Core Viewpoint - The Chinese innovative drug sector is gaining global competitiveness, highlighted by significant business development (BD) deals and the promising clinical data of the drug SM17, which is expected to attract attention from major pharmaceutical companies [1][2][12]. Group 1: Market Dynamics - The market is actively seeking the next major BD deal, especially after the significant $6 billion BD deal between 3SBio and Pfizer, indicating a trend of increasing interest in Chinese innovative drugs [1]. - The total amount of outbound transactions for Chinese innovative drugs is projected to reach a record high by 2025, with $45.5 billion already achieved in 2025 alone [5][7]. - The frequency of BD transactions is driven by multinational pharmaceutical companies facing "patent cliffs," necessitating the acquisition of innovative drug pipelines to replenish their product lines [7][8]. Group 2: SM17 Drug Overview - SM17 is a first-in-class monoclonal antibody targeting the IL-25 receptor, showing promising results in clinical trials for moderate to severe atopic dermatitis (AD) [2][3]. - The drug demonstrated a 91.7% response rate in itch control and a 75% response rate in skin lesion improvement during phase 1b trials, significantly outperforming existing treatments [4]. - SM17's unique dual mechanism of action allows for rapid itch relief and effective inflammation reduction, setting it apart from current therapies [3][4]. Group 3: Clinical and Commercial Potential - The global AD patient population is substantial, with at least 230 million affected worldwide, including over 70 million in China, indicating a significant market opportunity for SM17 [2][4]. - SM17's safety profile is favorable, with no serious adverse events reported during the clinical trials, further enhancing its attractiveness for potential licensing deals [4][9]. - The drug has potential applications beyond AD, including asthma and other autoimmune diseases, which could broaden its commercial prospects [9][11]. Group 4: Company Strategy and Future Outlook - The company has established a robust pipeline of innovative drugs, focusing on monoclonal antibodies for various immune-related diseases, positioning itself for sustainable growth [11][12]. - The strategic emphasis on self-research and innovation, coupled with promising clinical data for SM17, is expected to attract significant investment and partnership opportunities [12].

6月4日，截至港股收盘，恒生指数上涨0.6%，报23654.03点。中国抗体-B（03681.HK）收报2.85港元/ 股，上涨42.5%，成交量6045.78万股，成交额1.5亿港元，振幅39.5%。 最近一个月来，中国抗体-B累计涨幅26.58%，今年来累计涨幅83.49%，跑赢恒生指数17.21%的涨幅。 资料显示，中国抗体制药有限公司("中国抗体"或"公司",股份代号:3681.HK)聚焦研究、开发、生产及商 业化疗法,主要研制以单克隆抗体为基础的全球首创(FIC)生物制剂用以治疗免疫性疾病。公司注重科技 研发,其旗舰产品SM03 (Suciraslimab) 为全球首创用以治疗类风湿关节炎(RA)的抗CD22单抗药物,其商业 化进程正全速推进。SM03(Suciraslimab)在中国进行治疗RA的 III 期临床研究于二零二三年四月达到了 主要终点。于二零二三年九月五日,国家药品监督管理局已受理SM03(Suciraslimab)用于治疗类风湿关节 炎的生物制品许可申请(BLA),海口生产基地的临床现场检查及生产质量管理规范(GMP)检查是BLA审批 过程中的两个必要程序,均已于二零二四年一月完成 ...

Group 1: Stock Movements in Hong Kong Market - Youqu Holdings (02177) surged over 24% as it actively expands into the health sector with the launch of the Canadian anti-aging health food brand Vanpearl containing ergothioneine [1] - Longfly Fiber Optics (06869) rose nearly 10% following the commencement of mass production at its advanced Wuhan base, successfully producing its first 6-inch silicon carbide wafer [1] - SF Holding (06936) increased over 5% with a reported 19.1% year-on-year growth in express delivery volume in April 2025, reaching 16.32 billion parcels [1] Group 2: Notable Developments in Other Companies - Alibaba Pictures (01060) gained over 4% after announcing a name change to Damai Entertainment, indicating a focus on offline performances and IP derivatives [2] - Innovent Biologics (01801) rose over 4% after presenting promising results for its innovative drug IBI343 for treating advanced pancreatic cancer at the 2025 ASCO annual meeting [2] - Ideal Auto (02015) saw a rise of over 6% with May deliveries reaching 40,856 units, marking a 16.7% year-on-year increase [4] Group 3: U.S. Market Highlights - Ferguson (FERG.US) increased by 2.9% with Q3 sales of $7.621 billion, a 4.3% year-on-year growth, exceeding market expectations [5] - Credo Technology (CRDO.US) surged over 14% with Q4 revenue of $170.3 million, a 179.7% year-on-year increase [6] - Nvidia (NVDA.US) rose by 2.8% as UBS projected significant revenue from a new AI data center project in Texas [6]

Group 1 - As of June 3, a total of 105 stocks reached their 52-week highs, with Huayin International Holdings (00989), Dingyifeng Holdings (00612), and Youquhui Holdings (02177) leading the high rate at 57.26%, 37.93%, and 23.02% respectively [1] - The closing prices and highest prices for the top three stocks are as follows: Huayin International Holdings at 1.370 and 1.950, Dingyifeng Holdings at 0.770 and 0.800, and Youquhui Holdings at 3.550 and 3.580 [1] - Other notable stocks that reached their 52-week highs include China Antibody-B (03681) with a high rate of 21.62% and Fengcheng Holdings (02295) at 19.52% [1] Group 2 - The report also lists stocks that reached their 52-week lows, with Des Holdings (08437) showing the largest decline at -38.79%, followed by Dimi Life Holdings (01667) at -20.50% [3] - The closing prices and lowest prices for the top three stocks that reached their lows are: Des Holdings at 0.177 and 0.071, Dimi Life Holdings at 0.140 and 0.128, and Lujizhi Technology (01745) at 0.197 and 0.194 [3] - Other stocks with significant declines include GBA Group (00261) at -11.48% and Baide International (02668) at -10.88% [3]

