China Resources Pharmaceutical Group Limited (CHINARES PHARMA) released its unaudited results for the six months ended 30 June 2026, showing modest top-line growth and resilient profitability amid a complex market backdrop.

Revenue and Profitability • Revenue increased 2.0% year on year to RMB 134.46 billion, driven mainly by pharmaceutical distribution (+2.5%) and retail (+14.9%) businesses. • Gross profit edged up 0.1% to RMB 21.53 billion; overall gross margin slipped 0.3 percentage point to 16.0%. • Profit before tax was RMB 6.44 billion (+0.4%). Net profit attributable to equity shareholders grew 5.3% to RMB 2.19 billion, lifting basic EPS to RMB 0.35 (1H25: RMB 0.33). • The board declared an interim dividend of RMB 0.087 per share, a 21% increase versus last year, payable on 30 October 2026.

Segment Performance • Pharmaceutical Manufacturing: Revenue fell 1.5% to RMB 24.44 billion; gross margin improved to 60.3% (+1.0 ppt), supported by cost efficiencies and higher-margin product mix. • Pharmaceutical Distribution: Revenue grew 2.5% to RMB 110.99 billion; gross margin eased to 5.7% (-0.2 ppt) amid continued price pressure from centralized procurement. • Pharmaceutical Retail (including DTP pharmacies): Revenue climbed 14.9% to RMB 6.34 billion; gross margin rose to 6.3% (+0.2 ppt). DTP sales contributed about RMB 4.83 billion, up 28.6%.

Investment in Innovation • R&D expenditure reached RMB 1.36 billion, up 8.7% year on year, underpinning 359 projects in progress, including 130 new drugs. • The group secured 26 production approvals and four clinical trial approvals during the period, with notable progress in innovative TCM and biologics pipelines.

Financial Position and Cash Flow • Cash and cash equivalents stood at RMB 15.62 billion. • Total borrowings were RMB 59.39 billion, 89.1% of which mature within one year; gearing ratio rose to 52.0% (FY25: 47.4%). • Net cash generated from operations amounted to RMB 1.42 billion; net cash used in investing activities was RMB 0.64 billion, while financing outflows totaled RMB 1.00 billion. • Current ratio remained stable at 1.4x; secured borrowings accounted for 3.7% of total debt.

Operational Highlights • The group operated 90 manufacturing bases, nearly 100,000 distribution clients, and 1,228 retail pharmacies, including 265 DTP outlets. • Export sales from manufacturing reached approximately RMB 0.70 billion. • Digital initiatives drove online B2B gross merchandise value to about RMB 18.10 billion (+14% YoY). • Ongoing construction of smart logistics hubs in Guangdong and Beijing aims to enhance nationwide supply-chain capacity.

Outlook Management will continue to align with national healthcare strategies, expand in strategic emerging fields such as biologics, blood products and synthetic biology, intensify R&D, and pursue disciplined M&A to strengthen its integrated pharmaceutical platform while prioritising digital transformation and ESG goals.