Core Viewpoint - Zhongyin International reports that CSPC Pharmaceutical Group (01093) experienced a 6% quarter-on-quarter revenue growth in Q3 2025, reaching 6.6 billion RMB, primarily due to the absorption of negative impacts on traditional oncology products. However, net profit decreased by 10% to 964 million RMB due to a significant increase in operating expenses. The target price is adjusted to HKD 8.5, maintaining a "Hold" rating, which corresponds to a 20x P/E ratio for 2026 [1]. Revenue and Profit Analysis - Q3 2025 revenue reached 6.6 billion RMB, reflecting a 6% quarter-on-quarter increase [1] - Net profit for Q3 2025 decreased by 10% to 964 million RMB, attributed to rising operating expenses [1] Management Guidance - Management maintains guidance for a mid-single-digit recovery in H2 2025 compared to H1 2025, despite uncertainties from the upcoming national centralized procurement renewal and strict control of medical insurance fund expenditures [1] - Anticipated product launches in H1 2026 include innovative products (e.g., Bai Zi II, KN026) and biosimilars (e.g., Omadubmab, Pertuzumab), although management remains cautious about the domestic market outlook for 2026 [1] Strategic Focus - To address domestic uncertainties, internationalization is emphasized as a key strategic priority [1] - R&D expenses are expected to increase by 15% to 20% year-on-year in 2026 [1] Revenue Forecast Adjustments - Zhongyin International maintains its 2025 revenue forecasts due to Q3 performance meeting expectations, but lowers revenue forecasts for 2026 and 2027 by 5.8% and 8.5%, respectively, due to uncertainties from national centralized procurement and potentially slower new product sales growth [1]

Core Insights - Zhongjin International reported that CSPC Pharmaceutical Group (01093) achieved a quarterly revenue growth of 6% to 6.6 billion RMB in Q3 2025, primarily due to the absorption of negative impacts on traditional oncology products [1] - However, net profit decreased by 10% to 964 million RMB, mainly due to a significant increase in operating expenses [1] - The target price has been adjusted down to 8.5 HKD, maintaining a "Hold" rating, which corresponds to a 20x P/E ratio for 2026 [1] Revenue and Profit Analysis - All core therapeutic areas experienced sales growth, indicating a positive trend in the company's product performance [1] - The management maintains guidance for a mid-single-digit recovery in performance for the second half of 2025 compared to the first half [1] - The anticipated uncertainty from the upcoming national centralized procurement renewal and strict control of medical insurance fund expenditures has led to a cautious outlook for the domestic market in 2026 [1] Strategic Focus and R&D - The management emphasized that internationalization is a key strategic focus to address domestic uncertainties [1] - R&D expenses are expected to increase by 15% to 20% year-on-year in 2026, reflecting the company's commitment to innovation [1] - Despite the expected launch of innovative products and biosimilars in the first half of 2026, the management remains cautious about the growth rate of new product sales [1] Forecast Adjustments - Zhongjin International has maintained its 2025 forecasts due to Q3 performance meeting expectations [1] - However, revenue forecasts for 2026 and 2027 have been reduced by 5.8% and 8.5%, respectively, due to uncertainties surrounding the first to eighth batches of national centralized procurement and potential slower-than-expected sales growth of new products [1]

Core Viewpoint - The report from Zhongyin International indicates that the revenue of CSPC Pharmaceutical Group increased by 6% quarter-on-quarter to 6.6 billion yuan, primarily due to the recovery from negative impacts on traditional oncology products, with sales growth across all core therapeutic areas [1] Financial Performance - Revenue for the third quarter reached 6.6 billion yuan, reflecting a 6% increase compared to the previous quarter [1] - Net profit decreased by 10% to 964 million yuan, attributed to a significant rise in operating expenses [1] Management Guidance - Management maintains guidance for a mid-single-digit recovery in performance for the second half of 2025 compared to the first half [1] - Despite the anticipated launch of innovative products and biosimilars in the first half of 2026, management expresses caution regarding the domestic market outlook due to uncertainties from upcoming national procurement renewals and strict control of medical insurance fund expenditures [1] Forecast Adjustments - The firm has kept its 2025 revenue forecast unchanged, but has lowered the revenue projections for 2026 and 2027 by 5.8% and 8.5% respectively, due to uncertainties surrounding the national procurement renewals and potentially slower-than-expected sales growth of new products [1] - The target price has been adjusted down to 8.5 HKD, while maintaining a "Hold" rating [1]

