Summary of Key Points from the Conference Call Industry Overview - The focus is on the non-pharmaceutical sector within the healthcare industry for the investment strategy in 2026, emphasizing overseas expansion and innovation as key growth drivers [2][12]. Key Companies and Sectors Insulin Sector - Core companies include Ganli Pharmaceutical, Federal Pharmaceutical, and Tonghua Dongbao, with Ganli's insulin products expected to receive European regulatory approval in 2026 [1][4]. - Ganli is expanding into European, American, and Asian markets, while Tonghua Dongbao is advancing its U.S. market strategy through Jiangyang [1][4]. Biopharmaceuticals - Blood products companies like Jinbao and Renbai are anticipated to see performance inflection points in the second half of 2026, with a focus on plasma station planning and state-owned enterprise reform opportunities [5]. - Vaccine companies such as Olin Bio, Kanghua Bio, and CanSino are highlighted, with Olin focusing on superbug vaccines and Kanghua developing RSV vaccines [5]. Traditional Chinese Medicine (TCM) - Investment opportunities in TCM include transformation and innovation (companies like Jiuzhitang, Yiling Pharmaceutical), essential drug catalog considerations, and OTC (over-the-counter) products [6][8]. - Key strategies involve dividend safety margins, valuation speculation post-policy implementation, and monitoring performance impacts from policy changes [8]. Medical Devices - The medical device sector is seeing significant overseas revenue contributions, with companies like Blueway, Mindray, and Kaili reporting 45%-60% of their income from international markets [9]. - Innovations in surgical robotics and brain-computer interfaces are critical areas of focus, with the latter having established a commercial closed loop [9]. Market Dynamics and Trends - The non-pharmaceutical sector is expected to benefit from changes in consumer behavior, particularly in internet healthcare, which has shown substantial growth potential compared to traditional retail [10][11]. - The shift in consumption patterns is creating new incremental opportunities across various segments, including pharmacies, medical services, and consumer healthcare [11]. Investment Strategy - The overarching strategy for 2026 emphasizes overseas expansion and innovation across insulin, medical devices, and TCM to achieve dual enhancements in valuation and performance [2][12]. - Investors are advised to closely monitor policy developments and market changes to identify quality investment opportunities in these sub-sectors [7][12].

Core Viewpoint - The A-share vaccine sector is expected to underperform, with a projected increase of 9% by December 28, 2025, lagging behind the broader market by 10 percentage points, indicating a weak overall performance in the sector [1] Group 1: Industry Overview - The 2026 investment strategy for the vaccine sector focuses on three main lines: pipeline realization, technological breakthroughs, and valuation recovery, while avoiding highly competitive products like bivalent HPV and traditional rabies vaccines [1] - Key areas of focus include vaccines with high technological barriers, multi-valent options, potential for business development collaborations, and favorable competitive landscapes, such as RSV vaccines [1] Group 2: Company Highlights - **CanSino Biologics**: The DTcP-Hib-MCV4 combination vaccine and inhaled tuberculosis vaccine (5-type adenovirus vector) are in Phase I clinical trials. The quadrivalent meningococcal conjugate vaccine was exported to Indonesia in September, marking a significant achievement post-COVID vaccine exports. The PCV13i vaccine has gained access in over half of China's provinces and started vaccinations in October. Several vaccines are advancing towards commercialization, with multiple NDA applications submitted [2] - **Aimee Vaccine**: The PCV13, PPSV23, and rabies vaccines are in the final stages of market entry. Aimee has 20 vaccines in development, with 15 products having received 23 clinical approvals. The PCV13 has submitted for market registration, and the iterative rabies vaccine is also in the registration process. The PPSV23 has completed Phase III clinical serum testing and is moving towards statistical unblinding [3] - **Clover Biopharmaceuticals**: The respiratory combined vaccine (RSV-hMPV-PIV3) has gained global attention, with positive Phase I clinical trial results in older adults. This vaccine is expected to advance to Phase II trials in the first half of 2026, addressing unmet clinical needs related to RSV and enhancing immune protection through repeat vaccinations [4] Group 3: Investment Recommendations - Suggested stocks in the Hong Kong vaccine sector include CanSino, Clover Biopharmaceuticals-B, and Aimee Vaccine, indicating potential investment opportunities in these companies [4]

