Q2 2026 Lotus Pharmaceutical Co Ltd Earnings Call

August 14, 2026

Speaker #1: 大家好，欢迎参加今天Lotus Pharmaceutical美食制药2026年第二季度及上半年业绩线上说明会。我是Morgan Stanley中国生物科技以及台湾医疗健康行业分析师Jack Lin。今天的说明会将会以英文及中文双语形式进行，管理层的业绩报告将以英文进行，并提供中文字幕。问答环节将以中英文双语进行。 Good afternoon, everyone. Thank you for joining today's Lotus Pharmaceutical Q2 2026 and Q1 2026 results webcast. This is Jack Lin, China Biotech and Taiwan Healthcare analyst at Morgan Stanley.

[Analyst] (Morgan Stanley): 大家好，欢迎参加今天Lotus Pharmaceutical美时制药2026年第二季度及上半年业绩线上说明会。我是Morgan Stanley中国生物科技以及台湾医疗健康行业分析师Jacqueline，今天的说明会将以英文及中文双语形式进行。管理层的业绩报告将以英文进行，并提供中文字幕。问答环节将以中英文双语进行。Good afternoon, everyone. Thank you for joining today's Lotus Pharmaceutical second quarter 2026 and first half 2026 results webcast. This is Jacqueline, China Biotech and Taiwan Healthcare analyst at Morgan Stanley.

Jack Lin: [Foreign language] Good afternoon, everyone. Thank you for joining today's Lotus Pharmaceutical Q2 2026 and H1 2026 results webcast. This is Jack Lin, China Biotech and Taiwan Healthcare analyst at Morgan Stanley.

Speaker #1: Today's webcast will be conducted in both English and Mandarin. Management's prepared remarks will be delivered in English, with Chinese subtitles available. The Q&A session will be conducted in both languages.

[Analyst] (Morgan Stanley): Today's webcast will be conducted in both English and Mandarin. Management's prepared remarks will be delivered in English with Chinese subtitles available.

Jack Lin: Today's webcast will be conducted in both English and Mandarin. Management's prepared remarks will be delivered in English with Chinese subtitles available. The Q&A session will be conducted in both languages.

[Analyst] (Morgan Stanley): The Q&A session will be conducted in both languages. 在会议开始之前简单提示，本次电话会议仅面向 Morgan Stanley 客户，并不面向媒体成员。如果您是媒体成员，请另行与我们联系。有关重要披露，请参阅 www.morganstanley.com/researchdisclosures。本会议将分为两个部分，首先由管理层进行行业报告，之后进入问答环节。 Before we begin, please note this call is intended for Morgan Stanley clients and not for members of the press. If you are a member of the press, please reach out separately. For important disclosures, please see www.morganstanley.com/researchdisclosures. We'll begin with prepared remarks on management followed by a Q&A session. Lotus 2026 年第二季度营收及上半年累计营收双双创下历史新高，主要受惠于 Alvogen 收购及 B2B 销售，以及第二季获利表现比第一季有所改善。 Lotus delivered another strong quarter in Q2 2026, with both quarterly and H1 revenue reaching new records driven by acquisition of Alvogen and B2B sales, with Q2 profitability also improving sequentially. 今天我们也很高兴邀请到管理层与大家进一步分享第二季及上半年业绩、近期策略进展，以及对 2026 年下半年的展望。今日出席的会议的管理层包括执行长 Petar Vasilev，集团财务长 Tunie Zaku，以及投资人关系主管 Jeffrey Tsang。 We're very pleased to have the management team with us today to walk through the Q2 and H1 results, recent strategic progress and the outlook for the remainder of 2026. Joining to us today are Petar Vazharov, CEO, Tunie Zaku, Group CFO, and Jeffrey Tsang, Head of IR.

Speaker #1: 在会议开始之前，简单提示：本次电话会议仅用于摩根士丹利客户，并不面向媒体成员。如果您是媒体成员，请另行与我们联系。有关重要披露，请参阅 www.morganstanley.com/researchdisclosures。本次会议将分为两个部分：首先由管理层进行行业报告，之后进入问答环节。 Before we begin, please note this call is intended for Morgan Stanley clients and not for members of the press. If you are a member of the press, please reach out separately.

Jack Lin: [Foreign language]

Jack Lin: Before we begin, please note this call is intended for Morgan Stanley clients and not for members of the press. If you are a member of the press, please reach out separately. For important disclosures, please see www.morganstanley.com/researchdisclosures. We'll begin with prepared remarks on management followed by a Q&A session.

Speaker #1: For important disclosures, please see www.morganstanley.com/researchdisclosures. We will begin with prepared remarks on management, followed by a Q&A session. Lotus' earlier 2026年第二季度营收及上半年累计营收双双创下历史新高，主要受惠于Alverton收购及B&B销售，以及第二季获利表现第一季有所改善。Lotus delivered another strong quarter in Q2 2026, with both quarterly and first half revenue reaching new records.

Jack Lin: [Foreign language]

Jack Lin: Lotus delivered another strong quarter in Q2 2026, with both quarterly and H1 revenue reaching new records driven by acquisition of Alvogen and B2B sales, with Q2 profitability also improving sequentially.

Speaker #1: Driven by the acquisition of Alverton and B2B sales, with Q2 profitability also improving sequentially. 进一步，我们也很高兴邀请到管理层与大家进一步分享第二季及上半年业绩、近期策略进展，以及对2026年下半年的展望。今日出席会议的管理层包括执行长 Petar Vasilov、集团财务长 Tunis Zaku，以及投资人关系主管 Jeffrey Tang。We're very pleased to have the management team with us today.

Jack Lin: [Foreign language]

Jack Lin: We're very pleased to have the management team with us today to walk through the Q2 and H1 results, recent strategic progress and the outlook for the remainder of 2026. Joining to us today are Petar Vazharov, CEO, Tunie Zaku, Group CFO, and Jeffrey Tsang, Head of IR.

Speaker #1: To walk through the Q2 and Q1 results, recent strategic progress, and the outlook for the remainder of 2026. Joining us today are Petar Vasilov, CEO; Tunis Zaku, Group CFO; and Jeffrey Tang, Head of IR.

Speaker #1: 那么接下来我先把时间交给Petar，请开始今天的分享。Petar，请开始。And with that, I'll also turn the call over to Petar to begin with their prepared remarks. Please go ahead, Petar.

[Analyst] (Morgan Stanley): I will first give the floor to Petar to start today's sharing. Petar, please begin. With that, I'll also turn the call over to Petar to begin with the prepared remarks. Please go ahead, Petar.

Jack Lin: [Foreign language]

Jack Lin: With that, I'll also turn the call over to Petar to begin with the prepared remarks. Please go ahead, Petar.

Speaker #2: Good morning and good afternoon, everyone. Thank you for joining us today. I'm pleased to report that Lotus delivered record revenue in the first half of the year, reaching $17.5 billion and increasing 84% year-on-year.

Petar Vazharov: Good morning and good afternoon, everyone, and thank you for joining us today. I'm pleased to report that Lotus delivered record revenue in the H1 of the year, reaching TWD 17.5 billion, an increase of 84% year-on-year. In the Q2, revenue also reached a new quarterly high of TWD 8.8 billion, up 2% from the Q1. Adjusted EBITDA also grew strongly in the H1, increasing 50% year-on-year to TWD 6.3 billion. Q2 adjusted EBITDA reached TWD 3.3 billion, representing a 13% increase compared with the Q1. The strong performance in both revenue and EBITDA reflects the strength of our underlying business, supported by the successful acquisition of Alvogen and continued growth in our B2B markets. Turning to adjusted net profit, which excludes foreign exchange losses on certain one-off tax items, we also saw sequential improvement in the Q2.

Speaker #2: In the second quarter, revenue also reached a new quarterly high of $8.8 billion, up 2% from the first quarter. Adjusted EBITDA also grew strongly in the first half, increasing 50% year-on-year to $6.3 billion. Second quarter adjusted EBITDA reached $3.3 billion, representing a 13% increase compared with the first quarter.

Speaker #2: The strong performance in both revenue and EBITDA reflects the strength of our underlying business, supported by the successful acquisition of Alverton and continued growth in our B2B markets.

Speaker #2: Turning to adjusted net profit, which excludes foreign exchange losses and certain one-off tax items, we also saw sequential improvement in the second quarter. Second quarter adjusted net profit reached $790 million, representing a 13% increase compared to the first quarter.

Petar Vazharov: Second quarter adjusted net profit reached TWD 790 million, representing a 13% increase compared to Q1. On the same adjusted basis, H1 adjusted net profit was TWD 1.5 billion, down 42% year-on-year. The year-on-year decline was mainly driven by the higher finance costs following the Alvogen acquisition. Adjusted EPS followed a similar pattern. Q2 adjusted EPS improved 13% quarter-on-quarter to TWD 3.04, while H1 adjusted EPS was TWD 5.74, down 42% year-on-year. I am pleased with the progress our team delivered in H1. Through disciplined execution, we achieved record revenue, strong profit growth, and sequential improvement across all financial metrics in Q2, providing a solid foundation for continued growth in H2 of the year. For the remainder of the year, our focus remains on execution.

Petar Vazharov: Q2 adjusted net profit reached TWD 790 million, representing a 13% increase compared to Q1. On the same adjusted basis, H1 adjusted net profit was TWD 1.5 billion, down 42% year-on-year. The year-on-year decline was mainly driven by the higher finance costs following the Alvogen acquisition. Adjusted EPS followed a similar pattern. Q2 adjusted EPS improved 13% quarter-on-quarter to TWD 3.04, while H1 adjusted EPS was TWD 5.74, down 42% year-on-year. I am pleased with the progress our team delivered in H1. Through disciplined execution, we achieved record revenue, strong profit growth, and sequential improvement across all financial metrics in Q2, providing a solid foundation for continued growth in H2 of the year. For the remainder of the year, our focus remains on execution.

Speaker #2: On the same adjusted basis, first-half adjusted net profit was $1.5 billion, down 42% year-on-year. The year-on-year decline was mainly driven by higher finance costs following the Alverton acquisition.

