Core Viewpoint - The report highlights that Heng Rui Medicine is experiencing a significant transformation driven by high-intensity R&D investments, with innovative drug sales becoming the core growth driver for the company's performance [2][3]. Financial Performance - In the first half of 2025, Heng Rui Medicine achieved operating revenue of 15.761 billion yuan, a year-on-year increase of 15.88% [2]. - The net profit attributable to shareholders reached 4.450 billion yuan, up 29.67% year-on-year [2]. - Operating cash flow net amount was 4.300 billion yuan, reflecting a 41.80% increase year-on-year [2]. - The revenue, net profit, and operating cash flow all reached record highs for the same period in previous years, indicating an explosive growth phase [2]. R&D Investment - Heng Rui Medicine's R&D investment in the first half of 2025 was 3.871 billion yuan, with 3.228 billion yuan being expensed [5]. - Cumulatively, the company has invested over 48 billion yuan in R&D [5]. - The company launched six Class 1 innovative drugs during the reporting period, contributing to its performance growth [5]. Innovative Drug Sales - Innovative drug sales and licensing revenue amounted to 9.561 billion yuan, accounting for 60.66% of the company's total operating revenue [2]. - The sales revenue from innovative drugs was 7.570 billion yuan [2]. - The strong sales of innovative drugs are a major driving force behind the company's performance growth [6]. Business Development (BD) Transactions - Heng Rui Medicine has engaged in significant BD transactions, including a $1.97 billion contract with Merck for an oral small molecule project and a partnership with GSK worth $500 million [3][4]. - The normalization of BD transactions is seen as a key feature of the development of China's innovative drug industry [3][4]. - The company received upfront payments of $200 million from Merck and $75 million from IDEAYA during the reporting period, further boosting its revenue [6]. Industry Trends - The report indicates that the Chinese innovative drug industry is experiencing a surge in BD activities, with a total of $66 billion in license-out transactions in the first half of 2025, surpassing the total for 2024 [10]. - The approval of 43 innovative drugs by the National Medical Products Administration in the first half of 2025 marks a 59% year-on-year increase, setting a historical record for the same period [9]. - The report emphasizes that the future of innovative drug companies will rely on a cycle of R&D, commercialization, and further R&D, with BD transactions becoming essential for cash flow and market feedback [10].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容所產生或因依賴 該等內容而引致的任何損失承擔任何責任。 Jiangsu Hengrui Pharmaceuticals Co., Ltd. 江蘇恒瑞醫藥股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：1276） 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條刊發。 根據中華人民共和國的有關法例規定，江蘇恒瑞醫藥股份有限公司（「本公司」）在 上海證券交易所網站( www.sse.com.cn )刊發了以下公告。茲載列如下，僅供參閱。 承董事會命 江蘇恒瑞醫藥股份有限公司 董事長 孫飄揚先生 中國上海 2025年8月20日 於本公告日期，董事會成員包括(i)執行董事孫飄揚先生、戴洪斌先生、馮佶女 士、張連山先生、江寧軍先生及孫杰平先生；(ii)非執行董事郭叢照女士；及(iii) 獨立非執行董事董家鴻先生、曾慶生先生、孫金雲先生及周紀恩先生。 江苏恒瑞医药股份有限公司 2025 年半年度报告 公司代码：600276 ...

