China Resources Pharmaceutical Group Limited (03320) issued an announcement stating that on January 30, 2026, China Resources Boya Bio-Pharmaceutical Group Co., Ltd. released its performance forecast for the year ended December 31, 2025. The forecast indicates that the net profit attributable to shareholders of Boya Bio for the year is expected to be approximately RMB 105 million to RMB 136.5 million, compared to a net profit of approximately RMB 397 million in the same period last year. The net loss attributable to shareholders after deducting non-recurring gains and losses is projected to be between RMB 7.5 million and RMB 15 million, contrasting with a net profit of about RMB 302 million in the prior year. During the reporting period, Boya Bio firmly implemented the China Resources "1246" model and, leveraging the "Four Reshaping" initiatives—value, business, organizational, and spiritual reshaping—overcame challenges from a complex and volatile market environment. The company led academic development and mitigated historical risks, anticipating a year-on-year increase in operating revenue of 10.00% to 25.00%, primarily attributable to the acquisition of Green Cross Hong Kong Holdings Limited. The significant decrease in net profit attributable to shareholders for the year ended December 31, 2025, is mainly due to a downturn in the market for hyaluronic acid, a medical aesthetic product distributed by Anhui Green Cross Pharmaceutical Sales Co., Ltd. (a wholly-owned subsidiary of Green Cross Hong Kong Holdings Limited, which was acquired by Boya Bio in November 2024). This downturn resulted in a combined impairment of intangible assets (franchise rights) and goodwill totaling approximately RMB 300 million. Furthermore, the acquisition of Green Cross Hong Kong Holdings Limited led to the sale of inventory that had been revalued upwards upon acquisition, along with asset depreciation and amortization, which collectively impacted (reduced) Boya Bio's net profit by approximately RMB 80 million. Additionally, Boya Bio's blood products business was affected by factors such as the expansion of centralized procurement, DRG/DIP reforms, medical insurance cost controls, and intensified scrutiny on rational drug use. These factors led to a reduction in clinical prescriptions and decreased demand. Simultaneously, intensifying market competition caused a year-on-year decline in the gross profit margin of the blood products business during the reporting period. Boya Bio expects the impact of non-recurring gains and losses on its net profit for the reporting period to be approximately RMB 120 million, primarily influenced by government subsidies, gains from asset disposals, and wealth management income. For the year ended December 31, 2024, non-recurring gains and losses amounted to RMB 95 million.