Core Viewpoint - The Hong Kong pharmaceutical sector has been experiencing a continuous decline, with significant drops in stock prices for several companies as of October 14. Group 1: Stock Performance - Vya Bio (01873.HK) has seen a decline of 7.53%, trading at 2.58 HKD [2] - Gilead Sciences-B (01672.HK) has dropped by 7.09%, with a current price of 9.17 HKD [2] - Connexa-B (02162.HK) has decreased by 5.74%, now priced at 64 HKD [2]

Group 1 - Pharmaceutical stocks have been experiencing a continuous decline, with notable drops in companies such as Viatris (01873) down 7.53% to HKD 2.58, and Singlomics (01672) down 7.09% to HKD 9.17 [1] - Huaxin Securities indicates that the trend of going global will continue into Q3 2025, but there are fewer significant business developments (BD) from listed companies, and NewCo-style BDs have not met market expectations [1] - The escalation of Sino-US trade conflicts may raise concerns about future decoupling risks, but the shift of global innovative R&D towards more efficient Chinese solutions is an unstoppable trend [1] Group 2 - Cinda Securities believes that Chinese innovative pharmaceutical companies are gaining global competitiveness in various niche markets, and while there may be short-term policy impacts, the long-term industry trend remains unchanged [2] - The innovative drug sector is expected to be a key focus in the next 2-3 years, despite potential short-term pullbacks [2] - The CXO sector is currently in a recovery phase, with continuous growth in performance expected to restore market confidence, and the recent iterations of the Biodefense Act have had minimal impact on leading companies [2]

Group 1 - The pharmaceutical stocks have been experiencing a continuous decline, with notable drops in companies such as Viatris (down 7.53% to HKD 2.58), Genscript Biotech (down 7.09% to HKD 9.17), and CanSino Biologics (down 5.74% to HKD 64) [1] - Huaxin Securities indicates that the trend of going global will continue into Q3 2025, but there are fewer significant business developments (BD) from listed companies, and the NewCo format of BD has not met market expectations [1] - The escalation of Sino-US trade conflicts may raise concerns about future decoupling risks, but the shift of global innovative research and development towards more efficient Chinese solutions is an unstoppable trend [1] Group 2 - Cinda Securities believes that Chinese innovative pharmaceutical companies are gaining a foothold on the global stage, possessing global competitiveness in various niche areas, despite potential short-term policy impacts [2] - The innovative drug sector is expected to remain a key focus for the next 2-3 years, with the CXO industry playing a crucial role in the global innovative drug supply chain [2] - The revised version of the Biodefense Act has undergone multiple iterations, with minimal impact on leading companies, and the CXO sector is currently experiencing a recovery phase, with continuous growth in performance likely to restore market confidence [2]

Core Viewpoint - Via Biotechnology (01873) has seen a significant stock price increase of 10.45%, reaching HKD 3.17, driven by recent global AI pharmaceutical contracts and a growing trend in AI-related orders [1] Group 1: Company Performance - Via Biotechnology's AI-related orders now account for 12% of new contracts, indicating a positive growth trend [1] - The company's CRO (Contract Research Organization) business primarily supports early-stage drug discovery, which is a critical application area for AI, enhancing drug development efficiency and success rates [1] Group 2: AI Integration and Projects - The company has launched an AI-integrated drug development platform called AIDD, which has participated in the development of 175 projects by mid-2025 [1] - AI-enabled CRO business contributes 10% to the total revenue of Via Biotechnology, showcasing the financial impact of AI integration [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 维亚生物科技控股集团 (「本公司」) (於開曼群島註冊成立的獲豁免有限公司) 呈交日期: 2025年10月6日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01873 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 4,000,000,000 | USD | 0.000025 | USD | | 100,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | 0 | | 本月底結存 | | | 4,000,000,000 | USD | 0.000025 | USD | | 100 ...

