Huadong Medicine Co. Ltd.2026 Semi-annual Report
August 27 2026
Section I Important Notes Contents and Definitions
The Board of Directors directors and senior manager of Huadong Medicine Co. Ltd.(hereinafter referred to as the "Company") hereby guarantee that the information
presented in this report is authentic accurate and complete and free of false records
misleading statements or material omissions and shall undertake individual and joint legal
liabilities.Lv Liang the Company's legal representative and the officer in charge of accounting
and Qiu Renbo head of accounting department (accounting manager) hereby declare that
the financial statements in this semi-annual report are authentic accurate and complete.All directors have attended the Board of Directors meeting to review this semi-annual
report.The future plans development strategies and other forward-looking statements in this
semi-annual report shall not be considered as a substantial commitment of the Company to
investors. Investors and related parties should be fully aware of the risks and understand
the differences between plans forecasts and commitments.The risks the Company faces in operation including industry policy and product price
reduction risk new drug R&D risk investment and M&A risk and exchange rate
fluctuation risk. For details please refer to "X. Risks faced by the Company and
countermeasures" in "Section III. Management's Discussion and Analysis" in the Report.Therefore investors are kindly reminded to pay attention to possible investment risks.The profit distribution plan deliberated and approved at the meeting of the Board of
Directors is as follows: On the basis of 1753736848.00 shares of the existing total share
capital of the Company a cash dividend of RMB 3.50 (tax inclusive) per 10 shares will be
distributed to all shareholders; a total of 0 bonus share (tax inclusive) will be issued; and no
capital reserves will be converted to increase the share capital. This 2026 semi-annual profit
distribution scheme falls within the scope authorized by the 2025 Annual Shareholders'
Meeting resolution to the Board of Directors and does not require further approval by the
Shareholders' Meeting.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.Table of Contents
Section I Important Notes Contents and Definitions... 2
Section II Company Profile and Key Financial Indic....9
Section III Management's Discussion and Analysis ... 13
Section IV Corporate Governance Environment and So...66
Section V Important Matters ........................ 78
Section VI Share Changes and Shareholders Informat..129
Section VII Information on Bonds .................. 140
Section VIII Financial Reports .................... 141
Contents of Reference File
(I) Financial accounting statements signed and stamped by the legal representative the officer in charge of accounting and the
head of Accounting Department (accounting manager).(II) The original of all Company's documents publicly disclosed in the press designated by CSRC during the reporting period and
the original of announcements.Definitions
Item refers to Definition
CSRC refers to China Securities Regulatory Commission
SZSE refers to Shenzhen Stock Exchange
Huadong Medicine/the Company/our Company refers to Huadong Medicine Co. Ltd.China Grand Enterprises refers to China Grand Enterprises Inc.Huadong Medicine Group refers to Hangzhou Huadong Medicine Group Co. Ltd.Zhongmei Huadong refers to Hangzhou Zhongmei Huadong Pharmaceutical Co. Ltd.Hangzhou Zhongmei Huadong Pharmaceutical
Jiangdong Company refers to
Jiangdong Co. Ltd.Jiangsu Joyang refers to Joyang Laboratories
Jiuyuan Gene refers to Hangzhou Jiuyuan Genetic Biopharmaceutical Co. Ltd.Doer Biologics refers to Zhejiang Doer Biologics Co. Ltd.Chongqing Peg-Bio refers to Chongqing Peg-Bio Biopharm Co. Ltd.Qyuns Therapeutics refers to Qyuns Therapeutics Co. Ltd.Nuoling Bio refers to Nuoling Biomedical Technology (Beijing) Co. Ltd.Meihua Hi-Tech/Anhui Meihua refers to Anhui Meihua Hi-Tech Pharmaceutical Co. Ltd.Wuhu Huaren refers to Wuhu Huaren Science and Technology Co. Ltd.Huida Biotech refers to Zhejiang Huida Biotech Co. Ltd.Hizyme Biotech refers to Hangzhou Hizyme Biotech Co. Ltd.Magic Health refers to Hubei Magic Health Technology Co. Ltd.CARsgen Therapeutics refers to CARsgen Therapeutics Holdings Limited
HDAnimal Health refers to HDAnimal Health (Jiangsu) Pharmaceutical Co. Ltd.Shengji Material refers to Zhejiang Shengji Material Technology Co. Ltd.IMPACT Therapeutics refers to Nanjing IMPACT Therapeutics Co. Ltd.Sinclair refers to Sinclair Pharma Limited
R2 refers to R2 TechnologiesInc.MediBeacon refers to MediBeacon Inc.ImmunoGen refers to ImmunoGenInc.RAPT refers to RAPT TherapeuticsInc.Kylane refers to Kylane Laboratoires SA
High Tech refers to High Technology Products S.L.U.Viora refers to Viora Ltd
Heidelberg Pharma refers to Heidelberg Pharma AG
Kiniksa refers to Kiniksa Pharmaceuticals (UK) Ltd.Arcutis refers to Arcutis Biotherapeutics Inc.ATGC refers to ATGC Co. Ltd.GMP refers to Good Manufacturing Practice
cGMP refers to Current Good Manufacturing Practice
GSP refers to Good Supply Practice
BE refers to Bioequivalence
CDE refers to Center for Drug Evaluation of National Medical
Products Administration
MAH refers to Marketing Authorization Holder
FDA refers to U.S. Food and Drug Administration
NMPA refers to National Medical Products Administration
IPO refers to Initial Public Offering
API refers to Active Pharmaceutical Ingredient
Drug Master File a confidential dossier prepared by the
holder on a precautionary basis which contains
comprehensive details about facilities manufacturing
processes and materials involved in the preparation
processing packaging and storage of one or more
DMF refers to
human drug products. The contents of a DMF may only
be referenced by the FDA during its review of IND
applications NDAs and ANDAs upon receipt of a
Letter of Authorization from either the DMF holder or
their legally authorized representative.NHSA refers to National Healthcare Security Administration
Key Opinion Leader individuals who possess extensive
and more accurate information regarding products. They
KOL refers to are recognized and trusted by a relevant community and
have significant influence over the purchasing decisions
of that group.NDA refers to New Drug Application
BLA refers to Biologics License Application
Abbreviated New Drug Application (i.e. Generic Drug
ANDA refers to
Application)
The EU's certification for products which indicates that
the products meet the requirements of relevant EU
directives. It also serves as evidence that the products
CE certification refers to have undergone the corresponding conformity
assessment procedures and that the manufacturer has
made a declaration of conformity. This certification
shows that the products can be sold in the EU market.MDR refers to Medical Devices Regulation (EU) 2017/745
International Council for Harmonisation of Technical
ICH refers to
Requirements for Pharmaceuticals for Human Use
IND refers to Investigational New Drug
PK/PD refers to Pharmacokinetics/pharmacodynamics
Chemistry Manufacturing and Control mainly such
pharmaceutical researches as manufacturing process
CMC refers to
impurity research quality research and stability
research during drug research and development.Contract Manufacturing Organization i.e. providing
such services as customized manufacturing of medical
CMO refers to
intermediates APIs and pharmaceutical preparations
entrusted by pharmaceutical companies.Contract Development and Manufacturing Organization
mainly including providing customized R&D and
production services for multinational pharmaceutical
companies and biotechnology companies such as
CDMO refers to
process R&D and preparation process optimization
scale-up manufacturing registration and verification
batches manufacturing and commercial manufacturing
of medicines especially innovative drugs.QA refers to Quality Assurance (department)
ADC refers to Antibody-Drug Conjugates
EBD refers to Energy-based device
license-in refers to Product license introduction
license-out refers to Product External License Authorization
BD refers to Business Development
EHS refers to Environment Health and Safety Management System
MRCT refers to Multi-regional Clinical studies
ESG refers to Environmental Social and Governance
Over The Counter i.e. medicines published by the
medical products administration under the State Council
OTC refers to and purchased and used by consumers at their discretion
without the prescription of practicing doctors or
assistant practicing doctors.PFS refers to Progression-free survival
DTP refers to Direct to Patient
Computer-Aided Drug Design a drug design method
CADD refers to
based on computer technology.Artificial Intelligence-Driven Drug Design a method
that applies Artificial Intelligence (AI) technology for
drug development. In AIDD AI algorithms are utilized
AIDD refers to
to analyze large-scale molecular structure data helping
to predict intermolecular interactions and their
therapeutic effects on diseases.GLP-1 refers to Glucagon-like Peptide-1
Drugs that can only be purchased and used with a
Prescription Drugs refers to
prescription issued by a physician
Real World Research/Study RWR/RWS which involves
collection of data related to patients in the real world
RWR/RWS refers to environment (real world data) and analysis to obtain the
use value of medical products and clinical evidence of
potential benefits or risks(real world evidence).National Reimbursement Drug List for Basic Medical
2025 Medicine Catalog refers to Insurance Work-related Injury Insurance and Maternity
Insurance (2025)
Reporting period refers to From January 1 2026 to June 30 2026
Section II Company Profile and Key Financial Indicators
I. Company profile
Stock name (abbreviation) Huadong Medicine Stock code 000963
Stock listed on Shenzhen Stock Exchange
Company name in Chinese Huadong Medicine Co. Ltd.Company name in Chinese
Huadong Medicine
(abbreviation if any)
Company name in English (if
HUADONG MEDICINE CO. LTD
any)
Company name in English
HUADONG MEDICINE
(abbreviation if any)
Legal representative of the
Lv Liang
Company
II. Contact persons and contact information
Secretary of the Board of Directors Securities affairs representative
Name Chen Bo Hu Shufen
New Office Building of Huadong New Office Building of Huadong
Medicine No. 858 Moganshan Road Medicine No. 858 Moganshan Road
Contact address
Gongshu District Hangzhou City Gongshu District Hangzhou City
Zhejiang Province Zhejiang Province
Tel. 0571-89903300 0571-89903300
Fax 0571-89903366 0571-89903366
Email address ir@eastchinapharm.com ir@eastchinapharm.com
III. Other information
1. Company contact information
Whether the Company's registered address office address and its postal code website or email address have changed during the
reporting period
□Applicable □Not applicable
Floors 4/7 No. 439 Zhongshan North Road Gongshu District
Registered address of the Company
Hangzhou City Zhejiang Province
Postal code of registered address 310006
New Office Building of Huadong Medicine No. 858
Office address of the Company Moganshan Road Gongshu District Hangzhou City Zhejiang
Province
Postal code of office address 310011
Company website www.huadongmedicine.com
Email address of the Company ir@eastchinapharm.com
Query date of the temporary announcement on the designated
August 18 2026
website (if applicable)
Query index of the temporary announcement on the designated
www.cninfo.com.cn
website (if applicable)
2. Information disclosure and storage location
Has the information disclosure and storage location changed during the reporting period
□Applicable□Not applicable
The stock exchange website and media names and URLs where the Company discloses its semi-annual reports as well as the
storage location of the semi-annual reports remained unchanged during the reporting period. For details please refer to the 2025
Annual Report.
3. Other relevant information
Has any other relevant information changed during the reporting period
□Applicable□Not applicable
IV Key accounting data and financial indicators
Whether the Company needs to perform a retroactive adjustment or restatement of previous accounting data
□Yes□No
Increase or decrease during
the current reporting period
Current reporting period Same period last year
compared with the same
period of last year
Operating revenue (RMB) 22066646185.69 21674928965.21 1.81%
Net profits attributable to
shareholders of the listed 1860757262.42 1814826860.86 2.53%
company (RMB)
Net profits attributable to
shareholders of the listed
company after deduction of 1857546440.75 1761734255.98 5.44%
non-recurring profit and loss
(RMB)
Net cash flow from operating
2499419530.63 2456848510.10 1.73%
activities (RMB)
Basic earnings per share
1.0610 1.0293 3.08%
(RMB/share)
Diluted earnings per share
1.0610 1.0346 2.55%
(RMB/share)
Weighted average return on
7.31% 7.62% -0.31%
equity
Increase or decrease at the
End of the current reporting end of the current reporting
End of the last year
period period compared with the end
of the last year
Total assets (RMB) 39975481755.81 39038036320.92 2.40%
Net assets attributable to
shareholders of the listed 25441362923.69 24811339992.99 2.54%
company (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 0.00
Paid perpetual bond interest (RMB) 0.00
Fully diluted earnings per share based on the latest share capital
1.0610
(RMB/share)
V. Differences in accounting data under domestic and foreign accounting standards
1. Differences in net profit and net assets disclosed in financial statements under international and
Chinese accounting standards
□Applicable□Not applicable
There are no differences in net profit and net assets disclosed in financial statements under international and Chinese accounting
standards during the reporting period.
2. Differences in net profit and net assets disclosed in financial statements under overseas and Chinese
accounting standards
□Applicable□Not applicable
There are no differences in net profit and net assets disclosed in financial statements under overseas and Chinese accounting
standards during the reporting period.VI. Items and amounts of non-recurring profit and loss
□Applicable □Not applicable
Unit: RMB
Item Amount Description
Profits/losses on disposal of non-current
assets (including the written-off part of
1424072.58
the accrued impairment provision of
assets)
Government grants included in the
current profits and losses (except those
that are closely related to the normal
business operation of the Company For details of government grants please
comply with national policies and 50634330.21 refer to XI of the Notes to these financial
regulations are enjoyed in accordance statements.with the defined criteria and have a
lasting impact on the Company's profits
and losses)
Profits and losses caused by fair value
changes in financial assets and financial
-2119166.93
liabilities held by non-financial
enterprises and profits and losses arising
from the disposal of financial assets and
liabilities excluding the effective
hedging business related to the normal
business operation of the Company
Other non-operating revenue and For details of non-operating expenses
expenses other than those mentioned -46881439.62 please refer to VII (74 75) of the Notes
above to this financial report
Less: Amount affected by income tax -2829609.80
Amount affected by minority
2676584.37
interests (after tax)
Total 3210821.67
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.Section III Management's Discussion and Analysis
I. Main business of the Company during the reporting period
(I) Main business of the Company
Founded in 1993 and headquartered in Hangzhou Zhejiang Province Huadong Medicine Co.Ltd. (stock code: 000963) was listed on Shenzhen Stock Exchange in December 1999. With its
businesses covering the entire pharmaceutical industry chain thanks to over 30 years of vigorous
development the Company has now fostered four major business segments of pharmaceutical
industry pharmaceutical distribution aesthetic medicine and industrial microbiology and has been
a large comprehensive listed pharmaceutical enterprise specialized in pharmaceutical R&D
production and marketing.The Company's pharmaceutical industry segment focuses on the R&D manufacturing and
sales of medicines for specialty care chronic diseases and special indications. Its core product
portfolio covers key therapeutic areas including chronic kidney disease immunology oncology
endocrinology digestive diseases and cardiovascular diseases. The Company also has multiple first-
line medicines with strong market positions in China giving it strong brand advantages and a
diversified multi-tiered product portfolio. Through in-house development external in-licensing and
project collaboration the Company puts its emphasis on innovative drug R&D efforts on three core
therapeutic areas: endocrinology autoimmunity and oncology. It has established a differentiated and
well-structured pipeline spanning the full R&D lifecycle with nearly 100 innovative drug
candidates in development. At present the Company's innovative drug R&D pipeline is gradually
translating into commercial products. Nearly 20 in-house-developed or externally introduced
products have been launched and commercialized while more than 10 additional products are
undergoing regulatory review. The contribution of innovative products to total revenue has
continued to increase. In addition the Company has set up a comprehensive pharmaceutical
manufacturing system with international capabilities. Multiple products have obtained regulatory
registrations and approvals in international markets. The Company is deeply integrated into the
global innovation ecosystem maintains R&D collaborations with multiple international innovative
pharmaceutical companies and has established strategic product partnerships in the Chinese market
with a number of multinational pharmaceutical companies.The Company's pharmaceutical distribution segment focuses on three core businesses:
pharmaceuticals medical device and herbal decoction pieces. Leveraging a specialized logistics
system with strengths in cold-chain products specialty drugs and vaccines together with the
synergies generated by its proprietary-brand e-commerce platforms the Company has developed
strong integrated omnichannel marketing capabilities. Its business scale and market share rank
among the industry leaders in Zhejiang Province giving it a solid competitive position. The
Company has ranked among China's top 10 pharmaceutical wholesalers for many consecutive years.The Company continues to strengthen its core market in Zhejiang Province with Hangzhou Jinhua
and Wenzhou serving as its three core supply chain hubs. It operates 13 regional warehouses with a
total warehousing area of more than 190000 m2 and has established an integrated multi-warehouse
smart logistics network covering Zhejiang Province. The pharmaceuticals business provides full
product-category and omnichannel coverage promoting coordinated development across in-hospital
and out-of-hospital channels and integrating distribution and agency operations. The medical device
business of the Company continues to expand beyond large-scale distribution into specialized
product agency and value-added supply chain services. The herbal decoction pieces business of the
Company covers the entire value chain from cultivation at production bases and the processing and
preparation of decoction pieces to smart decoction services and sales of proprietary-brand products
through end-user channels thereby creating a complete business loop from the field to clinical end
markets. The Company regards service innovation as a core driver of its development. By
integrating supplier collaboration specialized CSO services SPD-based (Supply Processing
Distribution-based) in-hospital supply chain operations and resources across industry academia
and research the Company provides customized comprehensive supply chain solutions to upstream
and downstream customers and partners steadily advancing toward its strategic goal of becoming a
trusted comprehensive pharmaceutical services provider.In the field of aesthetic medicine the Company adheres to the strategy of "global operational
layout and dual-circulation business development" with innovation as a core driver of its
development. With a global perspective and forward-looking strategic planning the Company has
developed a comprehensive and differentiated product portfolio. Both the number of products and
the breadth of fields covered rank among the industry leaders with more than 30 products launched
in China and overseas and nearly 20 globally innovative products in development. The Company
integrates multiple dimensions including "non-invasive + minimally invasive" technologies "facial
+ body" treatment areas and "injectables + energy-based device." Its injectable product portfolio
achieves full coverage across three major categories—regenerative products hyaluronic acid
products and botulinum toxin—while maintaining differentiated development pipelines. Through
innovation in source materials formulation technologies product categories and application
scenarios the Company has established strong competitive barriers and provides consumers seeking
aesthetic enhancement with precise personalized and highly effective one-stop aesthetic solutions.The Company is committed to becoming a leading global provider of comprehensive aesthetic
medicine solutions. The Company operates multiple R&D centers and manufacturing bases
worldwide. Its product portfolio includes injectable regenerative fillers botulinum toxin hyaluronic
acid chitosan ECM collagen and facial lifting threads. The Company is also conducting R&D and
expanding its energy-based aesthetic medical device business in global markets.The Company's industrial microbiology business focuses on two major areas: the application
of synthetic biology technologies and innovation and development in biopharmaceuticals. It has
strategically developed four core business segments: xRNA raw materials specialty APIs and
intermediates massive health products and biomaterials and animal health. Building on more than
40 years of accumulated technological expertise the Company has established an integrated R&D
cluster comprising three core platforms: a synthetic biology R&D platform an industrial
microbiology R&D platform and a synthetic chemistry R&D platform. The Company possesses
key technologies covering the entire microbial engineering value chain and has established an R&D
and manufacturing system spanning the full lifecycle of microbial medicines. It has also developed
interdisciplinary R&D platforms and a global network of industrialization resources. On the
industrialization front the Company operates seven major industrialization bases in a coordinated
manner including the Hangzhou Xiangfuqiao Base Qiantang New Area Jiangsu Jiuyang Hubei
Magic Health Anhui Meihua Wuhu Huaren and HD Animal Health. The Company has the largest
single fermentation workshop in Zhejiang Province and industry-leading intelligent production
systems. Its operations cover the entire process from strain screening and process development
through pilot-scale scale-up to large-scale commercial production creating a closed-loop
manufacturing ecosystem encompassing technology R&D engineering scale-up and quality control.Its fermentation capacity and process technology capabilities have consistently remained at the
forefront of the domestic industry.(II) Overview of company operations during the reporting period
In the first half of 2026 the international situation became increasingly turbulent with the
global economy undergoing deep differentiation amid complex geopolitical dynamics and
restructuring of the global trade landscape. Energy price fluctuations and recurring inflation
persisted while the global supply chain landscape continued to adjust. Global economic growth
momentum remained insufficient and the recovery continued to stay under pressure. Facing an
increasingly complex and challenging domestic and international environment China's economy
withstood the pressure and maintained steady growth. Macroeconomic policies continued to take
effect effectively addressing various external shocks and internal difficulties. China's GDP grew by
4.7% year on year("YoY") with economic performance remaining within a reasonable range
showing a development trend of new growth drivers and an improving economic structure. China's
pharmaceutical industry is also at a critical stage of structural transformation with regulatory
policies for pharmaceutical and medical device being frequently updated and the industry regulatory
system continuing to improve. The industry faces both opportunities and challenges. Enterprises
must seize the development opportunities arising from the international expansion of innovation
and the upgrading of consumer healthcare while also facing multiple pressures at the policy market
and compliance levels.In the first half of 2026 the Company centered its efforts on its overall strategic plan and
closely aligned them with its annual operating targets integrating risk management and response as
well as value creation throughout the entire business management process. The Company
comprehensively advanced the implementation of its "innovation-driven resource integration and
full-domain synergy" strategy building core competitive advantages through R&D innovation
optimizing its business layout through the integration of internal and external resources and
leveraging synergies across all business segments to enhance overall competitiveness. The
Company regarded the expansion of "new markets new products new organizational structures
and new capabilities" as the key to breaking through. For new markets the Company consolidates
its domestic business base while steadily advancing its international footprint. For new products it
focuses on key therapeutic areas and consumer medical segments accelerating pipeline project
progression and commercialization. In terms of new organization the Company continuously
optimizes its organizational structure and reengineers business processes to improve operational
efficiency. For new capabilities it strengthens the development of core competencies including
R&D compliance commercial operations and global business management. All employees of the
Company have united to overcome challenges delivered results under pressure balanced business
growth with compliance and risk control and fully ensured that core tasks in R&D
commercialization market expansion internal control and compliance are carried out in an orderly
manner as scheduled consolidating the fundamental business base.During the reporting period all business segments of the Company tapped into growth
opportunities with core businesses maintaining stable performance. R&D and innovation advanced
steadily and the innovative product pipeline continued to expand. Organizational efficiency kept
improving and operation management was continuously optimized driving overall operational
management to achieve higher quality and efficiency and the Company met its phased key business
targets.In the first half of 2026 the Company recorded an operating revenue of RMB 22.067 billion
representing a YoY increase of 1.81%. The net profit attributable to shareholders of the listed
company reached RMB 1.861 billion up 2.53% YoY. Net profit attributable to shareholders of the
listed company excluding non-recurring profit and loss stood at RMB 1.858 billion with a YoY
increase of 5.44%. The net cash flow generated from operating activities during the reporting period
was RMB 2.499 billion up 1.73% YoY. The operating cash inflow remained in good shape
demonstrating robust earnings quality and overall stable business performance of the Company.
