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签师帮

YSB Inc.

藥師幫股份有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 9885)

INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2025

The board (the "Board") of directors (the "Directors") of YSB Inc. (the "Company", together with its subsidiaries and consolidated affiliated entities, the "Group") is pleased to announce the unaudited interim results of the Group for the six months ended 30 June 2025 (the "Reporting Period"). These interim results have been reviewed by the Company's audit committee (the "Audit Committee") and the Company's auditor, Deloitte Touche Tohmatsu (the "Auditor").

Unless otherwise defined herein, capitalised terms used in this announcement shall have the same meanings as those defined in the prospectus dated 15 June 2023 (the "Prospectus") of the Company.

HIGHLIGHTS

	Six months ended 30 June
	2025	2024	Change (%)
	(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.

CHAIRMAN'S STATEMENT

First of all, on behalf of the Board of YSB Inc., I would like to express my heartfelt gratitude to our shareholders, partners and all sectors of the community for their kind attention and tremendous support over the years.

In the first half of 2025, there were both opportunities and challenges in China's pharmaceutical and healthcare industry. On one hand, the Chinese government constantly enhanced the construction of primary healthcare system and protection of people's livelihoods, which not only promoted the accessibility of medical and healthcare services to all, but also strengthened the service capacity of primary healthcare institutions and encouraged innovation in commercial health insurance. With the in-depth implementation of the "Healthy China 2030 (健康中國2030)" strategy and the driving force from primary healthcare accessibility policies, the pharmaceutical industry is undergoing structural transformation. These policy directions are highly compatible with our core strategy of long-term commitment to primary care development and improving medicine accessibility, which provided ample room for our business expansion and further broadened the boundaries of the pharmaceutical and healthcare market. On the other hand, the pharmaceutical and healthcare industry experienced a slow growth stage as a result of the impact of cyclical economic downturns, adjustments in medical insurance policies and other factors. For all participants in the pharmaceutical and healthcare industry, the importance of enhancing quality and efficiency has become increasingly significant, undoubtedly imposing stricter requirements on us.

So far this year, YSB Inc. forged ahead in a challenging market environment and kept abreast of the trends of policies. Leveraging its industry-leading omni-channel layout strategy, it deepened core businesses and carried out business innovation and service upgrades along the upstream and downstream of the pharmaceutical industry chain. By deepening the collaboration with upstream and downstream partners, it reached a broader and more diverse user base, providing more convenient, efficient, professional and comprehensive digital solutions to downstream users. Through advancing user experience upgrades and promoting cost reduction and efficiency improvement in the industry, we continuously stimulated and released the potential of the industry chain with value co-creation and win-win collaboration. With our core strategy of "technology driven + ecosystem collaboration", we achieved breakthroughs in areas such as scale expansion, profit optimization, and technology implementation.

Consolidating our Leading Position in Online Marketplace and Self-operation Business, Continuously Exploring Business Growth Points

In the first half of 2025, leveraging user-oriented digital operational capabilities, we continued to gain insights into the demands of downstream users on our platform. By collaborating with third-party sellers on the Online Marketplace to enhance the diversity of products from the supply side, we have become the most preferred platform for third-party sellers partnership and downstream user procurement. Through continuous upgrades in our refined operational management system, we assisted third-party sellers in refining their operational strategies, achieving win-win growth.

Meanwhile, the supply side of the Online Marketplace has achieved product matrix diversity and quality improvement, precisely meeting the diverse demands of downstream buyers and driving continuous value enhancement of the platform. During the Reporting Period, the number of SKUs on the Online Marketplace continued to increase, and the downstream buyer base continued to expand. Significant achievements were also realised in category development, quality standardisation management, and market expansion of traditional Chinese medicine (“TCM”) decoction pieces on the Online Marketplace. During the Reporting Period, we were committed to strict quality control at the supply chain source and established the “Jinfang standards”, a new benchmark for TCM decoction piece delivery in the outside-of-hospital pharmaceutical market, driving continuous record-breaking growth in the number of downstream buyers for TCM decoction pieces, sufficient proof of the market’s high recognition and trust in our platform’s TCM decoction piece products.

During the Reporting Period, stronger supply chain management capabilities, a more efficient warehouse and logistics system as well as smarter digitalised operational models collectively formed a solid foundation for the development of our Self-operation Business. We have established close cooperation relationships with numerous renowned pharmaceutical brands and manufacturers, such as CR Sanjiu (華潤三九), Kenvue (China) (科赴中國) and Hengrui Pharmaceuticals (恒瑞醫藥), which not only guaranteed the stable and quality supply of pharmaceutical and healthcare products, but also allowed all parties to share growth in performance, achieving a multi-win situation. In terms of warehousing and logistics, we continuously optimised our fulfillment service capabilities. During the Reporting Period, the proportion of half-day delivery orders increased from 67.7% to 70.0% for the same period of last year. While ensuring continuous improvement in delivery efficiency, we further optimised logistics fulfillment costs. Through ongoing iteration of our intelligent operational system, we were able to perform real-time monitoring more accurately on inventory data, sales data and market dynamics, enabling more refined management and optimisation of each section, thereby enhancing operational efficiency and reducing operating costs.

