Group 1 - The stock of Brain Dynamics Aurora-B (06681) surged over 14%, reaching HKD 8.5 with a trading volume of HKD 311 million [1] - The Minister of Industry and Information Technology emphasized the need to cultivate emerging industries and accelerate the development of new pillar industries, including human-machine interfaces and quantum information [1] - The National Medical Products Administration approved the first medical device standard for brain-machine interface technology, which will be implemented on January 1, 2026, laying a foundation for the high-quality development of the industry [1] Group 2 - Brain Dynamics' core product is a brain function information management platform, recognized as China's first regulatory-approved digital therapy for cognitive disorders [2] - The company combines brain science with artificial intelligence, offering unique technological advantages such as virtual human technology and AI [2] - The core product is included in the provincial medical insurance reimbursement list across 30 provinces in China, and the company has established cognitive centers in over 120 hospitals, including several certified as "National Medical Centers" [2]

Revenue and Financial Performance - Revenue increased from RMB 51.89 million for the six months ended June 30, 2024, to RMB 100.05 million for the six months ended June 30, 2025, representing a year-on-year growth of 92.81%[15] - The total loss and comprehensive expenses for the period amounted to RMB 126.88 million, an increase of 10.92% compared to RMB 114.39 million in the previous year[18] - The adjusted net loss for the period was RMB 88.02 million, reflecting an increase of 11.64% from RMB 78.84 million in the prior year[18] - Gross profit increased from RMB 24.52 million for the six months ended June 30, 2024, to RMB 40.85 million for the six months ended June 30, 2025, an increase of 66.60%[44] - Other income surged from RMB 0.58 million for the six months ended June 30, 2024, to RMB 7.28 million for the six months ended June 30, 2025, a growth of 1,155.17%[45] - The company reported a loss before tax of RMB 125,214,000, which is a 9.3% increase from RMB 114,389,000 in the prior year[141] - The company reported a net loss attributable to owners of RMB 126,365,000 for the six months ended June 30, 2025, compared to a loss of RMB 114,328,000 in 2024, indicating a decline of 10.6%[173] Research and Development - The company has completed the research and development phase and is about to enter the registration clinical trial phase for its cognitive digital therapy, with data collection expected to be completed by early 2026[12] - A total of 649 patients were included in the randomized controlled trial for cognitive digital therapy in patients with hypertension and coronary heart disease, with data analysis and report writing completed, aiming for medical device registration submission in 2026[12] - The company has developed a depression treatment software, with clinical trials planned to start in 2026[12] - The ADHD treatment study showed significant improvement in core symptoms, with attention deficit scores improving from 23.3% to 34.6% in the combined treatment group[13] - The company plans to submit applications for medical device registration for multiple products in 2026, indicating a strong pipeline for future growth[12] - The Depression Cognitive Quantitative Assessment software is expected to complete clinical trials by Q3 2025, with commercialization anticipated in 2026[32] - The company is in preclinical development for a Depression Treatment software, projected to start clinical trials in Q1 2026[33] Product Development and Market Expansion - The company launched the BrainAu Onebox M1, a smart medical model machine, in 2025, representing a significant advancement in digital health transformation[16] - The core product, the Brain Function Information Management Platform, is the first regulatory-approved digital therapy product for cognitive impairment in China[22] - As of the report date, the core product has been included in the medical insurance reimbursement catalog of 30 provinces in China[22] - The product pipeline includes eight indications for four major types of cognitive impairment that have been commercialized, with three additional products approved in China and one in the EU[20] - The Basic Cognitive Ability Test software (BCAT) received regulatory approval in October 2022 and is set for commercialization in 2025[27] - The Cognitive Ability Screening Assessment software (SAS) was approved in December 2022 and is also scheduled for commercialization in 2025[28] - The Reading Disability Screening Assessment software (DSS) received approval in September 2023 and is expected to be commercialized in 2025[29] - The company is conducting clinical trials for a Reading Disability Rehabilitation Training software, which includes modules for perception and language training[30] - The company plans to expand its international footprint and establish a global presence by developing cognitive impairment assessment and treatment software for the US and EU markets[34] Operational Metrics - The number of hospitals purchasing the system increased from 186 in 2024 to 205 for the six months ended June 30, 2025[41] - Patient usage of the system rose from approximately 1,800,000 times in 2024 to 2,595,554 times for the six months ended June 30, 2025[41] - The number of cognitive centers increased from 107 in 2024 to 138 for the six months ended June 30, 2025, leading to increased operational costs[43] Expenses and Financial Management - Sales and distribution expenses rose from RMB 25.38 million for the six months ended June 30, 2024, to RMB 30.45 million for the six months ended June 30, 2025, an increase of 19.98%[48] - Administrative expenses increased from RMB 281.4 million for the six months ended June 30, 2024, to RMB 460.1 million for the six months ended June 30, 2025, representing a 63.5% increase[49] - R&D expenses rose from RMB 642.3 million for the six months ended June 30, 2024, to RMB 681.5 million for the six months ended June 30, 2025, an increase of 6.1%[50] - Financial costs increased from RMB 109.0 million for the six months ended June 30, 2024, to RMB 119.8 million for the six months ended June 30, 2025, a rise of 9.82%[53] Assets and Liabilities - Current assets as of June 30, 2025, amounted to RMB 6,701.4 million, with cash and cash equivalents at RMB 2,879.2 million, an increase of 2.88% from RMB 2,798.6 million as of June 30, 2024[56] - The current liabilities as of June 30, 2025, totaled RMB 2,753.3 million, including bank and other borrowings of RMB 1,431.0 million[56] - The gross profit margin decreased to 40.8% for the six months ended June 30, 2025, down from 47.3% for the same period in 2024[60] - The current ratio improved to 2.4 as of June 30, 2025, compared to 0.7 as of June 30, 2024[60] - Unpaid borrowings as of June 30, 2025, were approximately RMB 1,431.0 million, significantly up from RMB 161.3 million as of June 30, 2024[57] Shareholder Information and Corporate Governance - The company holds a total of 1,266,278,000 issued shares as of June 30, 2025[86] - The company’s major shareholders include Mr. Tan with a total holding of 401,701,000 shares, representing approximately 31.72% of the total shares[86] - The company has a significant concentration of ownership, with the top shareholders holding over 31.72% collectively[91] - The company is subject to the Securities and Futures Ordinance, which governs the disclosure of interests and shareholdings[91] - The audit committee reviewed the interim financial performance and confirmed compliance with relevant accounting standards and regulations[75] - The company has adhered to all applicable corporate governance code provisions since its listing date[130] Risks and Challenges - The company faces significant risks related to the successful completion of clinical development and regulatory approvals, which could adversely impact its business and financial outlook[81] - Regulatory requirements are becoming increasingly stringent, potentially hindering the development and launch of new products[84] - The company has a risk of product obsolescence if it fails to develop and launch competitive new products in a timely manner[81]