Core Insights - Viva Biotech has been awarded Frost & Sullivan's 2025 APAC Technology Innovation Leadership recognition for its achievements in the Integrated Intelligent Drug Discovery industry, highlighting its role in enhancing preclinical research and development efficiency [2][3] - The company integrates artificial intelligence with laboratory validation to innovate drug discovery processes, thereby strengthening client partnerships and delivering scalable solutions [2][4] Company Overview - Established in 2008, Viva Biotech specializes in providing comprehensive services from early-stage Structure-Based Drug R&D to commercial manufacturing for global biopharmaceutical innovators [10] - The company employs advanced technology platforms and a dedicated team to cover all aspects of therapeutic strategies and drug modalities, including small molecules and biologics [10] Technology and Innovation - Viva Biotech's AI-Driven Drug Discovery (AIDD) platform includes modules such as V-Scepter, V-Orb, and V-Mantle, which address drug design challenges through predictive modeling, physics-based simulations, and generative AI [5][9] - The integrated platform has supported over 150 projects for more than 50 global clients, achieving 30-50% faster discovery and up to 70% cost savings [6] Strategic Vision - The recognition from Frost & Sullivan aligns with Viva Biotech's long-term vision of creating an integrated platform that combines AIDD with structure-based drug discovery (SBDD) [8] - The company aims to continue accelerating AI-driven drug discovery and development, positioning itself as a leader in scientific innovation [8]

Core Viewpoint - Pharmaceutical stocks are under pressure following the announcement of new tariffs on imported pharmaceutical products by U.S. President Trump, which could significantly impact the industry [1] Group 1: Stock Performance - Companies such as 科济药业-B (02171) saw a decline of 5.11%, trading at 18.37 HKD [1] - 康宁杰瑞制药-B (09966) dropped by 3.48%, with a trading price of 12.22 HKD [1] - 维亚生物 (01873) fell by 3.52%, now priced at 2.47 HKD [1] - 泰格医药 (300347) (03347) decreased by 3.1%, trading at 45.6 HKD [1] Group 2: Tariff Announcement - Starting October 1, the U.S. will impose a 100% tariff on all brands and patented pharmaceutical products [1] - Trump indicated that these tariffs will not apply to companies that build factories in the U.S., defining such facilities as "under construction" [1] Group 3: Policy Context - Trump's administration has focused on "lowering drug prices" and "supply chain repatriation" as key themes in its policies affecting the pharmaceutical industry this year [1]

Group 1 - Pharmaceutical stocks are under pressure, with notable declines: 科济药业-B down 5.11% to 18.37 HKD, 康宁杰瑞制药-B down 3.48% to 12.22 HKD, 维亚生物 down 3.52% to 2.47 HKD, and 泰格医药 down 3.1% to 45.6 HKD [1] - On September 25, President Trump announced a new round of high tariffs on various imported products, including a 100% tariff on all brands and patented pharmaceutical products starting October 1 [1] - The tariffs will not apply to companies that build factories in the U.S., defined by Trump as "under construction" [1] Group 2 - Trump's policies this year have focused on the pharmaceutical industry, with key themes being "lower drug prices" and "supply chain repatriation" [1]

