In the second half of last year, increased holdings in Zhao Yan New Drug and built positions in Tebao Biotech. Euro-China Fund's Ge Lan personally purchased shares of its proprietary pharmaceutical fund.

In the second half of 2025, there was a clear divergence in the internal holdings of three funds under Ge Lan.

On March 31, Zhongou Fund’s Chief Investment Officer and star fund manager Ge Lan disclosed the 2025 annual reports of three publicly offered funds she manages, revealing their hidden heavy holdings as well.

Specifically, both Zhongou Medical Health and Zhongou Medical Innovation—both themed around pharmaceuticals—significantly increased their holdings of Innovent Biologics, while Zhongou Medical Innovation also re-bought Ophun (OUPA?), Bosun? (Borteng?), Sansheng Guojian, and for the first time built a position in Tebao Bio.

Zhongou Mingrui New Start re-bought Foxconn Industrial Internet, Huayou Cobalt, and Tianqi Lithium, and for the first time built positions in Air China, China Southern Airlines, and Luoyang Mo.

In addition, a reporter from The Paper noted that, compared with the fund unit-holder data disclosed in mid-2025, in the second half of last year, the internal employees of Zhongou Fund implemented different proportion reductions in Zhongou Medical Health and Zhongou Mingrui New Start managed by Ge Lan; among them, Zhongou Mingrui New Start was completely sold off by the company’s executives and department heads. In contrast, the internal employees of Zhongou Fund and Ge Lan herself increased their holdings of Zhongou Medical Innovation.

Zhongou Medical Health makes a big increase in holdings of Inke Medical and Innovent Biologics

At present, the three public funds managed by Ge Lan are Zhongou Medical Health, Zhongou Medical Innovation, and Zhongou Mingrui New Start Mixed. Among them, the largest product is Zhongou Medical Health, which is currently co-managed by Ge Lan and Zhao Lei.

Specifically, as of the end of 2025, Zhongou Medical Health held 130 stocks. According to the previously disclosed 2025 Q4 report, the top ten hidden heavy holdings of Zhongou Medical Health did not change compared with the third quarter of 2025, in order: WuXi AppTec (603259.SH), Hisun Pharmaceutical (600276.SH), Tigermed (300759.SZ), Innovent? (300347.SZ), BeiGene? (688506.SH), Kailaiying (002821.SZ), Xinlish? (002294.SZ), His? (002653.SZ), Kelun Pharmaceutical (002322.SZ), BeiGene-U (688235.SH).

From the annual report data disclosed most recently, the hidden heavy holdings of Zhongou Medical Health also saw no changes in individual stocks; they are all targets that already existed in previous holdings. Specifically, the heavy holdings ranked from No. 11 to No. 20 are: East China Pharmaceutical (000963.SZ), Alai? (688578.SH), Hao Yuan Pharma? (688131.SH), Zejing Pharmaceutical-U (688266.SH), Innovent Biologics (603127.SH), Huitai Medical (688517.SH), Tebao Bio (688278.SH), Boops? (301080.SZ), Inke Medical (300677.SZ), and Zhizhou Pharmaceutical (603456.SH).

Among them, Zhongou Medical Health made a big increase in holdings of Inke Medical and Innovent Biologics, with added proportions as high as 8270.10% and 1629.99% respectively; meanwhile, it also increased holdings of Hao Yuan Pharma, Tebao Bio, Boops?, and Zhizhou Pharmaceutical.

In contrast, the four stocks East China Pharmaceutical, Alai?, Zejing Pharmaceutical-U, and Huitai Medical were reduced to varying degrees.

A reporter from The Paper noted that, compared with the fund unit-holder data disclosed in mid-2025, internal employees of Zhongou Fund, in the second half of 2025, reduced holdings of Zhongou Medical Health Hybrid by 584,700 units; meanwhile, the quantity range of holdings by Zhongou Fund’s senior management personnel and the heads of its fund investment and research departments in Zhongou Medical Health Hybrid A also fell from “100,000–500,000 units” to “0–100,000 units”; the holdings range for Ge Lan and Zhao Lei remained unchanged at “500,000–1,000,000 units.”

Zhongou Medical Innovation establishes a position in Tebao Bio

Looking next at Zhongou Medical Innovation, another pharmaceuticals-themed fund, this fund is still managed solely by Ge Lan.

