Regent Pacific : Audited final results for the year ended 31 December 2020 and proposed change of company name | MarketScreener – Marketscreener.com

(Incorporated in the Cayman Islands with Limited Liability)

Stock Code: 0575

30 March 2021

ANNOUNCEMENT

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

AUDITED FINAL RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2020

AND

PROPOSED CHANGE OF COMPANY NAME

PERFORMANCE OVERVIEW

A summary of the financial performance and other notable events for

2020 includes:

Page 2 of 46

Page 3 of 46

The outbreak of COVID-19 has had, and continues to have, a material impact on businesses around the world and the economic environments in which they operate. The outbreak has caused disruption across our business lines. A number of countries in which we operate have implemented severe restrictions on the movement of populations, with a resultant significant impact on economic activity. These restrictions are being determined by the governments of individual jurisdictions, including through the implementation of emergency powers. The impacts of these restrictions, including the subsequent lifting of restrictions, may vary from jurisdiction to jurisdiction. However, during 2020 COVID-19 has negatively impacted the royalty income from Recordati, as the royalty income for the year ended 31 December 2020 dropped by approximately 32.27% as compared to the financial year ended 31 December 2019, which is due to the cessation of activities by Recordati's sales representatives during this time and the fact that patients stopped visiting their physicians while "lock down" was in place. Management is closely monitoring what impact, if any, COVID-19 has to its liquidity and capital sufficiency with reference to our operations and capital commitments. Given the complex and constantly evolving situation of COVID-19, it is not possible to predict or quantify the financial or operational impact of COVID-19 on the Group's operations (note 15).

We have invoked certain plans at our offices in Hong Kong and the United Kingdom (the "UK") to help ensure the safety and wellbeing of our staff, as well as our ability to support our customers and maintain our business operations. Many of our staff have continued to provide continuity of work while working remotely. It remains unclear how this will evolve into 2021 and we continue to monitor the situation closely while at all times following local government guidelines and policies.

Page 4 of 46

With a streamlined focus and sensible capital structure, the Company remains excited about the future prospects for the Group and its shareholders and will: (i) continue to pursue the successful commercialisation of Fortacin/SenstendTM as quickly as possible, with the OTC roll out just commencing, as well as in the remaining key markets of the US, China, Asia, Latin America and the Middle East; (ii) commercialise DLI's Young.AI mobile App and the Young.AI website, together with partnering with clinics, laboratories and insurance companies by offering its AgeMetricTM reports and access to its online platform; (iii) continue monitoring its investments in Venturex and West China; and (iv) continue with its existing strategy of pursuing strategic and value-led investments in the healthcare and life sciences sectors.

CHAIRMAN'S STATEMENT

2020 was a challenging year for the Group, together with the global economy, being dominated by the devastating global impact of the COVID-19 pandemic.

The outbreak of COVID-19 has had, and continues to have, a material impact on businesses around the world and the economic environments in which they operate. The outbreak has caused disruption across our business lines. A number of countries in which we operate have implemented severe restrictions on the movement of populations, with a resultant significant impact on economic activity. The impacts of these restrictions may vary from jurisdiction to jurisdiction. It remains unclear how this will evolve into 2021 and we continue to monitor the situation closely. But we are ever hopeful that with the roll-out of the vaccines that we are now seeing across many countries, it will lead to the lifting of the restrictions from as early as Q2 2021.

Unfortunately, these issues, among others, caused the Group to implement from April 2020 certain cost cutting measures, including an across-the-board 30% reduction in fees and salaries of its Directors, employees and consultants, which reductions are continuing, furloughing staff where appropriate and implementing general and administrative expenses and research and development expenses cost cuts, on an aggregated basis, of approximately US$2.13 million when comparing with the corresponding period in 2019.

Page 5 of 46

However, I am very proud to report that the Group was able to perform very strongly in the second half of 2020, achieving a number of significant milestones, including the acquisition of Deep Longevity, a new and complementary business line that I am particularly excited about given its cutting edge approach to longevity medicine, a US$4.20 trillion dollar (and growing) industry, in 2017. I will report further on these achievements below. It goes without saying that the Group will continue to pay close attention to the development and evaluate the impact of COVID-19 on the financial position and operating results of the Group, but, all things being equal, we remain very optimistic about the direction the business is taking and in our ability to generate value for shareholders going forward.

Healthcare and Life Sciences Focus

The Group's healthcare and life sciences investments remain our core focus, and the Group believes that investments in this sector will create substantial returns for our shareholders in the medium to longer term. As part of this focus, we have worked diligently to further strengthen our relationships with key commercial partners and stakeholders in this sector, and in the second half of 2020 I am pleased to report that our team, together with our commercial partners, made significant progress in this respect per the following achievements:

Page 6 of 46

Business Development

From a business development standpoint, during the 2020 financial year, the Group continued to look closely at a number of acquisition and investment opportunities in the healthcare, life sciences and wellness sectors, including opportunities to enter into the longevity sector, with a particular focus on patented technology to help identify individual biological aging markers. This culminated in the acquisition of DLI in December 2020, which will serve as a key platform for the Group's expansion into the health and wellness sector, namely the emerging field of longevity medicine.

Page 7 of 46

DLI is developing explainable and user-friendly AI systems to track the rate of aging at the molecular, cellular, tissue, organ, system, physiological and psychological levels. It is also developing systems for the emerging field of longevity medicine enabling physicians to make better decisions on the interventions that may slow down or reverse the aging processes. DLI has also developed Longevity as a Service (LaaS) solution to integrate multiple deep biomarkers of aging dubbed "deep aging clocks" to provide a universal multifactorial measure of human biological age.

