Welcome everyone, thank you for standing by for Bora Pharmaceuticals second quarter 2026 earnings conference call. Today we have Bora Pharmaceuticals Group CEO and Chairman Bobby Sheng, CFO Alice Wang with us.

All participants are in a listen-only mode. After the speaker presentations, there will be a question-and-answer session.

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Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual results could differ materially.

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During this call, we will present both IFRS and non-IFRS financial measures. A reconciliation of the IFRS to non-IFRS measures are included in today's presentation, which is distributed and available to the public through our website.

We will now begin our conference call. Bobby, the floor is yours.

Thank you everybody and thank you, all the shareholders and investors, for coming on this call, and I will be doing the summary of the 2026 Q2 earnings, this year. I think, Nadiya went over some of the disclaimers here, we'll we'll move past this slide.

Bora by the numbers:, our market cap is $1.7 billion. We're the number one pharma manufacturer in Taiwan.

We have now, currently, 11 manufacturing sites. Now we have over 2,240 employees worldwide, and we export to over 100 countries.

You can see on our, footprint map here, our footprint in the United States is increasing, especially with the recent acquisition of the Rockville, Maryland, biologics facility. So, our footprint in the United States is getting bigger, and the names of all the, facility locations here are on the left.

Now we'll go into the summary of our, 2022, second quarter milestones, some key achievements, and some financials. After, some pullback in quarter one, as as we expected, due to a scheduled, site, shutdown for maintenance and some supply chain, issues, we have, come back strong in the second quarter 2026 for double-digit to triple-digit growth quarter-over-quarter on all our key metrics.

Some summaries here on the demand-driven recovery: revenues, were at NT$5.889 billion, a growth of 47% quarter-over-quarter. Gross profits are at NT$2.4 billion, a 69% quarter-over-quarter gross profit, and, we have an EPS of NT$4.36, which is a quarter-over-quarter growth of 1,786%.

Net income pre-tax of NT$812 million, which is a 269% quarter-over-quarter growth. Some really strong numbers, back to strong growth for us as as a company in the quarter two.

Some highlights on the CDMO, business: obviously, the Maryland injectable facilities is, back to a full quarter of operations, and also we see a lot of, record highs in our demand and RFPs that have resulted in quarterly revenue for CDMO business of NT$2.116 billion and a growth of 40% quarter-over-quarter. Pharma sales business, that we see strong growth in, that business as well, especially the specialty pharma and a quarterly revenue of NT$2.934 billion, a growth of 30.4%, once again led by our specialty rare disease franchise market.

We also see strong visibility in, second half of 2026, record highs in our 12-month rolling, backlog of $317 million US dollars—that's 17 million, $317 million US dollars—, and, a record high of newly signed contracts, in the number of 3. or $378 million US dollars.

A really, really strong quarter for us, also showing strong visibility into 2000 and, 26 second half, as well as, future 2027. Some operational milestones in 2000 second quarter 2026, the our our we signed a top 20 pharma, company for a 10-year plus 2-year commercial contract.

The tech transfer has started. Want to highlight that is for the Maple Grove facility.

The Maple Grove facility is one of the largest, oral solid dose and one of the newest oral solid dose facilities in the United States. We're seeing a a record, demand in con- in contracts for that site, and, it took a while, and I think we, gave some indication for that last year that it will take a while for us to sign these larger pharma companies, but it is coming to fruition.

Commercial, contribution should be seen in the third quarter of '27, but we are starting tech transfers, into that, facility in, the second, half of 2026. Exciting news there, and of course, because of that, we will still continue to make, strong CapEx investments, to, increase the capacity of that facility.

Our Maryland injectable site, the clients are transferring over to the FX Pro, isolator line. The the the that site actually has a lot of, older technologies that we've installed and transferred into newer technologies into isolator lines.

We did that in the, all of 2025. We are seeing our first client transfer into, the FX Pro line, which is, higher quality, higher efficacy, and, better costs for us as well.

