First Quarterly Report 2026 of Huadong Medicine Co. Ltd.Stock code: 000963 Stock abbreviation: Huadong Medicine Announcement No.: 2026-030
Huadong Medicine Co. Ltd.First Quarterly Report 2026
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 management 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
manager) hereby declare that the financial information in this quarterly report is authentic accurate and complete.
3. Has the First Quarterly 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.
1First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
I. Key Financial Data
(I) Key accounting data and financial indicators
Whether the Company needs to perform a retroactive adjustment or restatement of previous accounting data
□Yes□No
Year-on-year change for the
Current reporting period Same period last year
reporting period (%)
Operating revenue (RMB) 11183450824.27 10735787899.82 4.17%
Net profits attributable to
shareholders of the listed 1002189357.16 914708484.70 9.56%
company (RMB)
Net profits attributable to
shareholders of the listed
company after deduction of 989719668.99 897337982.42 10.30%
non-recurring profit and loss
(RMB)
Net cash flow from operating
-852335762.63-832728693.88-2.35%
activities (RMB)
Basic earnings per share
0.57150.52249.40%
(RMB/share)
Diluted earnings per share
0.57150.52139.63%
(RMB/share)
Weighted average return on
3.97%3.88%0.09%
equity
End of the current reporting Change from prior year-end
End of the last year
period (%)
Total assets (RMB) 39908042564.94 39038036320.92 2.23%
Owners' equity attributable to
shareholders of listed 25733074032.10 24811339992.99 3.71%
companies (RMB)
The Company's total share capital as of the trading day prior to disclosure:
The Company’s total share capital as of the trading day prior to
1753736848.00
disclosure (shares)
Fully diluted earnings per share based on the latest share capital:
Preferred dividends paid (RMB) 0.00
Paid perpetual bond interest (RMB) 0.00
Fully diluted earnings per share based on the latest share capital
0.5715
(RMB/share)
(II) Non-recurring profit and loss items and amounts
□Applicable □Not applicable
Unit: RMB
Amount during the current reporting
Item Description
period
Profits/losses on disposal of non-current
assets (including the written-off part of
534949.84
the accrued impairment provision of
assets)
Government grants included in the 22334120.97
2First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
current profits and losses (except those
that are closely related to the normal
business operation of the Company
comply with national policies and
regulations are enjoyed in accordance
with the defined criteria and have a
lasting impact on the Company's profits
and losses)
Other non-operating revenue and
expenses other than those mentioned -7779473.38
above
Less: Amount affected by income tax 1182827.86
Amount affected by minority
1437081.40
interests (after tax)
Total 12469688.17 --
Details of other profit and loss items conforming to the definition of non-recurring profits and losses
□Applicable□Not applicable
There are no other profit and loss items that meet the definition of non-recurring profits and losses.Explanation for recognizing an item listed as a non-recurring profit and loss in the Interpretative Announcement No. 1 on
Information Disclosure Criteria for Public Listed Companies - Non-Recurring Profits and Losses as an item of recurring profit and
loss
□Applicable□Not applicable
The Company did not recognize any item of non-recurring profit and loss items listed in the Interpretative Announcement No. 1 on
Information Disclosure Criteria for Public Listed Companies - Non-Recurring Profits and Losses as an item of recurring profit and
loss.(III) Details and reasons for changes in key accounting data and financial indicators
□Applicable □Not applicable
Unit: RMB 10000
Items in the balance sheet Closing balance Opening Percentagbalance e change Reasons for changes
Mainly attributable to the
Notes receivable - 621.34 -100.00% decrease in commercialacceptance bills receivable
during the current period
Mainly attributable to the
Other current assets 13927.49 22234.33 -37.36% decrease in creditable VAT input
tax at the end of the period
Mainly attributable to the
Other current liabilities 3494.29 1044.36 234.59% increase in VAT output taxpending carryover during the
current period
Mainly attributable to
Employee compensation payable 23713.85 41159.88 -42.39% remuneration paid during the
current period
Mainly attributable to changes in
Other comprehensive income -7483.69 577.07 -1396.85% foreign currency translationdifferences during the current
period
Amount in
Items in the income statement Amount in the Percentagcurrent period the previous e change Reasons for changesperiod
R&D expenses 35036.53 51537.69 -32.02% Key programs were progressedsmoothly in clinical studies
3First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
during the period. Expenditures
related to Phase III clinical
programs met the capitalization
criteria and were capitalized
during the current period
resulting in a corresponding
decrease in R&D expenses
Mainly attributable to the
Financial expenses -472.53 1461.80 -132.33% increase in exchange earning in
the current period
Mainly attributable to the
Investment income -2231.03 -4262.41 47.66% increase in investment incomerecognized from associates in the
