Group 1 - The Chinese innovative drug industry is experiencing robust growth driven by policy support, talent return, and engineer dividends [1] - The number of original innovative drug research pipelines has increased from 124 in 2015 to 704 in 2024, ranking first globally [1] - Chinese companies are accelerating their shift towards original innovation, with the number of self-researched FIC innovative drugs entering clinical trials rising from 9 in 2015 (less than 10% globally) to 120 in 2024 (over 30%) [1] Group 2 - Chinese pharmaceutical companies are active in global business development transactions, with total licensing agreements reaching $51.9 billion in 2024, including an upfront payment of $4.1 billion [1] - The diversity of transaction types is increasing, with ADC drugs accounting for 20% and small nucleic acid drugs achieving over $6 billion in significant transactions [1] - Over 60% of preclinical License-out projects indicate enhanced international attractiveness of early-stage research assets [1] Group 3 - The Vaccine ETF (159643) tracks the Vaccine Biotechnology Index (980015), which is compiled by China Securities Index Co., Ltd., selecting listed companies involved in vaccine research, production, and sales [1] - The Vaccine Biotechnology Index reflects the overall performance of listed companies in China's vaccine industry, characterized by high growth and innovation [1]

Group 1 - The core viewpoint emphasizes the continuous catalysis in the innovative drug sector of the pharmaceutical and biotechnology industry, with a focus on areas such as anti-tumor, autoimmune, GLP-1, stem cells, and gene therapy [1] - The CXO sector is expected to see a valuation recovery due to supportive policies for innovative drug development in China and a reduction in overseas geopolitical risks [1] - In the blood products sector, there is an increasing demand for intravenous immunoglobulin (IVIG) in critical care, driven by an expanding market and a price increase in high-end chromatography IVIG, with a short-term shortage expected to persist [1] Group 2 - The vaccine sector is under pressure, but some key companies are showing marginal performance improvements, with attention on new areas such as shingles and the penetration potential of domestic high-cost performance HPV manufacturers [1] - In traditional Chinese medicine, it is recommended to focus on companies related to fertility subsidies [1] - The medical device sector is experiencing accelerated replacement due to centralized procurement, with a focus on the replacement potential in electrophysiology and neurointervention fields [1] Group 3 - The low-value consumables industry is gradually completing inventory destocking, with attention on cyclical upward opportunities and the potential of the GLP-1 industry chain [1] - The Vaccine ETF (159643) tracks the Vaccine Biotechnology Index (980015), which is compiled by China Securities Index Co., Ltd., selecting listed companies involved in vaccine research, production, and sales from the A-share market [1] - The Vaccine Biotechnology Index aims to reflect the overall performance of listed companies related to vaccines and biotechnology [1]