Group 1 - CRO concept stocks experienced a strong performance in early trading, with notable gains from companies such as Fonda Holdings (+14.49%), Kanglong Chemical (+7.9%), and King’s Ray Biotechnology (+7.17%) [1] - Medpace, an overseas CRO company, saw its stock price jump over 44% at the opening, reaching a peak increase of 62.3% before closing with a nearly 54.7% rise, marking its highest closing record and the largest single-day increase since its listing nearly nine years ago [1] - Medpace's Q2 financial report indicated a revenue and EBITDA growth of over 10% year-on-year, exceeding analyst expectations by more than 11%, and the company raised its revenue and profit guidance for the year by at least 11% [1] Group 2 - Zhongtai Securities reported that WuXi AppTec and Boteng Co. released mid-year performance forecasts, with WuXi AppTec's adjusted net profit for the first half of 2025 expected to be approximately 6.31 billion yuan, reflecting a 44% year-on-year increase [2] - The CRO and CDMO sectors are anticipated to gradually recover due to multiple factors, including the onset of overseas interest rate cuts in Q4 2024, improved pessimistic expectations from geopolitical negotiations in Q2 2025, and the implementation of major domestic innovative drug projects and policies since 2025 [2] - The combination of recovering demand and a supply-side clean-up over the past three years is expected to lead to a "Davis Double Play" in profitability and valuation for the sector, suggesting significant investment opportunities [2]

Group 1 - The CXO sector is experiencing a strong rebound, with notable gains in companies such as Zhaoyan New Drug (up over 8%) and Kanglong Chemical (up over 6%) [1][3] - A-share's largest medical ETF (512170) reached a nearly 4-month high, with trading volume exceeding 400 million yuan within the first 30 minutes of trading [1] - Several leading CXO companies have reported positive mid-year earnings forecasts, with Zhaoyan New Drug expecting a net profit increase of up to 144% and WuXi AppTec also projecting over 100% growth [3][4] Group 2 - Institutional interest in the healthcare sector remains high, particularly in pharmaceutical and biotechnology industries, with a focus on CXO services and humanoid robotics [4] - China International Capital Corporation (CICC) highlights the improved financing environment for innovative drugs, positively impacting orders for domestic CROs and upstream research services [5] - CICC recommends focusing on CXO and medical devices, as well as the largest medical ETF (512170) and the first domestic drug ETF (562050), which targets leading pharmaceutical companies [5]

Investment Rating - The report initiates coverage with a "Strong Buy" investment rating for the company [1]. Core Insights - The company, Zhaoyan New Drug, is positioned as a leader in the domestic CRO industry, particularly in safety evaluation, with comprehensive GLP qualifications and strategic resources in experimental monkeys. The company is expected to benefit from rising prices of experimental monkeys due to supply constraints and strong demand [1][8]. - The report highlights the mismatch between supply and demand for experimental monkeys, which is driving a price recovery trend. The aging population of breeding monkeys and the long breeding cycle are significant factors affecting supply [2][8]. - The company is expanding its offshore outsourcing business, which is anticipated to create a new growth engine, alongside the recovery of domestic demand [8][42]. Financial Data and Valuation - The projected financial performance shows total revenue decreasing from 2,377 million in 2023 to 1,977 million in 2025E, with a subsequent recovery to 2,468 million by 2027E. The net profit is expected to rebound significantly from 74 million in 2024 to 352 million in 2025E [3][4]. - The company’s PE ratio is projected to be 39.8 in 2025E, decreasing to 24.4 by 2027E, indicating an improving valuation as earnings recover [3][4]. Supply and Demand Dynamics - The supply of experimental monkeys is constrained due to an aging population and a long breeding cycle, with over 80% of breeding females being over 8 years old as of 2023. This has led to a significant decline in breeding rates [8][19]. - Demand for experimental monkeys is expected to improve, particularly for biopharmaceutical research, as over 70% of large molecule drugs require monkeys for preclinical trials [26][28]. Strategic Initiatives - The company has made strategic acquisitions, including monkey breeding facilities, to enhance its supply chain and reduce costs, thereby increasing profitability [8][60]. - The offshore outsourcing strategy is showing positive results, with higher gross margins from overseas orders, which is expected to enhance overall profitability [52][54]. Management and Governance - The management team has extensive experience in drug safety evaluation and a solid governance structure, with key figures holding significant shares in the company [36][40].

