Core Viewpoint - The article highlights a significant surge in the A-share ophthalmology medical concept stocks, driven by market rumors regarding the supply issues of a specific eye drop formulation, which has led to increased investor interest and stock price increases for several companies in the sector [1][2]. Company Performance - On September 1, A-share ophthalmology stocks saw collective gains, with notable performances including: - Xingqi Eye Medicine up 14.65% to 77.54 - Innovation Medical up 10% to 25.19 - Shapuaisi up 9.95% to 8.40 - Baicheng Pharmaceutical up 8.46% to 62.45 [1][2]. Market Dynamics - Recent rumors indicated that the Henan Provincial Eye Hospital would stop supplying its self-made 0.01% atropine sulfate eye drops due to expired registration, which has been confirmed by hospital staff. This product will cease supply after September 6, 2023, while other concentrations remain in production [3][4]. - Atropine sulfate eye drops have gained recognition as a "myopia miracle drug," particularly for children aged 6 to 12, and are recommended in various authoritative guidelines for myopia management [4]. Competitive Landscape - The market for atropine sulfate eye drops is becoming increasingly competitive, with several companies, including Zhaoke Ophthalmology and Hengrui Medicine, advancing their own formulations. Shapuaisi is also in the process of clinical trials for its version [5][6]. - Xingqi Eye Medicine has seen substantial growth, with revenues of 1.943 billion in 2024, a 32.42% increase year-on-year, and a net profit of 338 million, up 40.84% [4]. In the first half of 2025, the company reported revenues of 1.163 billion, a 30.38% increase, and a net profit of 335 million, a remarkable 97.75% increase [4].

Report Summary 1. Report Industry Investment Rating No investment rating information is provided in the report. 2. Core Viewpoints - The company adheres to independent R & D, strengthens its core competitiveness, expands the market, and optimizes the customer structure. In the first half of 2025, both revenue and net profit maintained stable growth [30]. - The company's products, such as Xingqi Meiopin and Zirun, have broad market prospects. Xingqi Meiopin has a good market performance, and Zirun is expected to continue to contribute to the company's growth [30][43]. - The company will continue to increase investment in the field of ophthalmic innovative drugs, improve its independent innovation ability, and layout and develop more competitive ophthalmic innovative drug products [32]. 3. Summary by Directory 3.1. Research Basic Situation - Research object: Xingqi Eye - drops [16] - Industry: Chemical pharmaceuticals [16] - Reception time: September 1, 2025 [16] - Reception personnel: Vice - chairman and board secretary Zhang Shaoyao, director and general manager Gao E, director, deputy general manager and CFO Cheng Ya'nan, director and deputy general manager Yang Qiang [16] 3.2. Detailed Research Institutions - Many institutions participated in the research, including securities companies such as Guosheng Securities, Guotou Securities, and GF Securities; fund management companies such as Huaxia Fund, Hui'an Fund; and other types of institutions like Guojin Medicine, China International Capital Corporation [17][18]. 3.3. Main Content 3.3.1. 2025 Semi - annual Performance - Revenue in the first half of 2025 was 1.163 billion yuan, a year - on - year increase of 30.38%. Net profit attributable to shareholders of the listed company was 335 million yuan, a year - on - year increase of 97.75% [30]. - The proposed profit distribution plan for the first half of 2025 is to distribute 7 yuan in cash for every 10 shares based on the total share capital of 245 million shares, subject to the approval of the company's second interim shareholders' meeting in 2025 [30]. 3.3.2. Investor Questions and Answers - **Atropine Promotion and Sales** - Xingqi Meiopin has achieved wide coverage in in - hospital and out - of - hospital channels and received good market feedback. There are over 500 professional promotion personnel in the myopia prevention and control field, and the number will be adjusted according to relevant factors [30]. - It has been widely introduced into public hospitals and major private ophthalmic groups, and only one province has not completed drug access. As of the end of June, it has been stocked in nearly 17,000 retail pharmacies and launched on multiple platforms [31][32]. - The sales growth is driven by full - channel marketing, multi - party cooperation, and professional academic promotion. The company's core goals this year are to let over 20 million people know the myopia treatment plan and promote over one million children to receive standardized drug intervention [34][35]. - **R & D Pipeline** - The Class 1 therapeutic biological product SQ - 22031 eye drops have completed Phase I clinical trials and are conducting Phase II clinical trials for neurotrophic keratitis. The SQ - 129 vitreous slow - release injection has completed pre - clinical research and will conduct clinical trials for macular edema after approval [32]. - The company obtained the clinical summary report of "Efficacy and safety of different concentrations of atropine sulfate eye drops (0.02% and 0.04%) in delaying myopia progression in children" in October 2024, and the product is under review by the drug evaluation center [33][35]. - **Other Products and Market Outlook** - Zirun has achieved double - digit growth in the first half of 2025, and its annual sales outlook is optimistic due to the large number of dry - eye patients and its inclusion in the national medical insurance negotiation catalog [43]. - The company will continue to expand its international market for low - concentration atropine eye drops and is in the preliminary communication stage with overseas partners [46]. - The company plans to build a comprehensive R & D headquarters in the Shenyang area of the China (Liaoning) Pilot Free Trade Zone, focusing on ophthalmic R & D and equipped with top - notch R & D teams [47].

