On behalf of the board of directors (the "Board") of SSY Group Limited (the "Company"), I hereby present the annual report of the Company and its subsidiaries (the "Group") for the year ended 31 December 2025.

I. RESULTS AND DIVIDEND DISTRIBUTION

In 2025, under the multiple pressures of shrinking demand, deepening policy and intensifying competition within the industry, the Group's key economic indicators faced downward pressure unprecedented in recent years and experienced extremely severe challenges. In the face of these difficulties, the Group has turned pressure into motivation, strived for change with an innovative yet pragmatic stance, and done its best to drive the enterprise toward breakthrough and progression.

In 2025, the Group achieved a revenue of approximately Renminbi 3,812 million, representing a decrease of 27.6% as compared to last year. In terms of Hong Kong dollars, the Group's revenue was approximately HK$4,165 million this year, representing a decrease of 27.8% as compared to last year, with gross profit margin approximately 41.6%, representing a decrease of 8.8 percentage points as compared to last year. The Group achieved a net profit of approximately HK$471 million, representing a decrease of 55.6% as compared to last year.

The Directors resolved to pay a final dividend of HK$0.03 per share on 4 June 2026 to the shareholders in the register of members of the Company on 21 May 2026. Total dividend for the year was HK$0.08 per share, representing a decrease of 54.3% as compared to last year.

II. BUSINESS REVIEW

(1) Sales of Products

In 2025, the pharmaceutical market underwent multidimensional and profound changes, presenting more challenges and difficulties for enterprises in products sales. Facing continuously changing market environment, the Group has been continuously strengthening the implementation of an integrated operation strategy of "bulk pharmaceuticals + preparations", deepening its presence in the market of its dominant products which are intravenous infusion solutions, focusing on increasing the market share of existing and new products for oral preparations and ampoule injections, implementing multiple strategies to expand the sales proportion of high-value-added preparations, and striving to optimize growth market while revitalizing existing market.

During the year, the Group has continuously improved the market accessibility of its products. In 2025, the Group overcame the impact of adverse factors, effectively bridged between the approval and market entry of new products across various regions, and timely participated in the National Centralised Medicines Procurement, its renewal and various drug tendering activities at provincial alliances and local levels. Throughout the year, a total of 42 generic types with 52 specifications were approved for market access. At the same time, throughout the year, the Group participated in over a thousand drug tenders, including renewal of National Centralised Medicines Procurement, provincial and local alliance centralised procurement, and by medical institutions, and achieved outstanding performance with a clear advantage in winning tenders, particularly in the eleventh batch of the National Centralised Medicines Procurement, the Beijing-Tianjin-Hebei "3+N" alliance volume-based procurement, the Sichuan Sodium Chloride Large Volume Injection Alliance volume-based procurement, the provincial alliance volume-based procurement for 66 chemical drugs including Meglumine Adenosine Cyclophosphate, the Guangdong Alliance centralised procurement renewal such as Diclofenac, and the Guangdong Alliance Chronic Diseases Alliance procurement renewal, which further consolidated the market foundation of key regions, and created conditions for improving product accessibility. In addition, the varieties of the Group's products which are included in the National Medical Insurance Catalog continued to expand. Calcium Gluconate and Sodium Chloride Injection is newly added to the new version of the 2025 National Medical Insurance Catalog. Currently, the Group has 201 types of product included in the National Medical Insurance Catalog.