Speaker #2: Adjusted EPS followed a similar pattern. Second quarter adjusted EPS improved 13% quarter-on-quarter to $3.04, while first half adjusted EPS was $5.74, down 42% year-on-year.

Speaker #2: I'm pleased with the progress our team delivered in the first half. Through disciplined execution, we achieved record revenue, strong profit growth, and sequential improvement across all financial metrics in the second quarter.

Speaker #2: Providing a solid foundation for continued growth in the second half of the year. For the remainder of the year, our focus remains on execution.

Speaker #2: This includes executing the remaining planned launches and progressing our capital structure optimization and refinancing initiatives, as we work to lower finance costs and strengthen financial flexibility toward year-end and into 2027.

Petar Vazharov: This includes executing the remaining planned launches and progressing our capital structure optimization and refinancing initiatives as we work to lower finance costs and strengthen financial flexibility toward year-end and into 2027. Beyond the financial performance, we continue to advance our R&D pipeline products and transactions. Cabozantinib, one of our most important oncology pipeline products, continues to advance as planned. Our 505(b)(2) application has been accepted for review by the FDA with a regulatory target date in December 2026. We also filed with the Paragraph IV certification and the window for the innovator to bring a patent action has passed with no suit filed, therefore no 30-month stay applies to our application. This is a milestone because it gives us a clearer regulatory path for important US oncology opportunity. In addition, we successfully filed the first generic version of XOFLUZA, an oral antiviral treatment for influenza.

Speaker #2: Beyond the financial performance, we continue to advance our R&D pipeline products and transactions. Capacity NIP, one of our most important oncology pipeline products, continues to advance as planned.

Speaker #2: Our 505(b)(2) application has been accepted for review by the FDA, with a regulatory target date in December 2026. We also filed with the Paragraph IV certification, and the window for the innovator to bring a patent action has passed with no suit filed.

Speaker #2: Therefore, no 30-month stay applies to our application. This is a milestone because it gives us a clearer regulatory path for important U.S. oncology opportunities.

Speaker #2: In addition, we successfully filed the first generic version of SOPHUSA, an oral antiviral treatment for influenza. Our baloxavir tablet has now received U.S. FDA approval, representing an important addition to the influenza antiviral treatment options in the U.S.

Petar Vazharov: Our baloxavir tablet has now received US FDA approval, representing an important addition to the influenza antiviral treatment options in the US market. Commercial launch will be within the terms of a confidential agreement for this product. Importantly, both baloxavir and cabozantinib were developed internally, underscoring the strength of our R&D organization and our capabilities to advance complex programs from development through regulatory approval. In addition to these products, we have filed two more products in the US. While we cannot disclose the products at this time, I can share that one of them is a potential first-to-file generic opportunity with 180 days exclusivity, and the other is a key 505(b)(2) product. Both are high-value products in our pipeline. More broadly, our R&D team continued to make strong progress across the development pipeline during H1.

Speaker #2: Market. Commercial launch will be within the terms of a confidential agreement for this product. Importantly, both Baloxavir and Capacity NIP were developed internally, underscoring the strength of our R&D organization and our capabilities to advance complex programs from development through regulatory approval.

Speaker #2: In addition to these products, we have filed two more products in the U.S. While we cannot disclose the products at this time, I can share that one of them is a potential first-to-file generic opportunity with 180 days of exclusivity, and the other is a key 505(b)(2) product.

Speaker #2: Both are high-value products in our pipeline. More broadly, our R&D team continues to make strong progress across the development pipeline during the first half.

Speaker #2: We initiated three new development projects, completed eight pilot bio-studies, completed four submission batches, and completed dosing in a Phase I study for an orphan indication project.

Petar Vazharov: We initiated three new development projects, completed eight pilot bio-studies, completed four submission batches, and completed dosing in a phase I study for an orphan indication project. On the business development front, in May, we signed the acquisition agreement for Uro-Vaxom in Korea, an oral immunotherapy for the prevention of recurrent urinary tract infections with an established clinical profile and a long history of use in the market. According to IQVIA, its market size in Korea was around $12 million USD in 2025. We began distributing the product in July while we await the marketing authorization to be transferred later this year. Once the MA transfer is completed, we will assume the commercial responsibility for the product. This will allow us to leverage our existing market presence and customer relationships, improve execution, and maximize the value of the product.

Speaker #2: On the business development front, in May we signed the acquisition agreement for Urovaxome in Korea—an oral immunotherapy for the prevention of recurrent urinary tract infections, with an established clinical profile and a long history of use in the market.

Speaker #2: According to AcuVia, its market size in Korea was around $12 million in 2025. We began distributing the product in July, while we await the marketing authorization to be transferred later this year.

Speaker #2: Once the MA transfer is completed, we will assume the commercial responsibility for the product. This will allow us to leverage our existing market presence and customer relationships, improve execution, and maximize the value of the product.

Speaker #2: We also plan to initiate the technology transfer and manufacture the product in-house. We should improve plant utilization and operational efficiency. Together, these actions are expected to improve product economics and margins over time.

Petar Vazharov: We also plan to initiate the technology transfer and manufacture the product in-house, which would improve plant utilization and operational efficiency. Together, these actions are expected to improve product economics and margins over time. We have also received approval for SERPLUMA in Korea for the first-line treatment of extensive stage small cell lung cancer. SERPLUMA is an anti-PD-1 immuno-oncology therapy, and this approval brings an important new treatment option to patients with significant unmet medical needs. It also further strengthens our oncology portfolio in Korea and reinforces our position in specialty care. Finally, on M&A, we completed the acquisition of Sandoz Philippines business in July. This acquisition adds a local commercial platform, expands our branded generics and biosimilar portfolio, and brings a highly experienced local team with strong market relationships.

Speaker #2: We have also received approval for Serpluma in Korea for the first-line treatment of extensive-stage small cell lung cancer. Serpluma is an anti-PD-1 immuno-oncology therapy, and this approval brings an important new treatment option to patients with significant unmet medical needs.

Speaker #2: It also further strengthens our oncology portfolio in Korea and reinforces our position in specialty care. Finally, on M&A, we completed the acquisition of the Sandoz Philippine business in July.

Speaker #2: This acquisition adds a local commercial platform, expands our branded generics and biosimilar portfolio, and brings a highly experienced local team with strong market relationships.

Speaker #2: The Philippines is one of our key markets in Southeast Asia, and this transaction strengthens our access to hospital and specialty care channels while providing a stronger foundation for future growth in the country and across the region.

Petar Vazharov: The Philippines is one of our key markets in Southeast Asia, and this transaction strengthens our access to hospital and specialty care channels while providing a stronger foundation for future growth in the country and across the region. Let me now turn to our pipeline progress so far in 2026. Year to date, we completed 59 submissions, received 49 approvals, and launched 250 SKUs. I will focus on some of the key items for the Q2. Starting with filings, our key new filings included VYZULTA, or azacitidine, in the Philippines. As a reminder, VYZULTA is an innovative, FDA-approved, once-daily eye drop for the treatment of presbyopia in adults. We also filed our in-house developed product, Vosoritide, or vosoritide, in Thailand. Both products are innovative in their respective markets, and they reflect our continued progress in expanding higher-value product opportunities across Asia.

Petar Vazharov: The Philippines is one of our key markets in Southeast Asia, and this transaction strengthens our access to hospital and specialty care channels while providing a stronger foundation for future growth in the country and across the region. Let me now turn to our pipeline progress so far in 2026. Year-to-date, we completed 59 submissions, received 49 approvals, and launched 250 SKUs. I will focus on some of the key items for the Q2. Starting with filings, our key new filings included VYZULTA, or azacitidine, in the Philippines. As a reminder, VYZULTA is an innovative, FDA-approved, once-daily eye drop for the treatment of presbyopia in adults. We also filed our in-house developed product, Vosoritide, or vosoritide, in Thailand. Both products are innovative in their respective markets, and they reflect our continued progress in expanding higher-value product opportunities across Asia.

Speaker #2: Let me now turn to our pipeline progress so far in 2026. Year to date, we completed 59 submissions, received 49 approvals, and launched 250 SKUs.

Speaker #2: Our focus on some of the key items for the second quarter: starting with filings, our key new filings included this for acyclinin in the Philippines. As a reminder, this is an innovative, FDA-approved, once-daily eye drop for the treatment of presbyopia in adults.

Speaker #2: We also filed our in-house developed product, Bosetus or Bosetinib, in Thailand. Both products are innovative in their respective markets, and they reflect our continued progress in expanding higher-value product opportunities across Asia.

Speaker #2: Moving to approvals, we received two important approvals in the United States during the quarter. First was the approval of Nintinib, supporting our day-one launch in the market.

Petar Vazharov: Moving to approvals, we received two important approvals in the United States during the quarter. First was the approval of nintedanib, supporting our Day 1 launch in the market. We also received US FDA approval for baloxavir tablets, as I mentioned earlier. Moving on to launches, our key launches in the Q2 included nintedanib in the US and Taiwan, vosoritide in Taiwan, and enzalutamide in South Korea and Brazil. Overall, our team executed well across the product life cycle during the quarter, achieving important milestones from filings and approvals to the successful supply of products to the market. I will now turn to an overview of our active pipeline projects. Today, we have 135 active projects across the pipeline. These projects originate from both internal R&D and business development activities. Collectively, these projects address a market opportunity of more than $125 billion US.

Speaker #2: We also received U.S. FDA approval for Baloxavir tablets, as I mentioned earlier. Moving on to launches, our key launches in the second quarter included Nintinib in the U.S.

Speaker #2: and Taiwan, Bosutinib or Bosutinib in Taiwan, and enzalutamide in South Korea and Brazil. Overall, our team executed well across the product lifecycle during the quarter, achieving important milestones from filings and approvals to the successful supply of products to the market.

Speaker #2: I will now turn to an overview of our active pipeline projects. Today, we have 135 active projects across the pipeline. These projects originate from both internal R&D and business development activities.

Speaker #2: Collectively, these projects address a market opportunity of more than $125 billion. Importantly, the strength of the pipeline is reflected not only in the number of projects but also in the size of the opportunities.

