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 r epresentation 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. The United Laboratories International Holdings Limited 聯邦制藥國際控股 有限公司 (Incorporated in the Cayman Islands with limited liability) (Stock Code: 3933) Interim Results Announcement For the six months ended 30 June 2026 FINANCIAL HIGHLIGHTS Six months ended 30 June 2026 2025 Decrease RMB’000 RMB’000 % Revenue 6,165,949 7,518,683 (18.0%) EBITDA 920,817 2,752,120 (66.5%) Profit before taxation 465,143 2,419,651 (80.8%) Profit for the period attributable to the owners of the Company 347,644 1,894,314 (81.6%) RMB cents RMB cents Earnings per share - Basic 17.62 104.26 (83.1%) Interim dividend (per share) - 16.0 (100.0%)
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- 2 - The Board of Directors (the “Board”) of The United Laboratorie s International Holdings Limited (the “Company”) announces the unaudited condensed consolidated results of the Company and its subsidiaries (the “Group”) for the six months ended 30 June 2026 together with the com parative figures for the corresponding period in 2025 as follows: CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2026 Six months ended 30 June Notes 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Revenue 3 6,165,949 7,518,683 Cost of sales (4,046,465) (3,594,809) Gross profit 2,119,484 3,923,874 Other income 4 138,498 128,480 Other gains and losses, net 5 (177,874) 61,183 Selling and distribution expenses (678,006) (682,161) Administrative expenses (458,059) (435,200) Research and development expenditures (438,925) (498,941) Other expenses (9,423) (40,531) Impairment losses reversed (recognised) under expected credit loss model, net of reversal 14,132 (16,284) Share of results of an associate 264 28 Finance costs 6 (44,948) (20,797) Profit before taxation 465,143 2,419,651 Tax expense 7 (120,978) (526,144) Profit for the period 8 344,165 1,893,507 Other comprehensive income (expense) Item that may be reclassified subsequently to profit or loss: Exchange differences arising on translation of foreign operations 4,193 (684) Total comprehensive income for the period 348,358 1,892,823 Profit (loss) for the period attributable to: Owners of the Company 347,644 1,894,314 Non-controlling interests (3,479 ) (807) 344,165 1,893,507 Total comprehensive income (expense) for the period attributable to: Owners of the Company 351,837 1,893,630 Non-controlling interests (3,479 ) (807) 348,358 1,892,823 Earnings per share 9 RMB cents RMB cents - Basic 17.62 104.26
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- 3 - CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2026 30 June 31 December Notes 2026 2025 RMB’000 RMB’000 (Unaudited) (Audited) Non-current assets Property, plant and equipment 11 11,582,023 11,557,901 Right-of-use assets 449,273 441,833 Goodwill 3,031 3,031 Intangible assets 293,247 274,195 Interests in an associate 7,325 7,061 Deposits for acquisition of property, plant and equipment 104,770 75,818 Deposits for acquisition of intangible assets 1,402 3,729 Deferred tax assets 84,341 67,399 12,525,412 12,430,967 Current assets Inventories 2,680,279 2,369,133 Trade and bills receivables, other receivables, deposits and prepayments 12 5,159,174 4,741,718 Pledged bank deposits 15 660,248 628,503 Derivative financial instruments 1,728 - Tax recoverable 16,474 123,765 Cash and cash equivalents 11,069,413 10,606,390 19,587,316 18,469,509 Current liabilities Trade and other payables 13 7,830,128 7,890,941 Contract liabilities 32,306 76,785 Dividend payables 10 512,987 - Derivative financial instruments 14,136 - Lease liabilities 4,040 4,969 Borrowings - due within one year 1,180,823 2,106,458 9,574,420 10,079,153 Net current assets 10,012,896 8,390,356 Total assets less current liabilities 22,538,308 20,821,323
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- 4 - CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION - continued AT 30 JUNE 2026 30 June 31 December Note 2026 2025 RMB’000 RMB’000 (Unaudited) (Audited) Non-current liabilities Deferred tax liabilities 361,934 376,079 Deferred income in respect of government grants 13 95,506 89,644 Derivative financial instruments 22,066 - Lease liabilities 19,852 7,453 Borrowings - due after one year 4,743,600 2,872,831 5,242,958 3,346,007 Net assets 17,295,350 17,475,316 Capital and reserves Share capital 18,396 18,396 Reserves 17,198,071 17,374,558 Equity attributable to owners of the Company 17,216,467 17,392,954 Non-controlling interests 78,883 82,362 Total equity 17,295,350 17,475,316
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- 5 - NOTES TO FINANCIAL STATEMENTS 1. BASIS OF PREPARATION The condensed consolidated financial statements have been pr epared in accordance with Hong Kong Accounting Standard 34 “Interim Financial Reporting ” issued by the Hong Kong Institute of Certified Public Accountants (the “HKICPA”) as well as the applica ble disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (“Stock Exchange”)(the “Listing Rules”). 2. PRINCIPAL ACCOUNTING POLICIES The condensed consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments, which are measured at fair values. Other than change in accounting policies resulting from the appli cation of amendments to HKFRS Accounting Standards, the accounting policies and methods of computat ion used in the condensed consolidated financial statements for the six months ended 30 June 2026 are the same as those presented in the Group’s annual consolidated financial statements for the year ended 31 December 2025. Application of amendments to HKFRS Accounting Standards In the current interim period, the Group has applied the fol lowing amendments to HKFRS Accounting Standards issued by the HKICPA, for the first time, which are mandatorily effective for the Group’s annual period beginning on 1 January 2026 for the preparation of the Gr oup’s condensed consolidated financial statements: Amendments to HKFRS 9 Amendments to the Classification and Measurement of and HKFRS 7 Financial Instruments Amendments to HKFRS 9 Contracts Referencing Nature-dependent Electricity and HKFRS 7 Amendments to HKFRS Annual Improvements to HKFRS Accounting Accounting Standards Standards - V olume 11 The application of the amendments to HKFRS Accounting Standards i n the current interim period has had no material impact on the Group’s financial positions an d performance for the current and prior periods and/or on the disclosures set out in these condensed consolidated financial statements. 3. REVENUE AND SEGMENT INFORMATION The Group is currently organised into three revenue streams, including Intermediate products, Bulk medicine and Finished products. Specifically, the Group’s reportable segments under HKFRS 8 are as follows: 1) Intermediate products - mainly represent sales of 6-AP A products and penicillin G potassium products; 2) Bulk medicine - mainly represent sales of amoxicillin products; and 3) Finished products - mainly represent sales of insulin ser ies products, antibiotics products, ophthalmic products, veterinary drugs and license fee income. The three revenue streams are the operating and reportable segments of the Group on which the Group reports its primary segment information.
