Earnings release
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement , make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement . ESSEX 1ZAT ESSEX BIO - TECHNOLOGY LIMITED 億 勝 生物 科技 有限公司 ( Incorporated in the Cayman Islands with limited liability ) ( Stock Code : 1061 ) INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2026 The board ( the “ Board ” ) of directors ( the “ Directors ” ) of Essex Bio - Technology Limited ( the " Company " ) presents the unaudited interim condensed consolidated financial statements of the Company and its subsidiaries ( collectively , the " Group " ) for the six months ended 30 June 2026 together with the comparative figures for the corresponding period in 2025 and the relevant explanatory notes as set out below . FINANCIAL HIGHLIGHTS Results Turnover Profit for the period Presentation Currency in HK $ For the six months ended 30 June 2026 HK $ ' 000 Comparison Results in RMB For the six months ended Increase / 30 June 2025 ( decrease ) For the six months ended 30 June 2026 HK $ ' 000 % RMB'000 For the six months ended 30 June 2025 RMB'000 Increase / ( decrease ) % 784,694 876,535 ( 10.5 ) 688,526 815,699 ( 15.6 ) 110,720 163,401 ( 32.2 ) 97,151 152,060 ( 36.1 ) For the six months ended 30 June 2026 For the six months ended 30 June 2025 Financial ratios Gross profit margin ( Note 1 ) 83.6 % 88.8 % Net profit margin ( Note 2 ) 14.1 % 18.6 % - Return on equity ( Note 3 ) Earnings per share Basic and diluted Dividend per ordinary share - Interim 4.3 % 7.2 % HK19.53 cents HK28.82 cents HK5.0 cents HK7.0 cents 1
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2 Presentation Currency in HK$ Comparison Results in RMB As at As at Increase/ (decrease) As at As at Increase/ (decrease) 30 June 2026 31 December 2025 30 June 2026 31 December 2025 HK$’000 HK$’000 % RMB’000 RMB’000 % Financial position Total assets 3,615,981 3,490,761 3.6 3,131,526 3,137,080 (0.2) Total liabilities 1,066,721 1,077,675 (1.0) 923,806 968,486 (4.6) Net assets 2,549,260 2,413,086 5.6 2,207,720 2,168,594 1.8 Cash and cash equivalents 806,634 782,730 3.1 698,564 703,425 (0.7) As at As at 30 June 2026 31 December 2025 Financial ratios Current ratio (Note 4) 2.15 2.11 Gearing ratio (Note 5) 0.30 0.31 Notes: 1 Gross profit margin: Gross profit/Turnover x 100% 2 Net profit margin: Profit for the period/Turnover x 100% 3 Return on equity: Profit for the period/Total equity x 100% 4 Current ratio: Total current assets/Total current liabilities 5 Gearing ratio: Total liabilities/Total assets
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3 CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) Notes HK$’000 HK$’000 Turnover 4 & 5 784,694 876,535 Cost of sales (128,434) (97,932) Gross profit 656,260 778,603 Other revenue, and other gains and losses 6 19,732 (691) Distribution and selling expenses (396,517) (471,638) Administrative expenses (126,878) (99,740) Finance costs 7 (4,629) (2,800) Share of loss of an associate – (161) Profit before income tax 8 147,968 203,573 Income tax 9 (37,248) (40,172) Profit for the period 110,720 163,401 Other comprehensive income Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of financial statements of foreign operations 71,982 38,771 Items that will not be reclassified subsequently to profit or loss: Changes in fair value of equity instruments at fair value through other comprehensive income (4,178) (17,723) Other comprehensive income for the period 67,804 21,048 Total comprehensive income for the period 178,524 184,449 Earnings per share attributable to owners of the Company Basic and diluted 11 HK19.53 cents HK28.82 cents
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4 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 30 June 2026 At 31 December 2025 (Unaudited) (Audited) Notes HK$’000 HK$’000 Non-current assets Property, plant and equipment 12 522,113 497,822 Right-of-use assets 22,378 19,307 Land use rights 14,293 13,958 Goodwill 58,437 56,547 Other intangible assets 13 1,295,463 1,266,182 Financial assets at fair value through other comprehensive income 15 10,384 14,562 Financial assets at fair value through profit or loss 15 183 380 Deposits and prepayments 18 3,449 1,878 Total non-current assets 1,926,700 1,870,636 Current assets Inventories 16 87,039 79,398 Trade and other receivables 17 722,227 690,664 Deposits and prepayments 18 53,545 48,960 Convertible loan receivables 14 18,738 16,961 Financial assets at fair value through profit or loss 15 1,098 1,412 Cash and cash equivalents 806,634 782,730 Total current assets 1,689,281 1,620,125 Total assets 3,615,981 3,490,761 Current liabilities Trade and other payables 19 555,921 571,311 Bank borrowings 20 94,920 65,007 Lease liabilities 5,070 4,094 Current tax liabilities 128,168 126,493 Total current liabilities 784,079 766,905
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5 Net current assets 905,202 853,220 Total assets less current liabilities 2,831,902 2,723,856 Non-current liabilities Bank borrowings 20 229,563 260,642 Lease liabilities 19,437 17,162 Deferred tax liabilities 33,642 32,966 Total non-current liabilities 282,642 310,770 Total liabilities 1,066,721 1,077,675 NET ASSETS 2,549,260 2,413,086 Capital and reserves attributable to owners of the Company Share capital 21(a) 56,701 56,701 Treasury shares 21(b) (2,660) – Reserves 2,495,219 2,356,385 TOTAL EQUITY 2,549,260 2,413,086 At 30 June 2026 At 31 December 2025 (Unaudited) (Audited) Notes HK$’000 HK$’000
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6 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Equity attributable to owners of the Company Share capital Treasury shares Share premium Capital reserve Statutory surplus reserve Foreign currency translation reserve Fair value through other comprehensive income reserve Retained earnings Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 At 1 January 2025 56,713 – 73,278 362 90,683 (156,912) (66,455) 2,126,051 2,123,720 Profit for the period – – – – – – – 163,401 163,401 Other comprehensive income: – Changes in fair value of equity instruments at fair value through other comprehensive income – – – – – – (17,723) – (17,723) – Exchange differences on translation of financial statements of foreign operations – – – – – 38,771 – – 38,771 Total comprehensive income for the period – – – – – 38,771 (17,723) 163,401 184,449 Dividend paid – – – – – – – (34,020) (34,020) Shares repurchased and cancelled (12) – – – – – – (313) (325) At 30 June 2025 (Unaudited) 56,701 – 73,278 362 90,683 (118,141) (84,178) 2,255,119 2,273,824 At 1 January 2026 56,701 – 73,278 362 90,683 (84,739) (82,599) 2,359,400 2,413,086 Profit for the period – – – – – – – 110,720 110,720 Other comprehensive income: – Changes in fair value of equity instruments at fair value through other comprehensive income – – – – – – (4,178) – (4,178) – Exchange differences on translation of financial statements of foreign operations – – – – – 71,982 – – 71,982 Total comprehensive income for the period – – – – – 71,982 (4,178) 110,720 178,524 Dividend paid – – – – – – – (39,690) (39,690) Shares repurchased and held as treasury shares – (2,660) – – – – – – (2,660) At 30 June 2026 (Unaudited) 56,701 (2,660) 73,278 362 90,683 (12,757) (86,777) 2,430,430 2,549,260
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7 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) Notes HK$’000 HK$’000 Cash flows from operating activities Profit before income tax 147,968 203,573 Adjustments for: Interest income from convertible loan receivables 6 (314) (947) Interest income from bank deposits 6 (7,281) (4,474) Change in fair value of financial assets at fair value through profit or loss 6 (1,266) 23 Gain on disposal of other intangible assets 6 (6,838) – Expenses from litigation claim, net 6 – 10,067 Finance costs 7 4,629 2,800 Share of loss of an associate – 161 Amortisation of land use rights 8 189 178 Amortisation of other intangible assets 8 13,559 12,342 Depreciation of property, plant and equipment 8 19,217 14,102 Depreciation of right-of-use assets 8 2,697 1,835 Exchange losses/(gains), net 1,500 (10,774) Loss on disposal of property, plant and equipment 8 28 22 Write-off of inventories 8 583 422 Operating cash flows before working capital changes 174,671 229,330 Increase in inventories (5,231) (4,566) Decrease/(increase) in trade and other receivables 8,674 (61,799) (Increase)/decrease in deposits and prepayments (3,208) 5,975 Decrease in trade and other payables (35,360) (24,559) Cash generated from operations 139,546 144,381 Tax paid (40,862) (21,894) Net cash generated from operating activities 98,684 122,487
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8 Cash flows from investing activities Acquisition of property, plant and equipment (25,720) (59,359) Deposits paid for acquisition of property, plant and equipment (1,906) (11,552) Increase in other intangible assets (25,192) (44,850) Bank interest received 7,281 4,474 Proceeds from disposal of property, plant and equipment 2,411 183 Proceeds from disposal of other intangible assets 7,978 – Net cash used in investing activities (35,148) (111,104) Cash flows from financing activities Proceeds from bank borrowings 11,396 124,345 Repayments of bank borrowings (20,945) (25,947) Payment of lease liabilities (3,085) (2,117) Payments for shares bought back (2,660) (325) Interest paid on bank borrowings (4,846) (2,965) Dividends paid to owners of the Company (39,690) (34,020) Net cash (used in)/generated from financing activities (59,830) 58,971 Net increase in cash and cash equivalents 3,706 70,354 Cash and cash equivalents at beginning of period 782,730 557,167 Effect of foreign exchange rate changes on cash and cash equivalents 20,198 13,012 Cash and cash equivalents at end of period 806,634 640,533 Analysis of balances of cash and cash equivalents Cash and bank balances 521,451 433,983 Non-pledged time deposits with original maturity of less than three months when acquired 285,183 206,550 Cash and cash equivalents as stated in the condensed consolidated statement of financial position and the condensed consolidated statement of cash flows 806,634 640,533 For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) HK$’000 HK$’000
