The United Laboratories International Holdings Limited 聯 邦 制 藥 國 際 控 股 有 限 公 司 Dear Shareholder, 30 September 2025 The United Laboratories International Holdings Limited (the "Company") Notice of Publication of 2025 Interim Report ("Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communication are available on the Company's website at www.tul.com.hk and the HKExnews' website at www.hkexnews.hk, or the arranged printed form(s) of Current Corporate Communi ...

Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 7,518,683, an increase of 4.8% compared to RMB 7,175,804 in 2024[4] - EBITDA for the same period was RMB 2,752,120, reflecting a growth of 23.3% from RMB 2,231,943 in 2024[4] - Profit before tax increased by 27.2% to RMB 2,419,651 from RMB 1,901,702 in the previous year[4] - Net profit attributable to the company's owners rose by 27.0% to RMB 1,894,314, compared to RMB 1,491,404 in 2024[4] - Basic earnings per share increased to RMB 104.26, up 27.0% from RMB 82.08 in the prior year[4] - Total comprehensive income for the period was RMB 1,892,823, compared to RMB 1,491,641 in 2024, showing overall growth[12] Expenses and Costs - Research and development expenses were RMB 498,941, an increase from RMB 446,800 in the previous year, highlighting ongoing investment in innovation[12] - The company reported a decrease in sales and distribution expenses to RMB 682,161 from RMB 706,651, indicating improved cost management[12] - The total employee costs for the six months ended June 30, 2025, amounted to RMB 1,112,645,000, up from RMB 1,035,973,000 in 2024, reflecting an increase of about 7.4%[55] - The company’s financial costs decreased to RMB 20,797 thousand in 2025 from RMB 25,172 thousand in 2024, a reduction of approximately 17.5%[45] Assets and Liabilities - As of June 30, 2025, total non-current assets increased to RMB 11,131,383 thousand from RMB 9,762,356 thousand, representing a growth of approximately 14.0% year-over-year[14] - Current assets rose to RMB 18,303,138 thousand, up from RMB 16,070,696 thousand, indicating an increase of about 13.6% compared to the previous year[14] - Total liabilities increased to RMB 4,115,975 thousand, compared to RMB 2,625,263 thousand, marking a significant rise of approximately 56.7%[15] - The total equity attributable to owners of the company increased to RMB 15,566,827 thousand from RMB 14,388,283 thousand, reflecting a growth of about 8.2%[15] Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2025, was RMB 1,997,122 thousand, compared to RMB 1,845,577 thousand, showing an increase of 8.2% year-over-year[20] - The net cash used in investing activities for the six months ended June 30, 2025, was RMB (1,313,174,000), compared to RMB (523,670,000) in the same period of 2024, indicating a significant increase in investment outflows[22]. - Cash and cash equivalents increased by RMB 2,685,387,000 for the six months ended June 30, 2025, compared to an increase of RMB 2,292,276,000 for the same period in 2024[22]. Revenue Segmentation - Revenue from intermediates was RMB 1,010,665,000, while raw materials and formulation products generated RMB 2,529,547,000 and RMB 3,978,471,000 respectively, contributing to a total segment revenue of RMB 9,282,096,000[27]. - The revenue from the formulation products segment reached RMB 3,978,500,000, a significant increase of 65.9% year-on-year, accounting for 52.9% of total revenue[85] - The company achieved sales revenue of RMB 966,100,000 from diabetes products, marking a 75.5% increase year-on-year[86] - The animal health business recorded sales revenue of RMB 564,600,000, a decrease of 15.9% year-on-year[91] Market Performance - Revenue from the Chinese market (including Hong Kong) was RMB 4,725,243,000, a decrease of 17.7% from RMB 5,748,478,000 in the previous year[30]. - The company’s revenue from Europe increased significantly to RMB 1,741,465,000 from RMB 411,566,000, indicating a strong market expansion in that region[30]. Shareholder Information - The company maintained an interim dividend of RMB 16.0 per share, unchanged from the previous year[4] - The interim dividend declared was RMB 0.16 per share, maintaining the same level as the previous year, with a payout ratio of 16.7%[82] - The group recognized a total of RMB 726,811,000 in dividends for the year-end 2024, consistent with the previous year[60] Corporate Governance and Management - The company adopted a share incentive plan on October 26, 2023, allowing for the issuance of up to 181,702,650 shares, which is 10% of the total issued shares as of that date[119] - The company currently does not have a Chief Executive Officer, and plans to appoint one at an appropriate time[127] - The audit committee consists of three independent non-executive directors: Mr. Zhang Pinwen, Professor Song Min, and Dr. Fu Qiushi, who reviewed the unaudited condensed consolidated financial report for the six months ending June 30, 2025[128] Future Plans and Developments - The company plans to expand its formulation exports and deepen its global market layout, focusing on the "Belt and Road" initiative[85] - The group aims to accelerate overseas registration and licensing of key products while enhancing its international competitiveness in production, R&D, and commercialization[108] - The group has 43 new human drug products in development, including 22 first-class new drugs focusing on endocrine, metabolism, autoimmune, ophthalmology, and anti-infection fields[92] Legal and Compliance - The group is involved in litigation to recover approximately RMB 340 million from Chengdu Evergrande, with a court ruling in June 2024 ordering a payment of approximately RMB 136.3 million[106] - The company has not disclosed any other significant litigation during the reporting period[107]