current period
Mainly attributable to the
Other income 3123.03 7364.16 -57.59% decrease in government grants
during the current period
Mainly attributable to the
Proceeds from disposal of assets 53.49 -1454.10 103.68% decrease in net losses from assetdisposal during the current
period
Mainly attributable to the
Non-operating expenses 909.54 2807.54 -67.60% decrease in external donations
made during the current period
Amount in
Items in the cash flow statement Amount in the the previous Percentagcurrent period period e change
Reasons for changes
Mainly attributable to the
Net cash flows from investing activities -39140.04 -64583.94 39.40% decrease in investment in the
current period
Mainly attributable to the
Net cash flow from financing 3521.20 -8683.86 140.55% year-on-year decrease in theactivities repayment of interest-bearing
liabilities
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
Total number of preferred shareholders with restored
shareholders at the end of the 84304 0
voting rights at the end of the reporting period (if any)
reporting period
Particulars about the top 10 shareholders (excluding shares lent through refinancing)
Number of Pledged marked or locked-up
Name of Nature of Shareholding Number of shares held status
shareholder shareholder ratio (%) shares held with trading
restrictions Status of shares Quantity
China Grand Domestic non-
Enterprises state-owned 41.68% 730938157 0 Pledged 138640000
Inc. corporation
Hangzhou
Huadong State-owned
16.42% 288000000 0 Not applicable 0
Medicine corporation
Group Co. Ltd.Hong Kong Overseas
2.22% 38923330 0 Not applicable 0
Securities corporation
4First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
Clearing
Company
Limited
New China Life
Insurance Co.Ltd. - Dividend
- Individual Others 2.05% 35903842 0 Not applicable 0
Dividend -
018L-FH002
Shenzhen
New China Life
Insurance Co.Ltd. -
Traditional -
General Others 1.32% 23204014 0 Not applicable 0
Insurance
Products -
018L-CT001
Shenzhen
Industrial and
Commercial
Bank of China
Limited -
Zhong Ou
AMC Medical Others 1.21% 21182329 0 Not applicable 0
and Health
Hybrid
Securities
Investment
Fund
China
Securities Domestic non-
Finance state-owned 1.09% 19095344 0 Not applicable 0
Corporation corporation
Limited
National Social
Security Fund - Others 1.00% 17589744 0 Not applicable 0
Portfolio 112
Bank of
Shanghai Co.Ltd. - Yinhua
CSI Innovative
Pharmaceutical
Industry Traded Others 0.74% 13013898 0 Not applicable 0
Open-ended
Index
Securities
Investment
Fund
China
Construction
Bank
Corporation - E
Others 0.70% 12343870 0 Not applicable 0
Fund CSI 300
Medical and
Health Trading
Open Index
5First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
Securities
Investment
Fund
Information about the top 10 shareholders without trading restrictions (excluding shares lent through conversions and locked-up
shares for senior management)
Type of shares
Name of shareholder Number of shares held without trading restrictions
Type of shares Quantity
RMB common
China Grand Enterprises Inc. 730938157 730938157
shares
Hangzhou Huadong Medicine RMB common
288000000288000000
Group Co. Ltd. shares
Hong Kong Securities Clearing RMB common
3892333038923330
Company Limited shares
New China Life Insurance Co.RMB common
Ltd. - Dividend - Individual 35903842 35903842
shares
Dividend - 018L-FH002 Shenzhen
New China Life Insurance Co.Ltd. - Traditional - General RMB common
2320401423204014
Insurance Products - 018L-CT001 shares
Shenzhen
Industrial and Commercial Bank
of China Limited - Zhong Ou RMB common
2118232921182329
AMC Medical and Health Hybrid shares
Securities Investment Fund
China Securities Finance RMB common
1909534419095344
Corporation Limited shares
National Social Security Fund - RMB common
1758974417589744
Portfolio 112 shares
Bank of Shanghai Co. Ltd. -
Yinhua CSI Innovative
RMB common
Pharmaceutical Industry Traded 13013898 13013898
shares
Open-ended Index Securities
Investment Fund
China Construction Bank
Corporation - E Fund CSI 300 RMB common
1234387012343870
Medical and Health Trading Open shares
Index Securities Investment Fund
Explanation on associated relationships or concerted The Company is unaware of whether the above-mentioned shareholders
actions among the above-mentioned shareholders are related parties or whether they are concert parties with one another.As of the end of the current reporting period none of the top 10 common
Description of the participation in securities margin
shareholders of the Company held shares of the Company through
trading business of top 10 shareholders (if any)
securities 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 trading restriction
□Applicable□Not applicable
Change in top 10 shareholders and top 10 shareholders holding tradable shares without trading restriction 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
6First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
Ⅲ. Other Important Matters
□Applicable □Not applicable
(I) Overview of the Company's overall operations during the reporting period
In 2026 external competition is expected to continue intensifying and the policy environment
has become increasingly complex and volatile. Corporate development faces mounting pressures.Competition driven by market share will enter a new stage. During the reporting period in the face