Financial Performance - The company reported a pre-tax loss of RMB 243,111,000 for the fiscal year ending December 31, 2023, a decrease of 14.5% compared to RMB 284,158,000 in 2022[5]. - The total equity of the company decreased to RMB 192,911,000 in 2024 from RMB 295,583,000 in 2023, reflecting a decline of 34.7%[5]. - Other income and gains totaled approximately RMB 7.6 million, a decrease of about RMB 3.1 million compared to the previous year, primarily due to a reduction in government subsidies of approximately RMB 2.4 million[79]. - Research and development costs decreased to approximately RMB 94.8 million in 2024 from RMB 135.4 million in 2023, mainly due to a reduction in laboratory supplies and testing costs by approximately RMB 33.2 million[81]. - Administrative expenses totaled approximately RMB 67.7 million in 2024, down from RMB 97.6 million in 2023, primarily due to a decrease in share-based payments of approximately RMB 13.0 million[82]. - The total available funds, including cash and cash equivalents, pledged and restricted deposits, and structured deposits, decreased to RMB 141.4 million in 2024 from RMB 233.1 million in 2023, a net decrease of approximately RMB 91.7 million[86]. - The net cash used in operating activities was RMB (130.8) million in 2024, compared to RMB (133.8) million in 2023[88]. - As of December 31, 2024, the outstanding bank borrowings amounted to RMB 419.3 million, an increase from RMB 391.4 million in 2023[90]. - The actual interest rates on bank borrowings ranged from 3.15% to 3.90% in 2024, compared to 3.30% to 4.05% in 2023[90]. - The company reported a net current liability of RMB 18,161,000 and a net loss of RMB 185,141,000 for the year ending December 31, 2024[198]. Research and Development - Research and development costs for the fiscal year 2023 were RMB 135,409,000, down 25% from RMB 180,368,000 in 2022[5]. - The flagship product, Suciraslimab, has completed two major regulatory inspections and is awaiting final approval from the National Medical Products Administration for the treatment of rheumatoid arthritis[9]. - The company is actively exploring additional therapeutic applications for Suciraslimab, including its potential use in treating Alzheimer's disease[9]. - The development of SM17, a humanized monoclonal antibody targeting IL-25, is progressing significantly, with potential applications in atopic dermatitis, asthma, and other immune diseases[10]. - The company has added two new candidate drugs to its pipeline, targeting vitiligo and osteoporosis, respectively[11]. - The company aims to achieve three interrelated milestones by 2025: obtaining regulatory approval for Suciraslimab, strategic licensing or collaboration for SM17, and expanding its global footprint[12]. - SM17 demonstrated good safety and tolerability in preclinical and Phase 1 clinical trials, outperforming JAK1 inhibitors[13]. - The Phase 1b proof-of-concept study for SM17 in patients with atopic dermatitis (AD) included 32 moderate to severe patients, with the last patient visit completed on March 24, 2025[13]. - The flagship product, Suciraslimab (SM03), achieved primary endpoints in a Phase 3 clinical study for rheumatoid arthritis (RA) in China, with the Biologics License Application (BLA) accepted in September 2023[22]. - The company is actively exploring partnerships with major pharmaceutical companies to advance the development of SM17 based on strong Phase 1 data obtained in the US and China[13]. - The Phase 1 clinical trial results for SM17 were published in the journal "Frontiers in Immunology," demonstrating excellent safety, tolerability, and pharmacokinetic properties[13]. - The extended Phase III trial for Suciraslimab is expected to complete in December 2024, with results anticipated in Q3 2025[34]. - Suciraslimab's long-term efficacy data indicates sustained response rates over time, suggesting advantages over traditional biologics[34]. - SM17's preclinical studies showed efficacy comparable to JAK1 inhibitors in treating atopic dermatitis in mouse models[39]. - The company plans to advance clinical development of Suciraslimab for additional indications, including SLE and Alzheimer's-related MCI, post-commercialization[35]. - The Phase III trial for Suciraslimab demonstrated effective reduction in disease activity for RA patients[34]. - SM17's mechanism targets IL-25, potentially benefiting patients with allergic and autoimmune diseases[36]. - The IND application for asthma was submitted in May 2023 and approved on August 11, 2023, while the IND application for AD was submitted in June 2023 and approved on September 8, 2023[40]. - A bridging Phase 1a clinical trial in China is expected to complete in May 2024, assessing the safety, tolerability, and PK characteristics of SM17, which showed good tolerability and safety[40]. - The Phase 1b clinical trial for SM17 in moderate to severe AD patients commenced with 32 patients enrolled, with the last patient visit scheduled for March 24, 2025[40]. - SN1011, a third-generation reversible covalent BTK inhibitor, has shown high target selectivity and durable controllable efficacy for potential long-term treatment of SLE, pemphigus, MS, and NMOSD[42]. - The company has established a pipeline of monoclonal antibodies and new chemical entities (NCEs) to address unmet medical needs in immune diseases[21]. - The company is optimizing the CMC for SM06, a second-generation anti-CD22 antibody, which may have stronger immunomodulatory effects[44]. - The company is conducting CMC optimization and toxicology studies for an internally developed anti-γc antibody, which shows potential for treating vitiligo and other autoimmune diseases[46]. - The company has established a preclinical research platform focused on autoimmune diseases, with ongoing clinical projects generating pharmacological data for products like SM06, which is currently in the IND application stage[64]. - The company is optimizing the production and preclinical research of SM09, with plans to apply for clinical trials after completing preclinical studies[68]. Corporate Governance and Management - The management team includes experienced professionals with extensive backgrounds in the pharmaceutical industry, contributing to strategic direction and operational management[104]. - The company is focused on strategic development and governance, with a strong emphasis on independent judgment from its board