Chongqing · China: On January 16, 2022, Porton Pharma Solutions Ltd. released the "2021 Annual Performance Forecast". The company expects that revenue and net profit will continue to maintain strongly growth in the year of 2021.

2021 Annual Performance Forecast

Revenue

YoY Change +45%~50%

We expect to achieve revenue of RMB 3,004.22 million to RMB 3,107.81 million for the whole year, comparing with RMB 2,071.88 million in 2020.

Net Profit

YoY Change +54%~64%

We expect to realize a net profit attributable to shareholders of RMB 500 million to RMB 532 million for the year, comparing with RMB 324.42 million in 2020.

Net Profit after deducting extraordinary gain/loss items

YoY Change +80%~90%

We expect to realize a net profit of RMB 518.8 million to RMB 547.65 million attributable to shareholders after deducting non-recurring gains and losses, and comparing with RMB 288.23 million in 2020.

In 2021, the impact of non-recurring gains and losses on net profit will be about RMB -7 million. and comparing with RMB 36.19 million in 2020.

Pre-audit of Performance Forecast

The financial data related to this performance announcement has not been audited by certified public accountants.

Explanation of the Reasons for Changes in Performance

In 2021, under the background of the stable growth of the global pharmaceutical pipeline and the steadily increasing trend of pharmaceutical outsourcing, Porton continue to expand and enrich its product pipeline, and improve its technology capabilities and long-turn and excellent delivery capabilities. It is expected that the revenue will increase by 45%-50% compared with the same period last year.

At the same time, with the further improvement of the company's capacity utilization rate and operational efficiency, as well as the further optimization of the product structure, Porton’s profitability has been continuously improved. It is expected that the net profit attributable to shareholders will increase by 54%-64% YoY in 2021, and the net profit attributable to shareholders after deducting non-recurring gains and losses in 2021 is expected to increase by 80%-90% YoY.

In 2021, Porton’s two new business segments of DP CDMO and GTC CDMO continue to "building capabilities and reputation, expand the market", and those two segments are still in a loss-making stage. For this reason above, the company's consolidated statement of net profit attributable to shareholders will be reducing about 100 million Yuan.

Other Relevant Instructions

This performance forecast is based on the preliminary calculation of the company's finance department, and the specific financial data will be disclosed in detail in the company's 2021 Annual Report.