Sinopharm Group Co. Ltd. — Earnings Release 2025

Apr 24, 2025

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

国药集团

SINOPHARM

國藥控股股份有限公司

SINOPHARM GROUP CO. LTD.*

(A joint stock limited company incorporated in the People's Republic of China with limited liability and carrying on business in Hong Kong as 國控股份有限公司)

(Stock Code: 01099)

ANNOUNCEMENT

PRINCIPAL UNAUDITED ACCOUNTING DATA AND FINANCIAL INDICATORS OF SINOPHARM ACCORD FOR THE FIRST QUARTER ENDED 31 MARCH 2025

This announcement is made pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

Reference is made to the overseas regulatory announcement of Sinopharm Group Co. Ltd. (the "Company") dated 24 April 2025 (the "Announcement") in relation to the report for the first quarter ended 31 March 2025 of China National Accord Medicines Corporation Ltd. ("Sinopharm Accord"), a subsidiary of the Company and whose A shares and B shares are listed on the Shenzhen Stock Exchange (stock code for A shares: 000028; stock code for B shares: 200028).

The board of directors of the Company would like to draw the attention of its shareholders and the public investors to the following principal unaudited accounting data and financial indicators of Sinopharm Accord for the first quarter ended 31 March 2025 as set out in the Announcement.

• The Company is registered as a non-Hong Kong company under the Hong Kong Companies Ordinance under its Chinese name and the English name "Sinopharm Group Co. Ltd."

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PRINCIPAL UNAUDITED ACCOUNTING DATA AND FINANCIAL INDICATORS OF SINOPHARM ACCORD

Whether it has retroactive adjustment or restatement on previous accounting data or not
☐ Yes ☑ No

Unit: Yuan

Currency: RMB

Item	The Reporting Period	Same period of last year	Changes of this period over the same period of last year (%)
Revenue	18,293,519,382.49	19,090,480,767.90	-4.17
Net profit attributable to shareholders of the listed company	327,998,492.13	388,770,710.07	-15.63
Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses	317,427,384.37	369,722,432.36	-14.14
Net cash flow arising from operating activities	-1,817,269,997.84	-634,145,768.90	-186.57
Basic earnings per share (Yuan/Share)	0.59	0.70	-15.71
Diluted earnings per share (Yuan/Share)	0.59	0.70	-15.71
Weighted average return on net assets	1.84%	2.21%	Decreased by 0.37 percentage point
Item	At the end of the Reporting Period	At the end of last year	Changes of this period-end over the end of last year (%)
---	---	---	---
Total assets	50,023,042,169.09	47,555,860,415.22	5.19
Equity attributable to shareholders of listed company	17,997,526,867.78	17,669,528,375.65	1.86

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INFORMATION OF THE OPERATION RESULTS AND FINANCIAL SITUATION:

In the first quarter of 2025, Sinopharm Accord has achieved a revenue of RMB18.294 billion, representing a year-on-year decrease of 4.17%; a net profit attributable to shareholders of the listed company of RMB328 million, representing a year-on-year decrease of 15.63%. Accordingly, the basic earnings per share decreased by 15.71% year-on-year and the weighted average return on net assets decreased by 0.37 percentage point year-on-year. The details of each segment are as follows:

In the first quarter of 2025, the distribution segment has achieved a revenue of RMB13.590 billion, representing a year-on-year decrease of 2.61%, a net profit of RMB231 million, representing a year-on-year decrease of 3.75%. The sales revenue from the distribution segment slightly declined, which was mainly due to the impact of factors such as changes in industry policy and intensified market competition. Due to delays in downstream payments, there has been an increase in aged account receivables. As a result, the provision for bad debts has risen year-on-year, contributing to a decline in profits. The retail segment (i.e. "Sinopharm Holding Guoda Drugstore Co., Ltd." ("Guoda Drugstore")) has achieved a revenue of RMB4.983 billion, representing a year-on year decrease of 7.49%, and a net profit of RMB4 million, representing a year-on-year decrease of 94.28%, which was mainly due to the impact of factors such as the market environment, competition pattern and the closure of stores. As of the end of the first quarter of 2025, there were 9,234 stores of Guoda Drugstore in total (including 7,507 directly-operated stores and 1,727 franchised stores).

In the face of the complicated and ever-changing market environment, Sinopharm Accord has firmly implemented the strategic policy of "striving for progress while maintaining stability, striving for quality while striving for progress", actively responded to market challenges and deepened reform and transformation, laying a solid foundation for high-quality development. In terms of the distribution business, Sinopharm Accord continued to improve the operation management system, by integrating specialized resources and enhancing core competitive advantages, Sinopharm Accord drove organizational change, implemented multi-dimensional cost control, solidified its leading position in the region, empowered the front-end business units and strove to improve management and operating efficiency. In terms of the retail segment, Sinopharm Accord strove to create a new model of lean operation, promoted the structural improvement of operating quality through the dynamic management of loss-making stores and the improvement of single-store efficiency, further focused on core businesses, built a professional, standardized and refined management system, cultivated differentiated competitive advantages and comprehensively consolidated its ability of sustainable development.

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By order of the Board
Sinopharm Group Co. Ltd.
Zhao Bingxiang
Chairman

Shanghai, the PRC
24 April 2025

As at the date of this announcement, the executive Directors are Mr. Lian Wanyong and Mr. Sun Jinglin; the non-executive Directors are Mr. Zhao Bingxiang, Mr. Chen Qiyu, Mr. Hu Ligang, Mr. Zu Jing, Mr. Xing Yonggang, Mr. Wen Deyong, Mr. Li Dongjiu and Ms. Feng Rongli; and the independent non-executive Directors are Mr. Chen Fangruo, Mr. Li Peiyu, Mr. Wu Tak Lung, Mr. Yu Weifeng and Mr. Shi Shenghao.

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