Group 1 - Recent trading of Hong Kong stocks related to the "Inbound Concept" has seen significant declines, with Baize Medical (02609) down 19.16% to HKD 9.45, Brain Dynamics (06681) down 18.32% to HKD 8.56, and Yaojie Ankang-B (02617) down 12.62% to HKD 182.8 [1] - Yaojie Ankang announced in August that it would be included in several Hang Seng Index series components, effective from September 8, which includes nine indices such as the Hang Seng Composite Index and the Hang Seng Healthcare Index [1] - The inclusion of Yaojie Ankang in multiple indices has led to passive buying by ETFs tracking these indices, resulting in significant trading activity [1] Group 2 - On September 15, the Guozheng Hong Kong Stock Connect Innovative Drug Index underwent a quarterly adjustment, incorporating Yaojie Ankang as a constituent stock [1] - The largest Hong Kong Stock Connect Innovative Drug ETF purchased 3 million shares of Yaojie Ankang on September 15, amounting to approximately HKD 578 million, which represents about 2.62% of the fund's net asset value [1]

Group 1 - The core viewpoint of the article highlights the recent decline in the stock prices of companies related to the "Hong Kong Stock Connect" concept, particularly Baize Medical, Brainstorm Aurora, and PharmaJet, which saw significant drops of 19.16%, 18.32%, and 12.62% respectively [1] - PharmaJet was recently included in multiple Hang Seng Index series components, effective from September 8, which has led to passive buying by ETFs tracking these indices [1] - The stock price volatility of PharmaJet has affected related ETF products, prompting urgent communication between fund companies and index providers [1] Group 2 - On September 15, the Guozhen Hong Kong Stock Connect Innovative Drug Index underwent a quarterly adjustment, with PharmaJet being added as a constituent stock [1] - The largest Hong Kong Stock Connect Innovative Drug ETF purchased 3 million shares of PharmaJet on September 15, amounting to approximately 578 million HKD, which represents about 2.62% of the fund's net asset value [1]