Petar Vazharov: Importantly, the strength of the pipeline is not only reflected in the number of projects, but also in the size of the opportunities. More than 80% of our active projects have a strong competitive profile at launch. These are projects where we expect a more favorable competitive environment, whether through anticipated exclusivity, limited competition, or participation in the first wave of market entrants. Approximately one-third of our projects have already been filed or approved, reflecting a well-balanced pipeline between advanced stage programs and those currently in development. Turning to launch timing, we currently have 50 projects expected to launch in the near term through 2028, representing more than one-third of our active pipeline. A further 49 projects are expected to launch in the midterm period between 2029 and 2031, while 36 projects are expected in the longer-term period from 2032 onwards.

Speaker #2: More than 80% of our active projects have a strong competitive profile at launch. These are projects where we expect a more favorable competitive environment, whether through anticipated exclusivity, limited competition, or participation in the first wave of market entrants.

Speaker #2: Approximately one-third of our projects have already been filed or approved, reflecting a well-balanced pipeline between advanced-stage programs and those currently in development. Turning to launch timing, we currently have 50 projects expected to launch in the near term through 2028, representing more than one-third of our active pipeline.

Speaker #2: A further 49 projects are expected to launch in the mid-term period between 2029 and 2031, while 36 projects are expected in the longer-term period from 2032 onwards.

Speaker #2: This balanced profile provides both near-term launch opportunities and long-term sustainable growth. From a market standpoint, the U.S. represents the largest share of our market opportunities, reflecting the scale and attractiveness of the U.S.

Petar Vazharov: This balanced profile provides both near-term launch opportunity and long-term sustainable growth. From a market standpoint, the US represents the largest share of our market opportunities, reflecting the scale and attractiveness of the US pharmaceutical market. The Alvogen acquisition has further strengthened our US growth platform by adding a broader US-focused pipeline, more BD opportunities, and direct commercial capabilities, which can support better launch economics over time. Beyond the US, the pipeline remains well-diversified across Asia, with strong representation in markets where Lotus has established commercial operations, including Taiwan, South Korea, Vietnam, Thailand, and the Philippines. We also continue to pursue product opportunities in B2B markets through our extensive network of partners. Let me now turn to some of the key projects driving value across our pipeline.

Speaker #2: The average acquisition has further strengthened our U.S. growth platform by adding a broader U.S.-focused pipeline, more BD opportunities, and direct commercial capabilities, which can support better launch economics over time.

Speaker #2: Beyond the U.S., the pipeline remains well diversified across Asia, with strong representation in markets where Lotus has established commercial operations, including Taiwan, South Korea, Vietnam, Thailand, and the Philippines.

Speaker #2: We also continue to pursue product opportunities in B2B markets through our extensive network of partners. Let me now turn to some of the key projects driving value across our pipeline.

Speaker #2: While we are unable to disclose product names for competitive reasons, I would like to provide additional insight into several of our most important pipeline assets.

Petar Vazharov: While we are unable to disclose product names for competitive reasons, I would like to provide additional insight into several of our most important pipeline assets. This is not an exhaustive list of projects. Rather, it highlights a selection of high-value opportunities and demonstrates the meaningful progress we are making across our portfolio. Before discussing these projects in more detail, I would like to note that the target launch timelines shown on these slides are indicative only. Given the nature of our industry, actual launch timing remains subject to a range of factors, including development progress, regulatory review timelines, intellectual property, and litigation matters, as well as evolving market conditions. Starting with the 2026 to 2027 launch window, all the opportunities shown here have already been filed and are now under regulatory review. These are no longer early development projects.

Speaker #2: This is not an exhaustive list of projects; rather, it highlights a selection of high-value opportunities and demonstrates the meaningful progress we are making across our portfolio.

Speaker #2: Before discussing these projects in more detail, I would like to note that the target launch timelines shown on these slides are indicative only. Given the nature of our industry, actual launch timing remains subject to a range of factors, including development progress, regulatory review timelines, intellectual property, and litigation matters.

Speaker #2: As well as evolving market conditions. Starting with the 2026–2027 launch window, all of the opportunities shown here have already been filed and are now under regulatory review.

Speaker #2: So these are no longer early development projects. Much of the development and submission work has already been completed, and the key remaining step is regulatory approval before we can move toward launch, subject to agency review timelines.

Petar Vazharov: Much of the development and submission work has already been completed, and the key remaining step is regulatory approval before we can move toward launch, subject to agency review timelines. Focusing on the more near-term launch opportunities, we have two high-value generic products filed in the US. First is Project A, which is already tentatively approved, pending a US core decision. Project B is filed with the FDA, pending regulatory approval. We remain hopeful to have positive decisions on both products later this year. Moving down the list, the next four products are high-value products with target launch dates in 2027. Two of these are 505(b)(2) products in the CNS space, and importantly, they are designed to open new market opportunities rather than simply compete in the existing generic markets. This is exactly the type of differentiated opportunity we want to build around.

Speaker #2: Focusing on the more near-term launch opportunities, we have two high-value generic products filed in the U.S. The first is Project A, which is already tentatively approved, pending a U.S.

Speaker #2: Project B is filed with the FDA, pending regulatory approval. We remain hopeful to have positive decisions on both products later this year.

Speaker #2: Moving down the list, the next four products are high-value products with target launch dates in 2027. Two of these are 505(b)(2) products in the CNS space, and importantly, they are designed to open new market opportunities rather than simply compete in the existing generic markets.

Speaker #2: This is exactly the type of differentiated opportunity we want to build around. It also plays to our existing strengths, as we already have an experienced sales and marketing team in CNS, which we can leverage to support these assets as they move toward commercialization.

Petar Vazharov: It also plays to our existing strengths, as we already have an experienced sales and marketing team in CNS, which we can leverage to support these assets as they move toward commercialization. Finally, this, which we introduced earlier in this call, is also part of this launch window and adds an innovative product in Asia to our near-term pipeline. Looking into the 2028 to 2030 period, we also have additional opportunities that could support the next wave of growth. Most of these projects are still under development, and our teams are working hard to continue advancing them towards filing. Many of them are expected to have strong competitive launch profiles, including exclusivity-protected opportunities, which could make them meaningful contributors over time. Importantly, three of these opportunities are best-in-class, further diversifying our pipeline beyond differentiated generics and 505(b)(2) products.

Speaker #2: Finally, this, which we introduced earlier in this call, is also part of this launch window and adds an innovative product in Asia to our near-term pipeline.

Speaker #2: Looking into the 2028 to 2030 period, we also have additional opportunities that could support the next wave of growth. Most of these projects are still under development, and our teams are working hard to continue advancing them toward filing.

Speaker #2: Many of them are expected to have strong, competitive launch profiles, including exclusivity and protected opportunities, which could make them meaningful contributors over time. Importantly, three of these opportunities are biosimilars, further diversifying our pipeline beyond differentiated generics and 505(b)(2) products.

Speaker #2: This broadens our product mix and adds another strategic growth pillar to support long-term value creation. This slide represents only a selected view of our broader pipeline.

Petar Vazharov: This broadens our product mix and adds another strategic growth pillar to support long-term value creation. This slide represents only a selected view of our broader pipeline. The US is more prominently represented because of the size of the market and the scale of the opportunities. As we showed earlier, Asia remains a very important part of our pipeline and future growth strategy. These selected opportunities give us confidence in the next waves of growth beyond 2026. With that, I will now hand over to Tunie to walk through the financials for the H1.

Speaker #2: The U.S. is more prominently represented because of the size of the market and the scale of the opportunities, but as we showed earlier, Asia remains a very important part of our pipeline and future growth strategy.

Speaker #2: These selected opportunities give us confidence in the next waves of growth beyond 2026. With that, I will now hand over to Tony to walk through the financials for the first half.

Speaker #1: Thank you, Petar. Turning to our financial performance for the first half of 2026, as Petar mentioned earlier, we reached another important milestone, delivering record revenue for both the first half and the second quarter.

Tunie Zaku: Thank you, Petar. Turning to our financial performance for the H1 of 2026. As Petar mentioned earlier, we reached another important milestone, delivering record revenue for both the H1 and the Q2. Consolidated revenue reached NT$70.5 billion, representing an 84% year-over-year increase. This was mainly driven by the expanded US market following the Alvogen acquisition, as well as strong growth in our B2B markets. Moving down to gross profit, we recorded NT$9.1 billion, up 60% year-over-year. Gross margin was 52.2% for the H1, compared to 60.2% in the same period last year. This year-over-year decline was largely attributable to changes in product mix in the US market, with lenalidomide sales being a key factor. Importantly, we saw sequential improvement in the Q2, with gross margin improving to 53.7%, compared to 50.7% in the Q1. Operating income increased 33% year-over-year to NT$4.3 billion.

Speaker #1: Consolidated revenue reached NT$17.5 billion, representing an 84% year-over-year increase. This was mainly driven by the expanded U.S. market following the Averope acquisition, as well as strong growth in our B2B markets.

Speaker #1: Moving down to gross profit, we recorded NT$9.1 billion, up 60% year-over-year. Gross margin was 52.2% for the first half, compared to 60.2% in the same period last year.

Speaker #1: This year-over-year decline was largely attributable to changes in product mix in the U.S. market, with lenalidomide sales being a key factor. Importantly, we saw sequential improvement in the second quarter.

Speaker #1: Gross margin improved to 53.7%, compared to 50.7% in the first quarter. Operating income increased 33% year-over-year to NT$4.3 billion. Operating margin was 24.6% for the first half, compared to 34% in the same period last year.

Tunie Zaku: Operating margin was 24.6% for the H1, compared to 34% in the same period last year. Similar to the trend we saw in gross margin, operating margin improved sequentially during the Q2, increasing to 26.5% from 22.7% in the Q1. As a result, at the operating level, we continue to deliver strong growth while also improving profitability quarter-over-quarter. Moving below the operating line, net income totaled NT$1.2 billion, with EPS of NT$4.65. Adjusting for one-off tax items and foreign exchange losses, adjusted net income was NT$1.5 billion, with adjusted EPS of NT$5.74. Compared with the prior year, adjusted EPS declined 42.3%, primarily due to higher financing costs in the US. As we have highlighted previously, reducing finance costs remains a key priority. We continue to make progress on our capital structure optimization and refinancing initiatives, including advancing discussions with key banking partners during the quarter.