Investment Rating - The investment rating for the pharmaceutical and biotechnology industry is "Positive" (maintained) [1] Core Insights - The industry is entering a new development phase driven by optimized procurement and innovation [3] - The raw material pharmaceutical sector is at a cyclical bottom, with companies actively transitioning to innovative drug development [5][8] - The vaccine sector is experiencing a decline in performance but is accelerating the layout of new technologies and products [6] - The medical services sector is leveraging AI technology to enhance efficiency and quality [7] Summary by Sections Raw Material Pharmaceutical Sector - The raw material pharmaceutical industry has faced a downturn for nearly four years, with prices of various products, such as sartans and heparins, reaching historical lows [5] - Revenue and net profit in the raw material pharmaceutical sector showed a downward trend in the first half of 2025 due to significant price drops in anti-infective products and increased R&D investments [5] - Companies like Huahai Pharmaceutical and Borui Pharmaceutical are focusing on innovative drug development, with several products in various clinical trial phases [5][68] Vaccine and Blood Products Sector - The vaccine industry is facing continuous performance decline due to a decrease in newborn numbers and changing competitive dynamics, although some companies are introducing new technologies and products [6] - The blood products sector is also experiencing a downturn, with revenue and net profit declining due to high inventory levels and suppressed demand from medical insurance [6][75] - The industry is expected to see increased consolidation as leading companies accelerate mergers and acquisitions [6][8] Medical Services Sector - The medical services sector's performance has declined due to DRGs and the consumption environment, but the application of AI technology is expected to enhance service quality and efficiency [7] - The core competitiveness of the medical services industry lies in acquiring and training quality doctors and hospital management [7] Investment Recommendations - The report suggests that companies in the raw material pharmaceutical sector are likely to enter a harvest period as they transition to innovative drugs [8] - The blood products sector is anticipated to accelerate consolidation, with significant mergers expected in the near future [8] - Recommended stocks include Federal Pharmaceutical, Pro Pharmaceutical, Guobang Pharmaceutical, and others, while benefiting stocks include Tianyu Co., Meinuo Pharma, and others [8]