members[114]. - The board includes members with extensive backgrounds in investment, research, and strategic management within the pharmaceutical sector[112]. - The company has adopted the corporate governance code and has complied with all applicable provisions during the reporting period, except for the separation of roles between the chairman and CEO[134][148]. - The company promotes a corporate culture of "ELITES," focusing on excellence, learning, innovation, talent, efficiency, and collaboration[135][136]. - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[134]. - The company has a strong management team with extensive research and business management experience, leading to stable progress in drug development[137]. - The company has appointed a new company secretary effective March 31, 2023, enhancing its corporate governance structure[131]. - The board consists of ten members, including two executive directors, four non-executive directors, and four independent non-executive directors[143]. - The board believes that Dr. Liang, as the founder and CEO, has a comprehensive understanding of the company's business, supported by Mr. Wang's role as Executive Director and President (China Region) since his appointment[150]. - The board has maintained compliance with listing rules, ensuring at least three independent non-executive directors, constituting one-third of the board, with one possessing appropriate professional qualifications in accounting or related financial management[151]. - All independent non-executive directors have confirmed their independence in writing according to listing rules, ensuring effective governance and oversight[151]. - The company has established a training program for all directors, covering topics related to their responsibilities under listing rules and relevant legal obligations[158]. - The board held regular meetings throughout the year, with a minimum of four meetings planned, approximately once per quarter, to ensure effective governance[160]. - The company has a high proportion of independent directors, with two executive directors and four independent non-executive directors, ensuring a balanced decision-making process[150]. - The company has implemented a director and officer liability insurance policy, which is reviewed annually to protect against potential legal actions[155]. - The board is responsible for leading and monitoring the company, ensuring good internal controls and risk management systems are in place[154]. - The company has established clear written terms of reference for its three committees: audit, remuneration, and nomination[163]. - The audit committee is tasked with monitoring the effectiveness of risk management and internal control systems[165]. - The remuneration committee reviewed the remuneration policies for all directors and senior management, assessing performance and making recommendations for individual remuneration[172]. - The nomination committee is responsible for reviewing the composition of the board and making recommendations for the appointment of directors[177]. - The board has adopted a diversity policy, recognizing that board diversity is crucial for achieving strategic goals and sustainable development[182]. - The gender ratio at the board level is currently 1:9 (female to male), while the employee level ratio is 45:55[185]. - The board is responsible for reviewing the effectiveness of the risk management and internal control systems, which aim to manage risks associated with achieving business objectives[187]. - An independent consultant was hired to analyze and review the adequacy and effectiveness of the risk management and internal control systems during the fiscal year[188]. - The audit committee reviews the risk management policies to ensure alignment with business strategies and monitors the management's handling of significant risks[193]. - The CFO is responsible for formulating and updating risk management policies and ensuring the implementation of risk management measures across departments[193]. Market and Industry Insights - The global autoimmune disease drug market is projected to grow from $120.5 billion in 2020 to $163.8 billion by 2030, with a CAGR of 3.1%[70]. - The Chinese rheumatoid arthritis (RA) treatment market is expected to reach RMB 32.8 billion by 2024 and RMB 83.3 billion by 2030, with a CAGR of 16.8%[70]. - The biopharmaceutical market share for biologics in the Chinese RA treatment market is projected to increase from 43.4% in 2024 to 59.8% by 2030[70]. - The global asthma patient population is expected to reach approximately 860 million by 2030, with a significant increase in patients in China[72]. - The company believes that SM17, targeting the Th2 inflammatory cytokine pathway, will provide a safe and effective treatment option for atopic dermatitis (AD) and asthma[71][72]. Production and Facilities - The Suzhou production facility is expected to pass completion acceptance in early 2025, following the completion of construction by the end of 2024[17]. - The clinical site inspections and GMP checks for the Haikou production base were completed in January 2024, which are necessary for the BLA approval process[22]. - The production facility in Haikou spans approximately 19,163 square meters with a capacity of 1,200 liters, and completed GMP inspection in January 2024[52]. - The second production facility in Suzhou, covering 43,158 square meters, is expected to complete construction by the end of 2024 and pass acceptance inspection in early 2025[53]. - The company has acquired a 43,158 square meter land in Suzhou, China, for a new production facility, expected to be completed by the end of 2024[68]. Intellectual Property - The company holds 91 invention patents as of December 31, 2024, compared to 35 patents as of December 31, 2023, indicating significant growth in intellectual property[56]. - As of December 31, 2024, the company has six pending patent applications in the U.S., seven in China, and six in the EU[54].

