Core Viewpoint - Yuekang Pharmaceutical is facing a significant decline in performance, prompting the company to initiate an H-share listing to diversify its financing channels and enhance its international brand image amidst ongoing financial difficulties [1][4]. Company Operations - Yuekang Pharmaceutical, established in 2001 and headquartered in Beijing, operates as a pharmaceutical group involved in new drug research and development, production, distribution, and international trade, with nine core R&D platforms [2][9]. - The company went public on the Shanghai Stock Exchange's Sci-Tech Innovation Board on December 24, 2020, raising 2.192 billion yuan for various projects, but has struggled with project progress and has had to adjust its plans multiple times [3][10]. Financial Performance - The company has experienced a continuous decline in net profit over the past three years, with decreases of 38.53% in 2022, 44.87% in 2023, and 33.05% in 2024 [5][12]. - In the first three quarters of 2025, Yuekang reported total revenue of 1.759 billion yuan, a year-on-year decrease of 41.20%, and a net loss of 148 million yuan compared to a profit of 210 million yuan in the same period the previous year [7][14]. Recent Developments - The company announced plans to issue H-shares and list on the Hong Kong Stock Exchange, which requires approval from shareholders and regulatory bodies [2][9]. - Yuekang's cash flow situation has worsened, with a net cash flow from operating activities of 168 million yuan, down 60.9% year-on-year, and a net increase in cash and cash equivalents of -256 million yuan, a drop of 338.24% [10]. Market Challenges - Yuekang's core product, Ginkgo biloba extract injection, faced controversy over pricing practices, leading to a significant revenue drop of 36% in Q4 2024 and a net loss of 86.01 million yuan [4][11]. - The company has incurred high marketing expenses, totaling 7.373 billion yuan from 2021 to 2024, with 97% of this amount attributed to market promotion [14]. Shareholder Issues - The controlling shareholder, the Yu family, has faced difficulties, including the judicial auction of 26.5 million shares, which sold for 486 million yuan [8][15].

Group 1 - Haichuang Pharmaceutical increased by over 10% [1] - Frontier Biotech rose by over 8% [1] - Yuekang Pharmaceutical, Rejing Biotech, Huisheng Biotech, and Zhongsheng Pharmaceutical also experienced gains [1]

Core Insights - The weight loss sector is entering a market explosion phase, driven by increasing public health awareness and significant clinical demand for weight loss solutions [2][5] - Current leading drugs, Semaglutide and Tirzepatide, are dominating the market due to their remarkable weight loss effects, with expectations that they will claim the title of "king of drugs" in the pharmaceutical field by 2025 [2][5] - However, mainstream weight loss drugs exhibit notable shortcomings, particularly GLP-1 single-target and dual-target peptide drugs, which primarily suppress appetite to reduce food intake, potentially leading to mental health side effects such as depression and emotional distress [2][5] Industry Challenges - The core issue in healthy weight loss is the need to reduce fat without losing muscle mass, yet GLP-1 drugs often result in muscle loss during fat reduction, which can impair bodily functions and lead to weight regain, contradicting the goal of healthy weight loss [2][5] - Despite some exploration in the development of multi-target GLP-1 drugs, these fundamental issues have not been adequately addressed [2][5] Innovative Solutions - An innovative solution proposed is the development of small nucleic acid drugs, which show unique advantages over traditional peptide drugs by potentially allowing for "weight loss without muscle loss" [2][5] - Some small nucleic acid drugs may even promote muscle growth while facilitating weight loss, effectively circumventing the core shortcomings of traditional weight loss medications [2][5]

Group 1 - TaiLong Pharmaceutical's controlling shareholder has made significant progress in planning the transfer of company shares, with an agreement reached to transfer 8.73% of the company's total shares to Jiangyao Holdings at a price of 11.043 yuan per share, totaling 553 million yuan [1] - The transfer of control to Jiangyao Holdings is expected to inject resources into TaiLong Pharmaceutical's core business, although it is subject to government approval and subsequent integration actions [1] Group 2 - Minsheng Health announced its first share buyback of 82,900 shares at a maximum price of 15.67 yuan per share, totaling 1.29 million yuan, signaling recognition of the company's value and stability in stock price [2] - If Minsheng Health increases the buyback scale, it may further boost market confidence and solidify its long-term development foundation [2] Group 3 - Gaoguang Pharmaceutical has submitted its listing application to the Hong Kong Stock Exchange, with a post-C round financing valuation exceeding 2.462 billion yuan after raising 162 million yuan [3] - The company aims to accelerate research and development with capital support, although details on its core pipeline remain undisclosed [3] Group 4 - Yuekang Pharmaceutical plans to issue shares overseas (H shares) and list on the Hong Kong Stock Exchange to enhance its comprehensive competitiveness and international brand image [4] - This move aligns with the trend of globalization for pharmaceutical companies, and attention should be paid to the timing of the issuance and market feedback [4]