Speaker #1: Similar to the trend we saw in gross margin, operating margin improved sequentially during the second quarter, increasing to 26.5% from 22.7% in the first quarter.

Speaker #1: As a result, at the operating level, we continue to deliver strong growth while also improving profitability quarter over quarter. Moving below the operating line, net income totaled NT$1.2 billion, with EPS of NT$4.65.

Speaker #1: Adjusting for one-off tax items and foreign exchange losses, adjusted net income was NT$1.5 billion, with adjusted EPS of NT$5.74. Compared with the prior year, adjusted EPS declined 42.3%, primarily due to higher financing costs in the U.S.

Speaker #1: As we have highlighted previously, reducing finance costs remains a key priority. We continue to make progress on our capital structure optimization and refinancing initiatives.

Speaker #1: Including advancing discussions with key banking partners during the quarter. Our objective is to lower financing costs, enhance financial flexibility, and further strengthen the balance sheet over time.

Tunie Zaku: Our objective is to lower refinancing costs, enhance financial flexibility, and further strengthen the balance sheet over time. Turning now to revenue, I'll cover the key drivers of our performance over the next couple of slides. For the H1 of 2026, consolidated revenue increased by approximately NT$8 billion, or 84% year-over-year. The largest driver was the US market, where revenue increased by NT$7 billion, or 180% year-over-year. B2B markets also delivered very strong growth, with revenue increasing by approximately NT$1 billion, or 245% as compared to prior year. This was mainly driven by nintedanib and enzalutamide, including new launches across selected markets. Asia remained broadly stable, with revenue increasing by 1% year-over-year to NT$5.3 billion. Within Asia, Southeast Asia continued to grow, mainly driven by Thailand and Vietnam.

Speaker #1: Turning now to revenue, I'll cover the key drivers of our performance over the next couple of slides. For the first half of 2026, consolidated revenue increased by approximately NT$8 billion, or 84% year-over-year.

Speaker #1: The largest driver was the U.S. market, where revenue increased by NT$7 billion, or 180% year-over-year. B2B markets also delivered very strong growth, with revenue increasing by approximately NT$1 billion, or 245%, compared to the prior year.

Speaker #1: This was mainly driven by an intended NIB and enzalutamide, including new launches across selected markets. Asia remained broadly stable, with revenue increasing by 1% year-over-year to NT$5.3 billion.

Speaker #1: Within Asia, Southeast Asia continued to grow, mainly driven by Thailand and Vietnam. Korea, our largest market in Asia, was slightly lower as a result of the transition in the consumer sales model.

Tunie Zaku: Korea, our largest market in Asia, was slightly lower as a result of the transition in the Qsymia sales model. Taiwan was also slightly lower, mainly reflecting the standard annual reimbursement price review. Turning to the next slide, we have broken down revenue in a different way to provide additional insight into the underlying business trends. This slide represents our revenue mix from two perspectives: by therapeutic area and by market. On the left-hand side, you can see that our revenue remains well-balanced across therapeutic areas. Oncology and immunology was the largest contributor, representing approximately one-third of revenue in the H1 of the year, followed by primary care and lifestyle, which accounted for around 30%. We also generated meaningful revenue from CNS and other therapeutic areas. The diversity of our portfolio across both specialty and established products helps reduce concentration risk and supports the resilience of our revenue base.

Speaker #1: Taiwan was also slightly lower, mainly reflecting the standard annual reimbursement price review. Turning to the next slide, we've broken down revenue in a different way to provide additional insight into the underlying business trends.

Speaker #1: This slide represents our revenue mix from two perspectives: by therapeutic area and by market. On the left-hand side, you can see that our revenue remains well balanced across therapeutic areas.

Speaker #1: Oncology and immunology was the largest contributor, representing approximately one-third of revenue in the first half of the year. This was followed by primary care and lifestyle, which accounted for around 30%.

Speaker #1: We also generated meaningful revenue from CNS and other therapeutic areas. The diversity of our portfolio across both specialty and established products helps reduce concentration risk and supports the resilience of our revenue base.

Speaker #1: On the right-hand side, we show our revenue mix by market. The U.S. represented 62% of revenue in the first half and remains the Group's largest market.

Tunie Zaku: On the right-hand side, we show our revenue mix by market. The US represented 62% of revenue in the H1 and remains the group's largest market. Asia contributed 30% of revenue and continues to provide an important and stable foundation for Lotus. B2B markets accounted for the remaining 8%, supported by recent product launches. From a product perspective, revenue continues to be predominantly driven by generics, while branded products also represent a meaningful contribution to the portfolio. Overall, this slide highlights the diversity of our business across both therapeutic areas and geographies. We have a larger US platform, a stable and growing presence in Asia, and an expanding contribution from B2B markets, supported by a broad portfolio across multiple therapeutic areas. This diversification helps strengthen the resilience of our business and provides multiple avenues for future growth. Moving on to adjusted EBITDA and leverage.

Speaker #1: Asia contributed 30% of revenue and continues to provide an important and stable foundation for Lotus. B2B markets accounted for the remaining 8%, supported by recent product launches.

Speaker #1: From a product perspective, revenue continues to be predominantly driven by generics, while branded products also represent a meaningful contribution to the portfolio. Overall, this slide highlights the diversity of our business across both therapeutic areas and geographies.

Speaker #1: We have a larger U.S. platform, a stable and growing presence in Asia, and an expanding contribution from B2B markets, supported by a broad portfolio across multiple therapeutic areas.

Speaker #1: This diversification helps strengthen the resilience of our business and provides multiple avenues for future growth. Moving on to adjusted EBITDA and leverage. Adjusted EBITDA increased by 50% year-over-year to NT$6.3 billion in the first half of 2026.

Tunie Zaku: Adjusted EBITDA increased by 50% year-over-year to TWD 6.3 billion in the H1 of 2026. This reflects the stronger scale of the business following the Alvogen acquisition, as well as continued contribution from our broader portfolio. Adjusted EBITDA margin was 36%, compared with 44% in the same period last year. The year-over-year decline was mainly driven by changes in product mix, including the lower contribution from lenalidomide. That said, we believe the margin remains healthy and reflects the increasing diversification of the business. Today, our earnings are supported by a much broader product portfolio and are less dependent on any single high-margin product, providing a stronger and more sustainable foundation for longer-term growth. On leverage, pro forma net debt to LTM adjusted EBITDA was 2.97 times as of June. This is higher than last year, mainly reflecting the Alvogen acquisition, but remains at a manageable level.

Speaker #1: This reflects the stronger scale of the business following the Allogene acquisition, as well as continued contribution from our broader portfolio. Adjusted EBITDA margin was 36%, compared with 44% in the same period last year.

Speaker #1: The year-over-year decline was mainly driven by changes in product mix, including the lower contribution from lenalidomide. That said, we believe the margin remains healthy and reflects the increasing diversification of the business.

Speaker #1: Today, our earnings are supported by a much broader product portfolio and are less dependent on any single high-margin product, providing a stronger and more sustainable foundation for longer-term growth.

Speaker #1: On leverage, pro forma net debt to LTM adjusted EBITDA was 2.97 times as of June. This is higher than last year, mainly reflecting the Allogene acquisition.

Speaker #1: But it remains at a manageable level. Importantly, the business continues to generate strong adjusted EBITDA, which supports our ability to manage leverage over time. This concludes the financial review.

Tunie Zaku: Importantly, the business continues to generate strong adjusted EBITDA, which supports our ability to manage leverage over time. This concludes the financial review. I will now hand it back to Petar.

Speaker #1: I will now hand it back to Petar.

Speaker #2: Thank you, Tony. Let me close with a quick recap before moving to Q&A. During the first half of 2026, we delivered record first-half revenue and EBITDA, supported by the Allogene acquisition and strong growth in B2B markets.

Petar Vazharov: Thank you, Tunie. Let me close with a quick recap before moving to Q&A. During the H1 2026, we delivered record H1 revenue and EBITDA supported by the Alvogen acquisition and strong growth in B2B markets. We saw clear sequential improvement in Q2 profitability, driven by a more favorable product mix. At the same time, our strategic growth initiatives continue to progress well. We advanced important R&D milestones, strengthened our specialty portfolio through business development, completed the Sandoz Philippines acquisition, and continued to move key pipeline opportunities closer to commercialization. As we enter the H2, our priorities are clear. We remain focused on executing our planned launches, achieving further R&D and BD milestones, and progressing our capital structure optimization. We have already secured SFC approval for the planned ECB issuance, and we continue to work on lowering finance costs and strengthening financial flexibility.

Speaker #2: And we saw clear, sequential improvement in second-quarter profitability, driven by a more favorable product mix. At the same time, our strategic growth initiatives continue to progress well.

Speaker #2: We advanced important R&D milestones, strengthened our specialty portfolio through business development, completed the Sandoz Philippines acquisition, and continued to move key pipeline opportunities closer to commercialization.

Speaker #2: As we enter the second half, our priorities are clear. We remain focused on executing our planned launches, achieving further R&D and BD milestones, and progressing our capital structure optimization.

Speaker #2: We have already secured SFB approval for the planned ECB issuance, and we continue to work on lowering finance costs and strengthening financial flexibility. Last but not least, as we show today, Lotus has a strong pipeline of high-potential product opportunities over the next several years.

Petar Vazharov: Last but not least, as we showed today, Lotus has a strong pipeline of high-potential product opportunities over the next several years, including differentiated 505(b)(2) products, biosimilars, and generics with strong competitive launch profiles. We are very pleased with our year-to-date performance and very excited about the company's growth potential. We remain focused on our disciplined execution to deliver sustainable growth and long-term value for our shareholders. Thank you, and we are now happy to take your questions.