In terms of intravenous infusion solution business and ampoule injection business, they have not met our expectations, but our overall market share remained stable. In 2025, intravenous infusion solution of the Group achieved an overall sales volume of 1,536 million bottles (bags), representing a decrease of 24.5% as compared to last year; among which, the domestic infusion solution achieved an aggregate sales volume of 1,378 million bottles (bags), representing a decrease of 28.2% as compared to last year. Revenue from intravenous infusion solution was HK$2,485 million, representing a decrease of 33.5% as compared to last year. This was mainly due to sluggish demand and price decline in the existing market of basic infusion, as affected by a combination of policy and market factors, which resulted in weaker-than-expected performance. Nevertheless, in 2025, some therapeutic infusion solution products of the Group still achieved growth, among which, sales volume of Levofloxacin and Sodium Chloride Injection reached 7.95 million bags, representing an increase of 35% as compared to last year; sales volume of Hemofiltration Basic Solution was approximately 1.67 million bags, representing an increase of 69% as compared to last year; sales volume of Paracetamol Injection was 16.22 million bottles, representing an increase of 219% as compared to last year. In 2025, sales volume of ampoule injection products reached 346 million pieces, representing an increase of 10.4% as compared to last year, with a slight growth in sales volume. Among which, sales volume of Glucose Injection was 37.74 million pieces, representing an increase of 20% as compared to last year; sales volume of Ipratropium Bromide was 24.95 million pieces, representing an increase of 106% as compared to last year; sales volume of Ambroxol Hydrochloride Injection was 79.74 million pieces, representing an increase of 22% as compared to last year; sales volume of Sterile Water for Injection was 30.70 million pieces, representing an increase of 138% as compared to last year; sales volume of Propofol Medium and Long Chain Fat Emulsion Injection was 1.37 million pieces, representing an increase of 123% as compared to last year; sales volume of Etomidate Medium and Long Chain Fat Emulsion Injection was 3.25 million pieces, representing an increase of 377% as compared to last year.

In terms of oral preparations, the production and sales scale achieved steady growth. By proactively adjusting market layout and stepping up professional promotion, the Group was able to participate in centralised procurement and strengthen strategic cooperation with the top 100 chain pharmacies. This approach accelerated the enhancement of its oral preparation products' brand influence and drove market expansion and share growth through multiple dimensions. In 2025, the overall oral preparations products of the Group achieved an overall sales volume of 2,072 million tablets (pieces, bags), representing an increase of 15% as compared to last year; among which, the domestic oral preparations products achieved a sales volume of 1,936 million tablets (pieces, bags), representing an increase of approximately 9% as compared to last year. Oral preparation products such as Betahistine Mesilate Tablets, Felodipine Sustained Release Tablets, Rosuvastatin Calcium Tablets, Gliclazide Tablets, and Valsartan and Amlodipine Tablets (I) achieved relatively fast growth. Among which, sales volume of Betahistine Mesilate Tablets was 123.48 million tablets, representing an increase of 27% as compared to last year; sales volume of Rosuvastatin Calcium Tablets was 292.13 million tablets, representing an increase of approximately 53% as compared to last year; sales volume of Felodipine Sustained Release Tablets was 221.95 million tablets, representing an increase of approximately 31% as compared to last year.

In terms of bulk pharmaceuticals business, the overall sales volume has not met our expectations as affected by domestic and international market and pricing factors. In 2025, the constraints such as weak demand in overseas markets and declining product prices remained fundamentally unchanged, export revenue of bulk pharmaceuticals reached approximately HK$494 million, representing a decrease of 8.2% as compared to last year. Among them, caffeine were affected by U.S. tariffs and global inflation, resulting in a drop of export sales volume of approximately 1,100 tons, representing a decrease of 24% compared to the previous year. However, exports of certain bulk pharmaceuticals have seen growth, export sales volume of Aminophylline reached 16 tons, representing an increase of 85% compared to last year; export sales volume of Theophylline reached 543 tons, representing an increase of 178% compared to last year. As Guangxiang Pharmaceutical Co., Ltd. (a subsidiary of the Group) establishes overseas branches, the bulk pharmaceuticals business is expected to bottom out and stabilize followed by recovery growth with economic conditions picking up. Domestic revenue of bulk pharmaceuticals reached approximately HK$184 million, representing a decrease of 25% as compared to last year; with sales volume of bulk pharmaceuticals reaching 1,126 tons, representing an increase of 3% as compared to last year. Among which, sales volume of Metronidazole reached 282 tons, representing an increase of 58% compared to last year; sales volume of Hydroxyethyl Starch reached 93 tons, representing an increase of 77% compared to last year.

In terms of medical materials, production and sales have achieved steady improvements. During the year, the Group continued to increase investment in the research and development of new medical material products, advancing both product development and market expansion in a coordinated manner. Through precise market positioning and enhanced product competitiveness, market penetration rates continued to improve. In 2025, revenue of Jiangsu Best New Medical Material Co., Ltd. external to the Group reached approximately HK$189 million, representing an increase of HK$11.16 million and a growth of 0.6% compared to last year. The Group has continuously deepened cooperation with leading domestic pharmaceutical enterprises and rapidly advanced the layout of overseas markets, enabling the market penetration capability and coverage of key medical material products such as infusion soft tubes and multi-layer co-extrusion films to be steadily enhanced. Products including butyl rubber pistons for pre-filled syringes, laminated series butyl rubber stoppers, bioprocessing films, specialized films for peritoneal dialysis bags, and non-PVC infusion soft tubes have become important drivers of growth.

