Core Viewpoint - The company reported significant growth in revenue and net profit for the first half of 2025, indicating strong performance and successful market expansion efforts [1][2]. Financial Performance - The company achieved a revenue of 700 million yuan and a net profit of 80.34 million yuan, representing a year-on-year increase of 576.45% [1]. Research and Development - The company has made notable advancements in R&D, receiving clinical trial approvals for multiple products, including GB18 injection and interferon α1b inhalation solution [1]. - Ongoing clinical trials include Phase I for long-acting growth hormone and Phase III for polyethylene glycol-conjugated granulocyte colony-stimulating factor injection and interferon α1b inhalation solution [1]. Market Expansion - The company is accelerating its overseas market expansion, with its albumin-bound paclitaxel showing a 35.84% quarter-on-quarter revenue increase in the EU market [1]. - Approximately 60 registration applications have been accepted in about 40 countries, with approvals in emerging markets like Indonesia and Peru [1]. Product Portfolio - The company has introduced significant products such as trastuzumab and abicipar injection solution, totaling 19 products with overseas commercialization rights [2]. - The strategy includes extending from emerging markets to regulated markets and upgrading from biosimilars to innovative drugs [2]. Domestic Market Strategy - The company is enhancing regional management and expanding e-commerce channels, with a 90% year-on-year increase in e-commerce revenue [2]. - The production capacity is also ramping up with the launch of the pre-filled production line [2]. Industry Outlook - The pharmaceutical industry is transitioning towards innovation-driven growth, supported by policy and technological advancements [2]. - The company aims to strengthen its core business while focusing on market expansion and management improvement to enhance profitability [2].

Core Insights - The fifth Shenzhen Biopharmaceutical Innovation Conference was successfully held, focusing on innovation and international development in the biopharmaceutical industry, aiming to promote high-quality integration and global cooperation in the Guangdong-Hong Kong-Macao Greater Bay Area [1] Group 1: Conference Overview - The conference adopted a dual-mode format of offline main venue and online live streaming, attracting nearly 3,500 participants, including industry experts, corporate representatives, and investors [1] - Keynote speeches and discussions centered around "new opportunities for biopharmaceutical innovation and going global," with significant participation from various stakeholders in the industry [1][2] Group 2: Key Themes and Discussions - The conference theme was "Leading Innovation Change, Insight into Transformation Pathways," focusing on the commercialization of innovative drugs and the dual circulation of internal and external markets [2] - The global pharmaceutical market is projected to reach $19 trillion by 2027, with oncology, autoimmune, and metabolic fields being the main growth drivers [2][3] - Challenges for companies going global include geopolitical issues, registration barriers, and commercialization difficulties, necessitating capabilities in market insight, efficient registration, channel coverage, academic support, and risk management [3] Group 3: Collaborative Efforts and Future Directions - The conference emphasized the need for collaboration among industry, academia, research, medicine, and investment sectors to build a globally competitive biopharmaceutical innovation ecosystem [2] - The discussions highlighted that the Chinese biopharmaceutical industry is at a critical stage of transitioning from "local innovation" to "global value," requiring technological innovation, capital support, policy backing, and international cooperation [3]

Core Viewpoint - The company, Sinovac Biotech (688136), is planning to issue overseas listed shares (H shares) and list on the Hong Kong Stock Exchange to enhance its international business development and brand image while optimizing its capital structure and diversifying financing channels [1]. Group 1 - The company aims to deepen its "innovation + internationalization" strategic layout [1]. - The initiative is intended to accelerate the development of overseas business and improve the company's overall competitiveness [1]. - The company is currently in discussions with relevant intermediaries regarding the specific progress of the H share listing, with details yet to be finalized [1].

格隆汇8月22日丨科兴制药(688136.SH)公布，公司为加快海外业务发展，进一步提高公司综合竞争力及 国际品牌形象，同时充分借助国际资本市场的资源与机制优势，优化资本结构，拓宽多元融资渠道，公 司正在筹划发行境外上市股份(H 股)并在香港联合交易所有限公司上市(以下简称"本次 H 股上市")。公 司正与相关中介机构就本次H股上市的具体推进工作进行商讨，相关细节尚未确定。 ...

证券代码：688136 证券简称：科兴制药 公告编号：2025-068 科兴生物制药股份有限公司 科兴生物制药股份有限公司董事会 2025 年 8 月 23 日 1 关于筹划公司在香港联合交易所有限公司上市的提示性公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 为深化科兴生物制药股份有限公司（以下简称"公司"）"创新+国际化" 的战略布局，加快海外业务发展，进一步提高公司综合竞争力及国际品牌形象， 同时充分借助国际资本市场的资源与机制优势，优化资本结构，拓宽多元融资渠 道，公司正在筹划发行境外上市股份（H 股）并在香港联合交易所有限公司上市 （以下简称"本次 H 股上市"）。公司正与相关中介机构就本次 H 股上市的具 体推进工作进行商讨，相关细节尚未确定。 根据《中华人民共和国公司法》《中华人民共和国证券法》《上海证券交易 所科创板股票上市规则》《境内企业境外发行证券和上市管理试行办法》等相关 规定，本次 H 股上市工作尚需提交公司董事会和股东大会审议，并需取得中国 证券监督管理委员会、香港联合交易所有限公司和香港证 ...

证券代码：688136 证券简称：科兴制药 公告编号：2025-067 科兴生物制药股份有限公司 2025 年半年度募集资金存放及实际使用情况的专项报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 根据《上市公司募集资金监管规则》《上海证券交易所科创板上市公司自律 监管指引第 1 号——规范运作》和《上海证券交易所科创板股票上市规则》等有 关规定，科兴生物制药股份有限公司（以下简称"本公司"或"公司"）董事会 对 2025 年半年度募集资金存放和实际使用情况专项报告说明如下： 一、募集资金基本情况 经中国证券监督管理委员会出具的《关于同意科兴生物制药股份有限公司首 次公开发行股票注册的批复》（证监许可[2020]2655 号）同意，公司首次公开发 行人民币普通股 4,967.5300 万股，每股面值人民币 1.00 元，每股发行价为人民 币 22.33 元，本次发行募集资金总额为 1,109,249,449.00 元，扣除保荐承销等发 行费用 114,608,529.84 元，募集资金净额为 994,640,919.1 ...

科兴生物制药股份有限公司（以下简称"公司"）为进一步提升公司经营质量 和盈利能力，助力信心提振、资本市场稳定和经济高质量发展，于 2025 年 4 月 9 日发布了《2025 年度"提质增效重回报"专项行动方案》（以下简称"行动方案"）。 2025 年上半年，公司充分遵循方案部署，围绕"提质、增效、重回报"三 大核心目标，不断强化科创属性，在加强创新能力、聚焦主业发展、提升盈利能 力、加强投资者回报、强化"关键少数"责任等方面积极开展并落实相关工作， 现将报告期内的实施和效果评估情况报告如下 一、聚焦做强公司主业，筑牢核心竞争力 报告期内，面对市场的不利环境和竞争压力以及各种不确定因素的影响，公 司着眼长远发展，坚定战略定力，紧紧围绕"狠抓商业化、坚定研发创新、积极 推进国际化"的年度工作主题，聚焦做精做强主业，外抓市场，内抓管理，不断 进行创新突破，实现盈利能力稳步提升。报告期内，公司实现营业收入 70,046.48 万元，实现归属于上市公司股东的净利润 8,034.45 万元，同比增长 576.45%。 科兴生物制药股份有限公司 关于 2025 年"提质增效重回报"专项行动方案 的半年度评估报告 （一）技 ...

证券代码：688136 证券简称：科兴制药 公告编号：2025-066 科兴生物制药股份有限公司 第二届监事会第二十五次会议决议公告 本公司监事会及全体监事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性依法承担法律责任。 一、监事会会议召开情况 科兴生物制药股份有限公司（以下简称"公司"）第二届监事会第二十五 次会议于 2025 年 8 月 22 日以现场表决的方式召开。会议通知已于 2025 年 8 月 18 日发出。本次会议应出席监事 3 人，实际出席监事 3 人。 会议由监事会主席江海燕主持。会议召开符合有关法律、法规、规章和《公 司章程》的规定。 二、监事会会议审议情况 （一）审议通过《关于公司 2025 年半年度报告及其摘要的议案》 公司监事会认为：公司严格按照各项法律、法规、规章的要求规范运作，公 司《2025 年半年度报告及其摘要》真实、公允地反映了公司 2025 半年度的财务 状况和经营成果。在作出本决议之前，未发现参与 2025 年半年度报告编制和审 议的人员存在违反保密规定的行为。因此，同意《公司 2025 年半年度报告》《公 司 2025 ...

