Core Viewpoint - The rapid development of the global innovative drug industry has led to a significant opportunity for the CDMO (Contract Development and Manufacturing Organization) sector, with Shanghai Haoyuan Pharmaceutical Co., Ltd. positioning itself as a leader in the ADC (Antibody-Drug Conjugate) niche [1][2]. Group 1: Company Strategy and Market Position - Haoyuan Pharmaceutical has identified ADC as a key area for growth, establishing core competencies and positioning itself in the first tier of CDMO providers in this field [1][2]. - The company has successfully undertaken over 110 ADC projects in 2024, with 12 small molecule products related to ADC having completed FDA filings [2]. - The company reported a revenue of 2.254 billion yuan in 2024, a year-on-year increase of 20.62%, and a net profit of 202 million yuan, up 58.17% year-on-year [2]. Group 2: Technological Advancements - ADC technology, which combines antibodies, linkers, and cytotoxic drugs, allows for targeted cancer treatment, minimizing damage to normal tissues [2]. - Haoyuan Pharmaceutical has developed proprietary technologies in ADC, having been a pioneer in this field since its establishment in 2006 [3]. - The company has collaborated with AI pharmaceutical firms to enhance drug development processes, establishing an AI Drug Exploration Joint Laboratory with East China Normal University [3]. Group 3: International Expansion - The company is actively expanding its international market presence, having serviced numerous ADC "outbound" orders, with nine overseas licensing transactions reported in the first half of the year [4]. - Haoyuan Pharmaceutical has established a CDMO base in Chongqing, which is the largest of its kind in Southwest China, and has passed EU quality audits to facilitate international market expansion [4][5]. - The company has set up business warehousing centers in the US, Europe, and India, serving over 13,000 pharmaceutical companies and research institutions globally [5]. Group 4: Future Prospects - Haoyuan Pharmaceutical is not only focusing on ADC but is also exploring emerging fields such as PDC (Peptide-Drug Conjugates), RDC (Radioisotope-Drug Conjugates), and ApDC (Aptamer-Drug Conjugates) [5]. - The company aims to create a full-chain service model that integrates technology research, industrialization, and global service, thereby establishing competitive barriers [5].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The 6 - month PMI data continued to improve slightly in June, indicating a stabilizing trend in China's economy. Sino - US trade situation has positive news, but there are still uncertainties in external demand due to ongoing US trade negotiations. The CSI Convertible Bond Index has reached new highs. Although most institutions' holding face - values of convertible bonds have slightly declined, considering the impact of bank convertible bond conversions on the overall scale, their actual willingness to reduce positions is weak, and the allocation demand for convertible bonds remains strong. The supply - demand contradiction of convertible bonds has intensified, and there is room for an increase in the convertible bond parity valuation [3][20]. - It is recommended to choose balanced convertible bonds with high - volatility underlying stocks that can quickly consume the premium rate or high - price, low - premium and non - redeemable equity - biased convertible bonds in the short term. For those with high requirements for drawdown, reducing positions can be considered. In July, attention should be paid to sectors such as consumer (appliances, auto parts, two - wheeled vehicles), technology (PCB, copper - clad laminates, data center power supplies in the computing power industry chain), grid equipment, sea wind, energy storage, innovative drugs, and some chemical pharmaceuticals with stable volume and price [4][21]. 3. Summary by Relevant Catalogs 3.1 Market Focus Last Week (June 30 - July 4, 2025) Stock Market - The equity market fluctuated and rose last week. Sectors with over - capacity reduction expectations such as steel, building materials, and photovoltaic performed well, and the innovative drug sector led the gains. The high - dividend bank sector also performed well. The A - share market showed different trends each day, with changes in sector performance and trading volume [1][9]. - Most Shenwan primary industries closed higher. Steel (+5.06%), building materials (+3.96%), banks (+3.77%), pharmaceutical biology (+3.64%), and comprehensive (+2.82%) led the gains, while computer (-1.28%), non - bank finance (-0.72%), beauty care (-0.55%), and transportation (-0.20%) performed poorly [10]. Bond Market - The bond market fluctuated last week. After the quarter - end, the liquidity tightened. The second - quarter monetary policy implementation report mentioned observing and evaluating the bond market from a macro - prudential perspective. The slight recovery of the