SHENZHEN, CHINA – On 18 August, China Medical System Holdings Limited (“CMS” or the “Company”) announced its interim results for the six months ended 30 June 2025 (the “Reporting Period”), with both revenue and profit recording year-on-year growth, demonstrating the initial results of its strategic transformation. During the Reporting Period, the Company recorded revenue of approximately RMB4.00 billion, representing a year-on-year increase of 10.8%. In the case that all medicines were directly sold by the Company, revenue would be approximately RMB4.67 billion, up 8.9% year-on-year. Net profit was approximately RMB0.93 billion, representing an increase of 3.1% year-on-year.

The results reflect that CMS has emerged from the shadow of National Volume-based Procurement (“National VBP”), and its performance is expected to return to a sustainable growth trajectory. Revenue from the Company’s key non-National VBP exclusive/branded products and innovative products (in the case that all medicines were directly sold by the Company) reached approximately RMB2.90 billion, up 20.6% year-on-year, accounting for 62.1% of total revenue. The company’s exclusive/branded products and innovative products have a favorable competitive landscape and high visibility of future growth, and have now become the main drivers of performance growth.

According to the interim results announcement, the company has been planning its “New CMS” blueprint since 2018, anchored on the three strategic pillars of “product innovation, commercial model reform, and international expansion” to build a sustainable second growth curve. By the first half of 2025, solid operating results and the steady delivery of innovation outcomes have confirmed that the Company’s strategic upgrade has been gradually translated into tangible achievements.

“New Products” Strategy Drives Innovation Value Realization and Solidifies Growth Momentum

At the forefront of the Company’s three strategic pillars, the “product innovation” strategy leverages a three-dimensional innovation mechanism of “overseas licensing, domestic collaboration, and in-house R&D” to continuously inject high-value short-, medium- and long-term pipelines, serving as a key growth engine. Currently, the innovation strategy has entered a period of continuous harvest, with new products continuously releasing commercial and clinical value.

To date, the Company has successfully commercialized five innovative drugs in China; By 2025, two innovative products — ruxolitinib cream and Desidustat Tablets—are also expected to receive marketing approvals. Ruxolitinib cream is the first and only topical JAK inhibitor approved by the U.S. FDA and the European Medicines Agency for repigmentation in non-segmental vitiligo, and is expected to become the first approved treatment for vitiligo in China, filling a market gap and bringing new hope to Chinese vitiligo patients. Additionally, the New Drug Application (NDA) for the Alzheimer’s disease drug ZUNVEYL in China was accepted in July this year; the consumer healthcare product Poly-L-lactic Acid Microparticle Filler Injection has been approved for marketing, further enriching the Company’s diversified product portfolio.

Among the innovative pipeline under R&D, several blockbuster candidates have entered the late-stage clinical development in China and are expected to be commercialized within the next one to three years, forming a new driving force for sustained growth.

Among these, the collaborative product Y-3 for Injection has completed Phase III clinical trials in China. This product is an original unimolecular Class 1 innovative drug and the only non-peptide PSD95/nNOS uncoupler that has entered clinical development, with potential to become the first dual-function brain cytoprotectant for treating ischemic stroke while preventing post-stroke depression and anxiety. Another oral small molecule Class 1 innovative drug, ABP-671 (a URAT1 inhibitor) for the treatment of gout and hyperuricemia, is progressing through Phase IIb/III clinical trials in China. Compared with existing mainstream drugs, ABP-671 has the potential to reduce uric acid to lower levels at lower doses and possesses gout-tophus dissolution capability, thereby offering patients a more effective and safer treatment option.

CMS continues to expand its innovative pipeline and enhance its end-to-end innovation capabilities to ensure the steady, phased marketing approval of innovative products. In H1 2025, two new collaborative R&D innovative products — ZUNVEYL and MG-K10 (a long-acting anti-IL-4Rα humanized monoclonal antibody injection) — were added to the portfolio. To date, the Company has deployed about 40 differentiated innovative pipeline products, including approximately 20 in-house R&D projects.

Advancing “New Models” and “New Markets” Strategies to Unlock Multi-dimensional Growth

According to the interim results announcement, CMS continues to advance its “New Models — Commercial Model Reform” strategy, forging anti-cyclical resilience through a diversified ecosystem. It also firmly implements its “New Markets – International Expansion” strategy, building a multi-dimensional growth framework via an industrial internationalization model.