of these challenges the Company has remained firmly aligned with its overall strategic roadmap
and annual operational objectives. Guided by the business priorities of "exploring new markets
focusing on new products strengthening organizational capabilities and building new
competencies" the Company has upheld the management philosophy of "problem-solving and
value creation" and integrated the principles of "innovation-driven development resource
integration and enterprise-wide collaboration" throughout all operational processes; staying
committed to its innovation the Company has systematically advanced comprehensive upgrades
across its product portfolio management systems and talent development. It concentrated resources
on tackling key R&D and clinical study programs deepened collaboration across sectors such as
pharmaceuticals medical aesthetics and commercial operations continuously activated growth
drivers for innovative business and realized steady improvements in operational quality and
management efficiency ensuring the orderly execution of various tasks.During the reporting period the Company achieved operating revenue of RMB 11.183 billion
representing a YoY increase of 4.17% and a quarter-on-quarter increase of 2.15% compared with
Q4 2025. Net profit attributable to shareholders of the listed company reached RMB 1.002 billion
up 9.56% year-on-year. Net profit attributable to shareholders excluding non-recurring profit and
loss items was RMB 990 million marking a YoY increase of 10.30% and reaching a historical high
for the same period.During the reporting period Zhongmei Huadong the Company's core subsidiary in the field of
pharmaceutical industry maintained steady growth in overall operations. It achieved operating
revenue (including CSO business) of RMB 4.048 billion representing an 11.82% YoY increase.The consolidated net profit attributable to the parent company reached RMB 931 million up
10.44% year-on-year. Both operating revenue and net profit attributable to the parent company
recorded the growth exceeding 10%.During the reporting period the revenue contribution of innovative products continued to
increase. Sales and agency service revenue generated from innovative products reached RMB 810
7First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
million representing a year-on-year growth of 61.8% and accounting for 20.05% of the operating
revenue of the pharmaceutical industry segment (including the CSO business). The overall business
of the Company has entered a strong growth trajectory further demonstrating the effectiveness of
the Company’s R&D achievement transformation and the professionalism of its commercialization
operations. By the end of the first quarter of 2026 medical institutions that were certified and
registered to administer the CAR-T therapy Zevorcabtagene Autoleucel Injection (zevor-cel) had
expanded to more than 20 provinces and municipalities across the country. Zevor-cel has also been
included in the Commercial Health Insurance Innovative Drug List. As of the date of this Report
more than 100 commercial and Huiminbao (a city-specific supplemental medical insurance program)
programs have incorporated zevor-cel into their reimbursement coverage. Since its launch
Sailexin the biosimilar of Ustekinumab Injection has demonstrated outstanding market
performance. To date it has been prescribed in over 2000 hospitals and its sales revenue in the
first quarter of 2026 increased by nearly 200% year on year.In the diabetes field Huiyoujing i.e. Ganagliflozin Proline Tablets which is the Class 1 new
drug has now been adopted by over 1900 tiered hospitals. Its sales revenue in the first quarter of
2026 increased by over 800% year on year (noting that the first quarter of 2025 was its first sales
period after inclusion in the national reimbursement drug list).By the end of the first quarter Mirvetuximab Soravtansine Injection (trade name: ELAHERE)
had been listed on drug procurement platforms in 29 provinces prescribed in over 200 hospitals
and made available in more than 400 medical institutions and over 200 DTP pharmacies. Currently
Elahere has also been successfully incorporated in multiple Huiminbao (a city-specific
supplemental medical insurance program) programs and commercial insurance programs such as
Beijing Inclusive Medical Insurance Program Jiangxi Ganhuibao (inclusive commercial health
insurance program) Leshan Huijiabao (city-customized insurance program) and Shaanxi Universal
Health Insurance. From 2025 to the end of the reporting period cumulative sales of Elahere
exceeded RMB 100 million. The novel PARP inhibitor Senaparib Capsules (trade name:
Paishuning) exclusively promoted by the Company has delivered outstanding market
performance. Currently it is available in over 300 DTP pharmacies and more than 900 medical
institutions supported by a multi-tier distribution network; at the same time the Company actively
promoted the inclusion of its product in reimbursement coverage of insurance programs. The
product has been incorporated into multiple regional Huiminbao programs (e.g. West Lake
Yilianbao Huhuibao Chonghuibao Jiaxing Huiminbao and CPIC-Huxiangbao) as well as other
commercial insurance programs effectively reducing the financial burden of patients.MediBeacon TGFR the world’s first bedside renal function assessment device applicable to
8First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