Key Points - The top three stocks with net inflow of southbound funds are Alibaba-W (09988) with 5.278 billion, Yingfu Fund (02800) with 2.782 billion, and Hang Seng China Enterprises (02828) with 1.566 billion [1] - The top three stocks with net outflow of southbound funds are Xiaomi Group-W (01810) with -0.721 billion, Innovent Biologics (01801) with -0.466 billion, and Pop Mart (09992) with -0.458 billion [1] - In terms of net inflow ratio, Yuexiu Transportation Infrastructure (01052) leads with 63.76%, followed by Crystal International (02232) with 56.34%, and China Resources Gas (01193) with 53.63% [1] - The stocks with the highest net outflow ratio include QuanFeng Holdings (02285) at -59.36%, Yadea Group (01585) at -54.53%, and TCL Electronics (01070) at -54.28% [1] Net Inflow Rankings - The top ten stocks by net inflow include Alibaba-W (09988) with 5.278 billion, Yingfu Fund (02800) with 2.782 billion, and Hang Seng China Enterprises (02828) with 1.566 billion [2] - Other notable stocks in the net inflow list are Meituan-W (03690) with 0.670 billion and Southern Hang Seng Technology (03033) with 0.620 billion [2] Net Outflow Rankings - The top ten stocks by net outflow include Xiaomi Group-W (01810) with -0.721 billion, Innovent Biologics (01801) with -0.466 billion, and Pop Mart (09992) with -0.458 billion [2] - Other significant stocks in the net outflow list are Li Auto-W (02015) with -0.298 billion and China Construction Bank (00939) with -0.254 billion [2] Net Inflow Ratio Rankings - The top three stocks by net inflow ratio are Yuexiu Transportation Infrastructure (01052) at 63.76%, Crystal International (02232) at 56.34%, and China Resources Gas (01193) at 53.63% [3] - Additional stocks with high net inflow ratios include China Ship Leasing (03877) at 49.13% and Jiangsu Ninghu Expressway at 45.49% [3] Net Outflow Ratio Rankings - The stocks with the highest net outflow ratios include QuanFeng Holdings (02285) at -59.36%, Yadea Group (01585) at -54.53%, and TCL Electronics (01070) at -54.28% [3] - Other notable stocks with significant net outflow ratios are Kangji Medical (09997) at -53.77% and QiuTai Technology (01478) at -47.17% [3]

Core Viewpoint - The stock of Brainstorm Aurora-B (06681) experienced significant volatility, reaching a new high of 13.8 HKD before dropping over 14% in the afternoon, with a total trading range of 32% throughout the day [1] Group 1: Stock Performance - The stock had previously risen for four consecutive trading days, accumulating a total increase of 125% [1] - As of the latest report, the stock was down 14.84%, trading at 10.04 HKD, with a total transaction volume of 1.724 billion HKD [1] Group 2: Market Activity - Starting from September 8, Brainstorm Aurora was officially included in the Hong Kong Stock Connect list [1] - On September 9, the company attracted southbound capital for stock accumulation, with northbound investors holding 2.1124 million shares, representing 1.66% of total shares [1] Group 3: Company Overview - Brainstorm Aurora is the first domestic company to develop medical-grade digital therapy products targeting cognitive impairment [1] - Its core product is the first cognitive impairment digital therapy product in China to receive regulatory approval, with the first registration certificate obtained in September 2018 [1] Group 4: Financial Performance - In the first half of this year, the company reported revenue of 100 million RMB, reflecting a year-on-year increase of 92.82% [1] - The adjusted net loss for the same period was 88.022 million RMB, which is an increase of 11.64% year-on-year [1]

Group 1 - The stock of Brainstorm Cell Therapeutics (06681) reached a new high of 13.8 HKD since its listing, but later saw a decline of over 14%, with an overall trading range of 32% throughout the day [1] - The stock had previously increased for four consecutive trading days, resulting in a cumulative rise of 125% [1] - As of the report, the stock was down 14.84%, trading at 10.04 HKD, with a total transaction volume of 1.724 billion HKD [1] Group 2 - Starting from September 8, Brainstorm Cell Therapeutics was officially included in the Hong Kong Stock Connect list, attracting southbound capital for stock accumulation [1] - By September 12, northbound investors held 2.1124 million shares, accounting for 1.66% of the total shares [1] - The company is the first in China to develop a medical-grade digital therapy product targeting cognitive impairment, with its core product being the first in the country to receive regulatory approval (registered in September 2018) [1] Group 3 - In the first half of this year, the company reported revenue of 100 million HKD, representing a year-on-year increase of 92.82% [1] - The adjusted net loss for the same period was 88.022 million HKD, which is an increase of 11.64% year-on-year [1]

