Shenguan Announces 2025 Annual Results

For Immediate Release 30 March 2026

SHENGUAN HOLDINGS (GROUP) LIMITED

神冠控股（集團）有限公司

(Incorporated in the Cayman Islands with limited liability)

Shenguan Holdings Announces 2025 Annual Results Continuous Optimization of Product Portfolio and Steady Consolidation of Foundation for High-Quality Development

(30 March 2026 - Hong Kong) Shenguan Holdings (Group) Limited ("Shenguan Holdings" or the "Company", Stock Code: 00829.HK) announces the audited consolidated annual results for the year ended 31 December 2025 (the "Year") of the Company and its subsidiaries (collectively referred to as the "Group").

‌During the Year, the Group achieved revenue of approximately RMB1,023.3 million; gross profit of approximately RMB104.7 million; and a gross profit margin of approximately 10.2%. Cost of sales includes inventory write-offs and provisions of approximately RMB46.4 million. The increase in inventory write-offs and provisions was mainly attributable to the Group's large-scale product trial production and equipment renovation for the research and development of new products and installation of new production lines during the period from 2022 to 2024, and the inventories of finished trial products have not yet been fully digested by the market.

‌Income tax expenses were approximately RMB31.3 million for the Year. It was significantly higher than that for the Prior Year, mainly due to the adjustments in the Group's overall financial planning between the companies in the PRC and Hong Kong. One of the Hong Kong companies within the Group (the "HK Subsidiary") has already repaid all interest-bearing loans to another company in the PRC within the Group. The source of repayment funds for the HK Subsidiary came from dividends paid by one of its PRC subsidiaries, resulting in expenses and provisions for the PRC dividend withholding tax.

‌In light of the above, the Group recorded loss attributable to owners of the parent for the Year of approximately RMB69.8 million, as compared to profit attributable to owners of the parent for the Prior Year of approximately RMB26.7 million.

During the Year, focusing on the six products in the "fried", "crispy", "fresh", "tender", "bright" and "colorful" series, the Group actively promoted the market promotion of new products, achieving significantly improved market recognition. Sales of new products steadily increased, the trend of customers gradually switching from old products to new ones is also quite evident. New product sales accounted for more than 40% of total sales volume, further accelerating the optimization of the sausage casing product structure and injecting new momentum into the Group's high-quality development.

On the production front, the Company actively addressed the challenges of regulatory requirements transition from other food categories to meat product manufacturing, systematically advancing rectification and cleanliness improvements. It comprehensively carried out on-site production rectification, cleaning and sanitation, as well as production system deep cleaning to strengthen fixed-position management and on-site hygiene standards. At the same time, to resolve those issues such as insufficient raw material supply, fluctuations in raw material quality, and workforce gaps caused by production line expansion, the Company optimized production scheduling, dynamically adjusted production processes, and outsourced auxiliary operations. These measures effectively unlocked existing production capacity, ensuring smooth and stable operations throughout the Year.

During the Year, the Group also recorded significant growth in sales in business segments other than collagen sausage casings, representing an increase of approximately 44.1% as compared to the year ended 31 December 2024 (the "Prior Year"). The Group performed particularly well in the polymer collagen medical biomaterials segment, with significant increases in production volume, sales, and profits. The endotoxin content of the Group's medical collagen raw materials extracted through its proprietary technology was only 0.01EU/ml, which is better than the 0.5 EU/ml standard set by the U.S. Food and Drug Administration. For the Class III medical device product licence for "collagen bone filling biomaterials (artificial bone) (膠原 蛋白骨填充材料(人工骨))", the Company is actively advancing the relevant application procedures and has achieved progress. Clinical trials for the dental medical collagen sponge (牙科醫用膠原蛋白海綿) have been completed, and the Company is currently preparing for the relevant registration application. Other research and development projects are also progressing steadily as scheduled, with all tasks advancing in an orderly and accelerated manner.

The Group continues to deepen and diversify its layout centered on core collagen technology:

1. In the collagen sausage casings sector, it will accelerate the construction of high-end sausage casing production lines and digital and intelligent transformations to meet market demand for high-end sausage casing products, while further enhancing production efficiency and quality control capabilities, and reducing production costs;

2. The Group will actively expand the innovative applications of collagen in areas such as food products, skincare products, and polymer collagen medical biomaterials, accelerating the cultivation of new economic growth points and unveiling a second growth curve;

3. To target the upgrading meat product market, and leveraging the Group's existing equipment, technological system and well-established sales channels, proactively drive the R&D and production of collagen compound ingredients (fillers for sausage production), so as to achieve resource synergy and capability reuse, expand into new markets with relatively low investment, and improve the conversion efficiency of existing resources.

The Group believes that the above measures will continue to foster the sustainable development of the Company, generate new economic benefits, enhance the Group's overall competitiveness and deliver attractive returns to shareholders.

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About Shenguan Holdings (Group) Limited

Shenguan Holdings (Group) Limited is a manufacturing company focused on collagen products, dedicated to the development of core collagen technologies. Its primary operations in China involve the production and sale of edible collagen sausage casings. Since 2015, the Group has further expanded its business into collagen-based food products, skincare products, and medical biomaterials. The Group is listed on the Main Board of The Stock Exchange of Hong Kong Limited.

For more information about Shenguan Holdings (Group) Limited, please visit the official website:

http://www.shenguan.com.hk/

This press release is distributed by Wonderful Sky Financial Group Limited on behalf of Shenguan Holdings (Group) Limited.

For further information, please contact: Wonderful Sky Financial Group Ltd. Email：po@wsfg.hk

Tel：Angie Li (852) 6150 8598 / Lynne Jin (852) 5471 1140