Core Insights - The public fund industry has experienced a fruitful year in the structural bull market, with active equity funds making a significant comeback, particularly supported by the AI computing and innovative pharmaceutical sectors [1][2]. Group 1: Fund Performance - A total of 53 funds have achieved over 100% returns year-to-date as of September 30, with 42 of these being active equity funds, showcasing the fund managers' effective strategies in high-growth sectors [2][4]. - The top-performing fund, managed by Ren Jie, achieved a return of 194.49%, heavily investing in the overseas computing industry chain, with significant contributions from stocks like Shenghong Technology, which surged 581% this year [2][3]. - Other notable funds include Zhang Wei's fund with a 155.09% return, focusing on Hong Kong's innovative pharmaceuticals, and Feng Ludan's fund with a 140.86% return, both capitalizing on the AI industry chain [3]. Group 2: Commodity Performance - Gold ETFs have emerged as the standout performers in the commodity fund sector, with all 14 gold ETFs showing gains exceeding 40% year-to-date, driven by rising international gold prices [5][6]. - The highest-performing gold ETFs, managed by Zhao Xu and Rong Ying, reported returns of 41.48% and 41.47%, respectively, reflecting strong long-term investment value [5][6]. Group 3: Market Outlook - Looking ahead to Q4, several fund companies suggest maintaining a focus on growth sectors while also considering cyclical and consumer stocks, as the market has already seen significant gains [7][8]. - The ongoing AI technology innovation is expected to provide a premium valuation for related assets, despite potential short-term volatility [8][9]. - The overall market sentiment remains bullish, with continued optimism for emerging technologies and cyclical financial sectors, particularly in the context of the "anti-involution" policies that may enhance competition in the renewable energy sector [9].

Core Insights - The report by Zhongyou Securities focuses on the development of drugs in the autoimmune (self-immune) field, analyzing market demand, dual-antibody research priorities, and related investment targets [1][3]. Market Demand - The autoimmune field has a large patient base and long medication cycles, leading to the potential for blockbuster drugs, such as Dupilumab (Dupi), which has annual sales exceeding $10 billion. Key indications like atopic dermatitis (AD), asthma, and chronic obstructive pulmonary disease (COPD) have millions of affected patients, with nearly 9 million patients accessible to biological agents [1][2]. - Existing therapies still have unmet needs, including the need for long-acting formulations to reduce dosing frequency and improve efficacy, as well as expanding the patient population currently limited by screening criteria [1][2]. Dual-Antibody Research Focus - From the perspective of type 2 inflammation mechanisms, targets can be categorized into upstream (e.g., TSLP, IL-33) and downstream (e.g., IL-4, IL-13). Single-target monoclonal antibodies have limited efficacy, making dual antibodies an important direction due to their synergistic effects. In respiratory diseases, the TSLP×IL-13 (or IL-4R) dual antibody shows significant advantages, with clinical data indicating better reductions in FeNO and eosinophils compared to single-target drugs [2][3]. - The report emphasizes the potential of TSLP dual antibodies, highlighting leading global progress from companies like Sanofi (Lunsekimig) and Pfizer (triple antibodies), as well as domestic advancements from companies like Kangnuo (CM512) and Innovent (IBI3002) [2][3]. Investment Targets - Key investment targets include Kangnuo (CM512), which is leading in domestic progress, Innovent (IBI3002), and Qianxin Biotechnology (QX030N), with a focus on dual-antibody development [3]. Conclusion - Overall, TSLP dual antibodies in the autoimmune field show significant potential and may become the next generation of blockbuster drugs, driven by high patient numbers and unmet medical needs [1][3].