Core Insights - On September 16, 2025, Alibaba-W (09988), Brainstorm Aurora-B (06681), and Baize Medical (02609) were the top three stocks by trading volume in the Southbound Stock Connect, with trading amounts of 57.96 billion, 55.71 billion, and 48.83 billion respectively [1] - In the Shenzhen-Hong Kong Stock Connect, Alibaba-W (09988), Xiaomi Group-W (01810), and PharmaJet-B (02617) led the trading volume, with amounts of 31.74 billion, 18.85 billion, and 18.82 billion respectively [1] Southbound Stock Connect - Top Active Companies - Alibaba-W (09988) had a trading amount of 57.96 billion with a net buying amount of +18.98 billion [2] - Brainstorm Aurora-B (06681) recorded a trading amount of 55.71 billion with a net buying amount of +98.28 million [2] - Baize Medical (02609) achieved a trading amount of 48.83 billion with a net buying amount of +2.17 billion [2] - Meituan-W (03690) had a trading amount of 32.61 billion with a net buying amount of +2.65 billion [2] - The Yingfu Fund (02800) had a trading amount of 31.85 billion with a net selling amount of -31.70 billion [2] Shenzhen-Hong Kong Stock Connect - Top Active Companies - Alibaba-W (09988) had a trading amount of 31.74 billion with a net buying amount of +11.33 billion [2] - Xiaomi Group-W (01810) recorded a trading amount of 18.85 billion with a net selling amount of -3.48 billion [2] - PharmaJet-B (02617) achieved a trading amount of 18.82 billion with a net selling amount of -4.50 billion [2] - Brainstorm Aurora-B (06681) had a trading amount of 18.22 billion with a net buying amount of +26.73 million [2] - Meituan-W (03690) had a trading amount of 18.15 billion with a net buying amount of +4.51 billion [2]

Core Viewpoint - The Hong Kong stock market experienced significant net selling from northbound capital, totaling HKD 31.89 billion on September 16, with the majority coming from the Shanghai-Hong Kong Stock Connect [1] Group 1: Northbound Capital Flow - Northbound capital had a net selling of HKD 29.76 billion through the Shanghai Stock Connect and HKD 2.13 billion through the Shenzhen Stock Connect [1] - The stocks with the highest net buying included Alibaba-W (09988), Meituan-W (03690), and Baize Medical (02609) [1] - The stocks with the highest net selling included the Tracker Fund of Hong Kong (02800), Xiaomi Group-W (01810), and SMIC (00981) [1] Group 2: Individual Stock Performance - Alibaba-W (09988) saw a net inflow of HKD 30.31 billion, supported by recent announcements related to its mapping service and AI developments [4] - Meituan-W (03690) recorded a net inflow of HKD 7.15 billion, bolstered by the successful launch of its international delivery brand Keeta in Kuwait [5] - Baize Medical (02609) and Tongyuan Kang Medical-B (02410) received net inflows of HKD 3.27 billion and HKD 2.96 billion, respectively, following regulatory changes that enhance the clinical trial approval process for innovative drugs [5] Group 3: Notable Net Selling - The Tracker Fund of Hong Kong (02800) faced a significant net outflow of HKD 46.38 billion, with analysts suggesting that while short-term interest rates may benefit the Hong Kong market, the overall outlook remains cautious due to weakening fundamentals [7] - Xiaomi Group-W (01810), SMIC (00981), and Tencent (00700) experienced net outflows of HKD 5.69 billion, HKD 4.12 billion, and HKD 3.86 billion, respectively [8]

Core Viewpoint - On September 15, the Hang Seng Index rose by 0.22%, closing at 26,446.56 points, with a net inflow of 14.473 billion HKD through the southbound trading channel [1] Group 1: Market Activity - The total trading amount for the southbound trading on September 15 was 156.251 billion HKD, with a net buying amount of 14.473 billion HKD [1] - The Shanghai Stock Exchange's southbound trading accounted for 95.161 billion HKD, with a net buying of 6.968 billion HKD, while the Shenzhen Stock Exchange's southbound trading amounted to 61.089 billion HKD, with a net buying of 7.505 billion HKD [1] Group 2: Active Stocks - Alibaba-W was the most actively traded stock on the Shanghai Stock Exchange southbound trading, with a trading amount of 7.960 billion HKD and a net buying of 2.890 billion HKD, closing with a price increase of 2.32% [2] - In the Shenzhen Stock Exchange southbound trading, Alibaba-W also led with a trading amount of 5.047 billion HKD and a net buying of 2.395 billion HKD, maintaining the same closing price increase of 2.32% [2] - The stock with the highest net selling was Xiaomi Group-W, with a net selling amount of 724 million HKD, while its closing price increased by 1.90% [1][2]