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- 6 - 3. REVENUE AND SEGMENT INFORMATION - Continued (a) Segment Revenue and Results For the six months ended 30 June 2026 (Unaudited) Intermediate Bulk Finished Segments products medicine products total Elimination Consolidated RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 REVENUE External sales 703,883 2,595,505 2,764,696 6,064,084 - 6,064,084 Inter-segment sales 1,272,571 552,898 - 1,825,469 (1,825,469 ) - License fee income - - 101,865 101,865 - 101,865 Segment revenue 1,976,454 3,148,403 2,866,561 7,991,418 (1,825,469 ) 6,165,949 Segment profit before research and development expenses 290,060 127,930 690,022 1,108,012 Research and development expenses (included in the measurement of segment profit) ( 98,646 ) (48,278 ) (292,001 ) (438,925 ) RESULT Segment profit 191,414 79,652 398,021 669,087 Share of results of an associate 264 Unallocated other income 87,627 Unallocated corporate expenses (69,400 ) Unallocated other gains and losses, net (178,305 ) Impairment losses of other receivables under expected credit loss model, net of reversal 818 Finance costs (44,948 ) Profit before taxation 465,143
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- 7 - 3. REVENUE AND SEGMENT INFORMATION - Continued (a) Segment Revenue and Results - continued For the six months ended 30 June 2025 (Unaudited) Intermediate Bulk Finished Segments products medicine products total Elimination Consolidated RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 REVENUE External sales 1,010,665 2,529,547 2,544,571 6,084,783 - 6,084,783 Inter-segment sales 1,293,646 469,767 - 1,763,413 (1,763,413) - License fee income - - 1,433,900 1,433,900 - 1,433,900 Segment revenue 2,304,311 2,999,314 3,978,471 9,282,096 (1,763,413) 7,518,683 Segment profit before research and development expenses 798,889 275,776 1,815,116 2,889,781 Research and development expenses (included in the measurement of segment profit) (164,270) (25,127) (309,544) (498,941) RESULT Segment profit 634,619 250,649 1,505,572 2,390,840 Share of results of an associate 28 Unallocated other income 76,026 Unallocated corporate expenses (123,733) Unallocated other gains and losses, net 95,036 Impairment losses of other receivables under expected credit loss model, net of reversal 2,251 Finance costs (20,797) Profit before taxation 2,419,651 (b) Geographical Information The revenue from the external customers by geographical market (irrespective of the origin of the goods) based on the location of the customers are presented below: Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) The People’s Republic of China (“PRC”), including Hong Kong (country of domicile) 4,830,311 4,725,243 Europe 402,011 1,741,465 India 182,254 197,687 Middle East 12,809 13,641 South America 373,154 450,590 Other Asian regions 266,483 258,367 Other regions 98,927 131,690 6,165,949 7,518,683
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- 8 - 4. OTHER INCOME Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Bank interest income 85,397 65,468 Sales of scrap materials 3,020 3,133 Subsidy income (Note) 42,483 54,959 Sundry income 7,598 4,920 138,498 128,480 Note: Subsidy income includes tax subsidy and government grants f rom the PRC government which are specifically for (i) the capital expenditure incur red for plant and machinery, which is recognised as income over the useful life of the related ass ets; (ii) the incentives and other subsidies for research and development activities, which a re recognised upon meeting the attached conditions; and (iii) the incentives which have no speci fic conditions attached to the grants. 5. OTHER GAINS AND LOSSES, NET Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Net foreign exchange loss (186,246 ) (37,058) Net gain on fair value change of derivative financial instrument s 17,398 72,973 (Loss) gain on disposal of financial assets at fair value through profit or loss (7,436) 74,971 Net gain on disposal of property, plant and equipment 344 7,556 Loss on disposal of leasehold land (652) - Written-off of property, plant and equipment (1,325 ) (57,389) Others 43 130 (177,874) 61,183 6. FINANCE COSTS Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Interest on borrowing s 55,857 41,229 Interest on lease liabilities 662 377 56,519 41,606 Less: amounts capitalised in property, plant and equipment (11,571 ) (20,809 ) 44,948 20,797 Borrowing costs capitalised during the current interim period a rose on the general borrowing pool and are calculated by applying a capitalisation rate of 2.56% (s ix months ended 30 June 2025: 2.55%) per annum to expenditure on qualifying assets.
