First Quarterly Report 2025 of Huadong Medicine Co. Ltd.Stock code: 000963 Stock abbreviation: Huadong Medicine Announcement No.: 2025-036
Huadong Medicine Co. Ltd.First 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 complete and free of any false records misleading statements or material
omissions.Important Declaration:
1. The Board of Directors Board of Supervisors directors supervisors and senior management of Huadong Medicine Co. Ltd.
(hereinafter referred to as the “Company”) hereby guarantee that the information presented in this report is authentic accurate complete
and free of any 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 2025 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
Change of the current
Current reporting period Same period last year reporting period over the
same period last year (%)
Operating revenue (yuan) 10735787899.82 10410809128.72 3.12%
Net profit attributable to
shareholders of listed 914708484.70 862411560.96 6.06%
companies (yuan)
Net profit attributable to
shareholders of listed
companies after deducting 897337982.42 838303551.41 7.04%
non-recurring gains/losses
(yuan)
Net cash flows from operating
-832728693.88-484522666.13-71.87%
activities (yuan)
Basic earnings per share
0.52240.49295.98%
(yuan/share)
Diluted earnings per share
0.52130.49285.78%
(yuan/share)
Weighted average return on
3.88%4.01%-0.13%
equity (ROE)
Change of the end of the
End of the current reporting
End of last year current reporting period over
period
the end of last year (%)
Total assets (yuan) 39447159682.31 37879046367.15 4.14%
Owners’ equity attributable to
shareholders of listed 24059686522.62 23060051397.36 4.33%
companies (yuan)
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
1754077048.00
disclosure (share)
Fully diluted earnings per share based on the latest share capital:
Paid preference dividends (yuan) 0.00
Paid perpetual bond interests (yuan) 0.00
Fully diluted earnings per share based on the latest share capital
0.5215
(yuan/share)
(II) Items and amounts of non-recurring gains/losses
□ Applicable □ N/A
Unit: yuan
Item Amount during the reporting period Note
Gains/losses on disposal of non-current
assets (including the written-off part of -14540990.32
the accrued assets impairment reserve)
Government grants included in current 63368096.78
2First Quarterly Report 2025 of Huadong Medicine Co. Ltd.
gains/losses (excluding those closely
related to daily business operation
distributed constantly in accordance with
defined standards in line with national
policies and regulations and constantly
affecting the Company’s gains/losses)
Other non-operating income and
-27234544.52
expenditures except the aforesaid items
Minus: Amount affected by income tax 2320389.02
Impact on minority interests (post-
1901670.64
tax)
Total 17370502.28 --
Details of other items of gains/losses meeting the definition of non-recurring gains/losses
□ Applicable □ N/A
There are no other items of gains/losses meeting the definition of non-recurring gains/losses.Explanation for recognizing an item listed as a non-recurring gain/loss in the Interpretative Announcement No. 1 on Information
Disclosure Criteria for Public Companies - Non-Recurring Gains/Losses as a recurring gain/loss
□ Applicable □ N/A
No item listed as a non-recurring gain/loss in the Interpretative Announcement No. 1 on Information Disclosure Criteria for Public
Companies - Non-Recurring Gains/Losses is recognized as a recurring gain/loss.(III) Details and reasons for changes in key accounting data and financial indicators
□ Applicable □ N/A
Unit: ten thousand yuan
Amount
Amount at at the
Percentage
Balance sheet accounts the end of the beginning Reasons for changes
change
period of the
period
Mainly due to the decrease in receivable trade
Notes receivable - 1069.63 -100.00%
acceptance in the current period
Mainly due to the discount of bank
Receivables financing 98819.62 167763.64 -41.10%
acceptance bills in the current period
Mainly due to the increase in accounts
Accounts receivable 1155823.38 842535.89 37.18%
receivable in the current period
Mainly due to the increase in receivable
Other receivables 57186.65 40287.04 41.95%
temporary payments in the current period
Mainly due to the increase in prepaid rent in
Advances from customers 239.44 111.52 114.71%
the current period
Mainly due to the payment of employee
Employee benefit payable 21991.29 41713.31 -47.28%
benefit in the current period
Non-current liabilities due Mainly due to the payment of long-term
11078.2033052.89-66.48%
within one year borrowings due within one year
Mainly due to the increase in foreign
Other comprehensive
3144.68 -5059.82 162.15% currency translation difference in the current
income
period
Amount
Amount in
Income statement in the Percentage
the current Reasons for changes
accounts previous change
period
period
Mainly due to the increase in R&D input in
R&D expenses 51537.69 28163.98 82.99%
the current period
3First Quarterly Report 2025 of Huadong Medicine Co. Ltd.