June PMI and the increase in market risk appetite suppressed bond market sentiment. The 10 - year Treasury bond yield closed at 1.64% on Friday, down 0.29bp from the previous week [1][10]. Convertible Bond Market - Most convertible bond issues closed higher. The CSI Convertible Bond Index rose 1.21% for the whole week, the median price increased 1.10%, the calculated arithmetic average parity increased 1.82%, and the overall market conversion premium rate decreased 1.57% compared with the previous week. The arithmetic average conversion premium rates of convertible bonds with parities in the ranges of [90,100), [100,110), and [110,120) changed by +1.71%, +2.27%, and -0.79% respectively, at the 68%, 77%, and 39% percentile values since 2023 [2][10]. - Most industries in the convertible bond market closed lower. Pharmaceutical biology (+2.49%), national defense and military industry (+1.85%), environmental protection (+1.70%), and public utilities (+1.59%) led the gains, while transportation (-1.07%), textile and clothing (-0.84%), automobile (-0.41%), and communication (-0.33%) performed poorly [14]. - In terms of individual bonds, Seli (innovative drugs), Huicheng (hazardous waste treatment), Jing 23 (PCB), Emergency (military industry), and Xingang (thermal production and supply) convertible bonds led the gains; Sanyang (automobile logistics services), Jinji (H - acid reactive dyes), Jingduan (precision gears & announced forced redemption), Huafeng (automobile electronic control systems & announced forced redemption), and Huitong (modified plastics & announced forced redemption) convertible bonds led the losses [2][15]. - The total trading volume of the convertible bond market last week was 323.83 billion yuan, with an average daily trading volume of 64.766 billion yuan, an increase from the previous week [18]. 3.2 Valuation Overview As of July 4, 2025, the average conversion premium rates of equity - biased convertible bonds with parities in the ranges of 80 - 90 yuan, 90 - 100 yuan, 100 - 110 yuan, 110 - 120 yuan, 120 - 130 yuan, and above 130 yuan were 40.92%, 30.48%, 23.07%, 12.75%, 8.96%, and 5.65% respectively, at the 85%/72%, 82%/68%, 84%/77%, 63%/35%, 62%/39%, and 71%/42% percentile values since 2010/2021. The average YTM of bond - biased convertible bonds with parities below 70 yuan was -0.72%, at the 4%/0% percentile values since 2010/2021. The average implied volatility of all convertible bonds was 33.78%, at the 64%/44% percentile values since 2010/2021. The difference between the convertible bond implied volatility and the long - term actual volatility of the underlying stock was -13.81%, at the 25%/31% percentile values since 2010/2021 [22]. 3.3 Primary Market Tracking Last Week (June 30 - July 4, 2025) - Libo Convertible Bond was announced for issuance, and Dianhua and Anke Convertible Bonds were listed. - Libo Convertible Bond (111023.SH): The underlying stock is Libote (605167.SH) in the building decoration industry, with a market value of 5.155 billion yuan as of July 4. The company focuses on the design and manufacturing of industrial modules. The issued convertible bond scale is 750 million yuan, and the funds after deducting issuance fees will be used for the large - scale industrial module manufacturing project of Nantong Libote Heavy Industry Co., Ltd [30]. - Dianhua Convertible Bond (127109.SZ): The underlying stock is Xiangtan Dianhua (002125.SZ) in the power equipment industry, with a market value of 8.555 billion yuan as of July 4. The company's main businesses include the production and sales of electrolytic manganese dioxide and new - energy battery materials, etc. The issued convertible bond scale is 487 million yuan, and the funds will be used for the 30,000 - ton spinel - type lithium manganate battery material project and to supplement working capital [31]. - Anke Convertible Bond (123257.SZ): The underlying stock is Anke Innovation (300866.SZ) in the electronics industry, with a market value of 61.207 billion yuan as of July 4. The company is mainly engaged in the R & D and sales of smart mobile peripherals, etc. The issued convertible bond scale is 1.105 billion yuan, and the funds will be used for multiple projects such as R & D and industrialization of portable and household energy - storage products [32]. - As of July 4, the exchange accepted Shenyu Co., Ltd., and there were no new enterprises approved for registration, passed by the listing committee, passed by the general meeting of shareholders, or with board of directors' plans. There are currently 77 convertible bonds to be issued, with a total scale of 123.22 billion yuan, including 4 approved for registration with a total scale of 9.01 billion yuan and 3 passed by the listing committee with a total scale of 2.62 billion yuan [33]. Future Week (July 7 - July 11, 2025) As of the announcement on July 4, there are no convertible bonds announced for issuance or listing in the coming week [33].

