Financial Performance - The company reported a shareholder loss of approximately $66,050,000 for 2019, primarily due to impairment losses of $26,000,000 and amortization expenses of $28,050,000 related to the intangible asset FortacinTM [3]. - Shareholder equity decreased by approximately 50.64% to about $62,500,000 compared to December 31, 2018, mainly due to the combined impairment and amortization expenses totaling approximately $54,050,000 [3]. - The company reported a loss attributable to shareholders of approximately $66,050,000, primarily due to impairment losses of $26,000,000 and amortization expenses of $28,050,000 related to the intangible asset FortacinTM [13]. - The company recorded a loss attributable to shareholders of approximately $66,050,000 for 2019, compared to a loss of approximately $31,090,000 in 2018 [68]. - The company’s segment recorded a loss of approximately $310,000 in 2019, a significant decline from a profit of approximately $2,840,000 in 2018 [69]. - The company reported a significant decrease in milestone and patent licensing revenue from approximately $6.24 million in 2018 to about $0.16 million in 2019, a decline of 97.44% [70]. - The company recorded a total revenue loss of $313,000 in 2019, compared to a revenue of $2,843,000 in 2018, marking a significant decline [88]. - The operating loss for 2019 was $64,114,000, an increase from $33,971,000 in 2018 [88]. - The net loss attributable to shareholders for 2019 was $66,048,000, compared to $31,087,000 in 2018 [89]. - The company's total assets decreased to $86,281,000 in 2019 from $144,762,000 in 2018 [89]. Product Development and Commercialization - FortacinTM was launched in the UK in February 2019, with plans for a rollout in Romania in 2020, subject to the COVID-19 pandemic and the transition from prescription to over-the-counter status [4]. - The company aims to complete the second phase of FDA validation for FortacinTM by the end of 2020, with a new drug application submission targeted for the first quarter of 2023 [4]. - The company continues to seek commercialization of FortacinTM in major markets including the U.S., China, Asia, Latin America, and the Middle East following its launch in Europe and the UK [40]. - FortacinTM has been relaunched in key European markets, but user numbers are significantly below expectations due to patients' reluctance to seek medical advice for premature ejaculation [17]. - Recordati is considering reclassifying FortacinTM from a prescription drug to an over-the-counter drug to address low sales, with a decision expected by the end of July 2020 [19]. - The company is committed to ongoing discussions with potential commercial partners to advance FortacinTM's market presence [26]. - The company has received commercialization rights for FortacinTM in Hong Kong and Macau, with potential approvals in other Asian regions expected in the coming months or years [6]. - The company expects to receive up to €33,000,000 (approximately $37,060,000) in further payments under a licensing agreement with Recordati upon reaching certain milestones related to European sales [14]. - FortacinTM's second phase validation study in the U.S. is ongoing and expected to complete by the end of 2020, with a potential third phase starting in H2 2021 and a new drug application submission in H1 2022 [22][30]. - The company is facing potential regulatory challenges and costs due to the UK's exit from the EU, which may impact its operations and financial performance [51]. Strategic Investments and Financial Management - The company continues to seek strategic and value-driven investments in the healthcare and life sciences sectors, particularly in the cannabis industry [7]. - The company successfully completed a financing round of $6,450,000 through convertible notes, despite initial expectations for a larger capital raise [8]. - The company is actively monitoring its strategic investment in Venturex Resources Limited, which accounted for approximately 8.44% of the company's equity as of December 31, 2019 [9]. - A settlement of $9,500,000 AUD (approximately $6,670,000) was reached with the Australian Taxation Office, significantly lower than the potential total liability [9]. - The company plans to sell non-core assets and investments to seek growth opportunities in the life sciences sector [76]. - The company is focused on acquiring revenue-generating assets in the healthcare and life sciences sectors to diversify its business [117]. - The company plans to divest its non-core assets in the healthcare and life sciences sectors to focus on its new strategies in these areas [129]. Regulatory and Market Risks - The global economic growth forecast for 2020 is 2.5%, with significant risks due to the COVID-19 pandemic, potentially leading to a recession [25]. - The company anticipates that the stock market will continue to experience significant volatility, impacting its share price regardless of business performance [24]. - The company is exposed to price volatility in gold, copper, zinc, and coal, which may significantly impact the value of its non-core assets [130]. - The company faces significant risks related to regulatory approvals, which may lead to delays or inability to launch products in various regions [152]. - The company's operations are heavily reliant on market perception, and negative reports regarding product safety could have a substantial negative impact on performance [154]. - The company must manage potential product liability risks, including adverse reactions during clinical trials, which could affect its ability to market products [155]. - The company faces various international risks, including unpredictable regulatory changes and trade barriers, which could affect its financial stability [157]. - The outbreak of the 2019 coronavirus is expected to negatively impact the commercialization efforts of FortacinTM in China, affecting cash flow, net sales, and profitability [161]. - The company faces risks related to Brexit, as the UK will become a third-party country to the EU, potentially complicating the release of pharmaceutical products in the EU [162]. Governance and Shareholder Matters - The company has established a corporate governance framework ensuring that all directors act in the best interests of the company and disclose any potential conflicts of interest [188]. - The board consists of three independent non-executive directors, David Comba, Julie Oates, and Mark Searle, representing over one-third of the board [191]. - The company has established various committees, including the Audit Committee, Remuneration Committee, and Technical Committee, to oversee governance and compliance [197]. - The board has the authority to appoint new directors as needed, with any appointed directors required to retire at the next annual general meeting [189]. - The company has not recommended any final dividend for the year ended December 31, 2019, consistent with the previous year [85]. - The company plans to adopt a semi-annual dividend policy, with total annual dividends not exceeding 35% of projected consolidated annual profits [86]. - The company believes that only profits and share premiums are available for distribution to shareholders [176]. - The company’s ability to pay dividends is subject to its financial condition and future economic outlook, as well as legal and contractual restrictions [87].

Financial Performance - The company reported a loss attributable to shareholders of $23.3 million, primarily due to amortization expenses of approximately $13.91 million related to intangible assets and a settlement amount of AUD 9.5 million (approximately $6.67 million) with the Australian Taxation Office[2]. - Shareholders' equity decreased to $103.19 million, a reduction of approximately 18.50% compared to December 31, 2018, mainly due to the loss attributable to shareholders[2]. - Total revenue for the six months ended June 30, 2019, was $955,000, compared to $2,063,000 for the same period in 2018, representing a decrease of approximately 53.7%[9]. - The company reported a net loss of $23,305,000 for the six months ended June 30, 2019, compared to a net loss of $14,296,000 for the same period in 2018, indicating an increase in losses of approximately 63.5%[9]. - The company's total comprehensive income for the period was $(23,424,000), compared to $(14,077,000) for the same period in 2018, representing an increase in comprehensive losses of approximately 66.5%[13]. - The company reported a pre-tax loss of $18,027,000, compared to a loss of $15,687,000 for the same period in 2018, representing an increase in loss of approximately 8.6%[24]. - The company reported a significant increase in professional and consulting fees, which rose to $671,000 in the first half of 2019 from $488,000 in the same period of 2018, an increase of approximately 37.5%[9]. Assets and Liabilities - The company's total assets decreased to $115,510,000 