Earnings release
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– 1 – 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. GIANT BIOGENE HOLDING CO., LTD ʮ̡ (An exempted company incorporated in the Cayman Islands with limited liability) (Stock code: 2367) ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2026 FINANCIAL HIGHLIGHTS Six months ended 30 June 2026 2025 Changes RMB million RMB million Revenue 2,917.7 3,112.7 -6.3% Gross profit 2,318.4 2,542.3 -8.8% Profit before taxation 1,095.0 1,444.1 -24.2% Net profit 939.5 1,182.4 -20.5% Profit attributable to equity shareholders of the Company 939.7 1,182.1 -20.5% Adjusted net profit for the Reporting Period (non-IFRS measure) 945.5 1,205.1 -21.5% Basic earnings per Share (RMB) 0.89 1.14 -21.9% Diluted earnings per Share (RMB) 0.89 1.13 -21.2% The board (the “ Board”) of directors (the “ Director(s) ”) of Giant Biogene Holding Co., Ltd (the “ Company ”) is pleased to announce the unaudited condensed consolidated interim results of the Company and its subsidiaries (collectively, the “ Group ”) for the six months ended 30 June 2026 (the “ Reporting Period ”) with the comparative figures for the corresponding period in 2025. The aforesaid interim results have been prepared in accordance with the International Financial Reporting Standards (“ IFRS ”) and have been reviewed by the audit committee of the Company (the “ Audit Committee ”). The interim results for the six months ended 30 June 2026 are unaudited but have been reviewed by the Company’s independent auditor, KPMG, in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the International Auditing and Assurance Standards Board.
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– 2 – INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Six months ended 30 June Note 2026 2025 RMB’000 RMB’000 Revenue 3 2,917,692 3,112,662 Cost of sales (599,284) (570,317) Gross profit 2,318,408 2,542,345 Other income 5 142,117 68,800 Selling and distribution expenses (1,266,821) (1,058,575) Administrative expenses (79,908) (82,635) Research and development costs (45,517) (41,176) Other gains or losses, net 21,130 17,918 Provision for/reversal of impairment losses on financial assets, net (383) 119 Other expenses (3,724) (1,610) Profit from operations 1,085,302 1,445,186 Finance costs (175) (124) Share of gains/(losses) on investments accounted for using the equity method 9,828 (914) Profit before taxation 4 1,094,955 1,444,148 Income tax expense 6 (155,427) (261,704) Profit for the period 939,528 1,182,444 Attributable to: Equity shareholders of the Company 939,714 1,182,083 Non-controlling interests (186) 361 Profit for the period 939,528 1,182,444 Earnings per share Basic (RMB) 7 0.89 1.14 Diluted (RMB) 7 0.89 1.13
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– 3 – Six months ended 30 June Note 2026 2025 RMB’000 RMB’000 Profit for the period 939,528 1,182,444 Other comprehensive income for the period (after tax and reclassification adjustments): Items that will not be reclassified to profit or loss: – Translation of the Company’s functional currency to presentation currency (107,359) (21,735) – Equity securities designated at fair value through other comprehensive income (“ FVOCI”) – net movement in fair value reserve (non-recycling) (8,772) 12,537 (116,131) (9,198) Items that may be reclassified subsequently to profit or loss: – Exchange differences on translation of foreign operations (59) 67 Other comprehensive income for the period (116,190) (9,131) Total comprehensive income for the period 823,338 1,173,313 Attributable to: Equity shareholders of the Company 823,524 1,172,952 Non-controlling interests (186) 361 Total comprehensive income for the period 823,338 1,173,313
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– 4 – INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION Note At 30 June 2026 At 31 December 2025 RMB’000 RMB’000 Non-current assets Property, plant and equipment 1,252,338 1,203,519 Right-of-use assets 82,241 53,202 Intangible assets 4,927 4,981 Prepayments, other receivables and other assets 363,769 318,829 Investments accounted for using the equity method 227,363 217,535 Equity securities designated at FVOCI – 24,290 Deferred tax assets 1,409 522 1,932,047 1,822,878 Current assets Inventories 353,667 391,070 Trade and bills receivables 8 388,537 201,866 Prepayments, other receivables and other assets 173,636 135,123 Financial assets measured at fair value through profit or loss 2,543,287 1,984,326 Cash and cash equivalents 9 4,852,549 6,306,160 8,311,676 9,018,545 Current liabilities Trade payables 10 248,785 198,568 Other payables and accruals 367,013 505,242 Contract liabilities 52,182 16,622 Lease liabilities 8,437 6,428 Deferred income 2,528 2,756 Current taxation 102,836 70,348 781,781 799,964 Net current assets 7,529,895 8,218,581 Total assets less current liabilities 9,461,942 10,041,459
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– 5 – Note At 30 June 2026 At 31 December 2025 RMB’000 RMB’000 Non-current liabilities Lease liabilities 3,820 3,261 Deferred income 15,633 16,322 Deferred tax liabilities 71,326 97,090 90,779 116,673 NET ASSETS 9,371,163 9,924,786 CAPITAL AND RESERVES Ordinary share capital 68 68 Treasury shares – (166,147) Reserves 9,357,961 10,077,552 Total equity attributable to equity shareholders of the Company 9,358,029 9,911,473 Non-controlling interests 13,134 13,313 TOTAL EQUITY 9,371,163 9,924,786
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– 6 – NOTES TO FINANCIAL INFORMATION 1 BASIS OF PREPARATION The interim condensed consolidated financial information for the six months ended 30 June 2026 has been prepared in accordance with IAS 34, Interim Financial Reporting. The interim condensed consolidated financial information does not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s annual consolidated financial statements for the year ended 31 December 2025. 2 CHANGES IN ACCOUNTING POLICIES The IASB has issued a number of amendments to IFRS Accounting Standards that are first effective for the current accounting period. Of these, only the amendments to IFRS 9, Financial instruments and IFRS 7, Financial instruments: Disclosures – Amendments to the classification and measurement of financial instruments , are relevant to the Group’s financial statements. The amendments do not have a material impact on this interim report. The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period. 3 REVENUE AND SEGMENT REPORTING (a) Revenue An analysis of revenue is as follows: Six months ended 30 June 2026 2025 RMB’000 RMB’000 Revenue from contracts with customers 2,917,692 3,112,662 Disaggregated information for revenue from contracts with customers Six months ended 30 June 2026 2025 RMB’000 RMB’000 Type of goods or services Sale of goods 2,917,692 3,112,662 Geographical markets Chinese Mainland 2,917,692 3,112,662 Timing of revenue recognition At a point in time 2,917,692 3,112,662
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– 7 – (b) Segment reporting For management purposes, the Group is organised into one single business unit that primarily includes the research, development, manufacture and sale of bioactive material-based beauty and health products. The information reported to the directors of the Company, who are the chief operating decision makers, for the purpose of resource allocation and assessment of performance does not contain discrete operating segment financial information and the directors review the financial results of the Group as a whole. Therefore, no further information about the operating segment. Geographic information During the period, all of the Group’s revenue was derived from customers located in Chinese Mainland and all of the Group’s non-current assets were located in Chinese Mainland, and therefore no geographical segment information in accordance with IFRS 8, Operating Segments, is presented. 4 PROFIT BEFORE TAXATION Profit before taxation is arrived at after charging/(crediting): Six months ended 30 June 2026 2025 RMB’000 RMB’000 (a) Staff costs Wages, salaries and allowances 136,136 123,915 Pension scheme contributions, social welfare and other welfare 27,258 28,149 Equity-settled share award expenses 6,001 22,621 169,395 174,685 Six months ended 30 June 2026 2025 RMB’000 RMB’000 (b) Other items Amortisation of intangible assets 749 785 Depreciation: – property, plant and equipment 40,081 33,828 – right-of-use assets 5,639 3,258 Inventory write-down and losses, net of reversals 3,345 (8)
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– 8 – 5 OTHER INCOME An analysis of other income is as follows: Six months ended 30 June 2026 2025 RMB’000 RMB’000 Government grants 23,295 4,742 Interest income 116,799 63,396 Others 2,023 662 142,117 68,800 6 INCOME TAX Taxation in the consolidated statement of profit or loss represents: Six months ended 30 June 2026 2025 RMB’000 RMB’000 Current taxation 180,530 277,250 Deferred taxation (25,103) (15,546) 155,427 261,704 Taxes on profits have been calculated at the rates of tax prevailing in the jurisdictions in which the Group operates. The Company incorporated in the Cayman Islands is not subject to income or capital gains tax under the laws of the Cayman Islands. Hong Kong profits tax has been provided at a rate of 16.5% (Six months ended 30 June 2025: 16.5%) on the estimated assessable profits arising in Hong Kong during the period. The subsidiaries of the Group established in the Chinese Mainland are subject to the PRC Corporate Income Tax rate at 25% during the current period (six months ended 30 June 2025: 25%), except that certain subsidiaries enjoy a preferential income tax rate of 15% according to the polices of Western Development (six months ended 30 June 2025: 15%).
