Core Viewpoint - The company is changing the use of part of its raised funds from the "Hemoporfin US Registration Project" to the "Photodynamic Drug Innovation R&D Sustainable Development Project" to enhance fund utilization efficiency and focus on advantageous R&D areas [1][8][20]. Summary by Sections 1. Overview of Fundraising Project Change - The original project name was "Hemoporfin US Registration Project," which is now changed to "Photodynamic Drug Innovation R&D Sustainable Development Project" [1]. - The amount of funds redirected is RMB 181.5461 million, which includes interest and investment income as of October 30, 2025 [1][7]. - The new project construction period is from the date of shareholder meeting approval until December 31, 2027 [1][9]. 2. Fundraising Basic Information - The company raised a total of RMB 1.074 billion by issuing 120 million shares at RMB 8.95 per share, with a net amount of RMB 974.3239 million after deducting issuance costs [2]. - The funds have been stored in a dedicated account, ensuring effective supervision [2]. 3. Reasons for Change - The change is due to slower-than-expected clinical research progress influenced by international environments and regulatory policies [8][20]. - The original project will continue as a sub-project under the new project, focusing on the ongoing Phase II clinical research in the US [9][20]. 4. New Project Details - The new project includes various initiatives such as expanding indications for the drug Ameluz, which is used for treating precancerous lesions and other conditions [12][14]. - The company plans to continue developing its photodynamic technology platform, which has shown significant clinical advantages [17][18]. 5. Market Outlook - The company is a leader in the photodynamic drug market, with a strong pipeline and a focus on expanding its product offerings [17][19]. - The photodynamic therapy market is growing due to its unique therapeutic value in treating various conditions [17][18]. 6. Approval Process - The board of directors and the supervisory board have approved the change, which will be submitted for shareholder approval [23][24].

Core Insights - The company reported a revenue of 161 million yuan for Q3 2025, representing a year-on-year growth of 14.40% [1] - R&D investment accounted for over 40% of revenue, reflecting the company's commitment to innovation and long-term growth [1] - The company has adjusted its marketing strategies in response to changes in the pharmaceutical industry, which has impacted short-term profits but is expected to benefit long-term market position [1] - The net cash flow from operating activities significantly improved to approximately 106 million yuan, reversing from negative to positive year-on-year [1] - Total R&D investment for the first three quarters reached 244 million yuan, an increase of 3.9% year-on-year, with the proportion of revenue dedicated to R&D rising by 1.49% [1] R&D Pipeline and Focus - The company's R&D pipeline is concentrated on competitive therapeutic areas, with several projects progressing well, indicating potential for long-term growth [2] - The company focuses on two main technology platforms: photodynamic therapy and ADC drug development, establishing a unique R&D system [2] - In the field of photodynamic therapy, the company has a comprehensive intellectual property layout and extensive R&D experience, expanding applications from treatment to innovative scenarios like surgical visualization [2] - The developed and in-development drug indications include conditions such as genital warts, port-wine stains, moderate to severe acne, actinic keratosis, and precancerous lesions of the cervix, as well as intraoperative visualization diagnostics for breast cancer, brain glioma, and bladder cancer [2] - The ADC platform has been built to support a complete capability from early R&D to industrialization, providing solid technical support for multiple ongoing projects [2]

Core Insights - 2025 is a pivotal year for China's innovative pharmaceuticals, transitioning from "R&D-oriented" to "commercialization" [1] - The industry saw record high License-out transaction volumes in the first half of the year, indicating enhanced global competitiveness of Chinese innovative drugs [1] - Fudan Zhangjiang (688505.SH/01349.HK) is focusing on photodynamic therapy and ADC platforms, achieving significant progress in R&D and international expansion [1] Group 1: Financial Performance - Fudan Zhangjiang reported a 14.58% year-on-year increase in R&D investment, reaching 178 million yuan, with R&D accounting for 45.63% of revenue [1] - Despite short-term performance fluctuations due to centralized procurement, the company's commitment to R&D remains strong [1] Group 2: Photodynamic Therapy Developments - The product matrix centered around Aila® and Fumeida® is expanding, with ongoing clinical trials for new indications [2] - Two projects for treating HPV-related cervical diseases and acne have completed Phase II clinical trials, with plans to advance to Phase III [2] - Research on the application of photodynamic technology in surgical visualization is ongoing, with several clinical trials concluding data collection [2] Group 3: ADC Platform Progress - The ADC platform has seen multiple projects making significant progress, including ongoing Phase III trials for anti-Trop2-SN38 [3] - Phase I trials for non-small cell lung cancer and ovarian cancer indications have been completed [3] - The company is leveraging its production base in Taizhou to enhance its development pipeline from R&D to commercialization [3] Group 4: Market Position and Future Outlook - Fudan Zhangjiang's differentiated advantages in photodynamic therapy and ADC, along with a rich R&D pipeline, are expected to open up long-term growth opportunities [3] - With increasing domestic policy support for innovative drugs and deepening international collaborations, the company is poised to secure a position in the global innovative drug market [3]

Group 1 - Fudan Zhangjiang reported a revenue of 390 million yuan for the first half of 2025, a year-on-year decrease of 4.42%, and a net profit attributable to shareholders of 5.71 million yuan, down 91.89% year-on-year [1] - The company maintained a high R&D investment of 178 million yuan, which represents 45.63% of its revenue, an increase of 7.57% year-on-year [1] - The company is a leader in photodynamic therapy, with ongoing research expanding indications for its products, including treatments for cervical diseases and acne, which have completed Phase II clinical trials [1] Group 2 - The ADC technology platform is accelerating clinical trials, with ongoing Phase III trials for the anti-Trop2 antibody conjugate SN38 for triple-negative breast cancer and other tumor types [2] - Fudan Zhangjiang's production base in Taizhou is capable of large-scale commercial production for the F0024 project, supporting the ongoing Phase III clinical trial [2] - The company has completed technology transfer for the F0034 project, which is also preparing for Phase III clinical trial sample production [2] Group 3 - Due to not winning the bid for the tenth batch of national procurement, Fudan Zhangjiang has implemented a gradual price reduction for the product Libao Duo starting May 1, 2025, which may impact short-term revenue [3] - Despite short-term performance fluctuations, the company remains committed to innovation and R&D in photodynamic and ADC technology, aiming to drive long-term value [3] - As the pipeline gradually moves towards commercialization, Fudan Zhangjiang is expected to strengthen its position in the innovative drug sector [3]