patients with normal or impaired renal function has officially commenced commercial sales in the
Chinese market. To date consumables of MediBeacon TGFR have been listed in 25 provinces
while Relmapirazin Injection has been listed in 21 provinces.During the reporting period the pharmaceutical distribution segment of the Company
sustained stable operations yielding an aggregate operating revenue of RMB 7.181 billion marking
a year-on-year (YoY) uptick of 3.57% and a net profit of RMB 119 million representing a 3.16%
YoY increase. Overall it demonstrated a robust developmental trajectory.Affected by multiple factors such as the cyclical fluctuations in the global economy intensified
industry competition and slower-than-expected recovery in domestic aesthetic medicine
consumption the Company's aesthetic medicine segment continued to confront growth headwinds.Throughout the reporting period it achieved a total operating revenue of RMB 361 million
(excluding internal offsets) reflecting a YoY decline of 30.38%.On March 25 2026 the Company's exclusively distributed product Recombinant Botulinum
Toxin Type A for Injection (R&D code: YY001; trade name: Retoxin) received marketing
approval from the National Medical Products Administration (NMPA). This product is indicated for
the temporary amelioration of moderate-to-severe glabellar lines in adults aged 65 and under
resulting from the activity of the corrugator supercilii and/or procerus muscles. This product is
poised to initiate formal commercial sales in the near future.During the reporting period the Company's industrial microbiology segment continued to
experience relatively rapid revenue growth with a YoY increase of 21.82%. Given the proactive
expansion into overseas markets and a consistent uptick in orders this segment is anticipated to
uphold its favorable developmental momentum.(II) Important R&D progress of the Company during the reporting period
1. Major progress in innovation-driven R&D during the reporting period
Oncology
HDM2005 an antibody-drug conjugate (ADC) targeting ROR1 has maintained its leading
position within the global first echelon of clinical development for ROR1 ADCs. Presently three
clinical studies are being conducted in China: a Phase I clinical study evaluating monotherapy for
advanced hematologic malignancies including mantle cell lymphoma (MCL) diffuse large B-cell
lymphoma (DLBCL) and classical Hodgkin lymphoma (cHL). This study has completed Phase Ia
monotherapy dose escalation and is currently performing dose expansion studies for MCL and cHL.Another Phase I study assessing monotherapy for advanced solid tumors has enrolled 17 patients
and is conducting dose expansion at a dosage of 2.5 mg/kg. Additionally a Phase Ib &II clinical
9First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
study investigating combination therapy for DLBCL patients is currently undergoing combination
therapy dose escalation. In addition the Company has submitted communication and meeting
requests to the CDE respectively for combination therapy in MCL and cHL.The clinical study for dose escalation of monotherapy involving HDM2020 an ADC targeting
FGFR2b has advanced to the fourth dose cohort. Furthermore a Phase Ia study for lung squamous
cell carcinoma has officially commenced with subject screening currently in progress. In February
2026 HDM2020 was granted orphan drug designation (ODD) by the U.S. FDA for gastric cancer
(including gastroesophageal junction cancer).HDM2012 an ADC targeting MUC17 has reached the fourth dose cohort in its Phase I
clinical study aimed at treating advanced solid tumors.HDM2017 targeting CDH17 has progressed to the fourth dose cohort in its Phase Ia
monotherapy trial in China with concurrent dose expansion at a dosage of 3.2 mg/kg. The first
Australian site was activated in February 2026 and subject screening is ongoing. In addition in
March 2026 HDM2017 received ODD from the U.S. FDA for three indications: biliary tract cancer
gastric cancer and pancreatic cancer.HDM2024 an EGFR/HER3-targeting bispecific ADC received IND approvals in the United
States and China in March 2026 for the treatment of advanced solid tumors. The first subject
administration in a Phase I clinical study in China was completed in April 2026.HDP-101 (HDM2027) a BCMA-targeting amanitin ADC enrolled its first patient in China in
March 2026 for the treatment of plasma-cell disorders including multiple myeloma.The small-molecule antineoplastic agent HPK-1 PROTAC (hematopoietic progenitor kinase 1
proteolysis-targeting chimera) HDM2006 tablets is currently undergoing a Phase I clinical study in
China for the treatment of advanced solid tumors with enrollment for the third dose cohort
underway.DR30206 for injection a proprietary PD-L1/VEGF/TGF-β tri-specific antibody fusion protein
developed by Doer Biologics a controlled subsidiary of the Company is nearing the completion of
dose expansion studies in its Phase Ib trial for the first-line treatment of non-small cell lung cancer
demonstrating promising overall efficacy. The program is advancing its combination therapy study.Phase Ib/IIa clinical studies evaluating combination therapy with standard chemotherapy for
advanced or metastatic gastrointestinal tumors as well as Phase Ib monotherapy expansion studies
