Core Viewpoint - Shenwei Pharmaceutical (02877) reported a decline in revenue and profit for the first half of 2025, indicating challenges in the market due to rising raw material costs and pricing pressures from centralized procurement [1] Financial Performance - Revenue for the first half of 2025 was 1.653 billion RMB, a decrease of 20.8% year-on-year [1] - Profit for the period was 615 million RMB, down 1.89% compared to the previous year [1] - Basic earnings per share were 0.81 RMB, with an interim dividend proposed at 0.11 RMB per share [1] Profitability Metrics - The group's gross profit margin decreased from 75.3% in the same period last year to 72.2% [1] - Despite the decline in sales and gross margin, net profit only slightly decreased by 1.9%, with the net profit margin increasing from 30.0% to 37.2% [1] Cost Management - The company managed to reduce selling and distribution costs and administrative expenses by approximately 20.7% and 12.9% respectively compared to the previous year [1] - Increased investment income contributed positively to the overall financial performance [1] Product Segment Performance - Oral formulations 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 and Shenmai injections, which fell by 50.1% and 21.0% respectively [1]

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]