Core Viewpoint - Rongchang Biologics (688331) announced its first share buyback on January 20, 2023, indicating confidence in its stock value and commitment to returning capital to shareholders [1] Group 1: Share Buyback Details - The company repurchased 194,100 shares, which represents 0.0344% of its total share capital [1] - The highest price paid for the shares was 103.78 yuan per share, while the lowest price was 102.17 yuan per share [1] - The total amount spent on the buyback was 20.004 million yuan, excluding transaction fees [1] Group 2: Buyback Plan Status - The buyback has reached the lower limit of the planned total expenditure and has not exceeded the upper limit [1] - The implementation of the buyback plan is now complete [1]

荣昌生物制药（烟台）股份有限公司 证券代码：688331 证券简称：荣昌生物 公告编号：2026-004 荣昌生物制药（烟台）股份有限公司（以下简称"公司"）于 2025 年 12 月 15 日召开第二届董事会第三十二次会议，审议通过了《关于以集中竞价交易方式回 购公司股份方案的议案》。同意公司使用自有资金和/或自筹资金以集中竞价交易方 式回购公司已发行的部分人民币普通股（A 股）股票，拟回购资金总额不低于人 民币 2,000 万元（含）且不超过人民币 4,000 万元（含），回购的股份将在未来合 适的时机用于员工持股计划或股权激励，回购价格不超过人民币 95 元/股（含）， 回购股份期限为自公司董事会审议通过本次回购方案之日起 12 个月内。 具体内容详见公司于 2025 年 12 月 16 日、2025 年 12 月 23 日在上海证券交易 所网站（www.sse.com.cn）披露的《荣昌生物制药（烟台）股份有限公司关于以集 关于首次回购股份暨回购股份方案实施完成的公告 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、准确性和完整性承担法律责任。 重 ...

Summary of Key Points Core Viewpoint - Rongchang Biologics (688331.SH) has completed its share repurchase program, acquiring a total of 194,144 shares, which represents 0.0344% of the company's total share capital, with a total expenditure of approximately RMB 20.004 million [1] Group 1: Share Repurchase Details - The share repurchase was conducted through the Shanghai Stock Exchange trading system using a centralized bidding method [1] - The highest price for the repurchased shares was RMB 103.78 per share, while the lowest price was RMB 102.17 per share [1] - The repurchase has reached the lower limit of the total repurchase funds and has not exceeded the upper limit [1]

Core Viewpoint - The company has successfully completed its share repurchase program, acquiring a total of 194,100 shares, which represents 0.0344% of its total share capital of 564 million shares [1] Group 1: Share Repurchase Details - The share repurchase was conducted on January 20, 2026, through the Shanghai Stock Exchange via a centralized bidding trading method [1] - The highest transaction price for the repurchased shares was 103.78 RMB per share, while the lowest was 102.17 RMB per share [1] - The total amount spent on the share repurchase was 20.004 million RMB, excluding transaction fees [1] Group 2: Completion of Repurchase Program - The company has reached the lower limit of the repurchase fund total and has not exceeded the upper limit, indicating that the repurchase plan has been fully implemented [1]

Core Viewpoint - Rongchang Biotech announced the completion of its first share buyback on January 20, 2026, through the Shanghai Stock Exchange, repurchasing 194,144 shares, which represents 0.0344% of the company's total share capital, at a price range of 102.17 to 103.78 yuan per share, totaling 20.004 million yuan excluding transaction fees [1] Summary by Categories Share Buyback Details - The company executed a share buyback of 194,144 shares, accounting for 0.0344% of its total share capital [1] - The buyback price ranged from 102.17 yuan to 103.78 yuan per share [1] - The total amount spent on the buyback was 20.004 million yuan, which is within the anticipated range of 20 million to 40 million yuan [1] Purpose and Impact - The repurchased shares will be used for employee stock ownership plans or equity incentives [1] - The buyback is not expected to have a significant impact on the company's operational activities, financial status, or shareholding structure [1]

Core Viewpoint - The Chinese innovative drug business development (BD) for overseas licensing reached a record high of $135.655 billion in total transaction value for 2025, with a significant increase in upfront payments and transaction numbers compared to previous years [1][2]. Group 1: Market Performance - The China Securities Hong Kong Stock Connect Pharmaceutical and Health Comprehensive Index (930965) showed mixed performance among its constituent stocks, with Times Angel leading at a 4.83% increase [1]. - The Hong Kong pharmaceutical ETF (159718) was quoted at 0.96 yuan [1]. Group 2: Industry Developments - The innovative drug BD overseas licensing transactions in China for 2025 totaled $135.655 billion, with upfront payments of $7 billion and 157 transactions, all marking historical highs [2]. - Notable collaborations include Rongchang Biopharma's PD-1/VEGF dual antibody RC148 receiving a $650 million upfront payment from AbbVie, and Yilian Biopharma's partnership with Roche on B7H3-targeted ADC [2]. - GSK's Bepirovirsen for chronic hepatitis B showed positive results in Phase III trials, and Arrowhead announced advancements in RNAi therapies for weight loss, validating the clinical value of small nucleic acid drugs [2]. Group 3: Investment Outlook - The 44th Annual J.P. Morgan Healthcare Conference revealed positive updates from leading global pharmaceutical companies, with significant BD transactions and improved forecasts from CXO companies like WuXi AppTec [2]. - The global pharmaceutical industry remains robust, with innovation in drugs and medical devices continuing to be the main investment theme [2].

