Group 1 - The company Rongchang Biologics (09995) announced that its self-developed innovative drug Tai'aisip (泰它西普) for treating IgA nephropathy (IgAN) has achieved the primary research endpoint in the Phase III clinical trial in China [1] - The clinical trial was a multi-center, randomized, double-blind, placebo-controlled study involving 318 adult patients with IgAN who had received standard treatment, with a dosage of 240mg administered subcutaneously once a week [1] - The A stage analysis showed that the Tai'aisip group had a 55% reduction in the 24-hour urine protein-to-creatinine ratio (UPCR) compared to the control group at 39 weeks (P<0.0001), demonstrating good tolerability and safety [1] Group 2 - IgAN is a common primary glomerular disease, with diverse clinical manifestations, and is a major cause of chronic kidney disease and end-stage renal disease in China, with up to 40% of patients reaching end-stage renal disease within 20 years of diagnosis [2] - The academic community believes that the excessive secretion of galactose-deficient IgA1 (Gd-IgA1) is a core factor in the pathogenesis of IgAN [2] - The drug Tai'aisip is a recombinant BLyS/APRIL dual-target fusion protein that inhibits the binding of BLyS and APRIL to B cell surface receptors, effectively reducing pathological immune responses [2]

格隆汇8月27日丨荣昌生物(09995.HK)宣布，公司自主研发的全球首创BLyS/APRIL双靶点融合蛋白创新 药泰它西普(商品名：泰爱®)用于治疗IgA肾病(IgAN)的中国III期临床研究，达到A阶段的主要研究终 点。公司将尽快向中国国家药品监督管理局(NMPA)药品审评中心(CDE)递交上市申请(BLA)。 ...

（股份代號：9995） 自願公告 泰它西普（商品名：泰愛®）治療IgA腎病 中國III期臨床研究A階段達到主要終點 本公告由榮昌生物製藥（煙台）股份有限公司（「本公司」）自願作出。 本公司董事會（「董事會」）欣然宣佈，本公司自主研發的全球首創BLyS/APRIL雙 靶點融合蛋白創新藥泰它西普（商品名：泰愛®）用於治療IgA腎病(IgAN)的中國III 期臨床研究，達到A階段的主要研究終點。我們將盡快向中國國家藥品監督管理 局(NMPA)藥品審評中心(CDE)遞交上市申請(BLA)。 這是一項多中心、隨機、雙盲、安慰劑對照臨床試驗，納入了318例接受過標準 治療的IgAN成人患者，泰它西普的使用劑量為240mg，皮下注射，每週1次。A 階段分析結果顯示：與對照組相比，泰它西普組患者在治療39周時的24小時尿蛋 白肌酐比值(UPCR)降低了55%(P<0.0001)，且表現出良好的耐受性和安全性。詳 細數據將在國際重大學術會議上公佈。 IgAN是一種常見的原發性腎小球疾病，該病臨床表現多樣，如反覆發作的鏡下血 尿或肉眼血尿，伴有不同程度蛋白尿，部分患者可以出現嚴重高血壓或者腎功能 異常。IgA腎病也是中國慢性腎臟 ...

Group 1 - The company reported a significant revenue growth of 48.0% year-on-year, with 1H25 revenue reaching 1.098 billion yuan, and a reduction in net losses by 42.4% to 450 million yuan [1] - The company expects a revenue growth of over 30% for the full year, driven by steady sales of core products and the upcoming commercialization of RC28 [1][2] - The company has made progress in international expansion, with the successful authorization of Tai Tasi Pi and ongoing Phase III trials for Vidisizumab [3] Group 2 - The gross margin improved to 84.1%, an increase of 5.8 percentage points year-on-year, attributed to successful ramp-up of new facilities and process optimizations [4] - Operating cash flow significantly improved, with a 69% reduction in cash outflow in 2Q25, indicating a positive trend towards cash flow turning positive in the future [4] - The company is focusing its resources on potential pipeline and indication development, leading to a reduction in R&D expenses by 19.7% year-on-year [4] Group 3 - The company anticipates narrowing losses in 2025, approaching breakeven in 2026, and achieving profitability in 2027, with projected net profits of 346 million yuan in 2025 and 536 million yuan in 2027 [5] - The target prices based on DCF are set at 107.37 yuan for A-shares and 116.94 HKD for H-shares, with a WACC of 6.8% and a perpetual growth rate of 2.5% [5]

