BeiGene Ltd.

BeiGene released its 2026 interim report, with total operating revenue of 22.22 billion yuan, net profit attributable to the parent company of 3.271 billion yuan, and net cash inflow from operating activities of 4.439 billion yuan. The latest asset-liability ratio was 43.32%, up 3.17 percentage points from the same period last year; gross margin was 89.45%, ROE was 9.23%, and diluted earnings per share was 2.26 yuan. Total asset turnover was 0.37 times, down 7.16% year-on-year; inventory turnover was 0.51 times, down 21.53% year-on-year. The number of shareholders was 39,700, and the top ten shareholders held 31.95% of the total share capital.

On August 20, the A-share pharmaceutical sector surged in early trading, with innovative drug names leading the gains. Walvax Biotechnology, Lummy Pharmaceutical, and CanSino Biologics were among multiple stocks that hit the 20 percent daily limit up. The direct catalyst for this rally was major progress in the overseas pharmaceutical industry. Overnight in the U.S. market, Moderna's stock soared nearly 180 percent after its mRNA personalized cancer vaccine, developed in collaboration with Merck, posted initial positive results in its first Phase III clinical trial. The vaccine, combined with Keytruda, was used as adjuvant therapy in more than 1,100 high-risk melanoma patients who had undergone complete surgical resection, and it met key endpoints of recurrence-free survival and reduced risk of distant metastasis. This is the world's first individualized neoantigen mRNA cancer vaccine to enter the final sprint toward market approval, cutting the risk of recurrence or death by 49 percent. The fundamentals of China's innovative drug industry have already undergone substantial change. A research report from Ping An Securities noted that in the first half of 2026, multiple innovative drug companies showed strong commercial ramp-up, and the industry reached a large-scale inflection point of turning profitable. BeiGene posted product revenue of 1.7 billion dollars in the second quarter alone, while Innovent Biologics reported product revenue of more than 8.2 billion yuan in the first half of the year. According to statistics from the National Medical Products Administration, from January to June 2026, the total value of China's out-licensing deals for innovative drugs reached approximately 110 billion dollars, equivalent to 80 percent of the full-year total for 2025, setting another record high. The upstream CXO sector is also seeing confirmed improvement in its business climate. Guosen Securities stated that Chinese CDMO companies have built comprehensive competitive advantages based on talent dividends, compliant production capacity, and intellectual property protection, and that the global position of chemical CDMOs will be difficult to replace within five years.

As of August 19, 88 companies on the Shanghai Stock Exchange's STAR Market had disclosed their 2026 semi-annual reports, with combined operating revenue of 204.3 billion yuan and net profit of 18.9 billion yuan, up 32% and 154% year on year respectively. Among them, 71 companies were profitable, 51 posted profit growth, and 11 turned losses into gains. The 12 STAR 50 index constituents that have disclosed semi-annual reports recorded combined operating revenue of 117.4 billion yuan and net profit of 9.2 billion yuan, up 25% and 216% year on year, contributing nearly 60% of the board's disclosed revenue and nearly half of its net profit. The domestic computing power ecosystem was the clearest main theme in the first half. SMIC's second-quarter sales revenue reached 3.006 billion US dollars, a record quarterly high, while Hua Hong Semiconductor posted sales revenue of 717.5 million US dollars in the same period, also a record high. Design-side companies such as Cambricon and Hygon Information delivered substantial earnings growth. Innovative drugs and high-end equipment also stood out. BeiGene's first-half net profit attributable to the parent company rose 627.1% year on year, and it raised its full-year total revenue guidance to between 6.6 billion and 6.8 billion US dollars. AVIC UAS saw operating revenue rise 272.48% year on year. At the same time, interim dividends among STAR Market companies increased notably. Since the start of 2026, 86 new share buyback plans have been disclosed, with a combined maximum amount of 11.448 billion yuan, and 29 new shareholding increase plans have been disclosed, with a combined maximum amount of 1.005 billion yuan.

