Earnings release
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited t ake no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howso ever arising from or in reliance upon the whole or any part of the contents of this announcement. PW MEDTECH GROUP LIMITED 普 華 和 順 集 團 公 司 (Incorporated in the Cayman I slands with limited liability) (Stock Code: 1358) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED JUNE 30, 2026 KEY FINANCIALS . Revenue for the six months ended June 30, 2026 amounted to approximate ly RMB394.1 million, representing a decrease of 4.9% from approxima tely RMB414.4 million f or the corresponding period in 2025. . Gross profit for the six months ended June 30, 2026 amounted to approximately RMB189.9 million, representing a decrease of 10.8% from approximately RMB212.8 million for the corresponding period in 2025. Gross profit mar gin decreased from 51.3% for the corresponding period in 2025 to 48.2% for the six months ended June 30, 2026. . Profit for the period for the six month s ended June 30, 2026 amounted to approximately RMB37.7 million, representin g a decrease of 56.5% from appr oximately RMB86.6 million for the corresponding period in 2025. Profit attri butable to owners of the Company for the six months ended June 30, 2026 amounted to approxi mately RMB14.7 million, representing a decrease of 77.7% from approximately RMB66.0 m illion for the corresponding period in 2025. . Adjusted net profit for the period (non-HKFR S measure) amounted to approximately RMB68.6 million for the six months ended June 30, 2 026, representing a decrease of 42.4% from approximately RMB119.1 million for the corr esponding period in 2025. Adjusted net profit attributable to owners of the Company (non -HKFRS measure) amounted to approximately RMB31.3 million for the six months ended Jun e 30, 2026, representing a decrease of 62.5% from approximately RMB83.4 million f or the corresponding period in 2025. . The Board resolved to declare an interim divi dend of HK1.1 cents per share for the six months ended June 30, 2026 (for the six months ended June 30, 2025: HK4.4 cents). Note: (1) We define the ‘‘adjusted profit for the period (non-HKFRS measure) ’’and ‘‘adjusted net profit attributable to owners of the Company (non-HKFRS measure) ’’as profit for the period or profit attributable to owners of the Company adding back (i) share-based compensation expenses of the Blood Purification Business; (ii) professional services fee relating to the spin-off of Si chuan Ruijian Medical (the ‘‘Spin-off ’’); (iii) amortization of fair value increment on intangible assets recognised in the acquisition of Beijin g Ruijian Biological; and (iv) income tax effects of non- HKFRS adjustments. We eliminate the impacts of these items that the Group does not consider indicative of the performance of the business of the Group, as they are either non-cash items or non-recurring expenses. – 1 –
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The board (the ‘‘Board ’’) of directors (the ‘‘Directors ’’)o fP WM e d t e c hG r o u pL i m i t e d( t h e ‘‘Company ’’ or ‘‘PW Medtech ’’ and, together with its subsidiaries, collectively the ‘‘Group ’’)i s pleased to announce the unaudited int erim condensed consolidated fina ncial results of the Group for the six months ended 30 June 2026 (the ‘‘Relevant Period ’’), together with the comparative figures for the corresponding period in 2025 or other date/period as follows: CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months ended 30 June 2026 Unaudited Six months ended 30 June 2026 2025 Notes RMB’000 RMB’000 Revenue 5 394,056 414,373 Cost of sales (204,153) (201,594) Gross profit 189,903 212,779 Other income and gains and losses — net 6 5,452 14,840 Fair value loss on investment properties 14 (127) (321) Reversal of impairment losses on trade receivables 1,927 3,722 Reversal of/(provision for) impairment loss recognised on amount due from a related party 779 (1,099) Selling and marketing expenses (42,578) (43,767) General and administrative expenses (93,454) (83,463) Research and development expenses (25,710) (22,493) Operating profit 36,192 80,198 Finance income — net 7 14,636 22,923 Profit before income tax 8 50,828 103,121 Income tax expenses 9 (13,146) (16,502) Profit for the period 37,682 86,619 Other comprehensive (expense)/income Items that will not be subsequent ly reclassified to profit or loss: Change in fair value of financial assets at fair value through other comprehensive income (10,317) 27,803 Currency translation differences (2,688) (502) Other comprehensive (expense)/income for the period (13,005) 27,301 Total comprehensive income for the period 24,677 113,920 – 2 –
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Unaudited Six months ended 30 June 2026 2025 Notes RMB’000 RMB’000 Profit for the period attributable to: Owners of the Company 14,692 65,999 Non-controlling interests 22,990 20,620 37,682 86,619 Total comprehensive income for the period attributable to: Owners of the Company 1,687 93,300 Non-controlling interests 22,990 20,620 24,677 113,920 Earnings per share attributable to owners of the Company for the period (expressed in RMB cents per share) Basic and diluted 10 1.01 4.44 – 3 –
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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 June 2026 30 June 2026 31 December 2025 Notes RMB’000 RMB’000 (Unaudited) (Audited) Assets Non-current assets Property, plant and equipment 12 895,429 905,004 Right-of-use assets 13 29,275 30,498 Investment properties 14 260,933 261,060 Intangible assets 15 992,912 1,018,395 Goodwill 16 564,085 564,085 Deferred tax assets 9,367 9,817 Long-term prepayments 8,984 14,521 Loan receivables 17 180,000 — Non-current financial assets 18 58,262 70,688 Total non-current assets 2,999,247 2,874,068 Current assets Inventories 170,849 145,201 Loan receivables 17 — 240,000 Trade and other receivables 19 147,570 168,144 Financial assets at fair va lue through profit or loss 20 — 5,000 Cash and cash equivalents 1,828,021 1,802,841 Total current assets 2,146,440 2,361,186 Total assets 5,145,687 5,235,254 Liabilities Current liabilities Trade and other payables 21 155,899 154,969 Lease liabilities 2,436 2,247 Bank borrowings 15,000 15,000 Contract liabilities 42,898 30,037 Tax payables 12,706 14,543 Total current liabilities 228,939 216,796 Net current assets 1,917,501 2,144,390 – 4 –
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30 June 2026 31 December 2025 Notes RMB’000 RMB’000 (Unaudited) (Audited) Non-current liabilities Lease liabilities 3,602 4,754 Deferred tax liabilities 134,494 139,108 Deferred government grants 20,201 20,863 Total non-current liabilities 158,297 164,725 NET ASSETS 4,758,451 4,853,733 Equity Share capital 22 876 897 Share premium 1,360,155 1,392,707 Treasury shares (10,220) (2,746) Reserves 407,363 418,450 Retained earnings 2,130,971 2,141,167 Equity attributable to own ers of the Company 3,889,145 3,950,475 Non-controlling interests 869,306 903,258 TOTAL EQUITY 4,758,451 4,853,733 – 5 –
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NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. GENERAL PW Medtech Group Limited (the ‘‘Company ’’) was incorporated in the Cayman Islands on 13 May 2011 as an exempted company with limited liability under the Compani es Act, Chapter 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands. The address of the Company ’s registered office is The Grand Pavilion Commercial Centre, Oleander Way, 802 West Bay Road, P.O. Box 32052, Grand Cayman KY1-1208, Cayman Islands. The Company ’s shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited (the ‘‘Stock Exchange ’’) since 8 November 2013. The Company is an investment holding company. The Company and its subsidiaries (together referred to as the ‘‘Group ’’) are principally engaged in the research and development ( ‘‘R&D’’), manufacturing and sale of advanced infusion set, intravenous cannula products, insulin needles etc. (the ‘‘Infusion Set Business ’’), hemodialysis and blood purification medical devices (the ‘‘Blood Purification Business ’’) and animal-derived regenerative medical biomaterials and human tissue repair alternative products (the ‘‘Regenerative Medical Biomaterials Business ’’)i n the People ’s Republic of China (the ‘‘PRC’’). 2. BASIS OF PREPARATION These interim condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 ( ‘‘HKAS 34 ’’), issued by the Hong Kong Institute of Certified Public Accountants (‘‘HKICPA ’’) and the applicable disclosure requirements of Ap pendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. Thes e interim condensed consolidated financial statements were authorised for issue on 28 August 2026. These interim condensed consolidated financial stateme nts have been prepared with th e same accounting policies adopted in the 2025 annual financial statements, except for those that relate to new standards or amendments effective for the first time for periods beginning on or after 1 January 2026. Details of any changes in accounting policies are set out in note 3. The adoption of the new and revised HKFRS Accounting Standards have no material effect on these interim condensed consolidated financial statements. The preparation of these interim conde nsed consolidated financial stateme nts in compliance with HKAS 34 requires the use of certain judgements, estimates and assumptions that affect the application o f policies and the reported amounts of assets and liabilities, income and expenses on a y ear to date basis. Actual results may differ from these estimates. The areas where significant judgments and estimates have been made in preparing the interim condensed financial statements and their effect are disclosed in Note 4. These interim condensed consolidated financial statements are presented in Renminbi ( ‘‘RMB’’), unless otherwise stated. These interim condensed consolidated financial sta tements contain condensed consolidated interim financial statements and selected explanatory notes. The notes include an explanation of events and transactions that are significant to an understanding of the changes in financ ial position and performance of the group since the 2025 annual financial statements. These interim condensed consolidated financial statements and notes do not include all of the information required for a complete set of financial statements prepared in accordance with HKFRS Accounting Standards and should be read in conjunction with the 2025 annual financial statements. The interim condensed consolidated financial statement s have been prepared under the historical cost convention except for certain financial instruments, which are measured at fair value. – 6 –
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These interim condensed consolidated financial statements are unaudited, but have been reviewed by BDO Limited in accordance with Hong Kong Standard on Review Engagements 2410, ‘‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity ’’, issued by the HKICPA. 3. CHANGE IN ACCOUNTING POLICIES Except as described below, the accounting policies applie d are consistent with those of preparation of the Group ’s annual consolidated financial statements for the year ended 31 December 2025, as described therein. . Amendments to HKFRS 9 and HKFRS 7, Amendments to the Classification and Measurement of Financial Instruments . Amendments to HKFRS 9 and HKFRS 7, Contracts Referencing Nature-dependent Electricity . Annual Improvements to HKFRS Accounting Standards — Volume 11, Amendments to HKFRS 1, HKFRS 7, HKFRS 9, HKFRS 10 and HKAS 7 The amended HKFRS Accounting Standards that are effective from 1 January 2026 did not have any significant impact on the Group ’s accounting policies. The Group has not early applied any new or amended HKFRS Accounting Standards that is not yet effective f or the current accounting period. 4. CRITICAL ACCOUNTING JUDGEMENTS AND KE Y SOURCES OF ESTIMATION UNCERTAINTY The preparation of the interim condensed consolidated financial information requires management to make judgements, estimates and assumptions that affect th e application of accounting policies a nd the reported amounts of assets and liabilities, income and expenses. Actual res ults may differ from these estimates. In preparing these interim condensed consolidated financial statements, the significant judgements made by the management in applying the Group ’s accounting policies and the key sources o f estimation uncertainty were the same as those that applied to 2025 annual financial statements. – 7 –