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– 9 – 7 EARNINGS PER SHARE (a) Basic earnings per share The basic earnings per share for the six months ended 30 June 2026 is calculated based on the profit attributable to ordinary equity shareholders of the Company of RMB939,714,000 (six months ended 30 June 2025: RMB1,182,083,000) and the weighted average of 1,050,117,000 ordinary shares (six months ended 30 June 2025: 1,034,854,000 ordinary shares) in issue during the interim period. The weighted average number of ordinary shares is calculated as follows: Six months ended 30 June 2026 2025 ’000 ’000 Issued ordinary shares at 1 January 1,070,904 1,028,220 Effect of shares held for the RSU Scheme (11,819) (12,270) Effect of treasury shares held (5,200) – Effect of issue of shares – 12,112 Effect of exercise of 2023 Share options – 6,792 Effect of repurchase of treasury shares (3,768) – Weighted average number of ordinary shares at 30 June 1,050,117 1,034,854 (b) Diluted earnings per share The calculation of diluted earnings per share is based on the profit attributable to ordinary equity shareholders of the Company of RM B939,714,000 (six months ended 30 June 2 025: RMB1,182,083,000). The weighted average number of ordinary shares used in the calculation is the number of ordinary shares outstanding during the period, as used in the basic earnings per share calculation, and the weighted average number of ordinary shares assumed to have been issued at nil consideration on the deemed vesting of shares under the RSU Scheme and the 2023 Share Option Scheme. The weighted average number of ordinary shares is calculated as follows: Six months ended 30 June 2026 2025 ’000 ’000 Weighted average number of ordinary shares outstanding during the period used in the basic earnings per share calculation 1,050,117 1,034,854 Effect of dilution – weighted average number of ordinary shares: RSU Scheme 5,408 9,336 2023 Share options – 5,028 Weighted average numbers of ordinary shares (diluted) at 30 June 1,055,525 1,049,218
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– 10 – 8 TRADE AND BILLS RECEIVABLES At 30 June 2026 At 31 December 2025 RMB’000 RMB’000 Trade receivables 358,843 191,916 Less: loss allowance (573) (871) 358,270 191,045 Bills receivables 30,267 10,821 388,537 201,866 Ageing analysis As of the end of the reporting period, the ageing analysis of trade and bills receivables, based on the invoice date and net of loss allowance, is as follows: At 30 June 2026 At 31 December 2025 RMB’000 RMB’000 Within one year 388,414 201,635 Over one year and within two years 120 223 Over two years and within three years 3 8 388,537 201,866 9 CASH AND CASH EQUIVALENTS At 30 June 2026 At 31 December 2025 RMB’000 RMB’000 Cash and cash equivalents 4,852,549 6,306,160 Denominated in: RMB 2,353,063 2,396,997 USD 2,498,670 3,801,788 HKD 816 107,375
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– 11 – 10 TRADE PAYABLES As of the end of the reporting period, the ageing analysis of trade payables, based on the invoice date, is as follows: At 30 June 2026 At 31 December 2025 RMB’000 RMB’000 Within one year 245,671 195,359 Over one year and within two years 773 1,063 Over two years and within three years 2,341 2,146 248,785 198,568 11 DIVIDENDS The directors of the Company do not recommend the payment of an interim dividend for the six months ended 30 June 2026 (six months ended 30 June 2025: RMBNil). Dividends payable to equity shareholders attributable to the previous financial year, approved during the interim period: 2026 2025 RMB’000 RMB’000 Final dividend and special dividend in respect of the previous financial year, approved during the following interim period, of RMB0.5390 (HKD0.6187) and RMB0.6714 (HKD0.7707) per ordinary share (six months ended 30 June 2025: RMB0.6021 (HKD0.6584) and RMB0.5921 (HKD0.6457)) 1,285,087 1,278,874 12 COMMITMENTS Commitments outstanding at 30 June 2026, not provided for in the interim financial report were as follows: At 30 June 2026 At 31 December 2025 RMB’000 RMB’000 Contracted for acquisition of property, plant and equipment 330,592 316,392
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– 12 – I. BUSINESS REVIEW The first half of 2026 has been a journey of profound significance for us. In the face of structural changes in the industry, during the Reporting Period, we made breakthroughs and efforts across multiple fronts including research and development, branding, products, and channels in accordance with our established strategic plan. We continued to optimise our operating systems, consolidate our fundamental business capabilities, and lay a solid foundation for development with strategic focus, steadily advancing on the path towards returning to growth. During the Reporting Period, the Group’s sales revenue amounted to approximately RMB2.92 billion, representing a year-on-year decrease of 6.3%; the Group’s net profit amounted to approximately RM B0.94 billion, representing a year-on-year decrease of 20.5%; the Group’s adjusted net profit amounted to approximately RM B0.95 billion, representing a year-on-year decrease of 21.5%. Technological Innovation Cultivates New Productive Forces Rooted in our continuously accumulated foundation in technological innovation, we have always adhered to technology-driven development and value creation, and have continued to reap fruitful results. During the Reporting Period, the Company’s research and development expenditure amounted to RM B46 million, representing 1.6% of revenue. As of the end of the Reporting Period, the Company had over 140 ongoing research projects, and had been granted and applied for 233 patents, with 24 new patents granted or applied during the Reporting Period. We continue to deepen innovation in biomaterials and drive the deep integration of the medical device and cosmetics business models. In January and June 2026, the world’s first recombinant collagen and sodium hyaluronate composite solution implant product for improving cheek smoothness, and the world’s first cross-linked recombinant Type III full-sequence collagen filler for improving neck wrinkles of the Company, are both approved by the National Medical Products Administration of China. These approvals unlock more possibilities for skin rejuvenation and drive the industry towards higher-quality development with greater compliance, safety and natural results. During the Reporting Period, we also obtained the Class III medical device manufacturing license, closing the critical loop from product marketability to product mass production. The Group continues to advance in technological innovation, category expansion, and efficacy validation of recombinant collagen, solidifying its underlying technological moat. During the Reporting Period, we obtained multiple invention patents relating to the preparation methods and applications of Type II, III, VII and XVII collagen across different fields and indications, continuously expanding the application boundaries of recombinant collagen. As a breakthrough in the functional skincare sector, the Group has developed a trinity innovative transdermal delivery technology, moving beyond the single molecular weight evaluation system and enabling macromolecular recombinant collagen to enter an era of efficient penetration, thereby reinforcing the key cornerstone of evidence-based science.
