Core Insights - 康方生物 reported a 37.8% year-on-year revenue growth in the first half of 2025, reaching 1.41 billion yuan, with a net loss attributable to shareholders of 570 million yuan, aligning with expectations [1] - The company's product net revenue increased by 49.2% to 1.40 billion yuan, primarily driven by the sales growth of 卡度尼利 and 依沃西纳 after their inclusion in medical insurance [1] - R&D expenses rose by 23.0% to 731 million yuan, while sales expenses increased by 29.8% to 670 million yuan [1] - As of June 30, 2025, the company's cash reserves were approximately 7.14 billion yuan [1] Product Development - The clinical trial for AK112 achieved the overall survival (OS) endpoint, showing statistically and clinically significant OS benefits for patients with EGFR mutation non-squamous NSCLC after progression on EGFR-TKI treatment [2] - AK112 has been approved for one indication and is under review for another, with detailed data expected to be presented at international academic conferences in the second half of 2025 [2] - AK112 is involved in around 30 clinical trials across various indications, including 13 Phase III trials and 6 head-to-head studies, with 4 Phase III trials already yielding positive results [2] - 卡度尼利 (AK104) is undergoing clinical development with three approved indications, including 2L+ CC, 1L CC, and 1L GC, with 2L+ CC included in medical insurance [2] Non-Oncology Pipeline Expansion - The company has received approval for two non-oncology products, including 伊努西单抗 (PCSK9) and 依若奇单抗 (IL-12/IL-23), with additional products under review [3] - The company is accelerating the development of ADC pipelines, with AK138D1 (HER3 ADC) and AK146D1 (Trop2/Nectin4 ADC) currently in global Phase I clinical trials [3] - The earnings per share forecast for 2025 has been adjusted from 0.02 yuan to -0.97 yuan, with subsequent years also revised downwards, while the target price has been raised from 87 HKD to 189 HKD, indicating a 21% upside potential [3]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 康方生物科技（開曼）有限公司 呈交日期: 2025年9月3日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 09926 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | USD | | 0.00001 | USD | | 50,000 | | 增加 / 減少 (-) | | | | | | | USD | | | | 本月底結存 | | | 5,000,000,000 | USD | | 0.00001 | USD | | 50,000 | 本月底法定/註冊 ...

Core Insights - On September 2, 2025, Alibaba-W (09988), Xiaomi Group-W (01810), and SMIC (00981) were the top three companies by trading volume in the southbound trading of the Stock Connect, with trading amounts of 86.47 billion, 60.46 billion, and 59.59 billion respectively [1] - In the southbound trading of the Shenzhen-Hong Kong Stock Connect, SMIC (00981), Alibaba-W (09988), and Xiaomi Group-W (01810) also ranked as the top three, with trading amounts of 48.12 billion, 45.52 billion, and 34.29 billion respectively [1] Southbound Trading Highlights - **Top Active Companies in Southbound Trading (Hong Kong Stock Connect)** - Alibaba-W (09988): Trading amount of 86.47 billion, net buying of +20.88 billion [2] - Xiaomi Group-W (01810): Trading amount of 60.46 billion, net selling of -5.92 billion [2] - SMIC (00981): Trading amount of 59.59 billion, net buying of +4.18 billion [2] - **Top Active Companies in Southbound Trading (Shenzhen-Hong Kong Stock Connect)** - SMIC (00981): Trading amount of 48.12 billion, net selling of -14.55 billion [2] - Alibaba-W (09988): Trading amount of 45.52 billion, net buying of +13.55 billion [2] - Xiaomi Group-W (01810): Trading amount of 34.29 billion, net buying of +1.81 billion [2]

