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CUTIA THERAPEUTICS

Cutia Therapeutics

科笛集团

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 2487)

ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2025

The Board is pleased to announce the consolidated annual results of the Group for the year ended 31 December 2025.

FINANCIAL HIGHLIGHTS

Two Key Products of the Group, CU-40102 (topical finasteride spray) and CU-10201 (topical 4% minocycline foam), began commercialization in late October 2025. For the year ended 31 December 2025, revenue of these two products was over RMB100 million.
For the year ended 31 December 2025, revenue of the Group was approximately RMB336 million. Revenue in the second half of 2025 increased sequentially by approximately 307% to approximately RMB270 million as compared to the first half of 2025, primarily attributable to the rapid growth in the commercialization of the Key Products.
For the year ended 31 December 2025, gross profit of the Group was approximately 58%. Gross profit margin increased approximately 13 percentage points from approximately 48% in the first half of 2025 to approximately 61% in the second half of 2025, primarily driven by a higher sales contribution from high-margin product categories and strategic cost control initiatives.
The Group continued to optimize its operating efficiency. For the year ended 31 December 2025, selling and distribution, research and development and administrative expenses decreased by approximately RMB109 million year-on-year. Loss for the year decreased by approximately RMB94 million year-on-year.
The Group's total cash and cash equivalents, time deposits over three months and financial assets at fair value through profit or loss amounted to approximately RMB788 million as of 31 December 2025.

MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW

Founded in 2019, we are a R&D-driven, dermatology innovative products-focused biopharmaceutical company committed to developing comprehensive solutions that are tailored to meet the diverse and evolving needs of patients and consumers in the broader dermatology treatment and care market. We have built a broad portfolio of products, targeting the four main sectors of the broader dermatology treatment and care market, namely scalp diseases and care, skin diseases and care, topical anesthesia and localized adipose accumulation management. We currently have two Key Products that have begun commercialization. We have also distributed several commercialized products developed by overseas collaboration partners and marketed several products in China.

We are one of the few players in the broader dermatology treatment and care market in China equipped with fully integrated capabilities. We have applied a customer-centric approach to bolster our product candidates and expand our integrated capabilities to the entire broader dermatology treatment and care industry value chain. Our platform spans from the early phase of identifying demands, developing core technologies, managing clinical trials and product registrations, to the manufacturing and marketing of products.

Our proprietary CATAME® technology platform improves topical or transdermal delivery of drugs by developing micron and nano-sized particulates, as well as evaluating formulation quality and stability, and performing cutaneous pharmacokinetic analysis. Our platform also helps design the most suitable product formats that are key to specific and successful drug delivery. Through this platform, we have built a competitive product pipeline of creams, sprays, ointments, aerosol foams and other dosage forms.

BUSINESS REVIEW

As at the date of this announcement, the Group has a number of scalp diseases and care products, skin diseases and care products, as well as certain skin care products (“Routine Skin Care Products”) for sale. The Group’s CU-10201 (topical 4% minocycline foam) and CU-40102 (topical finasteride spray) have obtained marketing approval from the NMPA and have begun commercialization in Chinese Mainland in late October 2025. CU-40102 has also obtained marketing approval from the Hong Kong Department of Health. We have achieved the following significant advancements in both business operations and pipeline products.

Commercialization

We have adopted a well-tailored commercialization strategy to penetrate the broader dermatology treatment and care market in China. Our pivotal research results have been consecutively selected for the Annual Meeting of Chinese Society of Dermatology and the Annual Meeting of China Dermatologist Association & National Congress of Cosmetic Dermatology, and were published in leading scientific journals such as the “Journal of the European Academy of Dermatology and Venereology” and the “Chinese Medical Journal”. This highlights our influence in the industry and advanced standing in the field of dermatology. Our Scientific Advisory Committee consists of top dermatologists from numerous Grade 3A hospitals, which helps to build consumers’ trust.

Topical finasteride spray (Finjuve®) is the world’s first and only product of its kind, with significant efficacy, high safety and refreshing user experience, fully addressing the issues of existing medications for androgenetic alopecia. Topical 4% minocycline foam (Amzeeq®) is the world’s first and only product of its kind. Due to its advantages such as rapid onset of action, strong efficacy and high safety, it has received good reviews in the field of acne treatment since its market launch, and its penetration rate has continued to increase.

To align with the commercialization of these two Key Products, namely topical finasteride spray (Finjuve®) and topical 4% minocycline foam (Amzeeq®), we have proactively established a dedicated marketing team with strong market insights and marketing capabilities, covering various provinces in Chinese Mainland. Since their commercialization in Chinese Mainland in late October 2025, these two Key Products have rapidly expanded to hundreds of public and private hospitals, hospital-adjacent pharmacies, leading chained hair transplant institutions, and e-commerce platforms such as Tmall and JD.com. Meanwhile, we continued to organize marketing and public education on social media platforms such as Xiaohongshu, Weibo, and Douyin in accordance with relevant laws and regulations in China. Positive reputation on therapeutic efficacy, safety and user experience has spread widely among physicians and customers. With strong product capabilities, sales and operational advantages, these two Key Products have achieved strong commercialization momentum in 2025, reaching a total revenue of over RMB100 million.

Scalp Diseases and Care

Key Product CU-40102 (Finjuve®, topical finasteride spray)

CU-40102 is the first and only topical finasteride product approved for androgenetic alopecia treatment globally and the first topical finasteride to obtain marketing approval from the NMPA. Finasteride can treat androgenetic alopecia in male patients by acting as a competitive and specific inhibitor of Type II 5-alpha reductase, thereby inhibiting the conversion of testosterone to DHT in the scalp.
Unlike oral finasteride, CU-40102’s topical formulation allows patients to apply the drug directly to the surface of the scalp, thereby maintaining a high concentration at the affected site and reducing the systemic exposure of the drug compared to oral formulations.
CU-40102 obtained marketing approval from the NMPA in June 2025 and from the Hong Kong Department of Health in August 2025, with an approved indication for the treatment of androgenetic alopecia. We began its commercialization in late October 2025.
The marketing approval for CU-40102 was primarily based on the results of its Phase I and Phase III pivotal clinical trials completed in China. The clinical trials demonstrated that CU-40102 was effective in treating androgenetic alopecia and also showed a favorable local tolerance to the administration area.

Skin Diseases and Care

Key Product CU-10201 (Amzeeq®, topical 4% minocycline foam)

CU-10201 is the first and only topical minocycline approved for acne vulgaris treatment globally and the first topical minocycline with priority review designation to obtain marketing approval from the NMPA. The indication of CU-10201 is for the treatment of non-nodular moderate to severe acne vulgaris in pediatric and adult patients aged nine and or above.
Minocycline is a tetracycline antibiotics used to treat a number of bacterial infections and acne vulgaris. The currently available minocycline products are mostly oral medications. Compared to other major anti-acne antibiotics and conventional oral drugs, topical minocycline foam has lower systemic drug exposure, fewer side effects, lower rate of drug resistance, and likely higher patient compliance.
CU-10201 obtained marketing approval from the NMPA in November 2024. We began its commercialization in late October 2025.
The marketing approval of CU-10201 was primarily based on the results of a Phase III pivotal clinical trial completed in China. The clinical trial demonstrated that CU-10201 had a significant efficacy and a favorable safety profile in the treatment of acne.