We're excited about that, and we expect a lot more clients to transfer into the FX Pro facility, which will also give us increased compliance, with the FDA, US FDA, and other regulatory bodies around the world. On the rare disease, specialty pharma, franchise, especially the vigabatrin franchise, we see increased demand, and solid demand for that, franchise as well, 58% specifically for the specialty, quarter-over-quarter, growth, and we're on track to achieve over 50% formulary coverage, which was our target, with more regional plans, and strong phy- physician adoption.

We've renegotiated, some terms with, value chain supply chain partners, because of our, growth, we've been able to, have stronger positions with our supply chain partners, and we've renegotiated some contracts, to increase our gross margins. We've also, in an effort to focus our efforts into our specialty rare disease, we've also out-licensed, some of our, other 505(b)(2)s that we didn't feel were core to, the specialty franchise, one of them being stiripentol, to one of our, strategic partners, and we see some, growth in that in the 2027, 2028 for that that, product, with our partner, of course.

We also see a demand-driven growth for our pharma sales, which is primarily our generics, as well as, new introduction into, some of our reporting for our quarter is the consumer health, contribution, led by our investment into SunWay Biotech. We'll talk a little bit more about that, but SunWay Biotech, we've increased our investment into that consumer health company from 30-some percent to 40-some percent.

Subsequently, they've acquired a, nutritional company, a global nutritional company called Weider Global Nutrition. Some of you may know it, it's a very, very well-known brand in the United States as well as, in Europe, for sports nutrition and global health.

That is starting to see some great synergies. We, that SunWay Biotech acquired them in May, of 2026, we're we're seeing some contribution there, and that's definitely a strong foundation for growth, and we're really looking forward to, increased contribution from that company and from our investment into that company in the near future.

Now some details into our, income statement for 2000 the second quarter. Once again, highlighting our back to profitable growth trajectory, revenues, are $5.8 million—$5.8 billion versus, 4 point $4.0 billion, quarter-over-quarter.

Gross profits increased 69%, from $1.4 billion to $2.4 billion. Operating profits have, almost doubled from $400 million NT dollars to, $986 million NT dollars.

And, our net income, is highlighted here in the bottom of, from 2026 quarter one, $32 million all the way now up to, $597 million in net, profits for second quarter. And, finally showing the EPS of 4.36, NT dollars versus a 0.21, NT dollar in second quarter.

On the right, I will show you, a waterfall of some of the, things that have happened over, from Q- quarter one into quarter two to give some further detailed explanation of the growth. CDMO, obviously with the full quarter of operations for the Maryland facility, and some increase, in demand obviously from the onshoring and a lot of other activities, which I will talk about.

We're see a nice a big jump back, from that from 2000 from the quarter one numbers. Generics, a good bounce-back from there, but really highlighted, by our specialty and brand, jump up from the first quarter of 2026.

Then obviously, with the SunWay acquisition of Weider, there is a strong contribution from them as well. As you can see, the growth in the second quarter, is stable growth, and it's continual growth, for our operations, and we look forward to, more contributions, and more growth in 2023 for second, third quarter and fourth quarter.

We wanted to also, year-over-year just to show that we are, back into our growth mode compared even to, last year, I won't focus on the numbers on the left, I'll just focus on some of the numbers on the on the right here. Revenues, year-over-year for the second quarter is, increased by 21%, from $4.8 billion to $5.8 billion.

Our gross profits have increased, 20% from, $2 billion, to $2.4 billion. Our net income before tax has increased 46% year-over-year of, roughly, 4.8, billion to 6 billion.

Then our, net income from continued operations—sorry, the previous number was from 5- 550 million, to, 813 million net income before tax. Then now also the final net income from continued operations at a, 448 million all the way up to now 600 million in 2026.

We not only show quarter-over-quarter growth, we are are back to also showing quarter-, year-over-year growth as well. We also have a another nice balance for our revenue mix.

Our CDMO revenue represents 36 of our, revenues, increase again quarter-over-quarter and year-over-year. Our pharma sales represents 50%.

We've also also did some product rationalization last year as well, so, top-line revenues, year-over-year are a little bit, off, but, quarter-over-quarter, of course, that we've shown before, 30% quarter-over-quarter, and then also a more, prominent position of specialty within the, pharma sales, division here. And, finally, also because of our increased investment in SunWay and their acquisition of Weider, they've really jumped in their, revenue, representation within the Bora Group.

