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

Does AI · Ge Lan’s Self-Investment in Independent Managed Funds Highlight Confidence in the Innovative Drug Sector?

In the second half of 2025, the internal holdings of Ge Lan’s three funds showed significant divergence.

On March 31, China Europe Fund Investment Director and star fund manager Ge Lan disclosed the 2025 annual reports of three public funds she manages, along with their hidden major holdings.

Specifically, both China Europe Medical & Health and China Europe Medical Innovation, which are themed around pharmaceuticals, significantly increased their holdings of Zhaoyan New Drug. Meanwhile, China Europe Medical Innovation also re-bought Oupumai, Boteng Shares, Sanyuan Guojian, and for the first time established a position in Tebao Biotech.

China Europe Mingrui New Starting Point re-bought Industrial Fuxin, Huayou Cobalt, Tianqi Lithium, and also established new positions in Air China, China Southern Airlines, and Luoyang Molybdenum for the first time.

Additionally, Pengpai News reporters noted that compared to the fund shareholder data disclosed in mid-2025, internal staff of China Europe Fund reduced their holdings of China Europe Medical & Health and China Europe Mingrui New Starting Point by different proportions in the second half of last year, with China Europe Mingrui New Starting Point being completely sold off by company executives and department heads. Conversely, internal staff of China Europe Fund and Ge Lan herself increased their holdings of China Europe Medical Innovation.

China Europe Medical & Health Significantly Increased Holdings in Inke Medical and Zhaoyan New Drug

Currently, Ge Lan manages three public funds: China Europe Medical & Health, China Europe Medical Innovation, and China Europe Mingrui New Starting Point Hybrid. The largest of these is China Europe Medical & Health, jointly managed by Ge Lan and Zhao Lei.

Specifically, as of the end of 2025, China Europe Medical & Health held 130 stocks. According to the previously disclosed Q4 2025 report, the top ten holdings remained unchanged from Q3 2025, in order: WuXi AppTec (603259.SH), Hengrui Medicine (600276.SH), Kanglong Chemical (300759.SZ), Tigermed (300347.SZ), Baili Tianheng (688506.SH), Kelun Pharma (002821.SZ), Xinli Tai (002294.SZ), Haisike (002653.SZ), Kelun Pharmaceutical (002322.SZ), BeiGene (688235.SH).

From the latest annual report data, the hidden major holdings of China Europe Medical & Health also remained unchanged, all being previous holdings. Specifically, the 11th to 20th positions are: Huadong Medicine (000963.SZ), Ailis (688578.SH), Haoyuan Medicine (688131.SH), Zeking Pharmaceuticals-U (688266.SH), Zhaoyan New Drug (603127.SH), Huitai Medical (688517.SH), Tebao Biotech (688278.SH), Baipusai (301080.SZ), Inke Medical (300677.SZ), Jiuzhou Pharmaceutical (603456.SH).

Among these, China Europe Medical & Health made large increases in Inke Medical and Zhaoyan New Drug, with positions increasing by 8,270.10% and 1,629.99%, respectively; it also increased holdings in Haoyuan Medicine, Tebao Biotech, Baipusai, and Jiuzhou Pharmaceutical.

In contrast, Huadong Medicine, Ailis, Zeking Pharmaceuticals-U, and Huitai Medical saw reductions to varying degrees.

Pengpai News reporters noted that compared to the fund shareholder data disclosed in mid-2025, internal staff of China Europe Fund reduced their holdings of China Europe Medical & Health by 584.7k units in the second half of last year; simultaneously, senior management and heads of investment and research departments of China Europe Fund decreased their holdings of China Europe Medical & Health Hybrid A from the range of “100k-500k units” to “0-100k units”; Ge Lan and Zhao Lei’s holdings remained in the “500k-1M units” range.

China Europe Medical Innovation Re-establishes Position in Tebao Biotech

Looking at China Europe Medical Innovation, also a pharmaceutical-themed fund managed solely by Ge Lan.

In terms of rebalancing, China Europe Medical Innovation re-bought Zhaoyan New Drug A-shares, Oupumai (688293.SH), Boteng Shares (300363.SZ), Sanyuan Guojian (688336.SH) in the second half of 2025, and for the first time established a position in Tebao Biotech (688278.SH).