On August 13, China's A-share pharmaceutical sector strengthened, with Boji Medical and Longshen Rongfa up by the 20 percent daily limit, Fangsheng Pharmaceutical and Jiuzhou Pharmaceutical up by the 10 percent daily limit, and innovative drug companies such as Yahong Meditech, Junshi Biosciences, Dizal Pharmaceutical, and Zhongsheng Pharmaceutical rising more than 3 percent. Since WuXi AppTec released its better-than-expected 2026 interim report on August 3, the pharmaceutical sector has kept climbing, with Wanbang Pharmaceutical posting three boards in two days, Yatai Group three consecutive daily limits, and Yuyuan Pharmaceutical four boards in five days. Southwest Securities research argues that WuXi AppTec's interim net profit attributable to the parent exceeded 10 billion yuan for the first time and raised its guidance, while BeiGene, RemeGen, and Innovent Biologics released positive results at the same time, creating a sector-wide resonance effect. WuXi AppTec's first-half revenue was 28.9 billion yuan, up 38.93 percent year on year, with net profit attributable to the parent of 11.08 billion yuan, up 29.43 percent. BeiGene's first-half total revenue was 22.22 billion yuan, up 26.8 percent year on year, with net profit attributable to the parent of 3.271 billion yuan, up 627.1 percent, and it raised its full-year revenue guidance to between 44.9 billion and 46.2 billion yuan. Innovent Biologics' first-half product revenue exceeded 8.2 billion yuan, up more than 55 percent year on year. In addition, Akeso's ivonescimab injection combined with chemotherapy was approved for first-line treatment of advanced squamous non-small cell lung cancer, marking the drug's third indication in lung cancer. On August 10, China's pharmaceutical industry announced three deals, including a collaboration between BeiGene and Revolution Medicines, a partnership between Innovent Biologics and Daiichi Sankyo, and a collaboration between Gan & Lee Pharmaceuticals and Menarini, with a potential total transaction value of 726 million euros. On August 12, CSPC Pharmaceutical Group received a 30 million US dollar upfront payment from AstraZeneca. Xiangcai Securities research argues that this round of the pharmaceutical sector's rally will be significantly more durable than previous ones, based on three judgments: the pharmaceutical sector absorbing capital outflows from the technology sector, improving interim results from CXO companies, and the initial emergence of Chinese pharmaceutical companies' global expansion.

BeOne Medicines reported second-quarter 2026 total revenue of $1.7 billion, up 30% year over year, with GAAP earnings per ADS of $2.05, up 144%. BRUKINSA global revenue exceeded $1.2 billion, up 31%, while TEVIMBRA sales rose 18% to $229 million. The company raised its 2026 revenue guidance by $300 million to a range of $6.6 billion to $6.8 billion and lifted its GAAP operating income guidance by $250 million to $1.0 billion to $1.1 billion. Free cash flow doubled to $435 million, and adjusted diluted EPS was $3.84 versus $2.25 a year ago. The Phase 3 MANGROVE study showed BRUKINSA plus rituximab as the first chemo-free regimen for frontline mantle cell lymphoma with a hazard ratio of 0.57 versus standard of care.

