筠师帮

藥師幫股份有限公司

YSB Inc.

(Incorporated in the Cayman Islands with limited liability)

Stock Code: 9885

2025

INTERIM REPORT

2 CORPORATE INFORMATION
4 BUSINESS REVIEW AND OUTLOOK
13 FINANCIAL HIGHLIGHTS
14 MANAGEMENT DISCUSSION AND ANALYSIS
21 CORPORATE GOVERNANCE AND OTHER INFORMATION
32 REPORT ON REVIEW OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
33 CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
34 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
36 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
37 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
38 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
58 DEFINITIONS

YSB INC.
INTERIM REPORT 2025

Corporate Information

BOARD OF DIRECTORS

Executive Directors

Mr. Buzhen Zhang (張步鎮)
(Chairman and Chief Executive Officer)
Mr. Fei Chen (陳飛)

Non-Executive Director

Mr. Ziyang Zhu (朱梓陽)

Independent Non-Executive Directors

Ms. Rong Shao (邵蓉)
Mr. Sam Hanhui Sun (孫含暉)
Mr. Hongqiang Zhao (趙宏強)

AUDIT COMMITTEE

Mr. Hongqiang Zhao (趙宏強) (Chairman)
Ms. Rong Shao (邵蓉)
Mr. Sam Hanhui Sun (孫含暉)

REMUNERATION COMMITTEE

Mr. Sam Hanhui Sun (孫含暉) (Chairman)
Ms. Rong Shao (邵蓉)
Mr. Hongqiang Zhao (趙宏強)

NOMINATION COMMITTEE

Mr. Buzhen Zhang (張步鎮) (Chairman)
Ms. Rong Shao (邵蓉)
Mr. Sam Hanhui Sun (孫含暉)
Mr. Hongqiang Zhao (趙宏強)

ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE COMMITTEE

Mr. Hongqiang Zhao (趙宏強) (Chairman)
Ms. Rong Shao (邵蓉)
Mr. Sam Hanhui Sun (孫含暉)

JOINT COMPANY SECRETARIES

Mr. Fei Chen (陳飛)
Ms. Fung Wai Sum (馮慧森)

AUTHORIZED REPRESENTATIVES

Mr. Fei Chen (陳飛)
Ms. Fung Wai Sum (馮慧森)

AUDITOR

Deloitte Touche Tohmatsu
Certified Public Accountants
Registered Public Interest Entity Auditors

REGISTERED OFFICE

Vistra (Cayman) Limited
P.O. Box 31119 Grand Pavilion
Hibiscus Way 802 West Bay Road
Grand Cayman KY1-1205
Cayman Islands

HEADQUARTERS

Yaoshibang Building
No. 8 Brand Street
TIT Creative Industry Zone
No. 397 Xingang Middle Road
Guangzhou, China

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

Room 1910, 19/F, Lee Garden One
33 Hysan Avenue
Causeway Bay, Hong Kong

LEGAL ADVISORS

As to Hong Kong law
King & Wood Mallesons

As to PRC law
Anjie Broad Law Firm

As to Cayman Islands law
Harney Westwood & Riegels

Corporate Information

COMPLIANCE ADVISOR

Maxa Capital Limited
Unit 2602, 26/F, Golden Centre
188 Des Voeux Road Central
Sheung Wan, Hong Kong

HONG KONG BRANCH SHARE REGISTRAR

Tricor Investor Services Limited
17/F, Far East Finance Centre
16 Harcourt Road
Hong Kong

PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE

Vistra (Cayman) Limited
P.O. Box 31119 Grand Pavilion
Hibiscus Way 802 West Bay Road
Grand Cayman KY1-1205
Cayman Islands

PRINCIPAL BANKS

Ping An Bank, Shenzhen Bantian Branch
China Merchants Bank, Guangzhou Branch
Bank Of China, Guangzhou Panyu Branch

STOCK CODE

9885

COMPANY WEBSITE

www.ysbang.cn

INTERIM REPORT 2025 YSB INC.

Business Review and Outlook

BUSINESS OUTLOOK AND REVIEW

In 2025, the Chinese government continued to promote the “Healthy China 2030 (健康中國2030)” strategy and the 14th Five-Year Plan, introducing a number of supporting policies to encourage the digital and intelligent transformation of the outside-of-hospital pharmaceutical and healthcare industry. The promulgation of policies such as the “Guideline to Advance High-quality Development of Service Consumption(《關於促進服務消費高質量發展的意見》)” has clarified the functional positioning of retail pharmacies in health promotion, nutrition and health care. Consumers’ demand for high-quality, personalised pharmaceutical products and services in chronic disease management, health and beauty management continued to increase, creating new growth opportunities for the industry. In addition, policies are driving the allocation of high-quality medical resources to primary care, making the primary healthcare market a new growth area for the outside-of-hospital pharmaceutical and healthcare industry. Meanwhile, the strengthening of the overall medical insurance policy and the enhanced supervision of the retail market are accelerating industry reform. Against this backdrop, the Company has closely followed the policy guidance, increased investment in technological innovation, and deepened digital transformation. By continuously leveraging digital and intelligent procurement to reduce costs and increase efficiency, accelerating digital and intelligent logistics, and iteratively optimising digital and intelligent marketing, the Company has driven comprehensive business upgrades and built a more complete service ecosystem for outside-of-hospital pharmaceutical and healthcare.

During the Reporting Period, although we were challenged by the slowdown in the overall growth of the pharmaceutical retail market, our business achieved steady growth. We have consistently enhanced user experience, strengthened user loyalty and driven business growth by accurately understanding user needs, building a comprehensive service ecosystem and continuously optimising through digital empowerment. During the Reporting Period, we had an average number of monthly active buyers (“MAB”) of 453,000, representing a year-on-year increase of 6.5%. The average number of monthly paying buyers (“MPB”) reached 426,000, representing a year-on-year increase of 7.6%. Our paying ratio, i.e. the proportion of average number of MPB to average number of MAB, reached 94.0%, and the average number of orders per paying buyer per month was around 29.2.

YSB INC.
INTERIM REPORT 2025

Business Review and Outlook

ONLINE MARKETPLACE

As a leading digital service platform for the outside-of-hospital pharmaceutical industry in China, we continued to strengthen the construction of our digital capabilities, optimise user experience, and solidify the platform's service offerings, further improving users' satisfaction and market competitiveness.

During the Reporting Period, we comprehensively improved the diversity of products on our platform to cover a wider range of customer needs and scenarios. Through big data analysis and users' needs insight, our platform meticulously curated product selections, optimised and expanded categories to ensure that listed products are aligned with market demands. During the Reporting Period, the average monthly SKUs on the platform continued to increase to approximately 4,000,000, meeting the diverse needs of users to a very large extent. In response to the consumption upgrading trend of TCM decoction pieces, our platform has built a comprehensive digital ecosystem spanning the entire process from field breeding to downstream buyers delivery by optimising and promoting Jinfang standards, strengthening user education and coverage, and utilising digital technology innovation. Meanwhile, the Online Marketplace rigorously adheres to stringent quality control standards for TCM decoction pieces, advancing the industry transformation from "experience-based" to "data-driven". YSB expanded its footprint in the production regions for medicinal materials to ensure quality control of raw materials from source. Simultaneously, leveraging our established Jinfang standards, we encouraged those TCM decoction pieces merchants on YSB's platform to extend their industrial chains to TCM production regions, further optimising the industrial chain traceability system and enhancing the quality control during the entire process of TCM production. During the Reporting Period, we provided 125,000 SKUs, representing a year-on-year increase of 22.5% and sold to downstream buyers over 18,000 tons of TCM decoction pieces, representing a year-on-year increase of approximately 42.6%.

At the same time, we are always committed to building a more prosperous and diverse user ecosystem. On one hand, we have successfully attracted a large number of high-quality third-party sellers to join the platform through operational strategy support, technical empowerment and ecological co-construction, and helped them achieve business growth through a complete service system. On the other hand, we have enhanced users' experience across all dimensions by optimising platform functions and conducting diverse marketing activities. The influence of the platform among downstream user groups continues to rise, with user activity and loyalty significantly increased.

We charge upstream sellers a commission, which is based on a certain percentage of their sales on our Online Marketplace. During the Reporting Period, the average Online Marketplace commission rate we charged recorded a stable increase of approximately 3.3% as compared to the same period of last year. In return, our Online Marketplace provides subsidies in the form of coupon to our downstream buyers. Without compromising platform retention and transaction level, our Online Marketplace subsidy ratio was 0.5% for the first half of 2025, further lower than 0.6% for the same period of 2024.

INTERIM REPORT 2025 YSB INC.

Business Review and Outlook

GENERAL SELF-OPERATION BUSINESS

During the Reporting Period, we focused on comprehensive advancement in the four core dimensions of “more, quicker, better, and economical”, continuously enhancing the operating capabilities of our Self-operation Business and achieving steady development in this segment. The business is conducted through our self-operated online digital stores, aiming at providing convenient, efficient and high-quality medical and health services to downstream users.

In the dimension of “more”, we further refined the overall category layout of our Self-operation Business during the Reporting Period. Based on the transaction history on our Online Marketplace and underpinned by our big data analysis of buyers’ demand and transaction preference, we are able to make procurement decisions based on downstream demand, select SKUs with higher frequencies of purchase and better quality, and exercise a higher level of quality control over products on our own. We not only further introduced treatment drugs for various common diseases, but also enriched related categories such as medical devices and tonics to meet the diversified health procurement needs of downstream users. By establishing partnerships with more high-quality suppliers, we have continuously expanded our product categories, offering users a broader selection. During the Reporting Period, our Self-operation Business provided an average monthly SKUs of 480,000 to downstream buyers, representing an increase of 58,000 during the Reporting Period.

“Quicker” is reflected in the continuous optimisation of our smart supply chain system during the Reporting Period. We have established efficient procurement, warehousing and logistics and distribution systems to achieve rapid performance in relation to medical and health products. As the intra-city delivery business became increasingly mature, we have launched intra-city delivery services in certain cities where our main warehouses are located and in surrounding cities. During the Reporting Period, by refining delivery stations down to the street level, we have significantly improved delivery efficiency. Additionally, by optimising routes and enhancing ride-hailing matching model, we improved fleet utilisation efficiency. The per-unit fulfilment costs of our self-operation warehouses for intra-city (equal to the sum of the total delivery charges per delivery shift/the number of users in a single delivery shift) has dropped by 18.9%. In terms of delivery efficiency, the proportion of orders were delivered within only half a day from placement of orders to delivery has increased from 67.7% for the first half of 2024 to 70.0% for the first half of 2025. Such fast and fabulous procurement experience significantly increased the variety and frequency of purchases from our downstream buyers.

“Better” is not only the bottom line of quality that we always adhere to, but also our ceaseless pursuit in service. Starting from the source of pharmaceutical and health product procurement, we rigorously control quality by partnering with suppliers that have comprehensive qualifications and good reputation. During the Reporting Period, we further upgraded our supplier service platform and successfully achieved data interaction with the internal systems of the Company, ensuring real-time updates and sharing of key data such as supplier information, order information, and order status. The platform promoted the flow and sharing of information among various nodes in the supply chain, and improved the response speed and flexibility of the overall supply chain. Meanwhile, we have optimised the service efficiency of the flow management system and achieved full traceability of pharmaceutical and healthcare product sales channels to ensure their safety and compliance. Thanks to this stringent control of quality, our product return rate continued to decline during the Reporting Period, representing a decrease from 0.5% for the same period of last year to 0.4%.

YSB INC.
INTERIM REPORT 2025

Business Review and Outlook

"Economical" is an important manifestation of the value we create for users. During the Reporting Period, we further strengthened the direct supply model from manufacturers. By purchasing directly with manufacturers, we continued to optimise procurement channels and reduce operating costs, enabling us to provide pharmaceutical and healthcare products to downstream users at more competitive prices. During the Reporting Period, we carried out official group cooperation with leading pharmaceutical companies such as CR Sanjiu (華潤三九), Huahai Pharmaceutical (華海藥業), and Hengrui Pharmaceuticals to shorten the supply chain from pharmaceutical manufacturers directly to the extensive outside-of-hospital market. Through cooperation with CR Sanjiu, we provided users with more cost-effective and channel-focused exclusive products. By deepening our partnership with Qilu Pharmaceutical (齊魯製藥), we have introduced more high-quality medications from Qilu Pharmaceutical, opening up a high-efficiency and cost-effective channel from pharmaceutical companies to end users. In addition, we have also launched a series of promotional activities such as free shipping for single items and subsidies from pharmaceutical companies, and a membership system, allowing downstream users to enjoy premium services at a more affordable price.

TARGETED PRODUCT LAUNCH BUSINESS

Leveraging years of deep experience and keen insight in both Online Marketplace and General Self-operation Business, we are able to accurately identify products with broad market demand prospects. Based on such insight, on one hand, we actively sought to establish in-depth cooperation with pharmaceutical companies, aiming to promote their products customised for downstream needs to a broader market, thereby turning potential market opportunities into sales performance. On the other hand, leveraging the brand influence and channel advantages we have built, we strategically promoted the expansion of our own brand products, and committed to launching our own brand products with high-quality and diverse categories that closely meet the market demand in order to meet the diversified needs of a wider range of downstream users. With the accelerated coverage of the products under our own brand in the outside-of-hospital pharmaceutical market, we significantly enhanced our brand influence, strengthened our market competitiveness and further expanded our market share. Through this dual-drive approach, we not only created value for our partners, but also provided downstream buyers with higher quality and more diverse pharmaceutical and health product options, continuously driving the Company's business growth. During the Reporting Period, the transaction amounts of our Targeted Product Launch Business totaled to RMB1,080 million, representing a year-on-year increase of 115.6%.

During the Reporting Period, we focused the strategic layout of our Targeted Product Launch Business on expanding the coverage of products under our own brands in downstream pharmacies and primary healthcare institutions, driving the deep penetration of our brand influence. In terms of the expansion of our own brands, by upholding quality and safety and based on the actual needs of downstream pharmacies and primary healthcare institutions, we are committed to continuously identifying products with the potential to become channel bestsellers and comprehensively enhancing the product coverage of our own brands and use these measures as the key to differentiating ourselves from competition and enhancing profitability. Meanwhile, we utilise digital marketing to promote the brand concept and product advantages of our own brands through channels such as targeted advertising, social media platforms, and collaboration with benchmark offline image stores.

During the Reporting Period, the transaction amounts of our own brands amounted to RMB852 million, representing a year-on-year increase of approximately 473.4%. Among which, the key single product "Leyaoshi Huoxiang Zhengqi Kou Fu Ye (樂藥師霍香正氣口服液)" launched in 2024 made substantial breakthroughs in covering primary healthcare terminals, with primary healthcare institutions contributed over 40% of its total sales. In addition, YSB launched its second key single product "Leyaoshi Changyanning Kou Fu Ye (樂藥師腸炎寧口服液)" in the first half of 2025. The product, with an exclusive approval, was listed in over 30,000 independent pharmacies and primary healthcare institutions within two months after its launch.

INTERIM REPORT 2025 YSB INC.

Business Review and Outlook

OTHER BUSINESSES

ClouMinihouse (光譜小屋)

In the context of the digital revolution transforming the healthcare industry, we have continued to strive to improve the diagnosis and treatment capability of primary care doctors, assist them in expanding their service offerings, and enhance their comprehensive service capabilities. During the Reporting Period, we launched comprehensive solutions for "ClouMinihouse" primary smart healthcare system, which integrated "FutureClou" series products, the advanced point-of-care testing and monitoring devices, "Cloud Consultation SaaS (光譜雲診SaaS)", a digital clinic management system, and "ClouWiseDoctor", a smart AI doctors-aid system. By focusing on equipment upgrades, management efficiency improvements, as well as diagnosis and treatment empowerment, we aim to comprehensively improve the operational standards of primary healthcare institutions and the professional skills of primary care doctors.