Core Viewpoint - The recent surge in A-share ophthalmology stocks is driven by the news of the discontinuation of a specific eye drop formulation, which has led to increased investor interest in alternative products and companies in the sector [1][2]. Company Developments - Shapuaisi (603168.SH) and Innovation Medical (002173.SZ) reached their daily limit up, while Xingqi Eye Medicine (300573.SZ) rose over 14%, and Baicheng Pharmaceutical (301096.SZ) increased by over 8% [1]. - Xingqi Eye Medicine's atropine eye drops have seen significant stock price increases following their approval for market release, with the stock reaching a historical high of 152.04 yuan per share on May 30, 2024 [2]. - In 2024, Xingqi Eye Medicine reported a revenue of 1.943 billion yuan, a year-on-year increase of 32.42%, and a net profit of 338 million yuan, up 40.84% [2]. Market Dynamics - The market for atropine eye drops is becoming increasingly competitive, with several companies, including Zhaoke Ophthalmology and Heng Rui Medicine, actively pursuing approvals for their own formulations [3]. - The discontinuation of the 0.01% atropine eye drops from Henan Provincial Eye Hospital is expected to create opportunities for other companies to capture market share [1][3]. - The ongoing development of new formulations, such as Xingqi Eye Medicine's upcoming SQ-729 eye drops, is anticipated to enhance the company's product offerings and performance [3].

Financial Performance - The company achieved a revenue of CNY 1.163 billion in the first half of 2025, representing a year-on-year growth of 30.38% [2] - The net profit attributable to shareholders reached CNY 335 million, marking a significant increase of 97.75% compared to the same period last year [2] Dividend Distribution - The board approved a cash dividend plan of CNY 7 per 10 shares based on a total share capital of 245 million shares, pending approval at the upcoming shareholder meeting [3] Product Promotion and Market Strategy - The sales team for the promotion of atropine has over 500 members, focusing on disease education and product promotion through professional associations [4] - The product has been widely adopted in public hospitals and major private eye care groups, with distribution in nearly 17,000 retail pharmacies and online platforms [5] Research and Development - The company is advancing its innovative product pipeline, including the SQ-22031 eye drops, which are in Phase II clinical trials for neurotrophic keratitis [6] - The 0.01% atropine eye drops have been approved for market entry, with ongoing development of different concentrations (0.02% and 0.04%) for myopia control [5][17] Market Outlook - The near-sighted population among school-aged children in China exceeds 100 million, indicating a vast market potential for myopia prevention products [17] - The company plans to enhance its marketing strategies and expand its market share through comprehensive disease education and collaboration with various stakeholders [10][17] Sales Channels and Distribution - The company employs a multi-channel strategy, integrating both hospital and retail pharmacy sales to improve drug accessibility [9] - The sales contribution from public and private hospitals is crucial, while retail pharmacies and online platforms support patient repurchase [9][10] Future Development Plans - The company is focusing on establishing a new R&D center aimed at enhancing its capabilities in ophthalmic drug development [18] - Plans to expand into international markets are in preliminary discussions, with a focus on maintaining a stable pricing strategy for atropine despite emerging competition [15][13]

