Core Viewpoint - The article discusses the strategic partnership between Hanyu Pharmaceutical and KuCoin to launch a pilot project for the tokenization of real-world assets (RWA) based on future revenue rights from innovative drug research and development, particularly focusing on GLP-1 peptide drugs [2][4]. Group 1: Company Overview - Hanyu Pharmaceutical, established in 2003, specializes in peptide formulations, active pharmaceutical ingredients, small nucleic acids, and innovative drug CDMO, being one of the few companies in China to achieve large-scale production of peptide APIs [7]. - The company went public in 2011 as "China's first peptide stock" on the Growth Enterprise Market [7]. Group 2: Financial Performance - From 2011 to 2017, Hanyu's revenue grew from 166 million to 1.246 billion, with net profit increasing from 80.47 million to 330 million [8]. - However, due to the implementation of national centralized procurement in 2018, the company faced significant losses, with revenue dropping from 1.246 billion to 431 million between 2018 and 2023, and continuous negative net profit [8]. Group 3: Recovery and Growth - Hanyu Pharmaceutical has seen a turnaround due to its focus on GLP-1 drugs, leveraging its core technologies in solid-phase synthesis, liquid-phase synthesis, and biocatalysis to efficiently produce GLP-1 analogs like Liraglutide and Semaglutide [8][9]. - The company has secured multiple overseas orders for GLP-1 APIs since 2023, with significant shipments expected in Q4 2024 [9]. Group 4: Production and Regulatory Compliance - Hanyu's production facilities have met FDA cGMP standards, with the Dragonhua R&D center passing FDA inspections and the Wuhan production base also successfully undergoing checks [8][11]. - The company is expanding its Wuhan API production base with an additional investment of 300 million to increase capacity to ton-level [11]. Group 5: Market Position and Future Prospects - Hanyu Pharmaceutical is positioned as a leader in the GLP-1 market, being one of the few companies capable of developing nearly all marketed peptide APIs and having unique advantages in synthesizing long-chain peptides [10]. - The FDA approved Hanyu's Liraglutide injection in December 2024, marking it as the first approved biosimilar of Liraglutide [11].

Market Overview - The Hang Seng Index rose 2.8% last week, closing at 24,825 points, while the Hang Seng Tech Index increased by 5.5% to 5,538 points, breaking out of a stagnation since May[1] - Average daily trading volume decreased by 3.1% to over HKD 246.6 billion, but remains at an active level, with a net inflow of HKD 22.5 billion through the Stock Connect[1] - The real estate sector was the only sector to decline, while healthcare, consumer discretionary, and materials sectors rose by 12.1%, 6.1%, and 3.7% respectively[1] Sector Performance - The information technology sector is expected to see earnings growth of 27.3% and 17.4% over the next two years, with a PE ratio at the 37.5th percentile over the past seven years[1] - The healthcare sector is projected to grow earnings by 83.7% and 21.7% in the next two years, with a PE ratio at the 43.1st percentile, indicating potential for high excess returns in the short term[1] Economic Indicators - China's GDP growth for Q2 2025 is expected to be 5.2%, with a 5.3% growth for the first half of the year, exceeding expectations and potentially reducing the need for aggressive stimulus policies[1] - Despite the Hong Kong Monetary Authority's actions to withdraw HKD from the market, the 1-month HIBOR fell to 1.07%, indicating ample liquidity in the market[1] Investment Strategy - The report suggests maintaining a defensive position in high-dividend sectors such as telecommunications, utilities, and finance, while looking for opportunities in AI computing, semiconductor equipment, and biomedicine[1] - The report highlights the importance of monitoring changes in U.S. Federal Reserve policies and corporate mid-term earnings guidance for future market direction[1] Industry Dynamics - The AI sector saw a significant rise, with the stock of InnoVision (2121 HK) surging 10% to a three-month high, while Fourth Paradigm (6682 HK) raised HKD 1.3 billion for R&D in smart devices and blockchain[2] - In the automotive sector, Great Wall Motors (2333 HK) reported a 1% increase in revenue but a 10.2% drop in net profit for the first half of the year, underperforming compared to peers like Geely (175 HK)[2] Healthcare Sector Insights - The Hang Seng Healthcare Index surged 11.9% last week, driven by the government's initiation of adjustments to the basic medical insurance drug list, which may benefit innovative drugs[3] - The government's new procurement policies are expected to favor high-quality products, potentially improving the operating environment for leading innovative drug companies[12]