Net profit at China Medical System Holdings fell 10.5 percent year-on-year to RMB1.44 billion for the 12 months ended 31 Dec 2025, as a one-off tax repayment and a sharp rise in R&D spending outweighed higher sales of innovative and exclusive medicines.

The Hong Kong- and Singapore-listed group posted basic earnings per share of RMB0.6154, down from RMB0.6673 a year earlier. Directors declared a final dividend of RMB0.1366 a share, bringing the full-year distribution to RMB0.2921, up 9.0 percent on FY24. The dividend will be paid on about 7 May 2026 to shareholders on the registers at 29 Apr 2026.

Revenue grew 9.9 percent YoY to RMB8.21 billion, supported by a 44.1 percent jump in sales of innovative and key exclusive products, which now account for nearly 60 percent of turnover on a like-for-like basis. Gross profit rose 8.3 percent to RMB5.87 billion, but the margin eased to 71.5 percent from 72.6 percent due to lower average selling prices following volume-based procurement.

By segment, the Integrated Pharmaceuticals unit generated profit before tax of RMB1.55 billion, up 11.5 percent, while the Skin Health business (Dermavon) booked a pretax loss of RMB104 million as it ramped investment ahead of a planned Hong Kong spin-off. Group selling expenses rose 6.8 percent to RMB2.84 billion, equivalent to 34.6 percent of revenue, whereas R&D costs jumped 77 percent to RMB585 million as six in-house projects entered clinical trials.

Headwinds included a RMB223.8 million repayment of previously enjoyed local income-tax concessions, lower interest income and higher staff costs. Finance costs were trimmed by 47 percent to RMB20.3 million after the company cut bank borrowings to RMB652 million.

Strategic initiatives during the year featured a secondary listing in Singapore, two new product approvals in China (ruxolitinib cream for vitiligo and desidustat tablets for anaemia) and the addition of eight late-stage assets through external collaborations. The board said CMS will continue to channel resources into specialty areas such as cardiovascular-kidney-metabolic, CNS, gastroenterology, ophthalmology and dermatology while deepening its “industrial internationalisation” model centred on Singapore.