Regencell Bioscience Holdings Limited Announces First Half 2025 Management Financial Results

Regencell Bioscience Holdings Limited Announces

First Half 2025 Management Financial Results

HONG KONG, June 30, 2025 - Regencell Bioscience

Holdings Limited (Nasdaq: RGC) (the "Company") today announced its unaudited condensed consolidated interim financial results

for the six months ended December 31, 2024.

UNAUDITED CONDENSED CONSOLIDATED INTERIM

FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024

UNAUDITED CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS

UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS

OPERATIONS AND COMPREHENSIVE LOSS

MANAGEMENT'S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management's Discussion and Analysis of

Financial Condition and Results of Operations ("Management's Discussion this and Analysis") is designed to provide

you with a narrative explanation of the financial condition and results of operations of Regencell Bioscience Holdings Limited as of and

for the six months ended December 31, 2024. Unless otherwise indicated or the context otherwise requires, all references in this discussion

and analysis to "RGC", the "Company," "we," "our," "ours," "us"

or similar terms refer to Regencell Bioscience Holdings Limited and its consolidated subsidiaries.

You should read this Management's Discussion

and Analysis in conjunction with our summary of unaudited condensed consolidated interim financial statements as of and for the six months

ended December 31, 2024. You should also read this Management's Discussion and Analysis in conjunction with our audited consolidated

financial statements, including the notes thereto, and the section titled "Risk Factors" included in the Company's Annual

Report on Form 20-F filed with the United States Securities and Exchange Commission ("SEC") on October 25, 2024.

Our unaudited condensed consolidated interim financial

statements were prepared in accordance with U.S. GAAP. The Company's functional currency is Hong Kong Dollar ("HK$")

and its financial statements are presented in U.S. dollars. "HK$" refers to the legal currency of Hong Kong and "$",

"US$" or "U.S. Dollars" refers to the legal currency of the United States. We have made rounding adjustments to

some of the figures included in this Management's Discussion and Analysis. Accordingly, any numerical discrepancies in any table

between totals and sums of the amounts listed are due to rounding.

Note Regarding Forward-Looking Statements

Management's Discussion and Analysis contains "forward-looking statements" within the meaning of the Private Securities

Litigation Reform Act of 1995. You can identify some of these forward-looking statements by words or phrases such as "may,"

"will," "expect," "anticipate," "aim," "estimate," "intend," "plan,"

"believe," "is/are likely to," "potential," "continue" or other similar expressions. Statements

that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements.

Among other things, the business outlook from management in this Management's Discussion and Analysis, as well as the Company's

strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking statements

in its periodic reports to the U.S. Securities and Exchange Commission ("SEC") on Forms 20-F and 6-K, in its annual reports

to shareholders, in its and other written materials and in oral statements made by its officers, directors or employees to third parties.

Forward-looking statements involve inherent risks and uncertainties.

number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but

not limited to the following: the Company's goals and strategies; the Company's future business development, financial condition

and results of operations; changes in the Company's expenditures; general economic and business conditions globally; and assumptions

underlying or related to any of the foregoing.

information regarding these and other risks is included in the Company's annual report on Form 20-F and current report on Form

6-K and other documents filed with the SEC. All information provided in this Management's Discussion and Analysis is as of the

date of furnishing of this Management's Discussion and Analysis, and the Company does not undertake any obligation to update any

forward-looking statement, except as required under applicable laws.

addition to the information disclosed in the Company's prior filings with the SEC, investors should consider recent developments

in the market for our ordinary shares, including but not limited to:

Regencell Bioscience Holdings Limited

We are a holding company

incorporated on October 30, 2014 under the laws of the Cayman Islands, and conduct our business in Hong Kong through our wholly-owned

subsidiary, Regencell Bioscience Limited, a company incorporated in Hong Kong on May 12, 2015, and Regencell Limited, a company incorporated

in Hong Kong on November 20, 2014. We are an early-stage bioscience company that focuses on research, development and commercialization

of Traditional Chinese Medicine ("TCM") for the treatment of neurocognitive disorders

and degeneration, specifically Attention Deficit Hyperactivity Disorder ("ADHD") and

Autism Spectrum Disorder ("ASD"). Our goal is to save and improve the lives of the patients, their families and caregivers

and become a market leader in natural and holistic treatments for neurological disorders globally.