Innovative drug concept stocks continued to strengthen during the session on August 11, with Baihua Medicine securing its sixth consecutive daily limit up and Wanbang Medicine surging by 20 percent. On the news front, seven departments including the Shanghai Municipal Commission of Commerce issued the Shanghai National Service Trade Innovation Development Demonstration Zone Construction Plan, which explicitly supports the innovative development of the biomedical industry and encourages enterprises to pursue global registration and certification for innovative drugs, modern traditional Chinese medicine, and high-end medical devices, and to achieve local sales. Industry data is also impressive: in the first half of this year, the National Medical Products Administration approved 38 innovative drugs for market, of which 31 were domestically developed, accounting for over 80 percent. During the same period, domestic innovative drugs reached 81 licensing deals with overseas pharmaceutical companies, with a total disclosed value of approximately 110 billion US dollars, already reaching 80 percent of the full-year total for 2025. Chinese pharmaceutical companies occupied eight of the top ten spots globally by licensing deal value, and China's number of new drugs under research accounts for about 30 percent of the global total, ranking second worldwide. In addition, several leading innovative drug companies have recently intensively raised their performance guidance. BeiGene achieved total operating revenue of 22.22 billion yuan in the first half of 2026, up 26.8 percent year-on-year, with net profit attributable to the parent company of 3.271 billion yuan, up 627.1 percent. It raised its full-year revenue guidance from a range of 43.6 billion to 45.2 billion yuan to 44.9 billion to 46.2 billion yuan, and its revenue minus operating costs and expenses from a range of 4.8 billion to 5.5 billion yuan to 6.5 billion to 7.1 billion yuan. Brokerage analysis suggests that overseas multinational corporations and contract research organizations have reported positive interim results and raised full-year guidance, confirming that global innovative drug research and development investment and industry chain demand remain in a relatively high boom range. The pharmaceutical sector can absorb the stock of funds flowing out of the technology sector. The half-year reports of upstream contract research organizations for innovative drugs have generally improved, the industry recovery trend is established, the global layout of domestic pharmaceutical companies is beginning to bear fruit, and the overseas cooperation model continues to upgrade.

Penghua STAR 100 ETF surged over 2% in morning trading, with semiconductor and pharmaceutical sectors rallying strongly. On the news front, DeepSeek plans to raise API service pricing soon, with a significant increase expected. Goldman Sachs noted that demand for Chinese AI models is robust and computing power is tightening, with industry competition shifting from price wars back to rational pricing. In pharmaceuticals, the total out-licensing deal value for Chinese innovative drugs in the first half of 2026 reached approximately 99.7 billion US dollars, roughly double the full-year figure for 2024. BeiGene raised its full-year operating performance forecast, while RemeGen and Innovent Biologics reported substantially improved results. BOC International analysis indicates that since 2026, global semiconductor materials have seen a wave of price hikes, covering core categories such as silicon wafers, electronic specialty gases, and sputtering targets. This is driven by a combination of surging AI computing demand, rising costs from Middle East geopolitical conflicts, and supply constraints on certain metal raw materials, opening an accelerated substitution window for domestic material companies. As of 10:13 AM on August 7, 2026, the SSE STAR 100 Index rose strongly by 2.23%, with constituent ChipMOS Technologies up 12.22%, InventisBio up 8.15%, and Fortrend Precision up 6.87%. Penghua STAR 100 ETF closely tracks this index, with the latest price at 1.75 yuan, aiming for a fourth consecutive gain.

As of August 7, three STAR Market companies have disclosed their performance briefs for the first half of 2026. BeiGene expects to achieve operating revenue of 22.22 billion yuan, up 26.80 percent year-on-year, with net profit of 3.271 billion yuan, up 627.10 percent. XTC New Energy Materials expects operating revenue of 14.488 billion yuan, up 91.09 percent, and net profit of 491 million yuan, up 46.62 percent. Tedy Electronics expects operating revenue of 1.205 billion yuan, down 0.22 percent, and net profit of 138 million yuan, down 9.42 percent.

SanDisk reported fourth-quarter fiscal 2026 revenue of 8.96 billion dollars, up 372 percent year-on-year, and its board approved a 14 billion dollar share buyback program. Western Digital posted revenue of 3.75 billion dollars for the same period, a 44 percent increase. According to media reports, Apple attempted to negotiate lower DRAM purchase prices with CXMT but was rebuffed, as CXMT insisted on pricing no lower than that of Samsung Electronics and SK Hynix. Huawei Executive Director Richard Yu said that soaring memory costs could lead to significant smartphone price hikes. Unitree Robotics has kicked off preliminary price consultations for its STAR Market IPO, with the market estimating a valuation exceeding 40 billion yuan. BeiGene's first-half net profit surged 627 percent year-on-year, driven mainly by sales growth of products such as Brukinsa.