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– 13 – After more than two decades of scientific research accumulation, during the Reporting Period, the Group’s self-developed new ginsenoside CK raw material officially received approval from the National Medical Products Administration, successfully achieving the critical leap of rare ginsenoside CK from an experimentally scarce raw material to a raw material suitable for large-scale application, marking the entry of the Company’s technology into a new era of industrialisation. At the same time, the group standards “Cosmetic Raw Material Ginsenoside” ɛਞӴ㹷 and “Fermented Ginseng Powder” ೯ɛਞ४ , spearheaded by the Company, have been implemented, promoting the industry towards standardised, scientific and regulated development. During the Reporting Period, the Company was certified by Euromonitor International, a globally authoritative market research firm, as the Global Leader in Recombinant Collagen for the third consecutive year, and was selected as Candidate for National Intellectual Property Demonstration Enterprise, demonstrating our technological leadership in the global recombinant collagen field. At the same time, the Company was once again listed among the Top 50 Cosmetic Enterprises for 2026, received the 2025 Outstanding Contribution Award for High-Quality Development from Xi’an High-tech Zone, participated in the 31st Annual Meeting of Chinese Society of Dermatology, and appeared at the 92nd PHARMCHINA, injecting new momentum into the enhancement of biomaterial efficacy, industry innovation and integrated industrial development. Continuous New Product Launches, Building a Full-Scenario Ecosystem KOMFYMED continues to strengthen its development strategy of “synergy of medical device and cosmetics ( ѱΝ )” to reach a broader consumer base and provide professional, scientifically skincare solutions. As of the end of the Reporting Period, KOMFYMED has one medical device series and five functional skincare series. Centering on prominent products that have established user mindset or sales, we continuously improve our series portfolio, reinforce brand presence, and accumulate brand assets. Within the Medical Device Series, KOMFYMED Recombinant Collagen Dressing, our best-selling product for over a decade, achieved the TOP 1 ranking in Tmall’s Wound Dressing category and the TOP 1 ranking on Tmall’s Best-Selling Medical Dressings list during the 618 Shopping Festival in 2026 (“ 2026 618 Shopping Festival ”), solidifying its leading performance in sales and reputation. In addition, we launched the KOMFYMED Medical Sodium Hyaluronate Wound Repair Dressing, which innovatively incorporates medical device-grade sodium hyaluronate and trehalose to protect the skin at the wound site, provide an optimal healing environment, and build a robust protective barrier for delicate skin.
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– 14 – Within the Collagen Repair Series, during the Reporting Period, our star product, the KOMFYMED Recombinant Collagen Skin Defense Repair Single-Use Serum (“ Collagen Stick 2.0 ”) won the Zhenmei Award for skincare breakout product of the year, and during the 618 Shopping Festival, it ranked TOP 1 among domestic products in Tmall’s facial serum category, TOP 1 in soothing serum on Douyin, and TOP 1 among domestic products on JD.com, continuing to solidify its leading position in the facial serum category. In addition, we launched the KOMFYMED Recombinant Collagen Advanced Bio-Enzyme Exfoliating Serum (“ Soft-Focus Serum ”), which addresses various skin roughness concerns through acid-free exfoliation and a nourish instead of peel approach; as well as the KOMFYMED Recombinant Collagen Restoration Essence Emulsion (“Collagen Cream 2.0 ”), which features an upgraded formulation system, showcasing our advanced scientific achievements in the field of functional skincare. Within the Focus Series, during the Reporting Period, we launched the highly anticipated KOMFYMED Recombinant Collagen Luminous Water-Oil Dual-Essence Single- Use Serum (“ Ultra-Translucent Stick ”), which pioneered the use of our exclusive “Triple-Body Collagen” ingredient to break through the limitations of traditional collagen penetration and deliver translucent, radiant, and luminous skin. Leveraging the brand’s reputation, product quality, and prior marketing efforts, the Ultra-Translucent Stick generated over RM B30 million in GMV through our self-operated channel only in its first week after launch in April. It maintained steady performance during the 618 Shopping Festival, laying a solid foundation for becoming our next blockbuster product. Additionally, we launched two versions of our star product, the KOMFYMED Recombinant Collagen Luminous and Repair Essence Cream (“ Focus Cream ”), a soft version and a rich version, to address the differentiated needs of various skin types, marking a precise advancement from general-purpose repair to skin-type-specific formulations. Within the COLLGENE Brand, during the Reporting Period, we launched three new products in the Revitalizing Series (ӻΐ ), including the COLLGENE Recombinant Collagen Revitalizing Luminous and Firming Intense Serum (“ Structural Anti-aging Intense Serum ”), which pioneered a three-phase structure anti-sagging system to form a comprehensive anti-sagging closed-loop; as well as the COLLGENE Recombinant Collagen Revitalizing and Firming Essence Toner and Emulsion (“ Structural Anti- aging Toner and Emulsion Set ”), which delivers toner and lotion dual-action synergy to help skin regain a youthful appearance. By continuously strengthening brand presence in the field of recombinant collagen anti-aging, during the Reporting Period, the COLLGENE Collagen Anti-aging Mask won the ICIC Award for Technological Innovation in Anti-Aging Products, and the COLLGENE Recombinant Collagen Revitalizing Lifting and Firming Essence Cream (“ Anti-aging Essence Cream ”) was recognized as the Most Popular Anti-Aging Face Cream in 2026 Summer Bazaar Beauty Award.
