The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.Security code: 000963 Stock abbreviation: Huadong Medicine Announcement No.: 2025-098

Huadong Medicine Co. Ltd.Third Quarterly Report 2025

The Company and all members of the Board of Directors hereby guarantee that the

information presented in this report is authentic accurate and complete and free of any false

records misleading statements or material omissions.Important Declaration:

1. The Board of Directors directors and senior managers of Huadong Medicine Co. Ltd. (hereinafter referred to

as the "Company") hereby guarantee that the information presented in the Report is authentic accurate and

complete and free of false records misleading statements or material omissions and shall undertake individual

and joint legal liabilities.

2. The Company's legal representative the officer in charge of accounting and the head of accounting

department (accounting supervisor) hereby declare that the financial information in this quarterly report is

authentic accurate and complete.

3. Has the Third Quarterly Financial Accounting Report been audited

□Yes□No

According to “Stock Listing Rules of the Shenzhen Stock Exchange” if listed companies have both Chinese

and other language version of public notice they should ensure the content of both versions are the same. In the

case of discrepancy the original version in Chinese shall prevail.

1The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

I. Key Financial Data

(I) Key accounting data and financial indicators

Does the Company need to retroactively adjust or restate the accounting data of previous years

□Yes□No

Increase or decrease

during the current Change from the

Current reporting reporting period Beginning of the year to beginning of the year to

period compared with the the end of the reporting the end of the reporting

same period of last period period over the end of

year last year

Operating revenue

(RMB) 10989214170.47 4.53% 32664143135.68 3.77%

Net profit attributable

to shareholders of the 933089158.25 7.71% 2747916019.11 7.24%

listed company (RMB)

Net profit attributable

to shareholders of the

listed company after

deduction of non- 931780891.87 8.77% 2693515147.85 8.53%

recurring gains and

losses (RMB)

Net cash flow from

operating activities — — 2610851944.18 4.17%

(RMB)

Basic earnings per

share (RMB/share) 0.5389 8.45% 1.5682 7.09%

Diluted earnings per

share (RMB/share) 0.5320 7.41% 1.5666 7.02%

Weighted average

return on equity 3.79% -0.11% 11.39% -0.31%

End of the current Increase or decrease at the end of the current reporting

reporting period End of the last year period compared with the end of the last year

Total assets (RMB) 39928783200.48 37879046367.15 5.41%

Owners' equity

attributable to

shareholders of listed 24132887034.31 23060051397.36 4.65%

companies (RMB)

(II) Non-recurring profit and loss items and amounts

□Applicable □Not applicable

Unit: RMB

Item Amount during the current

Amount from the beginning

reporting period of the year to the end of the Descriptionreporting period

Gains and losses on disposal

of non-current assets

(including the write-off of 9885974.34 1817243.94

provision for impairment of

assets)

Government grants included

in the current profits and

losses (except those that are

closely related to the normal 32621540.72 163478438.74

business operation of the

Company comply with

national policies and

2The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

regulations are enjoyed in

accordance with the defined

criteria and have a lasting

impact on the Company's

profits and losses)

Reversal of impairment

provision of receivables

individually tested for 0.00 100000.00

impairment

Other non-operating revenue

and expenses other than those -39542738.93 -87678084.92

mentioned above

Other gain and loss items

conforming to the definition

of non-recurring gains and 0.00 -6672178.39

losses

Less: Amount affected by

income tax -2254916.50 8356574.12

Amount affected by minority

interests (after tax) 3911426.25 8287973.99

Total 1308266.38 54400871.26 --

Details of other gain and loss items conforming to the definition of non-recurring gains and losses:

□Applicable□Not applicable

The Company has no other specific circumstances of profit and loss items that meet the definition of non-recurring gains and

losses.An explanation of the fact that the non-recurring gain and loss items listed in the Explanatory Announcement No.1 on Information

Disclosure by Companies that Offer Securities to the Public - Non-recurring Gains and Losses are defined as recurring profit and

loss items

□Applicable□Not applicable

The Company did not define the non-recurring gain and loss items listed in the Explanatory Announcement No.1 on Information

Disclosure by Companies that Offer Securities to the Public - Non-recurring Gains and Losses as recurring profit and loss items.(III) Details and reasons for changes in key accounting data and financial indicators

□Applicable □Not applicable

Unit: RMB 10000

Items in the balance Closing Opening Percentag

sheet balance balance e change Reasons for changes

Notes receivable 563.08 1069.63 -47.36% Mainly attributable to the decrease in commercialacceptance bills receivable during the current period

Receivables financing 64291.85 167763.64 -61.68% Mainly attributable to discounting of bank acceptancebills during the current period

Accounts receivable 1113066.93 842535.89 32.11% Mainly attributable to the increase in accountsreceivable in the current period

Other receivables 78215.86 40287.04 94.15% Mainly attributable to the increase in provisionalpayment receivable in the current period

Notes payable 367598.71 257668.59 42.66% Mainly due to the increase in the issuance of notes inthe current period

Contract liabilities 11592.98 17360.91 -33.22% Mainly attributable to the decrease in advancepayments received in the current period

Employee compensation 23839.57 41713.31 -42.85% Mainly attributable to remuneration paid during thepayable current period

Taxes and dues payable 40074.77 64595.09 -37.96% Mainly attributable to the payment of taxes and fees

Non-current liabilities 10750.70 33052.89 -67.47% Mainly attributable to the repayment of long-term

3The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

due within one year borrowings due within one year in the current period

Long-term borrowings 29886.77 1426.28 1995.43% Mainly attributable to the increase in long-termborrowings in the current period

Lease liabilities 10089.07 7185.79 40.40% Mainly attributable to additional leases contract in thecurrent period

Other comprehensive

income 3276.34 -5059.82 164.75%

Mainly attributable to the increase in foreign currency

translation differences in the current period

Items in the profit Amount in Amount inthe current the previous Percentagstatement e change Reasons for changesperiod period

R&D expenses 150759.08 94866.29 58.92% Mainly attributable to the increase in R&D investmentin the current period

Financial expenses 1132.76 3801.78 -70.20% Mainly attributable to the increase in exchangeearning in the current period

Mainly attributable to the decrease in investment

Investment income -11936.81 -8671.03 -37.66% income recognized from associates in the current

period

Credit impairment losses -8395.94 -5793.99 -44.91% Mainly attributable to the increase in the bad debtprovision for receivables

Items in the cash flow Amount in Amount in Percentag

statement the current the previous e change Reasons for changesperiod period

Net cash flows from

investing activities -107839.19 -160445.56 32.79%

Mainly attributable to the decrease in investment in

the current period

Net cash flow from Mainly attributable to a year-on-year decrease in

financing activities -236263.79 -116141.66 -103.43% interest-bearing liabilities and payments made for theacquisition of minority interests in the current period

II. Shareholder Information

(I) Total number of common shareholders number of preferred shareholders with restored voting rights

and shareholdings of top 10 shareholders

Unit: Shares

Total number of common shareholders 68793 Total number of preferred shareholders with restoredat the end of the reporting period voting rights at the end of the reporting period (if any) 0

