Core Viewpoint - BeiGene has reported its first half-year profitability since its listing, driven by significant product revenue growth and improved cost management [1][3]. Financial Performance - Total revenue for the first half of 2025 reached RMB 17.518 billion, a year-on-year increase of 46.0% [1]. - Operating profit was RMB 799 million, and net profit attributable to shareholders was RMB 450 million, marking a turnaround from losses in the previous year [1]. - Product revenue amounted to RMB 17.36 billion, up 45.8% year-on-year [1]. Key Products and Sales - The sales of the BTK inhibitor, Zebrutinib, reached RMB 12.527 billion in the first half, a 56.2% increase [2]. - In the U.S. market, Zebrutinib sales were RMB 8.958 billion, growing by 51.7% [1][2]. - The PD-1 inhibitor, Tislelizumab, generated sales of RMB 2.643 billion, reflecting a 20.6% increase [2]. Market Position - Zebrutinib has maintained the top position in the BTK inhibitor market in the U.S. for two consecutive quarters, with Q2 sales of USD 684 million, a 43% increase [2]. - In Europe, Zebrutinib sales reached RMB 1.918 billion, up 81.4% [2]. - In China, Zebrutinib sales were RMB 1.192 billion, a 36.5% increase [2]. R&D Pipeline - The company anticipates over 20 milestone developments in its blood cancer and solid tumor pipelines within the next 18 months [1]. - BeiGene has established three proprietary products in blood cancer treatment, including Zebrutinib and two products in Phase 3 clinical trials [3]. - The company is expanding its pipeline in solid tumors, focusing on various cancers and utilizing diverse technology platforms [3]. Future Guidance - BeiGene has updated its full-year revenue guidance for 2025 to a range of RMB 35.8 billion to RMB 38.1 billion [3]. - The gross margin guidance has been adjusted to a mid-high range of 80% to 90% [3]. - Positive cash flow from operating activities is expected for the year, excluding capital expenditures [3].

Core Insights - BeiGene, Ltd. reported a significant increase in total revenue for the first half of 2025, reaching 17.518 billion yuan, a year-on-year growth of 46.0% [1] - The company achieved profitability for the first time this year, with operating profit of 799 million yuan and net profit attributable to shareholders of 450 million yuan, both turning from losses to profits compared to the same period last year [1] - The revenue guidance for 2025 has been updated to a range of 35.8 billion to 38.1 billion yuan, with a gross margin forecasted to be in the mid-to-high range of 80% to 90% [1] Revenue Breakdown - The product revenue for the first half of 2025 was 17.36 billion yuan, reflecting a year-on-year increase of 45.8% [1] - The BTK inhibitor, Zebrutinib, achieved global sales of 12.527 billion yuan, a growth of 56.2% year-on-year, with notable performance in the U.S. market at 8.958 billion yuan, up 51.7% [2] - The PD-1 inhibitor, Tislelizumab, generated sales of 2.643 billion yuan, marking a 20.6% increase, driven by new patient demand from newly approved indications in China [2] Market Expansion - Zebrutinib's sales in Europe reached 1.918 billion yuan, a remarkable growth of 81.4%, with increasing market share in Germany, Italy, and Spain [2] - In China, Zebrutinib maintained its leading position in the BTK inhibitor market with sales of 1.192 billion yuan, up 36.5% [2] - Tislelizumab has been approved in 47 markets globally, with 20 new markets added to the reimbursement list in the current quarter, including Japan, Europe, and Australia [2] R&D Pipeline - The company is in a critical development phase for its pipeline, expecting over 20 milestone advancements in blood cancers and solid tumors within the next 18 months [2]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________________ FORM 10-Q ___________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37686 +4 ...

BeOne Medicines Announces Second Quarter 2025 Financial Results and Business Updates SAN CARLOS, Calif. – August 6, 2025 – BeOne Medicines Ltd. (NASDAQ: ONC; HKEX: 06160; SSE: 688235), a global oncology company, today announced financial results and corporate updates from the second quarter of 2025. "Our strong second quarter performance reinforces our trajectory as a global oncology powerhouse and underscores our proven ability to deliver sustainable, long-term growth," said John V. Oyler, Co-Founder, Chai ...