Speaker #2: Including differentiated 505(b)(2) products, biosimilars, and generics with strong, competitive launch profiles. We are very pleased with our year-to-date performance and very excited about the company's growth potential.

Speaker #2: We remain focused on our disciplined execution to deliver sustainable growth and long-term value for our shareholders. Thank you, and we are now happy to take your questions.

Speaker #3: Thank you, Petar, and thanks to the management team for the presentation. Before moving to Q&A, just a quick reminder that questions can be submitted through the Q&A text box.

[Analyst] (Morgan Stanley): Thank you, Petar, and thanks to the management team for the presentation. Before moving to Q&A, just a quick reminder that questions can be submitted through the Q&A text box. Questions may be submitted in either English or Mandarin. We will take questions in the order they are received and management will address them accordingly. The management will respond first in English, and we do ask for your patience for the Chinese response while the management team wait for the translation.

Jack Lin: Thank you, Petar, and thanks to the management team for the presentation. Before moving to Q&A, just a quick reminder that questions can be submitted through the Q&A text box. Questions may be submitted in either English or Mandarin. We will take questions in the order they are received and management will address them accordingly. The management will respond first in English, and we do ask for your patience for the Chinese response while the management team wait for the translation.

Speaker #3: Questions may be submitted in either English or Mandarin. We will take questions in the order they are received, and management will address them accordingly. We ask for your patience; management will respond first in English, and we request your patience for the Chinese response as the management team waits for the translation.

Speaker #3: 谢谢 Petar，也谢谢管理层的分享。那我们在进入问答环节之前，简单提醒大家可以通过 Q&A 文字框提交问题，中英文都可以。我们会按照收到问题的顺序安排，由管理层依序回复。管理层回复会先用英文，请大家暂时等待，之后会有翻译成中文的回复。我这边看到线上也有好几个问题，可能是关于类似的一个话题，所以我可能先请公司做一个说明。 So Petar and Tony, I think this question has been asked by multiple investors online. You mentioned that Lotus has received SFB approval for the planned ECB issuance.

[Analyst] (Morgan Stanley): 谢谢 Petar，也谢谢管理层的分享。那我们进入问答环节之前，简单提醒大家可以透过 Q&A 文字框提交问题，中英文提交都可以。我们会按照收到问题的顺序安排，由管理层依序回复。那管理层回复会先由英文，请大家暂时等待一下，之后会有翻译过后，有中文回复。那我这边可能先看到线上有好几个问题，可能是关于类似的一个话题，所以我可能先跟公司请教一下。So hi, Petar and Tuni, I think there's a question that has been asked by multiple investors online.

Jack Lin: [Foreign language]

[Analyst] (Morgan Stanley): You mentioned that Lotus has received SFC approval for the planned ECB issuance. Would you give us a bit more color update on timing or any additional details that might be possible? 刚才提到美时的ECB得到核准，公司管理层可以麻烦帮我们更新一下进度跟细节吗？谢谢。

Jack Lin: You mentioned that Lotus has received SFC approval for the planned ECB issuance. Would you give us a bit more color update on timing or any additional details that might be possible?

Speaker #3: Would you give us a bit more color, an update on timing, or any additional details that might be possible? 刚才提到美时的ECB得到核准，公司管理层可以麻烦帮我们更新一下进度跟细节吗？谢谢。

Jack Lin: [Foreign language]

Speaker #4: Hi, yes. Thank you for the question. So yes, the convertible bonds or ECB process is progressing well. One important milestone has been completed, and that is getting the required regulatory approval.

Petar Vazharov: Yes, thank you for the question. The convertible bond or ECB process is progressing well. One important milestone has been completed, and that is getting the required regulatory approval. As we move into the next phase of the process, we will work closely with our financial advisors and other stakeholders. As you would expect for a transaction like this, there are several factors to consider, meaning market conditions as well as terms that we can achieve. I'd say it's premature to commit to a specific timeline, but we will obviously evaluate all of these factors in considering the perfect time.

Tunie Zaku: Yes, thank you for the question. The convertible bond or ECB process is progressing well. One important milestone has been completed, and that is getting the required regulatory approval. As we move into the next phase of the process, we will work closely with our financial advisors and other stakeholders. As you would expect for a transaction like this, there are several factors to consider, meaning market conditions as well as terms that we can achieve. I'd say it's premature to commit to a specific timeline, but we will obviously evaluate all of these factors in considering the perfect time.

Speaker #4: So, as we move into the next phase of the process, we will work closely with our financial advisors and other stakeholders. As you would expect, for a transaction like this, there are several factors to consider.

Speaker #4: I mean, market conditions and the overall terms that we can achieve—so I'd say it's premature to commit to a specific timeline. But we will, obviously, evaluate all of these factors.

Speaker #4: And considering the perfect timing, maybe just one quick reminder: as we have discussed and disclosed previously, any proceeds from the issuance of the CB or ECB will be used to pay down existing debt, with the goal of reducing our cash interest payments.

Petar Vazharov: Maybe just one quick reminder, as we have discussed and disclosed previously, any proceeds from the issuance of the ECB will be used to pay down existing debt, with the goal of reducing our cash interest payments and supporting our broader objective in lowering our finance costs. We'll provide further updates as and when there are material developments to disclose. Thank you for your question.

Tunie Zaku: Maybe just one quick reminder, as we have discussed and disclosed previously, any proceeds from the issuance of the ECB will be used to pay down existing debt, with the goal of reducing our cash interest payments and supporting our broader objective in lowering our finance costs. We'll provide further updates as and when there are material developments to disclose. Thank you for your question.

Speaker #4: And supporting our broader objective of lowering our finance costs. We will provide a further update as and when there are material developments to disclose.

Speaker #4: Thank you for your question.

Speaker #3: Okay. 这听得到吗？可以听得到。好的，好，谢谢。那刚才Tony也有分享，那这个就是如同我们刚才也有刚跟各位报告的时候也有说，我们这个ECB的发行作业目前进展是非常顺利。那我们也是也取得了这个升级局的这个核准。那也是我们这个完成发行前的一个非常重要的一个里程碑。那我们现在所以下一步就是跟就是跟我们这个财务顾问还有利害关系人等等的，就是一起跟紧密的这个合作。那在时间关系呢，那因为这个ECB这个边境需要考虑很多不同的因素，那譬如说是有这个市场的这个状况啊，还有譬如说最终的这个发行的这个条件。那这些都会影响我们最终这个发行的这个时间。那所以现在还是我们还是要看。那如先前也Tony也有说，就是要提大家呢，那我们这个目的的这个资金呢，就会将主要用于这个偿还这个银行的这个借款。那所以这个ECB发行后呢，这个也是可以降低现金利息的这个支出。那这会进一步降低我们这个财务成本，还有提升我们这个公司的财务的这个弹性。那最后呢，如果我们是有任何应该披露的，就是跟大家重大的这个进展的话，我们就会及时对外做这个公告，还有并提供最新的这个资讯。谢谢。好，谢谢Jeffrey。对，然后那我可能也发一个问题，也是其实也是刚好有提到这个投资者线上提到问题。所以可能希望能再跟管理层分享多一下这个，就在融资计划方面的部分，财务成本是什么时候能够减少，或是能够有什么样的这个展望呢？ So kind of thanks, Tony, and Jeff for the response earlier. And just kind of following on that line of question, which you know in addition there's also multiple investors on the line having questions about this part.

Jeffrey Tsang: 再听得到吗？

Jeffrey Tsang: [Foreign language]

[Analyst] (Morgan Stanley): 可以听得到。

Jack Lin: [Foreign language]

Jeffrey Tsang: 好的，谢谢。那刚才Tuni也有分享，这个就是如同我们刚才也有跟各位报告的时候，也有说我们这个ECB的发行作业目前进展是非常顺利，那我们也取得了这个证监局的核准，那也是我们完成发行前的一个非常重要的里程碑。那我们现在所以下一步就是跟我们这个财务顾问，还有利害关系人等等的，就一起紧密地合作。那在时间上，因为这个ECB鉴定需要考虑很多不同因素，譬如说是有这个市场的状况，还有譬如说最终的这个发行的条件，那这些都会影响我们最终这个发行的时间。所以现在我们还是要看。那如先前也这里有说，就是要提醒大家，那我们这个募集的资金呢，就会将主要用于偿还银行的借款。所以ECB发起后，也是可以降低先进利息的支出，这会进一步降低我们的财务成本，还有提升我们公司的财务的弹性。最后，如果我们是有任何应该披露的，跟大家有重大的进展的话，我们就会及时对外做公告，还有提供最新的资讯。谢谢。

Jeffrey Tsang: [Foreign language]

[Analyst] (Morgan Stanley): 好的，谢谢 Jeffrey。我可能也 follow 一个问题，其实也是刚好有几个投资者线上提到的问题，希望能再跟管理层分享多一下，在融资计划方面的部分，财务成本是什么时候能够减少，或是能够有什么样的展望呢？Thanks Tony and Jeff for the response earlier. Just following up on that line of question, which in addition, there's also multiple investors on the line having questions about this part. What about on the refinancing part?

Jack Lin: [Foreign language]

Jack Lin: Thanks Tony and Jeff for the response earlier. Just following up on that line of question, which in addition, there's also multiple investors on the line having questions about this part. What about on the refinancing part?

Speaker #3: But what about the refinancing part? If management can share more in terms of how, when, and how we should start seeing the finance costs begin to come down?

[Analyst] (Morgan Stanley): If management can share more in terms of when and how we should be start seeing the finance costs to start to come down.

Jack Lin: If management can share more in terms of when and how we should be start seeing the finance costs to start to come down.

Speaker #4: Sure. So, following the same logic here, from a refinancing standpoint, we are advancing our discussions with our key banking partners. I would say this is the furthest along we've been in the process.

Petar Vazharov: Sure. We are following the same logic here. From a refinancing standpoint, we are advancing our discussions with our key banking partners. I would say this is the furthest along we have been in the process. While I cannot say anything definitively today, we do remain hopeful and I should stay on track in addressing the high finance cost. Given where we are in mid-August, overall, we will see the full year impact on this year's savings on finance costs beginning in 2027. Thank you for your question.

