CH BIOTECH SER (08037) has fully upgraded the BNCT "drug-device-medical" closed-loop industrial model.

On August 12, 2026, CH BIOTECH SER Holdings Limited (08037) officially signed a cooperation agreement with Japan's Stella Pharma (Tokyo Stock Exchange: 4888). According to the agreement, Stella Pharma will grant CH BIOTECH SER exclusive commercialization rights for Steboronine boron drug in mainland China, including development licensing, agency, and general import agency/distribution rights. As early as May 8, 2025, the company signed with SP, intending to further authorize cooperation to localize the production of the boron drug and transfer formulation production technology. This cooperation further solidifies China's biotechnology upstream industry layout in this field. The implementation of this cooperation marks that CH BIOTECH SER has officially completed the systematic integration of the entire industrial chain for BNCT (Boron Neutron Capture Therapy)the company is no longer just a medical service operator with BNCT hospitals but is evolving into an integrated BNCT industry system that covers the research and production of boron drugs, equipment introduction and maintenance, and clinical treatment services. The integration of "pharmaceuticals, equipment, and medicine" has formed a closed loop of the entire industry chain. CH BIOTECH SER has established a clear three-tier structure in the BNCT field: Pharmaceuticalsboron drug introduction, agency, and localization. The main cooperation agreement signed with Stella Pharma not only secures the exclusive agency and distribution rights for Steboronine but also obtains the transfer of formulation production technology and exclusive manufacturing rights. This means that the company will have the capability for localized production of boron drugs in the future, upgrading from "import agency" to "local manufacturing." Equipmentintroduction and localization of production. The company has signed a contract with Sumitomo Heavy Industries, Ltd. to introduce the only globally approved BNCT treatment system, the NeuCure neutron irradiation system. This system is based on an accelerator, with core components including a cyclotron, dose calculation scheme, and related medical equipment. The company is promoting the localized production layout of equipment technology, evolving from "equipment procurement" to "technology absorption + local manufacturing." Medicinedirect-operated hospitals and regional franchises. Pengbo (Hainan) Boron Neutron Hospital is the first medical institution in China and the third in the world to carry out clinical applications of BNCT. The introduced BNCT equipment and drugs are currently the only ones officially approved for sale globally. Since officially starting to receive patients in March 2026, it has completed dozens of treatments. Based on this, the company is exploring an expansion model of direct-operated hospitals + regional franchises, aiming to promote BNCT treatment services from Hainan to the entire country through brand output, technology authorization, and operational management. Three industrial pillars create a diversified income model. Based on the "pharmaceuticals, equipment, and medicine" full industry chain layout, the company's industrial model has formed three clear pillars: First pillar: income from direct-operated and franchise hospitals. The first phase of Pengbo Hainan Boron Neutron Hospital has 40 beds and an annual reception capacity of 1,5002,500 people. Each device has a maximum annual consultation capacity of over 2,500 people. Coupled with insurance installment payment plans, the cash flow for hospital operations is highly certain. As the regional franchise model progresses, income from brand authorization, technical services, management output, and more will become new increments. Second pillar: sales from boron drug introduction, agency, and localization. Boron drugs are consumables that must be utilized for every treatment in BNCT"the equipment is the printer, and the boron drug is the ink cartridge." Equipment is a one-time purchase, while drugs are perpetual consumables. The more patients there are and the more treatments each patient receives, the greater the consumption of boron drugs, leading to continuous growth in pharmaceutical sales revenue. According to QYResearch, the China's BNCT boron drug market is expected to reach $138 million by 2032. Once the company secures exclusive agency and local production rights, it will directly share in the entire market increment. Third pillar: introduction of cyclotron technology and localization of production. The core of the BNCT treatment systemthe cyclotronis the most technologically complex component of the equipment. Through deep cooperation, the company is advancing technology absorption and localization in tandem with equipment introduction. Once local manufacturing is achieved, equipment sales, maintenance services, and consumables will become another sustainable profit source. On the eve of the BNCT industry explosion, the Chinese market is the core increment. The global BNCT industry is on the verge of a commercial explosion. YH Research data shows that the global BNCT market is expected to experience a compound annual growth rate of 36.3% from 2026 to 2032, with the market size soaring from $528 million to $3.39 billion. Currently, BNCT has only been approved for head and neck cancer, and clinical progress on indications for meningioma, breast cancer, and pancreatic cancer is steadily advancing. The addition of each new indication will open a new round of market increments. Value reassessment: from "hospital stock" to "BNCT industrial chain leader." The market currently positions CH BIOTECH SER as "a medical service company with BNCT hospitals." However, the company's strategy is essentially to take boron drug localization as the entry point, supported by equipment localization and relying on a hospital network, to create an integrated system integrator for China's BNCT industry encompassing "pharmaceuticals, equipment, and medicine." A comparable logic illustrates that printer giants profit from "ink cartridges," while pharmaceutical and medical equipment companies create sustained cash flow from "consumables." If CH BIOTECH SER is valued as a "system integrator for the entire BNCT industry chain in China," the growth potential is markedly different from that of a simple hospital operation service provider. BGI Sanghua and well-known investor Gong Hongjia have already entered the fieldcontinued investment from industry opinion leaders signifies firm confidence in the future development prospects of BNCT. The day the market reassesses it may be drawing near.