Core Viewpoint - The current focus is on prevention of respiratory infections, particularly influenza and respiratory syncytial virus (RSV), which poses significant health risks during the winter season [1][3]. Summary by Sections Current Situation - During the 49th week of 2025, the percentage of flu-like cases reported in emergency departments across the country was 9.9% [1]. - The top three pathogens detected in respiratory samples from emergency departments were influenza virus (54.2%), rhinovirus (5.2%), and RSV (4.0%) [1]. - For hospitalized severe acute respiratory infection cases, the positive detection rates were influenza virus (22.1%), RSV (7.5%), and rhinovirus (7.1%) [1]. Regional Differences - In southern provinces, the leading pathogens for emergency department flu-like cases were influenza virus, rhinovirus, and RSV, while in northern provinces, they were influenza virus, RSV, and rhinovirus [2]. - RSV has consistently ranked among the top three pathogens in hospitalized severe acute respiratory infection cases for 27 weeks since week 23 of 2025 [2]. RSV Characteristics and Public Health Consensus - RSV has a basic reproduction number (R0) of approximately 4.5, indicating a higher transmission potential compared to influenza and other viruses [4]. - The newly published consensus on RSV management emphasizes the need for an integrated prevention, diagnosis, and management system, shifting from a disease-centered to a health-centered approach [3]. Vulnerable Populations - RSV significantly impacts infants and the elderly, with a particular focus on those with chronic conditions [5]. - The consensus recommends preventive measures for infants under one year old, including the administration of long-acting monoclonal antibodies to prevent RSV-related lower respiratory infections [6]. Vaccine Development and Accessibility - While there are approved RSV vaccines for the elderly in other countries, none have been approved in China yet [6]. - The consensus calls for optimizing access to RSV prevention for newborns and infants through collaborative medical and preventive strategies [6]. Special Considerations for Elderly Care - Special attention is needed for elderly individuals over 65 years old, particularly those with chronic heart and lung diseases, and those living in care facilities [7].

Core Viewpoint - The UK Health Security Agency (UKHSA) warns of a significant increase in influenza and RSV cases as Christmas approaches, urging eligible individuals to get vaccinated promptly [1][2]. Group 1: Influenza and RSV Trends - Influenza activity in the UK has risen to a moderate transmission level, with the positivity rate increasing from 11.6% to 17.1% during the monitoring period from November 24 to 30 [1]. - Hospitalization rates for influenza have surged by 63%, rising from 4.78 per 100,000 to 7.79 per 100,000 [1]. - RSV cases are also on the rise, with the positivity rate increasing from 8.7% to 10%, and weekly hospitalization rates climbing from 2.38 per 100,000 to 3.75 per 100,000 [1]. Group 2: Vaccination Rates and Recommendations - As of the end of November, vaccination rates for influenza among high-risk groups are concerning: 70.9% for those aged 65 and older, 36.4% for chronic disease patients under 65, 34.9% for pregnant women, and approximately 41% for children aged 2 to 3 [2]. - UKHSA emphasizes the importance of vaccination, noting that it takes about two weeks to develop sufficient immunity, making the upcoming weeks critical for eligible populations [2]. - Specific vaccination recommendations include RSV vaccines for newborns and the elderly, with pregnant women advised to get vaccinated after 28 weeks of pregnancy [2]. Group 3: General Health Recommendations - The UKHSA advises maintaining good hygiene practices, reducing outings when experiencing symptoms like fever or cough, wearing masks when necessary, and ensuring proper ventilation indoors to prevent cross-infection [2][3]. - While COVID-19 activity remains stable, there has been a slight increase in hospitalization rates, and the public is reminded to isolate for 48 hours after symptoms of norovirus disappear [2].

Investment Rating - The industry investment rating is maintained at "Overweight" [1] Core Views - Vaccine companies are achieving breakthroughs in internationalization and research and development, while the pressure for winter epidemic prevention continues to highlight the need for effective measures [4][9] - The vaccine industry is transitioning from scale expansion to innovation-driven growth, with supply-demand imbalances and homogenized competition causing short-term challenges, but the long-term outlook remains positive due to supportive policies, increasing demand, and technological advancements [9][28] Summary by Sections Recent Developments - Zhifei Biological's subsidiary obtained a U.S. patent for an RSV vaccine, marking a significant step in its international market strategy [3] - Watson Bio's subsidiary received a marketing license for a 13-valent pneumonia vaccine in Egypt, enhancing its international presence [3] - Wuhan Institute of Biological Products achieved important progress in children's vaccine development, with two vaccines approved for clinical use [3] Market Performance - The vaccine sector saw a 1.33% increase last week, underperforming compared to other pharmaceutical sectors [5][6] - Year-to-date, the vaccine sector has experienced a cumulative decline of 5.12% [6] Valuation Metrics - The vaccine sector's PE (ttm) is 95.41X, with a PB (lf) of 1.87X, indicating a slight increase in valuation metrics compared to previous periods [7] Investment Recommendations - The vaccine industry is under pressure, with a focus on innovation and international expansion as key strategies for recovery [8] - Companies with high technical barriers and differentiated pipelines are recommended for investment, particularly those with strong research and development capabilities [9][28]

