Polaris Pharmaceuticals-KY Supplements Information on the Financial and Operational Impact of Pausing the Phase III Clinical Trial of ADI-PEG 20 for LMS Treatment

1. Date of Event: 115/07/27

2. Company Name: Polaris Pharmaceuticals Group Co., Ltd.

3. Relationship with Company (please enter 'Company' or 'Subsidiary'): Company

4. Cross-shareholding Ratio: Not applicable

5. Reason for Occurrence: Supplement to point 3 regarding impact on company's financial and operational status

6. Item to be Corrected / Report Name: 3. Impact on Company's Financial and Operational Status

7. Information Before Correction / Amount / Content / Page:

Following the recommendation of the DSMB, the company has resolved to temporarily pause the trial. This decision has no material impact on the company's financial or operational status at this time.

8. Information After Correction / Amount / Content / Page:

The decision to pause the Phase III clinical trial of ADI-PEG 20 for leiomyosarcoma (LMS) impacts the company’s financial and operational aspects primarily through optimization of resource allocation and enhancement of long-term operational resilience. Operationally, the company is currently actively restructuring its organization and comprehensively re-evaluating all key business initiatives. This development program adjustment is based on the company's overall business strategy, particularly considering the critical issue of product exclusivity period in long-term commercialization planning. The decision was made after careful assessment of overall development feasibility. Going forward, the company will conduct in-depth analysis of existing clinical trial data, optimize patient populations and trial design, to more accurately assess next-stage directions and strategic options, thereby enhancing asset value and overall R&D efficiency. Financially, pausing trial advancement and withdrawing the application will immediately reduce substantial patient enrollment costs and administrative regulatory fees, effectively controlling operating expenses. Furthermore, the funds saved will be reallocated, enabling the company to flexibly concentrate resources on optimizing its product portfolio or other higher-yield R&D projects. This improves capital efficiency and further strengthens the company’s long-term financial stability. Based on estimates, this pause is expected to save approximately USD 30 million.

9. Countermeasures: Not applicable

10. Other Matters to be Disclosed:

The estimated financial savings are provided in response to exchange requirements. The company can only estimate savings based on past experience and does not guarantee or commit to actual future savings. Since the company’s core business involves clinical trials, R&D progress is highly subject to uncertain factors such as regulatory reviews, patient recruitment timelines, and clinical data outcomes. Actual financial results may differ from the current estimates.