be lodged with the Company's Hong Kong Share Registrar by **4:30 p.m. on September 10, 2025**, to be eligible for the second interim dividend for 2025[75](index=75&type=chunk) [Purchase, Sale or Redemption of Securities](index=30&type=section&id=7.2%20Purchase%2C%20Sale%20or%20Redemption%20of%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities during the six months ended June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities during the six months ended **June 30, 2025**[76](index=76&type=chunk) [Compliance with Corporate Governance Code](index=30&type=section&id=7.3%20Compliance%20with%20Corporate%20Governance%20Code) The Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period, except for the deviation where the Chairman and CEO roles are held by the same person; the Board believes this arrangement facilitates business strategy execution and maximizes operational efficiency, subject to periodic review, and all Directors confirmed compliance with the Model Code - The Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period, except for the deviation from Code Provision C.2.1 regarding the separation of roles for Chairman and Chief Executive Officer[77](index=77&type=chunk) - Mr Li Zhenjiang holds both the Chairman and Chief Executive Officer positions, and the Board believes this arrangement facilitates the execution of the Group's business strategies and maximizes operational efficiency[77](index=77&type=chunk) - All Directors of the Company confirmed their compliance with the Model Code for Securities Transactions by Directors during the six months ended **June 30, 2025**[78](index=78&type=chunk) [Audit Committee](index=31&type=section&id=7.4%20Audit%20Committee) The Company's Audit Committee, together with management and external auditors, reviewed the accounting principles and policies adopted by the Group and the unaudited consolidated results for the six months ended June 30, 2025 - The Company's Audit Committee reviewed the accounting principles and policies adopted by the Group and the unaudited consolidated results for the six months ended **June 30, 2025**[79](index=79&type=chunk) [Board of Directors](index=31&type=section&id=7.5%20Board%20of%20Directors) This announcement is issued by Mr Li Zhenjiang, Chairman, on behalf of the Board; as of the announcement date, the Board members include executive directors, non-executive directors, and independent non-executive directors - Chairman **Mr Li Zhenjiang** issued this announcement on behalf of the Board[81](index=81&type=chunk) - The Board members include Executive Directors **Mr Li Zhenjiang**, **Ms Xin Yunxia**, and **Mr Li Huimin**; Non-executive Director **Mr Zhou Wencheng**; and Independent Non-executive Directors **Mr Liao Shunhui**, **Mr Yao Yian**, and **Ms Wang Guihua**[81](index=81&type=chunk)

Group 1 - The company, Shenwei Pharmaceutical (02877.HK), will hold a board meeting on August 27, 2025 [1] - The agenda includes reviewing and approving the interim results for the six months ending June 30, 2025, and discussing the proposal for an interim dividend distribution, if any [1]

董事會會議通知 董事會會議通知 中國神威藥業集團有限公司（「本公司」）董事會（「董事會」）謹此宣佈，董事會將於 二零二五年八月二十七日星期三舉行董事會會議，藉以（其中包括）批准發佈本公司 截至二零二五年六月三十日止六個月之中期業績及考慮宣派股息。 承董事會命 中國神威藥業集團有限公司 中國神威藥業集團有限公司 主席 李振江 香港，二零二五年八月十八日 於本公告日期，執行董事包括李振江先生、信蘊霞女士及李惠民先生；非執行董事為 周文成先生；而獨立非執行董事包括廖舜輝先生、姚逸安先生及王桂華女士。 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的內容概不負責，對其準確性或完整性 亦不發表任何聲明，並明確表示，概不對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 的任何損失承擔任何責任。 CHINA SHINEWAY PHARMACEUTICAL GROUP LIMITED 中國神威藥業集團有限公司 ( 在開曼群島註冊成立之有限責任公司 ) ( 股份代號： 2877) ...