In terms of export of preparations, the growth continues to be steady. In 2025, export volume of infusion solutions reached 158.36 million bottles (bags), representing an increase of approximately 35% compared to last year. Export revenue of preparations reached HK$239.55 million, representing an increase of approximately 35% compared to last year, with sales of ampoule injections reached 28.59 million pieces and oral preparations reached 136 million tablets. Meanwhile, the Group developed 45 new customers, with preparation products exported to over 100 countries and regions worldwide. In 2025, the Group obtained 74 product registration certificates in 20 countries including the Philippines and Nicaragua. To date, the Group has accumulated 513 product registration certificates in nearly a hundred countries. In 2025, the Group has passed official GMP audits and clients' GMP audits in more than 10 countries, including Rwanda and Uzbekistan.

(2) Research and Development of New Products

During the year, the Group has continuously expanded the development of new products in areas such as specialised generic drugs, orphan drugs, pediatric drugs, innovative drugs, bulk pharmaceuticals and Chinese medicine, and maintained a leading position in the industry in terms of the number of submissions and approvals for domestic entities.

Research and development of new products has achieved significant results. The Group focuses on market demand and strives to strategically deploy in the fields of antiviral, antibacterial, neurological system, cardiovascular, digestive, anesthesia and analgesia, and anti-tumor products. During the year, the Group obtained 110 production approvals (including national supplemental applications), including 86 for preparations and 24 for bulk pharmaceuticals, and obtained 4 clinical trial approvals. Among them, 24 specifications were among the first three approvals, in particular the Paracetamol Granules and Urapidil Sustained-Release Capsules being the first and exclusive of passing the evaluation; Nicardipine Hydrochloride & Sodium Chloride Injection and Composite Potassium Hydrogen Phosphate Injection being the first of passing the evaluation; Timolol Maleate Eye Drops being the first approved and the Group's first ophthalmic preparation in unit dose packaging. In addition, the Group's self-developed new pediatric product, Voriconazole for Oral Suspension (the broad-spectrum triazole antifungal agents), has been included in the National Health Commission's "the Third Batch of Encouraged Research and Development List of Pediatric Drugs".

During the year, the Group submitted 120 projects for product approvals (including national supplemental applications), including 90 for preparations and 30 for bulk pharmaceuticals. Among them, there were 24 product specifications being the first three submitted applications, in particular Methocarbamol Tablets, a muscle relaxant drug, being the first submitted. The continuous enrichment of the product development pipeline strongly promotes the Group's improvement in quality and efficiency and its industrial upgrading.

In terms of research and development of innovative drugs, a series of progress has been made. The Group's self-developed Type I innovative drug SYN045 has received approval for clinical trials and is undergoing Phase I clinical trials currently. The completed single-dose and multiple-dose escalation studies showed no serious adverse reactions, indicating good safety. Several Type I innovative drug projects at preclinical stage are advancing simultaneously, demonstrating excellent preclinical potential. For example, the CX24005 project for treating neurological diseases such as epilepsy has completed screening of multiple series of compounds, with self-designed compounds showing outstanding target activity–efficacious doses in animal models were only one-tenth of those of the reference drug, with an eight-fold improvement in bioavailability. The project has now entered the PCC (Preclinical Candidate Compound) selection stage, with confirmation to be completed in May 2026. The relevant patents have been filed with the China National Intellectual Property Administration. The CX25001 project for analgesia is currently in the lead optimization stage, target activity was improved 4-fold relative to the positive control compound, with favorable druggability. The PCC is expected to be identified in August 2026.

