Investment Rating - The report rates the industry as "Outperform" [2] Core Insights - The global market for Antibody-Drug Conjugates (ADC) is projected to exceed $100 billion, driven by the dual advantages of targeted therapy and potent cytotoxic effects [2][3] - ADCs are recognized as a promising new therapy in oncology, with the potential to redefine standard treatments for major cancers like lung and breast cancer [2][3] - China has emerged as a key player in ADC innovation, with over 50% of global ADC pipelines originating from Chinese companies, showcasing significant cost and efficiency advantages [2][3][5] Summary by Sections Section 1: ADC as a Targeted Prodrug - ADCs utilize a "Trojan horse" strategy for targeted delivery of cytotoxic agents to tumor cells, minimizing damage to normal tissues [11][13] - The mechanism involves several steps, including circulation, target binding, internalization, and release of the active drug within the tumor cell [11][13] Section 2: Market Growth and Trends - The ADC market is expected to enter a product explosion phase, with rapid growth anticipated in the coming years [2][3] - The global ADC market size is forecasted to reach $115.1 billion by 2032 [2] Section 3: Investment Opportunities - Investment in ADCs should focus on companies with innovative technology platforms and promising product candidates [2][3] - Key players to watch include those with leading ADC technology platforms and robust pipelines, such as Kelun-Biotech, Innovent Biologics, and WuXi AppTec [2][3] Section 4: Technological Advancements - ADC technology is characterized by modular upgrades and innovative combinations, with a variety of ADC types currently in development [2][3] - The report highlights the potential for ADC technology to extend into broader categories of conjugated drugs (XDC) [2][3] Section 5: Competitive Landscape - The report emphasizes the competitive nature of the ADC industry, with numerous players vying for market share and innovation [2][3] - Chinese ADC companies are recognized for their ability to lead in innovation and capture significant market opportunities [2][3][5]

Core Insights - Three innovative drugs have made significant progress, potentially stabilizing the Hang Seng Biotechnology Index and the Hang Seng Innovative Drug Index [1] Group 1: Drug Developments - Innovent Biologics announced that its drug IBI362 (Mastuzumab Injection) has achieved primary and all key secondary endpoints in a Phase III clinical trial for moderate to severe obesity in China, with plans to submit a new drug application for weight control [1] - Junshi Biosciences' PD-1 inhibitor, H drug (Surulitinib), has been officially included in the NMPA's list of breakthrough therapies for perioperative treatment of gastric cancer, marking it as the first drug recognized for this indication [2] - Peijia Medical's PB-119 has received approval from the NMPA for its new drug application, leveraging unique PEGylation technology to enhance efficacy while reducing immunogenicity and gastrointestinal side effects [3] Group 2: Industry Trends - The introduction of the innovative drug directory by commercial insurance is expected to address the accessibility and affordability of high-priced innovative drugs, with policies increasingly favoring the development of high-quality innovative drugs [3] - Chinese innovative pharmaceutical companies are increasingly focusing on internationalization, transitioning from imitation to innovation, supported by favorable policies and abundant clinical resources [2][3] - The ongoing drug review reforms are releasing dividends that are propelling the Chinese innovative drug industry into a new era of "innovation output" [2]

智通财经APP获悉，三款创新药发布公告取得有效进展，或引领恒生生物科技指数+恒生创新药指数企 稳。 1、11月20日，信达生物宣布，玛仕度肽注射液(IBI362)在中国中重度肥胖人群中开展的III期临床研究 (GLORY-2)达成主要终点和所有关键次要终点，信达生物将于近期向监管机构递交玛仕度肽9mg用于成 人体重控制的新药上市申请。 公开资料显示，玛仕度肽是信达生物与礼来制药共同推进的一款胰高血糖素(GCG)/胰高血糖素样 肽-1(GLP-1)双受体激动剂，也是全球首个获批的GCG/GLP-1双受体激动剂。该药已在国内获批两项适 应症，分别用于成人肥胖或超重患者的长期体重控制以及成人2型糖尿病患者的血糖控制。 2、2025年11月20日，复宏汉霖(02696)宣布，创新型PD-1抑制剂H药 汉斯状®(斯鲁利单抗，欧洲商品 名：Hetronifly®)被国家药品监督管理局(NMPA)药品审评中心(CDE)正式纳入突破性治疗品种名单，联 合化疗用于新辅助/辅助治疗胃癌，成为首个获CDE突破性疗法认定的胃癌围手术期治疗药物。 此次获得突破性疗法认定，标志着H药在胃癌围手术期治疗中的潜力与临床价值获得权威认可，有望 ...

