On July 21, 2025, leading artificial intelligence company 4Paradigm and fixed-income fintech platform 9M Technologies announced a strategic partnership and jointly released a "Stablecoin Underlying Asset Management Solution"tailored for the stablecoin ecosystem. This solution combines 4Paradigm's powerful AI capabilities with 9M Technologies'extensive experience in managing fixed-income portfolios for over 20 leading financial institutions. The aim is to jointly explore the stablecoin market, address the lack of compliant, secure, and intelligent asset management systems in the stablecoin investment field, and promote the construction of intelligent infrastructure for the stablecoin ecosystem, thereby accelerating the pilot and implementation of compliant stablecoin products. Compared to the previously launched "Stablecoin Intelligent Risk Control & Intelligent Compliance Solution,"the "Stablecoin Underlying Asset Management Solution"focuses on the stability of asset returns.

Cooperation Background: New Compliance Stage Drives Core Demand in Stablecoin Ecosystem

With the official implementation of Hong Kong's "Stablecoin Ordinance"and the continuous improvement of global regulatory policies, stablecoins, as an important bridge connecting traditional finance and the digital asset economy, are rapidly entering a new stage of compliance and institutional development. As a digital cash anchored to fiat currencies (such as the US dollar), the core stability of stablecoins lies in the issuer's professional management of its real-world asset reserves. To maintain this stability, issuers must effectively manage their equivalent real-world assets (reserves), including reasonable investment portfolio configuration and 24/7 risk monitoring. In this context, the industry urgently needs to build a key infrastructure supporting the healthy operation of the ecosystem—a stable and effective asset management solution aimed at providing a security layer for stablecoin holders'assets, covering reserve management, custody risks, market fluctuations, and potential losses such as fraud, thereby enhancing user confidence. In response to this core demand, 4Paradigm and 9M Technologies have joined forces to address the market's urgent needs and provide innovative security solutions for the stable operation of the stablecoin ecosystem.

"Stablecoin Underlying Asset Management Solution": AI + Fixed Income for More Efficient Underlying Asset Management

With the deep integration of both parties'systems, a closed-loop operation mechanism of "asset allocation—risk warning—compliance verification"will eventually be established. This will not only greatly enhance stablecoin operators'control over asset security and regulatory compliance but also inject strong data intelligence and technical resilience into the entire stablecoin ecosystem, promoting the industry's continuous development towards a more transparent, robust, and compliant direction.

Scenario Application: Empowering Stablecoin Underlying Asset Management

Stablecoins, with their low volatility and efficient circulation advantages, have become investment hotspots. However, their core challenge lies in: issuers needing to balance profit demands with asset stability—if reserve asset returns are insufficient or risks are uncontrolled, the "stability"foundation will be shaken. The "Stablecoin Underlying Asset Management Solution"has emerged, ensuring issuers'core operations through the AI + Fixed Income dual engine:

Reserve Asset Intelligent Optimization:Dynamically configure fiat currency/government bond collateral asset portfolios to enhance returns while ensuring safe liquidity (e.g., optimizing the ratio of cash to short-term bonds).

Real-Time Risk Proactive Defense: Monitor risks such as interest rate fluctuations and credit defaults from multiple dimensions, with AI quantitative models providing real-time warning threshold breaches and timely portfolio adjustments to prevent de-pegging.

Liquidity Precise Matching: Manage assets based on liquidity grading, dynamically adjusting the proportion of high-liquidity assets based on redemption forecasts to prevent run risks.

Automated Compliance Disclosure: Automatically generate standardized reserve proof reports and verify asset categories/proportions'compliance in real-time (e.g., meeting Hong Kong's "Stablecoin Ordinance").

Continuous Upgrade of Operational Strategies: Automate valuation, reconciliation, and stress testing, optimizing asset allocation strategies through historical data backtesting.

Cooperation Outlook: Building Intelligent Infrastructure for Stablecoin

Short-Term Focus: Launch an integrated SaaS solution for "Compliance + Portfolio Management"to assist issuing institutions in quickly establishing standardized system capabilities and accelerate the implementation of regulatory sandbox projects.