Investment Rating - The report maintains a "Buy" rating for the company [2][16][28] Core Insights - The company reported a 37.8% year-on-year revenue growth in the first half of 2025, reaching RMB 1.41 billion, with net losses of RMB 570 million, aligning with expectations [5][12] - Key product sales, particularly cadonilimab and ivonescimab, have ramped up significantly following their inclusion in the National Reimbursement Drug List (NRDL) [5][12] - The company has a strong cash reserve of approximately RMB 7.14 billion as of June 2025 [5][12] Financial Data and Profit Forecast - Revenue projections for 2025E are set at RMB 3.15 billion, with a year-on-year growth rate of 48.38% [10] - The forecast for net profit attributable to shareholders for 2025E is a loss of RMB 870 million, with subsequent years showing a recovery to RMB 1.57 billion by 2027E [10] - Earnings per share (EPS) estimates have been adjusted downwards for 2025E to -RMB 0.97, with a gradual recovery expected in the following years [10][16] Clinical Development and Pipeline Expansion - The AK112 clinical trial has achieved significant overall survival (OS) benefits, with multiple indications under development, including NSCLC [6][13] - Cadonilimab (AK104) is undergoing extensive clinical trials for various indications, with three already approved by the NMPA [7][14] - The company is expanding its non-oncology pipeline, with new products and ongoing clinical trials for several indications [8][15] Target Price Adjustment - The target price has been raised from HK$ 87 to HK$ 189, indicating a potential upside of 21% [16]

Key Points - The top three companies with net inflow of southbound funds are SMIC (8.86 billion), Kangfang Biotech (6.32 billion), and Huahong Semiconductor (4.63 billion) [1] - The top three companies with net outflow of southbound funds are the Tracker Fund of Hong Kong (-11.887 billion), Hang Seng China Enterprises (-5.878 billion), and Southern Hang Seng Technology (-1.359 billion) [1] - In terms of net inflow ratio, China Overseas Macro Group (61.54%), Hopson Development Holdings (54.61%), and Hong Kong and China Gas (53.29%) lead the market [1] - The companies with the highest net outflow ratio are Jinke Services (-85.01%), BOC Aviation (-63.04%), and Ansteel (-57.57%) [1] Net Inflow Rankings - SMIC (00981) had a net inflow of 8.86 billion with a 4.46% increase in closing price to 62.300 [2] - Kangfang Biotech (09926) saw a net inflow of 6.32 billion but a decrease of 3.06% in closing price to 152.200 [2] - Huahong Semiconductor (01347) recorded a net inflow of 4.63 billion with an 8.44% increase in closing price to 57.200 [2] Net Outflow Rankings - The Tracker Fund of Hong Kong (02800) experienced the largest net outflow of -11.887 billion with a closing price of 25.500, down 0.78% [2] - Hang Seng China Enterprises (02828) had a net outflow of -5.878 billion and closed at 91.240, down 1.15% [2] - Southern Hang Seng Technology (03033) saw a net outflow of -1.359 billion with a closing price of 5.545, down 0.89% [2] Net Inflow Ratio Rankings - China Overseas Macro Group had a net inflow ratio of 61.54% with a net inflow of 13.6562 million and a closing price of 2.210, up 0.45% [3] - Hopson Development Holdings achieved a net inflow ratio of 54.61% with a net inflow of 6.3567 million and a closing price of 3.710, down 1.07% [3] - Hong Kong and China Gas recorded a net inflow ratio of 53.29% with a net inflow of 19.6320 million and a closing price of 4.040, down 0.49% [3] Net Outflow Ratio Rankings - Jinke Services had the highest net outflow ratio of -85.01% with a net outflow of -12.5979 million and a closing price of 6.450, up 1.10% [3] - BOC Aviation recorded a net outflow ratio of -63.04% with a net outflow of -82.3925 million and a closing price of 68.750, down 2.27% [3] - Ansteel had a net outflow ratio of -57.57% with a net outflow of -25.7369 million and a closing price of 2.110, down 1.86% [3]

Group 1 - The Hong Kong Innovative Drug ETF (159567) closed with a gain of 2.67% on September 1, with a trading volume of 1.985 billion yuan [1] - The fund was established on January 3, 2024, with a management fee of 0.50% and a custody fee of 0.10% [1] - As of August 29, 2024, the fund's latest share count was 6.686 billion, with a total size of 6.403 billion yuan, reflecting a year-to-date increase of 1591.03% in shares and 1594.74% in size compared to the end of 2023 [1] Group 2 - The current fund manager is Ma Jun, who has managed the fund since its inception, achieving a return of 91.54% during the tenure [2] - The top holdings of the fund include companies such as Innovent Biologics, WuXi Biologics, BeiGene, and others, with significant weightings in the portfolio [2] - The fund's liquidity is strong, with a cumulative trading amount of 34.181 billion yuan over the last 20 trading days, averaging 1.709 billion yuan per day [1]

