Summary of the Conference Call for BeiGene (1Q25) Company Overview - **Company**: BeiGene - **Industry**: Biotechnology/Pharmaceuticals Key Financial Performance - **1Q25 Revenue**: - Net product sales reached **$1.109 billion**, representing a **48% year-over-year increase** [1] - **Zebutinib Global Sales**: **$792 million**, with a **62% year-over-year increase** [1] - **U.S. Sales**: **$563 million**, up **60% year-over-year** [1] - **European Sales**: **$116 million**, up **73% year-over-year** [1] - **Tislelizumab Sales**: **$171 million**, reflecting an **18% year-over-year increase** [1] - **GAAP Net Profit**: Achieved a net profit of **$1.27 million**, marking the first quarterly profit [1] Strategic Developments - **Investor R&D Day**: Scheduled for **June 26**, focusing on breast cancer and other solid tumor pipelines [1] - **Reimbursement Expansion**: Zebutinib has been included or expanded in reimbursement in **11 markets**, including Japan, Europe, and Brazil [1] - **New Supplier**: Engaged **Siegfried** as a new supplier for active pharmaceutical ingredients for Zebutinib [1] - **Regulatory Filings**: BCL2 has been submitted for approval in China for the treatment of R/R CLL [1] - **Clinical Trials**: - Initiated a Phase III clinical trial for BTKCDAC in treating R/R CLL, comparing against physician's choice of treatment [1] - DLL3/CD3 bispecific antibody (in collaboration with Amgen) reported positive data from the Phase III trial for 2L SCLC [1] - CDK4 is expected to report Proof of Concept data in the first half of 2025 [1] Additional Insights - The significant growth in Zebutinib sales is attributed to its increasing market share in the treatment of new CLL patients, positioning it as the top seller in the U.S. BTK market [1]

Market Overview - US stock markets collectively rose, with the Dow Jones up 0.7%, Nasdaq up 0.27%, and S&P 500 up 0.43% [1] - Nvidia increased by 3.1%, Amazon by 2%, and Meta Platforms by 1.62%, while Google A dropped by 7.26% [1] Federal Reserve - The Federal Reserve maintained the federal funds rate target range at 4.25%-4.5%, aligning with market expectations [2] Technology Developments - Trump plans to abolish AI chip restrictions imposed during Biden's administration [3] - Apple is preparing a major overhaul of Safari, targeting AI search capabilities, which poses a significant challenge to Google's market position [6] - OpenAI is in discussions with the FDA to incorporate AI in drug evaluation processes [7] - OpenAI plans to expand its "Stargate" project beyond the US [5] Defense Spending - Germany's Defense Minister aims to increase annual defense spending to over €60 billion starting in 2025 [4] Investment Activities - Uber is committing an additional $100 million equity investment in WeRide [8] Domestic Developments - The Chinese government is enhancing financial support for small and micro enterprises in sectors like accommodation, catering, and tourism [9] - The China Securities Regulatory Commission has issued a plan to promote high-quality development of public funds, linking fund manager compensation to performance [9] Market Strategies - Everbright Securities indicates signs of improvement in tariff issues and anticipates more favorable domestic policies, suggesting a potential upward trend in the market [10] - Huawei is set to launch its HarmonyOS-based PC, marking a significant entry into the desktop operating system market [10] - XPeng Motors is considering an IPO for its flying car subsidiary, XPeng Heavens, potentially in Hong Kong or the US [10][11] Robotics and AI - Lenovo has launched the first personal and enterprise "super intelligent agent" at the TechWorld conference [12] - The world humanoid robot competition will take place in Beijing in August 2025, marking a significant event in the robotics industry [13] Company Announcements - Hainan Development plans to acquire a 51% stake in Wangying Technology for ¥450 million [16] - Qingdao Beer intends to acquire 100% of Jimo Yellow Wine to enhance product lines and market channels [16] - Xinjian Mining's acquisition of Xinjiang Meisheng Mining is aimed at expanding its resource base [16] - Baijia Shenzhou reported a turnaround from loss to profit in Q1, driven by sales growth of its self-developed products [17] Stock Performance - Notable stock performances include Tongyi Aerospace up 25.11%, Changshan Pharmaceutical up 20.02%, and Huawei Harmony up 14.01% [18] Upcoming Market Events - Several companies will have their shares unlocked, including Guotai Haitong with a market value of ¥4.83 billion on May 8 [19][20]