Leveraging our platform's vast user base and extensive market data, we have accurately identified potential demands within common and critical application scenarios in primary healthcare, such as disease prevention, acute disease treatment, chronic disease rehabilitation, severe disease screening, as well as epidemic monitoring and treatment. Based on these precise insights, we launched three "FutureClou" series point-of-care testing devices in August 2024, namely Clou Immuno Cube (光譜免疫小方盒), Clou Chronic Disease Analyzer (光譜慢病檢測儀), and Clou Micro Hematology Analyzer (光譜微型血球儀). These devices feature immediate testing, multi-parameter analysis, compact size, and ease of operation, significantly enhancing the efficiency of primary healthcare testing and quickly gaining market recognition. As of 30 June 2025, these three devices covered more than 18,000 end users with sales exceeding 23,000 units. The AI large models integrated with these devices not only enable real-time analysis of data including blood lipids, uric acid, C-reactive protein, HbA1c and influenza A/B, pneumonia, and respiratory syncytial virus, but also generate trend analysis profiles by synthesising patients' historical test records. This capability provides precise clinical recommendations, empowering primary care doctors to dynamically evaluate disease management efficacy. The integration of hardware with AI provides primary care doctors with more comprehensive and accurate diagnostic information and facilitate their precise prescribed medication use, thereby improving the quality and effectiveness of primary healthcare services and safeguarding the health of general primary patients.

We continued to optimise and upgrade the "Cloud Consultation" SaaS service for primary healthcare institutions. Focusing on intelligence and convenience, the AI-powered services automatically consolidated patients' electronic medical records, historical medication data, and real-time testing data into dynamic health profiles. When doctors prescribe medications, the AI engine instantly performs drug interaction screening, dosage rationality validation and cross-referencing of allergy history, then recommends corresponding western medicine or TCM prescription, which drastically reduces the time spent on traditional manual handwritten records or paper-based documentation searches, significantly boosting efficiency for primary care doctors. As of 30 June 2025, "Cloud Consultation" had covered over 1,500 clinics. Furthermore, we had completed the connection with the medical insurance system in 94 cities, enabling local patients to settle their payments with medical insurance funds via this system. The integration of hardware, software and AI has unleashed enormous potential, which enabled YSB to establish a service loop covering the entire supply chain of "testing – diagnosis – treatment – management", empowering primary healthcare institutions to upgrade their diagnosis and treatment capability.

YSB INC.
INTERIM REPORT 2025

INTERIM REPORT 2025
YSB INC.
9

Business Review and Outlook

YSB eLEARN

During the Reporting Period, we continued to make efforts in improving the service capability of pharmacists to better meet the needs of end customers. Since 2015, we had innovatively introduced mobile pharmaceutical training classrooms, aiming to strengthen the professional knowledge and practical skills of pharmacists through systematic training. We offer comprehensive online training sessions covering pharmaceutical theory, clinical practice and regulation knowledge to help prospective pharmacists prepare for the Pharmacist Licensure Examination efficiently. Meanwhile, we actively facilitated the communication among pharmaceutical companies and pharmacists, and regularly invited well-known pharmaceutical companies to hold online introductory sessions to help pharmacists gain an in-depth understanding of the latest pharmaceuticals information, clinical application and market dynamics, which in turn enhances their professional judgment and services in practice. As of 30 June 2025, we provided online trainings to approximately 314,000 pharmacists and prospective pharmacists.

Business Review and Outlook

SUPPLY CHAIN MANAGEMENT

Our self-developed smart supply chain management system is an integral key player in the continuous expansion of business scale. Relying on advanced algorithm technology and the profound insights accumulated from extensive transacting on our Self-operation Business and Online Marketplace, we have successfully realised the in-depth integration and comprehensive consolidation of the front and back ends of the supply chain, which covers the whole process of procurement, warehousing and delivery, driving the intelligent upgrading and substantial enhancement of the efficiency throughout the supply chain system. During the Reporting Period, we were able to guarantee an order can be processed and completed for delivery with approximately 3 hours on average, much faster than the industry level. During the Reporting Period, by leveraging on smart supply chain management, we maintained payable turnover days at around 67.7 days, inventory turnover days at around 32.2 days and receivable turnover days at around 1.8 days. Accordingly, our cash conversion cycle was around -33.8 days, and the operating cash flow remained net inflow in the long run. The quick turnover business model not only significantly improves our cash management efficiency, but also brings considerable idle cash to the platform, which greatly improves our liquidity and provides a solid guarantee for us to safely and quickly scale up our business. Meanwhile, the availability of idle cash also brings us extra revenue streams in addition to higher gross profit, further improving the overall profitability and driving the sustainable development of our business.

In terms of payment, our platform offers innovative supply chain financial services to downstream buyers. We use advanced digital technology to efficiently integrate business, logistics, information flow and capital, forming a full-chain financial service ecosystem linking up upstream and downstream enterprises. With the support of our platform, third-party financial institutions offer tailor-made order financing products to downstream users, which ensures that loan funds are utilised according to their specific purposes and used only for the procurement on our platform, thereby enhancing the funds utilisation of downstream users and further promoting the value co-creation in the supply chain. During the Reporting Period, the number of downstream active users for order financing products was over 10,500; the cumulative lending amount was approximately RMB4,402 million, representing a year-on-year increase of 31.0%, of which the cumulative lending amount of order financing products from downstream chain pharmacy buyers was approximately RMB3,522 million, representing a year-on-year increase of 34.2%. The supply chain financial business significantly relieved the pressure on capital turnover of downstream users by optimising their capital flow management, while boosting the willingness of chain pharmacies in purchasing on our platform. During the Reporting Period, the number of MPB from chain headquarters was approximately 4,900, representing approximately 73.0% of the total number of chain headquarters nationwide.

BUSINESS DEVELOPMENT

Through years of dedication in the outside-of-hospital pharmaceutical sector, we have accumulated extensive industry experience and developed precise market insights, efficient resource deployment and excellent customer service capabilities. Based on such core strengths, we have tailored our business development strategies in line with our own development and market needs. We have been closely monitoring the immense potential and opportunities in the market, while keeping track on regulatory policy changes to continuously optimise our strategic layout, in order to comply with the dual guidance of policy and market. This flexible and forward-looking strategy not only enables us to respond quickly to market changes, but also serves as a strong support for us to consistently expand our market share and consolidate our leading position in the industry. As of 30 June 2025, save for Yikuai Pharmaceutical, our business development team consisted of around 2,500 members, and we saw a further increase in staff efficiency of this team as compared to the same period of last year. Each member can manage approximately over 200 pharmacies on average, representing an increase of over 50 pharmacies as compared to the same period of last year. This development strategy is extremely effective. As of 30 June 2025, we covered 353,000 primary healthcare institution users, representing an increase of over 24,000 users as compared to the number of such users as of 31 December 2024. Moreover, our registered buyers covered 98.9% of counties and 91.2% of towns in China.

YSB INC. INTERIM REPORT 2025

Business Review and Outlook

PUBLIC WELFARE AND SOCIAL RESPONSIBILITY

We have always incorporated the concept of sustainable development into our corporate DNA, and been active in fulfilling corporate social responsibility and committed to creating long-term value for society. For giving back to society with concrete actions, we established Sudao Technology Welfare Association (迪道科技公益社團) to join hands with various departments in making continuous endeavours in various fields including educational welfare and social welfare.

In terms of educational welfare, we initiated a book donation activity where staff from all departments of the Company were invited to deliver warmth through Mutian Charity (幕天公益) by sending books to children from villages across the country. We participated in the public welfare project of "One Kilogram Box (一公斤盒子)" organised by Liepin to provide diverse teaching toolkits to the schools and students in need. We also made donations to the Green & Shine Foundation (桂馨基金會) on a quarterly basis to support the improvement of China's rural education environment, helping educational welfare and improving the educational conditions for rural teachers and students.

In terms of public welfare, we provided medical supplies including disinfectant supplies and heat-prevention medicines to flood-hit areas such as Sangzhi, Huaji, and Rongjiang, helping the local people affected by floods. We join hands with our partners to launch public welfare promotional activities to help farmers as our practical measures to contribute to rural revitalization. We also provide "Leyaoshi Huoxiang Zhengqi Kou Fu Ye" and refreshing drinks to social workers who work under high temperature to safeguard their health.

OUTLOOK

As a leader in the digital ecosystem construction of the outside-of-hospital pharmaceutical industry, we will navigate amidst the waves of digital transformation of outside-of-hospital pharmaceutical by virtue of our profound industry accumulation as well as our outstanding technological innovation capability. We will further deepen the synergistic cooperation with all participants in the industry chain, comprehensively improve the operational efficiency of all participants in the industry chain, and promote digital and intelligent upgrading in the outside-of-hospital pharmaceutical industry, with a view to making the pharmaceutical resources accessible to all and realising the sustainable development of the industry ecosystem.

In terms of Online Marketplace, we will shoulder the responsibility of promoting the development of the industry and fostering the growth of our partners, aiming to build a more comprehensive and efficient digital operation system for upstream sellers. We will empower third-party sellers from all aspects, from accurate market trend insights, efficient inventory management to customised marketing and promotional strategy development, to support them in achieving solid growth in a highly competitive market. In addition, we will continuously strive to optimise our product supply system, enrich product categories and introduce more quality and innovative pharmaceutical products and health services to meet user needs in a one-stop manner. In terms of TCM decoction pieces, a key sector for expansion, we will actively strengthen in-depth strategic cooperation with leading enterprises in production areas to jointly deliver authentic medicinal decoction pieces with ultimate cost-effective prices. With respect to quality control, we adhere to the principle of "authenticity + superiority over ordinary goods (保真+優於統貨)", and collaborate with third-party sellers to launch Jinfang standards, collectively creating a system of Jinfang graded products, and constructing a comprehensive product gradient.

INTERIM REPORT 2025 YSB INC.

Business Review and Outlook

In terms of General Self-operation Business, we are committed to further maximising the advantages of our smart supply chain management system, continuously optimising our warehousing network and logistics distribution system, in order to enhance overall operational efficiency and user experience. We will continue to strengthen collaboration with key leading pharmaceutical enterprises to enrich product matrix and enhance cooperation results. Meanwhile, we will gradually carry out the piloting of local self-operation models to create self-operation exclusive areas and half-day speedy delivery experience for local downstream users so as to continuously improve user satisfaction.

In terms of the Targeted Product Launch Business, we will establish a stronger upstream cooperation ecosystem through in-depth cooperation with upstream pharmaceutical enterprises and suppliers to create the distinctive advantages of the Targeted Product Launch Business for a win-win situation for all parties concerned. At the same time, we will also keep on expanding the product mix of our own brand and facilitating brand growth. We build a brand benchmark by focusing on market demand to create key single products under our Targeted Product Launch Business with high growth potential; promote scale sales of best-selling products by developing cost-effective best-selling products; and forge differentiated competitive edges by launching quality and high value-added exclusive products. We will progressively build a product matrix covering multiple categories and scenarios, thereby continuously expanding the footprint and influence of our own brands.

In terms of other businesses, taking technology investment as the core driving force, we will promote full release of the potential of digitalisation and AI technology application through the in-depth integration of advanced AI capabilities with YSB's SaaS product matrix, further optimising supply chain management, enhancing the operational efficiency of pharmacies and clinics, and promoting primary smart healthcare services, thereby creating a smarter, more efficient and user-friendly business ecosystem. Meanwhile, in order to accelerate the improvement in primary medical testing level, we will continue to upgrade "FutureClou" series diagnostic-aid devices according to actual primary healthcare needs. By constantly establishing the testing projects and device iterative feedback mechanism, we will optimise testing projects and device functions, and continue to enrich testing projects in different diagnosis and treatment scenarios.

In the longer term, we will maintain a strategic vision and prudent attitude to actively promote industry chain investments and merger and acquisition deployment in order to bring new momentum to the Company's long-term development, achieve strategic upgrading towards ecologisation and diversification, and build a comprehensive and synergistic pharmaceutical and healthcare industrial ecosystem.

YSB INC.
INTERIM REPORT 2025

Financial Highlights

	Six months ended 30 June		Change (%)
	2025	2024
	(in RMB thousands, except specified otherwise or percentages)
	(Unaudited)	(Unaudited)
Revenue	9,842,619	8,813,955	11.7
Gross profit	1,104,502	881,716	25.3
Gross profit margin	11.2%	10.0%	1.2 percentage points
Profit attributable to the owners of the Company	78,117	21,820	258.0
Non-IFRS: Adjusted Net Profit(1)	121,764	91,411	33.2
Earnings per share (RMB)	0.11	0.03	266.7

(1) The adjusted net profit (the "Adjusted Net Profit") represents profit for the period adding back (i) equity-settled share-based payment expenses, and (ii) acquisition-related expenses.

INTERIM REPORT 2025 YSB INC.

Management Discussion and Analysis

REVENUE

For the six months ended 30 June 2025, the Group recorded a revenue of RMB9,842.6 million, representing an increase of 11.7% as compared with RMB8,814.0 million for the six months ended 30 June 2024. The increase in revenue was mainly attributable to: (i) the continued steady development of the Self-operation Business during the Reporting Period; and (ii) our acquisition has injected new impetus into the Group’s revenue growth.

The Group’s revenue from the Self-operation Business increased by 12.5% from RMB8,344.8 million for the six months ended 30 June 2024 to RMB9,389.4 million for the six months ended 30 June 2025, primarily attributable to: (i) enlarged buyer base and the continuous optimization of buyers’ experience such as logistics and customer services; (ii) the number of MPB of our Self-operation Business recorded a continuous and stable increase as compared with the same period of last year; and (iii) our acquisition has injected new impetus into the Group’s revenue growth.

The Group’s revenue from the Online Marketplace decreased slightly from RMB440.5 million for the six months ended 30 June 2024 to RMB436.3 million for the six months ended 30 June 2025, primarily attributable to the downturn in the pharmaceutical retail market, which exerted a relatively significant impact on the industry and, accordingly, affected third-party sellers. During the Reporting Period, the commission rate applied to third-party sellers remained stable.

The Group’s revenue from the other businesses decreased from RMB28.6 million for the six months ended 30 June 2024 to RMB17.0 million for the six months ended 30 June 2025, mainly attributable to the adjustment of the operation/service model of ClouDiagnos.

COST OF SALES

The Group’s cost of sales increased by 10.2% from RMB7,932.2 million for the six months ended 30 June 2024 to RMB8,738.1 million for the six months ended 30 June 2025, primarily due to the increase in sales of our Self-operation Business.

The cost of sales of the Group’s Self-operation Business increased by 10.4% from RMB7,850.1 million for the six months ended 30 June 2024 to RMB8,666.4 million for the six months ended 30 June 2025. The increase of the cost of sales for the six months ended 30 June 2025 was primarily due to the growth of purchase demand from buyers, as a result of which we increased the procurement of pharmaceutical products accordingly.

The cost of sales of the Group’s Online Marketplace increased by 2.3% from RMB69.7 million for the six months ended 30 June 2024 to RMB71.3 million for the six months ended 30 June 2025, mainly due to the expansion of transaction volume on our platform.