Core Points - The Global Vaccine Alliance (Gavi) successfully raised over $9 billion for the next five years (2026-2030) during the "Immunization for Health and Prosperity" summit in Brussels, despite a significant decline in global health financing [1][3] - Gavi has provided vaccines to over 1 billion children since its inception in 2000, preventing more than 18 million avoidable deaths, and currently serves nearly half of the world's children [1][3] - The UK and the Bill & Melinda Gates Foundation are the largest contributors, with the UK pledging £1.25 billion (approximately $1.6 billion) and the Gates Foundation contributing $1.6 billion [3] - The U.S. has historically been a significant donor, contributing around $300 million annually, but announced it would stop funding Gavi, which could impact global vaccination efforts [3][4] Funding and Contributions - The total commitments for the next five years include £1.25 billion from the UK, $1.6 billion from the Gates Foundation, and over €360 million from the European Commission and member states, totaling over €2 billion [3] - Indonesia, which recently graduated from Gavi's support list, pledged $30 million for the next five years, showcasing a shift from recipient to donor [5] Gavi's Operational Model - Gavi operates on a co-financing model where even low-income countries contribute a small amount per vaccine dose, gradually increasing their financial responsibility as their economies grow [5] - Gavi's CEO, Sania Nishtar, emphasized the importance of maintaining communication with the U.S. government to secure ongoing support [5] China's Role - China is highlighted as a successful example of Gavi's empowerment model, transitioning from a recipient to a donor, contributing over $120 million since 2016 [7] - The collaboration between China and Gavi began in 2002 with a hepatitis B vaccination program, significantly increasing vaccination rates in impoverished regions [7][8] Vaccine Development and Innovation - Gavi is focusing on expanding its vaccine portfolio, including support for vaccines against hepatitis E, tuberculosis, and monkeypox, as part of its 6.0 vaccine investment strategy [8][9] - Gavi is interested in innovative delivery methods, such as microneedle patches, to improve vaccine accessibility in low-resource settings [9][10] Leadership and Vision - Sania Nishtar, the first CEO from a developing country, brings a unique perspective to Gavi, having witnessed the impact of vaccine-preventable diseases firsthand [12][13] - Nishtar's background as a physician and public health advocate informs her commitment to ensuring health and immunization as fundamental human rights [13]

Investment Rating - The report maintains an investment rating of "Outperform the Market - A" for the biopharmaceutical sector [7]. Core Insights - The National Healthcare Security Administration has initiated the adjustment work for the 2025 National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance Drug Catalog, which is expected to include multiple new drugs for negotiation [2]. - From July 1, 2024, to June 30, 2025, approximately 19 oncology drugs and 23 non-oncology drugs are anticipated to be approved and may participate in the 2025 medical insurance negotiations [2]. Summary by Sections 1. Weekly New Drug Market Review - From June 30, 2025, to July 4, 2025, the top five companies in the new drug sector by stock price increase were: - Zai Lab (45.00%) - Sanofi (36.30%) - Frontier Biopharma (30.60%) - Micron Biomedicine (30.50%) - Kangfang Biopharma (25.50%) - The top five companies with the largest declines were: - Oconview (-12.90%) - Kexin Pharmaceuticals (-9.10%) - Dongyao Pharmaceuticals (-6.70%) - Lepu Biopharma (-6.40%) - Yifang Biopharma (-3.60%) [1][16]. 2. Weekly New Drug Industry Analysis - The adjustment work for the 2025 medical insurance catalog has begun, allowing new generic drugs approved between January 1, 2020, and June 30, 2025, to apply for inclusion [2]. - The expected new drugs for negotiation in 2025 will primarily be those approved between July 1, 2024, and June 30, 2025 [2]. 3. Weekly New Drug Approval & Acceptance Status - This week, 22 new drugs or new indications received approval for market entry, while one new drug application was accepted [3][26]. 4. Weekly New Drug Clinical Application Approval & Acceptance Status - A total of 46 new drug clinical applications were approved this week, and 31 new drug clinical applications were accepted [4][32]. 5. Key Domestic Market Events - Key events included the approval of a MET inhibitor by Hutchison China MediTech for treating advanced non-squamous non-small cell lung cancer and the approval of an anti-IL-1β monoclonal antibody by Junshi Biosciences for treating acute attacks of gouty arthritis [5][12]. 6. Key Overseas Market Events - Notable overseas events included Moderna's positive progress in its seasonal flu mRNA vaccine study, Regeneron's accelerated approval of a dual antibody for multiple myeloma, and Pfizer's announcement of a significant reduction in bleeding rates in hemophilia patients [13].