for head and neck squamous cell carcinoma cohorts are currently underway. In January 2026 the
DR30206 was administered to the first subject in the monotherapy expansion cohort for platinum-
resistant ovarian cancer during its Phase Ib trial. In March 2026 DR30206 received IND approval
in China for its combination with standard chemotherapy in patients with locally advanced or
10First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
metastatic non-small cell lung cancer.Endocrinology
HDM1002 (conveglipron) the oral small-molecule GLP-1 receptor agonist has completed
enrollment of all subjects for its Phase III clinical study in China for the weight management
indication. The study is currently in the stage of treatment follow-up and data collection. The NDA
application is expected to be submitted in Q4 2026. Both Phase III clinical studies for the type 2
diabetes mellitus indication of this product have completed full enrollment. Pre-NDA
communication application is expected to be submitted in Q4 2026.HDM1005 (poterepatide) Injection a GLP-1R/GIPR long-acting polypeptide dual-target
agonist enrolled all subjects in the Phase III clinical study for the weight management indication.Top-line results for the Phase II clinical study for diabetes were obtained in February 2026. The first
subjects have been enrolled in both Phase III studies for diabetes. Two Phase III studies for the
obstructive sleep apnea hypopnea syndrome (OSAS) indication are currently in preparation.DR10624 a first-in-class therapeutic candidate targeting FGF21R/GCGR/GLP-1R and
developed by Doer Biologics a controlled subsidiary of the Company is currently progressing with
preparations for its Phase III clinical study aimed at treating severe hypertriglyceridemia. In January
2026 DR10624 was included in the Breakthrough Therapy Designation by the CDE for severe
hypertriglyceridemia. The Phase II clinical study targeting patients with metabolic dysfunction-
associated steatotic liver disease with high risk of liver fibrosis is currently being conducted
concurrently. Top-line results are expected to be obtained in Q3 2026.HDM1014 injection which is the GalNAc-siRNA weight-loss drug self-developed by the
Company is undergoing IND development work. It is expected to submit IND application in China
in Q4 2026.The IND application for HDM1010 tablets (a fixed-dose oral combination formulation of
HDM1002) intended for the treatment of type 2 diabetes mellitus has received approval from the
U.S. FDA. Clinical study preparations are currently in full swing.The NDA for the diabetes indication of Semaglutide Injection was submitted and accepted in
March 2025 and successfully passed clinical inspection; the NDA for the weight management
indication was accepted in April 2026.The NDA 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 top-line results from the Phase III clinical study of Insulin Degludec and Insulin Aspart
Injection have been obtained. It is expected to submit NDA in the Q2 of 2026.Autoimmunity
11First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
The Marketing Authorization Application (MAA) and supplemental application for HDM3001
(QX001S) a ustekinumab biosimilar developed in collaboration with Qyuns Therapeutics for the
treatment of Crohn's disease are expected to receive approval in the Q2 of 2026.The Phase III clinical studies for the innovative drug Oturkibart (R&D code:
HDM3016/QX005N) which was developed by the Company in collaboration with Qyuns
Therapeutics for the treatment of prurigo nodularis (PN) and atopic dermatitis (AD) have reached
their primary endpoints. The NDAs for the PN and AD indications are expected to be submitted in
the first and second halves of 2026 respectively.The Chinese NDA applications for HDM3014 (Roflumilast Cream) developed in
collaboration with Arcutis in the United States for two indications—plaque psoriasis in patients
aged 6 and above and atopic dermatitis in patients aged 6 and above—have successfully passed the
clinical on-site inspection conducted by the National Medical Products Administration. In addition
the Chinese NDA application for Roflumilast Cream for atopic dermatitis indication in patients
aged 2 to 5 was accepted in February 2026.The Phase I/II clinical study evaluating Ruxolitinib Gel (HDM3010) a modified new drug
developed by the Company for the treatment of prurigo nodularis has yielded top-line results. The
Company has received feedback from the Center for Drug Evaluation (CDE) and are currently
making preparations for subsequent studies based on this feedback. In addition a Phase III clinical
study in vitiligo is currently ongoing.The Phase III clinical study of MC2-01 Cream developed through a collaboration between the
Company and MC2 Therapeutics for the treatment of plaque psoriasis has enrolled more than 120
subjects in China to date.HDM4002 Injection the first-in-class bispecific antibody candidate independently developed
by the Company is currently undergoing IND-enabling development. It is anticipated that IND
applications will be submitted in both China and the United States in 2026.Other segments
The NDA for Ranibizumab Injection was submitted and accepted in May 2025. Subsequently
the on-site inspection has been completed for the production. Ranibizumab Injection has
successfully passed the clinical on-site inspection conducted by the National Medical Products
Administration.