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9 NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. GENERAL Essex Bio-Technology Limited is a limited liability company incorporated in the Cayman Islands on 31 July 2000 under Companies Act Chapter 22 (Act 3 of 1961, as consolidated and revised) of the Cayman Islands. Its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange ”) (Stock code: 1061). The address of its registered office is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands. Its principal place of business is located at Room 3206, West Tower, Shun Tak Centre, 168-200 Connaught Road Central, Hong Kong. The Group, comprising the Company and its subsidiaries, is principally engaged in investment holding, and development, manufacture and sale of biologic drugs. 2. BASIS OF PREPARATION These interim condensed consolidated financial statements for the six months ended 30 June 2026 have been prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants (the “HKICPA”) and the applicable disclosures required by the Rules Governing the Listing of Securities on the Stock Exchange. These interim condensed consolidated financial statements are presented in Hong Kong Dollars ( “HK$”), unless otherwise stated, and should be read in conjunction with the Group ’s annual financial statements for the year ended 31 December 2025 (the “2025 Financial Statements ”), which have been prepared in accordance with HKFRS Accounting Standards issued by the HKICPA. Taxes on income in the interim periods are accrued using the tax rate that would be applicable to each group entity. 3. ACCOUNTING POLICIES The accounting policies adopted in the preparation of these interim condensed consolidated financial statements are consistent with those followed in the preparation of the 2025 Financial Statements, except for the adoption of amended standards effective for annual periods beginning on or after 1 January 2026. The adoption of these amended standards has no material impact on the Group ’s interim condensed consolidated financial statements. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
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10 4. SEGMENT REPORTING The Group manages its businesses by business lines. The segment information is reported internally to the chief operating decision-maker (i.e. executive Directors) for the purposes of resources allocation and performance assessment. The Group ’s reportable and operating segments for financial reporting purposes are as follows: – Ophthalmology: Development, manufacture and/or sale of products including Beifushu ® series (Beifushu ® eye drops, Beifushu ® eye gel and Beifushu ® unit-dose eye drops), Tobramycin Eye Drops, Levofloxacin Eye Drops, Sodium Hyaluronate Eye Drops, Moxifloxacin Hydrochloride Eye Drops, Diquafosol Sodium Eye Drops, 適麗順 ®卵磷脂絡合碘膠囊 (Shilishun Iodized Lecithin Capsules*), Soft Hydrophilic Contact Lens and other medical devices for myopia control and prevention such as eye-protection lamp and Seewant defocus customised glasses; – Surgical: Development, manufacture and/or sale of products including Beifuji ® series (Beifuji ® spray, Beifuji ® lyophilised powder and Beifuxin ® gel), Carisolv ® dental caries removal gel, Portable Ultraviolet Phototherapy Devices, PELNAC TM collagen-based artificial dermis, SCALGEN TM double-layered artificial dermis and Osteopore ’s bioresorbable implants (Osteomesh ® and Osteoplug ® ） for dental surgery in Singapore; and – Healthcare and Partner Services: 伢典醫生 DR.Y ADIAN® oral care products, online and offline healthcare services and products, contract manufacturing organisation (CMO)/contract development and manufacturing organisation (CDMO) service and trades in equipment and parts. (a) Reportable segments The chief operating decision-maker monitors the results of its business units separately for the purpose of making decision about resources allocation and performance assessment. Segment performance is evaluated based on the results from the reportable segments as explained in the table below. For the six months ended 30 June 2026 Ophthalmology Surgical Healthcare and Partner Services Total (Unaudited) (Unaudited) (Unaudited) (Unaudited) HK$’000 HK$’000 HK$’000 HK$’000 Reportable segment revenue – Revenue from external customers 367,213 341,230 76,251 784,694 Reportable segment profit 93,619 88,574 8,569 190,762
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11 For the six months ended 30 June 2025 Ophthalmology Surgical Healthcare and Partner Services Total (Unaudited) (Unaudited) (Unaudited) (Unaudited) HK$’000 HK$’000 HK$’000 HK$’000 Reportable segment revenue – Revenue from external customers 417,358 448,965 10,212 876,535 Reportable segment profit 113,486 120,946 7,636 242,068 The totals presented for the Group ’s operating segments were reconciled to the Group ’s key financial figures as presented in the interim condensed consolidated financial statements as follows: For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) HK$’000 HK$’000 Reportable segment profit 190,762 242,068 Unallocated corporate income and expenses, net (39,431) (35,672) Change in fair value of financial assets at fair value through profit or loss ( “FVTPL”) 1,266 (23) Finance costs (4,629) (2,800) Profit before income tax 147,968 203,573 Major corporate expenses comprised mainly the staff costs including Directors ’ emoluments. Analysis of segment assets and liabilities has not been presented as the measure of segment assets and liabilities is not regularly provided to the executive Directors. (b) Geographical information (i) Revenue from external customers For the six months ended 30 June 2026, the Group ’s revenue from external customers of HK$778.4 million and HK$6.3 million (For the six months ended 30 June 2025: HK$871.7 million and HK$4.8 million) was derived from its operations in the People ’s Republic of China (the “PRC”) and overseas, respectively.
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12 (ii) Non-current assets At 30 June 2026 At 31 December 2025 (Unaudited) (Audited) HK$’000 HK$’000 PRC 1,538,302 1,482,008 Hong Kong 271,687 272,534 Overseas 106,144 101,152 1,916,133 1,855,694 The non-current asset information above excludes convertible loan receivables, financial assets at fair value through other comprehensive income ( “FVTOCI ”) and financial assets at FVTPL, and is based on the physical locations of the respective assets, except for goodwill and other intangible assets of which is based on the area of the group entities ’ operations. (c) Information about major customers For the six months ended 30 June 2026, revenue of HK$209.2 million (For the six months ended 30 June 2025: HK$230.4 million and HK$89.2 million) was derived from sales to one customer (For the six months ended 30 June 2025: two customers, respectively), which individually accounted for over 10% of the Group ’s total revenue. 5. TURNOVER Turnover represents the sales value of goods supplied to customers and service income (net of sales tax, value-added tax, commercial discounts and sales returns), further details of which are set out in note 4.
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13 6. OTHER REVENUE, AND OTHER GAINS AND LOSSES For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) HK$’000 HK$’000 Interest income from convertible loan receivables 314 947 Government grants 854 1,495 Interest income from bank deposits 7,281 4,474 Sundry income 3,179 2,483 Change in fair value of financial assets at FVTPL 1,266 (23) Gain on disposal of other intangible assets 6,838 – Expenses from litigation claim, net – (10,067) 19,732 (691) 7. FINANCE COSTS For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) HK$’000 HK$’000 Interest expense on bank borrowings 4,847 2,965 Interest expense on lease liabilities 494 497 Less: Amount capitalised (712) (662) 4,629 2,800
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14 8. PROFIT BEFORE INCOME TAX This is arrived at after charging/(crediting): For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) HK$’000 HK$’000 Amortisation of land use rights 189 178 Amortisation of other intangible assets 13,559 12,342 Auditor ’s remuneration 988 880 Cost of inventories 101,581 94,934 Cost of services 26,270 2,576 Depreciation of property, plant and equipment 19,217 14,102 Depreciation of right-of-use assets 2,697 1,835 Employee costs excluding Directors ’ emoluments: – Salaries and other benefits 135,005 147,453 – Pension fund contributions 12,361 11,353 Exchange losses/(gains), net 84 (12,017) Research and development costs recognised as expenses 25,786 21,664 Write-off of inventories 583 422 Loss on disposal of property, plant and equipment 28 22 9. INCOME TAX No provision for Hong Kong profits tax has been made as the Group has no assessable profit arising in Hong Kong. The Group ’s major operating subsidiary in Zhuhai, the PRC, was established and carries on business in the Special Economic Zones of the PRC as a high technology enterprise. This subsidiary has obtained a 高新技術企業證書 (High Technology Enterprise Certificate) and is entitled to enjoy the enterprise income tax at the concessionary rate of 15%. The income tax rate applicable to other PRC subsidiaries is 25%. Enterprise income tax of the Group ’s other operating subsidiaries is calculated at tax rates prevailing in the jurisdictions in which they operate.