They now represent about 14% of our, total, top-line, revenues, and so we want to highlight them and give you, give the investors understanding of the, products, and the, revenue mix within Bora Group. We've also been able to maintain a strong, net debt-to-equity, ratio while increasing our cash position.

Now that this is primarily for the acquisition of the Rockville facility, you see a big jump in cash there. We also continue to be diligent in our, cash flow management, to continue to decrease our net working capital, over revenue, usage as well.

To give you some highlights into our, CDMO business, in Q2: once again, I would tell we have, a record high of backlog of $317 million US dollars. That's really roughly, 90% of our, last year's revenue, so, definitely strong growth there in our backlog, or orders in on hand.

Also a record high of new business in the first half of 2026, in the sum of $378 million US dollars. We also see, a record high in, new molecules signed: 14 new molecules signed, for our business, and they're all, development stage, commercial stage.

As as you can see, with our Mississauga facility, with our Zhubei facilities and our mature facilities, these new molecules being signed eventually, turn into commercial revenue for the sites, we're really excited about these new molecules being signed. We, see an increased prioritization in supply chain security and US onshoring demand.

As you can see, now we have four sites within, the United States, five sites, in North America, including our Canadian facility. We are seeing a huge, huge uptick in demand, for onshoring, reshoring, back into, the United States and, really, having a huge advantage with our large US footprint.

Then finally, I will highlight the the top 20 big pharma 10-year multi-drug contract within our Maple Grove facility, and starting phase one product transfer in 2000, in the second quarter of this year. We've also, highlighted that to become a full-service CDMO facility and a top 10 CDMO facility in worldwide, we definitely need to have a larger presence in biologics.

We were able to do that. We announced an, an acquisition of MacroGenics biologics facility in Rockville, Maryland.

To give you some more highlights here, as we've, integrated them in, parts of Q3, but we want to give you, a highlight. In we it's a 20- it's a 12,000-liter, 5 times, 2,000 and 4 times 500-liter FDA facility with three already commercial products being produced, from that Rockville facility, and, revenue recognition will be starting in Q3 of this year.

We've, confirmed already, in 2026, back half of 2026 to have, a, 13 batches already committed, which is actually moderately ahead of the 2025 run rate, definitely positive, momentum and positive uptick. On the right here, I will show you that, we already see about $60 million, of 12-month rolling backlog for the site, which brings in a significant near-term commercial value and top-line revenue contribution, into, our Bora Group.

Finally, we expect higher-value opportunities, and I explained this in our last quarter that we expect a lot of synergies with Tandem biopharma, which is our San Diego facility, as well as our, Zhubei facility, in Taiwan, as well as finally our Maryland injectable facility to offer a real end-to-end biologics solution all the way from cell line development to, product, product substance and then, drug product, for the injectable facilities. Some outlook for the second half:, obviously, we see record backlog.

One highlight is our Zhongli facility in Taiwan is starting, to, produce for, a market in China and starting to expand in the China market as well. That's the, as we expand our Asia CDMO, footprint, that's a real highlight, and we see expect high contributions from the China market in our Zhongli facility in Taiwan.

Our, back-end has intensified our marketing efforts, our marketing efforts to really, lean in on the tailwinds for the US CDMO demand when we see a record high demands for that. Also, our Rock- facility, once again, will be contributing revenues in Q3, and we see that, continuing forward into and, second half of '26 and also, into 2027.

We will continue to invest in the future. Once again, our Maple Grove facility looks really, really strong.

We expect that to, have a more prompt presence in our CDMO, CDMO, contribution for the whole group. Then also, the Maryland facility, we want to address here is that, we've, started to address a lot of the FDA issues, from one of our inspections in, Q2, and so, the FDA inspection showed some obviously, things that we needed to improve on, and obviously, they wanted us to get into the isolator lines, which we are doing with our customers in Q3 and Q4.