Shareholdings of top 10 shareholders (excluding shares lent through refinancing)

Number of Pledged marked or frozen status

Name of Nature of Shareholdi Number of shares held

shareholder shareholder ng ratio shares held with restricted Status of shares Quantity

sale conditions

China Grand

Enterprises Domestic non-state-owned legal person 41.67% 730938157 0 Pledged 143880000INC.Hangzhou

Huadong State-owned legal

Medicine person 16.42% 288000000 0 Not applicable 0

Group Co. Ltd.Hong Kong

Securities

Clearing Overseas legal

Company person

2.96% 52003638 0 Not applicable 0

Limited

China

Securities Domestic non-state-

Finance owned legal person 1.26% 22186818 0 Not applicable 0

Corporation

4The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

Limited

Industrial and

Commercial

Bank of China

Limited -

Zhong Ou

AMC Medical Others 1.15% 20115229 0 Not applicable 0

and Health

Hybrid

Securities

Investment

Fund

New China Life

Insurance Co.Ltd. - Dividend

- Individual Others 1.13% 19791994 0 Not applicable 0

Dividend -

018L-FH002

Shenzhen

National Social

Security Fund - Others 0.97% 16989744 0 Not applicable 0

Portfolio 112

New China Life

Insurance Co.Ltd. -

Traditional -

General Others 0.89% 15597134 0 Not applicable 0

Insurance

Products -

018L-CT001

Shenzhen

Industrial and

Commercial

Bank of China

Limited -

Huatai-PB CSI Others 0.85% 14882245 0 Not applicable 0

300 Open-

ended Index

Fund

China

Construction

Bank

Corporation - E

Fund CSI 300

Medical and Others 0.63% 10986410 0 Not applicable 0

Health Trading

Open Index

Securities

Investment

Fund

Shareholdings of top 10 shareholders without restricted sale conditions (excluding shares lent through refinancing and restricted

shares held by senior managers)

Name of shareholder Number of shares held without restricted sale

Types and number of shares

conditions Type of shares Quantity

China Grand Enterprises INC. 730938157 RMB commonshares 730938157

Hangzhou Huadong Medicine Group

Co. Ltd. 288000000

RMB common

shares 288000000

Hong Kong Securities Clearing RMB common

Company Limited 52003638 shares 52003638

China Securities Finance Corporation RMB common

Limited 22186818 shares 22186818

Industrial and Commercial Bank of

China Limited - Zhong Ou AMC RMB common

Medical and Health Hybrid Securities 20115229 shares 20115229

Investment Fund

5The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

New China Life Insurance Co. Ltd. -

Dividend - Individual Dividend - 018L- 19791994 RMB common 19791994

FH002 Shenzhen shares

National Social Security Fund -

Portfolio 112 16989744

RMB common

shares 16989744

New China Life Insurance Co. Ltd. -

Traditional - General Insurance 15597134 RMB common 15597134

Products - 018L-CT001 Shenzhen shares

Industrial and Commercial Bank of

China Limited - Huatai-PB CSI 300 14882245 RMB common

Open-ended Index Fund shares

14882245

China Construction Bank Corporation -

E Fund CSI 300 Medical and Health RMB common

Trading Open Index Securities 10986410 shares 10986410

Investment Fund

Description of affiliation or concerted action of the The Company did not know whether there was any relationship among

above shareholders the above shareholders or whether they were parties acting in concert.Description of the participation in securities margin As of the end of the current reporting period none of the top 10 common

trading business of top 10 shareholders (if any) shareholders of the Company held shares of the Company throughsecurities margin trading accounts.Participation in the lending of shares through refinancing business of shareholders holding more than 5% of shares top 10

shareholders and top 10 shareholders holding tradable shares without restricted sale conditions

□Applicable□Not applicable

Change in top 10 shareholders and top 10 shareholders holding tradable shares without restricted sale conditions due to

lending/returning of shares through refinancing as compared to the previous period

□Applicable□Not applicable

(II) Total number of preferred shareholders and shareholding list of top 10 preferred shareholders of the

Company

□Applicable□Not applicable

Ⅲ. Other Important Matters

□Applicable □Not applicable

(I) Overview of the Company's overall operations during the reporting period

Guided by the principles of "promoting entrepreneurial spirit deepening reforms

strengthening organizational systems and capturing development opportunities" the Company

during the reporting period maintained a strong focus on overall strategic planning and annual

operational objectives. It steadily advanced research and development as well as clinical trials

optimized production process efficiency and dynamic cost management enhanced internal

coordination and collaboration and improved organizational effectiveness thereby ensuring the

effective execution of various business management tasks.From January to September 2025 the Company achieved total operating revenue of

RMB32.664 billion a year-on-year increase of 3.77%; net profit attributable to shareholders of the

listed company was RMB2.748 billion a year-on-year increase of 7.24%; and net profit attributable

to shareholders of the listed company after deducting non-recurring gains and losses was

6The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

RMB2.694 billion a year-on-year increase of 8.53%.Specifically in Q3 2025 the Company achieved total operating revenue of RMB10.989

billion a year-on-year increase of 4.53%; net profit attributable to shareholders of the listed

company was RMB933 million a year-on-year increase of 7.71%; and net profit attributable to

shareholders of the listed company after deducting non-recurring gains and losses was RMB932

million a year-on-year increase of 8.77%.The Company maintained stable and favorable overall operations. In Q4 2025 it will

continue to rigorously execute the annual operational plan efficiently advancing research

production and business activities with a view to achieving the full-year performance targets.From January to September 2025 the Company's core pharmaceutical subsidiary Zhongmei

Huadong sustained a stable growth trend in overall operations achieving operating revenue

(including CSO business) of RMB11.045 billion representing a year-on-year increase of 11.10%;

and achieved consolidated net profit attributable to the parent company in the amount of

RMB2.475 billion with a year-on-year increase of 15.62%. In the third quarter it recorded

operating revenue of RMB3.728 billion (including CSO business) representing a year-on-year

increase of 14.95% and a net profit attributable to the parent company of RMB894 million up

18.43% year-on-year.

