Core Viewpoint - Xinhua Pharmaceutical (SZ000756) experienced a trading halt with a price of 17.16 yuan, marking a 10% increase and a total market capitalization of 11.837 billion yuan, driven by recent drug approvals, innovation in drug development, and improved cash flow [1] Group 1: Company Developments - Xinhua Pharmaceutical has recently obtained registration certificates for several drugs, including Fumaric Acid Vorinostat, Alendronate Sodium, and Fumaric Acid Bisoprolol, enhancing its product line in cardiovascular and digestive system treatments [1] - The company received clinical trial approval for its first-class innovative drug LXH-1211 tablets, indicating significant progress in its drug development efforts, which lays a foundation for long-term growth [1] - The net cash flow from operating activities for Q3 2025 increased by 26.65% year-on-year, reflecting improved financial management and boosting market confidence in the company [1] Group 2: Industry Context - The pharmaceutical industry remains a focal point for market attention, with innovative drug development being a critical direction for industry growth [1] - Companies within the pharmaceutical sector that have made research breakthroughs have seen active stock performance, suggesting that Xinhua Pharmaceutical's recent innovations may attract market investment [1] - Technical indicators suggest that the stock price may break through key resistance levels, potentially drawing in more investors and contributing to the stock's trading halt [1]

Core Insights - The company has revised its convertible bond issuance plan to focus on strategic transformation towards innovative drug development [1][2] - The previous acquisition project of Fangyuan Pharmaceutical has been removed due to high uncertainty related to its bankruptcy restructuring [1] - New projects have been added to enhance the focus on innovative drug research, including the III phase clinical study and registration of QHRD211 injection [1] Summary by Sections - **Convertible Bond Issuance Plan**: The company has systematically revised its plan for issuing convertible bonds, emphasizing a strategic shift towards innovative drug development [1][2] - **Project Adjustments**: The original project to acquire 100% of Fangyuan Pharmaceutical has been deleted from the funding plan, while new innovative drug research projects have been strengthened [1] - **Financial Data and Compliance**: The company updated its financial data and disclosure periods to ensure timely and compliant information disclosure, with all related documents revised accordingly [2] - **Management Decision**: The revision of the convertible bond plan reflects a cautious decision by the management to eliminate high-uncertainty projects and concentrate resources on innovative drug development [2]

Core Viewpoint - The report from Shenwan Hongyuan indicates a downward revision of earnings per share forecasts for CSPC Pharmaceutical Group due to increased R&D investment, with target price adjusted from HKD 12.7 to HKD 9.7, reflecting a potential upside of 31% while maintaining a buy rating [1] Group 1: Financial Performance - For the first three quarters of 2025, CSPC's revenue decreased by 12.3% year-on-year to CNY 19.89 billion, and net profit attributable to shareholders fell by 7.1% to CNY 3.51 billion, with Q3 showing a revenue increase of 3.4% to CNY 6.62 billion and net profit growth of 27.2% to CNY 0.964 billion, aligning with expectations [2] - The overall gross margin for the first three quarters declined by 4.9 percentage points to 65.6%, with the contribution from the prescription drug segment dropping from 82.3% to 77.7% [2] Group 2: Prescription Drug Segment - The sales of the prescription drug segment for the first three quarters fell by 17.3% to CNY 15.45 billion, including licensing revenue of CNY 1.54 billion, while Q3 sales rebounded to CNY 5.20 billion, marking a 1.6% year-on-year increase and a 9.6% quarter-on-quarter increase [3] - The sales of oncology products in the first three quarters plummeted by 56.8% to CNY 1.65 billion, accounting for 10.7% of the prescription drug segment's revenue, down from 20.4% in the previous year [3] - The raw material drug business saw a 22.3% year-on-year increase in vitamin C raw material revenue to CNY 1.79 billion, while antibiotic raw material revenue slightly decreased by 3.7% [3] Group 3: R&D and Pipeline - CSPC's R&D expenses increased by 7.9% year-on-year to CNY 4.19 billion, with the R&D expense ratio rising by 3.9 percentage points to 21.0% [5] - The company has 28 key pipelines in II/III phase clinical trials, nine products in phase II, and approximately 40 products in phase I, covering both oncology and non-oncology areas [5] - The SYS6010 (EGFR ADC) has received fast track designation from the FDA and breakthrough therapy designation from NMPA, with multiple clinical trials ongoing and data readouts expected in 2026 [4]