Core Insights - China Antibody's innovative drug SM17 has shown promising results in a Phase 1b clinical trial for moderate to severe atopic dermatitis (AD), demonstrating significant advantages in itch relief, skin lesion treatment, and safety compared to existing products [1][5][6] Clinical Results - Over 90% of patients treated with high-dose SM17 achieved an NRS-4 response, while over 70% reached an EASI 75 response, and over 40% achieved an IGA 0/1 response [1][5] - No serious adverse events (SAE) or grade 3 and above drug-related adverse events were reported during the trial, indicating a favorable safety profile [4][5] Mechanism of Action - SM17 is a first-in-class humanized IgG4-κ monoclonal antibody targeting the IL-25 receptor, which plays a crucial role in the inflammatory response associated with AD [2][12] - By inhibiting IL-25 binding to its receptors, SM17 effectively reduces downstream inflammatory cytokines, promoting skin repair and reducing inflammation [2][12] Market Potential - The global atopic dermatitis drug market is projected to grow from $13.62 billion in 2023 to $31.44 billion by 2034, highlighting the significant commercial opportunity for effective treatments like SM17 [8][10] - With over 230 million AD patients worldwide, including more than 70 million in China, the demand for effective therapies is substantial [7][10] Competitive Landscape - Current treatments for AD, such as Dupilumab, have limitations, including slow onset and safety concerns, creating an unmet need that SM17 could address [10][11] - The AD treatment market is highly competitive, with a focus on innovative targets; however, SM17's unique mechanism may provide a competitive edge [10][11] Commercialization Strategy - The potential for licensing SM17 to multinational pharmaceutical companies is seen as a key pathway for commercialization, similar to recent high-value deals in the AD space [11][12] - The drug's early safety and efficacy data, along with its novel mechanism, position it as an attractive candidate for partnerships and market entry [12][13]

Financial Performance - The company reported a reduction in annual loss to RMB 185.1 million for the year ending December 31, 2024, down from RMB 243.1 million for the previous year, primarily due to reduced laboratory and trial costs [7]. - Total revenue for the year ended December 31, 2024, was RMB 2,026 million, an increase from RMB 1,365 million in 2023, representing a growth of 48.4% [116]. - Gross profit for the same period was RMB 543 million, compared to RMB 422 million in 2023, indicating a gross margin improvement [116]. - The company reported a net loss of RMB 185,141 thousand for 2024, an improvement from a net loss of RMB 243,111 thousand in 2023, reflecting a reduction of approximately 23.9% [117]. - The company's total equity decreased to RMB 192,911 thousand in 2024 from RMB 295,583 thousand in 2023, a decline of 34.7% [118]. - The basic loss per share improved to RMB (0.17) in 2024 from RMB (0.24) in 2023, indicating a positive trend in loss reduction [116]. Cash Flow and Funding - As of December 31, 2024, the total available funds, including cash and cash equivalents, amounted to RMB 141.4 million, a decrease from RMB 233.1 million as of December 31, 2023 [7]. - The net cash flow used in operating activities was RMB (130.8) million, compared to RMB (133.8) million in the previous year [82]. - The total outstanding bank borrowings increased to RMB 419.3 million as of December 31, 2024, up from RMB 391.4 million a year earlier [83]. - The group recorded a net cash flow decrease of RMB 152.0 million in cash and cash equivalents during the year [82]. - The group has pledged land use rights and construction in progress with a book value of RMB 334.3 million to secure bank loans [84]. Research and Development - The company has made significant progress in its clinical trials and pipeline development, with a Phase 3 extension trial for Suciraslimab completed in December 2024, involving 93 patients [4]. - The company has increased its patent portfolio significantly, with the number of granted and pending patents more than doubling since the beginning of the reporting period [6]. - The company initiated a Phase 1b clinical trial for treating atopic dermatitis (AD) in May 2024, with the first patient dosed on June 5, 2024 [6]. - The company aims to achieve three interrelated milestones by 2025: obtaining regulatory approval for Suciraslimab, strategic licensing or advancing SM17 collaborations, and expanding its global footprint [14]. - The company has established a robust pipeline with multiple products in various stages of clinical development, including Suciraslimab, SM17, and SN1011 [22]. Product Development and Pipeline - The flagship product, Suciraslimab, is currently undergoing the final review stage for its Biologics License Application (BLA) in China, with clinical trial site inspections completed in January 2024 [4]. - The flagship product, Suciraslimab, has successfully completed two major regulatory reviews, including clinical base review and GMP review, and is awaiting final market approval for treating rheumatoid arthritis [9]. - The product SM17, a humanized monoclonal antibody targeting IL-25, has received IND approval for asthma and atopic dermatitis (AD) in China, with a Phase 1b clinical trial for moderate to severe AD patients successfully completed [19]. - The company is actively exploring partnerships with major pharmaceutical companies to further advance the development of SM17 [11]. - The company has developed a novel asset pipeline covering preclinical, clinical, and pre-registration stages for treating various inflammatory and autoimmune diseases, aiming to maximize asset commercial value through strategic partnerships [50]. Market Outlook and Strategy - The company remains confident in the future of the Hong Kong biotech industry, supported by government policies promoting health and medical innovation [13]. - The global autoimmune disease drug market is projected to grow from $120.5 billion in 2020 to $163.8 billion by 2030, with a CAGR of 3.1% [58]. - The company aims to become a global leader in innovative therapies for immune-related diseases and other degenerative conditions [17]. - The company is focusing on developing monoclonal antibodies to address unmet medical needs in the global market [17]. - The company has established collaborations with global enterprises and research institutions to develop innovative therapies for unmet medical needs in the field of autoimmune diseases [37]. Corporate Governance and Compliance - The board confirms adherence to the corporate governance code throughout the reporting period, ensuring high standards of corporate governance [105]. - The independent auditor's report confirms that the consolidated financial statements reflect the group's financial position accurately as of December 31, 2024 [110]. - The audit committee consists of four independent non-executive directors, ensuring effective oversight of financial reporting and risk management [108]. - The financial statements for the years ending December 31, 2023, and December 31, 2024, have been submitted to the company registry as per regulations [106]. - The board believes that the combination of the roles of chairman and CEO does not impair the balance of responsibilities within the board [107].