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- 9 - 7. TAX EXPENSE Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Current tax Hong Kong profits tax 334 923 PRC enterprise income tax (“EIT”) 105,860 306,813 PRC withholding tax on distributed profi ts of PRC subsidiaries 35,684 - Danish withholding tax on licensing fee income 10,187 143,390 152,065 451,126 Deferred tax (credit) charge (31,087) 75,018 Tax expense 120,978 526,144 Hong Kong Profits Tax is calculated at 16.5% of the estimated assessable profits for both periods. PRC EIT is calculated at the applicable rates of tax prevailing in the areas in which the Group operates, based on the existing legislation, interpretations and practices. Pursuant to the Danish domestic tax law, the withholding tax on royalty payment in Denmark is subject to withholding tax at the statutory rate of 22% on the gross amount. Under the applicable double tax arrangement, the Group is entitled to a reduced rate of 10% for current period. 8. PROFIT FOR THE PERIOD Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Profit for the period has been arrived at after charging /(crediting) : Staff costs, including directors’ emoluments Salaries and other benefits 971,995 931,912 Contributions to retirement benefit schemes 189,676 169,008 Share -based compensation expense 4,429 11,725 1,166,100 1,1 12,645 Depreciation Depreciation of right-of-use assets 16,108 8,476 Depreciation of pr operty, plant and equipment 381,201 293 ,01 4 Amortisation of intangible assets (included in cost of sales) 13,417 10,182 Write-down of inventories (reversed) recognised, net (included in cost of sales) (39,680) 2,824 Cost of inventories reco gnised as expenses 4,006,785 3,526,447
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- 10 - 9. EARNINGS PER SHARE The calculation of basic earnings per share attributable t o the owners of the Company is based on the following data: Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Earnings Earnings for the purposes of basic earnings per share being profit for the period attributable to the owners of the Company 347,644 1,894,314 Six months ended 30 June 2026 2025 ’000 ’000 (Unaudited) (Unaudit ed) Number of shares Weighted average number of ordinary shares for the purpose of basic earning s per share 1,972,631 1,816,934 No diluted earnings per share for the six months ended 30 June 2026 a nd 2025 were presented as there were no potential ordinary shares in issue for both periods. 10. DIVIDENDS Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Dividends for ordinary shareholders of the Company recognised as distribution during the period - 2025 final dividend RMB26 cents (2025: 2024 final dividend RMB28 cents) per share 512,987 508,767 - 2024 special dividend RMB12 cents per share - 218,044 512,987 726,811 The 2025 final dividend has been subsequently settled in July 2026. The Board does not recommend payment of an interim dividend for the six mont hs ended 30 June 2026 (six months ended 30 June 2025: RMB16 cents per share). 11. MOVEMENTS IN PROPERTY , PLANT AND EQUIPMENT The Group incurred approximately RMB429,637,000 (six months ended 30 June 2025: RMB1,639,948,000) on addition of property, plant and equipment to expand and upgrade certain production plants and office buildings primarily in the PRC, during the six months ended 30 June 2026. During the current interim period, the Group disposed of and written off of certain plant and machinery with an aggregate carrying amount of RMB20,014,000 (six months ended 30 June 2025: RMB70,559,000) for cash proceeds of RMB19,033,000 (six months ended 30 June 2025: RMB20,726,000), resulting in a gain on disposal of RMB344,000 (six months ended 30 June 2025: gain on disposal: RM7,556,000) and written off of RMB1,325,000 (six months ended 30 June 2025: RMB57,389,000 ).
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- 11 - 12. TRADE AND BILLS RECEIV ABLES, OTHER RECEIV ABLES, DEPOSITS AND PREPAYMENTS 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (A udited) Trade receivables from contracts with customers 2,168,462 2,248,570 Less: allowance for credit losses (7,588) (31,812) Banker’s acceptance bills receivables 2,348,266 1,982,202 Less: allowance for credit losses (3,489) (174) Consideration receivables 339,574 339,574 Less: allowance for credit losses (339,574) (339,574) Value-added tax receivables 345,869 268,396 Other receivables, deposits and prepayments 327,600 287,707 Less: allowance for credit losses (19,948) (13,171) 5,159,174 4,741,718 The Group normally allows a credit period of ranging from 45 da ys to 180 days (31 December 2025: from 45 days to 180 days) to its trade customers, and may be extended to selected customers depending on their trade volume and settlement with the Group. The banker’s acceptance bills receivables have a general maturity period of between 90 days and 1 year (31 December 2025: between 90 days and 1 year). The following is an analysis of trade receivables by age, net of allowance for credit losses, presented based on dates of transferring control of the goods, and an analysis of banker’s acceptance bills receivables by age, net of allowance for credit losses, presented based on the bills issuance date, at the end of the reporting period: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (A udited) Trade receivables from contracts with customers 0 to 30 days 1,047,485 1,018,465 31 to 60 days 419,144 414,069 61 to 90 days 356,495 333,415 91 to 120 days 232,921 191,235 121 to 180 days 98,654 128,585 Over 180 days 6,175 130,989 2,160,874 2,216,758 Banker’s acceptance bills receivables 0 to 30 days 422,191 362,012 31 to 60 days 382,445 305,817 61 to 90 days 472,730 418,932 91 to 120 days 433,472 381,778 121 to 180 days 613,968 497,646 Over 180 days 19,971 15,843 2,344,777 1,982,028
