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之內容概不 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 就 因 本 公 告 全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責 任。 Sihuan Pharmaceutical Holdings Group Ltd. 四環醫藥控股集團有限公司 （於百慕達註冊成立的有限公司） （股份代號：0460） GLP-1R/GCGR雙靶點藥物作為GLP-1藥 物 領 域 的 創 新 方 向，具 有 廣 闊 的 市 場 潛 力。根據國際糖尿病聯盟(IDF)數據顯示，二零二四年中國成年糖尿病患者達1.48 億 人，預 計 二 零 五 零 年 將 增 長 至1.683億 人；根 據 國 家 衛 健 委 數 據 顯 示，我 國 成 人超重肥胖率已突破50%，若 不 得 到 有 效 遏 制，到 二 零 三 零 年 這 一 比 例 將 達 到 70.5%。根 據 諾 和 諾 德 財 報，二 零 二 五 年 上 半 年，諾 和 諾 德 的 司 美 格 魯 肽 注 射 液 全球銷售額1,014億 丹 麥 克 ...

Core Viewpoint - The influx of southbound capital has turned Hong Kong stocks into a "reservoir" for Asian capital, with significant investments flowing into the healthcare sector, particularly in companies like Four Seasons Pharmaceutical [1][3]. Group 1: Capital Inflow and Market Performance - As of September 3, 2025, southbound funds through the Hong Kong Stock Connect have totaled approximately 935.997 billion RMB, with the Hang Seng healthcare sector seeing a net inflow of 163.683 billion RMB [1]. - Four Seasons Pharmaceutical has experienced a substantial increase in stock holdings by southbound funds, rising from 528 million shares at the beginning of the year to 1.321 billion shares by September 3, representing an increase in ownership from 8.83% to 14.15% of total shares [1]. - The stock price of Four Seasons Pharmaceutical has surged over 140% year-to-date, reflecting strong market confidence [3]. Group 2: Financial Performance and Business Segments - Four Seasons Pharmaceutical has entered a profit turnaround phase, achieving a total revenue of approximately 1.146 billion RMB in the first half of 2025, a year-on-year increase of 20.7%, and a net profit of approximately 103 million RMB [4]. - The company's gross margin improved to 66.1%, up from 64.2% in the same period last year, indicating effective cost control and product optimization [4]. - The medical aesthetics segment is the primary revenue driver, generating approximately 580 million RMB in revenue, a year-on-year increase of 81.3%, with segment profit soaring by 215.3% [4]. - The innovative drug segment also showed significant growth, with revenue reaching 58 million RMB, a year-on-year increase of 96.6%, primarily driven by the sales of diabetes medications [4]. Group 3: R&D and Product Development - Research and development expenditures decreased by 21.9% to 153 million RMB, reflecting a shift towards commercialization as core products enter the market [5]. - The company has established a comprehensive product line in the medical aesthetics sector, including various injectables and devices, with significant market penetration [7]. - Four Seasons Pharmaceutical is actively exploring AI applications in medical aesthetics, aiming to enhance product development and market competitiveness [7]. Group 4: Dividend Policy and Market Valuation - The company announced an interim cash dividend of 0.99 RMB per share, continuing its history of consistent dividends since its listing in 2010, which reflects management's confidence in future cash flows [6]. - As of September 3, 2025, the market capitalization of Four Seasons Pharmaceutical was 15.1 billion HKD, while the estimated valuation of its medical aesthetics business and cash reserves exceeds 17.3 billion HKD, indicating that the market has not assigned any value to its innovative drug segment [15][17]. - The management has demonstrated confidence in the company's future by executing 12 share buybacks in 2025, totaling approximately 94.867 million RMB [15].