Investment Rating - The report maintains a "Recommended" investment rating for the pharmaceutical industry as of January 19, 2026 [1] Core Insights - 2025 marked a significant year for Chinese innovative drugs going global, with a total transaction amount of $135.655 billion, including $7 billion in upfront payments and 157 deals, setting historical highs. The trend continues into 2026, with notable licensing agreements from companies like Yilian Biotech and Rongchang Biotech, indicating strong global competitiveness for Chinese innovative drugs [2] - Major companies are increasingly investing in the small nucleic acid field, with significant acquisitions and clinical approvals. For instance, China National Pharmaceutical Group acquired Hangzhou Hejiya Biopharmaceutical for 1.2 billion RMB, while international firms like Novartis and GSK are also advancing in this area [3] - The GLP-1 market is expected to grow despite new pricing systems, with ongoing collaborations and new product launches anticipated in 2026. The market for GLP-1 drugs is projected to remain robust due to the large patient population for weight loss and diabetes [4] - The oral autoimmune drug market is gaining attention, with promising results from Takeda's new TYK2 inhibitor for psoriasis. Other domestic companies are also advancing in this space, exploring new targets for oral small molecules [5] - The brain-computer interface sector is poised for industrialization, with companies like Neuralink set to produce devices in 2026. Domestic advancements and regulatory support are enhancing the potential for this technology in medical applications [6] - The ZAP-X radiation therapy device is expected to capture a significant market share in China, with rapid growth projected in non-invasive tumor radiation treatment, driven by increasing clinical recognition and adoption [8] Summary by Sections Industry Trends - The pharmaceutical sector is witnessing a resurgence in interest towards innovative drugs, with a notable increase in the innovative drug index by 8.97% since early January 2026, outperforming the CSI 300 index by 6.77 percentage points [2] Company Recommendations - Recommended companies include: - **Yuekang Pharmaceutical** and **Sunshine Nuohua** in the small nucleic acid space - **Yahong Pharmaceutical** and **Yifang Biotechnology** in the autoimmune sector - **Zhongsheng Pharmaceutical** in the GLP-1 market - **Baiyang Pharmaceutical** for ZAP-X radiation therapy - **Meihao Medical** for brain-computer interface technology [10] Market Opportunities - The non-invasive tumor radiation treatment market is projected to grow from 27.2 billion RMB in 2018 to 59.4 billion RMB by 2024, with a compound annual growth rate of 13.9% [8]

Group 1 - The Hong Kong Innovation Drug ETF (159570) has experienced a 2.5% decline for three consecutive days, with a trading volume exceeding 800 million yuan, and has attracted over 1 billion yuan in the last five days [1][3] - As of January 16, the latest scale of the Hong Kong Innovation Drug ETF (159570) has surpassed 26.2 billion yuan, leading its peers in the same category [1] - The majority of the weighted stocks in the ETF's index have shown negative performance, with notable declines including Kelun-Bio down over 5%, Innovent Biologics and Hansoh Pharmaceutical down over 4%, and others down over 3% [3][4] Group 2 - The 44th JPMorgan Healthcare Conference took place from January 12 to 15, featuring several Chinese innovative pharmaceutical companies, including WuXi AppTec and BeiGene, among others [5] - Huatai Securities noted that the JPM conference and the upcoming annual report cycle in February could serve as catalysts for the market, which is currently at a relative bottom, with expectations for new highs in the innovative drug sector [5] - Zhongtai Securities highlighted multiple catalysts in the pharmaceutical sector, including significant data disclosures from multinational corporations and various business development deals, indicating a positive outlook for the innovative drug industry [5][6] Group 3 - The 2026 JPMorgan Conference is expected to showcase Chinese innovative drugs as a global highlight, with over 20 Chinese pharmaceutical companies participating [7] - Companies like HengRui are projected to see a 25%+ growth in innovative drug revenue by 2026, with several key drugs and indications expected to be approved in the next two years [7] - Notable developments include RC148's licensing deal worth up to 5.6 billion USD between Rongchang Bio and AbbVie, and various clinical trial advancements from companies like Summit Therapeutics and Eifang Bio [8]