Investment Rating - The report maintains a "Positive" investment rating for the pharmaceutical and biotechnology industry in China [5]. Core Insights - The ESMO conference showcased significant breakthroughs in both foreign and domestic innovative drugs, highlighting the competitive strength of Chinese pharmaceutical companies on the international stage [3][12]. - The report emphasizes the potential of domestic innovative drugs to redefine standard therapies, particularly in the context of PD-1/VEGF dual antibodies and antibody-drug conjugates (ADCs) [8][29]. Summary by Sections 1. PD-1 plus and Domestic Dual Antibodies - The PD-(L)1/VEGF dual antibody, Ivosidenib, demonstrated strong positive results in a Phase III trial for first-line treatment of advanced squamous non-small cell lung cancer (NSCLC), showing a progression-free survival (PFS) improvement of 4.2 months compared to the PD-1 group [13][16]. - SSGJ-707, a PD-1/VEGF dual antibody, showed promising results in treating microsatellite stable (MSS) colorectal cancer, with an overall response rate (ORR) of 68.7% and a disease control rate (DCR) of 98.5% [18][19]. - HB0025, another PD-L1/VEGF dual antibody, reported an ORR of 83.3% in squamous NSCLC patients, indicating strong anti-tumor efficacy [20][21]. 2. ADCs: Accelerated Breakthroughs - SKB264, an ADC, has shown significant PFS and overall survival (OS) benefits in a Phase III trial for EGFR-mutant NSCLC, with PFS HR of 0.49 and OS HR of 0.60, indicating its potential as a new standard therapy [29][30]. - In the breast cancer domain, SKB264 demonstrated an ORR of 41.5% in CDK4/6i pre-treated HR+/HER2- advanced breast cancer, significantly outperforming chemotherapy [31][32]. - The report highlights the global potential of SKB264, with ongoing studies expected to further validate its efficacy and safety profile [23][29].

Core Viewpoint - Corning Jereh Pharmaceutical-B (09966) announced the interim analysis results of the KN026 combined chemotherapy for HER2+ GC (including GEJ) in a Phase III clinical trial, showing significant clinical benefits compared to the control group [1][2]. Group 1: Clinical Trial Results - The interim analysis demonstrated that KN026 combined chemotherapy achieved clinically meaningful and statistically significant benefits in progression-free survival (PFS) and overall survival (OS) compared to the placebo group [2]. - The median follow-up time for the Anlotinib group was 9.7 months, while the control group had a median follow-up of 9.8 months [2]. Group 2: Patient Characteristics - The baseline characteristics of patients in both groups were generally balanced, with a median age of approximately 64 years in the Anlotinib group and 61 years in the control group [1]. - Over 80% of patients in both groups had an ECOG PS score of 1, and nearly all patients were diagnosed with stage IVB disease at enrollment [1]. Group 3: Mechanism of Action - KN026 aims to be a next-generation HER2-targeted therapy, capable of dual binding to two clinically validated HER2 epitopes (epitopes II and IV) while retaining the wild-type Fc region [2]. - This mechanism allows KN026 to dual-block HER2-related signaling pathways, enhance binding to HER2 receptors, reduce surface HER2 protein, and improve tumor-killing effects through complete antibody-dependent cellular cytotoxicity [2]. Group 4: Ongoing Clinical Trials - Multiple Phase III clinical trials are currently underway in China, including KN026 combined with docetaxel for first-line treatment of HER2+ breast cancer, and KN026 combined chemotherapy for second-line and above treatment of HER2+ GC/GEJ [3].

Core Viewpoint - Corning Jereh Pharmaceutical-B (09966) announced the interim analysis results of the KN026 combined chemotherapy for HER2+GC (including GEJ) in a Phase III clinical trial, indicating significant clinical benefits in progression-free survival (PFS) and overall survival (OS) compared to the control group [1][2]. Group 1: Clinical Trial Results - The interim analysis presented at the 2025 ESMO conference showed that KN026 combined with chemotherapy demonstrated clinically meaningful and statistically significant benefits in PFS and OS compared to the placebo group [2]. - The median follow-up time for the Anlotinib group was 9.7 months, while the control group had a median follow-up of 9.8 months [2]. Group 2: Patient Characteristics - The baseline characteristics of patients in both groups were generally balanced, with a median age of approximately 64 years in the Anlotinib group and 61 years in the control group [1]. - Over 80% of patients in both groups had an ECOG PS score of 1, and nearly all patients were diagnosed with stage IVB disease at enrollment [1]. Group 3: Mechanism of Action - KN026 aims to be a next-generation HER2-targeted therapy, capable of dual binding to two clinically validated HER2 epitopes (epitopes II and IV) while retaining the wild-type Fc region [2]. - This mechanism allows KN026 to dual-block HER2-related signaling pathways, enhance binding to HER2 receptors, reduce surface HER2 protein, and improve tumor-killing effects through complete antibody-dependent cellular cytotoxicity [2]. Group 4: Ongoing Clinical Trials - Multiple Phase III clinical trials are currently underway in China, including KN026 combined with docetaxel for first-line treatment of HER2+BC, KN026 combined chemotherapy for second-line and above treatment of HER2+GC/GEJ, and KN026 combined with docetaxel for neoadjuvant treatment of BC [3].

