Stock Track | SH PHARMA Plummets 5.11% as Q3 Net Profit Drops 38% on Higher Impairment Provisions

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Shares of SH PHARMA (02607) experienced a significant decline during intraday trading on Friday, plummeting 5.11% to HK$11.71. The sharp drop came in the wake of the company's release of its third-quarter financial results for 2025, which revealed mixed performance across different timeframes.

According to the financial report, SH PHARMA demonstrated overall growth for the first nine months of 2025. The company's revenue reached RMB 215.07 billion, marking a 2.60% increase year-on-year, while net profit attributable to shareholders rose impressively by 26.96% to RMB 5.147 billion. However, the market's negative reaction appears to be focused on the company's third-quarter performance specifically.

In the third quarter alone, SH PHARMA reported a 4.65% increase in revenue to RMB 73.479 billion. Despite this top-line growth, the company's bottom line took a significant hit, with net profit attributable to shareholders declining by 38.13% to RMB 688 million. The primary factor behind this profit slump was attributed to higher asset impairment provisions during the quarter, raising concerns among investors about the company's asset quality and future financial stability.

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