Group 1 - The A-share CRO (Contract Research Organization) sector experienced a significant rally in the afternoon, with notable stocks such as Chengdu Xian Dao hitting the daily limit up [1] - MediXy and Hite Bio both surged over 14%, indicating strong investor interest and market momentum [1] - Other companies in the sector, including Zhaoyan New Drug, Yinuosi, Sunshine Nuohe, Kanglong Huacheng, and Puris, also saw positive gains, reflecting a broader trend in the CRO market [1]

Core Viewpoint - The CSI 1000 Healthcare Index has shown significant growth, with a 4.34% increase over the past month, 12.39% over the last three months, and 16.26% year-to-date [1] Group 1: Index Performance - The CSI 1000 Healthcare Index is currently at 12,486.30 points [1] - The index is based on a sample of liquid and representative securities from each industry, providing diverse investment options [1] Group 2: Index Holdings - The top ten weighted stocks in the CSI 1000 Healthcare Index include: - Zai Lab (3.14%) - Tonghua Golden Horse (3.02%) - Borui Pharmaceutical (2.67%) - Zuoli Pharmaceutical (1.69%) - Rongchang Biologics (1.59%) - Zhaoyan New Drug (1.47%) - Yipinhong (1.44%) - Anke Biologics (1.42%) - Zhongsheng Pharmaceutical (1.42%) - Yifan Pharmaceutical (1.38%) [1] - The index's market distribution shows that the Shanghai Stock Exchange accounts for 55.72%, while the Shenzhen Stock Exchange accounts for 44.28% [1] Group 3: Industry Composition - The industry composition of the CSI 1000 Healthcare Index is as follows: - Chemical drugs: 35.86% - Medical devices: 19.60% - Traditional Chinese medicine: 17.00% - Biological drugs: 14.32% - Medical commerce and services: 7.53% - Pharmaceutical and biotechnology services: 5.69% [2] - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [2]

Core Viewpoint - The company is expected to achieve a turnaround in net profit for the first half of 2025, despite a decline in revenue compared to the previous year [2][4]. Financial Performance Summary - The estimated operating revenue for the period from January to June 2025 is approximately RMB 635.15 million to RMB 702.00 million, representing a decrease of about RMB 147.35 million to RMB 214.21 million, or a year-on-year decline of approximately 17.3% to 25.2% [2][4]. - The estimated net profit attributable to shareholders for the same period is expected to be around RMB 50.32 million to RMB 75.49 million, indicating a return to profitability compared to a loss in the previous year [2][4]. - The estimated net profit attributable to shareholders after deducting non-recurring gains and losses is projected to be approximately RMB 18.83 million to RMB 28.25 million [2][4]. Previous Year Comparison - In the same period last year, the company reported operating revenue of RMB 849.36 million [10]. - The net profit attributable to shareholders was a loss of RMB 169.74 million, with a net loss of RMB 198.39 million after deducting non-recurring gains and losses [11]. - The previous year's net profit from laboratory services was a loss of RMB 15.24 million, while the loss from changes in the fair value of biological assets was RMB 235.36 million [11]. Performance Drivers - The decline in revenue is attributed to increased competition in the industry, which has compressed profit margins and led to a decrease in net profit from laboratory services [13]. - Positive contributions to performance are expected from the fair value changes of biological assets, which have not experienced significant market fluctuations during the reporting period [13].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） （股 份 代 號：6127） 2025年半年度業績預告 本公告乃由北京昭衍新藥研究中心股份有限公司（「本公司」）根據香港法例第 571章證券及期貨條例第XIVA部項下內幕消息條文（定 義 見 香 港 聯 合 交 易 所 有 限公司證券上市規則（「《香港上市規則》」）及《香 港 上 市 規 則》第13.09條 而 作 出。 一、 2025年上半年度業績預告情況 （一）業績預告期間 JOINN LABORATORIES (CHINA) CO., LTD. 北京昭衍新藥研究中心股份有限公司 – 2 – 3. 預 計2025年1-6月份實現歸屬於上市公司股東的扣除非經常性損 益的淨利潤約人民幣1,883.19萬元到人民幣2,824.79萬 元。其 中： 3.1 實驗室服務業務淨 ...

