Core Viewpoint - The pharmaceutical and biotechnology sector shows mixed performance, with innovative drugs and CXO services performing well, while the medical device sector is expected to continue its recovery [4][5]. Group 1: Pharmaceutical Sector Performance - In the first three quarters of 2025, the pharmaceutical and biotechnology sector achieved revenue of 1,825.74 billion yuan (YOY -1.97%) and a net profit of 139.66 billion yuan (YOY -1.59%) [4]. - In Q3 2025, the sector generated revenue of 598.54 billion yuan (YOY +0.78%) and a net profit of 40.51 billion yuan (YOY +7.67%) [4]. - The gross profit margin for the pharmaceutical sector was 31.4% (YOY -1.4 percentage points), with a total gross profit of 573.45 billion yuan (YOY -6.1%) [4]. Group 2: Subsector Analysis - The chemical preparation sector saw a revenue decline of 0.82% in Q3 2025, but net profit increased by 5.05%, driven by strong performance from innovative drug companies [5]. - The medical device sector experienced significant revenue growth of 10.65% in Q3 2025, reflecting a recovery in domestic bidding processes [5]. - The CXO sub-sector showed robust performance with a revenue increase of 10.93% and a net profit increase of 47.90% in Q3 2025, indicating strong demand both domestically and internationally [5]. Group 3: Fund Holdings and Market Trends - In Q3 2025, the market value of pharmaceutical holdings in equity mutual funds was 11.93%, a decrease of 0.32 percentage points from the previous quarter [6]. - The top rising stocks in terms of market value among heavy holdings included Rongchang Biotechnology and BeiGene, which rose 18 and 13 ranks respectively [6]. - The number of funds holding top stocks like China National Pharmaceutical Group and Yingke Medical increased significantly, indicating growing interest in these companies [6].