Group 1: Pharmaceutical Quality Control - Jiangsu Province achieved a drug inspection pass rate of 99.78% in 2024, with 3,937 varieties and 18,310 batches inspected [1] - Regulatory authorities took immediate actions against non-compliant products, including sealing, halting sales, and requiring recalls [1] Group 2: Healthcare Financing and Efficiency - Lanzhou City launched an instant settlement system for medical insurance funds, reducing the settlement period from 30 days to 1 day, significantly easing financial pressure on medical institutions [2] - As of May 6, 2023, the system processed instant settlements amounting to 3.71 million yuan [2] Group 3: Drug Approvals and Developments - BeiGene's new drug BGB-45035 received clinical trial approval for treating nodular prurigo, targeting IRAK4 [4] - AstraZeneca's BTK inhibitor Calquence, in combination with bendamustine and rituximab, was approved in the EU for treating adult patients with MCL [5] Group 4: Biopharmaceutical Financing - In April 2025, the global biopharmaceutical sector completed 139 financing activities, raising over $3.1 billion, with 20 companies securing individual financing exceeding $50 million [7] Group 5: Market Performance - Novo Nordisk reported Q1 2025 revenue of 78.09 billion Danish kroner (approximately $11.22 billion), an 18% year-on-year increase, with semaglutide generating $8.01 billion [8] - The global GLP-1 drug market is projected to exceed $60 billion in 2025, with Novo Nordisk and Eli Lilly competing for market share [8] Group 6: Strategic Partnerships - Eli Lilly entered a significant licensing agreement with Alchemab Therapeutics for the ALS drug ATLX-1282, valued at up to $415 million [10] Group 7: Market Support Initiatives - Hong Kong Stock Exchange launched a "Tech Innovation Line" to assist tech and biotech companies in the listing process [12]

Macro News - The People's Bank of China announced a reduction in the reserve requirement ratio by 0.5 percentage points and a decrease in policy interest rates by 0.1 percentage points, along with adjustments to structural monetary policy tools [3] - The National Financial Regulatory Administration plans to enhance the role of insurance funds as patient and long-term capital, introducing measures to support capital market stability and activity [3] - The China Securities Regulatory Commission (CSRC) is set to implement reforms for the Sci-Tech Innovation Board and the Growth Enterprise Market, and will revise the management measures for major asset restructuring of listed companies [3] Industry News - China's gold reserves reached 73.77 million ounces at the end of April, marking an increase of 70,000 ounces and continuing a six-month trend of gold accumulation [6] - The CSRC has issued an action plan to promote the high-quality development of public funds, which includes adjusting management fees and establishing a performance-based assessment system for fund managers [6] - Shanghai announced a reduction in personal housing provident fund loan rates, effective from May 8, 2025, with rates for first-time homebuyers set at 2.1% for loans under five years and 2.6% for loans over five years [6] Company News - Geely Automobile announced a proposal to privatize Zeekr at a price of $2.57 per share [9] - Kweichow Moutai reported a share buyback of 934,800 shares in April, with a total expenditure of 1.44 billion yuan [10] - BeiGene reported a net loss of 94.5 million yuan in the first quarter [10] - Qingdao Beer plans to acquire 100% equity of Jimo Huangjiu [10] - Hive Storage confirmed that its LPDDR4X and eMMC storage products are being used in the Go2 intelligent robotic dog developed by Yushu Technology [10]

Core Viewpoint - The announcement presents the preliminary financial data for BeiGene, Ltd. for the first quarter of 2025, highlighting significant revenue growth driven by the sales of its self-developed products, particularly Brukinsa and Tislelizumab, while also noting a net loss for the period [4][13]. Financial Data Summary - In Q1 2025, product revenue reached 7.985 billion RMB, a year-on-year increase of 49.9% [4] - Total operating revenue for Q1 2025 was 8.048 billion RMB, up 50.2% compared to the previous year [4] - The net profit attributable to the parent company was -0.095 billion RMB [4] - Total assets at the end of the reporting period were 42.126 billion RMB, a decrease of 1.7% from the beginning of the period [4] - Shareholder equity attributable to the parent company increased by 4.3% to 25.206 billion RMB [4] Product Performance - Global sales of Brukinsa totaled 5.692 billion RMB in Q1 2025, reflecting a 63.7% year-on-year growth [5] - In the U.S., sales of Brukinsa reached 4.041 billion RMB, a 61.9% increase, driven by demand growth, particularly in chronic lymphocytic leukemia (CLL) [5] - European sales of Brukinsa were 0.836 billion RMB, up 75.4%, attributed to market share gains in major European markets [5] - In China, Brukinsa sales amounted to 0.590 billion RMB, a 43.1% increase, maintaining a leading market position in the BTK inhibitor segment [5] Clinical Development and Regulatory Progress - Brukinsa is the most widely approved BTK inhibitor globally, with ongoing clinical trials in over 30 countries and regions [7] - The product has received approvals for multiple indications in the U.S., EU, and China, with plans for further regulatory submissions in 2025 [7] - Tislelizumab sales reached 1.245 billion RMB in Q1 2025, a 19.3% increase, driven by new indications and increased patient demand in China [6] - Tislelizumab has been approved for 14 indications in China, with a strong market presence in the PD-1 segment [6] Strategic Initiatives - The company is advancing its pipeline of next-generation products and emphasizes a rapid concept validation strategy in its global clinical development [9] - The internal R&D team consists of approximately 3,700 personnel, focusing on high-quality data generation and resource optimization [9] - The company plans to present data on various products, including antibody-drug conjugates and multi-specific antibodies, throughout 2025 [9] Corporate Developments - The company received shareholder approval to adopt a new English name, BeOne Medicines Ltd., and plans to relocate its registered office to Switzerland [12] - Recent patent decisions have favored the company, enhancing its intellectual property position [12] - An investor R&D day is scheduled for June 26, 2025, to showcase developments in breast cancer and broader solid tumor treatment portfolios [12]

