On February 7, Pengbo (Hainan) Boron Neutron Hospital, a wholly-owned subsidiary of CH BIOTECH SER (08037), officially commenced trial operations in the Boao Lecheng International Medical Tourism Pilot Zone in Hainan. This development signifies that China has become the second country globally to host a formally approved clinical treatment institution utilizing Boron Neutron Capture Therapy (BNCT), marking a historic breakthrough in the field of high-end precision radiotherapy for tumors. Liu Xiaolin, Chairman of the listed company's Board of Directors and Chairman of Pengbo Hospital, stated that the trial operation represents a crucial milestone in technological translation. The hospital plans to build an integrated "diagnosis and treatment" service network to promote the nationwide application of BNCT technology. During the launch ceremony, the hospital established strategic partnerships with several institutions. These include a cooperation agreement with the Shanghai Key Laboratory of Molecular Imaging to enhance imaging technology support, a collaboration with BGI Cells to explore combined treatments using cell technology and BNCT, partnerships with AXA and Qianhai Reinsurance to develop inclusive BNCT medical insurance products, and the formation of a joint diagnosis and treatment collaboration network with Ruijin Hainan Hospital, Shulan (Boao) Hospital, and West China Lecheng Hospital. Fu Sheng, Director of the Boao Lecheng International Medical Tourism Pilot Zone Administration, emphasized that the launch of Pengbo Hospital is a significant practice for the zone in promoting the implementation of advanced medical technologies and serving domestic patients, with the hope that it will develop into a globally influential BNCT treatment center. As the only medical institution currently approved to conduct BNCT clinical treatments in China, Pengbo Hospital, driven by both policy support and market demand, is expected to become a core growth driver for the company by 2026.

The successful launch of Pengbo Hospital benefits from the "pioneering and trial" policy advantages of the Lecheng zone, taking only three years and five months from its initiation in 2022 to trial operation. At the national policy level, BNCT has been designated as a key-supported cutting-edge medical equipment technology and is gradually being incorporated into medical insurance projects. Estimates suggest that if BNCT centers were established in major cities across the country, the potential demand could be no less than 700 units, indicating a vast market space. BNCT is acclaimed as a "precision killer of cancer cells," offering advantages such as precise targeting, single-session irradiation, minimal side effects, and suitability for repeat treatments. According to international clinical data from the imported equipment introduced by Pengbo, the therapy has shown excellent efficacy in treating end-stage or recurrent head and neck cancer cases, with a one-year patient survival rate exceeding 80%. Currently, the core indications approved for Pengbo Hospital include unresectable locally advanced or recurrent head and neck cancers, covering more than ten subtypes such as nasopharyngeal carcinoma, sinus cancer, laryngeal cancer, oral cancer, tongue cancer, gingival cancer, parotid gland cancer, and secondary malignant tumors of the neck. Notably, clinical research for BNCT has expanded to include various solid tumors such as breast cancer, glioma, angiosarcoma, meningioma, glioblastoma, melanoma, osteosarcoma, esophageal cancer, lung cancer, and pancreatic cancer, demonstrating the technology's broad application prospects. As more indications gain approval, this is expected to continuously provide new performance growth points for CH BIOTECH SER.

As China's first approved BNCT treatment institution, Pengbo Hospital has already secured collaborations with multiple players in the industry chain, reflecting market recognition of the technology. CH BIOTECH SER has consistently invested in the BNCT field in recent years. In July of last year, it secured a 30 million yuan strategic investment from Huada Songhe to strengthen its layout. In December of the same year, it introduced strategic investor Mr. Gong Hongjia, issuing him a 4-year convertible bond of $35 million (approximately 272 million HKD). The backing from industrial capital, combined with business synergies, is set to accelerate the company's BNCT operations. The initial phase of Pengbo Hospital includes approximately 40 patient beds, with an estimated maximum annual patient reception capacity of 1,500 to 2,500 people. With the relaxation of visa-free policies in the Hainan Free Trade Port, the hospital has the potential to attract international patients in the future, establishing itself as a hub for cross-border medical services. Patient intake is expected to ramp up gradually during the initial opening phase. Assuming an estimated treatment cost of approximately 500,000 yuan per session, the maximum potential annual revenue contribution could reach 7 to 12 billion yuan. Furthermore, revenue possesses significant elasticity as approved indications continue to expand. Overall, the trial operation of Pengbo Hospital not only signifies a breakthrough in cancer treatment methods but also completes a transformation of CH BIOTECH SER's core business, providing clear momentum for performance growth and potentially driving a reassessment of the company's valuation.