Core Viewpoint - The 2025 Hong Kong International Biotechnology Forum and Exhibition (BIOHK2025) highlighted the growing demand for healthcare and the importance of biotechnology innovation in addressing this need, particularly in the context of China's aging population [1][2] Company Insights - Bichang Pharmaceutical's Chairman Zhao Tao emphasized the significance of standardized cultivation of traditional Chinese medicine, core business layout, industry development trends, and international strategies during his keynote speech at the forum [1] - The company is actively constructing a collaborative development framework involving patented traditional Chinese medicine, biochemical drugs, and the broader health industry, aiming to accelerate its entry into the biopharmaceutical and vaccine sectors [1] Industry Trends - The demand for medical resources is expected to increase significantly due to the rising healthcare consumption needs of the elderly population in China, which is approximately three times that of the general population [1] - The Chinese government is prioritizing the development of biomedicine and innovative drugs, implementing multiple policies to empower the industry through technology transfer and capital flow [1]

Group 1 - The Chinese innovative drug industry is experiencing robust growth driven by policy support, talent return, and engineer dividends [1] - The number of original innovative drug research pipelines has increased from 124 in 2015 to 704 in 2024, ranking first globally [1] - Chinese companies are accelerating their shift towards original innovation, with the number of self-researched FIC innovative drugs entering clinical trials rising from 9 in 2015 (less than 10% globally) to 120 in 2024 (over 30%) [1] Group 2 - Chinese pharmaceutical companies are active in global business development transactions, with total licensing agreements reaching $51.9 billion in 2024, including an upfront payment of $4.1 billion [1] - The diversity of transaction types is increasing, with ADC drugs accounting for 20% and small nucleic acid drugs achieving over $6 billion in significant transactions [1] - Over 60% of preclinical License-out projects indicate enhanced international attractiveness of early-stage research assets [1] Group 3 - The Vaccine ETF (159643) tracks the Vaccine Biotechnology Index (980015), which is compiled by China Securities Index Co., Ltd., selecting listed companies involved in vaccine research, production, and sales [1] - The Vaccine Biotechnology Index reflects the overall performance of listed companies in China's vaccine industry, characterized by high growth and innovation [1]