The cost of sales of the Group’s other businesses decreased by 96.5% from RMB12.5 million for the six months ended 30 June 2024 to RMB0.4 million for the six months ended 30 June 2025, mainly due to the decrease in costs in relation to ClouDiagnos.

14 YSB INC. INTERIM REPORT 2025

Management Discussion and Analysis

GROSS PROFIT AND GROSS PROFIT MARGIN

As a result of the foregoing, the Group's gross profit increased significantly by 25.3% from RMB881.7 million for the six months ended 30 June 2024 to RMB1,104.5 million for the six months ended 30 June 2025. The Group's gross profit margin increased from 10.0% for the six months ended 30 June 2024 to 11.2% for the six months ended 30 June 2025, mainly due to the downstream demand for the Group's own-branded products has remained strong, and the scale of this high-gross-margin business has continued to expand, thereby continuously improving the Group's gross profit margin.

The gross profit margin for the Group's Self-operation Business increased from 5.9% for the six months ended 30 June 2024 to 7.7% for the six months ended 30 June 2025, which was primarily due to the implementation of the "Go Upstream" (向上走) strategy by gradually increasing the percentage of our own brand in our product pipeline, which has much higher gross margin than other products.

The gross profit margin for the Group's Online Marketplace decreased slightly from 84.2% for the six months ended 30 June 2024 to 83.7% for the six months ended 30 June 2025, which was primarily due to: (i) with the expansion of our Self-operation Business, our Online Marketplace generated increased commissions from our own stores on the platform, which were eliminated in consolidated reporting; and (ii) the transaction processing fees related to our own stores' transactions on the platform were recorded as cost of sales for this segment.

The gross profit margin for the Group's other businesses increased from 56.4% for the six months ended 30 June 2024 to 97.5% for the six months ended 30 June 2025, mainly due to the year-on-year growth of revenue of our SaaS solution, which has a higher gross profit margin, and the corresponding increase of its proportion of revenue.

SELLING AND MARKETING EXPENSES

The Group's selling and marketing expenses increased by 16.9% from RMB707.5 million for the six months ended 30 June 2024 to RMB826.9 million for the six months ended 30 June 2025, mainly due to: (i) our acquisition of Yikuai Pharmaceutical, which has led to an increase in overall expenses; and (ii) we continued to expand our business operations. Fulfillment expenses increased slightly by 6.6% from RMB155.7 million for the six months ended 30 June 2024 to RMB166.0 million for the six months ended 30 June 2025, among which logistics expenses increased from RMB117.4 million for the six months ended 30 June 2024 to RMB126.5 million for the six months ended 30 June 2025. Although the Group's selling and marketing expenses had increased during the Reporting Period, due to a greater revenue growth, the selling and marketing expenses as a percentage of the Group's revenue remained largely stable.

GENERAL AND ADMINISTRATIVE EXPENSES

The Group's general and administrative expenses increased by 12.0% from RMB169.7 million for the six months ended 30 June 2024 to RMB190.1 million for the six months ended 30 June 2025, mainly due to our acquisition of Yikuai Pharmaceutical, which has led to an increase in overall expenses. Although the Group's general and administrative expenses had increased during the Reporting Period, such expenses remained stable as a percentage of the Group's revenue.

RESEARCH AND DEVELOPMENT EXPENSES

The Group's research and development expenses increased by 6.3% from RMB45.7 million for the six months ended 30 June 2024 to RMB48.6 million for the six months ended 30 June 2025, primarily attributable to an increased employee headcount resulting from the acquisition of Yikuai Pharmaceutical, thereby increasing salaries and welfare benefits.

INTERIM REPORT 2025 YSB INC. 15

Management Discussion and Analysis

OTHER INCOME

The Group's other income decreased from RMB49.1 million for the six months ended 30 June 2024 to RMB36.7 million for the six months ended 30 June 2025. The decrease was primarily attributable to reductions in bank interest income due to the decline in the bank interest rate and government grants.

OTHER GAINS/LOSSES (NET)

The Group recorded net other gains of RMB9.6 million for the six months ended 30 June 2024 as compared to net other losses of RMB0.4 million for the six months ended 30 June 2025. This change was primarily due to the loss from fair value changes of financial assets at fair value through profit or loss.

FINANCE COSTS

The Group's finance costs increased slightly from RMB5.3 million for the six months ended 30 June 2024 to RMB6.1 million for the corresponding period in 2025 due to the increase in interest expense on discounted note receivables and lease liabilities.

PROFIT FOR THE PERIOD

As a result of the foregoing, the Group's profit for the period amounted to RMB74.0 million for the six months ended 30 June 2025, which is nearly six times as compared with RMB13.4 million for the six months ended 30 June 2024.

NON-IFRS MEASURE

In evaluating our business, we consider and use (i) Adjusted Net Profit; and (ii) Adjusted Net Profit margin as supplemental measures to review and assess our operating performance. The presentation of these non-IFRS financial measures is not intended to be considered in isolation or as substitutes for the financial information prepared and presented in accordance with IFRS. We define Adjusted Net Profit as profit for the period adding back (i) equity-settled share-based payment expenses; and (ii) acquisition-related expenses. We define Adjusted Net Profit margin as adjusted net profit divided by revenue. We present these non-IFRS financial measures because they are used by our management to evaluate our operating performance and formulate business plans. Accordingly, we believe that the use of these non-IFRS financial measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board. These non-IFRS financial measures are not defined under IFRS and are not presented in accordance with IFRS. These non-IFRS financial measures have limitations as an analytical tool. Further, these non-IFRS measures may differ from the non-IFRS information used by other companies, including peer companies, and therefore its comparability may be limited. These non-IFRS financial measures should not be considered in isolation or construed as alternatives to profit/loss or any other measure of performance. Investors are encouraged to review our historical non-IFRS financial measures in light of the most directly comparable IFRS measures, as shown below. The non-IFRS financial measures presented here may not be comparable to similarly titled measure presented by other companies. Other companies may calculate similarly titled measures differently, limiting the usefulness of such measures when analysing our data comparatively. We encourage you to review our financial information in its entirety and not rely on a single financial measure.

YSB INC.
INTERIM REPORT 2025

Management Discussion and Analysis

The Adjusted Net Profit, which is unaudited, represents profit for the period adding back (i) equity-settled share-based payment expenses; and (ii) acquisition-related expenses. The Adjusted Net Profit of the Group increased significantly from RMB91.4 million for the six months ended 30 June 2024 to RMB121.8 million for the six months ended 30 June 2025, representing a year-on-year growth of 33.2%.

The following table reconciles our Adjusted Net Profit from the most directly comparable financial measure calculated and presented in accordance with IFRS (profit for the period).

	Six months ended 30 June
	2025
(RMB'000)
(unaudited)	2024
(RMB'000)
(unaudited)
Profit for the period	73,998	13,354
Add back:
Equity-settled shared-based payment expenses	34,790	78,057
Acquisition-related expenses	12,976	–
Adjusted Net Profit, a non-IFRS measure	121,764	91,411
Adjusted Net Profit margin, a non-IFRS measure	1.2%	1.0%

Adjusted Net Profit is not a measure of performance under IFRS. The use of the Adjusted Net Profit has material limitations as an analytical tool, as it does not include all items that impact our loss for the relevant period.

LIQUIDITY AND SOURCE OF FUNDING AND BORROWING

The Group financed its operating and investing activities mainly through internally generated cash flows and proceeds from the Global Offering. Our cash and cash equivalents are represented by cash and bank balances and time deposits with original maturity of three months or less.

As of 30 June 2025, the Group’s cash and cash equivalents increased by 6.2% from RMB1,041.2 million as at 31 December 2024 to RMB1,105.9 million. The increase of cash and cash equivalents for the six months ended 30 June 2025 primarily resulted from a higher turnover efficiency of working capital.

INTERIM REPORT 2025 YSB INC. 17

Management Discussion and Analysis

The following table sets forth our cash flows for the periods indicated:

	Six months ended 30 June
	2025
(RMB'000)
(unaudited)	2024
(RMB'000)
(unaudited)
Net cash generated from operating activities	256,660	418,880
Net cash (used in)/generated from investing activities	(114,626)	299,301
Net cash used in financing activities	(76,557)	(60,476)
Net increase in cash and cash equivalents	65,477	657,705
Cash and cash equivalents at the beginning of the period	1,041,228	745,693
Effect of foreign exchange rate changes	(798)	1,469
Cash and cash equivalents at the end of the period	1,105,907	1,404,867

The Group adopts a prudent financial management approach for its cash management policy to ensure that the Group's liquidity structure, comprising assets, liabilities and other commitments, is able to always meet its capital requirements. Going forward, we believe our liquidity requirements will be satisfied by using funds from a combination of cash generated from operating activities, external borrowings, net proceeds from the Global Offering and other funds raised from the capital markets from time to time.

NET CASH GENERATED FROM OPERATING ACTIVITIES

For the six months ended 30 June 2025, net cash generated from operating activities was RMB256.7 million, mainly attributable to our profit before tax of RMB68.9 million for the period, as adjusted by (i) non-cash and non-operating items, which primarily comprised share-based payment expenses of RMB34.8 million, and (ii) changes in working capital, which was mainly due to the increase of RMB258.2 million in trade and other payables but offset by the increase in inventories of RMB199.2 million.

NET CASH USED IN INVESTING ACTIVITIES

For the six months ended 30 June 2025, net cash used in investing activities was RMB114.6 million. It was mainly due to the net outflow of RMB163.0 million in the placement of time deposits during the Reporting Period.

NET CASH USED IN FINANCING ACTIVITIES

For the six months ended 30 June 2025, net cash used in financing activities was RMB76.6 million, which was mainly attributable to (i) share repurchase; and (ii) dividends paid.

SIGNIFICANT INVESTMENTS

The Group did not make or hold any significant investments (including any investment in an investee company with a value of 5% or more of the Group's total assets as at 30 June 2025) during the six months ended 30 June 2025.

MATERIAL ACQUISITIONS AND DISPOSALS

The Group did not have any material acquisitions or disposals of subsidiaries, consolidated affiliated entities or associated companies during the six months ended 30 June 2025.

18 YSB INC. INTERIM REPORT 2025

Management Discussion and Analysis

PLEDGE OF ASSETS

As at 30 June 2025, the Group’s interest-bearing deposits of RMB1,544.0 million were used as pledge for the issuance of note payable.

FUTURE PLANS FOR MATERIAL INVESTMENTS AND CAPITAL ASSETS

The Group did not have detailed future plans for material investments or capital assets as at 30 June 2025.

GEARING RATIO

The Group’s gearing ratio is calculated as total interest-bearing borrowings divided by total equity. As of 30 June 2025, as the Group had interest-bearing bank borrowings advance from discounted notes, its gearing ratio was 4.3% (as of 31 December 2024: 0.9%).

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

As at the date of this interim report, there were no significant events that might affect our Group since the end of the Reporting Period.

EMPLOYEES AND REMUNERATION

As at 30 June 2025, the Group had 6,620 employees. The following table sets forth the total number of employees by function as at 30 June 2025:

Function	Number of employees
General and Administrative	948
Selling and Marketing	2,968
Operations	2,338
Research and Development	366
Total	6,620

The Group believes in the importance of attraction, recruitment and retention of quality employees in achieving the Group’s success. Employees’ remuneration is determined in accordance with prevailing industry practice and employees’ educational backgrounds, experience and performance. The remuneration policy and package of the Group’s employees are periodically reviewed.

The remuneration of the employees of the Group comprises competitive salaries, performance-based sales commissions, performance-based cash bonuses and certain other incentives. In accordance with applicable PRC regulations, the Group has made contributions to housing fund and various employee social security plans that are organised by applicable local municipal and provincial governments, including housing, pension, medical, maternity, work-related injury and unemployment benefit plans, at specified percentages of the salaries of our employees. Bonuses and sales commissions are generally discretionary and based in part on employee performance and in part on the overall performance of our business.

INTERIM REPORT 2025 YSB INC. 19

Management Discussion and Analysis

The Company also has adopted two share incentive plans, the 2019 Share Incentive Plan and the 2023 Share Incentive Plan to provide incentives for the Group's employees. Please refer to the section headed "Statutory and General Information — Share Incentive Plans" in Appendix IV to the Prospectus for further details of the share incentive plans.

The total remuneration cost incurred by the Group for the six months ended 30 June 2025 was RMB628.3 million, as compared to RMB545.1 million for the six months ended 30 June 2024. During the six months ended 30 June 2025, the Group did not experience any significant labour disputes or any difficulty in recruiting employees.

FOREIGN EXCHANGE EXPOSURE

During the six months ended 30 June 2025, the Group mainly operated in China and the majority of the transactions were settled in Renminbi ("RMB"), the Company's primary consolidated affiliated entities' functional currency. We are exposed to foreign exchange risk arising mainly from bank balances and financial assets at fair value through profit or loss denominated in foreign currency of certain entities of the Group. The Group currently does not have a foreign currency hedging policy in respect of foreign currency transactions, assets and liabilities. The Group will monitor its foreign currency exposure and foreign exchange risk management strategies closely and will consider hedging significant foreign currency exposure should the need arises to minimise its foreign exchange risk.

CONTINGENT LIABILITIES

The Group had no material contingent liabilities as at 30 June 2025.

YSB INC.
INTERIM REPORT 2025

Corporate Governance and Other Information

CORPORATE GOVERNANCE PRACTICES

The Company was incorporated in the Cayman Islands on 27 August 2018 as an exempted company with limited liability, and the Shares of the Company were listed on the Main Board of the Stock Exchange on the Listing Date.

The Board is committed to achieving high corporate governance standards. The Board believes that high corporate governance standards are essential in providing a framework for the Group to safeguard the interests of Shareholders and to enhance corporate value and accountability.

During the Reporting Period, the Company has adopted and complied with all applicable code provisions of the CG Code except for the deviation as set out below.

Code provision C.2.1 of the CG Code recommends, but does not require, that the roles of chairperson and chief executive to be separate and not to be performed by the same person. Our Company deviates from this provision as Mr. Buzhen Zhang performs both the roles of chairman of our Board and the chief executive officer of our Company. Mr. Zhang is the founder of the Company and a substantial shareholder, and has extensive experience in the business operations and management of our Group. Our Board believes that vesting the roles of both chairman and chief executive officer to Mr. Zhang has the benefit of ensuring consistent leadership within our Group and enables more effective and efficient overall strategic planning. This structure will enable our Company to make and implement decisions promptly and effectively. Our Board considers that the balance of power and authority will not be impaired due to this arrangement. In addition, all major decisions are made in consultation with members of our Board, including the relevant board committees, and our three independent non-executive Directors. Our Board will reassess the division of the roles of chairman and the chief executive officer from time-to-time, and may recommend dividing the two roles between different people in the future, taking into account the circumstances of our Group as a whole.

Code provision C.3.2 of the CG Code recommends, but does not require, that the functions reserved to the board and those delegated to management should be formalised. These arrangements should also be reviewed periodically to ensure that they remain appropriate to the issuer's needs. The Company did not review periodically the arrangement regarding the functions reserved to the Board and those delegated to management. However, when a matter arises that requires decision, the Board will determine whether it should be reserved for the Board or delegate to the management to deal with.

The Company will continue to regularly review and monitor its corporate governance practices to ensure compliance with the CG Code, and maintain a high standard of corporate governance practices of the Company.

COMPLIANCE WITH THE MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS

The Company has adopted the Model Code as its own securities dealing code to regulate all dealings by Directors and relevant employees of securities in the Company and other matters covered by the Model Code.