Key Points - The top three companies with net inflows from southbound funds are Xinda Biopharmaceutical (01801) with 835 million, China Life (02628) with 403 million, and AIA Insurance (01299) with 373 million [1][2] - The top three companies with net outflows are the Tracker Fund of Hong Kong (02800) with -6.679 billion, Hang Seng China Enterprises (02828) with -2.584 billion, and Anta Sports (02020) with -782 million [1][2] - In terms of net inflow ratio, Canggang Railway (02169) leads with 66.05%, followed by Bosideng (03998) with 49.50%, and Zhengzhou Bank (06196) with 48.61% [1][2] - The companies with the highest net outflow ratios include Skyworth Group (00751) at -52.19%, Anta Sports (02020) at -50.20%, and Ruipu Lanjun (00666) at -44.79% [1][2] Net Inflow Rankings - The top ten companies by net inflow include: - Xinda Biopharmaceutical (01801) with 835 million and a closing price of 95.000 (+8.82%) [2] - China Life (02628) with 403 million and a closing price of 22.800 (+0.71%) [2] - AIA Insurance (01299) with 373 million and a closing price of 76.400 (+3.03%) [2] - Other notable companies include Ideal Automotive (02015) with 365 million and a closing price of 97.150 (+3.30%) [2] Net Outflow Rankings - The top ten companies by net outflow include: - Tracker Fund of Hong Kong (02800) with -6.679 billion and a closing price of 26.080 (+2.35%) [2] - Hang Seng China Enterprises (02828) with -2.584 billion and a closing price of 93.760 (+2.76%) [2] - Anta Sports (02020) with -782 million and a closing price of 90.000 (+0.22%) [2] - Other significant outflows include Alibaba (09988) with -267 million and a closing price of 123.700 (+6.09%) [2] Net Inflow Ratio Rankings - The top companies by net inflow ratio include: - Canggang Railway (02169) with 66.05% and a closing price of 1.310 (-0.76%) [3] - Bosideng (03998) with 49.50% and a closing price of 4.600 (+0.66%) [3] - Zhengzhou Bank (06196) with 48.61% and a closing price of 1.410 (-2.08%) [3] Net Outflow Ratio Rankings - The top companies by net outflow ratio include: - Skyworth Group (00751) with -52.19% and a closing price of 3.260 (+1.24%) [3] - Anta Sports (02020) with -50.20% and a closing price of 90.000 (+0.22%) [3] - Ruipu Lanjun (00666) with -44.79% and a closing price of 12.160 (+5.28%) [3]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國神威藥業集團有限公司 呈交日期: 2025年8月1日 本月底法定/註冊股本總額： HKD 500,000,000 FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02877 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 827,000,000 | | 0 | | 827,000,000 | | 增加 / 減少 (-) | | | | | | | | | 本月底結存 | | | 827,000,000 | | 0 | | 827,00 ...

Major Events - Jin'an Industrial (02292) received a privatization offer from its controlling shareholder at a premium of approximately 30%, with resumption of trading on May 12 [1] - Jingtai Holdings (02228) plans to acquire 90% of Shanghai Siwei Medical for 250 million yuan, aiming to create an AI-enabled remote electrocardiogram diagnosis platform [1] - China Investment and Financing (01226) is in contact with MCHKI to explore several potential corporate activities following unusual stock price movements [1] - Qiu Tai Technology (01478) reported camera module sales of 33.229 million units in April, an increase of 8.4% month-on-month but a decrease of 20.1% year-on-year [1] - Stone Pharmaceutical Group (01093) received approval for clinical trials of SYH2046 in the United States [1] - Fosun Pharma (02196) subsidiary Junji Health obtained FDA approval for drug clinical trials [1] - Rongchang Bio (09995) received approval for the marketing of Aidiqi® for treating HER2-positive advanced breast cancer with liver metastasis in China [1] - Livzon Pharmaceutical (01513) received approval for the marketing of injectable aripiprazole microspheres [1] - GAC Group (02238) reported April automobile production of 108,600 units, a year-on-year decline of 25.74% [2] - China Overseas Development (00688) reported contract property sales of approximately 20.164 billion yuan in April, a year-on-year decrease of 7.5% [2] Share Buybacks/Reductions - China Hongqiao (01378) repurchased 19.667 million shares for 273 million HKD on May 9 [1] - AIA Group (01299) repurchased 1.5 million shares for 92.1915 million HKD on May 9 [1] - Cathay Securities (02611) repurchased 1.6906 million A-shares for 29.3356 million yuan on May 9 [1] - Times Electric (03898) repurchased 610,300 shares for 19.7008 million HKD on May 9 [1] - East Asia Bank (00023) acquired 52.8 million shares from Sumitomo Mitsui Banking Corporation [1] - Shandong Molong (00568) saw shareholder Zhimo Holdings reduce its holdings by 28.81 million H-shares [1] Operating Performance - Longyuan Power (00916) achieved a power generation volume of 6.9064 million MWh in April, a year-on-year increase of 4.85% [2] - New天绿色能源 (00956) reported a power generation volume of 1.4778 million MWh in April, a year-on-year increase of 16.91% [2] - Jianye Real Estate (00832) achieved a total property contract sales amount of 2.71 billion yuan in the first four months, a year-on-year increase of 4.8% [2] - China Overseas Hongyang Group (00081) reported a cumulative contract sales amount of 9.556 billion yuan in the first four months, a year-on-year decrease of 14.1% [2] - Times China Holdings (01233) reported a cumulative contract sales amount of approximately 1.81 billion yuan in the first four months, a year-on-year decrease of 29.87% [2] - Agile Property Holdings (01813) reported a pre-sale amount of 509 million yuan in April, a year-on-year decrease of 47.5% [2] - Greenland Hong Kong (00337) reported contract sales of approximately 880 million yuan in the first four months, a year-on-year decrease of 69.3% [2]

Financial Performance - In 2024, the company achieved a sales revenue of RMB 3.78 billion, a decrease of 16.4% year-on-year[12] - Net profit for 2024 was RMB 840.05 million, down 13.4% compared to the previous year[12] - The company's total assets increased to RMB 10.04 billion in 2024, while total liabilities rose to RMB 2.57 billion[6] - The gross profit margin for 2024 was impacted by ongoing healthcare cost control policies and increased market competition[13] - In 2024, the overall sales revenue decreased by approximately 16.4% to RMB 3,778,043,000, while net profit fell by 13.4% to RMB 840,052,000[19] - The company recorded a gross margin of 75.0%, with a slight decrease of 0.1 percentage points compared to the previous year, and a net profit margin increased from 21.5% to 22.2%[19] - The company generated free cash flow of approximately RMB 823,023,000, equivalent to RMB 1.00 per share, after capital expenditures of about RMB 140,112,000[20] - The company’s second interim dividend for the fiscal year 2024 was reduced by 13.0% to RMB 0.47 per share, with a payout ratio of 42.3%[20] - The company reported a profit attributable to shareholders of RMB 840,052,000 in 2024, a decrease of approximately 13.4% compared to 2023[63] - Other income increased to RMB 174,094,000 in 2024 from RMB 143,257,000 in 2023, primarily from development funds for R&D and investments[56] - Investment income rose to RMB 176,718,000 in 2024, up from RMB 95,207,000 in 2023, reflecting higher interest income from bank deposits and structured deposits[57] Product Performance - The company is actively adjusting its product structure to focus on high-efficiency, low-cost, and quality pharmaceuticals[14] - Injection products saw a significant decline of 29.0% in sales, with Qingkailing injection experiencing a 40.8% drop to RMB 504,029,000[22] - Oral products, which represent 66.4% of total sales, recorded an overall decline of 8.1%, primarily due to high base effects from the previous year[23] - The sales of soft capsules decreased by 14.9%, attributed to a drop in demand for respiratory medications, with Qingkailing soft capsules down 20.4% to RMB 69,788,000[23] - Granule products experienced a slight decline of 2.9%, with pediatric cough granules down 31.4% to RMB 66,874,000, while exclusive oral granules showed growth[24] - The overall sales of basic drugs listed in the national essential drug list fell by 22.7% to RMB 1,348,062,000, with significant declines in Qingkailing injection and soft capsules[25] - The sales of traditional Chinese medicine formula granules dropped by 9.3% to RMB 1,090,116,000, accounting for 28.9% of total sales[29] - Exclusive oral prescription drugs saw a growth of 22.2%, with sales rising to RMB 543,922,000[28] - The company’s annual sales of respiratory prescription drugs for influenza reached RMB 745,758,000, a decrease of 32.3%, accounting for 19.7% of total sales[33] - The sales of cardiovascular injection prescription drugs declined by 23.8% to RMB 627,280,000, making up 16.6% of total sales[35] Strategic Initiatives - The company participated in national centralized procurement for traditional Chinese medicine, aiming to lower costs and enhance competitiveness[14] - The company is strengthening collaborations with medical institutions and distributors to expand sales channels and market share[14] - The company is committed to enhancing internal management and optimizing production processes to maintain stable profitability despite market challenges[13] - The company plans to enhance management and operational efficiency in response to the industry's transformation challenges in 2025[16] - The company is constructing a smart manufacturing demonstration factory, expected to generate an additional annual output value of RMB 7 billion upon completion[16] - The company anticipates continued growth in sales of drugs listed in the national essential drug list due to government initiatives[27] - The company aims to enhance the sales of exclusive oral products through increased terminal investment and academic promotion[38] Research and Development - The group invested 2.7% of total sales revenue in R&D during the year, focusing on