Investment Rating - The industry investment rating is "Strong Outperform" [2] Core Insights - The report emphasizes the potential of TSLP-targeted bispecific antibodies in addressing unmet needs in the autoimmune sector, particularly in asthma and atopic dermatitis [4][6] - The success of Dupilumab (Dupi) illustrates the demand for long-acting, multi-indication therapies in a market characterized by high patient numbers and chronic conditions [5][15] - The report identifies a significant market opportunity driven by high disease prevalence and the need for new therapeutic options [5][15] Summary by Sections High Disease Prevalence Creates Market Opportunities - The report highlights the large patient populations for conditions like asthma and atopic dermatitis, with millions affected, indicating a substantial market for new treatments [14][15] - Existing therapies have unmet needs, particularly in terms of long-acting formulations and improved efficacy [18][19] Focus on Bispecific Antibodies - The report suggests prioritizing bispecific antibodies that target TSLP and IL-13, as they have shown clinical promise in enhancing efficacy and expanding patient populations [6][22] - Companies such as 康诺亚, 信达生物, 荃信生物, and 联邦制药 are identified as key players in this space [6] Respiratory Diseases and Bispecific Antibodies - In the respiratory disease sector, particularly asthma and COPD, the report notes the need for long-term management and the potential of bispecific antibodies to address this challenge [25][37] - The market for asthma biologics is projected to reach approximately $7.5 billion by 2023, with significant growth expected [25][28] Clinical Data and Efficacy - The report discusses the clinical efficacy of various biologics, noting that Dupilumab and Tezepelumab have shown significant improvements in asthma control and quality of life [34][35] - The combination of TSLP and IL-4R is highlighted as a promising therapeutic strategy, with early clinical data supporting its potential [37][47]

Core Viewpoint - Chronic Obstructive Pulmonary Disease (COPD) has a high prevalence and mortality rate, indicating a significant unmet medical need for new treatment options [1] Group 1: Unmet Medical Needs in COPD - COPD is a leading cause of disability and death globally, with approximately 300 million cases worldwide and 100 million in China [1] - Current standard treatments (LAMA/LABA/ICS) have been in use for 40 years and carry risks of pneumonia, cardiovascular issues, and urinary tract infections, highlighting the urgent need for new therapies [1] Group 2: PDE3/4 Inhibitors and Market Activity - Merck acquired Verona for $10 billion to obtain Ensifentrine, while GSK spent approximately $12.5 billion to acquire HRS-9821 from Hansoh Pharma, reflecting the importance of the respiratory market and PDE3/4 targeted drugs [2] - PDE3 and PDE4 inhibitors have synergistic effects, potentially improving airway smooth muscle contraction and controlling inflammation, thus showing significant application potential [2] - Ensifentrine received FDA approval in June 2024, with sales reaching $217 million by Q2 2025, representing a 44% quarter-over-quarter growth, indicating substantial market potential [2] Group 3: Targeted Therapies for Eosinophilic Phenotype - Dupilumab (IL-4R) and mepolizumab (IL-5) have been successfully approved for COPD, focusing on high eosinophil count populations [3] - Dupilumab, the first targeted therapy for COPD, was approved by the FDA in 2024, with sales exceeding $14 billion in 2024 [3] - Mepolizumab showed positive results in trials with eosinophilic phenotype patients, demonstrating a correlation between eosinophil count and reduced acute exacerbation rates [3] Group 4: Emerging Targets and Domestic Innovations - TSLP and ST2/IL33 targets currently lack approved drugs, but domestic companies are innovating [4] - Amgen/AZ's tezepelumab is the only TSLP monoclonal antibody on the market, while domestic firms like Zhengda Tianqing and Kangnuo are developing differentiated therapies with promising efficacy [4] - The ST2/IL33 target, which is upstream of IL-4/IL-13, is being explored by domestic companies, with no approved drugs globally yet [4]