On the evening of August 5, several listed companies on the Shanghai and Shenzhen exchanges released important announcements. China Merchants Energy Shipping plans to build five Aframax oil tankers, with a total price of approximately 2.485 billion yuan. Kaiwei Technology intends to purchase 100% of Jingyi Semiconductor for 1.65 billion yuan. RemeGen is expected to report a net profit of about 4.7 billion yuan for the first half of the year, turning a loss into a profit year-on-year. BeiGene's global revenue for the second quarter reached 1.7 billion US dollars, a year-on-year increase of 30%, and it has raised its full-year revenue guidance to between 6.6 billion and 6.8 billion US dollars. Muyuan Foods' revenue from commercial pigs in July was 8.897 billion yuan, a year-on-year decrease of 23.56%. Zhaori Technology is planning to issue shares to purchase assets, and its stock will be suspended from trading starting August 6. Lida Optoelectronics will resume trading on August 7 and will have its delisting risk warning and other risk warnings removed. In addition, several companies disclosed their semi-annual performance, shareholding increase or decrease plans, and major contracts.

BeiGene has released its key financial data for the first half of 2026. Net profit attributable to parent company shareholders reached 3.271 billion yuan, a year-on-year increase of 627.1 percent. Total operating revenue was 22.22 billion yuan, up 26.8 percent. Product revenue came in at 21.797 billion yuan, a rise of 25.6 percent, driven mainly by sales growth of Brukinsa, Amgen-licensed products, and Tevimbra. The company also raised its 2026 full-year revenue forecast to between 44.9 billion and 46.2 billion yuan, up from the previous range of 43.6 billion to 45.2 billion yuan, reflecting Brukinsa's leading position in the US market and its continued expansion in Europe and other key global markets. In other news, Elegant Home-Tech has completed a trading halt review and will resume trading on August 6. The company expects a net loss for the first half of 2026 and has warned of irrational speculation risks. Midea Group had cumulatively repurchased A-shares worth 6.973 billion yuan as of July 31. China Merchants Energy Shipping plans to build five Aframax tankers for a total price of approximately 2.485 billion yuan. Kiwi Instruments intends to acquire a 100 percent stake in Jingyi Semiconductor for 1.65 billion yuan, constituting a major asset restructuring. Muyuan Foods reported July commercial pig sales revenue of 8.897 billion yuan, down 23.56 percent year-on-year. RemeGen expects a first-half 2026 net profit of around 4.7 billion yuan, swinging from a loss to a profit.

The Ministry of Commerce has decided to add the US firm Compliance Testing LLC to its countermeasures list, prohibiting organisations and individuals within China from engaging in transactions, cooperation, or other activities with it. At the same time, it announced tighter export controls on dual-use items related to drones destined for the United States, with strict case-by-case reviews and no leniency in applying licensing facilitation. Huawei Executive Director Richard Yu said at a press conference that memory prices have risen sharply, and all smartphones may have to undergo significant price hikes going forward. On the STAR Market, BeiGene reported a 627 percent year-on-year jump in first-half net profit to 3.271 billion yuan and raised its full-year revenue guidance to between 44.9 billion and 46.2 billion yuan. Jiaocheng Ultrasonic received a formal order from a leading domestic memory manufacturer for its advanced ultrasonic scanning microscope. Lingdian Electric Control plans to invest 600 million yuan to build a new energy electronic control industrial park expansion project. Kaiweit intends to acquire 100 percent equity in Jingyi Semiconductor for 1.65 billion yuan. The preliminary inquiry for Unitree Technology's STAR Market IPO will take place on August 5, with the market estimating a valuation exceeding 40 billion yuan. The online roadshow is scheduled for August 7.