Core Viewpoint - The company reported a decline in revenue for the first half of the year, while net profit saw a significant increase compared to the previous year [1] Financial Performance - The company achieved an operating income of 700 million yuan in the first half of the year, representing a year-on-year decrease of 7.82% [1] - The net profit attributable to shareholders was 80.34 million yuan, a substantial increase of 576.45% from 11.88 million yuan in the same period last year [1] - The basic earnings per share were reported at 0.41 yuan [1]

Section 1 Definitions [Definitions of Common Terms](index=4&type=section&id=Definitions%20of%20Common%20Terms) This chapter provides definitions of common terms used in the report, including company entity names, laws and regulations, and professional terms in the biomedical field, to aid reader comprehension - Defined company entity names such as **"Shenzhen Tong'an/Tong'an Pharmaceutical"** and **"Shenzhen Kexing/Kexing Pharmaceutical"**[10](index=10&type=chunk) - Explained biomedical professional terms like **"IND"**, **"preclinical research"**, and **"innovative drug"**[10](index=10&type=chunk) Section 2 Company Profile and Key Financial Indicators [I. Company Basic Information](index=5&type=section&id=I.%20Company%20Basic%20Information) This section outlines the basic information of Kexing Biopharmaceutical Co., Ltd., including its name, legal representative, registered and office addresses, website, and email - Company Chinese name: Kexing Biopharmaceutical Co., Ltd., abbreviation: **Kexing Pharma**[12](index=12&type=chunk) - Legal Representative: **Deng Xueqin**[12](index=12&type=chunk) - Company registered address: **No. 2666 Chuangye Road, Bucun Street, Zhangqiu District, Jinan City, Shandong Province**[12](index=12&type=chunk) [II. Contact Person and Information](index=5&type=section&id=II.%20Contact%20Person%20and%20Information) This section provides contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, phone numbers, fax, and email - Board Secretary: **Wang Xiaoqin**, contact number: **0755-86967773**[13](index=13&type=chunk) - Securities Affairs Representative: **Qiu Diwei**, contact address: **19th Floor, Chuangyi Technology Building, Intersection of Gaoxin Middle Road 1 and Keji Middle Road 1, Nanshan District, Shenzhen**[13](index=13&type=chunk) [III. Information Disclosure and Changes in Document Custody Location](index=5&type=section&id=III.%20Information%20Disclosure%20and%20Changes%20in%20Document%20Custody%20Location) This section introduces the company's designated newspapers for information disclosure, the website address for semi-annual reports, and the location for report custody - Information disclosure newspapers: **China Securities Journal, Shanghai Securities News, Securities Times, Securities Daily**[14](index=14&type=chunk) - Report publication website: **www.sse.com.cn**[14](index=14&type=chunk) [IV. Company Stock%2FDepositary Receipt Overview](index=5&type=section&id=IV.%20Company%20Stock%2FDepositary%20Receipt%20Overview) This section discloses the listing exchange and board, stock abbreviation, and code for the company's A-shares - Stock type: **A-shares**, listing exchange and board: **Shanghai Stock Exchange STAR Market**[16](index=16&type=chunk) - Stock abbreviation: **Kexing Pharma**, stock code: **688136**[16](index=16&type=chunk) [VI. Key Accounting Data and Financial Indicators](index=6&type=section&id=VI.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) This section summarizes the company's key accounting data and financial indicators for the reporting period, showing significant net profit growth, a slight decrease in operating revenue, and a notable improvement in net cash flow from operating activities 2025 Semi-Annual Key Accounting Data and Financial Indicators | Indicator | Current Reporting Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 700,464,766.25 CNY | 759,894,679.84 CNY | -7.82 | | Total Profit | 84,128,950.20 CNY | 41,979,606.35 CNY | 100.40 | | Net Profit Attributable to Shareholders of Listed Company | 80,344,468.24 CNY | 11,877,328.48 CNY | 576.45 | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | 45,279,121.97 CNY | 21,530,307.28 CNY | 110.30 | | Net Cash Flow from Operating Activities | 29,798,082.73 CNY | -34,029,158.20 CNY | 187.57 | | Basic Earnings Per Share (CNY/share) | 0.41 | 0.06 | 578.63 | | Diluted Earnings Per Share (CNY/share) | 0.40 | 0.06 | 579.83 | | R&D Investment as % of Operating Revenue (%) | 13.70 | 11.52 | 2.18 (percentage points increase) | - Net profit attributable to parent company shareholders increased by **576.45%** year-on-year, and non-recurring net profit attributable to parent company shareholders increased by **110.30%**, primarily due to R&D innovation and lean management, with significant growth in overseas revenue offsetting the impact of domestic centralized procurement[18](index=18&type=chunk) - Net cash flow from operating activities increased year-on-year, mainly due to **increased sales collections** and **reduced operating expenses** such as marketing[20](index=20&type=chunk) [VIII. Non-Recurring Gains and Losses Items and Amounts](index=7&type=section&id=VIII.%20Non-Recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) This section details the non-recurring gains and losses items and their amounts for the reporting period, totaling **35,065,346.27 CNY**, primarily including gains/losses from disposal of non-current assets, government grants, and fair value changes of financial assets 2025 Semi-Annual Non-Recurring Gains and Losses Items and Amounts | Non-Recurring Gains and Losses Item | Amount (CNY) | | :--- | :--- | | Gains/losses from disposal of non-current assets, including the write-back of impairment provisions | 15,046,090.71 | | Government grants recognized in current profit or loss, excluding those closely related to the company's normal operations, compliant with national policies, enjoyed at fixed standards, and having a continuous impact on the company's profit or loss | 2,102,724.29 | | Gains/losses from changes in fair value of financial assets and financial liabilities, and gains/losses from disposal of financial assets and financial liabilities, excluding effective hedge accounting related to normal business operations of non-financial enterprises | 23,734,788.41 | | Other non-operating income and expenses apart from the above | -1,969,432.68 | | Less: Income tax impact | 3,828,747.32 | | Minority interest impact (after tax) | 20,077.14 | | **Total** | **35,065,346.27** | - The change in non-recurring gains and losses was mainly due to the **disposal of a subsidiary** and **fair value changes of held private equity funds**[19](index=19&type=chunk) [IX. Net Profit Excluding Share-Based Payment Impact](index=8&type=section&id=IX.%20Net%20Profit%20Excluding%20Share-Based%20Payment%20Impact) This section discloses the net profit after deducting the impact of share-based payments, which was **79.35 million yuan** for the current period, representing a significant increase of **551.04%** compared to the prior year period Net Profit Excluding Share-Based Payment Impact | Indicator | Current Reporting Period (Jan-Jun) (million yuan) | Prior Year Period (million yuan) | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Net Profit Excluding Share-Based Payment Impact | 79.35 | 12.19 | 551.04 | [X. Explanation of Non-GAAP Performance Indicators](index=8&type=section&id=X.%20Explanation%20of%20Non-GAAP%20Performance%20Indicators) This section explains the calculation and rationale for the non-GAAP financial indicator "EBITDA before share-based payment," which significantly increased this period, reflecting improved core business profitability Non-GAAP Financial Indicator: EBITDA Before Share-Based Payment | Indicator | Current Period (million yuan) | Prior Period (million yuan) | | :--- | :--- | :--- | | Net Profit | 78.96 | 9.46 | | Adjustment Item: Interest Expense | 19.14 | 19.13 | | Adjustment Item: Depreciation and Amortization | 56.74 | 51.26 | | Adjustment Item: Share-Based Payment Expense | 6.66 | 3.11 | | Adjustment Item: Income Tax Expense | 5.17 | 32.52 | | **Non-GAAP Financial Indicator: EBITDA Before Share-Based Payment** | **166.67** | **115.47** | - This indicator **excludes the impact of capital structure differences, fixed asset depreciation policies, equity incentives, and tax rate fluctuations** on profit, better reflecting core business operations and profitability[24](index=24&type=chunk) - The increase in the current period was mainly due to a **decrease in selling expenses** and an **increase in investment income and fair value change gains**[24](index=24&type=chunk) Section 3 Management Discussion and Analysis [I. Industry and Main Business Overview](index=9&type=section&id=I.