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– 15 – During the Reporting Period, the COLLGENE Xinsheng Recombinant Type I ƹ1 Subtype Collagen Freeze-dried Fibers (“ 753 Collagen Injection ”) was officially launched as the Company’s first Class III medical device product. 753 Collagen refers to a long sequence of 753 amino acids extracted from the ƹ1 chain of Type I collagen, enabling longer contact with cells, tighter adhesion, and a more sustained effect; the freeze-dried fiber form preserves the natural structure and stable conformation of collagen, maintaining the high bioactivity of the recombinant collagen. Such breakthrough in the new product demonstrates that COLLGENE has extended the systematic achievements of serious medical applications to the frontiers of aesthetic applications. By reshaping the ECM microenvironment and activating fibroblast vitality, it achieves comprehensive anti-aging, transitioning from passive filling to active regeneration, and from immediate wrinkle reduction to long-lasting, stable results. Within the Ke Yu ( ̙ཫ) brand, during the Reporting Period, we launched our first body care product, the Ke Yu Recombinant Collagen Conditioning & Clarifying Body Scrub (“Keyu Mianmiansha ”), which pioneered the concept of body skin microenvironment care. Combining exfoliation, cleansing, makeup removal, and nourishment, it helps restore the skin’s stability, softness, and radiance. From a single dressing product to four major product series, including facial and body care, Ke Yu continuously transforms its technological breakthroughs into health and caring solutions that cover a wider range of daily life scenarios through a constantly updated and evolving SKU portfolio. Science Communication, Unleashing New Brand Momentum KOMFYMED leverages the power of science to build consumer trust and deepen perceptions of professional skincare across multiple dimensions. During the Reporting Period, KOMFYMED retained its position among the Top 50 Cosmetic Brands in 2026, was included in the 2025 China Consumer Favorite Brands list, and was honored with 2026 R&D Design Power Brand Award and the 2025 User Preferred Domestic Cosmetic Brand Award. At the same time, KOMFYMED collaborated with Li Jiaqi ( ҽԳೡ) to create a heartwarming New Year TVC, fostering an emotional connection between the brand and consumers; it also launched the second season of the “Journey of Repair and Renewal” (ࣚcampaign, expanding the connotations of brand repair. Furthermore, KOMFYMED announced Wei Daxun ( ᕧɽ௸ ) as the Global Brand Ambassador of KOMFYMED and Wang Ziqi ( ˮɿփ) as the Brand Ambassador of KOMFYMED (Essence and Mask categories), enabling the brand’s scientific foundation and product strength to reach a broader consumer base. COLLGENE has anchored itself in the core philosophy of “Vitality Aesthetics”, emerging as a pioneer in holistic regenerative aesthetics. During the Reporting Period, COLLGENE was honored as the Brand with the Greatest Market Influence of the Year at the 2026 Moly Gala. The brand participated in the Mevos Congress and hosted the launch event for the new COLLGENE Xinsheng product, marking COLLGENE’s establishment as a holistic regenerative aesthetics brand that bridges the three major scenarios of medical aesthetics, lifestyle beauty, and household beauty. At the same time, we partnered with Jin Jing (ཨ), Spokesperson for COLLGENE Anti-aging Single Use Mask to celebrate the vitality of passion; with Sun Jian (), Spokesperson for COLLGENE Star Product Skincare, to cultivate the focus of passion; and with Zhang Yuan ( ੵჃ), Ambassador for COLLGENE Structural Anti-aging Toner and Emulsion Set to explore the breakthrough power of passion, further conveying the brand’s philosophy of self-pleasure.
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– 16 – Ke Yu deepens user recognition of its “Healthy Living Toolkit” and cultivated an image as a warm and attentive companion. During the Reporting Period, Ke Yu celebrated the significant milestone of its 11th anniversary, which also marked its first anniversary since its rebranding. By launching a special CNY Spring Festival campaign and organizing the “Ke Yu Moments of Companionship” series of activities to strengthen heartfelt interactions with users, Ke Yu continued to convey its original mission and warmth of long-term health companionship, gradually establishing itself as a professional and caring health companion in the hearts of more people. During the Reporting Period, under the spotlight of mainstream media, the Company was visited by CCTV host Chen Weihong ( ਃᒿ ), featured in Xinhua News Agency’s “Brand Observation” segment, and granted an exclusive interview to “China Newsweek”, providing a comprehensive breakdown of the creation process and transdermal absorption effects of recombinant collagen. Building on this continuous amplification of authoritative brand visibility, we premiered the short film “Transparent Factory”, publicly disclosing for the first time our entire supply chain, from basic research and raw material production to product development and quality control and logistics, demonstrating our commitment to scientific research and quality through visible, tangible details. Omnichannel Penetration, Accelerating Globalization During the Reporting Period, the Company continued to deepen the integration of its dual-track medical and consumer systems to solidify the foundation for market growth. As of the end of the Reporting Period, through offline channels, the Company’s brands and products were available in approximately 1,700 public hospitals, approximately 3,500 private hospitals and clinics, more than 130,000 chain pharmacies, and approximately 6,000 CS/KA stores. In core commercial districts, a total of 32 KOMFYMED brand experience stores and 10 COLLGENE brand experience stores have been established. Through a diverse range of store formats, we have improved operational efficiency and continuously enhanced the brand experience at the point of sale. In overseas markets, KOMFYMED participated in the 2026 ASIATOP MUSIC FESTIVAL in Malaysia and visited Nanyang Technological University in Singapore to promote scientific skincare concepts and expand the international reach of Chinese collagen. In online channels, facing a complex and ever-changing external environment, the Company further deepened its differentiated operational strategies to retain its core user base and achieve steady optimization in its business structure. On the Tmall platform, we continuously refined our membership system operations to deepen user value and solidify brand awareness. On the Douyin platform, we continued to strengthen our in-house live-streaming capabilities and optimize our influencer matrix, activating incremental market growth through differentiated product offering and content innovation. On the JD.com platform, we leveraged its supply chain advantages to deeply engage high-quality consumer groups and uncover growth opportunities in more specialized scenarios. During the Reporting Period, in the 2026 618 Shopping Festival, KOMFYMED achieved year-over-year growth of over 25% in online omnichannel GMV across the entire period, while COLLGENE achieved year-over-year growth of over 30% in online omnichannel GMV across the entire period.
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– 17 – During the Reporting Period, the Group’s direct sales channel generated revenue of approximately RM B2.23 billion, accounting for 76.6% of the total revenue; the distribution channel generated revenue of approximately RM B680 million, accounting for 23.4% of the total revenue. Committing to Goodness for Long-term Success, Adhering to Sustainable Development We actively fulfill our corporate social responsibilities, attach importance to participating in public welfare activities, and are committed to conveying the power of striving for excellence, kindness and beauty. During the Reporting Period, the Company, jointly with public welfare organizations such as the Shaanxi Provincial Charity Federation and the Shaanxi Provincial Youth Development Foundation, carried out multiple charitable donations, galvanizing collective strength for social good through concrete actions. In collaboration with over 40 public hospitals nationwide, we conducted special public welfare consultation events for spring dermatitis and allergy prevention and treatment, helping the public scientifically address skin concerns brought about by seasonal changes. We have participated in the 525 public welfare initiative for 11 consecutive years, jointly with 350 public hospitals nationwide to organize public welfare consultations and free product sampling activities, integrating the concept of scientific skincare into the daily lives of the public. During the Reporting Period, the Group was awarded the title of National Green Factory in recognition of its comprehensive strength in green manufacturing, demonstrating our benchmarking and leading role in building green competitiveness and responding to the national green manufacturing strategy. II. BUSINESS OUTLOOK At the beginning of the “15th Five-Year Plan” period, and under the Company’s goal of returning to growth for the full year, looking ahead to the second half of 2026, we will uphold our long-term strategic focus, continuously deepen our technology R&D layout, and accelerate the industrialization of innovative raw materials and Class III medical devices. Simultaneously, we will advance the deepening of our core brands’ value and the expansion of our brand awareness across all consumer segments, ensuring that our product ecosystem covers the entire lifecycle of our users. Online, we will focus on deepening self-operated platforms; offline, we will strengthen our network from medical institutions to retail terminals. We will also continue to incubate new brands and expand our global presence. Our original aspiration originates from the exploration of bioscience; our vision is tied to safeguarding the health of millions. Through the continuous evolution of our organizational strength, we will steadily advance towards our founding mission.