Core Viewpoint - The innovative drug Iza-bren developed by Baillie Tianheng has received formal acceptance for its market application, marking it as the world's first EGFR×HER3 dual-target ADC to enter the III clinical phase, which is expected to accelerate its market launch [2][4]. Group 1: Drug Development and Clinical Trials - Iza-bren is currently undergoing over 40 clinical trials in China and the United States for various tumor types, specifically targeting locally advanced or metastatic nasopharyngeal carcinoma [2][5]. - The drug has been included in the priority review list by the National Medical Products Administration (NMPA) based on interim analysis results from the BL-B01D1-303 study [4][5]. - Iza-bren has seven indications recognized as breakthrough therapy by the NMPA and one by the U.S. FDA [5]. Group 2: Research and Development Investment - Baillie Tianheng has significantly increased its R&D investment from CNY 196 million in 2020 to CNY 1.443 billion in 2024, with a total of CNY 4.811 billion invested over the past six years [3][9]. - In the first three quarters of 2025, the company’s R&D expenditure reached CNY 1.772 billion, surpassing the total for 2024, reflecting a year-on-year growth of 90.23% [9][10]. - The company employs 1,360 R&D personnel, accounting for 48.16% of its total workforce, with a notable increase in staff with master's degrees or higher [10]. Group 3: Financial Performance and Market Response - Baillie Tianheng's stock price has doubled since the beginning of 2025, with a significant increase from CNY 24.70 per share at the time of its IPO to approximately CNY 384.97 per share by November 2025, representing a cumulative increase of over 14 times [10]. - The company experienced a substantial revenue increase in 2024, reaching CNY 5.823 billion, a 936.31% year-on-year growth, primarily due to a collaboration agreement with Bristol-Myers Squibb [7][10].

Group 1 - Innovative pharmaceutical companies in the Future Science City are achieving significant progress in drug development, including novel targeted therapies and gene therapies for ophthalmology and personalized cancer vaccines [1][2] - Innovent Biologics announced the completion of the first patient dosing for its novel ADC (antibody-drug conjugate) ICP-B794, which targets the B7-H3 antigen, a first-of-its-kind therapy that could fill a treatment gap for various solid tumors [1] - The drug is designed to minimize off-target effects and provide new treatment options for patients with lung cancer, esophageal cancer, nasopharyngeal cancer, and prostate cancer [1] Group 2 - Jinda Jiuzhou's gene therapy drug GA001 has received Fast Track designation from the FDA, expediting its clinical trial and registration process, with significant improvements in vision reported among trial participants [2] - GA001 is not limited by specific gene mutations, making it suitable for various causes of late-stage retinitis pigmentosa, indicating substantial market potential [2] - New Harmony Biotech's mRNA personalized cancer vaccine XH001 has initiated Phase I clinical trials, marking it as the first of its kind in China and lacking global market equivalents [2]

