WORK MEDICAL TECHNOLOGY GROUP LTD UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In U.S. dollars, except for otherwise noted) As of

WORK MEDICAL TECHNOLOGY GROUP LTD

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In U.S. dollars, except for otherwise noted)

The accompanying notes are an integral part of

these unaudited condensed consolidated financial statements.

WORK MEDICAL TECHNOLOGY GROUP LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS

OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME

(In U.S. dollars, except for otherwise noted)

The accompanying notes are an integral part of

these unaudited condensed consolidated financial statements.

WORK MEDICAL TECHNOLOGY GROUP LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

SIX MONTHS ENDED MARCH 31, 2024 AND 2025

(In U.S. dollars, except for share and per

share data, or otherwise noted)

The accompanying notes are an integral part of

these unaudited condensed consolidated financial statements.

WORK MEDICAL TECHNOLOGY GROUP LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In U.S. dollars, except for share and per share

data, or otherwise noted)

The accompanying notes are an integral part of

these unaudited condensed consolidated financial statements.

WORK MEDICAL TECHNOLOGY GROUP LTD

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except share and per share

WORK Medical Technology Group LTD (the "Company," "Work

Cayman," or "WORK") was incorporated under the law of the Cayman Islands on March 1, 2022 as an exempted company with

limited liability. The Company, together with its subsidiaries (collectively, the "Group"), is engaged in manufacturing and

selling medical consumables through its subsidiaries in the People's Republic of China (the "PRC" or "China").

The Company's shares began trading on the Nasdaq Capital Market under the ticker symbol "WOK" on August 23, 2024. On

August 26, 2024, the Company completed its initial public offering of 2,000,000 ordinary shares at a price of $4.00 per share (the "IPO").

On August 28, 2024, the underwriter for the IPO exercised its over-allotment option, in part, to purchase an additional 91,942 ordinary

shares at a price of $4.00.

History of the Group and Reorganization

The Company conducts its operations through its

PRC subsidiary Hangzhou Shanyou Medical Equipment Co., Ltd. ("Hangzhou Shanyou") and its subsidiaries.

In preparation for its IPO, the Group completed

a reorganization on May 6, 2022 (the "Reorganization"), which involved the following steps:

On February 21, 2022, Hangzhou Shanyou entered

into a share purchase agreement to purchase 60% equity shares of Hangzhou Hanshi Medical Equipment Co., Ltd. ("Hangzhou Hanshi")

from Baiming Yu. Since both Hangzhou Shanyou and Hangzhou Hanshi are under the common control immediately before and after the merger,

this transaction was accounted for as a common control merger using merger accounting as if the Reorganization had been consummated at

the beginning of the earliest period presented, and no gain or loss was recognized. All the assets and liabilities of Hangzhou Hanshi

are recorded at carrying value.

Immediately before and after share issuances and transfer of Work Cayman,

Work Hangzhou acquired Hangzhou Shanyou, and WFOE acquired Work Hangzhou. The ultimate shareholders in these entities, who are Baiming

Yu and his spouse, Liwei Zhang, did not change. Accordingly, the Reorganization has been treated as a corporate restructuring of entities

under common control. Thus, the current capital structure has been retroactively presented in prior periods as if such structure existed

at that time, and the entities are presented on a combined basis for all periods to which such entities were under common control.

WORK MEDICAL TECHNOLOGY GROUP LTD

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except share and per share

The unaudited condensed consolidated financial

statements reflect the activities of the Group and each of the following entities:

WORK MEDICAL TECHNOLOGY GROUP LTD

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. dollars, except share and per share

The accompanying unaudited

condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United

States of America ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC").

The accompanying unaudited condensed consolidated financial statements

include the unaudited condensed consolidated financial statements of the Company and its subsidiaries. Certain information and footnote

disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The accompanying

unaudited condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto included

in the Company's September 30, 2024 audited financial statements. The results of operations for the period ended March 31, 2025

are not necessarily indicative of the operating results for the full year.

All inter-company balances and transactions

are eliminated upon consolidation. For consolidated subsidiaries where the Group's ownership in the subsidiary is less than 100%,

the equity interest not held by the Group is shown as noncontrolling interests.

Accounts receivable are stated at the

original amount less an allowance for credit losses.

Accounts receivable are recognized

in the period when the Group has provided goods to its customers and when its right to consideration is unconditional. On October 1, 2023,

the Group adopted ASU 2016-13, "Financial Instruments - Credit Losses (Accounting Standards Codification ("ASC") Topic

326): Measurement on Credit Losses on Financial Instruments," including certain subsequent amendments, transitional guidance and

other interpretive guidance within ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-11, ASU 2020-02 and ASU 2020-03 (collectively, including

ASU 2016-13, "ASC 326"). ASC 326 introduces an approach based on expected losses to estimate the allowance for doubtful accounts,

which replaces the previous incurred loss impairment model. The Group's estimation of allowance for credit losses considers factors

such as historical credit loss experience, age of receivable balances, subsequent collection, current market conditions, reasonable and

supportable forecasts of future economic conditions, as well as an assessment of receivables due from specific identifiable counterparties

to determine whether these receivables are considered at risk or uncollectible.

The Group evaluates its accounts receivable for expected credit losses

on a regular basis. The Group maintains an estimated allowance for credit losses to reduce its accounts receivable to the amount that

it believes will be collected. The Group considers factors in assessing the collectability of its receivables, such as the age of the

amounts due, the customer's payment history, creditworthiness and other specific circumstances related to the accounts. The Group

adjusts the allowance percentage periodically when there are significant differences between estimated bad debts and actual bad debts.

If there is strong evidence indicating that the accounts receivable is likely to be unrecoverable, the Group also makes specific allowance

in the period in which a loss is determined to be probable. Accounts receivable balances are written off after all collection efforts

have been exhausted.

Advance to suppliers refers to advances

for purchase of materials and trading products, which is applied against accounts payable when the materials or trading products are received.

The Group reviews a supplier's credit history and background information before advancing a payment. If the financial condition