1. Operation and development of the four major business segments of the Company
during the reporting period
(1) Pharmaceutical industry segment
During the reporting period the core subsidiary Zhongmei Huadong sustained a steady upward
business momentum with continuously improving operating quality. It recorded an operating
revenue of RMB 7.969 billion (including CSO business) representing a YoY increase of 8.92%.The net profit attributable to parent company reached RMB 1.74 billion up 10.12% YoY. The non-
recurring gains and losses excluded net profit attributable to parent company was RMB 1.725
billion with a YoY increase of 13.35% and the return on equity stood at 12.13%.Specifically in the second quarter it recorded an operating revenue of RMB 3.92 billion up
6.07% YoY. The net profit attributable to parent company reached RMB 809 million representing a
YoY increase of 9.76%. The non-recurring gains and losses excluded net profit attributable to parent
company was RMB 808 million with a YoY increase of 15.84%.Leveraging its leading R&D system and core technology platforms the Company has built a
diversified portfolio of innovative products. In the oncology field it boasts major products such as
Elahere (Mirvetuximab Soravtansine Injection) CAR-T product Zevor-cel (Zevorcabtagene
Autoleucel Injection) PARP inhibitor Paishuning (Senaparib Capsules) and Mairuidong
(Mifanertinib Maleate Tablets). In the endocrinology field it possesses core varieties such as
Nesina (Alogliptin Benzoate Tablets) Liluping (Liraglutide Injection) and Huiyoujing
(Ganagliflozin Proline Tablets). In the autoimmunity field it has deployed
Sailexin/Saijiening(Ustekinumab Injection/Ustekinumab Injection(Intravenous Infusion)). In the
gastroenterology field it launched Xinlian (linaprazan glurate Capsules). Meanwhile
MediBeacon TGFR the world's first bedside renal function precision monitoring and evaluation
product suitable for patients with normal or impaired renal function has officially entered the
commercialization promotion stage creating a differentiated and innovative competition barrier.During the reporting period previously approved innovative products entered a phase of
scaled-up commercial sales while newly commercialized products provided additional revenue
contributions driving the rapid expansion of the innovative product business. Total revenue from
sales and agency services amounted to RMB 1.684 billion representing a YoY increase of 52% and
accounting for 21.14% of the operating revenue of the pharmaceutical industry segment (including
CSO business). The innovative business has become the core engine driving growth in the
pharmaceutical industry segment.Since its launch the CAR-T therapy Zevorcabtagene Autoleucel Injection (trade name: Zevor-
cel) has demonstrated strong market expansion momentum with its clinical safety and efficacy
receiving positive evaluations. In the first half of 2026 medical institutions that had completed the
certification and filing procedures for Zevor-cel covered more than 20 provinces and municipalities
nationwide. During this period the Company placed 110 valid orders with its partner CARsgen
Therapeutics. At the same time the Company continued to strengthen its product access system and
accelerate efforts to establish mechanisms to ensure patients' access to treatment. The product has
now been successfully included in the Commercial Health Insurance Innovative Drug List. As of
the date of the Report more than 100 Huiminbao programs (a city-specific supplemental medical
insurance program) and various commercial health insurance products across the country have
included Zevor-cel in their reimbursement coverage effectively reducing patients' treatment costs
and enhancing the accessibility and inclusiveness of high-end innovative therapies. Looking ahead
as the Company's nationwide medical channel network continues to improve coverage of
Huiminbao programs and commercial health insurance continues to expand across regions and
access policies are progressively implemented the market penetration and industry influence of
Zevor-cel are expected to increase further and the product is expected to maintain its growth
momentum.Following its inclusion in the updated National Reimbursement Drug List (NRDL)
Huiyoujing (Ganagliflozin Proline Tablets) the Category 1 innovative drug intended for diabetes
has seen the pharmaceutical service promotion team of Zhongmei Huadong make active efforts for
hospital access. It is now listed in more than 2400 tiered hospitals laying a solid foundation for
subsequent rapid market growth. Additionally multiple national and regional large-scale clinical
trials have been conducted including real world studies (RWS) and various clinical studies on
complication/comorbidity in patients with type 2 diabetes mellitus (T2DM). In product promotion
effective synergy has been achieved by sharing resources with Metformin Hydrochloride and
Empagliflozin Tablets (Enshuangping) consolidating the Corporation's core competitiveness in the
SGLT-2 inhibitor segment for diabetes. The YoY growth rate of sales revenue in the 2026 half-year
period exceeded 900% (the first quarter of 2025 was the first sales quarter after the product was
included in the National Reimbursement Drug List).Elahere (Mirvetuximab Soravtansine Injection) recognized as the world's first and currently
the sole FRα-targeted Antibody-Drug Conjugate (ADC) drug approved for the treatment of
platinum-resistant ovarian cancer was officially launched for commercial sale in China in
November 2025. The Company is diligently and expeditiously advancing its market access
endeavors. By the end of the first half of this year Elahere has completed the network listing in 31
provinces with over 300 hospitals that have issued prescriptions covering more than 400 medical
institutions and over 200 DTP pharmacies. Currently Elahere has also been successfully
incorporated in multiple Huiminbao programs (city-specific supplemental medical insurance
programs) and commercial insurance programs such as Beijing Inclusive Medical Insurance
Program Shanghai Hu Hui Bao Insurance Jiangxi Ganhuibao Leshan Huijiabao and Shaanxi
Universal Health Insurance. Since its official domestic commercial launch in the Q4 of 2025
Elahere recorded sales of approximately RMB 90.49 million in the first half of 2026.Senaparib Capsules (Paishuning) a novel PARP inhibitor exclusively promoted by the
Company in Chinese mainland was approved for market launch in January 2025 and was
successfully included in the National Reimbursement Drug List for Basic Medical Insurance Work-
related Injury Insurance and Maternity Insurance in December 2025 indicated for first-line
maintenance treatment of ovarian cancer (OC). As of June 30 2026 Senaparib Capsules had been
launched in all provinces across Chinese mainland secured access to more than 380 specialty and
community pharmacies and reached nearly 1200 medical institutions. Following its inclusion in
the National Reimbursement Drug List the product's sales volume continued to increase and its
sales revenue in the first half of 2026 increased significantly compared with the same period in
2025.
In May 2026 the Marketing Authorization Application (MAA) and supplemental application
for Sailexin/Saijiening for Crohn's disease (CD) were approved. Since its launch
Sailexin/Saijiening has continued to demonstrate strong market performance. The pharmaceutical
services team has deeply explored the product's outstanding advantages in terms of ease of use
drug safety and accessibility under medical insurance reimbursement. By leveraging shared
resources and close collaboration with the Corporation's existing autoimmune product line it has
established effective synergies. To date over 2000 hospitals have prescribed the product with
market sales gradually increasing. Through initiatives such as soliciting outstanding case studies
launching public welfare science popularization projects organizing multi-level and multi-
dimensional online and offline academic seminars and conducting nationwide multi-center real-
world studies (RWS) the Company has expanded the product influence and optimized the concept
of clinical medication. Sailexin/Saijiening is expected to become a new core product in the
Corporation's autoimmune disease field. The domestic sales revenue (including value-added tax) of
Sailexin/Saijiening in the first half of 2026 exceeded RMB 300 million surpassing the full-year
figure for 2025 and representing a YoY increase of more than 100%.The transcutaneous glomerular filtration rate measurement system (TGFR System) is the
world's first innovative drug-device combination product for real-time point-of-care assessment of
renal function. It consists of the first-in-class innovative drug Relmapirazin Injection (MB-102)
and the supporting transcutaneous glomerular filtration rate (TGFR) measurement equipment and
has been approved for marketing in China as a complete drug-device combination. During the
reporting period the Company actively expanded its medical device sales and promotion team and
advanced the market access and commercialization of MediBeacon TGFR in China. In June 2026
Relmapirazin (MB-102) as a fluorescent tracer was included for the first time in the Chinese
Clinical Practice Guideline for Screening Diagnosis and Treatment of Chronic Kidney Disease
(2026 Edition). Among the mGFR (measured glomerular filtration rate) testing methods specified in
the guideline it is the only technology system that uses a non-invasive testing method and enables
point-of-care monitoring providing a new option for precise clinical assessment of renal function.In July 2026 Relmapirazin Injection and the TGFR technology were included in the Expert
Consensus on Assessment and Diagnosis of Acute Kidney Injury in Elderly Patients with
Comorbidities in China. To date consumables of MediBeacon TGFR have been listed in 25
provinces while Relmapirazin Injection has been listed in 29 provinces.In the field of gastrointestinal drugs the Class 1.1 innovative drug Linaprazan Glurate
Capsules (Xinlian) for which the Company holds exclusive commercialization rights is a new-
generation potassium-competitive acid blocker (P-CAB). It has been approved for the treatment of
reflux esophagitis while Phase III clinical trials in China for the indications of "duodenal ulcer" and
"treatment of Helicobacter pylori infection in combination with antibiotics" are also underway.Linaprazan Glurate Capsules were successfully included in the National Reimbursement Drug List
for Basic Medical Insurance Work-related Injury Insurance and Maternity Insurance (2025) in
December 2025 and has been included in the "New and High-Quality Drugs and Devices" Product
Catalogue of Shanghai's biomedical industry. During the reporting period the Company continued
to advance the market access of Xinlian to improve access to clinical treatment. It also conducted
patient education and provided educational resources on medication use to help patients develop a
sound understanding of medication use and use medicines in a standardized and rational manner. By
the end of the reporting period Xinlian had covered 25 provinces and municipalities across China
and more than 900 hospitals of various grades with sales volume growing rapidly.The Company's innovation-driven transformation strategy continues to be implemented and
deepened and the Company has entered a critical stage in which pipeline achievements are being
realized on a larger scale and commercial value is being unlocked at an accelerating pace. The
innovative product portfolio continues to expand and diversify the clinical value of innovative
products continues to be validated and the Company's commercialization capabilities continue to
strengthen and mature laying a solid foundation for high-quality growth in the Company's medium-
and long-term performance.During the reporting period the General Pharmaceutical Service Subsidiary of Zhongmei
Huadong adhered to the core philosophy of "Innovation Professionalism Service" adopted
"solving problems and creating value" as the guiding principles for management assessment and
continuously adapted its operations to changes in the pharmaceutical industry's policy and market
environment. The Company continued to upgrade and enhance its digital systems for
pharmaceutical services and marketing fully enhancing its capabilities in product academic
promotion and patient services and achieved solid results in business model transformation and
efficiency improvement. By focusing deeply on targeted therapeutic segments continuously
extending channel coverage into lower-tier and grassroots markets and implementing refined and
differentiated promotional strategies the Company continuously enhanced the market penetration
of its core competitive products expanded coverage of medical institutions at all levels and
consolidated and strengthened its competitive position in key areas.At the market strategy level the Company continued to improve its comprehensive omni-
channel strategy driving coordinated growth across multiple markets including in-hospital out-of-
hospital grassroots and retail markets. In the in-hospital market the Company strengthened its core
business base by leveraging the solid clinical value of its products and professional academic
services. On the one hand it fully tapped the growth potential of mature key products; on the other
hand it strengthened its academic marketing system accelerating hospital access clinical education
and prescription conversion for innovative products. Leveraging its increasingly diversified
innovative product portfolio the Company is able to provide more individualized and standardized
comprehensive treatment solutions for patients with different disease courses and characteristics. In
the out-of-hospital and primary healthcare markets the Company closely aligned with policy
priorities concerning tiered diagnosis and treatment and the strengthening of grassroots healthcare
capacity continued to strengthen and expand its network of partnerships for grassroots healthcare
services and deepened its reach across community county-level and township medical institutions.Through diversified academic education and public outreach initiatives and commercial cooperation
the Company continued to enhance market awareness of innovative drugs and improve patient
access to medicines. In the retail market the Company continued to strengthen its multi-channel
presence across online platforms OTC markets and DTP specialty pharmacies. In the online
segment it worked with mainstream e-commerce platforms to optimize the entire medication
purchasing process providing patient education and awareness initiatives targeted access to
pharmaceuticals information and convenient medication purchasing services. In the OTC segment
it strengthened brand building integrated media communications and retail sell-through initiatives
and continuously increased its market share at the retail level. Meanwhile the Company continued
to refine its regional market management mechanisms and KA management system remained
guided by medical expertise and driven by academic promotion and strengthened the market
competitiveness of its products. The Company maintains continuous collaboration with scientific
research institutes colleges and universities at home and abroad and advances post-marketing real-
world studies and evidence-based medicine exploration for new indications around its core products
to accumulate more clinical evidence and support further expansion of the product's clinical
application scenarios. At the organizational level the Company continues to deepen organizational
transformation and process optimization adheres to the parallel approach of in-house talent
cultivation and high-end external talent recruitment and consistently builds a talent echelon of
pharmaceutical services that is youthful specialized and highly execution-oriented so as to provide
solid organizational and talent support for the sustained commercialization of innovative products.During the reporting period the Company's R&D investment in the pharmaceutical industry
segment (excluding equity investment) amounted to RMB 1.208 billion representing a YoY
decrease of 18.58% among which the direct R&D expenditure reached RMB 1.062 billion down
9.56% YoY accounting for 13.30% of the revenue from the pharmaceutical industrial segment. The
Company's innovative drug R&D center is advancing the development of 96 innovative drugs
pipeline programs with multiple positive results achieved in the first half of 2026. For details
please refer to the "(III) R&D situation" section below.
(2) Pharmaceutical distribution segment
In the first half of 2026 affected by multiple external factors including continuously tightened
medical insurance cost control and pressure on terminal medical consumption the pharmaceutical
distribution industry has entered a transformation cycle focused on quality and efficiency
improvement and the profitability pressure of the traditional distribution model has intensified.Against this backdrop the Company's pharmaceutical distribution segment adheres to the dual-track
advancement of in-hospital and out-of-hospital businesses giving consideration to both business
scale expansion and internal operational efficiency improvement. Through proactive business
structure adjustment and internal mechanism innovation the segment effectively hedges the
operational pressure brought by the external environment and achieves overall stable performance.During the reporting period the pharmaceutical distribution segment recorded an operating revenue
of RMB 14.182 billion representing a YoY increase of 1.68% and a net profit of RMB 233 million
up 3.02% YoY.During the reporting period the segment closely followed the kick-off theme of the Company's
8th "Three-Year Plan" — "Innovation and Breakthrough" and focused on the three core priorities
of "preserving existing business driving incremental growth and improving labor efficiency" to
accelerate the transformation from scale-driven growth to value creation. By delivering integrated
comprehensive services covering market access government affairs channels sales and supply
chain to upstream industrial clients the Company deepens industrial collaboration and jointly builds
an industrial value ecosystem. On the premise of stabilizing the fundamental business base the
segment actively explores new businesses new markets and new models so as to consolidate the
business foundation for the Company's strategic goal of becoming a "comprehensive
pharmaceutical services provider".The segment consolidates its performance base with professional supply chain and
pharmaceutical service capabilities. In the in-hospital segment it deepened strategic cooperation
with tertiary hospitals delivered optimized pharmaceutical management and refined supply chain
solutions to consolidate existing distribution shares; it also continuously expanded coverage to
secondary hospitals and primary medical markets optimized staffing and product mix and filled
the business gaps in primary markets. In the out-of-hospital segment it accelerated business
deployment. The self-operated retail business of the Company adhered to the principle of quality
priority. The Company focused on developing hospital-affiliated stores and DTP pharmacies
strengthened project access review and store operation control and built a benchmark for
professional pharmaceutical services. New subsidiaries dedicated to pharmaceuticals and
international trade were established focusing on out-of-hospital market and non-pharmaceutical
business expansion respectively to further expand the national distribution scale and enrich the
supply of non-pharmaceutical categories. In terms of operation management the Company focused
on key operational indicators such as inventory turnover and accounts receivable control improved
the performance appraisal system for personnel efficiency and departmental operational efficiency
and drove the transformation of traditional distribution business toward lean and efficient operations.Breaking through the framework of traditional pharmaceutical distribution business the
Company vigorously promoted business model innovation and actively cultivated the second
growth curve. The product agency business focused on three major directions: specialty chemical
pharmaceutical blood product and innovative medical device. Based in Zhejiang and radiating to
other provinces the Company strives to build a leading regional CSO service brand. The third-party
logistics business took high-barrier segments such as cold chain specialty drugs and
radiopharmaceuticals as the breakthrough points continuously upgraded software and hardware
capabilities and built a nationwide professional delivery network. Meanwhile by linking internal
segment resources such as aesthetic medicine and industrial microbiology the Company actively
entered emerging tracks such as medical aesthetics and animal health. Relying on the national
distribution business of key products including recombinant botulinum toxin the Company built a
cross-regional organizational structure commercialization model and academic promotion system
and substantially advanced the development strategy of "going beyond Zhejiang Province".The Company aligned business iteration and upgrading with organizational transformation
completed the integration of medical device business established a medical device business unit
and set up specialized subsidiaries targeting the out-of-hospital and non-pharmaceutical markets.It accelerated the iteration and upgrading of information systems promoted integrated intelligent
management and control across business material flow retail and operations. It continuously
upgraded the national supply chain system strengthened cross-regional cold chain delivery
capabilities and provided solid support for business expansion outside Zhejiang. The human
resources and financial systems deepened group-wide management and control around the goals
of "improving personnel efficiency reducing costs and controlling expenses" optimized the
resource allocation structure and escorted the high-quality and sustainable growth of the segment.
(3) Aesthetic medicine segment
In the first half of 2026 the global macroeconomic environment presented a complex and
volatile operating landscape while the domestic pharmaceutical health and aesthetic medicine
consumer industries as a whole entered a stage of in-depth structural adjustment. Multiple pressures
continue to superimpose on the domestic aesthetic medicine industry: the recovery pace of terminal
consumption remains slow industry regulation continues to tighten and compliance standards keep
escalating. Meanwhile the supply of injectable medical aesthetics products continues to expand
leading to normalized price-driven cutthroat competition. The overseas market on the other hand is
disturbed by multiple factors such as weak household consumption willingness geopolitical
fluctuations and exchange rate volatility resulting in overall pressured operating environment.During the reporting period the Company's aesthetic medicine segment (excluding inter-
segment elimination) recorded a total operating revenue of RMB 651 million representing a YoY
decrease of 41.43%. Specifically the domestic aesthetic medicine business revenue reached RMB
345 million down 52.46% YoY; the overseas aesthetic medicine business revenue hit RMB 332
million representing a YoY decrease of 36.59%. The Company believes that the current phased
performance fluctuation of its aesthetic medicine business is not only an objective reflection of the
industry as a whole entering an in-depth adjustment cycle but also an inevitable stage for the
Company to proactively promote strategic adjustment and upgrading restructure the growth logic
of the segment and accumulate momentum for recovery. It falls under the category of phased
growing pains in the process of enterprise value reconstruction and capability iteration.Facing the phased operational challenges the Company adhered to the development goal of
becoming a globally leading aesthetic medicine enterprise upheld long-termism deeply focused on
innovation and continuously promoted the optimization and integration of business systems at
home and abroad.Overseas market: In the first half of 2026 the overall organizational structure adjustment of
the overseas aesthetic medicine business was completed. By integrating the functional teams of
subsidiaries under Sinclair streamlining business links implementing flat management
empowering overseas businesses with domestic R&D quality and supply chain capabilities the
Company optimized the global channel layout deeply cultivated core European markets expanded
emerging regions accelerated the overseas registration and commercialization of innovative
products and consolidated the foundation of global operation.Domestic market: The Company carried out the reform of organizational and marketing
systems to realize multi-category synergy across injectable fillers botulinum toxin and energy-
based device. It optimized the channel structure continuously promoted the dual-channel
construction of public hospitals and private institutions scaled up academic education for
physicians and standardized clinical promotion and drove the transformation of the business from
extensive expansion to high-quality operation.In terms of product pipelines a number of heavyweight new products were approved for
marketing during the reporting period achieving full coverage of core tracks including regenerative
fillers botulinum toxin hyaluronic acid filler and energy-based device. Domestically Retoxin the
world's first Recombinant Botulinum Toxin Type A containing only 150KD core protein Ellansé
M the first imported regenerative material in China approved for the temporal region (temple)
indication and the multi-functional skin therapy device V30 were successively approved for
marketing. As of the end of June 2026 Retoxin has established cooperation with more than 1600
hospitals. The Company's Ellansé series — Zhenyan Jinyan and Zhizhen have entered nearly
500 aesthetic medicine institutions and customized new product development has been carried out
with strategic partners. MaiLi Extreme (MaiLi Extreme Shuoying) originating from
Switzerland and equipped with the first-in-class OxiFree (oxygen-free) crosslinking technology
has entered over 100 institutions across the country with continuously improving market
recognition. The number of cooperative institutions for energy-based devices including Glacial Spa
Reaction and Renotion has steadily climbed to more than 500 and Glacialspa Glacial Spa
exceeded its semi-annual target.In terms of academic promotion Sinclair carried out 311 offline medical trainings in the first
half of the year covering more than 4000 physician visits. The online physician platform recorded
over 180000 views and a total of 42 academic papers covering all products have been published.The construction of public hospital channels continues to advance. The classic version of Ellansé
has successfully entered key public hospitals nationwide. MaiLi Extreme completed network
listing and price adjustment in 23 provinces and carried out more than 20 public hospital physician
trainings covering nearly 500 physician attendances.Important progress has also been made in the Company's overseas aesthetic medicine pipelines.Kytogen Defend the non-animal-derived chitosan product obtained the EU MDR CE certification
in August 2026 further enriching the injectable product matrix. Meanwhile the in-development
pipelines are advancing steadily with continuous layout in next-generation regenerative materials
skin repair energy-based device and other directions to guarantee the supply of medium and long-
term product iteration. The Company insists on returning to the essence of medical treatment
continuously enhances the professional influence on B-end institutions and C-end brand awareness
and builds a brand image of "innovation professionalism and trustworthiness".Overall the compliant and standardized development trend of the aesthetic medicine industry
continues to deepen the underlying logic for the long-term growth of the industry remains robust
and the dual demands of consumers for safe compliant innovative and efficient aesthetic medicine
products and services are still the core driving force for the development of the industry. Relying on
the global R&D pipeline layout the mature integrated commercial platform at home and abroad
and the commercialization capabilities built through years of deep cultivation in the industry the
Company is fully confident in the medium and long-term development prospects of its aesthetic
medicine business. In the next stage the Company will continue to focus on three core directions:
first accelerate the iteration and upgrading of product pipelines to enrich the differentiated product
matrix; second deepen the optimization of channel structure to improve the quality and efficiency
of terminal coverage; third strengthen the refined management of internal operations to release
organizational effectiveness.Looking ahead with the accelerated clearance of inefficient production capacity in the industry
the steady recovery of consumer market confidence and the gradual completion of market
cultivation and release of sales momentum for a number of its own heavyweight new products the
Company's aesthetic medicine segment is expected to smoothly step out of the adjustment cycle and
achieve high-quality restorative growth.During the reporting period the Company also continued to advance the overseas registration
of its aesthetic medicine portfolio while actively implementing the registration and implementation
of multiple core products in China. For information on the registration progress of the Company's
key aesthetic medicine products at home and abroad please refer to the subsections "(10)
Registration and launching progress of domestic aesthetic medicine product" and "(11) Registration
and launching progress of overseas aesthetic medicine product" under "(III) R&D situation" below
in this section.Figure: Key Aesthetic Medicine Products Launched by Huadong Medicine
(4) Industrial microbiology business
In the first half of 2026 the global innovative drug industry chain continues to recover. The
pipelines of cutting-edge therapies such as ADCs nucleic acid drugs and polypeptide keep
expanding driving increased demand for high-value upstream APIs intermediates and CDMO
services. Meanwhile the synthetic biology industry has received strong policy support and the
overseas market demand for high-quality stably supplied biomanufacturing raw materials continues
to be released. However the industry also faces challenges including intensified global market
competition stricter overseas registration and compliance standards and heightened price
competition in some product categories. Against this industry backdrop the Company's industrial
microbiology segment firmly implements its established development strategy continuously
consolidates its four major business layouts covering xRNA raw materials specialty APIs &
intermediates massive health products & biomaterials and animal health. The Company
strengthens technological innovation iteration and global market expansion and takes accelerating
international layout and deeply integrating into the global pharmaceutical supply chain as its core
work objective at the current stage. It has achieved phased results in developing key customers at
home and abroad. All business units delivered improving performance during the reporting period
achieving growth against market trends. Total sales revenue reached RMB 437 million representing
a YoY increase of 18.64%. Of which the xRNA segment recorded a growth of over 50%. API and
intermediate segment grew by 10% among which the polypeptide API business increased by more
than 50%. Massive health and biomaterials segment posted a growth of over 25% the animal health
segment grew by 25% and overseas business sales increased by 33%. Major accomplishments
across all fields are as follows:
Specialty API & intermediate segment (ADC payloads + polypeptide):
International market development is the core strategic task of this segment at the current stage.As a business segment that integrates the traditional API business and innovative business for
coordinated development the Company has completed the layout of ADC toxin product series and
all mainstream toxin varieties have obtained US DMF filings. In 2026 the Company will continue
to promote DMF filing for more new molecular products. Multiple CDMO cooperation contracts
for ADC toxins have been executed enabling the Company to provide global partners with
integrated small-molecule development services from early-stage research through clinical stages
as well as supporting services for regulatory submission. Stable bulk supply of linker-toxin products
for both clinical and commercial use has been achieved. The Company has finalized its global
market strategic planning for polypeptide business. It is accelerating its international market
expansion actively advancing overseas licensing for finished preparations and building an
internationalized API supply system. Both polypeptide preparations and API businesses are
expected to achieve scaled commercial sales over the next two years. The Company continues to
regard strengthening international registration and market access as a critical pillar of its
internationalization strategy steadily builds the product pipeline of biopharmaceuticals in the global
metabolism field and continuously enhances its participation in the global high-end HPAPI (High
Potency Active Pharmaceutical Ingredient)supply chain.xRNA segment: Leveraging the Wuhu Huaren production base the xRNA segment has built a
complete R&D and production system for upstream raw materials of oligonucleotide drugs and in
vitro diagnostic raw materials serving domestic and overseas innovative pharmaceutical enterprises
CDMOs and in vitro diagnostic manufacturers with differentiated technological capabilities and
efficient delivery capabilities. The Company continues to increase R&D investment by focusing on
three core directions: raw materials for nucleic acid drug (phosphoramidite monomers) delivery
systems (GalNAc) and specially modified custom monomers. This segment has obtained ISO9001
ISO14001 and ISO45001 system certifications. The entire production process strictly complies with
ICH international standards and GMP quality specifications. A total of 12 US DMF filings have
been completed and the Company has established cooperative relationships with many
multinational pharmaceutical enterprises achieving rapid business growth during the reporting
period.Massive health & biomaterials segment: This segment focuses on three core business
directions: functional food raw materials personal care raw materials and biomaterials. In the first
half of 2026 Magic Health focused on the R&D and iteration of products such as VK2(Vitamin K2)
PQQ(Pyrroloquinoline quinone) PS(Phosphatidylserine) and nattokinase around the tracks of bone
health brain health and anti-aging and achieved rapid growth in the international market. All food-
related quality systems including ISO9001 KOSHER GMP and FSSC22000 have been kept in
effective operation. In July it passed the on-site audit of Food and Drug Administration (FDA) with
zero defects and the overseas compliance capability of its products has been authoritatively verified.Major breakthroughs have also been made in international market customer development and new
application scenario expansion. The Company has successfully realized supply cooperation with
many leading international health product customers in the United States. Shengji Material
centered on its proprietary and controllable biodegradable materials has built a matrix of high-end
medical functional materials. It has carried out CMC R&D and project incubation for biomedicine
and aesthetic medicine by leveraging its pharmaceutical preparation technology platform. Two
GMP-compliant manufacturing facilities for biodegradable materials and microspheres have been
completed and put into operation. The Company actively cooperates with overseas universities
domestic and overseas pharmaceutical and aesthetic medicine enterprises in R&D collaborations
covering material supply and complex injectable formulation development and continuously builds
a global innovation-driven industrial chain.Animal health segment: Continue to strengthen its technological edge and accelerate the
commercialization of products. Guided by market demand orientation the Company focuses on
differentiated innovation tracks steadily advances R&D and commercial layouts for products in
perioperative period chronic disease management deworming and other areas. The R&D pipeline
continues to expand building momentum for long-term sustainable growth. In the first half of the
year the Company was among the first to obtain the new veterinary drug registration certificate for
Pregabalin Oral Solution further consolidating its competitive edge in the pet analgesia and
sedation track. Another 7 products are under registration review including 2 Class I new veterinary
drug APIs and their injections. On the marketing front the Company continues to build professional
brand moats. The core driver of business growth relies on Baoshining China's first opiate
analgesic new drug for pets. Through collaboration with top-tier chain hospitals industry KOLs
and building benchmark hospitals in key cities the products have deeply covered diverse clinical
scenarios of perioperative care and pain management driving the Company's offline business to
record a YoY growth of over 50%. The new product Pregabalin has quickly completed channel
deployment in key hospitals across the country fully demonstrating the Company's channel reuse
capability. On the consumer front the Company has completed omni-channel layout on mainstream
e-commerce platforms including Tmall Douyin and Pinduoduo focusing on core categories of
deworming and nutritional supplements. Adhering to the business strategy of "empowering
consumer brand penetration with professional medical endorsement" the Company promotes the
coordinated development of online and offline businesses continuously strengthens its
comprehensive competitiveness and brand influence and adapts to the development trend of
China's pet pharmaceutical industry transforming towards compliance and professionalism.