Topical Anesthesia

CU-30101 (localized topical lidocaine and tetracaine cream)

CU-30101 is a localized lidocaine and tetracaine compound topical anesthesia cream for topical anesthesia operations. The formulation of lidocaine and tetracaine combination in CU-30101 may produce rapid and long-lasting anesthetic effects due to its ingredients' unique pharmacokinetic properties.
Lidocaine diffuses more rapidly, and more extensively than tetracaine, whereas tetracaine, a long-acting localized amino ester type anesthetic, is more lipophilic than lidocaine and can be concentrated in the topical stratum corneum. Systemic absorption of the anesthetic component ingredients is also limited from the topical cream formulation.
The Phase III clinical trial of CU-30101 in China was completed in January 2024 and its drug marketing authorization application was accepted by the NMPA in July 2024.
The drug marketing authorization application for CU-30101 was primarily based on the results of its Phase III pivotal clinical trial completed in China. The clinical trial showed that CU-30101 was as effective as its control and reference drug Pliaglis® lidocaine and tetracaine cream in analgesia and demonstrated an overall favorable safety profile.

Localized Adipose Accumulation Management

Core Product CU-20401 (recombinant mutant collagenase)

CU-20401 is a recombinant mutant collagenase that targets localized adipose accumulation associated metabolic diseases. CU-20401 adopts an alternative mechanism of action where it acts as a collagenase to selectively act on the extracellular matrix attached to adipose tissue. After localized injection, CU-20401 degrades extracellular matrix collagen in the subcutaneous fat layer which leads to apoptosis of adipocytes, and is expected to effectively reduce localized adipose accumulation.
CU-20401 is technologically modified with reduced rate to catalyze the collagen degradation with mild catalytic activity, thus reducing the adverse effects of wild-type collagenase, such as bruising and pain.
In December 2024, we completed the Phase II clinical trial for submental adipose accumulation in China, and we expect to obtain its regulatory approval for commercialization in China in 2028. In the Phase II clinical trial, CU-20401 demonstrated significant and robust efficacy advantages with a favorable safety profile. In terms of efficacy, the treatment efficacy of different doses of CU-20401 was superior to that of the placebo group, with statistically significant differences in efficacy. During the follow-up period, as the follow-up time extended, the treatment efficacy of CU-20401 at different doses showed more significant improvement compared to baseline, and the treatment benefits were also greater than those of the placebo group. Preliminary observations from the clinical trial also indicated a dose-response trend. In terms of safety, the overall safety profile of CU-20401 was favorable, with no dosage-related differences in the incidence rate or severity level of adverse events observed.

Warning: There is no assurance that the Core Product and each of the pipeline products will ultimately be successfully developed and marketed by the Company. Shareholders and potential investors of the Company are advised to exercise caution when dealing in the Shares.

Manufacturing Facilities

Our commercial-scale GMP manufacturing facilities with three drug product production lines in Jiangsu Province have commenced operation in 2023. The three production lines cover topical cream, ointment, aerosol, and foam products. The flow and control of the entire manufacturing processes are designed to be compliant with the latest GMP requirements, ensuring that our production can meet the clinical and marketing approval requirements of various drug regulatory authorities (including the NMPA, FDA and European Medicines Agency). The capacity of these manufacturing facilities can support clinical trials of our pipeline products and the production of our commercialized products.

KEY EVENTS AFTER THE REPORTING PERIOD

In January 2026, CU-20101 (botulinum toxin type A for injection) for improving moderate to severe glabellar lines has achieved positive topline results from a Phase III clinical trial in China. In March 2026, the IND application of CU-40104 (topical dutasteride agent) has obtained clinical trial approval from the NMPA. The indication is for the treatment of androgenetic alopecia.

Save as disclosed above, there are no significant events affecting the Group occurred since the Reporting Period and up to the date of this announcement.

FUTURE DEVELOPMENT

We are dedicated to providing consumers and patients with safe and comprehensive dermatology treatment and care solutions. Looking forward to 2026, we will continue enhancing the commercialization activities of CU-10201 (topical 4% minocycline foam) and CU-40102 (topical finasteride spray), enabling patients and consumers to access our products at the earliest possible. Capitalizing on our established omnichannel network, we intend to accelerate market penetration for our products, thereby significantly boosting brand awareness and continuously expanding our market influence and product competitiveness. CU-30101 (localized topical lidocaine and tetracaine cream) is anticipated to receive regulatory approval for commercialization in China and we are proactively coordinating market launch initiatives to ensure seamless connection to our existing sales platforms. We hope to deliver a comprehensive portfolio of products that addresses the changing and diverse therapeutic needs of patients and consumers by expanding our sales network more extensively.

Furthermore, CU-20401 (recombinant mutant collagenase) has demonstrated a favorable safety and efficacy profiles in its Phase II clinical trial conducted in China. Based on the positive outcomes of the Phase II clinical trial, the Group will further explore CU-20401's therapeutic advantages and expedite the progression to Phase III clinical trial. Meanwhile, Abbreviated New Drug Application (ANDA) for CU-40105 (self-developed topical finasteride spray) has been accepted by the NMPA. We will cooperate with regulators to actively promote the marketing approval progress of our pipeline candidates and will be fully prepared for their commercialization in advance. We will also fully leverage our R&D strengths to systematically pursue the clinical progress of the remaining pipeline candidates.

We are optimistic on the market potential of the online and offline channels and will continue to adhere to our core marketing strategy of online and offline marketing while exploring online-to-offline marketing combination and leverage the synergistic advantages of multiple products to drive robust overall sales growth. We will also continue to strengthen our sales capabilities and actively develop online marketing campaigns on various e-commerce platforms and social media platforms to increase brand awareness. In addition, we will work closely with renowned physicians to conduct product demonstrations and trainings.

Leveraging on our CATAME® technology platform, our integrated commercialization model, in-depth industry experience and the determination of our team, we believe we can seize the opportunities arising from the rapid expansion of China's sales network, provide innovative solutions for patients and generate higher returns to our Shareholders.

FINANCIAL REVIEW

Revenue

Our revenue was substantially generated from the sale of our in-licensed and distributed scalp diseases and care products, skin diseases and care products, as well as certain Routine Skin Care Products. The commercialization of CU-10201 (topical 4% minocycline foam) and CU-40102 (topical finasteride spray) has commenced during the Reporting Period. These products contributed directly to revenue growth through their launch and distribution in China, further supporting the Group's overall growth during the year.

Revenue of the Group increased by 20.2% from RMB279.6 million for the year ended 31 December 2024 to RMB336.2 million for the year ended 31 December 2025, which was primarily due to an increase in sales of scalp diseases and care products and Routine Skin Care Products, as well as revenue contributions from the commercialization of the Key Products. Notably, revenue in the second half of 2025 increased sequentially by 307.1% to RMB269.9 million as compared to the first half of 2025. Revenue in the second half of 2025 achieved a significant sequential improvement compared to the first half, primarily attributable to the rapid growth upon commercialization of the Key Products.

