Summary of the Conference Call for Zhaoyan New Drug (March 31, 2023) Company Overview - **Company**: Zhaoyan New Drug - **Industry**: Biopharmaceuticals and Laboratory Services Key Financial Highlights - **Net Profit**: 2025 net profit attributable to shareholders is projected at 298 million yuan (+302.08%), primarily due to the increase in experimental monkey prices contributing 476 million yuan in fair value changes [2][4] - **Revenue**: Total revenue for 2025 is 1.658 billion yuan, with domestic customers contributing 1.204 billion yuan (72.65%) and international customers 453 million yuan (27.35%) [4] - **Gross Profit**: Gross profit for 2025 is 343 million yuan, with a gross margin of 20.71%, impacted by intensified market competition leading to price declines [4][5] - **Operating Cash Flow**: Operating cash flow for 2025 is 445 million yuan, up 31.17% year-on-year, providing a solid financial foundation for innovation and expansion [5] Order and Market Dynamics - **New Orders**: New signed orders for 2025 reached 2.6 billion yuan (+41.3%), with Q4 alone contributing 960 million yuan (+118.18%) [2][5] - **Order Backlog**: As of the end of 2025, the order backlog totals 2.6 billion yuan, reflecting an 18.18% year-on-year increase [5] - **Price Recovery**: By Q4 2025, over 50% of new orders' growth was attributed to price increases, with expectations for significant gross margin improvement starting Q4 2026 [2][6] Supply Chain and Capacity - **Experimental Monkey Supply**: The supply of experimental monkeys remains tight, with prices expected to rise further in Q1 2026. The company is ensuring supply through its own monkey farms and cautious evaluation of imports [2][8] - **Capacity Expansion**: The company has expanded its capacity with a new 20,000 square meter facility in Suzhou and plans for a large facility in Guangzhou expected to be operational by 2027 [3][7] Technological Advancements - **Technological Focus**: The company has been developing organoid technology for 5-6 years, focusing on liver and heart applications. AI is being utilized in pathology to enhance efficiency [3][18] - **Clinical Services**: Although currently a small revenue contributor, the clinical services segment has gained experience in gene therapy and traditional therapies, with plans to secure more orders in 2026 [16] Market Outlook - **2026 Projections**: The company anticipates continued strong order growth in 2026, with a high double-digit increase expected. However, revenue and profit improvements may lag due to the timing of order confirmations [2][13] - **Price Trends**: The pricing for large animal experiments has returned to pre-adjustment levels, while small animal and canine experiment prices are still recovering [6][11] Challenges and Risks - **Import Challenges**: The import of experimental monkeys faces challenges, including finding reliable suppliers and limited quarantine facilities in China [12][17] - **Market Volatility**: The company is cautious about the potential risks associated with imported monkeys and is focused on maintaining quality standards [10] Conclusion Zhaoyan New Drug is positioned for growth with strong order momentum and a focus on technological advancements. However, challenges in supply and market conditions may impact short-term financial performance. The company is strategically planning for capacity expansion and technological integration to enhance its competitive edge in the biopharmaceutical industry.

Investment Rating - The report maintains a "Buy" rating for both A and H shares of the company [7] Core Insights - The company achieved a revenue of 1.658 billion RMB and a net profit attributable to shareholders of 298 million RMB in 2025, reflecting a year-over-year change of -17.9% and +302.1% respectively, aligning with performance forecasts [1] - The company has seen a significant increase in new order amounts, with 4Q25 new orders reaching 960 million RMB, a year-over-year increase of 118.2%, indicating a recovery in domestic industry demand [1] - The company’s gross margin for 2025 was 20.7%, down 7.7 percentage points year-over-year, primarily due to the impact of low-quality orders from previous periods [2] - Operating cash flow improved significantly, with a net cash flow of 445 million RMB in 2025, up 31.2% year-over-year [2] - The company is expanding its technical capabilities, with a notable increase in project signings for antibody, small nucleic acid, ADC, and peptide drugs [3] - The overseas revenue reached 453 million RMB, accounting for 27.3% of total revenue, reflecting a year-over-year increase of 3.3% [4] - The company expects a recovery in domestic business in 2026, driven by improved market competitiveness and ongoing demand recovery [4] Summary by Sections Financial Performance - In 2025, the company reported a revenue of 1.658 billion RMB, a decrease of 17.87% from the previous year, while net profit attributable to shareholders was 298 million RMB, an increase of 302.08% [10] - The company forecasts net profits of 528 million RMB, 654 million RMB, and 848 million RMB for 2026, 2027, and 2028 respectively, with significant upward adjustments of 54% and 48% for 2026 and 2027 [5][11] Business Development - The company’s total order backlog was approximately 2.6 billion RMB, with new orders also around 2.6 billion RMB, indicating a year-over-year increase of 41.3% [1] - The company is enhancing its core business capabilities and expanding its facilities, which will support future business development [3] Market Outlook - The report anticipates continued growth in overseas revenue and a gradual recovery in domestic business, supported by the company’s strong market position in non-clinical safety evaluation [4] - The target prices for A and H shares are set at 45.83 RMB and 28.79 HKD respectively, based on a price-to-earnings ratio of 65x and 36x for 2026 [5]