2. Registration milestones for key innovative products since 2026
Type Item Category ChinaRegistration Class Milestone Event
SAILEXIN Biosimilar Class 3.3 Supplemental application for new strengths
NDA
12First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
acceptance (Ustekinumab therapeutic of Crohn's disease was accepted in January
Injection) biological product 2026
0.05% Roflumilast Innovative Class 5.1 chemical
Cream drug drug NDAwas accepted in February 2026
Semaglutide Class 3.3
Injection Biosimilar therapeutic
NDA for weight management indication was
biological product accepted in April 2026
Budesonide and
Fomoterol Powder Modified Class 2.2 chemical
for Inhalation (IV) new drug drug NDA accepted in April 2026
Capsule type
DR10624 Innovative Class 1 therapeutic
The IND for metabolic dysfunction-
drug biological product associated steatotic liver disease wasapproved in the U.S. in January 2026
The IND for the combination therapy with
HDM2005 Innovative Class 1 therapeutic
Rituximab and Lenalidomide for the
drug biological product treatment of relapsed/refractory mantle celllymphoma was approved in China in
January 2026
DR10624 Innovative Class 1 therapeutic IND for hypertriglyceridemia approved in
IND drug biological product China in February 2026
approved The IND for combination with standard
Innovative Class 1 therapeutic chemotherapy in locally advanced orDR30206 drug biological product metastatic non-small cell lung cancerpatients was approved in China in February
2026
HDM2024 Innovative Class 1 therapeutic
The IND for advanced malignant solid
drug biological product tumors was approved in China in March2026
HDM2024 Innovative Class 1 therapeutic
The IND for advanced malignant solid
drug biological product tumors was approved in the U.S. in March2026
Orphan drug designation was granted in the
HDM2020 Innovative Class 1 therapeutic U.S. in February 2026 for indications ofdrug biological product gastric cancer and gastroesophageal junction
cancer
Innovative Class 1 therapeutic Orphan drug designation was granted in the
Orphan drug HDM2017 drug biological product U.S. in March 2026 for biliary tract cancer
designation indication
HDM2017 Innovative Class 1 therapeutic
Orphan drug designation was granted in the
drug biological product U.S. in March 2026 for gastric cancerindication
HDM2017 Innovative Class 1 therapeutic
Orphan drug designation was granted in the
drug biological product U.S. in March 2026 for pancreatic cancerindication
Breakthrough Innovative Class 1 therapeutic Chinese breakthrough therapy designation
therapy DR10624 drug biological product was obtained in January 2026 for severehypertriglyceridemia
Note: Budesonide and Fomoterol Powder for Inhalation (IV)(capsule type) is the product exclusively commercialized
by the Company in the Chinese mainland.
3. The Company's pharmaceutical innovation achievements presented at international
academic conferences since 2026
No. Date ofrelease Item
Conference/journal Presentation
name format Title
1 March 2026 HDM3014 American Academy Oral Efficacy and Safety of Roflumilastof Dermatology Cream 0.3% in Chinese Adult and
13First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
(AAD) Pediatric Patients with Plaque
Psoriasis: Results From a Phase 3 Trial
American Academy Roflumilast Cream 0.15% for Mild-to-
2 March 2026 HDM3014 of Dermatology Poster Moderate Atopic Dermatitis: A
(AAD) presentation Multicenter vehicle-Controlled Phase3 Bridging Study in China
Society of Critical Clinical Validation of a Transdermal
3 March 2026 HD-NP-102 Care Medicine Oral GFR Measurement System in Chinese
(SCCM) Individuals
Society of Critical Bioequivalence and Efficacy Study of
4 March 2026 HD-NP-102 Care Medicine Oral MB-102 With Transdermal GFR
(SCCM) Measurement in Chinese Subjects
American HDM2021 a potent and selective
5 April 2026 HDM2021 Association for Poster CBL-B inhibitor exhibits robustCancer Research presentation immunomodulatory efficacy for anti-
(AACR) tumor therapy
American A novel EGFR and HER3 bispecific
6 April 2026 HDM2024 Association for Poster antibody-drug conjugate exhibitsCancer Research presentation superior antitumor activity and
(AACR) favorable toxicological profile
American
Association for Poster DR319-DP: A Nectin-4/Trop-27 April 2026 DR319 Cancer Research presentation bispecific ADC with an avidity-driven
(AACR) VHH design and dual-MOA payloads
(III) Activities such as research communication and interviews conducted during the reporting period
Main content
Reception Reception Reception Type of of discussion Index of basic
date address method visitor Visitors and information of theinformation research
provided
For details please
Guotai refer to the Record
Haitong Sheet of Investor
Institutio Securities Relations Activities
January 21 Conference ns and TF Investor
and 22 2026 room of the Field visits communicati
on January 21 and
Company individu Securities 22 2026 publishedals Zheshang on by the Company at
Securities https://irm.cninfo.co
etc. m.cn/ and at
www.cninfo.com.cn.IV. Quarterly Financial Statements
(I) Financial statements
1. Consolidated balance sheet
Prepared by: Huadong Medicine Co. Ltd.March 31 2026
Unit: RMB
14First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
Item Closing balance Opening balance
Current assets:
Monetary funds 3734865777.19 4978052188.84
Deposit reservation for balance
Lendings to banks and other financial