Group 1 - The innovative drug Regaglitin Metformin Tablets developed by Shandong Shengdi Pharmaceutical Co., Ltd. has been officially approved for market launch, marking the ninth class 1 innovative drug approved in Shandong Province since the 14th Five-Year Plan [1] - Jinan has approved a total of 25 new drug products this year, ranking first in the province [1] - The Jinan Pharmaceutical Innovation Service Center has established a "one enterprise, one policy, full tracking" service system to address the long R&D cycles and high technical requirements of pharmaceutical innovation [1] Group 2 - The center provides pre-registration guidance, technical empowerment, and targeted financial support to assist enterprises in the drug development process [1] - The center aims to enhance its service philosophy of "full chain guidance + full element docking + full cycle tracking" to support high-quality development of the pharmaceutical industry [2] - The center is committed to achieving a 100% satisfaction rate for enterprise services through various mechanisms, including face-to-face service and zero-delay response to enterprise needs [2]

Industry Investment Rating - The report rates the pharmaceutical industry as "Leading" [1] Core Insights - The ASCO conference has showcased significant data from several domestic innovative drugs, highlighting opportunities for innovation and performance resonance [1][4] - The report emphasizes the increasing competitiveness and international influence of Chinese pharmaceutical companies, with a record number of original research results presented at ASCO [4][5] - The report suggests a positive outlook for the innovative drug sector, driven by favorable policies and low valuations compared to historical averages [4] Summary by Sections Market Performance - The Hang Seng Index fell by 2.4% during the week, while the Hang Seng Healthcare Index decreased by 1.0%, ranking 7th among 12 industry indices [4][22] - Sub-industry performance varied, with life sciences tools and services up by 3.4%, and biotechnology down by 4.9% [4][22] Company Ratings and Valuations - The report provides a detailed valuation summary for various companies, with most rated as "Buy" and a few as "Neutral" or "Sell" [3][42] - Notable companies with "Buy" ratings include: - AstraZeneca (AZN US) with a target price of 93.30 and a current price of 70.96 [3] - BeiGene (6160 HK) with a target price of 208.80 and a current price of 146.00 [3] - Innovent Biologics (1801 HK) with a target price of 60.00 and a current price of 59.55 [3] ASCO Conference Highlights - The 2025 ASCO conference featured 71 original research results from Chinese pharmaceutical companies, with 11 studies presented as Late Breaking Abstracts [5][6] - Companies like Innovent Biologics and Rongchang Biologics showcased promising clinical data for their innovative therapies [5][6] Investment Recommendations - The report recommends focusing on companies with strong growth potential and clear profitability timelines, such as Rongchang Biologics, Kangfang Biologics, and Innovent Biologics [4] - It also highlights the potential for prescription drug companies like Xiansheng Pharmaceutical and Hansoh Pharmaceutical to expand their valuations due to high growth rates [4] Recent Approvals and Developments - Rongchang Biologics received approval for a new indication for its drug in treating myasthenia gravis [20] - Innovent Biologics published positive results for its dual receptor agonist in a prominent medical journal [20] - BeiGene's clinical research for its drug in small cell lung cancer has shown promising results [20]

Group 1 - The ASCO conference opening on May 30 will see a record number of presentations from Chinese experts, catalyzing the innovative drug sector [1] - On May 27, the National Medical Products Administration approved the innovative drug Regaglitin Metformin Tablets by Heng Rui Medicine for the treatment of adult type 2 diabetes, highlighting the growing health threat of diabetes [1] - The Hong Kong innovative drug sector is experiencing a significant valuation adjustment, with the Hong Kong innovative drug index's price-to-earnings ratio dropping from 64 times on February 21 to 27 times on May 27, indicating a strong value proposition for investors [1] Group 2 - The Hong Kong innovative drug sector saw a notable increase on May 27, with key stocks such as Junshi Bioscience rising over 17%, and others like Lepu Biopharma and CSPC Pharmaceutical rising over 7%, reflecting strong market interest [1] - The Hong Kong innovative drug ETF (159567) has shown high trading activity, with an average daily trading volume of 859 million yuan over the past five trading