Cost of Sales

Our cost of sales primarily consisted of purchase costs and logistics costs related to our scalp diseases and care products, skin diseases and care products, and Routine Skin Care Products. For the year ended 31 December 2025, we recorded cost of sales of RMB140.4 million, representing an increase of RMB4.2 million from RMB136.2 million for the year ended 31 December 2024. Cost of sales remained relatively stable, primarily due to a higher sales contribution from high-margin product categories.

Gross Profit and Gross Profit Margin

Gross profit represents our revenue less our cost of sales. Gross profit margin represents our gross profit as a percentage of our revenue. Our gross profit amounted to RMB195.8 million for the year ended 31 December 2025, representing an increase of 36.5% from RMB143.5 million for the year ended 31 December 2024. Our gross profit margin increased from 51% for the year ended 31 December 2024 to 58% for the year ended 31 December 2025. Notably, our gross profit margin increased from 48% in the first half of 2025 to 61% in the second half of 2025, primarily driven by a higher sales contribution from high-margin product categories and strategic cost control initiatives.

Other Income and Gains

Our other income primarily consisted of interest income and government grants. The government grants mainly represent subsidies received from local government authorities for the purpose of compensation for our operating activities and investing activities. Our interest income comprised (i) bank interest income; (ii) deemed interest income from loans to employees and related parties; and (iii) imputed interest income on rental and other deposits. Other income of the Group decreased by 12.5% from RMB18.6 million for the year ended 31 December 2024 to RMB16.3 million for the year ended 31 December 2025, which was primarily due to a decrease in bank interest income of RMB5.1 million and partially offset by an increase in government grants of RMB3.5 million.

Our gains primarily consisted of net foreign exchange gains which are in connection with our cash and cash equivalents and time deposits over three months denominated in the U.S. dollars, as a result of the appreciation of the U.S. dollar against RMB and our gains on financial assets at fair value through profit or loss ("FVTPL"). Other gains decreased by 93.8% from RMB24.3 million for the year ended 31 December 2024 to RMB1.5 million for the year ended 31 December 2025, which resulted from a decrease in gains on financial assets at FVTPL and net foreign exchange gains.

Selling and Distribution Expenses

During the Reporting Period, our selling and distribution expenses consisted of staff costs, share-based payments expenses, marketing expenses and others. Our selling and distribution expenses decreased by 17.2% from RMB263.7 million for the year ended 31 December 2024 to RMB218.4 million for the year ended 31 December 2025, which was primarily due to a decrease in marketing expenses resulting from the improved conversion efficiency in traffic acquisition, disciplined ROI management, and strategic cost control initiatives.

Research and Development Costs

Our research and development costs consisted of staff costs, share-based payment expenses, acquisition/licensing-in expenses, third-party contracting costs, depreciation and amortization and others. For the year ended 31 December 2025, we recorded research and development costs of RMB148.7 million, representing an increase of 25.3% as compared to RMB199.0 million for the corresponding period of 2024, which was primarily due to (i) a decrease in the share-based payment expenses resulting from the vesting of a portion of share options and restricted share units under the Pre-IPO Equity Incentive Plan; and (ii) a decrease in third-party contracting costs and licensing-in expenses in line with the research and development activities.

Set out below are the components of research and development costs for the periods indicated:

| | For the year ended
31 December | |
| --- | --- | --- |
| | 2025 | 2024 |
| | RMB’000 | RMB’000 |
| Staff costs | 46,729 | 53,671 |
| Share-based payment expenses | 11,016 | 20,444 |
| Acquisition/licensing-in expenses | 16,019 | 39,593 |
| Third-party contracting costs | 45,823 | 49,957 |
| Depreciation and amortization | 19,650 | 23,893 |
| Others | 9,415 | 11,487 |
| Total | 148,652 | 199,045 |

Administrative Expenses

Our administrative expenses consisted of staff costs, share-based payment expenses, consulting fees, depreciation and amortization and others. Administrative expenses decreased by 9.1% from RMB141.9 million for the year ended 31 December 2024 to RMB128.9 million for the year ended 31 December 2025, which was primarily due to the decrease in the share-based payment expenses resulting from the vesting of a portion of share options and restricted share units under the Pre-IPO Equity Incentive Plan.

Set out below are the components of administrative expenses for the periods indicated:

| | For the year ended
31 December | |
| --- | --- | --- |
| | 2025 | 2024 |
| | RMB’000 | RMB’000 |
| Staff costs | 49,337 | 51,888 |
| Share-based payment expenses | 18,530 | 36,831 |
| Consulting fees | 15,978 | 16,071 |
| Depreciation and amortization | 22,589 | 17,317 |
| Others | 22,483 | 19,766 |
| Total | 128,917 | 141,873 |

Finance costs

During the Reporting Period, our finance costs mainly included interests on bank loans and lease liabilities. Finance costs decreased by 10.6% from RMB10.9 million for the year ended 31 December 2024 to RMB9.7 million for the year ended 31 December 2025, which was primarily due to the decrease in interests on lease liabilities.

Income Tax Expenses

Our income tax expense for the year ended 31 December 2025 was nil (for the year ended 31 December 2024: nil).

Loss for the Year

As a result of the foregoing, we recorded a loss of RMB340.2 million for the year ended 31 December 2025, representing a decrease of RMB93.6 million from RMB433.8 million for the year ended 31 December 2024.

Non-IFRS Measure

To supplement our consolidated financial statements which are presented in accordance with IFRS Accounting Standards, we also use adjusted net loss for the year, a non-IFRS measure to present our operating performance. Adjusted net loss for the year, as an additional financial measure, is not required by, or presented in accordance with IFRS Accounting Standards. We believe that such non-IFRS measure facilitates comparisons of our operating performance from year to year by eliminating impacts of non-cash or non-recurring items that our management considers to be not indicative of our operating performance and provides useful information to Shareholders and investors to evaluate our operating results in the same manner as our management does. However, our presentation of the adjusted net loss for the year may not be comparable to similarly titled measures presented by other companies, including peer companies, and therefore their comparability may be limited. The use of such non-IFRS measure has limitations as an analytical tool, and Shareholders and investors should not consider it in isolation, or as substitute for analysis of, our results of operations or financial position as reported under IFRS Accounting Standards. We define adjusted net loss for the year as loss for the year adjusted by adding back share-based payment expenses. We continued to optimize its operating efficiency, and the proportion of adjusted net loss to revenue further narrowed.

The following table reconciles our non-IFRS adjusted net loss for the year with our loss for the periods indicated:

| | For the year ended
31 December | |
| --- | --- | --- |
| | 2025
RMB’000 | 2024
RMB’000 |
| Loss for the year | (340,192) | (433,811) |
| Add: | | |
| Share-based payment expenses | 25,785 | 68,615 |
| Non-IFRS adjusted net loss for the year (Note) | (314,407) | (365,196) |
| Proportion of non-IFRS adjusted net loss to
revenue for the year | (0.94) | (1.31) |

Note:

Share-based payment expenses relates to the share options and restricted share units granted by the Company under its equity incentive plans, which the management considers that to be a non-cash item.