%20Industry%20and%20Main%20Business%20Overview) This section elaborates on the company's main business, operating model, industry position, and industry conditions as an innovative and international biopharmaceutical enterprise, emphasizing its "innovation + overseas commercialization" dual-driven strategy - Company's main business: **R&D, production, and sales integration of recombinant protein drugs and microecological preparations**, focusing on antiviral, oncology and immunology, hematology, digestion, and degenerative diseases[26](index=26&type=chunk) - The company has established a **nationwide marketing network covering approximately 8,000 hospitals** of various levels, and its overseas markets have gained access to **over 70 countries**, including the EU, Brazil, Egypt, the Philippines, and Indonesia[26](index=26&type=chunk) - During the reporting period, the company introduced overseas commercialization rights for blockbuster drugs such as **Trastuzumab, Aflibercept Ophthalmic Solution, Sitagliptin Phosphate Tablets, and Propofol Emulsion Injection**[26](index=26&type=chunk) - The company's products **"Sailejin®"** and **"Epodin"** both rank among the top in their respective domestic market segments[27](index=27&type=chunk) - The company has been recognized as a **"leading enterprise in China's recombinant protein drugs"** and **"China's most valuable commercialization platform for high-quality drug exports"**[33](index=33&type=chunk) - The pharmaceutical manufacturing industry as a whole shows a **stabilizing trend**, with increasing policy support for innovative drugs, and the biopharmaceutical industry is transforming towards **"precision and intelligence"**[35](index=35&type=chunk) - Chinese biopharmaceutical companies are increasingly adopting internationalization as a strategic choice to break through growth bottlenecks, with both developed and emerging overseas markets offering significant growth potential[35](index=35&type=chunk) [II. Discussion and Analysis of Operations](index=13&type=section&id=II.%20Discussion%20and%20Analysis%20of%20Operations) During the reporting period, the company focused on its strategy of "strengthening commercialization, firm R&D innovation, and actively promoting internationalization," achieving steady improvement in profitability and a **576.45% year-on-year increase in net profit attributable to parent company shareholders** through lean management and innovative breakthroughs - In the first half of the year, the company achieved **operating revenue of 700.46 million yuan** and **net profit attributable to shareholders of 80.34 million yuan**, a year-on-year increase of **576.45%**[36](index=36&type=chunk) - The company strengthened **AI-assisted drug design and structural optimization**, gradually forming a differentiated, multi-target, multi-domain pipeline matrix[38](index=38&type=chunk) - **GB18 project (GDF15 monoclonal antibody)** for cancer cachexia treatment has obtained IND approvals in China and the US, expected to achieve subcutaneous injection every 3-4 weeks, superior to competitors[40](index=40&type=chunk)[43](index=43&type=chunk) - **GB12 project (IL-4R/IL-31 bispecific nanobody)** for atopic dermatitis treatment features a dual-blockade mechanism, showing significant anti-inflammatory and anti-itch effects with huge market potential[43](index=43&type=chunk)[44](index=44&type=chunk) - **GB10 project (VEGF/ANG-2 bispecific antibody)** for ocular neovascularization diseases has achieved international competitor levels in biological activity and animal efficacy[44](index=44&type=chunk) - **GB20 (TL1A) and GB24 (TL1A/LIGHT) projects** for inflammatory bowel disease (IBD) offer dual anti-inflammatory and anti-fibrotic effects[47](index=47&type=chunk) - The value of the company's overseas commercialization platform is evident, with **Albumin-bound Paclitaxel continuing to grow in the EU**, and second-quarter revenue for Albumin-bound Paclitaxel increasing by **35.84% sequentially**[49](index=49&type=chunk) - The overseas commercialization platform now covers **over 40 countries**, with Recombinant Human Erythropoietin Injection becoming a leading EPO brand in countries like Brazil, the Philippines, Egypt, and Peru[49](index=49&type=chunk) - The domestic market deepened regional refined management,拓展电商平台等多元化渠道, with **e-commerce channel revenue growing by approximately 90%** year-on-year[52](index=52&type=chunk) - Prefilled syringe production line No. 2 was approved and officially put into operation, and the EPO bulk cell tank production line process validation was successfully completed, with the application of new processes expected to **reduce production costs**[53](index=53&type=chunk) - The company accelerated the introduction of high-end talent, focusing on strengthening international business layout and innovative drug R&D, achieving a **"localization" talent structure upgrade** in overseas teams[54](index=54&type=chunk) [III. Analysis of Core Competencies](index=17&type=section&id=III.%20Analysis%20of%20Core%20Competencies) The company's core competitiveness is reflected in its differentiated R&D advantages, global commercialization network, advanced industrialization platform, and rich product pipeline, which collectively support its innovative development and market position - The company possesses a **complete R&D system and team for innovative biological products**, focusing on antiviral, oncology, immunology, and degenerative diseases, building platforms for protein drugs, antibody drugs, delivery systems, microecological preparations R&D and industrialization, and fully utilizing AI and computer-aided drug design[56](index=56&type=chunk) - With **30 years of domestic and international commercialization experience**, the company's domestic marketing network covers approximately **8,000 hospitals**, and its overseas sales network covers **over 70 countries and regions**, establishing itself as China's most valuable overseas commercialization platform[58](index=58&type=chunk) - The company has formed industrialization platforms for **biomacromolecules, microecological preparations, and high-end complex formulations**, adhering to GMP and EU cGMP quality standards, with its Albumin-bound Paclitaxel production line having passed EU drug regulatory on-site inspection and obtained an EMP certificate[59](index=59&type=chunk) - The company boasts a **rich product pipeline** covering antiviral, digestive and autoimmune, anti-tumor, and metabolic diseases, with core products maintaining a leading position in domestic segmented markets, and nearly **20 introduced products successively approved for sale** in the EU and "Belt and Road" countries/regions[60](index=60&type=chunk)[61](index=61&type=chunk) [III. Core Technologies and R%26D Progress](index=19&type=section&id=III.%20Core%20Technologies%20and%20R%26D%20Progress) The company continues to invest in R&D innovation, building five major technology platforms and achieving multiple key technological breakthroughs and patent results during the reporting period, with a significant increase in the capitalization ratio of R&D investment - The company has built five major technology platforms: **recombinant protein drugs, antibody drugs, delivery system technology, microecological preparations R&D and industrialization, and carrier vaccines**[62](index=62&type=chunk) - The **GB19 project** completed the development of a high-concentration subcutaneous injection formulation and formed a complete set of generic high-concentration subcutaneous injection development technologies[62](index=62&type=chunk) - The **KX-FUSION protein drug core technology platform** has been successfully applied in the R&D processes of multiple projects, including GB05, GB08, long-acting GC, and GB14[63](index=63&type=chunk) - The **KX-BODY antibody drug technology platform** integrates AI technology and CADD intelligent technologies, successfully applied in the development of multiple antibody innovative drugs such as GB10, GB12, GB18, GB19, and GB20[64](index=64&type=chunk) - The **delivery system technology platform**, based on engineered exosome-mediated drug delivery, saw the GB13 project awarded a **"Shenzhen Major Science and Technology Project"**[65](index=65&type=chunk) - As of June 30, 2025, the company held **68 patents, including 47 invention patents**, with **2 new invention patents** obtained in the first half of the year[67](index=67&type=chunk) R&D Investment Overview | Indicator | Current Period (CNY) | Prior Year Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Expensed R&D Investment | 81,662,554.29 | 80,326,332.08 | 1.66 | | Capitalized R&D Investment | 14,311,836.15 | 7,209,802.40 | 98.51 | | Total R&D Investment | 95,974,390.44 | 87,536,134.48 | 9.64 | | Total R&D Investment as % of Operating Revenue (%) | 13.70 | 11.52 | 2.18 (percentage points increase) | | Capitalization Ratio of R&D Investment (%) | 14.91 | 8.24 | 6.67 (percentage points increase) | - The increase in the capitalization ratio of R&D investment was mainly due to the **Polyethylene Glycolated Recombinant Human Granulocyte Colony-Stimulating Factor Injection project** entering Phase III clinical trials in September 2024, leading to capitalization in accordance with policy[70](index=70&type=chunk) - R&D projects include **Recombinant Human Interferon α1b (Mutant) Inhalation Solution project (Phase III clinical)**, **Polyethylene Glycolated Recombinant Human Granulocyte Colony-Stimulating Factor Injection project (Phase III clinical)**, and **GB18 Injection (obtained IND approvals in China and the US)**[71](index=71&type=chunk) - The company has **150 R&D personnel**, accounting for **15.45% of the total workforce**, with **63.93% holding master's degrees or above**[73](index=73&type=chunk) [IV. Risk Factors](index=22&type=section&id=IV.