Specific enquiry has been made of all the Directors and they have confirmed that they have complied with the Model Code during the Reporting Period.

INTERIM REPORT 2025 YSB INC. 21

Corporate Governance and Other Information

AUDIT COMMITTEE AND REVIEW OF FINANCIAL STATEMENTS

The Company has established the Audit Committee, in compliance with Rule 3.21 of the Listing Rules and the CG Code (as amended from time to time), comprising of three members, being Ms. Rong Shao, Mr. Sam Hanhui Sun and Mr. Hongqiang Zhao, with Mr. Zhao (being the Company's independent non-executive Director with the appropriate professional qualifications) as chairman of the Audit Committee, among other things, to review and supervise the financial reporting process and internal controls system of our Group, review and approve connected transactions and provide advice and comments to the Board.

The Audit Committee has reviewed the unaudited interim results of the Group for the six months ended 30 June 2025 and this interim report, and has met with the independent Auditor, Deloitte Touche Tohmatsu. The Audit Committee has also discussed matters with respect to the accounting policies and practices adopted by the Company and internal control with senior management members of the Company. The condensed consolidated financial statements of the Group for the six months ended 30 June 2025 have been reviewed by the Auditor in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants.

OTHER BOARD COMMITTEES

In addition to the Audit Committee, the Company has also established a nomination committee, a remuneration committee and an environmental, social and corporate governance committee.

PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S LISTED SECURITIES

During the Reporting Period, the Company repurchased a total of 5,635,000 shares on the Stock Exchange at an aggregate consideration of HK$44,298,184.24. Details of the shares repurchased are as follows:

Month of repurchase	No. of shares aggregate repurchased	Price paid per share		Aggregate consideration (HKD)
		Highest (HKD)	Lowest (HKD)
May	5,175,000	8.36	6.98	39,702,308.24
June	460,000	10.34	9.55	4,595,876.00
Total	5,635,000			44,298,184.24

Save as disclosed above, neither the Company nor any of its subsidiaries or consolidated affiliated entities purchased, sold or redeemed any of the Company's securities listed on the Stock Exchange (including sale of treasury shares) (as defined under the Listing Rules) during the Reporting Period. 5,635,000 repurchased shares were cancelled on 4 July 2025. As at 30 June 2025, the Company did not hold any treasury shares.

YSB INC.
INTERIM REPORT 2025

Corporate Governance and Other Information

MATERIAL LITIGATION

The Company was not involved in any material litigation or arbitration during the six months ended 30 June 2025. The Directors are also not aware of any material litigation or claims that are pending or threatened against the Group during the Reporting Period and up to the date of this interim report.

INTERIM DIVIDEND

The Board does not recommend the distribution of an interim dividend for the six months ended 30 June 2025 (for the six months ended 30 June 2024: nil).

USE OF PROCEEDS

The Company's shares were listed on the Stock Exchange on 28 June 2023. The net proceeds raised from the Global Offering (as defined in the Prospectus) were approximately HK$242.2 million (including the additional proceeds received upon the partial exercise of the Over-allotment Option (as defined in the Prospectus)).

As of 30 June 2025, all of the net proceeds had been fully utilised in the manner consistent with that disclosed in the Prospectus under the section headed "Future Plans and Use of Proceeds" and the announcement of the Company dated 15 October 2024.

CHANGES IN DIRECTORS' INFORMATION

Changes in information of Directors which are required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules are set out below:

(1) Mr. Sam Hanhui Sun ceased to act as an independent director of Zhihu Inc. (知乎), a company listed on the Stock Exchange (stock code: 2390) and the New York Stock Exchange (stock symbol: ZH) since 27 May 2025.

(2) Ms. Rong Shao has been appointed as a member of the Nomination Committee with effect from 27 June 2025.

Saved as disclosed above, there is no other change in information of Directors required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules since the last published annual report.

CONTINUING DISCLOSURE OBLIGATION PURSUANT TO THE LISTING RULES

Save as disclosed in this interim report, the Company does not have any other disclosure obligations under Rules 13.20, 13.21 and 13.22 of the Listing Rules.

INTERIM REPORT 2025 YSB INC. 23

Corporate Governance and Other Information

DISCLOSURE OF INTERESTS

Directors' and Chief Executives' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or Any of Its Associated Corporations

As at 30 June 2025, the interests and short positions of the Directors and chief executive of the Company in the Shares, underlying Shares and debentures of the Company or its associated corporations within the meaning of Part XV of the SFO, which were required (a) to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which they were taken or deemed to have under such provisions of the SFO); or (b) to be entered in the register required to be kept by the Company pursuant to Section 352 of the SFO; or (c) as otherwise to be notified to the Company and the Stock Exchange pursuant to the Model Code were as follows:

Interest in the Company

Name of Director	Nature of interest	Number of ordinary shares	Approximate percentage of holding(1)	Long position/Short position
Mr. Buzhen Zhang(2)	Interest in a controlled corporation	125,316,184	18.37%	Long position
	Interest of spouse	5,400,000	0.79%	Long position
Mr. Fei Chen(3)	Beneficial owner	8,250,000	1.21%	Long position

Notes:

(1) The calculation is based on the total number of 681,999,595 Shares in issue as at 30 June 2025.

(2) Represents (i) 125,316,184 Shares held by MIYT Holdings Limited, a company controlled by MIYT Worldwide Limited, which in turn is wholly owned by a trust for the benefit of Mr. Buzhen Zhang, the Director; and (ii) 5,400,000 Shares underlying options granted under the 2019 Share Incentive Plan to Ms. Xiaoye Xu, the spouse of Mr. Zhang. Under the SFO, Mr. Zhang is deemed to be interested in the entire interests of MIYT Holdings Limited and Ms. Xu in our Company.

(3) Includes 5,300,000 Shares underlying options granted under the 2019 Share Incentive Plan to Mr. Chen pursuant to the exercise of options granted to Mr. Chen under the 2019 Share Incentive Plan.

Save as disclosed above, as at 30 June 2025, so far as was known to any Director or the chief executive of the Company, none of the Directors nor the chief executives of the Company had any interest or short position in the Shares, underlying Shares or debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) as recorded in the register required to be kept by the Company pursuant to Section 352 of the SFO, or as otherwise notified to the Company and the Stock Exchange pursuant to Model Code.

YSB INC.
INTERIM REPORT 2025

Corporate Governance and Other Information

SUBSTANTIAL SHAREHOLDERS' INTERESTS AND SHORT POSITIONS IN SHARES AND UNDERLYING SHARES

As at 30 June 2025, the persons other than the Directors and chief executives, whose interests had been disclosed in this interim report, had an interest or short position in the Shares and underlying Shares of the Company as recorded in the register required to be kept by the Company, pursuant to Section 336 of the SFO, were as follows:

Name of Shareholder	Capacity/Nature of interest	Number of ordinary shares	Approximate percentage of holding(1)	Long position/ Short position
MIYT Holdings Limited(2)	Beneficial owner	125,316,184	18.37%	Long position
MIYT Worldwide Limited(2)	Interest of a controlled corporation	125,316,184	18.37%	Long position
TMF (Cayman) Ltd.(2)	Interest of a controlled corporation	125,316,184	18.37%	Long position
Buzhen Zhang(2)(3)	Interest of a controlled corporation	125,316,184	18.37%	Long position
	Interest of spouse	5,400,000	0.79%	Long position
Million Surplus Developments Limited(4)	Beneficial owner	63,324,784	9.29%	Long position
Meta Group Limited(4)	Interest of a controlled corporation	63,324,784	9.29%	Long position
Sounda Hopson Technology Holdings Limited(4)	Interest of a controlled corporation	63,324,784	9.29%	Long position
Sounda Hopson Technology Investment Limited(4)	Interest of a controlled corporation	63,324,784	9.29%	Long position
Sounda Hopson Investment Holdings Limited(4)	Interest of a controlled corporation	63,324,784	9.29%	Long position
Sounda Properties Limited(4)	Beneficial owner	16,400,000	2.40%	Long position
	Interest of a controlled corporation	63,324,784	9.29%	Long position
Chu Mang Yee(4)	Interest of a controlled corporation	79,724,784	11.69%	Long position
Internet Fund V Pte Ltd.(5)	Nominee for another person	79,750,800	11.69%	Long position
Internet Fund Holding V. Ltd.(5)	Interest of a controlled corporation	79,750,800	11.69%	Long position
Tiger Global Private Investment Partners XI, L.P.(5)	Beneficial owner	79,750,800	11.69%	Long position
Tiger Global Management LLC(5)	Investment manager	79,750,800	11.69%	Long position

INTERIM REPORT 2025 YSB INC. 25

Corporate Governance and Other Information

Name of Shareholder	Capacity/Nature of interest	Number of ordinary shares	Approximate percentage of holding(1)	Long position/Short position
Tiger Global PIP Performance XI, L.P.(5)	Interest of a controlled corporation	79,750,800	11.69%	Long position
Charles P. Coleman III(5)	Interest of a controlled corporation	79,750,800	11.69%	Long position
Scott Shleifer(5)	Interest of a controlled corporation	79,750,800	11.69%	Long position
H Capital V, L.P.(6)	Beneficial owner	55,831,444	8.19%	Long position
H Capital V GP, L.P.(6)	Interest of a controlled corporation	55,831,444	8.19%	Long position
H Capital V GP, Ltd.(6)	Interest of a controlled corporation	55,831,444	8.19%	Long position
Xiaohong Chen(6)	Interest of a controlled corporation	55,831,444	8.19%	Long position
Shanghai Fosun Pharmaceutical Industrial Development Co., Ltd(7)	Beneficial owner	40,033,160	5.87%	Long position
Shanghai Fosun Pharmaceutical (Group) Co., Ltd.(7)	Interest of a controlled corporation	40,033,160	5.87%	Long position
Fosun International Limited(7)	Interest of a controlled corporation	40,033,160	5.87%	Long position
Shanghai Fosun High Technology (Group) Co., Ltd.(7)	Interest of a controlled corporation	40,033,160	5.87%	Long position
Fosun Holdings Limited(7)	Interest of a controlled corporation	40,033,160	5.87%	Long position
Fosun International Holdings Ltd.(7)	Interest of a controlled corporation	40,033,160	5.87%	Long position
Guo Guangchang(7)	Interest of a controlled corporation	40,033,160	5.87%	Long position

26 YSB INC. INTERIM REPORT 2025

Corporate Governance and Other Information

Notes:

(1) The calculation is based on the total number of 681,999,595 Shares in issue as at 30 June 2025.

(2) MIYT Holdings Limited is controlled by MIYT Worldwide Limited which in turn is the holding vehicle wholly owned by TMF (Cayman) Ltd., the trustee of a trust for the benefit of Mr. Buzhen Zhang, the Director. Accordingly, under Part XV of SFO, each of Mr. Buzhen Zhang, TMF (Cayman) Ltd. and MIYT Worldwide Limited is deemed to be interested in all of the Shares held by MIYT Holdings Limited.

(3) Ms. Xiaoye Xu, the spouse of Mr. Buzhen Zhang, is interested in the underlying options granted under the 2019 Share Incentive Plan of the Company. By virtue of Part XV of the SFO, Mr. Buzhen Zhang is deemed to be interested in the entire interest of Ms. Xiaoye Xu in our Company.

(4) Million Surplus Developments Limited is wholly owned by Meta Group Limited which is in turn controlled by Sounda Hopson Technology Holdings Limited and by Sounda Hopson Technology Investment Limited. Both Sounda Hopson Technology Holdings Limited and Sounda Hopson Technology Investment Limited are wholly owned by Sounda Hopson Investment Holdings Limited which in turn is wholly owned by Sounda Properties Limited. Sounda Properties Limited is controlled by Mr. Chu Mang Yee. Accordingly, under Part XV of SFO, each of Mr. Chu Mang Yee, Sounda Properties Limited, Sounda Hopson Investment Holdings Limited, Sounda Hopson Technology Holdings Limited, Sounda Hopson Technology Investment Limited and Meta Group Limited is deemed to be interested in all of the Shares held by Million Surplus Developments Limited and Mr. Chu Mang Yee is deemed to be interested in all of the Shares held by Sounda Properties Limited.

(5) Internet Fund V Pte. Ltd. is wholly owned by Internet Fund Holding V. Ltd., which is in turn controlled by Tiger Global Private Investment Partners XI, L.P., which general partner is Tiger Global PIP Performance XI, L.P. and is wholly owned by Tiger Global Management, LLC. Both Tiger Global PIP Performance XI, L.P. and Tiger Global Management, LLC are controlled by Mr. Charles P. Coleman III and Mr. Scott Shleifer. Accordingly, under Part XV of SFO, each of Mr. Charles P. Coleman III, Mr. Scott Shleifer, Tiger Global PIP Performance XI, L.P., Tiger Global Management, LLC, Tiger Global Private Investment Partners XI, L.P. and Internet Fund Holding V. Ltd. is deemed to be interested in all of the Shares held by Internet Fund V Pte Ltd.

(6) H Capital V GP, L.P. is the general partner of H Capital V, L.P. H Capital V GP, Ltd. is the general partner of H Capital V GP, L.P. and is controlled by Ms Xiaohong Chen. Accordingly, under Part XV of SFO, each of Ms Xiaohong Chen, H Capital V GP, Ltd. and H Capital V GP, L.P. is deemed to be interested in all of the Shares held by H Capital V, L.P.

(7) Shanghai Fosun Pharmaceutical Industrial Development Co., Ltd. is wholly owned by Shanghai Fosun Pharmaceutical (Group) Co., Ltd., which is owned as to 0.22% by Fosun International Limited and 35.84% by Shanghai Fosun High Technology (Group) Co., Ltd., which is in turn wholly owned by Fosun International Limited. Fosun International Limited is owned as to 73.30% by Fosun Holdings Limited and 0.01% by Mr. Guo Guangchang. Fosun Holdings Limited is in turn wholly owned by Fosun International Holdings Ltd. and which Mr. Guo Guangchang is holding as to 85.29%. Accordingly, under Part XV of SFO, each of Mr. Guo Guangchang, Fosun International Holdings Ltd., Fosun Holdings Limited, Fosun International Limited, Shanghai Fosun High Technology (Group) Co., Ltd., and Shanghai Fosun Pharmaceutical (Group) Co., Ltd. is deemed to be interested in all of the Shares held by Shanghai Fosun Pharmaceutical Industrial Development Co., Ltd.

Save as disclosed above, as at the date 30 June 2025 based on publicly available information, no other person (other than the Directors or chief executives of the Company) had an interest or short position in the Shares or underlying Shares of the Company which were required to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance, or which were required to be entered in the register required to be kept under section 336 of the Securities and Futures Ordinance.

INTERIM REPORT 2025 Y58 INC. 27

Corporate Governance and Other Information

SHARE INCENTIVE PLANS

Details of Share Incentive Plans of our Company

The Company had two share incentive plans in effect during the Reporting Period: (a) the 2019 Share Incentive Plan, which was adopted before our Listing and does not constitute a share scheme governed by Chapter 17 of the Listing Rules and under which we may not grant any new incentive units (or awards) after Listing; and (b) and the 2023 Share Incentive Plan (collectively, the "Plans"), which was adopted immediately prior to our Listing and constitutes a share scheme governed by Chapter 17 of the Listing Rules.

