Building Shanghai Fosun Pharmaceutical (02196) growth new cornerstone through financial report penetrating value, innovation drugs, and globalization double engine.

On March 24th, Shanghai Fosun Pharmaceutical (600196.SH; 02196.HK) released its 2025 performance report, indicating a clear signal: the dual engine of diversified innovation layout and globalization capability has been realized, forming a path for sustained future growth. Innovative drug revenue is close to 10 billion yuan, accounting for over 33%; overseas revenue contributes over 30%; 7 innovative drugs with 16 indications have been approved intensively -- three key signals show that Shanghai Fosun Pharmaceutical is standing at a triple turning point in performance structure, globalization capability, and valuation logic. Innovative drugs enter an intensive realization phase, with continuous optimization of operational quality In 2025, Shanghai Fosun Pharmaceutical achieved operating revenue of 41.662 billion yuan, a year-on-year growth of 1.45%; net profit attributable to shareholders was 3.371 billion yuan, a year-on-year growth of 21.69%; operating cash flow is 5.213 billion yuan, a year-on-year growth of 16.45%; the asset-liability ratio decreased to 48.49%. Profit growth significantly outpaced revenue growth, ample cash flow, optimized debt structure, and continuous improvement in operational quality. Innovative drugs have become the core growth driver: revenue of 9.893 billion yuan, a year-on-year growth of 29.59%, outpacing the overall revenue growth rate, accounting for 33.16% of the pharmaceutical business revenue, marking a transition from "dominance by generic drugs" to "driven by innovative drugs". This transformation is the result of the company's continuous high-intensity research and development investment. In 2025, Shanghai Fosun Pharmaceutical's research and development investment in innovative drugs reached 4.303 billion yuan, a year-on-year increase of 15.98%, accounting for 80.26% of the pharmaceutical business's research and development investment, providing a solid guarantee for sustainable output. In August 2025, the company launched A-share stock options incentive and restricted stock unit programs for H shares, clearly defining a target of approximately 20% compound annual growth rate in innovative drug revenue from 2025 to 2027, conveying management's firm confidence in the continuous growth of the innovative drug business. In 2025, intensive landing of innovative drugs: 7 innovative drugs with 16 indications were approved for marketing domestically and internationally, 6 innovative drug varieties had their marketing applications accepted, and nearly 40 innovative drug clinical trials received approval in China, the US, and Europe. The bridging trial of Sirukumab in the US has completed patient enrollment, with plans to submit a Biologics License Application to the FDA in 2026. HLX43 has been granted orphan drug designation by the FDA, with the potential for licensing transactions totaling over $3.8 billion, fully demonstrating the global competitiveness of the company's innovative drugs. The landscape of innovative drugs is expanding, establishing a differentiated competitive advantage Currently, Shanghai Fosun Pharmaceutical has established three technology platforms: the antibody/ADC platform HENLIUS, small molecule drug research and development led by the global research center, and cell therapy in partnership with Fosun Kite. Focusing on three major disease areas (oncology, immunoinflammation, neurodegenerative diseases), and actively expanding into cutting-edge technologies such as nucleic acids. Platform-based research and development capabilities mean risk diversification in the pipeline and sustainable output -- this is the core source of the premium valuation of innovative drug companies. In the antibody/ADC field, HLX43 has obtained orphan drug designation for thymic epithelial tumor from the US FDA due to its unique dual action mechanism, demonstrating broad-spectrum anti-tumor potential without relying on biomarker screening. The innovative anti-HER2 antibody HLX22 has become the first therapy to receive orphan drug designation for gastric cancer in both Europe and the US, and is expanding into indications such as breast cancer. In the field of cell therapy, Fosun Kite's second CAR-T product, Bujikioonsae, has been accepted for marketing application. Previously, China's first CAR-T cell therapy product, Yikaida, has been included in over 110 provincial and municipal essential insurance programs and over 90 commercial insurance programs. The treatment centers cover more than 29 provinces and municipalities, with over 210 facilities, and in December 2025, it was included in the first edition of the commercial insurance innovative drug list. In the areas of immunoinflammation and chronic diseases, the licensed innovative drug First-in-Class, Montelle (Tianeptine Hydrochloride Tablets), has been approved for marketing, providing a new treatment option for chronic kidney disease dialysis patients in China; Core products such as FXS7553 are steadily progressing in clinical development. In the field of neurodegenerative diseases, Shanghai Fosun Pharmaceutical's product pipeline layout continues to expand. The Parkinson's disease treatment