institutions
Trading financial assets
Derivative financial assets
Notes receivable 6213394.05
Accounts receivable 11076591135.34 8985587945.31
Receivables financing 332387014.92 460578206.16
Prepayments 508155787.14 445803941.09
Premium receivable
Reinsurance accounts receivable
Reinsurance contract reserve
receivable
Other receivables 609897223.80 517535129.39
Incl.: Interest receivable
Dividends receivable 223608.84 223608.84
Financial assets purchased for resale
Inventory 5327579147.01 5535765919.86
Incl.: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year 75464880.54 75464880.54
Other current assets 139274907.01 222343329.23
Total current assets 21804215872.95 21227344934.47
Non-current assets:
Loans and advances issued
Debt investments
Other debt investments
Long-term receivables
Long-term equity investment 1629415091.83 1509122017.22
Investment in other equity instruments 682132315.02 681006253.76
Other non-current financial assets
Investment property 10694501.05 10946776.47
Fixed assets 4389958201.12 4470264264.88
Construction in progress 931509517.77 832431516.18
Productive biological assets
Oil and gas assets
Right-of-use assets 158409996.23 170395474.59
Intangible assets 3922211412.97 3849691624.59
Incl.: Data resources
Development expenditure 1943582627.60 1757196902.53
Incl.: Data resources
Goodwill 2848210102.92 2860135566.37
Long-term deferred expenses 18776159.14 19541767.43
Deferred income tax assets 385084524.44 385084524.45
Other non-current assets 1183842241.90 1264874697.98
Total non-current assets 18103826691.99 17810691386.45
Total assets 39908042564.94 39038036320.92
Current liabilities:
Short-term borrowings 1714508902.52 1621903523.77
Borrowings from the central bank
Borrowings from other banks and
other financial institutions
15First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
Trading financial liabilities
Derivative financial liabilities
Notes payable 3017614936.17 2910051094.08
Accounts payable 4591952103.81 5059850765.02
Advance receipts 502191.65 797358.84
Contract liabilities 232364085.08 188554462.61
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 237138507.68 411598841.94
Taxes and dues payable 553756331.70 563317023.92
Other payables 2567376516.56 2215275211.55
Incl.: Interests payable
Dividends payable 101810219.60 102560219.60
Handling charges and commissions
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
82978800.49108871732.55
year
Other current liabilities 34942891.80 10443641.94
Total current liabilities 13033135267.46 13090663656.22
Non-current liabilities:
Provision for insurance contracts
Long-term borrowings 251619962.82 252034854.55
Bonds payable
Incl.: Preferred share
Perpetual bonds
Lease liabilities 111057382.92 88813504.20
Long-term payables
Long-term employee compensation
payable
Estimated liabilities 19922759.61 20617015.41
Deferred revenue 187359036.43 190942291.61
Deferred income tax liabilities 217236393.17 223959318.75
Other non-current liabilities
Total non-current liabilities 787195534.95 776366984.52
Total liabilities 13820330802.41 13867030640.74
Owners' equity:
Share capital 1753736848.00 1753736848.00
Other equity instruments
Incl.: Preferred share
Perpetual bonds
Capital reserve 2416510921.20 2416358618.64
Less: Treasury share
Other comprehensive income -74836933.54 5770687.07
Special reserves
Surplus reserves 1616443486.39 1616443486.39
General risk reserves
Retained earnings 20021219710.05 19019030352.89
Total owners' equity attributable to the
25733074032.1024811339992.99
parent company
Minority interests 354637730.43 359665687.19
16First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
Total owners' equity 26087711762.53 25171005680.18
Total liabilities and owners' equity 39908042564.94 39038036320.92
Legal representative: Lv Liang Officer in charge of accounting: Lv Liang Head of Accounting Department: Qiu Renbo
2. Consolidated income statement
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
I. Total operating revenue 11183450824.27 10735787899.82
Incl.: Operating revenue 11183450824.27 10735787899.82
Interest income
Premiums earned
Handling charges and
commissions revenue
II. Total operating costs 9992872896.34 9620007130.43
Incl.: Operating costs 7387443870.04 7206598136.26
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 67774008.09 57265200.91
Selling expenses 1820619488.78 1470753504.47
Management expenses 371395501.48 355395350.66
R&D expenses 350365327.14 515376918.47
Financial expenses -4725299.19 14618019.66
Incl.: Interest expense 19176576.84 25924507.30
Interest income 20155981.89 27812843.06
Plus: Other incomes 31230304.02 73641636.88
Investment income (loss
-22310345.97-42624149.61
expressed with "-")
Incl.: Investment income in
-7510017.34-28249462.69
associates and joint ventures
Income from
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
17First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
expressed with "-")
Asset impairment loss (loss
expressed with "-")
Proceeds from disposal of assets
534949.84-14540990.32
(loss expressed with "-")
III. Operating profit (loss expressed with
1200032835.821132257266.34
"-")
Plus: Non-operating revenue 1256954.75 769095.39
Less: Non-operating expenses 9095444.64 28075417.91
IV. Total profit (total loss expressed with
1192194345.931104950943.82
"-")
Less: Income tax expense 195032945.55 190966760.40