Financial Performance - The company's revenue for the reporting period was RMB 831.9 million, with a gross profit of RMB 339.4 million, resulting in a gross margin of 40.8%, an increase of 6.3 percentage points compared to the same period last year[10]. - The net profit for the first half of 2025 was RMB 148.6 million, a 3.1% increase from RMB 144.2 million in the same period last year; adjusted net profit under non-IFRS increased by 9.1% to RMB 183.5 million from RMB 168.2 million[10]. - The group's revenue for the reporting period was approximately RMB 831.9 million, a decrease of about 15.3% compared to RMB 981.8 million in the same period last year[38]. - Gross profit for the reporting period was approximately RMB 339.4 million, an increase of about 0.1% from RMB 339.1 million in the same period last year, with a gross margin of approximately 40.8% compared to 34.5% last year[46]. - The net profit for the period was approximately RMB 148.6 million, compared to RMB 144.2 million in the same period last year, with adjusted net profit under non-IFRS standards at RMB 183.5 million, up from RMB 168.2 million[56]. - The company reported a pre-tax profit of RMB 171,695,000 for the period, indicating strong operational performance despite market challenges[154]. - The company reported a net profit of RMB 121,805 thousand for the six months ended June 30, 2025, compared to RMB 116,808 thousand for the same period in 2024, representing an increase of approximately 4.3%[141]. Client and Revenue Growth - The number of cumulative clients served by the company increased to 2,574, with CRO business revenue growing from RMB 385.9 million to RMB 422.8 million, a growth rate of approximately 9.6%[12]. - The CRO business client distribution is diversified, with approximately 85.0% of revenue coming from overseas, which saw a year-on-year growth of about 4.9%, while revenue from mainland China clients grew by approximately 46.6%[13]. - New molecular models (peptides, antibodies, XDC, PROTAC/molecular glue, etc.) accounted for about 15.0% of CRO revenue, showing a year-on-year growth of nearly 19.0%[14]. - The company aims to enhance its technology platforms to meet customer demands, focusing on new targets, mechanisms, and molecular forms, while driving continuous growth in CRO revenue[35]. Research and Development - The company delivered over 90,739 protein structures to clients, with 8,023 new deliveries in the first half of 2025; the research included over 2,187 independent drug targets, with 89 new targets delivered during the same period[14]. - The CMC business has completed and is advancing 279 new drug projects, with a significant improvement in profitability during the reporting period[20]. - The company has established a comprehensive platform for new mechanism drug discovery, integrating various technologies including protein production, cryo-EM, and drug screening[25]. - The pharmacology and pharmacodynamics platform has expanded to multiple fields, including animal immunology and tumor efficacy evaluation, providing a one-stop service[29]. - The introduction of AI technology into the SBDD process has significantly accelerated the efficiency of innovative drug development[23]. Financial Position and Cash Flow - As of June 30, 2025, the total cash and cash equivalents amounted to approximately RMB 904.5 million, a decrease of about 3.9% from RMB 941.6 million at the end of 2024, mainly due to the repayment of bank loans[57]. - The company’s total equity increased to RMB 3,907,476,000 from RMB 3,816,221,000, reflecting a growth of 2.4%[140]. - The company’s cash flow from operating activities after tax payments was RMB 129,823 thousand, down from RMB 152,330 thousand in the previous year, reflecting a decline of approximately 14.7%[144]. - The financing activities resulted in a net cash outflow of RMB 151,989,000, compared to RMB 354,612,000 in the same period last year, reflecting improved cash management[146]. Employee and Corporate Governance - The group has a total of 2,085 employees as of June 30, 2025, with 1,098 in CRO R&D roles and 753 in Langhua Pharmaceutical[36]. - The board of directors will continue to review and monitor the company's practices to maintain high standards of corporate governance[74]. - The company has maintained stable employee relations without any significant strikes or labor disputes affecting business operations[69]. Share Incentive Plans - The company aims to attract and retain top talent through the share incentive plans, which include stock options and share rewards[91]. - The total number of stock options granted during the reporting period amounts to 19,960,000, with 10,340,000 options becoming exercisable[103]. - The performance targets for stock options granted include revenue increases of at least 60%, 90%, and 120% for the fiscal years 2022, 2023, and 2024 respectively, compared to the fiscal year 2020[103]. - The company has implemented a restricted share unit plan to recognize and incentivize participants for their contributions[106]. Market and Segment Performance - Revenue from the Drug Discovery segment was RMB 415,040,000, while the CDMO and Commercialization Services segment generated RMB 409,048,000, and the Viya Bio segment contributed RMB 7,786,000[158]. - The company’s revenue from the United States market was RMB 429,749,000, making it the largest regional contributor[159]. - Revenue from a major customer in the CDMO and Commercialization Services segment amounted to RMB 221,640,000 during the reporting period[162]. Investment and Strategic Initiatives - The company has realized investment returns of approximately RMB 76.5 million from exits of several incubated companies, with a total of 93 startups incubated as of June 30, 2025[21]. - The company engaged in strategic investments in biotech startups, enhancing its portfolio and potential future revenue streams[150]. - The company has successfully established and invested in a RMB fund, planning to invest RMB 25.0 million, aimed at discovering and developing quality pharmaceutical enterprises[22].

Core Viewpoint - The recent surge in Via Biotechnology's stock price reflects growing confidence in the AI drug development sector, with significant contracts being signed and a shift from conceptual to practical applications of AI in pharmaceuticals [1] Company Summary - Via Biotechnology's stock rose over 5%, currently trading at 2.59 HKD with a transaction volume of 20.26 million HKD [1] - The company has been involved in AI drug development for five years, with AI-related orders now accounting for 12% of new contracts, showing a growth trend [1] - Via Biotechnology's CRO business focuses on early-stage drug discovery, integrating AI to enhance research efficiency and success rates [1] - The AIDD platform has participated in the development of 175 projects, with AI-enabled CRO services contributing 10% to total revenue [1] Industry Summary - GF Securities reports a recent increase in global AI drug development contracts, indicating a clearer recognition of the strategic value of AI in pharmaceuticals by major companies [1] - The industry is transitioning from the conceptual phase of AI drug development to tangible applications and platform integration [1] - The trend of accelerated development in the AIDD sector is expected to become more pronounced by mid-next year [1]