[Current Period Performance Forecast](index=1&type=section&id=%E4%B8%80%E3%80%81%E6%9C%AC%E6%9C%9F%E4%B8%9A%E7%BB%A9%E9%A2%84%E5%91%8A%E6%83%85%E5%86%B5) The company expects a 17.3% to 25.2% year-on-year decrease in H1 2025 operating revenue, but net profit attributable to shareholders will turn profitable, primarily due to fair value changes in biological assets offsetting losses from intensified industry competition in core laboratory services H1 2025 Performance Forecast vs. Prior Period | Metric (CNY) | H1 2025 (Estimated) | H1 2024 (Prior Period) | YoY Change | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 635 million - 702 million CNY | 849 million CNY | -25.2% to -17.3% | | **Net Profit Attributable to Shareholders** | 50.32 million - 75.49 million CNY | -169.74 million CNY | Turned Profitable | | **Non-recurring Net Profit Attributable to Shareholders** | 18.83 million - 28.25 million CNY | -198.39 million CNY | Turned Profitable | - The company's core laboratory services business is expected to incur a net loss, with fair value changes in biological assets and financial management income being the primary contributors to profitability this period[4](index=4&type=chunk)[5](index=5&type=chunk) H1 2025 Estimated Non-recurring Net Profit Breakdown | H1 2025 Non-recurring Net Profit Composition (Estimated) | Amount (CNY) | | :--- | :--- | | Net Profit from Laboratory Services | -77.47 million to -116.20 million CNY | | Contribution from Fair Value Changes in Biological Assets | 70.32 million to 105.47 million CNY | | Contribution from Financial Management Income | 25.99 million to 38.98 million CNY | [Prior Period Performance](index=2&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%8A%E5%B9%B4%E5%90%8C%E6%9C%9F%E4%B8%9A%E7%BB%A9%E6%83%85%E5%86%B5) In H1 2024, the company achieved operating revenue of **849.36 million CNY** and reported a net loss attributable to shareholders of **169.74 million CNY**, primarily due to a **235.36 million CNY** loss from fair value changes in biological assets, while core laboratory services incurred a relatively smaller loss H1 2024 Prior Period Performance | Metric (CNY) | H1 2024 | | :--- | :--- | | Operating Revenue | 849.36 million CNY | | Net Profit Attributable to Shareholders | -169.74 million CNY | | Non-recurring Net Profit Attributable to Shareholders | -198.39 million CNY | | Earnings Per Share | -0.23 CNY | - The non-recurring net loss in the prior period was primarily composed of: **net loss from laboratory services of 15.24 million CNY**, **net loss from fair value changes in biological assets of 235.36 million CNY**, and **net profit contribution from financial management income of 52.21 million CNY**[6](index=6&type=chunk) [Explanation of Performance Changes](index=2&type=section&id=%E4%B8%89%E3%80%81%E6%9C%AC%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%8F%98%E5%8A%A8%E5%8E%9F%E5%9B%A0%E8%AF%B4%E6%98%8E) The company attributes the performance change to intensified industry competition reducing main business revenue and gross margin, leading to losses, while stable biological asset prices and natural growth positively impacted fair value changes, reversing prior period losses - Intensified industry competition compressed profit margins on sales orders, leading to a decrease in operating revenue and gross margin, causing the laboratory services business to turn from profit to loss[7](index=7&type=chunk) - Unlike the significant decline in biological asset market prices in the prior year, the market price of the company's biological assets remained stable this reporting period, with fair value changes from natural growth positively impacting performance[7](index=7&type=chunk) [Risk Warning and Other Matters](index=2&type=section&id=%E5%9B%9B%E3%80%81%E9%A3%8E%E9%99%A9%E6%8F%90%E7%A4%BA) The company confirms no significant uncertainties affecting the accuracy of this performance forecast but reminds investors that the disclosed data is preliminary, with final financial figures subject to the official H1 2025 report - The company declares no significant uncertainties affecting the accuracy of this performance forecast[8](index=8&type=chunk) - The forecast data represents preliminary calculations, and final financial figures will be based on the company's officially disclosed H1 2025 semi-annual report[9](index=9&type=chunk)