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- 12 - 13. TRADE AND OTHER PAYABLES The Group normally receives credit terms of up to 120 days a nd 180 days for trade payables and trade payables under supplier finance arrangement, respectively, fr om its suppliers. The following is an analysis of the trade payables and trade payables under suppli er finance arrangement by age, presented based on the invoice date or bills issuance date at the end of the reporting period: 30 June 31 December 2026 2025 RMB’000 RMB’000 (Unaudited) (Audited) Trade payables 0 to 90 days 1,209,672 1,234,969 91 to 180 days 726,523 355,830 Over 180 days 114,740 20,415 2,050,935 1,611,214 Trade payables under supplier finance arrangement (note) 0 to 90 days 1,476,905 986,000 91 to 180 days 912,382 1,242,006 Over 180 days - 484 2,389,287 2,228,490 Other payables and accruals 558,393 693,970 Other tax payable 187,511 204,743 Accrual of freight expense 64,392 60,222 Accrual of salary, staff welfare and unclaimed annual leave 262,779 312,627 Accrual of water, electricity fee and steam 455,011 558,132 Deferred income in respect of government grants 105,011 90,338 Payables in respect of the acquisition of property, plant and equipment 1,852,315 2,220,849 7,925,634 7,980,585 Less: Amount due within one year shown under current liabilities (7,830,128 ) (7,890,941 ) Amount shown under non-current liabilities 95,506 89,644 Note: These relate to trade payables in which the Group has issued banker’s acceptance bills to the relevant suppliers for future settlement of trade payabl es. The Group continues to recognise these trade payables as the relevant banks are obliged t o make payments only on due dates of the bills, under the same conditions as agreed with the suppliers without further extension. 14. CAPITAL COMMITMENTS As at 30 June 2026, the Group had commitments for capital expenditure of RMB1,306,103,000 (31 December 2025: RMB1,319,378,000) in respect of the acquisition of property, plant and equipment contracted for but not provided in the condensed consolidated financial statements .
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- 13 - 15. PLEDGE OF OR RESTRICTIONS ON ASSETS Pledge of assets The Group had pledged the following assets to banks as securit ies against banking facilities granted to the Group at the end of the reporting period: 30 June 2026 31 December 2025 RMB’000 RMB’000 (Unaudited) (Audited) Property, plant and equipment, at net book value 2,265,551 1,582,221 Right -of -use assets , at net book value 168,188 160,113 Ban ker’s acceptance b ills receivables 94,975 145,190 Restrictions on assets In addition, lease liabilities of RMB 23,892,000 (31 December 2025: RMB 12,422,000 ) are recognised with related right-of-use assets of RMB 25,101,000 (31 December 2025: RMB 11,682,000) as at 30 June 2026. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor and the relevant leased assets may not be used as security for borrowing purposes . 16. RELATED PARTY TRANSACTIONS (a) The Group’s key management personnel are all director s of the Company, including chief executives, and the remuneration to the directors of the Company during the period is as follows: Six months ended 30 June 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) Fees 334 357 Salaries and other benefits 9,925 9,723 Contributions to r etirement benefits scheme s 23 25 10,282 10,105 (b) During the current interim period, the Group entered into the following transactions with a related party: Nature of Six months ended 30 June Name of related party transaction/balance Relationship 2026 2025 RMB’000 RMB’000 (Unaudited) (Unaudited) 寧波普邦生物科技有限公司 Sale of goods Associate 55,876 1,541 Tra de advance Associate - 3,612 Trade and bills receivables Associate 75,292 84 Other receivables Associate - 6
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- 14 - MANAGEMENT DISCUSSION AND ANALYSIS In the first half of 2026, China’s national economy withstood pressure and maintained an overall steady development momentum. The pharmaceutical industry has accelera ted its pace of innovative transformation and global expansion. Meanwhile, policies such as medical insura nce cost control and centralised procurement have entered a phase of normalised operation, and enterprises have established mature response models in pricing systems and cost management. Recently, the “N ational Health 15th Five-Year Plan” explicitly proposed, for the first time, full-chain support f or the development of innovative drugs. With the continued release of policy dividends, the industry has entered a cr itical period of transformation and upgrading. Against this backdrop, the Group continued to advance its innova tive R&D and global expansion strategies. At the same time, the Group further tapped the market pot ential of its traditional core business to drive quality improvement and efficiency enhancement. All business segments developed in a coordinated manner, further consolidating the Group’s industry-leading position. Innovative Research and Development The Group regards innovative R&D as the core engine driving e nterprise development, continuously increasing R&D investment and attracting scientific talent s. Through diversified collaboration models such as independent R&D and cooperative development, it expanded its innovative product pipeline, enhanced new drug R&D and clinical capabilities, and accelerated the development and practical application of innovative technologies and products. During the Period, the Group invested a total of RMB469,100,000 in pharma ceutical research and development, with a year-on-year decrease in R&D of 14.8%, including expensed R&D investment of RMB438,900,000 and capitalisation of R&D investment of RMB30,200,000. The Group has established a comprehensive research and deve lopment system composed of multiple platforms, including biological research and development, chemi cal drug research and development, biological fermentation and chemical, enzymatic synthesis rese arch and development, animal healthcare research and development and clinical research center. At pr esent, the Group had 40 new drug products under development, of which 23 products are Class 1 new drugs, focus ing on the areas of endocrinology, metabolism, autoimmunity, ophthalmology and anti-infection; There are a total of 67 new animal healthcare products under development, fully covering economic and companion ani mals. Furthermore, APIs, the quality and efficacy consistency evaluation of generic drugs, and the research and development of projects related to medical aesthetics are progressing steadily. Progress in Research and Development During the Period, the Group made the following major progress in R&D: - In January, the investigational new drug (IND) application fo r TUL108 for Injection, a Class I new drug , was approved by the U.S. Food and Drug Administration (FDA). - In February, the application for the clinical trial of UBT251 Injection, a Class I new drug, for the indication of moderate to severe obstructive sleep apnea (OS A) with obesity-related comorbidity, received implied approval from China’s National Medical Products Administration (the “NMPA”). - In February, the Phase II clinical study of UBT251 Injection, a Class I new drug , was completed in Chinese patients with overweight/obesity, achieving its predefined goals. - In February, Roxithromycin Capsules (specification: 150mg) passed the quality and efficacy consistency evaluation of generic drugs. - In March, the Phase II clinical study of UBT251 Injection, a Class I new drug , was completed in Chinese patients with Type 2 diabetes, achieving its predefined goals. - In March, the NDA of Insulin Degludec Injection (specifications: 3ml: 300U (refilled pen-type); 3ml: 300U (disposable pen-type)) was approved by the NMPA.
