Sinopharm Holdings (01099) released Sinopharm's (000028.SZ) 2024 annual results report. Net profit of 642 million yuan to mother decreased by 59.83% year-on-year

According to the Zhitong Finance App, Sinopharm Holdings (01099) released the 2024 annual performance report of the subsidiary Sinopharm (000028.SZ), with total operating revenue of 74.378 billion yuan (RMB, same below), a year-on-year decrease of 1.46%; net profit to mother of 642 million yuan, a year-on-year decrease of 59.83%; and basic earnings per share of 1.15 yuan.

According to the announcement, the decline in the company's profit was mainly due to the combined effects of multiple factors such as changes in industry policy and increased market competition. As a result, there was a large gap in the operating performance of the acquired asset group compared to expectations. According to the preliminary results of impairment tests, based on the principle of prudence, the company prepared an impairment of 970 million yuan for intangible assets (brand use rights and sales networks) formed by goodwill and purchase price sharing, reducing net profit of 561 million yuan attributable to shareholders of listed companies during the reporting period.

The distribution sector achieved revenue of 52,984 billion yuan, up 1.98% year on year; achieved net profit of 922 million yuan, down 12.74% year on year, mainly due to industry policies and market environment, delays in payables, leading to an increase in capital occupancy and corresponding increase in capital costs; a government expropriated land in 2023 generated disposal benefits. There was no such incident in the current period. The combined impact of the above factors led to a decline in profits. The retail sector (“Sinopharm Holdings Guoda Pharmacy Co., Ltd.”) achieved operating income of 22.357 billion yuan, a year-on-year decrease of 8.41%; realized net profit of 1.104 billion yuan, a year-on-year decrease of 309.53%, mainly due to preparations for impairment of intangible assets formed by sharing goodwill and acquisition considerations.