Product Development and Clinical Trials - The flagship product Suciraslimab (SM03) is currently in the final review stage for its Biologics License Application (BLA) in China, with necessary inspections completed in January 2024[3]. - Significant progress has been made in the development of SM17, a first-in-class monoclonal antibody targeting IL-25, with successful Phase I clinical trial reports in the US and completion of a Phase Ia bridging study in China[4]. - SM17 has shown good safety and tolerability, indicating superiority over JAK1 inhibitors in these aspects[4]. - The ongoing Phase III extension trial for Suciraslimab demonstrates sustained efficacy over time, indicating long-term benefits compared to traditional biologics[4]. - The flagship product Suciraslimab (SM03) achieved primary endpoints in Phase III clinical trials for rheumatoid arthritis (RA) in China[8]. - The clinical trial for SM17 in treating AD is set to commence on June 5, 2024, with the first patient dosing[8]. - SM17's Phase I clinical trial results are expected to be reported in Q1 2024, showing good safety, tolerability, and pharmacokinetic properties[8]. - The company is advancing SM06, a second-generation anti-CD22 antibody, which is currently in the IND stage and undergoing clinical research optimization[8]. - The company is committed to expanding the therapeutic applications of Suciraslimab to address unmet medical needs in various autoimmune and neuroimmune diseases[13]. - The Phase 1b clinical trial for SM17 in AD patients has successfully dosed its first patient in June 2024, with the trial progressing as planned[15]. Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 2,026 million, compared to RMB 1,365 million for the same period in 2023, representing a year-over-year increase of 48.3%[67]. - Gross profit for the first half of 2024 was RMB 543 million, up from RMB 422 million in the first half of 2023, indicating a growth of 28.7%[67]. - The company reported a loss before tax of RMB 90,622 million for the six months ended June 30, 2024, an improvement from a loss of RMB 134,096 million in the same period of 2023, reflecting a reduction of 32.4%[67]. - The basic and diluted loss per share for the six months ended June 30, 2024, was RMB 0.08, an improvement from RMB 0.13 in the same period of 2023[53]. - The total amount of available funds as of June 30, 2024, was RMB 220.0 million, down from RMB 233.1 million as of December 31, 2023[46]. - Cash and cash equivalents decreased to RMB 153.6 million as of June 30, 2024, from RMB 203.7 million as of December 31, 2023[47]. Research and Development - The company is focused on research, development, production, and commercialization of therapies, leveraging its innovative R&D team in Hong Kong and manufacturing capabilities in China[8]. - The company has established a pipeline of monoclonal antibodies and new chemical entities targeting various immune diseases[8]. - The company has established collaborations with global enterprises and research institutions to develop innovative therapies for autoimmune diseases[18]. - The company has developed proprietary innovative technologies and therapeutic platforms to identify novel antibody candidates targeting new pathways[34]. - The company is actively exploring innovative drug targets and has a strong R&D team to foster a culture of innovation[29]. Strategic Initiatives and Partnerships - The company is strategically exploring partnerships and collaboration opportunities to accelerate the development of innovative candidates[6]. - The company aims to create significant therapeutic advancements through innovative mechanisms and models to improve immunogenicity and reduce manufacturing complexities[3]. - The company is focused on expanding its business network globally through business development activities[6]. - The company is committed to maximizing the commercial value of its assets and accelerating the development of innovative therapies for autoimmune diseases[25]. Market Outlook and Growth Potential - The global autoimmune disease drug market is projected to grow from $120.5 billion in 2020 to $163.8 billion by 2030, with a CAGR of 3.1%[30]. - The rheumatoid arthritis (RA) treatment market in China is expected to reach RMB 32.8 billion by 2024 and RMB 83.3 billion by 2030, representing a CAGR of 16.8%[30]. - The number of atopic dermatitis (AD) patients in China is projected to grow from 6.57 million in 2019 to 8.17 million by 2030, with the market value expected to increase from $600 million in 2019 to $1.5 billion by 2024 and further to $4.3 billion by 2030[32]. - The global asthma patient population is expected to reach approximately 860 million by 2030, with China's asthma patients projected to be 78.1 million[33]. Corporate Governance and Management - The company has maintained high standards of corporate governance, adhering to applicable code provisions during the reporting period[12]. - The roles of chairman and CEO are currently held by Dr. Liang Rui'an, who is also the founder, ensuring effective management and business development[13]. - The audit committee, consisting of four independent non-executive directors, has reviewed the interim report and the accounting principles adopted by the group[15]. Employee and Operational Efficiency - The company has established stock incentive and stock option plans to enhance employee engagement and retention[22]. - The total number of employees as of June 30, 2024, was 214, with employee costs amounting to approximately RMB 31.7 million during the reporting period[22]. - The company streamlined its clinical team to improve efficiency, resulting in a reduction of R&D personnel costs by approximately RMB 4.4 million[43]. Future Plans and Investments - The company plans to submit a Biologics License Application (BLA) for Suciraslimab in September 2023, with commercialization expected within 10 to 12 months if no additional data is required[8]. - The company plans to allocate approximately HKD 250.9 million for the clinical trials of its core product SMO3, with funding expected to be utilized by the end of 2024[115]. - The company is focused on diversifying its product portfolio through the discovery and development of new pipeline drugs, with ongoing funding efforts[115].