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15 10. DIVIDENDS The Board has resolved on 5 August 2026 to declare an interim dividend of HK$0.05 (For the six months ended 30 June 2025: HK$0.07) per ordinary share for the six months ended 30 June 2026, which is payable in cash. 11. EARNINGS PER SHARE The calculation of the basic and diluted earnings per share attributable to owners of the Company is based on the following data: Earnings For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) HK$’000 HK$’000 Profit attributable to owners of the Company for the purposes of calculating basic and diluted earnings per share 110,720 163,401 Number of shares For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) Weighted average number of ordinary shares for the purposes of calculating basic and diluted earnings per share 566,971,492 567,035,271
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16 12. PROPERTY, PLANT AND EQUIPMENT Buildings and leasehold improvements Plant and machinery Furniture, fixtures and equipment Motor vehicles Construction in progress Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Cost: At 1 January 2025 114,197 200,356 82,587 6,636 158,858 562,634 Additions 9,179 14,350 3,863 1,319 86,222 114,933 Acquisition of a subsidiary – 1,937 1,230 – – 3,167 Disposals – (737) (323) (2,343) – (3,403) Transfers – 33,823 224 – (34,047) – Exchange adjustment 5,503 10,338 3,895 250 8,237 28,223 At 31 December 2025 128,879 260,067 91,476 5,862 219,270 705,554 Additions 491 475 2,031 – 24,628 27,625 Disposals (39) (2,365) (65) – – (2,469) Exchange adjustment 4,729 9,694 3,125 180 8,301 26,029 At 30 June 2026 (Unaudited) 134,060 267,871 96,567 6,042 252,199 756,739 Accumulated depreciation: At 1 January 2025 24,280 94,315 44,709 5,350 – 168,654 Charge for the year 5,547 14,168 10,878 363 – 30,956 Acquisition of a subsidiary – 1,738 1,210 – – 2,948 Disposals – (687) (272) (2,191) – (3,150) Exchange adjustment 1,252 4,627 2,272 173 – 8,324 At 31 December 2025 31,079 114,161 58,797 3,695 – 207,732 Charge for the period 3,870 8,911 6,166 270 – 19,217 Disposals – (12) (18) – – (30) Exchange adjustment 1,191 4,340 2,067 109 – 7,707 At 30 June 2026 (Unaudited) 36,140 127,400 67,012 4,074 – 234,626 Carrying amount: At 30 June 2026 (Unaudited) 97,920 140,471 29,555 1,968 252,199 522,113 At 31 December 2025 (Audited) 97,800 145,906 32,679 2,167 219,270 497,822
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17 13. OTHER INTANGIBLE ASSETS Development expenditure Acquired intangible assets Total HK$’000 HK$’000 HK$’000 Cost: At 1 January 2025 316,958 929,879 1,246,837 Additions 6,009 61,092 67,101 Acquisition of a subsidiary 64,510 7,719 72,229 Exchange adjustment 10,435 34,851 45,286 At 31 December 2025 397,912 1,033,541 1,431,453 Additions 8,100 17,092 25,192 Disposals – (22,793) (22,793) Exchange adjustment 8,853 30,196 39,049 At 30 June 2026 (Unaudited) 414,865 1,058,036 1,472,901 Accumulated amortisation and impairment losses: At 1 January 2025 60,594 58,589 119,183 Amortisation 4,801 20,167 24,968 Acquisition of a subsidiary – 6,678 6,678 Impairment 8,466 – 8,466 Exchange adjustment 2,936 3,040 5,976 At 31 December 2025 76,797 88,474 165,271 Amortisation 3,280 10,279 13,559 Disposals – (6,838) (6,838) Exchange adjustment 2,767 2,679 5,446 At 30 June 2026 (Unaudited) 82,844 94,594 177,438 Carrying amount: At 30 June 2026 (Unaudited) 332,021 963,442 # 1,295,463 At 31 December 2025 (Audited) 321,115 945,067 # 1,266,182 # The carrying amount of acquired intangible assets as at 30 June 2026 mainly included (i) the development cost incurred in an ophthalmic solution containing SkQ1 as its sole active pharmaceutical ingredient of approximately HK$356.8 million (31 December 2025: approximately HK$350.8 million); (ii) the development cost incurred in a pharmaceutical product that contains an anti-vascular endothelial growth factor (anti-VEGF) as a drug substance of approximately HK$485.2 million (31 December 2025: approximately HK$451.5 million); and (iii) the carrying amount of intellectual property rights and right of Marketing Authorisation Holder relating to 適麗順 ®卵磷脂絡合碘膠囊 (Shilishun Iodized Lecithin Capsules*) of approximately HK$88.0 million (31 December 2025: approximately HK$91.8 million).
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18 14. CONVERTIBLE LOAN RECEIV ABLES In 2018, the Group entered into an agreement (and as supplemented and revised from time to time) with an independent third party (the “Investee ”) to subscribe for a convertible loan with principal amount of US$4.5 million (approximately HK$35.3 million) which carries interest at 5% per annum with maturity on 31 July 2026 (the “Convertible Loan ”). The extension of the maturity date is under negotiation and has not been finalised as at the date of this announcement. The entire principal amount of the Convertible Loan can be converted into such number of shares representing 45% of the enlarged and fully diluted share capital of the Investee at any time before the maturity date. In the event that no conversion has been taken place before maturity date, the Investee shall repay the Group on the maturity date the outstanding principal amount plus an amount calculated by the Group which would yield a return for the Group on the principal amount of the Convertible Loan of 8% per annum. Up to 30 June 2026, the principal amount of US$1.6 million (approximately HK$12.5 million) was disbursed to the Investee and it is classified as financial assets at FVTPL upon the initial recognition. The Group ’s convertible loan receivables are as follows: HK$’000 As at 30 June 2026 Convertible Loan, classified under current assets 18,738 HK$’000 As at 31 December 2025 Convertible Loan, classified under current assets 16,961 The movements in fair value of convertible loan receivables classified as level 3 in the fair value hierarchy during the six months ended 30 June 2026 are as follows: HK$’000 At 1 January 2026 16,961 Change in fair value recognised in profit or loss 1,777 At 30 June 2026 (Unaudited) 18,738 As at 30 June 2026, the fair value of the Convertible Loan is calculated using Binomial Share Option Model with the following key assumptions: Stock price US$0.0079 Conversion price US$1 Expected volatility 76% The key significant unobservable inputs to determine the fair value of convertible loan receivables are the stock price and expected volatility. An increase in the stock price and expected volatility would result in an increase in the fair value of convertible loan receivables, and vice versa.
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19 15. FINANCIAL ASSETS AT FAIR V ALUE THROUGH OTHER COMPREHENSIVE INCOME AND FINANCIAL ASSETS AT FAIR V ALUE THROUGH PROFIT OR LOSS At 30 June 2026 At 31 December 2025 (Unaudited) (Audited) HK$’000 HK$’000 Non-current Equity investments designated at FVTOCI (Note (a)) – Listed equity investments (Note (b)) 10,384 14,562 Equity investments designated at FVTPL (Note (d)) – Unlisted equity investments (Note (c)) 183 380 Current Equity investments designated at FVTPL (Note (d)) – Listed equity investments (Note (b)) 1,098 1,412 Notes: (a) The equity investments were irrevocably designated at FVTOCI as the Group considers these investments to be strategic in nature. (b) The balance as at 30 June 2026 represents four (31 December 2025: four) listed equity securities which are listed on the NASDAQ Stock Market or the Over-The-Counter (OTC) Market of the United States, namely AC Immune SA, Humacyte Inc., CytoMed Therapeutics Limited and Abpro Holdings, Inc. (31 December 2025: AC Immune SA, Humacyte Inc., CytoMed Therapeutics Limited and Abpro Holdings, Inc.). The fair value was based on quoted market price as at 30 June 2026. (c) The balance as at 30 June 2026 represents one (31 December 2025: one) unlisted equity investment, namely the investment in series pre-A preferred stock of a private company incorporated in Singapore (the “Equity ”) (31 December 2025: the Equity). (d) The equity investments were irrevocably designated at FVTPL as the Group considers these investments to be held for trading. As at 30 June 2026, the fair value of investment in the Equity classified as level 2 in the fair value hierarchy is calculated using Value Allocation Model with the following key assumptions: Expected volatility 79% Risk-free interest rate 1.64%
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20 16. INVENTORIES At 30 June 2026 At 31 December 2025 (Unaudited) (Audited) HK$’000 HK$’000 Raw materials 12,762 14,368 Work in progress 10,022 6,724 Finished goods 64,255 58,306 87,039 79,398 17. TRADE AND OTHER RECEIV ABLES At 30 June 2026 At 31 December 2025 (Unaudited) (Audited) HK$’000 HK$’000 Trade receivables 674,453 661,502 Impairment (5,136) (4,950) 669,317 656,552 Other receivables 52,910 34,112 722,227 690,664 The Group ’s policy is to allow an average credit period of 90 days to its trade customers. The ageing analysis of trade receivables as at the end of the reporting period, based on the invoice date and net of impairment, is as follows: At 30 June 2026 At 31 December 2025 (Unaudited) (Audited) HK$’000 HK$’000 0-60 days 382,087 470,353 61-90 days 110,153 61,946 Over 90 days 177,077 124,253 669,317 656,552
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21 18. DEPOSITS AND PREPAYMENTS At 30 June 2026 At 31 December 2025 (Unaudited) (Audited) HK$’000 HK$’000 Deposits paid for acquisition of property, plant and equipment 3,449 1,878 Prepayments for purchase of finished goods 25,249 24,138 Other deposits 2,466 2,346 Other prepayments 25,830 22,476 Total 56,994 50,838 Less: Current portion (53,545) (48,960) Non-current portion 3,449 1,878 19. TRADE AND OTHER PAYABLES At 30 June 2026 At 31 December 2025 (Unaudited) (Audited) HK$’000 HK$’000 Trade payables 9,930 11,563 Other payables and accruals (Note) 545,991 559,748 555,921 571,311 Note: Other payables and accruals included the accruals for sales and marketing costs of approximately HK$460.5 million (31 December 2025: approximately HK$458.9 million).
