• Net profits drop 55% to HK$247 million with interimdividend HK$0.05/share
• Keep composure facing outbreak of the novelcoronavirus
• Strive to make new innovative breakthroughs

Results summary:

• Total revenue HK$1,783 million for first half year, representing a decreaseof 23.3% y-o-y
• Net profit HK$247 million, representing a decrease of 54.9% y-o-y
• The Board resolved to pay interim dividend of HK$0.05 /share,unchanged from last year

HONG KONG, CHINA - Media OutReach - 25 August 2020 - 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 2020 ("first half of the year" or the "period").

During the first half year, the Group achieved a revenue of HK$1,783million, representing a decrease of 23.3% and the gross profit margin remained at 64%. The Groupachieved a net profit of HK$247million, representing a decrease of 54.9% compared to the corresponding periodof last year. During the first half year, the operational activities of varioussizes of hospitals and various types of clinics in the PRC were severelydisrupted by the epidemic and thus the number of patients substantiallydecreased. The sales volume of the intravenous infusion solutions, being the majorproducts of the Group, dropped considerably. The Group extended sales &marketing and supply services through "cloud services" and other means. During the period, the Group developednew businesses in more than 80 hospitals to further secure and stabilize itsmarket, laying a solid market foundation for the rapid business recovery of theCompany after the epidemic.

The Boardof directors proposed to pay aninterim dividend of HK$0.05 per share for year 2020, which is unchangedfrom the corresponding period of last year. The total amount of interim dividend this year to be paidis approximately HK$151 million.

Duringthe first half of the year, sales volume of intravenous infusion solutionsreached approximately 482 million bottles/bags, representing a decrease ofapproximately 38% year-on-year, of which the proportion of therapeutic infusionsolutions among the intravenous infusion solutions increased to 31.6%,representing an increase of 1.1 percentage points year-on-year. The Groupincreased its effort in promoting the sales of new products in differentprovinces, among which the online tender of Moxifloxacin Hydrochloride andSodium Chloride Injection has been completed in 31 provinces and municipalitiesand has resulted in sales in 22 provinces, achieving sales of RMB127 millionduring the first half of year 2020. As a broad-spectrum antiviral drug, theGroup's Abidol Hydrochloridecapsule has played a positive role in this fight against the epidemic, and wasincluded in "Diagnosis and Treatment Program for Novel Coronavirus InfectedPneumonia", "Guidelines for the Rational Use of Antiviral Drugs in Children withViral Infectious Respiratory Diseases" and NationalMedical Insurance Catalogue 2019. Its revenues for the first half year amountedto RMB50.64 million, representing a significant increase of 19 times comparedto the corresponding period of last year. Export sales to foreign countriesachieved a growth despite the unfavourable market trend, with increases inexport revenue of 14.9% and export volume of infusion solution of 15.4% duringthe first half year as compared to corresponding period of last year. Wecompleted the registration procedures and obtained registration certificates for26 product specifications overseas, and increased 2 new countries for export.

For both existing and potential markets, theGroup further pushed forward the progress of research and development ofinnovative drugs and generic drugs as well as the consistency evaluation ofgeneric drugs, and achieved results as expected. The Group obtained approvalsfor production of Doxofylline Injection and Ropivacaine Hydrochloride Injectionbeing two items under newly classified Type 4 chemical drug. In year 2020, it obtained approval for Cefdinir capsule andPrucalopride Succinate tablet, being newly classified Type 4 oral formulation.All of them were regarded as one of the first three enterprises that had passedthrough consistency evaluation in the PRC. Doxofylline Injection has a new typeof packaging in PP ampoule instead of the original glass ampoule for betterconvenience and safety. Ropivacaine Hydrochloride Injection is a new type oflocal anesthetic drug being the first one that passed through consistencyevaluation. Cefdinir capsule and Prucalopride Succinate tablet were bothawarded the first place in the tender results of National Centralised MedicinesProcurement. The approval for Rosuvastatin Calcium Tablet, a newly classifiedType 4 chemical drug, was also obtained. It is used for treatment of primaryhypercholesterolemia or mixed dyslipidemia. In addition, 72 research anddevelopment projects were submitted for approval, including clinical trialapplication of NP-01 under Type I new drug, 4 items under Type 4 chemicaldrugs, 1 item under Type 3 chemical drugs and 3 items for consistencyevaluation.

Regardingdevelopment of projects, through product processoptimization as well as equipment modification and upgrades, Hebei GuangxiangPharmaceutical Co., Ltd. is rapidly releasing its production capacity of bulkpharmaceuticals, thus beginning to show the advantage of production cost. TheCompany has planned for a spin-off and separate listing of its integratedbusiness of bulk pharmaceuticals on a stock exchange in the PRC.

Looking ahead in thesecond half year, domestic and international economy will be more complex anddynamic. As the novel coronavirus epidemic may become normalised, the pressurearising from external factors may persist and bring new challenges to the Group'soperation and sales. Facing numerous uncertainties, the Group will continue tokeep its composure, uphold its development focus and do its best in maintainingthe momentum in sustainable and stable development of the Group. The Group willpromote development by innovation, and improve efficiency by management. TheGroup will maintain our major products in the leading position of intravenousinfusion solution market. At the same time, the Group will strengthen themarketing efforts of major products, such as therapeutic infusion solutionproducts and small volume injection products, as well as newly approved drugtypes and will also expand the sales proportion of high-value-added preparationproducts. On the other hand, the Group will actively utilize the productioncapacity of bulk pharmaceuticals and improve capacity utilization to lay asolid foundation for the listing in the PRC. Moreover, the Group will continueto make progress on implementation of innovative drug evaluations andconsistency evaluations. We will adhere to the new product development idea of "combination of generic and innovative drugs" with development of as injections the basis. At the same time, wewill take into consideration of research and development of new types of oralsolid preparation, bulk pharmaceuticals and medical materials. At the sametime, the Group strives to make new breakthroughs in the research anddevelopment of innovative drugs.

Mr. Qu Jiguang, Chairman and CEO of SSY Group Limited said, "Wewill not be discouraged by the disappointing result in the first half year. Weare full of confidence on the future development of the Group. Leveraging onthe competitive edges on our scale, quality, lean management and branding inthe industry, we will firmly grasp development initiatives, keep innovativevitality and push forward high-quality development of the Group. We willdeliver more solid development results to bring satisfactory returns to ourinvestors. I would like to take this opportunity to express our gratitude toour investors and all staff of the Group for their support to the developmentof 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.