[Performance Summary](index=2&type=section&id=%E6%91%98%E8%A6%81) [Business Highlights](index=2&type=section&id=%E6%A5%AD%E5%8B%99%E6%91%98%E8%A6%81) During the reporting period, the Group achieved significant progress in clinical trials and pipeline development, with flagship product Suciraslimab (SM03) nearing NMPA approval and key product SM17 advancing in clinical trials in both the US and China, while its intellectual property portfolio nearly doubled - The Biologics License Application (BLA) for flagship product **Suciraslimab (SM03)** for rheumatoid arthritis (RA) has entered the final review stage with China's National Medical Products Administration (NMPA), with necessary on-site inspections completed in January 2024[2](index=2&type=chunk) - Key product **SM17** (anti-IL-25 receptor antibody) demonstrated good safety, tolerability, and pharmacokinetic (PK) profiles in its Phase I first-in-human clinical trial in the US, with the first patient dosed in the China Phase 1b clinical trial on June 5, 2024[2](index=2&type=chunk) - The Group achieved significant intellectual property progress, with the number of authorized and pending invention patents nearly doubling by **June 30, 2024**, compared to the beginning of the reporting period, primarily due to new preclinical candidate discoveries[2](index=2&type=chunk) [Financial Highlights](index=3&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) During the reporting period, the Group's loss significantly narrowed to RMB 90.6 million, a 32.4% year-on-year reduction, primarily due to effective control over R&D and administrative expenses, and reduced exchange losses, with total available funds at period-end of RMB 220.0 million supported by net financing cash inflow Financial Performance Summary | Metric | H1 2024 (RMB million) | H1 2023 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Loss for the Period | 90.6 | 134.1 | ↓ 32.4% | | Total Available Funds (Period-end) | 220.0 | - | - | | Net Cash from Financing Activities | 93.4 | - | - | - The reduction in loss was primarily due to: (i) decreased laboratory consumables and trial costs in R&D following the acceptance of the **Suciraslimab BLA** and receipt of the **SM17 Phase I report**; (ii) a reduction of approximately **RMB 7.5 million** in share-based non-cash payments; and (iii) a decrease of approximately **RMB 17.1 million** in net exchange losses[3](index=3&type=chunk) - Completed 15 subscription agreements in **January 2024**, raising net proceeds of approximately **HKD 73.2 million**[3](index=3&type=chunk) - The Board resolved not to declare an interim dividend[3](index=3&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Business Review and Outlook](index=4&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E8%88%87%E5%B1%95%E6%9C%9B) The company adheres to the philosophy of discovering and developing first-in-class drugs, focusing on innovative treatments for immunological diseases, with flagship product Suciraslimab (SM03) nearing commercialization and key product SM17 making significant progress, while remaining optimistic about future profitability and shareholder value creation - The company positions itself in the new era of **Biotechnology 3.0**, focusing on drug development for prevalent diseases such as age-related conditions, autoimmune diseases, and mental health disorders[4](index=4&type=chunk) - The BLA application for flagship product **Suciraslimab (SM03)** is in the final review stage with the NMPA, with its Phase III extension trial demonstrating durable efficacy and long-term sustainable benefits[4](index=4&type=chunk) - Key product **SM17** has achieved significant progress in treating atopic dermatitis (AD), with preclinical study results published in a prestigious journal and Phase 1b clinical trials initiated[5](index=5&type=chunk) - Looking ahead, the company anticipates commercial profitability upon **Suciraslimab's** market approval and aims to confirm **SM17's** differentiated advantages over existing therapies[6](index=6&type=chunk) [Product Pipeline and Clinical Progress](index=6&type=section&id=%E7%94%A2%E5%93%81%E7%AE%A1%E7%B7%9A%E8%88%87%E8%87%A8%E5%BA%8A%E9%80%B2%E5%B1%95) The company has established a robust product pipeline focused on immunological diseases, with flagship product Suciraslimab (SM03) for RA nearing commercialization, and key products SM17 and SN1011 showing positive clinical development progress across multiple indications, complemented by preclinical-stage investigational drugs Product Pipeline Overview | Product | Target/Type | Key Indications | Latest Progress | | :--- | :--- | :--- | :--- | | **Suciraslimab (SM03)** | Anti-CD22 mAb (First-in-class) | Rheumatoid Arthritis (RA) | China BLA application in final review stage | | **SM17** | Anti-IL-25R mAb (First-in-class) | Atopic Dermatitis (AD), Asthma | US Phase I completed, China Phase 1b initiated | | **SN1011** | Third-gen BTK Inhibitor | Systemic Lupus Erythematosus (SLE), Pemphigus, etc. | 4 IND approvals from NMPA | | **SM06** | Second-gen Anti-CD22 mAb | Systemic Lupus Erythematosus (SLE), etc. | IND-enabling stage, CMC optimization | | **SM09** | Anti-CD20 mAb | Non-Hodgkin Lymphoma (NHL) | Preclinical research optimization | [Flagship Product: Suciraslimab (SM03)](index=8&type=section&id=%E8%88%92%E8%A5%BF%E5%88%A9%E5%96%AE%E6%8A%97%20(Suciraslimab%2C%20SM03)) SM03 