Simcere Pharmaceutical Group Issues Substantial Profit Alert for FY2025: Major Growth Expected

Simcere Pharmaceutical Group Limited (Stock code: 2096) has released an important profit alert, signalling a significant improvement in its financial performance for the year ended December 31, 2025 (“FY2025”). This announcement is made in compliance with the Listing Rules of the Hong Kong Stock Exchange and the Inside Information Provisions, and is likely to be closely watched by shareholders and potential investors due to its price-sensitive nature.

Key Highlights of the Profit Alert

• Revenue Surge: The Group expects to record revenue between RMB7,700 million and RMB7,800 million for FY2025. This marks a robust increase of approximately 16.0% to 17.6% compared to the revenue of RMB6,635 million achieved in FY2024.
• Profit Soars: Profit attributable to equity shareholders of the Company for FY2025 is projected to be between RMB1,300 million and RMB1,400 million, representing a striking growth of 80.1% to 93.9% compared to the restated profit of RMB722 million for FY2024.
• Adjusted Profit: On a non-HKFRS adjusted basis, profit attributable to equity shareholders is expected to be RMB1,250 million to RMB1,350 million for FY2025, up by 24.1% to 34.1% compared to the restated adjusted profit of RMB1,007 million for FY2024.
• Drivers of Growth: The strong performance is primarily attributed to:
• Increased revenue from the Group’s innovative pharmaceutical business
• Higher income from out-licensing arrangements
• Net gains in the fair value of the Group’s investment portfolio

Details on Adjusted Profit and Restatement

The Group’s adjusted profit is defined as profit attributable to equity shareholders, adjusted for items such as net realized and unrealized gains or losses on financial assets and associates at fair value, interest expenses from redemption liabilities, and associated income tax effects. This non-HKFRS measure is provided to give a clearer picture of the core business performance by removing the impact of non-recurring, non-cash, and non-operating items.

Of particular note for investors, the Group’s financials for FY2024 have been restated to account for the acquisition of Xianwei (Hainan) Biotechnology Co., Ltd., which was completed in October 2025. The restatement reflects what the Group’s numbers would have looked like if the acquisition had occurred at the beginning of FY2024:

• Restated profit attributable to equity shareholders for FY2024: RMB722 million (down from RMB733 million pre-restatement)
• Restated adjusted profit for FY2024: RMB1,007 million (down from RMB1,018 million pre-restatement)

The Group emphasizes that these restated figures have not yet been audited or reviewed by external auditors.

Important Considerations for Shareholders

• Preliminary Results: The numbers released are based on unaudited management accounts and may be subject to change after the final annual results are prepared and audited.
• Timing of Final Results: The final audited annual results for FY2025 are expected to be published in late March 2026.
• Price Sensitivity: Given the scale of the anticipated profit growth and restatement effects, this announcement contains material information that could influence the Company’s share price.
• Caution Advised: The Company specifically advises shareholders and potential investors to exercise caution when dealing in its shares until the final results are released.

Board and Corporate Governance

The announcement is signed by Mr. Ren Jinsheng, Chairman and CEO, on behalf of the Board of Simcere Pharmaceutical Group Limited. The Board comprises a blend of executive and independent non-executive directors, ensuring a balanced corporate governance structure.

Conclusion

The profit alert issued by Simcere Pharmaceutical Group Limited signals a period of substantial earnings growth and strategic expansion, driven by innovative product lines and successful business development activities. The restatement following the acquisition of Xianwei (Hainan) Biotechnology is also a significant development for the Group’s financial reporting. Investors should closely monitor the upcoming audited results for FY2025 and exercise caution in trading the shares until further updates are provided.

Disclaimer: This article is based on a preliminary profit alert issued by Simcere Pharmaceutical Group Limited and is intended solely for informational purposes. The information has not been audited or confirmed by the Company’s auditors. Investors are advised to review the Company’s official announcements and consult their financial advisors before making any investment decisions. The author and publisher accept no liability for actions taken based on this article.

View SIMCERE PHARMA Historical chart here