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- 15 - - In April, the clinical trial of Dupilumab Injection received implied approval from the NMPA. - In April, the IND application for the clinical trial of TUL321 Capsules, a Class 1 new drug , was approved by the FDA. - In May, the clinical trial of UBT38006 Injection, a Class 1 new drug , received implied approval from the NMPA. - In May, the IND application for the clinical trial of TUL108 for Injection, a Class 1 new drug , received implied approval from the NMPA. - In June, the IND application for the clinical trial of TUL321 Capsules, a Class 1 new drug , received implied approval from the NMPA. During the Period, the results of the Phase II clinical study of UBT251 Injection were presented at the 86th Scientific Sessions of the American Diabetes Association ( ADA). With the outstanding research data, such results were successfully selected as the Late-Breaking Abstracts at such session, and were officially selected by ADA for inclusion in the Press Briefing and Poster presentation. During the Period, the Group recorded licensing fee income of U S$15,000,000 (approximately RMB 101,900,000), being a milestone payment from Novo Nordisk S/A for a gl obal Phase II clinical trial of UBT251 Injection of overweight or obesity indication, in relation to the previous licensing of the global (excluding Mainland China, Hong Kong SAR, Macau SAR, and Taiwan) development, manufacturing, and commercialisation of UBT251 (GLP-1R/GIPR/GCGR triple agonist). This milestone payment represents the steady progress of UBT251’s global clinical development a nd further validates its clinical value and commercial potential. The licensing fee was received in July 2026. Under the license agreement with Novo Nordisk S/A and subject to the terms and conditions thereof, The United Bio-Technology (Hengqin) Co., Ltd. (a wholly-owned subsidiary of the Group) is eligible to receive potential milestone payments of up to US$1.8 billion subject to the achievement of certain development and sales milestones, plus tiered royalties based on annual net sales in the territory. Class I new drugs under development Project Category Indication Phase UBT251 Injection Chemical drug Overweight/Obesity Phase III clinica l trial UBT251 Injection Chemical drug Diabetes Phase III clinical trial UBT251 Injection Chemical drug MASH Phase II clinical trial UBT251 Injection Chemical drug Chronic kidney disease Phase II clinical tr ial UBT251 Injection Chemical drug OSA Phase III clinical trial UBT37034 for Injection Chemical drug Overweight/Obesity IND approved (Uni ted States) Phase I clinical trial (PRC) UBT38006 Injection Biological drug Diabetes Phase I clinical trial UBT48128 Tablets Chemical drug Diabetes/Weight management IND approved (United States) Pre-clinical trial (PRC) UBT43026 Oral Preparation Chemical drug Hyperlipoproteinemia, atherosclerosis, aortic valve stenosis, etc. Pre-clinical trial UBT42 Biological drug Vitiligo, alopecia areata, other autoimmune diseases Pre-clinical trial UBT49003 for Injection Biological drug Acute Lung Injury/Acute Respiratory Distress Syndrome (ALI/ARDS), etc. Pre-clinical trial UBT506 for Injection Biological drug Moderate to severe Eczema, Asthma Pre-clinical trial
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- 16 - TUL01101 Tablets Chemical drug Rheumatoid arthritis Phase II clinical t rial TUL01101 Tablets Chemical drug Moderate to severe atopic dermatitis Phase III clinical trial TUL01101 Ointment Chemical drug Atopic dermatitis Phase III clinical trial TUL321 Capsules Chemical drug Paroxysmal nocturnal hemoglobinuria IND approved (United States) Phase I clinical trial (PRC) TUL12101 Eye Drops Chemical drug Xerophthalmia Phase II clinical tria l TUL108 for Injection Chemical drug Drug-resistant bacterial infection IND approved (United States) Phase I clinical trial (PRC) LB2332 Chemical drug Fungal infection Pre-clinical trial LB2249 Chemical drug Fat loss and muscle gain Pre-clinical trial LB2237 Chemical drug Hyperlipidemia Pre-clinical trial LB2343 Chemical drug Drug-resistant bacterial infection Pre-clinical trial BUSINESS REVIEW Intermediate Products and Bulk Medicine Business During the Period, the prices of major upstream products gra dually stabilised and recovered, but remained lower than the same period last year. The intermediate product s and bulk medicine segments recorded external sales of RMB703,900,000 and RMB2,595,500,000, respectively, representi ng a year-on-year decrease of 30.4% and increase of 2.6%, respectively. Overseas export recorded sales of RMB1,026,100,000, representing a year-on-year decrease of 5.1%, and accounting for 16.6% of the Group’s total revenue. Currently, the bulk medicine industry remains in a phase of st ructural recovery. Relying on mature large-scale production capabilities, the Group has accelera ted its innovative R&D, continuously optimised and refined its product mix, and consistently reinforced its core advantages within the industrial chain. In addition, the Group has continued to advance its international deve lopment strategy, expanded its global business footprint, deepened cooperation and exchanges with domest ic and overseas customers, and further enhanced brand influence and market competitiveness, providing st rong support for the steady development of the intermediate products and bulk medicine segments. Finished Products Business During the Period, the external sales of finished products was RMB 2,866,600,000 (including license fee income of RMB101,900,000), representing a year-on-year decrease of 27. 