Tunie Zaku: Sure. We are following the same logic here. From a refinancing standpoint, we are advancing our discussions with our key banking partners. I would say this is the furthest along we have been in the process. While I cannot say anything definitively today, we do remain hopeful and I should stay on track in addressing the high finance cost. Given where we are in mid-August, overall, we will see the full-year impact on this year's savings on finance costs beginning in 2027. Thank you for your question.

Speaker #4: So while I can't say anything definitively today, we do remain hopeful and, I should say, on track in addressing the high finance costs. Given where we are in mid-August overall, we will see the full-year impact on the business year of savings on finance costs, mainly in 2027.

Speaker #4: Thank you for your question.

Speaker #3: 好的，也感谢大家的这个问题。那我们目前是正在和主要往来的银行做这个讨论。我们跟他们的讨论进度，到目前为止也是最深入的。虽然目前我们没有一个明确的细节可以跟大家分享，但我们还是非常有信心，我们能够按照这个进度降低我们的财务成本。那第二个问题是，什么时候可以开始看到这个减少呢？现在Tony也有说，现在都已经是8月中旬了。因此我们觉得，预期应该是2027年的时候，就可望完整反映全年度的这个效益。谢谢。好的，谢谢。And thank you, Tony and Jeff, for the questions. So I think, based on the question, maybe we'll switch gears a little bit and talk a bit more about the company operations, right?

Jeffrey Tsang: 好的，也感谢大家的问题。我们目前是正在和主要往来的银行做讨论。我们跟他们讨论的进度也是到目前为止是最深入的。虽然目前我们是没有明确的细节可以跟大家分享，但我们还是非常有信心，我们可以照着这个进度降低我们财务的成本。第二个问题是，这个是什么时候可以开始看到减少呢？现在Tony有说现在都已经是8月中旬了，因此我们觉得预期应该是2027年的时候，就可望完整地反映全年度的效益。谢谢。

Jeffrey Tsang: [Foreign language]

[Analyst] (Morgan Stanley): 好的，谢谢。Thank you, Tony and Jeffrey for the questions. I think based on question, maybe we will switch gears a little bit and talk a bit more about the company operations. I will group the questions a bit together. These are about the key launches and also upcoming potential launches. Generally, would you be able to update us on the key launches and the progress for 2026? How are they progressing? I think earlier you mentioned there are two new US filings. Would you be able to give us more details on what they are, how big they could be, what they may contribute to the company's business outlook?

Jack Lin: [Foreign language]

Jack Lin: Thank you, Tony and Jeffrey for the questions. I think based on question, maybe we will switch gears a little bit and talk a bit more about the company operations. I will group the questions a bit together. These are about the key launches and also upcoming potential launches. Generally, would you be able to update us on the key launches and the progress for 2026? How are they progressing? I think earlier you mentioned there are two new US filings. Would you be able to give us more details on what they are, how big they could be, what they may contribute to the company's business outlook?

Speaker #3: So I think these two, I mean, I'll group the questions a bit together. So these are kind of about the key launches and also kind of upcoming potential launches, right?

Speaker #3: Can you update us on the key launches and their progress for 2026? How are they progressing? Also, I think earlier you mentioned there are two new U.S. filings.

Speaker #3: Would you be able to give us more details on what they are, how big they could be, and what they may contribute to the company's business outlook?

[Analyst] (Morgan Stanley): 可能线上也有一些问题是关于公司业务，可能跟刚才一些财务相关的是分开一些。我主要想了解一下2026年主要上市产品的进度，包含之前提到的这些新品目前的进展，以及可能刚才提到两项美国的新送件，有没有更多的细节可以分享？包含它们这个市场还有未来能带来的业务的贡献。谢谢。

Jack Lin: [Foreign language]

Speaker #3: Sorry, 可能线上也有一些问题是关于公司业务可能跟这个刚才一些财务相关的是分开一些。就我主要可能就想了解一下就是2026年主要上市产品的这个进度，包含之前提到的这些新品目前的进展，以及可能就是刚才提到两项美国的这个新送件有没有更多的这个细节可以分享，包含他们这个市场还有未来能带来的这个业务的贡献。谢谢。

Speaker #2: Great, thank you. I will take this question. Basically, I'll start first with the launches. As we discussed already earlier, this year we have several important launches.

Petar Vazharov: Great. Thank you. I will take this question. Basically, I will start first with the launches. As we discussed already earlier this year, we have several important launches in 2026 already completed. I refer here to nintedanib and enzalutamide. These launches they have gone extremely well, and this obviously reflected through our strong B2B performance during the first half of the year. They were basically, especially nintedanib, the key driver for the growth in this specific business segment. Demand has been very strong for both products, nintedanib and enzalutamide, and basically, we see this also from the replacement orders. Over the next two to three years, we expect nintedanib to continue to expand in new markets based on the regulatory progress. I refer here more markets like Japan, Southeast Asia, hopefully Middle East. In the US, we have launched duloxetine in July. It is a 505(b)(2) product in the CNS space that indicated for major depressive and anxiety disorder. This is the first high-dose strength formulation of duloxetine that is currently approved in the US, and fits very well with our CNS portfolio. Then we have two near-term products close to launch in the US. One of them is already tentatively approved pending a US court decision while the other one is filed with the FDA.

Speaker #2: In 2026, already completed. I refer here to an internship and also to Mike. And these launches, they have gone extremely well. This was obviously reflected through our strong business-to-business performance during the first half of the year.

Speaker #2: So they were basically especially an internship, the key driver for the growth in this specific business segment. Demand has been very strong for both products, an internship and also to Mike.

Speaker #2: And basically, we see this also from the replenishment orders. I mean, over the next two to three years, we expect an interchange to continue to expand in new markets based on the regulatory progress.

Petar Vazharov: I refer here more markets like Japan, Southeast Asia, hopefully Middle East. In the US, we have launched duloxetine in July. It is a 505(b)(2) product in the CNS space that indicated for major depressive and anxiety disorder. This is the first high-dose strength formulation of duloxetine that is currently approved in the US, and fits very well with our CNS portfolio. Then we have two near-term products close to launch in the US. One of them is already tentatively approved pending a US court decision while the other one is filed with the FDA.

Speaker #2: I refer here to more markets like Japan, Southeast Asia, and hopefully the Middle East. In the US, we launched Duluxitin in July. It's a $5.5 billion product in the CNS space that is indicated for major depressive and anxiety disorder.

Speaker #2: This is the first higher dose trend formulation of Duloxetin that's currently approved in the US, and it fits very well with our CNS portfolio. We also have two near-term products close to launch in the US; one of them is already tentatively approved, pending a US court decision.

Speaker #2: While the other one is farther with the FDA, we responded to the CRL, and we are expecting regulatory approval later this year. Upon approval, we'll be able to launch the product.

Petar Vazharov: We responded to the CRL and we are expecting regulatory approval later this year. Upon approval, we will be able to launch the product. Maybe, Jeffrey, you can translate now, and I can cover the second part of the question afterwards.

Speaker #2: Maybe Jeff, you can translate now, and I can cover the second part of the question afterwards.

Speaker #1: Yep, sure. Okay. Yeah, I'm translating this part right now. Okay, Ha. 谢谢大家。那刚才Petar分享的就是这个如同我们早前3月份有跟大家报告的这个今年我们是有几项重点产品是要上市。那这个也是包括了Nintendo跟Andalusia。那目前这个进展都是非常的顺利。那这两个产品都是我们B2B业务很重要的这个成长动能。那这一次上半年的这个业绩也是反映了他们的这个重要性。那其中的这个Nintendo其实两个都是续长市场的这个需求是非常强劲。那我们已经陆续也收到各个客户的这个追加的这个订单。那我们也是预期这个动能是可以延续到下半年。不止呢，那我们就是未来两到三年Nintendo也会陆续的拓展到其他的市场。那Petar刚才有分享的就是包括了这个日本、东南亚还有中东。然后在美国那方面的新产品推出呢，我们在7月份是推出了这个Duluxitin。那这个产品是一个505 B2的新药。它是主要是用来治疗这个重度忧郁症，还有这个焦虑症。这一支药也是我们美国，也是美国首款可以获准这个高剂量的这个剂型。那所以这个也是会进一步扩充我们CNS产品的组合。然后另外呢，刚才也有说我们也有两项美国的这个产品，也是刚才这个简报中也有提到的这个有两个案子，就是1个是已经在等待美国这个法院的这个裁定，然后另外一个呢，就是我们现在已经在FDA已经拿了这个暂时的这个核准。不是，这个是已经拿了，第一个就是我们FDA拿了这个暂时的核准，那已经在等待这个法院的这个裁定。另外一个就是已经在被提出了这个申请，那所以目前是等待这个审查的这个结果。那这个我们都希望可以在这一年可以受到这个好消息吧。那我们也非常期待这两项的这个产品可以在今年内可以有这个进一步的下去可以跟大家去分享。谢谢。

Jeffrey Tsang: Yep, sure. Okay. I am translating this part right now. Thank you, everyone. As Petar just shared, as we reported to you in March, we have several key products that will be launched this year, including nintedanib and elacestrant. So far, progress has been very smooth. These two products are both important drivers of our B2B business growth, and the performance in the H1 of this year also reflects their importance. For nintedanib, there is actually very strong market demand for both. We have already begun receiving purchase orders from clients, and we also expect this momentum to continue into the H2 of the year. Not only that, but in the next two to three years, nintedanib will also gradually expand to other markets. Petar just shared that this includes Japan, Southeast Asia, and the Middle East.

Jeffrey Tsang: Yep, sure. Okay. I am translating this part right now. [Foreign language]

Jeffrey Tsang: As for new product launches in the US, we launched duloxetine in July. This product is a new 505(b)(2) drug mainly used to treat depression and anxiety disorders. This drug is also the first in the US to obtain a high-dose formulation, which will further expand our CNS product lineup. In addition, as mentioned earlier, we also have two US products, which were also mentioned in the presentation. There are two cases, one of which is currently awaiting the US court's judgment. The other one, we have already received temporary approval from the FDA. No, the first one is that we have received temporary approval from the FDA and are currently awaiting the court's judgment. The other one has already submitted the application, so we are currently waiting for the review results. We all hope to receive this good news within this year.