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5. REVENUE AND SEGMENT INFORMATION Disaggregation of revenue from contracts with customers An analysis of the Group ’s revenue for the period is as follows: For the six months ended 30 June 2026 For the six months ended 30 June 2025 Infusion Set Business Blood Purification Business Regenerative Medical Biomaterials Business Consolidated Infusion Set Business Blood Purification Business Regenerative Medical Biomaterials Business Consolidated RMB’000 RMB ’000 RMB ’000 RMB ’000 RMB ’000 RMB ’000 RMB ’000 RMB ’000 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Revenue from contracts with customers within the scope of HKFRS 15 Revenue from hospitals 3,617 5,335 — 8,952 13,457 2,232 — 15,689 Revenue from medical products distributors 76,807 303,116 5,181 385,104 99,930 295,212 3,542 398,684 Total 80,424 308,451 5,181 394,056 113,387 297,444 3,542 414,373 Timing of revenue recognition Point in time 80,424 308,451 5,181 394,056 113,387 297,444 3,542 414,373 Geographical markets Mainland China 80,424 228,156 5,181 313,761 113,387 194,919 3,542 311,848 India — 13,535 — 13,535 — 38,580 — 38,580 America (excluding U.S.) — 12,229 — 12,229 — 12,859 — 12,859 Africa Region — 12,338 — 12,338 — 12,060 — 12,060 Other Asia countries — 30,838 — 30,838 — 28,786 — 28,786 Others — 11,355 — 11,355 — 10,240 — 10,240 80,424 308,451 5,181 394,056 113,387 297,444 3,542 414,373 Segment information Information reported to the chief execu tive of the Company, being the chief ope rating decision maker, for the purpose of resource allocation and assessment of segment performance focuses on business units. No operating segments identified by the chief operating decis ion maker have been aggregated in arriving at the reportable segments of the Group. The Group has the following operating and reportable segments: — the ‘‘Infusion Set Business ’’segment represents the R&D, manufacturing and sales of advanced infusion set, intravenous cannula products, insulin needles, etc; — the ‘‘Blood Purification Business ’’segment represents the R&D, manufacturing and sales of hemodialysis and blood purification medical devices; and — the ‘‘Regenerative Medical Biomaterials Business ’’segment represents the R&D, manufacturing and sales of animal-derived regenerative medical biomateria ls and human tissue repair alternative products. – 8 –
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(i) Segment revenue and results Analysis of the Group ’s segment revenue and results for the six months ended 30 June 2026 and 2025 is as follows: Infusion Set Business Blo od Purification Business Regenerative Medical Biomaterials Business Consolidated 30 June 2026 30 June 2025 30 June 2026 30 June 2025 30 June 2026 30 June 2025 30 June 2026 30 June 2025 RMB’000 RMB ’000 RMB’000 RMB ’000 RMB ’000 RMB ’000 RMB ’000 RMB ’000 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Segment revenue from external customers 80,424 113,387 308,451 297,444 5,181 3,542 394,056 414,373 Segment results (Operating profit) 2,946 41,614 80,575 70,829 (29,232) (24,829) 54,289 87,614 Unallocated corporate income 9,825 22,850 Unallocated corporate expense (13,286) (7,343) Profit before taxation 50,828 103,121 Intersegment sales and tran sfers are transacted with reference to the selling prices used for sales made to third parties at the then prevailing market prices. The re were no inter-segment sales for the periods. The accounting policies of the reportable segments are the same as the Group ’s accounting policies. Segment results represent the profit/(loss) from each segment w ithout allocation of unalloca ted corporate income and expenses. This is the measure reported to the chief operating decision maker of the Company for the purposes of resource allocation and pe rformance assessment. (ii) Segment assets and liabilities Infusion Set Business Blo od Purification Business Regenerative Medical Biomaterials Business Consolidated 30 June 2026 31 December 2025 30 June 2026 31 December 2025 30 June 2026 31 December 2025 30 June 2026 31 December 2025 RMB ’000 RMB ’000 RMB’000 RMB ’000 RMB ’000 RMB’000 RMB ’000 RMB ’000 (unaudited) (Audited) (unaudited) (Audited) (unaudited) (Audited) (unaudited) (Audited) Segment assets 1,454,656 1,440,417 1,636,945 1,649,359 953,969 945,343 4,045,570 4,035,119 Deferred tax assets 9,367 9,817 Non-current financial assets 58,262 70,688 Unallocated corporate assets 1,032,488 1,119,630 Consolidated assets 5,145,687 5,235,254 Segment liabilities 110,195 112,873 78,886 89,956 23,717 18,092 212,798 220,921 Deferred tax liabilities 134,494 139,108 Tax payables 12,706 14,543 Unallocated corporate liabilities 27,238 6,949 Consolidated liabilities 387,236 381,521 – 9 –
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For the purposes of monitoring segment performance and allocating resources between segments: . all assets are allocated to operating segments other than deferred tax assets, listed equity securities, unlisted investment fund and unallocated corporate assets; and . all liabilities are allocated to operating segments o ther than tax payables, deferred tax liabilities and unallocated corporate liabilities. Unallocated assets mainly represent cash at banks and oth er receivables in holding company for the period/year ended 30 June 2026 and 31 December 2025. 6. OTHER INCOME AND GAINS AND LOSSES — NET Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Government grants 1,712 3,370 Rental income 7,587 10,292 Rental management and utility income 3,398 2,023 Gain/(loss) on disposal of property, plant and equipment 18 (2) Loss on guarantee liability (Note) (367) (367) Net foreign exchange loss (7,154) (1,599) Fair value change of financial assets at fair value through profit or loss 259 1,054 Others (1) 69 Other income and gains and losses — net 5,452 14,840 Note: The loss recognised during the periods ended 30 June 2025 and 2026 represents the interest accrued for the period on the guarantee liability as detailed in note 21. – 10 –
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7. FINANCE INCOME — NET Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Finance income Bank interest income 7,654 14,801 Interest income on wealth management product 1,249 600 Loan interest income 6,119 7,850 15,022 23,251 Finance costs Interest expenses on lease liabilities (128) (133) Interest expenses on bank borrowings (258) (195) (386) (328) Finance income — net 14,636 22,923 8. PROFIT BEFORE INCOME TAX Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Amortisation of intangible assets 32,299 32,456 Depreciation of property, plant and equipment 39,694 34,675 Depreciation of right-of-use-assets — Properties 1,144 959 — Leasehold land and land use rights 300 300 – 11 –
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9. TAXATION The amount of tax recognised in the condensed consolidated statement of comprehensive income represents: Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Current income tax PRC income tax for the period (17,310) (20,729) Deferred income tax 4,164 4,227 Income tax expenses (13,146) (16,502) Below are the major tax jurisdictions th at the Group operates during the period. (a) Cayman Islands profits tax The Company has not been subject to any taxation in the Cayman Islands. (b) Hong Kong profits tax Hong Kong profits tax is calculated at 8.25% on the fir st HK$2 million of the estimated assessable profits and 16.5% on the estimated assessable profits above HK$ 2 million. No provision for taxation in Hong Kong was made in the financial statements for the current year as the Group ’s operations in HK had no assessable profits. (c) PRC corporate income tax (the ‘‘CIT’’) The statutory PRC enterprise income tax for the PRC subsidiaries is 25% for the year. According to the Tax Relief Notice (Cai Shui 2020 No. 23) on the Grand Deve lopment of Western Region jointly issued by the Ministry of Finance, the State Administration of Taxation and National Development and Reform Commission, enterprises located in the western region of the PRC w ith over 60% of the principal revenue generated from the encouraged business activit ies were entitled to a preferential income t ax rate of 15% for 10 years from 1 January 2021 to 31 December 2030. Accordingly, certain subsidiaries located in the western region of the PRC are entitled to an income tax rate of 15% for the period. Three subsidiaries of the Group have been qualified as ‘‘High and New Technology Enterprises ’’under the CIT Law. Therefore, they were entitled to a preferential incom e tax rate of 15% on their estimated assessable profits during the period. They will continue to enjoy the preferen tial tax rate in the subsequent periods, provided that they continue to be qualified as ‘‘High and New Technology Enterprises ’’during such periods. Certain PRC subsidiaries, which are micro and small ente rprises, enjoy the preferential tax rate. According to the PRC Enterprise Income Tax Law (the ‘‘EIT Law ’’) and the Implementation Regulation of the EIT Law, an entity qualified as micro and small enterprise s is subject to preferential tax treatment. Eight subsidiaries of the Group are entitled to the preferential tax rate fo r the periods ended 30 June 2026 and 2025. – 12 –
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(d) Withholding tax ( ‘‘WHT’’) According to applicable tax regulati ons prevailing in the PRC, dividends distributed by a company incorporated in the PRC to foreign investors with respect to profits de rived after 1 January 2008 are generally subject to a 10% withholding tax. Under the double taxation arrangement between the PRC and Hong Kong, the relevant withholding tax rate applicable to the Group is reduce d from 10% to 5% subject to the fulfilment of certain conditions. 10. EARNINGS PER SHARE (a) Basic Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by the weighted average number of ordinary shares in issue (excluding treasury shares) during the periods ended 30 June 2026 and 2025. Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Profit attributable to owners of the Company 14,692 65,999 Weighted average number of ordinary shares in issue (excluding treasury shares) (thousands) 1,459,193 1,486,735 Basic earnings per share (RMB cents per share) 1.01 4.44 The diluted earnings per share is the same as the basic ear nings per share as there were no potential ordinary shares in issue during the period/year ended 30 June 2026 and 31 December 2025. 11. DIVIDENDS The proposed 2025 final dividend of HK2.0 cents per share (2024: HK5.3 cents per share), totaling HK$28,655,000 (2024: HK$78,797,000) was approved by the Company ’s shareholders at the annual general meeting held on 26 June 2026. It was disclosed in the Company ’s announcement on 27 March 2026 and recognised in ‘‘trade and other payables ’’in the interim condensed consolidated statement of f inancial position and was s ubsequently paid on 31 July 2026. The Board has declared an interim dividend of HK1.1 cents per share (six months ended 30 June 2025: HK4.4 cents) for the six months ended 30 June 2026. – 13 –
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12. PROPERTY, PLANT AND EQUIPMENT As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 (unaudited) (Audited) At beginning of period/year 905,004 891,691 Additions 30,451 88,256 Disposals (332) (2,689) Depreciation (39,694) (72,254) At end of period/year 895,429 905,004 During the period, the Group acquired property, plant and equipment of approximately RMB30,451,000 (six months ended 30 June 2025: RMB40,877,000) and disposed of property, plant and equipment of approximately RMB332,000 during the period (six months ended 30 June 2025: RMB816,000). 13. RIGHT-OF-USE ASSETS The recognised right-of-use assets rela te to the following types of assets: Properties Leasehold land and land use rights Total RMB’000 RMB ’000 RMB ’000 At 1 January 2025 5,758 24,572 30,330 Additions 2,903 — 2,903 Depreciation for the year (2,092) (599) (2,691) Early termination of a lease (44) — (44) At 31 December 2025 (Audited) and 1 January 2026 6,525 23,973 30,498 Additions 221 — 221 Depreciation for the period (1,144) (300) (1,444) At 30 June 2026 (Unaudited) 5,602 23,673 29,275 – 14 –
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14. INVESTMENT PROPERTIES As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 (unaudited) (Audited) FAIR VALUE At beginning of period/year 261,060 262,880 Change in fair value (127) (1,820) At end of period/year 260,933 261,060 The balance represented office premises located at No. 2 3 Panlong West Road, Pinggu District, Beijing, with a construction area of approximately 39,714.5 square mete rs held by the Group under medium term lease in the PRC. The Group ’s property interest held to earn rentals is measured using the fair value model and is classified and accounted for as investment properties. The fair value of the Group ’s investment properties as at 30 June 2026 was approximately RMB260,933,000 (31 December 2025: RMB261,060,000). The fair value was determined based on the income approach, by capitalising the estimated net income derived from the investment properties with reference to the lease agreement and taking into account the future growth potential. The discount rate was determined by reference to weighted average cost of capital of the listed companies with similar business portfolio. Key assumptions used in determining the fair value are as follows: 30 June 2026 31 December 2025 Occupancy rate 50% to 83% 50% to 79% Monthly rent RMB40.9 per sq.m. to RMB77.1 per sq.m. RMB40.7 per sq.m. to RMB76.8 per sq.m. Rental growth rate 2.0% 2.0% Discount rate 5.0% 5.0% The fair value of the investment property at 30 June 2026 and 31 December 2025 were measured using income approach with significant unobservable inputs and hence were classified as Level 3 of the fair value hierarchy. There were no transfer into or out of Level 3 during the period. A significant increase/decrease in the rental value in isolatio n would result in a significant increase/decrease in the fair value of the investment properties. A significant increase /decrease in the discount rate and capitalisation rate in isolation would result in a significant decrease/increase i n the fair value of the investment properties. Generally, a change in the assumption made for the rental value is accompanied by a directionally similar change in the rent growth per annum. – 15 –