Originally incubated by InSilico Medicine, DLI started its independent journey in 2020 after closing a Series A financing on 29 June 2020 that included some of the most credible venture capitalists specialising in biotechnology, longevity and AI. Among these strategic investors are such well-known funds as BOLD Capital Partners, ETP Ventures, Human Longevity and Performance Impact Venture Fund, Longevity Vision Fund, LongeVC, Michael Antonov (co- founder of Facebook-owned Oculus VR) and other expert AI and biotechnology investors. DLI has also established a key research partnership with one of the world's leading longevity organisations, HLI. Under this arrangement, HLI will provide DLI's developed haematological aging clocks to a global network of advanced physicians and longevity research specialists and HLI will share the revenue generated from the patients' test reports with DLI. DLI's products, including the aging clocks and AgeMetricTM reports, do not require any licensing or regulatory approvals. The Apple App Store approved the launch of the Young.AI mobile App on 29 September 2020, thereby validating its technology and affording DLI with a huge scaling-up market opportunity. Like any other application or website, this is DLI's first version of its App and website, and DLI, like other App providers, will provide further updated versions of its App and website by ironing out any bugs and improving and adding products over time. Future investment will mainly come in developing new product launches (more aging clocks), improving existing products, social media/marketing and adding personnel. Utilising advanced deep learning algorithms, DLI develops novel tools for aging research that can be applied in many industries to make people live better, longer and healthier lives.

DLI is operated by Alex Zhavoronkov, as Chief Longevity Officer position, and Polina Mamoshina, as Chief Operating Officer and Chief Scientific Officer. In addition, DLI has an experienced team of scientists, engineers, and designers involved in the development of the web application, new aging clocks and automation of AgeMetricTM reports. We welcome the DLI team into the Group and look forward to achieving milestones and enjoying commercial success in the near future.

Page 8 of 46

Other Existing Investments

Looking at the Group's existing and legacy investments in natural resources (which are non- core and are the focus of its existing divestment programme), precious and base metals investments have performed very strongly and the Group's not insignificant exposure to base metals (copper and zinc in particular) continues to enjoy a recovery of note. While commodity markets remain volatile, there has been a noticeable shift of investment activity towards exploration and not just producers. We remain confident that on a fundamental basis, demand will be underpinned by urbanisation of emerging and recovery of developed economies globally. Since year end, we are delighted to see the significant increase in our investment in Venturex, which has significantly improved in the last four weeks and, accordingly the Group as at 15 March 2021 had an unrealised gain of approximately US$7.04 million and a marked-to-market value of approximately US$9.43 million on this investment, representing a 295% increase from 31 December 2020.

Outlook

Rising COVID-19 case numbers in the US and Europe make it difficult right now to envision a return to normal. Yet, even as the pandemic drags on, the global economy has proven remarkably resilient. Following a steep decline in early 2020, the world economy rode a rebound that began in May and remains on track to surpass pre-pandemic GDP levels by the end of 2020, setting the stage for strong post-recovery growth in 2021. The V-shaped recovery that many forecast during 2020 is now seemingly entering a new self-sustaining phase and is on track to deliver 6.4% GDP growth in the coming year. This projection is in contrast to the predictions of others, who forecast 5.4% global growth on a consensus basis and who are concerned that the pandemic will have a bigger impact on private-sector risk appetite and, hence, global growth. I maintain a more positive view in that consumers have driven the recovery, and investment growth, which reflects a healthy tolerance for risk in the private corporate sector, which is a critical feature to any self-sustaining recovery.

Moreover, unlike the Group's legacy investments in natural resources, the Group's healthcare, wellness and life sciences investments are far less sensitive to macroeconomic fundamentals and fluctuations and remain its core focus.

Page 9 of 46

Our strategy remains the same and our balance sheet has us well positioned to deliver on this. The Company has every intention of continuing with its existing business of investing in companies engaged in the health care, wellness and life sciences sectors. With the commercialisation of DLI's Young.AI mobile App and the Young.AI website, together with partnering with clinics, laboratories and insurance companies by offering its AgeMetricTM reports and access to its online platform, as well as the ongoing commercialisation of Fortacin across targeted markets, our progress with the NMPA and the FDA and ongoing discussions with other possible commercial partners, we remain tremendously excited about the future prospects for the Group.

On behalf of the Board, I want to thank our shareholders for their continued support and our employees for their hard work in another challenging, but rewarding year.

Page 10 of 46

RESULTS

The directors (the "Directors" or the "Board") of Regent Pacific Group Limited (the "Company" and collectively with its subsidiaries, the "Group") announce the audited results of the Group for the year ended 31 December 2020, together with comparative figures for the year ended 31 December 2019, as follows:

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2020

2020

2019

Notes

US$'000

US$'000

Revenue:

4

Milestone and royalty income

1,212

164

Corporate investment income

108

464

Other income

371

94

1,691

722

Fair value gain/(loss) on financial instruments

5(a)

458

(1,035)

Total income less fair value gain/(loss) on

financial instruments

2,149

(313)

Expenses:

Employee benefit expenses

6

(3,258)

(3,924)

Rental and office expenses

(663)

(718)

Information and technology expenses

(159)

(180)

Marketing costs and commissions

(61)

(111)

Professional and consulting fees

(674)

(1,161)

Research and development expenses

(2,458)

(3,306)

Amortisation of intangible assets

(19,407)

(28,047)

Other operating expenses

(349)

(354)

Read this article:
Regent Pacific : Audited final results for the year ended 31 December 2020 and proposed change of company name | MarketScreener - Marketscreener.com