2. BD collaboration of the Company during the reporting period
On January 5 2026 Hangzhou Zhongmei Huadong Pharmaceutical Co. Ltd. the wholly-
owned subsidiary of the Company announced the signing of a strategic cooperation agreement with
MC2 Therapeutics Ltd. (hereinafter referred to as "MC2") the wholly-owned subsidiary of MC2
Therapeutics A/S. Under the agreement Huadong Medicine will obtain the exclusive
commercialization rights for MC2 dermatological skincare creams Biomee#1 and Biomee#2 in
Greater China (including Chinese mainland Hong Kong SAR Macau SAR and Taiwan region).These two products powered by MC2 innovative PAD Technology are designed to address dry
skin and discomfort while providing daily skincare and comfort. Huadong Medicine will be
responsible for the registration and commercialization of Biomee#1 and Biomee#2 in Greater
China. MC2 will be responsible for manufacturing and supply.
3. ESG of the Company during the reporting period
With regard to ESG the Company maintained an unwavering commitment to sustainable
development. A Sustainability (ESG) Committee has been established under the Board of Directors
to oversee ESG-related matters. The Company integrates the core ESG principles into corporate
development strategy and daily operations management guiding and innovating business practices
with a science-based approach to social responsibility. It upholds the idea of green manufacturing
actively supports China's "carbon neutrality and carbon peaking" goals operates in strict
compliance with laws and regulations with integrity and actively fulfills its social responsibilities.As of the release date of the Report the Company has received an AAA ESG rating from the SZSE
CNI rating system an AAA rating from RatingDock an A ESG rating from WIND an A ESG rating
from CNI rating system and an A ESG rating from Huazheng. The Company has also received
honors including the "ESG Best Practice Company" award presented by New Fortune magazine in
2025.
4. Awards during the reporting period
During the reporting period the Company's comprehensive competitive strength efficient
operation and governance and value creation capabilities gained significant market recognition as
evidenced by a number of prestigious awards and honors. The Company has been included in the
Fortune China 500 for 17 consecutive years. It has been ranked on the List of Global Top 50
Pharmaceutical Companies of Pharmaceutical Executive (US) for the second time. The Company
also received such honors as the "Best Listed Company" award from New Fortune in 2025 and a
place in the first tier of the "2026 Top 100 Innovative Pharmaceutical Enterprises in China" by E-
Pharm Manager. In terms of investor relations management the Company won the "Investor
Relations Management Award" at the 17th Tianma Awards presented by Securities Times and the
"Best Investor Relations Award" in Tonghuashun's 2025 Annual Ranking of Listed Companies.(III) R&D
1. Key progress in innovation and R&D
During the reporting period the Company adhered to the "Scientific Research-based and
Patient-centered" corporate philosophy strengthened its focus on therapeutic areas such as
endocrinology autoimmunity and oncology continued to increase its R&D investment expanded
its innovative drug R&D pipeline enhanced its innovative R&D ecosystem and technology
platforms actively advanced clinical trials and accelerated the market launch of new products.Meanwhile the Company conducted dynamic R&D assessments on an ongoing basis to improve
the quality and competitiveness of its R&D pipeline. As of the date of the Report the Company's
innovative drug R&D center is advancing 96 innovative drug pipeline projects. Since its
establishment 6 years ago the Innovative Drug R&D Center has obtained marketing authorization
for 12 innovative products in total. During the reporting period the NDA for Sailexin/Saijiening
for the indication of Crohn's disease was approved achieving 4 NDA/BLA applications
submissions 9 IND approvals and 14 innovative achievements published at international
conferences. In addition the DR10624 project was granted the Breakthrough Therapy Designation
in China for severe hypertriglyceridemia. The Company's key projects DR10624 and HDM2005
were successfully selected for the 2026 National Science and Technology Major Special Projects.During the reporting period the Company's R&D investment in the pharmaceutical industry
segment (excluding equity investment) amounted to RMB 1.208 billion representing a YoY
decrease of 18.58% among which the direct R&D expenditure reached RMB 1.062 billion down
9.56% YoY accounting for 13.30% of the revenue from the pharmaceutical industrial segment.
Oncology
HDM2005 an ROR1-targeting ADC ranks in the global first tier of global clinical
development for ROR1 ADCs. Four clinical studies are currently underway in China: i) Phase I
clinical study of monotherapy for advanced hematological malignancies including mantle cell
lymphoma (MCL) diffuse large B-cell lymphoma (DLBCL) and classical Hodgkin lymphoma
(cHL). The Ia phase monotherapy dose escalation has been completed and dose expansion studies
for MCL and cHL are ongoing; ii) Phase I clinical study of monotherapy for advanced solid tumor
which is currently in the dose expansion stage for metastatic castration-resistant prostate cancer
(mCRPC); iii) Phase Ib/II clinical study of combination therapy for DLBCL patients which is in the
phase II enrollment stage; iv) Phase Ib/III clinical study of combination therapy for r/r MCL
patients which is in the enrollment stage. In addition the clinical study application for combination
therapy in cHL was approved by NMPA in June.The Phase I clinical study of HDM2012 a MUC17-targeting ADC for the advanced solid
tumor has entered the dose backfilling stage.For HDM2020 an FGFR2b-targeting ADC the monotherapy dose-escalation Phase I clinical
study for advanced solid tumor has progressed to the 7th dose cohort. The Phase Ib clinical study
for advanced squamous non-small cell lung cancer (sqNSCLC) has completed enrollment of the
first dose cohort.HDM2017 a CDH17-targeting ADC is simultaneously advancing Phase Ia clinical study in
China and Australia. Furthermore two clinical study applications for combination therapy in
advanced colorectal cancer (CRC) have both been approved by CDE.The clinical study application for HDM2024 a bispecific antibody-drug conjugate (ADC)
targeting EGFR/HER3 for the treatment of advanced solid tumor has received IND approvals from
the U.S. Food and Drug Administration (FDA) and China CDE. The first patient enrollment in the
Phase I clinical study in China has been completed and the study is currently in the dose-escalation
phase.HDM2027 (HDP-101) a BCMA-targeting Amanitin ADC has completed the first patient
enrollment in China for its Phase I monotherapy study targeting plasma cell diseases including
multiple myeloma and is currently in the dose escalation stage. In addition in August 2026 the
IND for a new indication of HDM2027 in drug combination was approved by the NMPA.DR30206 a PD-L1/VEGF/TGF-β triple-target antibody fusion proteins developed by the
holding subsidiary Doer Biologics has completed Phase Ib dose expansion enrollment for first-line
non-small cell lung cancer. Subsequent expansion or combination therapy studies are currently
underway. The Company is also actively advancing the Phase Ib clinical study of monotherapy for
head and neck squamous cell carcinoma the Phase Ib/IIa clinical study of combination therapy for
advanced or metastatic gastrointestinal oncology and the Phase Ib/II clinical study of combination
therapy for locally advanced or metastatic non-small cell lung cancer.DR510 a first-in-class EGFR/CD3 bispecific T-cell redirecting antibody prodrug
independently developed by the holding subsidiary Doer Biologics is intended for the treatment of
multiple solid tumors including head and neck squamous cell carcinoma non-small cell lung cancer
pancreatic cancer and colorectal cancer. Its IND submission is in preparation.Endocrinology
For HDM1002 (conveglipron) an oral small-molecule GLP-1 receptor agonist the Phase III
clinical study for the weight management indication in China has reached the primary clinical
endpoint. The Pre-NDA submission was made in July 2026 and the NDA submission is planned for
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.For HDM1005 (poterepatide) injection a long-acting GLP-1R/GIPR dual-target polypeptide
agonist all subject enrollment in the Phase III clinical study for the weight management indication
has been completed. The study is currently in the treatment follow-up and data collection phase.The Pre-NDA application is scheduled to be submitted in Q4 2026. All subject enrollments have
been completed in two Phase III studies for the diabetes mellitus indication. Two Phase III studies
for the obstructive sleep apnea hypopnea syndrome (OSAS) indication are currently in preparation.DR10624 the first-in-class candidate product for FGF21R/GCGR/GLP-1R triple agonist
developed by the Company's holding subsidiary Doer Biologics was included in the Breakthrough
Therapy Designation list by CDE for severe hypertriglyceridemia (sHTG) in January 2026. Key
clinical discussions with regulatory authorities in China and the US have been completed and the
Phase III clinical study has been initiated. The Phase II clinical study of metabolic associated fatty
liver disease with a high risk of liver fibrosis reported top-line results in Q3 2026. Follow-up studies
are planned to further verify the efficacy and safety of DR10624 in the MASLD/MASH population.In July 2026 the IND for DR10624 in the indication of adult's HFpEF/HFrEF (heart failure with
preserved ejection fraction/heart failure with reduced ejection fraction) was approved in China.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.HDM1013 the Company's independently developed triple-target weight-loss drug is under
IND development and the Chinese IND submission is scheduled for Q3 2027.The IND application for HDM1010 Tablets (a fixed-dose combination oral formulation of
HDM1002) intended for the type 2 diabetes mellitus indication has been approved by the US Food
and Drug Administration (FDA).The NDA for Semaglutide Injection (diabetes indication) was submitted with supplementary
materials in March 2026 and is currently under review. The marketing application for the weight
management indication is also under review with registration testing ongoing.The NDA for Insulin Degludec Injection was submitted with supplementary materials in May
2026 and is currently in the professional review stage.
The NDA for Insulin Degludec and Insulin Aspart Injection was submitted in June 2026 and is
currently under professional review.Autoimmunity
For HDM3001 (QX001S) the Ustekinumab biosimilar co-developed with Qyuns Therapeutics
the supplementary application for the subcutaneous injection and the marketing authorization
application for the intravenous injection for the indication of Crohn's disease were approved in
April and May 2026 respectively. The supplementary application for the new 90 mg strength for the
indication of Crohn's disease was accepted in January 2026 and is expected to be approved by the
end of 2026.The Phase III clinical study of HDM3010 (Ruxolitinib Gel) the modified new drug
independently developed by the Company for the treatment of vitiligo is progressing.For HDM3014 (Roflumilast Cream) co-developed with Arcutis (US) the Chinese NDA
applications for two indications — plaque psoriasis (PsO) in patients aged 6 and above and atopic
dermatitis (AD) in patients aged 6 and above — have passed the on-site clinical inspection by
NMPA. The Chinese NDA application for the AD indication in patients aged 2 to 5 was accepted in
February 2026. All three indications above are expected to be approved in 2027.The Phase III clinical trial of HDM3015 (MC2-01 Cream) for plaque psoriasis co-developed
with MC2 Therapeutics has completed enrollment in China and is currently in the treatment
follow-up and data collection phase.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 Q4 2026.HDM3018 a bispecific antibody independently developed by the Company is under IND
development. The IND submissions in China and the US are scheduled for the second half of 2026.HDM3020 a bispecific antibody independently developed by the Company is under IND
development and the Chinese IND submission is scheduled for Q2 2027.Other segments
The supplementary materials for the NDA of Ranibizumab Injection was submitted in Q2 2026.Figure: Pipeline Diagram of Innovative Products in Major Clinical Development Stages
2. Key registration milestones of innovative products during the reporting period
China
Type Item Category Registration Milestone Event
Class
Sailexin The NDA for Saijiening for Crohn's disease
(Ustekinumab indication was approved in May 2026;
NDA Injection) Class 3.3 The supplementary application to add a Crohn's
approv Saijiening Biosimilar therapeutic disease indication for the 45 mg strength of
ed (Ustekinumab biological Sailexin
was approved in April 2026; the
Injection product supplementary application to add a Crohn's
(Intravenous disease indication for the 90 mg strength was
Infusion)) accepted in January 2026.
0.05% Roflumilast Innovative Class 5.1
Cream drug chemical drug NDAwas accepted in February 2026
Class 3.3
Semaglutide
Injection Biosimilar
therapeutic NDA for weight management indication was
biological accepted in April 2026
product
NDA Budesonide and
accept Formoterol
ed Fumarate Powder Modified Class 2.2new drug chemical drug NDA accepted in April 2026for Inhalation (IV)
Capsule? type
Insulin Degludec Class 3.3
and Insulin Aspart Biosimilar therapeutic
Injection biological
NDAwas accepted in June 2026
product
Class 1
Innovative therapeutic The IND for metabolic associated fatty liverDR10624 drug biological disease was approved in the U.S. in January
product 2026
Class 1 The IND for the combination therapy with
HDM2005 Innovative therapeutic Rituximab and Lenalidomide for the treatment ofdrug biological relapsed/refractory mantle cell lymphoma was
product approved in China in January 2026
Class 1
DR10624 Innovative therapeutic IND for hypertriglyceridemia was approved indrug biological China in February 2026
product
Class 1 The IND for combination with standard
DR30206 Innovative therapeutic chemotherapy in treatment of locally advanceddrug biological or metastatic non-small cell lung cancer patients
product was approved in China in February 2026
IND Class 1 The IND for monotherapy in treatment of
approv HDM2024 Innovative therapeuticdrug biological advanced malignant solid tumors was approveded product in China in March 2026
Class 1
Innovative therapeutic The IND for monotherapy in treatment ofHDM2024 drug biological advanced malignant solid tumors was approved
product in the U.S. in March 2026
Class 1
Innovative therapeutic The IND for combination with Fruquintinib inHDM2017 drug biological the treatment of advanced colorectal cancer was
product approved in China in May 2026
Class 1
Innovative therapeutic The IND for combination therapy in advancedHDM2017 drug biological colorectal cancer was approved in China in June
product 2026
Class 1
HDM2005 Innovative therapeutic
The IND for combination therapy in classical
drug biological Hodgkin lymphoma was approved in China in
product June 2026
Class 1
Innovative therapeutic Orphan drug designation was granted in the U.S.HDM2020 drug biological in February 2026 for indications of gastric
product cancer and gastroesophageal junction cancer
Class 1
Orpha HDM2017
Innovative therapeutic Orphan drug designation was granted in the U.S.drug biological in March 2026 for biliary tract cancer indication
n drug product
design Class 1
ation HDM2017 Innovative therapeutic Orphan drug designation was granted in the U.S.drug biological in March 2026 for gastric cancer indication
product
Class 1
HDM2017 Innovative therapeutic Orphan drug designation was granted in the U.S.drug biological in March 2026 for pancreatic cancer indication
product
Breakt Class 1
hrough Chinese breakthrough therapy designation was
Therap DR10624
Innovative therapeutic
drug biological obtained in January 2026 for severe
y product hypertriglyceridemia
Note: Budesonide and Formoterol Fumarate 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 of release Item Conference/journal Presentationname format Title
American Academy Efficacy and Safety of Roflumilast
1 March 2026 HDM3014 of Dermatology Oral Cream 0.3% in Chinese Adult and
(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 Phase 3Bridging 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 CBL-
5 April 2026 HDM2021 Association for Poster 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 favorable
(AACR) toxicological profile
American
7 April 2026 DR319 Association for Poster
DR319-DP: A Nectin-4/Trop-2
Cancer Research presentation bispecific ADC with an avidity-driven
(AACR) VHH design and dual-MOA payloads
Efficacy and Safety of Dual GLP-1/GIP
American Diabetes Receptor Agonist HDM1005 in Obese8 June 2026 HDM1005 Association (ADA) Oral Participants without Diabetes: ARandomized Double-Blind Placebo-
Controlled Phase 2 Trial
Efficacy and Safety of a Novel Oral
Small Molecule Glucagon-Like Peptide
9 June 2026 HDM1002 American Diabetes Oral 1 Receptor Agonist (HDM1002) in TypeAssociation (ADA) 2 Diabetes Mellitus Patients
Inadequately Controlled on Diet and
Exercise or Metformin
Efficacy and Safety of a Novel Oral
Small Molecule GLP-1 Receptor
10 June 2026 HDM1002 American Diabetes Poster Agonist HDM1002 in ChineseAssociation (ADA) presentation Overweight and Obese Adults: A
Randomized Double-Blind Placebo-
Controlled Phase 2 Trial
Preclinical Efficacy and Safety of
11 June 2026 HDM1014 American Diabetes Poster HDM1014 a Novel GalNAc-siRNAAssociation (ADA) presentation Targeting INHBE for Weight
Management with Muscle Preservation
12 June 2026 HDM1010 American Diabetes Poster
Significant Synergistic Hypoglycemic
Association (ADA) presentation Effects in Type 2 Diabetes Mellitus byHDM1010
13 June 2026 HDM1010 American Diabetes Poster Significant Synergistic Effects inAssociation (ADA) presentation Diabetic Kidney Disease by HDM1010
American College
of Veterinary Clinical studies on Weight-Loss Efficacy14 June 2026 HDM7006 Internal Medicine Oral and Safety in Cats with HDM 7006 a
(ACVIM) FIC GLP-1R/GIPR Agonist.
4. Innovative achievements scheduled for presentation at international academic
conferences in the second half of 2026
No. Date of release Item Conference/journal Presentationname format Title
European Academy HDM3017? 1 a Potent and Selective
1 September 2026 HDM3017 of Dermatology and PosterVenereology presentation STAT6 Degrader for the Treatment of
Congress (EADV) Autoimmune and Inflammatory Diseases
European Efficacy and Safety of HDM1702 vs.
2 September 2026 HDM1702 Association for the Oral Semaglutide (Wegovy
) in Patients with
Study of Diabetes obesity: A Randomized Open-label
(EASD) Phase 3 Trial
European A phase 2 trial of HDM1005 in
3 September 2026 HDM1005 Association for the Oral participants with type 2 diabetes notStudy of Diabetes controlled with diet/exercise or
(EASD) metformin
European A Novel GLP-1/GIP/Amylin Triple
4 September 2026 HDM1013 Association for the Oral Agonist Demonstrates Robust WeightStudy of Diabetes Loss and Overcomes Incretin Plateau in
(EASD) Preclinical Models
European Society Updated Results from a Phase I Study of
5 October 2026 HDM2005 for Medical Poster HDM2005 a ROR1-targeting AntibodyOncology presentation Drug Conjugate in non-Hodgkin
(ESMO) lymphoma
European Society A Phase I Study of HDM2005 a ROR1-
6 October 2026 HDM2005 for Medical Poster targeting Antibody Drug Conjugate inOncology presentation Patients with Metastatic Castration-
(ESMO) resistant Prostate Cancer
European Society A Phase I Clinical Study of HDM2020
7 October 2026 HDM2020 for Medical Poster (FGFR2b-ADC) in Patients withOncology presentation Advanced FGFR2b Positive Solid
(ESMO) Tumors: Results from Dose Escalation
5. Progress in the development and application of the AI-Enabled Drug Discovery (AIDD)
Platform
In H1 2026 the Company continued to advance the systematic construction R&D and
application of the AI-Aided Drug Discovery (AIDD) platform. It accelerated the deep integration of
artificial intelligence bioinformatics and the new drug R&D workflow further enhancing the
enabling capabilities in key links including target evaluation project initiation molecular design
candidate molecule screening druggability optimization and R&D intelligence analysis. The AIDD
team has supported nearly 30 R&D projects and the platform's supporting role for the R&D
pipeline has become increasingly prominent. In terms of biopharmaceutical R&D the Company
continuously strengthens its capabilities in antibody engineering design structure optimization
affinity maturation and druggability evaluation which have been implemented in multiple key
projects. The fastest-progressing projects have entered the pre-PCC stage. In terms of small-
molecule drug R&D AIDD is used for druggability prediction and assessment to drive compound
optimization. Among them the HDM1013 project has entered the IND development stage.During the reporting period the Company initially completed the localized deployment of the
competitive intelligence platform AIDD toolbox and intelligent scientific research platform. It has
preliminarily built an integrated AIDD technical chain covering "R&D intelligence acquisition
target and indication analysis computational design and screening intelligent analysis and decision
support" providing critical support for improving the efficiency of candidate molecule discovery
and optimization strengthening early-stage project screening capabilities optimizing R&D resource
allocation and enhancing independent innovation capabilities. The Company actively deploys
bioinformatics and intelligent R&D tools and carries out systematic work focusing on target and
target combination evaluation indication selection and expansion omics data analysis and R&D
decision support. In H1 2026 relevant analyses covered more than 30 indications approximately
100 potential target genes and related splice variants supporting multiple initiated R&D projects.
6. Other innovative progress
Since the establishment of the Global Innovative Drug R&D Center 6 years ago the Company
has submitted over 220 innovation drug patents in total with a cumulative number of 42 granted
patents. Since the beginning of 2026 14 domestic and foreign granted patents have been obtained
and 12 PCT international patent applications have been submitted.Since 2021 the Global Innovative Drug R&D Center of the Company has been approved for
27 government projects at the national provincial and municipal levels with a total granted funding
of nearly RMB 136.6 million. These projects include 2 national science and technology major
special projects for innovative drug R&D under the national "Four Major Chronic Diseases" special
program national laboratory projects central emergency research special projects and Zhejiang
Province "Pioneer" & "Leading Goose" R&D tackling projects. During the reporting period
Relmapirazin Injection and Mifanertinib Maleate Tablets were included in the 2026 Catalogue of
High-Quality Innovative Hangzhou-produced Pharmaceuticals and Medical Devices. As the leading
entity the Company established the Yangtze River Delta Autoimmune Disease New Drug
Innovation Consortium focusing on the major clinical needs of autoimmunity to carry out R&D
and industrialization tackling for innovative drugs. The "Provincial Key Laboratory for Intelligent
Innovation of Metabolic Disease New Drugs" has promoted the technical tackling of AIDD-based
drug design & synthesis and intelligent drug delivery supporting the R&D of the metabolism
pipeline. The Lingang National Laboratory project focuses on metabolic drug-microneedle
sustained-release technology. Its newly developed next-generation weight-loss and hypoglycemic
drug-device combination product has advanced to the pre-PCC stage.In February 2021 Zhongmei Huadong a wholly-owned subsidiary of the Company was
approved to set up a postdoctoral research workstation in Zhejiang Province which was registered
as a national postdoctoral research workstation in September 2022. Postdoctoral researchers at the
workstation conduct cutting-edge and translational research in innovative drug development in
alignment with the Company's strategic priorities and R&D pipeline layout. Postdoctoral
researchers receive joint training through collaborations with mobile postdoctoral stations at leading
academic institutions including Zhejiang University the Shanghai Institute of Materia Medica of
the Chinese Academy of Sciences Shandong University and Zhejiang University of Technology.To date the workstation has recruited 36 postdoctoral researchers among whom 20 are currently in
residence while 16 have successfully completed the program.
