On August 26, FOSUN PHARMA (600196.SH, 02196) officially released its 2025 interim financial results. The data shows that during the reporting period, the Group achieved operating revenue of 19.514 billion yuan and net profit attributable to parent company of 1.702 billion yuan. Particularly noteworthy is the outstanding performance of the innovative drug segment, which generated revenue of over 4.3 billion yuan, representing a year-on-year growth of 14.26%, demonstrating a steady and positive development momentum. FOSUN PHARMA has shown resilience in high-quality development through continuous advancement of innovation transformation, optimization of asset structure, and deepening of global operations.

**Building High-Value Innovation Pipeline Matrix with Significant Innovation Transformation Results**

In the first half of 2025, FOSUN PHARMA invested a total of 2.584 billion yuan in R&D, including R&D expenses of 1.717 billion yuan. The pharmaceutical segment's R&D investment reached 2.295 billion yuan, accounting for 16.51% of pharmaceutical business revenue, fully reflecting the company's high emphasis on innovative R&D and result transformation.

Recently, FOSUN PHARMA announced a new round of A+H share equity incentive plan, setting performance assessment targets based on 2024 as the baseline, requiring both net profit attributable to parent company and innovative drug revenue compound annual growth rate (CAGR) to be no less than 19% from 2025 to 2027. This not only demonstrates the company's confidence in long-term growth but also highlights its strategic determination for firm innovation transformation.

Indeed, achieving a 19% compound growth rate is no easy task, especially in the context of the innovative drug industry's long R&D cycles and high uncertainty. This target setting relies on solid support from pipeline reserves and R&D capabilities. Through diversified models including independent R&D, cooperative development, licensing introduction, fund incubation, and industrial investment, FOSUN PHARMA has built four core technology platforms covering antibodies, ADC, cell therapy, and small molecules, creating a comprehensive innovation system spanning from early discovery to clinical development.

The three main R&D entities have clear divisions of labor: Henlius focuses on antibodies and ADC, the Global R&D Center concentrates on small molecule innovation, and Fosun Kite specializes in cell therapy. This "platform-based + specialized" system provides strong support for continuous innovation output.

Focusing on core therapeutic areas including solid tumors, hematologic malignancies, and immune inflammation, FOSUN PHARMA has gradually built a high-value pipeline portfolio and actively expanded into chronic diseases (cardiovascular, renal, and metabolic) and neurological fields.

In solid tumors, the product matrix represented by serplulimab (anti-PD-1 monoclonal antibody) and trastuzumab is becoming increasingly mature. The approval of fruquintinib capsules (Futoning®) and almonertinib tablets (Fumainin®) has further consolidated the company's leadership position in breast cancer and rare tumor treatment. Additionally, the advancement of international multicenter clinical trials for HLX22 and HLX43, along with the introduction of HLX701 (SIRPα-Fc fusion protein) and FXB0871 (PD-1 targeted IL-2 fusion protein), further enriches the innovative drug pipeline, demonstrating the company's forward-looking layout in next-generation tumor immunotherapy.

In hematologic malignancies, the commercialization process of CAR-T product Yikaida® (axicabtagene ciloleucel injection) is accelerating. As of the first half of 2025, the product has been included in over 110 inclusive insurance plans and 90 commercial insurance policies, serving more than 200 treatment centers, significantly improving accessibility.

In immune inflammation, XH-S004 (DPP-1 inhibitor) achieved overseas licensing authorization excluding mainland China and Hong Kong and Macau regions, with its clinical value recognized by international markets.

In chronic diseases and neurological fields, new products including Yixintan®, Pangbifu®, and Beiwen® have been successively launched, covering cardiovascular, renal, and metabolic diseases. Meanwhile, through introducing Alzheimer's disease treatment drug AR1001, FOSUN PHARMA is actively deploying integrated diagnostic and therapeutic solutions for neurodegenerative diseases, opening new growth opportunities.

In the first half of 2025, FOSUN PHARMA obtained approvals for 4 innovative drugs, 5 indications, and 57 generic drug varieties, while submitting applications for 4 innovative drugs and 22 generic drugs for market approval. Nearly 20 innovative drug clinical trials were approved to commence, significantly improving R&D efficiency and output capability.

**Continuously Strengthening Global Operations and Actively Expanding Bidirectional Licensing of Innovative Drugs**

In terms of internationalization, FOSUN PHARMA achieved overseas revenue of 5.478 billion yuan in the first half of 2025, accounting for nearly 30% of total revenue. The company has not only deepened its presence in mature markets such as the United States, Europe, and Africa, but also actively expanded into emerging markets including ASEAN and the Middle East.

Particularly noteworthy is that FOSUN PHARMA has established a US-based innovative drug team to conduct pre-commercialization preparations for serplulimab injection and preliminary deployment for innovative product licensing introduction. The company has also built its own clinical operations team, successfully advancing the US bridging trial of serplulimab injection combined with chemotherapy for first-line treatment of extensive-stage small cell lung cancer (ES-SCLC), with over 100 trial centers established.

Furthermore, FOSUN PHARMA has established 6 regional distribution centers in emerging markets including Africa and Southeast Asia, providing customers with one-stop services including drug registration, distribution, academic promotion, and post-marketing safety surveillance.

The medical device segment also performed excellently, with "Da Vinci Surgical Robot" having over 450 cumulative installations in China and Hong Kong and Macau regions, serving over 760,000 patients. The Da Vinci Xi Surgical Robot System achieved the highest bid win rate in the industry and maintains the number one market share. The successful commercialization of the Ion Bronchoscopic Navigation System further consolidated the company's leadership position in high-end medical equipment.

As the quality of the company's innovation pipeline improves, innovative drug BD has continuously achieved breakthroughs during the reporting period, with strengthened bidirectional licensing cooperation globally, and R&D and commercialization capabilities gaining international recognition.

In August 2025, subsidiary Fosun Pharma Industrial granted Expedition the rights to develop, manufacture, and commercialize the investigational small molecule oral drug XH-S004 (DPP-1 inhibitor) globally excluding mainland China and Hong Kong and Macau regions, promoting accelerated global clinical development and commercialization of the investigational drug. Meanwhile, FOSUN PHARMA and subsidiary Henlius reached multiple outbound licensing agreements, accelerating product entry into European, American, and Asia-Pacific markets.

From the growth signals released by equity incentives, to the solid support of innovation pipeline and R&D systems, to the market opportunities opened by international cooperation, FOSUN PHARMA is consolidating its long-term growth foundation through the dual-engine model of "innovation-driven + global deployment." Against the backdrop of gradually rising industry valuation levels, the current low PE levels of its A+H shares may have entered the value allocation range. Market recognition of its innovation capabilities and performance delivery ability is expected to drive valuation restoration to reasonable levels.