days, indicating robust market engagement [1] - The innovative drug ETF (159992) tracks an index that includes leading companies in the innovative drug industry, benefiting from trends such as AI-driven drug development and the expansion of domestic innovative drugs into international markets [2] Group 3 - According to Everbright Securities, the investment value of the innovative drug sector lies in its technological platform advantages and global commercialization potential, driven by changing demographics and policy adjustments [2] - The innovative drug sector is positioned to meet unmet clinical needs and achieve import substitution through technological breakthroughs, thus opening new market opportunities [2] - The high added value and differentiated advantages of innovative drugs enable them to command a higher willingness to pay, especially under supportive policies and market demand [2]

Investment Rating - The report indicates a positive investment outlook for the pharmaceutical and biotechnology industry, particularly focusing on innovative drugs and their potential in the market [1]. Core Insights - The report highlights the significant achievements of domestic innovative drugs showcased at the upcoming ASCO 2025 conference, emphasizing the growing innovation capabilities of Chinese pharmaceutical companies [6][7]. - A strategic collaboration between 3SBio and Pfizer regarding the PD-1/VEGF dual antibody has been established, which includes a global licensing agreement with potential payments up to $4.8 billion based on development milestones and sales performance [2][6]. - Three domestic Class 1 innovative drugs have been approved for market launch, targeting prevalent diseases such as influenza, cancer, and diabetes, marking a critical step in the innovation and internationalization of domestic original drugs [2][6]. Market Performance Review - During the period from May 17 to May 24, the Shanghai Composite Index closed at 3348.37, down 0.57%, while the pharmaceutical industry index rose by 1.78%, ranking first among 31 primary industry indices [1][12]. - The weekly performance of various sectors within the pharmaceutical industry showed positive growth, with notable increases in chemical preparations (3.49%), biological products (1.74%), and medical services (1.42%) [1][12]. Upcoming Events - The ASCO annual meeting, a major international conference in oncology, is scheduled to take place from May 30 to June 3, 2025, in Chicago, where numerous innovative research results from domestic companies are expected to be presented [6][7]. Key Companies to Watch - The report suggests focusing on companies with strong innovation capabilities, including Heng Rui Medicine, Innovent Biologics, BeiGene, and 3SBio, as they are expected to showcase significant advancements at ASCO 2025 [7][19]. - It also recommends monitoring companies involved in high-end medical devices and those benefiting from market concentration in chain pharmacies and comprehensive medical services [8][19].

Core Viewpoint - The approval of Heng Rui Medicine's innovative drug, Regaglitin Metformin, marks a significant advancement in the domestic innovative drug sector, filling a gap in the market for Type 2 diabetes treatment [1] Group 1: Market Performance - Heng Rui Medicine's stock surged over 25% following the drug approval, reflecting strong market enthusiasm for the Hong Kong innovative drug sector [1] - The Hong Kong innovative drug index's price-to-earnings ratio dropped from 64 times on February 21 to 27 times on May 23, indicating a significant reduction in valuation and highlighting attractive investment opportunities [1] Group 2: Industry Trends - The innovative drug sector is experiencing a positive trend, with notable collaborations such as the record-setting upfront payment from 3SBio to Pfizer, showcasing the growing potential of domestic innovative drugs in international markets [1] - The innovative drug ETF (159567) tracks the National Index and has a 90% weight in innovative drug companies, positioning it to benefit from trends like AI-driven drug development and the expansion of domestic innovative drugs [2] Group 3: Clinical Research Advancements - The innovative drug sector has shown significant investment value due to breakthroughs in clinical research and drug development, with promising results expected from multiple domestic innovative drug studies at the upcoming 2025 ASCO conference [3] - New treatment options for non-small cell lung cancer (NSCLC) and small cell lung cancer (SCLC) have demonstrated high objective response rates (ORR) and progression-free survival (PFS), indicating strong potential for commercialization [3]

