Core Viewpoint - The company is experiencing a reduction in losses in the first half of 2025, with ongoing progress in its research pipeline [1][2] Financial Performance - In the first half of 2025, the company reported an adjusted loss of 0.78 billion, compared to a loss of 1.10 billion in the same period last year [1] - Research and development expenses for 2025H1 were 0.80 billion, a decrease of 37.5% year-on-year, primarily due to reduced expenses from the LZ901 domestic Phase 3 clinical trial [1] - Administrative expenses were 0.45 billion, down 42.6% year-on-year, mainly due to a reduction in share-based payment amortization [1] Research and Development Pipeline - LZ901: The company initiated a head-to-head clinical trial of LZ901 and the recombinant glycoprotein E subunit vaccine HZ/su (Shingrix) in November 2023, successfully completing it in 2025H1. Results indicated that LZ901 induced superior cellular immunogenicity and demonstrated better safety in adults aged 50 and above compared to HZ/su [1] - K3: This is a recombinant human anti-tumor necrosis factor (TNF)-α monoclonal antibody injection, a core pipeline product and a biosimilar to Humira (adalimumab), aimed at treating various autoimmune diseases. The company plans to evaluate the appropriate timing to initiate Phase 3 clinical trials in China, with the earliest expected start in the second half of 2026 [1] - K193: This is a bispecific antibody injection (CD19xCD3) for treating B-cell leukemia and lymphoma, which is the world's first asymmetric structure CD19/CD3 bispecific antibody. Phase 1 clinical trials began in December 2019, with completion expected in 2026 [2] - Other Preclinical Products: As of June 30, 2025, the company has six products in preclinical stages, including recombinant varicella vaccine, recombinant RSV vaccine, recombinant HSV-1 vaccine, recombinant HSV-2 vaccine, K333 bispecific antibody for treating myeloid leukemia, and K1932 bispecific antibody for treating lymphoma [2] Investment Outlook - The company maintains its previous profit forecast, expecting risk-adjusted revenues of 0.22 billion, 4.39 billion, and 9.71 billion for 2025 to 2027, with net profits attributable to the parent company of -1.46 billion, -1.27 billion, and 1.16 billion respectively [2] - The company maintains an "outperform the market" rating [2]

Group 1: Company Performance - Baike Bio reported a revenue of approximately 1.229 billion RMB for 2024, a year-on-year decline of 32.64% [1] - The net profit attributable to shareholders was around 232 million RMB, down 53.67% year-on-year [1] - The decline in performance is primarily attributed to reduced sales of the shingles vaccine [1] Group 2: Green Bamboo Bio's Situation - Green Bamboo Bio's stock price fell by 9.09% on May 2, leading to significant sell-offs, with a trading volume of 1.8036 million shares, the highest since 2024 [2] - The company has experienced a drastic decline in liquidity, with 10 months in the past 17 months having a monthly trading volume of less than 200,000 shares [2] - Green Bamboo Bio's market capitalization is currently around 4.1 billion HKD, below the 7 billion HKD threshold required for inclusion in the Hang Seng Index [4] Group 3: Financials of Green Bamboo Bio - Green Bamboo Bio reported a net loss of 168 million RMB for the year, a reduction of 32.5% compared to the previous year's loss of 249 million RMB [4] - The company has not yet commercialized any products, with total revenue remaining at zero [4] - Research and development expenses decreased by 21.7% to 135 million RMB [4] Group 4: Product Development - Green Bamboo Bio's core product, the recombinant shingles vaccine LZ901, has completed Phase III clinical enrollment and submitted a Biologics License Application (BLA) [6] - LZ901 is expected to be the first shingles vaccine with a tetrameric molecular structure, targeting adults aged 50 and above [6] - The vaccine is positioned to compete with GSK's Shingrix, which has seen significant sales growth, reaching 3.446 billion GBP in 2023 [8] Group 5: Market Dynamics - The domestic vaccine industry is facing structural adjustment pressures, with a decline in consumer willingness to receive vaccinations and a significant drop in demand for self-paid vaccines [10] - The competition in the vaccine market is intense, with over 10 manufacturers competing in areas like rabies and influenza vaccines [10] - The market for shingles vaccines is currently less competitive, with only Baike Bio's Ganwei and GSK's Shingrix available, providing an opportunity for LZ901 if it commercializes as expected [10] Group 6: Challenges Ahead - Despite the potential of LZ901, the company may struggle to significantly improve its financial structure and fundamentals due to market education challenges and profit margin pressures [11] - The current vaccination rate for shingles in China is only 0.1%, significantly lower than in developed countries, indicating a need for market education [10]