Core Viewpoint - Enhertu (DS-8201) has evolved into a "complete entity" with the recent approval for first-line therapy in HER2+ breast cancer, marking significant progress from its initial approval as a third-line therapy in December 2019 to its current status [1][2] Group 1: Enhertu's Progression - Enhertu's journey includes approvals for HER2+ breast cancer in third-line therapy (December 2019), second-line therapy (January 2021), and now first-line therapy [2] - The first-line therapy approval is in combination with pertuzumab, with expectations for single-agent approval in the future [2] Group 2: Competitive Landscape - The HER2 ADC breast cancer market is approaching a critical phase, with companies like Rongchang Biopharma, Kelun-Biotech, and BaiLi Tianheng adopting various strategies to compete [3][6] - Rongchang Biopharma has focused on differentiated strategies, avoiding direct competition in breast cancer and targeting unmet clinical needs in other indications like gastric cancer [4][6] - Kelun-Biotech has actively pursued HER2+ breast cancer, achieving approval for its product A166 as the first domestic ADC for second-line therapy, leveraging a strategy of gradual advancement [7][9] Group 3: Strategic Approaches - BaiLi Tianheng aims to create a competitive product against Enhertu, with its T-Bren ADC targeting both HER2+ breast cancer and non-small cell lung cancer (NSCLC) [11][14] - HengRui Medicine adopts a multi-cancer strategy, focusing on various indications beyond breast cancer, with its SHR-A1811 ADC already approved for HER2-mutated NSCLC [16][17] Group 4: Differentiated Strategies - Lepu Biopharma's strategy centers on combining its ADC with PD-1 therapies, positioning its products as complementary rather than direct competitors [18][20] - In contrast, YingEn Biopharma has established a global strategy, securing a partnership with BioNTech for its DB-1303 ADC, focusing on unmet needs in endometrial cancer [22][24] Group 5: Future Outlook - The competitive landscape in the HER2 ADC market is intensifying, with companies employing diverse strategies to carve out their niches [26] - The future success in this sector may hinge on the depth of differentiated strategies and the ability to commercialize effectively, rather than solely on product efficacy [26]

Investment Rating - The report maintains a "Positive" investment rating for the pharmaceutical industry [4] Core Insights - The pharmaceutical index rose by 7.81% from January 5 to January 9, outperforming the CSI 300 index by 5.03%. The brain-machine interface and AI medical sectors are expected to remain active in Q1 2026, with a strong rebound in innovative drugs, particularly small nucleic acids [5][25] - The report highlights the potential for significant advancements in small nucleic acids in 2026, driven by breakthroughs in liver-targeted delivery technologies and a surge in clinical data readouts [8][22] - The report emphasizes the importance of selecting innovative drug stocks with strong fundamentals and suggests focusing on companies that have undergone sufficient adjustments [5][49] Summary by Sections Industry Performance - The pharmaceutical index saw 443 stocks rise and 25 fall during the week, with notable gainers including Innovative Medical (+61.04%) and Sanbo Brain Science (+56.15%). Conversely, Baohua Pharmaceutical saw a decline of -21.65% [5][26][27] Small Nucleic Acids - 2026 is projected to be a pivotal year for the small nucleic acid sector, with advancements in liver-targeted delivery technologies and a high frequency of clinical data readouts expected [8][22] - Arrowhead's delivery platform has shown promising results in clinical trials, validating the feasibility of RNAi therapies for obesity and other conditions [9][11] Investment Recommendations - The report suggests focusing on companies with leading platform capabilities and differentiated pipeline layouts, such as Rebio Biotech, Yuyuan Pharmaceutical, and Frontier Biotech [20][24] - It also recommends a diversified investment approach, including innovative drugs, brain-machine interfaces, and AI medical technologies [47][48] Market Trends - The report notes that the aging population and increasing healthcare demands are driving growth in the pharmaceutical sector, with a focus on chronic diseases and innovative medical technologies [47] - The report highlights the ongoing trend of domestic companies enhancing their capabilities in the global market, particularly in innovative drug development and medical devices [46][47] Key Companies to Watch - Recommended stocks include China National Pharmaceutical Group, Rebio Biotech, Shanghai Yizhong, and Yuyuan Medical [49]

Group 1: Overseas Social Services - The investment rating for the overseas social services sector is positive, with a focus on Macau's gaming revenue maintaining double-digit growth and record visitor numbers during New Year's [1][4]. - In December, Macau's gross gaming revenue reached 20.9 billion MOP, representing a year-on-year increase of 14.8%, and recovering to 91% compared to the same period in 2019. The total gross gaming revenue is expected to grow by 9.1% in 2025 [4]. - The total number of visitors to Macau in 2025 is projected to be 40.06 million, a year-on-year increase of 14.7%, marking a historical high. On New Year's Day 2026, the number of visitors reached 188,000, the highest ever for that day [4]. Group 2: Overseas Pharmaceuticals - The investment rating for the overseas pharmaceuticals sector is also positive, with significant developments in drug approvals and clinical trials [2][7]. - BeiGene's BCL2 inhibitor received conditional approval in China for treating chronic lymphocytic leukemia and mantle cell lymphoma, marking it as the first and only BCL2 inhibitor approved for MCL in the country [8][9]. - The Hang Seng Healthcare Index rose by 11.15%, outperforming the Hang Seng Index by 9.12 percentage points, indicating strong market performance [7]. Group 3: Overseas Education - The investment rating for the overseas education sector is favorable, with a focus on vocational education and training [3][14]. - The education index increased by 2.7%, outperforming the Hang Seng Index by 1.3 percentage points, indicating a positive market trend [14]. - The report suggests focusing on Hong Kong vocational education companies, particularly China Oriental Education, which is expected to see enrollment growth due to strategic adjustments in response to market demand [16].