Group 1 - The core viewpoint of the news is that Zhaoyan New Drug reported its annual performance, showing a decline in revenue but a significant increase in net profit due to changes in the fair value of biological assets [1] Group 2 - In 2025, the company achieved an operating income of 1.658 billion yuan, a year-on-year decrease of 17.87% [1] - The net profit attributable to shareholders of the listed company was 298 million yuan, reflecting a year-on-year increase of 302.08% [1] - The total amount of orders on hand was approximately 2.6 billion yuan, with new signed orders also around 2.6 billion yuan, both showing year-on-year growth [1] - The increase in net profit was primarily driven by a net gain of 476 million yuan from changes in the fair value of biological assets [1] - The biological assets mainly consist of non-human primate experimental models used for non-clinical project evaluations, commonly referred to as "experimental monkeys" [1]

Core Viewpoint - The stock of Zhaoyan New Drug (603127) experienced an abnormal trading fluctuation, with a cumulative price increase exceeding 20% over three consecutive trading days [1] Group 1: Stock Performance - The stock price increased significantly on March 27, March 30, and March 31, leading to a cumulative price deviation of over 20% [1] - The abnormal trading situation is in accordance with the regulations of the Shanghai Stock Exchange [1] Group 2: Company Response - Zhaoyan New Drug conducted a self-examination and consulted with its controlling shareholder and actual controller, confirming that there are no undisclosed significant information as of the announcement date [1] - The company advises investors to be cautious of market trading risks and to make rational investment decisions [1]

Investment Rating - The report maintains a "Buy" rating for both A and H shares of the company [7] Core Views - The company achieved revenue and net profit of 1.658 billion and 298 million RMB in 2025, reflecting a year-over-year change of -17.9% and +302.1% respectively, aligning with performance forecasts [1] - The company has seen a significant increase in new orders, with 4Q25 new signed orders amounting to 960 million RMB, a year-over-year increase of 118.2%, indicating a recovery in domestic demand [1] - The overall order backlog for the company stands at approximately 2.6 billion RMB, up 18.2% year-over-year, with new signed orders also increasing by 41.3% year-over-year [1] Summary by Relevant Sections Financial Performance - The company's gross margin for 2025 was 20.7%, down 7.7 percentage points year-over-year, primarily due to the impact of low-quality orders from previous periods [2] - Operating cash flow for 2025 was 445 million RMB, reflecting a significant improvement of 31.2% year-over-year [2] Business Segments - Non-clinical research services generated revenue of 1.577 billion RMB, down 17.8% year-over-year, while overseas revenue in this segment grew by 3.1% [3] - Clinical services and others reported revenue of 72.83 million RMB, down 27.1% year-over-year, but the company is advancing its capabilities in biomarker detection for neurological diseases [3] - The experimental model supply segment saw a remarkable increase in revenue to 7.75 million RMB, up 754.5% year-over-year, indicating strong demand for diverse research needs [3] Geographic Revenue Breakdown - Overseas revenue reached 453 million RMB, up 3.3% year-over-year, accounting for 27.3% of total revenue, an increase of 5.6 percentage points year-over-year [4] - Domestic revenue was 1.204 billion RMB, down 23.8% year-over-year, primarily due to pressure from historical low-quality orders [4] Profit Forecast and Valuation - The company expects net profit attributable to shareholders to be 528 million, 654 million, and 848 million RMB for 2026, 2027, and 2028 respectively, with significant upward adjustments of 54% and 48% for 2026 and 2027 [5][11] - The report assigns a price-to-earnings ratio of 65x for A shares and 36x for H shares for 2026, with target prices set at 45.83 RMB and 28.79 HKD respectively [5]

