Net profits up 37% to HK$912 million with final dividend HK$0.05/share ; Results reaching historic high; Continuous achievements from innovations

Results summary:

• Total revenue HK$4,181 million, representing an increase of 35.9%year-on-year
• Net profit HK$912 million, representing an increase of 37.2% year-on-year
• Gross profit HK$2,606 million, gross profit margin up to 62.3%
• The Board propose an increased final dividend of HK$0.05 per share

HONG KONG, CHINA - Media OutReach - March 13, 2019 - SSY Group Limited ("SSY"or the "Company"; Stock Code: 2005.HK) and its subsidiaries (together, the"Group") presents the annual results of the Company for the year ended 31 December2018 ("2018" or the "year").

During the year, the Group achieved a revenueof HK$4,181 million, representing an increase of 35.9% and the gross profitmargin increased by 3.6 percentage point compared to last year. The net profitwas HK$912 million, representing an increase of 37.2% compared with last year.The Company put a greater effort into business development, making full use ofits dominances in variety, quality, cost and brand as well as coordinating thedevelopment of end market. The Company also attracted sales and marketingprofessionals to expand the clinical business development team, strengthen itsafter-sales services and its market share. Production and sales of intravenousinfusion solutions, the Company's leadingproducts, were thriving. During the year, sales volume reached 1,460 millionbottles/bags and upright soft bags achieved the most significant growth. Theproportion of sales of therapeutic infusion solutions began to rise, becomingthe main driver for the improvement of product mix.

The Board of directors proposed to pay a finaldividend of HK$0.05 per share for year 2018, together with interim dividendHK$0.04 per share, total dividend HK$0.09 per share for whole year of 2018. Thetotal amount of dividend this year to be paid is HK$271 million, whichrepresented an increase of 31.7% compared to last year.

In 2018, sales volume of intravenous infusionsolutions reached 1,460 million bottles/bags, representing an increase of 12.5%compared to last year. The number of major provincial markets with annual salesexceeding RMB100 million increased to 14, laying a market foundation for theCompany's future expansion of itsnew products. In addition to maintaining sustained growth in the domesticmarket, the Group also steadily accelerated its international business. Duringthe year, foreign trade sales amounted to    RMB114 million, representing an increase of20.7%. Production and sales volume of small liquid injections products inampoule started to increase rapidly. In 2018, the sales exceeded RMB100 millionfor the first time, representing a year-on year increase of 7.5 times. Withmore production approvals obtained, production of small liquid injections inampoule will be realized on a large scale, and become one of the new growthpoints of the Company's results.

Technologicalinnovation capabilities of the Group have been further enhanced. In 2018, theCompany was successively recognized by the National Development and ReformCommission and other ministries/commissions as the National EnterpriseTechnology Centre and by the Ministry of Industry and Information Technologyand the Ministry of Finance as the National Technology Innovation Enterprise.There have been continuous achievements from new innovations. During the year,a total of 48 registrations were completed, the Company was granted approval forgeneric drug production and registration for a total of 15 drugs, among whichMoxifloxacin Hydrochloride and Sodium Chloride Injection, the first newantibiotic product approved in China for use in soft bag packaging, wasincluded in the China National Essential Drug List and will quickly become aleading product for the growth of the Company's being performance. In addition,Hemofiltration Solution and Hemofiltration Basic Replacement Fluid, being thesecond in China approved for hemodialysis, will be two crucial products for theCompany to enter the hemofiltration market with plenty of room for marketgrowth. Balanced Salt Solution (Irrigating) was used in ophthalmic operationsfor irrigating and rinsing, and was the first generic product in the domesticmarket. The 4 liquid injection products in polypropylene ampoule for smallvolume intravenous infusion, including Ambroxol, potassium chloride and sodiumchloride further enriched the Company's product lines in polypropylene ampoulepackaging.

Inthe aspect of development of projects, the Company constructed the newproduction line for surgical soft bag intravenous infusion solution in sterilepackage, and obtained the GMP certification to commence operation during theyear. The production line dedicated for large-volume soft bag infusion is underconstruction, and is expected to be ready for production in May 2019. Byspeeding up the construction of pharmaceutical research & developmentplatform and support projects for pilot-run and industrialized production, theywill be ready to use in year 2019. The bulk pharmaceuticals project phase onefocuses on the production of chemical bulk pharmaceuticals such as caffeine.The overall construction progress of the project has entered the final stage,and the project is expected to be ready for trial run in April 2019.

Looking ahead for year 2019, under the immensely complex economicconditions in China and numerous potential adverse factors, the overallperformance of pharmaceutical industry may be affected by uncertainties inrelation to more policy changes brought by "4+7" centralized procurement. In terms of intravenous infusion solutionindustry, upon industry consolidation, it is expected the environment in whichstronger side always enjoys superiority remains unchanged, which fosters thedevelopment of leading enterprises. The Company will exert all efforts tocapture the historic growth opportunity by expanding its market share,improving its product mix, boosting the sales of approved new products andraising the proportions of the therapeutic infusion solutions in production andsales. These helps strengthening the Company's leading position in the intravenous infusion solutions industry.The annual sales target of intravenous infusion solutions is more than 1,600million bottles/bags. Sales for new therapeutic products such as MoxifloxacinHydrochloride Sodium Chloride Injection, Sodium Acetate Ringer and Ambroxol inupright soft bags will be realized on a large scale, developing the sales scaleof these therapeutic infusion products to reach the level of RMB100 million,and become the main driving force for the growth of the Company's result.

Regarding the research and development of new products, the Companywill adhere to the new products development idea of "combining generic drugs and innovative drugs" with injection as the basis. Besides, we will comprehensivelypromote the development of the new products for therapeutic injections, andfocus on various fields including treatment of chronic diseases and circulatorysystems, emergency anesthesia therapy, antipyretic and analgesic therapy, aswell as the new anti-infective therapy. We expect to obtain approximately 11production approvals for injection this year. The company will accelerate the formingof Company's product portfolio in the field of respiratory and kidney diseaseand dialysis, gradually establishing its leading position in injections interms of high-end drug delivery system and innovative packaging form. We will also put strenuous efforts in the development of innovativedrugs which are not yet meeting clinical criteria, explore the market in thearea of new respiratory, gradually entered the children's oral medication market. Meanwhile, the submission of certificationmaterials for the FDA of the United States will be completed within the year,to make preparation of development into the international market.

Mr. Qu Jiguang, Chairman andCEO of SSY Group Limited said, "Weare full of confidence on the future development of the Company. Leveraging onthe competitive edges on our scale, quality and lean management in theindustry, our leading position in the industry of infusion solution productswill be further strengthened despite strong market competition. We arecommitted to bringing satisfactory return to our investors. I would like totake this opportunity to express our gratitude to our investors and all staffof the Group for their support to the development of the Company."

About SSY Group Limited

SSY Group Limited is one of the leading pharmaceuticalmanufacturers in China with nearly 7 decades of operation history and awell-established brand name. The Group went public on the Hong Kong StockExchange in December 2005 with stock code 2005. The group has become a componentstock of Morgan Stanley Capital International Index (MSCI) China Index fromJune 2018. The Group is principally engaged in the research, development,manufacture and sale of a wide range of pharmaceutical products, including OTCdrugs, bulk medicine and medical materials, mainly intravenous infusionsolution to hospital and distributors. The manufacturing plants of the Grouplocates in Hebei Province and Jiangsu Province in China, its products takeleading position in the high-end hospital market in China.