Investment Rating - The report maintains a "Recommended" investment rating for the pharmaceutical industry [1] Core Insights - The 2025 National Medical Insurance and Commercial Health Insurance Innovation Drug Catalogs were released, adding 114 new drugs to the national insurance list, with a success rate of 88%, significantly higher than the previous year's 76% [2] - The first three quarters of 2025 saw a notable recovery in domestic innovative drug financing, with 324 financing events totaling $5.51 billion, a 67.6% increase year-on-year [3] - The flu positivity rate has not peaked yet, with a significant increase in flu cases, indicating a growing market for flu medications [4] - The report highlights breakthroughs in dual-target and new-target opportunities in the autoimmune field, with several companies making significant advancements [5] - There is a focus on inhalation formulations in respiratory diseases, with new drugs showing promising results [6] - Progress in liver-targeted small nucleic acids is noted, with companies like Arrowhead Pharmaceuticals making strides in this area [7] Summary by Sections 1. National Medical Insurance and Commercial Insurance Innovation Drug Catalogs - The 2025 catalog added 114 new drugs, including 50 innovative drugs, with a success rate of 88% [2] 2. Financing Trends and CXO Order Changes - Innovative drug financing events increased by 5.2% year-on-year, with total financing amounting to $5.51 billion [3] 3. Flu Positivity Rates - The flu positivity rate reached 51.1%, indicating a rising demand for flu medications [4] 4. Autoimmune Field Developments - Significant partnerships and advancements in dual-target drugs for autoimmune diseases were reported [5] 5. Inhalation Formulations in Respiratory Diseases - New inhalation drugs are showing positive clinical results, indicating a shift in treatment approaches [6] 6. Progress in Liver-Targeted Small Nucleic Acids - Arrowhead Pharmaceuticals achieved a milestone payment for its innovative RNA therapy, expanding its research pipeline [7] 7. Stock Recommendations - The report recommends stocks in various sectors, including inhalation formulations, small nucleic acids, and innovative drugs, highlighting specific companies for investment [8]

Group 1: Market Overview - The Hong Kong stock market showed a collective rebound with the Hang Seng Index rising approximately 0.6%, the Hang Seng China Enterprises Index increasing about 1%, and the Hang Seng Tech Index up around 0.8% [2][3] - Market sentiment improved significantly compared to previous days, with total market turnover rising to approximately 210.4 billion HKD and the short-selling amount on the main board decreasing to about 15.74% of total turnover [2] - Southbound capital flows remained weak, with net inflows from northbound trading at around 1.3 billion HKD on Friday [2] Group 2: Sector Performance - Resource and cyclical stocks led the market rally, with rare earth, non-ferrous metals, and gold stocks performing well due to the implementation of export licenses and increased copper stockpiling by global commodity traders [3] - The financial sector also played a crucial role in driving the market upward, with insurance stocks, Chinese brokerage firms, and domestic banks generally showing strong performance [3] - Energy-related sectors, including electric power equipment, wind power, and nuclear power, were active, reflecting ongoing interest in energy transition and equipment investment opportunities [3] Group 3: Economic Indicators - The U.S. core PCE year-on-year growth rate fell to 2.8%, providing strong support for the Federal Reserve's potential interest rate cut [4] - Personal consumption expenditures in the U.S. showed almost no growth in September, indicating a cooling consumer market, with significant declines in spending on durable and non-durable goods [5] - The income distribution in the U.S. is becoming polarized, with lower-income households reducing spending while high-income groups maintain purchasing power due to asset appreciation [5] Group 4: Industry Insights - The small nucleic acid drug sector is emerging as a significant investment theme for 2026, characterized by rapid global market growth and advantages such as broad target coverage and high clinical trial success rates [7] - The global small nucleic acid drug market is projected to grow from 2.7 billion USD in 2019 to 5.7 billion USD in 2024, with a compound annual growth rate of 16.2% [7] - The market for siRNA drugs is expected to increase its share from 6.2% in 2019 to 44.5% in 2024, driven by advancements in delivery technologies and expanding indications [7] Group 5: Collaboration and Market Dynamics - The small nucleic acid field is becoming a hub for business development collaborations, with nearly 100 deals in the past three years and increasing transaction values [8] - Leading companies in the small nucleic acid market, such as Alnylam and Ionis, are setting the pace for global technological development, with Alnylam reporting a 149% year-on-year revenue increase in Q3 2025 [9] - Domestic pharmaceutical companies are also focusing on small nucleic acid drugs, with several candidates in clinical trials targeting conditions like high cholesterol [9] Group 6: Investment Recommendations - The report suggests that small nucleic acid drugs may become a major investment theme next year, with opportunities in both domestic and international markets [10] - Key companies to watch include overseas leaders like Alnylam, Arrowhead, and Ionis, as well as domestic firms like CSPC Pharmaceutical Group and Hengrui Medicine [10]