is a first-in-class anti-CD22 monoclonal antibody for rheumatoid arthritis (RA) and other immunological diseases, with its Phase III clinical study meeting primary endpoints and BLA application accepted by the NMPA in September 2023, positioning it as the company's first potential commercialized drug following completed GMP inspections - **SM03's** BLA application for RA was accepted by the NMPA in **September 2023**, nearing commercialization, with clinical site and GMP inspections completed in **January 2024**[15](index=15&type=chunk)[8](index=8&type=chunk) - Phase III extension trial data indicate **SM03** offers durable efficacy, with response rates continuously increasing over time, demonstrating long-term sustainable benefits superior to conventional biologics[14](index=14&type=chunk) [Key Product: SM17](index=9&type=section&id=SM17) SM17 is a first-in-class humanized monoclonal antibody targeting the IL-25 receptor, with potential for treating atopic dermatitis (AD), asthma, and idiopathic pulmonary fibrosis (IPF), demonstrating good safety and PK profiles in its US Phase I trial and successfully dosing its first patient in China's Phase 1b clinical trial for AD in June 2024 - The US Phase I clinical trial report, obtained in **Q1 2024**, indicated **SM17** demonstrated good overall safety, tolerability, and PK profiles[18](index=18&type=chunk)[9](index=9&type=chunk) - China's Phase 1b clinical trial for AD completed its first patient dosing on **June 5, 2024**, aiming to explore preliminary efficacy and safety[18](index=18&type=chunk) - Preclinical study results published in **Allergy** journal demonstrated **SM17** was as effective as JAK1 inhibitors in treating mouse AD[18](index=18&type=chunk)[9](index=9&type=chunk) [Key Product: SN1011](index=10&type=section&id=SN1011) SN1011 is a third-generation reversible covalent BTK inhibitor targeting various autoimmune diseases, including systemic lupus erythematosus (SLE), pemphigus, and multiple sclerosis (MS), having shown good safety and PK profiles in its Phase I studies in Australia and China, and currently holding four IND approvals from the NMPA for different indications - **SN1011** has received **4 IND approvals** from the NMPA for the treatment of SLE, pemphigus, MS, and NMOSD, respectively[20](index=20&type=chunk)[9](index=9&type=chunk) [Manufacturing, Intellectual Property, and Collaborations](index=11&type=section&id=%E7%94%A2%E7%94%9F%E3%80%81%E7%9F%A5%E8%AD%98%E7%94%A2%E6%AC%8A%E8%88%87%E5%90%88%E4%BD%9C) The company operates a 1,200-liter capacity manufacturing facility in Haikou, which has completed GMP inspections supporting the SM03 BLA application, while a second commercial-scale facility is under construction in Suzhou, intellectual property holdings have significantly increased to 67 patents, and active collaborations with LifeArc and Everest Medicines are accelerating drug development and commercialization - The Haikou manufacturing facility completed GMP inspections in **January 2024**, supporting **SM03's BLA** approval, with the new Suzhou manufacturing base expected to pass completion acceptance in late **2024**[24](index=24&type=chunk)[25](index=25&type=chunk) Invention Patents Owned | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Number of Invention Patents Owned* | 67 | 35 | - Collaborated with UK-based **LifeArc** for the development and commercialization of **SM17**, and partnered with **Everest Medicines** to license global development rights for **SN1011** for kidney diseases[23](index=23&type=chunk) [Market Overview and Strategic Platforms](index=17&type=section&id=%E5%B8%82%E5%A0%B4%E6%A6%82%E8%A6%BD%E8%88%87%E6%88%B0%E7%95%A5%E5%B9%B3%E5%8F%B0) The company focuses on the autoimmune disease sector with significant market potential, projecting the Chinese RA market to reach RMB 83.3 billion and the global AD market USD 27.7 billion by 2030, and has established five internal strategic R&D platforms to continuously identify innovative targets and develop new drugs for competitive advantage - Broad market prospects: The Chinese RA market is projected to reach **RMB 83.3 billion** by **2030**, and the global AD market is expected to reach **USD 27.7 billion**[39](index=39&type=chunk)[40](index=40&type=chunk) - The company has established **five internal strategic R&D platforms** to support continuous drug innovation: - **B-cell Therapy Platform** (producing SM03, SM06, SM09, SN1011) - **Alarmins Pathway Therapy Platform** (producing SM17) - **Selective T-cell Therapy Platform** - **Neurological Diseases Platform** - **Antibody Framework Remodeling Humanization Platform** (for SM06, SM09)[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) [Financial Review](index=21&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) During the reporting period, the Group's financial position showed positive changes, with R&D costs decreasing 17.5% year-on-year to RMB 55.0 million and administrative expenses decreasing 31.9% year-on-year to RMB 34.2 million due to cost optimization and reduced non-cash expenses, while total available funds were RMB 220.0 million and the gearing ratio increased to 73.6% Expense Analysis | Expense Item | H1 2024 (RMB million) | H1 2023 (RMB million) | Reason for Change | | :--- | :--- | :--- | :--- | | **Research and Development Costs** | 