The following table summarises certain material terms of the Plans. For further information about the 2019 Share Incentive Plan, please see pages IV-15 to IV-16 of Appendix IV to the Prospectus. For further information about the 2023 Share Incentive Plan, please see pages IV-19 to IV-28 of Appendix IV to the Prospectus.

980,000 new Shares, representing approximately 0.14% of the weighted average of issued share capital (excluding treasury shares) of the Company, may be issued in respect of all options and awards granted during the Reporting Period to eligible participants pursuant to the 2019 Share Incentive Plan and the 2023 Share Incentive Plan.

Further details and relevant breakdowns of each of the Plans are set out below:

	2019 Share Incentive Plan	2023 Share Incentive Plan
Scheme mandate limit	47,772,984 Shares	63,235,005 new Shares; and subject to an annual limit of 2% of the total issued shares immediately upon Listing, for awards over existing Shares (which is automatically refreshed on 1 January of each year up to 2% of the total issued share number on 31 December of the previous year, and which may be adjusted by the Board from time to time).
Service provider sublimit	N/A	1,264,700 new Shares
Number of options and awards (to be satisfied by new Shares) available for grant under the scheme mandate and the service provider sublimit (if applicable) at the beginning and the end of the Reporting Period	No further grant of awards would be made under the 2019 Share Incentive Plan after Listing. As at 1 January 2025 and 30 June 2025, the aggregate number of underlying Shares pursuant to the outstanding options granted under the 2019 Share Incentive Plan were 30,542,724 and 30,118,312 Shares, respectively.	As at 1 January 2025, 48,208,655 Award Shares (to be satisfied by new Shares) were available for grant under the 2023 Share Incentive Plan.
During the Reporting Period, 980,000 Award Shares (to be satisfied by new Shares) had been granted and 559,923 Award Shares had lapsed pursuant to the 2023 Share Incentive Plan.
As at 30 June 2025, the total number of Award Shares (to be satisfied by new Shares) available for grant under the 2023 Share Incentive Plan was 47,788,578 Shares.
Number of Shares available for issue (i.e., new Shares) pursuant to awards granted and ungranted under the plan	30,118,312 Shares, representing 4.43% of the Company's total issued share number as at the date of the interim report, all of which represent awards already granted prior to Listing.	57,558,740 Shares, representing 8.46% of the Company's total issued share number as at the date of the interim report.

YSB INC.
INTERIM REPORT 2025

Corporate Governance and Other Information

Details of grants made under the Plans

The following table sets out details of grantees holding outstanding share options under the 2019 Share Incentive Plan during the Reporting Period; no grants of other awards were made under the 2019 Share Incentive Plan that ought to be disclosed in this interim report:

2019 Share Incentive Plan

Name or category of grantee(1)	Position / Relationship	Date of grant	Vesting period (from date of grant) and/or performance target(2)	Exercise price per Share(3)	Number of options outstanding as at beginning of Reporting Period	Details of movements during the Reporting Period						Number of Shares underlying the outstanding options as at end of Reporting Period	Closing price of our Shares immediately before the date of grant	Fair value of options on date of grant and the accounting standard and policy adopted(4)	Weighted average closing price of our Shares immediately before the exercise date
						Number of options granted during the Reporting Period	Number of options cancelled during the Reporting Period	Number of options based during the Reporting Period	Number of options laden by the Reporting Period	Number of options laden by the Reporting Period	Number of options laden by the Reporting Period
Directors, Chief Executive, Substantial Shareholders and Associates
Fei Chen	Director, Chief Financial Officer, Joint Company Secretary	5 May 2022	Two third of the outstanding options will be vested within 4 years, and one-third of the outstanding options will be vested upon the completion of the core projects	US$3.40	2,650,000	-	-	-	-	-	2,650,000	5,300,000	N/A	N/A	N/A
Xiaoye Xu(5)	Chief Operation Officer of Online Marketplace	1 October 2019 to 1 November 2021	4 years	US$3.525-1.00	2,400,000	-	-	-	-	-	2,400,000	4,800,000	N/A	N/A	N/A
Other Grantees
Employee participants in aggregate		1 July 2017 to 18 June 2023	4 years	US$3.14-1.00	10,171,362	-	78,956	-	133,250	9,959,156	19,918,312	N/A	N/A	HK$7.6935
Service provider participants (consultants) in aggregate		1 January 2023	4 years	Nil	50,000	-	-	-	-	50,000	100,000	N/A	N/A	N/A
Total					15,271,362	-	78,956	-	133,250	15,059,156	30,118,312

Notes:

(1) With respect to each award granted, upon each vesting date, the portion of the award that vests shall depend on the grantee meeting the vesting requirements, which are typically performance targets for a specified threshold in their performance evaluations during the one-year period prior to the vesting date, or upon successful completion of specified projects.

(2) The exercise period of these options commences from the vesting date of the relevant options and end on the tenth anniversary of the grant date thereof, subject to the terms of the 2019 Share Incentive Plan and the share option agreement signed by the grantee.

(3) No consideration was payable by grantees for these share options.

(4) Ms. Xu is the spouse (and therefore a close associate) of Mr. Buzhen Zhang, the Director. She is a former director of our Company.

Further details of the 2019 Share Incentive Plan are also set out in Note 16 to the condensed consolidated financial statements for the six months ended 30 June 2025.

INTERIM REPORT 2025 Y3B INC. 29

Corporate Governance and Other Information

2023 Share Incentive Plan

The following table sets out details of grantees holding outstanding Award Shares over new Shares under the 2023 Share Incentive Plan during the Reporting Period; no grants of other awards over new Shares were made under the 2023 Share Incentive Plan that ought to be disclosed in this interim report.

Name or category of grantee	Position/ Relationship	Date of grant	Vesting period (from date of grant)	Performance target	Outstanding as at beginning of Reporting Period	Granted during the Reporting Period	Vested during the Reporting Period	Cancelled during the Reporting Period	Lapsed during the Reporting Period	Outstanding as at the end of Reporting Period	Closing price of our Shares immediately before the date of grant	Fair value of Award Shares on date of grant and the accounting standard and policy adopted(1)	Weighted average closing price of our shares immediately before the vesting date
Xiaoye Xu(2)	Chief Operation Officer of Online Marketplace	6 November 2024	3 years	See Note 6	600,000	-	-	-	-	600,000	HK$7.35	HK$7.35	N/A
992 grantees	Employee participants	4 September 2023	2–4 years(3)	See Note 6	2,269,750	-	-	-	128,600	2,141,150	N/A	N/A	N/A
618 grantees	Employee participants	6 February 2024	1-4 years(3)	See Note 6	9,827,400	-	4,355,242	-	406,323	5,065,835	HK$6.00	HK$6.00	HK$5.91
1 grantee	Service provider participant	6 February 2024	2 years(3)	See Note 6	120,000	-	60,000	-	-	60,000	HK$6.00	HK$6.00	HK$5.91
35 grantees	Employee participants	6 November 2024	1-4 years(3)	See Note 6	1,228,000	-	-	-	25,000	1,203,000	HK$7.35	HK$7.35	N/A
10 grantees	Employee participants	3 April 2025	2-3 years(3)	See Note 6	0	980,000	-	-	-	980,000	HK$8.26	HK$8.26	N/A
Total					14,045,150	900,000	4,415,242	-	559,923	10,049,985

Notes:
(1) 627,900 Award Shares shall vest over two years equally on annual basis in arrears from the date of grant; and 3,190,100 Award Shares shall vest over four years equally on annual basis in arrears from the date of grant. No consideration was payable on the grant of these Award Shares.
(2) 1,462,500 Award Shares shall vest one year from the date of grant; 3,275,000 Award Shares shall vest over two years equally on annual basis in arrears from the date of grant; 5,655,000 Award Shares shall vest over three years equally on annual basis in arrears from the date of grant; and 40,000 Award Shares shall vest over four years equally on annual basis in arrears from the date of grant. No consideration was payable on the grant of these Award Shares.
(3) The 120,000 Award Shares shall vest over two years equally on annual basis in arrears from the date of grant. No consideration was payable on the grant of these Award Shares.
(4) 2,000 Award Shares shall vest one year from the date of grant; 444,000 Award Shares shall vest over two years from the date of grant equally on an annual basis in arrears; 600,000 Award Shares shall vest over three years from the date of grant equally on an annual basis in arrears; 30,000 Award Shares shall vest in two batches, with 50% to be vested on 26 March 2025 and 50% to be vested on 26 March 2026; 130,000 Award Shares shall vest in two batches, with 50% to be vested on 21 July 2025 and 50% to be vested on 21 July 2026; 12,000 Award Shares shall vest in three batches with one-third to be vested on 7 July 2025, one-third to be vested on 7 July 2026 and one-third to be vested on 7 July 2027; and 40,000 Award Shares shall vest in four batches, with 25% to be vested on 11 July 2025, 25% to be vested on 11 July 2026, 25% to be vested on 11 July 2027 and 25% to be vested on 11 July 2028.

30
YSB INC.
INTERIM REPORT 2025

Corporate Governance and Other Information

(5) 980,000 Award Shares shall vest between 3 April 2026 and 3 April 2028. The period between the grant date and the first vesting date is more than 12 months. No consideration was payable on the grant of these Award Shares.

(6) Each vesting of the award shares granted to the award grantees will be subject to the individual annual performance targets as stipulated in the respective grant letters entered into by each award grantee and the Company. These performance targets are set against certain benchmark in which the individual grantee achieves, including but not limited to annual sales target, and various project milestone achievements, etc. The vesting percentage of the Award Shares will be adjusted based on his/her annual performance evaluation at each vesting.

(7) The fair value of Award Shares was determined based on the market price of the Company's Shares at the grant date. For the relevant accounting standard and policy adopted, please see Note 17 to the condensed consolidated financial statements for the six months ended 30 June 2025.

(8) Ms. Xiaoye Xu is the spouse (and therefore a close associate) of Mr. Buzhen Zhang, the Director. She is a former director of our Company.

Details regarding grants to be satisfied by existing shares will be disclosed in the annual report ending 31 December 2025 according to the Listing Rules' requirements. Further details of the 2023 Share Incentive Plan are also set out in Note 16 to the condensed consolidated financial statements for the six months ended 30 June 2025.

INTERIM REPORT 2025 YSB INC. 31

Report on Review of Condensed Consolidated Financial Statements

TO THE BOARD OF DIRECTORS OF YSB INC.
(incorporated in Cayman Islands with limited liability)

INTRODUCTION

We have reviewed the condensed consolidated financial statements of YSB Inc. (the "Company") and its subsidiaries (collectively referred to as the "Group") set out on pages 33 to 57, which comprise the condensed consolidated statement of financial position as of 30 June 2025 and the related condensed consolidated statement of profit or loss and other comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the six-month period then ended, and notes to the condensed consolidated financial statements. The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of a report on interim financial information to be in compliance with the relevant provisions thereof and International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34") issued by the International Accounting Standards Board. The directors of the Company are responsible for the preparation and presentation of these condensed consolidated financial statements in accordance with IAS 34. Our responsibility is to express a conclusion on these condensed consolidated financial statements based on our review, and to report our conclusion solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.

SCOPE OF REVIEW

We conducted our review in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants. A review of these condensed consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

CONCLUSION

Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34.

Deloitte Touche Tohmatsu
Certified Public Accountants
Hong Kong
20 August 2025

YSB INC.
INTERIM REPORT 2025

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the six months ended 30 June 2025

	NOTES	Six months ended 30 June
		2025 RMB'000 (unaudited)	2024 RMB'000 (unaudited)
Revenue	4	9,842,619	8,813,955
Cost of sales		(8,738,117)	(7,932,239)
Gross profit		1,104,502	881,716
Other income	5	36,687	49,092
Other gains and losses	6	(384)	9,634
Impairment losses (recognised) reversed under expected credit loss model, net		(264)	436
Selling and marketing expenses		(826,937)	(707,545)
Research and development expenses		(48,566)	(45,678)
General and administrative expenses		(190,057)	(169,665)
Finance costs	7	(6,068)	(5,272)
Profit before tax		68,913	12,718
Income tax credit	8	5,085	636
Profit for the period	9	73,998	13,354
Other comprehensive expense for the period		-	-
Profit and total comprehensive income for the period		73,998	13,354
Profit (loss) and total comprehensive income (expense) for the period attributable to:
Owners of the Company		78,117	21,820
Non-controlling interests		(4,119)	(8,466)
		73,998	13,354
Earnings per share
Basic and diluted (RMB)	11	0.11	0.03

INTERIM REPORT 2025 YSB INC.

Condensed Consolidated Statement of Financial Position

As at 30 June 2025

| | NOTES | As at
30 June
2025
RMB'000
(unaudited) | As at
31 December
2024
RMB'000
(audited) |
| --- | --- | --- | --- |
| | | | |
| Non-current assets | | | |
| Property, plant and equipment, net | | 54,737 | 66,852 |
| Right-of-use assets | | 172,894 | 201,970 |
| Intangible assets | | 505,231 | 526,498 |
| Goodwill | | 273,290 | 273,290 |
| Deferred tax assets | | 4,910 | 4,066 |
| Time deposits | | 542,000 | 254,000 |
| | | 1,553,062 | 1,326,676 |
| Current assets | | | |
| Inventories | | 1,661,333 | 1,464,548 |
| Trade and other receivables | 12 | 551,518 | 582,657 |
| Financial assets at fair value through profit or loss ("FVTPL") | 13 | 721,488 | 695,949 |
| Time deposits | | 124,450 | 281,574 |
| Restricted bank deposits | | 1,057,506 | 1,134,621 |
| Bank balances and cash | | 1,105,907 | 1,009,082 |
| | | 5,222,202 | 5,168,431 |
| Current liabilities | | | |
| Trade and other payables | 14 | (3,962,753) | (3,739,673) |
| Contract liabilities | | (33,113) | (29,608) |
| Lease liabilities | | (77,846) | (82,271) |
| Bank borrowings | | (97,990) | (21,207) |
| Contingent consideration payables | | (41,609) | - |
| | | (4,213,311) | (3,872,759) |
| Net current assets | | 1,008,891 | 1,295,672 |
| Total assets less current liabilities | | 2,561,953 | 2,622,348 |

34 YSB INC. INTERIM REPORT 2025

As at 30 June 2025

Condensed Consolidated Statement of Financial Position

| | NOTE | As at
30 June
2025
RMB'000
(unaudited) | As at
31 December
2024
RMB'000
(audited) |
| --- | --- | --- | --- |
| Non-current liabilities | | | |
| Lease liabilities | | (106,554) | (130,036) |
| Deferred tax liabilities | | (110,736) | (114,977) |
| Contingent consideration payables | | (71,451) | (108,691) |
| | | (288,741) | (353,704) |
| Net assets | | 2,273,212 | 2,268,644 |
| Capital and reserves | | | |
| Share capital | 15 | 12 | 12 |
| Reserves | | 2,327,738 | 2,319,051 |
| Equity attributable to owners of the Company | | 2,327,750 | 2,319,063 |
| Non-controlling interests | | (54,538) | (50,419) |
| Total equity | | 2,273,212 | 2,268,644 |

INTERIM REPORT 2025 YSB INC.

