Group 1 - The global innovative drug investment and financing environment is recovering, with significant growth in sub-sectors like peptides and ADCs, which is expected to boost the CXO industry's performance [1] - WuXi AppTec reported Q1 2025 revenue of approximately 9.655 billion yuan, a year-on-year increase of 20.96%, and a net profit of about 3.672 billion yuan, up 89.06% year-on-year [1] - The Hong Kong innovative drug sector is experiencing a significant valuation correction, with the Hong Kong innovative drug index's P/E ratio dropping from 64 times to 27 times in less than two months, indicating attractive investment opportunities [1] Group 2 - The Hong Kong innovative drug ETF (159567) tracks the National Securities Hong Kong Stock Connect Innovative Drug Index, which has a 90% weight in innovative drug companies, positioning it to benefit from trends like AI-enabled drug development and the expansion of domestic innovative drugs [2] - The innovative drug ETF (159992) tracks an index that includes leading companies in the innovative drug industry chain, benefiting from AI advancements and new healthcare policies aimed at supporting innovative drugs [2] - Policies from Beijing and Shenzhen are promoting the development of innovative drugs and devices, focusing on R&D innovation, clinical trials, and regulatory approvals, which will enhance the competitiveness of innovative drug companies [2]

Group 1 - WuXi AppTec, a leading player in the CXO sector, reported better-than-expected performance with double-digit growth in both revenue and net profit, maintaining a revenue guidance of RMB 41.5 billion to RMB 43 billion for 2025 [1] - In 2024, WuXi AppTec generated RMB 16.64 billion from the top 20 global pharmaceutical companies, highlighting its significant role in the global CXO market [1] - The Hong Kong innovation drug index saw a significant drop in P/E ratio from 64 times on February 21 to 27 times on April 28, indicating a strong value proposition for investors [1] Group 2 - The innovation drug ETF (159992) tracks an index that includes leading companies in the innovation drug industry, benefiting from trends such as AI-enabled drug development and the international expansion of domestic innovative drugs [2] - According to Insight database, there were 79 new drug license-out transactions in 2024, with 24 transactions completed in the first five months of 2025, totaling over USD 2 billion, showcasing the growing international recognition of Chinese innovative drugs [2] - Chinese pharmaceutical companies are demonstrating strong competitiveness in the global market through high-standard R&D, particularly in areas like antibodies and ADCs [2]