Mainly due to the increase in exchange losses
Financial expenses 1461.80 755.50 93.49%
in the current period
Mainly due to the increase in income-related
Other income 7364.16 3831.17 92.22%
governmental subsidy in the current period
Mainly due to the decrease in income from
Income from disposal of
-1454.10 152.13 -1055.84% the disposal of fixed assets in the current
assets
period
Mainly due to the decrease in compensation
Non-operating revenue 76.91 129.56 -40.64%
revenue in the current period
Mainly due to the increase in donations in the
Non-operating expenses 2807.54 520.26 439.64%
current period
Amount
Amount in
Cash flow statement in the Percentage
the current Reasons for changes
accounts previous change
period
period
Net cash flows from Mainly due to the increase in cash paid to
-83272.87-48452.27-71.87%
operating activities employees in the current period
Net cash flows from Mainly due to the decrease in investment in
-64583.94-70737.618.70%
investing activities the current period
Net cash flows from Mainly due to the year-on-year decrease in
-8683.867149.63-221.46%
financing activities borrowings obtained in the current period
II. Shareholder Information
(I) Total number of common shareholders number of preferred shareholders with restored voting rights and
shareholdings of the top 10 shareholders
Unit: share
Total number of common
Total number of preferred shareholders with restored
shareholders at the end of the 75847 0
voting rights at the end of the reporting period (if any)
reporting period
Particulars about the top 10 shareholders (excluding shares lent through conversions)
Number of Pledged marked or locked-up
Name of Nature of Shareholding Number of shares with status
shareholder shareholder ratio (%) shares held trading
Status of shares Quantity
restrictions held
Domestic non-
China Grand
state-owned 41.67% 730938157.00 0.00 Pledge 143880000.00
Enterprises
corporation
Hangzhou
Huadong State-owned
16.42% 288000000.00 0.00 N/A 0.00
Medicine corporation
Group Co. Ltd.Hong Kong
Securities Overseas
2.63% 46120860.00 0.00 N/A 0.00
Clearing corporation
Company Ltd.China
Domestic non-
Securities
state-owned 1.26% 22186818.00 0.00 N/A 0.00
Finance Co.corporation
Ltd.Industrial and
Others 1.19% 20819368.00 0.00 N/A 0.00
Commercial
4First Quarterly Report 2025 of Huadong Medicine Co. Ltd.
Bank of China
Limited -
China-Europe
Healthcare
Hybrid
Securities
Investment
Fund
China
Construction
Bank
Corporation - E
Fund CSI 300
Medicine and
Others 0.88% 15518810.00 0.00 N/A 0.00
Health
Exchange Open
Index
Securities
Investment
Fund
Industrial and
Commercial
Bank of China
Limited -
Huatai-
PineBridge CSI Others 0.80% 14092845.00 0.00 N/A 0.00
300 Exchange
Open Index
Securities
Investment
Fund
National Social
Security Fund - Others 0.69% 12081124.00 0.00 N/A 0.00
Profile 112
China
Construction
Bank Co. Ltd.-
ICBC Credit
Suisse Frontier Others 0.68% 11977700.00 0.00 N/A 0.00
Medical Equity
Securities
Investment
Fund
Bank of
Shanghai Co.Ltd.-Yinhua
CSI Innovative Others 0.63% 10987978.00 0.00 N/A 0.00
Medicine
Exchange
Traded Fund
Particulars about the top 10 shareholders without trading restrictions (excluding shares lent through conversions and locked-up
shares for senior managers)
Type of shares
Name of shareholder Number of shares without trading restrictions held
Type of shares Quantity
Common
China Grand Enterprises 730938157.00 730938157.00
shares in yuan
Hangzhou Huadong Medicine 288000000.00 Common 288000000.00
5First Quarterly Report 2025 of Huadong Medicine Co. Ltd.
Group Co. Ltd. shares in yuan
Hong Kong Securities Clearing Common
46120860.0046120860.00
Company Ltd. shares in yuan
Common
China Securities Finance Co. Ltd. 22186818.00 22186818.00
shares in yuan
Industrial and Commercial Bank
of China Limited - China-Europe Common
20819368.0020819368.00
Healthcare Hybrid Securities shares in yuan
Investment Fund
China Construction Bank
Corporation - E Fund CSI 300
Common
Medicine and Health Exchange 15518810.00 15518810.00
shares in yuan
Open Index Securities Investment
Fund
Industrial and Commercial Bank
of China Limited - Huatai-
Common
PineBridge CSI 300 Exchange 14092845.00 14092845.00
shares in yuan
Open Index Securities Investment
Fund
National Social Security Fund - Common
12081124.0012081124.00
Profile 112 shares in yuan
China Construction Bank Co.Ltd.-ICBC Credit Suisse Frontier Common
11977700.0011977700.00
Medical Equity Securities shares in yuan
Investment Fund
Bank of Shanghai Co. Ltd.-
Common
Yinhua CSI Innovative Medicine 10987978.00 10987978.00
shares in yuan
Exchange Traded Fund
The Company does not know whether the above-mentioned shareholders
Explanation on associated relationships or concerted
are related parties or whether they are acting-in-concert parties with one
actions among the above-mentioned shareholders
another.At the end of the reporting period the Company had no shareholders
Description of the participation in margin trading
holding its shares through margin trading and securities lending accounts
business of the top 10 shareholders (if any)
among the top 10 common shareholders.Participation of shareholders with a shareholding ratio of over 5% the top 10 shareholders and the top 10 shareholders holding tradable
shares without trading restriction conditions in lending through conversions
□ Applicable □ N/A
Change in the top 10 shareholders or the top 10 common shareholders without trading restrictions compared with the end of the previous
period due to shares lent/returned through conversions
□ Applicable □ N/A
(II) Total number of preferred shareholders of the Company and shareholdings of the top 10 shareholders
□ Applicable □ N/A
III. Other Important Matters
□ Applicable □ N/A
(I) Overview of the Company’s overall operations in the reporting period
During the reporting period the Company remained closely aligned with its overarchingstrategic blueprint and annual operational objectives. Guided by the principles of “reinvigorating
6First Quarterly Report 2025 of Huadong Medicine Co. Ltd.