Core Viewpoint - The global vaccine industry is undergoing a significant adjustment, with major players experiencing a collective decline in vaccine business due to various macro factors, including a growing public skepticism towards vaccines in the U.S. [2][3][7] Group 1: Financial Performance of Major Vaccine Companies - The latest Q3 financial reports from major vaccine companies, including Sanofi, Merck, Pfizer, and GSK, indicate a downturn in vaccine sales, with a projected 19% decline in total sales for the top ten vaccines in 2024 compared to 2023, amounting to $38.4 billion [4][6]. - Sanofi reported a 17% decline in sales of COVID-19 and flu vaccines, with traditional vaccine revenue dropping 8% to €3.36 billion, primarily due to a slowdown in flu vaccine sales [4]. - Merck's sales of its HPV vaccine Gardasil/GARDASIL 9 fell by 24% to $1.75 billion in Q3, with a staggering 40% drop in revenue for the first three quarters of the year [5]. - Pfizer's COVID-19 vaccine Comirnaty saw a 20% global sales decline, with a 25% drop in the U.S. market, alongside disappointing performances from its pneumonia and RSV vaccines [5][6]. Group 2: Macro Factors Impacting Vaccine Trust - The decline in vaccine trust in the U.S. is attributed to the actions of Robert F. Kennedy Jr., the new Secretary of Health and Human Services, who has promoted anti-vaccine sentiments and policies that undermine public confidence in vaccines [7][8]. - A recent survey indicated that 30% of Americans are skeptical about vaccines, with a significant drop in the belief that childhood vaccines are essential, from 58% in 2019 to 40% in 2024 [8]. - The CDC reported over 1,600 confirmed measles cases in 2025, a stark increase from 285 cases the previous year, highlighting the consequences of declining vaccination rates [9]. Group 3: Historical Context and Future Implications - The current situation in the U.S. vaccine market mirrors Japan's past vaccine industry decline, which was triggered by public trust issues and government policy changes that led to a significant drop in vaccination rates [10][11]. - The ongoing crisis in vaccine trust poses a risk not only to the industry but also to public health, as evidenced by the resurgence of preventable diseases like measles [9][10].

Core Insights - The company announced positive preliminary data from two ongoing clinical trials for its proprietary Trimer-Tag vaccine platform, focusing on the RSV+hMPV±PIV3 candidates [1] Group 1: Clinical Trials Overview - In Australia, a Phase I trial compared SCB-1022 (RSV+hMPV) and SCB-1033 (RSV+hMPV+PIV3) against SCB-1019 (RSV) in elderly participants who had not previously received any RSV vaccine [1][2] - The trial showed that both SCB-1022 and SCB-1033 induced neutralizing antibody responses for RSV-A and RSV-B with a mean fold increase of approximately 6-8 times, comparable to the control group [2] - The hMPV neutralizing antibody responses were also significant, with mean fold increases of about 6-7 times for hMPV-A and 8-9 times for hMPV-B [2] Group 2: Safety and Tolerability - Both SCB-1022 and SCB-1033 demonstrated good overall tolerability, with adverse events being mild and comparable to the control group [4] - No serious adverse events related to the vaccines were reported, indicating a favorable safety profile [4] Group 3: U.S. Clinical Trial Insights - A Phase I trial in the U.S. is assessing the immunogenicity of SCB-1019 in elderly participants who previously received the GSK RSV vaccine (AREXVY) [5] - Preliminary results indicated that SCB-1019 induced RSV-A and RSV-B neutralizing antibody responses with a mean fold increase of approximately 3.0-3.3 times, significantly higher than the 1.8-1.9 times observed with AREXVY [6][7] - The proportion of participants showing at least a 2-fold increase in neutralizing antibodies was about 69-75% for SCB-1019, compared to 33-40% for AREXVY [6][7] Group 4: Future Plans - Based on the positive Phase I results, the company plans to advance SCB-1022 and SCB-1033 to Phase II clinical trials in the first half of 2026 [4][8]