We see that, being addressed in timely manner, and also, we see, even though we are, dealing with, some of these adjustments, we see the same-time production and batch releases for the remainder of '26, we don't see a lot of disruption in batch release and production for the remainder of '26, and we also see volumes increasing in 2027 as well. On the right here, we'll also highlight that, our, qualified leads, we already see 400 marketing qualified leads, which really has matched our full year of qualified leads in 2025.

So, really 60-plus percent of inbound searches with the and, also Bora branded searches, sur- surging 3x above our expectations as well. Bora Biologics, we see synergies there from Tandem, and we see strong, uptick.

Really, the commercial capabilities of our, Rockville facility now is also generating more demand from our other facilities, in San Diego and, Zhubei. Some updates into our pharma sales business, obviously, led by our the brand name of Upsher-Smith Group.

We we continue to see an increase, in our, highly focused, franchise into the specialty pharma side of the business. What I want to highlight here, as you can see, our year-over-year, values in pharma sales, have increased up to 2026.

We did some product rationalization through '24 and '25, but really, really want to highlight, this is the first, quarter and the first half of the year where our specialty rare disease business has increased and is now over 50% of our total pharma sales business. That was a strategic, initiative for us starting in 2023, we went from, 2.9% in 2023 to 26.9% in 2024, 42% in 2025, and now for the first half of '26, specialty and rare disease represents 54.2%.

Why do we do that? I want to highlight again: larger growth gross margins, more stability, increased in demand, also patent-protected, pricing, and, really, a a very different, financial profile for these, drugs to have.

So, we definitely, our investment into specialty pharma, as you can see by our top line, by our gross margins, and by our net income, has paid off dividends for us, and will continue to, do so in the future as well. I also want to highlight here that, we've increased we've seen increase in demand from government channels from our, TLS and our other high-value, generics.

We're definitely see a stabilization, to small growth, in that generics division. A little bit more detail into our specialty, business.

It's really firing on all cylinders. Like I said, we've had our revenues have grown 58.7% quarter-over-quarter and 47% over our 2025, numbers for the quarter.

Obviously, it's highlighted by Vigafyde, but, there are, six other products within the specialty, branded division that are all growing, that are all contributing to the revenue growth and the quarter-over-quarter growth for, the year, for the quarter and for, year-over-year. We're expected to unlock, up to, 60%, especially focusing on vigabatrin franchise here.

We're get now hitting about 60% of the Sabril peaks. Sabril, which is the original branded, drug, that we've reformulated into the 505(b)(2) for Vigafyde, and, we definitely see some growth there as well.

Sorry about that, moving here. You and we also you see unique patients displayed quarter-over-quarter, and, for seven consecutive quarters in a row.

New patients coming into using, Vigafyde, we've seen them increase quarter-over-quarter for seven quarters in a row. Finally, we've, out-licensed stiripentol to refocus our, attention into the franchises that we've been investing in.

For our generics, as you can see, our high-value generics are increasing, once again focusing on, our high-value, high-growth, gross profit, gross margin products. We have six new launches, in those categories, supporting more diverse generic portfolio, and we expect, pending approvals, we expect, six more for, the second half of '26 and, into 2000 all the way up to 2030 launches.

For this quarter, I'll be talking, more about our consumer healthcare business, through, our investment into SunWay Biotech. We've increased our investment into SunWay Biotech from 35.97% to 42%, because of SunWay's acquisition into Weider Global Nutrition.

They, did a fundraising, and we've, increased our position into SunWay. We're really, pleased with the management team there, and we're really pleased with their acquisition, similar to what Bora has done in their previous growth, into acquiring a global brand, becoming a global powerhouse now in, consumer healthcare.

Some highlights here: their core business is ingredients and CDMO sales. We've seen a 7%—now that represents, roughly about 7% of their, total revenues, but quarter-over-quarter, we've seen that grow 40%.

Obviously dominated by the red yeast rice demands in Europe, and now with the US market with through Weider Global Nutrition. Brands now with Weider represents 70%, 73% of, the total revenues for, SunWay, so as you can see, it is a monumental, transformational acquisition for, SunWay Biotech, and we see them really growing that, division.