Mid-Term Deepening: Co-build a stablecoin asset rating system and open API services, providing modular access for commercial banks and licensed platforms, promoting transparency and standardization in reserve management.

Long-Term Co-Building: Collaboratively create a national-level stablecoin technical foundation to support strategic projects such as cross-border digital RMB interoperability, constructing secure and trustworthy underlying capabilities with the "AI Risk Control + Financial Engineering"dual engine.

Explore the "Technology-Driven + Compliance Affiliation"model:

1)Jointly conduct issuance pilot projects with licensed institutions.

2)Position as a core service provider for risk control and system layers.

3)Gradually establish compliant issuance capabilities with high technical barriers.

In the future, both parties will continue to deepen AI cooperation, strengthen integrated solutions in the financial field and other sectors, continuously empower Chinese enterprises'intelligent operation paradigm innovation, jointly explore markets, and promote the digital transformation and high-quality development of enterprises and institutions.

4Paradigm is a leading artificial intelligence technology and service provider, an innovator in data science-driven industry applications, with international foresight in fields such as AutoML and transfer learning. As a benchmark enterprise in the financial technology risk control field, 4Paradigm has served multiple leading Chinese banks over the past decade, intercepting fraudulent transactions exceeding 10 billion yuan, with nearly 2,000 successful implementation cases in government, energy, manufacturing, retail, healthcare, media, education, and internet sectors. Recently, it has keenly captured the demand in the stablecoin ecosystem and accurately launched the "Stablecoin Intelligent Risk Control & Intelligent Compliance Solution."In the future, it will actively lay out and continuously promote the compliant and healthy development of the stablecoin field.

9M Technologies is a fintech service provider deeply rooted in the local market and facing the global stage, focusing on providing asset pricing, investment portfolio analysis, and risk management system solutions for financial institutions such as banks, securities firms, and fund companies. With years of service experience and technical accumulation for domestic and foreign leading financial institutions, its self-developed investment portfolio management and risk management systems have been implemented in over 20 large institutions. These clients include bank financial market departments and wealth management, securities proprietary and asset management departments, various fund companies, etc., with the asset management scale served by the system totaling nearly 10 trillion yuan.

According to data from Wind, a financial data platform, 1,468 companies listed in Hong Kong reported share price gains in the first half of 2025, accounting for 55.5% of all listed stocks. This article focuses on analyzing the top gainers to provide valuable insights into capital allocation trends over the past six months.

Among the top 100 stocks, companies spanned 10 industries classified by Wind as Tier-1, with 25 from the Consumer Discretionary sector, making it the best-performing industry.

Notably, gold-related stocks saw exceptional performance. Sales-end player Mount Everest Gold surged by over 900%, while Laopu Gold soared more than 300%. Four other companies involved in gold mining and refining experienced gains ranging from 175% to 332%, reflecting strong investor interest across the entire gold value chain.

Which companies on the top 100 list are poised to become standout performers in the second half of the year? Which have strong fundamentals and are well-positioned for further gains? By analyzing metrics such as year-on-year revenue growth for 2024 and 2023, price-to-earnings (P/E) ratios, and share prices, the author identified 17 companies with consistent revenue growth over the past two years and P/E ratios within a reasonable range.

Based on year-on-year revenue growth for 2024, the top five are: Laopu Gold, Pop Mart, Chia Tai Enterprises, Shanghai Chicmax, and Newborn Town.

Consumer Discretionary Stocks Lead the Rally; Hong Kong Pharma ETF Surges 44%

Within the top 100 list, the Consumer Discretionary sector led with 25 companies (Wind Tier-1 Industry, same below), followed by 16 in Healthcare, 14 in Industrials, 11 in Financials, and 10 in Information Technology (see Table 1).

Table 1. Number of Companies by Industry Among the Top 100 HK Stock Gainers in H1 2025 (Source: Wind)

Healthcare is the standout sector this year. Among the top 100 list, HBM Holdings-B surged by 355.9%, and Antengene-B gained 347.7%. Additionally, six other healthcare firms saw increases of over 200% (see Table 2).