Summary of Federal Pharmaceutical Conference Call Company Overview - Federal Pharmaceutical's market value growth is closely linked to its product line, including the rise in prices of intermediates and active pharmaceutical ingredients, the launch of insulin products, and the BD agreement for the tri-target GLP-1 product, all contributing to stock price and market value changes [2][4][23] Core Business Segments - The main business segments include: - Antibiotic raw materials - Intermediates - Human antibiotics - Insulin preparations - Active expansion of innovative pipelines [6][5] Market Trends and Opportunities - The global diabetes and obesity issues are worsening, with the GLP-1 drug market showing significant potential. Sales of Semaglutide reached 21 billion yuan in 2023, with Goldman Sachs predicting a market size of $130 billion by 2030 [2][7] - The UBT 251, a tri-target GLP-1 receptor agonist, shows superior weight loss effects compared to Liraglutide, with clinical trials indicating a weight reduction of 15.1% over 12 weeks [9][10] Product Pipeline and Innovations - Federal Pharmaceutical has multiple products in the GLP-1 drug field, including oral GLP-1 small molecule formulations and UBT 37,034 injections. Liraglutide has been approved for market entry, while Semaglutide is expected to launch in 2026 [11][12] - The company is also focusing on metabolic disorders beyond obesity, including fatty liver and chronic kidney disease, with UBT 251 projected to peak at $5.2 billion domestically and $8.547 billion overseas by 2030 or 2031 [10][2] Financial Performance and Projections - The company anticipates a net profit of 2.76 billion yuan in 2025, with a slight decrease to around 2.6 billion yuan in 2026 due to reduced upfront payments [21][24] - The animal health business is expected to contribute 15%-20% of total revenue, with a compound annual growth rate of 75% from 2020 to 2023 [14] Competitive Landscape - Federal Pharmaceutical holds a significant position in the intermediate raw material market, particularly in 6-APA, with a global market share of 60%-70%. The industry is becoming more concentrated, with major production held by Federal, Sinopharm Weichida, and Chuan Ning Bio [19][20] Regulatory and Market Challenges - The company faces challenges from price pressures in the antibiotic sector due to centralized procurement and market demand slowdowns, impacting sales of key products [16][18] - Despite concerns about Indian competitors releasing capacity, the actual competitive pressure remains low due to production delays and government policy uncertainties in India [22] Future Outlook - Federal Pharmaceutical's innovative pipeline and the potential for increased valuation present significant growth opportunities. The company is currently valued below industry averages, but rapid advancements in its pipeline could enhance overall valuation multiples [23][24]

Summary of Federal Pharmaceutical Conference Call Company Overview - Federal Pharmaceutical operates in the antibiotic, insulin, and animal health sectors, with a stable recovery in the antibiotic business and growth contributions from insulin and animal health segments [2][4][5]. Key Points and Arguments Industry and Business Performance - The antibiotic sector is expected to stabilize in the second half of the year, benefiting from a stable supply and recovering demand [2][10]. - Financial performance has been robust, with intermediate prices previously boosting profits; however, recent demand declines have pressured core business [6][14]. - The insulin business saw significant revenue growth, reaching 960 million RMB in the first half of 2025, with domestic contributions of approximately 700 million RMB and overseas contributions of 260 million RMB [20]. Innovation and Product Pipeline - The weight loss pipeline is a core segment, with UBT 251 showing a weight loss potential of 16.6%, positioning it as a best-in-class product [2][7]. - UBT 48,128 has shown promising early clinical data, presenting significant advantages over competitors [9]. - Federal Pharmaceutical has established a partnership with Novo Nordisk worth 2 billion USD for UBT 251, indicating strong market potential [3][8]. Future Outlook - The antibiotic industry is projected to bottom out by the end of 2025, with Federal Pharmaceutical expected to lead the recovery [6][10]. - The company plans to expand its insulin product offerings, including new products like degludec insulin, which are anticipated to drive future growth [12][20]. - The animal health business is set to expand with new production facilities and a focus on pet medications, with more products expected to launch by 2027-2028 [13][24]. Financial Projections - Future profit forecasts suggest a stable contribution from core businesses, with an estimated profit of 2.5 billion RMB by 2025, and a potential market cap increase to 460-470 billion RMB [14][15]. - The company is expected to maintain a solid cash flow and a strong safety net due to its leading market position [14][36]. Global Market Strategy - Federal Pharmaceutical is focusing on emerging markets and regions along the Belt and Road Initiative, while considering opportunities in high-end markets in Europe and the US [21]. - The company has established a comprehensive global sales network for its upstream intermediate raw materials, covering over 80 countries and serving around 600 clients [33]. Research and Development - The R&D team is robust, with nearly 900 personnel dedicated to biological research and an additional 200 for small molecule development [31]. - The company is actively pursuing collaborations to enhance its innovation pipeline and is optimistic about future BD transactions [27][32]. Additional Important Information - The antibiotic intermediate and raw material prices have shown signs of stabilization after a decline due to reduced post-pandemic demand [16]. - The competitive landscape in the antibiotic sector remains stable, with no significant new entrants expected due to regulatory barriers [17][19]. - Federal Pharmaceutical's animal health segment is expected to recover in the second half of 2025, with new production capabilities coming online [22][24].