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– 18 – III. OPERATING RESULTS Revenue For the six months ended 30 June 2026, our total revenue was RM B2,917.7 million, representing a decrease of 6.3% from total revenue of RM B3,112.7 million for the six months ended 30 June 2025, primarily due to the phased sales restructuring within the professional skin treatment products segment. Such restructuring represents the Company’s strategic initiatives to focus on long-term operational quality and reinforce its channel and product competitiveness. As channel operational efficiency and channel structure continue to be optimised, coupled with the growth of new products, the Company’s business is expected to return to a trajectory of steady and sustainable growth. (i) Revenue by Product Category We sell products under multiple product categories in the beauty and health sectors in China, namely (i) professional skin treatment products, and (ii) functional foods and others. The following table sets forth the breakdown of our revenue by product category (medical dressings classified as medical devices) for the periods indicated: For the six months ended 30 June 2026 2025 Amount % Amount % (Unaudited) (Unaudited) (RMB in millions other than percentages) Professional skin treatment products – functional skincare products 2,300.5 78.8 2,409.5 77.4 – medical devices 609.9 20.9 693.2 22.3 Functional foods and others 7.3 0.3 10.0 0.3 Total 2,917.7 100.0 3,112.7 100.0 The decline in our overall revenue was primarily affected by changes in sales of professional skin treatment products. Among them, the decrease in revenue from functional skincare products was mainly due to intensified industry competition and the Company’s ongoing sales structure optimisation initiatives resulted in a decline in revenue from the influencer livestreaming channel. In response, the Company has, on the one hand, continued to strengthen brand content asset development and stepped up efforts to develop its self-operated channels, achieving year-on-year revenue growth in self-operated channels. On the other hand, the star
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– 19 – new product, the “Ultra-Translucent Stick”, rapidly gained traction driven by its exceptional product efficacy, while the product portfolio continues to be refined, effectively offsetting a portion of the downward sales trend. Revenue from medical devices decreased, primarily due to changes in the operating environment of offline channels and intensified industry competition, which together exerted pressure on sales performance. (ii) Revenue by Sales Channel During the Reporting Period, we sold our products through direct sales and sales to our distributors. We directly sold products to (i) consumers through direct-to-customer (DTC) stores on e-commerce and social media platforms; (ii) e-commerce platforms; and (iii) hospitals, clinics, pharmacy chains, cosmetic store chains and supermarket chains. We also engaged distributors to sell and distribute our products to individual consumers, hospitals, clinics, pharmacy chains, cosmetic store chains and supermarket chains. The following table sets forth the breakdown of our revenue by sales channel in absolute amounts and as a percentage of our total revenue for the periods indicated: For the six months ended 30 June 2026 2025 Amount % Amount % (Unaudited) (Unaudited) (RMB in millions other than percentages) Direct sales – Online direct sales through our DTC stores 1,777.1 60.9 1,816.4 58.4 – Online direct sales to e-commerce platforms 334.5 11.5 391.1 12.6 – Offline direct sales 122.8 4.2 117.8 3.7 Subtotal 2,234.4 76.6 2,325.3 74.7 Sales to distributors 683.3 23.4 787.4 25.3 Total 2,917.7 100.0 3,112.7 100.0 Direct sales Online direct sales through our DTC stores During the Reporting Period, revenue from online direct sales through our DTC stores amounted to RM B1,777.1 million, representing a decrease of 2.2% as compared to the corre sponding period in 2025 and acc ounting fo r 60.9% of total revenue for the Reporting Period. Such decrease was primarily attributable to the
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– 20 – Company’s sales structure adjustment, which resulted in a year-on-year decrease in revenue from the influencer livestreaming channel. At the same time, the Company continued to strengthen refined multi-platform online operations, achieving year- on-year revenue growth in self-operated channels. Online direct sales to e-commerce platforms During the Reporting Period, revenue from online direct sales to e-commerce platforms amounted to RM B334.5 million, representing a decrease of 14.5% as compared to the corresponding period in 2025, accounting for 11.5% of total revenue for the Reporting Period. Such decrease was primarily attributable to intensified industry competition, as well as the optimisation of inventory turnover and replenishment cadence for the JD.com channel compared with the same period last year. The Company will continue to deepen its collaboration efficiency with the JD.com platform to drive improvements in both revenue quality and profitability. Offline direct sales During the Reporting Period, revenue from offline direct sales amounted to RMB122.8 million, representing an increase of 4.2% as compared to the corresponding period in 2025 and accounting for 4.2% of total revenue for the Reporting Period. Such increase was attributable to, on the one hand, the Group’s proactive efforts to develop new high-quality growth channels and strengthen in-store marketing, terminal merchandising and staff training; and on the other hand, the Group’s continued expansion of KOMFYMED brand experience stores in cities such as Chongqing, Qingdao and Shenzhen, thereby increasing sales touchpoints. Sales to distributors During the Reporting Period, revenue from sales to distributors amounted to RMB683.3 million, representing a decrease of 13.2% as compared to the corresponding period in 2025, accounting for 23.4% of total revenue for the Reporting Period. The revenue pressure during the reporting period was primarily attributable to the relatively weak end-consumer environment in offline channels and the corresponding adjustment in operational cadence, which led to more prudent ordering practices among distributors and consequently a decline in sales to distributors.
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– 21 – (iii) Revenue by Brand During the Reporting Period, we generated revenue primarily from the sales of products under KOMFYMED and COLLGENE. The following table sets forth a breakdown of our revenue by brand for the periods indicated: For the six months ended 30 June 2026 2025 Amount % Amount % (Unaudited) (Unaudited) (RMB in millions other than percentages) Professional skin treatment products – KOMFYMED 2,347.0 80.4 2,541.9 81.7 – COLLGENE 498.9 17.1 502.7 16.1 – Other brands 64.5 2.2 58.1 1.9 Functional foods and others 7.3 0.3 10.0 0.3 Total 2,917.7 100.0 3,112.7 100.0 KOMFYMED During the Reporting Period, the sales revenue from KOMFYMED amounted to RMB2,347.0 million, representing a decrease of 7.7% as compared to the corresponding period in 2025 and accounting for 80.4% of total revenue for the Reporting Period. Such decrease was primarily attributable to intensified industry competition and sales structure adjustment, which resulted in a decrease in revenue from the influencer livestreaming channel. COLLGENE During the Reporting Period, the sales revenue from COLLGENE amounted to RMB498.9 million, remaining substantially flat compared to the corresponding period in 2025 and accounting for 17.1% of total revenue for the Reporting Period. Other Brands During the Reporting Period, the sales revenue from other brands amounted to RMB64.5 million, representing an increase of 11.0% as compared to the corresponding period in 2025 and accounting for 2.2% of total revenue for the Reporting Period. Such increase was attributable to the further expansion of Ke Yu (̙ཫ) across all channels.