Table 2. Healthcare Companies Among the Top 100 HK Stock Gainers in H1 2025 (Source: Wind)

The HK Pharmaceutical ETF (159718) surged 44.1% in H1 (according to Tonghuashun, as noted below), significantly outperforming the Healthcare ETF (159929), which rose by 5.6%.

In the Consumer Discretionary sector, Laopu Gold and Pop Mart stole the spotlight. Laopu Gold surged by 321.5% (according to Wind, as noted below), while Pop Mart soared by 198.6% in H1. Both brands generated long queues outside their stores, with scalpers reselling products at premium prices. At Laopu Gold’s IFC store, customers must scan a QR code to join the queue—each person receives one number, and missed numbers are forfeited.

Other major gainers included Mexan Limited (+1,163.8%), Mount Everest Gold (+962.5%), and Tokyo Chuo Auction (+910.2%). Companies such as TOMO Holdings, HOME Control, and HK Robotics also saw gains of over 500%.

Note of Caution: Mexan Limited and TOMO Holdings are priced below HK$1 (see Table 3).

Table 3. Consumer Discretionary Companies Among the Top 100 HK Stock Gainers in H1 2025 (Source: Wind)

Among the top 100 gainers, there are four gold mining companies, including Tongguan Gold, Lingbao Gold, China Hanking, and Wanguo Gold, which benefited from surging gold prices that lifted their revenue baselines (see Table 4).

Table 4. Materials Sector Companies Among the Top 100 HK Stock Gainers in H1 2025 (Source: Wind)

17 'Hidden Champions' with Strong Fundamentals Poised for Continued Growth in H2

Which companies on the top 100 list are not just the result of short-term capital speculation, but offer genuine medium- to long-term investment potential? Which ones are showing meaningful performance improvements, with their share prices on an upward trajectory and further room for growth in the second half?

The author applied the following three criteria to the top 100 list: 1) Revenue growth in 2024 and 2023; 2) A trailing P/E ratio (as of July 10) below 300; 3) A share price above HK$1 as of July 10.

A total of 17 companies meet all three criteria (see Table 5).

Table 5. Companies Selected Based on the Three Criteria (Source: Wind)

As shown in the table, 11 companies have demonstrated accelerating revenue growth over the past two years. These include Laopu Gold, Pop Mart, Chia Tai Enterprises, Shanghai Chicmax, Newborn Town, Yixin Group, Dekon Food and Agriculture Group, Biocytogen-B, Harbin Electric, 3SBio Inc., and Lingbao Gold.

Among them, Laopu Gold specializes in the sale of gold products. Founded in 2009, it was the first heritage gold jewelry brand in China to promote the concept of 'heritage gold,' reshaping the landscape of China's gold jewelry market.

Pop Mart specializes in the design and sale of designer toy collections. By the end of 2024, it had 13 IPs, each generating over RMB 100 million in revenue.

In 2024, THE MONSTERS, MOLLY, SKULLPANDA, and CRYBABY recorded revenues of RMB 3.04 billion, RMB 2.09 billion, RMB 1.31 billion, and RMB 1.16 billion, respectively.

Chia Tai Enterprises focuses on animal health products, chlortetracycline, and industrial businesses. For the year ended December 31, 2024, the Group’s revenue increased by 76.9% to USD 307.7 million (2023: USD 174 million), reflecting the successful execution of its key strategy to expand sales to major customers.

Shanghai Chicmax specializes in the manufacturing and sale of skincare, maternity and childcare, washing and personal care, and makeup products. Its portfolio includes brands such as Kans, One Leaf, Baby Elephant, and newpage. This multibrand approach has consistently enabled the company to seize market opportunities and stand out from competitors.

Newborn Town is a global social entertainment company with a diversified, 'bush-like' apps portfolio across the MENA region, Southeast Asia, Europe, the Americas, Japan, and Korea. As of December 31, 2024, its flagship products, MICO and YoHo, continued to generate steady profits as reliable cash cows, while newer products like TopTop and SUGO saw year-on-year revenue growth of 100% and 200%, respectively, providing additional earnings momentum.

