Successful Turning Loss into Profit, Strong Release of Market Potential; Sales of Key Products Doubled, Business Restructuring Completed Smoothly

HONGKONG, CHINA - EQS  -  30 August2019 - A fully integrated biopharmaceutical company -- Uni-Bio Science Group Limited (the "Company", together with itssubsidiaries, the "Group"; Stock code: 0690.HK) are pleased to announce that its interim results for the period ended 3 0 June 201 9 (the "Period"or "1H2019") ， Duringthe period, the Group succeeded in turning its loss into profit, with a netprofit of HK$44.9 million and a basic profit of HK$0.73 cents per share . Compared with the core performance indicators in the firsthalf of 2018 ("1H2018"), the figures have improved considerably, standingon a turning point of the performance and entering a new phase of growth.

Key Accomplishments in 1H2019

During the Period, The Group has made a series ofimportant progress in sales, corporate governance, Manufacture, R&D andclinical affairs. The key highlights include:

1.      During the period, the Groupcontinued to optimize its marketing team and enhance its market penetration.Overall sales rose 63.2% over 1H2018, recording HK$97.3 million. Especially,the sales of recombinant human epidermal growth factor (rhEGF) related drugsfrom our proprietary biological products were strengthened. The total sales ofEGF products were HK$72.1 million, up 54.9% from 1H2018, and their performanceaccounted for 74.1%. The Group continuously pushes its core products tohospitals at all levels, drug sales terminals and community clinics in keydrug-using provinces or municipalities, which greatly promotes the Group'srevenue growth. Among them, 15ml of GeneTime® performed best, with sales volumeand sales increased significantly, compared with 1H2018, by 89.3% and 93.6%respectively. The increment of GeneSoft® recorded 19.6% growth in sales volume and9.9% growth in sales, respectively.

2.      During the period, thecontribution of the chemical drug Pinup® (Voriconazole Tablets) to the overallsales continued to increase. Single product performance doubled, with revenueof HK$24.0 million. Sales volume and sales increased by 118.3% and 103.8%respectively over 1H2018. Since the end of 2018, the Group has signed a NationalPromotion Cooperation Agreement with Shanghai Loymed Pharma Technology Co., Ltd.for Pinup® Marketing Project. Through close collaboration, the product hasentered more than 500 key hospitals in China, which is one of the importantreasons for the recovery of growth for this product during this period. Inaddition, since the Group has completed the consistency evaluation of Pinup®,compared with most competitors of the same kind without this quality and policyguarantee, the future growth trend will be more stable.

3.      During the period, the high-end projectof industrialization for tripeptide (rhPTH1-34), supported by government funds,received the first batch of government subsidy of RMB10 million in April 2019. Pursuantto the Public Notice on the 2018 Incubation Programme (Batch II) of High-Tech Industriesfrom the Sub-Parks of the Zhongguancun National Innovation Demonstration Zone, theMajor Frontline Innovative Technology Commercialization and IndustrializationProject, namely the Industrialization Project of recombinant human Teriparatide(rhPTH1-34) for Injection, which was undertaken and submitted by BeijingGeneTech Pharmaceutical Co., Ltd. ("Beijing GeneTech"), a wholly-ownedsubsidiary company of the Group, has been approved and recognized by theZhongguancun Science Park Management Committee. The funds will be used tosupport the optimization and upgrading of production lines, the protection ofindependent intellectual property rights and major core technologies, as wellas the launch and marketing of this product.

4.     During the period, the group completed an organizational restructuring, changing from a divisional structure to a business unit structure. The company formed eight business units that directly report to the new CEO. The new organizational structure is designed to be more streamlined and flat, and focus on better cost control. Especiallyin the marketing and sales BU,   the BUstreamlined the structure from 125 employees to around 50 by the end of 2018.Sales expenses over revenue during the period was significantly reduced, down 24.9percent per revenue point to 74.9% in1H2019.