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– 22 – Functional foods and others During the Reporting Period, the sales revenue from functional foods and others amounted to RM B7.3 million, representing a decrease of 27.0% as compared to the corresponding period in 2025 and accounting for 0.3% of total revenue for the Reporting Period. Cost of sales For the six months ended 30 June 2026, cost of sales amounted to RMB599.3 million, representing an increase of 5.1% from RMB570.3 million for the six months ended 30 June 2025. Such increase was mainly due to changes in product category structure. Gross profit and gross profit margin For the six months ended 30 June 2026, gross profit amounted to RMB2,318.4 million, representing a decrease of 8.8% from RMB2,542.3 million for the six months ended 30 June 2025, w hich was mainly due to the decrease in sales revenue an d the increase in cost of sales. Gross profit margin decreased from 81.7% for the six months ended 30 June 2025 to 79.5% for the six months ended 30 June 2026. The fluctuation was primarily attributable to the Company’s ongoing expansion of its product portfolio, the Company broadened its skincare offerings to include additional product categories beyond dressings and serums, which resulted in structural fluctuations in the overall gross profit margin. Going forward, the Company will continue to optimise its product mix to cover a wider user base. As revenue scale grows, the Company expects to progressively unlock the scale effects of its new product categories, thereby enhancing overall risk-resistance capacity and profitability resilience. Selling and distribution expenses For the six months ended 30 June 2026, selling and distribution expenses amounted to RMB1,266.8 million, representing an increase of 19.7% from RMB1,058.6 million for the six months ended 30 June 2025. Such increase was mainly due to the Company’s continued scale-up of its long-term brand-building efforts, with increased investments in brand audience development and consumer education. In addition, expenditures related to new product launches, self-operated channel development, and refined user operations also rose. Coupled with the ongoing channel structure adjustment during the period, the fluctuation in expense ratios has been somewhat amplified. Going forward, the Company will continue to enhance the efficiency of its marketing investments and dynamically adjust the pace of such investments to support the long-term and healthy development of its business.
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– 23 – Research and development costs For the six months ended 30 June 2026, research and development costs amounted to RMB45.5 million, representing an increase of 10.5% from RMB41.2 million for the six months ended 30 June 2025, and accounting for 1.6% and 1.3% of our revenue for the Reporting Period and for the corresponding period in 2025, respectively. Such increase was mainly attributable to our continued strengthening of R&D investment in pipeline products and fundamental research. Other income For the six months ended 30 June 2026, other income amounted to RMB142.1 million, representing an increase of 106.6% from RMB68.8 million for the six months ended 30 June 2025. Such increase was mainly attributable to the increase in interest income. Other gains, net For the six months ended 30 June 2026, other net gains amounted to RMB21.1 million, representing an increase of 17.9% from RMB17.9 million for the six months ended 30 June 2025. Such increase was mainly attributable to the increase in wealth management income. Administrative expenses For the six months ended 30 June 2026, administrative expenses amounted to RMB79.9 million, representing a decrease of 3.3% from RM B82.6 million for the six months ended 30 June 2025. Such decrease was primarily attributable to a reduction in share- based compensation expenses for management personnel. Income tax expense For the six months ended 30 June 2026, income tax expense amounted to RM B155.4 million, representing a decrease of 40.6% from RM B261.7 million for the six months ended 30 June 2025, which was mainly due to the decrease in our taxable profit. Profit for the period As a result of the foregoing, for the six months ended 30 June 2026, profit for the period amounted to RM B939.5 million, representing a decrease of 20.5% from RM B1,182.4 million for the six months ended 30 June 2025. Basic and diluted earnings per share For the six months ended 30 June 2026, the basic earnings per share amounted to RMB0.89, representing a decrease of 21.9% from RM B1.14 for the six months ended 30 June 2025. For the six months ended 30 June 2026, the diluted earnings per share amounted to RM B0.89, representing a decrease of 21.2% from RM B1.13 for the six months ended 30 June 2025. The decrease in basic and diluted earnings per share was mainly due to the decrease in profits during the Reporting Period.
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– 24 – Gearing ratio Gearing ratio represents the percentage of interest-bearing borrowings to total equity. As of 30 June 2026, we did not have any outstanding bank loans or other borrowings. As a result, gearing ratio was not applicable as of 30 June 2026. INTEREST EXPENSE OF BANK AND OTHER BORROWINGS As of 30 June 2026, the Group had no bank and other borrowings, and incurred no related interest expenses. TREASURY POLICY If the Company determines that its cash requirements exceed the amount of cash and cash equivalents then on hand, it may seek to issue equity or debt securities or obtain credit facilities. PLEDGE OF ASSETS As of 30 June 2026, the Group did not pledge any assets. MATERIAL INVESTMENTS, MATERIAL ACQUISITIONS AND DISPOSALS For the six months ended 30 June 2026, the Group had no material investments with a value of 5% or more of the Group’s total assets as of 30 June 2026 (including any investment in an investee company with a value of 5% or more of the Group’s total assets as at 30 June 2026), nor had any material acquisitions or disposals of subsidiaries, associates and joint ventures. FUTURE PLANS FOR MATERIAL INVESTMENTS AND CAPITAL ASSETS The Group had no specific plan for material investments and purchase of capital assets as of 30 June 2026. LIQUIDITY AND CAPITAL RESOURCES As of 30 June 2026, our liquidity amounted to RMB4,852.5 million, which consisted of cash and cash equivalents, representing a decrease of 23.1% from RM B6,306.2 million as of 31 December 2025. RISK MANAGEMENT Foreign Currency Risk The Group has transactional currency exposures. Such exposures arise from currencies other than the units’ functional currencies. As the Board considered foreign currency exposure to be insignificant to the Group, it did not use any financial instruments such as forward exchange rate contract to hedge the risks.