as of June 30, 2019, down from $140,275,000 as of December 31, 2018, a decline of approximately 17.6%[17]. - The net asset value per share decreased to $5.62 as of June 30, 2019, compared to $6.89 as of December 31, 2018, reflecting a decrease of approximately 18.4%[17]. - The company’s total liabilities increased to $(16,493,000) as of June 30, 2019, compared to $(4,487,000) as of December 31, 2018, indicating a significant increase in liabilities[17]. - The company's financial statements have been prepared on a going concern basis, indicating confidence in its ability to continue operations despite current losses[26]. Cash Flow and Liquidity - The net cash used in operating activities was $(4,488,000), a significant decline from a net cash inflow of $757,000 in the prior year, indicating a negative shift in operational cash flow[24]. - The company generated net cash from investing activities of $710,000, a recovery from a net cash outflow of $(67,000) in the previous year, reflecting improved investment performance[24]. - The company has assessed its future liquidity and cash flow, considering a potential issuance of convertible notes amounting to $6,450,000 by August 31, 2019, to support ongoing operations[26]. - The company’s cash and cash equivalents at the end of the period stood at $1,529,000, down from $3,091,000 at the end of June 30, 2018, indicating a year-over-year decline of approximately 50.6%[24]. Research and Development - Research and development expenses increased significantly to $1,689,000 in the first half of 2019, up from $642,000 in the same period of 2018, reflecting a rise of approximately 163.5%[9]. - Progress is being made in the approval process for FortacinTM with the U.S. FDA, with the second phase of validation studies ongoing and expected to be completed by the end of 2019[2]. - The company is expected to submit a new drug application for FortacinTM in the second half of 2020, pending the completion of the third phase of the U.S. FDA approval process[155]. Strategic Initiatives - The company has successfully launched FortacinTM in the UK and plans to introduce it in Romania and Greece later in 2019, with further expansion into other countries in the coming years[2]. - Discussions regarding the potential acquisition of Yooya have been terminated, leading to a focus on opportunities in the cannabis industry in China[5]. - The company is exploring potential investments and acquisition opportunities in the Chinese cannabis industry, particularly focusing on CBD-infused products[139]. Share Capital and Financing - The company issued convertible bonds with a principal amount of $17,500,000, bearing a 4% interest rate, maturing in 2022[3]. - The company plans to issue up to 719,435,294 new shares upon full conversion of the convertible bonds, subject to independent shareholder approval[4]. - The company has successfully completed the issuance of convertible notes amounting to $6.45 million (approximately HKD 50.31 million) under two conditional subscription agreements[135]. Compliance and Reporting Standards - The company adopted new Hong Kong Financial Reporting Standards (HKFRS) effective January 1, 2019, including HKFRS 16 on leases, which may impact future financial reporting[28]. - The group recognized lease liabilities totaling $903,000 as of January 1, 2019, after adjustments for previous operating lease commitments[36]. Market Performance - Recordati has relaunched FortacinTM in key countries including France, Germany, Italy, Portugal, Spain, and the UK, with positive initial feedback from doctors regarding its effectiveness compared to existing products[150]. - Approximately 40% of patients using FortacinTM in Italy are likely to repurchase the product, indicating strong market potential[152]. - Initial feedback from doctors in Italy, Germany, Spain, Portugal, and France regarding FortacinTM has been very positive, suggesting it meets prescription needs effectively[150].

REGENT PACIFIC GROUP LIMITED (勵晶太平洋集團有限公司) (於開曼群島註冊成立之有限公司) 股票繃號: 575 2018 # 目 錄 頁次 業績概覽 2 4 主席報告 7 行政總裁報告 17 董事局報告 管理層對本集團業績之討論及分析 58 63 企業管治報告 環境、社會及管治報告 92 獨立核數師報告 98 經審核財務報表 103 綜合全面收益表 綜合財務狀況表 105 綜合權益變動表 106 綜合現金流量表 108 110 財務報表附註 業績概覽 業績概覽 二零一八年之財務業績概要及其他重要事件包括： ‧ 本公司股東應佔虧損31,090,000美元，主要是由於：(i)無 形 資 產（即FortacinTM）之 非 現 金 攤 銷 費 用 28,050,000美元；(ii)營運費用8,770,000美元；及(iii)有關本公司透過損益賬按公允價值處理之金融資產 之權益組合按照市值計算之虧損3,300,000美元；惟部分被從Recordati S.p.A.（「Recordati」）、江蘇萬邦醫 藥營銷有限責任公司（「江蘇萬邦醫藥」）及友華生技醫藥股份有限公司（「友華生技醫藥」）收取 ...