During the reporting period the Company concentrated on the strategic priority of

commercializing innovative products and actively pursued the expansion of its market presence.These initiatives have begun to yield tangible results with innovative products making an

increasingly significant contribution to revenue. Specifically from January to September 2025

the Company's revenue from innovative products sales and agency services totaled RMB1.675

billion representing a significant year-on-year increase of 62%. Among these Mirvetuximab

Soravtansine Injection (trade name: ELAHERE) utilized the "Hong Kong-Macao Medical

Devices and Pharmaceuticals Access Scheme" to pioneer its market entry generating sales

revenue of over RMB45 million from January to September 2025 andits domestic market launch

is progressing smoothly and is scheduled for an official rollout in November 2025.Zevorcabtagene Autoleucel Injection (trade name: Saikaize) the CAR-T product

exclusively commercialized by Zhongmei Huadong continues to be included in an increasing

number of local government-subsidized insurance programs and commercial insurance plans

thereby improving patient accessibility. Meanwhile the number of certified and registered

medical institutions for this product has steadily increased further accelerating market penetration.In the reporting period a demand of this product commercialization has increased significantly.Specifically from January to September 2025 the Company placed 170 valid orders with its

7The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

partner CARsgen Therapeutics exceeding the total number of orders for the entire previous year.Furthermore the first domestically produced Ustekinumab Injection (trade name: SAILEXIN) in

the autoimmune field along with the Class 1 new drug in the diabetes field Ganagliflozin Proline

Tablets (trade name: Huiyoujing) have sustained rapid quarterly sales growth driven by their

clinical value and market promotion efforts.In addition the Company's exclusive promotion of the new 1.5-generation PARP inhibitor

Senaparib Capsules (trade name: Paishuning) has delivered strong market performance with

sales doubling month-on-month in the third quarter. Concurrently the Company is actively

preparing for national medical insurance and commercial insurance negotiations for its three

innovative products—Paishuning ELAHERE and Saikaize in the fourth quarter of 2025

aiming to enhance patient accessibility expand sales channels and accelerate market penetration.Huadong Medicine (Guizhou) Pharmaceutical Co. Ltd. (hereinafter referred to as "Guizhou

Corporation") focuses on achieving breakthroughs in its core products. By establishing a

professional self-operated promotion team it is fully committed to facilitating the market access

of Shang Ke Ling in large and medium-sized hospitals as well as its coverage in retail

pharmacies. Therefore Guizhou Corporation's overall operations continue to grow rapidly.Specifically from January to September 2025 Guizhou Corporation achieved operating revenue

of RMB172 million representing a year-on-year increase of 194% and a net profit of RMB53

million up 489% year-on-year with its profitability continuing to strengthen.In the reporting period the Company actively expanded its medical device sales and

promotion team. In October 2025 the domestic marketing authorization application for the

world's first-in-class innovative drug Relmapirazin Injection (R&D code: MB-102) was

officially approved. Its companion Transdermal GFR Measurement System (TGFR) had

previously received approval in February 2025 marking the overall authorization of the world's

first bedside renal function assessment product MediBeacon TGFR suitable for patients with

both normal and impaired renal function in the Chinese market. Because MediBeacon TGFR

possesses significant potential for clinical applicationin order to deliver its early benefits to

patients in China the Company will fully leverage its commercial capabilities to facilitate rapid

and efficient market penetration following launch. Simultaneously it will collaborate closely with

its partner MediBeacon to jointly explore application solutions across various clinical settings

and further realize the product's clinical value.From January to September 2025 the Company's pharmaceutical business segment achieved

an overall operating revenue of RMB21.253 billion representing a year-on-year increase of

3.31% and a net profit of RMB334 million up 3.37% year-on-year.

8The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

Impacted by the dual effects of the global economy's cyclical adjustments and intensified

industry competition growth in the Company's medical aesthetics segment remained under pressure.From January to September 2025 the segment achieved total operating revenue of RMB1.568

billion (excluding internal offsets) representing a year-on-year decline of 17.90%. In detail from

January to September 2025 the Company's wholly-owned subsidiary Sinclair UK achieved

consolidated operating revenue of approximately RMB719 million representing a year-on-year

decrease of 7.34%. With the goal of "building a globally leading medical aesthetics enterprise" the

Company actively aligns with the global trend of flat structure of management adopted by

multinational corporations and is implementing strategic adjustments to its organizational structure

and human resources. It is committed to establishing a refined efficient and innovative operating

system promoting innovation in management models optimizing and upgrading resource

allocation focusing on core businesses and continuously achieving breakthroughs thereby laying a

solid foundation for the sustained improvement of operational quality and long-term growth.On the other hand the domestic medical aesthetics market is also undergoing a period of

structural adjustment. From January to September 2025 the Company's wholly-owned subsidiary

Sinclair recorded operating revenue of RMB745 million representing a year-on-year decrease of

18.03%. The Company is making a comprehensive progress in registration activities across its

core medical aesthetics markets both domestically and internationally. In October 2025 the

Chinese market registration application for MaiLi Precise—a Class 3 medical device "Lidocaine-

containing Cross-linked Sodium Hyaluronate Gel for Injection"—was officially accepted. In

September 2025 Sinclair's newly patented Carboxymethyl Chitosan Solution KIO021

completed the first subject injection in its clinical study in China. Meanwhile the U.S. clinical

trial of Ellansé S has completed enrollment of all subjects. With the continued advancement of

registration for core product pipelines and the progressive launch of new products in the domestic

market the brand influence and core competitiveness of the Company's medical aesthetics

business are expected to be further strengthened.In terms of the segment of industrial microbiology from January to September 2025 the

overall revenue sustained rapid growth representing a year-on-year increase of 28.48%.Subsequently with the proactive expansion into overseas markets this segment is expected to

sustain its positive growth momentum.(II) Research and development status

1. R&D overview

During the reporting period adhering to the "Scientific Research-based and Patient-

9The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

centered" corporate philosophy the Company has deepened its expertise in the fields of

endocrinology autoimmunity and oncology. Through sustained increase in the R&D investment

and expansion of innovative drug R&D pipelines it has strengthened the innovative R&D

ecosystem and technological platforms while accelerating clinical trials with multiple significant

milestone achievements made. As of the date of the Report the Company's innovative drug R&D

center is advancing over 90 innovative drug pipeline projects. From January to September 2025

the Company's R&D investment in pharmaceutical industry (excluding equity investment)

reached RMB2.186 billion a year-on-year increase of 35.99% of which direct R&D expenditure

was RMB1.767 billion a year-on-year increase of 53.76% accounting for 16.21% of

pharmaceutical industrial revenue.

2. Significant R&D progress

Oncology

In March 2025 the supplemental application to convert the conditional approval of

Mirvetuximab Soravtansine Injection (Elahere R&D code: IMGN853 HDM2002) to regular

approval was accepted and passed the clinical inspection in August 2025.The NDA for Company's Class 1 new drug Mifanertinib Maleate Tablets (former name:

Mefatinib Tablets) was approved in October 2025 for first-line treatment of adult patients with

locally advanced or metastatic non-small cell lung cancer (NSCLC) harboring epidermal growth

factor receptor (EGFR) exon 21 (L858R) substitution mutations.The Company's self-developed differentiated innovative ADC drug pipeline targeting novel

targets has established a gradient layout. Current key advancing projects include HDM2005

HDM2020 HDM2012 HDM2017 and HDM2024. Among these the ROR1-targeted ADC project

HDM2005 is at the forefront of global clinical development for ROR1 ADCs and is currently

conducting three clinical trials in China: a Phase I trial of HDM2005 monotherapy for advanced

hematologic malignancies (MCL DLBCL classical Hodgkin lymphoma (cHL)) which has

completed five dose-escalation cohorts with two dose levels now in the expansion phase; a Phase I

trial of HDM2005 monotherapy for advanced solid tumors with the first subject dosed in May 2025

seven subjects enrolled to date and dose escalation ongoing at 2.5 mg/kg; and a Phase Ib/II trial of

HDM2005 combination therapy for DLBCL patients which enrolled its first subject in September

2025. Additionally the FGFR2b-targeting HDM2020 and MUC17-targeting HDM2012 have

received IND approvals in China and the U.S. In August 2025 the Phase I trial of HDM2012 for

advanced solid tumors dosed its first subject making it the world's first MUC17 ADC to enter

clinical development. Patient enrollment in the first dose cohort has been completed. Furthermore

in August 2025 the Phase I trial of HDM2020 for advanced solid tumors dosed its first subject.