北京昭衍新药研究中心股份有限公司 股票交易异常波动公告 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个别及连带责任。 重要内容提示： 证券代码：603127 证券简称：昭衍新药 公告编号：2026-016 的重大信息，包括但不限于重大资产重组、股份发行、收购、债务重组、业务重 组、资产剥离、资产注入、股份回购、破产重整、引进战略投资者等重大事项。 （三）媒体报道、市场传闻、热点概念情况 一、股票交易异常波动的具体情况 公司股票于 2026 年 3 月 27 日、3 月 30 日和 3 月 31 日连续 3 个交易日内收 盘价格涨幅偏离值累计超过 20%。根据《上海证券交易所交易规则》的有关规定， 属于股票交易异常波动情形。 二、公司关注并核实的相关情况 针对公司股票交易异常波动，公司对有关事项进行了核查，现将有关情况说 明如下： （一）生产经营情况 经自查，公司目前生产经营活动正常，内、外部经营环境未发生重大变化， 不存在影响公司股票交易价格异常波动的应披露而未披露的重大信息。 （二）重大事项情况 经公司自查，并书面征询控股股东及实际 ...

Core Viewpoint - The stock of Zhaoyan New Drug Research Center Co., Ltd. (06127.HK) experienced a significant price fluctuation, with a cumulative increase of over 20% over three consecutive trading days [1] Group 1: Stock Performance - The stock price increased significantly on March 27, March 30, and March 31, 2026, leading to a cumulative price deviation exceeding 20% [1] - This price movement is classified as an abnormal fluctuation according to the trading rules of the Shanghai Stock Exchange [1] Group 2: Company Disclosure - The company conducted a self-examination and consulted with its controlling shareholder and actual controller, confirming that there are no undisclosed significant information as of the date of the announcement [1] - Investors are advised to be cautious regarding secondary market trading risks and to make rational investment decisions [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） （股 份 代 號：6127） 海外監管公告 本公告乃北京昭衍新藥研究中心股份有限公司（「本公司」）根據香港聯合交易 所有限公司證券上市規則第13.10B條 而 作 出。 JOINN LABORATORIES (CHINA) CO., LTD. 北京昭衍新藥研究中心股份有限公司 中 國 北 京，2026年3月31日 茲 載 列 本 公 司 於 上 海 證 券 交 易 所 網 站 刊 登 公 告 如 下，僅 供 參 閱。 承董事會命 北京昭衍新藥研究中心股份有限公司 馮宇霞 董事長 於 本 公 告 日 期，董 事 會 包 括 主 席 兼 執 行 董 事 馮 宇 霞 女 士、執 行 董 事 高 大 鵬 先 生、孫 雲 霞 女 士、顧 靜 良 先 生 及 羅 樨 女 士，獨 立 ...

Core Viewpoint - Zhaoyan New Drug reported a decline in revenue for 2025, with total operating income at 1.66 billion yuan, a year-on-year decrease of 17.9%, while net profit attributable to shareholders increased significantly by 302.1% to 298 million yuan [1] Financial Performance - Operating income for the year was 1.66 billion yuan, down 17.9% year-on-year [1] - Net profit attributable to shareholders reached 298 million yuan, up 302.1% year-on-year [1] - Non-recurring net profit attributable to shareholders was 311 million yuan, showing a substantial increase of 1221.3% year-on-year [1] - Net cash flow from operating activities was 445 million yuan, reflecting a growth of 31.2% year-on-year [1] - Earnings per share (EPS) on a fully diluted basis was 0.3974 yuan [1] Business Segments - The main business areas include non-clinical drug services, clinical drug services, and experimental model research [1] - Non-clinical drug services remained the primary revenue source, but net profit from this segment declined due to intensified industry competition [1] - Laboratory services and other business segments reported a net profit contribution of -164 million yuan, a significant decline of 219.61% year-on-year, primarily due to the lagging effects of prior competition, leading to decreased revenue and gross margins [1] Strategic Developments - In clinical drug services, the company expanded its service offerings to include early clinical trials and real-world clinical research, enhancing collaboration with clients to advance related projects [1] - The experimental model research business is continuously being optimized to meet market demands for high-quality experimental models [1] - Despite facing challenges, the company is committed to ongoing innovation in technical capabilities and service models to maintain its competitive edge in the industry [1]

Group 1 - The core point of the article highlights that Zhaoyan New Drug (06127.HK) experienced a significant stock price increase of over 14% in early trading, reaching a price of 22.3 HKD per share [2] - The trading volume for Zhaoyan New Drug was reported at 76.51 million HKD during this period [2]