Finally, for the domestic market, represents 20% now, but we still see domestic market, meaning domestic in Taiwan, that legacy business still has growth of 14%, representing about 20% of SunWay. For the second half of '26, we see Weider Global Nutrition, which is WGN, we expect them to start, improving on their synergies and deliver meaningful revenues, profits, and realize synergies, into the second quarter, the second half, sorry, of 2026.

A little bit into our Bora AIM, which is our, AI manufacturing platform that we did an announcement with InSilico, a JV with InSilico, and some information on our on our sustainability, profiles. So, we continue to maintain our sustainability rankings, EcoVadis, we are at a committed level.

Our FTSE is at 3.8% out of 3.8, out of 5, and our Taiwan Stock Exchange, we rep- we are in the, 60 to 20th percentile, of the Taiwan Stock Exchange for sustainability rankings. In quarter two, we were excited to introduce Bora AIM, and, this is our own internal developments, but also an announcement with, one of the, global leading, AI drug development companies, drug discovery companies, InSilico.

We're we're really happy to accelerate, in our Bora AIM, platform. We want to give you more announcements in the future.

We do believe that this will be, a huge competitive advantage for Bora, going into, next year. Some highlights, though, I wanted to, update you on: we have a beta version testing going live in the next 6 months for our CDMO business.

Some highlights of what the beta testing will do:, it it instead of reacting to, failures in manufacturing, we're proactive in identifying failure points before they occur. That will save bad batches, saving, tens of millions of dollars, potentially in the future.

We're we're going to beta test, AI to reduce deviations. Deviations are very, very, time-constraining and very, difficult to deal with.

They take about 30 to 45 days once a deviation comes up in manufacturing, and then we have to produce, CAPAs, which are, corrective actions and preventive actions for those deviations. We see AI really advancing, going from 40 to 30 to 45 days of an investigation to now about 3 to 7 days.

Finally, CMC document documentation is really, cumbersome in in regulatory and, really cumbersome to, for, ad- emissions, and approval times. We want to reduce 50% of the CMC documentation, obviously, which will increase the, time to market for, these drugs once they're after getting out of phase three.

We do see roughly about $180 million opportunity here, obviously, some some highlights here. According to McKinsey, three times of the lead- about amount of leading pharmaceutical companies now file for their submission, they want to do it three times faster.

According to BioPlan Partners, pharma the pharma sponsors now explicitly request digital capabilities from CDMO partners during contract negotiations. That's literally almost all of our partners ask for now, 92%, roughly 100%.

Filings, we do see, through AI, 8 to 12 weeks earlier, after database lock can generate about 180%, 80 million, $180 million in, net present value, for some of these assets, and we definitely see Bora AIM, our Bora now aims to become one of the, forward-looking CDMOs capturing big pharma demand. Finally, to give you a strong look into, 2000, 26 second half, we definitely are bullish and we see continuing momentum from our Q3 numbers.

We see continued demand, for our CDMO, continued demand for, the onshoring and demand for our US facilities, and site utilization is is, increasing, which will also increase our gross margin profiles. On the specialty pharma, we see continued growth, double-digit growth in that as well, also stability in our generics, platform over there.

Also, because of our investment in our acquisition of the Rockville facility, we've seen increase in biologics, impact and with, starting with revenue contribution, but also, gross margin increase and net, net income increase with, the valued synergies that we will have with Tanvex and the rest of the group. Finally, SunWay Biotech's consumer healthcare business will, continue to realize synergies from the, Weider acquisition as as it establishes a global presence in the consumer healthcare space.

Overall, we are, very positive from our Q2 earnings, and we are, positive that they will continue to bring, strong growth momentum into, Q3 and Q4 for the year. Thank you everyone, and that's the, summary of our, Q2 earnings for, this year.

Thank you, Bobby. As a reminder, to ask a question, please click on the Q&A button on the top, and type your questions directly into the box.

We will wait for roughly 2 minutes before we take the first question. We now have the first question on the acquisition of the Rockville facility.

Bobby, if you could just paint a bit more color on its pipeline and where the synergies will come from. Do you expect it to benefit from Incyte's commercial products, or how are the signings looking like at the moment?