10The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

Currently patient enrollment for dose escalation at the first dose level is underway. The CDH17-

targeting HDM2017 has received IND approvals in both the U.S. and China in September 2025. In

addition HDM2024 is progressing through preclinical development and is aiming to submit its IND

application in the Q4 2025.In October 2025 the Company's associate Heidelberg Pharma AG in Germany announced

that its Amanitin-based ADC candidate HDP-101 (HDM2027) was granted Fast Track designation

by the U.S. Food and Drug Administration (FDA). Additionally the IND application for HDP-101

(HDM2027) in China has been approved. The Company is currently conducting clinical preparation

activities and anticipates initiating the clinical trial by late 2025 or early 2026.The small-molecule anti-tumor drug HPK-1 PROTAC (hematopoietic progenitor kinase 1

proteolysis-targeting chimera) HDM2006 tablets is currently undergoing a Phase I clinical trial in

China for the treatment of advanced solid tumors with enrollment for the third dose cohort

underway.For DR30206 Injection a proprietary PD-L1/VEGF/TGF-β tri-specific antibody fusion protein

developed by the Company's subsidiary Doer Biologics is currently leading global R&D progress

for the same target. In April 2025 the Phase Ib clinical trial of DR30206 for first-line treatment of

NSCLC successfully dosed its first subject. The clinical trial application for combination therapy

with standard chemotherapy in patients with advanced or metastatic gastrointestinal tumors was

approved in April 2025 and the Phase Ib/IIa clinical study of this combination regimen is currently

underway.Endocrinology

The oral small-molecule GLP-1 receptor agonist HDM1002 (conveglipron) has now

completed enrollment of all subjects for its Phase III clinical trial in China for the weight

management indication. The study is currently in the treatment follow-up and data collection phase.Furthermore both Phase III clinical studies of this product for the treatment of type 2 diabetes have

commenced with the first subject enrolled in August 2025.The HDM1005 (poterepatide) injection a GLP-1R/GIPR long-acting polypeptide dual-target

agonist enrolled its first subject in the Phase III clinical trial for the weight management indication

in October 2025. The Phase II clinical trial for the diabetes indication completed full subject

enrollment in July 2025 and the application for Pre-Phase III consultation for this indication is

currently being prepared.DR10624 a first-in-class triple-target agonist (FGF21R/GCGR/GLP-1R) developed by the

controlling subsidiary of Doer Biologics has successfully completed a Phase II clinical trial for

severe hypertriglyceridemia. The study results were selected as the latest breakthrough research for

11The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

the 2025 American Heart Association Scientific Sessions (AHA Scientific Sessions 2025) and will

be featured as the opening presentation on the main stage of the AHA 2025 main venue scheduled

for November this year. Preparations are currently underway for the Phase III clinical trial targeting

the indication of severe hypertriglyceridemia. Furthermore the IND application for severe

hypertriglyceridemia in the U.S. received approval in October 2025. The Phase II clinical trial

targeting patients with metabolic-associated steatotic liver disease with high risk of fibrosis and

those with metabolic-alcohol-related steatotic liver disease is currently being conducted

concurrently.The IND application for HDM1010 tablets (a fixed-dose oral combination formulation of

HDM1002) for the treatment of type 2 diabetes was approved by the U.S. FDA in June 2025 and

clinical trial preparations are currently underway.The marketing authorization application for Semaglutide Injection for the diabetes indication

was submitted and accepted in March 2025 and successfully passed clinical review. For the weight

management indication all subjects in the Phase III clinical trial were enrolled in February 2025

and the study is currently in the treatment follow-up and data collection phase.The marketing authorization application for Insulin Degludec Injection was submitted and

accepted in February 2025; the on-site inspection has been completed and the application is

currently under technical review.The Phase III clinical trial of Insulin Degludec and Insulin Aspart Injection achieved top-line

results in September 2025.Autoimmunity

The supplemental application of HDM3001 (QX001S) a biosimilar of Ustekinumab

developed in collaboration between the Company and Qyuns Therapeutics for the new pediatric

plaque psoriasis indication was approved in March 2025. Additionally the marketing authorization

application and supplemental application for Crohn's disease were accepted for review in February

2025.

The innovative drug HDM3016 (QX005N) jointly developed with Qyuns Therapeutics is

currently in Phase III clinical trials in China for two indications: prurigo nodularis and atopic

dermatitis. Enrollment for the Phase III study in atopic dermatitis has been completed and a Pre-

BLA communication for the prurigo nodularis indication is anticipated to be submitted in the Q4

2025.

HDM3014 (Roflumilast Cream) developed in collaboration between the Company and Arcutis

has achieved positive top-line results in Phase III clinical trials in China for both plaque psoriasis

and atopic dermatitis. The NDA submissions for both indications are planned in Q4 2025.

12The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

The Company's independently developed modified new drug Ruxolitinib Gel (HDM3010) for

the treatment of prurigo nodularis has achieved top-line results from its Phase I/II clinical study. A

Pre-Phase III communication application was submitted in September 2025. In addition a Phase III

clinical trial in vitiligo is currently ongoing.The MC2-01 Cream developed in collaboration between the Company and MC2 Therapeutics

received approval in July 2025 to initiate a Phase III clinical trial in China for plaque psoriasis. The

Phase III clinical trial preparations are currently underway.The Company's independently developed first-in-class bispecific antibody candidates

HDM3018 Injection and HDM4002 Injection are currently under IND-enabling development with

IND applications in China and the U.S. targeted for 2026.Other segments

The Transdermal GFR Measurement System a Class 3 innovative medical device was

approved by the NMPA in February 2025. The marketing authorization application for

Relmapirazin Injection used cooperatively with the device was approved in October 2025.The marketing authorization application for Ranibizumab Injection was submitted and

accepted in May 2025.