Group 1 - The core viewpoint of the news highlights the approval of a new innovative drug by Heng Rui Medicine, which is the first self-developed DPP-4 inhibitor combined with metformin in China, aimed at improving blood sugar control for adult patients with type 2 diabetes [1] - Following the announcement, Heng Rui Medicine's stock surged nearly 30% in the Hong Kong market, indicating strong investor confidence in the innovative drug sector [1] - The Hong Kong innovative drug index has seen a significant decrease in its price-to-earnings ratio from 64 times on February 21 to 25 times on May 22, suggesting a favorable investment opportunity in the sector [1] Group 2 - The Hong Kong innovative drug ETF (159567) tracks the National Index for Hong Kong Innovative Drugs, with 90% of its weight in innovative drug companies, positioning it to benefit from trends such as AI-enabled drug development and the expansion of domestic innovative drugs [2] - The larger innovative drug ETF (159992) encompasses leading companies in the innovative drug industry chain, benefiting from advancements in AI, the internationalization of domestic innovative drugs, and the introduction of new healthcare policies [2] - According to Xingye Securities, the innovative drug sector in China is transitioning from a "follower" to a "leader," with significant advancements expected in new targets and technologies by 2025, showcasing strong global competitiveness in areas like ADC, bispecific antibodies, and cell therapy [2]

Policy Developments - The total amount of personal accounts for employee medical insurance mutual aid reached 17.792 billion yuan from January to April 2025, with 133 million participants [2] Drug and Device Approvals - The KRAS G12C inhibitor, Gozai Lese, developed by Jako and Ailis, has been approved for the treatment of adult patients with locally advanced or metastatic non-small cell lung cancer (NSCLC) who have previously received at least one line of systemic therapy [3] - Heng Rui Medicine's innovative drug, Regaglitin Metformin Tablets, has been approved for use in adults with type 2 diabetes to improve blood sugar control [4] Capital Markets - Boyin Hearing announced a B-round financing of several tens of millions, aimed at increasing investment in domestic hearing aid research and development [5] - Lid Health Technology has completed nearly 100 million yuan in angel round financing, with funds allocated for accelerating technology research and product commercialization [6] Major Industry Events - Rongchang Bio plans to place 19 million new H-shares at a price of 42.44 HKD per share, raising approximately 796 million HKD for core product pipeline expansion [7] - Haoyuan Pharmaceutical announced that its shareholder, Zhenjin Investment, has reduced its holdings by approximately 3.2 million shares, accounting for 1.51% of the total share capital [8] - Baiyatai has decided to terminate the BAT3306-002 study, which evaluated the pharmacokinetics, efficacy, and safety of BAT3306 in combination with chemotherapy in IV-stage NSCLC patients, after an investment of 224 million yuan in the project [9]

Group 1 - Company Zhongnan Media signed a government procurement contract worth 1.009 billion yuan for the supply of free textbooks and related teaching resources in Hunan Province for 2025, ensuring stable revenue for the company [1] - Company Zhongnan Media was established in December 2008, focusing on the publishing, distribution, and printing of publications [2] Group 2 - Company Tongling Nonferrous Metals announced the resignation of its general manager and deputy general manager due to higher-level assignments [3] - Company Tongling Nonferrous Metals was founded in November 1996, primarily engaged in the mining and processing of copper, iron, and sulfur gold [4] Group 3 - Company Xinyi Co. plans to reduce its shareholding by no more than 1% due to personal asset allocation needs [5] - Company Xinyi Co. was established in April 1996, specializing in the research, production, and sales of functional new materials based on organic synthetic resins [6] Group 4 - Company Xinhua Pharmaceutical received approval for the registration of ibuprofen suspension drops, a non-prescription drug for relieving fever and mild to moderate pain in children [7] - Company Xinhua Pharmaceutical was founded in November 1998, focusing on the sales of raw materials and intermediates, as well as chemical products [8] Group 5 - Company Emei Mountain A elected Tong Jianming as a director and appointed him as the general manager [9] - Company Emei Mountain A was established in October 1997, primarily engaged in tourism services, including ticket sales and hotel operations [10] Group 