Core Viewpoint - The recent exclusive licensing agreement between Rongchang Biologics and AbbVie for the dual-specific antibody drug RC148, targeting PD-1/VEGF, highlights the competitive landscape in the oncology drug market, with significant financial implications for both companies [1][5]. Group 1: Licensing Agreement Details - Rongchang Biologics has entered into an exclusive licensing agreement with AbbVie for RC148, which is currently in Phase II clinical trials [1]. - The deal includes an upfront payment of $650 million and potential milestone payments up to $4.95 billion, along with tiered royalties on net sales, bringing the total potential value of the agreement to $5.5 billion [1]. - Following the announcement, Rongchang Biologics' stock surged, with a 20% increase in A-shares and a 7.87% increase in Hong Kong shares [1]. Group 2: Market Context and Comparisons - The PD-1/VEGF target has seen multiple drugs developed, with over five similar drugs already in the market, leading to skepticism about the market share for later entrants [1][4]. - Other Chinese biotech firms have also engaged in significant licensing deals for PD-1/VEGF drugs, with notable transactions including a $500 million upfront payment from Summit to Kanyos Biologics and a $1.25 billion upfront payment from a partnership involving 3SBio and Pfizer [4]. - Despite being ranked lower in the market, Rongchang Biologics' deal value is comparable to that of Kanyos Biologics, raising questions about the valuation of later-stage products [5]. Group 3: Future Prospects and Trends - There is an expectation for continued licensing transactions in the PD-1/VEGF space, driven by efficacy, different indications, and combination therapies [8]. - Companies with PD-1/VEGF candidates that have not yet been licensed are actively seeking opportunities, with the potential for significant deals depending on product data and market conditions [8]. - Major multinational pharmaceutical companies, including Eli Lilly, Novartis, and AstraZeneca, have not yet announced new PD-1/VEGF acquisitions, indicating potential future market activity [9].

Group 1: WuXi AppTec - WuXi AppTec expects a net profit of approximately RMB 19.15 billion for the year 2025, representing a year-on-year growth of about 102.6% [1] - The company anticipates total revenue of around RMB 45.46 billion for 2025, reflecting a year-on-year increase of approximately 15.8%, with a 21.4% growth in revenue from continuing operations [1] - Basic earnings per share are projected to be around RMB 6.70, which is an increase of approximately 104.3% compared to the previous year [1] Group 2: Rongchang Biologics - Rongchang Biologics has signed an exclusive licensing agreement with AbbVie for RC148, granting AbbVie exclusive rights for development, production, and commercialization outside Greater China [2] - The agreement includes an upfront payment of USD 650 million and potential milestone payments up to USD 4.95 billion, along with double-digit royalties on net sales outside Greater China [2] - This licensing deal is expected to accelerate the global development and commercialization of RC148, enhancing the company's brand value and international influence [2] Group 3: National Medical Insurance Administration - The sixth batch of centralized procurement for high-value medical consumables has been conducted, with 202 out of 496 products winning bids, ensuring a diverse supply of mainstream products [3][4] - The procurement process emphasizes principles such as maintaining clinical stability, ensuring quality, and preventing price undercutting, with a focus on grouping products based on clinical demand [4] - The procurement includes drug-coated balloons and urological intervention consumables, with all 42 products from 32 companies in the drug-coated balloon category winning bids [3][4] Group 4: New Drug Listings and Market Expansion - As of January 11, over 11,000 designated medical institutions have equipped new drugs added to the medical insurance directory for 2025, including 105 negotiated drugs and 19 commercial insurance innovative drugs [5][6] - Among the 105 new negotiated drugs, 88 have available institution information, with significant coverage across provinces, indicating a strong distribution network [6] - The approval of insulin glargine injection by the European Commission marks a significant entry for Gan Li Pharmaceutical into the European market [7] Group 5: WuXi Biologics - WuXi Biologics' subsidiary, WuXi HeLian, has made a conditional cash offer to acquire all issued shares of Dongyao Pharmaceutical at HKD 4 per share, representing a premium of approximately 99% over the last undisturbed closing price [8] - The total consideration for the acquisition could reach approximately HKD 3.1047 billion, with the offer contingent on obtaining at least 60% of the voting rights [8] - This acquisition aims to expand production capacity and enhance the project and client portfolio in the ADC CDMO sector [8] Group 6: Sanofi Biologics - Sanofi Biologics expects a net profit for 2025 to be between RMB 152 million and RMB 190 million, indicating a year-on-year growth of 204.42% to 280.53% [9] - The projected net profit excluding non-recurring gains is expected to be between RMB 149 million and RMB 186 million, reflecting a significant increase compared to the previous year [9] - The growth is attributed to the company's strategic focus on expanding production capacity and increasing market demand for peptide raw materials [9]