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22 The ageing analysis of trade payables as at the end of the reporting period, based on the invoice date, is as follows: At 30 June 2026 At 31 December 2025 (Unaudited) (Audited) HK$’000 HK$’000 0-60 days 7,127 8,516 61-90 days 612 1,222 Over 90 days 2,191 1,825 9,930 11,563 20. BANK BORROWINGS As at 30 June 2026, certain of the bank borrowings and banking facilities were secured by corporate guarantees provided by the Company and two of its subsidiaries. As at 31 December 2025, certain of the bank borrowings and banking facilities were secured by corporate guarantees provided by the Company and two of its subsidiaries. As at 30 June 2026, the Group obtained non-revolving banking facilities of approximately HK$984.8 million (31 December 2025: approximately HK$952.7 million), of which approximately HK$412.3 million (31 December 2025: approximately HK$389.8 million) was utilised. 21. SHARE CAPITAL AND TREASURY SHARES (a) Share capital Authorised At 30 June 2026 At 31 December 2025 Number HK$’000 Number HK$’000 (Unaudited) (Unaudited) (Audited) (Audited) Ordinary shares at HK$0.1 each 1,000,000,000 100,000 1,000,000,000 100,000 Issued and fully paid Number HK$’000 At 1 January 2025 567,129,000 56,713 Shares repurchased and cancelled (123,000) (12) At 31 December 2025, 1 January 2026 and 30 June 2026 (Unaudited) 567,006,000 56,701
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23 (b) Treasury shares Number HK$’000 At 1 January 2025, 31 December 2025 and 1 January 2026 – – Shares repurchased and held as treasury shares (Note) 1,006,000 2,660 At 30 June 2026 (Unaudited) 1,006,000 2,660 Note: During the six months ended 30 June 2026, the Company repurchased 1,006,000 of its shares on the Stock Exchange for a total consideration of approximately HK$2,659,780. The repurchased shares were subsequently held as treasury shares as at the date of this announcement. 22. FAIR V ALUE MEASUREMENT OF FINANCIAL INSTRUMENTS The fair value measurement of the Group ’s financial assets and liabilities utilises market observable inputs and data as far as possible. Inputs used in determining fair value measurements are categorised into different levels based on how observable the inputs used in the valuation technique utilised are (the “fair value hierarchy ”): Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). (i) Financial assets measured at fair value As at the end of the reporting period, convertible loan receivables and equity investments included in the interim condensed consolidated financial statements require measurement at, and disclosure of, fair value. The fair value of financial instruments with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices. The valuation techniques and significant unobservable inputs used in determining the fair value measurement of level 2 and level 3 financial instruments, as well as the relationship between key unobservable inputs and fair value are set out in notes (iii) and (iv) below.
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24 (ii) Financial instruments not measured at fair value Financial instruments not measured at fair value include cash and cash equivalents, trade and other receivables, trade and other payables, bank borrowings and lease liabilities. The carrying amounts of cash and cash equivalents, trade and other receivables, trade and other payables and current portion of bank borrowings and lease liabilities approximate to their fair values due to the short term maturities of these instruments. The fair values of non-current portion of bank borrowings and lease liabilities for disclosure purposes have been determined using discounted cash flow models and are classified as level 3 in the fair value hierarchy. Significant inputs include the discount rate used to reflect the credit risks of the Group. (iii) Information about level 2 fair value measurement The fair values of the financial instruments included in the level 2 category have been determined with reference to generally accepted pricing models based on quoted prices for identical or similar assets or liabilities in markets that are not active. (iv) Information about level 3 fair value measurement The fair values of the financial instruments included in the level 3 category as at the end of the current period have been determined by the Directors with reference to the valuation performed by International Valuation Limited, an independent firm of professionally qualified valuers, details of which are set out in note 14. The following table provides an analysis of financial instruments carried at fair value by level of the fair value hierarchy: As at 30 June 2026 Level 1 Level 2 Level 3 Total Recurring fair value measurement (Unaudited) (Unaudited) (Unaudited) (Unaudited) Financial assets: HK$’000 HK$’000 HK$’000 HK$’000 Listed equity investments 11,482 – – 11,482 Unlisted equity investments – 183 – 183 Convertible loan receivables – – 18,738 18,738 As at 31 December 2025 Level 1 Level 2 Level 3 Total Recurring fair value measurement (Audited) (Audited) (Audited) (Audited) Financial assets: HK$’000 HK$’000 HK$’000 HK$’000 Listed equity investments 15,974 – – 15,974 Unlisted equity investments – 380 – 380 Convertible loan receivables – – 16,961 16,961
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25 There was no transfer under the fair value hierarchy classification during the six months ended 30 June 2026. Please refer to notes 14 and 15 for the respective valuation techniques and the inputs used in the fair value measurement of financial assets catergorised within level 2 and level 3 of the fair value hierarchy. 23. CAPITAL COMMITMENTS At 30 June 2026 At 31 December 2025 (Unaudited) (Audited) HK$’000 HK$’000 Contracted but not provided for: – property, plant and equipment 1,241 347 – development expenditure 8,708 9,765 – acquired intangible assets 44,133 57,336 – construction of the new factory 115,351 135,819 – expansion of the existing factory 598 516 170,031 203,783 24. RELATED PARTY TRANSACTIONS Details of compensation paid to key management of the Group (all being the Directors) are as follows: For the six months ended 30 June 2026 2025 (Unaudited) (Unaudited) HK$’000 HK$’000 Salaries and other benefits 3,731 3,615 Pension fund contributions 14 44 3,745 3,659 25. APPROV AL OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The interim condensed consolidated financial statements were approved and authorised for issue by the Board on 5 August 2026.
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26 MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS REVIEW AND PROSPECTS Essex Bio-Technology Limited (the “Company ”) and its subsidiaries (the “Group”) envision becoming a great and socially responsible corporation. Strategically, the Group develops, manufactures and commercialises genetically engineered therapeutic recombinant bovine basic fibroblast growth factor (“rb-bFGF ”), leveraging its established mechanism of action in cellular proliferation, differentiation and migration. The Group ’s turnover is primarily driven by its ophthalmology segment ( “Ophthalmology ”) and surgical (encompassing wound care and healing) segment ( “Surgical ”), which cater to various medical fields including dermatology, stomatology, obstetrics and gynaecology. Furthermore, the Group is expanding its portfolio through strategic investments in emerging therapeutics, focusing on oncology, orthopaedics and neurology. Currently the Group has six commercialised biologics, collectively referred to as the “bFGF Series ”, which are marketed and sold in the People ’s Republic of China (the “PRC”). These products include: • Beifushu ® eye drops, Beifushu ® eye gel and Beifushu ® unit-dose eye drops for treatment of ocular wounds; and • Beifuji ® spray, Beifuji ® lyophilised powder and Beifuxin ® gel for treatment of surface wounds. The bFGF Series are developed and manufactured by the Group. Three of the bFGF Series were approved by 國家藥品監督管理局 (National Medical Products Administration ( “NMPA ”)) as Category I biologics, and four are listed on the National Drug List for Basic Medical Insurance, Work-Related Injury Insurance and Maternity Insurance issued by the National Healthcare Security Administration and the Ministry of Human Resources and Social Security of the PRC. Collectively, the combined turnover of the bFGF Series represented about 78.2% of the Group ’s total turnover for the period under review. In addition to the bFGF Series, the Group has a portfolio of commercialised preservative-free unit-dose eye drops (including Tobramycin, Levofloxacin, Sodium Hyaluronate, Moxifloxacin Hydrochloride and Diquafosol Sodium Eye Drops) and multi-dose eye drops (including Diquafosol Sodium and Sodium Hyaluronate Eye Drops).
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27 Other key products include: • 適麗順 ®卵磷脂絡合碘膠囊 (Shilishun Iodized Lecithin Capsules*), an oral ophthalmic product for treating central serous chorioretinopathy, central exudative chorioretinopathy, vitreous haemorrhage, vitreous opacities and central retinal vein occlusion, etc, has become one of the Group ’s core products and growth drivers since 2022; • Carisolv ® dental caries removal gel and 伢典醫生 DR.Y ADIAN® oral care products; and • a range of products and medical devices complementing the Group ’s therapeutics business of Ophthalmology and Surgical, including Soft Hydrophilic Contact Lens, Portable Ultraviolet Phototherapy Devices, PELNAC TM collagen-based artificial dermis, SCALGEN TM double-layered artificial dermis, Osteopore ’s bioresorbable implants (Osteomesh ® and Osteoplug ® ） for dental surgery in Singapore and other medical devices for myopia control and prevention such as eye-protection lamp and Seewant defocus customised glasses. To drive mid-term and long-term growth, the Group maintains a robust pipeline of multi-project in research and development ( “R&D”) initiatives at various stages of clinical programmes, focusing on unit-dose ophthalmic products and biologics including growth factors and antibodies. Significant Business Development Activities We are committed to pragmatically investing in new products and technologies to strengthen the Group ’s product and R&D pipeline as near to mid-term growth driver in ophthalmology and long-term plan for new therapeutics in oncology. Major investments in ophthalmic products that are currently in an advanced stage of clinical development are outlined as follows: SkQ1 Product A late-stage clinical development of SkQ1 for dry eye disease (the “SkQ1 Product ”), as disclosed in the announcement of the Company dated 24 February 2021, achieved a positive outcome from the second phase 3 clinical trial (VISTA-2). The clinical trial study repeated statistically significant positive results on key predefined secondary end-point (Central Corneal Fluorescein Staining). The read-out of clearing of central staining of the cornea (defined as zero staining in central cornea) reveals the potential of SkQ1 in addressing oxidative stress in dry eye diseases. As disclosed in the announcement of the Company dated 13 October 2022, the Group strategically and successfully secured (i) a patent assignment deed; and (ii) a patent and know-how licence agreement relating to SkQ1 in the field of ophthalmology exclusively for the global market (the “Global Rights ”).