Liquidity and Financial Resources

Our primary uses of cash were to fund (i) R&D activities of our product candidates; and (ii) our daily operation and commercial promotion activities. We financed our operations primarily through equity financing, bank borrowings and cash generated from sale of our certain in-licensed and distributed scalp diseases and care products, skin diseases and care products, and certain Routine Skin Care Products. We monitor and maintain a level of cash and cash equivalents deemed adequate to finance our operations and mitigate the effects of fluctuations in cash flows. Currently, we follow a set of funding and treasury policies to manage our capital resources and mitigate potential risks involved.

As of 31 December 2025, our total cash and cash equivalents amounted to approximately RMB265.0 million, representing a decrease of approximately 31.3% as compared to approximately RMB385.7 million as of 31 December 2024. Such decrease was primarily due to the expenditures on research and development, selling and distribution and other operating activities.

As of 31 December 2025, our time deposits over three months amounted to approximately RMB91.7 million, representing an increase of approximately 771.3% as compared to approximately RMB10.5 million as of 31 December 2024. Such increase was primarily due to new placement of time deposits.

As of 31 December 2025, our financial assets at FVTPL amounted to approximately RMB431.5 million, representing a decrease of approximately 10.1% as compared to approximately RMB480.0 million as of 31 December 2024, primarily due to the withdrawal of the financial assets at FVTPL.

As of 31 December 2025, current assets of the Group amounted to approximately RMB1,042.7 million, including cash and cash equivalents of approximately RMB265.0 million. Current liabilities of the Group amounted to approximately RMB269.7 million, including interest-bearing bank borrowings of approximately RMB166.6 million.

Details of the maturity profile of interest-bearing bank borrowings as at 31 December 2025 are set out in Note 12 to the financial statements.

Indebtedness

The following table sets forth the breakdown of our lease liabilities and interest-bearing bank borrowings as of the dates indicated:

	As of 31 December 2025 RMB'000	As of 31 December 2024 RMB'000
Lease liabilities	66,183	57,636
Interest-bearing bank borrowings	251,209	263,303

Except as discussed above, we did not have any other material mortgages, charges, debentures, loan capital, debt securities, loans, bank overdrafts or other similar indebtedness, finance lease or hire purchase commitments, liabilities under acceptance (other than normal trade bills), acceptance credits, which are either guaranteed, unguaranteed, secured or unsecured, or guarantees or other contingent liabilities as of 31 December 2025.

Gearing Ratio

As of 31 December 2025, the gearing ratio was 32.2%, as compared with 30.0% as at 31 December 2024. The increase was primarily due to the decrease in cash and cash equivalents due to the expenditures on research and development, selling and distribution and other operating activities in 2025. Gearing ratio is calculated by dividing total liabilities by total assets multiplying the product by 100%.

Significant Investments, Material Acquisitions and Disposal

The Group did not have any significant investments or material acquisitions or disposals of subsidiaries, associates and joint ventures for the year ended 31 December 2025.

Capital Commitments

As of 31 December 2025, we have capital commitment of RMB1.1 million for the contracts in relation to acquisition of property, plant and equipment and other intangible assets (as of 31 December 2024: RMB5.0 million).

Contingent Liabilities

As of 31 December 2025, we did not have any material contingent liabilities, guarantees or any litigation against us (as of 31 December 2024: nil).

Pledge of Assets

As of 31 December 2025, we did not pledge or charge any assets (as of 31 December 2024: nil).

Foreign Exchange Exposure

Foreign currency risk refers to the risk of loss resulting from changes in foreign currency exchange rates. Fluctuations in exchange rates between RMB and other currencies in which our Group conducts business may affect our financial condition and results of operation. The Group mainly operates in the PRC and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to Hong Kong dollars and the U.S. dollars. The conversion of foreign currencies into RMB, including Hong Kong dollars and the U.S. dollars, has been based on rates set by the People's Bank of China. The Group primarily limits our exposure to foreign currency risk by closely monitoring the foreign exchange market. During the year ended 31 December 2025, the Group did not enter into any currency hedging transactions.

Employees and Remuneration

As of 31 December 2025, the Group had a total of 304 employees. The total remuneration cost of the Group for the year ended 31 December 2025 was RMB158.7 million, as compared to RMB219.3 million for the year ended 31 December 2024, which was primarily due to the decrease in share-based payment expenses. The following table sets forth the total number of employees by function as of 31 December 2025:

Function	Number	Percentage of total
R&D	34	11.2%
Manufacturing and Quality Control	54	17.8%
Medical and Regulatory Affairs	38	12.5%
Sales, Marketing and Administration	178	58.5%
Total	304	100.0%

The remuneration of the employees of our Group comprises salaries, bonuses, employees' provident fund, share-based payment, and social security contributions and other welfare payments. In accordance with applicable laws and regulations, we made contributions to social security insurance funds (including pension plans, medical insurance, work-related injury insurance, unemployment insurance and maternity insurance) and housing funds for the Group's employees. Two equity incentive plans, namely Pre-IPO Equity Incentive Plan and Post-IPO Equity Incentive Plan were adopted by the Company to incentivize and reward our employees and to align their interests with that of the Company.

Use of Proceeds from Listing

The Group received net proceeds (after deduction of underwriting commissions and related costs and expenses) from the global offering of approximately HK$392.7 million (equivalent to approximately RMB356.8 million). Such net proceeds were used, and are proposed to be used accordingly to the intentions previously disclosed in the section headed “Future Plans and Use of Proceeds” in the Prospectus of the Company. As of 31 December 2025, such net proceeds were utilized as follows:

Use of proceeds from listing	Amount of net proceeds for planned applications (HK$ million)	Percentage of total net proceeds (%)	Unutilized net proceeds as of 1 January 2025 (HK$ million)	Utilized net proceeds during the year ended 31 December 2025 (HK$ million)	Utilized net proceeds as of 31 Dec 2025 (HK$ million)	Unutilized net proceeds as of 31 Dec 2025 (HK$ million)	Expected time frame for unutilized amount
For the Core Product
1. For funding the costs and expenses in connection with R&D personnel as well as continuing R&D activities of CU-20401	164.9	42.0	104.1	21.2	82.0	82.9	by the end of 2029
2. For the local production of CU-20401 in Chinese Mainland	11.8	3.0	11.8	–	–	11.8	by the end of 2029
For the Key Products
1. For funding the costs and expenses in connection with R&D personnel as well as continuing R&D activities of CU-40102 and CU-10201	43.2	11.0	10.8	10.8	43.2	–
2. For milestone payments of CU-10201	43.2	11.0	35.2	1.0	9.0	34.2	by the end of 2026
For the other candidates in the pipeline
1. For the continuing R&D activities of CU-40101, CU-40103, CU-40104 and other potential scalp diseases and care products	28.3	7.2	7.3	–	21.0	7.3	by the end of 2028
2. For the continuing R&D activities of CU-10101, CU-10401 and other potential skin diseases and care products	28.3	7.2	16.3	–	12.0	16.3	by the end of 2028
3. For the continuing R&D activities of CU-30101	14.1	3.6	–	–	14.1	–
For technology development and business development for pipeline expansion	39.3	10.0	10.1	10.1	39.3	–
For our working capital and other general corporate purposes	19.6	5.0	–	–	19.6	–
Total	392.7	100.0	195.6	43.1	240.2	152.5