Company Overview - Keymed Biosciences Inc. focuses on innovative biotherapies for autoimmune and oncology treatments, with multiple candidates in clinical/commercial stages[16]. - The company has established a comprehensive integrated platform covering all key functions of biopharmaceutical development, enhancing efficiency in drug discovery and development[16]. - Keymed's proprietary technology includes an innovative antibody discovery platform and a novel T cell redirecting bispecific antibody platform[16]. - The company aims to advance a diverse pipeline of differentiated antibody therapies, including monoclonal antibodies, antibody-drug conjugates, bispecific antibodies, and small nucleic acid drugs[16]. - Keymed collaborates with other pharmaceutical and biotech companies to enhance internal drug discovery and development capabilities[16]. - The company is committed to cost-effective and rapid discovery, construction, scaling, and advancement of its innovative therapies[16]. - Keymed's candidates are leading competitors in their respective therapeutic areas, indicating strong market positioning[16]. - The company is focused on maintaining a solid foundation in biomedical research to support its development efforts[16]. - Keymed's operational strategy includes a focus on target validation, lead molecule discovery and optimization, and clinical development[16]. Financial Performance - Revenue for the six months ended June 30, 2025, reached RMB 498,752 thousand, a significant increase from RMB 54,682 thousand in the same period of 2024, representing a growth of approximately 812%[57]. - Gross profit for the same period was RMB 465,276 thousand, compared to RMB 50,946 thousand in 2024, indicating a substantial increase in profitability[57]. - The pre-tax loss for the six months ended June 30, 2025, was RMB 75,664 thousand, a decrease from RMB 330,524 thousand in the same period of 2024, indicating improved financial performance[57]. - The company reported a loss before tax of RMB 75,664,000, an improvement from a loss of RMB 330,524,000 in the prior year[140]. - The company reported a net loss of RMB 336,745 thousand, compared to a net loss of RMB 330,524 thousand for the same period in 2024, indicating a slight increase in losses[149]. - The company’s total liabilities increased to RMB 1,435,554,000 from RMB 1,291,354,000, indicating a rise in financial obligations[146]. - The company’s net asset value rose to RMB 3,195,338,000 from RMB 2,475,212,000, reflecting a solid increase in equity[146]. Research and Development - The company is conducting a Phase III clinical trial for CM310 in adolescents with moderate-to-severe atopic dermatitis, focusing on long-term safety assessments[22]. - CMG901 (AZD0901), a Claudin 18.2 antibody-drug conjugate, has received fast track and orphan drug designations from the FDA for treating advanced gastric cancer[23]. - The company is advancing multiple clinical studies for CMG901 (AZD0901) in various solid tumors, including pancreatic and biliary cancers[24]. - CM512, a dual-specificity antibody targeting TSLP and IL-13, shows potential for effective suppression of allergic inflammatory responses[25]. - The company has initiated two Phase II clinical trials for CM512, focusing on moderate to severe atopic dermatitis and chronic rhinosinusitis with nasal polyps, with patient enrollment ongoing[27]. - CM336, a bispecific antibody targeting BCMA and CD3, has completed patient enrollment in a Phase I/II clinical study for relapsed or refractory multiple myeloma[31]. - CM313, a CD38-targeting monoclonal antibody, is undergoing a Phase II clinical study for primary immune thrombocytopenia, with patient enrollment completed[35]. - The company is preparing to initiate multiple Phase II studies for CM313 in various conditions, including IgA nephropathy and refractory aplastic anemia[36]. Collaborations and Licensing - AstraZeneca has exclusive global rights for the research, development, registration, production, and commercialization of CMG901 (AZD0901) as of February 2023[23]. - A licensing agreement with Belenos Biosciences grants exclusive rights for CM512 and CM536 outside Greater China, with potential milestone payments up to $170 million[27]. - The company has entered into an exclusive licensing agreement with Ouro Medicines Ltd for CM336, with potential additional payments up to $610 million[34]. - The company has entered into multiple licensing agreements, including a USD 10,000,000 upfront payment agreement with Belenos Biosciences, contributing RMB 3,155,000 in revenue from related R&D support services[171]. Production and Capacity - The production capacity at the Chengdu facility has reached 20,500 liters, compliant with national and FDA cGMP regulations, ensuring high-quality antibody drug production[48]. - The company plans to further expand its cGMP-compliant production capacity to meet the anticipated increase in production demand[56]. Shareholder and Governance - The company has adopted the Corporate Governance Code to ensure accountability and protect shareholder interests[81]. - As of June 30, 2025, Dr. Bo Chen holds a 25.16% stake in the company through Moonshot Holdings Limited, which he controls[98]. - Moonshot Holdings Limited also holds 75,151,482 shares, representing a 25.16% ownership in the company[101]. Employee and Operational Information - As of June 30, 2025, the company had a total of 1,469 full-time employees, with 7 employees working overseas[80]. - The company issued 375,250 restricted stock units under the 2021 plan and 0 under the 2022 plan during the reporting period[80]. Cash Flow and Assets - Cash and cash equivalents, along with bank deposits, increased by RMB 640 million to RMB 2,796 million, mainly due to the issuance of 19 million new shares[67]. - The company’s cash flow from operating activities for the six months ended June 30, 2025, was a net outflow of RMB 180,956 thousand, an improvement from a net outflow of RMB 365,921 thousand in the prior year[151]. - Total cash and cash equivalents at the end of the period increased to RMB 941,714 thousand, up from RMB 709,912 thousand as of June 30, 2024[153]. Regulatory and Compliance - The audit committee confirmed compliance with applicable accounting principles and standards for the interim financial information[87]. - The company has not reported any significant adverse changes regarding regulatory approvals for its candidate drugs as of the report date[45].