7. Major R&D progress in generic drugs
The Company further clarified the focused and prioritized varieties by regularly organizing
dynamic evaluation and analysis of existing generic drugs under development. From the beginning
of the year to the release date of this Report the Company has obtained marketing approval for a
total of 5 generic drugs. These products include Carfilzomib for Injection Isavuconazonium Sulfate
for Injection and Ruxolitinib Phosphate Tablets from its wholly-owned subsidiary Hangzhou
Zhongmei Huadong Pharmaceutical Co. Ltd. as well as Adapalene Gel and Terbinafine
Hydrochloride Spray from its wholly-owned subsidiary Huadong Medicine (Xi'an) Bodyguard
Pharmaceutical Co. Ltd.
8. Progress in international registration
No. Field Item Remarks Latest progress
For diabetes treatment: 1.34
mg/mL 3 mL Approved by EAEU in April 2026
Semaglutide For weight loss: 0.68 mg/mL1 Endocrinology Injection 1.5 mL; 1.34 mg/mL 1.5 mL;1.34 mg/mL 3 mL; 2.27 Approved by EAEU in May 2026
mg/mL 3 mL; 3.2 mg/mL 3
mL
2 Immunology Tacrolimus Approved by Uzbekistan in AprilCapsules 0.5 mg/1 mg 2026
Isavuconazonium
3 Anti-infection Sulfate for 372 mg DRL response for label and quality in
Injection April 2026
4 Anti-infection Polymyxin B APIs CEP (Sister file) approved in FebruarySulfate 2026;
5 Endocrinology Insulin Aspart APIs Completed initial U.S. DMFsubmission in January 2026
6 Antipsychotics Brexpiprazole APIs Completed initial U.S. DMFsubmission in March 2026
7 Oncology Deruxtecan Intermediate Completed initial U.S. DMFsubmission in March 2026
8 Anti-infection Gramicidin APIs CEP application submitted in June2026
9 Nucleotide 2'-F-dC(Ac)drugs Phosphoramidite Intermediate
Completed initial U.S. DMF
submission in March 2026
10 Oncology Leptomycin B Intermediate Completed initial U.S. DMFsubmission in March 2026
11 Oncology Calicheamicin Intermediate Completed initial U.S. DMFsubmission in March 2026
12 Nucleotidedrugs L96.TEA Intermediate
Completed initial U.S. DMF
submission in April 2026
13 Anti-infection Echinocandin Bnucleus (ECBN) Intermediate
Completed initial U.S. DMF
submission in June 2026
14 Oncology Adagrasib Intermediate Completed initial U.S. DMFIntermediate submission in June 2026
15 Nucleotide dTdrugs phosphoramidite Intermediate
Completed initial U.S. DMF
submission in July 2026
9. Progress in consistency evaluation
From the beginning of 2026 to the release date of the Report Huadong Medicine (Xi'an)
Bodyguard Pharmaceutical Co. Ltd. a wholly-owned subsidiary of the Company received an
Approval Notice for the Supplemental Application for Consistency Evaluation for its Ibuprofen
Tablets.
10. Main registration progress of domestic aesthetic medicine
No. Type Product designation Intended use Latest progress
MaiLiPrecise Improvement of1 Injections Hyaluronic acid infraorbital
Received marketing approval from
hollowness NMPA in August 2026
2 Injections Lanluma V Improvement of Completed the clinical trial report inPoly-L-lactic acid jawline contour June 2026
KIO021 Improvement of Completed 500 subjects enrollment3 Injections Chitosan facial skin in January 2026. Clinical datacondition analysis is currently underway
The supplementary indication
4 Injections Ellansé-S Improvement of
registration application was accepted
Polycaprolactone forehead contour by NMPA in June 2026. It iscurrently in the regulatory review
stage.Ellansé-M Improvement of
5 Injections Polycaprolactone temporal Received marketing approval from
hollowness NMPA in April 2026
Recombinant botulinum toxin
6 Injections type A for injection Moderate-to-severe Received marketing approval from
(trade name: Retoxin) glabellar lines NMPA in March 2026
Improvement of
wrinkles benign
Energy- skin lesions benign
7 based V30 vascular lesions Received marketing approval from
device benign pigmented NMPA in June 2026lesions moderate
inflammatory acne
and hair removal
Chinese Mainland: Currently in the
Benign skin stage of regulatory submission toEnergy- NMPA;
8 based Primelase lesions pigmented
device Laser device lesions and benign
Registration application in Taiwan
vascular lesions China: Currently in the technicalreview stage; the application is
expected to get approval in Q1 2027
11. Main registration progress of overseas aesthetic medicine
No. Type Product Indication Latest progress
KIO015 Superficial filling skin
1 Injections (trade name: quality improvement skin Obtained EU MDR-CE certification in
KytogenDefend) hydration August 2026
Completed enrollment of all subjects for
2 Injections Ellansé S Nasolabial folds U.S. clinical study by end of March 2026;currently conducting safety follow-ups
according to the study protocol
Energy- Primelase Benign skin lesions Japan registration application: Currently the3 based Laser device pigmented lesions and application is in the technical review stage;device benign vascular lesions it is expected to get approval in Q2 2027
12. Patent progress
In recent years the Company has placed great emphasis on the protection of intellectual
property rights and the application of research outcomes with both the number of patent
applications and grants steadily increasing. The Company has filed a total of over 2000 patent
applications domestically and internationally over the years including more than 610 authorized
invention patents. Hangzhou Zhongmei Huadong Pharmaceutical Co. Ltd. a wholly-owned
subsidiary of the Company is a national intellectual property demonstration enterprise. It passed the
external audit by Zhongzhi (Beijing) Certification Co. Ltd. in November 2014 and became one of
the first 147 enterprises that passed the standards implementation certification. In October 2025 it
smoothly passed the audit of the enterprise intellectual property compliance management system
(Certificate No.: 165IP250489R0L).
During the reporting period the Company's patent application and maintenance work
proceeded smoothly. A total of 110 patent applications were filed including 86 invention patents
and 44 patents were authorized.Increase during the reporting period Total quantity
Patent type Number of patents Number of patents Number of patents Number of patents
applied for (units) received (units) applied for (units) received (units)
Invention patent 86 32 1624 619
Utility patent 18 9 339 282
Appearance design
patent 6 3 54 49
Total 110 44 2017 950
Note: The data in the above table represent the statistical patent information of main subsidiaries engaged in the
pharmaceutical industry industrial microbiology and aesthetic medicine within the Company's consolidated
statements.II. Analysis of core competitiveness
1. Open innovative drug R&D system and continuously improved innovation ability
The Company has consistently placed a high priority on innovation and research and
development and adhered to the philosophy of "research-driven and patient-centered" development.Guided by the principles of clinical value pharmacoeconomic value and commercial viability the
Company continues to sustain a high level of investment in R&D activities. Its Global Innovative
Drug R&D Center serves as the cornerstone for innovation strategy formulation pipeline planning
and clinical study and development. Following years of dedicated development the Company has
established a relatively comprehensive and independent drug R&D system that encompasses the
entire life cycle of drug development—from drug discovery and pharmaceutical research through
preclinical and clinical studies to industrialization.Focusing on three core therapeutic fields—oncology endocrinology and autoimmunity—the
Company remains committed to continuous development and has cultivated a diversified portfolio
of differentiated innovative product pipelines that cover the full R&D cycle via independent R&D
external cooperation license-in. All these merits effectively empower the continuous initiation and
marketing of innovative products offering impetuses for the Company's medium- and long-term
development. The Company has continuously leveled up its independent R&D and innovation
capabilities. Its Innovative Drug R&D Center is advancing the R&D of nearly 100 innovative drug
pipeline programs placing the Company among the first tier of pharmaceutical companies in China
in terms of pipeline size.
2. Diverse product pipelines for specialized and chronic diseases and featured layout in
three core therapeutic fields
Focusing on specialized medicines medicines for chronic diseases as well as special
medicines for years the Company has fostered good brand effect and laid strong market foundation
in such fields as chronic kidney disease immunology endocrinology oncology digestive system
and cardiovascular diseases continuously keeping in the forefront of similar products in China in
terms of market share. Meanwhile the Company has launched first-in-class new drugs on the global
market in core therapeutic areas including oncology endocrinology and autoimmunity. It has
formed three featured pipeline matrices covering ADCs GLP-1s and topical preparation building
differentiated competitive advantages.Specializing in medicines for diabetes for over two decades the Company has
comprehensively laid out product pipelines of innovative and differentiated generic drugs for
clinical mainstream therapeutic targets of diabetes with over 20 types of products under
development or put in commercial production. Now the Company has fostered good brand effect
and laid strong market foundation. The existing and subsequently-upgraded products cover multiple
mainstream targets including α-glucosidase inhibitors DPP-4 inhibitors SGLT-2 inhibitors GLP-1
receptor single-target and long-acting multi-target agonists as well as insulin and its analogs.Centered on the GLP-1 target the Company has developed a comprehensive and differentiated
product pipeline that combines long-acting and multi-target global innovative drugs and biosimilars
including oral tablets and injections.In the oncology field the Company takes independent R&D as the core and global
collaboration as the support continuously consolidating its differentiated product pipeline.Especially in the ADC track the Company has built full-chain capabilities spanning from R&D to
commercialization. Elahere the world's first and currently the only approved FRα-targeting ADC
drug for platinum-resistant ovarian cancer has been officially commercialized in China. The
Company is committed to building an ADC pipeline matrix centered on independent innovation
with ADC candidate products targeting differentiated innovative targets such as ROR1 FGFR2b
MUC17 and CDH17. The overall R&D progress for these novel targets ranks among the global
leaders and multiple products have obtained the Orphan Drug Designation from the FDA.Meanwhile the Company has invested in held controlling stakes in and incubated a number of
leading domestic biotech companies. By strategically acquiring shares in Heidelberg Pharma a
German company to become its second-largest shareholder the Company carries out product
collaboration and introduces its proprietary ATAC (Amanitin Antibody Conjugate) technology
platform further expanding its differentiated toxin ADC pipeline. Based on clinical feedback the
Company continues to carry out innovative R&D of ADCs with novel targets and new mechanisms
building a world-class independent ADC R&D industrial platform and committed to providing
innovative treatment solutions with higher clinical value for oncology patients.In the field of autoimmunity the Company's marketed and pipeline products cover a wide
range of indications including transplant immunology psoriasis atopic dermatitis rheumatoid
arthritis seborrhoeic dermatitis prurigo nodularis vitiligo recurrent pericarditis and cryopyrin-
associated periodic syndromes. These indications span across dermatology rheumatology
cardiovascular respiratory and transplant-related diseases making the Company one of the most
comprehensive pharmaceutical enterprises in China in terms of coverage in the autoimmune disease
area. Additionally the Company's innovative drug R&D center has been focusing on new targets
and biological mechanisms developing multiple early-stage projects for immune diseases all of
which are progressing smoothly. With regard to autoimmunity the Company stretched its coverage
to topical preparations built topical preparation R&D platforms and steadily advanced the R&D
and innovation of external and complicated preparations. Currently the Company's wholly-owned
subsidiary Huadong Medicine (Xi'an) Bodyguard Pharmaceutical Co. Ltd. and its controlled
subsidiary Shaanxi Jiuzhou Pharmaceutical Co. Ltd. have jointly fostered four production lines for
topical preparations. The Company now has more than 10 products of topical preparation either
under development or in commercial production.
3. A leading professional pharmaceutical service team in China and a mature and well-
established commercial operation system
The Company's pharmaceutical development is supported by a highly specialized team
dedicated to pharmaceutical services and market development. Centered on clinical value and
academic promotion the team advances an integrated marketing model that connects
comprehensive hospitals primary-level medical institutions the retail sector third-terminal
channels and online platforms. With a sales network covering more than 30 provinces autonomous
regions and municipalities nationwide the Company has established a multi-channel wide-
coverage presence with strong competitive advantages.The Company's pharmaceutical distribution segment has deeply cultivated the Zhejiang market
for many years with a solid regional business foundation and a well-established product category
layout building deep competitive moats in market access and terminal channel coverage. In terms
of supply chain cooperation the Company has established long-term stable and in-depth strategic
partnerships with over 95% of mainstream domestic and international pharmaceutical enterprises
with sufficient product supply and a mature cooperation system. Its sales network fully covers all 90
county-level administrative regions in Zhejiang Province achieving 100% coverage of public
medical institutions within the province. It also continuously expands to out-of-hospital terminal
customers such as retail pharmacies and private medical institutions with its regional market share
ranking among the top in Zhejiang's pharmaceutical industry.The Company continuously strengthens the construction of core competitive capabilities
forming systematic and institutionalized competitive advantages in deep collaboration with top-tier
medical institutions coordinated implementation of policy affairs business model innovation and
efficient organizational operation. It can provide full-value-chain integrated services for upstream
and downstream partners covering the entire process including pharmaceutical project market
access professional one-stop CSO commercial marketing retail and DTP professional channel
construction local government affairs coordination and compliant payment guarantee fully
empowering the coordinated development of the entire industrial chain.With the continuous deepening of China's pharmaceutical reform the pharmaceutical
distribution industry is accelerating its transformation from the traditional commercial distribution
model to a specialized service-oriented and integrated supply chain service model. The Company
accurately grasps the industry development trend actively adapts to the orientation of policy reform
and continuously deepens strategic cooperation and ecological co-construction with core customers.At present the Company has formed differentiated leading advantages in multiple core segmented
tracks including professional market access services omni-channel integrated marketing
pharmaceutical government affairs coordination innovative pharmaceutical affairs services high-
end cold chain third-party pharmaceutical logistics and automated intelligent herbal decoction. It
continues to consolidate its core competitiveness as the regional industry leader building solid core
moats for sustained and steady business growth.
4. A comprehensive high-end international aesthetic medicine product pipeline
Focusing on the global high-end medical aesthetics market the Company has established an
internationalized team dedicated for aesthetic medicine operations and BD. Through mergers and
acquisitions and product in-licensing in recent years the Company has progressively refined and
enriched its industrial layout for high-end aesthetic medicines. The Company now provides full-
spectrum coverage in the mid- to high-end markets for non-surgical aesthetic injectables and
energy-based devices. Its portfolio comprises more than 50 high-end internationally sourced
minimally invasive and non-invasive aesthetic medicine products 36 of which have already been
launched in domestic or overseas markets. Its globally patented product suite spans mainstream
non-surgical aesthetic categories including frown line improvement facial and body filling thread
lifting skin management body contouring depilation and intimate rejuvenation. The Company has
thus established a comprehensive product cluster ranking among the industry leaders in terms of
product number and coverage breadth while continuing to expand its global presence. Meanwhile
the Company has achieved full coverage across three major injectable categories—regenerative
products hyaluronic acid and botulinum toxin—forming a multi-dimensional full-face aesthetics
treatment system. This allows the Company to provide precise personalized and highly effective
"one-stop" aesthetic solutions for aesthetic seekers. The Company's aesthetic medicine marketing
network spans over 80 countries and regions worldwide supported by a professional aesthetic
medicine sales team of over 700 members across markets in and out of China.
5. Outstanding and leading international competitiveness in industrial microbiology
segment
The Company has long been deeply engaged in the industrial microbiology segment. It
operates the largest single fermentation workshop in Zhejiang Province and boasts industry-leading
production capacity for microbial drugs. It possesses full-chain R&D capabilities in microbial
engineering technologies including strain construction metabolism regulation enzyme catalysis
synthetic modification separation and purification. It has established a complete manufacturing
system covering microbial project R&D pilot-scale verification commercial production and
engineering & utility system support. The Company has established an R&D cluster centered on the
Synthetic Biology R&D Platform (Huadong Synthetic Biology Research Institute) the Industrial
Microbiology R&D Platform (Huida Biotech) and the Synthetic Chemistry R&D Platform. It has
deployed 7 industrialization bases located in Hangzhou Xiangfuqiao Qiantang New Area Jiangsu
Joyang Magic Health Anhui Meihua Wuhu Huaren and Huadong Dongbao. The Company is
making every effort to continuously advance the integrated development of "production research
and marketing" in the field of industrial microbiology.The Company's industrial microbiology segment has developed a globally-oriented
collaborative and highly efficient innovation talent team and established a multidisciplinary talent
structure led by seasoned industry experts and supported by a new generation of key scientific
research personnel. This has enabled the Company to build a specialized operating system
underpinned by profound technical expertise and outstanding innovation capabilities. On the R&D
front the Company remains committed to talent-driven innovation with master's and doctoral
degree holders accounting for 30% of its R&D personnel. As of the end of the reporting period the
Company's industrial microbiology segment had initiated 538 R&D projects in total including 294
xRNA raw material projects 148 specialty API and intermediate projects 61 massive health and
biomaterials projects and 35 animal health projects. This extensive project pipeline provides a solid
pipeline foundation for medium- and long-term business growth.
6. Prudent and pragmatic operation style and stable returns to shareholders
The Company is committed to management innovation and continues to enhance its operating
quality as a means of strengthening its core competitiveness. Leveraging its high-quality product
portfolio outstanding commercialization capabilities compliant and efficient marketing and service
system differentiated market positioning forward-looking R&D and innovation strategy and a
well-structured talent echelon plan the Company is steadily advancing toward long-term
sustainable and high-quality growth. Since its listing the Company has made a total of 26 dividend
distributions with cumulative dividends amounting to RMB 9.89 billion. Through sustained and
stable cash returns the Company has created substantial long-term investment value for its
shareholders.III. Analysis of main business
Overview
Please refer to the relevant contents of "I. Main business of the Company during the reporting period".Year-on-year changes in key accounting data
Unit: RMB
Current reporting Year-on-year
Same period last year Reason for change
period increase/decrease
Operating revenue 22066646185.69 21674928965.21 1.81%
Operating cost 14828934265.49 14327396132.90 3.50%
Selling expenses 3415134454.00 3229044236.81 5.76%
Management expenses 695712456.19 725296086.80 -4.08%
Financial expenses 15815238.01 22424175.74 -29.47%
Income tax expense 371103526.62 389834341.82 -4.80%
R&D investment 747087944.12 999673972.93 -25.27%
Net cash flow from
2499419530.63 2456848510.10 1.73%
operating activities
Net cash flows from
-762606541.65 -791757068.20 3.68%
investing activities
Primarily attributable
to a decrease in cash
Net cash flow from
-983956953.27 -1533431198.50 35.83% payments for other
financing activities
activities related to
financing compared
with the same period of
the previous year
Primarily attributable
to a decrease in net
cash outflows from
Net increase in cash
751397083.68 14817239.00 4971.10% financing activities
and cash equivalents
compared with the
same period of the
previous year
Significant changes in the composition or sources of the Company's profits during the reporting period
□Applicable□Not applicable
There were no significant changes in the composition or sources of the Company's profits during the reporting period.Composition of operating revenue
Unit: RMB
Current reporting period Same period last year
Year-on-year
Proportion to Proportion to
Amount Amount increase/decrease
operating revenue operating revenue
Operating revenue 22066646185.69 100% 21674928965.21 100% 1.81%
By industries
Commerce 14099335279.67 63.89% 13970510608.22 64.45% 0.92%
Manufacturing 8679896494.76 39.33% 8603485229.15 39.69% 0.89%
Incl.: industry 7968908996.66 36.11% 7316615884.76 33.76% 8.92%
Medical
651482794.48 2.95% 1112235226.85 5.13% -41.43%
aesthetics business
Incl.:
international
332461848.93 1.51% 524344885.36 2.42% -36.59%
medical aesthetics
business
Medical
aesthetics business 344790625.38 1.56% 725276218.82 3.35% -52.46%
in China [Note]
Offset (inter-
-712585588.74 -899066872.16
sectoral offset)
By products
By regions
Sales in China 21628415106.91 98.01% 21062550182.23 97.17% 2.69%
Overseas sales 438231078.78 1.99% 612378782.98 2.83% -28.44%
[Note] The medical aesthetics business in China includes revenue from self-operated aesthetic medicine products revenue from
aesthetic medicine products distributed by the Company's pharmaceutical commercial agency and revenue from proprietary OTC
weight-loss products.Industries products regions accounting for more than 10% of the Company's operating revenue or operating profit
□Applicable □Not applicable
Unit: RMB
Year-on-year
Year-on-year Year-on-year
Operating Gross profit change in
Operating cost change in change in gross
revenue margin operating
operating cost profit margin
revenue
By industries
14099335279 13166618350
Commerce 6.62% 0.92% 1.01% -0.08%.67 .01
8679896494. 2304003354.
Manufacturing 73.46% 0.89% 9.01% -1.98%
76 92
By products
By regions
21628415106 14647274870
Sales in China 32.28% 2.69% 3.86% -0.76%.91 .13
Overseas sales 438231078.78 181659395.36 58.55% -28.44% -19.06% -4.80%
If the statistical method of the Company's main business data has been adjusted during the reporting period the Company's main
business data of the most recent period should be adjusted according to the method at the end of the reporting period
□Applicable□Not applicable
IV. Analysis of non-main business
□Applicable □Not applicable
Unit: RMB
Proportion to total Whether it is
Amount Reason for formation
profit sustainable
Investment income 595643.34 0.03%
Gains or losses from
0.00 0.00%
changes in fair value
Impairment of assets -7889468.30 -0.36%
Non-operating revenue 1638197.10 0.07% No
Non-operating
48620827.68 2.20% No
expenses
Other income 61562073.66 2.78% No
V. Analysis of assets and liabilities
1. Significant changes in asset composition
Unit: RMB
End of the current reporting period End of the prior year Increase or Description of
Proportion to Proportion to decrease in significant
Amount Amount
total assets total assets proportion changes
Primarily
attributable to a
decrease in net
cash outflows
from financing
5605360468. 4978052188.
Monetary funds 14.02% 12.75% 1.27% activities an
39 84
increase in net
cash inflows
and an increase
in bank
deposits.Accounts 8841404841. 8985587945.
22.12% 23.02% -0.90%
receivable 16 31
Primarily
5030683149. 5535765919.
Inventory 12.58% 14.18% -1.60% attributable to a
60 86
decrease in
finished goods
and inventory
Investment
10480170.79 0.03% 10946776.47 0.03%
property
Long-term
1650742294. 1509122017.
equity 4.13% 3.87% 0.26%
80 22
investment
4289689684. 4470264264.
Fixed assets 10.73% 11.45% -0.72%
93 88
Construction in
987615685.14 2.47% 832431516.18 2.13% 0.34%
progress
Right-of-use
199999619.57 0.50% 170395474.59 0.44% 0.06%
assets
Short-term 1715030135. 1621903523.