Group 1 - The overall market sentiment for innovative drug overseas BD transactions has shifted from extreme optimism to a more rational understanding, leading to significant stock price declines for many small companies in the A-share and H-share markets [1] - The driving logic for the innovative drug industry in 2026 will rely on tangible overseas clinical advancements and increased certainty in overseas commercialization, moving away from transient BD transactions [1] - Major companies in the innovative drug sector, including industry leaders and quality second-tier companies, are beginning to stabilize and show upward trends in stock prices [1] Group 2 - Two significant oncology drugs, AK112 from Kangfang Biotech and SKB264 from Kelun-Biotech, are expected to have major impacts in their respective fields, with ongoing clinical trials and potential breakthroughs [3] - Kangfang Biotech's AK112 has seen a series of clinical advancements that have sparked global interest in second-generation IO development, leading to multiple impactful BD transactions [3] - SKB264 is positioned as a potential global first-in-class drug in the ADC category, with ongoing clinical trials and a significant focus on its efficacy in various cancers [5] Group 3 - Kangfang Biotech is expected to read out three major Phase III clinical results in 2026, including two first-line lung cancer trials, with potential approval timelines set for 2025 and 2027 [4] - Kelun-Biotech's SKB264 is anticipated to read out important clinical results for two major indications in 2026, which could validate its market potential outside of China [7] - The innovative drug industry is expected to see significant clinical progress from various companies that have engaged in substantial BD transactions in 2024-2025, enhancing the long-term value of their overseas projects [7][9]

Core Viewpoint - Kintor Pharmaceutical announced the termination of its subscription to a structured deposit agreement with Bank of China, amounting to RMB 980 million, effective January 7, 2026, without incurring any fees or penalties due to the termination occurring within the investment cooling-off period [1] Group 1 - The company subscribed to a structured deposit agreement with Bank of China for a principal amount of RMB 980 million [1] - The termination of the subscription was made after further consideration and adjustment of the company's financial management strategy [1] - The company will not have to pay any amount or incur any additional costs or penalties due to the termination [1]

Core Viewpoint - The company has announced the termination of its investment in a structured deposit agreement with Bank of China, amounting to RMB 980 million, which will not incur any costs or penalties due to the timing of the termination within the investment cooling-off period [1] Group 1 - The company subscribed to a structured deposit agreement with Bank of China for a principal amount of RMB 980 million [1] - The termination of the subscription was executed on January 7, 2026, after further consideration and adjustment of the company's financial strategy [1] - The termination does not require the company to pay any amount or incur any additional fees or penalties [1]

本 公 司 董 事（「董 事」）會（「董事會」）謹 此 宣 佈，本 公 司 已 於2026年1月7日 終 止 該 認 購。由 於 此 終 止 是 在 中 國 銀 行 結 構 性 存 款 協 議II規定的投資冷靜 期 內 執 行，本 公 司 無 需 就 該 認 購 支 付 任 何 款 項，且 不 會 因 本 次 終 止 而 產 生任何其他費用或罰款。終 止 該 認 購 乃 經 本 公 司 進 一 步 考 量 後，對 其 理 財 策 略 作 出 調 整 所 致。 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。 Sichuan Kelun-Biotech Biopharmaceutical Co., Ltd. 四川科倫博泰生物醫藥股份有限公司 （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） （股 份 代 號：6990） 終止須予披露交易 有 關 認購理財產品 ...

Group 1 - The company announced the signing of a structured deposit agreement with Bank of China on January 6, 2026, agreeing to subscribe to a structured deposit amounting to RMB 980 million [1] - The company also signed a structured deposit agreement with Bank of Communications on January 6, 2026, agreeing to subscribe to a structured deposit amounting to RMB 400 million [1]

Core Viewpoint - The company, Kelun-Biotech (06990.HK), has entered into structured deposit agreements with two banks, indicating a strategic move to manage its cash reserves effectively [1] Group 1: Structured Deposit Agreements - The company has agreed to subscribe to a structured deposit with Bank of China amounting to RMB 980 million [1] - Additionally, the company has entered into a structured deposit agreement with China Construction Bank for RMB 400 million [1]

Group 1 - Company Kelong Botai Biotech-B (06990) announced the signing of a structured deposit agreement with Bank of China on January 6, 2026, agreeing to subscribe to a structured deposit amounting to RMB 980 million [1] - On the same date, the company also entered into a structured deposit agreement with China Transportation Bank, agreeing to subscribe to a structured deposit of RMB 400 million [1]