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– 25 – Credit Risk Receivable balances are monitored on an on-going basis, and the Group’s exposure to bad debts risk is not significant. As of the end of the Reporting Period, the Group was subject to concentrations of credit risk to some extent, as our cash and cash equivalents were deposited in a few financial institutions. As of the end of the Reporting Period, the cash and cash equivalents were deposited in highly trustworthy financial institutions without significant credit risk. There are no significant concentrations of credit risk within the Group in respect of trade and other receivables. Liquidity Risk In the management of the liquidity risk, our Group monitors and maintains a level of cash and cash equivalents which are deemed adequate by the management of the Group to finance our operations and mitigate the effects of fluctuations in cash flows. CONTINGENT LIABILITIES As of 30 June 2026, the Group had no material contingent liabilities. CAPITAL COMMITMENTS AND CAPITAL EXPENDITURES As of 30 June 2026, our ca pital commitments mainly consisted of plant, machinery and buildings amounting to RM B330.6 million. The Company recorded capital expenditures of RMB66.8 million for the six months ended 30 June 2026, which were primarily used for the construction of new factories and the purchase of production line equipment. EMPLOYEES, TRAINING AND REMUNERATION POLICIES As of 30 June 2026, the Group had 2,319 full-time employees, the majority of whom were based in Shaanxi Province, China. The following table sets forth the number of employees of the Group categorized by function as of 30 June 2026: Function Number of Employees % of Total Manufacturing 900 38.8 Research and development 200 8.6 Sales and marketing 736 31.8 General and administration 483 20.8 Total 2,319 100.0 Our success depends on our ability to attract, retain and motivate qualified personnel. We recruit employees through channels such as campus recruitment and experienced personnel hiring to reach talents with education background in relevant subjects or work experiences in relevant industries for our research and development, sales, management, operation and other teams. We evaluate each candidate based on his/her educational background, expertise, necessary skills, interview performance, relevant experience, and professional ethics. As part of our human resources strategy, we offer employees competitive salaries, performance
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– 26 – based cash bonuses and other incentives. We have adopted a comprehensive training protocol, pursuant to which we provide pre-employment training to our new employees and pre-job transfer training to internal transferred employees, and continuing technical training to our employees on a regular basis. We also provide necessary training to employees who are responsible for quality control to ensure that they are competent for their work. In December 2021, the Company adopted a restricted share unit (the “ RSU ”) scheme (the “RSU Scheme ”) to improve the Group’s employee incentive and remuneration mechanism, attract and retain the senior management team and core talents. The maximum number of underlying shares of all RSUs granted under the RSU Scheme in aggregate shall not exceed 19,000,000 shares, representing approximately 1.79% of the total issued share capital of the Company as at the date of this results announcement. Prior to the Company’s listing on the Stock Exchange, 83 RSU Scheme participants had been granted RSUs under the RSU Scheme involving a total of 19,000,000 underlying shares. On 17 August 2023, the 2023 share option scheme (the “ 2023 Share Option Scheme ”) and the 2023 share award scheme (the “ 2023 Share Award Scheme ”) were adopted at the general meeting of the Company. The purposes of these schemes were, among others, to attract suitable talents to promote further growth and development of the Group. The maximum number of shares may be issued pursuant to the 2023 Share Option Scheme and the 2023 Share Award Scheme in aggregate will be 99,500,000 shares, representing 9.37% of the total number of shares in issue of the Company as at the date of this results announcement. The maximum number of shares may be issued to service provider participants pursuant to the 2023 Share Option Scheme and the 2023 Share Award Scheme in aggregate will be 19,900,000 shares, representing 1.87% of the total number of shares in issue of the Company as at the date of this results announcement. On 28 December 2023, the Company granted an aggregate of 20,000,000 options to 128 eligible participants pursuant to the 2023 Share Option Scheme to subscribe for ordinary shares of US$0.00001 each in the share capital of the Company. For details, please refer to the announcement of the Company published on the Stock Exchange on 28 December 2023. INTERIM DIVIDENDS The Board has resolved not to recommend the distribution of interim dividends for the six months ended 30 June 2026.
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– 27 – PURCHASE, REDEMPTION OR SALE OF THE COMPANY’S LISTED SECURITIES During the Reporting Period, the Company purchased certain of its shares pursuant to the general mandate granted to the Directors by the shareholders at the annual general meeting of the Company held on 13 June 2025. Details are set out below: Price Paid Per Share Month of Repurchase Number of Shares Repurchased Highest Price Paid Lowest Price Paid Aggregate Consideration (excluding brokerage and other expenses) (HK$) (HK$) (HK$) January 2026 4,000,000* 36.32 33.74 139,749,968 * All such repurchased Shares have been cancelled on 20 April 2026. The purchase of such shares is intended to benefit all shareholders by improving financial indicators of the Company including earnings per share and reflects the confidence of the Board and the management team in the long-term strategy and growth of the Group. Save as disclosed above, neither the Company nor any of its subsidiaries have purchased, sold or redeemed any of the Company’s securities (including the sale of treasury shares) during the Reporting Period. As at 30 June 2026, the Company did not hold any treasury shares. COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE The Company is committed to achieving high standards of corporate governance with a view to safeguarding the interests of its shareholders. The Directors are aware of the importance of incorporating elements of good corporate governance into the Group’s management structure and internal control procedures to achieve effective accountability. The Company has adopted the Corporate Governance Code (the “ Corporate Governance Code ”) contained in Appendix C1 to the Listing Rules as its own code of corporate governance. The Company has complied with all applicable code provisions set out in the Corporate Governance Code for the six months ended 30 June 2026, save for the deviations from code provision C.2.1. According to code provision C .2.1 under the Corporate Governance Code, the roles of chairman of the Board and chief executive officer should be separate and should not be performed by the same individual. The division of responsibilities between the chairman of the Board and chief executive officer should be clearly established and set out in writing. The roles of chairman of the Board and the chief executive officer are currently performed by Mr. Yan Jianya as the two functions have not been separated by the Company. In view of Mr. Yan’s substantial contribution to the Group since its establishment and his extensive experience, the Company considers that having Mr. Yan Jianya acting as both the chairman of the Board and chief executive officer will provide strong and consistent leadership to the Group and facilitate the efficient execution of the business strategies of the Company. The
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– 28 – Company considers it appropriate and beneficial to its business development and prospects that Mr. Yan Jianya continues to act as both the chairman of the Board and chief executive officer, and therefore it is currently not proposed to separate the functions of chairman of the Board and chief executive officer. COMPLIANCE WITH THE MODEL CODE BY DIRECTORS The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the “ Model Code ”) set out in Appendix C3 to the Listing Rules as its own code of conduct regarding Directors’ securities transactions of the Company. Having made specific enquiry to all Directors, all Directors confirmed that they have fully complied with all relevant requirements set out in the Model Code during the Reporting Period and up to the date of this results announcement. PROCEEDS FROM THE PLACING OF EXISTING SHARES AND TOP-UP SUBSCRIPTION OF NEW SHARES UNDER THE GENERAL MANDATE Placing and Subscription Completed on 24 May 2024 On 16 May 2024 (after trading hours), the Company, Juzi Holding Co., Ltd (the “ Top-up Vendor ”) and Goldman Sachs (Asia) L.L.C. (the “ Placing Agent ”) entered into a placing and subscription agreement (the “ Placing and Subscription Agreement ”), pursuant to which, (i) the Top-up Vendor has agreed to sell, and the Placing Agent has agreed, as the Top-up Vendor’s agent, on a best effort basis, to procure not less than six placees, who will be professional, institutional, corporate or other investors, and who and whose ultimate beneficial owners shall be the Independent Third Parties, to purchase 33,220,000 shares held by the Top-up Vendor at a price of HK$49.40 per share (the “ Vendor Placing ”), and (ii) the Top-up Vendor has conditionally agreed to subscribe for, and the Company has conditionally agreed to issue, such number of new shares equal to the shares actually placed under the Vendor Placing at a price equal to the placing price (the “ Subscription ”). On 21 May 2024 and 24 May 2024, the Vendor Placing and the Subscription were completed respectively. For details, please refer to the announcements of the Company dated 17 May 2024 and 24 May 2024, respectively. The net proceeds received by the Company from the Subscription are approximately HK$1,627 million (after deducting the commissions and estimated expenses), among which, (i) approximately 90%, or HK$1,464.3 million, will be used for the development of core business and the layout of ecosystem, including but not limited to brand promotion, marketing and research and development investment; and (ii) approximately 10%, or HK$162.7 million, will be used for replenishment of liquidity and general corporate purposes. During the Reporting Period and as of the date of this results announcement, there is no change to the intended use of the net proceeds from the Vendor Placing and the Subscription disclosed above, and the Company plans to gradually utilize the net proceeds in accordance with such intended use within the next two years based on its actual business situations. Such expected timetable is based on the Company’s best estimation of market conditions and business operation in the future, and is subject to change depending on the development of current and future market conditions as well as actual business needs.