Newborn Town continues to upgrade its AI middle-platform engine to enhance social matching, content recommendations, and content ecosystem operations, further improving monetization efficiency. Looking ahead, with a vision of 'creating positive emotional value,' the company will continue advancing in the global social entertainment space, exploring user needs, strengthening business barriers, and building a heartwarming and valuable product ecosystem.

Jinxin Fertility Group Limited has always been highly regarded by market investors as a stock featured scarcity on the Hong Kong Stock Exchange.

In recent years, however, Jinxin Fertility's performance has been under pressure in the capital market, but from a fundamental perspective, the Group's overall performance is still commendable. In addition, the assisted reproductive industry is facing policy benefits, especially from provinces that have already included assisted reproductive in medical insurance, greatly increasing the business volume of assisted reproductive services (ARS).

So, what are the expected differences in the market behind the lack of resonance between fundamentals and valuation? How should we view the current opportunities in the context of the certainty of favorable industry policies?

1. Profitability continues to rise with sustained operating results

Looking at the mid-term financial report recently submitted by Jinxin Fertility, it can be said that the business situation presented in this semi-annual report is still stable.

According to financial report data, Jinxin Fertility achieved a revenue of RMB 1.44 billion in the first half of the year, a year-on-year increase of 8.2%; Adjusted EBITDA of 418 million yuan, a year-on-year increase of 6.1%; Net profit after adjustment of 260 million yuan, a year-on-year increase of 1.8%.

While the core performance indicators remained stable, the Group's operating cash flow performance was also quite good, which directly demonstrated its impressive endogenous ability to generate revenue. In the first half of the year, its net cash income from operating activities reached 384 million yuan, a year-on-year increase of 14.0%.

In the face of a complex external market environment, the Group continued to maintain a solid financial foundation and optimize its debt structure. Its interest bearing debt ratio decreased to 13.7% for the half year, a year-on-year decrease of 0.6 percentage points.

In terms of domestic and international business, the Group created different development strategies based on the geographical characteristics and development stages of its medical institutions to promote the upward development of domestic and international business.

For mature institutions, Jinxin Fertility took its Chengdu operations as a paradigm to build a one-stop integrated business with ARS as core services, to support the entire fertility and health management, to better serve patients. The Group strengthened core departments such as reproductive medicine and obstetrics, while further diversified discipline construction to expand business network for better brand awareness with wider customer bases, thereby reserving patients with longer conversion cycles for core businesses.

For incubation institutions, the Group continued to focus on its core ARS business, took stringent measures to improve its quality and safety system, and shifted its operating model to operation-driven from marketing-driven.

As regards US business, the Group continued to anchor the development trend of the assisted reproductive industry in the United States, and constantly strengthened its 36-year brand history and implemented the “physician as partner” mechanism to grant outstanding physicians with equity ownership as partners. The team expansion of medical professionals has also laid a solid foundation for the HRC expansion.

4 new doctors joined the HRC in 2023, and 5 new doctors are expected to join in 2024. The number of reproductive doctors owned by HRC is expected to reach 24 by the end of the year. In the first half of 2024, HRC obtained a year-on-year increase of about 22% in total cycle volume. The integration of new and old doctors not only promoted the increase of HRC business volume, but also provided a reserve of medical talents for HRC's expansion. As of now, HRC Medical holds 4 core clinics and 7 satellite centers in the Los Angeles and San Diego areas of the United States. At the same time, in response to the development trend of egg freezing in the United States, the Group has launched sets of egg freezing medical services to further increase the influence of HRC in the assisted reproductive market in the United States.

Furthermore, outside of the United States, Jinxin Fertility also promoted the development of its overseas business in light of actual conditions based on region-specific approach. Among them, Jinrui Medical Center in Laos has created a "small yet beautiful" self-built operating model with high-efficiency, which has achieved profitability in less than a year of operation, providing a feasible reference model for the Group's expansion in other emerging markets in Southeast Asia.