Condensed Consolidated Statement of Changes in Equity

For the six months ended 30 June 2025

	Attributable to the owners of the Company								Non-controlling interests	Total
	Share capital RMB'000	Share premium RMB'000	Deferred consideration shares RMB'000	Capital reserves1 RMB'000 (Note)	Share-based payments reserves RMB'000	Treasury shares RMB'000	Accumulated losses RMB'000	Sub-total RMB'000
At 1 January 2024 (audited)	11	9,370,430	-	39,890	150,494	(4,829)	(7,636,234)	1,919,762	(36,224)	1,883,538
Profit (loss) and total comprehensive income (expense) for the period	-	-	-	-	-	-	21,820	21,820	(8,466)	13,354
Recognition of equity-settled share-based payments (Note 16)	-	-	-	-	78,057	-	-	78,057	-	78,057
Transfer forfeited equity-settled share-based payments to accumulated losses (Note 16)	-	-	-	-	(7,109)	-	7,109	-	-	-
Repurchase of shares (Note 15)	-	-	-	-	-	(2,210)	-	(2,210)	-	(2,210)
Exercise of share options (Note 16)	*	3,963	-	-	(1,548)	-	-	2,415	-	2,415
At 30 June 2024 (unaudited)	11	9,374,393	-	39,890	219,894	(7,039)	(7,607,305)	2,019,844	(44,690)	1,975,154
At 1 January 2025 (audited)	12	9,625,022	41,770	39,890	225,864	(7,274)	(7,606,221)	2,319,063	(50,419)	2,268,644
Profit (loss) and total comprehensive income (expense) for the period	-	-	-	-	-	-	78,117	78,117	(4,119)	73,998
Recognition of equity-settled share-based payments (Note 16)	-	-	-	-	34,790	-	-	34,790	-	34,790
Acquisition of subsidiaries (Note 15)	*	8,055	(8,055)	-	-	-	-	-	-	-
Dividends recognised as distribution (Note 10)	-	(50,786)	-	-	-	-	-	(50,786)	-	(50,786)
Repurchase of shares (Note 15)	-	-	-	-	-	(51,766)	-	(51,766)	-	(51,766)
Exercise of share options and vesting of RSUs2 (Note 16)	*	27,404	-	-	(30,614)	1,542	-	(1,668)	-	(1,668)
At 30 June 2025 (unaudited)	12	9,609,695	33,715	39,890	230,040	(57,498)	(7,528,104)	2,327,750	(54,538)	2,273,212

Amount is less than RMB1,000.
Capital reserves mainly represented deemed contribution from a shareholder arising from the waive of the amount of approximately RMB30,925,000 due from YSB Inc. (the "Company") and its subsidiaries (collectively referred to as the "Group").
RSU is defined as restricted share units.

YSB INC.

INTERIM REPORT 2025

Condensed Consolidated Statement of Cash Flows

For the six months ended 30 June 2025

	Six months ended 30 June
	2025
RMB'000
(unaudited)	2024
RMB'000
(unaudited)
Net cash generated from operating activities	256,660	418,880
INVESTING ACTIVITIES
Purchase of property, plant and equipment	(6,152)	(15,960)
Proceeds on disposal of property, plant and equipment	309	254
Purchase of intangible assets	-	(146)
Placement of time deposits	(363,450)	(579,854)
Withdrawal of time deposits	200,428	516,851
Purchase of financial assets at FVTPL	(6,381,601)	(5,125,781)
Proceeds from disposal of financial assets at FVTPL	6,361,977	5,238,785
Investment income received from financial assets at FVTPL	8,530	11,294
Bank interest income received	23,776	27,886
Net cash outflow on acquisition of subsidiaries	(35,558)	(1,553)
Placement of restricted bank deposits	(846,945)	(1,208,597)
Withdrawal of restricted bank deposits	924,060	1,436,122
Net cash (used in) generated from investing activities	(114,626)	299,301
FINANCING ACTIVITIES
Repayments of lease liabilities	(44,895)	(40,755)
New bank borrowings raised	98,491	31,282
Repayment of bank borrowings	(21,708)	(59,513)
Interest paid	(6,068)	(5,272)
Dividends paid	(50,786)	-
Repurchase of shares	(51,766)	(2,210)
Proceeds from exercise of share options	175	15,992
Net cash used in financing activities	(76,557)	(60,476)
Net increase in cash and cash equivalents	65,477	657,705
Cash and cash equivalents at the beginning of the period	1,041,228	745,693
Effect of foreign exchange rate changes	(798)	1,469
	1,105,907	1,404,867
Cash and cash equivalents at the end of the period, represented by Bank balances and cash	1,105,907	1,404,867

INTERIM REPORT 2025 YSB INC.

Notes to the Condensed Consolidated Financial Statements

For the six months ended 30 June 2025

1. GENERAL

The Company was incorporated as an exempted company in the Cayman Islands with limited liability on 27 August 2018 under the Company laws of the Cayman Islands. Its immediate holding company is MIYT Holdings Limited, a company incorporated in the British Virgin Islands (the "BVI"). The shares of the Company had been listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") on 28 June 2023 (the "Listing").

The addresses of the registered office and principal place of business of the Company are set out in the corporate information section of the interim report of the Company for the six months ended 30 June 2025.

The Company is an investment holding company. The Group mainly operates online platform that provide wholesale and retail of pharmaceutical and healthcare products and online marketplace services to the pharmaceutical and healthcare manufacturers. The Group's principal operations and geographic markets are in the People's Republic of China (the "PRC").

The condensed consolidated financial statements are presented in Renminbi ("RMB"), which is also the functional currency of the Company.

2. BASIS OF PREPARATION

The condensed consolidated financial statements of the Group have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34") issued by the International Accounting Standards Board (the "IASB") as well as the applicable disclosure requirements of the Rules Governing the Listing of Securities on the Stock Exchange.

3. ACCOUNTING POLICIES

The condensed consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments, which are measured at fair values, as appropriate.

Other than change in accounting policies resulting from application of amendments to IFRS Accounting Standards, the accounting policies and methods of computation used in the condensed consolidated financial statements for the six months ended 30 June 2025 are the same as those presented in the Group's annual consolidated financial statements for the year ended 31 December 2024.

YSB INC.
INTERIM REPORT 2025

Notes to the Condensed Consolidated Financial Statements
For the six months ended 30 June 2025

3. ACCOUNTING POLICIES (CONTINUED)

Application of amendments to IFRS Accounting Standards

In the current interim period, the Group has applied the following amendments to IFRS Accounting Standards issued by the IASB, for the first time, which are mandatorily effective for the Group’s annual period beginning on 1 January 2025 for the preparation of the Group’s condensed consolidated financial statements:

Amendments to IAS 21	Lack of Exchangeability

The application of the amendments to IFRS Accounting Standard in the current interim period has had no material impact on the Group’s financial positions and performance for the current and prior periods and/or on the disclosures set out in these condensed consolidated financial statements.

4. REVENUE AND SEGMENT INFORMATION

The Group mainly engaged in i) wholesales of pharmaceutical and healthcare products offline or online through its online platform; ii) retail of pharmaceutical and healthcare products through its retail shops; iii) operating online platform that enable the pharmaceutical distributors and vendors to sell their own pharmaceutical and healthcare products using the Group’s online platform; iv) providing SaaS solution to downstream pharmacies and primary healthcare institutions to streamline their inventory management; and v) providing system technologies and operational support services to primary healthcare institutions through a smart healthcare system integrated advanced point-of-care testing and monitoring devices, digital management system and smart AI doctors-aid system.

INTERIM REPORT 2025 YSB INC. 39

Notes to the Condensed Consolidated Financial Statements

For the six months ended 30 June 2025

4. REVENUE AND SEGMENT INFORMATION (CONTINUED)

(a) Disaggregation of revenue from contracts with customers

	six months ended 30 June
	2025
RMB'000
(unaudited)	2024
RMB'000
(unaudited)
Type of goods or services:
Self-operation business (Note i)	9,389,356	8,344,771
Online marketplace services (Note ii)	436,297	440,535
Others (Note iii)	16,966	28,649
Total	9,842,619	8,813,955
Timing of revenue recognition:
At a point in time	9,832,262	8,806,461
Over-time	10,357	7,494
Total	9,842,619	8,813,955

Notes:

(i) The Group sells pharmaceutical and healthcare products mainly to pharmacies and primary healthcare institutions.

(ii) The marketplace services revenue mainly represents the commission received by the Group from distributors and vendors using the Group’s online platform, which is recognised upon end customers’ acceptance and is charged based on a certain percentage of sales, net of discounts and return allowances made by the distributors and vendors through the Group’s online platform.

(iii) Others mainly includes

(1) The Group collects one-time usage fee and service fee for the inventory management related to the SaaS solution provided to the downstream pharmacies and primary healthcare institutions, which helps pharmacies and primary healthcare institutions to streamline their inventory management.

(2) The Group provides system technologies and operational support services to primary healthcare institutions through a smart healthcare system integrated advanced point-of-care testing and monitoring devices, digital management system and smart AI doctors-aid system.

40 YSB INC. INTERIM REPORT 2025

Notes to the Condensed Consolidated Financial Statements
For the six months ended 30 June 2025

4. REVENUE AND SEGMENT INFORMATION (CONTINUED)

(b) Segment information

For the purposes of resources allocation and performance assessment, the executive directors of the Company, being the chief operating decision maker, review the overall results and financial position of the Group as a whole.

Accordingly, only entity-wide disclosures and geographical information are presented.

(c) Geographic information

The Group principally operates in the PRC, which is also the place of domicile. The Group’s revenue is all derived from operations in the PRC and the Group’s non-current assets are all located in the PRC.

5. OTHER INCOME

	Six months ended 30 June
	2025
RMB'000
(unaudited)	2024
RMB'000
(unaudited)

Government grants (Note)	1,960	9,067
Bank interest income	23,776	27,886
Investment income from financial assets at FVTPL	8,530	11,294
Others	2,421	845
	36,687	49,092

Note: It represented cash received from grants by the local government to encourage the business operations in the PRC with no future obligations. Government grants are recognised in profit and loss when received.

6. OTHER GAINS AND LOSSES

	Six months ended 30 June
	2025
RMB'000
(unaudited)	2024
RMB'000
(unaudited)

Losses on disposal of property, plant and equipment	(1,036)	(2,058)
Donations	(96)	(856)
Gains from changes in fair value of financial assets at FVTPL	5,915	11,079
Net foreign exchange (losses) gains	(798)	1,469
Loss from changes in fair value of contingent consideration payables	(4,369)	–
	(384)	9,634

INTERIM REPORT 2025 YSB INC.

Notes to the Condensed Consolidated Financial Statements

For the six months ended 30 June 2025

7. FINANCE COSTS

	Six months ended 30 June
	2025
RMB'000
(unaudited)	2024
RMB'000
(unaudited)
Interest expense on lease liabilities	4,697	4,287
Interest expense on discounted note receivables	1,371	985
	6,068	5,272

8. INCOME TAX CREDIT

	Six months ended 30 June
	2025
RMB'000
(unaudited)	2024
RMB'000
(unaudited)
PRC Enterprise Income Tax (“EIT”):
Current tax	–	–
Deferred tax	5,085	636
	5,085	636

The Company was incorporated in the Cayman Islands as an exempted company with limited liability under the Companies Law of the Cayman Islands and is exempted from the Cayman Islands income tax.

No provision for Hong Kong Profits Tax has been made in the condensed consolidated financial statements as the Group had no assessable profit subject to Hong Kong Profits Tax for both periods.

Under the Law of the PRC on EIT (the “EIT Law”) and Implementation Regulation of the EIT Law, the PRC EIT rate of subsidiaries of the Group operating in the PRC was 25% for both periods.

42 YSB INC. INTERIM REPORT 2025

Notes to the Condensed Consolidated Financial Statements

For the six months ended 30 June 2025

9. PROFIT FOR THE PERIOD

	Six months ended 30 June
	2025
RMB'000
(unaudited)	2024
RMB'000
(unaudited)
Profit for the period has been arrived at after charging:
Cost of inventories recognised as an expense	8,663,978	7,845,731
Depreciation of property, plant and equipment	14,202	19,183
Depreciation of right-of-use assets	41,166	38,455
Amortisation of intangible assets	22,121	6,787
Write down for obsolete inventories	2,413	4,320
Auditor’s remuneration	930	880
Staff costs:
Directors’ emoluments	4,203	5,894
Other staff costs	624,074	539,255
Total staff costs	628,277	545,149

10. DIVIDENDS

During the six months ended 30 June 2025, a final dividend of RMB0.075 (equivalent to HK$0.081) per share in respect of the year ended 31 December 2024 (six months ended 30 June 2024: nil) was declared and paid to owners of the Company. The aggregate amount of the final dividend declared and paid in the interim period amounted to RMB50,786,000 (equivalent to HK$54,608,000) (six months ended 30 June 2024: nil).

The directors of the Company have determined that no dividend will be paid in respect of the interim period.

INTERIM REPORT 2025 YSB INC. 43

Notes to the Condensed Consolidated Financial Statements

For the six months ended 30 June 2025

11. EARNINGS PER SHARE

Six months ended 30 June
	2025
RMB'000
(unaudited)	2024
RMB'000
(unaudited)
Profit for the period attributable to the owners of
the Company for the purpose of calculating basic and
diluted earnings per share	78,117	21,820
Six months ended 30 June
	2025
No. of shares
(unaudited)	2024
No. of shares
(unaudited)
Weighted average number of ordinary shares for the purpose of
calculating basic earnings per share	681,901,859	640,367,822
Effect of dilutive potential ordinary shares:
Share options and RSUs	9,457,644	7,937,028
Weighted average number of ordinary shares for the purpose of
calculating diluted earnings per share	691,359,503	648,304,850
Basic and diluted earnings per share attributable to owners of
the Company (RMB per share)	0.11	0.03

44 YSB INC. INTERIM REPORT 2025

Notes to the Condensed Consolidated Financial Statements

For the six months ended 30 June 2025

12. TRADE AND OTHER RECEIVABLES

| | As at
30 June
2025
RMB'000
(unaudited) | As at
31 December
2024
RMB'000
(audited) |
| --- | --- | --- |
| Trade receivables | 83,407 | 34,952 |
| Less: allowance for credit losses | (921) | (794) |
| | 82,486 | 34,158 |
| Note receivables | 24,104 | 52,111 |
| Total trade and note receivables | 106,590 | 86,269 |
| Advance to suppliers | 242,264 | 287,698 |
| Deposits | 40,646 | 42,704 |
| Receivables in custodian (Note) | 40,138 | 74,760 |
| Interest receivables | 24,017 | 15,716 |
| Prepaid expense | 17,750 | 16,912 |
| Other tax recoverable | 4,293 | 1,911 |
| Other receivables | 75,820 | 56,687 |
| Total trade and other receivables | 551,518 | 582,657 |

Note: The amounts represented the payments received from online customers of Self-operation business which would deposit in escrow account and subsequently withdrawal by the Group upon the customers' acceptance of product delivery.

INTERIM REPORT 2025 YSB INC. 45

Notes to the Condensed Consolidated Financial Statements

For the six months ended 30 June 2025

12. TRADE AND OTHER RECEIVABLES (CONTINUED)

Trade receivables

The Group requires full payment in advance for its online product sales, certain offline product sales and retail sales. For other customers, the Group primarily allows a credit period from 15 to 30 days. Trade receivables are settled in accordance with the terms of the respective contracts. Aging analysis of trade receivables, net of allowance for credit losses, based on invoice date is as follows:

| | As at
30 June
2025
RMB'000
(unaudited) | As at
31 December
2024
RMB'000
(audited) |
| --- | --- | --- |
| Within 3 months | 74,563 | 26,856 |
| 3–6 months | 2,755 | 1,895 |
| 6–12 months | 1,798 | 3,125 |
| Over 12 months | 4,291 | 3,076 |
| | 83,407 | 34,952 |
| Less: allowance for credit losses | (921) | (794) |
| | 82,486 | 34,158 |

13. FINANCIAL ASSETS AT FVTPL

| | As at
30 June
2025
RMB'000
(unaudited) | As at
31 December
2024
RMB'000
(audited) |
| --- | --- | --- |
| Unlisted equity investment | 10,294 | 10,198 |
| Wealth management products (Note) | 419,004 | 390,216 |
| Notes and investment funds (Note) | 292,190 | 295,535 |
| | 721,488 | 695,949 |

Note: The return of wealth management products and notes and investment funds were determined by reference to the return of their underlying investments. The wealth management products and the notes can be redeemed any time at the Group's discretion and the investment funds can be redeemed any time at the Group's discretion or upon a fixed period of one year at the Group's request by giving a 60 business days notice.