BeiGene has announced an additional investment of 300 million dollars to expand its flagship manufacturing site and clinical R&D center at the Princeton West Innovation Campus in Hopewell, New Jersey. The expansion will add small-molecule drug production capabilities. Once completed, the total investment in the site will exceed one billion dollars, making it an integrated manufacturing base for both biologics and small-molecule drugs. The new capacity will support multiple pipeline programs, including those for hematologic cancers, breast cancer, and lung cancer. The company's star drug, zanubrutinib, contributed the highest sales in the US market, reaching 761 million dollars in the first quarter of 2026. In-house production helps mitigate the potential impact of a 100 percent tariff on imported patented drugs imposed by the US.

BeiGene President and Global Head of R&D Wang Lai reviewed the development journey of the company’s core drug, the BTK inhibitor zanubrutinib, at the inaugural Great Nation New Drug Global Conference. Wang said that in 2017 and 2018 the company launched two global head-to-head Phase III trials, investing nearly all its funds at the time in what was truly a do-or-die gamble. Zanubrutinib was first approved in the United States in 2019. In 2022 a head-to-head trial proved it superior to ibrutinib in chronic lymphocytic leukemia, and after that indication was approved in the US in 2023, annual global sales topped one billion dollars that year. By 2025 total sales had reached 3.9 billion dollars, with the US market accounting for 71.8 percent of revenue. Wang noted that the company survived its first decade through sound decisions and investment. In the second phase it focused on building a global clinical development system, moving away from CROs and building its own team from 2017. Over the past two and a half years, five solid tumor programs have rapidly completed proof-of-concept and advanced to pivotal trials. From 2026, R&D will enter a third phase, relying on its own capabilities to run global large Phase III trials and introducing automation and artificial intelligence to boost efficiency.

An innovative drug with a new target, co-developed and filed for approval globally, has been approved for market launch first in China, marking a historic breakthrough where an original-target innovative drug from global multi-center development is first reported and launched in China. The National Medical Products Administration has newly approved a selective orexin-2 receptor agonist for the treatment of type 1 narcolepsy in adolescents and adults aged 16 and above. Boosted by this news, the STAR Market Healthcare ETF Huaxia turned positive in the afternoon, rising 0.58 percent to 1.05 yuan, with intraday turnover of 11.46 percent and trading volume of 41.29 million yuan. The SSE STAR Market Biomedical Index rose 0.69 percent, with constituent stocks Medici rising 8.95 percent, Yirui Technology up 8.93 percent, and BeiGene gaining 6.29 percent.

The pharmaceutical sector saw a broad-based rally, with the Penghua STAR Market Healthcare ETF climbing 4.12% to 1.12 yuan. The Shanghai STAR Market Biomedical Index it tracks surged 3.66%. Institutions note that this rebound is a value revaluation driven by a triple resonance of capital, policy, and fundamentals. The core driver is a shift of funds from the previously high-flying tech sector into innovative drugs, which have better prospects and are trading near bottom levels. On the policy front, the state continues to increase support for the entire innovative drug industry chain. On the fundamentals side, overseas business development deals keep materializing, with innovative drug BD deal values in the first half of 2026 hitting a new high despite the high base in the same period of 2025. Institutions believe that there is strong willingness for further capital allocation, and the pace of overseas commercialization is clear. Innovative drugs are the core investment theme for the pharmaceutical sector over the next three to five years, and this rebound is merely an initial warm-up. As of June 30, 2026, the top ten constituents of the Shanghai STAR Market Biomedical Index accounted for 51.84% of the total weight, including United Imaging Healthcare, Allist Pharmaceuticals, and BeiGene.

The Sci-Tech Innovation Medical ETF Huaxia has reached a latest size of 249 million yuan, a nearly one-year high. The ETF has seen net inflows for 11 consecutive days, attracting a total of 139 million yuan, with an average daily net inflow of 12.6 million yuan. Huayuan Securities believes that after a decade of innovation and transformation, innovative drugs have significantly opened a new growth curve for Chinese pharmaceutical companies. The industry has reached a considerable scale, the trend of going overseas continues, while domestic aging demand and the improvement of the medical insurance payment system continue to drive incremental growth. The Hang Seng Medical ETF Huaxia closely tracks the Hang Seng Biotechnology Index, with the top ten holdings including Innovent Biologics, BeiGene, WuXi Biologics, and others, accounting for a combined 71.34%.