55.0 | 66.8 | Decreased trial costs after SM03 BLA acceptance and SM17 Phase I report | | **Administrative Expenses** | 34.2 | 50.2 | Reduced share-based payments and depreciation/amortization | Liquidity and Capital Position | Liquidity and Capital | June 30, 2024 (RMB million) | December 31, 2023 (RMB million) | | :--- | :--- | :--- | | Total Available Funds | 220.0 | 233.1 | | Interest-bearing Bank Borrowings | 423.8 | 391.4 | | Gearing Ratio | 73.6% | 53.5% | - During the reporting period, net cash outflow from operating activities was **RMB 70.6 million**, net cash outflow from investing activities was **RMB 76.4 million**, and net cash inflow from financing activities was **RMB 93.4 million**[54](index=54&type=chunk) [Use of Proceeds](index=24&type=section&id=%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The company adjusted the use of net proceeds from the global offering, reallocating HKD 15.0 million to working capital and general corporate purposes, with HKD 98.0 million of IPO proceeds remaining unutilized as of June 30, 2024, and detailed the usage of funds from 2022 and 2023 share subscriptions primarily for core product R&D and clinical studies - The Board resolved to change the use of listing proceeds, reallocating **HKD 15.0 million** to 'working capital, expansion of internal capabilities, and other general corporate purposes'[62](index=62&type=chunk) Proceeds Utilization Summary | Source of Funds | Net Proceeds (HKD million) | Used as of 2024/6/30 (HKD million) | Unused as of 2024/6/30 (HKD million) | | :--- | :--- | :--- | :--- | | Global Offering (IPO) | 1,272.8 | 1,174.8 | 98.0 | | 2022 Share Subscription | 50.9 | 38.4 | 12.5 | | 2023 Share Subscription | 73.2 | 8.4 | 64.8 | [Interim Condensed Consolidated Financial Statements](index=32&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Interim Condensed Consolidated Statement of Profit or Loss](index=32&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2024, the company recorded revenue of RMB 2.0 million and gross profit of RMB 0.5 million, with a significantly narrowed loss for the period of RMB 90.6 million compared to RMB 134.1 million in the prior year, resulting in a basic loss per share of RMB 0.08 Statement of Profit or Loss | Item (RMB thousands) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 2,026 | 1,365 | | Gross Profit | 543 | 422 | | Research and Development Costs | (55,035) | (66,750) | | Administrative Expenses | (34,205) | (50,200) | | **Loss for the Period** | **(90,622)** | **(134,096)** | | **Loss Per Share (RMB)** | **(0.08)** | **(0.13)** | [Interim Condensed Consolidated Statement of Financial Position](index=34&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2024, the company's total assets were RMB 841.8 million, total liabilities were RMB 564.9 million, and net assets were RMB 276.9 million, with non-current assets primarily consisting of property, plant, and equipment, and liabilities mainly composed of interest-bearing bank borrowings Statement of Financial Position | Item (RMB thousands) | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | **Total Non-Current Assets** | 575,746 | 577,603 | | **Total Current Assets** | 266,056 | 270,183 | | *Of which: Cash and Cash Equivalents* | 153,617 | 203,664 | | **Total Current Liabilities** | 202,696 | 172,646 | | **Total Non-Current Liabilities** | 362,176 | 379,557 | | **Net Assets** | **276,930** | **295,583** | | **Total Equity** | **276,930** | **295,583** | [Other Information](index=30&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) [Corporate Governance and Dividends](index=30&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E8%88%87%E8%82%A1%E6%81%AF) The company is committed to high standards of corporate governance, applying the principles of the Corporate Governance Code despite a deviation where Dr. Liang Ruian serves as both Chairman and CEO, an arrangement the Board deems in the company's best interest, and has resolved not to declare an interim dividend for the six months ended June 30, 2024 - The company deviates from Corporate Governance Code Provision C.2.1, where the roles of Chairman and Chief Executive Officer are combined and held by Dr. Liang Ruian. The Board believes this arrangement is in the Group's best interest, given Dr. Liang's founder status and extensive business knowledge[76](index=76&type=chunk) - The Board has resolved not to declare an interim dividend for the six months ended **June 30, 2024**[78](index=78&type=chunk)[3](index=3&type=chunk) - The company's independent auditor, **Ernst & Young**, has reviewed the interim condensed consolidated financial information. The Audit Committee, in conjunction with management and the auditor, has reviewed and deemed the interim results to be in compliance with applicable accounting standards[97](index=97&type=chunk)

截至二零二三年十二月三十一日止年度,董事會組成變更如下： 董事之履歷資料載於本年報第23至30頁之「董事及管理層」一節。 主席及首席執行官 根據授權協議,本公司已於二零二一年收取初始預付款4百萬美元,並有權收取最多合共183百萬美元的發展和銷售里程 碑付款。本公司保留SN1011 腎病之自身免疫相關領域外的其他適應症的全部免疫權利,並會繼續推進其研發活動。 各獨立非執行董事已與本公司簽署委任書,初步任期為期三年並須根據細則及上市規則接受重新委任、輪值退任及廖選 連任。 委任及重遴董事 董事會應負責領導及監控本公司,並共同負責指導及監督本公司事務。 童事須向本公司披露彼等擔任的其他職務的詳情。 中國抗體製蔡有限公司 2023年年報 √ J Dylan Carlo TINKER先生 每名新委任的董事於其獲委任之初將接受正式全面的就任需知·以確保彼對本公司業務及營運有適當的了解·並完全知 悉董事在上市規則及相關法律規定下的職責及責任。 培訓類型(附註1) 附註： 2. 於二零二三年九月六日辭任 蘇州生產基地 1. 於二零二三年九月六日辭任 董事於截至二零二三年十二月三十一日止年度舉行的董事會會議及股東大會的出席記錄 ...