Summary of Changchun High-tech Conference Call Company Overview - **Company**: Changchun High-tech - **Date**: October 30, 2025 Key Points Financial Performance - **Overall Revenue**: Approximately 9.8 billion RMB, with a profit of about 1.165 billion RMB [3] - **Jinsai Pharmaceutical**: Revenue remained stable at 8.213 billion RMB, profit down by approximately 50% [3] - **Baike Pharmaceutical**: Revenue impacted by the return of shingles vaccine, down 53% to about 474 million RMB, resulting in a loss of approximately 158 million RMB [2][3] - **Traditional Chinese Medicine Segment**: Revenue slightly decreased to 542 million RMB, but profit increased by 2% to 36 million RMB [3] - **Real Estate Segment**: Revenue decreased by 8% to 544 million RMB, maintaining a slight profit [3] Product Pipeline and Market Strategy - **Medicare National Negotiation Participation**: Products include long-acting growth hormone Jinsai Zeng, Meishiya, and Children's Golden Granules, with decisions based on pricing [2][5] - **Innovative Drug Pipeline**: Products like NK422 and NK27 have shown preliminary clinical data, with expectations for rapid growth in business development (BD) from 2026 to 2028 [2][6] - **Sales Performance of New Products**: Strong sales momentum for Fuxing Umbilical Monoclonal Antibody, Meishiya, and Children's Golden Granules [2][6] - **Allergy Treatment Collaboration**: Partnership with LK for dust mite desensitization treatment, with plans to establish allergy desensitization centers in major pediatric hospitals [2][7] Clinical Trials and Development - **PD-1 Agonist**: Currently in Phase I clinical trials, with plans for Phase II trials following data disclosure [13] - **Clinical Progress of Meishiya**: Used for cancer anorexia and cachexia treatment, currently enrolling for clinical trials [11] - **Growth Hormone Monthly Formulation**: Adult SAD trials progressing well, transitioning to pediatric CAD trials expected soon [11] Market Challenges and Opportunities - **Non-Entry into Medicare for Jinsai Zeng**: Decision based on anticipated unreasonable pricing from the government; plans to negotiate with commercial insurance [12][14] - **Sales Team Expansion**: Sales team has grown to over 200 members, aiming to cover more than 1,500 hospitals [10][17] - **Focus on Respiratory and Allergy Treatments**: Targeting major diseases like cystic fibrosis and chronic obstructive pulmonary disease (COPD) with innovative products [19] Future Outlook - **Growth Potential**: Despite short-term challenges, long-term growth potential remains strong, especially in innovative drug development and market expansion [21][24] - **Hong Kong Listing Progress**: Normal progress with documents submitted by September 30, aiming for successful issuance next year [22] - **Clinical Pipeline**: 41 clinical pipelines in development, focusing on maximizing potential through continuous R&D [25] Additional Insights - **Market Size for Allergy Treatments**: Approximately 20 million children in China suffer from moderate to severe allergic rhinitis, providing a substantial market opportunity [8] - **Sales Strategy**: Emphasis on professional promotion and market penetration to enhance product visibility and acceptance among healthcare providers [18] This summary encapsulates the key insights from the conference call, highlighting the financial performance, product pipeline, market strategies, and future outlook of Changchun High-tech.

Core Insights - The company is transitioning from a "growth hormone monoclonal drive" to a "children's health platform enterprise," showcasing its commitment to continuous innovation in pediatric healthcare [1][10] - The founder and CEO, Dr. Jin Lei, highlighted the importance of enhancing the medication experience for children, which directly impacts treatment adherence and outcomes [3][10] R&D Achievements - The company launched the world's first long-acting growth hormone in 2014, reducing injection frequency from daily to weekly, and has invested 300 million RMB in direct costs from 2015 to 2025 to improve production processes [3] - The serious adverse reaction rate for the long-acting growth hormone, JinSaiZeng, is maintained below 0.01%, demonstrating superior product quality compared to international counterparts [3] Technological Advancements - The long-acting protein technology platform is a cornerstone for the company's strategic transformation, with ongoing development of monthly formulations like GenSci134 [4] - The unique "U-shaped PEG" technology addresses common industry challenges such as immunogenicity and pharmacokinetic instability, showcasing the platform's adaptability and industrial stability [4] Diversification Strategy - The company is expanding its pipeline to include various therapeutic areas such as endocrine metabolism, allergies, and neurological disorders, aligning with the trend of comprehensive health management for children [6][7] - Collaborative efforts with hospitals to establish pediatric chronic disease management centers reflect the company's commitment to addressing multiple chronic conditions in children [7] Strategic Product Focus - Three key strategic products are highlighted: - GenSci073, an oral growth hormone secretagogue, which could revolutionize treatment by eliminating the need for injections [8] - JinBeiXin, targeting systemic juvenile idiopathic arthritis, addressing unmet clinical needs in rare diseases [8] - AnTuoDa, a sublingual desensitization tablet for allergic diseases, combining professional medical attributes with consumer convenience [8] Investment and Global Expansion - The company has achieved continuous growth in R&D investment for 12 years and is constructing a global innovation R&D center in Shanghai, expected to be operational by 2026 [9] - The shift from a "China market capability" focus to a "global innovation + China market" dual-driven development model indicates the company's ambition to enhance its international competitiveness [9] Industry Implications - The company's strategic approach illustrates a pathway for Chinese pharmaceutical companies to evolve from "product companies" to "platform-based healthcare enterprises," emphasizing the need for a sustainable medical ecosystem that meets clinical demands [10]