ASX/AIM Announcement         

                                                                                                                        30 April 2026

Quarterly Update and Appendix 4C - March 2026

HIGHLIGHTS

•     Milestone quarter Wellnex Life achieved its first quarter of positive operating cash flow since the current turnaround strategy commenced, marking a significant inflection point in the Company's ongoing progression

•     Customer cash receipts increased 30.8% to $6.67 million (Q2 FY26: $5.10 million), reflecting strong commercial momentum and improved working capital conversion across the Company's brand portfolio

•     Operating cash flow moved to positive $0.41 million (Q2 FY26: outflow of $0.16 million), a quarter-on-quarter improvement of $0.57 million driven by disciplined cost management

•     Staff costs declined 29% quarter-on-quarter to $0.75 million (Q2 FY26: $1.06 million), reflecting the tangible and structural benefits of the Company's ongoing cost reduction programme

•     Cost reduction strategy continued across advertising and marketing (down to $0.54 million from $0.62 million in the prior quarter) and administration, demonstrating broad-based operational efficiency gains

•     The Board remains firmly focused on delivering Q4 FY26 with revenue growth, margin improvement and cash generation as its core priorities

Wellnex Life Limited (ASX/AIM: WNX) ("Wellnex Life" or the "Company") is pleased to provide its quarterly operational and business update together with its Appendix 4C for the quarter ended 31 March 2026 (all figures unaudited). The March 2026 quarter represents a defining moment in Wellnex Life's turnaround, with the Company returning to positive operating cash flow for the first time since the current management team's strategy was implemented.

Momentum accelerates

Customer cash receipts for Q3 FY26 improved to $6.67 million, representing a 30.8% increase on the $5.10 million recorded in Q2 FY26. This strong uplift reflects genuine commercial momentum across Wellnex Life's core brand portfolio, including Pain Away, Wakey Wakey and Nighty Night, as well as continued improvement in the Company's working capital cycle and cash conversion. Year-to-date customer receipts stand at $16.31 million.

Revenue in Q3 FY26 declined compared to Q2 FY26 due, in part, to the cyclical nature of IP licensing as well as reduced investment, in the short term, in the Company's non-core brands, in particular marketing and advertising. Notwithstanding this, the Company is targeting stronger revenue growth in Q4 FY26, benefiting from more focussed marketing effort and typically higher activity across the business in Q4.

Operating cash flow turns positive

The Company delivered net operating cash flow of positive $0.41 million in Q3 FY26, compared to an outflow of $0.16 million in Q2 FY26 - a quarter-on-quarter improvement of $0.57 million. This positive result reflects the combined impact of accelerating customer receipts and the sustained cost discipline implemented across the organisation throughout FY26. The achievement of positive operating cash flow is a key milestone in the Company's turnaround and validates the strategy being executed by the Board and management team.

Structural cost reductions deliver results

The benefits of the Company's cost reduction programme are clearly evident in Q3 FY26results. Staff costs declined sharply to $0.75 million, down 29% from $1.06 million in Q2 FY26, reflecting a leaner, more efficient organisational structure. Advertising and marketing expenditure reduced to $0.54 million from $0.62 million, albeit with a short-term impact on revenue, while administration and corporate costs also declined. Product manufacturing and operating costs increased to $3.60 million (Q2 FY26: $2.51 million), consistent with the sales volumes recorded during the quarter and ongoing investment in supporting the Company's core product lines.

Related party payments

Payments of $0.32 million were made to related parties during the quarter. These payments relate to directors' fees, executive remuneration and associated costs incurred in the ordinary course of business.

Outlook

The Board enters Q4 FY26 with confidence, building on the positive operating cash flow result and a targeted revenue trajectory in Q4 FY26. Management's focus for the final quarter of FY26, and beyond, is on sustaining revenue growth, continuing to improve gross margins through the Company's owned-brand strategy, and further strengthening the balance sheet. The Company believes it is well-positioned to deliver a strong finish to FY26 and to build on the turnaround foundations established during the year.

This ASX/AIM announcement has been authorised by the Board of Wellnex Life Limited (ASX/AIM:WNX).

The information contained within this announcement is deemed by the Company to constitute inside information pursuant to article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.

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For further information, please contact:

Wellnex Life Limited (ASX/AIM:WNX)                            

Eric Jiang                                                                               

Interim Executive Chairman                                                              

E: [email protected]    

UK Investors

Strand Hanson (Financial & Nominated Advisor)

James Harris / Richard Johnson                                         Tel: +44 (0) 20 7409 3494

Orana Corporate LLP (Joint Broker)                                 [email protected]

Sebastian Wykeham    

S.P. Angel Corporate Finance LLP (Joint Broker)           Tel: +44 (0)20 3470 0470

David Hignell / Vadim Alexandre

To learn more, please visit: https://wellnexlife.com.au/

Appendix 4C

Quarterly cash flow report for entities
subject to Listing Rule 4.7B

Compliance statement

1          This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2          This statement gives a true and fair view of the matters disclosed.

                                    30 April 2026

Date:                ...................................................................................

                                    The Board of Directors

Authorised by: ...................................................................................

(Name of body or officer authorising release - see note 4)

Notes

1.          This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2.          If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3.          Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4.          If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

5.          If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.