Jeffrey Tsang: [Foreign language]

Jeffrey Tsang: We are also looking forward to these two products and will have updates to share with everyone as progress is made this year. Thank you. Petar, I am done with that one.

Jeffrey Tsang: [Foreign language]

Speaker #3: Yeah, Petar, I'm done with that one.

Speaker #2: Great, thank you. So, I will continue with the question regarding the two recent US filings. I would like to highlight here that we are not yet in a position to disclose the product names, indications, or specific launch times.

Petar Vazharov: Great. Thank you. I will continue on the question regarding the two new recent filings, US filings. I would like to highlight here that we are not yet in position to disclose the product names, indications, or specific launch times. These are significant opportunities from sales profitability perspective. This is what I can say. One is a potential first-to-file generic opportunity. Based on our intel, we think we made a position as the sole first-to-file applicant for this product. So if approved, it may be eligible for 180 days of generic market exclusivity in the US, subject of course to regulatory and legal outcomes. It is a very sizable opportunity. The branded product has been forecasted by the market analysts to reach more than $2 billion in peak sales.

Speaker #2: But these are significant opportunities from a sales profitability perspective. This is what I can say. One is a potential first-to-file generic opportunity. And based on our intel, we think we may be positioned as the sole first-to-file applicant for this product.

Speaker #2: So, if approved, it may be eligible for 180 days of generic market exclusivity in the U.S., subject, of course, to regulatory and legal outcomes.

Speaker #2: It is a very sizable opportunity. The branded product has been forecasted by market analysts to reach more than $2 billion in peak sales.

Speaker #2: And I think in Q4 this year, we should be able to disclose the filing, the product name, and of course give you more information on whether eventually we are likely to be eligible for 180 days of exclusivity, where we are the first filer.

Petar Vazharov: I think in Q4 this year, we should be able to disclose the filing, the product name, and of course, give you more information on whether eventually we are likely to be eligible to 180 days of exclusivity where we are the first-to-file. Again, very excited about it, and it demonstrates our capability to move quickly in developing such products, because time is very critical here. The other one is important 505(b)(2) addition to our portfolio in the US. Again, we don't want to disclose at this point of time. I can just tell you that this is obviously complementary to the existing portfolio, so it falls into the category of depression, anxiety disorder. I think, Jeffrey, over to you.

Speaker #2: But again, very excited about it, and it demonstrates our capability to move quickly in developing such a product, because time is very critical here.

Speaker #2: The other one is important—55B2. Addition to our portfolio in the US, and again, we don't want to disclose at this point in time.

Speaker #2: And I mean, I can just tell you that this is obviously complementary to the existing portfolio. So, it falls into the category of depression and anxiety disorder.

Speaker #2: I think, Jeffrey—over to you.

Speaker #1: Okay. Ha. 那这一段呢，谢谢你。有问题，那刚才我们是有说那两支，那现阶段我们还是没有办法去分享这个产品的这些名称、信证或者是上市的这个时间。因为这两个项目的这个产品也是涉及这个商业的敏感一些资讯，那但是呢，Petar是想强调的就是我们是高度期待这两项的这个产品。那他刚才也有介绍，那这两项第一项呢，就是具有我们 first of all 的这个潜力的这个全名药。这个是我们根据目前可以掌握的这个资讯里面，我们可以可能这一项产品是唯一具这个 first of all 资格的这个商品者。那若这个是顺利取得这个核准的话呢，后续这些我们会看这些后续的这个法规和诉讼的结果呢，如果是对我们有利，那我们是会有机会在美国取得一个180天全名药市场的这个独占期。那这个这项产品的市场机会也是非常可观。那刚才 Petar 也有分享过，根据这个市场的分析呢，我们看到这个原产药的年销售这个额预测最高在未来几年是可以超过20亿美元的一个产品。那所以这个是也是说我们是非常期待。那这个也是表现了我们可以很快把这些药从这个研发到申请的这个情绪可以做得很快。那所以这个是我们是蛮骄傲的。那另外一项呢，就是我们一个比较重要的一个505 B2的一个产品。这也是不好意思，还是未可以对大家跟大家分享太多的这个细节，不过呢，这个也是针对我们美国市场开发中这个产品当中价值是比较高的专案之一。那所以我们这个也是会在对这个友商单的这个市场的这个潜力。那这些我们都会等有这个资讯的时候可以公开。那唯一可以说这个也是对这个犹豫症是有一个是用来治疗这个犹豫症的。那我们会期待下一步可以公开的时候呢，我们就会再跟大家做这个说明。谢谢。

Jeffrey Tsang: Okay. Good. Thank you for your question.

Jeffrey Tsang: Okay. [Foreign language]

Jeffrey Tsang: Earlier we mentioned those two 现阶段我们还是没有办法去分享这个产品的名称、进展或是上市的时间，因为这两个产品的项目也涉及商业的敏感资讯。但是Petar想强调的就是，我们是高度期待这两项产品。他刚才也有介绍，这两项，一项就是具有我们first-to-file潜力的全民药。根据目前可以掌握的资讯里面，可能这一项产品是唯一具first-to-file资格的申请者。若顺利取得核准的话，我们会看后续的法规和诉讼的结果，如果是对我们有利，我们是会有机会在美国取得一个180天全民药市场的独占期。这项产品的市场机会也是非常可观。刚才Petar也有分享过，根据市场的分析，我们看到原厂药的年销售额预测最高，在未来几年是可以超过USD 20亿的一个产品。所以我们也是非常期待，这也是表现了我们可以很快把这些药从研发到申请的程序做得很快，所以我们是蛮骄傲的。另外一项，就是我们一个比较重要的505(b)(2)产品。这也是暂时还未可以跟大家分享太多的细节，不过这也是我们正在美国市场开发中的产品当中，价值是比较高的专案之一，所以我们也会对这个有相当的市场的潜力。这些我们都会等有资讯的时候可以公开。唯一可以说的是，这个也是用来治疗糖尿病的。我们会期待下一步可以公开的时候，我们就会再跟大家做说明。谢谢。

Jeffrey Tsang: [Foreign language]

Speaker #3: 好的，谢谢 Jeffrey，谢谢 Petar。 Thanks, Petar. Thanks, Jeffrey, for the response. And I think just one additional question on the kind of the business aspect, the one that kind of gets asked every time is, could you give us an update on legal need of mind?

[Analyst] (Morgan Stanley): 好的，谢谢 Jeffrey，谢谢 Petar. Thanks Petar, thanks Jeffrey for the response. I think just one additional question from, on the kind of the business aspect, the one that kind of gets asked every time is, could you give us an update on, are you seeing more pressure there? How should we think about contribution going forward? 可以帮我们更新一下血癌药的情况吗？有没有更大的竞争压力，以及未来的贡献的展望？谢谢。

Jack Lin: [Foreign language]

Jack Lin: Thanks Petar, thanks Jeffrey for the response. I think just one additional question from, on the kind of the business aspect, the one that kind of gets asked every time is, could you give us an update on, are you seeing more pressure there? How should we think about contribution going forward?

Speaker #3: You know, are you seeing more pressure there? How should we think about contribution going forward? 可以帮我们更新一下就是这个血癌药 Legal Need of Mind 的情况吗？有没有更大的竞争压力，以及未来的贡献的展望？谢谢。

Jack Lin: [Foreign language]

Speaker #2: Okay. I'll take these questions. So, there's no major change from what we discussed earlier. The market remains competitive, and pricing pressure was expected after the expiry of the settlement.

Petar Vazharov: Okay, I'll take this question. There's no major change from what we discussed earlier. The market remains competitive and pricing pressure was expected after obviously the expire of the settlement. That said, lenalidomide remains a meaningful product for Lotus, and the key point is that is still important. I mean, we have a strong position, but we are no longer dependent in the US only on lenalidomide. I just want to highlight this. Obviously after the Alvogen acquisition, our US revenue base is much broader. Even with more competitive market, we still deliver very strong revenue growth in H1. I think this really shows the benefit of having broader US platform and more diversified business. Jeffrey, over to you.

Speaker #2: That said, it might remain a meaningful product for Lotus, and the key point is that it might still be important. I mean, we have a strong position, but we are no longer dependent in the US only on that market.

Speaker #2: I just want to highlight this. So, obviously, after the AlphaGen position, our U.S. revenue base is much broader. So even with a more competitive landmark market, we still delivered very strong revenue growth in the first half.

Speaker #2: I think this really shows the benefit of having a broader U.S. platform and a more diversified business. Jeffrey, over to you.

Speaker #1: Yep, 好，也谢谢你的问题。那整体来说，这个和我们先前已经跟大家分享的情况其实没有太大的变化。市场竞争还是非常激烈的。市场开放以后，竞争带来的价格压力我们还是有看到。不过，血癌药对美时而言仍然是一项重要的产品，我们也期待它能够持续为我们带来一定的营收贡献。值得一提的是，Petar 想强调，现在的美时跟以前已经不太一样，尤其自从收购 AlphaGen 以后，我们在美国的营收来源更加多元，整体的营收基础也明显比过去更加稳固。所以，从数字也可以看出来，即使血癌药面临比较大的竞争压力之下，美时在上半年仍能有相当强劲的营收成长。这也反映出我们收购 AlphaGen 后，美国业务规模扩大，营收来源更多元，并带来了很好的效益。谢谢。

Jeffrey Tsang: 好，也谢谢你的问题。整体来说，和我们先前已经跟大家分享的情况其实没有太大的变化。市场竞争还是仍然是激烈的，市场开放以后，竞争后的价格压力我们还是有看到。但是这个血癌药对美时而言还是一项重要的产品，还是会持续带来一定的营收贡献。但值得一提，就是Petar强调的，现在美时跟以前已经不太一样了。尤其是我们通过收购Alvogen以后，我们在美国的营收来源更加多元，整体的营收基础也其实就很明显比过去更为稳固。所以这个也是在数字里可以显示出，即使血癌药面临比较大的竞争压力之下，我们美时上半年仍然可以有一个相当强劲的营收成长。所以这个是反映了我们收购Alvogen以后，我们美国的业务的这个规模过大，还有营收来源是更多元，然后带来很好的效益。谢谢。

Jeffrey Tsang: [Foreign language]

Speaker #3: 好的，谢谢。Petar，谢谢 Jeffrey。 Thanks, Petar and Jeff. And I think, you know, as we're kind of coming to close here, I just want to ask, I think there's two more questions, I think, online, mainly more on the financials aspects.