Global Market Overview - Major global stock markets showed positive performance, with the Hang Seng Index closing at 24,903, up 1.61% for the day and 24.14% year-to-date [1] - The Hang Seng Tech Index rose by 2.29%, reflecting a year-to-date increase of 23.57% [1] - The US markets experienced slight declines, with the Dow Jones down 1.20% and the S&P 500 down 0.98% [1] Hong Kong Stock Performance - The Hang Seng Financial Index increased by 2.00%, with a year-to-date rise of 27.05% [2] - The Hang Seng Property Index rose by 1.35%, reflecting a year-to-date increase of 22.31% [2] Chinese Stock Market Insights - The Chinese stock market saw gains, particularly in healthcare, materials, and information technology sectors, while real estate and consumer sectors lagged [3] - Southbound capital inflow reached a four-month high of 23.43 billion HKD [3] - A forecast for the A-share market indicated strong performance for upstream companies in non-ferrous metals and chemicals due to rising product prices [3] Company Analysis: Yum China - Yum China maintained its full-year guidance, with Q2 sales increasing by 4% to 2.79 billion USD and net profit rising by 1% to 215 million USD, aligning with market expectations [4] - The company reported a gross margin of 70.9% and an operating profit margin of 10.9%, both exceeding market expectations [4] - The management set a conservative same-store sales growth target for the second half of the year, citing macroeconomic instability and cautious consumer behavior [5] Company Analysis: China Tower - China Tower's H1 2025 results met expectations, with revenue growing by 2.8% year-on-year to 49.6 billion RMB and net profit increasing by 8.0% to 5.8 billion RMB [5] - The net profit margin improved to 11.6%, reflecting a slight increase from the previous year [5] - The company announced an interim dividend of 0.13 RMB per share, enhancing shareholder returns [5] Focus Stocks - Geely Automobile (175 HK) rated as "Buy" with a target price of 24.00 HKD, indicating a potential upside of 32% [6] - Tencent (700 HK) also rated as "Buy" with a target price of 660.00 HKD, suggesting a 17% upside [6] - Alibaba (BABA US) rated as "Buy" with a target price of 141.20 USD, indicating a potential increase of 21% [6]

Global Market Overview - The Hang Seng Index closed at 24,508, down 1.60% for the day but up 45.32% year-to-date [1] - The Shanghai Composite Index closed at 3,573, down 1.18% for the day and up 20.11% year-to-date [1] - The U.S. Dow Jones closed at 44,131, down 0.74% for the day and up 17.09% year-to-date [1] Hong Kong Stock Performance - The Hang Seng Financial Index closed at 44,485, down 1.37% for the day and up 49.16% year-to-date [2] - The Hang Seng Real Estate Index closed at 18,268, down 2.31% for the day and down 0.33% year-to-date [2] Chinese Stock Market Insights - The Chinese stock market saw a rebound, with sectors like materials, information technology, and finance leading gains, while telecommunications and consumer staples lagged [3] - A total of 1.96 million new A-share accounts were opened in July, a 71% year-on-year increase [3] - The People's Bank of China indicated a preference for a strong RMB policy, with personal stock trading income remaining tax-exempt [3] Investment Opportunities - Geely Automobile (175 HK) is rated as a buy with a target price of 24.00, representing a 34% upside potential [4] - Luckin Coffee (LKNCY US) is rated as a buy with a target price of 44.95, indicating a 21% upside potential [4] - Tencent (700 HK) is rated as a buy with a target price of 660.00, suggesting a 22% upside potential [4] Sector Analysis - The equipment manufacturing sector, represented by companies like Sany International (631 HK) and Zoomlion (1157 HK), shows strong buy ratings with target prices indicating significant upside potential [4] - The semiconductor sector, including companies like Horizon Robotics (9660 HK) and Beike Micro (2149 HK), is also rated as a buy, reflecting optimism in technological advancements [4]