Core Viewpoint - The influx of southbound capital has turned Hong Kong stocks into a "reservoir" for Asian capital, with significant investments flowing into the healthcare sector, particularly in companies like Four Seasons Pharmaceutical [1][3]. Group 1: Capital Inflow and Market Performance - As of September 3, 2025, southbound funds through the Hong Kong Stock Connect have totaled approximately 935.997 billion RMB, with the Hang Seng Healthcare sector seeing a net inflow of 163.683 billion RMB [1]. - Four Seasons Pharmaceutical has experienced a substantial increase in stock holdings via Hong Kong Stock Connect, rising from 528 million shares at the beginning of the year to 1.321 billion shares by September 3, representing an increase in ownership from 8.83% to 14.15% [1][3]. Group 2: Financial Performance and Business Segments - Four Seasons Pharmaceutical reported a revenue of approximately 1.146 billion RMB for the first half of 2025, marking a year-on-year growth of 20.7%, and achieved a net profit of approximately 103 million RMB, indicating a turnaround from previous losses [3][4]. - The medical aesthetics segment is the primary revenue driver, generating around 580 million RMB in the first half of 2025, a year-on-year increase of 81.3%, with segment profit soaring by 215.3% [4][5]. - The innovative drug segment also showed significant growth, with revenues reaching 58 million RMB, a 96.6% increase, primarily driven by the sales of diabetes medications [4][5]. Group 3: Strategic Developments and Future Outlook - The company has a robust cash reserve of nearly 3.9 billion RMB, and its current valuation is below the combined value of its medical aesthetics and cash reserves, suggesting that the market is undervaluing its innovative drug business [3][5]. - Four Seasons Pharmaceutical has announced a mid-term cash dividend of 0.99 RMB per share, continuing its history of consistent dividends since its listing in 2010, which reflects management's confidence in future cash flows and profitability [5][6]. - The company is actively expanding its product matrix in the medical aesthetics sector, with a comprehensive range of products and a focus on AI-driven development in collaboration with biotechnology firms [6][7]. Group 4: Innovation and Market Position - The innovative drug business is entering a harvest phase, with several key drugs approved for market, including those targeting cancer and diabetes, which are expected to significantly enhance revenue streams [8][10]. - The company is also exploring international markets, with a focus on emerging regions, which could provide additional growth opportunities [13][14]. - The current market valuation of Four Seasons Pharmaceutical is significantly lower than the combined value of its medical aesthetics and cash, indicating a potential for substantial valuation recovery as the innovative drug segment matures [12][16].

Sihuan Pharmaceutical Holdings Group Ltd. 四環醫藥控股集團有限公司 （於百慕達註冊成立的有限公司） （股份代號：0460） 建議分拆及軒竹生物於 香港聯合交易所有限公司 主板獨立上市之更新資料 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依賴該等內容而引致的任何損失承擔任何責 任。 本 公 告 僅 供 參 考，並 不 構 成 收 購、購 買 或 認 購 任 何 證 券 的 邀 請 或 要 約。 本公告並不構成在美國境內或在任何其他司法管轄區提呈出售要約或招攬購 買 任 何 證 券 的 要 約，倘 未 根 據 任 何 該 等 司 法 管 轄 區 的 證 券 法 辦 理 登 記 或 未 獲 批 准 而 於 上 述 地 區 進 行 上 述 要 約、招 攬 或 出 售 即 屬 違 法。本 公 告 所 述 的 證 券 將 不會根據經修訂的1933年 美 國 證 券 法（「證券法」）登 記，亦 不 得 在 ...