%20Risk%20Factors) The company faces multiple risks related to the loss of core technical personnel, commercial secret leakage, material supply, R&D failure, drug quality control, lower-than-expected overseas commercialization, financial aspects, industry regulation, intensified industry competition, centralized procurement of biological drugs, and the macroeconomic environment - Core competitiveness risks: **loss of core technical personnel** and **leakage of commercial secrets and core technologies**[74](index=74&type=chunk) - Operational risks: **material supply** (reliance on overseas suppliers for key raw materials), **R&D failure** (deviations in technical routes, clinical trials not meeting expectations), **drug quality control**, and **lower-than-expected overseas commercialization** (cultural differences, laws and regulations, trade policies, etc.)[74](index=74&type=chunk)[75](index=75&type=chunk) - Financial risks: **working capital requirements** and **liquidity risks** that may arise from changes in macroeconomic policies and credit policies[75](index=75&type=chunk) - Industry risks: **industry regulation** (strict domestic and international licensing and certification), **intensified industry competition**, and **centralized procurement of biological drugs** (leading to lower sales prices and reduced gross margins)[76](index=76&type=chunk) - Macroeconomic environment risks: **uncertainties from national and global public health events**, **economic situations**, and **changes in international trade policies**[76](index=76&type=chunk) [V. Key Operating Performance](index=23&type=section&id=V.%20Key%20Operating%20Performance) During the reporting period, the company focused on its main business development, significantly improving overall operating quality, with both net profit attributable to parent company shareholders and net profit after deducting non-recurring gains and losses showing substantial growth - Net profit attributable to parent company shareholders increased by **576.45%** compared to the prior year period[77](index=77&type=chunk) - Net profit attributable to parent company shareholders after deducting non-recurring gains and losses increased by **110.30%** compared to the prior year period[77](index=77&type=chunk) [(1) Analysis of Main Business](index=23&type=section&id=%281%29%20Analysis%20of%20Main%20Business) Financial statement items show a slight year-on-year decrease in operating revenue, but total profit, net profit attributable to parent company shareholders, and net cash flow from operating activities all significantly increased, mainly due to lower selling expenses and higher investment income and fair value change gains Financial Statement Item Fluctuation Analysis | Item | Current Period (CNY) | Prior Year Period (CNY) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 700,464,766.25 | 759,894,679.84 | -7.82 | | Operating Cost | 255,257,060.07 | 217,468,332.38 | 17.38 | | Selling Expenses | 254,953,408.24 | 334,859,572.04 | -23.86 | | Administrative Expenses | 43,443,007.96 | 42,224,597.43 | 2.89 | | Financial Expenses | 11,978,703.31 | 19,108,050.27 | -37.31 | | R&D Expenses | 81,662,554.29 | 80,326,332.08 | 1.66 | | Net Cash Flow from Operating Activities | 29,798,082.73 | -34,029,158.20 | 187.57 | | Net Cash Flow from Investing Activities | -201,365,322.29 | -121,377,586.13 | -65.90 | | Net Cash Flow from Financing Activities | 63,815,621.61 | 32,833,329.68 | 94.36 | - The change in financial expenses was mainly due to the **appreciation of the Euro**, leading to an **increase in the company's exchange gains**[80](index=80&type=chunk) - The change in net cash flow from operating activities was mainly due to a **year-on-year increase in the company's sales collections** and a **year-on-year decrease in operating expenses** such as marketing[80](index=80&type=chunk) - The change in net cash flow from investing activities was mainly due to an **increase in wealth management products not yet matured** at the end of the period compared to the prior year period[80](index=80&type=chunk) - The change in net cash flow from financing activities was mainly due to an **increase in bank borrowings** and **equity subscription payments by incentive recipients** due to equity incentive vesting during the reporting period[80](index=80&type=chunk) [(3) Analysis of Assets and Liabilities](index=24&type=section&id=%283%29%20Analysis%20of%20Assets%20and%20Liabilities) At the end of the reporting period, the company's total assets and net assets attributable to shareholders both increased, with significant changes in financial assets held for trading, prepayments, other non-current financial assets, and development expenditures, while the liability structure remained stable Asset and Liability Status Changes | Item Name | Current Period End (CNY) | Prior Year End (CNY) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 173,177,119.18 | 0.00 | 100.00 | Mainly due to structural deposits and other wealth management products not yet matured | | Prepayments | 12,349,931.04 | 6,710,316.73 | 84.04 | Mainly due to increased prepayments for goods | | Other Current Assets | 8,369,377.25 | 5,008,058.85 | 67.12 | Increased VAT input tax credit at period-end | | Other Non-Current Financial Assets | 241,053,688.40 | 183,613,931.09 | 31.28 | Mainly due to (1) new acquisition of 1.4% equity in Zhejiang Haichang Biomedical Technology Co., Ltd. in current period; (2) increased fair value of held private equity fund shares in current period | | Construction in Progress | 113,226,474.79 | 176,819,849.44 | -35.97 | Prefilled syringe production line transferred to fixed assets in current period | | Development Expenditures | 45,191,202.34 | 30,879,366.19 | 46.35 | Progressing according to project schedule | | Advances from Customers | 1,059,725.65 | 596,225.63 | 77.74 | Due to receipt of customer prepaid rent as per contract | | Contract Liabilities | 13,809,594.44 | 9,181,304.38 | 50.41 | Mainly due to increased customer prepayments for goods | | Employee Benefits Payable | 15,242,396.61 | 29,523,336.80 | -48.37 | Mainly due to prior year-end balance including accrued bonuses | - Overseas assets totaled **4,643,409.10 CNY**, accounting for **0.14% of total assets**[83](index=83&type=chunk) Major Asset Restrictions as of Reporting Period End | Item | Book Value at Period End (CNY) | Reason for Restriction | | :--- | :--- | :--- | | Cash and Bank Balances | 1,561,983.54 | Margin deposit | | Notes Receivable | 6,957,816.57 | Endorsed but not yet due | | Fixed Assets | 497,343,127.47 | Mortgaged for loans | | Investment Properties | 2,479,487.73 | Mortgaged for loans | | **Total** | **508,342,415.31** | / | [(4) Analysis of Investment Status](index=26&type=section&id=%284%29%20Analysis%20of%20Investment%20Status) During the reporting period, the company's external equity investments primarily included a **1.4% equity stake in Zhejiang Haichang Biomedical Technology Co., Ltd.** and investments in private equity funds, resulting in a significant increase in fair value change gains - During the reporting period, external equity investment primarily involved an investment in a **1.4% equity stake in Zhejiang Haichang Biomedical Technology Co., Ltd.**[86](index=86&type=chunk) Changes in Financial Assets Measured at Fair Value | Asset Category | Beginning Balance (CNY) | Fair Value Change Gain/Loss for Current Period (CNY) | Amount Purchased in Current Period (CNY) | Amount Sold/Redeemed in Current Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Other | 79,112,090.32 | 177,119.18 | 636,850,000.00 | 421,850,000.00 | 304,495,547.99 | | Of which, Financial Assets Held for Trading | 0.00 | 177,119.18 | 594,850,000.00 | 421,850,000.00 | 173,177,119.18 | | Private Equity Funds | 183,613,931.09 | 15,439,757.31 | 0.00 | 0.00 | 199,053,688.40 | | **Total** | **262,726,021.41** | **15,616,876.49** | **636,850,000.00** | **421,850,000.00** | **503,549,236.39** | - Cumulative investment returns received from private equity funds totaled **29,543,596.59 CNY**[88](index=88&type=chunk) [(5) Significant Asset and Equity Disposals](index=27&type=section&id=%285%29%20Significant%20Asset%20and%20Equity%20Disposals) During the reporting period, the company transferred 100% equity of Shenzhen Tong'an Pharmaceutical Co., Ltd., a move that helps the company focus on its biopharmaceutical main business, reduce operational risks, and impacted total profit by **15.27 million yuan** - Disposal method: **Transfer of 100% equity in Shenzhen Tong'an Pharmaceutical Co., Ltd.