Since the contractual cash flows of these financial assets do not represent solely the payments of principal and interest on the principal amount outstanding, the financial assets are measured at FVTPL. Details of the fair value measurement over the financial assets are disclosed in Note 18.

YSB INC.
INTERIM REPORT 2025

Notes to the Condensed Consolidated Financial Statements

For the six months ended 30 June 2025

14. TRADE AND OTHER PAYABLES

| | As at
30 June
2025
RMB'000
(unaudited) | As at
31 December
2024
RMB'000
(audited) |
| --- | --- | --- |
| Trade payables | 1,662,847 | 1,456,784 |
| Note payables | 1,754,477 | 1,702,051 |
| Salary and welfare payables | 138,755 | 155,931 |
| Other tax payables | 14,796 | 27,571 |
| Consideration payable on acquisition of subsidiaries | 7,163 | 42,721 |
| Other payables | 384,715 | 354,615 |
| | 3,962,753 | 3,739,673 |

Trade payables

The credit period of trade payables is ranging from 30 to 90 days. An aging analysis of the trade payables based on the invoice date at the end of the Reporting Period is as follows:

| | As at
30 June
2025
RMB'000
(unaudited) | As at
31 December
2024
RMB'000
(audited) |
| --- | --- | --- |
| 0–30 days | 1,166,875 | 1,050,288 |
| 31–90 days | 406,267 | 334,464 |
| Over 90 days | 89,705 | 72,032 |
| | 1,662,847 | 1,456,784 |

Note payables

All note payables issued by the Group are with a maturity period of less than six months.

INTERIM REPORT 2025 YSB INC. 47

Notes to the Condensed Consolidated Financial Statements

For the six months ended 30 June 2025

15. SHARE CAPITAL

	Number of shares	Share capital US$	Presented as RMB'000
Authorised:
At 30 June 2024 (unaudited),
31 December 2024 (audited) and
30 June 2025 (unaudited)	20,000,000,000	50,000
Issued and fully paid:
At 1 January 2024 (audited)	640,485,502	1,602	11
Exercise of share options (Note 16)	474,973	1	*
At 30 June 2024 (unaudited)	640,960,475	1,603	11
Issued in consideration for the acquisition of
the issued share capital of subsidiaries (Note)	31,678,555	79	1
Exercise of share options and vesting of
RSUs (Note 16)	3,126,971	8	*
At 31 December 2024 (audited)	675,766,001	1,690	12
Issued in consideration for the acquisition of
the issued share capital of subsidiaries (Note)	1,386,617	3	*
Exercise of share options and vesting of
RSUs (Note 16)	4,846,977	12	*
At 30 June 2025 (unaudited)	681,999,595	1,705	12

Amount is less than RMB1,000.

Note: During the year ended 31 December 2024, the Company allotted and issued 31,678,555 new shares for the business acquisition of Folding Space (Cayman) Ltd ("Folding Space") and its subsidiaries ("Yikuai Pharmaceutical"). As at 31 December 2024, 7,190,363 consideration shares amounted to approximately RMB41,770,000 was recognised at deferred consideration shares as equity instrument as the number of consideration shares to be issued are fixed.

During the six months ended 30 June 2025, the Company allotted and issued another 1,386,617 new shares for the abovesaid business acquisition and the remaining 5,803,746 shares amounted to approximately RMB33,715,000 was recognised at deferred consideration shares as equity instrument.

During the six months ended 30 June 2025, the Company purchased 7,945,000 (six months ended 30 June 2024: 300,000) of its own ordinary shares through the Stock Exchange with an aggregate consideration of approximately HK$58,921,000 (six months ended 30 June 2024: HK$2,429,000) paid.

As at 30 June 2025, the Company had outstanding treasury shares of 8,594,823 (31 December 2024: 608,956) shares. Except for the purchase above, none of the Company's subsidiaries purchased, sold or redeemed any of the Company's listed securities during the period. Subsequent to end of the reporting period, 5,635,000 repurchased shares were cancelled on 4 July 2025.

48 YSB INC. INTERIM REPORT 2025

Notes to the Condensed Consolidated Financial Statements
For the six months ended 30 June 2025

16. SHARE-BASED PAYMENT RESERVES

Equity-settled share option scheme of the Group

2017 Share Incentive Plan

Effective on 2 February 2017, Guangzhou Sudao Information Technology Co., Ltd. ("Guangzhou Sudao") adopted the "2017 Share Incentive Plan" pursuant to which the Group was authorised to grant share options, share appreciation rights and restricted share to employees and non-employees of Guangzhou Sudao. Share options were granted with an exercise price not less than the fair market value of the Guangzhou Sudao's ordinary shares at the date of grant, and have exercise terms of up to 10 years with vesting periods determined at the discretion of the board of directors of Guangzhou Sudao, and are subject to a continued service relationship. Effective on 1 January 2019, the Group terminated the 2017 Share Incentive Plan, meaning that, while no additional awards of share options, share appreciation rights, or restricted share were permitted thereunder, all outstanding awards continued to be governed by their existing terms.

2019 Share Incentive Plan

Effective on 27 February 2019, the Company adopted the "2019 Share Incentive Plan" pursuant to which the Company is authorised to grant share options, share appreciation rights and restricted share to employees and non-employees who provide services to the Company and its affiliates. Share options are to be granted with an exercise price not less than the fair market value of the Company's ordinary shares at the date of grant, and have exercise terms of up to 10 years with vesting periods determined at the discretion of the board of directors of the Company, and are subject generally to a continued service relationship.

Substitution of ordinary shares of Guangzhou Sudao to the Company's ordinary shares under 2017 Share incentive Plan

As part of the share exchange arrangement, Guangzhou Sudao would i) substitute 1 share of ordinary share of Guangzhou Sudao under the 2017 Share Incentive Plan and ii) assume on the same terms and conditions as the 2017 Share Incentive Plan, share appreciation rights, and restricted share under the 2019 Share Incentive Plan as defined and detailed below. The directors of the Company considered that the modification of terms of 2017 Share Incentive Plan have no material change in fair value of the share options at the date of modification.

Two share options can be converted into one ordinary share of the Company upon exercise. Following the Share Subdivision, each share option can be converted into two ordinary shares of the Company upon exercise.

INTERIM REPORT 2025 YSB INC. 49

Notes to the Condensed Consolidated Financial Statements

For the six months ended 30 June 2025

16. SHARE-BASED PAYMENT RESERVES (CONTINUED)

Equity-settled share option scheme of the Group (Continued)

Substitution of ordinary shares of Guangzhou Sudao to the Company's ordinary shares under 2017 Share incentive Plan (Continued)

The following table discloses movements of share options under 2017 Share Incentive Plan:

Options	Grant year	Vesting period	Expiry year	Exercise price US$	At 1 January 2024	Exercised during the period	At 30 June 2024	At 1 January 2025	Exercised during the period	At 30 June 2025
Directors and employees
Tranche 2017-7	2017	4 years	2027	0.30	1,104,755	(63,687)	1,041,068	985,883	(43,927)	941,956
Tranche 2017-7	2017	4 years	2027	0.30	84,424	(9,600)	74,824	70,824	(21,729)	49,095
Tranche 2018-1	2018	4 years	2028	0.30	169,286	-	169,286	169,286	-	169,286
Tranche 2018-2	2018	4 years	2028	0.30	555,982	-	555,982	555,982	-	555,982
Tranche 2018-12	2018	4 years	2028	1.05	653,759	-	653,759	653,759	-	653,759
					2,568,206	(73,287)	2,494,919	2,435,734	(65,656)	2,370,078
Exercisable at the end of the period					2,568,206		2,494,919	2,435,734		2,370,078
Weighted average exercise price (US$)					0.49	0.30	0.50	0.50	0.30	0.51

Except for the exercised options disclosed above, no other options were exercised, forfeited or expired during the period. As at 30 June 2025, the weighted average exercise price of exercisable share options was RMB3.63 (unaudited) (31 December 2024: RMB3.60 (audited)).

YSB INC.

INTERIM REPORT 2025

Notes to the Condensed Consolidated Financial Statements
For the six months ended 30 June 2025

16. SHARE-BASED PAYMENT RESERVES (CONTINUED)

Equity-settled share option scheme of the Group (Continued)

Substitution of ordinary shares of Guangzhou Sudao to the Company's ordinary shares under 2017 Share incentive Plan (Continued)

The following table discloses movements of share options under 2019 Share Incentive Plan:

Options	Grant year	Vesting period	Expiry year	Exercise price US$	At 1 January 2024	Forfeited during the period	Exercised during the period	At 30 June 2024	At 1 January 2025	Forfeited during the period	Exercised during the period	At 30 June 2025
Directors and employees
Tranche 2019-3	2019	4 years	2029	1.05	51,700	-	-	51,700	51,700	-	-	51,700
Tranche 2019-4	2019	4 years	2029	1.05	-	-	-	-	-	-	-	-
Tranche 2019-10	2019	4 years	2029	0.94	1,704,000	-	(7,000)	1,697,000	1,696,600	-	(4,900)	1,691,700
Tranche 2019-11	2019	4 years	2029	2.00	5,100	-	(5,100)	-	-	-	-	-
Tranche 2020-1	2020	4 years	2030	1.05	37,500	-	-	37,500	37,500	-	-	37,500
Tranche 2020-4	2020	4 years	2030	1.05	191,800	-	(2,000)	189,800	180,500	-	(3,500)	177,000
Tranche 2021-1	2021	4 years	2031	1.60	16	-	-	16	16	-	-	16
Tranche 2021-2	2021	4 years	2031	2.00	707,000	(12,125)	(1,900)	692,975	674,225	-	-	674,225
Tranche 2021-7	2021	4 years	2031	2.00	-	-	-	-	-	-	-	-
Tranche 2021-11	2021	4 years	2031	2.00	4,025,403	(101,500)	(18,800)	3,905,103	3,820,428	(35,250)	-	3,785,178
Tranche 2021-12	2021	4 years	2031	2.00	399,500	-	(125,000)	274,500	99,500	-	-	99,500
Tranche 2022-2	2022	4 years	2032	2.00	761,550	(104,250)	(2,900)	654,400	600,400	(17,000)	-	583,400
Tranche 2022-5-1	2022	4 years	2032	2.00	18,000	-	-	18,000	18,000	-	-	18,000
Tranche 2022-5-2	2022	4 years	2032	0.80	2,320,000	-	-	2,320,000	1,820,000	-	-	1,820,000
Tranche 2022-5-3	2022	Immediate After IPO (Note ii)	2032	0.80	1,330,000	-	-	1,330,000	830,000	-	-	830,000

Tranche 2022-7-1	2022	4 years	2032	2.00	555,000	(15,000)	-	540,000	530,000	(17,500)	-	512,500
Tranche 2023-1-1	2023	4 years	2033	2.00	200,000	-	-	200,000	200,000	-	-	200,000
Tranche 2023-1-1	2023	Immediate	2033	0.00	50,000	-	-	50,000	50,000	-	-	50,000
Tranche 2023-1-5	2023	4 years	2033	2.00	32,759	-	-	32,759	32,759	-	-	32,759
Tranche 2023-3-2	2023	4 years	2033	2.00	20,000	-	-	20,000	20,000	-	-	20,000
Tranche 2023-6-10	2023	4 years	2033	2.00	2,438,000	(172,250)	(1,500)	2,264,250	2,174,000	(63,500)	(4,900)	2,105,600
					14,847,328	(405,125)	(164,200)	14,278,003	12,835,628	(133,250)	(13,300)	12,689,078
Exercisable at the end of the period				6,110,828				7,757,878	7,947,378			9,652,703
Weighted average exercise price (US$)				1.56		2.00	1.94	1.54	1.58	2.00	1.36	1.58

INTERIM REPORT 2025 YSB INC. 51

Notes to the Condensed Consolidated Financial Statements

For the six months ended 30 June 2025

16. SHARE-BASED PAYMENT RESERVES (CONTINUED)

Equity-settled share option scheme of the Group (Continued)

Substitution of ordinary shares of Guangzhou Sudao to the Company's ordinary shares under 2017 Share incentive Plan (Continued)

Notes:

(i): For the options with vesting period of 4 years, one quarter of options become vested at the end of each year during the vesting period.

(ii): In May 2022, the Company granted 1,330,000 share options to Mr. Fei Chen, an executive director of the Company. These options are vested on the date when the Company's shares are listed on the Main Board of the Stock Exchange.

Except for the forfeited or exercised options disclosed above, no other options were exercised, forfeited or expired during the period. As at 30 June 2025, the weighted average exercise price of exercisable share options was RMB10.14 (unaudited) (31 December 2024: RMB10.20 (audited)).

During the interim period, the Group recognised the total expense of approximately RMB6,427,000 (unaudited) (six months ended 30 June 2024: RMB17,613,000 (unaudited)) in relation to share options granted by the Group.

Equity-settled award shares of the Group

2023 Share Incentive Plan

The 2023 Share Incentive Plan was first adopted by the Board on 12 June 2023 and took effect immediately upon the Listing. Since the Listing, the 2023 Share Incentive Plan is subject to Chapter 17 of the Listing Rules. Under the 2023 Share Incentive Plan, a maximum number of 63,235,005 ordinary shares of the Company can be issued to employee participants, related party participant and service provider participant. The RSUs have exercise terms of up to 10 years with vesting periods determined at the discretion of the board of directors of the Company, and are subject to performance targets and other condition on case by case basis.

