FUSEN PHARM (01652) released its audited results for the year ended 31 December 2025.

Revenue and Profitability • Revenue fell 16.20% year on year to RMB273.37 million, reflecting weaker demand and price pressure in key products, notably Shuanghuanglian Injections (-38.50%). • Gross profit declined 32.50% to RMB109.80 million; gross margin compressed to 40.20% from 49.90% as selling prices fell faster than costs. • Loss attributable to shareholders narrowed sharply to RMB11.78 million, against a RMB188.78 million loss in 2024. Basic loss per share improved to RMB1.59 cents (2024: RMB25.50 cents).

Expense Dynamics • Research & development expense was cut to RMB13.29 million from RMB106.26 million after project reviews and optimisation. • Selling & distribution expense dropped 35.60% to RMB52.15 million; general & administrative expense decreased 12.20% to RMB44.97 million. • Net finance costs edged up to RMB20.34 million (2024: RMB18.84 million) on higher foreign-exchange losses and loan interest.

Investment Income • The Group’s 35.8%-owned joint venture, Jiangxi Yongfeng Kangde, swung to profit and contributed RMB19.49 million, versus a RMB26.66 million loss a year earlier. • Share of loss from associates amounted to RMB5.03 million; no further impairment was recorded on Weihai Rensheng.

Balance Sheet and Liquidity • Net current liabilities widened to RMB381.95 million (2024: RMB307.96 million). • Cash and cash equivalents stood at RMB83.84 million. • Interest-bearing debt totalled RMB300.28 million; gearing ratio improved to 83.90% from 103.90%. • The auditor highlighted material uncertainty over going-concern given an operating loss, large short-term borrowings (RMB293.28 million due within one year) and net current liabilities. Management is pursuing loan renewals (RMB114.50 million already extended to 2027), receivable collections and cost controls.

Operational Highlights • Five new products obtained regulatory approval; two have commenced sales. • Employee headcount reduced to 1,005 (2024: 1,131). • Disposal of subsidiary Henan Fusen Intelligent Energy for RMB73 million generated a RMB1.78 million gain.

Capital Commitments & Dividend • Outstanding contractual commitments were RMB234.45 million, mainly for R&D, government projects and equipment. • No final dividend was proposed for 2025 (2024: Nil).

Outlook Management expects sales stabilisation supported by core products, scalable contribution from recently approved drugs, and six to eight additional product launches targeted for 2026, alongside continued expense discipline.