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In addition, as a result of the increased uncertainty, signi ficant judgement is required when evaluating the inputs used in the fair value estimate. Reasonably possible changes at the reporting date to any of the relevant assumptions would have affected the fair value of the investment property as presented below: As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 Discount rate increased by 1% (33,167) (32,562) Expected occupancy rate decreased by 3% (9,737) (9,874) Rental growth rate decreased by 0.5% (20,355) (21,593) 15. INTANGIBLE ASSETS As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 (unaudited) (Audited) At beginning of period/year 1,018,395 1,068,300 Additions 6,816 15,008 Amortisation (32,299) (64,913) At end of period/year 992,912 1,018,395 16. GOODWILL The carrying amount of goodwill is allocated to the cash generating units (CGUs) as follows: Goodwill carrying amount As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 (unaudited) (Audited) Infusion Set Business 160,754 160,754 Blood Purification Business 323,540 323,540 Regenerative Medical Biomaterials Business 79,791 79,791 564,085 564,085 Goodwill was acquired through business combinations and it is related to the Infusion Set Business, Blood Purification Business and Regenerative Medical Biomaterials Business. Goodwill is monitored by the management at the operating segment level. As at 31 December 2025 and 30 June 2026, management determines that there is no impairment on goodwill. – 16 –
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17. LOAN RECEIVABLES As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 (unaudited) (Audited) Fixed-rate loan receivables 180,000 240,000 Analysed as: Current — 240,000 Non-current 180,000 — 180,000 240,000 On 20 April 2023, the Group advanced a loan to an independent third party with the principal of RMB180,000,000 at the rate of 5.3% per annum with a maturity date in April 2026. The interest is repayable on a half-yearly basis. In April 2026, the outstanding principal amount was extended to a maturity date on 23 April 2028 and the interest rate was revised to 4.5% per annum during the period from 24 April 2026 to 23 April 2028 with other terms remaining unchanged. The loan is collateralised by certain real pro perties owned by the borrower located in Beijing with fair value over the carrying amount as at 30 June 2026. The management has assessed the expected credit loss on the loan receivable and considered the effect was immaterial. On 28 September 2023, a loan advance with the principal of RMB120,000,000 was granted to another independent third party. The loan is interest bearing at 4.55% per annum. The interest is repayable on a semi-yearly basis. In May 2025, the outstanding principal amount was extended to a maturity date on 31 May 2026 with other terms remaining unchanged. The loan is collateralised by certain real properties owned by the b orrower located in Suzhou with fair value over the carrying amount as at 30 June 2025. The management has assessed the expected credit loss on the loan receivable and considered the effect was immaterial . The borrower repaid RMB60 million in July 2025 and subsequently repaid RMB60 million in June 2026. – 17 –
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18. NON-CURRENT FINANCIAL ASSETS Financial assets at fair value include the following: As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 (unaudited) (Audited) Non-current assets Equity securities designated at FVOCI — Listed equity securities (note (i)) 36,713 48,778 Financial assets measured at FVTPL — Unlisted investment fund (note (ii)) 21,549 21,910 58,262 70,688 Notes: (i) As at 30 June 2026 and 31 December 2025, the Group held 0.65% equity interest in Lepu Biopharma Co., Ltd.. The resulted fair value loss of approximately RMB10,317,000 (six months ended 30 June 2025: fair value gain of approximately RMB27,803,000) was recognised to the other reserves directly during the period ended 30 June 2026. These assets were irrevocably designated at fair value through other comprehensive income as the Group considers these investments to be strategic in nature. T he fair values of the listed equity securities investments were determined based on the quoted market closing pr ices on the Stock Exchange at the end of the reporting period. No dividends were received on these investments nor disposal of investment was made during the reporting period. (ii) The underlying assets of the unlisted investment fund represent a private equity investing into medical industry. This investment fund was principally to achieve long-term capital appreciation primarily through privately- negotiated investments in companies and/or their affiliate s which is/are engaged in the research and development and sales of medical devices. The Group is a limited partner who held 26.3% in this investment fund and neither control nor significant influence in their operational and financing decisions. The directors of the Company have determined the fair value of the interest held in the investment fund as at 30 June 2026 and 31 December 2025 with reference to the valuation report issued by Flagship Appraisals and Consulting Limited, an independent professional val uer who has professional qualifications and relevant experience. The fair value of the investment fund is determined by using the market approach, with reference to comparable companies benchmark mu ltiples. The resulted fair value loss of approximately RMB361,000 (six months ended 30 June 2025: fair value gain of approximately RMB972,000) was recognised during the period ended 30 June 2026. (iii) Further details of the valuation methodology on the mea surement of financial assets at fair value through other comprehensive income and financial assets at fair value through profit or loss are disclosed in note 25. – 18 –
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19. TRADE AND OTHER RECEIVABLES As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 (unaudited) (Audited) Trade receivables (note i) 52,540 67,394 Bills receivables (note ii) 1,122 1,234 Prepayments and deposits 36,350 25,817 Value added tax recoverables 10,366 12,364 Other receivables 31,295 29,049 Interest receivables 2,414 2,647 Amount due from a related party (note iii) 13,483 29,639 147,570 168,144 Notes: (i) Included in trade and other receivables are trade receivables (net of impairment losses) with the following ageing analysis, based on invoice dates, as of the end of reporting period. As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 (unaudited) (Audited) U pt o3m o n t h s 28,416 44,559 3 months to 6 months 8,006 9,016 6m o n t h st o1 2m o n t h s 7,499 8,975 1 year to 2 years 4,070 89 2 years to 3 years 4,549 4,755 52,540 67,394 The Group recognised impairment losses based on the expected credit loss model. Trade receivables are due within 180 days from the da te of billing. The Group does not hold any collateral as security. (ii) The ageing of bills receivables is within 180 days, which is within the credit term. (iii) The amount due from a related party is interest-fr ee, unsecured and repayable on demand. The reversal of impairment loss on amount due from a related party of approximately RMB779,000 (six months ended 30 June 2025: provision for impairment loss RMB1,099,000) was recognised in profit or loss for the period ended 30 June 2026. – 19 –
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(iv) Impairment assessment The Group measures loss allowances for trade receivables at an amount equal to lifetime ECLs, which is calculated using a provision matrix. As the Group ’s historical credit loss experience indicated significantly different loss patterns for different customer segments, the grouping for trade receivables for the assessment of ECLs is by customer segments, while Group A represents n ormal distribution custo mers, Group B represents hospital customers, Group C represents distributor custom ers who identified as having significant increase in risk of default and Group D represents three credit-impaired customers with significant risk of default. The following table provides information about the Group ’s exposure to credit risk and ECLs for trade receivables: 30 June 2026 Group A Group B Group C Group D Expected credit loss rate (%) 10.12 2.04 96.82 48.67 Gross carrying amount (RMB ’000) 46,880 6,749 2,296 7,247 Loss allowance (RMB ’000) 4,744 138 2,223 3,527 31 December 2025 Group A Group B Group C Group D Expected credit loss rate (%) 7.74 1.03 100 58.22 Gross carrying amount (RMB ’000) 57,741 10,141 2,296 9,775 Loss allowance (RMB ’000) 4,468 104 2,296 5,691 Expected credit loss rates are based on actual loss experience over the past 3 years. These rates are adjusted to reflect differences between economic conditions duri ng the period over which the historic data has been collected, current conditions and the Group ’s view of economic conditions over the expected lives of the receivables. Movement in the loss allowance account in respect of trade receivables during the period/year is as follows: RMB’000 At 1 January 2025 19,057 Reversal of impairment losses recognised during the year (6,498) At 31 December 2025 (Audited) and 1 January 2026 12,559 Reversal of impairment losses recognised during the period (1,927) At 30 June 2026 (Unaudited) 10,632 – 20 –
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20. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 (unaudited) (Audited) Wealth management products — non-principal protected — 5,000 The amount included a wealth management product issued by a bank in the PRC. The product is not redeemable on demand and not principal protected. The return of the product is determined by the performance of the underlying investments which are mainly debt instruments. The details of the valuation methodology on financial assets at fair value through profit or loss are disclosed in note 25. The movements of financial assets at fair value through profit or loss during each of the period/year are as follows: As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 (unaudited) (Audited) At beginning of period/year 5,000 5,148 Addition 424,000 270,498 Disposal (429,620) (271,161) Fair value change 620 515 At end of period/year — 5,000 – 21 –
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21. TRADE AND OTHER PAYABLES As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 (unaudited) (Audited) Trade payables 43,514 58,788 Salary and staff welfare payables 38,105 43,487 Dividend payable 24,888 — Advances from customers 2,456 2,697 Deposits received 3,219 3,240 Value added tax and other taxes 5,428 5,362 Professional service fee 4,426 8,815 Provision for loss from guarantee liability (note) 23,781 23,414 Deferred government grants — current portion 1,325 1,327 Amount due to related parties 157 242 Other payables 8,600 7,597 155,899 154,969 As at 30 June 2026 and 31 December 2025, except for the advances from customers, deposits received, value added tax and other taxes and deferred government grants which a re not financial liabilities, all trade and other payables of the Group were non-interest bearing, and their fair value approximated their carrying amounts due to their short maturities. Included in trade payables are trade creditors with the following ageing analysis, based on invoice dates, as of the end of reporting period: As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 (unaudited) (Audited) U pt o6m o n t h s 23,975 44,159 6 months to 12 months 7,514 3,566 Over 1 year 3,852 1,278 2y e a r st o3y e a r s 561 1,480 Over 3 years 7,612 8,305 43,514 58,788 – 22 –
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Note: The guaranteed liability was in relation t o a joint guaranteed liability of the Group ’s subsidiary, Xuzhou Yijia Medical Device Co., Ltd. ( ‘‘Xuzhou Yijia ’’). Based on the final judgement from the Supreme People ’s Court of the PRC in 2018, Xuzhou Yijia was liable to the principal and accumulated interest on a defaulted loan granted by a bank, which Xuzhou Yijia had undertaken a joint guarantee with anot her independent guarantor. In view of this and having considered the risks and liabilities relating to this gua ranteed liability, the director s of the Company accrued a provision for loss on this guaranteed liability, which represented the principal and accumulated interest on the defaulted loan in 2018 and up to 30 June 2026. The bank assigned the entire right and interest in and to th e said guaranteed liability to an independent third party in 2024 who then demanded repayment from Xuzhou Yijia. In August 2025, Xuzhou Yijia filed a bankruptcy application to a PRC court to protect the legitimate rights and interest s of its creditors and Xuzhou Yijia and the application was accepted, and an administrator has been appointed to handl e the bankruptcy proceedings. Xuzhou Yijia continued to operate its business without any di sruption under the administrator ’s supervision since then and up to 30 June 2026. As at the date of this announcement, the Group is s till working for a settlement with the creditors. 22. SHARE CAPITAL, SHARE PREMIUM AND TREASURY SHARES Number of issued and fully Paid ordinary shares Share capital Share premium Number of treasury shares Treasury shares RMB’000 RMB ’000 RMB ’000 At 1 January 2025 1,533,231,098 939 1,456,478 46,496,000 (46,800) Repurchase of shares ——— 15,191,000 (19,759) Cancellation of shares (59,642,000) (42) (63,771) (59,642,000) 63,813 At 31 December 2025 and 1 January 2026 1,473,589,098 897 1,392,707 2,045,000 (2,746) Repurchase of shares ——— 38,811,000 (40,047) Cancellation of shares (30,734,000) (21) (32,552) (30,734,000) 32,573 At 30 June 2026 1,442,855,098 876 1,360,155 10,122,000 (10,220) During the year ended 31 December 2025, 15,191,000 ordinary shares were repurchased, of which 59,642,000 ordinary shares have been cancelled as at 31 December 2025. The total amount paid to acquire the shares was approximately RMB19,759,000 during the year. During the period ended 30 June 2026, 38,811,000 ordinary shares were repurchased, of which 30,734,000 ordinary shares have been cancelled as at 30 June 2026. The total amount paid to acquire the shares was approximately RMB40,047,000 during the period. – 23 –