YSB INC.
INTERIM REPORT 2025

Notes to the Condensed Consolidated Financial Statements
For the six months ended 30 June 2025

16. SHARE-BASED PAYMENT RESERVES (CONTINUED)

Equity-settled award shares of the Group (Continued)

2023 Share Incentive Plan (Continued)

The following table discloses movements of RSUs under 2023 Share Incentive Plan:

| RSUs | Grant year | Vesting period
(Note) | Expiry year | At 1 January 2024 | Granted during the period | Forfeited during the period | At 30 June 2024 | At 1 January 2025 | Granted during the period | Forfeited during the period | Exercised during the period | At 30 June 2025 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Employees | | | | | | | | | | | | |
| Tranche 2023-9-4 | 2023 | 2 years | 2033 | 610,900 | – | (44,800) | 566,100 | 253,300 | – | (17,225) | – | 236,075 |
| Tranche 2023-9-4 | 2023 | 4 years | 2033 | 3,108,100 | – | (163,500) | 2,944,600 | 2,016,450 | – | (111,375) | – | 1,905,075 |
| Tranche 2024-2-6 | 2024 | 1 years | 2034 | – | 1,462,500 | (50,000) | 1,412,500 | 1,302,400 | – | (31,240) | (1,271,160) | – |
| Tranche 2024-2-6 | 2024 | 2 years | 2034 | – | 3,795,000 | (65,000) | 3,730,000 | 3,510,000 | – | (185,500) | (1,692,000) | 1,632,500 |
| Tranche 2024-2-6 | 2024 | 3 years | 2034 | – | 5,655,000 | (60,000) | 5,595,000 | 5,495,000 | – | (189,583) | (1,642,082) | 3,663,335 |
| Tranche 2024-2-6 | 2024 | 4 years | 2034 | – | 40,000 | – | 40,000 | 40,000 | – | – | (10,000) | 30,000 |
| Tranche 2024-11-6 | 2024 | 1 year | 2034 | – | – | – | – | 7,000 | – | – | – | 7,000 |
| Tranche 2024-11-6 | 2024 | 2 years | 2034 | – | – | – | – | 754,000 | – | (25,000) | – | 729,000 |
| Tranche 2024-11-6 | 2024 | 3 years | 2034 | – | – | – | – | 1,212,000 | – | – | – | 1,212,000 |
| Tranche 2024-11-6 | 2024 | 4 years | 2034 | – | – | – | – | 40,000 | – | – | – | 40,000 |
| Tranche 2025-4-3 | 2025 | 2 years | 2035 | – | – | – | – | – | 20,000 | – | – | 20,000 |
| Tranche 2025-4-3 | 2025 | 3 years | 2035 | – | – | – | – | – | 960,000 | – | – | 960,000 |
| | | | | 3,719,000 | 10,952,500 | (383,300) | 14,288,200 | 14,630,150 | 980,000 | (559,923) | (4,615,242) | 10,434,985 |
| Exercisable at the end of the period | | | | – | | | – | – | | | | – |

Note: The RSUs generally vest ratably over an one – to four-year vesting period.

Except for the forfeited or exercised RSUs disclosed above, no other RSUs were vested, forfeited or expired during the period.

These fair values of RSUs were determined by the share price of the Company at grant date.

During the interim period, the Group recognised the total expense of approximately RMB28,363,000 (unaudited) (six months ended 30 June 2024: 60,444,000 (unaudited)) in relation to RSUs granted by the Group.

INTERIM REPORT 2025
YSB INC.

Notes to the Condensed Consolidated Financial Statements

For the six months ended 30 June 2025

17. CAPITAL COMMITMENTS

| | As at
30 June
2025
RMB'000
(unaudited) | As at
31 December
2024
RMB'000
(audited) |
| --- | --- | --- |
| Capital expenditure in respect of acquisition of property,
plant and equipment contracted for but not provided in the
condensed consolidated financial statements | 1,689 | 2,679 |

18. FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS

The board of directors of the Company has set up a treasury management team, which is headed up by the Chief Financial Officer of the Company, to determine the appropriate valuation techniques and inputs for fair value measurements.

In estimating the fair value, the Group uses market-observable data to the extent it is available. For instruments with significant unobservable inputs under Level 3, the Group engages third party qualified valuers to perform the valuation. The treasury management team works closely with the qualified external valuers to establish the appropriate valuation techniques and inputs to the model. The Chief Financial Officer reports the treasury management team’s findings to the board of directors of the Company semi-annually to explain the cause of fluctuations in the fair value.

The fair values of these financial assets and financial liabilities are determined (in particular, the valuation technique(s) and inputs used), as well as the level of the fair value hierarchy into which the fair value measurements are categorised (Levels 1 to 3) based on the degree to which the inputs to the fair value measurements is observable.

Level 1 fair value measurements are based on quoted prices (unadjusted) in active market for identical assets or liabilities that the Group can access at the measurement date;
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3 fair value measurements are those derived from valuation techniques that include the lowest level inputs for the asset or liability that are not based on observable market data (unobservable inputs).

54 YSB INC. INTERIM REPORT 2025

Notes to the Condensed Consolidated Financial Statements
For the six months ended 30 June 2025

18. FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (CONTINUED)

Fair values of the Group’s financial assets and financial liabilities that are measured at fair value on a recurring basis

Certain of the Group’s financial assets and financial liabilities are measured at fair value at the end of the reporting period. The following table gives information about how the fair values of these financial assets are determined (in particular, the valuation technique(s) and inputs used), as well as the level of the fair value hierarchy into which the fair value measurements are categorised (levels 1 to 3) based on the degree to which the inputs to the fair value measurements is observable.

| | As at
30 June
2025
RMB'000
(unaudited) | As at
31 December
2024
RMB'000
(audited) | Fair value
hierarchy | Valuation technique
and key input |
| --- | --- | --- | --- | --- |
| Financial assets
Financial assets at FVTPL
– Wealth management products,
notes and investment funds | 711,194 | 685,751 | Level 2 | Quoted value from banks and
financial institutions based on
expected return with reference
to underlying investments |
| – Unlisted equity investments | 10,294 | 10,198 | Level 3 | Back-solve method (Note i) |
| Financial liabilities
Contingent consideration for
a business combination
– Cash consideration payables | (55,177) | (53,608) | Level 3 | Discounted cash flow method was
used to capture the present
value of the expected future
economic benefits that will flow
out of the Group arising from
the contingent consideration,
based on an appropriate
discount rate (Note ii) (Note iii) |
| Contingent consideration for
a business combination
– Consideration shares | (57,883) | (55,083) | Level 3 | Quoted market price per each
ordinary share of the Company
is used to capture the value
of the expected shares to be
allotted and issued from the
contingent consideration
(Note iii) |

INTERIM REPORT 2025 YSB INC.

Notes to the Condensed Consolidated Financial Statements

For the six months ended 30 June 2025

18. FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (CONTINUED)

Fair values of the Group’s financial assets and financial liabilities that are measured at fair value on a recurring basis (Continued)

Notes:

(i) Key inputs included possibilities under different scenarios, such as qualified IPO, redemption, liquidation and other inputs, such as time to liquidation or redemption, risk-free interest rate, expected volatility value and dividend yield.

(ii) Key unobservable inputs included discount rate and probability-adjusted revenue and profits of Yikuai Pharmaceutical. No sensitivity analysis in relation to the discount rate has been presented as changes in fair values due to changes the discount rate are insignificant.

(iii) Key inputs included quoted market price of the share of the Company and probability-adjusted revenue and profits of Yikuai Pharmaceutical. As at 30 June 2025, it is estimated that with all other variables held constant, a decrease in the expected probability-adjusted revenue and gross profits for year 2025, 2026 and 2027 by 5% would decrease the carrying amount of the contingent consideration payables, including cash and shares consideration, by RMB95,607,000 (unaudited) (31 December 2024: RMB91,870,000 (audited)).

There were no transfer between Level 1 and 2 during both periods.

Reconciliation of Level 3 fair value measurements

	Financial assets at FVTPL RMB'000	Financial liabilities at FVTPL RMB'000
As at 1 January 2024 (audited)	–	–
– purchased	9,737	–
– changes in fair value	–	–
As at 30 June 2024 (unaudited)	9,737	–
As at 1 January 2025 (audited)	10,198	108,691
– changes in fair value	96	4,369
As at 30 June 2025 (unaudited)	10,294	113,060

Fair values of the Group’s financial assets and financial liabilities that are not measured at fair value on a recurring basis

The fair value of financial assets and financial liabilities is determined in accordance with generally accepted pricing model based on discounted cash flow analysis.

The management of the Group considers that the carrying amounts of financial assets and financial liabilities recorded at amortised cost in the condensed consolidated financial statements approximate to their fair values.

YSB INC.

INTERIM REPORT 2025

Notes to the Condensed Consolidated Financial Statements

For the six months ended 30 June 2025

19. RELATED PARTY TRANSACTIONS

Compensation of key management personnel

The remuneration of directors who are also the key management personnel during the six months ended 30 June 2025 and 2024 are set out in Note 9.

20. EVENT AFTER THE REPORTING PERIOD

There have been no material subsequent events identified subsequent to 30 June 2025.

INTERIM REPORT 2025 YSB INC. 57

Definitions

"Award Shares"
the Shares underlying an award granted under the 2023 Share Incentive Plan, which includes new Shares or existing Shares

"Board"
the board of Directors

"CG Code"
the Corporate Governance Code set out in Appendix C1 to the Listing Rules (as amended from time to time)

"China" or the "PRC"
the People's Republic of China, and for the purpose of this annual report only, except where the context requires otherwise, excluding Hong Kong, the Macau Special Administrative Region and Taiwan

"Companies Ordinance"
the Companies Ordinance (Chapter 622 of the Laws of Hong Kong), as amended, supplemented or otherwise modified from time to time

"Company", "our Company" or "the Company"
YSB Inc. (藥師幫股份有限公司) (formerly known as YSB Capital Limited), a limited liability company incorporated under the Laws of the Cayman Islands on 27 August 2018, the shares of which are listed on the Main Board of the Stock Exchange under the stock code "9885"

"Consolidated Affiliated Entity(ies)"
Guangzhou Sudao, Guangzhou Yaobang and their subsidiaries and affiliated entities, the financial accounts of which have been consolidated and accounted for as if they were subsidiaries of our Company by virtue of contractual arrangements

"Director(s)"
the director(s) of the Company

"Global Offering"
the Hong Kong Public Offering and the International Offering

"Group", "we", "us" or "our"
the Company and its subsidiaries and Consolidated Affiliated Entities from time to time, and where the context requires, in respect of the period prior to our Company becoming the holding company of its present subsidiaries, such subsidiaries as if they were subsidiaries of our Company at the relevant time

"Guangzhou Sudao"
Guangzhou Sudao Information Technology Co., Ltd. (廣州速道信息科技有限公司)

"Guangzhou Yaobang"
Guangzhou Yaobang Information Technology Co., Ltd. (廣州藥幫信息科技有限公司)

"HK$"
Hong Kong dollars, the lawful currency of Hong Kong

"Hong Kong" or "HK"
the Hong Kong Special Administrative Region of the PRC

"Hong Kong Public Offering"
has the meaning ascribed to it in the Prospectus

YSB INC.
INTERIM REPORT 2025

Definitions

"IFRS"
International Financial Reporting Standards, as issued from time to time by the International Accounting Standards Board

"International Offering"
has the meaning ascribed to it in the Prospectus

"Listing"
the listing of our shares on the Main Board of the Stock Exchange

"Listing Date"
28 June 2023, the date on which our shares were listed and on which dealings in our shares were first permitted to take place on the Stock Exchange

"Listing Rules"
the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

"Main Board"
the stock exchange (excluding the option market) operated by the Stock Exchange which is independent from and operates in parallel with Growth Enterprise Market of the Stock Exchange

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

"Mr. Zhang"
Mr. Zhang Buzhen (張步鎮), the founder, executive Director, Chairman of the Board and Chief Executive Officer of our Group

"Nomination Committee"
the nomination committee of the Company

"Prospectus"
the Company's prospectus dated 15 June 2023, a copy of which is available on the website of Hong Kong Exchanges and Clearing Limited at www.hkexnews.hk

"Remuneration Committee"
the remuneration committee of the Company

"Reporting Period"
the financial period for the six months ended 30 June 2025

"RMB" or "Renminbi"
Renminbi, the lawful currency of China

"SFO"
the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong), as amended, supplemented or otherwise modified from time to time

"Share(s)"
ordinary share(s) in the share capital of our Company with a par value of US$0.0000025 each

"Shareholder(s)"
holder(s) of the Share(s)

"Stock Exchange"
The Stock Exchange of Hong Kong Limited

INTERIM REPORT 2025

YSB INC.

Definitions

"subsidiary" or "subsidiaries"
has the meaning ascribed to it thereto in section 15 of the Companies Ordinance (Chapter 622 of the Laws of Hong Kong), and includes our consolidated affiliated entities and any other entity the financials of which are consolidated into the accounts of the Company

"substantial shareholder"
has the meaning ascribed to it in the Listing Rules

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

"United States" or "US"
the United States of America, its territories, its possessions and all areas subject to its jurisdiction

"2019 Share Incentive Plan"
the share incentive plan approved and adopted by our Company and effective since 1 January 2019 (as amended from time to time), the principal terms of which are set out in "Statutory and general information – Share Incentive Plans" in Appendix IV of the Prospectus

"2023 Share Incentive Plan"
the share incentive plan approved and adopted by our Company and effective upon Listing, which constitutes a share scheme under Chapter 17 of the Listing Rules, the principal terms of which are set out in "Statutory and general information – Share Incentive Plans" in Appendix IV of the Prospectus

"%"
per cent

YSB INC.
INTERIM REPORT 2025

AI assistant

YSB Inc. — Interim / Quarterly Report 2025

51153_rns_2025-09-25_0f647fba-8d87-4d70-b21a-a5f87e680bb4.pdf

藥師幫股份有限公司

YSB Inc.

CONTENTS

Corporate Information

BOARD OF DIRECTORS

Executive Directors

Non-Executive Director

Independent Non-Executive Directors

AUDIT COMMITTEE

REMUNERATION COMMITTEE

NOMINATION COMMITTEE

ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE COMMITTEE

JOINT COMPANY SECRETARIES

AUTHORIZED REPRESENTATIVES

AUDITOR

REGISTERED OFFICE

HEADQUARTERS

PRINCIPAL PLACE OF BUSINESS IN HONG KONG

LEGAL ADVISORS

COMPLIANCE ADVISOR

HONG KONG BRANCH SHARE REGISTRAR

PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE

PRINCIPAL BANKS

STOCK CODE

COMPANY WEBSITE

Business Review and Outlook

BUSINESS OUTLOOK AND REVIEW

ONLINE MARKETPLACE

Business Review and Outlook

GENERAL SELF-OPERATION BUSINESS

TARGETED PRODUCT LAUNCH BUSINESS

Business Review and Outlook

OTHER BUSINESSES

ClouMinihouse (光譜小屋)

Business Review and Outlook

Other SaaS solutions

YSB eLEARN

Business Review and Outlook

SUPPLY CHAIN MANAGEMENT

BUSINESS DEVELOPMENT

PUBLIC WELFARE AND SOCIAL RESPONSIBILITY

OUTLOOK

Business Review and Outlook

Management Discussion and Analysis

REVENUE

COST OF SALES

GROSS PROFIT AND GROSS PROFIT MARGIN

SELLING AND MARKETING EXPENSES

GENERAL AND ADMINISTRATIVE EXPENSES

RESEARCH AND DEVELOPMENT EXPENSES

Management Discussion and Analysis

OTHER INCOME

OTHER GAINS/LOSSES (NET)

FINANCE COSTS

PROFIT FOR THE PERIOD

NON-IFRS MEASURE

Management Discussion and Analysis

LIQUIDITY AND SOURCE OF FUNDING AND BORROWING

Management Discussion and Analysis

NET CASH GENERATED FROM OPERATING ACTIVITIES

NET CASH USED IN INVESTING ACTIVITIES

NET CASH USED IN FINANCING ACTIVITIES

SIGNIFICANT INVESTMENTS

MATERIAL ACQUISITIONS AND DISPOSALS

Management Discussion and Analysis

PLEDGE OF ASSETS

FUTURE PLANS FOR MATERIAL INVESTMENTS AND CAPITAL ASSETS

GEARING RATIO

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

EMPLOYEES AND REMUNERATION

Management Discussion and Analysis

FOREIGN EXCHANGE EXPOSURE

CONTINGENT LIABILITIES

Corporate Governance and Other Information

CORPORATE GOVERNANCE PRACTICES

COMPLIANCE WITH THE MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS

Corporate Governance and Other Information

YSB Inc. Interim / Quarterly Report 2025