Group 1: Company Developments - Xinda Biologics announced that its dual receptor agonist, Masitide, achieved primary and all key secondary endpoints in Phase III clinical trials for obesity in China, showing a significant weight reduction of 20.08% compared to placebo in subjects with a BMI ≥30 [1] - Xinda Biologics plans to submit a marketing application for Masitide 9mg for adult weight management to the National Medical Products Administration [1] - RoboSense has secured a three-year exclusive partnership with FAW Toyota for a new electric vehicle model, marking the first Chinese tech company to enter Toyota's lidar supply chain [6] Group 2: Market Trends - The U.S. stock market experienced significant declines, with the Dow Jones down 386.51 points (0.84%), S&P 500 down 103.4 points (1.56%), and Nasdaq down 486.18 points (2.15%) [2] - The U.S. non-farm payrolls added 119,000 jobs in September, exceeding expectations of 50,000, indicating a shift in economic data and Federal Reserve stance [2] - The domestic smartphone market in China saw a shipment of 27.93 million units in September 2025, a year-on-year increase of 10.1%, with 5G phones accounting for 86.3% of total shipments [4] Group 3: Financial Performance - Luxshare Precision Holdings expects a mid-term profit increase of approximately 40% to 50% for the six months ending September 30, 2025, driven by effective product differentiation and sales strategies [13] - Yidu International Holdings reported a net profit of approximately HKD 1.218 billion for the six months ending September 30, 2025, reflecting an increase of about 1155% year-on-year [14] - NetEase reported a third-quarter net profit of approximately RMB 8.616 billion (USD 1.2 billion), a year-on-year increase of 31.77% [15][16]

Major Events - Sanofi Pharmaceutical (01530) proposes to spin off Mandi International and independently list it on the main board of the Hong Kong Stock Exchange [1] - Youbao Online (02429) signs a trusted asset management platform service agreement with Ant Chain Technology [1] - Jianxi Technology-B (09877) reports 6-month clinical follow-up results for LuX-Valve Plus TRINITY study on patients with large valve rings [1] - Fuhong Hanlin (02696) announces that Hanshu® (Sru Li monoclonal antibody injection) combined with chemotherapy for gastric cancer neoadjuvant/adjuvant treatment has been officially included in the breakthrough therapy drug program by the National Medical Products Administration [1] - Kaizhile International (02122) partners with globally renowned toy company Jazwares to launch HELLO KITTY AND FRIENDS toys [1] Operating Performance - ZTO Express-W (02057) reports third-quarter net profit attributable to shareholders of 2.524 billion yuan, an increase of 5.32% year-on-year [1] - Lenovo Group (00992) announces interim results with a profit attributable to shareholders of 846 million USD, a year-on-year growth of 40% [1] - CSPC Pharmaceutical Group (01093) releases third-quarter results showing a profit attributable to shareholders of 3.511 billion yuan, a decrease of 7.06% year-on-year [1] - NetEase-S (09999) reports third-quarter net profit attributable to shareholders of approximately 8.616 billion yuan, a year-on-year increase of 31.77%, with a dividend of 0.114 USD per share [1] - Jingyou Pharmaceutical (00858) issues a profit warning, expecting a mid-term loss of approximately 450 million to 480 million HKD, transitioning from profit to loss year-on-year [1]