4.29% 4.15% 0.14%
borrowings 18 77
Contract
145747142.69 0.36% 188554462.61 0.48% -0.12%
liabilities
Long-term
250096486.73 0.63% 252034854.55 0.65% -0.02%
borrowings
Lease liabilities 116993386.72 0.29% 88813504.20 0.23% 0.06%
2. Major overseas assets
□Applicable □Not applicable
Proportion
Control of overseas Any
Specific
Reason for Operating measures to Profitabilit assets to significant
item of the Asset scale Location
formation mode ensure y net assets impairment
asset
asset safety of the risk
Company
Major
decisions
approved
by the
Board of
Directors
Sinclair RMB Independen Loss for
Equity The United routine
Pharma 20077069 t the current 7.79% No
acquisition Kingdom financial
Limited 00 accounting period
supervision
and audits
conducted
by external
intermediar
y agencies
3. Assets and liabilities measured at fair value
□Applicable □Not applicable
Unit: RMB
Opening Profits or Cumulative Impairment Purchase Sale Other Closing
Item
balance losses from fair value accrued in amount in amount in changes balance
changes in changes the current the current the current
fair value recorded in period period period
in the equity
current
period
Financial
assets
4. Other
equity -
68100625 4595102.0 2234465.2 1950196.7 67426570
instrument 820934.11 7845749.5
3.76 4 2 4 6.81
investment 4
s
Subtotal of -
68100625 4595102.0 2234465.2 1950196.7 67426570
financial 820934.11 7845749.5
3.76 4 2 4 6.81
assets 4
Receivable 46057820 40479850 36432961 86526715
s financing 6.16 68.80 18.31 6.65
-
Total of the 11415844 4595102.0 40502195 36452463 15395328
820934.11 7845749.5
above 59.92 4 34.02 15.05 63.46
4
Financial
0.00 0.00 0.00
liabilities
Description of other changes
Other changes are due to exchange rate changes
Whether there is any significant change in the measurement attributes of the Company's main assets during the reporting period
□Yes□No
4. Restrictions on asset rights as of the end of the reporting period
Unit: RMB
Item Closing book balance Closing carrying Type ofamount restriction Reason for restriction
Monetary
funds 109173061.46 109173061.46 Deposit
Deposit used for issuing bills letters
of credit etc.Monetary
funds 8428383.33 8428383.33 Frozen
Time deposits not withdrawable on
demand and interest
Monetary
funds 440276.02 440276.02 Frozen Special funds for reserve materials
Fixed assets 104874654.12 100146512.50 Mortgage Property used as mortgage for loan
Intangible
assets 56297988.87 51611574.67 Mortgage Land used as mortgage for loan
Total 279214363.80 269799807.98
VI. Analysis of investment status
1. Overall situation
□Applicable □Not applicable
Investment amount in the reporting Investment in the same period of the Percentage change
period (RMB) prior year (RMB)
1114829992.50 1238971421.66 -10.02%
2. Significant equity investments acquired during the reporting period
□Applicable□Not applicable
3. Significant non-equity investments in progress during the reporting period
□Applicable □Not applicable
Unit: RMB
Reaso
Accum ns for
Accum
ulated failure
Invest ulated
Industr actual to
ment incom
Invest ies invest meet Disclo
amoun e Disclo
ment involv ment Expect the sure
Way of t Source Project realize sure
in ed in amoun ed planne index
Item invest during of progre d by date (if
fixed the t by earnin d (if
ment the funds ss the end applica
assets invest the end gs progre applica
reporti of the ble)
or not ment of the ss and ble)
ng reporti
project reporti expect
period ng
ng ed
period
period earnin
gs
Huado
ng
Medici
Pharm CNIN
ne
aceutic FO
Bio- Self- 82380 51309 Not Februa
al Own 58.00 (http://
innova built Yes 365.8 5275. 0.00 0.00 applica ry 8
manuf funds % www.c
tion project 1 85 ble 2024
acturin ninfo.c
Intellig
g om.cn)
ence
Center
Project
82380 51309
Total -- -- -- 365.8 5275. -- -- 0.00 0.00 -- -- --
1 85
4. Investment in financial assets
(1) Investment in securities
□Applicable □Not applicable
Unit: RMB
Accou Openi
Securi Profit Cumu Purch Sale Gains
Closin
Initial nting ng
Securi Securi ty s or lative ase amou or
g
Accou Sourc
invest measu carryi carryi
ty ty abbre losses fair amou nt in losses nting e of
ment remen ng
type code viatio from value nt in the during
ng
item funds
cost t amou
n chang chang the curren the
amou
model nt es in es curren t report nt
fair record t period ing
value ed in period period
in the equity
curren
t
period
Invest
Dome
Fair ment
stic
2020 value 1158 1950 - in
and 8209 Own
RAPT RAPT 7400. measu 325.5 0.00 196.7 2906 0.00 other
overse 34.11 funds
00 remen 9 4 2.96 equity
as
t instru
stocks
ments
2020 1158 1950 -
8209
Total 7400. -- 325.5 0.00 0.00 196.7 2906 0.00 -- --
34.11
00 9 4 2.96
Note: (1) Huadong Medicine Investment Holding (Hong Kong) Limited ("Huadong Investment") a wholly-
owned subsidiary of the Company invested USD 3.00 million in 2018 to purchase 218102 Series C-2 preferred
shares of RAPT Therapeutics Inc. RAPT Therapeutics Inc. was listed on the NASDAQ Stock Market in the
United States on October 30 2019 (stock code: RAPT). As of the end of the reporting period all RAPT shares
held by Huadong Medicine Investment Holding (Hong Kong) Limited had been sold.
(2) On March 11 2024 Huadong Medicine Investment Holding (Hong Kong) Limited one of the Company's
wholly-owned subsidiaries subscribed IPO shares of Qyuns Therapeutics Co. Ltd. at the Stock Exchange of
Hong Kong Limited as cornerstone investor with the consideration of equivalent USD 5 million from its own
funds in Hong Kong dollar (excluding brokerage commission related transaction fees and levies). For details
please refer to the Announcement on Subscribing IPO Shares of Qyuns Therapeutics Co. Ltd. in Hong Kong as
Cornerstone Investor (Announcement No.: 2024-013) disclosed by the Company on CNINFO
(http://www.cninfo.com.cn). On March 20 2024 Qyuns Therapeutics was successfully listed on the main board
of the Stock Exchange of Hong Kong with the stock code of 2509.HK. As of the date of this Report the
Company holds a total of 37876800 shares of Qyuns Therapeutics through its wholly-owned subsidiaries
Zhongmei Huadong and Huadong Medicine Investment Holding (Hong Kong) Limited accounting for
approximately 16.68% of the total shares of Qyuns Therapeutics. Among them Zhongmei Huadong holds
35900000 shares and Huadong Medicine Investment holds 1976800 shares. The Company calculated the
shares held by Zhongmei Huadong and Huadong Medicine Investment in a consolidated manner which was
reflected in the long-term equity investment in the financial statements.
(3) On November 28 2024 Hangzhou Jiuyuan Genetic Biopharmaceutical Co. Ltd. one of the Company's
shareholding enterprises was successfully listed on the main board of the Stock Exchange of Hong Kong with
the stock name (abbreviation) of Jiuyuan Gene and the stock code of 2566.HK. As of the date of the Report the
Company holds a total of 42120453 shares of Jiuyuan Gene through its wholly-owned subsidiary Hangzhou
Zhongmei Huadong Pharmaceutical Co. Ltd. accounting for approximately 17.16% of the total shares of
Jiuyuan Gene. The Company's shareholding in Jiuyuan Gene was reflected in the long-term equity investment
in the financial statements.
(2) Investment in derivatives
□Applicable□Not applicable
The Company had no derivative investment during the reporting period.
5. Use of raised funds
□Applicable□Not applicable
The Company had no use of raised funds during the reporting period.VII. Sale of major assets and equity
1. Sale of major assets
□Applicable□Not applicable
The Company did not sell major assets during the reporting period.
2. Sale of significant equity
□Applicable□Not applicable
VIII. Analysis of major shareholding companies
□Applicable □Not applicable
Major subsidiaries and shareholding companies with an impact of more than 10% on the Company's net profit
Unit: RMB
Company Type of Main Registered Operating Operating
Total assets Net assets Net profit
name company business capital revenue profit
Production
of
Traditional
Hangzhou
Chinese
Zhongmei
and
Huadong 87230813 23322958 13822840 79865953 21249084 17707029
Subsidiary Western
Pharmaceut 0.00 855.98 772.91 03.35 22.54 31.34
APIs and
ical Co.formulation
Ltd.s and
health care
products
Acquisition and disposal of subsidiaries during the reporting period
□Applicable □Not applicable
Method of acquisition and disposal of Impact on overall production operation
Company name
subsidiaries during the reporting period and performance
Huadong Medicinal Materials
Incorporation Pharmaceutical distribution development
(Wenzhou) Co. Ltd.Huadong Medicine E-commerce
Incorporation Pharmaceutical distribution development
(Zhejiang) Co. Ltd.Huadong Medicine New Drug R&D
Incorporation Innovation R&D platform expansion
Center (Beijing) Co. Ltd.Description of major shareholding companies
IX. Structured entities controlled by the Company
□Applicable□Not applicable
X. Risks faced by the Company and countermeasures
1. Risks arising from industry policy changes and product price reductions
The pharmaceutical industry is not only a strategic industry that receives strong support and
encouragement from the government but also one that is directly related to public health and life
safety. It is characterized by intense competition and active innovation requiring companies to
continuously adapt to changes in market conditions and policy developments. In recent years
policies such as centralized volume-based procurement and national medical insurance negotiations
have continued to advance with an increasing trend toward standardization normalization and
systematization. Meanwhile external uncertainties such as geopolitical factors and macroeconomic
policies have also disrupted business operations and market conditions presenting challenges to the
production costs and profitability of the pharmaceutical industry. New drug products may also face
the risk of price reductions.Countermeasures: The Company closely monitors macroeconomic policies and industry
development trends and continuously adjusts its business strategies accordingly. In terms of R&D
the Company continues to increase its investment in R&D and strengthen its long-term
competitiveness and growth potential by continuously expanding its product pipeline in core
therapeutic areas. Meanwhile the Company continues to deepen its presence in the aesthetic
medicine and industrial microbiology sectors fostering diversified growth drivers. In addition the
Company also mitigates its production and operation risks through cost reduction efficiency
improvement lean management or by other means.
2. Risks in new drug R&D
The development of innovative products is characterized by long development cycles
substantial investment requirements and a high degree of uncertainty. From R&D to
commercialization an innovative drug must go through multiple stages including preclinical study
clinical trial regulatory submission and registration approval for production and commercial
launch. The process is also subject to various uncertainties arising from government policies
market conditions regulatory reviews and approvals among other factors. In addition the R&D of
innovative drugs requires highly educated and highly qualified R&D professionals. Upfront
investments in personnel and R&D expenses may place a certain degree of pressure on the
Company's achievement of its current-period operating objectives. Following commercialization
newly launched drugs also require time and market development efforts to achieve meaningful sales
growth and may be subject to risks such as price reductions. As a result there is a risk that returns
on R&D investment may fall short of expectations.Countermeasures: The Company focuses on its core therapeutic fields and continuously
enhances its in-house R&D capabilities. In recent years it has enriched and optimized its product
pipelines through a combination of independent R&D and licensed introductions thereby building a
distinctive R&D ecosystem for Huadong Medicine and establishing differentiated R&D portfolios
in oncology endocrinology and autoimmunity. The Company will also continue to optimize its
innovation mechanisms improve its scientific evaluation and decision-making systems for new
drug candidates and deepen cooperation with renowned R&D institutions in China and abroad. At
the same time the Company will further strengthen its efforts to attract and develop high-caliber
scientific and research talent enhance the training and incentive mechanisms for key technical
personnel and build a high-level innovative R&D team capable of supporting the entire life cycle of
innovative drug development.
3. Risk in investment and merger
External investment is one of the key means through which the Company pursues strategic
transformation and upgrading. In recent years to support its strategic transformation toward
innovation-driven development the Company has continued to pursue investment and M&A
activities in the areas of innovative drugs aesthetic medicine and industrial microbiology resulting
in goodwill and long-term equity investment of a certain scale. If the operating performance of
investee or acquired companies fluctuates in the future the related goodwill or long-term equity
investment may be subject to impairment which could adversely affect the Company's operating
results for the current period. In addition post-investment management and business integration of
target companies place higher demands on the Company's management capabilities.Countermeasures: The Company exercises oversight over acquired subsidiaries through
control of Board of Directors and by appointing management and financial personnel to participate
in major decision-making and daily operations. The Company requires its controlling subsidiaries to
operate in compliance with the relevant internal control requirements applicable to listed companies.It has established comprehensive management systems for their day-to-day operations and ensured
their effective implementation. The Management of acquired subsidiaries maintains efficient
communication with the Company while daily operations and major decisions are strictly carried
out in accordance with relevant laws and regulations the Company's Articles of Association
management rules the Board of Directors and the Rules of Procedure for Shareholders' Meeting.From a risk management and control perspective the Company conducts business financial and tax
due diligence on target companies by engaging professional intermediaries and regularly carries out
special-purpose management audits. In addition the Company is committed to comprehensively
enhancing its capabilities in overall planning and coordination of business operations management
structures and financial management. It continuously strengthens resource sharing and synergies
with acquired subsidiaries enhances its capabilities in integrated business management and
coordinated operations and governance establishes a regular impairment testing mechanism
covering goodwill and long-term equity investment and further improves the comprehensiveness
scientific rigor and timeliness of post-investment management.
4. Risk in exchange rate fluctuation
The Company has remained committed to advancing its international development. In recent
years its international cooperation has continued to deepen its aesthetic medicine sales network has
expanded globally and its industrial microbiology segment has accelerated its expansion into
international markets. The proportion of its transactions settled in foreign currencies has been
steadily increasing. The fluctuation in exchange rate will affect the price of the Company's export
products cause exchange gains and losses to the Company and increase the operating costs thus
affecting the Company's assets liabilities and income further impacting its operation ability debt
repayment ability and profitability.Countermeasures: The Company will closely monitor exchange rate movements and
dynamically adjust its response strategies based on actual operating conditions to mitigate adverse
impacts. It will enhance awareness of foreign exchange risk prevention and improve its foreign
exchange risk management system. At the same time the Company will strengthen the professional
capabilities of its financial personnel and enhance their awareness of risk mitigation while making
effective use of financial instruments and other financial management measures to prudently
manage and mitigate the risks arising from exchange rate fluctuations.XI. Implementation of the market value management system and valuation enhancement
plan
Whether the Company formulates its market value management system.□Yes □No
Whether the Company discloses its valuation enhancement plan.□Yes□No
To strengthen its market value management further standardize its market value management
practices and practically safeguard the legitimate rights and interests of the Company its investors
and other interested stakeholders the Company has formulated its Market Value Management
System in compliance with relevant laws and regulations including the Company Law of the
People's Republic of China the Securities Law of the People's Republic of China the Several
Opinions of the State Council on Strengthening Regulation Forestalling Risks and Promoting
High-Quality Development of the Capital Market the Administrative Measures for the Disclosure
of Information of Listed Companies the No. 10 Guideline for the Supervision of Listed Companies -
Market Value Management as well as the Articles of Association and the Company's operational
realities. The system was deliberated and approved at the 32nd Meeting of the 10th Board of
Directors. Detailed information and the full text of the system can be found in the relevant
announcement disclosed by the Company on the website of Cninfo (http://www.cninfo.com.cn) on
April 18 2025.XII. Implementation status of the Action Plan for "Dual Enhancement of Quality and
Return"
Whether the Company discloses its Action Plan for "Dual Enhancement of Quality and Return".□Yes □No
The Company has formulated the Action Plan for "Dual Enhancement of Quality and Return"
to implement the guiding principles of "Activating the capital market and boosting investors'
confidence" put forward by the Political Bureau of the CPC Central Committee and of "Vigorously
improving the quality and investment value of listed companies taking more powerful and effective
measures to stabilize the market and confidence" emphasized at the executive meeting of the State
Council. The Plan aims to safeguard the interests of all shareholders continuously strengthen the
Company's core competitiveness and investment value and achieve high-quality efficient and
sustainable development. For details please refer to the Announcement on Advancing the
Implementation of the Action Plan for "Dual Enhancement of Quality and Return" (Announcement
No.: 2024-011) disclosed by the Company on the website of Cninfo (http://www.cninfo.com.cn) on
March 9 2024. The progress of the Action Plan is presented as follows:
(I) Focusing on core responsibilities and principal businesses while maintaining stable
operating performance and efficiency
The Company implemented the Action Plan for "Dual Enhancement of Quality and Return"
concentrated on four major business segments: pharmaceutical industry pharmaceutical distribution
aesthetic medicine and industrial microbiology. These segments have advanced in a coordinated
and in-depth manner ensuring stable operational performance and efficiency. In the first half of
2026 the Company recorded an operating revenue of RMB 22.067 billion representing a YoY
increase of 1.81%. The net profit attributable to shareholders of the listed company reached RMB
1.861 billion up 2.53% YoY. Net profit attributable to shareholders of the listed company excluding
non-recurring profit and loss stood at RMB 1.858 billion with a YoY increase of 5.44%. The net
cash flow generated from operating activities during the reporting period was RMB 2.499 billion
up 1.73% YoY. The operating cash inflow remained in good shape demonstrating robust earnings
quality and overall stable business performance of the Company.(II) Continuing innovative R&D to enhance core competitiveness
Adhering to the "research-driven and patient-centered" philosophy the Company places great
emphasis on innovation-driven R&D. In recent years annual R&D expenditures of the Company
have consistently surpassed RMB 1 billion.As of the date of the Report the Company's innovative drug R&D center is advancing 96
innovative drug pipeline projects. Since its establishment 6 years ago the Innovative Drug R&D
Center has obtained marketing authorization for 12 innovative products in total. During the
reporting period the NDA for Sailexin/Saijiening for the indication of Crohn's disease was
approved achieving 4 NDA/BLA applications 9 IND approvals and 14 innovative achievements
published at international conferences. In addition the DR10624 project was granted the
Breakthrough Therapy Designation in China for severe hypertriglyceridemia. The Company's key
projects DR10624 and HDM2005 were successfully selected for the 2026 National Science and
Technology Major Special Projects. During the reporting period the Company's R&D investment in
the pharmaceutical industry segment (excluding equity investment) amounted to RMB 1.208 billion
representing a YoY decrease of 18.58% among which the direct R&D expenditure reached RMB
1.062 billion down 9.56% year on year accounting for 13.30% of the revenue from the
pharmaceutical industrial segment.In recent years the Company has placed great emphasis on the protection of intellectual
property rights and the application of research outcomes with both the number of patent
applications and grants steadily increasing. The Company has filed a total of over 2000 patent
applications domestically and internationally over the years including more than 610 authorized
invention patents. Hangzhou Zhongmei Huadong Pharmaceutical Co. Ltd. a wholly-owned
subsidiary of the Company is a national intellectual property demonstration enterprise. It passed the
external audit by Zhongzhi (Beijing) Certification Co. Ltd. in November 2014 and became one of
the first 147 enterprises that passed the standards implementation certification. In October 2025 it
smoothly passed the audit of the enterprise intellectual property compliance management system
(Certificate No.: 165IP250489R0L).
During the reporting period the Company's patent application and maintenance work
proceeded smoothly. A total of 110 patent applications were filed including 86 invention patents
and 44 patents were authorized.(III) Improving corporate governance and enhancing the level of compliant operations
During the reporting period in accordance with the latest provisions of relevant laws
regulations and regulatory documents including the Company Law of the People's Republic of
China the Stock Listing Rules of the Shenzhen Stock Exchange the Self-Regulatory Guideline No. 1
for Listed Companies of the Shenzhen Stock Exchange — Standardized Operation of Main Board
Listed Companies and the Code of Corporate Governance for Listed Companies and in light of the
Company's actual circumstances the Company adopted the Management System for the
Remuneration of Directors and Senior Managers and revised the Responsible Marketing Policy
and the Administrative System for the Preparation and Disclosure of Financial Reports. The
continuous improvement of the Company's institutional framework has further optimized its
decision-making and deliberation processes bringing its corporate governance system more closely
in line with the requirements of market-oriented development and standardized operations. This has
provided a solid institutional foundation for sound and efficient business decision-making and
effectively safeguarded the legitimate rights and interests of the Company its shareholders and all
stakeholders.With regard to ESG the Company maintained an unwavering commitment to sustainable
development. A Sustainability (ESG) Committee has been established under the Board of Directors
to oversee ESG-related matters. The Company integrates the core ESG principles into corporate
development strategy and daily operations management guiding and innovating business practices
with a science-based approach to social responsibility. It upholds the idea of green manufacturing
actively supports China's "carbon neutrality and carbon peaking" goals operates in strict
compliance with laws and regulations with integrity and actively fulfills its social responsibilities.(IV) Prioritizing shareholder returns and sharing development achievements
The Company places strong emphasis on management innovation and strives to enhance its
market competitiveness through continuous improvements in operational excellence. Supported by
high-quality products superior commercialization capabilities compliant and efficient marketing
services differentiated market positioning forward-looking innovation-driven R&D layout and
comprehensive talent development the Company continues to exhibit long-term and resilient
growth. Since its listing the Company has made a total of 26 dividend distributions with
cumulative dividends amounting to RMB 9.89 billion providing shareholders with sustained and
stable investment returns.Pursuant to the Proposal on the Company's 2026 Semi-Annual Profit Distribution Plan which
was deliberated and approved at the seventh meeting of the eleventh session of the Company's
Board of Directors on August 25 2026 based on the Company's existing total share capital of
1753736848.00 shares the Company will distribute a cash dividend of RMB 3.50 (including tax)
for every 10 shares to all shareholders. No bonus shares will be issued and no capitalization of
capital reserves will be made. The total cash dividend is expected to amount to RMB
613807896.80 (including tax). The 2026 Semi-Annual Profit Distribution Plan falls within the
scope of authorization granted by the 2025 Annual Shareholders' Meeting to the Board of Directors
and therefore does not need to be submitted to the Shareholders' Meeting for deliberation and
approval.(V) Improving information disclosure and strengthening the communication with
investors
The Company consistently prioritizes the quality of information disclosure and utilizes high-
quality high-standard and easily understandable disclosures to comprehensively and accurately
convey its operational and developmental status to investors. To facilitate understanding of
company dynamics among international investors the Company publishes English versions of its
periodic reports further enhancing its international communication capabilities. Furthermore the
Company continuously innovates in the format of information disclosure introduces visual tools
such as "snapshot reports" to present its operational achievements and development plans in a more
intuitive manner enhancing the practicality and readability of information disclosure.The Company regarded investor relations management as a vital component of corporate
governance. It was committed to establishing smooth and efficient communication channels to
continuously enhance interaction quality with the capital market. Through diversified investor
communication activities the Company actively conveyed its operational achievements and
development strategies effectively safeguarded investors' right to information and strengthened
market recognition of the Company's long-term value.The Company proactively organized specialized activities such as investor Q&A sessions
performance briefing investor research events and the "Investor Reception Day" to provide in-
depth interpretations of its strategies and financial performance. The Company responds to
investors' inquiries through the Shenzhen Stock Exchange's Interactive Platform and has designated
personnel to answer investor hotlines. At the same time the Company promptly addresses investors'
concerns through its official email address and investor relations email address ensuring open and
effective communication channels.The Company has established a comprehensive new media communication matrix including
WeChat official account Tongshunhao account as well as Snowball and East Money corporate
accounts. The Company flexibly utilized various new media tools to convey the latest developments
such as operational performance BD project introductions R&D progress award information and
interpretations of regular reports to the capital market and a broad range of investors in a concise
and innovative manner.Section IV Corporate Governance Environment and Society
I. Changes in directors and senior managers of the Company
□Applicable□Not applicable
There were no changes in the Company's directors and senior managers during the reporting period. For details please refer to the
2025 Annual Report.
II. Profit distribution and conversion of capital reserve into share capital during the
reporting period
□Applicable □Not applicable
Number of bonus shares issued per 10 shares (shares) 0
Dividend distribution per 10 shares (RMB) (tax inclusive) 3.50
Share capital base for distribution plan (shares) 1753736848.00
Amount of cash dividends (RMB) (tax inclusive) 613807896.80
Amount of cash dividends in other ways (e.g. share repurchase)
0.00
(RMB)
Total amount of cash dividends (including other ways) (RMB) 613807896.80
Distributable profits (RMB) 7284510525.05
Proportion of total cash dividends (including other ways) to
100%
total profit distribution
Current situation of cash dividends
For companies at a mature stage of development with significant capital expenditure plans the cash dividend payout ratio shall
account for no less than 40% in the current profit distribution.Detailed description of the profit distribution or plan for conversion of capital reserve into share capital
The Company's 2026 Semi-Annual Profit Distribution Plan is as follows: based on the Company's existing total share capital of
1753736848.00 shares a cash dividend of RMB 3.50 (including tax) will be distributed for every 10 shares. No bonus shares
will be issued and no capitalization of capital reserves will be made. The total cash dividend to be distributed will amount to
RMB 613807896.80 (including tax) with the remaining undistributed profits carried forward for distribution in subsequent
years. If there is a change in the Company's share capital base prior to the implementation of this profit distribution plan the total
amount of the cash dividend will be adjusted in accordance with the principle that the distribution ratio per share remains
unchanged.This profit distribution plan complies with the requirements on profit distribution under the Company Law of the People's
Republic of China the Regulatory Guidelines for Listed Companies No. 3 — Cash Dividend of Listed Companies the Self-
Regulatory Guidelines for Listed Companies No. 1 — Standardized Operation of Main Board Listed Companies of the Shenzhen
Stock Exchange and other applicable laws regulations and regulatory documents as well as the Company's Articles of
Association. Accordingly the interim dividend plan is lawful compliant and reasonable.This profit distribution plan takes into full consideration the Company's current operating conditions and future funding
requirements as well as the reasonable expectations and investment returns of its investors. The plan is commensurate with the
Company's operating performance and future development and is consistent with its development plans. It will not have a material
impact on the Company's operating cash flow or affect its normal operations or long-term development and will not prejudice the
interests of the Company's shareholders particularly its minority shareholders.At the 2025 Annual Shareholders' Meeting held on May 20 2026 the Company approved the Proposal on Authorizing the Board
of Directors to Formulate the 2026 Interim Dividend Plan authorizing the Board of Directors to formulate specific dividend plans
in accordance with the resolution of the Shareholders' Meeting subject to the fulfillment of the conditions for profit distribution.The preconditions for the 2026 interim dividend are as follows: (1) the Company achieves stable growth in net profit attributable
to shareholders of the listed company in the current period; and (2) the Company's cash flow can meet the needs of normal
operations and sustainable development. The total amount of the interim dividend shall not exceed 50% of the net profit
attributable to shareholders of the listed company for the corresponding period and shall not be less than RMB 500 million (tax
inclusive). This 2026 semi-annual profit distribution scheme falls within the scope authorized by the 2025 Annual Shareholders'
Meeting resolution to the Board of Directors and does not require further approval by the Shareholders' Meeting.III. Implementation of the Company's equity incentive plan employee stock ownership plan
or other employee incentive measures
□Applicable □Not applicable
1. Equity incentive
(1) On August 8 2022 the Company convened the 2nd Meeting of the 10th Board of Directors
and the 2nd Meeting of the 10th Board of Supervisors on which the following proposals were
reviewed and approved: the Proposal on the Company's Restricted Stock Incentive Plan in 2022
(Draft) and Its Abstract the Proposal on Management Rules for the Implementation and
Assessment of the Company's Restricted Stock Incentive Plan in 2022 the Proposal on the
Management Rules of the Company's Restricted Stock Incentive Plan in 2022 and the Proposal on
Applying to the General Meeting of Shareholders for Authorizing the Board of Directors to Handle
Equity Incentive-related Matters. Independent directors provided their independent opinions on
whether this incentive plan is conducive to the Company's sustainable development and whether it
may harm the interests of the Company and all shareholders. For specific details please refer to the
relevant announcement published by the Company on CNINFO on August 10 2022.