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23. CAPITAL COMMITMENTS Capital expenditure contracted for at the end of the period/year ended but not yet incurred is as follows: As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 (unaudited) (Audited) Commitments for the : Acquisition of property, plant and equipment 11,920 11,666 24. RELATED PARTY DISCLOSURES (a) During the period, the Group had the following material related party: Name of the related party Relationship with the Group Lepu Medical Technology (Beijing) Co., Ltd. ( ‘‘Lepu Medical ’’) Dr. Zhongjie Pu, deemed as the actual controller of Lepu Medical by the Shenzhen Stock Exchange, is t he spouse of Executive Director of the Group (b) During the period, the Group had the followi ng material related party transactions: Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Related party transactions Sales of medical devices — Lepu Medical and its subsidiaries (note i) 9,951 43,407 Medical products processing services fee income (note ii) — Lepu Medical and its subsidiaries 1,203 1,435 Purchases of medical devices molds and components (note iii) — Lepu Medical and its subsidiaries 451 2,704 Notes: (i) Sales of medical devices totaling RMB9,951,000 to a related company were conducted in the normal course of business and in accordance with the terms of the agreement between the Company and the related party. (ii) Medical products processing services fee income totaling RMB1,203,000 to a related company were conducted in the normal course of business and in accordance with the terms of the agreement between the Company and the related party. – 24 –
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(iii) Purchases of medical devices molds and components totaling RMB451,000 to a related company were conducted in the normal course of business and in accordance with the terms of the agreement between the Company and the related party. (c) Amount due from/(to) related parties The amount due from/(to) related parties are interest-free, unsecured and repayable on demand. (d) Compensation of key management personnel The remuneration of directors and other members of key management of the Group during the period was as follows: Unaudited Six months ended 30 June 2026 2025 RMB’000 RMB’000 Salaries and other allowances 1,933 1,889 25. SUMMARY OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES BY CATEGORY The carrying amounts of the financial assets and financi al liabilities recognised at the end of reporting period were categorised as follows: As at 30 June 2026 As at 31 December 2025 RMB’000 RMB’000 (unaudited) (Audited) Financial assets — at amortised cost 2,126,789 2,172,804 — at fair value through profit or loss 21,549 26,910 — at fair value through other comprehensive income 36,713 48,778 2,185,051 2,248,492 Financial liabilities Financial liabilitie s at amortised cost 173,156 164,102 The fair values of financial assets are determined as follows: — the fair values of investments held for trading with stan dard terms and conditions and traded on active liquid markets are determined with refe rence to quoted market price; and — the fair values of other financial assets are determined based on valuations making reference to market capitalisations of comparable companies engaged in the same industry. – 25 –
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HKFRS 13 requires disclosures for financial instruments that are measured at fair value by level of the following fair value measurement hierarchy: Level 1: Quoted prices (unadju sted) in active markets for identical assets or liabilities; Level 2: Inputs other than quoted price s included within Level 1 that are obser vable for the asset or liability, either directly or indirectly; and Level 3: Inputs for the asset or liability that are not based on observable market data. Some of the Group ’s financial assets are measured at fair value at the end of each reporting period. The following table gives information about how the fair values of these fina ncial assets are determined (in particular, the valuation technique(s) and inputs used). Description As at 30 June 2026 As at 31 December 2025 Fair value hierarchy Valuation technique and key input Significant unobservable input RMB ’000 RMB’000 (unaudited) (Audited) Financial assets at fair value through profit or loss — Wealth management product — 5,000 Level 3 Quoted prices from financial institutions Expected rate of return ranging from 0.75% –1.75% (31 December 2025: 0.93% –1.78%) — Unlisted investment fund 21,549 21,910 Level 3 Valuations making reference to market capitalisations of comparable companies engaged in the same industry Selection of comparable companies and weighting of the selected companies used in valuation Financial assets at fair value through other comprehensive income — Listed equity securities 36,713 48,778 Level 1 Quoted market prices N/A For the financial assets at fair value through profit or loss, it consisted of wealth management products and unlisted investment fund as detailed in notes 18 and 20. Wealth management products represent bank wealth management products, measured at fair value through profit or loss. These instruments are not traded in an active market and do not have observable market data. The fair value of the unlisted investment is based on quote provided by the fi nancial institution. The fair value is within level 3 of the fair value hierarchy. The fair value of unlisted investment fund is arrived at based on a valuation carried out by Flagship Appraisals and Consulting Limited, an independent v aluer not connected to the Group. The fair value was determined based on market approach, where fair value estimated with references to comparable companies ’ benchmark multiples. – 26 –
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For the financial assets at fair value through other comprehe nsive income, it consisted of listed equity securities as detailed in note 18. The fair value of listed equity securitie s investments was determined based on the quoted market closing prices on the Stock Exchange. 26. CONTINGENT LIABILITIES The Company is currently involved in an arbitration (the ‘‘Hong Kong Arbitration ’’) commenced by independent third parties, Taibang Biological Ltd. ( ‘‘Taibang ’’) and Tianxinfu (Beijing) Medical Appliance Co., Ltd. ( ‘‘TXF’’, together with Taibang, the ‘‘Claimants ’’), at the Hong Kong International Arbitration Centre ( ‘‘HKIAC ’’). The Claimants allege, based on the Share Exchange Agreement entered into between the Company and China Biologic Products Holdings, Inc. ( ‘‘CBPO ’’) in 2017 (please refer to the circular of t he Company dated 14 November 2017 for further details) and the Indemnification Agreement entered into among the Company, CBPO and TXF in 2022, that the Company is liable for indemnification i n connection with a civil lawsuit (the ‘‘Hsu Lawsuit ’’)f i l e db yM r .H s uH u Ping ( ‘‘Mr. Hsu ’’) against TXF before a Chinese court in April 2024. In the Hsu Lawsuit, Mr. Hsu claims approximately RMB 80,000,000 in total for alleged profits, dividends, interest and other amounts under certain technology development agreements that he claims to have signed with TXF. As of the date of this announcement, to the best of our knowledge, no final judgment has been rendered in the Hsu Lawsuit. The Company has denied the Claimants ’ claims and raised defences in the Hong Kong Arbitration. The merits hearing of the Hong Kong Arbitration is scheduled for June 2027, and an award is expected to be issued possibly in the third to fourth quarter of 2027. At present, the HKIAC has not yet made any ruling on the merits of the claim for indemnification, and it is not feasible to reliably det ermine whether the Company will be held liable for such indemnification as of the date of this announcement. Save as disclosed above, as at 30 June 2026, the Group did not have any materia l contingent liabilities, guarantees or any litigations or claims of material importance, pen ding or threatened against any member of the Group. 27. EVENT AFTER REPORTING PERIOD From 1 July 2026 to the date of this announcement, Sichua n Ruijian Medical, a non-wholly owned subsidiary of the Company, repurchased 25,673,547 of its own shares on the open market, representing approximately 8.36% of its total issued share capital. The total consideration paid w as approximately RMB200,339,000. Following the share repurchase, the Group ’s equity interest in Sichuan Ruijian M edical increased from 48.65% to 53.10%. – 27 –
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MANAGEMENT DISCUSSION AND ANALYSIS Market and Business Review PW Medtech Group Limited (the ‘‘Company ’’or ‘‘PW Medtech ’’, together with its subsidiaries the ‘‘Group ’’) is a leading medical device company in China focusing on the fast-growing and high-margin segments in China ’s medical device industry, and has been committed to expanding new markets with development potential while solidifyi ng its leading position in the industry. Looking back at the first half of 2026, the global e conomy was still in a period of fluctuation and adjustment. Facing a complicat ed external environment, China ’s economy held up under pressure, with GDP growing 4.7% year-on-year in the first half of the year. In 2026, China ’s medical device industry is at the start of the 15th Five-Year Plan, with both opportunities and challenges ahead. Several nation al support policies are continuing to take effect, providing strong backing for the industry ’s growth. From the demand side, an aging population is steadily driving up the rigid demand for chronic dis ease management, rehabilitation care, and basic diagnostic devices. At the same time, companie s are also facing challe nges. The volume-based procurement of medical consumables is continuing to advance, covering an increasingly wide range, which puts pressure on product prices and profit ma rgins. Competition is intensifying in some niche areas, highlighting short- term business pressures. In the long run, companies are actively adapting to the regular operations of centralized procurement b y continuously optimizing internal management and increasing investment in innovation, striving to seiz e new opportunities amid structural adjustments in the industry. For the six months ended June 30, 2026, the Group achieved an operating revenue of RMB394.1 million, representing a decrease of 4.9% compared to the same period last year, mainly due to the significant decrease in product price s in the infusion set business seg ment, as the centralized volume- based procurement policy has bee n almost fully implemented fro m the second half of 2025 and covers Beijing and other regions that account for a high proportion of the infusion set business ’ss a l e s , consequently leading to a signif icant decrease in the segment ’s sales revenue. During the same period, the Group recorded a gross profit of RMB189.9 milli on, representing a year-on-year decrease of 10.8%, with an overall gross margin of 48.2%. Profit att ributable to owners of the Company was RMB14.7 million, representing a decrease of 77. 7% compared to the same period in 2025. As a leading company in the domestic medical de vice industry, PW Medtech will always maintain strategic focus, concentrate on its core business , and actively respond to market changes under the normalization of centralized procurement. The Group will adhere to an innovation-driven development strategy, optimize its product portf olio and operational efficiency, a nd create long-term value for all shareholders with more resilient business results. – 28 –
