Recently, the Shanghai and Shenzhen Stock Exchanges announced that BIOCYTOGEN-B (02315) will be included in the Hong Kong Stock Connect list, effective from December 24, 2025. This move marks another significant milestone for the company following the establishment of its dual capital market platform spanning A-shares and H-shares, fully opening its H-share channel to mainland investors. Historically, inclusion in the Stock Connect has often been a crucial catalyst for listed companies to undergo a reassessment of their value. The continuous influx of southbound capital not only directly broadens the investor base and significantly enhances stock liquidity and trading activity but also effectively alleviates the valuation discount caused by insufficient liquidity. Simultaneously, increased market attention will lead to a more thorough examination of the company's investment thesis. For BIOCYTOGEN, the timing of this inclusion is particularly opportune—its "dual-engine" platform-based business model has progressed beyond the technological validation phase and is now entering an accelerated period of scaled commercial implementation. With its unique business model, deep technological moat, and recent positive earnings performance, this inclusion is poised to act as a key catalyst for a secondary reassessment of BIOCYTOGEN's investment value.
The "dual-engine" model empowers global drug discovery, demonstrating strong momentum for earnings growth. Over more than a decade, BIOCYTOGEN has built a core technological "moat" that is difficult to replicate: a "fully human antibody repository" covering the starting point of drug discovery and a "library of humanized target mouse models" for critical validation stages. Through this systematic capability, the company has transformed the traditionally experience-dependent, lengthy, and high-failure-rate early-stage drug discovery process into a standardized, scalable, and highly efficient R&D pipeline. This helps partners shorten candidate molecule screening cycles, significantly reduce early-stage trial-and-error costs, and advance complex therapies into the preclinical stage with a higher success rate. To date, BIOCYTOGEN has built a system covering over 1,000 targets and more than one million fully human antibody sequences, and has developed over 1,700 types of humanized disease models. These cover cutting-edge therapy areas such as bispecific antibodies, ADCs, and cell therapies, with the scale of its model library ranking among the global leaders. The company operates AAALAC-accredited laboratory animal facilities in both China and the United States, with an annual capacity of 800,000 mice and the addition of 200-300 innovative new models each year, showcasing solid potential for scaled commercialization.
Recent strong financial results provide compelling evidence for the viability and growth potential of its platform business model. For the first three quarters of 2025, the company reported revenue of 941 million yuan, a substantial year-on-year increase of 59.5%. It achieved a net profit attributable to shareholders of 114 million yuan, successfully turning a profit compared to a loss in the prior year, indicating its profit model is on a healthy track. During the same period, net cash flow from operating activities surged 162.2% year-on-year to 263 million yuan, reflecting a robust and healthy financial position. R&D investment continued to increase, rising 30.6% to 313 million yuan, driving long-term sustainable development through innovation. In the third quarter alone, the company maintained its rapid growth trajectory, with quarterly revenue reaching 320 million yuan, a sharp increase of 78.34% year-on-year. This solid performance clearly indicates that the company's "dual-engine" platform innovation has moved beyond narrative promise into a phase of strong growth characterized by scaled output and commercial value realization, laying a solid foundation for a value reassessment in the capital markets.
Global expansion continues to deepen, accelerating the realization of growth potential. Since its founding in 2009, BIOCYTOGEN has established "becoming a global source of new drugs" as its long-term vision, consistently promoting a global strategy. This strategy has now progressed from early exploration into a phase of tangible results, with internationalization becoming a core engine driving the company's development. As of the first half of 2025, the company had cumulatively signed over 280 antibody molecule licensing and transfer projects and entered into RenMice® platform licensing and development collaborations for more than 50 target projects. Its partners include 9 of the world's top 10 pharmaceutical companies, alongside numerous other domestic and international pharmaceutical and biotech firms, demonstrating broad recognition of its technological capabilities within the global industry ecosystem. The company has established branches in locations such as Boston, San Francisco, and San Diego in the US, as well as Heidelberg in Germany, with a global team exceeding 1,000 employees. In the first half of 2025, overseas business revenue accounted for nearly 70% of total revenue, confirming internationalization as the core engine of earnings growth.
In the second half of the year, the company continued to achieve significant collaborative milestones globally. In September, BIOCYTOGEN signed an antibody evaluation agreement with the global technology giant Merck. The collaboration will explore nucleic acid drug delivery solutions based on fully human antibodies, including advanced technologies like antibody-conjugated LNPs. In the same month, the company entered into an antibody license agreement with the German innovative biotech firm Tubulis. Tubulis will utilize BIOCYTOGEN's RenMice fully human antibody platform, combined with its proprietary linker and payload technologies, to develop novel ADC therapies. A series of collaborations with leading global enterprises not only brings predictable short-term revenue and long-term royalty expectations but also validates the company's international competitiveness and commercial value in the fields of antibody drug R&D and innovative delivery technologies.
In the short term, the Stock Connect inclusion provides an opportunity for improved liquidity and heightened market attention. Over the medium to long term, the company has successfully established a scarce platform-based Biotech model, characterized by deep technological barriers and a commercialization potential validated by its earnings performance, with fundamentals on a clear upward trajectory. As the company potentially enters a period of "Davis Double Click," mainland investors may leverage the Stock Connect inclusion to participate in the long-term growth dividends of this innovative biotechnology company.
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