3. Major regulatory milestones in pharmaceutical innovation since 2025 (innovative

drugs medical devices and biosimilars)

From 2025 to the date of the Report the Company's products have received five marketing

approvals six marketing authorization applications have been accepted and eighteen IND

approvals have been granted in China or the U.S. as detailed in the table below:

No. Item Category China RegistrationClass Milestone Event

1 Paishuning

(Senaparib Innovative Class 1 chemical

Capsules) drug drug Approved in China in January 2025

Transdermal GFR Innovative2 Class 3 medicalMeasurement System medicaldevice device

Approved in China in February 2025

SAILEXIN Supplemental application for the new pediatric

3 (Ustekinumab Biosimilar Class 3.3 therapeuticbiological product indication of plaque psoriasis approved in ChinaInjection) in March 2025

4 Relmapirazin Injection Innovative Class 1 chemicaldrug drug Approved in China in October 2025

Mairuidong

5 (Mifanertinib Maleate Innovative Class 1 chemicaldrug drug Approved in China in October 2025Tablets)

SAILEXIN

(Ustekinumab

6 Injection) and Biosimilar Class 3.3 therapeutic

The marketing authorization application and

biological product supplemental application for Crohn's disease wereUstekinumab Injection accepted for review in February 2025

(intravenous infusion)

7 Insulin degludec Biosimilar Class 3.3 therapeutic The marketing authorization application wasinjection biological product accepted in February 2025

13The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

Elahere

(Mirvetuximab Innovative Class 3.1 therapeutic The supplemental application converted from8 Soravtansine drug biological product conditional to standard approval was accepted in

Injection) March 2025

9 Semaglutide Injection Biosimilar Class 3.3 therapeutic The marketing authorization application wasbiological product accepted in March 2025

10 Ranibizumab Injection Biosimilar Class 3.3 therapeutic The marketing authorization application wasbiological product accepted in May 2025

11 Edaravone Tablet Modified Class 2.2 chemical The marketing authorization application wasnew drug drug accepted in July 2025

12 HDM2006 Innovative Class 1 chemical The IND for advanced malignancies wasdrug drug approved in the U.S. in January 2025

Innovative Class 1 chemical The IND for OSA in patients with obesity or13 HDM1005 drug drug overweight was approved in China in February2025

14 HDM1005 Innovative Class 1 chemical The IND for HFpEF in patients with obesity ordrug drug overweight was approved in China in March 2025

15 HDM3019 Innovative Class 1 therapeutic The IND for rheumatoid arthritis was approved indrug biological product China in March 2025

The IND for combination standard chemotherapy

16 DR30206 Innovative Class 1 therapeutic in patients with advanced or metastaticdrug biological product gastrointestinal tumors was approved in China in

April 2025

17 HDM7008 Innovative Class 1 chemical The IND for hypertension was approved in Chinadrug drug in April 2025

Innovative Class 1 therapeutic The IND for R-CHP combination therapy in18 HDM2005 drug biological product patients with DLBCL was approved in China inMay 2025

19 HDM1010 Innovative Class 1 chemical The IND for diabetes was approved in the U.S. indrug drug June 2025

20 0.3% roflumilast Innovative Class 5.1 chemical The IND for seborrheic dermatitis was approvedtopical foam drug drug in China in June 2025

21 HDM2020 Innovative Class 1 therapeutic The IND for advanced solid tumors was approveddrug biological product in China in June 2025

22 HDM2012 Innovative Class 1 therapeutic The IND for advanced solid tumors was approveddrug biological product in the U.S. in June 2025

23 HDM2020 Innovative Class 1 therapeutic The IND for advanced solid tumors was approveddrug biological product in the U.S. in July 2025

24 HDM2012 Innovative Class 1 therapeutic The IND for advanced solid tumors was approveddrug biological product in China in July 2025

25 HDM1002 Innovative Class 1 chemical The IND for weight management was approveddrug drug in the U.S. in July 2025

26 MC2-01 Cream Innovative Class 5.1 chemical The IND for plaque psoriasis was approved indrug drug China in July 2025

27 HDM2017 Innovative Class 1 therapeutic The IND for advanced malignant solid tumorsdrug biological product was approved in the U.S. in September 2025

28 HDM2017 Innovative Class 1 therapeutic The IND for advanced malignant solid tumorsdrug biological product was approved in China in September 2025

29 DR10624 Innovative Class 1 therapeutic The IND for severe hypertriglyceridemia wasdrug biological product approved in the U.S. in October 2025

Note: Paishuning (Senaparib Capsules) is a product exclusively marketed by the Company in mainland China

while HDM7008 (SNK-2726) is a product jointly developed by the Company in collaboration with Synerk.

4. The Company's pharmaceutical innovation achievements presented at international

academic conferences since 2025

N

o. Date of release Item

Conference/jo Presenta

urnal name tion Title

14The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

format

Poster Preclinical development of HDM2020 a

1 April 2025 HDM2020 AACRAnnual novel ADC targeting FGFR2b in gastricMeeting presentation cancer (GC) and squamous non-small celllung cancer (sq-NSCLC) xenograft models

Poster Translational studies of HDM2012 a novel

2 April 2025 HDM2012 AACRAnnual presentat topoisomerase inhibitor ADC targetingMeeting ion MUC17 in patient derived GC CRCPDAC tumor models

3 April 2025 HDM2017 AACRAnnual

Poster

Meeting presentat

Discovery of HDM2017 a CDH17-

ion targeting ADC for colorectal cancers

Discovery of potent selective and orally

4 April 2025 HDM2022 AACRAnnual

Poster

presentat bioavailable GSPT1 molecular glueMeeting ion degraders (MGDs) for the treatment ofMYC-driven tumors

Poster HDM2006 A Novel and Potent HPK1

5 April 2025 HDM2006 AACRAnnual presentat PROTAC Enhances Immune CellMeeting ion Activation and Induces Robust TumorGrowth Inhibition

DR10624 a First-In-Class FGF21

Poster Receptor (FGF21R)/Glucagon Receptor

presentat (GCGR)/GLP-1 Receptor (GLP-1R) Triple

6 May 2025 DR10624 EASLAnnual ion and Agonist Rapidly and Significantly ReducedMeeting Late- Liver Fat in Obese Subjects With Modest

Breaker Hypertriglyceridemia: A 12-WeekRandomized Placebo-Controlled Double-

Blind Multi-Center Trial

DR10624 a novel FGF21R GCGR and

GLP-1R tri-agonist demonstrated

7 May 2025 DR10624 EASLAnnual

Poster extraordinary efficacy in B6-Alms1-del

Meeting presentation mice a spontaneous MASH model of micewith obesity hyperglycemia and

dyslipidemia phenotype

Poster

8 June 2025 HDM2025 ASCO presentat Discovery of Potent Degraders of pan-

ion KRAS Based on a Novel KRAS Binder

HDM2020、

World ADC Oral Triad of precision: FGFR2b MUC17 and9 June 2025 HDM2012、 Asia presentat CDH17 directed ADC for Advancing the

HDM2017 ion treatment of solid tumors

Safety Tolerability Pharmacokinetics (PK)

Oral and Pharmacodynamics (PD) of a Dual

10 June 2025 HDM1005 ADA ScientificSessions presentat

GLP-1/GIP Receptor Agonist

ion (HDM1005)—A Phase I RandomizedDouble-Blind Placebo-Controlled Single

and Multiple Dose-Escalation Study

ADA Scientific Poster HDM1002-102: A Randomized Placebo-11 June 2025 HDM1002 Sessions presentat Controlled Four-Week Phase 1b Study inion Chinese Adults with Overweight or Obesity

Poster Efficacy and Safety of HDG1901 vs

12 June 2025 Semaglutide ADA Scientific presentat Ozempic in Patients with Type 2 DiabetesInjection Sessions ion (T2D): A Randomized Open-labelBioequivalence Phase 3 Trial

