Summary of China Biotech Outlook Industry Overview - The report focuses on the **China biotech industry**, particularly the performance of H-share listed companies in this sector, which has seen significant growth year-to-date (YTD) [1][2][3]. Key Performance Metrics - The average H-share EV/2030e sales multiple in the China biotech space has more than **doubled from 2.0x to 4.2x** YTD, surpassing the previous peak of **3.7x** in 2021 [3][21]. - The overall market cap of H-share listed China biotech companies has expanded by **154% YTD**, compared to **34%** for the Hang Seng Index (HSI) [9][19]. Market Drivers - The valuation re-rating is attributed to the **globalization of China biotech**, with increasing recognition of domestic drug developers' innovations [3][20]. - Anticipated **Fed rate cuts** are expected to boost investor risk appetite, particularly towards growth sectors like China biotech [4][9]. Stock Performance Insights - Stock performance will depend on fundamentals such as successful commercial execution and rapid innovation development [5][19]. - Companies with near-term catalysts (e.g., Akeso, InnoCare), proof-of-concept data (e.g., Keymed), and those positioned to leverage innovation trends (e.g., Innovent, Duality) are expected to outperform [5][19]. Risks and Challenges - Potential risks include persistent valuation premiums that may deter overseas investors and geopolitical tensions that could disrupt cross-border innovation flows [6][19]. Future Outlook - The report suggests that the sector will continue to be supported by the long-term thesis of **China drug innovation** becoming increasingly globalized [6][19]. - The expectation of higher valuations based on long-term forecasts (i.e., 2035e) could lead to further re-ratings across the sector [4][19]. Company-Specific Insights - **Abbisko Cayman Ltd**: Price target raised from **HK$8.30 to HK$22.00** [7][17]. - **Akeso, Inc.**: Price target increased from **HK$87.00 to HK$215.00** [7][17]. - **Duality Biotherapeutics Inc**: Price target raised from **HK$244.00 to HK$493.00** [7][17]. - **Everest Medicines Ltd**: Price target increased from **HK$40.00 to HK$55.00** [7][17]. - **HUTCHMED (China) Ltd**: Price target decreased from **US$18.00 to US$13.75** [7][17]. Valuation Trends - The report indicates a widening discount between Chinese biotech companies with in-house drug discovery capabilities and those relying on external sources [22][25]. - The current valuation band for the China biotech sector is approximately **3x-5x EV/sales**, aligning more closely with US biopharma companies [21][25]. Conclusion - The China biotech sector is at a pivotal inflection point, driven by domestic innovation and increasing global recognition. The anticipated Fed rate cuts and ongoing globalization trends are expected to further enhance the sector's attractiveness to investors [4][19][25].

2025.8 Disclaimer This presentation has been delivered to interested parties for information purposes only and upon the express understanding that such parties will use it only for the purposes set forth above, and it is not intended to form the basis of any investment decision or any decision to purchase securities of Akeso, Inc. (the "Company"). This presentation does not constitute or contain an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities in a ...