6 - Company Heng Rui Medicine announced the approval of its innovative drug, Regaglitin Metformin tablets, for market launch, aimed at improving blood sugar control in type 2 diabetes patients [11] - Company Heng Rui Medicine was founded in April 1997, focusing on the research, production, and sales of pharmaceuticals [12] Group 7 - Company Chongqing Rural Commercial Bank announced the approval of Tang Li's qualification as vice president [13] - Company Chongqing Rural Commercial Bank was established in June 2008, focusing on inclusive finance and corporate financial services [14] Group 8 - Company Weili Medical received certification from the Canadian Ministry of Health for its extraction bag, allowing legal sales in the Canadian market [15] - Company Weili Medical was founded in April 2004, specializing in the research, production, and sales of medical devices in various fields [16] Group 9 - Company Ailis received approval for its KRAS G12C inhibitor, a new drug for treating advanced non-small cell lung cancer [17] - Company Ailis was established in March 2004, focusing on innovative drug research and development in oncology [18] Group 10 - Company Renfu Pharmaceutical received registration certificates for two new drugs, including methylprednisolone tablets and hydrocodone ibuprofen tablets [19] - Company Renfu Pharmaceutical was founded in March 1993, focusing on the research, production, and sales of pharmaceuticals [20] Group 11 - Company Siwei Tuxin received multiple invention patent certificates from the National Intellectual Property Administration [21] - Company Siwei Tuxin was established in December 2002, focusing on navigation maps, intelligent driving, and automotive electronic chips [22] Group 12 - Company Changhong High-Tech received a warning letter from the Ningbo Securities Regulatory Bureau for failing to disclose related party transactions [23] - Company Changhong High-Tech was founded in June 2012, focusing on the research, production, and sales of styrene thermoplastic elastomers [24] Group 13 - Company Gansu Energy Chemical announced the resignation of its director and general counsel due to organizational adjustments [25] - Company Gansu Energy Chemical was established in December 1996, focusing on coal mining and sales [26] Group 14 - Company Shanghai Construction received land use rights for a residential project in Tianjin, with a total investment of approximately 330 million yuan [27] - Company Shanghai Construction was founded in June 1998, focusing on construction, design consulting, and real estate development [28] Group 15 - Company Chengdu Xian Dao announced that a major shareholder plans to increase its stake in the company by 25 to 50 million yuan [29] - Company Chengdu Xian Dao was established in February 2012, focusing on drug research and development services [30] Group 16 - Company Hunan Silver announced the resignation of its deputy general manager due to organizational adjustments [31] - Company Hunan Silver was founded in November 2004, focusing on the smelting and sales of silver and other precious metals [32] Group 17 - Company China Chemical reported a total contract amount of 123.017 billion yuan for the first four months of the year [33] - Company China Chemical was established in September 2008, focusing on construction engineering and modern services [34] Group 18 - Company Borui Pharmaceutical received a registration certificate for iodinated contrast agent injection [35] - Company Borui Pharmaceutical was founded in October 2001, focusing on the research and production of pharmaceutical intermediates and raw materials [36] Group 19 - Company Wanhua Chemical announced a technical transformation of its ethylene unit, aiming to diversify raw materials and enhance competitiveness [37] - Company Wanhua Chemical was established in December 1998, focusing on the research, production, and sales of polyurethane and fine chemicals [38] Group 20 - Company ST Houlv received approval for its injectable cephalosporin sodium to pass the consistency evaluation for generic drugs [39] - Company ST Houlv was founded in June 2005, focusing on drug research, production, and sales [40] Group 21 - Company Anka Intelligent announced a targeted reduction of capital for its subsidiary [41] - Company Anka Intelligent was established in May 2004, focusing on the research and development of power system solutions [42] Group 22 - Company Huaming Intelligent announced financial support for its subsidiary [43] - Company Huaming Intelligent was founded in August 2001, focusing on intelligent systems and services [44] Group 23 - Company Foton Motor received a central subsidy of 124 million yuan for promoting new