entrepreneurial spirit deepening reforms strengthening organizational systems and seizingdevelopmental opportunities” the Company maintained a zero-based mindset and a relentless pursuit
of excellence vigorously advancing the effective implementation of various management initiatives.During the reporting period the Company achieved an operating revenue of 10.736 billion yuan
up 3.12% year on year and up 2.95% compared with that in Q4 2024. The net profit attributable to
shareholders of listed companies reached 915 million yuan marking a 6.06% year-on-year increase.The net profit attributable to shareholders of listed companies after deducting non-recurring
gains/losses stood at 897 million yuan reaching a historic high with a 7.04% year-on-year increase
and a 3.16% quarter-on-quarter increase from that in Q4 2024. After deducting the profits and losses
of participating and holding R&D institutions the net profit attributable to shareholders of listed
companies after deducting non-recurring gains/losses during the reporting period amounted to 982
million yuan reflecting a 17.15% growth compared with the Company’s net profit attributable to
shareholders of listed companies after deducting non-recurring gains/losses in Q1 2024.During the reporting period the Company’s core subsidiary Zhongmei Huadong witnessed
steady growth as a whole and achieved an operating revenue (including CSO business) of 3.621
billion yuan up 6.52% year on year and the consolidated net profit attributable to the parent company
of 843 million yuan up 12.20% year on year. During the reporting period the Company’s innovative
medicines saw robust momentum in sales driving sustained growth in the pharmaceutical industry.Leveraging its differentiated clinical value the CAR-T Zevorcabtagene Autoleucel Injection
(Saikaize) has rapidly penetrated core treatment centers throughout China. With positive clinical
feedback the product maintained strong sales momentum in Q1 2025 marked by steadily increasing
valid orders. The Company actively enhanced treatment accessibility with Saikaize now covered by
over 70 commercial insurance plans and regional Huiminbao programs (an urban customized
commercial medical insurance) as of the reporting date effectively alleviating patients’ financial
burdens. Continued market expansion and broader insurance coverage are expected to sustain its
high-speed growth trajectory. Sailexin China’s first biosimilar of Ustekinumab Injection has
delivered exceptional market performance since its launch. By March 31 2025 prescriptions for the
product had been issued in over 800 hospitals significantly benefiting psoriasis patients throughout
China. The product is projected to maintain robust growth throughout the year emerging as a
cornerstone of the Company’s autoimmune disease portfolio. Furthermore the novel Class 1
medicine Ganagliflozin Proline Tablets (Huiyoujing) has been included in the updated catalogue of
medicines covered by medical insurance accelerating its hospital adoption. Strategic synergy with
Metformin Hydrochloride and Empagliflozin Tablets (Enshuangping) has accelerated resource
sharing further reinforcing the Company’s competitive edge in the SGLT-2 inhibitor segment for
7First Quarterly Report 2025 of Huadong Medicine Co. Ltd.
