Core Viewpoint - The recent surge in the Hong Kong innovative drug sector, particularly for Xiansheng Pharmaceutical, is driven by favorable factors such as the cyclical resurgence of COVID-19 and record-breaking domestic innovative drug business development (BD) deals [1] Group 1: Stock Performance - Xiansheng Pharmaceutical's stock price has experienced a continuous rise since May 16, achieving a maximum increase of 28.33% by May 21, with a cumulative increase of nearly 50% year-to-date [1] - The stock has shown significant trading activity, with over 25 million shares traded on three consecutive days from May 19 to 21, indicating strong market interest [4] Group 2: Business Development Potential - The recent $60.5 billion BD deal between Innovent Biologics and Pfizer has spotlighted the potential of Chinese innovative drugs, with Xiansheng Pharmaceutical being a key player in this growth [2] - Xiansheng Pharmaceutical has developed multiple ADC (antibody-drug conjugate) candidates targeting various biomarkers, with products like SCR-A006 showing Best-in-Class potential [2] Group 3: International Expansion - Xiansheng Pharmaceutical has established a track record in international markets, with its first overseas deal for SIM0278 setting a record for domestic autoimmune drug BD at the time [3] - The company has secured a licensing agreement exceeding $1 billion for SIM0500 with AbbVie, currently undergoing clinical trials in the U.S. and China [3] Group 4: Innovation and R&D - The company has invested over 8.5 billion yuan in R&D over six years, developing over 60 innovative drug candidates across various therapeutic areas [5] - Three new drug molecules are in the NDA approval process, while four are in Phase III clinical trials, indicating a robust pipeline [5] - The anticipated launch of significant new drugs will further enhance the company's position in the global biopharmaceutical market [5]

Core Insights - The company achieved a record revenue of 6.635 billion RMB in 2024, with a net profit of 733 million RMB, marking a historical high since its listing [1] - Adjusted net profit increased by 41.6% year-on-year to 1.018 billion RMB, driven by a higher proportion of innovative drug revenue [1] Business Performance - Innovative drug revenue accounted for 74.3% of total revenue, contributing 4.928 billion RMB, becoming the core engine of performance [2] - Revenue from the neuroscience sector reached 2.174 billion RMB, representing 32.8% of total revenue, with a year-on-year growth of 10.4% [2] - The autoimmune sector generated 1.811 billion RMB, showing a year-on-year increase of 28.0% [2] - Despite a decline in oncology revenue, this was attributed to product portfolio adjustments and market competition rather than an overall negative trend [2] Research and Development - The company has invested significantly in R&D, with approximately 974 R&D personnel, including 174 PhDs and 525 Master's degree holders [3] - In the past year, the company filed 380 new patent applications, including 364 invention patents, and has received 294 invention patents [3] - The company expanded its medical insurance coverage, successfully including two new products in the national medical insurance directory, enhancing market penetration [3] Global Strategy - The company is accelerating its globalization strategy through collaborations with top institutions domestically and internationally [4] - It is developing five innovative drugs simultaneously in the U.S. and China, including partnerships with Shenzhen Tajiwei Biopharmaceutical Co. and AbbVie Inc. [4] - Significant progress has been made in multiple innovative drug R&D projects, with clinical trials achieving key endpoints [4] Future Outlook - The company plans to focus on "Innovation Strategy 2.0" to deepen its global layout and strengthen competitive advantages [5] - It aims to leverage artificial intelligence to enhance R&D, marketing, and management processes, participating in the digital transformation of the pharmaceutical industry [5]