(2) On August 10 2022 the Company disclosed the Announcement on Independent Directors
Publicly Soliciting Proxy Voting Rights on Cninfo (http://www.cninfo.com.cn). Mr. Wang Ruwei
an Independent Director of the Company acting as the convener and commissioned by other
independent directors publicly solicited proxy voting rights from all shareholders of the Company
for the proposals related to the Restricted Stock Incentive Plan in 2022 reviewed at the 1st
Extraordinary General Meeting of Shareholders in 2022 which was set to be convened on August
31 2022.
(3) From August 15 to 25 2022 the Company posted on its intranet the list of the first batch of
incentive recipients under the Restricted Stock Incentive Plan in 2022 for a total of 10 days. By the
end of the public announcement period on August 25 2022 the Board of Supervisors had not
received any objections against the incentive recipients from any individuals. On August 25 2022
the Board of Supervisors of the Company convened a meeting to review and approve the
Verification Opinions and Announcement Note on the List of the First Batch of Incentive Recipients
under the Company's Restricted Stock Incentive Plan in 2022. The Company then disclosed these
Verification Opinions and relevant announcements on Cninfo (http://www.cninfo.com.cn).(4) On August 31 2022 the Company convened the 1st Extraordinary General Meeting in
2022 on which the following proposals were reviewed and approved: the Proposal on the
Company's Restricted Stock Incentive Plan in 2022 (Draft) and Its Abstract the Proposal on
Management Rules for the Implementation and Assessment of the Company's Restricted Stock
Incentive Plan in 2022 the Proposal on the Management Rules of the Company's Restricted Stock
Incentive Plan in 2022 and the Proposal on Applying to the General Meeting of Shareholders for
Authorizing the Board of Directors to Handle Equity Incentive-related Matters. On the same day
the Company disclosed the Self-Inspection Report on Trading of Company Shares by Insiders and
Incentive Recipients under Restricted Stock Incentive Plan in 2022 and related announcements on
Cninfo (http://www.cninfo.com.cn). This incentive plan was approved at the Company's 1st
Extraordinary General Meeting in 2022 and the Board of Directors was authorized to implement
the Company's Restricted Stock Incentive Plan in 2022 and handle relevant matters according to the
laws and regulations.
(5) On October 27 2022 the Company convened the 4th Meeting of the 10th Board of
Directors and the 5th Meeting of the 10th Board of Supervisors on which the following proposals
were reviewed and approved: the Proposal on Adjustments of the Company's Restricted Stock
Incentive Plan in 2022 and the Proposal on Granting Restricted Stocks to the First Batch of
Incentive Recipients under the Restricted Stock Incentive Plan in 2022. The Board of Directors
confirmed that the grant conditions under the incentive plan were satisfied. The Board of
Supervisors re-verified the list of incentive recipients on the first grant date and provided opinions
on the adjustment and grant. The Company's independent directors agreed on the above proposals
with related reports prepared by the lawyers and independent financial advisers. On October 28
2022 the Company disclosed the relevant announcements on Cninfo (http://www.cninfo.com.cn).
(6) On November 9 2022 the Company disclosed the Announcement on Completion of
Registration of the First Grant of Restricted Stocks under the Restricted Stock Incentive Plan in
2022. The Company completed the registration of the restricted stocks initially granted under the
Restricted Stock Incentive Plan in 2022 and the listing date of the granted restricted stocks was
November 15 2022.
(7) On July 12 2023 the Company convened the 12th Meeting of the 10th Board of Directors
and the 8th Meeting of the 10th Board of Supervisors on which the following proposals were
reviewed and approved: the Proposal on Adjusting the Grant Price of Reserved Stocks under the
Restricted Stock Incentive Plan in 2022 and the Proposal on Granting Reserved Restricted Stocks to
Incentive Recipients under the Restricted Stock Incentive Plan in 2022. The Board of Directors
confirmed that reserved conditions of the incentive plan for granting restricted stocks were fulfilled
and the Board of Supervisors re-verified the list of incentive recipients on the date of granting
reserved stocks and provided opinions on the grant. The Company's independent directors agreed
on the above proposals with related reports prepared by the lawyers and independent financial
advisers. On the same day the Company disclosed the relevant announcement on CNINFO.
(8) From July 13 to 23 2023 the Company publicly displayed the list of incentive recipients
for the reserved restricted stocks under this Restricted Stock Incentive Plan through its OA system
for a total of 10 days. By the end of the public announcement period on July 23 2023 the Board of
Supervisors had not received any objections against the incentive recipients from any individuals.On July 26 2023 the Company convened a meeting of the Board of Supervisors on which the
following proposals were reviewed and approved: the Verification Opinions of the Board of
Supervisors and Announcement Note on the List of Incentive Recipients for Reserved Restricted
Stocks Granted under the Company's Restricted Stock Incentive Plan in 2022. On the same day the
Company disclosed the Verification Opinions of the Board of Supervisors and Announcement Note
on the List of Incentive Recipients for Reserved Restricted Stocks Granted under the Company's
Restricted Stock Incentive Plan in 2022 and related announcements on Cninfo
(http://www.cninfo.com.cn).
(9) On September 27 2023 the Company disclosed the Announcement on Completion of the
Reserved Grant under the Restricted Stock Incentive Plan in 2022. The Company completed the
registration of the reserved restricted stocks granted under the Restricted Stock Incentive Plan in
2022 and the listing date of the granted restricted stocks was September 28 2023.
(10) On November 21 2023 the Company convened the 18th Meeting of the 10th Board of
Directors and the 12th Meeting of the 10th Board of Supervisors on which the following proposals
were reviewed and approved: Proposal on the Fulfillment of Conditions for the First Restriction
Release Period of the Initial Grant of Restricted Stocks under the Restricted Stock Incentive Plan in
2022 the Proposal on Adjusting the Repurchase Price of the Restricted Stock Incentive Plan in
2022 and the Proposal on Repurchase and Cancellation of Certain Restricted Stocks. The Board of
Directors confirmed that the conditions for releasing restrictions during the first restriction release
period of the first grant of restricted stocks under the Restricted Stock Incentive Plan in 2022 had
been satisfied. Pursuant to the authorization granted by the Company's 1st Extraordinary General
Meeting in 2022 the Board of Directors approved the completion of the procedures for releasing
the restrictions on 1220940 restricted stocks under the first restriction release period for 108
incentive recipients. The Board of Directors also approved the repurchase and cancellation of a total
of 97800 restricted stocks that had been granted but not yet released corresponding to 4 incentive
recipients who were no longer eligible due to resignation and 2 incentive recipients who failed to
fully meet the individual performance assessment criteria for the first restriction release period. The
Company's independent directors issued concurring independent opinions on the relevant matters
and the Board of Supervisors provided verification opinions with related reports prepared by the
lawyers and independent financial advisers. On the same day the Company disclosed the relevant
announcement on CNINFO.
(11) On December 1 2023 the Company disclosed the Hint on Circulation of Restricted
Stocks Released during the First Restriction Release Period for First Grant of Restricted Stocks
under the Restricted Stock Incentive Plan in 2022. The restricted stocks released from the first
restriction release period of the first grant under the Restricted Stock Incentive Plan in 2022 became
tradable on December 5 2023.
(12) On December 8 2023 the Company convened its 2nd Extraordinary General Meeting in
2023 where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks and the
Proposal on Altering the Registered Capital and Amending the Articles of Association were
approved after review. On the same day the Company disclosed the Announcement on Reducing
Registered Capital by Repurchasing and Canceling Some Restricted Stocks and Notifying Creditors.As of January 24 2024 the benchmark date for capital verification i.e. within forty-five days from
the date when the Company announced the reduction of capital no creditor requested the Company
to pay off its debts or provide corresponding guarantees.
(13) On March 28 2024 the Company disclosed the Announcement on the Completion of the
Repurchase and Cancellation of Certain Restricted Stocks. On March 26 2024 the Company
completed the procedures for repurchase and cancellation of 97800 restricted stocks in Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited.
(14) On May 30 2024 the Company convened the 24th Meeting of the 10th Board of
Directors and the 16th meeting of the 10th Board of Supervisors during which the Proposal on
Adjusting the Repurchase Price of the Restricted Stock Incentive Plan in 2022 and the Proposal on
Repurchase and Cancellation of Certain Restricted Stocks were reviewed and approved. The Board
of Directors agreed to repurchase and cancel a total of 65000 restricted stocks that had been
granted but not yet released from restrictions corresponding to 5 incentive recipients who were no
longer eligible due to resignation. The Board of Supervisors provided verification opinions on the
relevant matters. with related reports prepared by the lawyers and independent financial advisers.On the same day the Company disclosed the relevant announcement on CNINFO.
(15) On June 18 2024 the Company convened its 1st Extraordinary General Meeting in 2024
where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks and the Proposal
on Expanding the Business Scope Altering the Registered Capital and Amending the "Articles of
Association" were reviewed and approved. On the same day the Company disclosed the
Announcement on Reducing Registered Capital by Repurchasing and Canceling Some Restricted
Stocks and Notifying Creditors. As of August 5 2024 the benchmark date for capital verification
i.e. within forty-five days from the date when the Company announced the reduction of capital no
creditor requested the Company to pay off its debts or provide corresponding guarantees.
(16) On August 29 2024 the Company disclosed the Announcement on the Completion of the
Repurchase and Cancellation of Certain Restricted Stocks. On August 27 2024 the Company
completed the procedures for repurchase and cancellation of 65000 restricted stocks in Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited.
(17) On October 10 2024 the Company convened the 28th Meeting of the 10th Board of
Directors and the 18th Meeting of the 10th Board of Supervisors. During these two meetings the
Proposal on the Fulfillment of the Release Conditions during the First Restriction Release Period
of the Reserved Restricted Stocks Granted under the Restricted Stock Incentive Plan in 2022 was
reviewed and approved. The Board of Directors confirmed that the conditions for releasing
restrictions during the first restriction release period of the reserved grant of restricted stocks under
the Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to the authorization granted
by the Company's 1st Extraordinary General Meeting in 2022 the Board of Directors approved the
completion of the procedures for releasing the restrictions on 192500 restricted stocks under the
first restriction release period for 18 incentive recipients. The Board of Supervisors provided
verification opinions on the relevant matters. with related reports prepared by the lawyers and
independent financial advisers. On the same day the Company disclosed the relevant
announcement on CNINFO.
(18) On October 24 2024 the Company disclosed the Hint on Circulation of Restricted Stocks
Released during the First Restriction Release Period of Reserved Restricted Stocks Granted under
the Restricted Stock Incentive Plan in 2022. The restricted stocks released from the first restriction
release period of the reserved grant under the Restricted Stock Incentive Plan in 2022 became
tradable on October 28 2024.
(19) On November 25 2024 the Company convened the 30th Meeting of the 10th Board of
Directors and the 20th Meeting of the 10th Board of Supervisors during which the following
proposals were reviewed and approved: Proposal on the Fulfillment of the Release Conditions
during the Second Restriction Release Period for First Grant of Reserved Restricted Stocks under
the Restricted Stock Incentive Plan in 2022 the Proposal on Adjusting the Repurchase Price of the
Restricted Stock Incentive Plan in 2022 and the Proposal on Repurchase and Cancellation of
Certain Restricted Stocks. The Board of Directors confirmed that the conditions for releasing
restrictions during the second restriction release period of the first grant of restricted stocks under
the Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to the authorization granted
by the Company's 1st Extraordinary General Meeting in 2022 the Board of Directors approved the
completion of the procedures for releasing the restrictions on 1063740 restricted stocks under the
second restriction release period for 90 incentive recipients. The Board of Directors also approved
the repurchase and cancellation of a total of 185500 restricted stocks that had been granted but not
yet released from restrictions corresponding to 1 incentive recipient who was no longer eligible due
to resignation 16 incentive recipients whose individual performance assessment results for the
second restriction release period were unqualified and 1 reserved incentive recipient whose
individual performance assessment results for the first restriction release period were unqualified.The Board of Supervisors provided verification opinions on the relevant matters. with related
reports prepared by the lawyers and independent financial advisers. On November 27 2024 the
Company disclosed the relevant announcements on Cninfo (http://www.cninfo.com.cn).
(20) On December 13 2024 the Company disclosed the Hint on Circulation of Restricted
Stocks Released during the Second Restriction Release Period for First Grant of Restricted Stocks
under the Restricted Stock Incentive Plan in 2022. The restricted stocks released from the second
restriction release period of the first grant under the Restricted Stock Incentive Plan in 2022 became
tradable on December 16 2024.
(21) On December 20 2024 the Company convened its 2nd Extraordinary General Meeting in
2024 where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks and the
Proposal on Expanding the Business Scope Altering the Registered Capital and Amending the
"Articles of Association" were reviewed and approved. On the same day the Company disclosed
the Announcement on Reducing Registered Capital by Repurchasing and Canceling Some
Restricted Stocks and Notifying Creditors. As of February 5 2025 the benchmark date for capital
verification i.e. within forty-five days from the date when the Company announced the reduction
of capital no creditor requested the Company to pay off its debts or provide corresponding
guarantees.
(22) On March 28 2025 the Company disclosed the Announcement on the Completion of the
Repurchase and Cancellation of Certain Restricted Stocks. On March 26 2025 the Company
completed the procedures for repurchase and cancellation of 185500 restricted stocks in Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited.
(23) On June 27 2025 the Company convened the 34th Meeting of the 10th Board of
Directors and the 24th Meeting of the 10th Board of Supervisors where the Proposal on Adjusting
the Repurchase Price of the Restricted Stock Incentive Plan in 2022 and the Proposal on
Repurchase and Cancellation of Certain Restricted Stocks and Reduction of the Company's
Registered Capital were reviewed and approved. The Board of Directors agreed to repurchase and
cancel a total of 56000 restricted stocks that had been granted but not yet released from restrictions
corresponding to 6 incentive recipients who were no longer eligible due to resignation and to
reduce the Company's registered capital accordingly. The Board of Supervisors provided
verification opinions on the relevant matters. with related reports prepared by the lawyers and
independent financial advisers. On July 1 2025 the Company disclosed the relevant announcement
on CNINFO.
(24) On July 16 2025 the Company convened its 1st Extraordinary General Meeting in 2025
where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks and Reduction of
the Company's Registered Capital was reviewed and approved. On the same day the Company
disclosed the Announcement on Reducing Registered Capital by Repurchasing and Canceling Some
Restricted Stocks and Notifying Creditors. As of September 1 2025 the benchmark date for capital
verification i.e. within forty-five days from the date when the Company announced the reduction
of capital no creditor requested the Company to pay off its debts or provide corresponding
guarantees.
(25) On September 11 2025 the Company disclosed the Announcement on the Completion of
Repurchase and Cancellation of Certain Restricted Stocks. On September 9 2025 the Company
completed the procedures for repurchase and cancellation of 56000 restricted stocks at Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited.
(26) On October 13 2025 the Company convened the 3rd Meeting of the 11th Board of
Directors where the Proposal on the Fulfillment of Conditions for the Second Restriction Release
Period of Reserved Restricted Stocks Granted under the Restricted Stock Incentive Plan in 2022
was reviewed and approved. The Board of Directors confirmed that the conditions for releasing
restrictions during the second restriction release period of the reserved restricted stocks granted
under the Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to the authorization
granted by the Company's 1st Extraordinary General Meeting in 2022 the Board of Directors
approved the completion of the procedures for releasing the restrictions on 175000 restricted stocks
under the second restriction release period for 16 incentive recipients. The Remuneration and
Appraisal Committee of the Board of Directors issued verification opinions on relevant matters
while lawyers and independent financial advisors provided corresponding reports. On October 15
2025 the Company disclosed the relevant announcements on Cninfo (http://www.cninfo.com.cn).
(27) On October 25 2025 the Company disclosed the Hint on Circulation of Restricted Stocks
Released during the Second Restriction Release Period of Reserved Restricted Stocks Granted
under the Restricted Stock Incentive Plan in 2022. The restricted stocks released from the second
restriction release period of the reserved restricted stocks granted under the Restricted Stock
Incentive Plan in 2022 became tradable on October 29 2025.
(28) On November 20 2025 the Company convened the 5th Meeting of the 11th Board of
Directors on which the following proposals were reviewed and approved: Proposal on the
Fulfillment of the Release Conditions during the Third Restriction Release Period for First Grant of
Reserved Restricted Stocks under the Restricted Stock Incentive Plan in 2022 the Proposal on
Adjusting the Repurchase Price of the Restricted Stock Incentive Plan in 2022 and the Proposal on
Repurchase and Cancellation of Certain Restricted Stocks. The Board of Directors believed that the
conditions for releasing restrictions during the third restriction release period of the first grant of
restricted stocks under the Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to
the authorization granted by the Company's 1st Extraordinary General Meeting in 2022 the Board
of Directors agreed to handle the releasing procedures for 1275120 restricted stocks for 77
incentive recipients during the third restriction release period and also approved the repurchase and
cancellation of a total of 284200 restricted stocks that had been granted but not yet released from
trading restrictions corresponding to 6 incentive recipients who were no longer eligible due to
resignation 16 incentive recipients whose individual performance assessment results for the third
restriction release period were unqualified 3 incentive recipients whose individual performance
assessment results for the restriction release period were qualified among the initially granted
incentive recipients 1 reserved incentive recipient who was no longer eligible due to resignation
and 2 incentive recipients whose individual performance evaluations for the second restriction
release period were unqualified among the incentive recipients of reserved grants. The
Remuneration and Appraisal Committee of the Board of Directors issued verification opinions on
relevant matters while lawyers and independent financial advisors provided corresponding reports.On November 22 2025 the Company disclosed the relevant announcements on Cninfo
(http://www.cninfo.com.cn).
(29) On December 6 2025 the Company disclosed the Hint on Circulation of Restricted
Stocks Released during the Third Restriction Release Period for First Grant of Restricted Stocks
under the Restricted Stock Incentive Plan in 2022. The restricted stocks released from the third
restriction release period of the first grant under the Restricted Stock Incentive Plan in 2022 became
tradable on December 10 2025.
(30) On December 9 2025 the Company convened its 2nd Extraordinary Shareholders'
Meeting in 2025 where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks
and the Proposal on Expanding the Business Scope Altering the Registered Capital and Amending
the "Articles of Association" were reviewed and approved. On the same day the Company
disclosed the Announcement on Reducing Registered Capital by Repurchasing and Canceling Some
Restricted Stocks and Notifying Creditors. As of January 23 2026 the benchmark date for capital
verification i.e. within forty-five days from the date when the Company announced the reduction
of capital no creditor requested the Company to pay off its debts or provide corresponding
guarantees.
(31) On March 7 2026 the Company disclosed the Announcement on the Completion of
Repurchase and Cancellation of Certain Restricted Stocks. On March 5 2026 the Company
completed the procedures for repurchase and cancellation of 284200 restricted stocks at Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited.
2. Implementation of employee stock ownership plan (ESOP)
□Applicable□Not applicable
3. Other employee incentives
□Applicable□Not applicable
IV. Disclosure of environmental information
Whether the listed company and its major subsidiaries are included in the list of enterprises legally required to disclose
environmental information
□Yes □No
Number of enterprises included in the list of enterprises legally required to disclose
6
environmental information (unit)
Index for accessing the environmental
No. Enterprise name
information disclosure report
Enterprise Environmental Information
Disclosure System (Zhejiang):
https://mlzj.sthjt.zj.gov.cn/eps/index/ente
rprise-
morecode=91330100609120774J&uniq
ueCode=f07f08c3e871f665&date=2026
&type=true&isSearch=true
Hangzhou Zhongmei Huadong
Pharmaceutical Co. Ltd.National Pollutant Discharge Permit
Management Information Platform
(Public Access):
https://permit.mee.gov.cn/perxxgkinfo/xk
gkAction!xkgk.actionxkgk=getxxgkCon
tent&dataid=5fce8b294f2542e8a5aa1841
f3251baa
Enterprise Environmental Information
Hangzhou Zhongmei Huadong Disclosure System (Zhejiang):
Pharmaceutical Jiangdong Co. Ltd. https://mlzj.sthjt.zj.gov.cn/eps/index/ente
rprise-
morecode=913301000678586850&uniq
ueCode=06bcf781a9a3946f&date=2026
&type=true
National Pollutant Discharge Permit
Management Information Platform
(Public Access):
https://permit.mee.gov.cn/perxxgkinfo/xk
gkAction!xkgk.actionxkgk=getxxgkCon
tent&dataid=1d7a321cefe745c99140308
e0eea1fa4
Filling of "Environmental Portrait"
enterprise environmental information
disclosure system for Jiangsu enterprises
(One File for One Enterprise):
http://ywxt.sthjt.jiangsu.gov.cn:18181/sp
sarchive-
webapp/web/viewRunner.htmlviewId=h
ttp%3A%2F%2Fywxt.sthjt.jiangsu.gov.c
n%3A18181%2Fspsarchive-
webapp%2Fweb%2Fsps%2Fviews%2Fy
fpl%2Fviews%2FyfplEntInfo%2Findex.j
3 Joyang Laboratories s&year=2026&isTemp=1&ticket=d38bd
b981d864df49c63d93039dc2d3f&versio
nId=1B45D14C2F334189899BB095514
6C3E6&spCode=3209240200002612
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Enterprise Environmental Information
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gekeyWord=%E5%AE%89%E5%BE%
BD%E7%BE%8E%E5%8D%8E%E9%
AB%98%E7%A7%91&hy=%5B%5D
Anhui Meihua Hi-Tech Pharmaceutical
4
Co. Ltd.National Pollutant Discharge Permit
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Wuhu Huaren Science and Technology
5 gekeyWord=%E8%8A%9C%E6%B9%
Co. Ltd.
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ymdkey=%E5%8D%8E%E4%B8%9C
%E5%8C%BB%E8%8D%AF%EF%BC
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%BC%89%E5%8D%9A%E5%8D%8E
%E5%88%B6%E8%8D%AF%E6%9C
Huadong Medicine (Xi'an) Bodyguard %89%E9%99%90%E5%85%AC%E5%
6
Pharmaceutical Co. Ltd. 8F%B8
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a0def606d
V. Social responsibility
In the process of its strategic transformation the Company strictly fulfills its corporate social
responsibilities and actively addresses the concerns of all stakeholders including shareholders
governments and regulatory agencies employees customers and patients suppliers communities
the public as well as partners The Company continues to deepen its engagement in public health
education expand access to medical services to a broader population and strive to provide
affordable healthcare solutions for patients. Meanwhile the Company remains committed to social
welfare initiatives uniting diverse forces to deliver warmth and care. By sharing cutting-edge
technologies and collaborating with leading experts and industry partners the Company also
continues to drive progress in both industry development and societal advancement.Section V Important Matters
I. Commitments that have been fulfilled by the commitment-related parties such as de facto
controller shareholders related parties acquirers and the Company during the reporting
period and those have not been fulfilled as of the end of the reporting period
□Applicable□Not applicable
During the reporting period the company did not have any commitments made by the de facto controller shareholders related
parties acquirers or the Company itself that were fulfilled during the reporting period or remained overdue as of the end of the
reporting period.II. Non-operational appropriation of funds of the listed company by controlling
shareholders and other related parties
□Applicable□Not applicable
During the reporting period there was no non-operational appropriation of funds of the listed company by controlling shareholders
and other related parties
III. Violations of external guarantees
□Applicable□Not applicable
There was no violation of external guarantee during the reporting period.IV. Appointment and dismissal of accounting firms
Whether the semi-annual financial report has been audited
□Yes□No
The Company's semi-annual report has not been audited.V. Explanations by the Board of Directors on the "Non-standard Audit Report" during the
reporting period
□Applicable□Not applicable
VI. Explanation of the Board of Directors on the situation relating to the "Non-standard
Audit Report" of the prior year
□Applicable□Not applicable
VII. Matters related to bankruptcy and reorganization
□Applicable□Not applicable
The Company was not involved in matters related to bankruptcy and reorganization during the reporting period.VIII. Litigation matters
Significant litigation and arbitration matters
□Applicable□Not applicable
During the reporting period the company was not involved in major litigation or arbitration matters.Other litigation matters
□Applicable □Not applicable
Adjudication
Basic Amount Whether an Execution of
Progress of result and
information involved estimated litigation Disclosure Disclosure
litigation impact of
of litigation (RMB liability is (arbitration) date index
(arbitration) litigation
(arbitration) 10000) formed judgments
(arbitration)
Some cases
are pending
trial while
some have
been
adjudicated
and the
relevant
Some cases
judgments
Summary of have been
have become
matters not The executed
effective (Of
meeting the summary of some
the
thresholds the litigation adjudicated
concluded
for disclosure 36959.63 No matters has cases are /
cases the
of major no significant under
total amount
litigations impact on the enforcement
involved is
(arbitrations) Company some cases
RMB
(China) are not
28.6118
adjudicated
million of
which RMB
18.2322
million
remains
pending
enforcement.)