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28 The Group is in the final stages of completing the transfer of chemistry, manufacturing and controls (CMC), know-how and intellectual property rights relating to SkQ1. Concurrently, the Group is re-establishing the VISTA programme with regulators for mitigating any identifiable risks before continuing with the clinical trial. The aforementioned tasks will inevitably be time-consuming due to external factors and technical challenges involved. The board (the “Board”) of directors of the Company (the “Directors ”) will keep shareholders and investors informed as and when appropriate about the development status. The total actual investment cost of approximately HK$356.8 million has been incurred for the clinical development of the SkQ1 Product and the Global Rights, and is presented as “Acquired Intangible Assets ” under the Group ’s interim condensed consolidated financial statements as at 30 June 2026. The investment cost represented 9.9% of the Group ’s total assets as at 30 June 2026. According to Frost & Sullivan, the estimated number of patients with moderate-to-severe dry eye disease was around 112.7 million in the PRC in 2025. It is expected that the size of the potential market of the SkQ1 Product will be significant. For the purpose of on-going development and execution of the SkQ1 Product and the Global Rights of SkQ1 (exclusive of the PRC), the said asset is in the process of being carved out and injected into DunaVision Pte Ltd, Singapore, which is newly established and a wholly-owned subsidiary of the Company. Anti-VEGF Licensed Product In 2020, the Group entered into a co-development and exclusive license agreement (the “Co- Development License Agreement ”) with Shanghai Henlius Biotech, Inc. ( “Henlius ”) to co-develop a pharmaceutical product that contains an anti-vascular endothelial growth factor ( “anti-VEGF ”) as a drug substance (the “Anti-VEGF Licensed Product ”), which is intended for the treatment of exudative (wet) age-related macular degeneration ( “wet-AMD ”). On 22 February 2023, the Group entered into an amendment agreement with Henlius to amend certain terms of the Co-Development License Agreement, which include payments for regulatory and commercial sales milestones and development costs in respect of the Anti-VEGF Licensed Product. Please refer to the announcement of the Company dated 22 February 2023 and the 2022 annual results announcement of the Company dated 8 March 2023 for further details.
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29 As at the date of this announcement, the recombinant anti-VEGF humanised monoclonal antibody injection HLX04-O ( “HLX04-O ”) for the treatment of wet-AMD has been approved to commence the phase 3 clinical trial in Australia, the United States, Singapore, Russia, Serbia and European Union countries such as Hungary, Spain, Latvia, the Czech Republic and Poland. So far, the first patient has been dosed in a phase 3 clinical study for HLX04-O for the treatment of wet-AMD in the PRC, Latvia, Australia and the United States successively, and the last patient last visit was completed. In July 2023, the phase 1/2 clinical study of HLX04-O for the treatment of wet-AMD has shown its safety and tolerability and demonstrated preliminary efficacy. In April 2025, the phase 3 clinical study of HLX04-O in Chinese patients with wet-AMD (AURA-1) met the primary study endpoint. In August 2025, the Biologics License Application (BLA) was accepted by NMPA in the PRC. In June 2026, the phase 3 clinical study of HLX04-O in patients with wet-AMD (AURA-2) met the study primary endpoint. Henlius is the holding company of a group principally engaged in (i) the research and development, production and sale of monoclonal antibody (mAb) drugs and the provision of related technical services (except for the development and application of human stem cells, genetic diagnosis and therapy technology); and (ii) the transfer of its own technology and provision of the related technology consultation services. Total maximum commitment in relation to the co-development of the Anti-VEGF Licensed Product with Henlius is US$67.0 million (equivalent to approximately HK$525.4 million). Total actual investment cost of approximately HK$485.2 million is presented as “Acquired Intangible Assets ” under the Group ’s interim condensed consolidated financial statements as at 30 June 2026. The investment cost represented 13.4% of the Group ’s total assets as at 30 June 2026. The Anti-VEGF Licensed Product can be used for treating wet-AMD, diabetic macular edema, macular edema caused by retinal vein occlusion and myopic choroidal neovascularisation. According to Frost & Sullivan, the estimated number of patients with these 4 categories of disease was around 16.4 million in the PRC in 2025. Assuming each patient applies 4 doses in the first year of treatment and 2 to 3 doses in subsequent years, it is expected that the size of the potential market of the Anti-VEGF Licensed Product will be significant. Apart from the investments in the SkQ1 Product and the Anti-VEGF Licensed Product, as at 30 June 2026 and the date of this announcement, each of the investments made and held by the Group represented less than 5% of the Group ’s total assets. Other Business Development Activities In January 2026, the Group entered into an exclusive distribution agreement with Osteopore International Pte Ltd ( “Osteopore ”) for Osteopore ’s innovative dental, orthodontic, and maxillofacial products in the PRC, Hong Kong, and Macau. The collaboration with Osteopore establishes a milestone of the Group in the stomatology market and expands the range of the Group ’s dental, orthodontic, and maxillofacial solutions, which will together benefit the Group in striving for sustainable growth in the PRC market.
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30 In February 2026, the Group participated in the Asia-Pacific Academy of Ophthalmology Congress 2026 (the “Congress ”). During the Congress, the Group hosted a dedicated booth showcasing key products and pipeline assets from its ophthalmology portfolio, and to engage with ophthalmologists, healthcare professionals, and industry partners across Asia-Pacific. The Group ’s presence at the Congress underscored the Group ’s dedication to advancing ophthalmic care through clinically proven, first-in- class and best-in-class therapeutic solutions, while strengthening collaboration with leading eye care institutions and professionals across the region. HONOURS AND A W ARDS OBTAINED IN 2026 珠海億勝生物製藥有限公司 (Zhuhai Essex Bio-Pharmaceutical Company Limited*), a wholly-owned subsidiary of the Company, was awarded 2026 年珠海市藥品安全公益事業愛心企業 (2026 Caring Enterprise for Pharmaceutical Safety Public Welfare in Zhuhai*). The Group ’s Beifushu ® and Beifuxin ® were included in 廣東省重點商標保護名錄 (List of Key Trademarks in Guangdong Province*). In addition, the Company was awarded 中國卓越 IR－ 卓越數字化投資者關係獎 (China Excellent IR – Excellent Digitalised Investor Relations Award*). MARKET DEVELOPMENT As at 30 June 2026, the Group operates an extensive network of 47 regional sales offices across the PRC and a strategic base in Singapore to facilitate market access into Southeast Asian countries. To drive sustainable growth and expansion for our current and future products, the Group has been investing relentlessly in enhancing its competitiveness and broadening its reach through the following strategic initiatives: • expanding the clinical indications for its commercialised products; • increasing patient access in lower-tier cities across the PRC; • developing complementary sales channels; and • nurturing the healthtech e-platform to enhance patient access. During the period under review, the vast distribution network enabled the Group ’s therapeutic products to be prescribed in over 14,900 hospitals and medical providers, as well as approximately 9,900 pharmaceutical stores, covering major cities, provinces and county cities throughout the PRC. It has gained traction and access into more than 1,100 medical/healthcare institutions and, approximately 155 over-the-counter (OTC) retail and online platforms across Singapore, Malaysia and Indonesia.
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31 RESEARCH AND DEVELOPMENT The R&D division is driven by a vision that underscores its commitment to science and innovation, with a mission to develop groundbreaking therapeutics that address unmet clinical and/or commercial needs. The Group launched a development plan in 2021, focusing on ophthalmology. The Group ’s key R&D initiatives comprise of growth factors, antibodies (i.e. mAb, bsAb, sdAb, scFv, ADC/FDC, etc.), drug formulation know-how and Blow-Fill-Seal ( “BFS”) platform. Growth factors, antibodies and drug formulation know-how are used for the development of therapeutic drugs in ophthalmology, surgical (encompassing wound care and healing) and oncology, whereas the BFS platform is a state-of-the-art manufacturing facility for producing preservative-free unit-dose drugs, in particular for ophthalmic drugs. One of the Group ’s technology platforms is built on recombinant proteins, in particular, the basic fibroblast growth factor (bFGF). The Group has been able to capitalise on its biologic facility, built with its proprietary technique and know-how, delivering high-quality bFGF Series of biologics in the Ophthalmology and Surgical business segments that constituted the Group ’s primary current growth driver. Strengthening the Group ’s biologics-based R&D, the strategic investments in Antikor Biopharma Limited and alliance forged with Henlius are in furtherance of our R&D plans for biologics in oncology and in ophthalmology for wet-AMD, diabetic macular edema, macular edema caused by retinal vein occlusion and myopic choroidal neovascularisation for mid-term to long-term growth driver. The establishment of the BFS platform formed part of the Group ’s core competency to develop and produce a series of preservative-free unit-dose drugs. As at 30 June 2026, the Group has 6 commercialised preservative-free unit-dose eye drops. Several preservative-free unit-dose ophthalmic drugs are in development with targeted commercialisation within the next 2 to 5 years. As at the date of this announcement, the Group has 15 R&D programmes in the pre-clinical to clinical stage, with several ophthalmology programmes in clinical stage which are shown in the table below: Field Subfield Project Code Indication Discovery Pre-Clinical Chemistry, Manufacturing and Controls Investigational New Drug Phase I Phase II Phase III New Drug Application/ Biologics License Application (“BLA”) Regulatory Remarks Ophthalmology Ocular surface EB11-18136P Dry eye disease United States Food and Drug Administration (“US FDA”) Phase III ongoing Retina EB12-20145P Wet-AMD NMPA BLA submitted EB12-20145P Wet-AMD US FDA Phase III complete
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32 As at the date of this announcement, the Group has obtained a total of 132 patent certificates or authorisation letters, which include 101 發明專利 (invention patents), 15 實用新型專利 (utility model patents) and 16 外觀專利 (design patents). The Group currently has multiple R&D sites located in Zhuhai (PRC), Boston (United States), London (United Kingdom) and Singapore. These sites support our efforts to develop new therapeutics and recruit global talent. PRODUCTION CAPABILITY The Group ’s factory in Zhuhai is fully equipped with production plants for the production of rb-bFGF as active pharmaceutical substance for the Group ’s flagship biologic formulations. The state-of-the-art BFS production plants in the factory enables the production of preservative-free unit-dose drugs, including Beifushu ® unit-dose eye drops. CONSTRUCTION OF THE SECOND FACTORY IN THE PRC The second factory is being built on a piece of land of about 15,000 square metres located at 珠海高新區 科技創新海岸 (Zhuhai Hi-Tech Industrial Park*), with a gross floor area (GFA) of about 58,000 square metres to house the Group ’s R&D centre, additional manufacturing facility, administrative office and staff hostel. The second factory is within minutes of walking distance from the Group ’s existing factory. As at the date of this announcement, the second factory ’s construction is substantially completed, and the completion of the construction shall be in 2026 or 2027.