Use of Proceeds from Placing

On 28 August 2025, the Company entered into placing agreements with BOCI Asia Limited and Haitong International Securities Company Limited (the “Placing Agents”), pursuant to which, the Placing Agents have agreed to, as agents of the Company, procure on a best efforts basis places for 28,904,000 new Shares in aggregate at a price of HK$8.40 per Share (the “Placing”). On 5 September 2025, 28,904,000 Shares, representing approximately 9.05% and 8.30% of the issued Share (excluding treasury shares) immediately before and after the completion of the Placing, respectively, have been successfully placed to the places at the placing price of HK$8.40 per Share. The gross proceeds raised from the Placing is approximately HK$242.79 million. The net proceeds from the Placing is approximately HK$240.27 million, after deducting related fees and expenses (the “Net Proceeds from Placing”). The Company intended to use the net proceeds from the Placing for (i) approximately 45% of the net proceeds of the Placing, or approximately HK$108.12 million for pre-clinical research and development and clinical trials for the Company’s pipeline in localized adipose accumulation management, scalp diseases and care, skin diseases and care, and topical anesthesia, as well as for the deployment of corresponding production facilities and equipments; (ii) approximately 45% of the net proceeds of the Placing, or approximately HK$108.12 million for marketing activities, channel expansion, and brand building for CU-40102 (topical finasteride spray) and CU-10201 (topical 4% minocycline foam); and (iii) approximately 10% of the net proceeds of the Placing, or approximately HK$24.03 million for working capital and other corporate purposes. For details, please refer to the announcements of the Company dated 28 August 2025 and 5 September 2025.

As of 31 December 2025, there were no changes to the intended use of Net Proceeds from Placing and the analysis of the utilization of the Net Proceeds from Placing is as follows:

Use of proceeds from Placing	Amount of net proceeds for planned applications (HK$ million)	Percentage of total net proceeds (%)	Utilized net proceeds as of 31 Dec 2025 (HK$ million)	Unutilized net proceeds as of 31 Dec 2025 (HK$ million)	Expected time frame for unutilized amount
For the Key Products
For marketing activities, channel expansion, and brand building of CU-40102 and CU-10201	108.12	45.0	60.0	48.12	by the end of 2026
For the other candidates in the pipeline
For pre-clinical research and development and clinical trials for the Company’s pipeline	108.12	45.0	–	108.12	by the end of 2027
For working capital and other corporate purposes	24.03	10.0	11.0	13.03	by the end of 2026
Total	240.27	100.0	71.0	169.27

The Company expects to fully utilize the Net Proceeds from Placing by the end of 2027.

OTHER INFORMATION

Compliance with the Corporate Governance Code

The Company has adopted the principles and code provisions in the Corporate Governance Code and has complied with all applicable code provisions for the year ended 31 December 2025.

Model Code for Securities Transactions

The Company has adopted the Model Code as its own code of conduct regarding securities transactions by the Directors. Having made specific enquiries with all Directors, each of them has confirmed that he/she has complied with the Model Code for the year ended 31 December 2025. No incident of non-compliance of the Model Code by the employees who are likely to be in possession of inside information was noted by the Company.

Purchase, Sale or Redemption of Listed Securities

In 2024, the Company has repurchased a total of 1,362,600 Shares (the “Repurchased Shares”) on the Stock Exchange. As of 31 December 2025, the 1,362,600 Repurchased Shares were accounted for as treasury shares of being used for incentives for eligible participants, sale or transfer to obtain liquidity and other purposes.

Save for the disclosed above, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s listed securities (including sale of treasury shares) for the year ended 31 December 2025.

REVIEW OF FINANCIAL INFORMATION

Audit Committee

The Board has established the Audit Committee which comprises Mr. Chung Ming Kit (chairman), Mr. Zhang Zhisong (appointed on 28 August 2025) and Mr. Ye Xiaoxiang, who are all our independent non-executive Directors. Mr. Tao Tak Yan Dennis, a former member of the Audit Committee, has resigned with effect from 28 August 2025. The primary duties of the Audit Committee are to review and supervise the Company’s financial reporting process, risk management and internal controls.

The Audit Committee, together with the management of the Company, has reviewed the accounting principles and practices adopted by the Group and discussed risk management, internal control and financial reporting matters with management including a review of the consolidated financial information of the Group for the year ended 31 December 2025.

Scope of Work of Ernst & Young

The figures in respect of the Group’s consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income and the related notes thereto for the year ended 31 December 2025 as set out in the preliminary announcement have been agreed by the Company’s auditors, Ernst & Young, to the amounts set out in the Group’s consolidated financial statements for the year ended 31 December 2025. The work performed by the Company’s auditors in this respect did not constitute an assurance engagement and consequently no opinion or assurance conclusion has been expressed by the Company’s auditors on the preliminary announcement.

Final Dividend

The Board does not recommend the payment of a final dividend for the year ended 31 December 2025 (for the year ended 31 December 2024: nil).

PUBLICATION OF ANNUAL RESULTS ANNOUNCEMENT AND ANNUAL REPORT

This announcement is published on the websites of the Stock Exchange (www.hkexnews.hk) and the Company (www.cutiatx.com).

The annual report of the Company for the year ended 31 December 2025 containing all the information required by the Listing Rules will be made available to the Shareholders through e-mail or express delivery and will be published on the respective websites of the Stock Exchange and the Company in due course.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31 December 2025

| | Notes | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- | --- |
| Revenue | 4 | 336,152 | 279,615 |
| Cost of sales | | (140,360) | (136,152) |
| Gross profit | | 195,792 | 143,463 |
| Other income and gains | 4 | 17,794 | 42,936 |
| Selling and distribution expenses | | (218,370) | (263,658) |
| Research and development costs | | (148,652) | (199,045) |
| Administrative expenses | | (128,917) | (141,873) |
| Impairment losses on financial assets | | (10,463) | (430) |
| Other expenses | | (37,664) | (4,344) |
| Finance costs | | (9,712) | (10,860) |
| LOSS BEFORE TAX | | (340,192) | (433,811) |
| Income tax expense | 5 | - | - |
| LOSS AND TOTAL COMPREHENSIVE LOSS
FOR THE YEAR | | (340,192) | (433,811) |
| Attributable to:
Owners of the parent | | (340,192) | (433,811) |
| LOSS PER SHARE ATTRIBUTABLE TO
ORDINARY EQUITY HOLDERS
OF THE PARENT | | | |
| Basic and diluted (RMB) | 7 | (1.03) | (1.41) |