Group 1 - Moer Thread announced an issuance price of 114.28 CNY per share, with a total of 70 million shares to be publicly issued, aiming to raise 8 billion CNY, netting approximately 7.576 billion CNY after expenses [1] - EVE Energy signed a procurement framework agreement with Simo International for battery cells from 2026 to 2028, with the agreement effective until December 31, 2028, but does not specify a concrete amount [1] - Tuojing Technology's major shareholder, the National Integrated Circuit Industry Investment Fund, plans to reduce its stake by up to 3% through block trading from December 12, 2025, to March 11, 2026 [1] Group 2 - Shengyi Electronics announced that its shareholder, Dongguan Science and Technology Innovation Investment Group, plans to reduce its stake by up to 1% from December 12, 2025, to March 11, 2026, due to funding needs [2] - Deep Technology reported that it is a leading domestic high-end storage chip packaging and testing company, currently operating at full capacity in Shenzhen and Hefei, and is expanding based on customer demand [2] - Wengfeng Co. announced that its deputy general manager, Qin Guofen, is under investigation, but this matter is personal and will not significantly impact the company's operations [2] Group 3 - Fosun Pharma's subsidiary, Shanghai Fuhong Hanlin Biotechnology, has had its drug, Surulitinib, included in the breakthrough therapy designation for gastric cancer, with no other PD-1 monoclonal antibody approved for this indication globally [3] - Daye Co. is responding to the EU's anti-dumping investigation on Chinese lawnmowers, adjusting its overseas production structure and integrating resources to mitigate impacts [4]

Core Viewpoint - The company Fuhong Hanlin (2696.HK) announced that its innovative PD-1 inhibitor, H drug (Han's Zhuang®), has been officially included in the National Medical Products Administration (NMPA) breakthrough therapy list for use in combination with chemotherapy for new adjuvant/adjuvant treatment of gastric cancer, marking it as the first drug recognized by the NMPA for perioperative treatment of gastric cancer [1] Group 1 - The H drug has achieved significant clinical milestones, including reaching the primary endpoint in its Phase III clinical study, which demonstrated a significant reduction in recurrence risk and an increase in cure opportunities for gastric cancer patients [1] - This therapy is the first in the world to replace postoperative adjuvant chemotherapy with a single-agent immunotherapy for perioperative treatment of gastric cancer, potentially offering dual benefits of survival improvement and enhanced quality of life for patients [1] - The inclusion in the breakthrough therapy program allows the company to apply for conditional approval and priority review during the drug listing application process, which could accelerate the review and market launch of the H drug [1] Group 2 - Currently, there are no approved immunotherapies for perioperative treatment of gastric cancer globally, highlighting the potential market opportunity for the H drug [1] - The recognition of the H drug as a breakthrough therapy underscores its clinical value and potential in the field of gastric cancer treatment, filling a significant gap in immunotherapy options [1] - Following the announcement, the company's stock rose by 4.89% to HKD 67.6, marking a 185% increase year-to-date and a rebound of over 3.4 times from its year-to-date low on January 23 [1]

Core Insights - The innovative PD-1 inhibitor H药 (Hanshuan®) has been officially included in the National Medical Products Administration (NMPA) breakthrough therapy list for the neoadjuvant/adjuvant treatment of gastric cancer, marking it as the first drug recognized for this indication in perioperative treatment of gastric cancer [1] - The Phase III clinical trial (ASTRUM-006) demonstrated significant clinical efficacy, showing a more than threefold increase in the pathological complete response (pCR) rate compared to the control group, and a notable reduction in recurrence risk [1][2] - The recognition of H药 as a breakthrough therapy highlights its potential and clinical value in gastric cancer treatment, which may accelerate its review and market launch, filling a gap in immunotherapy for this field [1] Company Developments - On February 5, 2025, H药 received approval from the European Commission for use in first-line treatment of extensive-stage small cell lung cancer (ES-SCLC), becoming the first and only PD-1 monoclonal antibody approved in the EU for this indication [2] - The company has established partnerships with global commercial partners, covering over 70 countries and regions, indicating a strong international market presence [2] - The stock price of the company has surged by 185.23% this year, reflecting positive market feedback and the potential of Chinese innovative pharmaceutical companies in the global market [2] Industry Trends - The trend of Chinese innovative pharmaceutical companies expanding internationally is becoming evident, with a shift from "importing and imitating" to "innovative output" [2] - The ongoing reforms in drug approval processes are releasing dividends, supported by a rich clinical resource environment and favorable policies, indicating that the Chinese innovative drug industry has entered a 2.0 era [2] - The breakthrough recognition of H药 in perioperative therapy for gastric cancer serves as a strong example of the capabilities of Chinese innovative pharmaceutical companies on the global stage [2]