Core Insights - The company reported a 12.3% year-on-year decline in revenue for the first three quarters of 2025, totaling 19.89 billion yuan, while net profit attributable to shareholders decreased by 7.1% to 3.51 billion yuan, with Q3 showing a revenue growth of 3.4% to 6.62 billion yuan and a net profit increase of 27.2% to 0.964 billion yuan, aligning with expectations [1][2] Revenue and Profitability - The comprehensive gross margin for the first three quarters of 2025 fell by 4.9 percentage points to 65.6%, with the sales contribution from the prescription drug segment decreasing from 82.3% in the previous year to 77.7% [1] - The sales expense ratio decreased by 5.1 percentage points to 24.1% [1] Prescription Drug Segment Performance - The sales of the prescription drug segment declined by 17.3% year-on-year to 15.45 billion yuan, including licensing fee income of 1.54 billion yuan, but Q3 sales recovered with a 1.6% year-on-year growth to 5.20 billion yuan [2] - The sales of oncology products dropped significantly by 56.8% to 1.65 billion yuan, accounting for 10.7% of the prescription drug segment's revenue, down from 20.4% in the previous year [2] - The revenue from the vitamin C raw material business grew by 22.3% to 1.79 billion yuan due to increased overseas demand, while antibiotic raw material revenue slightly decreased by 3.7% [2] R&D and Pipeline Development - R&D expenses increased by 7.9% to 4.19 billion yuan, with the R&D expense ratio rising by 3.9 percentage points to 21.0% [4] - The company has 28 key pipelines in II/III phase clinical trials, including HER2 ADC and EGFR ADC, with nine products in phase II and approximately 40 in phase I, covering both oncology and non-oncology fields [4] Future Outlook - The company has adjusted its earnings per share forecasts for 2025 from 0.46 yuan to 0.40 yuan, for 2026 from 0.49 yuan to 0.41 yuan, and for 2027 from 0.53 yuan to 0.45 yuan, while lowering the target price from 12.7 HKD to 9.7 HKD, indicating a potential upside of 31% [4]

Investment Rating - The report maintains a "Buy" rating for CSPC Pharmaceutical [8][14] Core Views - CSPC Pharmaceutical reported a revenue of RMB 19.89 billion for the first three quarters of 2025, a decrease of 12.3% year-on-year, with a net profit of RMB 3.51 billion, down 7.1% year-on-year. However, the third quarter showed signs of recovery with a revenue increase of 3.4% year-on-year to RMB 6.62 billion and a net profit increase of 27.2% year-on-year to RMB 964 million, aligning with expectations [5][10] - The company's gross margin decreased by 4.9 percentage points year-on-year to 65.6% in the first three quarters of 2025, with the sales contribution from finished drugs dropping from 82.3% to 77.7% [10][11] - The report highlights a significant decline in oncology product sales, which fell by 56.8% year-on-year to RMB 1.65 billion, representing only 10.7% of total finished drug sales [11] - CSPC has made progress in its innovative pipeline, with 28 key products in pivotal clinical trials and an increase in R&D expenses by 7.9% year-on-year to RMB 4.19 billion, reflecting a commitment to innovation [8][13] Financial Summary - For 2025, the company expects a revenue of RMB 26.785 billion, a decrease of 7.67% year-on-year, and a net profit of RMB 4.559 billion, with an EPS forecast adjusted down to RMB 0.40 [9][14] - The report projects a target price adjustment from HKD 12.7 to HKD 9.7, indicating a potential upside of 31% [14]

Investment Rating - The report maintains a "Buy" rating for CSPC Pharmaceutical [1][14] Core Views - The company reported a 12.3% year-on-year decline in revenue for the first three quarters of 2025, totaling RMB 19.89 billion, while net profit decreased by 7.1% to RMB 3.51 billion. However, in the third quarter, revenue grew by 3.4% year-on-year to RMB 6.62 billion, and net profit increased by 27.2% to RMB 964 million, aligning with expectations [4][10] - The gross margin decreased by 4.9 percentage points year-on-year to 65.6%, with the sales contribution from finished drugs dropping from 82.3% in the first three quarters of 2024 to 77.7% in 2025 [4][10] - The company has a robust pipeline with 28 key products in pivotal clinical trials and a significant increase in R&D expenses, which rose by 7.9% year-on-year to RMB 4.19 billion, representing 21.0% of revenue [7][13] Financial Performance - For the first three quarters of 2025, finished drug sales fell by 17.3% year-on-year to RMB 15.45 billion, but third-quarter sales returned to growth at RMB 5.20 billion, up 1.6% year-on-year [5][11] - The oncology product sales saw a significant decline of 56.8% year-on-year to RMB 1.65 billion, now representing 10.7% of total finished drug sales [5][11] - The API segment experienced a 22.3% year-on-year increase in vitamin C revenue to RMB 1.79 billion, while antibiotic API revenue slightly declined by 3.7% due to price drops [5][11] Pipeline Development - The company is advancing multiple trials for SYS6010 (EGFR ADC), which has received Fast Track Designation from the FDA and Breakthrough Therapy Designation from the NMPA, with data readouts expected in 2026 [6][12] - The innovative pipeline includes 28 products in phase II/III trials, nine in phase II, and approximately 40 in phase I, covering both oncology and non-oncology areas [7][13] Earnings Forecast - The earnings per share (EPS) forecast for 2025 has been adjusted down from RMB 0.46 to RMB 0.40, with target prices revised from HK$12.7 to HK$9.7, indicating a potential upside of 31% [14]