diabetes management. The newly approved Senaparib Capsules (Paishuning) a new 1.5-generation
PARP inhibitor was launched for sales in January 2025. The Company is actively working on the
listing of the product on the procurement platform and facilitating its hospital access. To date the
Company has introduced Paishuning to over 100 DTPs and 300 hospitals while actively pursuing
inclusion in Huiminbao programs and commercial insurances such as West Lake Yilian Insurance (a
universe medical insurance in Hangzhou) Huhuibao (a universe medical insurance in Shanghai)
Chonghuibao (a universe medical insurance in Nanchong) Jiaxing Huiminbao and CPIC-
Huxiangbao (a commercial insurance of CPIC in Shanghai). In August 2024 the Company completed
the acquisition of Guizhou Hengba Pharmaceutical Limited Liability Company (renamed Huadong
Medicine (Guizhou) Pharmaceutical Co. Ltd. hereinafter referred to as “Guizhou Pharma”). A
dedicated in-house promotion team was established after the acquisition to accelerate the market
penetration of its flagship product Shangkeling in major hospitals and retail pharmacies. This
initiative has driven significant operational growth. During the reporting period Guizhou Pharma
achieved a strong start with an operating revenue of 24.26 million yuan up over 100% year on year
and a net profit of 6.67 million yuan surpassing its net profit in H1 2024. From its consolidation into
the Company’s financial statements in August 2024 to the end of the reporting period Guizhou
Pharma generated a cumulative operating revenue of 62.28 million yuan and a cumulative net profit
of 14.87 million yuan. It is projected to sustain its growth momentum in 2025.During the reporting period the Company’s pharmaceutical business segment witnessed stable
growth as a whole. The segment achieved an operating revenue of 6.934 billion yuan up 3.23% year
on year and a net profit of 115 million yuan up 7.33% year on year.During the reporting period the Company’s aesthetic medicine segment faced certain pressures
in growth imposed by dual challenges from global economic downturn and intensified industry
competition. Continuously expanding its aesthetic medicine market globally Sinclair the Company’s
wholly-owned subsidiary achieved the consolidated operating revenue of approximately 238 million
yuan down 12.29% year on year but up 24.37% quarter on quarter compared with that in Q4 2024
which align with its quarterly operational targets as a whole. Sinclair (Shanghai) the Company’s
wholly-owned subsidiary actively expanded its market in China and achieved an operating revenue
of 254 million yuan down 1.36% year on year but up 10.64% quarter on quarter compared with that
in Q4 2024. The Company has constantly deepened its layout of high-end aesthetic medicine
portfolios in China. MaiLi Extreme (trade name: MaiLi Shuoying) a high-end hyaluronic acid
filler in the MaiLi series utilizing patented OxiFree technology is scheduled for commercial launch
in May 2025. With the highest hyaluronic acid concentration and the best volumization effect among
the MaiLi series this injectable filler provides immediate contouring effects for mandibular
8First Quarterly Report 2025 of Huadong Medicine Co. Ltd.
retrognathia correction presenting more wonderful facial volumization solutions for Chinese patients.The Préime DermaFacial multi-functional facial skin management platform an intelligent hi-tech
cosmetic device that integrates IoT-enabled technologies such as spiral vacuum microdermabrasion
micro current and ultrasonic technique will debut in 2025 to deliver one-stop personalized cleaning
and anti-aging solutions to Chinese patients. The applications for the launch of key aesthetic medicine
portfolios such as recombinant botulinum toxin type A YY001 energy source equipment V30 and
Ellansé M in China have all been accepted and are expected to receive approvals in 2026. By
continuously enriching its differentiated product matrix in China’s aesthetic medicine sector and
capitalizing on consumption upgrade-driven market expansion the Company is positioned to
accelerate the release of growth potential in its aesthetic medicine business in China.During the reporting period the Company’s industrial microbiology segment sustained rapid
growth in revenue up 29.98% year on year. With the ongoing proactive expansion in overseas
markets this segment is positioned to maintain its growth momentum moving forward.(II) Important R&D progress of the Company during the reporting period
1. Progress of R&D of innovative medicines innovative medical devices and biosimilar
medicines
The Company further intensified its R&D efforts with increased investment. During the
reporting period the Company reported a pharmaceutical R&D input (excluding equity investments)
of 880 million yuan up 49.60% year on year. Among them direct R&D expenditure reached 600
million yuan up 71.77% year on year which accounts for 16.67% of the operating revenue of the
pharmaceutical industry segment. Multiple milestone achievements were attained in R&D of
innovative and biosimilar medicines with key progresses stated as follows:
Oncology
The supplemental application to convert the conditional approval of Mirvetuximab Soravtansine
Injection (ELAHERE R&D code: IMGN853 HDM2002) into full regular approval was accepted
in March 2025.With regard to the ROR1-targeted ADC (HDM2005) for the treatment of advanced malignant
tumors the Company completed the first three dose-escalation cohorts in its phase I clinical trial in
China with no dose-limiting toxicities (DLT) observed. The Company is currently advancing to the
fourth dose-escalation cohort while initiating expansion cohorts for the third dose level. In February
2025 the Company submitted an IND application to the NMPA for HDM2005 combined with R-
CHP in previously untreated diffuse large B-cell lymphoma (DLBCL) which was accepted. The
Company also received the Orphan Drug Designation (ODD) from the U.S. FDA for mantle cell
lymphoma (MCL) of its HDM2005 in February 2025.
9First Quarterly Report 2025 of Huadong Medicine Co. Ltd.