The Targeted Product Launch Business has propelled our Self-operation Business to a new level of high-quality development. The series products under our own brands have formed a key driving force for our Targeted Product Launch Business. During the Reporting Period, the transaction amounts of the products under our own brands increased by approximately 473% year-on-year, achieving explosive growth. The breakthrough growth of this business has effectively enhanced the differentiated competitiveness and sustained profitability of YSB. As a business segment with high gross profit, the Targeted Product Launch Business’s accelerated growth continued to enhance the profitability of our Self-operation Business, thereby driving sustained growth across the entire operations. Meanwhile, the continued expansion of business scale of YSB will further amplify our brand influence among downstream buyer bases, driving greater recognition and acceptance of both our Targeted Product Launch Business and our own brand products among these downstream buyer bases. YSB will constantly strengthen its own brand channels, deeply explore the establishment and expansion of its own brands and enrich its product and service offerings. This will provide downstream buyers with products that have differentiated competitive advantages to meet their diverse and personalised needs, which will improve downstream buyers’ operational efficiency and profitability, and secure a leading position in the intensively competitive and ever-changing market, significantly boosting YSB’s expansion in market share. Leveraging rapid growth of our Targeted Product Launch Business, YSB is firmly completing the strategic upgrade from “scale expansion” to “profit enhancement”.

Building a New Ecosystem of Co-Prosperity between Commercial and Social Value with Digital Technology as the Engine

In the first half of 2025, we achieved deeper progress in our strategic layout for digital transformation and comprehensive empowerment of the outside-of-hospital pharmaceutical services sector. Capitalising the deep integration of artificial intelligence (AI) technology with point-of-care testing (POCT) and primary healthcare institution SaaS system, YSB is establishing a service close loop covering the entire chain of “testing – diagnosis – treatment – management”, empowering primary healthcare institutions to upgrade their treatment capabilities. We continued to focus on the needs of primary healthcare and made a strong debut in the POCT auxiliary diagnosis market. We launched several point-of-care testing equipments suitable for the usage scenarios of primary healthcare institutions and continued to create overall solutions for “ClouMinihouse (光譜小屋)” primary smart healthcare system. The overall solutions for “ClouMinihouse” primary smart healthcare system integrate “FutureClou (未來光譜)”, the point-of-care testing and monitoring devices, “Cloud Consultation (光譜雲診)”, a SaaS digital clinic management system, and “ClouWiseDoctor (光譜智醫)”, an AI doctors-aid system, fully empowering primary healthcare institutions and their doctors from hardware, software and intelligent assistance perspectives, enabling rapid screening and diagnosis of common and chronic diseases, greatly improving the efficiency and quality of primary healthcare services, facilitating the downward allocation of high-quality medical resources, and contributing to a more balanced and efficient distribution of medical resources.

We continued to deepen our efforts in public welfare and social responsibilities, actively exploring ESG practices to promote the high-quality development of the industry. Externally, we collaborated with manufacturing enterprises, relevant association, research institutes to jointly develop the “First-tier Electronic Data Exchange Standard (首營電子資料交換數據標準)” and jointly established the delivery standards for TCM decoction pieces, contributing wisdom and effort to advancing industry standardisation and digitisation. We made sustained investments in improving primary healthcare levels, educating primary pharmaceutical workers and supporting public welfare education, working hand-in-hand with various parties to fulfill social responsibilities with solid actions. Internally, we significantly reduced carbon emissions and resource consumption in our operations by optimising the pharmaceutical supply chain, promoting green packaging and adopting energy-saving technologies. At the same time, we further enhanced our employee care programmes and implemented diversity and inclusion policies, providing employees with more career development opportunities and training resources, ensuring their ample room for growth within the Company.

Looking ahead to 2025, in the context of China's accelerated efforts to build "Healthy China" and promote accessible healthcare, YSB will continue to strengthen and solidify the foundation of our existing Online Marketplace and Self-operation Business in the outside-of-hospital pharmaceutical industry. Meanwhile, we will persistently advance the widespread adoption and deep application of AI technology along the upstream and downstream of the pharmaceutical industry chain, striving to achieve a leap in service quality and fully empower our users, further unlocking potential growth drivers and expanding our development horizons. Leveraging our outstanding digital technologies and operational power, we will remain committed to delivering accessible, convenient and efficient healthcare service experiences to millions of third-party sellers, pharmacies and primary healthcare institutions.

Great achievements come with great aspirations. We would like to express our gratitude to our shareholders, partners, users, and various sectors of the community who have been accompanying the Company all the way with their long-term trust and support to YSB. It is your steadfast companionship and valuable suggestions that have enabled us to move forward in a challenging market environment.

Going forward, we will continue to uphold the mission of "To make quality medical care and good medicine accessible to all (讓好醫好藥普惠可及)", leveraging innovative technology to build new momentum for the high-quality development of the Company, creating greater value for shareholders and contributing more to society.

Buzhen Zhang
Chairman and Chief Executive Officer

20 August 2025

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.

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.

