Recent Events - Company announced on January 12 that it has signed an exclusive licensing agreement with AbbVie for its self-developed PD-1/VEGF bispecific antibody drug RC148, granting AbbVie exclusive rights for development, production, and commercialization outside Greater China. The company will receive an upfront payment of $650 million and is eligible for up to $4.95 billion in milestone payments, as well as double-digit royalties on net sales outside Greater China [1] Product Development and International Collaboration - The recent licensing agreement further validates the company's speed in international expansion, following the external authorization of its core products RC18 and RC28 by 2025. As of January 2026, there are 17 PD-(L)1/VEGF bispecific antibody drugs in clinical trials globally, with several signed BD agreements, showcasing the company's strong R&D capabilities [2] - AbbVie, as an international MNC, has a diverse product pipeline including the first FRα-targeting ADC drug Elahere and others, which will strategically complement RC148 and expand its global reach [2] Clinical Data and Efficacy - At the 2025 ESMO-IO conference, the company disclosed promising data for RC148, showing an objective response rate (ORR) of 61.9% and a disease control rate (DCR) of 100% for monotherapy. For combination therapy, the ORR reached 66.7% and the DCR was 95.2%, indicating initial clinical advantages and manageable safety profiles [3] - Early clinical studies have shown that RC148, when used in combination with antibody-drug conjugates (ADCs), exhibits promising anti-tumor activity, with the company actively advancing related clinical trials [3]

Core Viewpoint - Huaxi Securities maintains an "overweight" rating for Rongchang Biopharmaceutical (09995), highlighting the company's strong independent R&D capabilities, stable sales growth of core products, experienced management team, steady progress in clinical indications, and reasonable domestic and international layout, with optimism regarding the company's commercialization capabilities post-product launch [1] Recent Events - On January 12, the company announced an exclusive licensing agreement with AbbVie for its independently developed PD-1/VEGF bispecific antibody drug RC148, granting AbbVie exclusive rights for development, production, and commercialization outside Greater China. The company will receive an upfront payment of $650 million and is eligible for up to $4.95 billion in milestone payments, along with double-digit royalties on net sales outside Greater China [1] International Expansion - Following the authorization of core products RC18 and RC28 in 2025, this recent agreement further validates the company's speed in international expansion. As of January 2026, 17 PD-(L)1/VEGF bispecific antibody drugs are in clinical trials globally, with several BD agreements signed, showcasing the company's R&D capabilities. AbbVie, as a partner, has a diverse product line that complements RC148, enhancing its global positioning [2] Clinical Data - At the 2025 ESMO-IO conference, the company disclosed promising data for RC148, showing an objective response rate (ORR) of 61.9% and a disease control rate (DCR) of 100% in monotherapy. In combination therapy, the ORR reached 66.7% and the DCR was 95.2%. The safety profile is manageable, indicating initial clinical advantages. The company is actively advancing related clinical studies, anticipating further clinical potential [3]

Core Insights - Rongchang Biopharmaceutical (688331.SH) reported a significant increase in revenue for the first half of 2025, achieving 1.098 billion yuan, a year-on-year growth of 48.02% [1][3] - The company recorded a net loss attributable to shareholders of 450 million yuan, an improvement from a loss of 780 million yuan in the same period last year [1][3] - The net cash flow from operating activities was -246 million yuan, also showing improvement from -820 million yuan year-on-year [1][3] Financial Performance - Revenue for the first half of 2025 was 1,097,953,438.31 yuan, compared to 741,756,779.89 yuan in the previous year, marking a 48.02% increase [3] - The net profit attributable to shareholders was -449,568,663.07 yuan, improving from -780,459,767.69 yuan in the previous year [3] - The net cash flow from operating activities was -245,539,255.27 yuan, compared to -820,169,537.32 yuan in the previous year [3] Historical Financial Data - In the years 2022, 2023, and 2024, the net profit attributable to shareholders was -999 million yuan, -1.511 billion yuan, and -1.468 billion yuan respectively [4] - The net profit after deducting non-recurring gains and losses for the same years was -1.117 billion yuan, -1.543 billion yuan, and -1.507 billion yuan respectively [4] Capital Raising Activities - Rongchang Biopharmaceutical raised a total of 2.612 billion yuan through its initial public offering, with a net amount of 2.506 billion yuan after expenses [5] - The company plans to use the funds for various projects, including new drug development and working capital [5] - In 2024, the company announced a plan to raise up to 1.952 billion yuan through a private placement of A-shares, with proceeds intended for new drug research and development [5] H-share Issuance - On May 30, 2025, the company completed the issuance of H-shares, raising approximately 806.36 million HKD [5][6] - The net proceeds from the H-share issuance will primarily be used for the research and development of the core product, RC18, and its indications [6] - Following the issuance, the total number of H-shares increased from 189,581,239 to 208,581,239, while the number of A-shares remained unchanged at 355,027,004 [7]

Group 1 - The company, Rongchang Biopharma (09995.HK), has entered into a placement agreement with Morgan Stanley and Huatai International to issue 19 million new H-shares at a placement price of HKD 42.44, which represents a discount of approximately 9.51% compared to the closing price of HKD 46.90 on May 21 [1] - The placement shares will account for about 10.02% of the existing issued H-shares and approximately 3.49% of the total issued shares as of the announcement date [1] - Assuming no other changes in the issued share capital, the placement shares will represent about 9.11% of the enlarged issued H-shares and approximately 3.37% of the total issued shares after the placement [1] Group 2 - The total estimated proceeds from the placement are approximately HKD 806 million, with net proceeds expected to be around HKD 796 million after deducting commissions and estimated expenses [2] - The company plans to use the net proceeds for the expansion of its core product, RC18, into key indications such as myasthenia gravis, membranous nephropathy, and for general corporate purposes [2]