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Business Strategies and Future Outlook PW Medtech currently has three main business s egments: the Infusion Set Business, the Blood Purification Business and the Regenerative Med ical Biomaterials Busin ess. The Group sticks to innovation-driven growth, continuous ly working on technological innova tion and product development, steadily expanding production cap acity and diversifying our product matrix. At the same time, we keep optimizing our sales structure and marketing strate gies, focusing on streamlined operations and cost- efficiency, all to strengthen our overall competitiveness. In the Infusion Set Business segment, the Group , as a leading company in advanced infusion set business in China, continues to focus on traditional strong areas while also actively exploring emerging clinical demand for infusion products, and special izes in R&D, manufacturing, and selling infusion sets, intravenous cannulas, and in sulin needles and pens, etc. In fusion treatment is a basic and commonly used treatment in clinical practice. With f actors like aging population, deeper tiered medical care, and routine implementation o f centralized procurement policie s all interacting, the domestic infusion consumables industry is entering a crucial point of value chain restructuring. Since the second half of 2025, the centralized volum e-based procurement policy for products like infusion sets and intravenous cannulas has been further deepened na tionwide, with some regions that previously didn ’t participate gradually implementi ng volume-based procurement, resulting in a significant decrease in product prices and continued pressure on enterprises ’ profit margins. During the Relevant Period, the Group ’s Infusion Set Business achieved an operating revenue of RMB80.4 million, representing a decrease of 29.1% compared to the same period la st year, accounting for approximately 20.4% of the Group ’s total operating revenue for the Relevant Per iod. The decrease in operating revenue for the Infusion Set Business during the Relevant Period was mainly because the increase in product sales volume couldn ’t make up for the price cuts caused by volum e-based procurement. The Group will continue to follow the ‘‘low-cost, high-quality ’’strategy, and reduce opera ting costs by optimizing automated production proc esses and refining operations. At the sa me time, the Group is accelerating the optimization of its product matrix, while ensurin g the supply of volume-based products, focusing precisely on higher value-added products such as pre cision filtration infu sion sets and intravenous catheters; the Group will also focus on the emerging hot areas of infusion products such as diabetes care, and promote the R&D and launch of new products. In the Blood Purification Business segment, Sichua n Ruijian Medical, a subsidiary of the Group, is a leading blood purification medical device compan y in China, its products include blood purification consumables, such as hemodialyzer , hemodiafilter and hemoperfutor, a nd hemodialysis equipment such as hemodialysis machines and continuous blood puri fication equipment. In addition, Sichuan Ruijian Medical acquired Beijing Handao Technology Co., Ltd. ( 北京含道科技有限公司)i nJ u l y2 0 2 6t o expand into the peritoneal dialysis business, enri ch its blood purification p roduct line, and boost its market competitiveness through industry chain inte gration and collaborative development. Driven by factors like the aging population and rising chroni c kidney disease rates, the number of ESRD (end- stage renal disease) patients needing dialysis trea tment continues to grow. At the same time, the gradual improvement of the medical insurance s ystem has increased ESRD patients ’ willingness to undergo treatment; combined with the continuous optimizati on and quality improvement of dialysis technology, – 29 –
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this has effectively boosted patients ’ treatment adherence, and the tre atment penetration rate among Chinese patients keeps rising. The government stro ngly supports the constructi on of tightly-knit county- level medical communities and the enhancement of s ervice capabilities of county-level hospitals, requiring that counties with regula r population sizes generally have h emodialysis capacity; this is also driving growth in grassroots and county-level dialysi s centers, fully unleashing the inherent potential of the hemodialysis market in China. Since 2024, the volume-based procureme nt of blood purification consumables through the inter-p rovincial alliance of 23 provinc es including Henan, as well as the Beijing-Tianjin-Hebei ‘‘3N’’alliance, has been in a regular execut ion phase. The core consumables that the Group won the bid — such as hemodialyzer, hemodiafilter, di alysis tube, and arteriovenous fistula puncture needle — are under some price pressure, however , the volume-based procurement also provides the Group with stable hospital purchase vol umes, allowing us to exchange quantity for price. In overseas markets, some regions are facing increa sed competition, leading t o a slight drop in export revenue. The Company will actively adjust its bus iness strategy and continue to push forward the expansion of overseas operations. In the first half of 2026, the Blood Purification Business recorded an operating revenue of RMB308.5 million, representin g a year-on-year increase of 3.7%, accounting for 78.3% of the total operating revenue. In the Regenerative Medical Biomaterials Business segment, benefiting from the upgrade of healthcare consumption in China, the deepening of aging, a nd the breakthroughs in next-generation tissue regenerative materials technology , the regenerative medical biomater ials industry is entering a golden development period where innovati on dividends are being release d faster, and becoming the most promising investment area in med ical devices. The National Medi cal Products Administration fully supports the transformation of innovative medical d evice achievements, fu rther boosting market confidence in locally made high- end innovative materials. The Group ’s Regenerative Medical Biomaterials Business segment focuses on the R& D, manufacturing, and sales of animal-derived regenerative medical biomaterials and human tissue repair alternative products. We have a rich product pipeline, covering a variety of high-ma rgin clinical application scenari os like breast reconstruction, oral repair, hernia repair, dura mater repair, burn treat ment, and cosmetic injections. During the Relevant Period, the Group ’s Regenerative Medical Biomaterials Bus iness recorded an operating revenue of RMB5.2 million. The Group will full y leverage our technological leader ship and resource integration capabilities, expand sales networ k coverage and promotion efforts, boost sales growth, and bring more innovative products to market. Looking ahead, driven by factors including techno logical innovation and market demand, the Group will continue to increase its R&D investment to pro mote technological upgrad es and market expansion of key products, strictly control product quality, and optimize marke ting strategies to address the challenges posed by the normalization of centralized procurement, thereby enhancing the Group ’s overall competitiveness in the industry. By deep ening our local market advantage of domestic substitution, expanding the overseas market share of , inter alia, blood purification products, seeking development opportunities amid indus try challenges and consolidatin g our leading position, the Group strives to repay its shareholders and i nvestors with even better performance. – 30 –
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Emphasis on Innovation and R&D The Group sees innovative R&D as the core foundati on for sustainable development, continuously improving our research capabilities and accelerating t he translation of clinical results. Currently, the Group has an experienced R&D team with solid a cademic and research backgrounds, helping us develop innovative products and cons tantly enhance our R&D strength. In the first half of 2026, all our product registrat ions and R&D processes p rogressed smoothly: . In the Infusion Set Business segment, the Group has always focused on research and development and continuously optimizing the materials and per formance of infusion sets and cannula products, improving the product line in the field of infusion care, and actively exploring medical devices for diabetes and other care areas. In 2026, the Group obt ained registration cer tificates for disposable drug transfer devices used for dispensing and liq uid transfer, as well as electronic pen-style injectors for insulin injection. In addition, the G roup expects to submit a reg istration application for insulin pumps for insulin injection in the se cond half of 2026, to further expand the product portfolio in the diabetes care field. . In the Blood Purification Business segment, the Group has always been committed to meeting the differentiated clinical needs of dialysis pati ents. We continuously drive product innovation and iteration in aspects such as the safety, biocompati bility, and toxin removal efficiency of dialyzers, and we plan to submit registration applications for several new dialyze rs in 2026, including wet membrane dialyzers and hemodialyzers more sui table for clearing medium and large molecule toxins. At the same time, in 2026, the Group obtained the registration certifi cate for hemodiafilter for continuous blood purification therapy, as wel l as disposable hemoperfutors for removing exogenous drugs or toxins, fur ther expanding the Company ’s product layout in the field of blood purification consumables. In add ition, in the first half of 2026, the Group submitted a registration application for a non-compliant PTA drug-coated balloon catheter for the treatment of vascular stenosis and blockage in arteriovenous fistulas of hemodialysis patients , entering the vascular access maintenance field. . In the Regenerative Medical Biomaterials Bus iness segment, the Group obtained the product registration certificate for a dura mater patch u sed for repairing dura mater defects in January 2026. Two products for injectable cosmetic use, an i njectable tissue matrix filler and an injectable composite tissue matrix filler, which we submit ted for registration in 2025, are currently in the registration review pro cess. Clinical trials are ongoing for tis sue filler products used for tissue defect filling and repair. As of June 30, 2026, the Group has obtained 61 product regis tration certificates, c overing infusion sets, intravenous cannulas, hemodialyzer, hemoperfutor , hemodialysis equipment, breast tissue patches, absorbable oral repair membranes, bi ological patches, dura mater, enter al feeding devices, insulin pens, insulin needles, and blood transfusion devices. As of June 30, 2026, the Group owns 182 product patents and copyrights, including 68 patents rela ted to infusion sets, 89 patents and copyrights for blood purification products, and 25 pa tents for regenerative medical b iomaterial products, and we have – 31 –
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also applied for 65 new patents. The Group will c ontinue to focus on product innovation and R&D, following the strategy of ‘‘produce and focus our R&D efforts for a leading next generation of products ’’, focusing on the R&D innovation of medical devi ces to enhance our overall competitiveness in the industry. Expansion of Distribution Networks The Group leverages a nationwide professional sales network and a strong promotion team to fully empower three main segments. Our sales backbone ha s an average of ten years of industry experience, and nearly half of them have a medical education b ackground, ensuring professional and efficient communication with clinical end users. The Group closely follows policy directions, flexibly optimizing sales structures and bidding and ten dering strategies, while also deepening the ‘‘low cost, high quality ’’strategy and operating in a refined way to com prehensively improve business efficiency. Strategic Share Repurchase Plan At the annual general meeting of the Company held on June 26, 2026, the Board was granted a general mandate to repurchase the Company ’s shares on The Stock Exchange of Hong Kong Limited (the ‘‘Stock Exchange ’’), up to a maximum of 10% of the total issued shares (excluding treasury shares) as of the date of the annual general meeting (the ‘‘2026 Repurchase Mandate ’’). The Board has appointed dedicated staff of the Company to ca rry out the share repurchase under such mandate depending on market conditions. During the Relevant Period, the Company actively pr omoted the repurchase under the share repurchase plan announced by the Company on July 4, 2025 (the ‘‘2025 Share Repurchase Plan ’’) and the 2026 Repurchase Mandate. As of the date of this announc ement, the Company had repurchased a total of 40,718,000 shares, with the highest transaction pri ce at HK$1.40 per share, the lowest at HK$1.02 per share, and the total transaction amount approxima tely HK$47.888 million. Share repurchase helps improve the market liquidity of the Company ’s shares, provide some support for the share price, show the market that the management has confidence in the Company ’s long-term value, and enhance the flexibility of the capital struc ture. For details of the Company ’s share repurchases completed before the date of this announcement, including the number and price of the shares repurchased, please refer to the section headed ‘‘Purchase, Sale or Redemption of the Company ’s Listed Securities ’’ of this announcement. In the future, the Group will continue to review market changes and, in line with our cash flow conditions, optimize and advance the share repurch ase plan as appropriate, always aim to maximize shareholder value, flexibly use capi tal market tools, and effectively pr otect the interests and returns of our investors. – 32 –