**[91](index=91&type=chunk) - Impact: **Beneficial for the company to continuously focus on the biopharmaceutical sector**, enhance core competitiveness, reduce operational risks, and align with the company's long-term strategic development plan[91](index=91&type=chunk) - This disposal will impact the company's total profit by **15.27 million yuan**, accounting for **18.16%** of the total profit for the current reporting period[91](index=91&type=chunk) [(6) Analysis of Major Holding and Participating Companies](index=28&type=section&id=%286%29%20Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) This section discloses information on the company's major holding and participating companies, including the financial data of subsidiary Kexing Pharmaceutical and private equity fund investments, with the private equity fund impacting current period profit by **15,439,757.31 CNY** Financial Data of Major Subsidiary Kexing Pharmaceutical | Indicator | Amount (million yuan) | | :--- | :--- | | Total Assets | 554.42 | | Net Assets | 289.92 | | Operating Revenue | 129.05 | | Operating Profit | 6.72 | | Net Profit | 10.66 | Private Equity Fund Investment Status | Private Equity Fund Name | Investment Purpose | Planned Total Investment (CNY) | Amount Invested as of Reporting Period End (CNY) | Profit Impact for Current Period (CNY) | Cumulative Profit Impact (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Chongqing Zhaoying Langyao Growth Phase II Equity Investment Partnership (Limited Partnership) | To further broaden potential cooperation opportunities with enterprises in the healthcare industry, empowering the company's main business development | 200,000,000 | 200,000,000 | 15,439,757.31 | 28,597,284.99 | Section 4 Corporate Governance%2C Environment and Society [I. Changes in Directors%2C Supervisors%2C Senior Management%2C and Core Technical Personnel](index=29&type=section&id=I.%20Changes%20in%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Core%20Technical%20Personnel) There were no changes in the company's directors, supervisors, senior management, and core technical personnel during the reporting period - There were **no changes** in the company's directors, supervisors, senior management, and core technical personnel during the reporting period[94](index=94&type=chunk) [II. Profit Distribution or Capital Reserve to Share Capital Plan](index=29&type=section&id=II.%20Profit%20Distribution%20or%20Capital%20Reserve%20to%20Share%20Capital%20Plan) The company will not undertake profit distribution or capital reserve to share capital conversion for the semi-annual period - Whether to distribute or convert: **No**[94](index=94&type=chunk) - Number of bonus shares, dividends, and capital reserve conversions per 10 shares are all **0**[94](index=94&type=chunk) [III. Equity Incentive Plans%2C Employee Stock Ownership Plans%2C and Other Incentive Measures](index=29&type=section&id=III.%20Equity%20Incentive%20Plans%2C%20Employee%20Stock%20Ownership%20Plans%2C%20and%20Other%20Incentive%20Measures) During the reporting period, the company adjusted its 2024 Restricted Stock Incentive Plan and completed the share registration for the first vesting period, with a total of **127 incentive recipients vesting 1,615,000 restricted shares** - On April 9, 2025, the company **cancelled part of the granted but unvested restricted shares** from the 2022 Restricted Stock Incentive Plan[95](index=95&type=chunk) - On June 23, 2025, the company approved the proposal to **adjust the grant price of the 2024 Restricted Stock Incentive Plan**, cancel some restricted shares, and confirm the achievement of vesting conditions for the first vesting period[95](index=95&type=chunk) - On July 9, 2025, the company completed the share registration for the first vesting period of the 2024 Restricted Stock Incentive Plan, with a total of **127 incentive recipients vesting 1,615,000 A-share restricted shares**[95](index=95&type=chunk) [IV. Environmental Information Disclosure](index=30&type=section&id=IV.%20Environmental%20Information%20Disclosure) The company and its major subsidiary, Shenzhen Kexing, have been included in the list of enterprises required to disclose environmental information by law, with an index provided for inquiry - Number of enterprises included in the list of environmental information disclosure: **2 (Kexing Pharma, Shenzhen Kexing)**[97](index=97&type=chunk) - Provided an **index for querying enterprise environmental information disclosure reports**[97](index=97&type=chunk) Section 5 Significant Matters [I. Fulfillment of Commitments](index=31&type=section&id=I.%20Fulfillment%20of%20Commitments) This section details the commitments made by the company's actual controller, controlling shareholder, directors, supervisors, senior management, and core technical personnel regarding the initial public offering and equity incentives, stating that all commitments were fulfilled promptly and strictly - Controlling shareholder, actual controller, directors, senior management, supervisors, and core technical personnel all have **share lock-up commitments** with different durations[99](index=99&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) - The controlling shareholder committed to **holding intentions and reduction intentions**, and will comply with reduction regulations[107](index=107&type=chunk) - The company and its controlling shareholder, actual controller, committed to **repurchasing shares in case of fraudulent issuance and listing**[108](index=108&type=chunk)[109](index=109&type=chunk) - The company and its directors, senior management, committed to **measures to fill immediate returns after issuance**[110](index=110&type=chunk)[113](index=113&type=chunk) - The company committed to its **profit distribution policy** and to bear compensation liability in accordance with the law[114](index=114&type=chunk)[115](index=115&type=chunk) - The controlling shareholder, actual controller, directors, supervisors, and senior management committed to **bearing compensation liability in accordance with the law**[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk) - The company and relevant parties committed to **binding measures in case of non-fulfillment of commitments**[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) - The controlling shareholder and actual controller committed to **standardizing related party transactions and avoiding horizontal competition**[123](index=123&type=chunk)[124](index=124&type=chunk)[126](index=126&type=chunk) - The actual controller committed to **resolving property title defects** such as land[127](index=127&type=chunk) - The company committed that it will **not produce recombinant human erythropoietin in Jiangsu Province**, where the Logistics Department of Nanjing Military Region Military Medical Research Institute is located, in the future[128](index=128&type=chunk) - The actual controller committed to **bearing losses arising from disputes over product technology sources or ownership**[129](index=129&type=chunk) - The company committed **not to provide financial assistance to incentive recipients**, and incentive recipients committed to **returning benefits obtained due to false records**[130](index=130&type=chunk)[131](index=131&type=chunk) - All commitments have been **fulfilled promptly and strictly**[99](index=99&type=chunk) [IX. Integrity Status of the Company and Controlling Parties](index=37&type=section&id=IX.%20Integrity%20Status%20of%20the%20Company%20and%20Controlling%20Parties) During the reporting period, the company, its controlling shareholder, and actual controller had no instances of failing to comply with effective court judgments or having large outstanding debts that were due and unpaid - During the reporting period, the company, its controlling shareholder, and actual controller had **no instances of failing to comply with effective court judgments** or having large outstanding debts that were due and unpaid[133](index=133&type=chunk) [X. Significant Related Party Transactions](index=37&type=section&id=X.%20Significant%20Related%20Party%20Transactions) During the reporting period, the company engaged in lease transactions related to daily operations with related parties, primarily involving property utility fees, totaling **8.27 million yuan** Related Party Transactions Related to Daily Operations | Related Party | Related Transaction Content | 2025 Estimated Amount (million yuan) | Actual Amount Incurred in Reporting Period (million yuan) | Percentage of Similar Transactions (%) | | :--- | :--- | :--- | :--- | :--- | | Chuangyi Technology | Lease (including utilities, property management fees) | 14.00 | 5.88 | 68.51 | | Zhengzhong Industrial Control | Lease (including utilities, property management fees) | 4.50 | 1.82 | 21.18 | | Yunsheng Tianji | Lease (including utilities, property management fees) | 1.50 | 0.57 | 6.63 | | **Total** | | **20.00** | **8.27** | **96.32** | [XI. Significant Contracts and Their Performance](index=38&type=section&id=XI.