Also worth mentioning is that in April of this year, the Group signed a contract with Morula, the largest ARS group in Indonesia, becoming its largest strategic investor. Morula has a wide service network in Indonesia, with 10 IVF clinics. Through this cooperation, the Group was able to inject its advantageous resources in medical technology, doctor training, information technology, and customer relationship management into Morula, further improving its service quality and operational efficiency. The first step taken by the Group through strategic investment in Southeast Asia not only helps to deepen its development in the Indonesian market, but also provides valuable experience and models for future strategic expansion in other Southeast Asian countries.

Through innovative operating models, strategic investments, and collaborations, the Group has been gradually building a global ARS network to meet the needs of patients in different regions and promote the sustained growth and international development of the company's business.

2. Driven by Policy & Industry Innovation, Features Certainty & Growth Potential

On the whole, Jinxin Fertility has manifested its high-quality development path to the outside world both in terms of performance and business strategy. In the meantime, the Group is also facing a series of favorable catalysts, which continue to bring new opportunities for development with certainty and high growth.

Firstly, policies are continuously forming a positive driving force for the development of the assisted reproductive industry.

In respect of the domestic market, favorable policies for the industry are being implemented one after another. These certain policies for medical insurance have brought optimistic expectations for the future business development of the Group.

It is worth noting that currently, under the promotion of the National Healthcare Security Administration of China, 19 provinces including Beijing, Guangxi, Inner Mongolia, Gansu, and Xinjiang Production and Construction Corps have included assisted reproductive technology in the scope of medical insurance reimbursement. The subsidiary institutions of the Group located in Sichuan, Guangdong, Hubei, and Yunnan have all issued consultation letters related to the inclusion of assisted reproduction in medical insurance reimbursement or pricing, and are expected to be implemented in the near future.

With the implementation of medical insurance policy, the demand for assisted reproduction market is expected to be released, driving a significant increase in the number of infertility patients seeking medical treatment and providing momentum for the sustained growth of the assisted reproduction industry.

Source: National Healthcare Security Administration website

According to the "Assisted Reproduction Research Report in China 2023" released by YuWa Population Research, 55.7% of infertile patients gave up using assisted reproductive treatment due to its high cost. When the subsidy ratio reached 20%, the willingness of potential patients to receive treatment will increase from 71% to over 80%.

（来源：育娲人口：《中国辅助生殖研究报告2023》）

(Source: YuWa Population Research: "Assisted Reproduction Research Report in China 2023")

Moreover, the policy has greatly stimulated the number of assisted reproductive visits based on the regions that have already been included in healthcare insurance. Previously, a person in charge of the medical security bureau of Guangxi Zhuang autonomous region responded to an interview with China Youth Daily and mentioned that from the implementation of the policy in November 2023, the outpatient volume of assisted reproductive institutions in the entire autonomous region reached 607700 times, a year-on-year increase of 35.6%.

And when it comes to the US market, the innovation in the assisted reproductive industry is on the rise, and the continuous innovation in the industry has brought greater imaginative room for the future development of HRC.

Sustained driving force has been brought to the development of the industry nowadays no matter what new innovations in products, operating models, or payment methods.

Progyny, who sits at the forefront of American infertility insurance, has driven innovation in payment methods. The company is able to provide reproductive welfare solutions such as IVF for employees of corporate employers, by combining technology, insurance, and medical practice to provide personalized treatments and financial support, which has also established a strong market position in the ARS field.

Further, KindBody, a bellwether in product and operating innovation, provided reproductive health solutions such as IVF and egg freezing through online, offline, and collaborative models. This not only improves service accessibility but also reduces costs through technological means, making advanced reproductive services affordable for more families.

In view of the aforesaid, the active promotion of policies and continuous innovation in the industry have brought tremendous development opportunities for ARS providers such as Jinxin Fertility. The market opportunities in the assisted reproductive industry will still be full of prospects with the release of market demand and the continuous innovation and progress of products, technologies, and service models.

The pharma sector receives ongoing optimistic views in performance from institutions on the Hong Kong Stock Exchange as the Federal Reserve enters a interest rate cut cycle nowadays.