5.      During the period, the R&Dcost of the Group was about HK$21.3 million (including capitalized portion),which was used to carry out or complete different R&D projects, includingnew drug applications for the 2nd generation Uni-E4 exenatide and Uni-PTHtripeptide injection. For the three chemical drugs of the group: Bokangtai(Miglinide Tablets), Boshutai (Acarbose Tablets) and Pinup®, have reached verysignificant milestones in the bioequivalence study. Boshutai have completed BEstudies and submitted application in January 2019. Pinup® have completed BEstudies and currently preparing a final filling to the NMPA. Finally,partnering with Jiangsu Hansoh, Bokantai have kicked off bioequivalence studywith target to fill in early 2020.   Inaddition, Uni-PTH tripeptide lyophilized powder is in the process of clinical onsiteverification and production onsite verification, and is expected to obtain newdrug certification and production license from drug regulatory authorities inearly 2020.

6.      During this period, a new"three in one" biologic fill-finish production line was completed andready for service in Beijing GeneTech, a wholly-owned subsidiary located in BeijingZhongguancun Science Park. The production capacity of lyophilized powder in syringebottle, Cartridge and pre-filled syringe can reach 3,000-8,000 units per hour, 11,000 units per hour and 20million units per year respectively. It is worth mentioning that, due to the high technical barriers in the production of pre-filling injection,, small and Medium-sized Pharmaceutical Enterprises need to invest a lot of cost and infrastructure to support high-quality production. Therefore, our Group has officially launched the CMO business to the public to save the relevant costs for the partners and bring considerable benefits to the non-core revenue of the Group. At present, Beijing GeneTechhas signed two commissioned production contracts and will deliver the productson time.

Prospects

Looking ahead, the Group remains confident in thelong-term development of the sector. We believe that the innovation, businessdiversification and effective resource integration can ensure the substantialand stable development of pharmaceutical enterprises despite regulatorypressures and policy risks. With the reform in the PRC pharmaceutical industryto innovation-oriented and the increasing competitions, drug innovation hasbecome a key growth driver to support sector development in the long run. Over theyears, the Group has focused on innovation and R&D for metabolic diseases,such as diabetes, osteoporosis and epidermal growth factor products. Thegrowing age population and increasing health awareness will help the industrywith expertise in specific diseases seize growth opportunities. The group'schronic disease product portfolio with huge market potential will be launchedin the near future. In terms of long-term strategic cooperation, two strategicpartnership were established in June and July between TimeCity TourismDevelopment Co., Ltd. in Kaiping, Guangdong Province and CHMT PeacefulDevelopment Fund Management Ltd. in Hong Kong, respectively for thecollaboration in chronic disease, deploying health care bases and funding forresearch on new endocrine drugs. The Group believes that above achievementswill lay a solid foundation and drive the development of the Uni-Bio ScienceGroup.

Mr. KingsleyLeung , Chairman of Uni-Bio Science, commented "Looking back on theachievements made by Uni-Bio Science Group in the first half of 2019, the boardof directors and I are very pleased to inform our stakeholders that we haveushered in a turning point of performance before the original targetedtimeline. We implemented a five-year development plan in 2015 to breakeven by2020. The good result is from years of hard work from our employees andimprovement of our corporate governance. What is more encouraging is the recentrecognition by the capital market. Another important strategic investor, CHMTPeaceful Development Fund, made an investment after in-depth due diligence onthe company. Also, we have been seeing a very positive performance of our stockprice, further showing the increased confidence of shareholders and investorson the Group. Finally, we must realize clearly that we are still undervalued,we are focused to progress our R&D pipeline products to the next valueincremental milestone, and show to our stakeholders that we can effectivelycommercialize these products. Overall, 1H2019 results are encouraging and wewill continue this momentum to ensure this success continues in the nearfuture."

About Uni-Bio Science Group Limited

Uni-Bio ScienceGroup Limited is principally engaged in the research and development, manufacture anddistribution of pharmaceutical products. The research and development center isfully equipped with a complete system for the development ofgenetically-engineered products with a pilot plant test base which is in linewith NMPA requirements. The Group also has two GMP manufacturing bases inBeijing and Shenzhen. The Group is focused on the development of noveltreatments and innovative drugs addressing the therapeutic areas of endocrine asdiabetes and osteoporosis, ophthalmology and dermatology.

Uni-Bio ScienceGroup Limited was listed on the Main Board of the Hong Kong Stock Exchange onNovember 12, 2001. Stock code: 0690.