Summary of China Pharma and Biotech Sector Conference Call Industry Overview - The Chinese pharmaceutical and biotech sector is experiencing a significant rally, with the Hang Seng Biotech and MSCI China Healthcare indices showing year-to-date (YTD) returns of 57% and 38%, respectively, outperforming broader market indices which are at 16-20% [1][10][26] - Public financing has increased fourfold in the first half of 2025 compared to the same period in 2024, driving IPO activity on the Hong Kong Stock Exchange, particularly in biotech [1][40] - Despite the rally, valuations have sharply re-rated, with China's biotech price-to-sales multiples now aligning with global peers, suggesting limited further upside compared to the peaks of 2020-2021 [1][11] Key Growth Drivers - Oncology and metabolic diseases are identified as primary growth drivers, with significant market potential in PD-1-based bispecific antibodies and GLP-1 drug classes [3][4] - The global market for PD-1-based bispecific antibodies could reach US$70-80 billion, while the domestic GLP-1 market is projected to hit CNY87 billion by 2035 [3] - Chinese companies are competitive in clinical results, particularly in lung cancer treatments, and domestic GLP-1 drugs are matching international efficacy [3][4] Company Highlights - **Akeso**: Leading in PD-1/VEGF bispecific antibodies with multiple phase 3 trials; however, overall survival results remain uncertain [4] - **Innovent**: Offers a diversified portfolio across various disease areas and leads in advanced antibody modalities [4] - **Hansoh**: Transitioning to innovation-driven growth with strong sales in its 3rd-generation EGFR inhibitor and significant GLP-1 business development deals [4] R&D and Innovation - The sector is shifting from me-too drugs to best-in-class and first-in-class assets, focusing on novel targets and drug combinations [2][38] - Clinical trial activity is robust, with Chinese assets comprising over 50% of new global trials in 2025 [2][42] - The number of new clinical trials has shown stable growth, with a notable increase in innovative drug approvals [42][65] Policy Environment - Government policies have fluctuated but are currently favorable, balancing innovation stimulation with price control [2][43] - Recent supportive policies include initiatives to cover innovative drugs under commercial insurance, indicating a long-term positive outlook for the sector [43] Out-Licensing Trends - Out-licensing activity has surged in 2025, with total deal value reaching US$59 billion, surpassing the previous year's total [72] - The focus has shifted from PD-1 drugs to PD-1/VEGF and GLP-1 assets, with significant deal values and upfront payments [75][72] - Despite the increase in total deal value, upfront payments in China still lag behind developed markets, indicating a need for caution regarding the sustainability of this growth [73][81] Investment Implications - Companies such as Akeso, Hansoh, Innovent, and Hengrui are rated as Outperform, while BeiGene, CSPC, Sino Biopharm, and Zai Lab are rated as Market-Perform [7] - The current rally may require new catalysts beyond existing out-licensing deals to sustain momentum, as valuation headroom appears limited [5][22] Conclusion - The Chinese pharma and biotech sector is evolving into a mature, innovation-driven industry with growing global competitiveness, tempered by valuation caution and sector uncertainties [5][11]

Summary of BeiGene Conference Call Company Overview - **Company**: BeiGene - **Date**: August 4, 2025 Key Industry Insights - BeiGene is positioned to achieve profitability due to the market expansion of products like Zanubrutinib, supported by significant R&D investments totaling hundreds of billions [2][8] - The company is advancing in the CDK inhibitor space, particularly focusing on selective CDK4 inhibitors to enhance safety, with preliminary efficacy data disclosed [2][5] - BeiGene is actively pursuing global multi-center clinical development to reduce costs and accelerate timelines, which enhances asset value and lowers risk [2][6] Core Points and Arguments - **R&D Investment**: BeiGene has invested hundreds of billions in R&D, utilizing both expensing and capitalization methods to support self-sustaining capabilities and global clinical development [2][8] - **CDK Inhibitors**: The company plans to initiate a Phase III study for second-line HR-positive breast cancer in Q4 2025, with ongoing exploration of CDK12 and CDK2 products [2][11] - **Clinical Development Strategy**: By independently conducting clinical trials, BeiGene has reduced costs and improved speed, allowing for quicker proof of concept (POC) results [2][6] - **Protag Platform**: The BDK protect product has entered Phase III trials, showing a progression-free survival (PFS) of 22.8 months, significantly outperforming similar drugs [2][12] - **ADC Developments**: BeiGene's B7H4 ADC has shown an overall response rate (ORR) of 48%, with plans to start Phase III trials in 2026 [2][17] - **Collaboration Opportunities**: As early pipelines yield POC results, BeiGene is expected to gain leverage in partnerships, particularly in the HR-positive breast cancer market [2][7] Additional Important Insights - **Safety Concerns**: BeiGene is addressing safety issues associated with CDK4/6 inhibitors, with initial results indicating a favorable safety profile compared to competitors [2][10] - **Future Plans**: The company anticipates 2025 to be a pivotal year for transitioning to profitability, with multiple early pipeline data readouts expected [2][23] - **Innovative Approaches**: BeiGene is exploring new drug mechanisms in the KRAS inhibitor space and has developed multi-specific antibody technologies [2][19][22] - **Market Potential**: The PRMT5 target for MTAP mutant tumors presents significant market potential, with plans for combination therapies to enhance efficacy [2][21] This summary encapsulates the critical insights and strategic directions of BeiGene as discussed in the conference call, highlighting its commitment to innovation and market expansion in the biopharmaceutical industry.