In terms of rebalancing and switching shares, in the second half of 2025, Zhongou Medical Innovation re-bought Innovent Biologics’ A/H shares, Oup? (688293.SH), Borteng Co., Ltd. (300363.SZ), and Sansheng Guojian (688336.SH), and for the first time built a position in Tebao Bio (688278.SH).

In addition, Hisun Pharmaceutical (600276.SH) and Xinlish? (002294.SZ) were reduced to varying degrees.

Unlike Zhongou Medical Health Hybrid, in the second half of 2025, internal employees of Zhongou Fund increased their holdings of Zhongou Medical Innovation by 203,700 units; at the same time, the holdings range by Ge Lan herself for Zhongou Medical Innovation Stock A rose from “500,000–1,000,000 units” to above 1,000,000 units.

Zhongou Mingrui New Start re-buys Foxconn Industrial Internet

Compared with the two funds mentioned above, the industries to which the top ten holdings of Zhongou Mingrui New Start belong are not limited to the pharmaceuticals sector.

According to the latest disclosed annual report data, in the second half of 2025, Zhongou Mingrui New Start re-bought Foxconn Industrial Internet (601138.SH), Huayou Cobalt (603799.SH), and Tianqi Lithium (002466.SZ), and for the first time built positions in Air China (601111.SH), China Southern Airlines (600029.SH), and Luoyang Mo (603993.SH).

In addition, Zhongou Mingrui New Start also increased holdings of Kweichow Moutai (600519.SH), GoerTek? (002463.SZ), and Cambricon (688256.SH). Among them, Ge Lan’s increase in holdings of GoerTek? was as high as 14,482.71%.

It is worth mentioning that, during the second half of 2025, senior management at Zhongou Fund and the head(s) of the fund investment and research department cleared out and sold Zhongou Mingrui New Start. By the end of last year, Ge Lan’s holdings in the fund also fell from “100,000–500,000 units” to “0–100,000 units,” and internal employees of Zhongou Fund collectively reduced holdings by 1,628,700 units.

Still bullish on the innovation drug industry chain

Looking ahead to 2026, in its 2025 annual report, Ge Lan said she still remains bullish on the innovation drug industry chain, while also paying attention to the reversal of the predicament in domestically made medical devices going to sea and consumption healthcare.

Ge Lan pointed out that the innovation drug segment is expected to remain the core line of the industry’s investment. From industry trends, China’s leading innovative drug companies have already accumulated extensive experience in overseas licensing; core assets have gained high recognition from international pharmaceutical companies; and BD going overseas may still run throughout the year. In addition, after BD transactions become routine, more important than that is the gradual validation of the global value of the products after the transaction. This depends on global clinical advancement speed, the quality of data releases, and changes in competitive dynamics.

At the same time, Ge Lan believes that the pharmaceutical R&D outsourcing industry is likely to continue its recovery trend. With the overseas innovation-drug boom and increased activity in the primary market, the financing environment for biopharmaceuticals will continue to improve, and industry demand is expected to keep rising. Companies’ in-hand orders will remain at relatively high levels; order prices will stabilize; in some areas there are signs of price repair; and companies’ financial statements are expected to improve.

“Overall, the China medical and pharmaceutical industry’s role in the global context is transforming from following to leading. Innovation-drug going overseas, the recovery of R&D outsourcing, domestically made medical devices going overseas, and the rebound in consumption healthcare will remain the industry’s core driving forces. We maintain a long-term value investment framework, continue to focus on relevant areas, and hope to deliver long-term investment returns for investors,” Ge Lan said.

Ge Lan added that the consumption healthcare sector is expected to see a turnaround from its difficulties. After long-term adjustments, sectors such as ophthalmology, dentistry, and medical aesthetics are poised to recover as consumer confidence gradually returns; leading companies are expected to rebound thanks to brand and service advantages. Against the backdrop of an aging population, consumer growth potential in areas such as rehabilitation and nursing and chronic disease management is huge.

“Overall, the China medical and pharmaceutical industry’s role in the global context is transforming from following to leading. Innovation-drug going overseas, the recovery of R&D outsourcing, domestically made medical devices going overseas, and the rebound in consumption healthcare will remain the industry’s core driving forces. We maintain a long-term value investment framework, continue to focus on relevant areas, and hope to deliver long-term investment returns for investors,” Ge Lan said.

（Source: The Paper）