The long history of humanity's battle against cancer is marked by each evolution in treatment, offering new hope for countless lives. While traditional radiotherapy and chemotherapy often grapple with significant collateral damage, a precise therapy known as Boron Neutron Capture Therapy (BNCT) is emerging as a groundbreaking new approach. This is not science fiction but a reality unfolding in Boao, Hainan. On June 2nd, CH BIOTECH SER (08037) announced its intention to sell the entire equity interests of its Standard Pathological Laboratory and its associated healthcare business for HKD 3.5 million. On the surface, this appears as a routine divestment. However, a deeper look reveals it is a strategic departure from mediocrity and a declaration of the company's full-fledged commitment to scaling the peak of cancer treatment.
The target companies for sale carried a net liability of approximately HKD 29.01 million and had been consistently recording losses due to intense market competition and high costs in Hong Kong. For a listed company, these were underperforming assets dragging down financials. Yet, true strategists look beyond short-term gains. The core of this divestment is the "reallocation of resources." CH BIOTECH SER is choosing not to exhaust its resources in fiercely competitive markets but to concentrate its efforts on the most strategically valuable front: BNCT. This move is not just about stemming losses but about enabling a focused offensive.
The announcement clearly stated that the disposal would optimize the Group's business performance and support its overall strategic development. The long-term BNCT business is positioned to become the company's "second growth curve" and a primary source of future revenue and profit. On the scales of capital allocation, the inefficient testing business is giving way to the high-growth-potential cancer therapy segment—a calculated and clear strategic shift.
Strategic Positioning and Competitive Edge
Where does CH BIOTECH SER's confidence stem from? The answer lies within the Pengbo (Hainan) Boron Neutron Hospital in Boao Lecheng, Hainan. As the first medical institution on the mainland approved for BNCT clinical application, Pengbo Hospital is not just a physical treatment center but the core fortress of the company's strategic moat. The hospital has introduced the NeuCure® system and Steboronine boron drug, the world's first and currently only officially approved "drug-device combination" for BNCT. CH BIOTECH SER holds the exclusive agency rights for this combination in Greater China (excluding Taiwan), granting it a significant first-mover advantage in this niche field.
As of June 1st, 2026, having been operational for just over two months, Pengbo Hospital had successfully completed 30 BNCT clinical treatments. Notably, the hospital has begun receiving consultation inquiries from international patients in countries like Russia, the United States, and Vietnam. The successful treatment of the first foreign patient, Sergei, not only validated BNCT's remarkable efficacy against refractory head and neck tumors but also signaled that China has developed internationally competitive capabilities in this medical domain.
Market Potential and Growth Trajectory
BNCT is not a new concept, with research spanning nearly 90 years. However, it was only in March 2020 that overseas markets first approved a BNCT device and boron drug as a combination product, which was subsequently included in that country's national health insurance in June of the same year, marking the technology's transition from the laboratory to large-scale clinical application. According to a report by YH Research titled "Global Boron Neutron Capture Therapy (BNCT) Top Companies Market Share and Ranking in 2026," the global BNCT market is expanding at an unprecedented rate, projected to grow from approximately $528 million in 2026 to about $3.39 billion by 2032, representing a compound annual growth rate of 36.3%. These figures reflect not just statistics but a surging market demand.
From a demand perspective, China sees over 610,000 new cases of head and neck cancer annually and approximately 90,000 new cases of glioblastoma, conditions with high recurrence and mortality rates where traditional treatments often fail. For these patients, BNCT represents a "last hope" and a "best choice." Supportive policies are also providing a strong tailwind. From the National Health Commission including BNCT in the 14th Five-Year Plan for large medical equipment allocation to the National Healthcare Security Administration's project guidelines and the special policies of the Hainan Boao Lecheng Pilot Zone, regulatory green lights are paving the way for BNCT's commercialization.
Operational Advantages and Future Vision
In terms of technical advantages, compared to the lengthy course of dozens of sessions required for traditional radiotherapy, BNCT requires only 1-2 irradiations, each lasting less than an hour. This "painless, non-invasive, efficient, and convenient" characteristic suggests it could rapidly replace a significant portion of the traditional radiotherapy market once widely adopted.
CH BIOTECH SER's vision extends far beyond being a mere "equipment agent." The company is building a comprehensive "one-stop solution" encompassing equipment sales, installation, hospital design, turnkey construction, maintenance services, and boron drug production. Starting from Hainan, the strategy aims to radiate nationwide and potentially export management models, transforming advanced radiotherapy hospitals into a replicable, asset-light business model. The strategic blueprint is both clear and ambitious.
Just as it holds proprietary patent technology in the CAR-T cell therapy field, CH BIOTECH SER understands the principle that "technology is king." In the BNCT arena, the company has strategically appointed Yin Ye and Zhang Xiao as Group Directors, preparing its senior management for this business pivot. Yin Ye's involvement is significant, representing the endorsement of two major industry leaders, BGI Group and Songhe Capital. His active advocacy for BNCT on social media signals not just personal confidence but the backing and expectations of these influential entities. Zhang Xiao, former President of Varian Greater China, who led Varian to a leadership position in proton therapy equipment in China and globally, joins the board with the clear intent to replicate such success in this fifth-generation radiotherapy technology.
As BNCT technology in China completes the breakthrough from "0 to 1" and begins the journey of scaling from "1 to N," CH BIOTECH SER has already gained a head start. This is a high-stakes endeavor involving life, technology, and capital, with the future of humanity's fight against cancer in the balance. Now, on the shores of the South China Sea in Boao, a beam of neutron light is beginning to illuminate a new era in China's battle against cancer.