Our TCM formulae candidates are derived from a

TCM base formula and an adjustable formula developed by Regencell's strategic partner, TCM Practitioner, Mr. Sik-Kee Au, based on

his TCM brain theory, known as "Sik-Kee Au TCM Brain Theory " ("TCM Brain Theory"), and have been

demonstrated to reduce severity in patients' ADHD and ASD conditions, as reflected in lower Autism

Treatment Evaluation Checklist ("ATEC"), Gilliam Autism Rating Scale ("GARS"), Vanderbilt ADHD Diagnostic Parent

Rating Scale ("VADRS") and Swanson, Nolan, and Pelham (SNAP)-IV 26-item Parent Rating Scale ("SNAP-IV-26")

assessment scores, using the personalized TCM formula in our first research study. Further to our first research study, we conducted a

second efficacy trial, using standardized TCM formulae. A total of 28 patients in Hong Kong, who were clinically diagnosed with ADHD and/or

ASD by their healthcare professionals at different levels of severity, voluntarily consented through their parents or guardians to participate

in our second efficacy trial. In this second efficacy trial, the TCM Practitioner treated the enrolled patients with the use of the standardized

TCM formula. The enrolled patients ranged from five to thirteen years old. All enrolled patients completed a three-month treatment. Under

the treatment by the TCM Practitioner, the enrolled patients consumed liquid-based TCM formulae twice a day, which was prepared based

on standardized TCM formulae by our TCM Practitioner, and temporarily stopped consuming any other medicines. All the enrolled patients

and their parents were required to meet with the TCM Practitioner in his clinic weekly and provide regular reports to update the patients'

symptoms and conditions by phone. A summary of the interim report can be found on our website at https://www.regencellbioscience.com under

the patient case studies tab.

We used ATEC and VADRS, together with in-house

developed Sik-Kee Au TCM Brain Theory for ADHD/ASD Assessment (SKATBT-A3), and also written observations,

photos, videos and parent testimonials to track the patients' progress. Within three months of using our TCM formulae, our research

showed that the patients had attained better speech, communication, sociability, cognition and behavioral abilities. Patients also experienced

better sleep quality, improved appetite and improved bowel movement. Sweating and temporary fatigue were experienced as part of the improvement

process. As of the date hereof, the TCM Practitioner has standardized the adjustable formula into three Fixed Adjusted Formulas for mild,

moderate and severe ADHD and ASD conditions. The TCM Brain Theory is not recognized in the general literature of TCM or elsewhere. However,

the TCM Practitioner has prescribed the TCM formula based on his TCM Brain Theory for over 30 years to treat ADHD, ASD and many neurological

illnesses, disorders and degeneration and obtained satisfactory clinical treatment results. Such clinical treatment results are not supported

by controlled clinical data or trials.

We aim to launch three standardized liquid-based

TCM formulae candidates for mild, moderate and severe ADHD and ASD patients in Hong Kong first and subsequently to other markets as we

Results of Operations

During the six months ended December 31, 2024,

we incurred total operating expenses of approximately $2.0 million, a decrease of approximately $0.3 million, or 14%, as compared to total

operating expenses of approximately $2.3 million during the six months ended December 31, 2023.

Selling and marketing expenses decreased by approximately

$0.09 million, or 92%, to approximately $7 thousand for the six months ended December 31, 2024 from approximately $0.1 million for the

six months ended December 31, 2023. The selling and marketing expenses were mainly relating to digital marketing and the decrease was

mainly due to a decrease in digital marketing activities.

General and administrative expenses decreased