悦康药业，成立于2001年，是一家集新药研发、药品生产、流通销售及国际贸易于一体的医药集团企 业，目前已形成核酸药物靶点发现平台、多肽药物开发平台、缓控释制剂技术平台等九大核心研发平 台，涵盖核酸药、多肽药、中药创新药以及高端化药等领域，并相继组建了头孢药物晶型研究国家地方 联合工程实验室、心脑血管北京市工程研究中心等，建立了悦康集团院士专家工作站、博士后科研工作 站、博导工作站等完善的研发体系。2023年7月，完成国内首家自主知识产权LNP阳离子脂质辅料 （YK-009）的备案登记，是国内外少数可规模化生产自主知识产权阳离子脂质辅料的药企。 (截图来自雪球) 悦康药业表示，公司将充分考虑现有股东的利益和境内外资本市场的情况，在股东会决议有效期内选择 适当的时机和发行窗口完成本次发行H股并上市。 悦康药业指，截至本公告披露日，公司正积极与相关中介机构就本次发行H股并上市的相关工作进行商 讨，除本次董事会审议通过的相关议案外，其他关于本次发行H股并上市的具体细节尚未确定。 ...

Group 1 - The company announced the appointment of Rongcheng (Hong Kong) CPA Limited as the special auditing firm for its H-share issuance and listing [2] - This appointment is subject to approval by the company's shareholders' meeting and will take effect from the date of approval [2]

悦康药业集团股份有限公司 独立董事工作制度 悦康药业集团股份有限公司 独立董事工作制度 （草案） （H股发行上市后适用） 1 悦康药业集团股份有限公司 独立董事工作制度 第一章 总则 独立董事应当独立履行职责，不受公司主要股东、实际控制人等 单位或个人的影响。 本制度中"独立董事"的含义与《香港联交所上市规则》中"独 立非执行董事"的含义一致，独立董事须同时符合《香港联交所 上市规则》要求的独立性。 以会计专业人士身份被提名为独立董事候选人的，应具备较丰富 的会计专业知识和经验，符合《上市公司独立董事管理办法》《香 港联交所上市规则》等规定的相关专业资格要求，并至少符合下 2 第一条 为进一步完善悦康药业集团股份有限公司（以下简称"公司"）法 人治理结构建设，为独立董事创造良好的工作环境，促进公司规 范运行，根据《中华人民共和国公司法》（以下简称"《公司法》"）、 中国证券监督管理委员会（以下简称"中国证监会"）《上市公司 独立董事管理办法》（以下简称"《管理办法》"）、《上市公司治理 准则》、《上海证券交易所科创板股票上市规则》（以下简称"《上 市规则》"）、《上海证券交易所科创板上市公司自律监管指引第 1 ...

Core Viewpoint - Yuyuan Pharmaceutical plans to issue H-shares and list on the Hong Kong Stock Exchange to enhance its competitive edge and international brand image while diversifying its financing channels [1] Summary by Relevant Sections - **Company Strategy** - The company aims to improve its overall competitiveness and international brand image through the planned listing [1] - The move is intended to better utilize international capital markets [1] - **Financial Activities** - The company is actively discussing the issuance of H-shares and the listing process with relevant intermediaries [1] - Specific details regarding the H-share issuance and listing have not yet been finalized [1]