9% and accounting for 46.5% of the Group’s total revenue. During the Period, in the national follow-up centralised procureme nt for drugs with expiring agreements (LC-YPJX-2026-1), the Group had a total of 13 products successfull y selected, including Piperacillin Sodium and Tazobactam Sodium for Injection, Cefuroxime for Injecti on, Meropenem for Injection and multiple eye drops. This follow-up procurement covered more t han 300 commonly used drugs spanning the 1st to 8th batches of national centralised procurement, across multiple therapeutic areas such as anti-infection, anti-tumour, nervous system, respiratory system and digestive system. The selection results were implemented in March 2026. The Group is expected to further i ncrease its market share of the relevant selected products and consolidate its market advantages. In addition, following the implementation of the “Measures for the Administration of Medical Representatives” during the year, multi-department coordinati on, stringent market access and full-chain closed-loop supervision will accelerate the in-depth restruc turing of the pharmaceutical industry towards a “professional academic-driven” model. While accelerating innovative transformation, the Group continuously strengthens its compliance system and academic cap ability building, and is committed to upgrading its marketing team towards greater professionalism and academic focus.
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- 17 - Endocrine/Metabolism The main products include 優思靈 ®USLIN ® (Human Insulin Injection (N/R/30R/50R)), 聯邦優樂靈 ®USLEN ®(Insulin Glargine Injection), 聯邦優倍靈 ®UBLIN ®(Insulin Aspart/Insulin Aspart 30 Injection), 聯 邦 優 得 靈 ®(Insulin Degludec Injection), 聯 邦 優 利 泰 ®(Liraglutide Injection), and 聯 邦 ® 滅 特 尼 ®(Glipizide Tablets), etc. During the Period, the Group’s first GLP-1 product, 聯邦優利泰 ®(Liraglutide Injection), continued to expand its market coverage. In addition, the Group’s ultra-long-a cting basal insulin analogue, 聯邦優得靈 ® (Insulin Degludec Injection), was approved for marketing, furt her enriching the product matrix in the endocrine/metabolism field. During the Period, endocrine and metabolism products recorded to tal sales of RMB938,500,000, representing a year-on-year decrease of 2.9%. Anti-infection The main products include 聯邦他唑仙 ®(Piperacillin Sodium Tazobactam Sodium for Injection), 聯邦 ®阿 莫仙 ®(Amoxicillin Capsules/Granules), 強力阿莫仙 ®(Potassium Amoxicillin Clavulanate for Injection, Potassium Amoxicillin Clavulanate Tablets/Dry Suspensions), and 聯邦倍能安 ®(Imipenem Cestastatin Sodium for Injection), among others. During the Period, the anti-infection products (for human use) recor ded total sales of RMB875,700,000, representing a year-on-year decrease of 2.0%. Other Human-use Finished Products The main products include ophthalmic drugs, topical dermatological drugs, etc. During the Period, other human-used finished products recorded tot al sales of RMB109,700,000, representing a year-on-year increase of 0.9%. Big Health The main products include the United Health & Beauty series of healthcare products, United Biophin series of skincare products, etc. The Big Health Division of the Group has deployed five majo r product lines: general dietary supplements, healthcare food products, cross-border nutritional supplements, m edical devices, and medical and aesthetic skincare products, covering categories such as bone and joint nut rition, intestinal regulation, cardiovascular health, vision protection and immunity enhancement. At present, we ha ve built a matrix of e-commerce, live broadcasting and new retail online sales platforms represe nted by Tmall, JD.com, TikTok and WeChat Mall, and deepened our coverage of pharmacy chains and health vertical pipelines. During the Period, the big health segment recorded sales of R MB17,700,000, representing a year-on-year increase of 58.0%. Animal Healthcare The Group’s animal healthcare business focuses on the researc h and development, production, sales and technical services of economic and companion animal drugs, with products covering a full range of livestock, poultry, aquatic products and pets. During the Period, we obtained 3 new veterinary drug registration certificates. In the first half of the year, under the concentrated challenges of strengthened policy supervision and pressure from the breeding cycle, the veterinary drug industry maintained an overall development momentum of steady growth in total volume and accelerated structural optimisation. The Group continues to advance the development strategy of “One Core Business, Four New Growth Drivers” development strategy and, leveraging its industrial advantages, is building global capabilities spanning R&D, production and sales. The Group is strengthening the foundation of the livestock and poul try business and accelerating the development of four new businesses: pet products, aquatic produc ts, raw materials, and overseas expansion,
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- 18 - actively seizing market opportunities and industry development windows. At present, the Group has a total of 88 overseas registrations that have been obtained or are currently in progress. During the Period, the animal healthcare segment recorded sales of RMB823,100,000, representing a year-on-year increase of 45.8%. FINANCIAL REVIEW Financial Results For the six months ended 30 June 2026, the Group recorded revenue of RMB6,165.9 million, a decrease of 18.0% as compared with the same period last year. Gross profit amounted to RMB2,119.5 million, a decrease of 46.0% as compared with the same period last year. EBITDA w as RMB920.8 million, representing a year-on-year decrease of 66.5%. Profit attributable to owners of the Company was RMB347.6 million, representing a year-on-year decrease of 81.6%. Earnings per share were RMB17.62 cents. During the Period, segmental revenue (including inter-segment s ales) of intermediate products, bulk medicine and finished products was RMB1,976.5 million, RMB3,148.4 million a nd RMB2,866.6 million respectively, representing a decrease of 14.2%, an increase of 5.0% and a decrease of 27.9% respectively as compared with the same period in the previous year. Segmental p rofit of intermediate products, bulk medicine and finished products amounted to RMB191.4 million, RMB79.7 mill ion and RMB398.0 million respectively, representing a decrease of 69.8%, 68.2% and 