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

31 December 2025

| | Notes | 31 December 2025
RMB'000 | 31 December 2024
RMB'000 |
| --- | --- | --- | --- |
| NON-CURRENT ASSETS | | | |
| Property, plant and equipment | | 155,052 | 173,267 |
| Right-of-use assets | | 49,754 | 47,662 |
| Other intangible assets | | 8,136 | 8,895 |
| Amounts due from related parties | | 36,235 | 36,431 |
| Prepayments, other receivables and other assets | | 14,449 | 39,865 |
| Total non-current assets | | 263,626 | 306,120 |
| CURRENT ASSETS | | | |
| Inventories | | 35,464 | 74,692 |
| Trade receivables | 8 | 175,981 | 99,164 |
| Prepayments, other receivables and other assets | | 35,060 | 35,747 |
| Amounts due from related parties | | 7,319 | 1,363 |
| Financial assets at FVTPL | 9 | 431,488 | 479,955 |
| Time deposits over three months | | 91,747 | 10,530 |
| Restricted bank balances | | 585 | - |
| Cash and cash equivalents | 10 | 265,006 | 385,670 |
| Total current assets | | 1,042,650 | 1,087,121 |

| Notes | 31 December 2025
RMB’000 | 31 December 2024
RMB’000 |
| --- | --- | --- |
| CURRENT LIABILITIES | | |
| Trade and other payables | 11 | 87,518 |
| Lease liabilities | 15,558 | 12,376 |
| Interest-bearing bank borrowings | 12 | 166,639 |
| Total current liabilities | 269,715 | 323,251 |
| NET CURRENT ASSETS | 772,935 | 763,870 |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 1,036,561 | 1,069,990 |
| NON-CURRENT LIABILITIES | | |
| Lease liabilities | 50,625 | 45,260 |
| Government Grants | 16,085 | – |
| Interest-bearing bank borrowings | 12 | 84,570 |
| Total non-current liabilities | 151,280 | 95,260 |
| Net assets | 885,281 | 974,730 |
| EQUITY | | |
| Equity attributable to owners of the parent | | |
| Share capital | 51 | 45 |
| Treasury shares | (13,857) | (13,857) |
| Reserves | 899,087 | 988,542 |
| Total equity | 885,281 | 974,730 |

NOTES TO ANNUAL CONDENSED CONSOLIDATED FINANCIAL INFORMATION
31 December 2025

CORPORATE INFORMATION AND BASIS OF PREPARATION

1.1 Corporate information

Cutia Therapeutics (the “Company”) was incorporated in the Cayman Islands as an exempted company with limited liability on 15 May 2019, and its shares are listed on The Stock Exchange of Hong Kong Limited on 12 June 2023. The registered office address of the Company is 4th Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman KY1-1002, Cayman Islands. The Company is an investment holding company.

The Company and its subsidiaries (the “Group”) are principally engaged in developing innovative and comprehensive solutions that are tailored to meet the diverse and evolving needs of patients and consumers in the broader dermatology treatment and care market.

1.2 Basis of preparation

These financial statements have been prepared in accordance with IFRS Accounting Standards (which include all International Financial Reporting Standards, International Accounting Standards (“IASs”) and Interpretations) as issued by the International Accounting Standards Board (“IASB”) and the disclosure requirements of the Hong Kong Companies Ordinance. They have been prepared under the historical cost convention, except for certain financial instruments which have been measured at fair value. These financial statements are presented in Renminbi (“RMB”) and all values are rounded to the nearest thousand except when otherwise indicated.

CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES

The Group has adopted amendments to IAS 21 Lack of Exchangeability for the first time for the current year’s financial statements. The Group has not early adopted any other standard or amendment that has been issued but is not yet effective.

Amendments to IAS 21 specify how an entity shall assess whether a currency is exchangeable into another currency and how it shall estimate a spot exchange rate at a measurement date when exchangeability is lacking. The amendments require disclosures of information that enable users of financial statements to understand the impact of a currency not being exchangeable. As the currencies that the Group had transacted in and the functional currencies of overseas subsidiaries for translation into the Group’s presentation currency were exchangeable, the amendments did not have any impact on the Group’s financial statements.

In addition, the IASB has issued amendments to Illustrative Examples on IFRS 7, IFRS 18, HKAS 1, IAS 8, IAS 36 and IAS 37 Disclosures about Uncertainties in the Financial Statements, which added illustrative examples in the corresponding IFRS Accounting Standards. These examples reflect existing requirements in the corresponding IFRS Accounting Standards to report the effects of uncertainties in the financial statements using climate-related examples. Therefore, the amendments do not have an effective date or transitional provisions.

3. OPERATING SEGMENT INFORMATION

Operating segment information

For management purposes, the Group has only one reportable operating segment, which is developing innovative and comprehensive solutions that are tailored to meet the diverse and evolving needs of patients and consumers in the broader dermatology treatment and care market. Since this is the only reportable operating segment of the Group, no further operating segment analysis thereof is presented.

Geographical information

During the Reporting Period, all of the Group’s revenue was derived from customers located in the PRC and nearly all of the Group’s non-current assets were located in the PRC, and therefore no geographical segment information is presented in accordance with IFRS 8 Operation Segments.

Information about major customers

Revenue derived from sales to customers, which amounted to more than 10% of the Group’s revenue for the years ended 31 December 2025 and 2024, is as follows:

| | 2025
RMB’000 | 2024
RMB’000 |
| --- | --- | --- |
| Customer A | 90,860 | NA |
| Customer B | 38,623 | NA |
| Customer C | 34,847 | NA |
| Customer D | NA | 73,022 |
| Customer E | NA* | 41,033 |

The corresponding revenue did not amount to more than 10% of the total revenue of the Group for the year concerned.

4. REVENUE, OTHER INCOME AND GAINS

An analysis of revenue is as follows:

| | 2025
RMB’000 | 2024
RMB’000 |
| --- | --- | --- |
| Revenue from contracts with customers | | |
| Sale of products – at a point in time | 336,152 | 279,615 |

An analysis of other income and gains is as follows:

| | 2025
RMB’000 | 2024
RMB’000 |
| --- | --- | --- |
| Other income | | |
| Government grants (note) | 9,428 | 5,966 |
| Bank interest income | 4,825 | 9,945 |
| Imputed interest income on rental and other deposits | 78 | 311 |
| Deemed interest income from loans to employees | 266 | 255 |
| Deemed interest income from the loans to related parties | 1,364 | 1,300 |
| Others | 327 | 829 |
| Total other income | 16,288 | 18,606 |
| Gains | | |
| Foreign exchange gains, net | - | 2,342 |
| Gains on financial assets at FVTPL | 1,506 | 21,988 |
| Total gains | 1,506 | 24,330 |
| Total other income and gains | 17,794 | 42,936 |

Note: The government grants have been received from the PRC local government authorities to support certain subsidiaries' operating and investing activities. There are no unfulfilled conditions relating to these government grants.

INCOME TAX

The Group is subject to income tax on an entity basis on profits arising in or derived from the jurisdictions in which members of the Group are domiciled and operate.

Cayman Islands

Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. In addition, upon payments of dividends by the Company to its Shareholders, no Cayman Islands withholding tax is imposed on the Company.

Hong Kong

The subsidiary incorporated in Hong Kong is subject to Hong Kong profits tax at the rate of 16.5% (2024: 16.5%) on any estimated assessable profits arising in Hong Kong during the year. No Hong Kong profits tax was provided for as the Group did not generate any assessable profits arising in Hong Kong during the years ended 31 December 2025 and 2024.

Chinese mainland

Pursuant to the Corporate Income Tax Law of the People's Republic of China and the respective regulations (the "CIT Law"), the subsidiaries which operate in Chinese Mainland are subject to CIT at a rate of 25% (2024: 25%) on the taxable income during the year.