Group 1 - The company reported a strong performance in H1 2025, achieving a revenue of 1.15 billion yuan, a year-on-year increase of 20.7%, driven by the high-margin medical aesthetics business, with an overall gross margin of 66.1%, up 2 percentage points year-on-year [1] - The company turned a profit with a net profit of 66 million yuan and a net profit attributable to shareholders of 103 million yuan, compared to a loss in the previous year [1] - Cash and cash equivalents, along with financial deposits, reached 3.89 billion yuan, indicating strong cash flow and payment capacity, with a declared dividend of 0.99 cents per share [1] Group 2 - The medical aesthetics segment achieved a revenue of 590 million yuan in H1 2025, a year-on-year increase of 81.3%, with segment profit reaching 310 million yuan, up 215.3% [1] - The company successfully deepened cooperation with leading institutions, adding 44 key partner groups and penetrating over 1,000 core high-end medical aesthetics institutions [1] Group 3 - The regenerative medicine category has established a dual-system covering over 200 high-end medical aesthetics institutions and 1,000 certified doctors, with a focus on existing product penetration and capturing market share in the regenerative field [2] - The generic drug business experienced a revenue decline of 15.8% to 500 million yuan in H1 2025 due to national procurement policies, but the company maintained stable cash flow and saw a 1.2% increase in operating profit to 170 million yuan [2] Group 4 - The innovative drug segment reported a revenue of 58 million yuan in H1 2025, a year-on-year increase of 96.6%, with the subsidiary having over 10 innovative drug products in the pipeline [3] - The company’s core product, insulin, expanded its coverage to 1,800 hospitals, achieving a 200% year-on-year sales growth due to volume-based procurement policies [3] Group 5 - The company is expected to achieve revenues of 2.43 billion yuan, 3.71 billion yuan, and 5.08 billion yuan from 2025 to 2027, with growth rates of 28%, 53%, and 37% respectively, and net profits of 180 million yuan, 680 million yuan, and 1.02 billion yuan [3]

Core Viewpoint - Four Seasons Pharmaceutical (00460) has seen a significant stock price increase, with a recent rise of over 8%, attributed to strong mid-year performance and strategic initiatives in AI technology for medical aesthetics [1] Financial Performance - The company reported a revenue of 1.15 billion HKD for the first half of the year, representing a year-on-year growth of 20.7% [1] - The overall gross margin improved to 66.1%, an increase of 2 percentage points compared to the previous year [1] - Research and development expenses decreased by 21.9% to 150 million HKD, a reduction of 43 million HKD year-on-year [1] - The company achieved a net profit of 66 million HKD, with a net profit attributable to shareholders of 103 million HKD, marking a turnaround from losses in the previous year [1] Strategic Initiatives - Four Seasons Pharmaceutical has signed a framework agreement with Deep Origin Pharmaceutical to promote the deep application and industrialization of AI technology in the development of medical aesthetic products [1] - The collaboration will lead to the establishment of an AI research and development company, indicating a significant step in the company's strategic layout in the "AI + Medical Aesthetics" innovation sector [1]

Group 1 - The core viewpoint of the article highlights the significant performance improvement of Four Seasons Pharmaceutical, with a notable increase in stock price and positive financial results [1] - The company reported a revenue of 1.15 billion yuan for the first half of the year, representing a year-on-year growth of 20.7% [1] - The overall gross margin improved to 66.1%, an increase of 2 percentage points compared to the previous year, driven by the high-margin medical aesthetics business [1] Group 2 - Research and development expenses decreased by 21.9% to 150 million yuan, a reduction of 43 million yuan year-on-year, indicating significant cost management improvements [1] - The company achieved a net profit of 66 million yuan, with a net profit attributable to shareholders of 103 million yuan, marking a turnaround from losses in the previous year [1] - Four Seasons Pharmaceutical announced a framework agreement with Deep Origin Pharmaceutical to establish an AI research and development company, focusing on the application of AI technology in the medical aesthetics sector [1]

Core Insights - Four Seasons Pharmaceutical (0460.HK) saw its stock price rise over 9.3% during trading, reaching a high of HKD 1.64, the highest since February 2022. The stock has increased over 140% year-to-date [1] Financial Performance - The company reported a mid-year revenue of CNY 1.146 billion, representing a year-on-year growth of 20.7% [1] - The net profit attributable to shareholders was CNY 103 million, marking a turnaround from losses in the previous year [1] - Overall gross margin improved to 66.1%, an increase of 2 percentage points year-on-year [1] - The medical aesthetics segment performed exceptionally well, generating revenue of CNY 590 million, a year-on-year increase of 81.3%, with segment profit reaching CNY 310 million, up 215.3% [1] - The company declared an interim cash dividend of CNY 0.0099 per share [1] Strategic Developments - Four Seasons Pharmaceutical has signed a framework agreement with Deep Origin Pharmaceutical Biotechnology (Beijing) Co., Ltd. to promote the application of artificial intelligence in the development of medical beauty products [1] - The partnership aims to establish an AI research and development company led by Four Seasons, focusing on exploring AI-driven new medical beauty product development, marking a significant step in the company's strategic layout in the AI + medical aesthetics innovation sector [1]