73.6% res pectively as compared to last corresponding period. Optimising Financial Structure In terms of finance, the Group continuously optimised its finan cial structure to improve liquidity by adjusting the mix of onshore and offshore borrowings, balancing long -term and short-term borrowings to reduce the finance expenses and enhance financial flexibility and efficiency in the utilisation of funds and maintain robust financial position. The Group has used Renminbi a s the main borrowing currency to reduce the risk of exchange rate fluctuation and finance costs. The G roup has also secured several long-term project loans for financing of its capital expenditures. During the Period, the finance costs of the Group were approximately RMB44.9 million, representing a year-on-year i ncrease of 116.1% mainly due to the increase in project financing borrowings. As at 30 June 2026, the Group’s net bank balances and cash (aft er deducting borrowings and trade payables under supplier finance arrangement) amounted to RMB3,416.0 million. Liquidity and Financial Resources As at 30 June 2026, the Group had pledged bank deposits, cash and bank balances amounted to RMB11,729.7 million (31 December 2025: RMB11,234.9 million). As at 30 June 2026, the Group had interest-bearing borrowings of appro ximately RMB5,924.4 million (31 December 2025: RMB4,979.3 million), all denominated in Renminbi and of which RMB1,180.8 million with maturity within one year. Borrowings of approximately R MB779.2 million are fixed rates loans while the remaining balance of approximately RMB5,145.2 million are a t floating rates. The directors expect that all such borrowings will either be repaid by internally gene rated funds or rolled over upon maturity and will continue to provide funding to the Group’s operations. As at 30 June 2026, current assets of the Group amounted to approximat ely RMB19,587.3 million (31 December 2025: RMB18,469.5 million). Net current assets increased from RMB8,390.4 million as at 31 December 2025 to RMB10,012.9 million as at 30 June 2026. The Group’s curre nt ratio was approximately 2.05 as at 30 June 2026 as compared with 1.83 as at 31 December 2025. As at 30 June 2026, the Group had total assets of approximately RMB32,112.7 million (31 December 2025: R MB30,900.5 million) and total liabilities of approximately RMB14,817.4 million (31 December 2025 : RMB13,425.2 million). At 30 June 2026, equity attributable to shareholders of the Company amounted to RMB17,216.5 million (31 December 2025: RMB17,393.0 million. As at 30 June 2026, the Group’s net cash and ban k balances (after deducting borrowings and trade payables under supplier finance arrangem ent) amounted to RMB3,416.0 million (31 December 2025: RMB4,027.1 million).
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- 19 - Contingent Liabilities As at 30 June 2026 and 31 December 2025, the Group had no material contingent liabilities. Currency Exchange Exposures The Group’s purchases and sales are mainly denominated in Renminbi, United States dollars and Hong Kong dollars. The operating expenses of the Group are mainly denomina ted in Renminbi and Hong Kong dollars. The Group’s borrowings are denominated in Renminbi. The Group’ s treasury policy is in place to monitor and manage its exposure to fluctuation in exchange rates. Besides, the Group will conduct periodic review of its exposure to foreign exchange risk and may use financial instrument for hedging purpose when considered appropriate. Employees and Remuneration Policies As at 30 June 2026, the Group had approximately 18,000 (31 December 2025: 18,000) employees in Hong Kong and Mainland China. The employees are remunerated with basic salary, bonus and other benefits in kind with reference to industry practice and their individual performance. The Company has adopted a share award scheme in October 2023 and g ranted a total of 12,096,900 award shares to selected directors and employees, vesting in three years, to encourage and retain such individuals for the continual operation and development of the Group. As at 30 June 2026, the scheme has completed two vests of the awarded shares. Environmental, Social and Governance Upholding the corporate tenet of “Making Life More Valuable” , the Group integrates the concept of sustainable development into its business operations and deci sion-making. The Group actively fulfills its social responsibilities by continuously investing in various fi elds such as education, disaster relief, and community care to contribute to the society. Simultaneously, we respond wholeheartedly the national policy of green and sustainable development, promoting industrial upgrad ing and the green and low-carbon transformation. During the reporting period, the Group’s MSCI ESG rating has been upgraded to “AA”, and the Group also received numerous honors such as the “Excellent ESG Award” at the 9th China Excellence IR Awards and the “ESG Responsible Enterprise Award” at CPHI. Use of Proceeds from Placing of Shares On 25 July 2025, The Company completed the placing of an aggregate of 156,000,000 new shares to not less than six placees at the placing price of HK$14.16 per share. The gross proceeds and the net proceeds (after deduction of the relevant expenses and fees) from the Placing amounted to HK$2,209.0 million and HK$2,168.2 million (equivalent to RMB1,989.9 million), respectively. The C ompany intends to allocate the net proceeds from the placing as follows: (a) approximately 60%, or HK$1,300.9 million, will be used for capital e xpenditure related to the construction and expansion of the Company’s manufacturing facilitie s, including the Inner Mongolia plant and the Zhuhai plants, strengthen external collaboration, exp and the Company’s international business, as well as other general corporate purposes; and (b) approximately 40%, or HK$867.3 million, will be used for researc h and development of innovative product candidates, including the clinical trial of UBT251, and other pipelines under development.