Core Viewpoint - The interim analysis of the KN026 clinical trial indicates that KN026 combined with chemotherapy shows clinically meaningful and statistically significant benefits in progression-free survival (PFS) and overall survival (OS) compared to placebo combined with chemotherapy, suggesting it as a potential new treatment option for HER2+GC/GEJ patients who have progressed after prior trastuzumab-based therapy [2]. Group 1: Clinical Trial Details - The KN026-001 trial, a Phase III clinical study, involves HER2+GC/GEJ patients who progressed after trastuzumab-based treatment, randomized to receive either KN026 combined with chemotherapy or placebo combined with chemotherapy [1]. - Baseline characteristics of both patient groups were balanced, with a median age of approximately 64 years for the KN026 group and 61 years for the control group, and over 80% of patients in both groups having an ECOG PS score of 1 [1]. Group 2: Mechanism and Future Trials - KN026 is designed to be a next-generation HER2-targeted therapy, capable of binding to two different clinically validated HER2 epitopes while retaining the wild-type Fc region, allowing for dual blockade of HER2-related signaling pathways and enhanced tumor-killing effects [2]. - Multiple Phase III clinical trials are currently underway in China, including studies of KN026 combined with docetaxel for first-line treatment of HER2+ breast cancer and for second-line treatment of HER2+GC/GEJ [2].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 ALPHAMAB ONCOLOGY 1 結論：期中分析顯示，與安慰劑聯合化療相比，KN026聯合化療在PFS和OS方 面均取得具有臨床意義和具有統計學顯著性的獲益，且具有良好可控的安全性特 徵。該等結果表明，對於既往接受過曲妥珠單抗為基礎的治療後出現疾病進展的 HER2+ GC/GEJ患者，KN026聯合化療可作為一種有潛力的新治療選擇。 關於KN026 KN026旨在成為全球性新一代HER2靶向療法。憑藉其創新的結構，可同時結合 至兩種不同的經臨床驗證的HER2表位（表位II及IV），並保留野生型Fc區。這使 得KN026能夠(i)雙重阻斷HER2相關信號通路，(ii)增強與HER2受體的結合，(iii) 減少細胞表面的HER2蛋白，及(iv)通過完整的抗體依賴性細胞介導的細胞毒性增 強對腫瘤的殺傷效果。該等結合機制使KN026表現出卓越的腫瘤抑制作用。 康寧傑瑞生物製藥 （於開曼群島註冊成立的有限公 ...

Core Viewpoint - The biotechnology stocks in Hong Kong are rising against the trend, with Kangning Jereh Pharmaceutical-B (9966.HK) experiencing a significant increase of over 11%, currently priced at HKD 15.26, with a total market capitalization of HKD 14.8 billion [1] Company Summary - Kangning Jereh Pharmaceutical repurchased 400,000 shares for HKD 5.483 million on October 16, indicating confidence in its financial resources to support the buyback plan of up to HKD 20 million [1] - The company announced the clinical approval of JSKN022 for advanced solid tumors, which is a positive development for its product pipeline [1] - Kangning Jereh's research KN026 is among 23 studies from China selected for presentation at the European Society for Medical Oncology (ESMO) conference scheduled from October 17 to 21 in Berlin, highlighting its research significance [1]

Core Viewpoint - 康宁杰瑞制药-B (09966) shares increased by over 7%, currently trading at 14.63 HKD with a transaction volume of 37.113 million HKD, following the announcement of a share buyback program [1] Group 1: Share Buyback Announcement - 康宁杰瑞制药 announced a share buyback of 400,000 shares for a total cost of 5.483 million HKD [1] - The company has a maximum buyback limit of 20 million HKD, authorized by the board based on a general mandate approved by shareholders at the annual general meeting on June 12, 2025 [1] Group 2: Upcoming Events - The European Society for Medical Oncology (ESMO) will take place from October 17 to 21 in Berlin, Germany, where the latest research abstracts will be presented [1] - A total of 23 studies from China, including key research on 康宁杰瑞's KN026, have been selected for presentation at the ESMO [1]