Core Insights - The article provides an overview of the latest trends in domestic investment and financing events, highlighting key sectors and companies involved in significant funding rounds [3]. Group 1: Investment Overview - A total of 93 financing events were disclosed in the domestic primary market this week, an increase of 5 events compared to the previous week. Among these, 34 events disclosed financing amounts, with a total financing scale of 10.248 billion RMB, averaging 301 million RMB per event [5]. - The most active sectors in terms of financing events were intelligent manufacturing (21 events), artificial intelligence (19 events), and healthcare (9 events) [7]. Group 2: Sector Analysis - In terms of disclosed financing amounts, the energy and power sector led with a total financing scale of approximately 4.434 billion RMB. Notably, "Yongxiang Co., Ltd." completed nearly 4.916 billion RMB in Series A financing [8]. - The intelligent manufacturing sector followed, with a disclosed financing total of 2.603 billion RMB, including nearly 1 billion RMB in angel round financing for "Sunrise," a high-performance GPU developer [10]. Group 3: Regional Distribution - The disclosed investment events were primarily concentrated in Jiangsu (19 events), Guangdong (17 events), and Beijing (13 events) [14]. - Jiangsu reported a total financing of 1.645 billion RMB across 7 disclosed events, while Beijing had 1.750 billion RMB from 6 disclosed events [17]. Group 4: Stage Distribution - The majority of the disclosed investment events were early-stage (68 events), followed by growth-stage (19 events) and late-stage (6 events) [18]. Group 5: Major Financing Events - The article highlights significant financing events, including the acquisition of 100% of "Changqing Environmental Protection" by Huaxing New Energy for 401 million RMB, focusing on biomass power generation technology [36].

Group 1 - The core viewpoint emphasizes the need for effective promotion of agricultural technology innovation and accelerated development and application of advanced medical devices [1][2] - The focus is on enhancing agricultural productivity through technology, particularly in key areas such as seed industry, agricultural machinery, feed, and cultivation techniques [1] - There is a strong emphasis on the integration and promotion of agricultural technology achievements to improve service for farmers and enhance agricultural efficiency [1] Group 2 - The government aims to increase policy support and optimize the innovation ecosystem for medical device research and development [2] - Encouragement for enterprises, hospitals, and research institutions to focus on cutting-edge technologies and critical "bottleneck" technologies in pharmaceuticals and medical devices [2] - The goal is to establish a unified national market for pharmaceuticals and medical devices, supporting companies in international competition and expanding the development space for the medical industry [2]

Macro Dynamics - The National Health Commission of China is intensifying efforts to regulate the internet health science popularization, addressing issues with "internet celebrity doctors" who misuse their authority for profit [1] - The commission emphasizes that medical quality and safety are non-negotiable, urging the public to be cautious and avoid scams [1] Market Data - The average price of pork in China's wholesale markets increased to 20.58 yuan per kilogram, up 1.7% from the previous week [3] Company Dynamics - Shanghai Lego Land officially opened on July 5, with plans for future expansion over the next 5-10 years [10] - Sales of 3C certified power banks have surged following a recall event, leading to stock shortages among some retailers [11] - Road Gang has been appointed as the chairman of Beijing Construction Group, replacing Fan Jun [12]

Core Insights - The number of newly established foreign-funded enterprises in Shenzhen's Futian District reached 1,039 from January to May 2025, marking a year-on-year increase of 28.91%, accounting for 23.57% of the city's total new foreign-funded enterprises [1] - Futian District aims to become the "preferred destination for foreign investment" by leveraging policy benefits and innovative services, supported by the establishment of a foreign business service station [1][2] Group 1: Foreign Investment Services - The foreign business service station in Futian provides a "one-stop" service for foreign investors, including investment inspection, resource matching, policy consultation, and business services [2] - The service station facilitates communication by offering a list of frequently required foreign-related services, including company establishment and tax processing, and features 5G video assistance for real-time consultations [2] Group 2: Service Ecosystem Development - Futian District is building a "1+10+N" foreign investment service ecosystem, with