Guo Guangchang: Source innovation is the only way for China's pharmaceutical industry, and open cooperation is the best way to accelerate innovation

Today, I am very happy to gather with all old and new friends in Shanghai to participate in the 3rd Pujiang Biomedical Source Innovation Conference.
Shanghai is a place where Fosun deeply cultivates, and it is also a place where Fosun innovation sets sail. From starting a business in the early years to now deeply integrating core industries such as big health and intelligent manufacturing into urban development, we have always resonated with Shanghai and achieved each other. Especially in the field of biomedicine, with Shanghai as its innovation base,Fosun Pharma has built a global R & D and operation network. We deeply feel that Shanghai's excellent business environment, rich human resources and complete industrial chain are the most fertile soil for the growth of innovative companies.
Currently, Fosun Pharma maintains a steady development trend in the field of medicine and health, with operating income and net profit continuing to grow. More importantly, our proportion of innovative drug revenue has steadily increased, and now it has become the company's core growth engine. In the first three quarters of 2025, Fosun Pharma's innovative drug revenue exceeded 6.7 billion yuan, a year-on-year increase of 18%, which strengthened our determination to deeply innovate at the source.
"Standing at this critical moment today, China's medical innovation is being seen and recognized more and more around the world. We are more convinced than ever that source innovation is the industry's path to the future. The only way to open cooperation is the best way to accelerate innovation.”
Regarding the source innovation of biomedicine, I would like to share a few experiences.
Nowadays, technology is developing with each passing day, but as a company, our resources are limited, and it is impossible to do and invest in every technology. Therefore, we must fully map in different innovative research and development directions, start with clinical needs, and find the most suitable The most promising innovation direction, of course, still depends on the efficacy, the possibility of cure, and the improvement of patient experience and quality of life. Our Fuhong Hanlius PD-1 drug Hans-like has also achieved a global breakthrough in the field of gastric cancer treatment. It will create an era of gastric cancer treatment without chemotherapy. It is now available in dozens of countries and regions, and its launch in the United States is also in full swing. In addition, our Fuhong Hanlius pipeline also includes products with huge potential such as HLX43 and 22. Fosun Kerry's second CAR-T cell therapy product has also made new breakthroughs and is steadily entering the market. Our innovation capabilities have achieved the leap from "following" to "running in parallel" and "leading". These achievements are all our practice of adhering to the principle that "patient benefit is the first principle."
Medicine and health are an important field of AI applications. We have always attached great importance to the application of AI technology in vertical fields. Starting from 2022, Fosun Pharma will carry out strategic cooperation with AI pharmaceutical company InSilicon Intelligence to jointly promote AI drug research and development on related targets. Fuhong Hanlius also combines artificial intelligence and physical modeling to jointly explore the research and development path of antibody drugs, ADCs and other drugs. In addition, we also have relevant explorations in AI diagnosis of medical devices and AI health services to further create an AI+X smart medical ecosystem. I believe that AI has more and broader application prospects in the field of medical innovation, and it must be a leapfrog and disruptive development.
Innovation still requires leveraging systematic capabilities and strengthening open cooperation
Innovation is never the result of working alone or working behind closed doors, but the result of resource integration and capability synergy. Fosun has a rich ecology and rich industrial application scenarios. Such systematic integration capabilities must release maximum value through open cooperation.
On the one hand, we continue to deepen collaboration with scientific research universities and top institutes around the world to allow academic innovation results to reach clinical practice faster and benefit patients; coupled with the government's financial support to policy guarantees, we accelerate the process of innovation through multi-party collaboration between government + scientific research + enterprises.
At the same time, we also use Fosun's ecological capabilities to explore innovation paths in cross-border integration. For example, the "Rising Insurance" product launched by Fosun United Health Insurance takes the core concept of "proactive health management" and deeply embeds Ruijin Hospital's high-quality medical resources and Fosun's digital and intelligent health management into insurance services. Through Fuyun Health's independently developed Star Guardian Watch products and intelligent health management platform, combined with AI large model intelligent diagnosis and treatment, continue to track users 'health conditions, which is equivalent to installing the "Health Management Section of Ruijin Hospital" on the wrist. Put it in your pocket. Such innovative health insurance products also hope to cooperate with more top medical structures in the future so that more users can enjoy the health management services of first-class large hospitals.
Over the past 30 years, we have been insisting on building global capabilities. On the one hand, we have continued to introduce world-class technologically leading companies and products. For example, the Da Vinci surgicalrobotthat we cooperate with Intuitive Medicine not only introduces products, but also establishes Intuitive Medicine's largest integrated R & D, production, and training base in Asia, which has quickly been domesticated. There are also magnetic wave knife treatment technology that cooperates with Medical Television Technology. These are star companies and star products in subdivided fields.
This week is also the eighth consecutive year that Fosun has participated in the CIIE full-time. We are also very pleased to witness the continuous implementation of the global innovation results of Fosun's cooperation over the years in China, changing from "exhibits" to "commodities".
In addition to introducing words, we regard going global as a very important ability. Fosun Pharma has long begun to go global and strengthen global BD capabilities. This year, Fosun Pharma also has two completely independently developed products that have reached BD licensing cooperation with foreign companies, with a potential total amount of more than US$1 billion.
But I think what is more important is that if China's pharmaceutical companies want to become competitive in the global market, in addition to the results we have seen in the accumulation of R & D pipelines, we must also establish our own global registration capabilities, sales capabilities, and clinical capabilities. Therefore, in the future, Fosun Pharma, in addition to license out for some of our core innovative product pipelines, we must also build our capabilities in some important markets, so that we can create a more virtuous cycle and feed back our innovative research and development through global revenue growth. I believe that this path will be difficult, but it is also the only way for Fosun Pharma and China's innovative drugs to continue to maintain long-term competitiveness and compete with the world's major pharmaceutical companies.
Standing at this critical moment today, China's medical innovation is being seen and recognized more and more around the world. We are more convinced than ever that innovation at the source is the only way to future industries. Open cooperation is the best way to accelerate innovation.Fosun hopes to join hands with all partners here to build a world-class pharmaceutical company originating in China based on Shanghai, a hot land for innovation, and address the needs of patients around the world, and strive to achieve more people The vision of living to 121 healthy and happy.