Oral Significant Body Weight Reduction with

13 September 2025 HDM1005 EASDAnnual presentat Improved Body Composition byMeeting ion HDM1005 a Novel Long-Acting GLP-1R/GIPR Dual Agonist

15The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

EASDAnnual Oral

Significant Weight Reduction with

14 September 2025 HDM1002 presentat Improved Body Composition and SerumMeeting ion TG/TC by HDM1002 a Novel Oral SmallMolecule GLP-1R Agonist

HDM7006- Poster WEIGHT MANAGEMENT IN OBESE15 September 2025 CAT WSAVA presentat PET CATS BY HDM7006 A GLP-1/GIPion DUAL-TARGETAGONIST

16 September 2025 HDM7006-

Poster WEIGHT MANAGEMENT IN OBESE

CANINES WSAVA presentat CANINES BY HDM7006 A GLP-1/GIPion DUAL-TARGETAGONIST

Abstract DR510: A Dual-Masking T-Cell Engager

17 October 2025 DR510 ESMO and e- Prodrug with Single-Site Cleavage for

Poster Balancing Efficacy and Safety in SolidTumor Therapy

Opening DR10624 a First-In-Class FGF21

remarks Receptor/Glucagon Receptor/GLP-1

at the Receptor Triple Agonist Rapidly and

18 November DR10624 AHA Scientific main Significantly Reduced Triglycerides2025* Sessions venue Atherogenic Lipids and Liver Fat in

and Late- Patients With Severe Hypertriglyceridemia:

Breaking Primary Results From a Randomized Phase

Science 2 Trial

November SITC Annual Poster19 HDM2021 presentat Discovery of HDM2021 as a Highly Potent2025* Meeting ion CBL-B Inhibitor for Cancer Treatment

November Poster

Potent Bispecific Antibody Inhibiting

20 2025* HDM4002 ASN presentat

Activation of Complement Alternative

ion Pathway and Lectin Pathway for lgANTherapy

A phase I study of HDM2005 a ROR1

21 December ASH Annual

Poster targeted antibody-drug conjugate (ADC) in

2025* HDM2005 Meeting presentat patients with Relapsed or Refractory B-cellion non-Hodgkin lymphoma (B-NHL) or

classical Hodgkin lymphoma(cHL)

*Note: Upcoming international academic conferences

5. Domestic registration progress of aesthetic medicine products

No. Type Productdesignation Intended use Latest progress

1 Injection MaiLi Precise Improvement of infraorbital

Registration acceptance notice

Hyaluronic acid hollows received from the NMPA in October2025.LanlumaV Completed enrollment of all subjects

2 Injection Poly-L-lactic Improvement of jawline contour in November 2024; follow-up

acid assessments in progress

3 Injection KIO021 Improvement of facial skin Completed enrollment of the firstChitosan condition subject in September 2025.

Ellansé-S Completed enrollment of all subjects

4 Injection Polycaprolacton Improvement of frontal contour for new indication clinical trial in

e November 2024; safety follow-up inprogress.Received NMPA registration

Ellansé-M acceptance in January 2025; obtained

5 Injection Polycaprolacton Improvement of temporalhollows supplementary notice in June;e preparation of technical

documentation in progress.

6 Botulinum YY001 Improvement of frown lines Submitted BLA in December 2024;toxin Recombinant completed on-site factory inspection

16The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

botulinum toxin in June 2025; technical review in

type A progress.Improvement of body and facial Received NMPA registration

Energy- wrinkles benign skin lesions acceptance notice in March 2025;7 based device V30 benign vascular lesions benign received supplementary informationpigmented lesions inflammatory notice in June 2025; preparation of

acne depilation etc. technical documentation in progress.(III) External investments and collaborations from the third quarter to the disclosure

date of the Report

1. On August 8 2025 the exclusive commercialization cooperation agreement for VC005

between Huadong Medicine (Hangzhou) Co. Ltd. (hereinafter referred to as "Huadong Medicine

Hangzhou") a wholly owned subsidiary of the Company and Jiangsu Vcare PharmaTech Co. Ltd.(hereinafter referred to as "Jiangsu Vcare") officially took effect. Huadong Medicine Hangzhou has

obtained the exclusive commercialization rights for the oral formulation of VC005 from Jiangsu

Vcare in mainland China. For further details please refer to the Company's announcement titled

Announcement on the Signing of an Exclusive Commercialization Cooperation Agreement for

Products by a Wholly-Owned Subsidiary (Announcement No.: 2025-078) published on CNINFO

(http://www.cninfo.com.cn).

2. To further strengthen the Company's industrial investment ecosystem expand its industrial

chain layout leverage the expertise and resource advantages of professional institutions integrate

resources from all parties and enhance its core competitiveness the Company as a limited partner

jointly signed the Partnership Agreement of Hangzhou Fuguang Hongze Equity Investment

Partnership (Limited Partnership) on August 18 2025 together with the general partner executive

partner and fund manager Shanghai Fuguang Private Equity Management Co. Ltd. and limited

partners Hangzhou Industrial Investment Co. Ltd. and Hangzhou Gongshu Industrial Fund Co.Ltd. to jointly establish the Hangzhou Fuguang Hongze Equity Investment Partnership (Limited

Partnership) (hereinafter referred to as the Special Pharmaceutical Industry Investment Fund). The

total committed capital of the Special Pharmaceutical Industry Investment Fund is RMB2 billion of

which the Company as a limited partner has committed RMB980 million of own funds

representing a 49.00% share of the total committed capital. For detailed information please refer to

the Company's announcement titled Announcement on Joint Investment with Professional

Investment Institutions to Establish a Special Pharmaceutical Industry Investment Fund and Related

Party Transaction (Announcement No.: 2025-083) published on CNINFO

(http://www.cninfo.com.cn).As of September 22 2025 the Special Pharmaceutical Industry Investment Fund has

completed its business registration and filing with the Asset Management Association of China and

17The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

the first tranche of capital totaling RMB10 million has been successfully raised. For detailed

information please refer to the Company's announcement titled Progress Announcement on Joint

Investment with Professional Investment Institutions to Establish a Special Pharmaceutical Industry

Investment Fund and Related Party Transaction (Announcement No.: 2025-087) published on

CNINFO (http://www.cninfo.com.cn).

