Understand CMS (00867) 2025 midterm performance in one picture: Double growth in revenue and net profit, initial results of strategic transformation emerging.

In the first half of 2025, CMS (00867) achieved year-on-year growth in revenue and profit, with the initial effect of strategic transformation showing: revenue reached approximately 4.0 billion RMB, a year-on-year increase of 10.8%; net profit reached approximately 0.93 billion RMB, a year-on-year increase of 3.1%. The company has emerged from the shadow of over-reliance on government procurement, and its performance is returning to a sustained upward trajectory. The sales of the company's main exclusive/branded products and innovative products totaled approximately 2.9 billion RMB, a year-on-year increase of 20.6%, accounting for 62.1% of the total sales revenue (approximately 4.67 billion RMB). The company's exclusive/branded products and innovative products have a good competitive landscape and strong growth predictability, and have become the main force driving the company's performance upward. As of now, the company has successfully commercialized 5 innovative drugs; within 2025, two innovative products, luo keteni cream (vitiligo) and desidust resitap tablets (renal anemia), are also expected to be approved for listing. In the research pipeline, multiple heavyweight candidate drugs have entered the late-stage clinical development in China, and it is expected that they will sequentially enter commercialization in the next 1-3 years. In the first half of 2025, the company added two cooperation and development innovative products: ZUNVEYL (Alzheimer's disease) and long-acting anti-IL-4R humanized monoclonal antibody injection MG-K10 (AD, rhinitis, etc.). As of now, the company has accumulated a layout of approximately 40 differentiated innovative pipelines, including 20 self-developed projects. Future innovative products will be approved for listing in stages, injecting sustained growth momentum. On April 22, 2025, the company announced its intention to spin off the skin health business Demer Medical through an introduction to the market and physical distribution method to list independently on the Main Board of the Hong Kong Stock Exchange, further releasing its independent value and high growth potential; on July 15, 2025, the company successfully completed a second listing on the Singapore Exchange through an introduction, entering a "New Journey Health Technology Group" as part of its "international industrialization" strategy. The company will build a sustainable second growth curve with three main strategies: product innovation, business innovation, and international expansion.