KINTOR PHARMA-B (09939) will use cash flow from its cosmetics business to provide funding for medical/biological applications and development.

KINTOR PHARMA-B (09939) announced that the anti-hair loss foam product (the product) is one of the products under the company's cosmetic brand KOSHIN, with KX-826 as the main ingredient. The company would like to clarify that, although the sales agent agreement provides a favorable opportunity to further promote the commercialization of the company's cosmetics business, it is relatively small in scale compared to the company's listed business (the core products KX-826 and GT20029, as well as the development and commercialization of other pipeline products). It is supplementary in nature. It is hereby stated that the disclosed sales target of 100 million RMB is a long-term goal measured on an accumulative basis, not a short-term sales target. In terms of human resources, as of the date of this announcement, out of the existing 121 employees in the company, 69 employees are dedicated to drug research and development, drug supply, and local GMP production, while another 24 employees are currently focused on cosmetic sales and market promotion of the company's candidate drugs. In terms of funding, according to the company's management accounts, research and development expenditure is expected to account for over 50% of the total expenditure by December 31, 2025, mainly due to funds being used for Phase II and III clinical studies of KX-826 for the treatment of androgenetic alopecia in China (male) and GT20029 for the treatment of acne in China. The Board confirms that the company will use the cash flow from its cosmetics business (including the sales of this product) to provide funding for its medical/biological applications and developments; and the company will continue to adhere to its established policies for its listed business. The Board has reviewed the cash flow forecast for the group for a period of not less than 12 months from December 31, 2025. Taking into consideration that the company is actively negotiating bank financing with several banks, with the bank financing expected to be granted and drawn down in the first quarter of 2026; and the company is actively seeking equity financing and has been in discussions with several potential investors for subscription of new shares, the Board believes that the company's financial resources and liquidity are sufficient to provide funding for its operations, research and development, and the commercialization preparations of its core products.