Since 2025, driven by multiple positive factors, the pharmaceutical and biotechnology sector has welcomed structural market opportunities and a business cycle turning point. The government work announced at the beginning of the year once again clearly supports the development of "innovative drugs," with Category C medical insurance coverage extending to innovative drug payments. Combined with impressive mid-year performance from multiple innovative pharmaceutical companies, these factors have collectively boosted sector enthusiasm.

As industry prosperity continues to climb, BIOCYTOGEN-B (02315) stock performance has been particularly outstanding. The company's share price soared from a low of HK$5.6 in November last year to HK$28.58 in August this year, with maximum gains exceeding 400%, significantly outperforming the Hong Kong stock market during the same period.

Distinguished from traditional biopharmaceutical enterprises, BIOCYTOGEN-B's high growth momentum stems from its unique dual-engine business model of "innovative animal models + antibody molecule licensing." The company focuses on key stages of early drug research and evaluation, and has established differentiated competitive barriers based on solid technical accumulation.

Recently disclosed mid-year results show the company achieved 51.5% year-over-year sales revenue growth, with net profit turning from loss to profit compared to the same period last year and exceeding the full-year level of the previous year. Meanwhile, the company's net cash flow turned fully positive, reaching over 33.3 million yuan. The comprehensive improvement in core financial indicators demonstrates that its business model has been validated by performance, with significantly enhanced self-sustaining capabilities, formally entering a virtuous growth phase.

**Two Core Businesses Drive Performance Growth, Self-Sustaining Capabilities Highlighted**

Built on globally leading gene editing technology, BIOCYTOGEN-B has successfully constructed a dual-engine growth model centered on innovative animal models and antibody molecule licensing development, pioneering a platform-based innovative biotech path distinct from traditional CROs and pharmaceutical companies.

In the first half of the year, the company achieved rapid growth in performance with comprehensively positive financial data and quickly turning positive operating cash flow, strongly validating the feasibility and sustainability of its business model.

For the first half of 2025, the company recorded sales revenue of 621 million yuan, up 51.5% year-over-year; gross margin continued to maintain a high level of 74.4%; net profit reached 48 million yuan, exceeding the full year previous year, with outstanding sustained profitability and growth performance.

The company's two core businesses advanced in coordination, both recording impressive growth rates. Innovative animal models, as the traditional advantageous business, generated revenue of 274 million yuan in the first half, up 56% year-over-year, with gross margin reaching 79%, continuing to play the role of a stable "cash cow." This business core focuses on humanized mice with high technical barriers as the main product, having extremely important application value in new drug efficacy and safety evaluation. Through forward-looking layout and rapid R&D capabilities, it continues to maintain industry-leading position.

The company's antibody molecule licensing development business has rapidly established cooperation with seven of the world's top ten pharmaceutical companies, gaining recognition from numerous global pharmaceutical and biotechnology enterprises. As of June 30, 2025, approximately 280 fully human antibody molecule licensing or cooperative development agreements have been signed cumulatively. In the first half of 2025 alone, new contract numbers increased 60% year-over-year to approximately 80 projects, achieving revenue of 163 million yuan, up 38% year-over-year, with gross margin reaching approximately 90%. This business has grown into one of the company's most potential core business lines.

Meanwhile, BIOCYTOGEN-B continues to accelerate international expansion, enhancing profitability and risk resilience through overseas market development. In the first half, both domestic and overseas businesses maintained rapid growth, with overseas business achieving revenue of 422 million yuan and domestic business revenue of approximately 200 million yuan.

To date, BIOCYTOGEN-B has established branches in Boston, San Francisco, San Diego in the United States, and Heidelberg, Germany, not only enabling more efficient response to international client needs but also further enhancing its global influence.

Notably, from a financial perspective, BIOCYTOGEN-B has successfully achieved stable profitability with continuously strengthening financial self-sustaining capabilities. In the first half, the company's operating activities generated net cash inflow exceeding 200 million yuan, with net cash flow turning fully positive at over 33.3 million yuan. The healthy and sound financial condition not only reflects the sustainability of the business model but also provides solid guarantee for continued rapid development in the future.

**Precisely Positioned in Innovative Drug R&D Golden Track, Technology and Patents Build Multiple Moats**

In the preclinical R&D process of antibody drugs, obtaining suitable candidate antibody molecules and conducting animal model efficacy experiments are two critically important steps. Through its RenMice series fully human antibody mouse platform and "Thousand Mice, Ten Thousand Antibodies" program, BIOCYTOGEN-B can provide a candidate antibody molecule sequence library of over one million covering more than a thousand potential drug targets in the human body, thus precisely entering key segments of the new drug R&D value chain, helping innovative pharmaceutical companies rapidly screen target molecules in early R&D stages, significantly shortening drug discovery cycles, improving R&D efficiency, effectively controlling R&D costs, and enhancing development certainty.

After years of technical accumulation, BIOCYTOGEN-B has built a leading-scale fully human antibody molecule library and formed three core advantages: broad target coverage, diverse antibody formats, and fully validated druggability, creating deep technical moats.

Specifically, the company develops antibodies against over 1,000 potential drug targets, broadly covering major disease areas including oncology, autoimmune, metabolic, and neurological diseases; completes full layout of monoclonal antibodies, bispecific antibodies, nanobodies, TCR-like antibodies, etc., flexibly adapting to different drug development needs; its molecular design balances key indicators such as affinity and immunogenicity, with preclinical translation efficiency at industry-leading levels.

During the reporting period, the company continued to maintain high-level R&D investment to consolidate long-term competitiveness. First-half R&D investment was nearly 209 million yuan, an increase of 47.4 million yuan compared to the same period last year, with R&D expense ratio exceeding 30%, mainly focusing on the most core innovative animal models and antibody molecule development. Future resource allocation will be flexibly configured according to development needs, continuously strengthening technical barriers and accelerating R&D result transformation.

Meanwhile, BIOCYTOGEN-B highly values intellectual property protection and has established a comprehensive global patent network around core technologies and platforms. The company continues to advance patent layout and key technology protection for the RenMice® platform globally. Since this year, key technologies of its independently developed fully human antibody mouse RenMab® platform have received invention patents from the Japan Patent Office (JPO), marking steady progress in the company's global patent strategy.

As of June 30, 2025, the company owns 301 registered trademarks, 195 authorized patents, and 4 software copyrights, and has submitted 496 patent applications in 27 countries or regions; the company has also been granted 16 patents for core products and submitted 21 patent applications, fully demonstrating the innovative strength and international recognition of its core technologies.

**Summary**

BIOCYTOGEN-B delivered a remarkable report card in the first half of this year. Its rapid revenue growth, significantly improved profitability, and historic positive overall cash flow collectively validate the company's excellent operational quality and business model sustainability, also indicating that the company has successfully escaped the "cash-burning R&D" predicament commonly faced by biotechnology enterprises in early stages, entering a new development phase with self-sustaining capabilities.

With the RenMice series fully human antibody mouse platform, "Thousand Mice, Ten Thousand Antibodies" program, and globalized patent network, the company has gradually built dual moats at technology and patent levels, forming competitive barriers that are difficult to replicate. As BIOCYTOGEN-B accelerates in establishing its industry position as the "global source of new drugs," its long-term growth value and investment attractiveness continue to rise.