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– 29 – As of 30 June 2026, the details of the Group’s utilization of the net proceeds from the Subscription are set out in the table below: Purpose % of use of proceeds raised Net proceeds Unutilized amount as at 1 January 2026 Utilized amount in 2026 Accumulated utilized amount as at 30 June 2026 Unutilized amount as at 30 June 2026 (HK$ million) (HK$ million) (HK$ million) (HK$ million) (HK$ million) Development of core business and the layout of ecosystem, including but not limited to brand promotion, marketing and research and development investment 90% 1,464.3 509.2 141.4 1,096.5 367.8 Replenishment of liquidity and general corporate purposes 10% 162.7 77.2 23.7 109.2 53.5 Total 100% 1,627 586.4 165.1 1,205.7 421.3 Placing and Subscription Completed on 28 April 2025 On 16 April 2025 (after trading hours), the Company, Juzi Holding Co., Ltd. (the “ Top-up Vendor ”), and Goldman Sachs (Asia) L.L.C., China International Capital Corporation Hong Kong Securities Limited and The Hongkong and Shanghai Banking Corporation Limited (collectively, the “ Joint Bookrunners ”) entered into a placing and subscription agreement (the “ Placing and Subscription Agreement ”), pursuant to which, (i) the Top-up Vendor has agreed to sell, and the Joint Bookrunners have severally agreed, as agent for the Top-up Vendor, to use its best efforts to procure not less than six placees (who will be professional, institutional, corporate or other investors, and who and whose ultimate beneficial owners shall be Independent Third Parties) to purchase 35,000,000 shares held by the Top-up Vendor at a price of HK $66.65 per share (the “ Vendor Placing ”), and (ii) the Top-up Vendor has conditionally agreed to subscribe for, and the Company has conditionally agreed to issue, such number of new shares equal to the shares actually placed under the Vendor Placing at a price equal to the placing price (the “ Subscription ”). On 23 April 2025 and 28 April 2025, the Vendor Placing and the Subscription were completed respectively. For details, please refer to the Company’s announcements dated 17 April 2025 and 28 April 2025, respectively. On 16 April 2025 (i.e. the date of the Placing and Subscription Agreement), the closing price of the Company’s Shares quoted on the Stock Exchange was HK $73.65 per Share. The net subscription price of the placed shares (after deducting commissions and estimated expenses) was approximately HK $65.54 per subscribed share. Given that the Company intends to further enhance brand promotion, marketing, and R&D investment, as well as expand its product categories and overseas business, the Board believes that these businesses also require a continuous increase in substantial funds. In view of the Company’s good performance, continuous growth plans, and global market conditions, the Board therefore believes that the placing and subscription provide an opportunity to further enhance the Group’s financial strength to seize the above-mentioned growth opportunities.
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– 30 – The net proceeds received by the Company from the Subscription are approximately HK$2,294 million (after deducting commissions and estimated expenses), among which (i) 90% are pr oposed to be applied for the development of core business and the layout of ecosystem, including but not limited to brand promotion, marketing, category expansion, overseas business and R&D investment; and (ii) 10% are proposed to be used for the replenishment of liquidity and general corporate purposes. During the Reporting Period and as of the date of this results announcement, there is no change to the intended use of the net proceeds from the Vendor Placing and the Subscription disclosed above, and the Company plans to gradually utilize the net proceeds in accordance with such intended use within the next five years based on its actual business situations. Such expected timetable is based on the Company’s best estimation of market conditions and business operation in the future, and is subject to change depending on the development of current and future market conditions as well as actual business needs. As of 30 June 2026, the details of the Group’s utilization of the net proceeds from the Subscription are set out in the table below: Purpose % of use of proceeds raised Net proceeds Unutilized amount as at 1 January 2026 Utilized amount in 2026 Accumulated utilized amount as at 30 June 2026 Unutilized amount as at 30 June 2026 (HK$ million) (HK$ million) (HK$ million) (HK$ million) (HK$ million) Development of core business and the layout of ecosystem, including but not limited to brand promotion, marketing, category expansion, overseas business and research and development investment 90% 2,064.6 1,958.0 240.9 347.5 1,717.1 Replenishment of liquidity and general corporate purposes 10% 229.4 202.6 21.0 47.8 181.6 Total 100% 2,294 2,160.6 261.9 395.3 1,898.7 SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD Save for those disclosed in this results announcement, there were no significant event that would have a material impact on the Group’s business operation and finance subsequent to the Reporting Period and up to the date of this results announcement.
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– 31 – SUFFICIENCY OF PUBLIC FLOAT To the best knowledge of the Directors and based on the information that is publicly available to the Company, at least 25% of the Company’s issued share capital were held by public for the six months ended 30 June 2026 and as at the date of this results announcement. AUDIT COMMITTEE The Company’s Audit Committee is comprised of Ms. Wong Sze Wing (chairperson), Mr. Huang Jin and Mr. Shan Wenhua, all of whom are independent non-executive Directors. The Company’s Audit Committee has reviewed the unaudited interim results and interim report of the Company for the six months ended 30 June 2026. The unaudited interim results for the six months ended 30 June 2026 have been reviewed by the Company’s independent auditors, KPMG, in accordance with International Standard on Review Engagements 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the International Auditing and Assurance Standards Board, and the adequate disclosures have been made. PUBLICATION OF THE INTERIM RESULTS ANNOUNCEMENT AND INTERIM REPORT This results announcement has been published on the website of the Stock Exchange (www.hkexnews.hk) and the website of the Company (www.xajuzi.com). The interim report of the Company for the six months ended 30 June 2026 will be published on the aforesaid websites of the Stock Exchange and the Company, and will be dispatched to the shareholders of the Company who have indicated their intention to receive printed copies of the Company’s communications. By Order of the Board Giant Biogene Holding Co., Ltd YAN Jianya Chairman of the Board Hong Kong, 18 August 2026 As of the date of this announcement, the Board comprises Mr. Yan Jianya, Ms. Ye Juan, Ms. Fang Juan, Ms. Zhang Huijuan and Ms. Yan Yubo as executive directors, and Mr. Huang Jin, Mr. Shan Wenhua and Ms. Wong Sze Wing as independent non-executive directors.