Core Viewpoint - BeiGene reported strong revenue growth in Q1 2025, with product revenue increasing by 49.9% year-on-year, driven by sales of its key products [1] Group 1: Financial Performance - In Q1 2025, BeiGene's product revenue reached 7.985 billion yuan, while total revenue was 8.048 billion yuan, reflecting a year-on-year increase of 49.9% and 50.2% respectively [1] - The net profit attributable to the parent company was -95 million yuan, indicating a significant narrowing of losses compared to the previous year [1] Group 2: Product Performance - The global sales of the BTK inhibitor, Bruton’s Tyrosine Kinase (Zebutinib), totaled 5.692 billion yuan in Q1, marking a 63.7% year-on-year increase, with approximately 71% of sales coming from the U.S. market [1] - The PD-1 monoclonal antibody, Tislelizumab, achieved sales of 1.245 billion yuan in China, growing by 19.3% year-on-year, although this growth rate has slowed compared to the previous year's 32.8% [2] - The sales growth rate for Bruton’s Tyrosine Kinase in China was 43.1%, an increase of 17.6 percentage points from the previous year's 25.5% [2] Group 3: Future Prospects - BeiGene is advancing its pipeline of next-generation self-developed products, with plans for multiple concept validation data readouts in antibody-drug conjugates, multispecific antibodies, and targeted protein degraders [2] - Key milestones are expected in 2025, including data readouts for the Phase II clinical trial of Sonrotoclax for relapsed/refractory mantle cell lymphoma, with a global accelerated marketing application anticipated in the second half of 2025 [2]

Core Viewpoint - BeiGene achieved its first quarterly profit under GAAP in Q1 2025, maintaining its previous financial guidance while experiencing significant revenue growth [1][2]. Financial Performance - In Q1 2025, BeiGene reported revenue of 8.048 billion RMB, a year-on-year increase of 50.2% [1]. - Product revenue contributed 7.985 billion RMB, driven by sales growth of self-developed products such as Brukinsa (Zebutinib) and Tislelizumab [1]. - The company achieved a GAAP profit of 1.27 million USD, marking a shift from losses to profitability in its A-share financial data, with a net profit attributable to shareholders of -0.095 billion RMB [1]. Product Sales - Brukinsa generated global sales of 5.692 billion RMB in Q1, reflecting a 63.7% year-on-year increase, with U.S. sales reaching 4.041 billion RMB, up 61.9% [1]. - In Europe, Brukinsa sales totaled 0.836 billion RMB, a 75.4% increase year-on-year [1]. - Tislelizumab sales amounted to 1.245 billion RMB in Q1, a 19.3% increase, primarily due to new patient demand from recently approved indications in China [2]. Strategic Outlook - The company plans to expand Brukinsa's global regulatory registration projects, expecting FDA and EC approvals for new tablet formulations in H2 2025 [2]. - Tislelizumab is anticipated to receive EC approval for new indications in non-small cell lung cancer and nasopharyngeal carcinoma in 2025 [2]. - BeiGene aims to maintain its financial guidance for 2025, projecting total revenue between 35.2 billion RMB and 38.1 billion RMB, with positive operating profit and cash flow from operations [3]. R&D Progress - BeiGene is making significant advancements in its pipeline for late-stage hematologic and solid tumors, with expected data readouts in antibody-drug conjugates, multispecific antibodies, and targeted protein degraders [3].