3. On October 9 2025 Huadong Medicine Hangzhou a wholly owned subsidiary of the

Company announced that it had entered into an exclusive commercialization cooperation

agreement with Hangzhou Chance Pharmaceuticals Co. Ltd. (hereinafter referred to as "Chance

Pharmaceutical") in mainland China for Chance Pharmaceutical's product CXG87 (improved

Budesonide/Formoterol Powder for Inhalation). CXG87 is a Class 2.2 new drug independently

developed by Chance Pharmaceutical intended for the treatment of asthma and other respiratory

diseases. Currently the Phase III clinical trial of this drug for asthma has completed enrollment of

all subjects and a NDA is anticipated to be submitted in the first half of 2026. Under the terms of

the agreement Chance Pharmaceutical as the Marketing Authorization Holder (MAH) will be

responsible for the research development registration manufacturing and supply of the CXG87

product. Upon signing the agreement Chance Pharmaceutical will receive the first payment and

applicable registration and sales milestone payments. Huadong Medicine will be responsible for the

commercial promotion of CXG87 in mainland China.(IV) Registration form of receptions including research communication interview and

other activities

Recepti Main topics

Reception Reception Reception on Reception discussed Basic information

date location mode object object andinformation index of the surveytype provided

For details see the

Soochow Record Sheet of

Securities 2025 Annual Investor Relations

August 20 Meeting Phone

Institutio Sinolink Performance Activities on August

room of the communic ns and Securities Exchange 20 2025 which was2025 Company ation individu GF Meeting of published by theals Securities Huadong Company at

etc. Medicine https://irm.cninfo.com.cn/ and at

www.cninfo.com.cn.Citibank For details see the

Carlyle Record Sheet of

September Meetingroom of the Field visits Institutio

Sumitomo Investor Relations

25 2025 n Mitsui DS

On-site Activities on

Company Asset survey September 25 2025

Management which was published

etc. by the Company at

18The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

https://irm.cninfo.com.cn/ and at

www.cninfo.com.cn.IV. Quarterly Financial Statements

(I) Financial statements

1. Consolidated balance sheet

Prepared by: Huadong Medicine Co. Ltd.September 30 2025

Unit: RMB

Item Closing balance Opening balance

Current assets:

Monetary funds 4375309533.55 5276440245.36

Deposit reservation for balance

Lendings to banks and other financial

institutions

Trading financial assets

Derivative financial assets

Notes receivable 5630773.62 10696341.24

Accounts receivable 11130669300.04 8425358862.23

Receivables financing 642918508.71 1677636420.09

Prepayments 514419536.14 400291510.71

Premium receivable

Reinsurance accounts receivable

Reinsurance contract reserve

receivable

Other receivables 782158641.12 402870356.31

Incl.: Interest receivable

Dividends receivable 223608.84 223608.84

Financial assets purchased for resale

Inventory 5200308101.69 4776397278.01

Incl.: Data resources

Contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 69370755.85 82099747.34

Total current assets 22720785150.72 21051790761.29

Non-current assets:

Loans and advances issued

Debt investments

Other debt investments

Long-term receivables

Long-term equity investment 1460238936.92 1543646404.76

Investment in other equity instruments 667868747.53 603232766.22

Other non-current financial assets

Investment property 11161106.73 11842042.67

Fixed assets 4223188950.66 4422300775.01

Construction in progress 1085870826.31 836739481.60

Productive biological assets

Oil and gas assets

Right-of-use assets 170517205.70 149504562.99

Intangible assets 3734873742.82 3644956428.71

19The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

Incl.: Data resources

Development expenditure 1325274459.03 1033392377.69

Incl.: Data resources

Goodwill 2934647553.97 2913334523.63

Long-term deferred expenses 18673755.93 22601572.13

Deferred income tax assets 256991465.54 221848889.06

Other non-current assets 1318691298.62 1423855781.39

Total non-current assets 17207998049.76 16827255605.86

Total assets 39928783200.48 37879046367.15

Current liabilities:

Short-term borrowings 1771270685.28 2312339143.21

Borrowings from the central bank

Borrowings from other banks and

other financial institutions

Trading financial liabilities

Derivative financial liabilities

Notes payable 3675987092.13 2576685923.31

Accounts payable 5094338056.84 4467770810.96

Advance receipts 1273682.87 1115173.00

Contract liabilities 115929823.64 173609109.58

Expense for financial assets sold for

repurchase

Deposits taken and interbank deposits

Receivings from vicariously traded

securities

Receivings from vicariously sold

securities

Employee compensation payable 238395677.39 417133101.11

Taxes and dues payable 400747695.17 645950867.22

Other payables 3147883822.08 2849833595.48

Incl.: Interests payable

Dividends payable 125024219.60 125024219.60

Handling charges and commissions

payable

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due within one

year 107506993.40 330528920.89

Other current liabilities 23064901.24 19268728.25

Total current liabilities 14576398430.04 13794235373.01

Non-current liabilities:

Provision for insurance contracts

Long-term borrowings 298867686.24 14262841.05

Bonds payable

Incl.: Preferred share

Perpetual bonds

Lease liabilities 100890675.57 71857938.46

Long-term payables 27051665.90 24715073.51

Long-term employee compensation

payable

Estimated liabilities 31923494.11 28985982.19

Deferred revenue 200612513.55 183855718.48

Deferred income tax liabilities 196704637.73 197378528.33

Other non-current liabilities

Total non-current liabilities 856050673.10 521056082.02

Total liabilities 15432449103.14 14315291455.03

Owners' equity:

Share capital 1754021048.00 1754262548.00

20The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

Other equity instruments

Incl.: Preferred share

Perpetual bonds

Capital reserve 2417816815.74 2550780602.69

Less: Treasury share 40768791.67 46804116.67

Other comprehensive income 32763430.24 -50598204.17

Special reserves

Surplus reserves 1395568477.98 1395568477.98

General risk reserves

Retained earnings 18573486054.02 17456842089.53

Total owners' equity attributable to the

parent company 24132887034.31 23060051397.36

Minority interests 363447063.03 503703514.76

Total owners' equity 24496334097.34 23563754912.12

Total liabilities and owners' equity 39928783200.48 37879046367.15

Legal representative: Lv Liang Person in charge of accounting: Lv Liang Person in charge of the accounting department:

Qiu Renbo

2. Consolidated income statement from the beginning of the year to the end of the reporting period

Unit: RMB

Item Amount incurred in the current period Amount incurred in the previous period

I. Total operating revenue 32664143135.68 31477654750.50

Incl.: Operating revenue 32664143135.68 31477654750.50

Interest income

Premiums earned

Handling charges and

commissions revenue

II. Total operating costs 29289598185.10 28288811654.13

Incl.: Operating costs 21715689459.85 21231803408.72

Interest expenditure

Handling charges and

commissions expenditure

Surrender value

Net payments for insurance

claims

Net provision for insurance

liabilities

Expense for insurance policy

dividends

Reinsurance expenses

Taxes and surcharges 172981938.92 163791954.73

Selling expenses 4791980345.55 4727512478.83

Management expenses 1090027991.29 1179023165.24

R&D expenses 1507590822.48 948662894.53

Financial expenses 11327627.01 38017752.08

Incl.: Interest expense 86551703.07 86594008.13

Interest income 72327993.36 80012995.89

Plus: Other incomes 177555419.45 168982096.89

Investment income (loss expressed

with "-") -119368076.22 -86710253.53

Incl.: Investment income in

associates and joint ventures -75251378.58 -54563003.59

Income from

21The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

derecognition of financial assets measured

on the basis of amortized costs

Exchange earnings (loss expressed

with "-")

Net income of exposure hedge (loss

expressed with "-")