Core Viewpoint - 康诺亚-B (02162) has initiated its first Phase III clinical trial for the dual antibody drug CM336, which aims to treat relapsed or refractory multiple myeloma (R/R MM) patients who have previously undergone at least two lines of treatment [1] Group 1: Company Developments - 康诺亚's stock price increased by over 5% during trading, currently reported at 74.80 HKD with a trading volume of 89.07 million HKD [1] - The Phase III trial for CM336 is a randomized, open-label, multi-center study involving 280 patients [1] - The primary endpoint of the study is progression-free survival (PFS) [1] Group 2: Clinical Trial Background - CM336 has previously completed a Phase I/II study for R/R MM, where 23 patients were evaluated for efficacy [1] - In the dose escalation cohort, the objective response rates (ORR) for the ≤5mg, 20-40mg, and 80-160mg groups were 17%, 71%, and 80% respectively [1] - The rates of stringent complete response or complete response in these groups were 17%, 71%, and 60% respectively [1]

Core Viewpoint - Connaissance-B (02162) has initiated its first Phase III clinical trial for CM336, a dual antibody drug, which has led to a significant increase in its stock price, reflecting positive market sentiment towards the company's progress in drug development [1] Company Summary - Connaissance-B's stock price rose over 5% during trading, closing at 75.4 HKD with a trading volume of 87.53 million HKD [1] - The Phase III trial for CM336 is a randomized, open-label, multi-center study involving 280 patients, aimed at evaluating the drug's efficacy and safety in treating relapsed or refractory multiple myeloma (R/R MM) patients who have previously undergone at least two lines of treatment [1] - The primary endpoint of the study is progression-free survival (PFS) [1] Clinical Trial Summary - CM336 has previously completed a Phase I/II study for R/R MM, where 23 patients were evaluated for efficacy [1] - Results from the earlier study indicated that at a median follow-up of 12.1 months, the objective response rates (ORR) for the ≤5 mg, 20-40 mg, and 80-160 mg groups were 17%, 71%, and 80% respectively [1] - The rates of strict complete response or complete response among patients in these groups were 17%, 71%, and 60% respectively [1]

Group 1 - In the first half of the year, Sichuan signed 380 projects with a total investment of nearly 350 billion yuan, and introduced over 460 billion yuan in actual investment from external industries [1][2] - From January to July, 475 new foreign-invested enterprises were established in the province, with foreign direct investment (FDI) amounting to 1.255 billion USD, maintaining the leading position in the central and western regions [5][6] - The provincial economic cooperation department has implemented a "departmental linkage + precise scheduling" approach to attract major and quality projects, resulting in 43 specialized investment promotion activities and the signing of 108 key industrial chain projects [2][4] Group 2 - A three-level linkage scheduling mechanism for major investment projects has been established, which includes a project scheduling database, a problem list, and graded consultations to address challenges during the signing and landing process [3][4] - The province has introduced a series of measures to stabilize foreign investment, focusing on high-level opening up, improving foreign investment promotion, enhancing the effectiveness of open platforms, and increasing service guarantees for foreign investors [5][6] - The economic cooperation system has actively engaged with over 400 foreign enterprises, resolving more than 100 issues and facilitating an increase of 448 million USD in contract foreign investment from existing foreign enterprises [6]