Investment Rating - The report maintains an "Outperform" rating for BeiGene with a target price of HK$182.35, while the current price is HK$141.00 [2][6]. Core Insights - In Q1 2025, BeiGene achieved revenue of USD1.12 billion, a year-on-year increase of 48.6%, with product revenue at USD1.11 billion. The net income attributable to shareholders was USD1.27 million, marking the first quarterly recurring business profit under US GAAP [3][13]. - The growth in overseas revenue, particularly from BRUKINSA, was a significant driver for the company's turnaround to profitability [4][14]. - The management has maintained its full-year revenue guidance of USD4.9 billion to USD5.3 billion, indicating confidence in future performance [3][13]. Financial Performance Summary - Revenue projections for the upcoming years are as follows: USD5.01 billion in FY2025, and USD6.03 billion in FY2026, reflecting growth rates of 31% and 20% respectively [11]. - The net profit is expected to turn positive in FY2025 with a forecast of USD34 million, and further increase to USD390 million in FY2026, showing a significant recovery from previous losses [11]. - Gross profit margin (GPM) is projected to improve slightly from 84.7% in FY2025 to 85.0% in FY2026 [11]. Product Performance - BRUKINSA generated revenue of USD790 million in Q1 2025, a year-on-year increase of 62.1%. The U.S. sales reached USD563 million, while European sales were USD116 million, indicating strong international demand [4][14]. - The report highlights that BRUKINSA's terminal sales in hospitals increased by 9.2% quarter-on-quarter, suggesting continued growth potential [4][14]. Expense Management - The report notes continuous optimization of expense ratios, with a gross profit margin of 85.2% in Q1 2025, up by 1.9 percentage points year-on-year. R&D expenses were USD482 million, with a reduced R&D expense ratio of 43.1% [5][15]. - Operating profit improved to USD11.1 million in Q1 2025, compared to a loss of USD261 million in the same quarter of the previous year [5][15].

Core Insights - BeiGene, Ltd. reported $1.12 billion in revenue for Q1 2025, marking a 48.6% year-over-year increase and an EPS of $1.22 compared to -$2.41 a year ago [1] - The revenue matched the Zacks Consensus Estimate of $1.12 billion, resulting in a slight surprise of -0.65%, while the EPS exceeded expectations with a surprise of +271.83% [1] Financial Performance - Product revenue totaled $1.11 billion, slightly below the estimated $1.12 billion by analysts [4] - Key product revenues included: - BRUKINSA (Zanubrutinib): $791.66 million vs. $820.07 million estimated - Tislelizumab: $171.16 million vs. $171.33 million estimated - XGEVA: $70.42 million vs. $56.55 million estimated - Other: $17.90 million vs. $14.28 million estimated - POBEVCY: $13.75 million vs. $16.11 million estimated - BLINCYTO: $23.91 million vs. $20.42 million estimated - KYPROLIS: $19.73 million vs. $16.51 million estimated - Collaboration revenue was $8.75 million, exceeding the $6.49 million estimate [4] Market Performance - BeiGene's shares have returned +15.4% over the past month, outperforming the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Group 1 - Geely Auto proposed to privatize Zeekr with an offer of $2.57 per share, representing a 13.6% premium over the last trading price [1] - The offer also includes a premium of 20.0% over the volume-weighted average price of the last 30 trading days [1] - Geely currently holds approximately 65.7% of Zeekr's issued share capital [1] Group 2 - Sun Group announced the U.S. Department of Commerce has revoked its investigation into steel wheels made in Vietnam using Chinese components [2] - The revocation is expected to positively impact the company's export orders and future overseas business layout [2] Group 3 - Qingdao Beer plans to acquire 100% equity of Jimo Yellow Wine for a total consideration of RMB 665 million [3] - The acquisition aims to enhance industry synergy, competitiveness, and expand product lines and market channels [3] Group 4 - BeiGene reported a net loss of 94.503 million yuan in Q1 2025, a reduction in loss compared to the previous year [4] - The company achieved total revenue of 8.048 billion yuan, a year-on-year increase of 50.2%, driven by sales growth of its self-developed products [4] Group 5 - Daqin Railway reported a 0.99% year-on-year increase in cargo transportation volume for April [5] - Shaanxi Coal's self-produced coal sales reached 13.1033 million tons in April, up 0.76% year-on-year [5] Group 6 - Shennong Group sold 227,300 pigs in April, marking a 32.85% year-on-year increase [6] - Poly Developments reported a 25.44% year-on-year decrease in contracted sales amounting to 24.622 billion yuan in April [6] Group 7 - Hainan Development plans to acquire 51% equity of Wangying Technology [7] - Huafeng Measurement Control's shareholders plan to transfer 2.9% of shares at an initial price of 121.42 yuan per share [7] Group 8 - Various companies reported significant stock price fluctuations, with Changshan Pharmaceutical's injection not yet on the market and facing regulatory uncertainties [8] - The company is in the professional review stage for its diabetes treatment application [8]