energy vehicles [45] - Company Foton Motor was established in August 1996, focusing on vehicles and mobile equipment [46] Group 24 - Company Guangsheng Tang received a registration certificate for ritonavir tablets, used in HIV treatment [47] - Company Guangsheng Tang was founded in June 2001, focusing on the research and production of antiviral drugs [48] Group 25 - Company Kexing Pharmaceutical received FDA approval for clinical trials of its GB18 injection in the United States [49] - Company Kexing Pharmaceutical was established in August 1997, focusing on the research and production of recombinant protein drugs [50] Group 26 - Company Heng Rui Medicine announced the final price for its H-share public offering at 44.05 HKD per share [51] - Company Heng Rui Medicine was founded in April 1997, focusing on the research, production, and sales of pharmaceuticals [52] Group 27 - Company Wandong Medical elected a new chairman following the resignation of the previous chairman [53] - Company Wandong Medical was established in May 1997, focusing on the research, production, and sales of medical imaging equipment [54] Group 28 - Company Qixia Construction announced a plan to reduce its shareholding by no more than 3% [55] - Company Qixia Construction was founded in December 1999, focusing on real estate development and management [56] Group 29 - Company Dasheng Intelligent signed a contract worth 11.5 million yuan for a high-efficiency machine room project [57] - Company Dasheng Intelligent was established in March 1995, focusing on AIoT intelligent management platforms [58] Group 30 - Company Huashi Technology announced an extension of the detention period for its actual controller [59] - Company Huashi Technology was founded in June 1998, focusing on information system integration and technical services [60] Group 31 - Company Tianzhihang announced plans to increase capital for its subsidiary [61] - Company Tianzhihang was established in October 2010, focusing on orthopedic surgical navigation robots [62] Group 32 - Company Pingzhi Information signed a procurement framework agreement with China Mobile for base station antennas [63] - Company Pingzhi Information was founded in November 2002, focusing on communication equipment and services [64] Group 33 - Company Mengke Pharmaceutical received acceptance for its new drug application for a new antibacterial drug [65] - Company Mengke Pharmaceutical was established in August 2012, focusing on small molecule drug research [66] Group 34 - Company Kede Education announced a change in its actual controller to a state-owned asset supervision committee [67] - Company Kede Education was founded in January 2003, focusing on education services [68] Group 35 - Company Jinlong Automobile elected a new chairman following the board meeting [69] - Company Jinlong Automobile was established in October 1996, focusing on the production and sales of buses [70] Group 36 - Company Jushen Co. received dividends totaling 95.7 million yuan from its subsidiaries [71] - Company Jushen Co. was founded in November 2011, focusing on logistics and warehousing services [72] Group 37 - Company Qingyun Technology announced plans for shareholders to reduce their holdings by up to 4.5% [73] - Company Qingyun Technology was established in April 2012, focusing on cloud computing products and services [74] Group 38 - Company Shengdexintai received a procurement notice from Dongfang Electric for a project worth 234 million yuan [75] - Company Shengdexintai was founded in October 2001, focusing on the production and sales of energy equipment [76] Group 39 - Company Juzhi Technology announced a plan for a director to reduce his holdings by up to 400,000 shares [77] - Company Juzhi Technology was established in November 2007, focusing on machine vision equipment [78] Group 40 - Company Sanrenxing announced plans for shareholders to reduce their holdings by up to 3% [79] - Company Sanrenxing was founded in August 2003, focusing on integrated marketing services [80] Group 41 - Company Transsion Holdings announced plans to increase capital for its subsidiary by 70 million yuan [81] - Company Transsion Holdings was established in August 2013, focusing on smart terminal design and sales [82] Group 42 - Company Jinling Pharmaceutical received approval for its raw material drug for iron deficiency anemia [83] - Company Jinling Pharmaceutical was founded in September 1998, focusing on drug manufacturing and healthcare services [84] Group 43 - Company Xiyu Tourism announced plans for shareholders to reduce their holdings by up to 3% [85] - Company Xiyu Tourism was established in January 2001, focusing on tourism and scenic area management [86]