%20Significant%20Contracts%20and%20Their%20Performance) During the reporting period, the company provided several joint liability guarantees for its wholly-owned subsidiaries, with a total guarantee amount of **175.27 million yuan**, accounting for **10.42% of the company's net assets**, and no instances of irregular guarantees Company and its Subsidiaries' Guarantees for Subsidiaries | Guarantor | Guaranteed Party | Guarantee Amount (million yuan) | Guarantee Type | Guarantee Fulfilled | | :--- | :--- | :--- | :--- | :--- | | Kexing Pharma | Shenzhen Kexing | 60.00 | Joint Liability Guarantee | No | | Kexing Pharma | Shenzhen Kexing | 40.00 | Joint Liability Guarantee | No | | Kexing Pharma | Shenzhen Kexing | 30.00 | Joint Liability Guarantee | No | | Kexing Pharma | Shenzhen Kexing | 30.00 | Joint Liability Guarantee | No | | Kexing Pharma | Shenzhen Kexing | 50.00 | Joint Liability Guarantee | No | | Kexing Pharma | Shenzhen Kexing | 30.00 | Joint Liability Guarantee | No | | Kexing Pharma | Shenzhen Kexing | 30.00 | Joint Liability Guarantee | No | | Kexing Pharma | Shenzhen Kexing Pharmaceutical | 10.00 | Joint Liability Guarantee | No | | Kexing Pharma | Qingdao Tuoyi | 9.00 | Joint Liability Guarantee | No | | **Total Guarantees Incurred for Subsidiaries in Reporting Period** | **289.00** | | | | **Total Guarantees Outstanding for Subsidiaries at Reporting Period End (B)** | **175.27** | | | - The company's total guarantee amount (A+B) was **175.27 million yuan**, accounting for **10.42% of the company's net assets**[141](index=141&type=chunk) - During the reporting period, all guarantees provided by the company were for wholly-owned subsidiaries, with **no instances of irregular guarantees**[141](index=141&type=chunk) [XII. Progress in Use of Raised Funds](index=41&type=section&id=XII.%20Progress%20in%20Use%20of%20Raised%20Funds) The company's initial public offering raised a total of **1.11 billion yuan**, with a net amount of **994.64 million yuan**; as of the end of the reporting period, a cumulative **818.18 million yuan** had been invested, representing an investment progress of **82.26%** Overall Use of Raised Funds | Source of Raised Funds | Total Raised Funds (million yuan) | Net Raised Funds (million yuan) | Total Investment Pledged in Prospectus (million yuan) | Cumulative Raised Funds Invested as of Reporting Period End (million yuan) | Cumulative Investment Progress as of Reporting Period End (%) | Amount Invested This Year (million yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Initial Public Offering | 1,109.25 | 994.64 | 1,705.11 | 818.18 | 82.26 | 14.17 | Details of Raised Fund Investment Projects | Project Name | Planned Investment Amount from Raised Funds (million yuan) | Amount Invested This Year (million yuan) | Cumulative Raised Funds Invested as of Reporting Period End (million yuan) | Cumulative Investment Progress as of Reporting Period End (%) | | :--- | :--- | :--- | :--- | :--- | | Drug Production Base Expansion Project | 230.29 | 2.09 | 110.56 | 48.01 | | R&D Center Upgrade Project | 347.46 | 12.08 | 290.63 | 83.64 | | Information Management System Upgrade Project | 21.00 | 0 | 21.11 | 100.51 | | Supplementary Working Capital and Loan Repayment Project | 395.89 | 0 | 395.89 | 100.00 | - The main sub-projects of the **"R&D Center Upgrade Project"** have entered the clinical stage, and the implementation period has been **extended to December 31, 2025**[145](index=145&type=chunk) - The company uses a maximum balance of **200 million yuan** (inclusive) of idle raised funds for cash management[147](index=147&type=chunk) Section 6 Share Changes and Shareholder Information [I. Share Capital Changes](index=44&type=section&id=I.%20Share%20Capital%20Changes) During the reporting period, the company's total ordinary share capital and share capital structure remained unchanged, but after the reporting period and up to the semi-annual report disclosure date, the share capital increased by **1,615,000 shares** due to equity incentive vesting - During the reporting period, the company's **total ordinary share capital and share capital structure remained unchanged**[150](index=150&type=chunk) - After the reporting period, on July 9, 2025, the company completed the vesting registration of **1,615,000 restricted shares** from the first vesting period of the 2024 Restricted Stock Incentive Plan, increasing the company's share capital from **199,642,250 shares to 201,257,250 shares**[151](index=151&type=chunk) [II. Shareholder Information](index=44&type=section&id=II.%20Shareholder%20Information) As of the end of the reporting period, the company had a total of **9,412 ordinary shareholders**. Among the top ten shareholders, controlling shareholder Shenzhen Kexing Pharmaceutical Holdings Co., Ltd. held **64.12%** of the shares, and actual controller Mr. Deng Xueqin indirectly reduced his holdings by **3,775,000 shares** - Total number of ordinary shareholders as of the end of the reporting period: **9,412 households**[152](index=152&type=chunk) Top Ten Shareholders' Shareholding | Shareholder Name | Shares Held at Period End (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Shenzhen Kexing Pharmaceutical Holdings Co., Ltd. | 128,003,347 | 64.12 | Domestic Non-State-Owned Legal Person | | Bank of China Co., Ltd. - E Fund Medical and Healthcare Industry Mixed Securities Investment Fund | 3,669,006 | 1.84 | Other | | China Construction Bank Corporation - Fullgoal Precision Medicine Flexible Allocation Mixed Securities Investment Fund | 2,493,160 | 1.25 | Other | | Agricultural Bank of China Co., Ltd. - Penghua Pharmaceutical Technology Stock Investment Fund | 1,918,091 | 0.96 | Other | | Industrial and Commercial Bank of China Co., Ltd. - Zhong Ou Medical and Healthcare Mixed Securities Investment Fund | 1,901,364 | 0.95 | Other | | Deng Xueqin | 1,764,125 | 0.88 | Domestic Natural Person | | Industrial and Commercial Bank of China Co., Ltd. - E Fund Pharmaceutical and Biological Stock Investment Fund | 1,761,035 | 0.88 | Other | | Industrial and Commercial Bank of China Co., Ltd. - Fullgoal Tianhui Selected Growth Mixed Securities Investment Fund (LOF) | 1,490,000 | 0.75 | Other | | Li Yonggang | 1,210,028 | 0.61 | Domestic Natural Person | | Hong Kong Securities Clearing Company Limited | 1,205,545 | 0.60 | Other | - Among the top ten shareholders, the share repurchase account held **3,149,905 shares**, accounting for **1.58%** of the company's shares[155](index=155&type=chunk) - Among the aforementioned shareholders, Shenzhen Kexing Pharmaceutical Holdings Co., Ltd. is an enterprise controlled by shareholder Deng Xueqin; Shenzhen Kexing Pharmaceutical Holdings Co., Ltd. is the controlling shareholder of the company, and Deng Xueqin is the actual controller of the company[155](index=155&type=chunk) [III. Information on Directors%2C Supervisors%2C Senior Management%2C and Core Technical Personnel](index=46&type=section&id=III.%20Information%20on%20Directors%2C%20Supervisors%2C%20Senior%20Management%2C%20and%20Core%20Technical%20Personnel) During the reporting period, Mr. Deng Xueqin, the company's actual controller and chairman, indirectly reduced his shareholding by **3,775,000 shares** due to a reduction by Shenzhen Kexing Pharmaceutical Holdings Co., Ltd., which he controls. Some directors, senior management, and core technical personnel were granted restricted shares, with a total of **850,000 restricted shares** granted at period-end - During the reporting period, Mr. Deng Xueqin, the company's actual controller and chairman, indirectly reduced his shareholding by **3,775,000 shares**, which was due to Shenzhen Kexing Pharmaceutical Holdings Co., Ltd., an enterprise he controls, reducing its holdings in the company according to the disclosed reduction plan[157](index=157&type=chunk) Grant of Type II Restricted Shares | Name | Position | Number of Restricted Shares Granted at Beginning of Period (shares) | Number of Vesting Shares (shares) | Number of Restricted Shares Granted at End of Period (shares) | | :--- | :--- | :--- | :--- | :--- | | Zhao Yanqing | Director, General Manager | 150,000 | 75,000 | 150,000 | | Cui Ning | Director, Deputy General Manager | 100,000 | 50,000 | 100,000 | | Wang Xiaoqin | Director, Board Secretary, CFO | 100,000 | 50,000 | 100,000 | | Shao Ke | Deputy General Manager | 100,000 | 50,000 | 100,000 | | Qin Suofu | Deputy General Manager, Core Technical Personnel | 100,000 | 50,000 | 100,000 | | Ma Hongjie | Deputy General Manager, Core Technical Personnel | 100,000 | 50,000 | 100,000 | | Li Huiming | Core Technical Personnel | 70,000 | 35,000 | 70,000 | | Huang Kaikun | Core Technical Personnel | 50,000 | 25,000 | 50,000 | | Tian Fangfang | Core Technical Personnel | 30,000 | 15,000 | 30,000 | | Bai Jiangtao | Core Technical Personnel | 25,000 | 12,500 | 25,000 | | Shang Wei | Core Technical Personnel | 25,000 | 12,500 | 25,000 | | **Total** | / | **850,000** | **425,000** | **850,000** | - The company completed the share registration procedures for the first vesting period of the 2024 Restricted Stock Incentive Plan on **July 9, 2025**[159](index=159&type=chunk) Section 7 Bond-Related Information [I. Corporate Bonds and Non-Financial Enterprise Debt Financing Instruments](index=48&type=section&id=I.%20Corporate%20Bonds%20and%20Non-Financial%20Enterprise%20Debt%20Financing%20Instruments) The company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments during the reporting period - **Not applicable**[162](index=162&type=chunk) [II. Convertible Corporate Bonds](index=48&type=section&id=II.