In the first half of 2026, the A-share Shenwan pharmaceutical and biotech sector remained sluggish, with the index falling 14.11% year-to-date, but the innovative drug supply chain bucked the trend. Traditional pharma companies faced operational pressure: Pian Zai Huang reported its first-ever decline in both revenue and net profit since listing, while Tong Ren Tang saw its revenue drop for the first time in five years. In contrast, BeiGene achieved its first full-year profit, and Hengrui Medicine's innovative drug sales exceeded 60% of total revenue for the first time. In the first half, total out-licensing deal value for domestic innovative drugs reached 99.7 billion dollars, roughly double the full-year total for 2024. This included an 18.5 billion dollar deal between AstraZeneca and CSPC Pharmaceutical Group, and an 8.5 billion dollar deal between Eli Lilly and Innovent Biologics. On the industrial capital front, 145 A-share pharma and biotech companies implemented share buybacks in the first half, totaling over 13.3 billion yuan, with innovative drug and CXO firms leading the charge. The secondary market's valuation logic is shifting from pipeline expectations to commercialization and overseas delivery. In the last week of June, the Shenwan pharmaceutical and biotech index rebounded 10.53% in a single week, while the innovative drug segment surged 17.06%.

The innovative drug sector opened lower on July 6 before climbing higher in choppy trade. Shouyao Holdings surged by the 20 percent daily limit, Maiwei Bio and Shutaishen jumped over 10 percent, BeiGene rose more than 6 percent, and Asymchem and Hengrui Medicine gained over 4 percent. On the news front, the General Office of the National Medical Products Administration recently sought public comments on a draft notice regarding optimizing the review and approval of cell and gene therapy drugs. The draft mentions supporting clinically driven innovation in cell and gene therapy drug development, focusing on key areas such as malignant tumors and rare diseases, encouraging global simultaneous development, and including eligible cell and gene therapy drugs in a 30-day review and approval channel for innovative drug clinical trials. A research note from Orient Securities noted that Chinese companies have recently made gradual breakthroughs in frontier fields such as cell therapy and AI-driven drug discovery. Several innovative drug makers have seen their core products enter the harvest stage, while medical insurance access, commercial insurance coverage, and cost ratio optimization are jointly driving continuous profit improvement.

BeOne Medicines announced positive topline results from the Phase 3 MANGROVE study, showing that its BTK inhibitor BRUKINSA plus rituximab reduced the risk of progression or death by 43% compared to bendamustine plus rituximab in adults with previously untreated mantle cell lymphoma. The trial met its primary endpoint of progression-free survival with a hazard ratio of 0.57 and a p-value less than 0.0001. MANGROVE is the first Phase 3 trial to evaluate a chemotherapy-free, rituximab maintenance-free regimen in this setting, potentially sparing patients approximately two years of infusions. The safety profile was consistent with known profiles of both medicines, and overall survival data were immature but showed a strong trend favoring the BRUKINSA combination. Full results will be presented at an upcoming medical meeting, and global regulatory submissions are planned for the second half of 2026.

BeOne Medicines presented updated Phase 3 clinical data for its BTK inhibitor BRUKINSA at the European Hematology Association Congress. The 78-month SEQUOIA study showed a progression-free survival rate of 71.8% with BRUKINSA compared to 31% with bendamustine-rituximab in patients with chronic lymphocytic leukemia or small lymphocytic lymphoma. The safety profile remained consistent with previous studies, reinforcing BRUKINSA's role as a foundational BTK inhibitor after nearly 6.5 years of follow-up. BRUKINSA is currently approved in 80 markets for various B-cell blood cancers.