Notes

1 Notes : (1) Changes in Significant Subsidiaries during the Period under Review: (Changes in specified subsidiaries resulting in a change in the scope of consolidation). New: Excluded: . (2) Changes in Accounting Policies and Changes in Accounting Estimates Changes in accounting policies that are required under IFRS: Changes in accounting policies other than : Changes in accounting estimates: (3) Number of Shares Issued (Common Stock). Number of shares issued as of the end As of December As of December 47,462,943 shares 43,513,149 shares of the period (including treasury stock) 31, 2021 31, 2020. Number of treasury stock as of the end of As of December As of December 1,313 shares 1,223 shares the period 31, 2021 31, 2020. Average number of shares for the period As of December 46,924,021 shares As of December 43,437,352 shares 31, 2021 31, 2020. * This consolidated financial report is not subject to audit procedures by certified public accountants or an auditing firm. * Explanation Concerning the Proper Use of Financial Results Forecasts and Other Relevant Specific Items Forward-looking statements including earnings forecasts contained in this report are based on currently available information and management's assumptions and beliefs regarding uncertainties that may impact future earnings forecasts.

2 The Company cautions readers that actual results may differ materially from forecasts due to a variety of factors. For the assumptions that underpin financial results forecasts as well as other related items, please refer to 1. (5) Outlook for the fiscal year ending December 31, 2022.. The Company is planning to conduct a corporate presentation meeting for institutional investors and analysts on February 18, 2022. Briefing materials used at that session will be posted on the Company's website as soon as practicable after the meeting. GNI Group Ltd. (2160) Consolidated Financial Results FY2021. Contents 1. Analysis of Operating Results and Financial Position 2. (1) Analysis of operating results 2. (2) Analysis of financial position 3. (3) Analysis of cash flows .. 3. (4) Research and development activities . 4. (5) Outlook for the fiscal year ending December 31, 2022 5. 2. Basic Policy on the Selection of Accounting Standards .. 5. 3. Consolidated Financial Statements and Notes .

3 6. (1) Consolidated statements of financial position . 6. (2) Consolidated statements of income and consolidated statements of comprehensive income 8. (3) Consolidated statements of changes in equity .. 9. (4) Consolidated statements of cash flows .. 13. (5) Notes to consolidated financial statements .. 15. ( Notes related to going concern assumptions) .. 15. (Basis of preparation) .. 15. (Segment information) 16. (Earnings per share) 19. (Important subsequent events) 20. 1. GNI Group Ltd. (2160) Consolidated Financial Results FY2021. 1. Analysis of Operating Results and Financial Position (1) Analysis of operating results For fiscal year 2021, the GNI Group posted a topline of Billion, essentially level with our revised forecast published on August 11th 2021, and above our revenues a year earlier. FY2021 was another strong year despite the continuing global impact of the COVID-19. Gross profit of Billion was well above last year by Operating profit was Billion, a decrease of over one year earlier.

4 This result was primarily due to increased investments in our core R&D drug development and clinical trial activities in the China and the USA; expansion of our manufacturing capacity in China to further support future drug sales; higher sales and marketing expenses for our pharmaceutical sales in China; and costs associated with Beijing Continent Pharmaceutical Co., Ltd's (hereinafter referred to as BC) IPO preparations. The Group's profit after tax was Million, a decrease of YoY, primarily due to non-cash accrual costs of interest expenses associated with financings of Cullgen Inc. (hereinafter referred to as Cullgen) in the USA and an increase in tax expenses related to the successful financial returns on two of the Company's equity investments during the year among other things. BC, a consolidated subsidiary of the Company, produced continued strong sales growth in China for Etuary and further expanded its sales force. BC made steady progress on clinical trials in China for both F351 Phase III for HBV-induced liver fibrosis (enrollment commenced in January 2022) and F573 Phase I (also started in January, 2022).

5 Both BC and Cullgen continue their preparations opportunistically (depending on capital market conditions) to pursue stock exchange listings. Berkeley Advanced Biomaterials LLC (hereinafter referred to as BAB) in the USA grew its business despite the ongoing impact of COVID-19. At Million revenues came in well above the previous year's Million on a local currency basis. Cullgen continued to heavily invest in enhancing its R&D capabilities, both in the USA and China. As disclosed on December 24th, 2021, GNI Group will transfer to Growth Board of the Tokyo Stock Exchange after its bourse's listing boards organization in April, 2022. Operating results by segment Pharmaceutical Segment Revenue from the GNI Group's main drug product Etuary in the Chinese market continued strong. The Pharmaceutical Segment had Billion of revenue and 983 Million of operating profit, an increase of and decrease of YoY, respectively. The decrease in the operating profit was due to expansion of sales force, marketing initiatives, and an expansion of manufacturing capacity at BC.