Group 1 - The chemical pharmaceutical sector increased by 3.54% on September 1, with Maiwei Biotech leading the gains [1] - The Shanghai Composite Index closed at 3875.53, up 0.46%, while the Shenzhen Component Index closed at 12828.95, up 1.05% [1] - Notable gainers in the chemical pharmaceutical sector included Maiwei Biotech, which rose by 20.00% to a closing price of 57.60, and Xingqi Eye Medicine, which increased by 14.65% to 77.54 [1] Group 2 - The chemical pharmaceutical sector saw a net inflow of 1.245 billion yuan from main funds, while retail funds experienced a net outflow of 41.1167 million yuan [2] - The top stocks by main fund inflow included Heng Rui Medicine with 474 million yuan and Fuxing Medicine with 256 million yuan [3] - Conversely, stocks like Duorui Medicine and ST Suwu experienced significant declines, with Duorui Medicine down 9.36% to 41.17 [2][3]

Group 1 - The A-share pharmaceutical sector continues to show strength, with the only ETF tracking the pharmaceutical index (562050) reaching a new high of 1.150 yuan, up 3% [1] - The ETF covers 50 leading pharmaceutical companies, heavily investing in innovative drugs while also considering traditional Chinese medicine [1] - Notable stock performances include a surge of over 16% for Xingqi Eye Hospital, with several companies like Changchun High-tech and Huahai Pharmaceutical hitting the daily limit [1] Group 2 - On August 28, the National Healthcare Security Administration announced the preliminary review of the 2025 medical insurance and commercial insurance innovative drug directory, focusing on new drugs [3] - The approval of 210 innovative drugs and 269 innovative medical devices during the 14th Five-Year Plan period indicates a sustained growth trend in the sector [3] - China's biopharmaceutical market has become the second largest globally, with approximately 30% of innovative drugs under development worldwide [3] Group 3 - The government emphasizes the need for high-quality technological supply and policy support to enhance the biopharmaceutical industry, aiming for the development of more effective new drugs [3] - Traditional Chinese medicine is also highlighted, with a focus on innovation to promote its modernization and industrialization [3] Group 4 - Investment opportunities are identified in leading pharmaceutical companies through the only pharmaceutical ETF (562050) and its linked fund (024986), which focuses on innovative drugs and high-barrier generic drugs [4] - The largest medical ETF (512170) is recommended for exposure to medical devices and services, with a significant correlation to AI healthcare [4]

Group 1 - The ophthalmology medical concept stocks experienced a surge during trading, with Sharplife reaching a limit up [1] - Xingqi Eye Medicine rose over 10% in the afternoon session [1] - Lifang Pharmaceutical previously hit the limit up, indicating strong market interest [1] Group 2 - Other companies such as Baicheng Pharmaceutical, Aibo Medical, Guangzheng Eye Care, and He Shi Eye Care also saw increases in their stock prices [1]