The United Laboratories International Holdings Limited 聯邦制藥國際控股有限公司 (於開曼群島成立之有限公司) (股份代號: 3933) 可持續發展委員會權責範圍及運作 成立 成員 權力 會議次數和程式 - 1 - 1. 本公司董事會（「董事會」）謹此成立可持續發展委員會，且該委員會的組成需滿 足香港聯合交易所有限公司證券上市規則的不時規定。 2. 可持續發展委員會的目標是建立可持續發展企業，促進本公司及其附屬公司（「本 集團」）的環境、社會及管治（「ESG」）管理及表現的持續改善，提升相關持份 者場對本集團可持續發展工作的認可。關注範疇涉及： (a) 環境 (包括節能減排、氣候變化、生物多樣性)； (b) 社會 (包括社區參與、醫藥可及性、雇傭、健康與安全)；及 (c) 管治 (包括商業道德、企業管治、資訊安全、風險管理及供應鏈管理)等。 3. 可持續發展委員會須由董事會委任，並須由不少於三名成員組成，其中一名須為主 席。 4. 可持續發展委員會會議的法定人數為兩名成員。正式召開且有法定人數出席可持續 發展委員會會議可行使可持續發展委員會獲賦予或可行使的 ...

Core Viewpoint - Zhongtai Securities projects that Lianbang Pharmaceutical (03933) will achieve revenues of 15.088 billion, 14.651 billion, and 16.036 billion yuan from 2025 to 2027, with year-on-year growth rates of 9.7%, -2.9%, and 9.5% respectively, and net profits attributable to the parent company of 2.758 billion, 2.638 billion, and 2.956 billion yuan, with corresponding growth rates of 3.7%, -4.3%, and 12.1% [1] Company Overview - Lianbang Pharmaceutical is recognized as a leading full-industry chain pharmaceutical group in China, currently transforming into an innovative drug company focused on metabolic diseases, driven by its innovation pipeline [1] - The company maintains a strong competitive position in traditional businesses, particularly in penicillin intermediates and active pharmaceutical ingredients, leveraging vertical integration to enhance cost competitiveness [1] Business Segments - The insulin formulation and animal health businesses are experiencing steady growth, contributing to sustained performance momentum [1] - The innovative business segment has achieved significant milestones, including the authorization of UBT251 (a GLP-1/GIP/GCG tri-target agonist), showcasing the company's research and development capabilities [1] Financial Projections - The projected price-to-earnings (PE) ratios for the years 2025, 2026, and 2027 are 11, 12, and 10 times respectively, reflecting the company's growth potential and market positioning [1]