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Financial Review Overview Six months ended June 30, 2026 2025 Change RMB’000 RMB’000 Revenue — Infusion Set Business 80,424 113,387 –29.1% — Blood Purification Business 308,451 297,444 3.7% — Regenerative Medical B iomaterials Business 5,181 3,542 46.3% Total Revenue 394,056 414,373 –4.9% Gross profit 189,903 212,779 –10.8% Gross profit margin 48.2% 51.3% Profit for the period 37,682 86,619 –56.5% Profit attributable to owners of the Company 14,692 65,999 –77.7% Adjusted profit for the period (1) 68,647 119,131 –42.4% Adjusted profit attributable to owners of the Company (1) 31,273 83,402 –62.5% Note: (1) Please refer to the section entitled ‘‘Non-HKFRS Measure — Adjusted Net Profit and Adjusted Profit Attributable to Owners of the Company ’’for more information about the non-HKFRS measures. Revenue The revenue of the Group decreased by 4.9% from a pproximately RMB414.4 million for the six months ended June 30, 2025 to approximate ly RMB394.1 million for the Relevant Period. The decline was primarily attributable to the decrease in sales from the Infusion Set Business, partially offset by an increase in sales from the Blood Purification Busin ess and the Regenerative Medical Biomaterials Business. Revenue from the Infusion Set Business amounted to ap proximately RMB80.4 million for the Relevant Period, representing a decrease of 29.1% from th e six months ended June 30, 2025. The decrease was mainly due to the significant decreas e in product prices, as the volume- based centralized procurement policy has been almost fully implemented from th e second half of 2025, and covers Beijing and other regions that account for a high proportion of the Infusion Set Business ’s sales. Despite a slight uptick in sales volume for the Relevant Period, it was ins ufficient to offset the sharper price decrease. – 33 –
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Revenue from the Blood Purification Business for the Relevant Period amounted to approximately RMB308.5 million, representing an increase of 3.7 % compared to approximately RMB297.4 million for the six months ended June 30, 2025. The increase w as mainly contributed by the growth in domestic market sales resulting from increased demand and m arket expansion, partially offset by a decrease in export sales revenue caused by a more competitive environment. Revenue from the Regenerative Medical Biomater ials Business amounted to approximately RMB5.2 million for the Relevant Period, mainly contributed by the increased sales of the biological patch and the breast tissue patch. Gross Profit The Group ’s gross profit decreased by 10.8% from appro ximately RMB212.8 milli on for the six months ended June 30, 2025 to approximat ely RMB189.9 million for the Relevant Period. The gross profit margin decreased from 51.3% for the six mont hs ended June 30, 2025 to 48.2% for the Relevant Period, mainly due to the decrease in the gross p rofit margin of the Infusion Set Business. The gross profit margin of the Infusion Set Business decreased from 59.4% for the six months ended June 30, 2025 to 39.3% for the Relevant Period, main ly due to the significant decrease in unit sales prices resulting from the expansion of implement ation areas under the volume-based procurement policy. The gross profit margin of the Blood Purification Business increased from 48.2% for the six months ended June 30, 2025 to 50.3% for the Relevant Peri od, primarily due to changes in product mix. The gross profit margin of the Regenerative Medi cal Biomaterials Busines s increased from 58.0% to 63.4% for the Relevant Period, reflecting the effec t of economies of scale as sales volume increased. Selling and Marketing Expenses Selling and marketing expenses de creased by 2.7% from approximately RMB43.8 million for the six months ended June 30, 2025 to approxi mately RMB42.6 million for the Relevant Period. The decrease was mainly attributable to the decr ease in selling and marketing expenses incurred by the Infusion Set Business, partially offset by the increase in selli ng and marketing expenses incurred by the Blood Purification Business and the Regener ative Medical Biomaterials Business. Selling and marketing expenses of the Infusion S et Business decreased fr om approximately RMB18.9 million for the six months ended June 30, 2025 to approximately RMB15.0 million for the Relevant Period due to the decrease in promotion ex penses as a result of sales contraction. Selling and marketing expenses o f the Blood Purification Busines s increased from approximately RMB22.6 million for the six months ended June 30, 2025 to approximately RMB23.4 million for the Relevant Period, which was mainly d ue to increased personnel expenses. – 34 –
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Selling and marketing expenses of the Regenerativ e Medical Biomaterials Business increased from approximately RMB2.3 million for the six mont hs ended June 30, 2025 to approximately RMB4.1 million for the Relevant Period. The increase was du e to increased staff costs, office and travelling expenses, in line with sales expansion. General and Administrative Expenses General and administrative expenses increased by 12.0% from approximately RMB83.5 million for the six months ended June 30, 2025 to approximately RMB93.5 million for the Relevant Period. The increase was mainly attributable to the increase in administrative expenses incurred by the group headquarters and the Infusion Set Business. The general and administrative expenses of the group headquarters and the Infusion Set Business increased by 33.2% from approximately RMB24.2 m illion for the six months ended June 30, 2025 to approximately RMB32.2 million fo r the Relevant Period. The increase was mainly due to the increase in professional service fees and prope rty repair and maintenance costs. The general and administrative expenses of the Bl ood Purification Business increased by 4.9% from approximately RMB37.6 million for the six mo nths ended June 30, 2025 to approximately RMB39.4 million for the Relevant Period. The increase was mainly due to the increase of RMB1.9 million in professional service fees related to the terminated Spin-off, as well as the increase in other routine operating expenses, partially of fset by the decrease in share-based compensation expense from approximately RMB9.3 million for the six mont hs ended June 30, 2025 to approximately RMB7.3 million for the Relevant Period. The general and administrative expenses of the Blood Purification Business inc luded amortisation of the intangible assets and depreciation of property, pl ant and equipment valuation surplus identified and recorded during the business combination ac counting process under HKFRSs, which amounted to approximately RMB10.8 million for the Relevant Period (approximately RMB10.8 million for the six months ended June 30, 2025). The general and administrative expenses of the Rege nerative Medical Biomate rials Business increased by 0.5% from approximately RMB21.7 milli on for the six months ended June 30, 2025 to approximately RMB21.8 million for the Relevant Period. The general and administrative expenses of the Rege nerative Medical Biomater ials Business included amortisation of the fair value increments on inta ngible assets identified and recognised during the business combination accountin g process under HKFRSs, which amoun ted to approximately RMB19.8 million for the Relevant Period (approximately RMB19.8 million for the six months ended June 30, 2025). During the accounting process for the acqui sition of Beijing Ruijian Biological, the Group recognized certain fair value increments on intangible assets totaling approximately RMB793.7 million. These intangible assets relate to certain products under development as at the date of acquisition. The amortisation was calculated using the straight-li ne method over a 20-year period, commencing upon the Group obtaining registration certificate for the prod ucts. Starting from August 1, 2024, amortisation has – 35 –
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commenced for all of the foresaid intangible asset s with fair value increments, as Beijing Ruijian Biological had obtained the registration certificate s for the relevant products and started preparing for the production and sales of such pr oducts. Accordingly, a fixed monthly amortisation (before income tax) of approximately RMB3.3 million was recorded i n the consolidated financial statements from August 2024 onward. R&D Expenses R&D expenses increased by 14.3% from approximat ely RMB22.5 million for the six months ended June 30, 2025 to approximately RMB25.7 million for t he Relevant Period, which was mainly due to the increase of R&D expenses incurred by the Regener ative Medical Biomaterials Business and the Infusion Set Business. R&D expenses of the Regenerative Medical Biomat erials Business increased from approximately RMB4.1 million for the six months ended June 30, 2025 to approximately RMB6.8 million for the Relevant Period. The increase was mainly due to th e increase in direct R&D expenses, as some R&D projects were at stages requiring more materials and external services. R&D expenses of the Infusion Set Business increas ed from approximately RMB6.0 million for the six months ended June 30, 2025 to approximately RMB7.1 m illion for the Relevant Period. The increase was mainly attributable to incre ased investment in R&D projects. R&D expenses of the Blood Purification Business s lightly decreased from approximately RMB12.4 million for the six months ended June 30, 2025 to approximately RMB11.8 million for the Relevant Period. The decrease was mainly because some R&D pr ojects have reached the capitalization stage, where costs are capitalized instead of being expensed. Other Income and Gains and Losses — Net Net other gains decreased by 63.3% from approxim ately RMB14.8 million for the six months ended June 30, 2025 to approxima tely RMB5.5 million for the Relevant Period, mainly due to (i) the increase in foreign exchange loss by RMB5.6 million resulting from the fluctuation of the exchange rate between RMB and US dollar, and (ii) the decrease of RMB4.4 million in rent al income and government grants. Fair Value Loss on Investment Properties Fair value loss on investment properties decrea sed from approximately RMB0.3 million for the six months ended June 30, 2025 to appr oximately RMB0.1 million for the Relevant Period. The fair value loss was mainly due to the decline of the rental market. Operating Profit Operating profit decreased by 54.9% from approxi mately RMB80.2 million for the six months ended June 30, 2025 to approximately RMB36.2 million for th e Relevant Period, which was the net result of – 36 –
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(i) the decrease of the operating profit generated by the group headquarters and the Infusion Set Business, from a profit of approximately RMB34.1 million for the six months ended June 30, 2025 to a loss of approximately RMB15.3 million for the Releva nt Period, due to the decrease in gross profit of the Infusion Set Business and the increases in prof essional service fees and foreign exchange loss of the group headquarters; (ii) the increase in the opera ting loss generated by the Regenerative Medical Biomaterials Business from approximately RMB24.8 m illion for the six months ended June 30, 2025 to approximately RMB29.2 million for the Relevant Pe riod as both its selling and marketing expenses and R&D expenses increased at a pace higher than the increase in its gross profit for the Relevant Period; and (iii) the increase of the operating profit ge nerated by the Blood Puri fication Business from approximately RMB70.9 million for the six mo nths ended June 30, 2025 to approximately RMB80.7 million for the Relevant Period due to the increase in gross profit. Finance Income — Net Net finance income decreased by 36.2% from appr oximately RMB22.9 million for the six months ended June 30, 2025 to approximate ly RMB14.6 million for the Rele vant Period. The decrease was mainly due to lower deposits interest rates and a lower balance of loans receivable. Income Tax Expenses Income tax expenses decreased by 20.3% from appr oximately RMB16.5 million for the six months ended June 30, 2025 to approximately RMB13.1 milli on for the Relevant Period, which was mainly due to the decrease in taxable profit. Profit for the Period and Profit Att ributable to Owners of the Company The profit for the period of the Group and profi t attributable to owners of the Company was approximately RMB37.7 million and RMB14.7 million for the Relevant Period, representing a decrease of 56.5% and 77.7% from RMB86.6 million and RMB66.0 million for the six months ended June 30, 2025, respectively. The decrease was mainly due to decreases of operating profit and finance income. Non-HKFRS Measure — Adjusted net profit and adjusted net profit attributable to owners of the Company To supplement our consolidated fina ncial information which are pres ented in accordance with HKFRS, we set forth below our adjusted net profit and adjusted net profit attributable to owners of the Company, each a non-HKFRS measure, as additional financial measures. Adjusted net profit and adjusted net profit attribu table to owners of the Company is defined as profit for the period or profit attributable to owners of the Company, as adjusted by adding back (i) share- based compensation expenses of the Blood Purificati on Business; (ii) professi onal services fee relating to the Spin-off (terminated); (iii ) amortization of fair value increm ents on intangible assets recognised in the acquisition of Beijing Ruijian Biologi cal; and (iv) income tax effects of non-HKFRS adjustments. – 37 –
