Net profits up 55% to HK$446 million with interimdividend HK$0.04/share
Growth in sales volume and price from a betterproduct mix
Continuous achievements from innovations

Results summary:

• Total revenue HK$2,093 million for first half year, representing anincrease of 57.9% year over year
• Net profit HK$446 million, representing an increase of 54.7% yearover year
• The Boardresolved to pay an increased interim dividend of HK$0.04 per share

HONG KONG, CHINA - Media OutReach - 27 August 2018 -  SSY Group Limited ("SSY"or the "Company"; Stock Code: 2005.HK) and its subsidiaries (together, the"Group") presents the interim results of the Company for the six months ended30 June 2018 ("first half of the year" or the "period").

During the firsthalf of the year, the Group achieved a revenue of HK$2,093 million,representing an increase of 57.9% compared to the corresponding period of lastyear, and the gross profit margin increased by 8.2 percentage point. The netprofit was HK$446 million, representing an increase of 54.7% compared to thecorresponding period of last year. During the firsthalf of the year, the Company put a greater effort into business development,making full use of its dominances in variety, quality, cost and brand andstrengthen its market share. Production and sales ofintravenous infusion solutions, the Company's leading products,were thriving and upright soft bags achieved the most significant growth. Theproportion of therapeutic infusion solutions began to rise, promoting theimprovement of the Company'sproduct mix. During the period, as the products furtherreverted to rational pricing, the prices of different products had growth atvarying degrees. Besides, therapeutic infusion solutions contributed to theoverall rise in average selling price.

The Board ofdirectors resolved to pay an interim dividend of HK$0.04 per share for year2018, which represented an increase compared to last year interim dividend ofHK$0.03 per share. The total amount of interim dividend this year to be paid isHK$121 million.

During the firsthalf of the year, sales volume of intravenous infusion solutions reached 721million bottles/bags, representing an increase of 15.0% compared to thecorresponding period of last year. Last year, the Group successfully widenedits market coverage from northern China region to the whole country. For thefirst half of this year, the Company further achieved steady development in themarket. The number of provinces with sales exceeding RMB50 million further increasedto 14 in the first half of this year, laying a market foundation for the Company's future expansion of its new products. Export sales to foreign countriescontinued to maintain stable growth. Production and sales volume of smallliquid injections products in ampoule started to increase rapidly. During thefirst half of the year, sales volume increased by 92.9% compared to thecorresponding period of last year. With more production approvals obtained,production of small liquid injections in ampules will become one of the newgrowth points of the Company's results in the future. Inrespect of medical materials, the Company brought its own technologicaladvantages into full play, putting effort into the business development of highvalue-added products, among which disposable sterilized rubber stoppersprovided for angiography was successfully registered in the United States.

Technological innovation capabilities of theGroup have been further enhanced. "Project of Establishment and Application of Soft BagInfusion Solution Quality Control Technology System" was awarded the FirstPrize of Hebei Province Science and Technology Progress Award for the year 2017 by the People'sGovernment of Hebei Province, being the only enterprise in the pharmaceuticalindustry of Hebei Province which received the First Prize for that year. InMarch 2018, the Group's technology centre was recognized as the NationalEnterprise Technology Centre. There has been continuous achievements from newinnovations. In the first half of the year, the Company was granted approvalsfor drug production and registration for a total of 9 chemical drugs, amongwhich Hemofiltration Solution and Hemofiltration Basic Replacement Fluid were thecrucial products for the Company to enter the hemofiltration market.Large-scale sterile production, Balanced Salt Solution for ophthalmicoperations and liquid injection products in polypropylene ampoule relativelyless competition in the product market provided better room for market growth. Consistencyevaluation of chemical drugs in oral and injection preparations has been makingsteady progress.

In the aspect of development of projects, newproduction line for surgical soft bag intravenous infusion solution in sterilepackage has been completed in the first half of the year, and is expected tocommence operation in the fourth quarter of this year. The large-volume softbag production line is under construction, and is expected to meet the criteriaof production in year 2019. The construction of bulk pharmaceuticalsproject phase one focuses on the production of caffeine. The main building forworkshop of phase one has been fully topped out. For the equipment required forproduction, we have completed the tender for procurement, and started theinstallation upon delivery. For the construction of environmental protectionfacilities, preliminary works of wastewater and exhaust gas treatment have beencompleted.

Looking aheadfor the second half of the year, the pharmaceutical industry will continue tohave steady run in general. In terms of intravenous infusion solution industry,upon industry consolidation, the environment in which stronger side alwaysenjoys superiority remains unchanged which fosters the development of leadingenterprises. The Company will exert all efforts to capture opportunity byexpanding its market share, improving its product mix, to help strengtheningthe Company'sleading position in the intravenous infusion solutions industry.The annual sales target of intravenous infusion solutions is 1,500 millionbottles/bags. Sales for new products such as Sodium Acetate Ringer and Ambroxolin upright soft bags will be realized on a large scale, and surgical soft bagproducts will be launched on the market in batches.

Regarding the research anddevelopment of new products, the Company will adhere to the new productsdevelopment idea of "combining generic drugs and innovative drugs" withinjection as the basis. We will comprehensively promote the development of thenew products for therapeutic injections and focus on various fields includingtreatment of chronic diseases and circulatory systems, emergency anesthesiatherapy, antipyretic and analgesic therapy, as well as the new anti-infectivetherapy. We expect to obtain approximately 20 production approvals forinjection this year. The company will accelerate the forming of Company'sproduct portfolio in the field of respiratory and kidney disease and dialysis, graduallyestablishing its leading position in injections in terms of high-end drugdelivery system and innovative packaging form. Meanwhile, to seize high-endmarket, the Company will further optimize the product line of polypropyleneplastic ampoules. The Company will work on the linkage commissioning andpreparations for trial run of the chemical bulk pharmaceuticals project by endof this year.

Mr. Qu Jiguang, Chairman andCEO of SSY Group Limited said, "We are full ofconfidence on the future development of the Company. Leveraging on thecompetitive edges on our scale, quality and lean management in the industry,our leading position in the industry of infusion solution products will befurther strengthened despite strong market competition. We are committed tobringing satisfactory return to our investors. I would like to take thisopportunity to express our gratitude to our investors and all staff of theGroup for their support to the development of the Company."

About SSY Group Limited

SSY Group Limited is one of the leading pharmaceutical manufacturers in China withnearly 7 decades of operation history and a well-established brand name. TheGroup went public on the Hong Kong Stock Exchange in December 2005 with stockcode 2005. The group has become a component stock of Morgan Stanley CapitalInternational Index (MSCI) China Index from June 2018. The Group is principallyengaged in the research, development, manufacture and sale of a wide range ofpharmaceutical products, including OTC drugs, bulk medicine and medicalmaterials, mainly intravenous infusion solution to hospital and distributors.The manufacturing plants of the Group locates in Hebei Province and JiangsuProvince in China, its products take leading position in the high-end hospitalmarket in China.