In terms of the development of complex preparation drugs, various tasks had orderly progresses through the establishment of specialised technical platforms. Platforms for therapeutic emulsion technology, liposome technology, and inhaled corticosteroid suspension formulation technology have been successively established. Currently, Propofol Medium and Long Chain Fat Emulsion Injection, Etomidate Medium and Long Chain Fat Emulsion Injection, Progesterone Injection (II) have achieved large-scale production, while Lipid-Soluble Vitamin Injection (I) and (II) are expected to be the first to receive approval in 2026. Letermovir Injection and Budesonide Suspension for Inhalation are under review and approval process. Pilot-scale study on Doxorubicin Hydrochloride Liposome Injection has been completed, with key process technologies and quality research standards already mastered. Propofol Injectable Emulsion, Flurbiprofen Axetil Injection, Amphotericin B Liposome for Injection, Beclomethasone Dipropionate Inhalation Suspension complex formulation are currently in the research phase. With continuous optimization in the research & development field and ongoing refinement of product chain, the Group's influence in the market of complex preparation products will be further enhanced.

Consistency evaluation of generic drugs has fruitful results. During the year, Vitamin B6 Injection and Lincomycin Hydrochloride for Injection have passed the consistency evaluation. Vitamin B12 Injection, Diltiazem Hydrochloride Tablets, and Azithromycin Dispersible Tablets have been submitted for the consistency evaluation. By the end of 2025, the Group's products that have passed the consistency evaluation or been regarded as passing the consistency evaluation have cumulatively reached 166 types with 217 specifications. The increasingly rich matrix of products that passed consistency evaluation has created favorable conditions for optimizing product mix, exploring diversified markets, and enhancing product accessibility.

The effectiveness of intellectual property rights protection efforts is remarkable. During the year, the Group applied for 71 patents and was authorised for 30 patents. The Group has cumulatively applied for 591 patents and been authorized for 377 patents. Currently, the Group owns 345 active patents, including 190 invention patents.

(3) Development of Infrastructure Projects

The Group accelerates the efficiency of new product industrialization through high-quality project development. During the year, the Group coordinated the progress of ongoing foundational construction projects. Among them, the first phase of high-end preparation industrialization project has been fully completed. For the Hebei Guolong Pharmaceutical Integrated and Innovative Pharmaceutical Development Demonstration Project, the raw material warehouse and power workshop have been put into use in August 2025, and its main steel structure of the multi-layer warehouse has been completed. The new specialised oral preparation digitalization production line project was completed in August 2025. The international production line of injections project was ready for trial production in December 2025. The production line of sterile lyophilized powder for injection in High-Tech Industrial Development Zone commenced construction in December 2025.

III. PROSPECTS FOR DEVELOPMENT

Currently, the effects brought by changes in external environment continue to deepen, and the contradiction between strong supply and weak demand domestically is becoming increasingly prominent, so there are still more risks and challenges for this new year. Facing difficulties and challenges, the Group will confront them with confidence, leverage its strengths, and rise to the challenges. We will make coordinated efforts to optimize new market and revitalize existing market, comprehensively improve resource allocation efficiency, promote transition between new and old growth drivers in a coordinated manner, and develop new quality productivity tailored to local conditions. We will continuously promote the deep integration of the innovation chain, supply chain, and value chain, facilitate the domestic-international dual circulation, and achieve the goals of steady expectations and solid growth.

1. The Group will establish and improve operational mechanisms that better adapt to current policies and market conditions. Focusing on market, quality and cost control, we will carry on traditional advantageous business forms to actively plan and establish business models which take into account both innovation and compliance, continuously optimizing organizational structure and management mechanisms, expanding business scope, and strengthening business capabilities. We will actively prevent and mitigate market risks (such as involution) and external shocks, driving the improvement of research & development and production efficiency from the marketing end, further reducing costs, steadying expectations, stimulating vitality and continuously improving operational quality of the Group.


