Net profit HK$570 million; Interim dividend HK$0.06/shareSeize development opportunities; Enhance competitive strengthResult summary:

• Total revenue HK$3,405 million, representing a growth of 39.4%;
• Net profit HK$570 million, representing a growth of 106.8%;
• The Board resolved to pay interim dividend of HK$0.06 /share

HONG KONG SAR - Media OutReach - 29 August 2022 - SSY Group Limited ("SSY" or the "Company"; Stock Code: 2005.HK) and its subsidiaries (together, the "Group") presents the interim results of the Company for the six months ended 30 June 2022. During the first half of 2022, the Group achieved a revenue of HK$3,405 million, representing an increase of 39.4% compared to corresponding period of last year ("1H2021") with gross profit margin 57.0%, representing a decrease of 3.2 percentage points compared to 1H2021. The Group achieved a net profit of HK$570 million, representing an increase of 106.8% compared to 1H2021. Faced with pressure from continuous impacts of the epidemic, shrinking market demands and supply shock, the Group seized the development opportunities arising from changes in the industrial landscape and policy support, and implemented a series of measures to improve quality and enhance efficiency of its main business segments including preparations, bulk pharmaceuticals and medical materials, so as to maintain good growth momentum. Focusing on the dual circulation of domestic and international markets development pattern, the Group concentrated its efforts on market development for dominant preparations and key types of preparation products, and explored the domestic and overseas markets for its bulk pharmaceuticals and medical materials products. The Group also proactively optimised its product mix and placed great emphasis on the marketing of new featured products, leading to a new growth in market shares and sales volume. The Board of directors proposed to pay an interim dividend of HK$0.06 per share for year 2022, which increased by 20% as compared to 1H2021. The total amount of interim dividend this year to be paid is approximately HK$179 million. Amidst the normality under epidemic, the domestic pharmaceutical market witnessed a stable rigid demand. The Group continued to increase the market shares of the intravenous infusion solution and continuously solidified its leading position in the market. During the first half year, the sales volume of infusion solutions reached 754 million bottles (bags), representing an increase of 19.3% compared to 1H2021. Revenue of infusion solutions reached HK$1,834 million, representing an increase of 20% compared to 1H2021. Ampoule products delivered a remarkable market performance and have become a new support for the development of the Group's injection segment. During the first half year, the revenue of ampoule products was HK$511 million, representing an increase of 4.7% compared to 1H2021, which maintained a good growth momentum. Solid preparations business segment delivered a steady and positive sales performance. In line with the national and local centralised procurement policies, the Group made coordinated efforts to secure market supply of tender-awarded products to promote and expand the market of new products. During the first half year, the revenue reached HK$145 million, representing an increase of 71% compared to 1H2021. Bulk pharmaceuticals business achieved a boost in both production and sales. After continuous optimization of production process, the premium production capacities were realised rapidly. In particular, as a vertical integration, the Group acquired Cangzhou Lingang Youyi Chemical Co., Ltd. at the beginning of the year, significantly improving the coordination between upstream and downstream entities of the industrial chain. During the first half of the year, revenue of bulk pharmaceuticals reached HK$777 million, representing an increase of 214.6% as compared to 1H2021. The Group achieved a growth jump in production and sale of medical materials. In the first half of the year, revenue from external customers of the Group recorded HK$90.55 million, representing an increase of 12.5% compared to 1H2021. By using market demands as the guide and adhering to the strategy of "combination of generic and innovative drugs", the Group made continuous and coordinated efforts to push forward the research and development of featured generic drugs, bulk pharmaceuticals, innovative drugs, medical materials as well as product types under consistency evaluation. The Group kept solidifying and expanding its strength in the research and development of featured generic drugs. During the first half of the year, a total of 22 production approvals were obtained, including 14 types of infusion products and 8 types of bulk pharmaceuticals, with the number of approvals obtained exceeding that of the whole year of 2021. So far, a total of 26 product types with 35 specifications of the Group have passed or were...