Core Viewpoint - The company is actively advancing its research and development capabilities, particularly in the field of biopharmaceuticals, with a focus on innovative drug development and clinical trials [2]. Group 1: Oncology Research - The company has several products in the clinical research pipeline, including HuA21 injection, an innovative drug targeting HER2, which has shown promising safety and efficacy in early studies and is moving into Phase III clinical trials [2]. - The "5G9 injection," another HER2-targeting drug, has received approval for clinical trials [2]. - A collaboration with Afana Company is underway for the development of AFN0328 injection, aimed at treating HPV tumors and precancerous lesions, currently in Phase I clinical trials [2]. - The company has a stake in Boshengji, which is conducting clinical trials for the first universal CAR-Vδ1T cell drug (UTAA09 injection) with CDE's implied permission [2]. - Another investment in Yuansong Biotechnology has led to the development of a oncolytic virus drug (recombinant L-IFN adenovirus injection) that has received CDE's implied permission for clinical trials in advanced solid tumors [2]. Group 2: Growth and Development Research - The "AK2017 injection," a recombinant human growth hormone-Fc fusion protein, is progressing well in clinical trials, having completed Phase II enrollment and is preparing for Phase III discussions [2]. Group 3: Antiviral Research - The "AK1008 project," aimed at treating viral infections causing children's herpangina, is currently in Phase II clinical trials [2]. - The "AK1012 project," targeting respiratory syncytial virus infections in children, is in Phase I clinical trials [2]. - The company is committed to disclosing information on products that have not yet entered clinical trials once they obtain clinical approval [2].

Financial Performance - In the first half of 2025, the company achieved operating revenue of CNY 1,292.19 million, a year-on-year decrease of 0.51% [3] - The net profit was CNY 374.55 million, down 11.61% year-on-year, while the net profit attributable to shareholders was CNY 366.52 million, a decrease of 11.92% [3] - The net cash flow from operating activities increased by 53.75% to CNY 316.42 million [3] - The main business of biological products saw a year-on-year growth of 7.49%, with sales of the injection drug Trastuzumab "Ansatin" increasing by 298% [3] Business Strategy and Market Development - The company is optimizing sales channels and strategies to enhance market development amid intensified competition and fluctuating market demand [3] - Plans for the second half of the year include optimizing business structure, increasing market expansion efforts, and enhancing internal management and resource integration [3] Growth in Specific Product Lines - The growth hormone segment has seen a year-on-year increase in new patient enrollment, with water-based injections accounting for over 40% of the segment's revenue [3][4] - The company is collaborating with Weisheng Pharmaceutical on the long-acting growth hormone "Longpei Growth Factor," expected to be approved in the second half of 2025 [5] Innovative Drug Development - The company is advancing its self-developed innovative drugs, including: - "HuA21 Injection," targeting HER2, currently in Phase III clinical trials [8] - "AK2024 Injection," also targeting HER2, has received clinical approval [8] - "HK010 Injection," a dual-target drug, is progressing well in Phase I trials [8] - "AK2017 Injection," a recombinant human growth hormone, is in Phase II trials [8] - The company is also involved in various collaborative projects, including mRNA drug development and CAR-T therapies [9] Future Financial Outlook - The company anticipates a slight increase in sales and R&D expenses over the next two years due to the rise in clinical trials and new product launches [10] - Overall, the company aims to achieve a recovery growth target for the full year of 2025, supported by product market promotion and sales activities [10][11]

Financial Performance - Anke Bio's net profit for the first half of 2025 decreased by 11.92% year-on-year, amounting to 367 million yuan [1] - Total operating revenue for the same period was 1.292 billion yuan, a slight decline of 0.51% year-on-year [1] - The gross margin was reported at 76.45%, down 2.3% from the previous year, while the net margin fell to 28.99%, a decrease of 11.16% [1] - In Q2 2025, operating revenue was 663 million yuan, reflecting a year-on-year increase of 3.22, but net profit dropped by 20.6% to 158 million yuan [1] Key Financial Metrics - The total of selling, administrative, and financial expenses reached 474 million yuan, accounting for 36.71% of revenue, an increase of 2.1% year-on-year [1] - Earnings per share (EPS) decreased by 12.0% to 0.22 yuan, while operating cash flow per share increased by 54.1% to 0.19 yuan [1] - The company's net assets per share rose by 6.11% to 2.37 yuan [1] Changes in Financial Items - Short-term borrowings increased by 39.92% due to new loans from subsidiary Anke Huajie [3] - Prepayments surged by 219.45%, attributed to increased outsourced R&D payments [3] - Financial expenses saw a significant rise of 352.93%, mainly due to substantial foreign exchange losses [3] Business Evaluation - The company's return on invested capital (ROIC) was 17.1%, indicating strong capital returns, with a historical median ROIC of 14.04% over the past decade [4] - The net profit margin for the previous year was 28.23%, suggesting high added value in products or services [4] - Analysts project a revenue of 794 million yuan and an average EPS of 0.47 yuan for 2025 [4] Research and Development Progress - The company is advancing several clinical projects, including AK1012 for respiratory infections, which has completed Phase I trials [6] - AK2017, a growth hormone injection, is progressing well through clinical trials, with Phase III discussions underway [6] - The company is also developing innovative drugs targeting HER2, with multiple candidates in various stages of clinical trials [6]

Group 1: Company Goals and Strategies - The overall business goal for 2025 is to achieve restorative growth while maintaining stable and healthy development [2] - The company aims to enhance academic promotion and increase the sales proportion of water injections, while pushing for restorative growth in growth hormone sales [2] - The Chinese medicine sector will optimize sales policies for traditional Chinese medicine plasters to maintain growth momentum [2] Group 2: Investment and Partnerships - The cornerstone investment in Weisheng Pharmaceutical is aimed at establishing a long-term cooperative relationship to enhance resource integration and competitive advantage [3] - The company plans to divest forensic-related businesses and actively transition to new business areas [3] Group 3: Sales Performance - In Q1 2025, the sales of growth hormones showed a year-on-year increase, reversing the previous downward trend [3] - The sales revenue of Trastuzumab exceeded 100 million yuan in 2024, with expectations for significant year-on-year growth in 2025 [3] Group 4: Research and Development Progress - The company is advancing several clinical trials, including a new drug targeting HER2, which has shown promising safety and efficacy in early studies [4] - Ongoing clinical trials for various products, including AK1008 and AK1012, are aimed at treating viral infections in children [4] - The company is collaborating on innovative mRNA technology for cancer treatment, with clinical trials approved for AFN0328 injection [4]