A wave of significant dividend distributions is sweeping through the A-share pharmaceutical sector. As of March 26, 42 listed pharmaceutical companies have announced their 2025 dividend plans.
Among the top ten companies by estimated total payout, nine plan to distribute over 500 million yuan. CRDMO firm Wuxi Apptec leads the pack with a massive dividend payout of 4.712 billion yuan, based on a distribution of 15.7927 yuan per 10 shares. Hengrui Pharmaceuticals, Livzon Pharmaceutical Group, and Fosun Pharma rank second, third, and fourth respectively. These three chemical pharmaceutical companies all plan distributions exceeding 1 billion yuan: 1.326 billion yuan, 1.27 billion yuan, and 1.029 billion yuan respectively.
Traditional Chinese medicine leaders occupy the fifth to seventh positions: China Resources Sanjiu with 982 million yuan, Dong-E-E-Jiao with 922 million yuan, and BaiYunShan with 732 million yuan. Pharmaceutical commerce company China National Medicines ranks eighth with a total distribution of 604 million yuan. The ninth and tenth spots are also held by China Resources system companies: China Resources Jiangzhong with 560 million yuan and China Resources Double-Crane with 394 million yuan.
All companies in the top twenty by estimated payout exceed 100 million yuan, with Xizang Tibetan Pharmacy being the only biologics company. Conversely, several medical device and biologics firms have opted for no dividend distribution or bonus issue.
The capacity for such substantial payouts stems from strong fundamentals. Wuxi Apptec's generous dividend, combined with a mid-year 2025 dividend of 1.033 billion yuan, a special dividend of 1.01 billion yuan, and a 2 billion yuan share buyback and cancellation, totals 8.755 billion yuan in cash returns, representing 45.72% of its 2025 net profit attributable to shareholders. This is supported by a performance recovery and robust cash flow. By the end of 2025, the company's order backlog reached 58.0 billion yuan, a 28.8% year-on-year increase, with total annual revenue hitting 45.456 billion yuan, up 15.84%. Its chemical business remained the core driver, generating 36.466 billion yuan in revenue, a 25.52% increase, with TIDES (oligonucleotide and peptide) revenue surging 96% to 11.37 billion yuan. The US market contributed significantly, with revenue of 31.25 billion yuan, up 34.3%. Net profit attributable to shareholders soared 102.65% to 19.151 billion yuan, benefiting from an increased proportion of late-stage clinical and commercial projects under its integrated CRDMO model, which improved capacity utilization and operational efficiency, lifting the gross margin by 6.16 percentage points, alongside gains from divesting part of its stake in WuXi XDC Cayman Inc. The company also maintained strong cash flow, with net cash from operating activities reaching 17.203 billion yuan, up 38.66%, and year-end cash and cash equivalents standing at 35.131 billion yuan.
For Hengrui and Fosun, innovation and internationalization are key drivers. Hengrui reported 2025 revenue of 31.629 billion yuan, up 13.02%, with net profit up 21.69% to 7.711 billion yuan. Innovative drug sales grew 26.09% to 16.342 billion yuan, accounting for 58.34% of total drug sales. According to Citeline's 2025 pipeline ranking, Hengrui's self-developed pipeline is the world's second largest. The company has 24 Class 1 and 5 Class 2 innovative drugs approved in China. Internationally, it received significant upfront payments, including $200 million from MSD, $75 million from IDEAYA, €15 million from Merck KGaA, $65 million from Braveheart Bio, and recognized approximately $100 million in revenue from a $500 million upfront payment from GSK. Fosun Pharma saw revenue and net profit reach 41.662 billion yuan and 3.371 billion yuan, up 1.45% and 21.69% respectively. Its innovative drug revenue jumped 29.59% to 9.893 billion yuan, representing 33.16% of pharmaceutical revenue, driven by products like Pegteograstim injection, NEPA capsule, and Axi-Cel, which grew over 30%. Overseas revenue increased 14.87% to 12.977 billion yuan, accounting for 31.15% of total revenue. By end-2025, Fosun had over 6,000 commercial staff in key markets like China, the US, and Africa, with regional distribution centers in emerging markets. The company also accelerated cash flow by divesting non-strategic assets, recouping nearly 3 billion yuan in 2025.
China Resources Sanjiu and Dong-E-E-Jiao demonstrated stable commercialization and a commitment to social responsibility. In 2025, China Resources Sanjiu led its segment with revenue of 31.603 billion yuan and a 1.58% net profit increase. Dong-E-E-Jiao maintained double-digit growth, with revenue and net profit rising 13.17% and 11.67% to 6.7 billion yuan and 1.739 billion yuan respectively. Their cash flows were strong: net operating cash flow for Sanjiu was 5.513 billion yuan, up 25.23%, and for Dong-E-E-Jiao, 2.289 billion yuan, up 5.45%. As central state-owned enterprises, both emphasize shareholder returns. China Resources Sanjiu maintains a dividend payout ratio above 50%, committing to at least 30%, while Dong-E-E-Jiao distributed a total of 1.739 billion yuan for the year, including a mid-year dividend of 817 million yuan, marking its fifth consecutive year of a 100% payout ratio.
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