Additionally, Hengrui Medicine (600276.SH) and Xinli Tai (002294.SZ) were reduced to varying degrees.

Unlike China Europe Medical & Health Hybrid, internal staff of China Europe Fund increased their holdings of China Europe Medical Innovation by 203.7k units during the second half of 2025; meanwhile, Ge Lan’s own holdings of China Europe Medical Innovation stock A increased from the “500k-1M units” range to over 1 million units.

China Europe Mingrui New Starting Point Re-buys Industrial Fuxin

Compared to the previous two funds, the top ten holdings of China Europe Mingrui New Starting Point are not limited to the pharmaceutical sector.

According to the latest disclosed annual report, in the second half of 2025, China Europe Mingrui New Starting Point re-bought Industrial Fuxin (601138.SH), Huayou Cobalt (603799.SH), Tianqi Lithium (002466.SZ), and established new positions in Air China (601111.SH), China Southern Airlines (600029.SH), and Luoyang Molybdenum (603993.SH).

Additionally, it increased holdings in Kweichow Moutai (600519.SH), Huatian Electronics (002463.SZ), and Cambrian (688256.SH). Notably, Ge Lan’s increase in Huatian Electronics was as high as 14,482.71%.

It is worth mentioning that during the second half of 2025, senior management and heads of investment and research departments of China Europe Fund completely sold off their holdings of China Europe Mingrui New Starting Point; by the end of last year, Ge Lan’s holdings of this fund decreased from the “100k-500k units” range to “0-100k units,” with internal staff of China Europe Fund collectively reducing holdings by 1.63M units.

Still Optimistic About the Innovation Drug Industry Chain

Looking ahead to 2026, Ge Lan stated in the 2025 annual report that she remains optimistic about the innovation drug industry chain, while paying attention to the domestication and international expansion of medical devices, and the reversal of challenges in consumer healthcare.

She pointed out that the innovation drug sector is expected to remain the core investment theme. From an industry trend perspective, leading domestic innovative drug companies have accumulated rich experience in international licensing, their core assets are highly recognized by international pharmaceutical companies, and BD (business development) going overseas is likely to continue throughout the year. Moreover, after the normalization of BD transactions, the more important aspect is the gradual validation of the global value of products post-transaction, which depends on the speed of global clinical progress, the quality of data releases, and changes in the competitive landscape.

Meanwhile, Ge Lan believes that the pharmaceutical R&D outsourcing industry is expected to continue its recovery. With the surge of domestic innovative drug exports and increased activity in the primary market, the biomedical financing environment continues to improve, and industry demand is likely to keep rising. Companies’ on-hand orders remain high, order prices stabilize, and some areas show signs of price recovery, which could improve corporate financials.

“Medical device sector is expected to see an inflection point in 2026,” Ge Lan said. The dual drivers of domestication and international expansion may reshape the competitive landscape. In medical equipment, tendering and bidding are proceeding smoothly; after some companies clear excess inventory, performance is expected to enter a recovery phase. Overseas markets for orthopedic consumables and in vitro diagnostics are gradually becoming second growth drivers, with diversification of export destinations and a shift toward higher value-added categories continuing. Progress in AI medical and brain-computer interface fields is rapid; brain-computer interfaces have entered a critical stage of technological breakthroughs transitioning to commercialization, benefiting from policy support and standardization, which could accelerate industrialization.

Additionally, Ge Lan stated that consumer healthcare may see a reversal of difficulties. After long-term adjustments, sectors like ophthalmology, dentistry, and aesthetic medicine are recovering as consumer confidence gradually returns. Leading companies leveraging brand and service advantages are expected to rebound. Under the silver economy, there is huge growth potential in rehabilitation, nursing, and chronic disease management.

“Overall, China’s pharmaceutical industry is shifting from following to leading on the global stage. The export of innovative drugs, recovery of R&D outsourcing, domestication and internationalization of medical devices, and recovery of consumer healthcare will remain core industry drivers. We maintain a long-term value investment framework, continue to focus on related fields, and aim to generate long-term investment returns for investors,” Ge Lan said.