The IND application of HPK-1 PROTAC (hematopoietic progenitor kinase1 proteolysis
targeting chimera) a small-molecule anti-tumor medicine under HDM2006 in the U.S. was approved
by FDA in January 2025. The product is used for the treatment of advanced malignant tumors.Moreover the Company is currently conducting the phase I clinical trial in China for the treatment of
advanced solid tumors.DR30206 a PD-L1/VEGF/TGF-β trispecific antibody fusion protein for injection completed its
first subject administration in phase Ib clinical trial for the treatment of non-small cell lung cancer in
April 2025. The Company received approval for the clinical trial application for DR30206 in
combination with standard chemotherapy for the treatment of patients with advanced or metastatic
gastrointestinal tumors in April 2025. The enrollment of subjects for phase Ib clinical research is
expected to begin in H1 2025.Endocrinology
HDM1002 (conveglipron) an oral small-molecule GLP-1 receptor agonist completed
enrollment of the first subject for phase III clinical research for the indication of weight management
in April 2025. It is scheduled to complete the enrollment of all subjects by the end of June 2025. The
phase II clinical research for diabetes indication is progressing smoothly with top-line results
anticipated in Q3 2025. Phase III clinical research for diabetes indication is expected to be initiated
in H2 2025.HDM1005 (poterepatide) injection a GLP-1R/GIPR long-acting polypeptide dual-target
agonist is undergoing phase II clinical research for the indication of weight management and
completed the enrollment of all subjects for phase II in April 2025. Phase III clinical research is
expected to be initiated in Q4 2025. The Company also completed the enrollment of the first subject
for phase II clinical trial for the indication of diabetes in April 2025. During the reporting period the
IND applications for new indications of HDM1005 Injection were approved by the NMPA
successively targeting the treatment of obstructive sleep apnea (OSA) in adults with obesity or
overweight and heart failure with preserved ejection fraction (HFpEF) in adults with obesity or
overweight respectively.DR10624 Injection a FGF21R/GCGR/GLP-1R trispecific agonist is currently undergoing
phase II clinical trials for metabolic dysfunction-associated steatotic liver disease (MASLD) with the
first patient enrolled in April 2025. Concurrently a previously initiated phase II clinical research of
DR10624 for the treatment of severe hypertriglyceridemia completed the enrollment of all subjects
with unblinded top-line results anticipated in Q3 2025.The marketing authorization application of Semaglutide Injection for the indication of diabetes
was submitted in March 2025 which has been accepted. For the weight management indication full
10First Quarterly Report 2025 of Huadong Medicine Co. Ltd.
patient enrollment in phase III clinical research of Semaglutide Injection was completed in February
2025.
The marketing authorization application of Insulin Degludec Injection was submitted in
February 2025 which has been accepted.Autoimmunity
The supplemental application for the new pediatric plaque psoriasis indication of HDM3001
(QX001S) a biosimilar of Ustekinumab developed in collaboration between the company and Qyuns
Therapeutics was approved in March 2025. Additionally the marketing authorization application and
supplemental application for the Crohn’s disease were accepted in February 2025.The innovative medicine HDM3016 (QX005N) developed in collaboration between the
company and Qyuns Therapeutics is currently conducting phase III clinical trials in China for two
indications of prurigo nodularis and atopic dermatitis. The enrollment of all subjects for phase III
clinical research for prurigo nodularis was completed in March 2025.The IND application of HDM3019 (IMB-101) developed by the Company in partnership with
IMBiologics (Republic of Korea) for the treatment of rheumatoid arthritis in China was approved in
March 2025.Other segments
The Transdermal Glomerular Filtration Rate System a Class III innovative medical device was
approved by the NMPA in February 2025. The marketing authorization application for Relmapirazin
Injection (MB-102) used cooperatively with the system was accepted by the NMPA in January 2024.Additionally MediBeaconTGFR (including the Transdermal Glomerular Filtration Rate System and
Relmapirazin Injection) was approved by the U.S. FDA in January 2025.Academic publications
From 2025 to date the Company’s innovation teams have successively published 11 posters or
oral presentations at academic conferences in oncology endocrinology/metabolism and
autoimmunity segments. Specifically: results of phase I clinical research of GLP-1/GIP dual-target
long-acting agonist HDM1005 selected for oral presentation at 2025 ADA; results of phase III clinical
research of Semaglutide Injection and phase Ib clinical research of HDM1002 selected for POSTER
sharing at 2025 ADA; results of pre-clinical researches of HDM2006 HDM2022 HDM2012
HDM2017 and HDM2020 all selected as the POSTER of 2025 AACR; results of pre-clinical research
of the pan-KRAS antitumor degrader HDM2025 selected as the POSTER of 2025 ASCO; results of
clinical research of DR10624 a first-in-class Fc-fusion protein medicine with triple agonist activity
targeting GLP-1 GCG and FGFRIc/KlothoB (FGF21R) receptors developed by the Company’s
wholly-owned subsidiary Doer Biologics selected as the Late-Breaker at 2025 EASL and its non-
11First Quarterly Report 2025 of Huadong Medicine Co. Ltd.
clinical research results selected as the POSTER of 2025 EASL.