2. On the preparations business, the Group will focus on the difficulties, blockages, and bottlenecks in preparations operations, establish and implement a differentiated assessment mechanism, quantify tasks down to individuals and assign responsibilities down to individuals. While further expanding the market share of basic infusion solutions in grade hospitals, we will extend terminal market downward and step up efforts to develop primary community medical institutions, focusing on stabilizing existing market, expanding new market, and improving quality. We will prioritize volume growth for large-volume and therapeutic products such as peritoneal dialysis solution and hemofiltration solutions, ensuring sustained growth in infusion production and sales. The approval of dual-chamber dialysate products in the second half of 2026 will further solidify the Group's leading position in the dialysis field. Meanwhile, leveraging the Group's advantages in selection results of centralised procurement projects–including the eleventh batch of National Centralised Medicines Procurement, renewal of the first to the eighth batches of National Centralised Medicines Procurement, the Guangdong Alliance, and the provincial alliance volume-based procurement for 66 chemical drugs including Meglumine Adenosine Cyclophosphate–we will accelerate and expand product market coverage. Capitalizing on the Group's increasingly enriched product portfolio, we will strengthen strategic cooperation with chain pharmacies, actively embrace internet marketing, explore new retail business models, standardize and leverage the function of online trading platforms, and actively capture the terminal market. We will deeply tap the market potential of new products in oral preparations, ampoule injections, and lyophilized powder for injections etc., promoting the continuous expansion of the sales proportion of non-infusion solutions products. Relying on international certification as foundation, we will promote the Group's preparations export business to "set sail overseas". We will strengthen compliance in operations, implement customer credit management, increase efforts in accounts receivable collection, so as to avoid operational risks.


3. On the bulk pharmaceuticals business, the Group will continuously optimize the product mix, accelerate the implementation and transformation of new high-value-added specialized products, and pursue integrated development toward high-end, intelligent, and green manufacturing to continuously empower the resilience and vitality of bulk pharmaceuticals development. We will focus on the export of commodity bulk pharmaceuticals such as caffeine, while stabilizing the customer base in regions including the Americas, Europe, South Asia, and Southeast Asia, leveraging the role of Guangxiang Pharmaceutical's branches to further expand sales channels for core products such as caffeine and azithromycin. Meanwhile, the Group will strengthen the development efforts in domestic customers, broaden the associated review mechanism with downstream preparation enterprises, and explore the specialised bulk pharmaceuticals market through multiple channels, striving to achieve new breakthroughs in production and sales.


4. The Group will continuously promote enterprise innovation. The Group will firmly adhere to the strategy of "combination of generic and innovative drugs" in R&D, center on the integrated development of "medical materials + bulk pharmaceuticals + preparations + AI + enablement", accelerate the pipeline layout and development of innovative drugs, improved new drugs, specialised generic drugs, high-end complex preparations, as well as specialised high-end bulk pharmaceuticals and medical materials, and continuously drive R&D innovation. With a focus on building a modernized industrial system, we will strengthen foundational innovation capabilities, enhance the innovation drug R&D team building, and lead the enterprise's R&D innovation to accelerate transformation from generic drugs to innovative drugs. By fully leveraging the collaborative innovation mechanism of "industry-academia-research-application" and new technological means such as "AI+", we will continuously optimise the innovation ecosystem and drive the transformation of scientific research paradigms through artificial intelligence. While maintaining advantages in R&D approval and application efficiency, we will strengthen whole-process quality management for the technology transfer and transformation of new products, ensure that innovation achievements are efficiently and stably transformed into actual productivity, continuously enhance transformation efficiency and market competitiveness, and enable innovation achievements to continuously empower the enterprise to ascend to the mid-to-high end of the value chain.


5. The Group will systematically advance the construction progress of new and ongoing projects. Based on the Group's industrial development and scale enhancement, with the industrialization of innovative achievements as the foothold, centering on R&D innovation milestones, focusing on the organic integration of results transformation and digital transformation, we will accelerate the construction progress of ongoing and new projects. The production line of sterile lyophilized powder for injection project in High-Tech Industrial Development Zone will strive for completion by the end of May 2026, and the production line of sterile powder project in Development Zone commenced construction in March 2026 and is expected to commence trial production in September 2026, laying the hardware foundation for new products industrialisation and capacity enhancement.

In addition, the Group will leverage its own strengths to actively seek opportunities for mergers and acquisitions as well as investments in the pharmaceutical industry, with the aim of enhancing and strengthening the supply chain, creating new growth poles, and reinforcing the Group's position in the product and capital markets to increase the return on investment.

Despite the tough road ahead, in this new year, the Group will stick to its new targets, push forward to rise to the challenges, and strive to implement and carry out numerous business tasks of year 2026, so as to bring satisfactory returns to our investors with new results in development by innovation.

I would like to take this opportunity to express our sincere gratitude to our investors and all staff of the Group for their support in the development of the Group.

Qu Jiguang
Chairman

Hong Kong, 27 March 2026