%20Convertible%20Corporate%20Bonds) The company had no convertible corporate bonds during the reporting period - **Not applicable**[162](index=162&type=chunk) Section 8 Financial Report [I. Audit Report](index=49&type=section&id=I.%20Audit%20Report) This semi-annual report has not been audited - This semi-annual report is **unaudited**[4](index=4&type=chunk) [II. Financial Statements](index=49&type=section&id=II.%20Financial%20Statements) This section provides the company's consolidated and parent company balance sheets, income statements, and cash flow statements for the first half of 2025, reflecting its financial position, operating results, and cash flow situation Consolidated Balance Sheet Key Data (June 30, 2025) | Item | Period-End Balance (CNY) | Period-Beginning Balance (CNY) | | :--- | :--- | :--- | | Total Assets | 3,318,293,675.20 | 3,162,234,528.16 | | Total Liabilities | 1,633,180,276.45 | 1,522,987,869.66 | | Total Equity Attributable to Parent Company Owners (or Shareholders' Equity) | 1,682,157,277.01 | 1,634,908,540.58 | Consolidated Income Statement Key Data (Jan-Jun 2025) | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 700,464,766.25 | 759,894,679.84 | | Total Profit | 84,128,950.20 | 41,979,606.35 | | Net Profit Attributable to Parent Company Shareholders | 80,344,468.24 | 11,877,328.48 | | Basic Earnings Per Share (CNY/share) | 0.41 | 0.06 | | Diluted Earnings Per Share (CNY/share) | 0.40 | 0.06 | Consolidated Cash Flow Statement Key Data (Jan-Jun 2025) | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 29,798,082.73 | -34,029,158.20 | | Net Cash Flow from Investing Activities | -201,365,322.29 | -121,377,586.13 | | Net Cash Flow from Financing Activities | 63,815,621.61 | 32,833,329.68 | | Net Increase in Cash and Cash Equivalents | -106,717,644.64 | -121,602,304.49 | [III. Company Basic Information](index=65&type=section&id=III.%20Company%20Basic%20Information) This section describes the company's registered place, organizational form, headquarters address, business nature, and main operating activities, and states that the financial statements have been approved for issuance by the Board of Directors - Company registered place: **No. 2666 Chuangye Road, Bucun Street, Zhangqiu District, Jinan City, Shandong Province**[192](index=192&type=chunk) - Business nature: **Biopharmaceutical industry**, with main products and services including R&D, production, and sales of biological products, chemical drugs, raw materials, and traditional Chinese medicine (excluding hazardous chemicals)[192](index=192&type=chunk) - The financial statements were **approved for issuance by the company's Board of Directors on August 22, 2025**[193](index=193&type=chunk) [IV. Basis of Financial Statement Preparation](index=65&type=section&id=IV.%20Basis%20of%20Financial%20Statement%20Preparation) The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance, their application guidelines, interpretations, and other relevant regulations, on a going concern basis, and measured at historical cost - Basis of preparation: **Accounting Standards for Business Enterprises** issued by the Ministry of Finance, their application guidelines, interpretations, and other relevant regulations[194](index=194&type=chunk) - Preparation basis: **Going concern**[195](index=195&type=chunk) - Measurement basis: **Historical cost**[194](index=194&type=chunk) [V. Significant Accounting Policies and Estimates](index=65&type=section&id=V.%20Significant%20Accounting%20Policies%20and%20Estimates) This section discloses the company's significant accounting policies and estimates regarding fixed asset depreciation, intangible asset amortization, capitalization conditions for R&D expenses, and revenue recognition policies, and states that the financial statements comply with the requirements of Accounting Standards for Business Enterprises - The company determines its policies for **fixed asset depreciation, intangible asset amortization, capitalization conditions for R&D expenses, and revenue recognition** based on its production and operation characteristics[196](index=196&type=chunk) - The financial statements prepared by the company comply with the requirements of Accounting Standards for Business Enterprises, truly and completely reflecting the company's financial position, operating results, changes in shareholders' equity, and cash flows[197](index=197&type=chunk) - Significant accounting estimates and key assumptions include the **classification of financial assets, measurement of expected credit losses for accounts receivable, development expenditures, and deferred income tax assets**[290](index=290&type=chunk)[291](index=291&type=chunk)[292](index=292&type=chunk) [VI. Taxation](index=86&type=section&id=VI.%20Taxation) This section discloses the company's main tax categories and rates, and states that both the company and its subsidiary Kexing Pharmaceutical enjoy high-tech enterprise income tax preferential policies, applying a **15% corporate income tax rate** Main Tax Categories and Rates | Tax Category | Tax Rate | | :--- | :--- | | Value-Added Tax | 3%, 5%, 6%, 9%, 13% | | Urban Maintenance and Construction Tax | 7% | | Education Surcharge | 3% | | Local Education Surcharge | 2% | | Corporate Income Tax | 15% (High-tech Enterprise) / 16.50% / 17.00% / 22.50% / 30.00% / 25.00% | | Property Tax | 1.2%, 12% | - The company and its subsidiary Kexing Pharmaceutical have both obtained high-tech enterprise certificates, applying a **15% corporate income tax rate** from January 1, 2023, to December 31, 2025[295](index=295&type=chunk) - The company has been paying urban land use tax at **50% of the current standard** since January 1, 2019, valid until December 31, 2025[295](index=295&type=chunk) [VII. Notes to Consolidated Financial Statement Items](index=87&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statement%20Items) This section details the period-end balances, period-beginning balances, and changes for each item in the consolidated financial statements, including cash and bank balances, financial assets held for trading, notes receivable, accounts receivable, inventories, fixed assets, construction in progress, short-term borrowings, and long-term borrowings - Cash and bank balances at period-end were **447,796,281.49 CNY**, of which **4,608,851.16 CNY** was deposited overseas[297](index=297&type=chunk) - Financial assets held for trading at period-end were **173,177,119.18 CNY**, primarily wealth management products[299](index=299&type=chunk) - Notes receivable at period-end were **32,701,387.17 CNY**, all of which were bank acceptance bills[300](index=300&type=chunk) - Accounts receivable at period-end were **537,838,911.99 CNY**, with bad debt provisions of **26,533,601.63 CNY**[308](index=308&type=chunk) - Inventories at period-end had a book value of **128,900,752.56 CNY**, with inventory impairment provisions of **1,732,013.83 CNY**[335](index=335&type=chunk) - Fixed assets at period-end had a book value of **1,006,855,884.11 CNY**[347](index=347&type=chunk) - Construction in progress at period-end had a book value of **113,226,474.79 CNY**, primarily for production line construction[353](index=353&type=chunk) - Short-term borrowings at period-end were **285,848,322.78 CNY**, primarily guarantee borrowings[366](index=366&type=chunk) - Long-term borrowings at period-end were **696,474,725.52 CNY**, primarily mortgage borrowings and guarantee borrowings[388](index=388&type=chunk) - Operating revenue was **700,464,766.25 CNY**, and operating cost was **255,257,060.07 CNY**[407](index=407&type=chunk) - Selling expenses were **254,953,408.24 CNY**, a year-on-year decrease of **23.86%**[410](index=410&type=chunk) - R&D expenses were **81,662,554.29 CNY**, a year-on-year increase of **1.66%**[412](index=412&type=chunk) - Investment income was **23,176,579.52 CNY**, a year-on-year increase of **467.42%**, mainly due to the **recognition of investment income from the disposal of subsidiary Tong'an Pharmaceutical**[82](index=82&type=chunk)[416](index=416&type=chunk) - Fair value change gains were **15,439,757.31 CNY**, compared to -13,940,667.35 CNY in the prior year period, mainly due to the **increase in fair value of held private equity fund shares**[82](index=82&type=chunk)[416](index=416&type=chunk) [VIII. Research and Development Expenses](index=134&type=section&id=VIII.%20Research%20and%20Development%20Expenses) During the reporting period, the company's total R&D investment was **95,974,390.44 CNY**, including **81,662,554.29 CNY** in expensed R&D and **14,311,836.15 CNY** in capitalized R&D, with major ongoing projects including Polyethylene Glycolated Recombinant Human Granulocyte Colony-Stimulating Factor Injection and Recombinant Human Interferon α1b (Mutant) Inhalation Solution R&D Expense Composition | Item | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Clinical and Trial Fees | 32,742,796.15 | 18,796,316.13 | | Employee Compensation | 22,836,095.52 | 21,765,499.18 | | Materials and Fuel Costs | 20,697,065.20 | 24,045,109.06 | | Depreciation and Amortization | 13,392,631.13 | 15,012,932.51 | | Other | 6,305,802.44 | 7,916,277.60 | | **Total** | **95,974,390.44** | **87,536,134.48** | | Of which: Expensed R&D Investment | 81,662,554.29 | 80,326,332.08 | | Capitalized R&D Investment | 14,311,836.15 | 7,209,802.40 | - Important capitalized R&D projects include the **Polyethylene Glycolated Recombinant Human Granulocyte Colony-Stimulating Factor Injection project (Phase III clinical)** and the **Recombinant Human Interferon α1b (Mutant) Inhalation Solution project (Phase III clinical)**[450](index=450&type=chunk) [IX. Changes in Consolidation Scope](index=135&type=section&id=IX.