Pursuant to the relevant CIT Law, Cutia Wuxi enjoyed a super deduction of 200% on qualifying research and development expenditures during the Reporting Period.

A reconciliation of the tax expense applicable to loss before tax at the statutory tax rate for the jurisdiction in which the Company and its major subsidiaries are domiciled to the tax expense at the effective tax rate is as follows:

| | 2025
RMB’000 | 2024
RMB’000 |
| --- | --- | --- |
| Loss before tax | (340,192) | (433,811) |
| Tax at the statutory tax rate (25%) | (85,048) | (108,453) |
| Tax effect of expenses not deductible for tax purposes | 12,915 | 18,700 |
| Additional deductible allowance for research and development expenses | (8,632) | (11,718) |
| Tax effect of tax losses not recognised | 50,956 | 79,680 |
| Tax effect of deductible temporary differences not recognised | 28,494 | 15,899 |
| Effect of different tax rate of subsidiaries operating in other jurisdictions | 1,315 | 5,892 |
| Tax charge at the Group’s effective rate | - | - |

The Group has accumulated tax losses in Hong Kong of approximately RMB185,317,000 (2024: RMB169,849,000) in aggregate as at 31 December 2025 that are available indefinitely for offsetting against future taxable profits of the company in which the losses arose. The Group has accumulated tax losses in Chinese mainland of RMB1,294,019,000 (2024: RMB1,100,405,000) in aggregate as at 31 December 2025 that would expire in one to five years for offsetting against future taxable profits of the companies in which the losses arose.

The Group has unrecognised deductible temporary differences of RMB237,242,000 (2024: RMB123,264,000) as at 31 December 2025. The unrecognised deductible temporary differences are mainly related to advertising and promotional expenses that exceed 15% of the revenue for the current tax year, as well as significant inventory write-down provisions and bad debt provisions. These differences are allowed to be carried forward to the following tax years for deduction within the applicable deduction limits.

Deferred tax assets have not been recognised in respect of these losses and temporary differences as they have arisen in the subsidiaries that have been loss-making for some time and it is not considered probable that taxable profits in foreseeable future will be available against which the tax losses can be utilised.

6. DIVIDENDS

No dividend was paid or proposed for ordinary Shareholders of the Company for the year ended 31 December 2025, nor has any dividend been proposed since the end of the Reporting Period (2024: nil).

7. LOSS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT

The calculation of the basic loss per share amounts is based on the loss for the year attributable to ordinary equity holders of the parent, and the weighted average numbers of ordinary shares of 330,860,864 (2024: 307,192,968) outstanding during the year.

No adjustment has been made to the basic loss per share amounts presented for the years ended 31 December 2025 and 2024 in respect of a dilution as the impact of share options and restricted share units had an anti-dilutive effect on the basic loss per share amounts presented.

The calculations of basic and diluted loss per share are based on:

	2025	2024
Loss
Loss attributable to ordinary equity holders of the parent for the purpose of calculating basic and diluted loss per share (RMB’000)	(340,192)	(433,811)
Shares
Weighted average number of ordinary shares in issue during the year used in the basic and diluted loss per share calculation	330,860,864	307,192,968
Loss per share (basic and diluted) (RMB per share)	(1.03)	(1.41)

8. TRADE RECEIVABLES

| | 2025
RMB’000 | 2024
RMB’000 |
| --- | --- | --- |
| Trade receivables | 185,627 | 100,346 |
| Impairment | (9,646) | (1,182) |
| Net carrying amount | 175,981 | 99,164 |

The Group's trading terms with some of its customers are on credit. The Group primarily allows a credit period of 7 to 180 days. Each customer has a maximum credit limit. The Group seeks to maintain strict control over its outstanding receivables to minimise credit risk. Overdue balances are reviewed regularly by senior management. The Group has certain concentrations of credit risk as the Group's trade receivables are due from a few customers. The Group does not hold any collateral or other credit enhancements over its trade receivable balances. Trade receivables are non-interest-bearing.

An ageing analysis of the trade receivables as at the end of the Reporting Period, based on the invoice date and net of loss allowance, is as follows:

| | 2025
RMB’000 | 2024
RMB’000 |
| --- | --- | --- |
| Within 1 month | 125,318 | 54,610 |
| 1 month to 6 months | 49,262 | 43,971 |
| 6 months to 12 months | 892 | 500 |
| Over 12 months | 509 | 83 |
| Total | 175,981 | 99,164 |

The movements in the loss allowance for impairment of trade receivables are as follows:

| | 2025
RMB’000 | 2024
RMB’000 |
| --- | --- | --- |
| At beginning of year | 1,182 | 752 |
| Impairment losses, net | 8,464 | 430 |
| At end of year | 9,646 | 1,182 |

An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision rates are based on ageing for groupings of various customer segments with similar loss patterns (i.e., by customer type). The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions.

Set out below is the information about the credit risk exposure on the Group's trade receivables using a provision matrix:

As at 31 December 2025

	Ageing				Total
	Within 1 month	1 to 6 months	6 to 12 months	Over 12 months
Expected credit loss rate	0.56%	2.89%	76.40%	90.03%	5.20%
Gross carrying amount (RMB’000)	126,018	50,727	3,779	5,103	185,627
Expected credit losses (RMB’000)	700	1,465	2,887	4,594	9,646

As at 31 December 2024

	Ageing				Total
	Within 1 months	1 to 6 months	6 to 12 months	Over 12 months
Expected credit loss rate	1.00%	1.39%	1.38%	3.49%	1.18%
Gross carrying amount (RMB’000)	55,160	44,593	507	86	100,346
Expected credit losses (RMB’000)	550	622	7	3	1,182

FINANCIAL ASSETS AT FVTPL

	2025 RMB’000	2024 RMB’000
Financial products	431,488	479,955

The financial assets measured at FVTPL represented financial products with no predetermined return which are principal protected investments. The financial products are with expected yield rates, depending on the market prices of underlying financial instruments, including bonds, debentures and other financial assets. Hence their contractual cash flows do not qualify for solely payments of principal and interest. The expected yield rates ranged from 1.5% to 4.5% per annum as at 31 December 2025 (31 December 2024: 1.5% to 4.5% per annum).

CASH AND CASH EQUIVALENTS AND RESTRICTED BANK BALANCES

	2025 RMB’000	2024 RMB’000
Cash and cash equivalents	265,591	385,670
Less:
Restricted bank balances	(585)	-
Total	265,006	385,670
Denominated in
RMB	116,473	226,758
US$	56,000	155,008
EUR	1	-
HK$	92,532	3,904
Cash and cash equivalents	265,006	385,670

The RMB is not freely convertible into other currencies, however, under Chinese mainland's Foreign Exchange Control Regulations and Administration of Settlement, and Sale and Payment of Foreign Exchange Regulations, the Group is permitted to exchange RMB for other currencies through banks authorised to conduct foreign exchange business.

Cash at banks earns interest at floating rates based on daily bank deposit rates. Short term time deposits are made for varying periods of between one day and three months depending on the immediate cash requirements of the Group, and earn interest at the respective short term time deposit rates. The bank balances and time deposits are deposited with creditworthy banks with no recent history of default.