modern Chinese medicine for chronic diseases[42] - The group is conducting clinical trials for innovative drugs, with two exclusive drugs, "Sailuotong Capsules" and "JC Capsules," having completed Phase III trials and expected to submit production license applications by the end of the year[40] - The classic formula "Yigong San Granules" has entered Phase II clinical trials, targeting chronic disease anemia, with no clear treatment options currently available in the market[45] - The group has submitted six applications for the registration of 3.1 category traditional Chinese medicine new drugs, the highest number in the country for this category[44] - The company completed the III phase clinical trial for the JC capsule, expected to obtain production approval by 2026[34] - The company has been awarded 35 patents, including PCT patents, and has established research centers in Hebei and Yunnan[30] Corporate Governance - The company is committed to corporate governance standards that emphasize transparency, accountability, and fairness[170] - The board consists of three executive directors, three independent non-executive directors, and one non-executive director as of December 31, 2024[175] - The company has adopted a higher standard code for securities trading by directors than that specified in the listing rules, ensuring compliance by all directors for the year ending December 31, 2024[172] - The board has established mechanisms to ensure independent viewpoints and will review these mechanisms annually[177] - The company has implemented a responsibility insurance for its directors and senior management to cover liabilities arising from corporate activities[176] - The company has established a remuneration committee, which has met twice during the year to evaluate the performance of executive directors and discuss contract renewals[192] - The company has adopted a whistleblowing policy to provide guidance and reporting channels for employees and third parties to report suspected misconduct[188] - The company confirms that the roles of the chairman and CEO are distinct, with the current chairman also serving as president, a structure deemed beneficial for executing business strategies[184] Market Conditions - The overall industry is experiencing a decline in revenue and profit levels, but there are new development opportunities due to government support for traditional Chinese medicine[13] - The company is closely monitoring regulatory changes in China’s healthcare reform, which could affect its operations and compliance requirements[96] - The company has identified major risks and uncertainties that could impact its performance, including regulatory changes in the healthcare and pharmaceutical sectors in China[94] Related Party Transactions - The company entered into a technical service contract with a related party, with a total contract value of RMB 14,000,000, extended for an additional year until November 4, 2025[139] - The annual rent for a land lease agreement with a related party is RMB 1,600,000, covering an area of approximately 49,276 square meters for three years[140] - The annual rent for another land lease agreement with a related party is RMB 1,200,000, covering an area of approximately 20,986 square meters for three years[141] - The total transaction amount for a general service contract with a related party is RMB 11,832,000, with an annual cap of RMB 12,500,000[146] - The independent non-executive directors have reviewed the related party transactions and confirmed that they comply with the pricing policies and internal control procedures[154] Shareholder Information - As of December 31, 2024, the major shareholder, Fuhui Investment Limited, holds 546,802,990 shares, representing approximately 66.12% of the company's total shares[115] - The company will suspend the registration of share transfers from May 6, 2025, to May 7, 2025, to determine shareholders' rights to the first interim dividend for the year ending December 31, 2025[167] - The company will also suspend the registration of share transfers from May 22, 2025, to May 29, 2025, for the annual general meeting, requiring all transfer documents to be submitted by May 21, 2025, at 4:30 PM[167]