Income from changes in fair value

(loss expressed with "-")

Credit impairment loss (loss

expressed with "-") -83959366.71 -57939915.17

Asset impairment loss (loss

expressed with "-")

Proceeds from disposal of assets

(loss expressed with "-") 1817243.94 2177150.46

III. Operating profit (loss expressed with "-

")3350590171.043215352175.02

Plus: Non-operating revenue 5639215.91 7442671.20

Less: Non-operating expenses 93607836.34 88911294.16

IV. Total profit (total loss expressed with "-

")3262621550.613133883552.06

Less: Income tax expense 520763289.42 571279294.45

V. Net profit (net loss expressed with "-") 2741858261.19 2562604257.61

(I) Classification by continuity of

operation

1. Net profits from continuing

operations (net loss expressed with "-") 2741858261.19 2562604257.61

2. Net profit from discontinued

operations (net loss expressed with "-")

(II) Classification by ownership

1. Net profit attributable to

shareholders of the parent company (net 2747916019.11 2562326688.45

loss expressed with "-")

2. Profit or loss attributable to minority

shareholders (net loss expressed with "-") -6057757.92 277569.16

VI. Net of tax of other comprehensive

income 83361634.41 17675896.30

Net of tax of other comprehensive

income attributable to the owner of the 83361634.41 17675896.30

parent company

(I) Other comprehensive income that

cannot be reclassified into the profits and -171215.68 -6582969.35

losses

1. Change from re-measurement of

defined benefit plan

2. Other comprehensive income that

cannot be included in the profits and losses

under the equity method

3. Changes in fair value of

investment in other equity instruments -171215.68 -6582969.35

4. Changes in fair value by the

enterprise's credit risks

5. Others

(II) Other comprehensive income that

will be reclassified into the profits and 83532850.09 24258865.65

losses

1. Other comprehensive income that

can be transferred to the profit and loss

under the equity method

2. Changes in fair value of

investments in other debt investments

3. Financial assets reclassified into

other comprehensive income

4. Provision for credit impairment of

other debt investments

22The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

5. Cash flow hedging reserves

6. Converted difference in foreign

currency financial statements 83532850.09 24258865.65

7. Others

Net of tax of other comprehensive

income attributable to minority shareholders

VII. Total comprehensive income 2825219895.60 2580280153.91

(I) Total comprehensive income

attributable to the owner of the parent 2831277653.52 2580002584.75

company

(II) Total comprehensive income

attributable to minority shareholders -6057757.92 277569.16

VIII. Earnings per share:

(I) Basic earnings per share 1.5682 1.4644

(II) Diluted earnings per share 1.5666 1.4639

If there is a business combination under common control in this period the net profit of the combined party before the

combination is RMB and the net profit of the combined party in the previous period is RMB .Legal representative: Lv Liang Person in charge of accounting: Lv Liang Person in charge of the accounting department:

Qiu Renbo

3. Consolidated cash flow statement from the beginning of the year to the end of the reporting period

Unit: RMB

Item Amount incurred in the current period Amount incurred in the previous period

I. Cash flows from operating activities:

Cash received from selling goods and

providing services 35143641924.19 33334628825.63

Net increase in deposits from customers as

well as banks and other financial institutions

Net increase in borrowings from the central

bank

Net increase in borrowings from other

financial institutions

Cash received from the original insurance

contract premium

Net cash received from reinsurance

business

Net increase in deposits and investments

from policyholders

Cash received from interests handling

charges and commissions

Net increase in borrowings from banks and

other financial institutions

Net increase in funds from repurchase

business

Net cash received from securities trading

agency

Refund of taxes and fees received 15291551.75 15628115.69

Receipt of other cash relating to operating

activities 691105479.99 566037648.66

Subtotal of cash inflows from operating

activities 35850038955.93 33916294589.98

Cash paid for purchase of goods and receipt

of labor services 22966598545.25 21947910270.08

Net increase in customer loans and advance

payments

Net increase in deposits with the central

bank and interbank

Cash for payment of the original insurance

23The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

contract

Net increase in lendings to banks and other

financial institutions

Cash paid for interests handling charges

and commissions

Cash for payment of dividends on policies

Cash paid to and for employees 4049472030.97 3446050305.28

Various taxes and fees paid 2277592721.51 1962213221.83

Payment of other cash relating to operating

activities 3945523714.02 4053717983.88

Subtotal of cash outflows from operating

activities 33239187011.75 31409891781.07

Net cash flow from operating activities 2610851944.18 2506402808.91

II. Cash flows from investing activities:

Cash received from investment recovery 14700000.00 1000000.00

Cash received from obtaining investment

income 49321490.47 45200000.00

Net cash recovered from disposal of fixed

assets intangible assets and other long-term 10619487.83 2528623.35

assets

Net cash received from disposal of

subsidiaries and other business units

Receipt of other cash relating to investing

activities 263981767.12

Subtotal of cash inflows from investing

activities 74640978.30 312710390.47

Cash paid for the purchase and construction

of fixed assets intangible assets and other 1085447151.48 930485860.82

long-term assets

Cash paid for investment 66060775.00 152360852.87

Net increase in pledged loans

Net cash paid for acquisition of subsidiaries

and other business entities 348814981.61

Payments of other cash relating to investing

activities 1524947.75 485504341.65

Subtotal of cash outflows from investing

activities 1153032874.23 1917166036.95

Net cash flows from investing activities -1078391895.93 -1604455646.48

III. Cash flows from financing activities:

Cash received by absorbing investment

Incl.: Cash received by subsidiaries from

minority shareholders' investment

Cash received from obtaining borrowings 2519372648.00 3543115046.17

Receipt of other cash relating to financing

activities 220601111.10 343706321.33

Subtotal of cash inflows from financing

activities 2739973759.10 3886821367.50

Cash paid for debt repayment 2642267908.35 2930078520.91

Cash paid to distribute dividends profits or

pay interest 1758448442.05 1751880188.48

Incl.: Dividends and profits paid by

subsidiaries to minority shareholders 11873140.39 5994660.00

Payment of other cash relating to financing

activities 701895348.32 366279261.77

Subtotal of cash outflows from financing

activities 5102611698.72 5048237971.16

Net cash flow from financing activities -2362637939.62 -1161416603.66

IV. Effect of exchange rate changes on cash

and cash equivalents -6921970.54 21363561.91

V. Net increase in cash and cash equivalents -837099861.91 -238105879.32

Plus: Opening balance of cash and cash

equivalents 4990151186.68 4208160010.91

24The 2025 Third Quarterly Report of Huadong Medicine Co. Ltd.

VI. Closing balance of cash and cash

equivalents 4153051324.77 3970054131.59

(II) Situation of relevant items of financial statements at the beginning of the current

year after the initial implementation of adjustment of the NewAccounting Standards in

2025

□Applicable□Not applicable

(III) Audit report

Has the Third Quarterly Financial Accounting Report been audited

□Yes□No

The Company's Third Quarterly Financial Accounting Report has not been audited.Board of Directors of Huadong Medicine Co. Ltd.October 28 2025

25