Investment Rating - The report maintains a "Buy" rating for the company [3][7]. Core Insights - The company continues to reduce losses in Q2 2025, with strong sales growth in core products and an improving expense ratio, leading to stable overall performance and cash reserves [2][7]. - The global peak sales estimate for the key product, Tai Tasi Pu, has been raised to $3.1 billion based on excellent clinical data [2]. - The target price has been adjusted upwards to HKD 103, reflecting the company's performance in the first half of 2025 and anticipated contributions from new business development collaborations [2][8]. Financial Performance Summary - Revenue for 1H25 increased by 47.6% year-on-year to RMB 1.09 billion, driven by strong sales of Tai Tasi Pu and Vidisizumab [7]. - The gross profit margin improved by 7.3 percentage points to 84.4%, with further optimization in expense ratios [7]. - The company has a robust cash reserve of RMB 1.48 billion and an additional bank credit line of RMB 2.7 billion [7]. Earnings Forecast Changes - Revenue forecasts for 2025 and 2026 have been increased by 25% and 3% respectively, while the 2027 revenue forecast has been decreased by 14% [6]. - The gross profit for 2025 is projected at RMB 2.602 billion, reflecting a 38% increase from previous estimates [6]. - The net profit for 2027 is expected to rise by 87% to RMB 742 million, indicating a significant turnaround [6]. Valuation Model - The DCF valuation model estimates the equity value at RMB 52.776 billion, translating to a per-share value of HKD 103 [8].

Core Viewpoint - Lyon's report indicates that Rongchang Biologics (09995) achieved a 39.1% year-on-year increase in sales for the second quarter, which, while below market expectations, exceeded the company's annual guidance [1] - The net loss narrowed by 54.7% year-on-year, outperforming market expectations [1] - The management maintains its annual sales guidance, anticipating over 30% year-on-year growth, and expects to achieve breakeven by 2026 [1] Financial Performance - Second quarter sales increased by 39.1% year-on-year [1] - Net loss reduced by 54.7% year-on-year [1] - Annual sales guidance remains unchanged, with expectations of over 30% growth [1] Business Development - The indications for RC18 and RC48 are gradually expanding [1] - The company's new immunotherapy (I/O) and ADC research and development pipeline is taking shape [1] Profit Forecast and Target Price - Profit forecasts for 2025, 2026, and 2027 have been raised by 79.6%, 106.9%, and 116.4% respectively [1] - Target price has been significantly increased from HKD 33.7 to HKD 103, while maintaining an "outperform" rating [1]

Core Viewpoint - The report from Credit Lyonnais indicates that Rongchang Biologics (09995) achieved a 39.1% year-on-year increase in sales for the second quarter, which, while below market expectations, exceeded the company's annual guidance [1]. Financial Performance - The net loss narrowed by 54.7% year-on-year, outperforming market expectations [1]. - The management maintained the annual sales guidance, projecting a year-on-year increase of over 30% [1]. Business Development - The indications for RC18 and RC48 are gradually expanding, and the company's new immunotherapy (I/O) and ADC research and development pipeline is taking shape [1]. - Credit Lyonnais has raised its net profit forecasts for 2025, 2026, and 2027 by 79.6%, 106.9%, and 116.4% respectively [1]. Target Price Adjustment - The target price has been significantly raised from HKD 33.7 to HKD 103, while maintaining an "outperform" rating [1].