2. Progress of registration and launching of aesthetic medicine products in China
During the reporting period the Company continued to advance the registration and launching
of its aesthetic medicine products. V30 a high-end integrated multi-functional platform combining
radio frequency intense pulsed light and Nd:YAG laser technologies received a registration
acceptance notice from the National Medical Products Administration (NMPA) in March 2025.MaiLi Precise a novel premium hyaluronic acid dermal filler with lidocaine (indication: correction
of infraorbital pouch) completed main end-point follow-ups for all subjects in its Chinese clinical
trial in September 2024 and is currently undergoing safety follow-ups. MaiLi Extreme another filler
in the same series (indication: enhancement of jawline contour) was approved by the NMPA in
January 2025. For the Ellansé S the enrollment of all subjects for the new indication (enhancement
of forehead contour) in its Chinese clinical trial was completed in November 2024 and follow-ups
are now in progress. EllanséM a long-acting collagen-stimulating variant (indication: correction of
temporal depression) received the registration acceptance notice from the NMPA in January 2025.For the Poly-L-lactic acid (PLLA) collagen stimulant Lanluma (indication: enhancement of
mandibular contour) the enrollment of all subjects in its Chinese clinical trial was completed in
November 2024 and follow-ups are now in progress. The chitosan-based dermal filler KIO021 that
utilizes innovative biomaterials secured ethical approval for principal investigator of clinical trial in
December 2024 and is poised to initiate formal clinical trials. Additionally the marketing
authorization application for the exclusively distributed product YY001 (recombinant botulinum
toxin type A for injection) was accepted by the NMPA in December 2024 and is currently under
review.IV. Quarterly Financial Statements
(I) Financial statements
1. Consolidated balance sheet
Prepared by: Huadong Medicine Co. Ltd.March 31 2025
Unit: yuan
Item Ending balance Opening balance
Current assets:
Monetary funds 3711981117.29 5276440245.36
Settlement reserve
Lending funds
Trading financial assets
Derivative financial assets
12First Quarterly Report 2025 of Huadong Medicine Co. Ltd.
Notes receivable 10696341.24
Accounts receivable 11558233812.68 8425358862.23
Receivables financing 988196245.72 1677636420.09
Prepayments 509401242.97 400291510.71
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve
receivable
Other receivables 571866490.76 402870356.31
Including: Interests receivable
Dividends receivable 223608.84 223608.84
Financial assets purchased for resale
Inventories 4993004391.03 4776397278.01
Including: Data resource
Contract assets
Assets held for sale
Other non-current assets due within
one year
Other non-current assets 74540402.52 82099747.34
Total current assets 22407223702.97 21051790761.29
Non-current assets:
Loans and prepayments issuance
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 1513925302.98 1543646404.76
Other equity instrument investments 711111696.58 603232766.22
Other non-current financial assets
Investment real estate 11589767.25 11842042.67
Fixed assets 4333070220.62 4422300775.01
Construction in progress 952469422.55 836739481.60
Productive biological assets
Oil and gas assets
Right-of-use Assets 141646790.18 149504562.99
Intangible Assets 3786366926.50 3644956428.71
Including: Data resource
Development expenditure 1120038511.44 1033392377.69
Including: Data resource
Goodwill 2918760393.01 2913334523.63
Long-term Deferred Expenses 20884747.76 22601572.13
Deferred income tax assets 223505398.13 221848889.06
Other non-current assets 1306566802.34 1423855781.39
Total non-current assets 17039935979.34 16827255605.86
Total assets 39447159682.31 37879046367.15
Current liabilities:
Short-term borrowings 2453068051.27 2312339143.21
Borrowing from the central bank
Borrowing from other banks and other
financial institutions
Trading financial liabilities
Derivative financial liabilities
Notes payable 2963905693.12 2576685923.31
Accounts payable 4778197764.09 4467770810.96
Advances from customers 2394374.93 1115173.00
Contract liabilities 175030504.60 173609109.58
Financial assets sold for repurchase
13First Quarterly Report 2025 of Huadong Medicine Co. Ltd.