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33 LITIGATION WITH 廣西萬壽堂藥業有限公司 (GUANGXI MEDICTOP PHARMACEUTICAL COMPANY LIMITED*) ( “GUANGXI MEDICTOP ”) In July 2024, a subsidiary of the Company in the PRC received a legal summons from Guangxi Medictop, alleging breach of certain obligations under an agency agreement related to the exclusive sales of Guangxi Medictop ’s 伊血安顆粒 (Yi Xue An Granules*). The Group categorically denies these allegations and has vigorously defended its position. After two hearings in November 2024 and June 2025, the Guangxi Nanning Court delivered a judgement in July 2025, ordering the Group to pay approximately HK$14.5 million to Guangxi Medictop in compensation. Both the Group and Guangxi Medictop have appealed the judgement. In October 2024, the Group initiated counter legal proceedings against Guangxi Medictop, seeking repayment of outstanding amounts. A court order was obtained to freeze one of Guangxi Medictop ’s bank accounts. Following a hearing in June 2025, the Zhuhai Xiangzhou Court delivered a judgement in July 2025, ordering Guangxi Medictop to repay approximately HK$49.7 million to the Group. Guangxi Medictop has appealed the judgement. In February 2026, the Group and Guangxi Medictop entered into a mediated settlement agreement. Under the agreement, Guangxi Medictop is required to repay approximately HK$25.5 million, plus any accrued interest, to the Group. Both Guangxi Nanning Court and Zhuhai Xiangzhou Court ruled to dismiss the cases, sanctioning the mediated settlement agreement.
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34 FINANCIAL REVIEW China Pharma 2026: Navigating Regulatory Headwinds and Embracing Adaptation The pharmaceutical industry in the PRC has been undergoing significant changes to foster innovation, reduce healthcare costs and improve treatment outcomes. As part of the ongoing healthcare reform, the pharmaceutical industry is facing new regulatory challenges in the first half of 2026. Key Regulatory Challenges in 2026 Tax and Cost Pressure: The value-added tax ( “VAT”) on biotech drugs has risen to 13%, and centralised procurement has led to price cuts. This combination is putting pressure on gross margins for innovative drugs. Medical Representative (MR) Compliance Overhaul: New national requirements for medical representative registration, activity tracking and training have been introduced. Companies must now log all healthcare professionals (HCP) interactions in traceable systems. 5 Department Anti-Corruption Campaign: The National Health Commission (NHC), State Administration of Market Regulation (SAMR), Ministry of Public Security (MPS), NMPA and Tax Bureau are conducting joint inspections. Focus areas include speaker fees, conferences, donations and third-party vendors. Penalties now include both corporate fines and personal liability. Procurement Environment: V olume-based procurement has been expanded to include more biologics and innovative drugs. However, “pay-for-performance ” and hospital budget caps are restricting hospital formulary access. Embracing Adaptation In light of key regulatory challenges in the PRC, the Group prioritises compliance, digital engagement and differentiated innovations for efficient growth. The overall strategy will better position the Group to effectively navigate these headwinds and the long-term trend of rising compliance requirements for innovative pharmaceutical companies, driven by factors such as the PRC ’s ongoing healthcare reform.
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35 The Group ’s revenue is chiefly derived from its operations in the PRC and denominated in Renminbi. For the six months ended 30 June 2026, the Group achieved a consolidated turnover of approximately HK$784.7 million, with a decrease of 10.5% as compared to approximately HK$876.5 million for the same period last year. The decrease is attributable to the new V AT law in the PRC announced on 30 January 2026 and effective retrospectively from 1 January 2026 which alters the tax treatment for pharmaceutical wholesale enterprises selling ordinary biological products. Previously, these enterprises could choose a simplified tax rate of 3% but now face the standard tax rate of 13%, aligning with other pharmaceuticals. This change and other newly introduced regulatory challenges have the impact on the Group’s business, particularly the biologic products of Beifushu ® and Beifuji ® series. This is because the Group cannot pass on the V AT increase to final customers since selling prices inclusive of V AT are fixed under the PRC ’s centralised procurement system and turnover is reported net of V AT. Correspondingly, the Group ’s profit decreased by 32.2% to approximately HK$110.7 million as compared to approximately HK$163.4 million for the same period last year. Approximately one-fourth of the decrease of the 32.2% was attributable to the decrease in exchange gain by approximately HK$12.1 million. The Group ’s turnover is primarily made up of Ophthalmology, Surgical (encompassing wound care and healing), and Healthcare and Partner Services segment. The core products that are current growth drivers under each segment are: 1. Ophthalmology – Beifushu ® series (Beifushu ® eye drops, Beifushu ® eye gel and Beifushu ® unit- dose eye drops), Tobramycin Eye Drops, Levofloxacin Eye Drops, Sodium Hyaluronate Eye Drops, Moxifloxacin Hydrochloride Eye Drops, Diquafosol Sodium Eye Drops, 適麗順 ®卵磷脂絡合碘 膠囊 (Shilishun Iodized Lecithin Capsules*), Soft Hydrophilic Contact Lens and other medical devices for myopia control and prevention such as eye-protection lamp and Seewant defocus customised glasses; 2. Surgical (encompassing wound care and healing) – Beifuji ® series (Beifuji ® spray, Beifuji ® lyophilised powder and Beifuxin ® gel), Carisolv ® dental caries removal gel, Portable Ultraviolet Phototherapy Devices, PELNAC TM collagen-based artificial dermis, SCALGEN TM double-layered artificial dermis and Osteopore ’s bioresorbable implants (Osteomesh ® and Osteoplug ®) for dental surgery in Singapore; and 3. Healthcare and Partner Services – 伢典醫生 DR.Y ADIAN ® oral care products, online and offline healthcare services and products, contract manufacturing organisation ( “CMO”)/contract development and manufacturing organisation ( “CDMO”) service and trades in equipment and parts. The sectoral turnover of Ophthalmology, Surgical, and Healthcare and Partner Services is approximately 46.8%, 43.5% and 9.7% of the Group ’s turnover, respectively.
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36 The combined turnover of the Group ’s flagship biologics, Beifushu ® series and Beifuji ® series (the bFGF based biologic drugs), represented about 78.2% of the Group ’s total turnover, of which Beifushu ® series and Beifuji ® series accounted for 37.2% and 41.0% of the Group ’s turnover, respectively. The remaining 21.8% of the Group ’s turnover is mainly contributed by sales of Tobramycin Eye Drops, Levofloxacin Eye Drops, Sodium Hyaluronate Eye Drops, Moxifloxacin Hydrochloride Eye Drops, 適麗順 ®卵磷脂 絡合碘膠囊 (Shilishun Iodized Lecithin Capsules*), Carisolv ® dental caries removal gel, 伢典醫生 DR.Y ADIAN® oral care products, PELNAC TM collagen-based artificial dermis, SCALGEN TM double- layered artificial dermis, online and offline healthcare services and products, CMO/CDMO service and trades in equipment and parts, collectively. Composition of the Group ’s turnover for the six months ended 30 June 2026 and 2025, respectively, is shown in the following table: Expressed in HK$ ’million For the six months ended 30 June 2026 For the six months ended 30 June 2025 Ophthalmology 367.2 417.4 Surgical 341.2 448.9 Healthcare and Partner Services 76.3 10.2 Total 784.7 876.5 Ophthalmology contributed approximately HK$367.2 million to the Group ’s turnover for the six months ended 30 June 2026, representing a decrease of 12.0% as compared to the same period last year. Surgical recorded a total turnover of approximately HK$341.2 million for the six months ended 30 June 2026, representing a decrease of 24.0% as compared to the same period last year. The decrease was mainly attributable to the aforementioned increase in V AT and other newly introduced regulatory challenges. Healthcare and Partner Services delivered a total turnover of approximately HK$76.3 million for the six months ended 30 June 2026, representing a significant increase of 648% as compared to the same period last year. The distribution and selling expenses for the period under review were approximately HK$396.5 million as compared to approximately HK$471.6 million for the corresponding period last year, representing a decrease of 15.9%. Such expenses primarily consisted of remuneration, advertising costs, travelling and transportation costs, costs related to product training and marketing activities, etc. The decrease was in line with the decrease in turnover for the six months ended 30 June 2026.