| √ | □特定对象调研 □分析师会议 | | --- | --- | | | □媒体采访 □业绩说明会 | | 投资者关系活动 类别 | □新闻发布会 □路演活动 | | | □现场参观 □一对一沟通 | | | □其他（ ） | | 参与单位及人员 | 中信建投证券股份有限公司、银华基金管理股份有限公司分 | | | 析师、研究员 | | 时间 | 2025 年 11 月 24 日 14:30～15:30 | | 地点 | 公司会议室 | | 形式 | 现场交流 | | 上市公司 | 1、公司董事会秘书 杨威 | | 接待人员 | 2、公司证券事务代表 陈子敏 1、公司昂拉地韦片有什么特色，是否对 H3N2 毒株有效？ | | | 答：昂拉地韦片是全球首款 RNA 聚合酶 PB2 靶点的甲型 流感口服药物，具有快速、强效、低耐药的特点，能够快速缓 | | | 解全身流感症状、强效抗击流感病毒，兼具低耐药性。 | | | 临床前研究结果表明，对包括奥司他韦耐药株、高致病性 | | 交流内容及具体 | 禽流感病毒株和巴洛沙韦耐药株等在内的多种不同亚型流感 | | 问答记录 | 病毒株具有强大的抑制活性。昂拉 ...

Core Viewpoint - Xuanzhu Biotechnology successfully listed on the Hong Kong Stock Exchange, becoming the first new listed company in Shijiazhuang this year, marking a significant milestone for the company and the local biotech industry [1] Company Overview - Xuanzhu Biotechnology focuses on the research and development of innovative drugs for major diseases such as digestive system diseases, tumors, and non-alcoholic fatty liver disease, having started its R&D efforts in 2008 [2] - The company is recognized as a unicorn and was introduced to Shijiazhuang from Hainan in 2020, establishing itself in the Shijiazhuang International Biopharmaceutical Park [2] Financial Aspects - The company has faced challenges in securing funding for its high-investment, high-risk drug development projects, often needing to approach dozens to hundreds of investment institutions for financing [2][3] - In September 2023, the company received a timely 10 million yuan biopharmaceutical R&D reward from Shijiazhuang, providing a significant boost to its innovation efforts [2] Recent Developments - Xuanzhu Biotechnology has successfully launched three innovative drugs: Annelazole Sodium, Pyrocyclic, and Diroac, demonstrating steady progress in its R&D journey [3] - The company submitted its listing application to the Hong Kong Stock Exchange in November 2024, aiming to leverage direct financing for core product development, production, and commercialization [3] Government Support - Various levels of government provided strong support during the listing process, including financial loan assistance and expedited administrative approvals, which significantly reduced the time required for compliance documentation [3] Fundraising and Future Plans - The company issued 67.33 million shares at an offering price of 11.60 HKD per share, raising a total of 780 million HKD, which will primarily be used for R&D and commercialization in its core therapeutic areas [4]