YS Biopharma Announces Unaudited Financial Results for the First Quarter of Fiscal Year 2024 Pipeline makes progress towards commercialization as robust demand for YSJA rabies vaccine continues Gross margin increases to

YS Biopharma Announces Unaudited Financial

Results for the First Quarter of Fiscal Year 2024

Pipeline makes progress towards commercialization

as robust demand for YSJA rabies vaccine continues

Gross margin increases to 80.3%; balance sheet

GAITHERSBURG, MD., August 15, 2023 /PRNewswire/

-- YS Biopharma Co., Ltd. (NASDAQ: YS) ("YS Biopharma" or the "Company"), a global biopharmaceutical company dedicated

to discovering, developing, manufacturing, and delivering new generations of vaccines and therapeutic biologics for infectious diseases

and cancer, today announced its unaudited financial results for the first quarter of the fiscal year ended March 31, 2024 (the "first

quarter of fiscal year 2024").

Dr. David Shao, Director, President, and CEO of

YS Biopharma, commented, "During the first quarter of fiscal year 2024, our top-line came under pressure from tight inventory levels

of finished products available for sale, caused by the lingering impacts of COVID-related disruptions at our YSJA rabies vaccine manufacturing

facilities. While these disruptions occurred in late 2022 and early 2023, the long and complex nature of the vaccine manufacturing process

means that we are experiencing the impact at present. In the first quarter, we took several steps to enhance our operations and ensure

future stability, including boosting manufacturing productivity, building out our sales network, and streamlining research and development

efforts. Demand for our YSJA rabies vaccine remains robust, and we continue to bring our pipeline of promising product candidates, including

our next generation PIKA rabies vaccine, towards commercialization. We are confident that we will overcome the near-term difficulties

we have faced, and we believe we are well-positioned for sustainable, long-term success."

Ms. Brenda Wu, CFO of YS Biopharma, added, "In

the first quarter of fiscal year 2024, our total revenues were RMB176.3 million, as we continued to deal with the fallout of COVID-related

disruptions on our supply chains and manufacturing operations. Our gross profit for the quarter was RMB141.6 million, and we recorded

a solid gross profit margin of 80.3%. As of the end of the first quarter, our balance sheet remains strong, and we plan to diligently

monitor our expenses in order to create a stable foundation for our long-term growth. We are confident in our business model and excited

for the opportunities the future holds."

YSJATM Rabies Vaccine

YS Biopharma's marketed vaccine product,

YSJATM rabies vaccine, was the first aluminum-free lyophilized rabies vaccine launched in China. Since the Company commenced

production at its current GMP-compliant facilities in February 2020, and, since it commenced the product's commercialization in

late 2020, market intake of the Company's YSJA rabies vaccine has been consistent and strong. As of June 30, 2023, YS Biopharma

had sold more than 22.2 million doses of YSJATM rabies vaccines to approximately 1,725 CDC customers, which represents over

60% of CDC customers in China.

YS Biopharma continues to advance its portfolio

of innovative product candidates under various clinical development stages, including PIKA rabies vaccine, PIKA recombinant COVID-19 vaccine,

PIKA Recombinant COVID-19 Vaccine

First Quarter of Fiscal Year 2024 Financial

Total revenues were RMB176.3 million (US$24.4

million) in the first quarter of fiscal year 2024, compared to RMB205.5 million in the same period of fiscal year 2023, representing a

change of 14.2%. This was primarily due to COVID-related disruptions affecting raw material supply chains, manufacturing operations, and

production output at the Company's YSJA rabies vaccine production facilities, which negatively impacted batch approvals and doses

Gross profit was RMB141.6 million (US$19.6 million),

representing an 80.3% gross margin, compared to RMB154.3 million, or a 75.1% gross margin, in the same period of fiscal year 2023.

Selling and Marketing Expenses

Selling and marketing expenses in the first quarter

of fiscal year 2024 were RMB79.2 million (US$11.0 million), compared to RMB70.5 million in the same period of fiscal year 2023. The increase

in selling and marketing expenses reflects the Company's ongoing long-term strategies to enhance promotional and marketing services

in order to expand and strengthen its distribution network of district- and county-level CDCs and hospitals. This targeted expansion aligns

with the Company's commitment to driving growth in key markets.

General and Administrative Expenses

General and administrative expenses in the first

quarter of fiscal year 2024 were RMB31.8 million (US$4.4 million), compared to RMB25.5 million in the same period of 2023. This change

was primarily attributable to higher professional service fees associated with the Company's status as a publicly-listed entity.

Research and Development Expenses

Research and development expenses were RMB100.6

million (US$13.9 million) in the first quarter of fiscal year 2024, compared to RMB70.3 million in the same period of 2023. The change

was primarily driven by an increase in preclinical and clinical development costs associated with the Company's rabies vaccine pipeline.

This increase reflects the Company's targeted allocation of resources to advance its promising rabies vaccine candidates through

various stages of development, in line with the Company's commitment to innovation and addressing unmet medical needs.

Net loss for the first quarter of fiscal year

2024 was RMB69.5 million (US$9.6 million), compared with RMB19.6 million in the same period of 2023.

As of June 30, 2023, the Company had cash and

cash equivalents of RMB311.8 million (US$43.1 million), compared with RMB370.4 million as of March 31, 2023.

As part of its strategy to unlock the commercial potential of its vaccine

franchise in underserved markets in Southeast Asia, the Company recently set up a new subsidiary in the Philippines to focus on clinical

and regulatory efforts and product commercialization.

Conference Call Information

The Company's management will hold an earnings

conference call on Tuesday, August 15, 2023 at 8:00 P.M. Eastern Time to discuss the financial results. Listeners may access the call

by dialing the following numbers:

The replay will be accessible

through August 22, 2023 by dialing the following numbers:

A live and archived webcast of the conference

call will also be available at the Company's investor relations website at https://investor.ysbiopharm.com/.

YS Biopharma is a global biopharmaceutical

company dedicated to discovering, developing, manufacturing, and delivering new generations of vaccines and therapeutic biologics for

infectious diseases and cancer. It has developed a proprietary PIKA immunomodulating technology platform and a new

generation of preventive and therapeutic biologics targeting Rabies, Coronavirus, Hepatitis B, Influenza, Shingles, and other virus infections.

YS Biopharma operates in China, the United States, Singapore, and the Philippines, and is led by a management

team that combines rich local expertise and global experience in the biopharmaceutical industry. For more information, please visit investor.ysbiopharm.com.

Exchange Rate Information

This announcement contains translations of certain

RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from

RMB to U.S. dollars are made at a rate of RMB 7.2258 to US$1.00, the exchange rate set forth in the central parity rate release of the

People's Bank of China on June 30, 2023.

Cautionary Statement Regarding Forward-Looking

This press release contains "forward-looking

statements'' within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange

Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical

or current fact included in this press release are forward-looking statements, including but not limited to statements regarding the expected

growth of YS Biopharma, the development progress of all product candidates, the progress and results of all clinical trials, YS Biopharma's

ability to source and retain talent, and the cash position of YS Biopharma following the closing of the Business Combination. Forward-looking

statements may be identified by the use of words such as "estimate," "plan," "project," "forecast,"

"intend," "will," "expect," "anticipate," "believe," "seek," "target"

or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These

statements are based on various assumptions, whether identified in this press release, and on the current expectations of YS Biopharma's

management and are not predictions of actual performance.

These statements involve risks, uncertainties

and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from those