Core Viewpoint - Rongchang Biologics (09995) has seen a stock price increase of over 4%, currently trading at 92.4 HKD with a transaction volume of 625 million HKD, following the announcement of its mid-2025 performance results [1] Financial Performance - The company reported product sales and R&D service revenue of 1.092 billion RMB, representing a year-on-year increase of 47.6% [1] - R&D expenses decreased by 19.7% to 647 million RMB, while the net loss was approximately 450 million RMB, a reduction of 42.4% year-on-year [1] Product Performance - The revenue increase is primarily attributed to the strong sales growth of its autoimmune commercial product, Taitasip, and the oncology commercial product, Vidisilimab [1] - Core product sales are expected to continue steady growth, with an anticipated annual revenue increase of over 30% [1] Market Outlook - The company is poised for long-term growth, with the potential commercialization of RC28 upon achieving licensing [1] - The international expansion of Taitasip is expected to enhance its competitiveness in indications such as MG, while the Phase III trial of Vidisilimab is accelerating [1] - Positive efficacy signals have been observed for RC148 in IO-resistant patients, and there is demand from multiple multinational corporations (MNCs) for PD-1/VEGF dual antibodies, indicating strong overseas potential [1]

Core Insights - Rongchang Biopharmaceutical (688331.SH) reported a significant increase in revenue for the first half of 2025, achieving 1.098 billion yuan, a year-on-year growth of 48.02% [1][3] - The company recorded a net loss attributable to shareholders of 450 million yuan, an improvement from a loss of 780 million yuan in the same period last year [1][3] - The net cash flow from operating activities was -246 million yuan, also showing improvement from -820 million yuan year-on-year [1][3] Financial Performance - Revenue for the first half of 2025 was 1,097,953,438.31 yuan, compared to 741,756,779.89 yuan in the previous year, marking a 48.02% increase [3] - The net profit attributable to shareholders was -449,568,663.07 yuan, improving from -780,459,767.69 yuan in the previous year [3] - The net cash flow from operating activities was -245,539,255.27 yuan, compared to -820,169,537.32 yuan in the previous year [3] Historical Financial Data - In the years 2022, 2023, and 2024, the net profit attributable to shareholders was -999 million yuan, -1.511 billion yuan, and -1.468 billion yuan respectively [4] - The net profit after deducting non-recurring gains and losses for the same years was -1.117 billion yuan, -1.543 billion yuan, and -1.507 billion yuan respectively [4] Capital Raising Activities - Rongchang Biopharmaceutical raised a total of 2.612 billion yuan through its initial public offering, with a net amount of 2.506 billion yuan after expenses [5] - The company plans to use the funds for various projects, including new drug development and working capital [5] - In 2024, the company announced a plan to raise up to 1.952 billion yuan through a private placement of A-shares, with proceeds intended for new drug research and development [5] H-share Issuance - On May 30, 2025, the company completed the issuance of H-shares, raising approximately 806.36 million HKD [5][6] - The net proceeds from the H-share issuance will primarily be used for the research and development of the core product, RC18, and its indications [6] - Following the issuance, the total number of H-shares increased from 189,581,239 to 208,581,239, while the number of A-shares remained unchanged at 355,027,004 [7]

Core Viewpoint - Rongchang Biologics (09995) has shown a significant increase in stock price, rising over 4% to HKD 92.4, with a trading volume of HKD 625 million, following the announcement of its mid-year results for 2025 [1] Financial Performance - The company reported product sales and R&D service revenue of CNY 1.092 billion, representing a year-on-year increase of 47.6% [1] - R&D expenses decreased by 19.7% to CNY 647 million, while the net loss was approximately CNY 450 million, a reduction of 42.4% year-on-year [1] Revenue Drivers - The increase in revenue is primarily attributed to the strong sales growth of its self-developed immunotherapy product, Taitasip, and the oncology product, Vidisicimab [1] Market Outlook - Huatai Securities expresses optimism about the company's long-term growth potential, forecasting a revenue increase of over 30% for the year [1] - The company is expected to enter commercialization with RC28 following the achievement of licensing [1] - The global competitiveness of Taitasip in indications such as MG is viewed positively, and the Phase III trial of Vidisicimab is accelerating [1] - RC148 has shown positive efficacy signals in IO-resistant patients, and there is demand from multiple multinational corporations for PD-1/VEGF dual antibodies, indicating strong overseas potential for the company [1]