Summary of Conference Call Records Industry Overview - The global pharmaceutical industry is facing a significant patent cliff, with approximately $180 billion in annual revenue drugs set to lose patent protection between 2027 and 2028, representing nearly 12% of the global market share [3][4][10] - The domestic innovation industry chain is experiencing an increase in orders, particularly among upstream companies such as Baipusais, Bidai Pharmaceutical, and Bai'ao Pharmaceutical [1][5] - The CRO (Contract Research Organization) sector is seeing growth in companies like Zhaoyan New Drug, Yinuosi, and Tigermed, while the CDMO (Contract Development and Manufacturing Organization) sector is highlighted by strong performances from WuXi AppTec, Boteng Co., Tianyu Co., and Pro Pharma [1][5] Key Insights and Arguments - The recovery in the CXO (Contract Research Organization and Contract Development and Manufacturing Organization) sector is driven by increased domestic demand and a resurgence in orders, which is expected to translate into clinical research opportunities within 6 to 12 months [11][12] - The trend of innovation drug out-licensing (BD) is becoming more pronounced, as large pharmaceutical companies seek to diversify their pipelines and manage costs amid pressures from legislation such as the IRA (Inflation Reduction Act) [4][7] - Domestic listed companies have shown an increasing trend in R&D expenses as a percentage of revenue since the second half of last year, indicating a more proactive approach to R&D investment in response to market changes [8][10] Financial Performance and Trends - In the CDMO sector, WuXi AppTec reported a 47% year-on-year increase in orders by the end of last year, while Boteng Co. saw a 30% increase [11][13] - For the first half of 2025, WuXi AppTec's revenue is expected to grow by 21%, with a 44% increase in NON-IFRS net profit, while Boteng Co. is projected to achieve profitability after a turnaround [13] - The structure of R&D expenses in Biotech companies has shifted, with a notable increase in clinical trial costs, reflecting a conservative investment strategy amid market uncertainties [9] Potential Investment Opportunities - Recommended companies in the domestic innovation industry include Yinuosi, Zhaoyan New Drug, and Tigermed, as well as leading CDMO firms like WuXi AppTec and Pro Pharma [16] - The recovery in the domestic innovation industry is expected to create further investment opportunities, particularly as IPOs are being opened up and more companies are preparing to list [14] Additional Considerations - The overall recovery of the innovation industry chain is segmented into phases, with the current transition from phase 1.0 to 2.0 indicating a shift towards increased early-stage project investments by financially robust companies [10] - The competitive landscape of the domestic innovation industry chain should be assessed comprehensively, including comparisons with Indian and other overseas companies to better understand competitive advantages [17]

港股医药股走强，药明康德涨9.52%、药明合联涨7.19%、昭衍新药涨6.78%、基石药业-B涨5.81%。 ...