Deposits from customers and due from
banks
Receipts for buying and selling
securities as proxy
Receipts for underwriting securities as
proxy
Employee benefit payable 219912857.71 417133101.11
Taxes payable 669769811.98 645950867.22
Other payables 2957810000.79 2849833595.48
Including: Interests payable
Dividends payable 125024219.60 125024219.60
Handling fees and commissions
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
110782003.10330528920.89
year
Other current liabilities 20456908.65 19268728.25
Total current liabilities 14351327970.24 13794235373.01
Non-current liabilities:
Insurance policy reserve
Long-term borrowings 14642806.35 14262841.05
Bonds payable
Including: Preferred shares
Perpetual bond
Lease liabilities 89138466.89 71857938.46
Long-term payables 23479876.74 24715073.51
Long-term employee benefits payable
Estimated liabilities 28690397.55 28985982.19
Deferred income 180766396.92 183855718.48
Deferred income tax liabilities 196417169.62 197378528.33
Other non-current liabilities
Total non-current liabilities 533135114.07 521056082.02
Total liabilities 14884463084.31 14315291455.03
Owners’ equity:
Share capital 1754077048.00 1754262548.00
Other equity instruments
Including: Preferred shares
Perpetual bond
Capital reserves 2549212445.78 2550780602.69
Minus: treasury stock 42168791.67 46804116.67
Other comprehensive income 31446768.30 -50598204.17
Special reserves
Surplus reserves 1395568477.98 1395568477.98
General risk reserve
Undistributed profit 18371550574.23 17456842089.53
Total owners’ equity attributable to
24059686522.6223060051397.36
owners of the parent company
Minority interests 503010075.38 503703514.76
Total owner’s equity 24562696598.00 23563754912.12
Total liabilities & owners’ equity 39447159682.31 37879046367.15
Legal representative: Lv Liang Officer in charge of accounting: Lv Liang Head of the Accounting Department: Qiu Renbo
2. Consolidated income statement
Unit: yuan
14First Quarterly Report 2025 of Huadong Medicine Co. Ltd.
Item Amount in the current period Amount in previous period
I. Total operating revenue 10735787899.82 10410809128.72
Including: Operating revenue 10735787899.82 10410809128.72
Interests income
Premiums earned
Handling fees and
commissions received
II. Total operating cost 9620007130.43 9331357509.92
Including: Operating cost 7206598136.26 7076397110.06
Interest expenses
Handling fees and
commissions paid
Surrender value
Net payment of insurance
claims
Net appropriation of policy
reserve
Policy dividends paid
Reinsurance expenses
Taxes and surcharges 57265200.91 56334556.14
Sales expenses 1470753504.47 1574261928.29
Administrative expenses 355395350.66 335169160.39
R&D expenses 515376918.47 281639751.64
Financial expenses 14618019.66 7555003.40
Including: Interest expenses 25924507.30 23050131.41
Interests income 27812843.06 24409865.24
Add: Other income 73641636.88 38311729.18
Investment income (Losses are
-42624149.61-47163448.93
indicated by “-”)
Including: Investment gains
(losses) in associated enterprise and -28249462.69 -37504466.74
joint-venture enterprise
Gains on the
derecognition of financial assets
measured at amortized cost
Gains on exchange (Losses are
indicated by “-”)
Gains on net exposure hedging
(Losses are indicated by “-”)
Gains from changes in fair values
-25364.49
(Losses are indicated by “-”)
Credit impairment losses (Losses
are indicated by “-”)
Assets impairment losses (Losses
are indicated by “-”)
Asset disposal income (Losses
-14540990.321521275.31
are indicated by “-”)
III. Operating profit (Losses are
1132257266.341072095809.87
indicated by “-”)
Add: Non-operating revenue 769095.39 1295600.39
15First Quarterly Report 2025 of Huadong Medicine Co. Ltd.
Minus: Non-operating expenses 28075417.91 5202610.91
IV. Total profit (Total losses are indicated
1104950943.821068188799.35
by “-”)
Minus: Income tax expense 190966760.40 207943278.46
V. Net profit (Net losses are indicated by
913984183.42860245520.89
“-”)
(I) Classification by business
continuity
1. Net profit from continuing
operations (Net losses are indicated by 913984183.42 860245520.89
“-”)
2. Net profit at terminational
operation (Net losses are indicated by
“-”)
(II) Classification by attribution of
ownership
1. Net profit attributable to owners
914708484.70862411560.96
of the parent company
2. Profit or loss attributable to
-724301.28-2166040.07
minority shareholders
VI. Other comprehensive income (net of
82044972.4740589535.10
income tax)
Other comprehensive income
attributable to owners of the parent 82044972.47 40589535.10
company (net of tax)
(I) Other comprehensive income
that cannot be reclassified into
gains/losses
1. Changes in remeasurement on
the defined benefit plan
2. Other comprehensive income
that cannot be reclassified into
gains/losses under equity method
3. Changes in fair value of other
equity instrument investments
4. Changes in fair value of credit
risk of the enterprise
5. Others
(II) Other comprehensive income to
82044972.4740589535.10
be reclassified into gains/losses
1. Other comprehensive income
that can be reclassified into gains/losses
under equity method
2. Changes in fair value of other
debt investments
3. Amount of financial assets
reclassified into other comprehensive
income
4. Credit impairment reserve of
other debt investments
5. Cash flow hedging reserve
6. Exchange differences from
translation of foreign currency financial 82044972.47 40589535.10
statements
7. Others
Net amount after tax of other
comprehensive income attributable to
16First Quarterly Report 2025 of Huadong Medicine Co. Ltd.