Apologies, I don't see the Q&A questions come up on my right, but okay, can you restate the question again, Nadiya?

The question is on the acquisition of Rockville facility. Can you paint more colors around its pipeline, if we're benefiting from the commercial product of Incyte, and also how are BD signings looking like right now?

Rockville's really exciting. To have a single-use bioreactor is a technology that is really being highly utilized by the industry.

20- 20% growth year-over-year in that industry, especially with the single-use bioreactors. There are three commercial products already being manufactured there.

If you look into some of the records of Rockville or of MacroGenics, they're a partner with Incyte, and we have two other products there that we don't really like to mention our customers, but Incyte is one of them. It's a great commercial product.

They have, actually, three great commercial products there, strong regulatory track record there. There are also six programs already in development there with existing customers.

We're really positive the first couple months with that facility. Very happy with their technology, extremely satisfied with the amount of talent that is there, the amount of talent that's available in Maryland.

The Maryland biotech facility is something we're really proud to be a part of as well. The capacity for that site is roughly 60 to 70 batches with the current facility, with the current bioreactors.

We can continue to grow that within the current footprint. Even within the current footprint, we can add more capacity as well.

Just with the current capacity that is there and the current CapEx that was invested into that facility, we can go up to about 60 batches. Like I said, right, looking forward, we see $60 million in rolling 12-month revenues that doesn't fully reflect the $30 million that is being earmarked to produce there.

Definitely some positive numbers. Now we can look into our pipeline that we already have for our business development that was going to the San Diego facility.

Now we have an option capability for them to also put product into the Rockville facility as well. We definitely see a real added value for our customers when they see that we can do cell line development extremely fast, with extreme high quality at a very, very effective price within our Zhubei facility in Taiwan, now seamlessly tech transferring into development and commercial manufacturing within Rockville in our drug substance, and also now, right down the street, 45 minutes, we can produce drug product in our injectables facility.

Really offering end-to-end is extremely valuable, and we're seeing upticks in demand from our injectables facility and our development facility in Zhubei just because of the additional commercial capacity we have. Also, really leveraging the current customers they have.

Now their current customers, including Incyte, have now also started discussions with us in our other capabilities. MacroGenics is starting to have strong discussions with us on some of the cell line development and other things that we have within our Bora network.

The scalability and the product offerings are being of added value into this acquisition as well. We're really excited about it, but I want to highlight again: quality track record, high compliance within that facility, already very seasoned team with multiple years of producing large-scale commercial manufacturing is a huge plus for us now within the Bora Group.

Thank you. We have another question on CHC.

Now Bora has a new segment of CHC. What is the majority synergy between CHC and generic drug sales and your CDMO business?

Why does not the company invest more into CDMO, but instead invest into CHC?

I would say CHC was really a spin-off of a business that we had acquired in 2018, and that business continued to grow. We often acquire businesses because of the CDMO capabilities, but then there's other business units that continue to grow.

That business was merged into SunWay, and as SunWay continued to grow, we've always maintained a equity position into that company. That company just continues to grow.

I will say it's not really a core of our growth that we're investing in, but they had a equity requirement that they were fundraising. We thought it was a great investment for us.

We do see synergies in the manufacturing base of it, they do have a CDMO business that is continuing to grow. We do see synergies if they have a consumer health division and they need some manufacturing, we do see additional growth there, but also some of their manufacturing requirements really benefit from our knowledge in the CDMO base.

I will say, we are including the reports of those earnings because they do represent about roughly 14% of our revenues, we do want to report them. We want to report that part of the business, however, I will say it is not core of our dual engine.

It is not a large investment we're continuing to reinvest in, but they've done so well and that's such a big acquisition for them that we wanted them to include them and update our investors when you look at our earnings, if you see 14% of our earnings happening somewhere else within the group, we want to make sure you have visibility of that. We want to make sure that you see what they are doing, but also, I think it's a great question, we don't see it as a core focus we are continuing to invest in, but it is a growth business.

It is contributing to our top line and our bottom line, and we want to make sure that the investors are aware of it.