As the Hong Kong Stock Connect allocation window approaches, with revenue of 3.588 billion and net profit of 430 million, HENLIUS (02696) solidifies the sustainability of its growth in the mid-term report.

On August 21, HENLIUS (02696) officially released its mid-term performance report for 2026. This report indicates HENLIUS's strong and steady growth in revenue and profit: during the reporting period, the company achieved revenue of 3.5882 billion yuan, a year-on-year increase of 27.3%; net profit reached 430.4 million yuan, up 10.3% year on year. In terms of other operational metrics, the company's non-International Financial Reporting Standards (Non-IFRS) profit was 572.3 million yuan, marking a year-on-year increase of 46.7%; Non-IFRS adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached 904.1 million yuan, an increase of 35.2% year on year. Behind these positive financial figures is HENLIUS's global systematic advantage, driven by its innovation in research and development, clinical trials, regulatory registration, production quality, and commercialization, continuously delivering on its intrinsic growth logic of "accelerating innovationglobal monetizationperformance validation." Global Systematic Competitive Advantage Revalidated Since achieving full-year profitability for the first time in 2023, HENLIUS has continued to post simultaneous revenue and profit growth in the first half of this year. Notably, despite increasing R&D investment to 1.4507 billion yuan, a year-on-year increase of 45.7%, the company still maintained a profit growth of 10.3%, amounting to 430.4 million yuan, fully demonstrating its strong self-sustainability. In the first half of this year, HENLIUS's profit growth was mainly driven by synergistic deep cultivation in both domestic and overseas markets. By the end of June 2026, HENLIUS had a total of 10 products approved for marketing in over 60 countries and regions worldwide, with four products receiving FDA approval in the U.S. and five products approved by the EU, generating a global product revenue of 2.939 billion yuan, a year-on-year increase of 14.9%. Notably, revenue from overseas product sales surged by 159.4% year on year to 105 million yuan, and overseas product profits reached 60 million yuan, more than four times that of the same period last year, further enhancing global commercialization capability. As a core product in HENLIUS's lung cancer + gastrointestinal tumor treatment pipeline, Hainzhuo achieved global revenue of 598 million yuan during the reporting period. In the domestic market, Hainzhuo has been approved for five indications, with a newly added indication for the perioperative treatment of gastric cancer receiving priority review approval in June 2026, becoming the world's first and only PD-1 monoclonal antibody approved for this indication, filling a clinical gap globally. This approach successfully achieves "de-chemotherapy" after surgery, using immune monotherapy instead of traditional adjuvant chemotherapy. This "toxicity reduction and efficacy enhancement" innovative treatment model significantly improves efficacy while ensuring safety and patient tolerance. This unique clinical value corresponds directly to significant unmet needs. In terms of market dynamics, approximately 40% of new gastric cancer cases globally occur in China, and there has long been a lack of standard solutions for perioperative immunotherapy. The approval of this indication directly addresses a vast blue ocean market and, with its "world's only" differentiated label, occupies a first-mover advantage in the clinical field, promising rapid in-hospital penetration and volume expansion, thereby opening up significant space for Hainzhuo's secondary growth in the domestic market and further consolidating the company's differentiated leading position in gastrointestinal tumors. The academic field also has the strongest endorsement. In June, data from the Phase III clinical trial (ASTRUM-006) of Hainzhuo used for neoadjuvant/adjuvant treatment of gastric cancer were formally released as an oral presentation at this years ASCO annual meeting and simultaneously published online in the top international medical journal The Lancet, earning authoritative recognition from two of the world's top academic platforms. In the overseas market, during the reporting period, Hainzhuo welcomed an important milestonethe one-year anniversary of its approval for marketing in the EU. During this period, the product added new indications for first-line treatment of non-squamous non-small cell lung cancer (nsqNSCLC), esophageal squamous cell carcinoma (ESCC), and squamous non-small cell lung cancer (sqNSCLC) in the EU, further expanding its regional indication landscape and enhancing market coverage. In July, Hainzhuo for the ES-SCLC indication was successfully included in the UK's NHS; to date, the product has entered the medical insurance directories or public payment systems of 12 countries, including the UK, Germany, Italy, and Sweden. Globally, leveraging the company's systematic advantages in regulatory filings, production quality, and commercialization, Hainzhuo has now been approved for marketing in over 50 countries and regions worldwide, continuously making breakthroughs in lung cancer and gastrointestinal tumors, with its First-In-Class (FIC) and Best-In-Class (BIC) potential accelerating release. At the same time, surrounding broader clinical needs, the clinical development and registration process of Hainzhuo in core markets such as China, the EU, and the U.S., as well as more emerging markets, is progressing rapidly. Underpinned by the company's robust global systematic commercial push, Hainzhuo is advancing towards becoming the next domestically developed innovative drug with annual sales exceeding 10 billion yuan globally. In the field of breast cancer treatment, HENLIUS achieved global sales revenue of 1.698 billion yuan during the reporting period. As a key pivot in the commercialization of the company's full-spectrum breast cancer treatment pipeline, Hanjuyou (trastuzumab, U.S. trade name: HERCESSI, European trade name: Zercepac) achieved global sales revenue of 1.484 billion yuan, and is now approved in more than 50 countries and regions worldwide. During the same period, other products in the breast cancer pipeline also contributed to revenue: Hanvaijia (neratinib) achieved sales revenue of 196 million yuan, Handeiyou (pertuzumab, U.S. and