V. Net profit (net loss expressed with "-") 997161400.38 913984183.42
(I) Classification by continuity of
operation
1. Net profits from continuing
997161400.38913984183.42
operations (net loss expressed with "-")
2. Net profit from discontinued
operations (net loss expressed with "-")
(II) Classification by ownership
1. Net profit attributable to the
1002189357.16914708484.70
owners of the parent company
2. Minority interest income -5027956.78 -724301.28
VI. Other comprehensive income (net of
-80607620.6182044972.47
tax)
Other comprehensive income
attributable to the owner of the parent -80607620.61 82044972.47
company (net of tax)
(I) Other comprehensive income
that cannot be reclassified into the profits
and 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
4. Changes in fair value by the
enterprise's credit risks
5. Others
(II) Other comprehensive income
that will be reclassified into the profits -80607620.61 82044972.47
and 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
5. Cash flow hedging reserves
6. Converted difference in foreign
-80607620.6182044972.47
currency financial statements
7. Others
18First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
Other comprehensive income
attributable to minority shareholders (net
of tax)
VII. Total comprehensive income 916553779.77 996029155.89
Total comprehensive income
attributable to the owner of the parent 921581736.55 996753457.17
company
Total comprehensive income
-5027956.78-724301.28
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.5715 0.5224
(II) Diluted earnings per share 0.5715 0.5213
If there is a business combination under common control in this period the net profit of the combined party before the
combination is RMB 0.00 and the net profit of the combined party in the previous period is RMB 0.00.Legal representative: Lv Liang Officer in charge of accounting: Lv Liang Head of Accounting Department: Qiu Renbo
3. Consolidated cash flow statement
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
10376323259.389882552619.72
providing services
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 2570131.00 2055460.55
Receipt of other cash relating to
124934981.83230013343.26
operating activities
Subtotal of cash inflows from operating
10503828372.2110114621423.53
activities
Cash paid for purchase of goods and
7960726465.367695820108.31
receipt of labor services
Net increase in customer loans and
advance payments
19First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
Net increase in deposits with the
central bank and interbank
Cash for payment of the original
insurance 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 1542554152.98 1441219423.87
Various taxes and fees paid 709327509.54 671816951.08
Payment of other cash relating to
1143556006.961138493634.15
operating activities
Subtotal of cash outflows from operating
11356164134.8410947350117.41
activities
Net cash flow from operating activities -852335762.63 -832728693.88
II. Cash flows from investing activities:
Cash received from investment
recovery
Cash received from obtaining
43350000.00
investment income
Net cash recovered from disposal of
fixed assets intangible assets and other 74063.51 9751907.00
long-term assets
Net cash received from disposal of
subsidiaries and other business units
Receipt of other cash relating to
investing activities
Subtotal of cash inflows from investing
74063.5153101907.00
activities
Cash paid for the purchase and
construction of fixed assets intangible 261855876.92 637322382.41
assets and other long-term assets
Cash paid for investment 129618537.85 61618925.00
Net increase in pledged loans
Net cash paid for acquisition of
subsidiaries and other business entities
Payments of other cash relating to
investing activities
Subtotal of cash outflows from investing
391474414.77698941307.41
activities
Net cash flows from investing activities -391400351.26 -645839400.41
III. Cash flows from financing activities:
Cash received by absorbing
investment
Incl.: Cash received by subsidiaries
from minority shareholders' investment
Cash received from obtaining
1131688831.321289998848.00
borrowings
Receipt of other cash relating to
800000.00146000000.00
financing activities
Subtotal of cash inflows from financing
1132488831.321435998848.00
activities
Cash paid for debt repayment 1047678831.32 1279708605.45
20First Quarterly Report 2026 of Huadong Medicine Co. Ltd.
Cash paid to distribute dividends
37291974.4517579298.66
profits or pay interest
Incl.: Dividends and profits paid by
subsidiaries to minority shareholders
Payment of other cash relating to
12306031.36225549581.73
financing activities
Subtotal of cash outflows from financing
1097276837.131522837485.84
activities
Net cash flow from financing activities 35211994.19 -86838637.84
IV. Effect of exchange rate changes on
-4179294.34-3115685.50
cash and cash equivalents
V. Net increase in cash and cash
-1212703414.04-1568522417.63
equivalents
Plus: Opening balance of cash and
4735921663.904990151186.68
cash equivalents
VI. Closing balance of cash and cash
3523218249.863421628769.05
equivalents
(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
2026
□Applicable□Not applicable
(III) Audit report
Has the First Quarterly Financial Report been audited
□Yes□No
The Company’s First Quarterly Financial Report has not been audited.Board of Directors of Huadong Medicine Co. Ltd.April 24 2026
21
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