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We believe that the presentation of non-HKFRS mea sures facilitates comparisons of operating p e r f o r m a n c ef r o mp e r i o dt op e r i o da n dc o m p a n yt oc o mpany by eliminating potential impact of certain items that the Group does not consid er indicative of the performance of the business of the Group. We believe that this measure provides useful informa tion to investors in understanding and evaluating the Group ’s consolidated results of operations in the same manner as they help our management. However, the use of non-HKFRS measures has limitations as an analytical tool, and should not be considered in isolation from, or as a substitu te for analysis of the Group ’s results as reported under HKFRS. In addition, this non-HKFRS financial measure may be defined differently from similar terms used by other companies and therefore may not be comparab le to similar measures used by other companies. The following table sets forth th e reconciliations of our non-HKFRS f inancial measures for the six months ended June 30, 2026 and 2025 to the nearest measure prepared in accordance with HKFRS. For the six months ended June 30, 2026 2025 change RMB’000 RMB’000 (unaudited) (unaudited) Profit for the period 37,682 86,619 –56.5% Add: Share-based compensation expenses of the Blood Purification Business (1) 11,296 14,269 Professional services fees relat ed to the Spin-off (terminated) 3,678 1,790 Amortization of fair value increment on intangible assets recognised in the acquisition of Beijing Ruijian Biological (2) 19,841 19,841 Income tax effects of non-HKFRS adjustments above (3,850) (3,388) Adjusted net profit 68,647 119,131 –42.4% Profit attributable to owners of the Company 14,692 65,999 –77.7% Add: Share-based compensation expenses of the Blood Purification Business (1) 5,406 6,919 Professional services fees relat ed to the Spin-off (terminated) 1,783 868 Amortization of fair value increment on intangible assets recognised in the acquisition of Beijing Ruijian Biological (2) 11,548 11,548 Income tax effects of non-HKFRS adjustments above (2,156) (1,932) Adjusted net profit attributable to owners of the Company 31,273 83,402 –62.5% – 38 –
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Notes: (1) The item represents the expenses rela ted to share-based payments granted t o employees of the Blood Purification Business. On April 18, 2024, the stock incentive pla n was approved at the general meeting of Sichuan Ruijian Medical. Under the stock incentive plan, a total of 6,332, 340 shares of Sichuan Ruijian M edical (approximately 2.06% shareholding percentage of Sichuan R uijian Medical) held by its shareholder and employee shareholding platform Ningbo Zhengyao Investment Management Center (Limited Partnership) ( 寧波正垚投資管理中心(有限合夥)) (‘‘Ningbo Zhengyao ’’) will be granted to eligible employees of Sichuan R uijian Medical. The exercise price per share granted is RMB1.783. All realised gains and corresponding yields of Ningbo Zhengyao will be distributed to the grantees. The vesting period is from the date of grant until the end of fourth year following the successful initial public offering of Sichuan Ruijian Medical, and the fair value of the shares granted to employees less amount paid by employees is recognized as expenses over the vesting period. For the six months ended June 30, 20 26, approximately RMB7.3 million, RMB3.4 million, RMB0.3 million and RMB0.3 million of share-based compensation expense was rec ognized as general and admini strative expense, selling and marketing expense, R&D expense, and manufacturing overheads, respectively. (2) The item represents the amortisation of fair value incremen ts on intangible assets identified and recognised through the business combination of Beijing Ruijian B iological. Please refer to the sectio n headed General and Administrative Expenses for details of this item. Trade and Other Receivables The Group ’s trade receivables primarily comprised the outstanding payment fro m credit sales. As of June 30, 2026, the trade and other receivables of the Group was approximately RMB147.6 million, representing a decrease of approxi mately RMB20.6 million as comp ared to approximately RMB168.1 million as of December 31, 2025, whi ch was mainly due to the decrease in trade and other receivables of the Blood Purification Business. Trade and other receivables of the Blood Purifica tion Business decreased from approximately RMB66.9 million as of December 31, 2025 t o approximately RMB40.5 milli on as of June 30, 2026, mainly due to collection of trade receivables, and the decreas e in overseas sales where longer credit periods are usually provided to the distributors due to time-c onsuming processes involved in cross-border orders. Trade and other receivables of the group headquart ers and the Infusion Set Business increased from approximately RMB99.5 million as of December 31, 2025 to approximately RMB104.9 million as of June 30, 2026, mainly due to the incr ease in prepayments and deposits, partially offset by the decrease in trade receivables caused by sales contraction and collection of trade receivables. The Group has selected to measure loss allowance s for trade receivables using HKFRS 9 simplified approach and established a provision matrix that was based on the Group ’s historical credit loss experience, adjusted for forward-looking factors sp ecific to the debtors and the economic environment. The details are disclosed in Note 19 to the interim c ondensed consolidated fina ncial statements for the Relevant Period. – 39 –
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The Group reviews the financial performance of the c ustomers with long aging receivables periodically and revises the credit terms granted to the customers based on credit risk analysis. Besides review of account receivables, the management may also use letter of collection and lawyer ’s letter to collect the receivables. The Group would also negotiate with customers to explore the use of debt agreement if there are higher risk of recoverability. In some cir cumstances, the internal legal department of the Group would be involved in collection o f receivables to explore the avai lability of legal actions, and to issue formal communication to the customer before e scalating the actions. Out of the trade receivables aged over 6 months that amounted to approximately RMB13.8 million at December 31, 2025, a total of approximately RMB7.6 million was subs equently received up to June 30, 2026. As at June 30, 2026, the Group had made loss allow ances of approximately RMB10.6 million (as at December 31, 2025: RMB12.6 million) on the trade re ceivables with a gross amount of approximately RMB63.2 million (as at December 31, 2025: RMB80.0 million). Inventories Inventories increased by 17.7% from approxima tely RMB145.2 million as at December 31, 2025 to approximately RMB170.8 million as at June 30, 2026, which was mainly due to the increase in inventories of the Blood Purification Bu siness and the Infusion Set Business. Inventories of the Blood Purifi cation Business increased from app roximately RMB93.1 million as at December 31, 2025 to approximately RMB112.0 million as at June 30, 2026, which was mainly due to stock of goods to meet the increased sales orders. Inventories of the Infusion Set Business inc reased from approximately RMB41.6 million as at December 31, 2025 to approximately RMB49.1 million as at June 30, 2026, which was mainly due to the slowdown in inventory turnover as a result of declining sales. Property, Plant and Equipment Property, plant and equipment mainly include buil dings and facilities, machinery and equipment and construction in progress. As at June 30, 2026, the property, plan t and equipment of the Group amounted to approximately RMB895.4 million, re presenting a decrease of approximately RMB9.6 million as compared to approximately RMB905.0 m illion as at December 31, 2025. The decrease was mainly the net result of construction in production lines, purchase of new production facilities and the depreciation. Investment Properties Investment properties, mainly co mprising factories and offices w hich are held by the Group for long- term rental yields. As at June 30, 2026, the inve stment properties of the Group amounted to approximately RMB260.9 million, representing a decrease by appr oximately RMB0.1 million as compared to approximately RMB261.1 million as at December 31, 2025. The decrease was mainly due to the fair value loss of the properties. The detaile d information regarding t he investment properties could be found in Note 14 to the interim condens ed consolidated fina ncial statements. – 40 –
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Intangible Assets and Goodwill The Group ’s intangible assets mainly i nclude development cost, technology know-how, trademarks, computer software and custo mer relationship. The Group ’s goodwill, technology know- how, trademarks and customer relationships are mainl y identified and recorded during the business combination accounting pro cess for the acquisitions of subsidiaries. The intangi ble assets are amortised with straight line method for 5 –20 years. The goodwill is subject to im pairment test at each period end. As at June 30, 2026, the net value of the Group ’s intangible assets and goodwill was approximately RMB1,557.0 million, representing a decrease of RMB25.5 million as comp ared to approximately RMB1,582.5 million as of December 31, 2025. The d ecrease was primarily the net result of amortisation of the intangible assets which am ounted to approximately RMB32.3 million (for the six months ended June 30, 2025: RMB32.5 million) and add ition of capitalised development costs which amounted to approximately RMB6.8 million (for the six months ended June 30, 2025: RMB6.9 million) for the Relevant Period. Loan Receivable As at June 30, 2026, the Company ’s gross amount of loan receiv able was approximately RMB180.0 million which includes a loan granted to an independent third party in April 2023 and extended in April 2026 as disclosed in the announcement of the Company dated April 20, 2023 and April 23, 2026. The detailed information regardin g the loan receivable, including th e collaterals and key terms, could be found in Note 17 to the interim condens ed consolidated fina ncial statements. Non-current Financial Assets As at June 30, 2026, the Group ’s non-current financial assets wa s approximately RMB58.3 million (December 31, 2025: RMB70.7 million), comprisin g investment in the H shares of Lepu Biopharma Co., Ltd. and an unlisted fund. The decrease was mai nly due to the decrease in the fair value of the investment in the H shares of Lepu Biopharma Co., Ltd . as a result of decrease in its share price. The detailed information regarding the financial a ssets could be found in Note 18 to the interim condensed consolidated financial statements. Financial Resources and Liquidity As at June 30, 2026, the Group ’s cash and bank balances amounted to approximately RMB1,828.0 million (December 31, 2025: RM B1,802.8 million), the Group ’s financial assets at fair value through profit or loss was nil (December 31, 2025: RM B5.0 million). As at June 30, 2026, the Group ’sb a n k borrowing balance was RMB15.0 million (Decemb er 31, 2025: RMB15.0 million). The bank borrowing carried a fixed interes t rate at 3.45% per annum. The Board is of the opinion that the Group is in a h ealthy financial position and has sufficient resources to support its operations and meet i ts foreseeable capital expenditures. – 41 –
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Pledge of Assets As at June 30, 2026, the Group ’s property, plant and equipment with an aggregate carrying amount of approximately RMB68.0 millio n and right-of-use assets with an aggregate carrying amount of approximately RMB5.5 million were pledged to secure general banking facilities granted to the Group. Saved as disclosed above, during t he Relevant Period, the Group did not enter into any off-balance sheet guarantees or other commitmen ts to guarantee the payment oblig ations of any third party. The Group did not have any interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to it or engages in leasin g or hedging, R&D or other services with it. Commitments As of June 30, 2026, the Group had a total capital commitment of approxima tely RMB11.9 million (December 31, 2025: RMB11.7 million), comprisin g mainly contracted capital expenditure for acquisition of property, plant and equipment. Capital Expenditure During the Relevant Period, the Group incurred capi tal expenditure of approximately RMB31.7 million (for the six months ended June 30, 2025: RMB49.7 m illion) on the expansion of the plants and procurement of equipment and intangible assets. Gearing Ratio The Group monitors capital on the basis of gearing ra tio. This ratio is calculated as total borrowing divided by total capital. Total borrowing is the c urrent bank borrowing as shown in the condensed consolidated statement of financial position. Total capital is calculated as ‘‘total equity ’’as shown in the condensed consolidated statement of f inancial position plus total borrowing. As at June 30, As at December 31, 2026 2025 RMB’000 RMB’000 Total borrowing 15,000 15,000 Total equity 4,758,451 4,853,733 Total capital 4,773,451 4,868,733 Gearing ratio 0.31% 0.31% Foreign Exchange Risk The Group mainly operates its business in the PRC a nd is exposed to foreign exchange risk arising from various currency exposures, primarily with re spect to the United States dollar and the Hong Kong dollar. Foreign exchange risk arises from foreign cur rencies held by certain overseas subsidiaries. The – 42 –