The recent research report by CITIC Securities pointed out that it is recommended to focus on the healthcare industry that benefits from the reduction in borrowing costs based on the industry performance during the rate cut cycle. In fact, companies with stable cash flow are more likely to stand out in past interest rate cut cycles, due to their defensive nature and the potential for sustained expansion brought by their solid cash flow.

As a leading ARS provider, Jinxin Fertility has demonstrated in its past financial performance the company's stable cash flow and good business growth capabilities. Through steady expansion both at home and abroad, as well as continuous promotion of innovative businesses, the Group has established a strong brand influence and market competitiveness in the field of ARS.

Meanwhile, the Group has shown a positive side in both management's increase in holdings and repurchases, continuously releasing market confidence.

Significantly, the Group spent HKD 9.57 million to repurchase 4 million shares in the market on August 30th, and it had also spent HKD 21.84 million to repurchase 9 million shares at the end of July.

Through consecutive repurchase actions, it is not difficult to see the Group's confidence in its own value and optimistic expectations for future development prospects.

The biomedicine industry has always been considered a sector with marked cyclical fluctuations. After reaching a peak in the past few years, the industry has entered a downward trajectory, with sluggishness and pessimism plaguing the market.

The capital market has also lacked bright spots, leaving the monthly K-line of biomedicine B-shares in the H-share market declining since 2021 and hovering at a low level for quite some time.

As the previously high valuations of pharmaceutical stocks have been moderated to a reasonable level, it is undeniable that the opportunities in the entire industry have gradually become clearer. Standing at this juncture, industry differentiation is still inevitable, and undervalued assets with high investment value often offer better cost-effectiveness. Among them, TOT Biopharm (01875. HK) exemplifies a combination of investment value and undervaluation.

Recently, TOT Biopharm released its financial report, registering a total revenue of RMB 781 million with a year-on-year increase of 77%. Excluding the one-time impact of revenue from license granted in 2022, revenue would have increased by 101% in 2023.

It is evident that TOT Biopharm has continued to deliver impressive annual results.

Since its strategic transformation, TOT Biopharm has demonstrated its transformation achievements through substantial growth in performance.

From the perspective of its core business, the CDMO business has become a new driver of revenue growth since 2021. That year, the business income from CDMO/CMO reached RMB 53.69 million. In 2022, it increased to RMB 72.54 million, and in 2023, it further exceeded the RMB 100 million mark to RMB 140 million. Furthermore, the year-on-year growth rate nearly doubled, reaching 94%.

Over the past year, the ADC CDMO business segment has continued to see breakthroughs. Data indicate that the company added 39 new projects throughout the year, of which 30 were ADC projects, accounting for a proportion as high as 77%. Additionally, among the 65 ongoing projects, both the revenue from and the number of ADC projects increased to 65%, indicating the market’s recognition of TOT Biopharm's differential advantages in ADC CDMO.

It is worth mentioning that the company's CMC development and commercialization production capabilities are prominent. Last year, it added four pre-BLA (pre-Biologics License Application) projects. Such key projects help the company secure potential commercialization orders, providing strong confidence for its subsequent cash flow conversion.

From the financial report, it can be seen that TOT Biopharm's profitability continues to improve, with adjusted EBITDA reaching RMB 40.04 million, representing a year-on-year increase of 274%. Furthermore, the net cash flow from operating activities remained positive even without cash inflow from licenses granted in 2023, reaching RMB 56.43 million. The net loss narrowed by 25% to RMB 37.76 million.

It is not difficult to see that TOT Biopharm has gradually established good cash flow generation capabilities. Against the backdrop of cash flow pressures faced by many companies in the industry, the company's stable operation and effective management provide strong support for its sustainable development in the future.

2. Constructing Core Economic Moat with "Technological Compound Effect + Commercialization Platform + Efficient Operation"

At this juncture, TOT Biopharm has established a considerable economic moat in the industry. The company is supported by the following major factors in terms of long-term value.

Firstly, the technological compound effect.