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- 20 - As at 30 June 2026, proceeds from the placing have been used as: - approximately RMB890.7 million for capital expenditure related to the construction and expansion of the manufacturing facilities, strengthen external collaboration, expand the international business, as well as other general corporate purposes; and - approximately RMB678.7 million for research and development of innovative product candidates and other pipelines under development. The remaining proceeds from the placing are expected to be f ully utilised on or before 31 December 2028. Such expected time frame is based on the Board’s best assessment, and is subject to adjustment depending on the Company’s future development, market conditions and prevailing business circumstances. Litigations During the six months ended 30 June 2026, the Group has no material litigations. FUTURE PROSPECTS The year 2026 marks the beginning of China’s “15th Five-Year Plan” . As full-chain support policies for innovative drugs are gradually implemented, the pace of innovat ion and upgrading in the pharmaceutical industry will continue to accelerate, and systems related to re view and approval, market access and payment are expected to be further improved. Meanwhile, the internati onalisation of domestically developed innovative drugs is gaining momentum, and enterprises with glob al competitiveness will embrace new growth opportunities in overseas markets. With its solid industrial foundation and forward-looking layout, the G roup is confident in seizing opportunities and addressing challenges. Upholding the innovation-driv en development strategy, the Group will accelerate the R&D and clinical development of key i nnovative products, deepen vertical integration along the industrial chain to fully leverage its integration a dvantages, and advance its internationalisation strategy by improving its R&D, production and commercialisati on systems to internationally competitive standards and promoting global R&D cooperation and overseas m arket expansion. We will unwaveringly pursue the path of high-quality and sustainable development, str iving to create greater value for our shareholders, patients and society. PURCHASE, REDEMPTION OR SALE OF LISTED SECURITIES OF THE COMPANY During the six months ended 30 June 2026, the Company has repurchased a total of 2,750,000 shares on the Stock Exchange at total consideration (including transaction costs ) of approximately HK$22,627,000. Particulars of the repurchases are as follows: Purchase Price Total Month No. of Shares Highest Lowest Consideration HK$ HK$ HK$ January to May - - - - June 2,750,000 8.40 7.98 22,627,000 All the repurchased shares were subsequently cancelled i n July 2026. Save for the above, neither the Company, nor any of its subsidiaries purchased, sold or redeemed any of the listed securities of the Company during the six months ended 30 June 2026. CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS The Company has adopted the Model Code as set out in Appendix 10 o f the Rules Governing the Listing of Securities (“Listing Rules”) on the Stock Exchange as its code of conduct for dealings in securities of the Company by the Board. Following a specific enquiry, all directors confirmed that they have complied with the required standards set out in the Model Code throughout the six months ended 30 June 2026.
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- 21 - CORPORATE GOVERNANCE The Board is of the view that best corporate governance is c rucial to safeguard the interests of shareholders and to enhance the Group’s performance. The Board is dedicated to maintaining and ensuring a high standard of corporate governance. For the six months ended 30 June 2026, the Company has applied and complied with the applicable code provisions set out in the Cor porate Governance Code (“CG Code”) and Corporate Governance Report contained in Appendix C1 of Listing Rule s, except for deviation which is summarised below: - Code Provision C.2.1 Under the code provision C.2.1 of the CG Code, the roles of chairman and c hief executive officer should be separated and should not be performed by the same individual. Dur ing the six months ended 30 June 2026, the Company did not have a chief executive officer. The Company will make appointment to fill the post as appropriate. AUDIT COMMITTEE The Audit Committee comprises of three independent non-executive directors, namely Mr. Chong Peng Oon, Prof. Song Ming and Dr. Fu Qiushi. The Audit Committee has review ed the unaudited condensed consolidated financial statements for the six months ended 30 June 2026. The Audit Committee has relied on a review conducted by the Company’s external auditor in accor dance with Hong Kong Standard on Review Engagements 2410 “Review of Interim Financial Information Perform ed by the Independent Auditor of the Entity” issued by the HKICPA and representations from the management. APPRECIATION On behalf of the Board, I would like to take this opportunity to express my gratitude to our shareholders and partners for their full trust and support, as well as t o our staff for their efforts and contributions. I hope we can join hands and create a better future together. On behalf of the Board Tsoi Hoi Shan Chairman Hong Kong, 31 August 2026 As at the date of this announcement, the Board comprises Mr. Tsoi Hoi Shan, Mr. Leung Wing Hon, Ms. Choy Siu Chit and Ms. Zou Xian Hong as executive directors; and Mr. Chong Peng Oon, Prof. Song Ming and Dr. Fu Qiushi as independent non-executive directors.