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Group did not hedge against any fluctuation in f oreign currency during the Relevant Period. Management may consider entering into curren cy hedging transactions to manage the Group ’s exposure towards fluctuations in exchange rates in future. Cash Flow and Fair Value Interest Rate Risk Other than bank balances with variable interest rates, and the loan receivables with fixed interest rate, the Group has no other significant interest-bear ing assets. The management does not anticipate any significant impact to interest-bea ring assets resulting from the cha nges in interest rates because the interest rates of bank balances are n ot expected to change significantly. The Group ’s interest rate risk arises from bank and other borrowings. Borrowing issued at variable rates and fixed rates expose the Group to cash flow interest ra te risk and fair value inte rest risk, respectively. As at June 30, 2026, it was estimated that a general increase or decrease of 100 ba sis points in interest rates, with all other variables hel d constant, would not affect the Group ’s profit for the Relevant Period (for the six months ended June 30, 2025: decrease or increase by RMBnil). The sensitivity analysis above has been determine d by assuming that the change in interest rates had occurred at the end of Relevant Period and had been ap plied to the exposure to int erest rate risk for the borrowings in existence on that date. The increas e or decrease of the 100 basis points represents management ’s assessment of a reasonably possible change i n interest rates over the period until the next annual reporting date. Contingent Liabilities As at June 30, 2026, saved as disclosed in Note 26 to the interim condensed consolidated financial statements, the Group did not have any material con tingent liabilities, guarantees or any litigations or claims of material importan ce, pending or threatened against any member of the Group. Credit Risk The carrying amounts of cash and cash equivalents, t rade and other receivables and loan receivables represent the Group ’sm a x i m u me x p o s u r et oc r e d i tr i s ki nr e l a t i on to its financial assets. The objective of the Group ’s measures to manage credit risk is to cont rol potential exposure to recoverability problems. The credit risk of bank balances is limited because t he counterparties are ban ks with good reputation and most of them are state-owned commercial banks in China or public listed companies. Most of the bank deposits of the Group are placed with comme rcial banks with an acceptable credit rating. – 43 –
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For trade and other receivables and loan receivabl es, management has a credit policy in place and the exposures to these credit risks ar e monitored on an ongoing basis. Mo st of trade and other receivables balances are due from stat e-owned enterprises or major customers with good repayment history. Details of the Group ’s trade and other receivables credit management are also discussed above under the heading of ‘‘Trade and Other Receivables ’’. Significant Investments As at June 30, 2026, the Group did not hold significa nt investments with a value of 5% or more of the Company ’s total assets. As at the date of this announcement, the Group does not have any plan for material investments or purchase of capital assets. EMPLOYEES The Group had approximately 1,433 employees as at June 30, 2026, as compared to 1,477 employees as at December 31, 2025. The Group enters into emp loyment contracts with its employees to cover matters such as position, term of employment, wage, e mployee benefits, liabilities for breaches and grounds for termination. Remuneration of the Group ’s employees includes basic salaries, a llowances, bonus and other employee benefits, and is determined with reference to the ir experience, qualificati ons and general market conditions. The emolument policy for the employee s of the Group is set up by the Board based on their merit, qualification and competence. INTERIM DIVIDEND In appreciation of the Shareholders ’ continuing support, the Board has declared the payment of an interim dividend of HK1.1 cents per share for the six months ended June 30, 2026 (for the six months ended June 30, 2025: HK4.4 cents per share) to the Sh areholders whose names appear on the register of members of the Company at the close of busin ess on November 6, 2026. The abovementioned interim dividend will be payable on December 2 , 2026. Such declaration of interim dividend demonstrates the Company ’sc o m m i t m e n tt od e l i v e r i n gs h a r e h o l d e rr e t u r n sa sw e l la si t so p t i m i s m about the Group ’s business prospects. CLOSURE OF REGISTER OF MEMBERS For determining the entitlement to the interim dividend for the six months ended June 30, 2026, the register of members of the Company will be closed from November 4, 2026 to November 6, 2026, both days inclusive, and during which period no transf er of shares of the Company will be registered. The record date will be November 6, 2026. In order to quali fy for the interim dividend, unregistered holders of shares of the Company should ensure that all share transfer documents accompanied by the corresponding share certifica tes are lodged with the Company ’s branch share registrar and transfer office in Hong Kong, Tricor Investor Services Limi ted, at 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong for registration no later than 4:30 p.m. (Hong Kong time) on November 3, 2026. – 44 –
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CORPORATE GOVERNANCE PRACTICES The Company recognizes the importance of good co rporate governance for enhancing the management of the Company as well as preserving the interests of its Shareholders as a whole. The Company has adopted the code provisions as set out in the ‘‘Corporate Governance Code ’’(the ‘‘Code ’’) as contained in Appendix C1 to the Listing Rules as its own code to govern its corporate governance practices. In the opinion of the Directors, the Company has com plied with the relevant code provisions contained in the Code during the Relevant Period, with the exception of code provision C.2.1 of the Code. According to code provision C.2.1 of the Code, the roles of chairman and chief executive should be separate and should not be performed b y the same person. Currently, Ms. Yue ’e Zhang performs both the roles of the chairman of the Board and the chie f executive officer of the Company. The Board believes that vesting the two roles in the same perso n provides the Company with strong and consistent leadership and facilitates the imple mentation and execution of the Group ’s business strategies which is in the best interests of the Company. Under the leadership of Ms. Yue ’e Zhang, the Board works effectively and performs its respon sibilities with all key and appropr iate issues discussed in a timely manner. In addition, as all major decisions are ma de in consultation with members of the Board and relevant Board committees, and the re are three independent non-ex ecutive Directors on the Board offering independent perspectives, the Board is of the view that there are adequate safeguards in place to ensure sufficient balance of powers within the Board. The Board shall nevertheless review the structur e and composition of the Board from time to time in light of prevailing circumstances, to maintain a hig h standard of corporate governance practices of the Company. MODEL CODE FOR SECURITIES TRANSACTIONS The Company has adopted the ‘‘Model Code for Securities Transacti ons by Directors of Listed Issuers ’’ (the ‘‘Model Code ’’) set out in Appendix C3 to the Listing Rul es as its own code of conduct regarding dealings in the securities of the Compa ny by each of the Directors and the Group ’s senior management who, because of his/her office or employment, is like ly to possess inside information in relation to the Company or its securities. Upon specific enquiry, all Direct ors confirmed that they have comp lied with the Mod el Code during the Relevant Period. In addition, the Company is not aware of any non-compliance of the Model Code by the senior management of the Group during the Relevant Period. PURCHASE, SALE OR REDEMPTION OF THE COMPANY ’S LISTED SECURITIES The Company has from time to time, repurchased the shares on the open market during the twelve- month period from July 4, 2025, subject to market c onditions and pursuant to the repurchase mandate obtained at the annual general meeting of the Compa ny held on June 10, 2025, and thereafter up to the date of this announcement subject t o market conditions and pursuan t to the 2026 Repurchase Mandate, 2026. The Board has designated specific staff of th e Company to implement the 2025 Share Repurchase – 45 –
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Plan and repurchase of shares pursuant to the 2026 Repurchase Mandate, subject to market conditions and pursuant to the repurchase mandates. The t iming, price and amount of repurchases will be determined based upon market cond itions and other factors. For further details, please refer to the relevant announcement of the Company dated July 4, 2025 and the circular of the Company dated April 24, 2026. During the Relevant Period and up to the date of t his announcement, the Company has repurchased on the Stock Exchange a total of 40,718,000 shares of the Company (the ‘‘Shares Repurchased ’’)a ta total consideration of approximately HK$47,888, 030. Details of the Shares Repurchased are summarized as follows: Month of repurchase Total number of shares repurchased Repurchase price per share Aggregate considerationHighest Lowest HK$ HK$ HK$ January 2026 677,000 1.28 1.28 866,560 February 2026 3,620,000 1.40 1.28 4,815,430 March 2026 1,079,000 1.05 1.02 1,125,830 April 2026 5,560,000 1.19 1.06 6,433,750 May 2026 20,010,000 1.18 1.14 23,535,820 June 2026 7,865,000 1.18 1.09 9,097,320 July 2026 (up to the date of this announcement) 1,907,000 1.09 1.02 2,013,320 A total of 30,734,000 shares repurchased have bee n cancelled on June 4, 2026, and an additional total of 9,614,000 shares repurchased have been cancelled on July 17, 2026. As at the date of this announcement, the Company holds 2,415,000 sh ares repurchased pending cancellation. Save as disclosed above, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company ’s listed securities (including sale of trea sury shares) during the Relevant Period and up to the date of this announcement. As at June 30, 2026 and up to the date of this announcem ent, there were no treasury shares held by the Company. REVIEW OF FINANCIAL INFORMATION Audit Committee The audit committee of the Company (comprisin g Mr. Wang Xiaogang, Mr. Chen Geng and Mr. Lin Junshan) has discussed with the management and the external auditor and reviewed the unaudited interim condensed consolidat ed financial information of th e Group for the Relevant Period. – 46 –
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Auditor The Company ’s external auditor, BDO Limited, has perfo rmed an independent review of the Group ’s interim condensed consol idated financial information for the Re levant Period in accordance with Hong Kong Standard on Review Engagements 2410, ‘‘Review of Interim Financial Information performed by the Independent Auditor of the Entity ’’. Based on their review, BDO Limited confirmed that nothing has come to their attention that causes them t o believe that the unaud ited interim condensed consolidated financial statement s are not prepared, in all material re spects, in accordance with Hong Kong Accounting Standard 34 ‘‘Interim Financial Reporting ’’. PUBLICATION OF RESULTS ANNOUNCEMENT AND INTERIM REPORT This results announcement is published on the website of the Stock Exchange at www.hkexnews.hk and on the website of the Company at www.pwmedtech.com . The interim report of the Company for the Relevant Period containing all the information req uired by the Listing Rules will be dispatched (if requested) to the Shareholders and publi shed on the above websites in due course. SUPPLEMENTAL INFORMATION ON THE ANNUAL REPORT OF THE COMPANY FOR THE YEAR ENDED DECEMBER 31, 2025 Reference is made to page 109 of the annual repor t of the Company for the year ended December 31, 2025 (the ‘‘Annual Report ’’). The Company would like to supplement that the related party transactions which were regarded as continuing connected transactions under Chapter 14A of the Listing Rules have been set out in the paragraph headed ‘‘Continuing Connected Transactions ’’in the Annual Report, and they have also complied with t he requirements in Chapter 14A of the Listing Rules. APPRECIATION On behalf of the Board, I would like to thank all our co lleagues for their diligence, dedication, loyalty a n di n t e g r i t y .Iw o u l da l s ol i k et ot h a n ka l lo u rS h a reholders, customers, bankers and other business associates for their trust and support. By Order of the Board PW Medtech Group Limited Yue’e Zhang Chairman & Chief Executive Officer Hong Kong, August 28, 2026 As at the date of this announcement, the Board comp rises one executive Director, namely, Ms. Yue ’e Zhang; two non- executive Directors, namely, Mr. Jiang Liwei and Mr. Lin Junshan; and three independent non-executive Directors, namely, Mr. Wang Xiaogang, Mr. Chen Geng and Ms. Wang Fengli. – 47 –