Core Viewpoint - The report from Credit Lyonnais raises the target price for Kangfang Biotech (09926) from HKD 112.6 to HKD 177, maintaining an outperform rating, indicating strong confidence in the company's future performance [1] Sales and Profit Forecast - The company is expected to achieve a year-on-year sales growth of 33.7% in the first half of 2025, which aligns with market expectations [1] - Sales forecasts for Kangfang Biotech for 2025 to 2027 have been adjusted upwards by 1.2%, 5.1%, and 18.9% respectively [1] - Net profit forecasts for the fiscal years 2026 and 2027 have been increased by 10.9% and 35% respectively [1] Clinical Trial Results - The analysis results for AK112's overall survival (OS) are statistically significant and clinically meaningful, providing positive insights for the overseas HARMONi trial [1]

Core Viewpoint - The report from Credit Lyonnais indicates a target price increase for Kangfang Biotech (09926) from HKD 112.6 to HKD 177, maintaining an outperform rating [1] Sales Forecast - The company is expected to achieve a year-on-year sales growth of 33.7% in the first half of 2025, which aligns with market expectations [1] - Sales forecasts for Kangfang Biotech for 2025 to 2027 have been revised upward by 1.2%, 5.1%, and 18.9% respectively [1] Profit Forecast - Net profit estimates for the fiscal years 2026 and 2027 have been increased by 10.9% and 35% respectively [1] Clinical Results - The overall survival (OS) analysis results for AK112 are statistically significant and clinically meaningful, providing positive reference for the overseas HARMONi trial [1]

Group 1 - The Hong Kong pharmaceutical sector experienced a significant rise, with the Hang Seng Biotechnology Index closing up over 5%, driven by favorable policies and strong performance in earnings [1] - The National Healthcare Security Administration announced the adjustment list for the 2025 medical insurance and commercial insurance innovative drug directory, which includes several heavyweight innovative drugs, enhancing market access expectations [1] - Several pharmaceutical companies reported robust performance in the first half of the year, such as BeiGene with a 46% year-on-year revenue growth and achieving half-year profitability for the first time, and Heng Rui Medicine reaching record highs in revenue and profit, improving the sector's attractiveness [1] Group 2 - The international collaboration and overseas expansion of innovative drugs have become significant catalysts, with Chinese pharmaceutical companies completing 83 license-out transactions totaling over $84.5 billion, setting a historical record [1] - The partnership between 3SBio and Pfizer, valued at $6.05 billion for dual antibody licensing, highlights global market recognition of domestic innovative drugs [1] - Hong Kong has recently introduced simplified registration policies that recognize mainland review data, facilitating internationalization for innovative drug companies and further expanding industry growth potential [3] Group 3 - The upcoming global academic conferences, such as the World Lung Cancer Conference in September and the European Society for Medical Oncology Annual Meeting in October, will see multiple companies showcasing core clinical data, which may serve as short-term stock price catalysts [3] - Institutions believe that the long-term logic of the innovative drug sector remains unchanged, and the expectation of interest rate cuts by the Federal Reserve is strengthening liquidity, leading to continued capital allocation towards leading Hong Kong pharmaceutical stocks [4]

Group 1 - Pharmaceutical stocks in Hong Kong have shown strong performance, with notable gains in companies such as 加科思-B (up 23.18%), 三叶草生物-B (up 22.09%), and others [1] - The overall performance of Hong Kong pharmaceutical companies in the first half of the year has been robust, with 恒瑞医药 achieving record high revenue and profit, and 翰森制药 exceeding revenue expectations [1] - Upcoming major conferences, including the World Lung Cancer Conference (WCLC) and the European Society for Medical Oncology (ESMO), will showcase research results from innovative domestic drugs [1] Group 2 - 海通国际 maintains a positive outlook on Hong Kong pharmaceutical companies due to their stable cash flow, rich R&D pipelines, and normalizing external licensing revenues [2] - The recent slight pullback in the Hong Kong pharmaceutical sector is attributed to rapid fund rotation, with expectations of short-term fluctuations [2] - The long-term value reassessment logic in the pharmaceutical industry remains unchanged, supported by the engineer dividend and a rich catalyst environment in the innovative drug industry [2]