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37 The administrative expenses for the period under review were approximately HK$126.9 million as compared to approximately HK$99.7 million for the corresponding period last year. The increase in administrative expenses was mainly due to (i) a decrease in exchange gain by approximately HK$12.1 million; (ii) an increase in costs for expansion of operations in the United States and Singapore, and on-line platform for medical consultation by approximately HK$4.4 million; and (iii) an increase in R&D expenses by approximately HK$4.1 million. Total expenditures (inclusive of acquired intangible assets) incurred in R&D for the period under review were approximately HK$51.0 million (For the six months ended 30 June 2025: approximately HK$66.5 million), representing 6.5% (For the six months ended 30 June 2025: 7.6%) of the turnover, of which approximately HK$25.2 million (For the six months ended 30 June 2025: approximately HK$44.8 million) were capitalised. The Group had cash and cash equivalents of approximately HK$806.6 million as at 30 June 2026 (31 December 2025: approximately HK$782.7 million). The Group ’s bank borrowings as at 30 June 2026 were approximately HK$324.5 million (31 December 2025: approximately HK$325.6 million), among which 29.3% was repayable within 1 year, 36.8% was repayable in more than 1 year but within 2 years and 33.9% was repayable in more than 2 years but within 5 years. Among the Group ’s bank borrowings as at 30 June 2026, 30.8% was denominated in Hong Kong Dollar and 69.2% was denominated in Renminbi. All of the Group ’s bank borrowings bear interest at floating rate. The interest rate of the Group ’s bank borrowings ranged from 2.4% to 4.4% per annum as at 30 June 2026. Please refer to the sub-section headed “Liquidity and Financial Resources ” for details of banking facilities. The total finance costs of the Group for the period ended 30 June 2026 were approximately HK$4.6 million (For the six months ended 30 June 2025: approximately HK$2.8 million), including interest expenses on bank borrowings and lease liabilities amounting to approximately HK$5.3 million (For the six months ended 30 June 2025: approximately HK$3.5 million) of which approximately HK$0.7 million (For the six months ended 30 June 2025: approximately HK$0.7 million) was capitalised during the period under review. FUTURE PLANS FOR MATERIAL INVESTMENTS OR CAPITAL ASSETS Save as disclosed in this announcement, as at 30 June 2026, the Group did not have any immediate plan for material investments or acquisition of material capital assets.
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38 LIQUIDITY AND FINANCIAL RESOURCES As at 30 June 2026, the Group obtained banking facilities of approximately HK$984.8 million, of which approximately HK$412.3 million was utilised. Certain of the banking facilities were secured by the corporate guarantees provided by the Company and two of its subsidiaries. As at 30 June 2026, the Group had cash and cash equivalents of approximately HK$806.6 million as compared to approximately HK$782.7 million as at 31 December 2025. The Group monitors its capital structure on the basis of a gearing ratio which is defined as the ratio of total liabilities to total assets. The gearing ratio as at 30 June 2026 was 29.5% (31 December 2025: 30.9%). The healthy liquidity position and working capital level together with the unutilised banking facilities are sufficient to meet the Group ’s capital commitments, as well as to support the Group ’s daily operations and bank loan repayments. CHARGES ON GROUP ASSETS As at 30 June 2026, no asset (31 December 2025: no asset) was being pledged to secure the Group ’s banking facilities. CAPITAL COMMITMENTS As at 30 June 2026, the Group had capital commitments which amounted to approximately HK$170.0 million (31 December 2025: approximately HK$203.8 million). CONTINGENT LIABILITIES As at 30 June 2026, the Group did not have any significant contingent liabilities (31 December 2025: Nil). MATERIAL ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES, ASSOCIATED COMPANIES AND JOINT VENTURES There were no material acquisitions or disposals of subsidiaries, associates or joint ventures during the period ended 30 June 2026. SIGNIFICANT INVESTMENTS HELD Save as disclosed in this announcement, the Group did not hold any significant investments as at 30 June 2026.
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39 FOREIGN EXCHANGE EXPOSURE It is the Group ’s policy to borrow and deposit cash in local currencies to minimise currency risk. The Group ’s assets, liabilities and transactions are mainly denominated in Hong Kong Dollar, Renminbi or US Dollar. The Directors are of the view that the Group ’s operating cash flow and liquidity are not subject to significant foreign exchange risks and therefore no hedging arrangements were made. So long as the linked exchange rate system in Hong Kong with US Dollar is maintained, it is expected that the Group will not be subject to any significant exchange risk. However, the Group will review and monitor the relevant foreign exchange exposure from time to time based on its business development requirements and may enter into foreign exchange hedging arrangements as appropriate. TREASURY POLICY The Group generally financed its operations with internally generated cash flows, bank and other borrowings. The Group placed these resources into interest-bearing bank accounts opened with the PRC and Hong Kong banks and earned interests in accordance with the PRC and Hong Kong banks rates. Bank deposits were mainly denominated in Renminbi, Hong Kong Dollar and US Dollar. EMPLOYEES As at 30 June 2026, the Group had a total of 1,240 full-time employees (31 December 2025: 1,289 full-time employees). The aggregate remuneration of the Group ’s employees, including that of the Directors for the period under review and the preceding period amounted to approximately HK$150.8 million and approximately HK$162.1 million, respectively. The Group remunerates its employees based on their performance, experience and the prevailing industry practice. Share options and bonuses are also available to employees of the Group at the discretion of the Directors depending on the financial performance of the Group. The remuneration of each executive Director has been determined with reference to the time commitment and responsibilities of each executive Director, and to the operating results of the Group and his/her performance in the relevant financial year.
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40 SHARE CAPITAL AND SHARE OPTIONS There was no movement in the Company ’s authorised share capital during the period under review. Please refer to the sub-section headed “Purchase, Redemption or Sale of Listed Securities of the Company ” for details of the share repurchase of the Company conducted during the period under review. For the period ended 30 June 2026, there was no grant, exercise, lapse or cancellation of share options (the “Options ”) under the Company ’s share option scheme as approved by the shareholders of the Company at the annual general meeting held on 9 June 2023 (the “Scheme ”). Details of the Scheme are set out below. Summary of the Scheme 1. Purpose of the Scheme: (a) To recognise and acknowledge the contributions that the Eligible Participants (as defined below) have (or may have) made or may make to the Group (whether directly or indirectly). (b) To attract and retain and appropriately remunerate the best possible quality of Employees (as defined below) and other Eligible Participants (as defined below). (c) To motivate the Eligible Participants (as defined below) to optimise their performance and efficiency for the benefit of the Group. (d) To enhance its business, employee and other relations. (e) To retain maximum flexibility as to the range and nature of rewards and incentives which the Group can offer to Eligible Participants (as defined below). 2. Participants of the Scheme: (a) any director of the Company or any of its subsidiaries or any employee employed by the Company and/or any of its subsidiaries (whether full time or part time, including persons who are granted options under the Scheme as an inducement to enter into employment contract with any of such companies) ( “Category A Participant ”); or (b) any director or employee (whether full time or part time) of any of the Company ’s holding companies, fellow subsidiaries and associated companies ( “Category B Participant ”); or
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41 (c) any person who provides services to the Group on a continuing or recurring basis in its ordinary and usual course of business which are in the interests of the long-term growth of the Group, including consultants and advisors of the Company with relevant expertise in fields related to biotechnology and capital market, and investor relations consultants, which could provide insights on areas such as investor relations, market development and promotion, technological trends and innovations, as well as management (excluding any placing agents or financial advisors providing advisory services for fundraising, mergers or acquisitions, and professional service providers such as auditors or valuers who provide assurance, or are required to perform their services with impartiality and objectivity) ( “Category C Participant ”) (Category A Participant, Category B Participant and Category C Participant collectively referred to as the “Eligible Participants ”). The basis of eligibility of any of the above categories of the Eligible Participants to the grant of any right(s) to subscribe for fully paid share(s) of HK$0.10 each of the Company (or such other nominal amount prevailing from time to time) (the “Share(s) ”) granted pursuant to the Scheme shall be determined by the Board taking into account (i) the experience of the Eligible Participants on the Group ’s business; (ii) the length of service of the Eligible Participants with the Group if the Eligible Participant is an employee or a director of the Group; (iii) the actual degree of involvement in and/or cooperation with the Group; and (iv) the amount of support, assistance, guidance, advice, efforts and contribution the Eligible Participant has given or made, or may give or make, towards the success of the Group in the future. 3. (a) The maximum number of Shares in respect of which Options may be granted under the Scheme shall not, in aggregate, exceed 10.0% of the Shares in issue as at the date of approval of the Scheme, i.e. 57,064,900 (the “Scheme Mandate Limit ”). (b) The maximum number of Shares in respect of which Options may be granted to all Category C Participants under the Scheme shall not, in aggregate, exceed 1.0% of the Shares in issue as at the date of approval of the Scheme and 10.0% of the Scheme Mandate Limit, i.e. 5,706,490. (c) Number of Options available for grant under the Scheme as at 30 June 2026 and the date of this announcement is 57,064,900. (d) Number of Options available for grant to Category C Participants under the Scheme as at 30 June 2026 and the date of this announcement is 5,706,490. (e) Number of Shares that may be issued in respect of the Options granted under the Scheme and all other schemes or awards of the Company, if any, during the period under review (i.e. nil) divided by the weighted average number of Shares in issue for the period under review: Not applicable.