Core Viewpoint - Clover Biopharmaceuticals-B (02197) announced positive preliminary data from two ongoing clinical trials based on its proprietary and fully validated Trimer-Tag vaccine development platform, evaluating the company's PreF respiratory combination vaccine candidates (RSV+hMPV±PIV3) [1] Group 1: Clinical Trials - An ongoing Phase I clinical trial in Australia is assessing the combination vaccine candidates SCB-1022 (RSV+hMPV) and SCB-1033 (RSV+hMPV+PIV3) against SCB-1019 (Clover's RSV candidate vaccine) in a head-to-head comparison, targeting elderly individuals who have not previously received any RSV vaccine [1] - A Phase I clinical trial in the United States is conducting a head-to-head evaluation of SCB-1019 (Clover's RSV candidate vaccine) against AREXVY (GSK's RSV vaccine) in elderly individuals who have received at least two seasonal doses of AREXVY prior to enrollment [1]

本公告由三葉草生物製藥有限公司（「本公司」或「三葉草生物」，連同其附屬公司統稱「本集團」）董事 （「董事」）會（「董事會」）自願作出，以知會本公司股東及潛在投資者本集團最新的業務發展狀況。 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的內容概不負責，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份內容所產生或因依賴該等內容而引致的任何損 失承擔任何責任。 自願公告 三葉草生物公佈其呼吸道聯合疫苗(RSV-hMPV-PIV3) 及 RSV 疫苗重複接種在老年人群的 I 期臨床試驗均獲得積極數據 本公司欣然宣佈兩項正在進行的臨床試驗的積極初步數據，基於公司自研獨有已获全面驗證的 Trimer-Tag （ 白質三聚體化）疫苗研發平台 ，於於估公公司的 PreF 呼吸道聯合疫苗候選產品（RSV+hMPV±PIV3），包括： 呼吸道聯合疫苗候選產品 RSV+hMPV±PIV3 I 期臨床試驗(澳大利亞)：完整初步數據 在澳大利亞進行的一項 I 期臨床試驗中，老年人群受試者（60-85 歲）入組後被隨機分配接種 SCB-1022 （RSV+hMPV）、SCB-1033 （RSV+ ...

Group 1: Company Overview - Zhonghui Biotech officially listed on the Hong Kong Stock Exchange at an issue price of HKD 12.9 per share, closing at HKD 33.28, a 157.98% increase, with a market capitalization exceeding HKD 13 billion [2] - The company plans to use the funds raised from the IPO for domestic and international registration of core products, clinical advancement of vaccines in development, upgrading production capabilities, and technology platform iteration [2][4] Group 2: Financial Performance - Zhonghui Biotech reported revenues of CNY 52.168 million in 2023 and CNY 260 million in 2024, with a net loss narrowing from CNY 4.25 billion in 2023 to CNY 2.59 billion in 2024 [4][5] - The company's first commercialized product, a quadrivalent influenza vaccine, contributed significantly to revenue, generating CNY 52.2 million in 2023 and CNY 260 million in 2024 [5] Group 3: Market Environment - The domestic influenza vaccine market is highly competitive, with 26 types of vaccines already on the market and 19 in clinical development [5][6] - The average bidding price for influenza vaccines in China has decreased from CNY 126 per dose in 2022 to CNY 93 in 2024, indicating a price war that could stimulate market demand [6][7] Group 4: Industry Trends - The Chinese vaccine market is projected to grow from CNY 535 billion in 2019 to CNY 1,205 billion in 2023, with expectations to reach CNY 3,431 billion by 2032 [8] - The industry faces challenges such as product homogeneity and insufficient vaccination willingness, leading to significant performance declines for many vaccine companies in 2024 [8][9] Group 5: Strategic Initiatives - Zhonghui Biotech is focusing on expanding its pipeline, which includes rabies vaccines, pneumococcal vaccines, shingles vaccines, RSV vaccines, and monkeypox vaccines [9][10] - The company is also pursuing international expansion, with plans to submit product registration applications in various countries, including Indonesia, Thailand, and Canada [11]