one central service station linked to ten street service points and multiple foreign headquarters buildings [3] - The district has established six street service points and aims for full coverage with ten points by the end of the year, enhancing its attractiveness to foreign investment [3] Group 3: Policy and Talent Initiatives - Futian District has launched the "Futian Talent Gathering 4.0" policy and the "2025 New Journey Education and Technology Talent Package," along with the "Huangtian Talent Recognition Management Measures" [4] - The district is positioned as a core cross-border hub for Shenzhen-Hong Kong collaboration, benefiting from the major cooperation platform of the Hong Kong-Shenzhen Innovation and Technology Cooperation Zone [4]

Economic Data and International Negotiations - The performance of the US stock market, particularly the Nasdaq, is closely tied to the US economy, which is currently in a relatively good state. Recent negotiations with multiple countries, especially the resolution of the digital tax dispute with Canada, have yielded positive outcomes [3] - Despite the PCE inflation rising to 2.7%, US economic data continues to exceed expectations, with strong consumer confidence and ISM PMI indicators. Federal Reserve Chairman Jerome Powell indicated that if not for tariff factors, the Fed might continue to lower interest rates, but uncertainty remains regarding potential rate cuts in July [4] Debt and Political Factors - The conflict between Elon Musk and former President Trump highlights concerns over the US debt issue. Musk emphasizes the dangers of operating with high debt levels, while Trump supports increased fiscal spending through initiatives like the "Beautiful Bill." This ongoing debate reflects the political and fiscal policy dynamics affecting the US debt trajectory [6] Global Asset Allocation Strategy - The importance of global asset allocation is emphasized, advocating for diversification beyond just US dollar or RMB assets to effectively hedge risks. The Nasdaq's strong performance, with a high price-to-earnings ratio of 37 (67th percentile), has provided substantial returns, but caution is advised due to its relatively high valuation [7] Future Outlook for Nasdaq - Although the Nasdaq's valuation is currently at a mid-to-high level, there is potential for valuation correction as earnings grow, particularly with advancements in AI, autonomous driving, and robotics. While the bull market is not over, short-term volatility is expected, necessitating a cautious investment approach [8] Summary - Overall, the Nasdaq remains part of a bull market, with the potential for continued growth driven by strong economic data and innovations in technology. However, investors should maintain flexible positions and avoid over-reliance on any single asset, while keeping an eye on the implications of US debt and deficit issues for global economic stability [9]

Group 1 - The core viewpoint of the article highlights the increase in financing events in the domestic primary market, with a total of 93 events reported this week, up by 5 from the previous week, and a total financing scale of 10.248 billion RMB [2] - The average financing amount per event is 301 million RMB, with 34 events disclosing their financing amounts [2] - The most active sectors in terms of financing events are intelligent manufacturing, artificial intelligence, and healthcare, with 21, 19, and 9 events respectively [4] Group 2 - In terms of disclosed financing amounts, the energy and power sector leads with a total financing scale of approximately 4.434 billion RMB, highlighted by Yongxiang Co., which completed nearly 4.916 billion RMB in Series A financing [4] - The intelligent manufacturing sector follows with a disclosed financing total of 2.603 billion RMB, including nearly 1 billion RMB in angel round financing for high-performance GPU developer Sunrise [4] - The early-stage companies dominate the financing events with 68 out of 93 events, while 19 are in the growth stage and 6 in the later stage [12] Group 3 - The geographical distribution of financing events shows Jiangsu leading with 19 events, followed by Guangdong with 17 events, and Beijing and Shanghai each with 13 events [10] - The total disclosed financing in Jiangsu is 1.645 billion RMB, while Guangdong's total is 589 million RMB [10] - The report also notes a decrease in disclosed M&A events, with 10 reported this week, down by 6 from the previous week, primarily in intelligent manufacturing, enterprise services, and environmental protection sectors [28] Group 4 - Notable M&A activity includes Huaxing New Energy acquiring 100% of biomass power technology service provider Changqing Environmental Protection for 401 million RMB [28] - Other M&A transactions include Jiatuo Pharmaceutical being acquired for 15 million RMB and Jintong Customs being acquired for approximately 1.014 million RMB [29][30]