11. TRADE AND OTHER PAYABLES

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Trade payables | 15,364 | 12,821 |
| Accrued expenses for research and development services | 16,968 | 20,849 |
| Payables for purchase of items of property, plant and equipment | 2,441 | 7,175 |
| Other payables | 33,734 | 31,503 |
| Salary and bonus payables | 5,242 | 12,107 |
| Other taxes payable | 7,219 | 6,567 |
| Accrued listing expenses | 6,550 | 6,550 |
| Total | 87,518 | 97,572 |

An ageing analysis of the trade payables as at the end of the Reporting Period, based on the invoice date, was as follows:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Within 3 months | 15,364 | 12,821 |

Trade and other payables are unsecured, non-interest-bearing and repayable on demand. The carrying amounts of financial liabilities included in trade and other payables as at 31 December 2025 and 2024 approximated to their fair values due to their short-term maturities.

INTEREST-BEARING BANK BORROWINGS

	2025			2024
	Effective interest rate (%)	Maturity	Amount RMB'000	Effective interest rate (%)	Maturity	Amount RMB'000
Current
Bank loans – unsecured	2.50-2.90	2026	97,882	1.80-3.21	2025	167,603
Bank loans – unsecured	–	–	–	One-year Loan prime rate (“LPR”)-105 Basepoints (“bps”)	2025	5,700
Current portion of long term bank loans – secured (note)	3.45	2026	20,000	3.45	2025	40,000
Current portion of long term bank loans – secured	One-year LPR-50 bps	2026	6,000	–	–	–
Current portion of long term bank loans – unsecured	2.50-2.70	2026	2,000	–	–	–
Current portion of long term bank loans – unsecured	One-year LPR-20-50 bps	2026	40,757	–	–	–
Total – current			166,639			213,303
Non-current
Other secured bank loans (note)	–	–	–	3.45	2026	20,000
Bank loans – unsecured	2.50-2.70	2027	18,000	–	–	–
Bank loans – unsecured	One-year LPR-30-50 bps	2027	66,570	One-year LPR-20 bps	2026	30,000
Total – non-current			84,570			50,000
Total			251,209			263,303

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Analysed into: | | |
| Bank loans and overdrafts repayable: | | |
| Within one year or on demand | 166,639 | 213,303 |
| In the second year | 84,570 | 50,000 |
| Total | 251,209 | 263,303 |

The carrying amounts of borrowings are denominated in the following currency:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| RMB | 251,209 | 263,303 |

An analysis of the carrying amounts of borrowings by type of interest rate is as follows:

| | 2025
RMB'000 | 2024
RMB'000 |
| --- | --- | --- |
| Fixed interest rate | 137,882 | 227,603 |
| Variable interest rate | 113,327 | 35,700 |
| Total | 251,209 | 263,303 |

Note: The Company has guaranteed certain of the Group’s bank loans up to RMB120,000,000 as at the end of the Reporting Period.

DEFINITIONS AND GLOSSARY OF TECHNICAL TERMS

“androgenetic alopecia” a common form of hair loss in both men and women

“Audit Committee” the audit committee of the Board

“Board” the board of Directors of our Company

“China”, “Chinese Mainland” or “PRC” the People’s Republic of China, but for the purpose of this announcement and for geographical reference only and except where the context requires, excluding Taiwan, the Macao Special Administrative Region and Hong Kong

“clinical trial(s)” a research study for validating or finding the therapeutic effects and side effects of test drugs in order to determine the therapeutic value and safety of such drugs

“Company” Cutia Therapeutics (科笛集團), an exempted company with limited liability incorporated under the laws of the Cayman Islands on 15 May 2019, the Shares of which are listed on the Main Board of the Stock Exchange

“Core Product” has the meaning ascribed to it under Chapter 18A of the Listing Rules; for the purpose of this announcement, our Core Product refers to CU-20401

“Corporate Governance Code” the Corporate Governance Code contained in Appendix C1 to the Listing Rules

“Cutia Wuxi” Cutia Therapeutics (Wuxi) Co., Ltd. (科笛生物醫藥(無錫)有限公司), a limited liability company established in the PRC on 4 December 2020 and a wholly-owned subsidiary of the Company

“dermatology” the branch of medicine that deals with the diagnosis and treatment of skin related disorders

“DHT” dihydrotestosterone, a male sex hormone which is the active form of testosterone, formed from testosterone in bodily tissue

“Director(s)” the director(s) of the Company

“EUR” Euro, the lawful currency of the European Union

“FDA” Food and Drug Administration of the United States

“GMP” good manufacturing practice, the practices required in order to conform to the guidelines recommended by agencies that control the authorization and licensing of the manufacture and sale of products

“Group”, “our Group”, “our”, “we”, or “us” our Company and our subsidiaries

“HK$” or “Hong Kong Dollars” Hong Kong dollars, the lawful currency of Hong Kong

“Hong Kong” or “HK” the Hong Kong Special Administrative Region of the PRC

“Hong Kong Department of Health” the Department of Health of the Government of Hong Kong

“IFRS” International Financial Reporting Standards

“IND” investigational new drug, an application in the drug review process required by an regulatory authority to decide whether a new drug is permitted to initiate clinical trials; also known as clinical trial application, or CTA, in China

“indication” a valid reason to use a specific test, drug, device, procedure or surgery

“Key Product(s)” for the purpose of this announcement, our Key Products refer to CU-40102 and CU-10201

“Listing Rules” the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, as amended, supplemented or otherwise modified from time to time

“mechanism of action” the specific biochemical interaction through which a drug substance produces its pharmacological effect

“Model Code” the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules

“NMPA” the National Medical Products Administration of China (中國國家藥品監督管理局)

“Phase I clinical trial” a study in which a drug is introduced into healthy human subjects or patients with the target disease or condition and tested for safety, dosage tolerance, absorption, metabolism, distribution, excretion, and if possible, to gain an early indication of its efficacy

“Phase II clinical trial” a study in which a drug is administered to a limited patient population to preliminarily evaluate the efficacy of the product for specific targeted diseases, to identify possible adverse effects and safety risks, and to determine optimal dosage

“Phase III clinical trial” a study in which a drug is administered to an expanded patient population generally at geographically dispersed clinical trial sites, in well-controlled clinical trials to generate enough data to statistically evaluate the efficacy and safety of the product for approval, to provide adequate information for the labeling of the product

“Post-IPO Equity Incentive Plan” the equity incentive plan adopted by the Company on 30 May 2023

"Pre-IPO Equity Incentive Plan" the equity incentive plan adopted by the Company that took effect on 23 August 2019

"Prospectus" the prospectus issued by the Company dated 31 May 2023

"R&D" research and development

"Reporting Period" the year ended 31 December 2025

"RMB" the lawful currency of the PRC

"Shares" ordinary share(s) with nominal value of US$0.00002 each in the share capital of the Company

"Shareholders" holder(s) of the Shares

"Stock Exchange" The Stock Exchange of Hong Kong Limited

"subsidiary(ies)" has the meaning ascribed to it in section 15 of the Companies Ordinance

"US" or "United States" the United States of America, its territories and possessions, any State of the United States, and the District of Columbia or "the U.S."

"US$" or "U.S. dollars" the lawful currency of the U.S.

By order of the Board