Executive Summary
Simcere Pharmaceutical Group Limited reported QQ1 2025 revenue of CNY 1.792 billion, up 15.14% year over year and 1.80% quarter over quarter, with a robust gross margin of 80.7% and an operating margin of 19.1%. Net income reached CNY 301.8 million, corresponding to a net margin of 16.8% and an EPS of CNY 0.12. The quarter underscored disciplined cost control and favorable product mix contributing to EBITDA of CNY 413.0 million and a double-digit YoY rise in operating income (+39.1%). The company maintains a conservatively leveraged balance sheet (debt ratio ~9.8%, debt-to-equity ~0.17) and healthy liquidity (current ratio ~1.73, quick ratio ~1.57). Relative to peers, Simcere exhibits margin discipline and solid cash generation characteristics, supporting an earnings trajectory backed by its oncology, CNS, autoimmune, and anti-infection portfolios, as well as potential licensing partnerships.
Key Performance Indicators
QoQ: 118.25% | YoY:32.20%
QoQ: 114.67% | YoY:34.08%
Key Insights
Revenue: CNY 1,792,456,000; YoY +15.14%, QoQ +1.80%
Gross Profit: CNY 1,446,925,000; YoY +17.54%, QoQ +1.09%
Operating Income: CNY 342,323,000; YoY +39.11%, QoQ +92.38%
Net Income: CNY 301,803,500; YoY +32.20%, QoQ +118.25%
EPS: CNY 0.12; YoY +34.08%, QoQ +114.67%
Gross Margin: 80.72%
Operating Margin: 19.10%
Pretax Margin: 18.48%
Net Margin: 16.84%
Tax Rate (effective): 8.89%
R&D Expenses: CNY 316,210,500; SG&A: CNY 132,096,000; Selling & Marketing: CNY 675,272,500; Total Selling, G...
Financial Highlights
Revenue: CNY 1,792,456,000; YoY +15.14%, QoQ +1.80%
Gross Profit: CNY 1,446,925,000; YoY +17.54%, QoQ +1.09%
Operating Income: CNY 342,323,000; YoY +39.11%, QoQ +92.38%
Net Income: CNY 301,803,500; YoY +32.20%, QoQ +118.25%
EPS: CNY 0.12; YoY +34.08%, QoQ +114.67%
Gross Margin: 80.72%
Operating Margin: 19.10%
Pretax Margin: 18.48%
Net Margin: 16.84%
Tax Rate (effective): 8.89%
R&D Expenses: CNY 316,210,500; SG&A: CNY 132,096,000; Selling & Marketing: CNY 675,272,500; Total Selling, General & Administrative: CNY 807,782,000
Liquidity & Leverage: Current Ratio 1.733, Quick Ratio 1.571, Cash Ratio 0.757; Debt Ratio 0.0975; Debt/Equity 0.170; Cash per Share 1.095; Price to Book 2.48; Price to Sales 10.03; Price to Earnings 14.89; Enterprise Value / EBITDA 40.04
Operational Efficiency: DSO 132.47 days, DIO 148.83 days, DPO 48.94 days, Cash Conversion Cycle 232.36 days
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.79B |
15.14% |
1.80% |
| Gross Profit |
1.45B |
17.54% |
1.09% |
| Operating Income |
342.32M |
39.11% |
92.38% |
| Net Income |
301.80M |
32.20% |
118.25% |
| EPS |
0.12 |
34.08% |
114.67% |
Key Financial Ratios
operatingProfitMargin
19.1%
Management Commentary
Note: No earnings call transcript was provided in the dataset. Consequently, there are no management quotes available to quote or themes to map to a transcript. The qualitative assessment below relies on the disclosed financials and peer benchmarking.
Forward Guidance
No explicit forward guidance was disclosed in the provided materials. Given the strong gross margin and improving operating profitability, investors should monitor: (1) progression of key late-stage and mid-stage oncology/CNS programs and any new product introductions; (2) updates on Vivoryon licensing initiatives or other regional licensing partnerships; (3) working capital dynamics that could influence free cash flow; (4) any regulatory changes or pricing reforms affecting domestic China formulary access. With a healthy balance sheet, management has the scope to fund R&D and selective capex, should the growth trajectory accelerate.