6 Medical Device Segment In the USA, BAB's biomaterials business is well-established and has rebounded to achieve growth throughout the two years of the COVID-19 pandemic. Selling, General and Administrative Expenses; Research and Development Expenses Thousand yen FY2020 FY2021 Difference Selling, general and administrative expenses (5,180,715) (7,958,654) (2,777,938). Personnel expenses (1,893,602) (2,983,245) (1,089,642). Research and development expenses (1,243,158) (2,015,875) (772,716). Selling, general and administrative (SG&A) expenses for the twelve-month period ended December 31, 2021 were Billion, an increase of Billion YoY. The increase in SG&A expenses reflects the related sales and marketing expenses of the Pharmaceutical Segment and personnel expenses at both BC and Cullgen. The increase in Research and Development expenses primarily reflects our investment in clinical trials at BC and Cullgen. 2. GNI Group Ltd. (2160) Consolidated Financial Results FY2021.

7 Finance Income and Finance Costs Thousand yen FY2020 FY2021 Difference Finance income 46,074 129,960 83,885. Finance costs (109,702) (647,898) (538,196). Finance income In the twelve-month period ended December 31, 2021, GNI Group recorded finance income of 130 Million, an increase of 84. Million YoY. Finance costs In the twelve-month period ended December 31, 2021, GNI Group recorded finance costs of 648 Million, an increase of 538. Million YoY. These finance costs were primarily a result of the contingent interest expense related to financing activities at GNI. Group's subsidiary. (2) Analysis of financial position Summary of Consolidated Financial Position Thousand yen As of December 31, 2020 As of December 31, 2021 Difference Total assets 23,219,257 30,296,980 7,077,722. Total liabilities 10,450,153 11,030,734 580,581. Total equity 12,769,104 19,266,246 6,497,141. Total assets As of December 31, 2021, Total assets stood at Billion, an increase of Billion YoY. This increase is mainly due to the increase in cash and cash equivalents from our fund raising.

8 Total liabilities As of December 31, 2021, Total liabilities stayed almost flat at Billion, an increase of Billion YoY. Total equity As of December 31, 2021, Total equity stood at Billion, an increase of Billion YoY. The increase was due mainly to the new shares issued through 3rd-party allotment. (3) Analysis of cash flow Summary of Consolidated Cash Flows Thousand yen FY2020 FY2021 Difference Cash flows from operating activities 1,377,519 552,268 (825,251). Cash flows from investing activities 570,205 (260,639) (830,844). Cash flows from financing activities 801,115 2,853,211 2,052,095. Cash flows from operating activities The cash flow from operating activities came to 552 Million in the twelve-month period ended December 31, 2021, a decrease of 825 Million YoY. The principal source of cash inflow for the period was the profit before tax. Cash flows from investing activities The cash flow from investing activities came to negative 261 Million (cash outflow) in the twelve-month period ended December 31, 2021, a decrease of 831 Million YoY.

9 The major source of cash outflow came from the purchases of property, plant and equipment, especially due to the facility expansions in the factory in China for both Etuary and F351. Cash flows from financing activities The cash flow from financing activities came to Billion in the twelve-month period ended December 31, 2021, an increase of Billion YoY. The major source of cash inflows for the period was proceeds related to our non-controlling interest in Cullgen. 3. GNI Group Ltd. (2160) Consolidated Financial Results FY2021. (4) Research and development activities [Discovery activities]. GNI Group's drug discovery activities are centered on Cullgen, with the objective of developing innovative new chemical entities (NCEs) for the novel treatment of diseases, utilizing its drug discovery platform uSMITE (ubiquitin-mediated, small molecule induced target elimination). Cullgen continues to make steady progress with its therapeutic degrader pipeline, with multiple new degradation agents including enzyme and non-enzyme protein that target cancer, pain and autoimmune indications.

10 Cullgen's novel E3 ligand development program is the core technology that is a key to the future of targeted protein degradation and aims to develop NCEs that reduce toxicity; alleviate drug resistance; provide tissue, tumor and subcellular compartment selectivity; and expand the substrate spectrum Cullgen initiated Pre-IND consultations with the National Medical Products Administration (NMPA) China. [Development activities]. Etuary . Radiation Pneumonitis (RP). As the second therapy indication for Etuary , a Phase III clinical trial pilot study for the treatment of RP is being conducted. This is a multi-center open study. The expanded clinical trial has 111 subjects enrolled as of December 2021. Diabetic Kidney Disease (DKD). The third Etuary indication is for DKD, a chronic kidney disease caused by either type I or type II diabetes. million people are estimated to be threatened by diabetes in China, with 20-30% of them suffering from type 1 or type 2 diabetes and developing renal dysfunction.