European trade name: POHERDY) reached sales revenue of 7.7 million yuan; and Fuzhutong (foziresilib) generated revenue of 10.7 million yuan. Relying on the commercialization foundation laid by Hanjuyou, the company's "full-spectrum global" breast cancer product matrix is rapidly taking shape. Among them, pertuzumab Handeiyou was approved for marketing in China in May this year, and, along with Hanjuyou, it forms the first domestically developed trastuzumab and pertuzumab dual-target treatment regimen approved in the U.S., Europe, and China, completing a crucial piece of the puzzle for first-line breast cancer treatment. Furthermore, the company continues to intensify its commitment to innovative treatments in breast cancer, with a focus on novel endocrine therapies, new epitope anti-HER2 monoclonal antibodies, HER2 ADCs, KAT6A/B oral small molecule inhibitors, HER2 dual epitope ADCs, and domestically developed combinations of pertuzumab and trastuzumab for subcutaneous administration, further solidifying HENLIUS's leading position in global breast cancer treatment. Dual Drivers of Innovation and Global Expansion, Taking Firm Steps Towards C-MNC The financial report indicates that in the first half of 2026, HENLIUS confirmed R&D expenditure of 1.451 billion yuan, a year-on-year increase of 45.7%. Strong revenue growth and cash flow reserves provide robust support for the company's innovative R&D. Relying on cutting-edge technology platforms such as next-generation IO, Hanjugator ADC, multi-specific TCEs, and AI, the company has established a comprehensive innovative R&D system that continuously empowers the development and iteration of high-potential innovative molecules. The continued increase in R&D investment and matured technology platform systems have propelled the company's self-developed FIC/BIC innovative pipeline into a phase of concentrated harvesting. In the first half of this year, HENLIUS had 32 INDs and 25 BLAs globally, covering nearly 50 countries and regions including China, the U.S., Europe, Japan, and Canada, with its global clinical and registration layout continuing to accelerate. Early pipeline projects are being laid out in multiple locations, with several new-generation innovative molecules demonstrating FIC/BIC potential steadily advancing, including multi-specific TCEs (HLX3901, HLX3902), bispecific ADCs (HLX48), small molecule inhibitors (HLX97), and fusion proteins (HLX316) across various cutting-edge pathways. As a strategically valuable core innovative asset in HENLIUS's pipeline, the R&D progress of HLX43 is undoubtedly a highlight of this financial report that attracts investor attention. It is understood that HLX43, as the world's second PD-L1 ADC with potential BIC capabilities, demonstrated significant anti-tumor activity and manageable safety in key sub-group data for NSCLC treatment, which was officially released as a rapid oral presentation at this year's ASCO annual meeting, once again validating its strong "pipeline in a single drug" potential. In addition to continuously increasing investment in innovative R&D, HENLIUS is also further consolidating its production and quality system development and expanding the boundaries of product international registration and commercial cooperation, accelerating the company's transition towards the C-MNC strategic era. Notably, following last April's authorization cooperation with Sandoz concerning the companys biosimilar HLX13 of ipilimumab, HENLIUS has further deepened its commercial partnership with Sandoz this year. On August 17, the company announced that it would grant Sandoz exclusive rights for the registration and commercialization of up to 10 collaborative products globally, excluding China. HENLIUS will receive upfront payments, milestone payments, and non-refundable option fees totaling up to $322 million. It is worth noting that both parties will engage in deep collaboration from the project development stage, covering key aspects such as product development, regulatory filing, production, commercialization, and lifecycle management. This move will undoubtedly further consolidate HENLIUS's global systematic advantages and lay a solid foundation for the company's comprehensive and in-depth coverage of mainstream biopharmaceutical markets in Europe and the U.S. and various emerging markets. Liquidity Window Approaching, Steady Increase in Allocation Value According to Guosen statistics, there has been a cumulative net inflow of 11.3 billion Hong Kong dollars over the past month, with a total net inflow of nearly 380 billion Hong Kong dollars this year, a clear trend of continued net inflow of southbound funds into Hong Kong stocks. On the other hand, foreign capital maintains a bullish stance towards the Hong Kong stock market as a whole. As of July this year, the total net inflow from active and passive foreign investments into Hong Kong stocks exceeded $18 billion. On the same day as the financial report release, August 21, the Hang Seng Index series quarterly review results were also announced, stating that HENLIUS was included in the Hang Seng Composite Index constituent stocks, and this will officially take effect from September 7, meeting the qualifications for inclusion under Stock Connect between Shanghai and Hong Kong and Shenzhen and Hong Kong. With the company being included in the core value system of Hong Kong stocks, the trading channels for mainland funds will be further improved, and it is expected to continuously attract inflows of southbound funds in the future. It is evident that global capital is accelerating its allocation to the Hong Kong stock market, driven by the marginal pressure on U.S. dollar credit, enhancing the momentum for investment in Hong Kong stocks. Among the subsector tracks, stocks achieving new highs based on the number of stocks reaching a new 250-day high show the most significant effect in the pharmaceutical sector. In this market context, HENLIUS is expected to attract considerable southbound funds through Hong Kong Stock Connect. Moreover, HENLIUS's strong self-sustainability advantage in differentiated innovation and global commercialization, along with its stable and promising fundamentals, align with the current investment tone in Hong Kongs pharmaceutical sector. Therefore, in the context of improving market sentiment, the company is expected to demonstrate solid allocation value and an upward trend in the secondary market.