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%.

"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.

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.

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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.

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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.

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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.

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 (速道科技公益社團) 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.

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.

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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.

– 16 –

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.

17 -

18 -

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.

19 -

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.

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.

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	2024
	(RMB'000)	(RMB'000)
	(unaudited)	(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.

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

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

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22 -

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.

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 announcement, 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.

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.

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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.

CORPORATE GOVERNANCE

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.

Compliance with the Code on Corporate Governance Practices

Save as disclosed below, we have complied with the applicable code provisions set out in the Corporate Governance Code (the "CG Code") contained in Part 2 of Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") during the Reporting Period.

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 arise that requires decision, the Board will determine whether it should be reserved for the Board or delegate to the management to deal with.

Compliance with the Model Code for Securities Transactions by Directors

The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code") as set out in Appendix C3 to the Listing Rules 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.

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 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.

25 -

26 -

OTHER INFORMATION

2023 Share Incentive Plan

Pursuant to the rules of the 2023 Share Incentive Plan, the Company has entered into the trust arrangement with the trust institution (the “Trustee”) for the purposes of, among others, implementing and administering the 2023 Share Incentive Plan.

During the Reporting Period, the Trustee has purchased a total of 2,310,000 shares on the Stock Exchange.

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 had purchased, sold or redeemed any of the Company’s listed securities (including sale of treasury shares (as defined under the Listing Rules)) during the Reporting Period and up to the date of this announcement. 5,635,000 repurchased shares were cancelled on 4 July 2025.

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 announcement.

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).

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

– 27 –

28 -

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”) | | 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 | 13 | (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 |

29 -

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2025 – continued

| | 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 | 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 |

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2025

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 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.

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.

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.

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.

30 -

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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.

(a) Disaggregation of revenue from contracts with customers

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

(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.

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.

OTHER INCOME

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

OTHER GAINS AND LOSSES

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

33 -
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

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.

34 -

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.

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
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.

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 |

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 |

36 -

37 -

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.

14. EVENT AFTER THE REPORTING PERIOD

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

38 -

PUBLICATION OF THE INTERIM RESULTS ANNOUNCEMENT AND INTERIM REPORT

This interim results announcement is published on the websites of the Stock Exchange (www.hkexnews.hk) and the Company (www.ysbang.cn). The interim report for the six months ended 30 June 2025 will be published on the aforesaid websites of the Stock Exchange and the Company in due course.

By order of the Board
YSB Inc.
Mr. Buzhen Zhang
Chairman and executive Director

Hong Kong, 20 August 2025

As at the date of this announcement, the Board comprises Mr. Buzhen Zhang and Mr. Fei Chen as executive Directors, Mr. Ziyang Zhu as non-executive Director, and Ms. Rong Shao, Mr. Sam Hanhui Sun and Mr. Hongqiang Zhao as independent non-executive Directors.

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YSB Inc. — Interim / Quarterly Report 2025

51153_rns_2025-08-20_2641dba4-af3e-4152-9d31-ff4e58052f0f.pdf

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YSB Inc.

藥師幫股份有限公司

INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2025

CHAIRMAN'S STATEMENT

Consolidating our Leading Position in Online Marketplace and Self-operation Business, Continuously Exploring Business Growth Points

Building a New Ecosystem of Co-Prosperity between Commercial and Social Value with Digital Technology as the Engine

BUSINESS OUTLOOK AND REVIEW

Online Marketplace

General Self-Operation Business

Targeted Product Launch Business

Other Businesses

ClouMinihouse (光譜小屋)

SUPPLY CHAIN MANAGEMENT

BUSINESS DEVELOPMENT

PUBLIC WELFARE AND SOCIAL RESPONSIBILITY

OUTLOOK

Revenue

Cost of sales

Gross profit and gross profit margin

Selling and marketing expenses

General and administrative expenses

Research and development expenses

Other income

Other gains/losses (net)

Finance costs

Profit for the period

Non-IFRS Measure

Liquidity and source of funding and borrowing

Net cash generated from operating activities

Net cash used in investing activities

Net cash used in financing activities

Significant Investments

Material acquisitions and disposals

Pledge of assets

Future plans for material investments and capital assets

Gearing ratio

Significant events after the Reporting Period

Employees and Remuneration

Foreign exchange exposure

Contingent liabilities

CORPORATE GOVERNANCE

Compliance with the Code on Corporate Governance Practices

Compliance with the Model Code for Securities Transactions by Directors

Audit Committee and Review of Financial Statements

OTHER INFORMATION

2023 Share Incentive Plan

Purchase, sale or redemption of the Company’s listed securities

Material litigation

Interim dividend

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

4. REVENUE AND SEGMENT INFORMATION

(a) Disaggregation of revenue from contracts with customers

9. PROFIT FOR THE PERIOD

10. DIVIDENDS

11. EARNINGS PER SHARE

Trade payables

Note payables

14. EVENT AFTER THE REPORTING PERIOD

PUBLICATION OF THE INTERIM RESULTS ANNOUNCEMENT AND INTERIM REPORT

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YSB Inc. Interim / Quarterly Report 2025