Core Viewpoint - Zhongtai Securities projects that United Pharmaceuticals (03933) will achieve revenues of 15.088 billion, 14.651 billion, and 16.036 billion yuan from 2025 to 2027, with year-on-year growth rates of 9.7%, -2.9%, and 9.5% respectively, and net profits attributable to the parent company of 2.758 billion, 2.638 billion, and 2.956 billion yuan, with corresponding growth rates of 3.7%, -4.3%, and 12.1% [1] Financial Projections - Revenue projections for United Pharmaceuticals from 2025 to 2027 are 15.088 billion, 14.651 billion, and 16.036 billion yuan, reflecting growth rates of 9.7%, -2.9%, and 9.5% respectively [1] - Net profit projections for the same period are 2.758 billion, 2.638 billion, and 2.956 billion yuan, with year-on-year growth rates of 3.7%, -4.3%, and 12.1% [1] - The corresponding price-to-earnings (PE) ratios are expected to be 11, 12, and 10 times [1] Business Transformation and Strengths - United Pharmaceuticals is recognized as a leading full-industry chain pharmaceutical group in China, currently transforming into an innovative drug company focused on metabolic diseases, driven by its innovation pipeline [1] - The company maintains a strong competitive position in traditional businesses, particularly as a leader in penicillin intermediates and raw materials, leveraging vertical integration to enhance cost competitiveness [1] - The animal health and insulin preparation businesses are showing steady growth, contributing to sustained performance [1] - The successful authorization of UBT251 (a GLP-1/GIP/GCG tri-target agonist) highlights the company's research and development capabilities [1]

该行认为，公司中间体原料药具有龙头地位、竞争格局稳定，短期受需求减弱而承压；又认为行业竞争 格局稳固，联邦为青霉素绝对龙头，随着需求趋稳，有望企稳回升。该行预计公司2025至2027年分别实 现收入133.5亿、127.7亿、139.3亿元，实现归母净利润分别为25.9亿、23.4亿、25.2亿元。 招商证券发表研究报告指，首予联邦制药"强烈推荐"评级，认为公司主业抗生素有望逐步企稳，胰岛 素、动保持续开拓增长新曲线，创新加速发展，成长空间广阔。创新药方面，公司三靶点GLP-1激动剂 UBT251海外权益成功授权诺和诺德，有望持续贡献催化，后续减重管线中长效PYY类似物、口服GLP- 1小分子早期数据优异，有出海潜力，建议关注。 ...

Core Viewpoint - The demand for insulin in China is rapidly increasing due to the large diabetic patient population, with Aspart insulin being a key product that effectively controls postprandial hyperglycemia and is now more accessible due to its inclusion in the medical insurance catalog [1][7]. Market Overview - Aspart insulin is a commonly used rapid-acting insulin analog, primarily for controlling blood sugar in type 1 and type 2 diabetes patients, with effects starting within 10-20 minutes and lasting about 4-6 hours [2][3]. - The market size for Aspart insulin in China is projected to reach 8.451 billion yuan in 2024, representing a year-on-year growth of 5.33% and accounting for 31.1% of the overall insulin market [1][7]. Market Policies - The Chinese government has implemented various policies to regulate the insulin industry, ensuring quality and safety while promoting healthy and high-quality development [3]. Industry Chain - The upstream of the Aspart insulin industry includes animal-derived insulin raw materials, intermediates, active pharmaceutical ingredients, packaging materials, and pharmaceutical equipment. The midstream consists of Aspart insulin production companies, while the downstream includes medical institutions, pharmacies, e-commerce channels, and end consumers [4][5]. Patient Demographics - The prevalence of diabetes in China is on the rise, with an estimated 148 million diabetic patients by 2024, marking a year-on-year increase of 4.89%, which drives the demand for Aspart insulin [6]. Competitive Landscape - The centralized procurement policy has reshaped the competitive landscape of the insulin market, leading to price reductions but also providing more market opportunities for selected companies. As of April 2024, six companies were selected for Aspart insulin in the national procurement process, indicating a trend towards increased market share for domestic products [8][9]. Company Profiles - **Ganli Pharmaceutical**: Engaged in the research, production, and sales of insulin analogs, with a projected revenue of 3.045 billion yuan and a gross profit of 2.279 billion yuan in 2024, achieving a gross margin of 74.83% [10]. - **Tonghua Dongbao Pharmaceutical**: Focused on drug research and production, with a projected revenue of 2.01 billion yuan and a gross profit of 1.485 billion yuan in 2024, achieving a gross margin of 73.90% [11]. Future Development Trends - The inclusion of Aspart insulin in the medical insurance catalog will continue to impact its market sales, with ongoing adjustments in reimbursement policies and centralized procurement driving companies to optimize pricing strategies and enhance product accessibility in grassroots medical markets [12].