drug, Apicappenin Capsule, has landed in Hainan Boao through the "test first" program; Fosun Medical Vision is accelerating the upgrade and expansion of its "Magnetic Knife" product and indications; Goltamaide Sodium Capsule has been included in the innovative drug pipeline for Alzheimer's disease, and its confirmatory clinical trials after market approval are advancing; the licensed AR1001 has entered a global multicenter Phase III clinical trial. This shows that Shanghai Fosun Pharmaceutical's innovative map has evolved from a single point advance with HENLIUS to a stage of ecological growth driven by multiple technology platforms covering antibodies/ADCs, small molecules, cell therapy, and even nucleic acids, providing a more robust and in-depth foundation for investors to grasp the key to Shanghai Fosun Pharmaceutical's future growth logic. Globalization moves into a deeper level, transitioning from "product going global" to "system going global" As one of the earliest Chinese Meheco Group companies to initiate globalization, Shanghai Fosun Pharmaceutical achieved a transition from "product going global" to "system going global" in 2025, marking a new stage of systematic and deep development in its internationalization process. In terms of performance, in 2025 Shanghai Fosun Pharmaceutical achieved overseas revenue of 12.977 billion yuan, accounting for 31.15% of total revenue, an increase of 3.64 percentage points year-on-year, with globalization becoming a core growth engine for the company. Behind this strong growth is the continuous penetration and growth of the company's core products in global markets. By the end of 2025, the innovative drug Sirukumab had been approved for marketing in over 40 countries and regions worldwide, and had completed medical insurance access in seven EU member states including Germany, Italy, and Spain, successfully integrating into mainstream market payment systems. Meanwhile, Trastuzumab has been marketed in over 50 countries and regions globally and included in medical insurance directories in multiple countries such as China, the UK, France, and Germany, becoming a benchmark product for the internationalization of Chinese biopharmaceuticals. After many years of cultivation, Shanghai Fosun Pharmaceutical has built a global operation system covering research and development, production, registration, and commercialization. Subsidiary HENLIUS independently completed the entire process of product declaration and approval in Europe as the Marketing Authorization holder (MAH) for the first time, and successfully established a quality system for MAH in Japan in accordance with local regulatory requirements, marking a transformation from "borrowing boats to go abroad" to "sailing out on its own." The breakthrough in the US market is particularly crucial: the company's self-built US commercial team has 34 generic drugs on the market for sale, with solid cooperation established with mainstream distributors and large group purchasing organizations (GPOs); if the planned FDA submission for Sirukumab proceeds smoothly in 2026, it will become the first anti-PD-1 monoclonal antibody approved in the US for first-line treatment of Extensive-stage Small Cell Lung Cancer (ES-SCLC), anchoring the global pharmaceutical valuation in the US market. In terms of regional layout, Shanghai Fosun Pharmaceutical has formed a synergistic network of "breakthrough in Europe and the US, deep cultivation in emerging markets": establishing a marketing network covering over 40 countries and regions in Africa, with the main structure of the Cote d'Ivoire project's first-phase project already completed, laying the foundation for future localized production; subsidiary SISRAM MED's marketing network covers over 110 countries and regions, with Bo Yiya covering over 50 countries and regions. It has built a resilient global supply chain network to provide a secure margin for long-term internationalization. It is evident that Shanghai Fosun Pharmaceutical, through the combination of product internationalization, systematized capabilities, and localized operations, is transforming into an innovative-driven pharmaceutical company with global integrated operational capabilities, opening up a broader space for its long-term high-quality development. Conclusion The 2025 financial report data vividly depict the steadfast trajectory of Shanghai Fosun Pharmaceutical's innovative transformation, with the company's value built on solid foundation stones: first, fundamental optimization of revenue structure, with innovative drugs becoming the core driver and leading to continuous improvement in operational quality; second, systematic leap in globalization capability, with full-chain layout landing and overseas markets becoming a strong growth engine; third, explosive diversification and platformization of the innovative pipeline, with powerful research and development realization capabilities and potential for blockbuster products. This value puzzle woven by innovation, internationalization, and platform strength is the core logic of Shanghai Fosun Pharmaceutical's transition from a "traditional pharmaceutical company" to an "innovative-driven global pharmaceutical company," laying a solid foundation for future sustained growth and value release.