Core Insights - The innovative PD-1 inhibitor H drug (Hanshuo, known as Hetronifly in Europe) has been officially included in the breakthrough therapy list by the National Medical Products Administration (NMPA) for use in neoadjuvant/adjuvant treatment of gastric cancer, marking it as the first drug recognized for perioperative treatment of gastric cancer in this category [1] - The Phase III clinical study (ASTRUM-006) demonstrated significant efficacy, showing that H drug combined with chemotherapy can significantly extend event-free survival (EFS) and achieve a pathological complete response (pCR) rate over three times that of the control group, indicating a substantial reduction in recurrence risk [1] - The recognition of H drug as a breakthrough therapy highlights its potential and clinical value in gastric cancer treatment, which may accelerate its review and market entry, filling a gap in immunotherapy for this field [1] Company Developments - On February 5, 2025, the company announced that H drug received approval from the European Commission for use in first-line treatment of extensive-stage small cell lung cancer (ES-SCLC) in adults, making it the first and only PD-1 monoclonal antibody approved for this indication in the EU [2] - The company has established partnerships with global commercial partners such as Accord, KGbio, and Fosun Pharma, covering over 70 countries and regions, indicating a strong international market presence [2] - The company's stock has surged by 185.23% this year, reflecting positive market feedback and the potential of Chinese innovative pharmaceutical companies in the global market [2] Industry Trends - The trend of Chinese innovative pharmaceutical companies expanding internationally is becoming evident, with a shift from "importing and imitating" to "innovative output" in the industry [2] - The ongoing reforms in drug approval processes are providing significant benefits, supported by a rich clinical resource base and favorable policies, marking the transition of the Chinese innovative drug industry into its 2.0 era [2] - The breakthrough recognition of H drug in perioperative therapy for gastric cancer serves as a strong example of the capabilities of Chinese innovative pharmaceutical companies on the global stage [2]

Core Insights - The innovative PD-1 inhibitor H drug, Hanshuozhuang® (Slulizumab), has been officially included in the breakthrough therapy list by the National Medical Products Administration (NMPA) for use in neoadjuvant/adjuvant treatment of gastric cancer, marking it as the first drug recognized for perioperative treatment of gastric cancer in China [1][2] - The Phase III clinical study (ASTRUM-006) demonstrated significant efficacy, showing that H drug combined with chemotherapy can significantly extend event-free survival (EFS) and achieve a pathological complete response (pCR) rate over three times that of the control group, indicating a substantial reduction in recurrence risk [1][2] Company Developments - The breakthrough therapy designation is expected to accelerate the review and market entry of H drug, filling a gap in immune therapy for gastric cancer [2] - On February 5, 2025, the company announced that Hanshuozhuang® received approval from the European Commission for use in first-line treatment of extensive-stage small cell lung cancer (ES-SCLC), making it the first and only PD-1 monoclonal antibody approved in the EU for this indication [2] - The company has established partnerships with global commercial partners, covering over 70 countries and regions, indicating a strong international market strategy [2] Market Performance - The market response has been positive, with the company's stock price increasing by 185.23% this year, reflecting investor confidence in its growth potential [2] - The trend of Chinese innovative pharmaceutical companies expanding internationally is evident, with ongoing reforms in drug approval processes and supportive policies driving the industry towards a new phase of innovation and output [2][3]