minority shareholders
VII. Total comprehensive income 996029155.89 900835055.99
Total comprehensive income
attributable to owners of the parent 996753457.17 903001096.06
company
Total comprehensive income
-724301.28-2166040.07
attributable to minority shareholders
VIII. Earnings per share (EPS):
(I) Basic EPS 0.5224 0.4929
(II) Diluted EPS 0.5213 0.4928
As for business merger under the same control in the current period the net profit generated by the merged party before the merger
was 0.00 yuan and that generated during the previous period was 0.00 yuan.Legal representative: Lv Liang Officer in charge of accounting: Lv Liang Head of the Accounting Department: Qiu Renbo
3. Consolidated cash flow statement
Unit: yuan
Item Amount in the current period Amount in previous period
I. Cash flows from operating activities:
Cash received from the sale of goods
9882552619.729896088428.64
and the rendering of services
Net increase in customer deposits and
due from banks
Net increase in borrowing from the
central bank
Net increase in borrowing from other
financial institutions
Cash from the premium of the original
insurance policy
Net cash from reinsurance
Net increase in deposits and
investment of the insured
Cash from interests handling fees and
commissions
Net increase in borrowing from other
banks and other financial institutions
Net increase in funds for repurchase
Net cash received for buying and
selling securities as proxy
Receipts of tax refund 2055460.55 3909537.24
Other cash receipts in relation to
230013343.26179167865.43
operating activities
Subtotal of cash inflows from operating
10114621423.5310079165831.31
activities
Cash payments for goods purchased
7695820108.317688555061.58
and services received
Net increase in customer loans and
prepayments
Net increase in deposits of central
bank and due from banks
Cash payments for original insurance
claims
Net increase in lending funds to other
17First Quarterly Report 2025 of Huadong Medicine Co. Ltd.
banks and other financial institutions
Cash payments for interests handling
fees and commissions
Cash payments for policy dividends
Cash payments to and on behalf of
1441219423.871232560542.55
employees
Payments of various types of taxes 671816951.08 606028807.91
Other cash payments in relation to
1138493634.151036544085.40
operating activities
Subtotal of cash outflows for operating
10947350117.4110563688497.44
activities
Net cash flows from operating activities -832728693.88 -484522666.13
II. Cash flows from investing activities
Cash receipts from recovery of
1000000.00
investments
Cash receipts from investment income 43350000.00 2000000.00
Net cash receipts from disposal of
fixed assets intangible assets and other 9751907.00 2328201.94
long-term assets
Net cash from disposal of subsidiaries
and other business units
Other cash receipts in relation to
investing activities
Subtotal of cash inflows from investing
53101907.005328201.94
activities
Cash payments for purchase and
construction of fixed assets intangible 637322382.41 472272778.22
assets and other long-term assets
Cash payments for investment 61618925.00 65861678.42
Net increase in pledge loans
Net cash paid for acquisition of
17006187.32
subsidiaries and other business units
Other cash payments in relation to
157563682.87
investing activities
Subtotal of cash outflows for investing
698941307.41712704326.83
activities
Net cash flows from investing activities -645839400.41 -707376124.89
III. Cash flows from financing activities:
Cash receipts from absorbing
investments
Including: Cash receipts from
capital contributions from minority
owners of subsidiaries
Cash receipts from borrowing 1289998848.00 1510044486.23
Other cash receipts in relation to
146000000.0062459038.61
financing activities
Subtotal of cash inflows from financing
1435998848.001572503524.84
activities
Cash repayments of borrowings 1279708605.45 1202198901.63
Cash payments for distribution of
dividends or profits or settlement of 17579298.66 36432249.03
interest expenses
Including: Dividends and profits
paid by subsidiaries to minority
shareholders
Other cash payments in relation to 225549581.73 262376106.69
18First Quarterly Report 2025 of Huadong Medicine Co. Ltd.
financing activities
Subtotal of cash outflows for financing
1522837485.841501007257.35
activities
Net cash flows from financing activities -86838637.84 71496267.49
IV. Effect of foreign exchange rate
-3115685.5017392454.16
changes on cash and cash equivalents
V. Net increase in cash and cash
-1568522417.63-1103010069.37
equivalents
Add: Opening balance of cash and
4990151186.684208160010.91
cash equivalents
VI. Closing balance of cash and cash
3421628769.053105149941.54
equivalents
(II) Adjustments to financial statement items at the beginning of the year of the first
implementation of the new accounting standards implemented since 2025
□ Applicable □ N/A
(III) Audit report
Has the First Quarterly Report been audited
□Yes □ No
The Company’s First Quarterly Report has not been audited.Board of Directors of Huadong Medicine Co. Ltd.April 25 2025
19
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