Tipharco Pharmaceutical Joint Stock Company (DTG) hereby provides an explanation to the State Securities Commission, the Hanoi Stock Exchange, and esteemed shareholders regarding the fluctuations in revenue and profit after tax as presented in the reviewed financial statements for the six-month period ended 30 June 2025 compared to the same period in 2024, as follows:

Units: VNĐ

Source: Financial statements for the six-month period ended 30 June 2025

In the first half of 2025, the pharmaceutical industry faced a series of challenges: declining consumer demand, exchange rate volatility, rising input costs, and increasingly intense competition within the sector. In particular, slower consumption in traditional markets directly impacted the Company’s business performance.

To maintain market share and support its distribution network during this difficult period, the Company proactively implemented a range of diversified sales policies tailored to each customer segment. However, net revenue reached only about 83% of the level recorded in the same period last year. The revenue decline also led to lower production volumes in the first six months of 2025 compared to the same period in 2024, thereby increasing production costs per unit. In addition, the exchange rate in 2025 rose significantly compared to 2024. These factors resulted in the cost of goods sold decreasing at a slower pace than revenue. The combination of lower sales and narrower margins had a significant negative impact on profit after tax.

Nevertheless, a key highlight was the accelerated collection of receivables and the prioritization of loan repayments. These factors demonstrate the Company’s ability to generate healthy cash flows, strengthen its financial position, and reduce liquidity risk. This provides a solid foundation for the Company to implement growth recovery initiatives and enhance operational efficiency in the coming quarters.

Despite the underperformance in profit after tax during the period, the Company remains committed to a strategy of proactive adaptation, seeking to balance revenue growth objectives with financial stability. In the upcoming quarters, the Company will continue to:

• Review the effectiveness of promotional programs and sales policies;
• Restructure the product portfolio, prioritizing product lines with high profit margins and strong growth potential;
• Maintain stable cash flow while enhancing operational flexibility to promptly adapt to market developments.

Thank you very much./.

Attachment: Audited financial statements for the six-month period ended 30 June 2025