Some first-
Summary of
instance
matters not The
judgments
meeting the summary of
have been
thresholds the litigation
All cases are issued and
for disclosure 6930 No matters has /
under trials are still
of major no significant
under appeal.litigations impact on the
some cases
(arbitrations) Company
are not
(overseas)
adjudicated
Hangzhou The first- This For details
The first-
Zhongmei instance litigation is please refer
instance
Huadong judgment has still pending to the
judgment has December
Pharmaceutic 11137.58 No been at the Announceme
not yet 15 2025
al Co. Ltd. received second- nt on the
become
the from the instance Receipt of
effective.Company's Zhejiang stage and the First-
wholly- High does not Instance
owned People's have a Civil
subsidiary Court. material Judgment by
demanded Zhongmei impact on the the Wholly-
that Qinghai Huadong has Company. Owned
Everest filed an Subsidiary
Cordyceps appeal in (Announcem
Sinensis Raw accordance ent No.:
Materials with the law. 2025-113)
Co. Ltd. The Supreme disclosed by
(Defendant People's the Company
1) and Court held a on the
Qinghai hearing on website of
Everest April 23 Cninfo
Cordyceps 2026. (http://www.Sinensis cninfo.com.c
Pharmaceutic n) on
al Co. Ltd. December
(Defendant 15 2025.
2)
immediately
cease all acts
of
infringement
of relevant
invention
patents of
Zhongmei
Huadong and
compensate
for damages.Note: During the reporting period the Company made positive progress in initiating administrative rulings and lawsuits against
20 infringing enterprises for violating the invention patent "Indobufen Crystal form D and Its Preparation Method" (Patent No.:
ZL202211596913.5) owned by Hangzhou Zhongmei Huadong Pharmaceutical Co. Ltd. (hereinafter referred to as "Zhongmei
Huadong") its wholly-owned subsidiary. The Company also actively defended against the patent invalidation request filed by the
accused infringing enterprises. As of August 25 2026 the progress is as follows:
1. Administrative rulings: Zhongmei Huadong has submitted administrative ruling applications to the Hangzhou Intellectual
Property Office Huzhou Intellectual Property Office Chengdu Intellectual Property Office Nanjing Intellectual Property Office
Guangdong Intellectual Property Office and Changsha Intellectual Property Office regarding patent infringement by 20 companies
demanding an immediate cessation of the infringing activities. As of August 25 2026 the Hangzhou Intellectual Property Office had
issued 4 administrative rulings all finding that infringement had occurred and ordering the involved enterprises to immediately cease
their infringing activities. In response to the above administrative rulings the involved enterprises filed administrative lawsuits
before the Hangzhou Intermediate People's Court with Zhongmei Huadong participating in the proceedings as a third party. One case
involving an administrative ruling was withdrawn due to jurisdictional issues one administrative ruling was upheld by the Hangzhou
Intermediate People's Court and the remaining 2 cases remain pending before the court. Guangdong Intellectual Property Office
issued an administrative decision in one case determining that the alleged infringement was not established. The decision further
clarified that if a subsequent effective judgment of a people's court makes a new determination regarding the scope of protection
afforded by the claims of the patent at issue Zhongmei Huadong may re-submit a request for an administrative ruling on the patent
infringement dispute based on the new effective decision confirming the validity and ownership of the patent rights. Zhongmei
Huadong has filed an administrative lawsuit against the administrative decision in accordance with the law. The administrative ruling
application filed with the Changsha Intellectual Property Office has been accepted but has not yet proceeded to an oral hearing. The
other applications for administrative rulings have been docketed and accepted by the intellectual property offices in the respective
regions and oral hearings have been completed but rulings have not yet been issued.
2. Judicial litigation: In addition to the administrative ruling applications Zhongmei Huadong filed patent infringement lawsuits
with the Hangzhou Intermediate People's Court in 2024 and 2025 respectively requesting an immediate cessation of the infringing
acts and compensation for losses. One case has obtained a judgment determining infringement and the involved enterprise has filed
an appeal with the Supreme People's Court which has been accepted and is pending adjudication; the other case has been accepted
by the Hangzhou Intermediate People's Court but has not yet been adjudicated.
3. Patent invalidation proceedings: As of August 25 2026 the Company has received 15 cases involving requests for patent
invalidation concerning the patent at issue. On March 12 2025 the China National Intellectual Property Administration (CNIPA)
issued decisions on the examination of requests for patent invalidation in all 5 cases simultaneously maintaining the patent at issue in
full force and effect. Four cases were closed following the withdrawal of the requests by the requesters and the remaining 6 cases
remain pending. In response to the Decision on the Review of a Request for an Invalidation Declaration issued by the China National
Intellectual Property Administration two invalidation petitioners dissatisfied with the decisions filed administrative lawsuits for
invalidation with the Beijing Intellectual Property Court which ruled to uphold the original decisions and dismissed the petitioners'
claims; two petitioners still dissatisfied with the judgment subsequently appealed to the Supreme People's Court which has
accepted the case but has not yet rendered a judgment.In addition during the reporting period the Company received: (1) a non-infringement confirmation lawsuit filed by a related
party of the involved enterprise with the Jinan Intermediate People's Court which ruled to reject all claims brought by the related
party of the involved enterprise; (2) an unfair competition lawsuit filed by the involved enterprise with the Yinchuan Intermediate
People's Court which was later voluntarily withdrawn by the involved enterprise; subsequently the involved enterprise filed another
unfair competition lawsuit with the Wucheng District People's Court in Jinhua City. As of August 25 2026 this case has been
transferred to the Gongshu District People's Court in Zhejiang Province for handling and has not yet been heard or adjudicated.IX. Penalties and rectification
□Applicable□Not applicable
The Company had no penalties or rectifications during the reporting period.X. Integrity of the Company and its controlling shareholders and de facto controllers
□Applicable □Not applicable
During the reporting period neither the Company its controlling shareholders nor its de facto controller has failed to comply with
any effective court judgment nor defaulted on any material debt obligations that had become due.XI. Significant related party transactions
1. Related party transactions related to daily operations
□Applicable □Not applicable
Relate
Pricin Propo Appro Settle Availa
d Whet
Type Conte g Price rtion ved ment ble
party her it
Relate of nts of policy of of the transa metho marke
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ction ds the
d party d d relate d nt of amou relate of sure sure
amou appro
party relatio party party d party simila nt d simila date index
nt ved
nship transa transa party transa r (RMB party r
(RMB amou
ction ction transa ction transa 1000 transa transa
1000 nt
ctions ctions 0) ctions ctions
0)
Marke
t price
Subsi deter
Hangz
diary mined
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contro Procu Procu ding
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lling remen remen to the Marke 2143. Marke CNIN
gic 0.11% 4003 No accept 24
shareh t of t of Comp t price 14 t price FO
Pharm ance 2026
older drugs drugs any's
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Scien lling remen remen Marke 1066. Marke CNIN
on- 0.05% 3050 No accept 24
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remen remen Marke 896.3 Marke CNIN
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Grand Subsi Procu Procu Marke Cash
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468 0.02% No 24
Scien of t of t of deter t price 03 accept t price FO
2026
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Pharm contro Procu Procu
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aceuti lling remen remen Marke 446.1 7823. Marke CNIN
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t price
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bank April
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nshan contro Procu Procu
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g lling remen remen Marke 271.0 Marke CNIN
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Scien contro Procu Procu
decisi bank April
ce lling remen remen Marke 254.4 Marke CNIN
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sheng lling remen remen Marke 222.8 7823. Marke CNIN
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cal lling remen remen Marke 115.1 7823. Marke CNIN
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any's Cash
n contro Procu Procu
decisi bank April
Grand lling remen remen Marke 7823. Marke CNIN
on- 14.34 0.00% No accept 24
Hoyo shareh t of t of t price 72 t price FO
makin ance 2026
Co. older drugs drugs
g bill
Ltd. of the
proce
Comp
dures
any
for
relate
d
party
transa
ctions
Marke
Huan t price
gshi deter
Feiyu mined
n accor
Pharm ding
Subsi
aceuti to the
diary
cal Comp
of
Co. any's Cash
contro Procu Procu
Ltd. decisi bank April
lling remen remen Marke 7823. Marke CNIN
(a on- 9.03 0.00% No accept 24
shareh t of t of t price 72 t price FO
subsid makin ance 2026
older drugs drugs
iary g bill
of the
of proce
Comp
Grand dures
any
Pharm for
aceuti relate
cal d
Group party
) transa
ctions
Beijin Subsi Marke
Cash
g diary Procu Procu t price
bank April
Huaji of remen remen deter Marke 7823. Marke CNIN
6.35 0.00% No accept 24
n contro t of t of mined t price 72 t price FO
ance 2026
Pharm lling drugs drugs accor
bill
aceuti shareh ding
cal older to the
Co. of the Comp
Ltd. Comp any's
any decisi
on-
makin
g
proce
dures
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Lei Subsi
to the
Yun diary
Comp
Shang of
any's Cash
Pharm contro Procu Procu
decisi bank April
aceuti lling remen remen Marke Marke CNIN
on- 2.53 0.00% 3346 No accept 24
cal shareh t of t of t price t price FO
makin ance 2026
Group older drugs drugs
g bill
Sales of the
proce
Co. Comp
dures
Ltd. any
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
Leiyu ding
Subsi
nshan to the
diary
g Comp
of
Healt any's Cash
contro Procu Procu
h decisi bank April
lling remen remen Marke Marke CNIN
Techn on- 0.95 0.00% 3346 No accept 24
shareh t of t of t price t price FO
ology makin ance 2026
older drugs drugs
(Suzh g bill
of the
ou) proce
Comp
Co. dures
any
Ltd. for
relate
d
party
transa
ctions
Grand Subsi Contr Contr Marke Marke 166.1 0.01% 1796. No Cash Marke April CNIN
Life diary act act t price t price 8 4 bank t price 24 FO
Scien of manuf manuf deter accept 2026
ces contro acturi acturi mined ance
(Shan lling ng ng accor bill
dong) shareh and and ding
Co. older other other to the
Ltd. of the servic servic Comp
Comp es es any's
any decisi
on-
makin
g
proce
dures
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Subsi
to the
diary
Comp
of
Grand any's Cash
contro
Bay Confe Confe decisi bank April
lling Marke Marke CNIN
Hotel rence rence on- 13.81 0.00% 57.22 Yes accept 24
shareh t price t price FO
Beijin fee fee makin ance 2026
older
g g bill
of the
proce
Comp
dures
any
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
Subsi
accor
diary
ding
of
Grand to the Cash
contro
Bay Comp bank April
lling Servic Servic Marke Marke CNIN
Hotel any's 26.15 0.00% 57.22 Yes accept 24
shareh e fee e fee t price t price FO
Beijin decisi ance 2026
older
g on- bill
of the
makin
Comp
g
any
proce
dures
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
Beijin
ding
g Subsi
to the
Grand diary
Comp
Innov of
Prope Prope any's Cash
ation contro
rty rty decisi bank April
Prope lling Marke Marke CNIN
mana mana on- 28.68 0.00% 57.22 Yes accept 24
rty shareh t price t price FO
geme geme makin ance 2026
Mana older
nt fee nt fee g bill
geme of the
proce
nt Comp
dures
Co. any
for
Ltd.relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Subsi
to the
Xi'an diary
Contr Contr Comp
Grand of
act act any's Cash
Deten contro
manuf manuf decisi bank Augus
Pharm lling Marke Marke CNIN
acturi acturi on- 17.92 0.00% 0.00 Yes accept t 24
aceuti shareh t price t price FO
ng ng makin ance 2026
cal older
servic servic g bill
Co. of the
es es proce
Ltd. Comp
dures
any
for
relate
d
party
transa
ctions
Marke
t price
Chon deter
Assoc
gqing mined
iate of Cash
Peg- accor
the Inspec Inspec bank April
Bio ding Marke Marke CNIN
Comp tion tion 8.02 0.00% 4000 No accept 24
Bioph to the t price t price FO
any's fee fee ance 2026
arm Comp
subsid bill
Co. any's
iary
Ltd. decisi
on-
makin
g
proce
dures
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Subsi
to the
diary
Comp
of
Grand any's Cash
contro
Bay Confe Confe decisi bank April
lling Marke Marke CNIN
Hotel rence rence on- 0.36 0.00% 57.22 Yes accept 24
shareh t price t price FO
Zhuha fee fee makin ance 2026
older
i g bill
of the
proce
Comp
dures
any
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
Suzho ding
Subsi
u to the
diary
Leiyu Comp
of
nshan any's Cash
contro
g Sales Sales decisi bank April
lling Marke 801.9 Marke CNIN
Sinop of of on- 0.04% 856 Yes accept 24
shareh t price 5 t price FO
harm drugs drugs makin ance 2026
older
Chain g bill
of the
Store proce
Comp
Co. dures
any
Ltd. for
relate
d
party
transa
ctions
Anhui Subsi Marke
Leiyu diary t price Cash
nshan of Sales Sales deter bank April
Marke 623.7 Marke CNIN
g contro of of mined 0.03% 856 Yes accept 24
t price 4 t price FO
Pharm lling drugs drugs accor ance 2026
aceuti shareh ding bill
cal older to the
Co. of the Comp
Ltd. Comp any's
any decisi
on-
makin
g
proce
dures
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Yunna Subsi
to the
n diary
Comp
Leiyu of
any's Cash
nshan contro
Sales Sales decisi bank April
g lling Marke 132.7 Marke CNIN
of of on- 0.01% 856 Yes accept 24
Pharm shareh t price 2 t price FO
drugs drugs makin ance 2026
aceuti older
g bill
cal of the
proce
Co. Comp
dures
Ltd. any
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Subsi
Hubei to the
diary
Grand Comp
of
Life any's Cash
contro
Scien Sales Sales decisi bank April
lling Marke Marke CNIN
ce & of of on- 57.61 0.00% 60 Yes accept 24
shareh t price t price FO
Techn drugs drugs makin ance 2026
older
ology g bill
of the
Co. proce
Comp
Ltd. dures
any
for
relate
d
party
transa
ctions
Beijin Subsi Sales Sales Marke Marke Cash Marke April CNIN
57.35 0.00% 60 Yes
g diary of of t price t price bank t price 24 FO
Grand of drugs drugs deter accept 2026
Joham contro mined ance
u lling accor bill
Pharm shareh ding
aceuti older to the
cal of the Comp
Ltd. Comp any's
any decisi
on-
makin
g
proce
dures
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Subsi
Hangz to the
diary
hou Comp
of
Grand any's Cash
contro
Biolo Sales Sales decisi bank April
lling Marke Marke CNIN
gic of of on- 38.86 0.00% 135 No accept 24
shareh t price t price FO
Pharm drugs drugs makin ance 2026
older
aceuti g bill
of the
cal proce
Comp
Inc. dures
any
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
Guan Subsi accor
gdong diary ding
Leiyu of to the
Cash
nshan contro Comp
Sales Sales bank April
g lling any's Marke Marke CNIN
of of 17.96 0.00% 856 Yes accept 24
Pharm shareh decisi t price t price FO
drugs drugs ance 2026
aceuti older on-
bill
cal of the makin
Co. Comp g
Ltd. any proce
dures
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Guipi Subsi
to the
ng diary
Comp
Shuya of
any's Cash
ng contro
Sales Sales decisi bank April
Plasm lling Marke Marke CNIN
of of on- 8.58 0.00% 34 No accept 24
a shareh t price t price FO
drugs drugs makin ance 2026
Collec older
g bill
tion of the
proce
Co. Comp
dures
Ltd. any
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Subsi
Lei to the
diary
Yunsh Comp
of
ang any's Cash
contro
Pharm Sales Sales decisi bank April
lling Marke Marke CNIN
aceuti of of on- 6.01 0.00% 856 Yes accept 24
shareh t price t price FO
cal drugs drugs makin ance 2026
older
Group g bill
of the
Co. proce
Comp
Ltd. dures
any
for
relate
d
party
transa
ctions
Marke
t price
Subsi
deter
diary
Grand mined
of
Pharm accor Cash
contro
aceuti Sales Sales ding bank April
lling Marke Marke CNIN
cal of of to the 4.82 0.00% 856 Yes accept 24
shareh t price t price FO
(Xi'an drugs drugs Comp ance 2026
older
) Co. any's bill
of the
Ltd. decisi
Comp
on-
any
makin
g
proce
dures
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Danle Subsi
to the
ng diary
Comp
Shuya of
any's Cash
ng contro
Sales Sales decisi bank April
Plasm lling Marke Marke CNIN
of of on- 3.5 0.00% 34 No accept 24
a shareh t price t price FO
drugs drugs makin ance 2026
Collec older
g bill
tion of the
proce
Co. Comp
dures
Ltd. any
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Chang Subsi
to the
ning diary
Comp
Shuya of
any's Cash
ng contro
Sales Sales decisi bank April
Plasm lling Marke Marke CNIN
of of on- 2.55 0.00% 34 No accept 24
a shareh t price t price FO
drugs drugs makin ance 2026
Collec older
g bill
tion of the
proce
Co. Comp
dures
Ltd. any
for
relate
d
party
transa
ctions
Jiangy Subsi Marke
ou diary t price
Cash
Shuya of deter
Sales Sales bank April
ng contro mined Marke Marke CNIN
of of 2.55 0.00% 34 No accept 24
Plasm lling accor t price t price FO
drugs drugs ance 2026
a shareh ding
bill
Collec older to the
tion of the Comp
Co. Comp any's
Ltd. any decisi
on-
makin
g
proce
dures
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Subsi
Santai to the
diary
Shuya Comp
of
ng any's Cash
contro
Plasm Sales Sales decisi bank April
lling Marke Marke CNIN
a of of on- 2.39 0.00% 34 No accept 24
shareh t price t price FO
Collec drugs drugs makin ance 2026
older
tion g bill
of the
Co. proce
Comp
Ltd. dures
any
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Zizho Subsi
to the
ng diary
Comp
Shuya of
any's Cash
ng contro
Sales Sales decisi bank April
Plasm lling Marke Marke CNIN
of of on- 2.39 0.00% 34 No accept 24
a shareh t price t price FO
drugs drugs makin ance 2026
Collec older
g bill
tion of the
proce
Co. Comp
dures
Ltd. any
for
relate
d
party
transa
ctions
Grand Subsi Sales Sales Marke Cash April
Marke Marke CNIN
Medic diary of of t price 2.31 0.00% 856 Yes bank 24
t price t price FO
al of drugs drugs deter accept 2026
Nutrit contro mined ance
ion lling accor bill
Scien shareh ding
ce older to the
(Wuh of the Comp
an) Comp any's
Co. any decisi
Ltd. on-
makin
g
proce
dures
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
Miany
accor
ang
ding
Anzh Subsi
to the
ou diary
Comp
Distri of
any's Cash
ct contro
Sales Sales decisi bank April
Shuya lling Marke Marke CNIN
of of on- 2.07 0.00% 34 No accept 24
ng shareh t price t price FO
drugs drugs makin ance 2026
Plasm older
g bill
a of the
proce
Collec Comp
dures
tion any
for
Co.relate
Ltd.d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Contr to the
China olling Comp Cash
Grand shareh Sales Sales any's bank April
Marke Marke CNIN
Enter older of of decisi 0.64 0.00% 856 Yes accept 24
t price t price FO
prises of the drugs drugs on- ance 2026
Inc. Comp makin bill
any g
proce
dures
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Subsi
to the
Grand diary
Comp
Pharm of
any's Cash
aceuti contro
Sales Sales decisi bank April
cal lling Marke Marke CNIN
of of on- 0.25 0.00% 60 Yes accept 24
(Xiant shareh t price t price FO
drugs drugs makin ance 2026
ao) older
g bill
Co. of the
proce
Ltd. Comp
dures
any
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
Grand ding
Subsi
Life to the
diary
Scien Comp
of
ces any's Cash
contro
(Hang Sales Sales decisi bank April
lling Marke Marke CNIN
zhou) of of on- 0.02 0.00% 135 No accept 24
shareh t price t price FO
Pharm drugs drugs makin ance 2026
older
aceuti g bill
of the
cal proce
Comp
Co. dures
any
Ltd. for
relate
d
party
transa
ctions
Marke
t price
Subsi deter
Xi'an diary mined
Grand of accor
Cash
Deten contro Agenc Agenc ding
bank April
Pharm lling y y to the Marke 1244. 3840. Marke CNIN
0.06% No accept 24
aceuti shareh servic servic Comp t price 87 1 t price FO
ance 2026
cal older es es any's
bill
Co. of the decisi
Ltd. Comp on-
any makin
g
proce
dures
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Guan Subsi
to the
gdong diary
Comp
Leiyu of
Infor Infor any's Cash
nshan contro
matio matio decisi bank April
g lling Marke 304.2 3570. Marke CNIN
n n on- 0.01% No accept 24
Pharm shareh t price 3 65 t price FO
servic servic makin ance 2026
aceuti older
es es g bill
cal of the
proce
Co. Comp
dures
Ltd. any
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Subsi
Lei to the
diary
Yunsh Comp
of
ang Infor Infor any's Cash
contro
Pharm matio matio decisi bank April
lling Marke 282.5 3570. Marke CNIN
aceuti n n on- 0.01% No accept 24
shareh t price 9 65 t price FO
cal servic servic makin ance 2026
older
Group es es g bill
of the
Co. proce
Comp
Ltd. dures
any
for
relate
d
party
transa
ctions
Anhui Subsi Marke
Leiyu diary t price
nshan of Infor Infor deter Cash
g contro matio matio mined bank April
Marke 226.8 3570. Marke CNIN
Pharm lling n n accor 0.01% No accept 24
t price 5 65 t price FO
aceuti shareh servic servic ding ance 2026
cal older es es to the bill
Co. of the Comp
Ltd. Comp any's
any decisi
on-
makin
g
proce
dures
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Chang Subsi
to the
chun diary
Comp
Lei of
Infor Infor any's Cash
Yun contro
matio matio decisi bank April
Shang lling Marke 216.5 3570. Marke CNIN
n n on- 0.01% No accept 24
Pharm shareh t price 9 65 t price FO
servic servic makin ance 2026
aceuti older
es es g bill
cal of the
proce
Co. Comp
dures
Ltd. any
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Yunna Subsi
to the
n diary
Comp
Leiyu of
Infor Infor any's Cash
nshan contro
matio matio decisi bank April
g lling Marke 3570. Marke CNIN
n n on- 85.38 0.00% No accept 24
Pharm shareh t price 65 t price FO
servic servic makin ance 2026
aceuti older
es es g bill
cal of the
proce
Co. Comp
dures
Ltd. any
for
relate
d
party
transa
ctions
Chon Assoc Techn Techn Marke Cash
April
gqing iate of ical ical t price Marke bank Marke CNIN
76.7 0.00% 376.7 No 24
Peg- the servic servic deter t price accept t price FO
2026
Bio Comp es es mined ance
Bioph any's accor bill
arm subsid ding
Co. iary to the
Ltd. Comp
any's
decisi
on-
makin
g
proce
dures
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Chang Subsi
to the
shu diary
Comp
Lei of
Infor Infor any's Cash
Yun contro
matio matio decisi bank April
Shang lling Marke 3570. Marke CNIN
n n on- 51.12 0.00% No accept 24
Pharm shareh t price 65 t price FO
servic servic makin ance 2026
aceuti older
es es g bill
cal of the
proce
Co. Comp
dures
Ltd. any
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
Subsi ding
Grand diary to the
Life of Comp
Cash
Scien contro Techn Techn any's
bank April
ces lling ical ical decisi Marke Marke CNIN
12 0.00% 12.72 No accept 24
(Shan shareh servic servic on- t price t price FO
ance 2026
dong) older es es makin
bill
Co. of the g
Ltd. Comp proce
any dures
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Subsi
to the
diary
Grand Comp
of
Pharm any's Cash
contro Techn Techn
aceuti decisi bank April
lling ical ical Marke 3570. Marke CNIN
cal on- 7.92 0.00% No accept 24
shareh servic servic t price 65 t price FO
(Xi'an makin ance 2026
older es es
) Co. g bill
of the
Ltd. proce
Comp
dures
any
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Grand Subsi
Trans Trans to the
Shuya diary
portati portati Comp
ng of
on on any's Cash
Life contro
and and decisi bank April
Scien lling Marke Marke CNIN
wareh wareh on- 5.29 0.00% 10 No accept 24
ces shareh t price t price FO
ousin ousin makin ance 2026
(Chen older
g g g bill
gdu) of the
servic servic proce
Co. Comp
e e dures
Ltd. any
for
relate
d
party
transa
ctions
Marke
t price
deter
Subsi
mined
Hangz diary
accor
hou of Prope Prope
ding Cash
Sihan contro rty rty
to the bank April
Biotec lling and and Marke 3570. Marke CNIN
Comp 3.01 0.00% No accept 24
hnolo shareh other other t price 65 t price FO
any's ance 2026
gy older servic servic
decisi bill
Co. of the es es
on-
Ltd. Comp
makin
any
g
proce
dures
for
relate
d
party
transa
ctions
Marke
t price
deter
mined
accor
ding
Other
to the
Beijin enterp
Comp
g rises
any's Cash
Yanhu contro House House
decisi bank April
ang lled s and s and Marke 121.7 Marke CNIN
on- 0.01% 0 Yes accept 24
Real by the buildi buildi t price 7 t price FO
makin ance 2026
Estate de ngs ngs
g bill
Co. facto
proce
Ltd. contro
dures
ller
for
relate
d
party
transa
ctions
1486 3994
Total -- -- -- -- -- -- -- --
0.57 3.53
Details of significant sales returns Not applicable
For 2026 the Company and its subsidiaries expect to enter into routine related party
transactions with related parties in an aggregate amount of RMB 399.4353 million
Estimated total amount of daily including RMB 355.6683 million in transactions with enterprises affiliated with China
related party transactions expected Grand Enterprises and RMB 43.7670 million in transactions with other related enterprises.to occur in the current period by For details please refer to the Announcement on the Estimated Routine Related Party
category and the actual fulfillment Transactions for 2026 disclosed by the Company on the website of Cninfo on April 24
during the reporting period (if any) 2026. In the first half of 2026 the total amount of daily related party transactions between
the Company and its subsidiaries and related parties was RMB 148.6057 million which did
not exceed the expected total amount.Reasons for significant differences
between transaction prices and Not applicable
market prices (if applicable)
2. Related party transactions involving the acquisition or selling assets and equity
□Applicable□Not applicable
During the reporting period the company did not have any related party transactions arising from the acquisition or sale of assets
or equity interests.