TOT Biopharm possesses a complete set of experiences ranging from R&D, process development, clinical trials, and registration approval, to commercial production. It has established a comprehensive ADC technology platform with core conjugate processes, amplified technology advantages, and independent analytical capabilities for key quality attributes of ADCs, ensuring high-quality product development. The company ranks among the top CDMOs in the ADC field in China.

Through long-term technological accumulation and mapping out, the company has built a vast and sophisticated technological system, which has continuously generated technological compound effects for the company, highlighting its differential competitiveness in CDMO.

It is worth mentioning that the company has successively reached comprehensive cooperation with partners such as Lepu Biopharma, Escugen, BioRay Pharmaceutical, SmartNuclide, and Haoyuan Chemexpress in areas including ADCs, Radionuclide drug conjugates (RDCs), and other broader biological conjugates. It has successfully obtained multiple pre-BLA ADC projects, fully demonstrating the company's excellent capabilities in the ADC CDMO field.

In addition, in July last year, TOT Biopharm announced a strategic cooperation with GLYCANLINK based on ADC site-specific conjugation technology to jointly develop the DisacLinkTM ADC site-specific conjugation technology platform, accelerating the development and commercialization of innovative conjugated drugs for customers.

Secondly, TOT Biopharm boasts a high-quality commercialization platform.

With large-scale production capacity, flexible production lines, and a comprehensive commercialization layout, the company is able to cater to the diverse needs of customers. On one hand, it has improved its production capacity by establishing a high-standard ADC CDMO commercialization production line integrating antibodies, ADC substance, and ADC product manufacturing. In the first half of last year, the company's state-of-the-art, large-scale commercial production line for ADC drug products was completed and put into use, with an annual production capacity of 5.3 million vials of freeze-dried drug products,demonstrating significant progress in production efficiency. In addition, the company has completed the construction of four complete commercialization production lines, including two for ADCs and two for antibodies, significantly improving production capacity and flexibility.

On the other hand, TOT Biopharm is committed to building a comprehensive "one-stop, end-to-end" ADC industrialization platform, continuously enhancing the technological competitiveness of the platform, strengthening customer stickiness, and establishing long-term cooperative relationships, laying a solid foundation for future commercialization projects.

By focusing on differential competition in the ADC CDMO racetrack and building a high-quality commercialization platform, TOT Biopharm has significant advantages in both project-undertaking capabilities and compliance guarantees. Benefiting from the company's complete experience from drug discovery to commercial production and the differentiated advantages of the ADC CDMO industrial platform, as of the end of 2023, its backlog within 3 years had grown to RMB 505 million and the booked service backlog was RMB 137 million, with a year-on-year growth rate of 163%. In addition, as of the end of 2023, the company had 65 ongoing CDMO projects, including 42 ADC projects. These provide strong guarantees for the company's subsequent business growth.

Moreover, TOT Biopharm exhibits efficient operational strength through the establishment of an integrated ADC platform. With core technological advantages in R&D, the company has centralized key production processes such as Antibody, ADC substance, and ADC product manufacturing, thus reducing transfer costs and mitigating regulatory risks. This efficient operational model also enables the company to respond more flexibly to market changes, improve project execution efficiency, and lay a solid foundation for business development.

It is noteworthy that in October last year, TOT Biopharm's global R&D service center was completed and put into operation in Suzhou Industrial Park. As the company's new service center and key R&D district, the operation of this center further strengthens the capabilities of its CDMO business in technological research, process development, quality research, and more. It also means that the company will be able to better integrate R&D resources, improve project execution efficiency, and thus become more competitive in the market.

As can be seen from its annual performance report, TOT Biopharm's excellent achievements are based on its multi-year industry experience, platform construction, and technological advantages. As a pioneer in the ADC field, the company has demonstrated robust and sustainable operational strength and profit potential by targeting potential markets. With the delivery of its performance, the company also has the potential for market revaluation.

Currently, TOT Biopharm's market capitalization stands at less than approximately HK$1.3 billion. With the company's growth potential and comprehensive competitiveness in the ADC CDMO field taken into account, it undoubtedly boasts remarkable attractiveness under the current low valuation.

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