Core Viewpoint - Xingqi Eye Pharmaceutical (300573.SZ) continues to experience high growth in performance, with significant increases in revenue and net profit in the first half of 2025 [1][3]. Financial Performance - In the first half of 2025, the company reported revenue of 1.163 billion yuan, a year-on-year increase of 30.38% - Net profit reached 335 million yuan, up 97.75% year-on-year - Deducted net profit was 331 million yuan, reflecting a growth of 96.3% year-on-year - Operating cash flow net amount was 306 million yuan, increasing by 63.6% year-on-year [1][3][4]. Product Development and R&D - The company emphasizes independent research and development to strengthen its core competitive advantages and expand its sales market [2][3]. - In March 2024, Xingqi Eye obtained the drug registration certificate for atropine sulfate eye drops, with no similar products for myopia-related indications currently available in the domestic market [2][3]. - Revenue from eye drops and gel products reached 903 million yuan in the first half of 2025, marking a 76.43% increase year-on-year [2][3]. - R&D expenses for the first half of 2025 were 91.76 million yuan, a 16.59% increase year-on-year, with a total of 73 invention patents held by the company and its subsidiaries [2][6]. Market Position and Strategy - Xingqi Eye has established itself as a leading domestic enterprise in the research, development, production, and sales of ophthalmic drugs, with a comprehensive product line covering ten categories of ophthalmic medications [5][6]. - The company has maintained a steady increase in revenue and net profit for six consecutive years from 2019 to 2024, indicating robust growth in the ophthalmic drug market [4][5]. - The gross profit margin for the first half of 2025 was 80.67%, an increase of 2.51 percentage points year-on-year, while the net profit margin was 28.8%, up 9.81 percentage points year-on-year, representing the highest levels in the past three years [4]. Dividend Policy - The company plans to distribute a cash dividend of 7 yuan (including tax) for every 10 shares to all shareholders in the mid-2025 period, with a total distribution amount expected to be 172 million yuan [4].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to experience rapid growth in low-concentration atropine sales, with a projected significant increase in revenue and net profit from 2025 to 2027 [3][4] - The company reported a revenue of 1.163 billion yuan in H1 2025, representing a year-on-year increase of 30.38%, and a net profit of 335 million yuan, which is a 97.75% increase year-on-year [3] - The company is actively developing its new drug pipeline, including various eye care products, which is anticipated to further enhance its performance and meet the demand for myopia treatment in children and adolescents [4] Financial Summary - For H1 2025, the company achieved a gross margin of 80.67% and a net margin of 28.80%, with a significant increase in both metrics compared to the previous year [3] - The projected revenue for 2025 is 2.948 billion yuan, with a year-on-year growth rate of 51.7%, and the net profit is expected to reach 688 million yuan, reflecting a growth rate of 103.7% [6] - The earnings per share (EPS) for 2025 is estimated at 2.81 yuan, with a price-to-earnings (P/E) ratio of 23.6 [6]

Market Performance - The pharmaceutical sector experienced a decline of -2.73% on August 27, 2025, underperforming the CSI 300 index by 1.24 percentage points, ranking 26th among 31 sub-industries in the Shenwan classification [1] - Among sub-industries, medical devices (-1.37%), medical research outsourcing (-1.98%), and blood products (-2.06%) performed relatively better, while in vitro diagnostics (-3.98%), vaccines (-3.45%), and hospitals (-3.12%) lagged behind [1] - Top three gainers included Nanjing New Pharmaceutical (+20.00%), Ailis (+17.00%), and Aomei Medical (+10.04%), while the largest decliners were Yuekang Pharmaceutical (-16.82%), Rejing Bio (-10.47%), and Guangshengtang (-10.32%) [1] Industry News - Gilead announced that the European Commission has approved its HIV-1 capsid inhibitor Yeytuo (Lenacapavir) for market release as a pre-exposure prophylaxis (PrEP) therapy, aimed at reducing the risk of HIV-1 infection in high-risk adults and adolescents (weighing at least 35 kg) [2] - Lenacapavir is a "first-in-class" long-acting HIV capsid inhibitor that interferes with the assembly and disassembly of the HIV capsid protein, demonstrating a 100% prevention rate of HIV infection in a study with 2,134 participants receiving biannual subcutaneous injections, outperforming the daily oral Truvada treatment group [2] Company News - Xingqi Eye Pharmaceutical (300573) reported a revenue of 1.163 billion yuan for the first half of 2025, a year-on-year increase of 30.38%, with a net profit attributable to shareholders of 335 million yuan, up 97.75% [3] - Nossger (301333) achieved a revenue of 380 million yuan in the first half of 2025, a slight increase of 0.18%, with a net profit of 61 million yuan, growing by 4.45% [3] - Mindray Medical (300706) reported a revenue of 16.743 billion yuan for the first half of 2025, a decline of 18.45%, with a net profit of 5.069 billion yuan, down 32.96% [3] - Zhongsheng Pharmaceutical (002317) announced that its subsidiary Zhongsheng Ruichuang has completed the first participant enrollment and dosing for two Phase III clinical trials (SHINING-2 and SHINING-3) of its innovative polypeptide drug RAY1225 injection [3]