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42 (f) Total number of ordinary shares of HK$0.10 each in the share capital of the Company available for issue under the Scheme as at the date of this announcement: 57,064,900 Shares. (g) Percentage of the issued share capital (excluding treasury shares) that it represents as at the date of this announcement: 10.08%. 4. Maximum entitlement of each Eligible Participant under the Scheme and all other schemes or awards of the Company, if any: Not to exceed an aggregate of 1.0% of the Shares in issue in any 12-month period unless approved by shareholders of the Company and meeting the other requirements as stipulated under the Scheme. 5. Period within which the Shares must be taken up under an Option: Within 10 years from the date on which necessary resolutions in relation to the Scheme have been approved by the shareholders of the Company in general meeting and The Stock Exchange of Hong Kong Limited (the “Stock Exchange ”) granting the approval for the listing of and permission to deal in the Shares to be allotted and issued by the Company pursuant to the exercise of Options in accordance with the terms and conditions of the Scheme (i.e. 9 June 2023) (the “Effective Date”) or such shorter period as the Board may determine. 6. Minimum period for which an Option must be vested: Not less than 12 months, save and except that Options to be granted to a Category A Participant may be subject to a vesting period of less than 12 months (or no vesting period) in the following circumstances: (a) grants of “make-whole ” Options to new joiners to replace the share awards they forfeited when leaving the previous employer; (b) grants of Options to a Category A Participant whose employment is terminated due to death or disability or occurrence of any out-of-control event; (c) grants of Options that are made in batches during a year for administrative and compliance reasons;
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43 (d) grants of Options with a mixed or accelerated vesting schedule such as where the Options may vest evenly over a period 12 months; and (e) grants of Options with a total vesting and holding period of more than 12 months. 7. (a) Price payable on application or acceptance of the Option: HK$1.00. (b) The period within which payments or calls must or may be made: No offer shall be capable of or open for acceptance after the expiry of ten years from the Effective Date. (c) The period within which loans for the purposes of the payments or calls must be repaid: Not applicable. 8. Basis of determining the exercise price: The exercise price shall be determined by the Board and notified to each grantee under the offer letter and shall not be less than the highest of: (a) the closing price of a Share as stated in the daily quotations sheet of the Stock Exchange on the date of grant of the relevant Option; (b) the average closing price of a Share as stated in the daily quotations sheets of the Stock Exchange for the 5 business days immediately preceding the date of grant of the relevant Option; and (c) the nominal value of a Share. 9. The remaining life of the Scheme: Approximately 6.8 years (expiring on 8 June 2033).
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44 ADDITIONAL INFORMATION DIRECTORS ’ AND CHIEF EXECUTIVE ’S INTERESTS AND SHORT POSITIONS IN SHARES, UNDERLYING SHARES AND DEBENTURES As at 30 June 2026, the interests and short positions of the Directors and chief executive of the Company in the shares, underlying shares and debentures of the Company or its associated corporations (within the meaning of Part XV of the Securities and Futures Ordinance (the “SFO”)), as recorded in the register required to be kept by the Company pursuant to Section 352 of the SFO, or as otherwise notified to the Company and the Stock Exchange pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code ”) contained in the Rules Governing the Listing of Securities on the Stock Exchange (the “Listing Rules ”) were as follows: Long positions in shares of the Company: Name Capacity Number of ordinary shares/ underlying shares of the Company Approximate percentage of interest in the Company ’s issued share capital (excluding treasury shares) as at 30 June 2026 Ngiam Mia Je Patrick Beneficial owner and interests of controlled corporations 153,945,667 (Note 1) 27.20% Fang Haizhou Beneficial owner 5,244,300 (Note 2) 0.93% Ngiam Hian Leng Malcolm Beneficial owner 2,039,000 (Note 3) 0.36% Yau Lai Man Beneficial owner 46,000 (Note 4) 0.01%
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45 Notes: 1. (a) 147,279,000 ordinary shares were registered in the name of Ngiam Mia Je Patrick. (b) 6,666,667 ordinary shares were held by Dynatech Ventures Pte Ltd ( “Dynatech ”) which was wholly owned by Essex Investment (Singapore) Pte Ltd ( “Essex Singapore ”). Since Essex Singapore is owned by Ngiam Mia Je Patrick and Ngiam Mia Kiat Benjamin in equal shares, Ngiam Mia Je Patrick was deemed to be interested in these shares under the SFO as he was entitled to exercise or control the exercise of more than one-third of the voting power of Dynatech at general meetings. 2. 5,244,300 ordinary shares were registered in the name of Fang Haizhou. 3. 2,039,000 ordinary shares were registered in the name of Ngiam Hian Leng Malcolm. 4. 46,000 ordinary shares were registered in the name of Yau Lai Man. Save as disclosed above, as at 30 June 2026, none of the Directors and the chief executive of the Company had any interest and short position in the shares, underlying shares or debentures of the Company or its associated corporations (within the meaning of Part XV of the SFO) which was required to be recorded pursuant to Section 352 of the SFO, or as otherwise notified to the Company and the Stock Exchange pursuant to the Model Code.
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46 SUBSTANTIAL SHAREHOLDERS AND OTHER PERSONS WHO ARE REQUIRED TO DISCLOSE THEIR INTERESTS PURSUANT TO PART XV OF THE SFO As at 30 June 2026, the following persons or entities, other than a Director or chief executive of the Company had interests or short positions in the shares and underlying shares of the Company as recorded in the register required to be kept under Section 336 of the SFO: Long positions in shares of the Company: Name Capacity Number of ordinary shares/ underlying shares of the Company Approximate percentage of interest in the Company ’s issued share capital (excluding treasury shares) as at 30 June 2026 Ngiam Mia Kiat Benjamin Beneficial owner and interests of controlled corporations 152,020,667 (Note 1) 26.86% Lauw Hui Kian Family interest 153,945,667 (Note 2) 27.20% Notes: 1. (a) 145,354,000 ordinary shares were registered in the name of Ngiam Mia Kiat Benjamin. (b) 6,666,667 ordinary shares were held by Dynatech which was wholly owned by Essex Singapore, which in turn was owned by Ngiam Mia Je Patrick and Ngiam Mia Kiat Benjamin in equal shares. Therefore, Ngiam Mia Kiat Benjamin was deemed to be interested in these shares under the SFO as he was entitled to exercise or control the exercise of more than one-third of the voting power of Dynatech at general meetings. 2. Lauw Hui Kian is the spouse of Ngiam Mia Je Patrick (an executive Director). Lauw Hui Kian was deemed to be interested in 153,945,667 ordinary shares in which Ngiam Mia Je Patrick was interested/deemed to be interested under the SFO.
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47 Save as disclosed above, as at 30 June 2026, no other persons or entities (other than the Directors and chief executive of the Company whose interests are set out under the paragraph headed “Directors ’ and Chief Executive ’s Interests and Short Positions in Shares, Underlying Shares and Debentures ” above) had an interest or short position in the shares or underlying shares of the Company as recorded in the register to be kept under Section 336 of the SFO. PURCHASE, REDEMPTION OR SALE OF LISTED SECURITIES OF THE COMPANY During the period under review, the Company repurchased 1,006,000 of its shares on the Stock Exchange at an aggregate consideration of HK$2,659,780 and these shares were subsequently held as treasury shares as at the date of this announcement. Details of those transactions are as follows: Number of shares Price per share Total price paidMonth repurchased Highest Lowest HK$ HK$ HK$ June 2026 1,006,000 2.71 2.61 2,659,780 The repurchase of the Company ’s shares was effected by the Directors, pursuant to the mandate granted by the shareholders of the Company to the Directors at the last annual general meeting, with a view to benefiting shareholders as a whole by enhancing the net asset value per share and earnings per share of the Group. Except as disclosed above, neither the Company nor any of its subsidiaries purchased, redeemed or sold any of the Company ’s listed securities (including sale of treasury shares) during the period under review. As at 30 June 2026, the Company held 1,006,000 treasury shares. They were intended to be used in accordance with the applicable rules and regulations, including but not limited to resale for cash. During the period under review, the Company did not sell or transfer any treasury shares. Subsequent to the end of the reporting period and up to the date of this announcement, the Company repurchased 350,000 of its shares on the Stock Exchange at an aggregate consideration of HK$895,500 and these shares were subsequently held as treasury shares as at the date of this announcement. The highest and lowest price per share paid was HK$2.61 and HK$2.50 respectively. CORPORATE GOVERNANCE The Company has complied with the code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules throughout the period under review.
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48 AUDIT COMMITTEE The audit committee of the Company has reviewed the accounting principles and practices adopted by the Group, and discussed internal control and financial reporting matters, including reviewing the Group ’s unaudited interim condensed consolidated financial statements for the six months ended 30 June 2026. INTERIM DIVIDEND The Board has resolved on 5 August 2026 to declare an interim dividend of HK$0.05 (For the six months ended 30 June 2025: HK$0.07) per ordinary share for the six months ended 30 June 2026 (the “Interim Dividend ”), which is payable in cash on Wednesday, 2 September 2026. The Interim Dividend will be paid to shareholders of the Company whose names appear in the Company ’s register of members at the close of business on Monday, 24 August 2026. CLOSURE OF REGISTER OF MEMBERS The register of members of the Company will be closed from Thursday, 20 August 2026 to Monday, 24 August 2026 (both days inclusive) during which period no share transfer will be effected. To qualify for the Interim Dividend, all transfers of Shares accompanied by the relevant share certificates and properly completed transfer forms must be lodged with the Hong Kong share registrar of the Company, Computershare Hong Kong Investor Services Limited at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen ’s Road East, Wanchai, Hong Kong, for registration not later than 4:30 p.m. on Wednesday, 19 August 2026. The record date will be Monday, 24 August 2026. DIRECTORS ’ SECURITIES TRANSACTIONS The Company has adopted procedures governing directors ’ securities transactions in compliance with the Model Code. Having made specific enquiries with all the Directors, all the Directors have confirmed that they have fully complied with the required standards and provisions as set out in the Model Code throughout the 6-month period ended 30 June 2026. On behalf of the Board Essex Bio-Technology Limited Ngiam Mia Je Patrick Chairman Hong Kong 5 August 2026
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49 Executive directors of the Company as at the date of this announcement are Mr. Ngiam Mia Je Patrick, Mr. Fang Haizhou, Mr. Ngiam Hian Leng Malcolm and Ms. Yau Lai Man. Independent non-executive directors of the Company as at the date of this announcement are Mr. Fung Chi Ying, Ms. Yeow Mee Mooi and Mr. Yan Man Sing Frankie. * For identification purpose only