%20Changes%20in%20Consolidation%20Scope) During the reporting period, the company disposed of 100% equity in its wholly-owned subsidiary Shenzhen Tong'an Pharmaceutical Co., Ltd., and established Shenzhen Baotekang Biotechnology Co., Ltd - Disposal of subsidiary: **100% equity in Shenzhen Tong'an Pharmaceutical Co., Ltd.**, loss of control occurred on June 30, 2025, with a disposal price of **15.00 million yuan**[137](index=137&type=chunk)[454](index=454&type=chunk) - New subsidiary established: **Shenzhen Baotekang Biotechnology Co., Ltd.**[453](index=453&type=chunk)[456](index=456&type=chunk) [X. Interests in Other Entities](index=138&type=section&id=X.%20Interests%20in%20Other%20Entities) This section discloses the composition of the company's enterprise group, including **17 subsidiaries**, with Guangzhou Anhe Dongbao Biotechnology Co., Ltd. being a significant non-wholly-owned subsidiary with a minority shareholder stake of **39.96%** - The company owns **17 subsidiaries**, including Kexing Pharmaceutical, Tong'an Pharmaceutical, and Guangzhou Anhe Dongbao Biotechnology Co., Ltd.[455](index=455&type=chunk)[456](index=456&type=chunk) - Significant non-wholly-owned subsidiary: **Guangzhou Anhe Dongbao Biotechnology Co., Ltd.**, with a minority shareholder stake of **39.96%**, and profit/loss attributable to minority shareholders of **-1,381,996.18 CNY** for the current period[456](index=456&type=chunk) - The company's investment in associate **Shaanxi Mingkun Sheye Technology Co., Ltd.** had a book value of **3,898,934.12 CNY**[458](index=458&type=chunk) [XI. Government Grants](index=142&type=section&id=XI.%20Government%20Grants) During the reporting period, the company's total government grants recognized in current profit or loss amounted to **2,102,724.29 CNY**, of which **249,040.52 CNY** were asset-related and **1,853,683.77 CNY** were income-related Government Grants Recognized in Current Profit or Loss | Type | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | | Asset-Related | 249,040.52 | 367,089.23 | | Income-Related | 1,853,683.77 | 3,621,699.38 | | **Total** | **2,102,724.29** | **3,988,788.61** | - Deferred income at period-end was **2,901,877.22 CNY**, all of which were **asset-related government grants**[461](index=461&type=chunk) [XII. Risks Related to Financial Instruments](index=143&type=section&id=XII.%20Risks%20Related%20to%20Financial%20Instruments) The company faces credit risk, liquidity risk, and market risk (including interest rate risk and exchange rate risk), which are managed through risk management policies, diversified investments, monitoring funding needs, and financing credit lines - The company's main financial instruments include **cash and bank balances, financial assets held for trading, notes receivable, accounts receivable, accounts receivable financing, other receivables, other equity instrument investments, other non-current financial assets, accounts payable, other payables, short-term borrowings, non-current liabilities due within one year, long-term borrowings, and lease liabilities**[462](index=462&type=chunk) - Credit risk: Managed by **assessing customer creditworthiness, setting credit periods, and continuously monitoring accounts receivable balances and collection status**[463](index=463&type=chunk) - Liquidity risk: Managed by **continuously monitoring the company's short-term and long-term funding needs**, obtaining commitments for sufficient standby funds, and securing credit line agreements with major financial institutions[465](index=465&type=chunk) - Market risk: Includes **interest rate risk** (primarily arising from bank borrowings) and **exchange rate risk** (arising from financial instruments denominated in foreign currencies other than the functional currency), managed by monitoring interest rate levels and the scale of foreign currency transactions, assets, and liabilities to reduce risk[466](index=466&type=chunk) - As of June 30, 2025, the company's unused bank credit line was **789.42 million yuan**[465](index=465&type=chunk) [XIII. Disclosure of Fair Value](index=145&type=section&id=XIII.%20Disclosure%20of%20Fair%20Value) This section discloses the fair value of assets and liabilities measured at fair value at period-end, primarily including financial assets held for trading, other equity instrument investments, other non-current financial assets, and accounts receivable financing, along with valuation techniques and parameters Total Assets Continuously Measured at Fair Value | Item | Fair Value at Period End (CNY) | | :--- | :--- | | Financial Assets Held for Trading | 173,177,119.18 | | Other Equity Instrument Investments | 15,860,000.00 | | Other Non-Current Financial Assets | 241,053,688.40 | | Accounts Receivable Financing | 73,458,428.81 | | **Total Assets Continuously Measured at Fair Value** | **503,549,236.39** | - For accounts receivable financing, its fair value is similar to its book value, so its book value is used as its fair value; other non-current financial assets are the company's subscribed private equity fund shares and equity investments, with fair value determined based on their net asset value at period-end or initial investment cost; other equity instrument investments are equity holdings in unlisted companies, with fair value determined based on valuation reports issued by third-party appraisal firms within the last year[471](index=471&type=chunk)[472](index=472&type=chunk) - The book value and fair value of financial assets and liabilities not measured at fair value are very similar[473](index=473&type=chunk) [XIV. Related Parties and Related Party Transactions](index=146&type=section&id=XIV.%20Related%20Parties%20and%20Related%20Party%20Transactions) This section discloses the company's parent company, ultimate controlling party, subsidiaries, and other related parties, as well as related party transactions such as purchases and sales of goods, acceptance of services, and related party guarantees during the reporting period - Parent company: **Shenzhen Kexing Pharmaceutical Holdings Co., Ltd.**, with a shareholding ratio of **64.12%**; ultimate controlling party: **Deng Xueqin**[474](index=474&type=chunk)[475](index=475&type=chunk) - Information on subsidiaries can be found in Note X, 1[475](index=475&type=chunk) - Other related parties include **Zhengzhong Investment Group Co., Ltd., Zhengzhong Industrial Holdings Group Co., Ltd., Shenzhen Kexing Bioengineering Co., Ltd., Shenzhen Kexing Property Management Co., Ltd., Wen Shaozhen (spouse of the company's actual controller), Chuangyi Biotechnology Co., Ltd., and Guangzhou Yunsheng Tianji Technology Co., Ltd.**[477](index=477&type=chunk) Related Party Transactions for Purchases and Sales of Goods%2FAcceptance of Services | Related Party | Related Transaction Content | Amount for Current Period (CNY) | Amount for Prior Period (CNY) | | :--- | :--- | :--- | :--- | | Chuangyi Biotechnology Co., Ltd. | Property utility fees, etc. | 1,543,469.23 | 1,229,792.37 | | Guangzhou Yunsheng Tianji Technology Co., Ltd. | Property utility fees | 193,278.76 | 240,184.05 | | Shenzhen Kexing Property Management Co., Ltd. | Property utility fees | 221,415.70 | 728,304.54 | | **Total** | | **1,958,163.69** | **2,198,280.96** | - Related leases (as lessee): **6,123,367.80 CNY** in rent paid and **553,780.58 CNY** in lease liability interest expense incurred in the current period[479](index=479&type=chunk) - Related guarantees (as guaranteed party): Actual controller Deng Xueqin, Zhengzhong Investment Group Co., Ltd., and others provided multiple guarantees for the company, with guarantee amounts ranging from **10 million yuan to 290 million yuan**[481](index=481&type=chunk)[482](index=482&type=chunk) - Receivables from related parties: Total other receivables at period-end were **1,687,652.37 CNY**[488](index=488&type=chunk) - Payables to related parties: Total other payables at period-end were **1,069,684.43 CNY**[490](index=490&type=chunk) - Key management personnel compensation: **3.89 million yuan** incurred in the current period[486](index=486&type=chunk) [XV. Share-Based Payment](index=154&type=section&id=XV.%20Share-Based%20Payment) This section discloses the implementation of the 2024 Restricted Stock Incentive Plan, including the exercise of **1,615,000 shares** totaling **19,250,800.00 CNY** in the current period, and the recognition of share-based payment expense of **6,749,267.14 CNY** 2024 Restricted Stock Incentive Plan | Category of Grantee | Number of Shares Exercised in Current Period (shares) | Amount Exercised in Current Period (CNY) | Number of Shares Forfeited in Current P