Under the commercial model reform strategy, the Company continues to focus on specialty therapeutic fields while expanding into new retail and new media channels, building a comprehensive marketing and promotion system that covers both “in-hospital + out-of-hospital” and “online + offline” channels, and reinforcing its diversified product portfolio with consumer attributes. Its skin health business, Dermavon, has demonstrated strong potential in this particular segment with consumer attributes. Since its independent operation in 2021, Dermavon has achieved dual leadership in both the “coverage of dermatology indications” and the “revenue scale of dermatological prescription drugs”, and is proposed to be spun off and separately listed on the Main Board of the Hong Kong Stock Exchange by way of introduction and distribution in specie, to further unlock its standalone value and high-growth potential.

In terms of internationalization, CMS successfully completed its secondary listing on the Main Board of the Singapore Exchange by way of introduction on 15 July 2025, marking a new milestone in its “industrial internationalization” strategy. With Singapore as a hub, the Company has established a comprehensive business system covering the entire value chain of “R&D–Manufacturing–Commercialization” for emerging markets. To date, its commercial platform company, Rxilient, has cumulatively submitted nearly 20 registration applications for pharmaceutical products and medical devices across Southeast Asia, the Middle East, Hong Kong, Macau, and Taiwan Region, covering therapeutic fields such as dermatology, ophthalmology, oncology, autoimmune, and central nervous system. Ruxolitinib cream (vitiligo indication) has been approved for marketing in Macau and Hong Kong, and its registration applications have been submitted in Singapore and Taiwan Region. Intravenous Toripalimab (the first China-originated anti-PD-1 monoclonal antibody drug that has been approved by the China NMPA and the U.S. FDA) has been submitted for registration in five countries, including Malaysia. Tildrakizumab Injection and Sucroferric Oxyhydroxide Chewable Tablets have also been approved for marketing in Hong Kong. Meanwhile, PharmaGend, an associate CDMO manufacturing facility in which CMS holds a 45.0% equity interest, now has an annual production capacity of 1 billion units of oral solid dosage forms (tablets and capsules), and has obtained a drug manufacturing license from Singapore’s HSA, U.S. FDA cGMP certification, and passed Swiss QP audits. The construction of new production lines for nasal sprays, creams, and injectables is progressing steadily, providing high-standard production and delivery capabilities for the international market.

Looking ahead, the growth logic of “New CMS” is expected to accelerate its realization, with profitability and performance resilience improving simultaneously. The Company is building a growth framework centered on differentiated innovation, driven by a synergistic and diversified ecosystem, and underpinned by an international footprint. This will open up long-term opportunities for high-quality development, deliver quality pharmaceutical products and services to patients worldwide, and generate sustainable returns for shareholders.

About CMS

CMS is a platform company linking pharmaceutical innovation and commercialization with strong product lifecycle management capability, dedicated to providing competitive products and services to meet unmet medical needs.

CMS focuses on the global first-in-class (FIC) and best-in-class (BIC) innovative products, and efficiently promotes the clinical research, development and commercialization of innovative products, enabling the continuous transformation of scientific research into clinical practices to benefit patients.

CMS deeply engages in several specialty therapeutic fields, and has developed proven commercialization capabilities, extensive networks and expert resources, resulting in leading academic and market positions for its major marketed products. CMS continues to promote the in-depth development of its advantageous specialty fields and expand business boundaries, strengthening the competitiveness of the cardio-cerebrovascular/gastroenterology/ophthalmology/ skin health businesses. Among them, the skin health business has become a leading enterprise in its field, bringing economies of scale in specialty therapeutic fields. Meanwhile, CMS continuously deepens its business development in the Southeast Asia and Middle East regions, further escorting the sustainable and healthy development.

CMS Disclaimer and Forward-Looking Statements

This press release is not intended to promote any products to you and is not for advertising purposes. This press release does not recommend any drugs, medical devices and/or indications. If you want to know more about the diagnosis and treatment of specific diseases, please follow the opinions or guidance of your doctor or other medical and health professionals. Any treatment-related decisions made by healthcare professionals should be based on the patient’s specific circumstances and in accordance with the drug package insert.

This press release which has been prepared by CMS does not constitute any offer or invitation to purchase or subscribe for any securities, and shall not form the basis for or be relied on in connection with any contract or binding commitment whatsoever. This press release has been prepared by CMS based on information and data which it considers reliable, but CMS makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this press release. Certain matters discussed in this press release may contain statements regarding the Group’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. Any forward-looking statements and projections made by third parties included in this press release are not adopted by the Group and the Company is not responsible for such third-party statements and projections.

Media Contact

Brand: China Medical System Holdings Ltd.

Contact: CMS Investor Relations

Email: ir@cms.net.cn

Website: https://web.cms.net.cn/en/home/

Source: China Medical System Holdings Ltd.