China Medical System H1 profit rises 3.4% to 941.2 million yuan; to pay interim dividend of S$0.028
[SINGAPORE] China Medical System (CMS) posted a rise in first half profit and interim dividend on Monday (Aug 18), its first set of results after its secondary listing on the Singapore Exchange.
Net profit rose 3.4 per cent to 941.2 million yuan (S$168.3 million) compared to the year ago period. This was on the back of the diminished negative impact of China’s national volume-based procurement policy and growing sales of the group’s innovative and exclusive (or branded) products, said CMS.
The volume-based procurement policy meant that the entire market volume of drugs for certain cities, provinces or even the country was tendered to the manufacturers offering the lowest price. This caused revenue from three CMS drugs to be negatively affected in the first half of 2024.
The medical group’s earnings per share grew 4.2 per cent to 0.3892 yuan for the six months ended Jun 30, up from 0.3734 yuan in H1 2024. It has declared an interim dividend of 0.1555 yuan, payable on Sep 9, with Singapore shareholders to be paid S$0.028.
CMS is a pharmaceutical company with a focus on sales and marketing in China. It has its primary listing on the Hong Kong Stock Exchange.
In the first half of 2025, sales of the exclusive and innovative products contributed to 62.1 per cent of total revenue, up from 56.1 per cent in the corresponding period last year. Turnover grew 10.8 per cent to 4 billion yuan, up from 3.6 billion yuan.
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Non-executive director and senior consultant Chen Hongbing also resigned from CMS to focus on his personal commitments.
As of Jun 30, the group had a gearing ratio of 3.8 per cent and said its liquidity requirements will be “satisfied by a combination of cash flow generated from operating activities, long-term bank loans and other financing means”.
It said it will focus on its three core strategies – product innovation, commercial model reform and international expansion. The former will include overseas licencing, domestic collaboration and in-house research and development.
The group added that it is mainly exposed to currency risk of the US dollar, euro and Hong Kong dollar.
Shares of CMS on the SGX closed on Monday 0.9 per cent or S$0.02 up at S$2.23.