Financial Performance - The company reported a revenue of RMB 3,778,043,000 for the fiscal year ending December 31, 2024, representing a decrease of 16.4% year-on-year[3]. - The annual profit was RMB 840,052,000, a decline of 13.4% compared to the previous year[3]. - In 2024, the overall sales revenue decreased by approximately 16.4% to RMB 3,778,043,000, while net profit fell by 13.4% to RMB 840,052,000[11]. - The gross profit margin was 75.0%, slightly down from 75.1% in the previous year[3]. - The gross profit for the same period was RMB 2,831,749, down 16.6% from RMB 3,394,119 in 2023[61]. - Basic earnings per share decreased to RMB 1.11 from RMB 1.28, reflecting a drop of 13.3%[61]. - The profit attributable to the company's owners for 2024 was RMB 840,052,000, a decrease of approximately 13.4% compared to 2023[55]. - The effective tax rate for the group increased to 26.7% in 2024 from 21.8% in 2023, primarily due to increased withholding tax from profit distributions[54]. Dividend Information - The company declared a first interim dividend of RMB 0.36 per share, with a total dividend payout of RMB 0.47 per share for the fiscal year, resulting in a payout ratio of 42.3%[4]. - The board declared an interim dividend of RMB 0.36 per share, representing a 13.0% decrease compared to the previous year[12]. - The company declared a first interim dividend of RMB 0.43 per share for 2024, totaling RMB 324,822,000, compared to RMB 0.36 per share for 2025, totaling RMB 271,944,000[82]. Sales Performance - The total sales of essential medicines listed in the national essential drug catalog decreased by 22.7% to RMB 1,348,062,000, accounting for 35.7% of total sales[18]. - Injection products experienced a significant sales decline of 29.0%, with the sales of Qingkailing injection dropping by 40.8% to RMB 504,029,000[14]. - Oral products accounted for 66.4% of total sales, but overall sales decreased by 8.1% compared to the previous year[15]. - The sales of soft capsule products fell by 14.9%, primarily due to high base effects from the previous year[16]. - The sales of granule products decreased by 2.9%, with significant declines in pediatric cough granules and cold relief granules[17]. - The sales of traditional Chinese medicine granules fell by 9.3% to RMB 1,090,116,000, accounting for 28.9% of the group's total sales in 2024[22]. - The sales of cardiovascular injection prescription drugs decreased by 23.8% to RMB 627,280,000, accounting for 16.6% of total sales, with only the sales of Shenmai injection increasing by 10.6% to RMB 207,751,000[28]. - The sales of respiratory prescription drugs for the group amounted to RMB 745,758,000, a decrease of 32.3%, accounting for 19.7% of total sales[26]. Research and Development - The company is actively adjusting its product structure and increasing R&D for high-efficiency, low-cost, and quality drugs in response to healthcare cost control policies[6]. - The group invested 2.7% of total sales revenue in R&D, focusing on modern traditional Chinese medicine for chronic diseases[35]. - The company reported a decrease in research and development costs to RMB 100,522 from RMB 110,462, a reduction of 9.0%[61]. - The group is advancing clinical trials for innovative drugs, with two products, "Sai-Luo-Tong capsules" and "JC capsules," completing phase III trials and expected to submit for production approval by the end of the year[33]. - The group aims to develop innovative traditional Chinese medicines targeting cardiovascular diseases, pediatric diseases, and gynecological diseases, leveraging its strengths in these areas[35]. Market Strategy and Expansion - The company aims to enhance management and operational efficiency while adapting to market changes and seizing opportunities from national procurement policies for traditional Chinese medicine[9]. - The company plans to continue focusing on innovation, quality, and collaboration to drive the transformation and high-quality development of the traditional Chinese medicine industry[10]. - The group plans to expand its market development efforts, increasing the number of provinces targeted from 4 to 10 by 2025[24]. - The company's market expansion efforts are supported by favorable national policies aimed at promoting traditional Chinese medicine innovation and development[41]. - The group has developed into one of the largest producers of traditional Chinese medicine granules in the country, ranking among the top five publicly listed companies in this sector[23]. Financial Position - As of December 31, 2024, the group's cash and structured deposits amounted to approximately RMB 6,140,153,000, an increase from RMB 5,888,776,000 in 2023[56]. - Trade receivables rose to RMB 908,115, a significant increase of 19.8% from RMB 758,205 in 2023[62]. - Non-current assets totaled RMB 1,443,007, slightly up from RMB 1,419,263 in 2023[62]. - The company reported trade payables of RMB 367,046,000 in 2024, a decrease from RMB 484,791,000 in 2023[85]. - The aging analysis of trade receivables showed that RMB 853,487,000 was within six months, down from RMB 1,041,352,000 in 2023[84]. Compliance and Governance - The company maintained compliance with the corporate governance code, with a clear division of responsibilities between the chairman and the president[92]. - The audit committee reviewed the audited financial performance for the year ended December 31, 2024[94]. - Deloitte has verified the figures in the preliminary announcement against the audited consolidated financial statements approved by the board on March 28, 2025, but did not provide any assurance or verification conclusion on the preliminary announcement[95].