[Analyst] (Morgan Stanley): 好的，谢谢 Peter，谢谢 Jeffrey. Thanks Peter and Jeff. Then I think, you know, as we are kind of coming to close here, I just want to ask, I think there are two more questions, I think online, mainly more on the financials aspects, if you could help us answer. So I think one is about kind of the margin perspective, right? So margin improved quite clearly in Q2. What are the key drivers of that improvement? And should we expect this trend to continue in H2?

Jack Lin: [Foreign language] Thanks Peter and Jeff. Then I think, you know, as we are kind of coming to close here, I just want to ask, I think there are two more questions, I think online, mainly more on the financials aspects, if you could help us answer. So I think one is about kind of the margin perspective, right? So margin improved quite clearly in Q2. What are the key drivers of that improvement? And should we expect this trend to continue in H2?

Speaker #3: If you could help us answer. So I think one is about the margin perspective, right? The margin improved quite clearly in the second quarter.

Speaker #3: What are the key drivers of that improvement? And what should we expect this trend to continue in the second half? DRC 的这个利润率有改善，可以像欢迎层多分享一下主要的这个因素。以下半年的这个利率的情况。然后同时加上这个也。 And at the same time, this question also asks, you know, what's the one-time one-off tax item in the first half about 这个同一个问题也问了，就是关于那个上半年这个业务上一次性的这个税务项目是什么情况。那以后的这个税率会有什么样的影响，或以后税率怎么样去看。

[Analyst] (Morgan Stanley): 第二季的利润率有改善，可以请范凌霄多分享下主要的因素，以及下半年的这个利率的情况。同时，这个问题也问了，you know, what's the one-time, one-off tax item in the first half about? 这个同一个问题，也问了，就是关于上半年业务上一次性的税务项目是什么情况？那以后的税率会有什么样的影响？或以后税率怎么样去看？

Jack Lin: [Foreign language]

Speaker #4: Sure. Maybe I'll start with the first question around margins. So, maybe just taking a step back—as we mentioned in the last call that we had—the first quarter is typically a lighter quarter for us, especially in the U.S. market.

Tunie Zaku: Sure, maybe I will start with the first question around margins. So maybe just taking a step back, as we mentioned in the last call that we had, Q1 is typically a lighter quarter for us, especially in the US market. Coupled with that, we had a less favorable product mix in that Q1. Really the improvement in Q2 was driven by a more favorable product mix. In other words, higher sales from products with higher margins. As a result, the Q2 margin improving by around 3 percentage points in the quarter, and the operating margin followed that same trend. As we think about H2, the more meaningful impact on our margins would come from our planned launches later in the year. I would like to turn it over to Jeffrey for translation before I address the next question on tax.

Speaker #4: So, coupled with that, we had a less favorable product mix in that first quarter. So really, the improvement in the second quarter was driven by a more favorable product mix.

Speaker #4: So, in other words, higher sales from products with higher margins. As a result, the Q2 margin improved by around 3 percentage points in the quarter.

Speaker #4: And operating margin followed that same trend. As we think about the second half, the more meaningful impact on our margins would come from our planned launches later in the year.

Speaker #4: I think I'll turn it over to you, Jeffrey, for translation before I address the next question on tax.

Speaker #1: Yep, great. Hold on, give me a second. Okay. 谢谢。那刚才初年也有跟大家分享的，就是我们在其实我们在上一季的这个法说会其实也有提到，因为也有人、也有投资人当时问我们为什么利润率那么好像是偏低。那我们那个时候说就是第一季的这个营收通常是相对的较低，尤其是在美国的市场。然后其实同时那一季的这个产品组合也是对我们是相对上是不利的。那我们在第二季的这个改善，所以主要是来自于有利的产品组合。那也是令到我们毛利率有所改善的原因。所以，就像你刚才也有分享我们在第二季度我们的毛利率是提升了大概三个百分点。那这个是，还有我们的营业利润率也是呈现相同的一个趋势。然后讲完就是下半年呢，我们是希望可以透过这些新产品，我们刚才也有分享那些新产品陆续上市，可以帮助我们每次进一步提升利润率。谢谢。 I'm done turning it up. Sorry, yeah.

Jeffrey Tsang: 谢谢。那刚才Tracy也有跟大家分享了，其实我们在上一季的法说会其实也有提到，因为也有投资人当时询问我们为什么利润率好像是偏低，那我们那个时候说是第一季的营收通常是相对的较低，尤其是在美国的市场。然后其实同时那一季的产品组合也是对我们是相对上是不利的。那我们在第二季的改善，主要是来自于有利的产品组合，那也是令到我们毛利率有所改善的原因。那至于刚才也有分享，我们在第二季度，我们毛利率是提升了大概三个百分点。还有我们营业的利润率也是呈现相同的一个趋势。然后讲了下半年，我们是希望可以通过这些新产品，我们刚才也有分享那些新产品陆续上市，可以帮助我们美时进一步提升利润率。谢谢。

Jeffrey Tsang: [Foreign language]

Tunie Zaku: Yeah, I think I will take-

Jeffrey Tsang: I am done turning, yeah. Sorry, yeah.

Speaker #4: The next question, I believe, was on the one-off tax items. So just from a tax perspective, as you know, the reported tax rate in the first half was higher.

Tunie Zaku: The next question I believe is on the one-off tax item. Just from a tax perspective, as you know, the reported tax rate in the H1 was higher, and it was higher mainly because of a certain one-off and non-recurring tax item. This included the undistributed earnings tax in Taiwan. If we exclude those one-off tax items, the underlying effective tax rate would have been around 22%, which is broadly in line with our historical levels. If we look at our historical range of about 20% to 23%, the adjusted rate of about 22% falls within this normal range, and this is more reflective of our current tax profile. Thank you for your question.

Speaker #4: And it was higher mainly because of those certain one-off and non-recurring tax items. This included the undistributed earnings tax in Taiwan. So if we exclude those one-off tax items, the underlying effective tax rate would have been around 22%, which is broadly in line with our historical levels.

Speaker #4: So if we look at our historical range of about 20% to 23%, the adjusted rate of about 22% falls within this normal range. And this is more reflective of our current tax profile.

Speaker #4: Thank you for your question.

Speaker #1: 好的。那刚才Tony跟大家说明就是我们这上半年上半年的这个税率是的确是比较高。那这个是主要受到几项一次性税务费用的这个影响。这个其中是有包括我们台湾有一个微分配的这个营余税。那如果排除了这一次这些一次性的这个因素呢，那有效的这个税率约是差不多22%。这个是大致与过往的这个水准是相当。那如果因为我们看我们过去是约20%到23%左右的这个区间来看呢，我们这个调整后的这个22%的这个税率还是这个正常的这个范围之内。那我们觉得这个是更加能够反映目前我们这个税务的这个状况。谢谢。

Jeffrey Tsang: 好的，那刚才Tracy跟大家说明，我们上半年的税率的确是比较高，那这个是主要受到几项一次性税务费用的影响。其中是有包括我们台湾有一个未分配的营利税。那如果排除了这些一次性的因素呢，那有效的税率约是差不多22%，这个是大致与过往的水平相当。那我们看我们过去是约20%到23%左右的区间来看呢，我们调整后的22%的税率还是在正常的范围之内，那我们觉得这个是更加能够反映目前我们税务的状况。谢谢。

Jeffrey Tsang: [Foreign language]

Speaker #3: 好的，那谢谢 Tony，谢谢 Jeffrey。Thank you, Tony, and thank you, Jeff. And so I think as we are coming about to time, we'll close off the Q&A, and let me just pass the mic back to Matt and see if there's any closing remarks before we close off.

[Analyst] (Morgan Stanley): 好的，那谢谢 Tracy, 谢谢 Jeffrey. Thank you, Tracy. Thank you, Jeff. I think as we are coming about to time, we will close off the Q&A. Let me just pass on the mic back to the management, see if there is any closing remarks before we close off.

Jack Lin: [Foreign language] Jeffrey. Thank you, Tracy. Thank you, Jeff. I think as we are coming about to time, we will close off the Q&A. Let me just pass on the mic back to the management, see if there is any closing remarks before we close off.

Speaker #2: Thank you very much for your time today.

Petar Vazharov: Thank you very much for your time today.

Speaker #1: Thanks, Jack. Thanks for hosting for us again.

[Analyst] (Morgan Stanley): Thanks, Jack. Thanks for hosting for us again. No. So thank you everyone for joining today's webcast, and thank you again to the management team for your time and insights. If there are any follow-up questions, please feel free to reach out to us offline. With that, we will conclude today's webcast. Thank you. Thank you.

Jack Lin: Thanks, Jack. Thanks for hosting for us again. No. So thank you everyone for joining today's webcast, and thank you again to the management team for your time and insights. If there are any follow-up questions, please feel free to reach out to us offline. With that, we will conclude today's webcast. Thank you.

Speaker #3: Oh yes, no. Thank you, everyone, for joining today's webcast. And thank you again to the management team for your time and insights. If there are any follow-up questions, please feel free to reach out to us offline.

Speaker #3: And with that, we will conclude today's webcast. Thank you. 感谢各位今天的参与，也感谢各位管理层的分享和交流。会后如果还有进一步的问题，也欢迎与我们和公司联系。那今天的线上会议说明会到此结束。谢谢大家。

Jack Lin: [Foreign language]

Petar Vazharov: Thank you.

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Q2 2026 Lotus Pharmaceutical Co Ltd Earnings Call

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