Livzon Pharmaceutical Group Inc.

Company Profile

(1) The pipeline layout in key therapeutic areas has begun to take shape, and core projects under research are accelerating towards realisation The Group continues to follow its established R&D strategy, always guided by clinical value, and closely monitors global cutting-edge technologies and new molecule developments for innovative drugs. In terms of therapeutic area layout, we continue to deepen product iteration and comprehensive deployment in advantageous areas such as gastrointestinal, assisted reproduction, and neuropsychiatric fields, while steadily expanding the R&D gradient in chronic disease areas such as anti-infection, metabolic, and cardiovascular and cerebrovascular diseases. In terms of technology platforms, we enrich the pipeline by leveraging advantageous platforms such as sustained-release microspheres, antibody drugs, and recombinant protein vaccines, utilise the capabilities of the national-level traditional Chinese medicine R&D platform to promote innovative TCM development, and continues to explore cutting-edge technology areas such as small nucleic acid drugs. In the first half of 2025, R&D investment was about RMB491 million, accounting for 7.82% of total operating revenue, providing solid support for the implementation of our strategy. As at 31 July 2025, the Company had a total of 39 formulation products under research. From the perspective of R&D stages, 13 projects were in the marketing application stage, 4 in Phase III clinical trials, 2 in the process validation/BE stage, and 4 in Phase II clinical trials. Relying on optimised R&D management and the deep application of AI digital tools, R&D achievements were intensively realised in the first half of the year. (2) Continuously improving a high-quality and efficient R&D system to support the “strong field + chronic disease” R&D layout strategy. 1. Efficient R&D execution: Based on a modular and flat R&D management system, the Company further strengthened full-process R&D management in the first half of the year. By implementing tiered and categorized management of projects under research, strengthening project initiation and re-evaluation, and enhancing overall coordination and resource allocation for core projects, the R&D efficiency of key projects has significantly improved. 2. “In-house R&D + BD” to quickly fill the pipeline: Leveraging the advantages of R&D transformation, quickly filling the pipeline and advancing clinical progress through BD introduction, in 2024 the Company introduced 6 projects via the BD, 5 of which have smoothly entered the clinical transformation stage, forming good synergy and complementarity with the existing in-house R&D pipeline. In the first half of 2025, BD activities continued to focus on core therapeutic areas such as gastrointestinal, neuropsychiatric, metabolic, and anti-infective diseases, conducting systematic research, with emphasis on frontier areas such as bispecific antibodies and siRNA, further enriching the reserve of potential projects and providing important support for the innovative pipeline. 3. AI-driven R&D efficiency improvement: In the first half of the year, the Company continued to strengthen the application of AI technology throughout the entire R&D process, deeply embedding AI into key stages such as disease target identification, drug design, pharmaceutical research, clinical research, and post-marketing surveillance, continuously expanding application boundaries. 4. Strengthen patent layout: In the first half of 2025, the Group filed a total of 23 patent applications, obtained 19 domestic patent grants, and obtained 4 overseas patent grants. “An aripiprazole sustained-release microsphere and its preparation method”, on the basis of being granted in the United States, Japan, South Korea, Russia, Kazakhstan, and Indonesia, was newly granted in Malaysia. As of 30 June 2025, the Company owned 936 valid granted patents both domestically and internationally, of which 490 were invention patents; there are currently 315 patents under examination. The patents cover new drug structures/sequences, salt forms/crystal forms, preparation processes, uses, and formulation recipes, providing comprehensive intellectual property protection for the Company’s innovative R&D. (3) Strengthen academic promotion, take a forward-looking approach in the commercialisation of new therapeutic area products, and support the goal of sustainable growth. In the first half of 2025, facing the dual challenges of policy changes in the pharmaceutical industry and market competition, the Company adhered to a compliance system as the foundation for development, took academic innovation as the core driving force, adopted digital transformation as an enhancement tool, and achieved a full-link marketing upgrade through efficient cross-departmental collaboration. The Company continued to focus on penetration of core products and exploration of market potential, building differentiated competitive advantages in key areas such as neuropsychiatry, gastroenterology, and gonadotropins, effectively driving sales conversion and laying a solid foundation for subsequent new product promotion, channel optimisation, and improvement of the compliance system. (4) Expand overseas markets and strengthen the entity operation capability of the “going global” strategy In the first half of 2025, the Group continued to accelerate the “going global” process, focusing on overseas market expansion and in-depth localization operations, and promoted significant growth in product exports through targeted marketing strategies, expanding sales channels,and advancing overseas drug registration applications. During the Reporting Period, the Company achieved overseas revenue of approximately RMB1.004 billion, an increase of 18.40% year-on-year, with overseas revenue accounting for about 16.01% of total operating revenue, up 2.51 percentage points from last year. (5) Lean production to reduce costs and increase efficiency, comprehensive assurance of quality and compliance The Company is committed to improving production efficiency and product quality. Through continuously deepening the construction of the production management system and promoting automation and informatization upgrades in its subsidiary manufacturing enterprises, as well as strengthening precise control over the entire production process, the Company has effectively improved production operation efficiency. Focusing on technological innovation and process iteration, while steadily increasing product output, the Company strictly controls quality and effectively enhances market competitiveness. (6) Practising the ESG concept to build a high-quality and sustainable future together The Group regards ESG governance as the cornerstone of sustainable development, strongly promoting the deep integration of corporate governance, social responsibility, and green development. The Company has won the highest AAA rating in MSCI ESG for two consecutive years, becoming the first Chinese enterprise in the global pharmaceutical industry to receive this rating, and also the only enterprise in the Chinese pharmaceutical industry to achieve an AAA rating for two consecutive years in performance scores; the Company scored 67 points in S&P Global and has been selected into the “Sustainability Yearbook” for three consecutive years. After being rated as the “Most Improved Company” in 2024, the Company went further in the first half of the year, ranking among the “Top 5% of Chinese Companies in S&P Global CSA Scores”.