CMS(867.HK/8A8.SG) Reports 2025 Revenue Up 9.9% and Normalised Net Profit Up 3.6%

ON 16 March, China Medical System (“CMS”, or the “Group”) released its annual results for the year ended 31 December 2025. During the reporting period, the Group recorded revenue of RMB8.21 billion, representing a year-on-year increase of 9.9%. Normalised net profit (excluding one-off non-operating items) was RMB1.78 billion, up 3.6% year-on-year. CMS proposed a final dividend of RMB0.1366 per share, bringing full-year dividend per share growth to 9.0% year-on-year. This marks CMS’s successful emergence from the impact of China’s volume-based procurement (VBP) policies and the start of a new growth cycle. In 2025, CMS achieved revenue of RMB9.39 billion in the case that all medicines were directly sold by the Group. Of this, key exclusive/branded products and innovative products contributed RMB5.61 billion, up 23.3% year on year, lifting their share of total drug sales revenue to 59.8%. Notably, within this segment, revenue from exclusive drugs and innovative drugs surged 44.1%, highlighting a clear “structural shift” as innovative and exclusive products have become the new growth drivers. Powered by multiple growth engines—“innovative products + comprehensive commercialisation capabilities + industrial internationalisation”—CMS is accelerating the build-out of a diversified and sustainable second growth curve.

Differentiated pipeline built through parallel innovation paths

CMS continues to advance innovation via a dual-track strategy of “collaborative development + in-house R&D”, developing a differentiated and tiered pipeline. To date, the Group has approximately 50 differentiated innovative products: 7 products have been approved and commercialised in China; 6 are under marketing authorisation review; and around 20 projects are about to initiate or are progressing through clinical trials (including 6 in-house R&D projects). At the same time, CMS is strengthening its in-house R&D capabilities, focusing on globally leading targets in specialised therapeutic areas to build differentiated competitive advantages. Currently, 6 innovative drugs with global proprietary intellectual property are being progressed through clinical development in China, including the Cardiac Myosin Inhibitor CMS-D003 Capsules (for hypertrophic cardiomyopathy) and the INHBE-targeting siRNA therapy CMS-D008 Injection (for overweight/obesity), providing endogenous momentum for long-term growth.

Building a diversified commercial ecosystem through full-channel coverage

CMS is building a diversified commercial ecosystem under an “omni-channel coverage” strategy to drive integrated in-hospital and out-of-hospital growth. During the reporting period, the Group continued expanding and deepening its presence across retail pharmacies, DTP pharmacies, e-commerce platforms and O2O channels, capturing incremental opportunities in the out-of-hospital market and consumer healthcare. CMS also further sharpened its specialty focus, achieving scale advantages across therapeutic areas including Cardiovascular-Kidney-Metabolic diseases, gastroenterology, ophthalmology and skin health—forming a multi-pillar growth structure.

Secondary listing and accelerated expansion into emerging markets

In July 2025, CMS successfully completed a secondary listing on the Singapore Exchange (SGX), establishing a dual-listing presence on the Hong Kong Stock Exchange and SGX, and deepening its expansion into emerging markets such as Southeast Asia and the Middle East. Leveraging efficient end-to-end collaboration across “R&D—CMS R&D, manufacturing—associate company PharmaGend, and commercialisation—Rxilient”, the Group is enabling a high-efficiency match between differentiated product resources and demand in emerging markets, with expanding ecosystem value spillover. As of the end of the reporting period, Rxilient—CMS’s emerging-markets subsidiary headquartered in Singapore—had cumulatively submitted close to 20 marketing applications for pharmaceuticals and medical devices across Asia-Pacific and the Middle East. It also obtained exclusive licensing rights for approximately 20 additional products in emerging markets including Southeast Asia, the Middle East and North Africa, with authorised territories expanding for the first time into Latin America as well as Australia and New Zealand. In early 2026, the innovative drug Diazepam Nasal Spray (“VALTOCO”) was approved for marketing in Singapore.

Outlook

CMS’s management stated that the Group has established a multi-dimensional growth engine driven by “ramping innovative products + empowered commercialisation + breakthroughs in internationalisation”. As the strategic transformation continues to deepen, CMS’s core competitiveness is expected to strengthen further, anchoring long-term value with greater certainty and building a resilient moat across cycles.

About China Medical System

CMS is a platform company linking pharmaceutical innovation and commercialisation with strong product lifecycle management capability, dedicated to providing competitive products and services to meet unmet healthcare needs. CMS has been listed on the Main Board of the Stock Exchange of Hong Kong Limited since 28 September 2010, and included in the Morgan Stanley Capital International (MSCI) Global Small Cap Indexes – China Index, Hang Seng Healthcare Index, Hang Seng Innovative Drug Index and HKEX Tech 100 Index, etc. The Group is the object of transaction in both Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. CMS has been ranked “AA” in MSCI-ESG ratings in year 2025. CMS is mainly engaged in specialty therapeutic fields, such as (i) Cardiovascular-Kidney-Metabolic diseases, (ii) central nervous system, (iii) gastroenterology, (iv) ophthalmology and (v) skin health. Drawing on its over thirty years of experience in China’s pharmaceutical market, CMS has approximately 5,000 marketing and promotion related employees, with a promotion network covering over 55,000 hospitals and healthcare institutions, approximately 320,000 retail pharmacies, and 7 major e-commerce and O2O (Online-to-Offline) platforms in China as of 31 December 2025. CMS has also established Rxilient Health, a pharma focused on emerging markets in Southeast Asia. Headquartered in Singapore, it has established subsidiaries or offices in Hong Kong, Taiwan Region, Malaysia, Vietnam, the Philippines, Indonesia, Thailand, and the United Arab Emirates, forming a professional team with extensive local industry experience to effectively facilitate the penetration of global innovative drugs into local markets. For more information, please visit CMS’s website at https://web.cms.net.cn/en/home/

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