Summary of BeiGene Conference Call Company Overview - **Company**: BeiGene - **Industry**: Biotechnology and Pharmaceuticals Key Points and Arguments 1. **Financial Performance**: BeiGene achieved its first NON-GAAP profit in Q2 2024, with an expected GAAP operating profit of $100 million to $150 million for the full year of 2025. If Q2 performance is strong, full-year profit expectations may be revised upwards [2][3]. 2. **Sales Efficiency**: The company has a significant advantage in commercialization and clinical development, with a per capita sales output of 6 million yuan in 2024, and as high as 50 million yuan in the U.S. [2][4]. 3. **Zebutinib Market Position**: Zebutinib's sales accelerated after its approval for CLL in Q1 2023, becoming the market leader in the U.S. by Q1 2025, with a leading pace in acquiring new patients [2][6]. 4. **Comprehensive Oncology Strategy**: BeiGene has a broad layout in hematological malignancies, with the BDK target Phase III clinical trial initiated, and a Phase III trial combining BCL-2 inhibitors with Zebutinib completed enrollment in Q1 2025, showing superior data compared to Venetoclax [2][7]. 5. **Protac Technology**: The data on the Protac technology for the BDK target is considered best in class, showing slightly better depth of response compared to Nurix, with a sample size twice that of Nurix, indicating superior data robustness [2][9]. 6. **Competitive Positioning**: BeiGene is positioned to compete with major international pharmaceutical companies, with peak sales expectations of $7 billion to $8 billion. The stock price is influenced by Zebutinib's trial success, sales growth, and operational leverage improvements [3][10]. 7. **CDK4 Inhibitor Development**: BeiGene's CDK4 inhibitor has completed proof of concept (POC), with nearly 10 molecules expected to undergo POC in the second half of the year. The company plans to initiate a global Phase III trial for breast cancer, potentially becoming the second high-selectivity CDK4 inhibitor to enter registration clinical stages [4][11]. 8. **Market Confidence**: The anticipated entry of CDK4 into Phase III clinical trials and subsequent data disclosures are expected to enhance market confidence, with a projected value increase of $2.5 billion in the solid tumor space [4][13]. 9. **Future Valuation**: With continued strong sales of hematological products and progress in BCL-2 and BDKC-deck products, BeiGene's valuation is expected to rise from $5 billion to a range of $6 billion to $7 billion by 2026 [14][15]. Additional Important Information - **Clinical Team Efficiency**: The company operates a fully internalized clinical team, enhancing efficiency and responsiveness to patient needs [5]. - **Research and Development Capacity**: BeiGene has a substantial molecular reserve with 1,100 scientists globally, indicating strong R&D capabilities [5]. - **CDK4 Inhibitor Data Performance**: Preliminary data shows BeiGene's CDK4 inhibitor has a higher clinical benefit rate (CBR) compared to Pfizer's CDK4 inhibitor, indicating promising therapeutic potential [12].

Group 1 - The core viewpoint of the news highlights the financial performance and market position of BeiGene, with a significant increase in revenue and net profit [1][2]. - As of July 28, BeiGene's stock opened at $299.0 per share, with a market capitalization of $35.42 billion [1]. - Financial data shows that for the fiscal year ending March 31, 2025, BeiGene's total revenue is projected to be $1.117 billion, representing a year-on-year growth of 48.64%, while the net profit attributable to shareholders is expected to be $1.27 million, reflecting a growth of 100.51% [1]. Group 2 - On July 17, Morgan Stanley raised BeiGene's target price to $345, maintaining an "Overweight" rating [1]. - The company is set to disclose its fiscal year 2025 mid-term report on August 6, prior to the market opening [1]. - BeiGene is a commercial-stage biotechnology company focused on developing and commercializing innovative molecular targeted and immunotherapy drugs for cancer treatment, with a diverse product portfolio [2].