Investment Rating - The report maintains an investment rating of "Outperform the Market" [5] Core Insights - The new drug sector has shown significant movements, with notable increases in stock prices for companies such as Kintor Pharmaceutical, which recently went public in Hong Kong, focusing on unmet clinical needs in oncology and immunology [2][3][21] - The KRAS G12D inhibitor GFH375 from Kintor Pharmaceutical has demonstrated promising clinical data in treating pancreatic cancer and non-small cell lung cancer (NSCLC), with an overall response rate (ORR) of 52% in pancreatic cancer and 68.8% in NSCLC [21][24] Summary by Sections Weekly New Drug Market Review - From September 15 to September 21, 2025, the top five gainers in the new drug sector included Kintor Pharmaceutical (+19.64%), Boan Biotechnology (+8.89%), and others, while the top five losers included Sanofi Pharmaceuticals (-17.16%) and others [1][13] Recommended Stocks to Watch - The report suggests focusing on several potential catalysts in the sector, including academic conferences and insurance negotiations. Key companies to watch include: 1. Differentiated GLP-1 assets: Zai Lab, EQRx, and others 2. Upgraded PD-1 products: CanSino Biologics and others 3. Companies likely to benefit from insurance negotiations: Hengrui Medicine, Kanghong Pharmaceutical, and others [2][17] New Drug Approval and Acceptance - This week, eight new drug applications were approved, and twelve new drug applications were accepted in China [3][25] Clinical Application Approvals - A total of 48 new drug clinical applications were approved, with 32 applications accepted this week [7][29]

Market Overview - The Hong Kong stock market showed a volatile trend, with the Hang Seng Index closing flat after briefly surpassing 27,000 points during the day [1] - The Hang Seng Index remained at 26,545.10, with a slight change of 0.00% and a 5-day increase of 0.59% [2] - The Hang Seng China Enterprises Index rose by 0.17%, closing at 9,472.35, with a 5-day increase of 1.15% [2] - The Hang Seng Tech Index increased by 0.37%, closing at 6,294.42, with a 5-day increase of 5.09% [2] Sector Performance - Large technology stocks showed mixed performance, with NIO, SenseTime, and Hua Hong Semiconductor rising over 4%, while Tencent Music and Horizon Robotics fell over 4% [4] - Gaming stocks performed strongly, with major players like Melco International Development, Sands China, and Wynn Macau rising over 6% [6] - Gold and precious metal stocks saw gains, with Shandong Gold rising over 6% and other gold-related stocks following suit [7] - Automotive parts stocks led the gains, with New Morning Power surging over 27% [9] - Tesla-related stocks were active, with Ganfeng Lithium rising by 9% and Li Auto also showing positive movement [10] Notable Stock Movements - The top gainers included: - NIO-SW: +4.45% [5] - SenseTime-W: +4.58% [5] - Shandong Gold: +6.13% [8] - New Morning Power: +27.66% [9] - Conversely, notable decliners included: - Tencent Music: -4.04% [5] - Orange Sky Golden Harvest: -8.54% [12] - Innovent Biologics: -5.50% [13] Capital Flows - Southbound funds recorded a net inflow of HKD 9.838 billion, with HK Stock Connect (Shanghai) contributing HKD 5.283 billion and HK Stock Connect (Shenzhen) contributing HKD 4.555 billion [14] Future Outlook - The market outlook suggests that the Hong Kong stock market may perform stronger following the Federal Reserve's potential interest rate cuts, particularly in sectors like healthcare, technology, and consumer goods [15]