Summary of Key Points Core Viewpoint - The company, Sihuan Pharmaceutical, has been actively repurchasing its shares, indicating a strategy to enhance shareholder value and confidence in its stock performance [2]. Repurchase Details - On September 2, 2025, Sihuan Pharmaceutical repurchased 13.096 million shares at a price range of HKD 1.480 to HKD 1.510, totaling HKD 19.572 million [2]. - The stock closed at HKD 1.500 on the same day, reflecting a decline of 1.32%, with a total trading volume of HKD 135 million [2]. - Year-to-date, the company has conducted 12 share repurchase transactions, acquiring a total of 130 million shares for a cumulative amount of HKD 104 million [2]. Repurchase Breakdown - The following table summarizes the repurchase activities: | Date | Shares Repurchased (10,000 shares) | Highest Price (HKD) | Lowest Price (HKD) | Total Amount (10,000 HKD) | |------------|-------------------------------------|---------------------|--------------------|---------------------------| | 2025.09.02 | 1309.60 | 1.510 | 1.480 | 1957.20 | | 2025.06.17 | 2000.00 | 1.100 | 1.080 | 2182.00 | | 2025.05.12 | 1000.00 | 0.700 | 0.680 | 688.80 | | 2025.05.06 | 2000.00 | 0.740 | 0.730 | 1468.40 | | 2025.05.02 | 268.20 | 0.710 | 0.710 | 190.42 | | 2025.04.30 | 68.50 | 0.710 | 0.710 | 48.64 | | 2025.04.29 | 187.40 | 0.690 | 0.690 | 129.31 | | 2025.04.28 | 1617.40 | 0.680 | 0.660 | 1088.67 | | 2025.04.16 | 1000.00 | 0.640 | 0.620 | 627.40 | | 2025.04.09 | 1000.00 | 0.600 | 0.580 | 586.60 | | 2025.04.07 | 1500.00 | 0.600 | 0.550 | 875.40 | | 2025.02.11 | 1000.00 | 0.580 | 0.570 | 572.30 | [2]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% against the market benchmark within the next six months [19]. Core Insights - The company has shown a significant turnaround in its financial performance, achieving a net profit of 0.66 billion yuan in the first half of 2025, compared to a loss in the previous year [3][7]. - The revenue for the first half of 2025 reached 1.15 billion yuan, reflecting a year-on-year growth of 20.7%, driven by the high-margin medical aesthetics business [3]. - The company has a strong cash position with total cash and equivalents amounting to 3.89 billion yuan, ensuring robust cash flow and payment capabilities [3]. Summary by Sections Medical Aesthetics - The medical aesthetics segment generated 0.59 billion yuan in revenue for the first half of 2025, marking an impressive year-on-year growth of 81.3%, with segment profit increasing by 215.3% to 0.31 billion yuan [4]. - The company has expanded its partnerships, adding 44 key cooperative groups and penetrating over 1,000 high-end medical aesthetics institutions [4]. Generic Drugs - The generic drug business experienced a revenue decline of 15.8% to 0.50 billion yuan in the first half of 2025 due to national procurement policies, but operating profit increased by 1.2% to 0.17 billion yuan [5]. Innovative Drugs - The innovative drug segment saw a revenue increase of 96.6% to 0.058 billion yuan in the first half of 2025, with significant growth in sales of diabetes medications and the launch of new oncology drugs [6]. - The company has a pipeline of over 10 innovative drug products under development, with two already approved for market [6]. Financial Forecast and Valuation - The company is projected to achieve revenues of 2.43 billion yuan, 3.71 billion yuan, and 5.08 billion yuan for 2025, 2026, and 2027 respectively, with growth rates of 28%, 53%, and 37% [7]. - The forecasted net profit for 2025 is 0.18 billion yuan, with significant increases expected in subsequent years [7].