On March 19, the first clinically approved Boron Neutron Capture Therapy (BNCT) procedure was successfully performed at Pengbo (Hainan) Boron Neutron Hospital, located within the Hainan Boao Lecheng International Medical Tourism Pilot Zone. Following the treatment of the first patient, who had recurrent advanced tongue cancer, a second patient with gingival cancer successfully received the same treatment the next day. The entire therapy required only a single irradiation session lasting approximately 30 minutes. Both patients have since resumed normal diets, are in good physical condition, and have not experienced any serious adverse reactions. The process from admission to completion of treatment took less than two days. The therapy is non-invasive, requires no anesthesia, is entirely painless, and offers a comfortable patient experience. The two patients were discharged smoothly on March 22 and March 23, respectively. The successful treatment of these patients marks the official transition of this technology, often hailed as the "jewel in the crown of radiotherapy," from clinical trials to routine clinical practice in China.

BNCT is a form of targeted radiotherapy that operates at the cellular level. It involves injecting the patient with a boron-containing drug that selectively accumulates in tumor cells. Subsequently, a neutron beam is applied, triggering a nuclear reaction between the boron atoms and neutrons. This results in a precise "cellular-level explosion" within the cancer cells while causing almost no damage to surrounding healthy tissue. The entire procedure is painless. Patients typically require only one treatment session and can be discharged after a hospital stay of about five to six days. This technology is already covered by health insurance in some overseas countries and is suitable for locally advanced or recurrent head and neck cancers that are difficult to treat with conventional methods.

Pengbo Hospital is currently the only medical institution in mainland China authorized to conduct BNCT clinical treatment. As its major shareholder, CH BIOTECH SER (08037) is one of the rare global companies strategically positioned in two leading therapeutic fields: BNCT and CAR-T cell therapy. This creates an integrated diagnostic and therapeutic platform covering solid tumors to hematologic malignancies, and localized to systemic treatments. BNCT excels at precisely eliminating solid tumors, while CAR-T plays an indispensable role in treating blood cancers and some solid tumors, making the two technologies complementary and synergistic.

Pengbo Hospital's exclusive position is built on dual barriers of "policy and technology." The company holds the exclusive commercial rights for BNCT technology in Greater China. Leveraging the "pioneer and pilot" policies of the Boao Lecheng zone, the project took six years from initial discussions to the start of construction before finally becoming operational. Just two days before the first treatment, the company's overseas partner submitted a marketing authorization application to regulators for the use of the BNCT drug in treating recurrent meningioma. Clinical trial data indicated a progression-free survival of 14.4 months in the treatment group, a more than tenfold increase compared to 1.4 months in the control group, with a two-year survival rate of 90.9%. Benefiting from Lecheng's policies, Pengbo Hospital is expected to introduce this treatment promptly upon its overseas approval.

Currently, the first phase of Pengbo Hospital has approximately 40 patient beds, with a maximum annual treatment capacity of 1,500 to 2,500 patients. Its core indications are unresectable, locally advanced, or recurrent head and neck cancers. Multiple commercial insurance companies are in advanced discussions with the hospital to explore including BNCT in their coverage plans. Considering international pricing and Lecheng's strategic positioning, the maximum revenue contribution next year could potentially reach 500 million yuan. As more indications, such as meningioma, angiosarcoma, and pancreatic cancer, are gradually added, the annual revenue potential could rise to between 700 million and 1.2 billion yuan.

The listed company secured a 30 million yuan investment from Huada Songhe in 4 and a $35 million convertible bond from Mr. Gong Hongjia in 5. As an early investor in Hikvision and a seasoned investor in the life sciences sector, Mr. Gong's continued investment sends a strong positive signal. As of March 22, the company's market capitalization was approximately HK$742 million. Given its unique market position and the multi-billion-yuan potential market, there appears to be significant room for valuation re-rating.