Changchun High-Tech: The Company Will Continue to Strengthen Its Core Team Through Internal Development and External Recruitment

Securities Star News, Changchun High & New Technology Industry Co., Ltd. (000661) responded to investor questions on the investor relations platform on March 20.

Investor: Has the company considered recruiting talented individuals who truly understand R&D, management, and sales from excellent peer companies to lead the company’s R&D, sales, and daily management? For example, outstanding companies in the same industry, such as Tech-Bio and Anke Bio.

Changchun High & New Secretary: Hello, although our company is a leading enterprise in the industry, we always maintain an open and progressive mindset, highly value talent development, and adhere to a market-oriented talent recruitment approach. We will continue to strengthen our core team through internal training and external recruitment, supporting the company’s high-quality development with high-caliber talent. Thank you!

Investor: Why does the company always focus on R&D for rare disease patients? Investing a lot of financial resources, but what’s the use of the R&D results? No wonder the company’s performance keeps declining!

Changchun High & New Secretary: Hello, our R&D pipeline considers multiple factors such as clinical needs, policy support, commercial sustainability, and social responsibility. For example, recently, we obtained orphan drug designation from the U.S. Food and Drug Administration for GenSci128, a treatment for pancreatic cancer. It has previously been approved in China and the U.S. to conduct clinical trials for advanced or metastatic solid tumors carrying TP53 Y220C mutations. Thank you!

Investor: Every time you reply, you say “all expenses are strictly approved through internal controls.” If internal controls are so strict, why are costs increasing and profits decreasing? Is this internal control system meant to manage money, or just to stamp approval and absolve responsibility for spending?

Changchun High & New Secretary: Hello, I have responded to you multiple times before. Currently, the company is transitioning from a single blockbuster product to diversified innovation. R&D investments mainly focus on building technological platforms, developing products in clinical stages, and pipeline layout—core strategic directions. The related sales expenses are necessary investments for maintaining core product markets and commercializing new products during this development phase. Thank you!

Investor: Does the company currently have the ability to sustain operations? Is there a risk of ST or delisting? If these questions cannot be answered directly, please at least clearly inform investors what reasonable expectations we can still have for your company.

Changchun High & New Secretary: The company has the ability to sustain operations and has not identified any related risks so far. Thank you!

Investor: In response to doubts about R&D efficiency, the secretary only says “we are in a period of transformation pain.” How long will this “pain period” last? Ten years or twenty years? Can you, like Innovent Biologics, provide clear milestone guidance instead of always using some early pipeline “IND” approvals to fool the market?

Changchun High & New Secretary: Hello, “transformation pain period” is not a vague statement but a clear strategic cycle as the company transitions from a single growth hormone to multi-pipeline innovative drugs. We understand market concerns about R&D efficiency and milestone clarity. The company will continue to improve R&D efficiency, focus on advancing pipelines with clear clinical value and commercialization potential, and enhance disclosure of ongoing pipeline information. We aim to respond to market concerns with more tangible and verifiable phased results. Thank you!

The above content is compiled from publicly available information by Securities Star, generated by AI algorithms (Network Information Backup 310104345710301240019), and does not constitute investment advice.