3. Related party transactions of joint investments abroad
□Applicable□Not applicable
The company did not have any related party transactions of joint investments abroad during the reporting period.4. Related party receivables and payables
□Applicable□Not applicable
The company did not have any related credit and debt transactions during the reporting period.
5. Transactions with related party financial companies
□Applicable□Not applicable
There was no deposit loan credit or other financial business among the Company the finance company with which the Company
has established a relationship and the related parties.
6. Transactions between the Company's controlled financial subsidiaries and related parties
□Applicable□Not applicable
There was no deposit loan credit facility or other financial transactions between the finance companies controlled by the
Company and related parties.
7. Other major related party transactions
□Applicable□Not applicable
The Company did not have other significant related party transactions during the reporting period.XII. Significant contracts and fulfillment
1. Entrustment contracting and leasing
(1) Trusteeship
□Applicable□Not applicable
The company did not have trusteeship during the reporting period.
(2) Contracting
□Applicable□Not applicable
The company did not have contracting during the reporting period.
(3) Leasing
□Applicable □Not applicable
Lease description
Refer to the relevant content in "Section VIII Financial Report - VII. Notes to consolidated financial statement items 82.Leasing".Items that brought gains and losses to the Company amounting to more than 10% of the Company's total profit during the
reporting period
□Applicable□Not applicable
There was no leasing item that brought gains and losses to the Company amounting to more than 10% of the Company's total
profit during the reporting period.
2. Important guarantees
□Applicable □Not applicable
Unit: RMB 10000
External guarantees by the Company and its subsidiaries (excluding guarantees for subsidiaries)
Disclosu
re date
Whether
of
Name of Actual Whether it is a
announc Actual Type of Counter-
guarante Guarante guarante Collatera Guarante it has guarante
ement occurren guarante guarante
e e quota ed l (if any) e period been e for
regardin ce date e e (if any)
recipient amount fulfilled related
g the
parties
guarante
e quota
The company's guarantees for its subsidiaries
Disclosu
re date
Whether
of
Name of Actual Whether it is a
announc Actual Type of Counter-
guarante Guarante guarante Collatera Guarante it has guarante
ement occurren guarante guarante
e e quota ed l (if any) e period been e for
regardin ce date e e (if any)
recipient amount fulfilled related
g the
parties
guarante
e quota
Hangzho
u
Zhongm Joint and
ei several
April 18 August
Huadon 155000 500 liability None None 1 year No No
2024 26 2024
g guarante
Pharmac e
eutical
Co. Ltd.Hangzho
u
Zhongm Joint and
ei several
April 18 February
Huadon 155000 7150 liability None None 1 year No No
2025 27 2026
g guarante
Pharmac e
eutical
Co. Ltd.Hangzho
u
Zhongm Joint and
ei several
April 24 May 22
Huadon 115000 355 liability None None 1 year No No
2026 2026
g guarante
Pharmac e
eutical
Co. Ltd.Hangzho April 24 115000 June 25 13434 Joint and None None 1 year No No
u 2026 2026 several
Zhongm liability
ei guarante
Huadon e
g
Pharmac
eutical
Co. Ltd.Huadon
g
Medicin
e Supply
April 19
Chain 20000 10 years No No
2019
Manage
ment
(Jinhua)
Co. Ltd.Huadon
g
Medicin Joint and
e (Xi'an) several
July 22 July 19
Bodygua 5284.7 5285 liability None None 2 years No No
2024 2024
rd guarante
Pharmac e
eutical
Co. Ltd.Huadon
g
Medicin Joint and
e (Xi'an) several
April 18 June 23
Bodygua 37000 25684 liability None None 1 year No No
2025 2025
rd guarante
Pharmac e
eutical
Co. Ltd.Huadon
g
Medicin
e (Xi'an)
April 24
Bodygua 37000 1 year No No
2026
rd
Pharmac
eutical
Co. Ltd.Shaanxi
Bohua
(Weinan
April 24
) 30000 1 year No No
2026
Pharmac
eutical
Co. Ltd.Huadon
g Joint and
Medicin several
April 18 January
e 16000 1900 liability None None 1 year No No
2025 14 2026
Ningbo guarante
Sales e
Co. Ltd.Huadon
g Joint and
Medicin several
April 18 March
e 16000 1900 liability None None 1 year No No
2025 16 2026
Ningbo guarante
Sales e
Co. Ltd.Huadon
g Joint and
Medicin several
April 18 March
e 16000 2000 liability None None 1 year No No
2025 26 2026
Ningbo guarante
Sales e
Co. Ltd.Huadon
g Joint and
Medicin several
April 24 May 21
e 18000 2850 liability None None 1 year No No
2026 2026
Ningbo guarante
Sales e
Co. Ltd.Huadon
g Joint and
Medicin several
April 24 May 25
e 18000 2850 liability None None 1 year No No
2026 2026
Ningbo guarante
Sales e
Co. Ltd.Huadon
g Joint and
Medicin several
April 24 June 15
e 18000 2850 liability None None 1 year No No
2026 2026
Ningbo guarante
Sales e
Co. Ltd.Huadon Joint and
g several
April 24 June 16
Medicin 15000 3800 liability None None 1 year No No
2026 2026
e Jinhua guarante
Co. Ltd. e
Huadon Joint and
g several
April 24 June 23
Medicin 15000 4750 liability None None 1 year No No
2026 2026
e Jinhua guarante
Co. Ltd. e
Huadon
Joint and
g
several
Medicin April 18 January
19300 4750 liability None None 1 year No No
e 2025 8 2026
guarante
Huzhou
e
Co. Ltd.Huadon
Joint and
g
several
Medicin April 18 January
19300 1900 liability None None 1 year No No
e 2025 14 2026
guarante
Huzhou
e
Co. Ltd.Huadon
Joint and
g
several
Medicin April 18 March
19300 2850 liability None None 1 year No No
e 2025 20 2026
guarante
Huzhou
e
Co. Ltd.Huadon
Joint and
g
several
Medicin April 18 March
19300 1000 liability None None 1 year No No
e 2025 26 2026
guarante
Huzhou
e
Co. Ltd.Huadon
Joint and
g
several
Medicin April 24 May 21
19300 2850 liability None None 1 year No No
e 2026 2026
guarante
Huzhou
e
Co. Ltd.Huadon
Joint and
g
several
Medicin April 24 June 22
19300 2850 liability None None 1 year No No
e 2026 2026
guarante
Huzhou
e
Co. Ltd.Huadon
g Joint and
Medicin several
April 18 January
e 20000 1900 liability None None 1 year No No
2025 14 2026
Shaoxin guarante
g Co. e
Ltd.Huadon
g Joint and
Medicin several
April 18 March
e 20000 1900 liability None None 1 year No No
2025 19 2026
Shaoxin guarante
g Co. e
Ltd.Huadon
g Joint and
Medicin several
April 18 March
e 20000 3800 liability None None 1 year No No
2025 25 2026
Shaoxin guarante
g Co. e
Ltd.Huadon
g Joint and
Medicin several
April 18 March
e 20000 2000 liability None None 1 year No No
2025 26 2026
Shaoxin guarante
g Co. e
Ltd.Huadon Joint and
g several
April 24 May 21
Medicin 20000 2850 liability None None 1 year No No
2026 2026
e guarante
Shaoxin e
g Co.Ltd.Huadon
g Joint and
Medicin several
April 24 June 15
e 20000 2850 liability None None 1 year No No
2026 2026
Shaoxin guarante
g Co. e
Ltd.Huadon
g
Medicin
Joint and
e
several
(Hangzh April 18 April 23
5000 76 liability None None 1 year No No
ou) 2025 2026
guarante
Biologic
e
al
Product
Co. Ltd.Huadon
g
Medicin
Joint and
e
several
(Hangzh April 24 April 29
5000 539 liability None None 1 year No No
ou) 2026 2026
guarante
Biologic
e
al
Product
Co. Ltd.Huadon
g
Medicin
Joint and
e
several
(Hangzh April 24 April 29
5000 237 liability None None 1 year No No
ou) 2026 2026
guarante
Biologic
e
al
Product
Co. Ltd.Huadon
g
Medicin
Joint and
e
several
(Hangzh April 24 June 25
5000 247 liability None None 1 year No No
ou) 2026 2026
guarante
Biologic
e
al
Product
Co. Ltd.Huadon
g
Medicin Joint and
e several
April 24 June 25
(Hangzh 5000 30 liability None None 1 year No No
2026 2026
ou) guarante
Biologic e
al
Product
Co. Ltd.Huadon
g
Medicin
Joint and
e
several
(Hangzh April 24 June 25
5000 16 liability None None 1 year No No
ou) 2026 2026
guarante
Biologic
e
al
Product
Co. Ltd.Huadon
g
Medicin
Joint and
e
several
(Hangzh April 24 June 25
5000 29 liability None None 1 year No No
ou) 2026 2026
guarante
Biologic
e
al
Product
Co. Ltd.Joyang
April 24
Laborato 5000 1 year No No
2026
ries
Huadon
g Joint and
Proporti
Medicin several
April 18 August onal
e 24000 1000 liability None 1 year No No
2025 6 2025 guarante
Wenzho guarante
e
u Co. e
Ltd.Huadon
g Joint and
Proporti
Medicin several
April 18 August onal
e 24000 1000 liability None 1 year No No
2025 14 2025 guarante
Wenzho guarante
e
u Co. e
Ltd.Huadon
g Joint and
Proporti
Medicin several
April 18 March onal
e 24000 215 liability None 1 year No No
2025 26 2026 guarante
Wenzho guarante
e
u Co. e
Ltd.Huadon
g Joint and
Proporti
Medicin several
April 18 March onal
e 24000 1000 liability None 1 year No No
2025 26 2026 guarante
Wenzho guarante
e
u Co. e
Ltd.Huadon Joint and
Proporti
g several
April 18 March onal
Medicin 24000 1000 liability None 1 year No No
2025 30 2026 guarante
e guarante
e
Wenzho e
u Co.Ltd.Huadon
g Joint and
Proporti
Medicin several
April 24 April 28 onal
e 24000 722 liability None 1 year No No
2026 2026 guarante
Wenzho guarante
e
u Co. e
Ltd.Huadon
g Joint and
Proporti
Medicin several
April 24 April 28 onal
e 24000 171 liability None 1 year No No
2026 2026 guarante
Wenzho guarante
e
u Co. e
Ltd.Huadon
g Joint and
Proporti
Medicin several
April 24 April 29 onal
e 24000 1000 liability None 1 year No No
2026 2026 guarante
Wenzho guarante
e
u Co. e
Ltd.Huadon
g Joint and
Proporti
Medicin several
April 24 May 27 onal
e 24000 446 liability None 1 year No No
2026 2026 guarante
Wenzho guarante
e
u Co. e
Ltd.Huadon
g Joint and
Proporti
Medicin several
April 24 June 26 onal
e 24000 379 liability None 1 year No No
2026 2026 guarante
Wenzho guarante
e
u Co. e
Ltd.Huadon Joint and
Guarante
g several
April 24 May 26 e +
Medicin 15000 3563 liability None 1 year No No
2026 2026 financial
e Lishui guarante
loan
Co. Ltd. e
Huadon
g
Medicin April 24
2500 1 year No No
e 2026
Daishan
Co. Ltd.Huadon
g Joint and
Medicin several
April 18 March
e Cunde 7600 950 liability None None 1 year No No
2025 19 2026
(Zhoush guarante
an) Co. e
Ltd.Huadon April 18 March Joint and
7600 1000 None None 1 year No No
g 2025 26 2026 several
Medicin liability
e Cunde guarante
(Zhoush e
an) Co.Ltd.Huadon
g Joint and
Medicin several
April 24 June 23
e Cunde 7600 1900 liability None None 1 year No No
2026 2026
(Zhoush guarante
an) Co. e
Ltd.Hangzho
u
Zhongm
ei
Huadon
April 24
g 60000 1 year No No
2026
Pharmac
eutical
Jiangdon
g Co.Ltd.Hangzho
u Joint and
Huadon several
April 24 June 23
g 7000 1900 liability None None 1 year No No
2026 2026
Medicin guarante
e Chain e
Co. Ltd.Hubei
Joint and
Magic Proporti
several
Health April 18 January onal
3600 111 liability None 1 year No No
Technol 2025 26 2026 guarante
guarante
ogy Co. e
e
Ltd.Hubei
Joint and
Magic Proporti
several
Health April 18 February onal
3600 42 liability None 1 year No No
Technol 2025 10 2026 guarante
guarante
ogy Co. e
e
Ltd.Hubei
Joint and
Magic Proporti
several
Health April 18 March onal
3600 61 liability None 1 year No No
Technol 2025 10 2026 guarante
guarante
ogy Co. e
e
Ltd.Hubei
Joint and
Magic Proporti
several
Health April 24 June 26 onal
3600 263 liability None 1 year No No
Technol 2026 2026 guarante
guarante
ogy Co. e
e
Ltd.Hubei Joint and Proporti
April 24 June 29
Magic 3600 71 several None onal 1 year No No
2026 2026
Health liability guarante
Technol guarante e
ogy Co. e
Ltd.Huadon
Joint and
g
several
Medicin April 18 March
10000 1900 liability None None 1 year No No
e 2025 26 2026
guarante
(Jiaxing)
e
Co. Ltd.Huadon
g
Medicin April 24
15000 1 year No No
e 2026
(Jiaxing)
Co. Ltd.Zhejiang
Yiqun
Biologic
al April 24
1500 1 year No No
Pharmac 2026
eutical
Trading
Co. Ltd.Hangzho
u Huayi
April 24
Pharmac 1500 1 year No No
2026
y Co.Ltd.Anhui
Joint and
Meihua
several
Hi-Tech April 18 January
5000 77 liability None None 1 year No No
Pharmac 2025 14 2026
guarante
eutical
e
Co. Ltd.Anhui
Joint and
Meihua
several
Hi-Tech April 18 January
5000 476 liability None None 1 year No No
Pharmac 2025 26 2026
guarante
eutical
e
Co. Ltd.Anhui
Joint and
Meihua
several
Hi-Tech April 18 February
5000 168 liability None None 1 year No No
Pharmac 2025 25 2026
guarante
eutical
e
Co. Ltd.Anhui
Joint and
Meihua
several
Hi-Tech April 18 March
5000 39 liability None None 1 year No No
Pharmac 2025 16 2026
guarante
eutical
e
Co. Ltd.Anhui Joint and
Meihua several
April 18 March
Hi-Tech 5000 366 liability None None 1 year No No
2025 23 2026
Pharmac guarante
eutical e
Co. Ltd.Anhui
Joint and
Meihua
several
Hi-Tech April 18 April 14
5000 146 liability None None 1 year No No
Pharmac 2025 2026
guarante
eutical
e
Co. Ltd.Anhui
Joint and
Meihua
several
Hi-Tech April 24 April 24
5000 158 liability None None 1 year No No
Pharmac 2026 2026
guarante
eutical
e
Co. Ltd.Anhui
Joint and
Meihua
several
Hi-Tech April 24 May 7
5000 56 liability None None 1 year No No
Pharmac 2026 2026
guarante
eutical
e
Co. Ltd.Anhui
Joint and
Meihua
several
Hi-Tech April 24 May 22
5000 434 liability None None 1 year No No
Pharmac 2026 2026
guarante
eutical
e
Co. Ltd.Anhui
Joint and
Meihua
several
Hi-Tech April 24 May 26
5000 68 liability None None 1 year No No
Pharmac 2026 2026
guarante
eutical
e
Co. Ltd.Huadon
g
Medicin
e
Internati April 24
15000 1 year No No
onal 2026
Trade
(Zhejian
g) Co.Ltd.Hangzho
u
Yuexing
Youpin April 24
2000 1 year No No
Health 2026
Manage
ment
Co. Ltd.Wuhu
Huaren
Science
April 24
and 3000 1 year No No
2026
Technol
ogy Co.Ltd.Huadon April 18 20000 March 1694 Joint and None None 1 year No No
g 2025 24 2026 several
Medicin liability
e guarante
(Guizho e
u)
Pharmac
eutical
Co. Ltd.Huadon
g
Medicin
e
April 24
(Guizho 20000 1 year No No
2026
u)
Pharmac
eutical
Co. Ltd.Huadon
g
Medicin
April 24
e 17000 1 year No No
2026
(Hangzh
ou) Co.Ltd.Bailing
Joint and
Health
several
Science April 18 April 1
1200 19 liability None None 1 year No No
(Hangzh 2025 2026
guarante
ou) Co.e
Ltd.Bailing
Joint and
Health
several
Science April 24 May 9
1800 4 liability None None 1 year No No
(Hangzh 2026 2026
guarante
ou) Co.e
Ltd.Bailing
Joint and
Health
several
Science April 24 May 9
1800 63 liability None None 1 year No No
(Hangzh 2026 2026
guarante
ou) Co.e
Ltd.Bailing
Joint and
Health
several
Science April 24 June 10
1800 29 liability None None 1 year No No
(Hangzh 2026 2026
guarante
ou) Co.e
Ltd.Bailing
Joint and
Health
several
Science April 24 June 10
1800 21 liability None None 1 year No No
(Hangzh 2026 2026
guarante
ou) Co.e
Ltd.Gongwe Joint and
April 18 April 13
i 2000 228 several None None 1 year No No
2025 2026
Lianchu liability
ang guarante
(Shangh e
ai)
Biotechn
ology
Co. Ltd.Gongwe
i
Lianchu Joint and
ang several
April 24 June 16
(Shangh 2000 95 liability None None 1 year No No
2026 2026
ai) guarante
Biotechn e
ology
Co. Ltd.HD
Animal Equity
Joint and
Health pledge
several
(Jiangsu April 18 January by
1000 950 liability None 1 year No No
) 2025 30 2026 minority
guarante
Pharmac sharehol
e
eutical ders
Co. Ltd.HD
Animal
Health
(Jiangsu April 24
1000
) 2026
Pharmac
eutical
Co. Ltd.Total approved Total actual
guarantee quota for guarantee amount
subsidiaries during 468800 for subsidiaries 98298.26
the reporting period during the reporting
(B1) period (B2)
Total approved Total guarantee
guarantee quota for balance for
subsidiaries at the 975785 subsidiaries at the 131766.6
end of the reporting end of the reporting
period (B3) period (B4)
Guarantees provided by subsidiaries to other subsidiaries
Disclosu
re date
Whether
of
Name of Actual Whether it is a
announc Actual Type of Counter-
guarante Guarante guarante Collatera Guarante it has guarante
ement occurren guarante guarante
e e quota ed l (if any) e period been e for
regardin ce date e e (if any)
recipient amount fulfilled related
g the
parties
guarante
e quota
Chongqi Joint and
Proporti
ng Peg- several
April 18 May 7 onal
Bio 1396.4 113 liability None 3 years No Yes
2024 2024 guarante
Biophar guarante
e
m Co. e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 July 26 onal
1396.4 60 liability None 3 years No Yes
Biophar 2024 2024 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 August onal
1396.4 32 liability None 3 years No Yes
Biophar 2024 21 2024 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 August onal
1396.4 48 liability None 3 years No Yes
Biophar 2024 23 2024 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
Septemb several
Bio April 18 onal
1396.4 er 2 51 liability None 3 years No Yes
Biophar 2024 guarante
2024 guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 April 21 onal
1396.4 5 liability None 3 years No Yes
Biophar 2025 2025 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 April 25 onal
1396.4 10 liability None 3 years No Yes
Biophar 2025 2025 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 April 29 onal
1396.4 18 liability None 3 years No Yes
Biophar 2025 2025 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 May 15 onal
1396.4 15 liability None 3 years No Yes
Biophar 2025 2025 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 May 20 onal
1396.4 55 liability None 3 years No Yes
Biophar 2025 2025 guarante
guarante
m Co. e
e
Ltd.Chongqi April 18 May 28 Joint and Proporti
1396.4 11 None 3 years No Yes
ng Peg- 2025 2025 several onal
Bio liability guarante
Biophar guarante e
m Co. e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 June 6 onal
1396.4 15 liability None 3 years No Yes
Biophar 2025 2025 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 June 12 onal
1396.4 76 liability None 3 years No Yes
Biophar 2025 2025 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 June 26 onal
1396.4 15 liability None 3 years No Yes
Biophar 2025 2025 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 July 10 onal
1396.4 21 liability None 3 years No Yes
Biophar 2025 2025 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 July 14 onal
1396.4 8 liability None 3 years No Yes
Biophar 2025 2025 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 July 23 onal
1396.4 14 liability None 3 years No Yes
Biophar 2025 2025 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 July 31 onal
1396.4 14 liability None 3 years No Yes
Biophar 2025 2025 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 August onal
1396.4 23 liability None 3 years No Yes
Biophar 2025 7 2025 guarante
guarante
m Co. e
e
Ltd.Chongqi Joint and
Proporti
ng Peg- several
April 18 August onal
Bio 1396.4 9 liability None 3 years No Yes
2025 21 2025 guarante
Biophar guarante
e
m Co. e
Ltd.Chongqi
Joint and
ng Peg- Proporti
Septemb several
Bio April 18 onal
1396.4 er 15 8 liability None 3 years No Yes
Biophar 2025 guarante
2025 guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 October onal
1396.4 23 liability None 3 years No Yes
Biophar 2025 16 2025 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 October onal
1396.4 7 liability None 3 years No Yes
Biophar 2025 28 2025 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
Novemb several
Bio April 18 onal
1396.4 er 13 32 liability None 3 years No Yes
Biophar 2025 guarante
2025 guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
Decemb several
Bio April 18 onal
1396.4 er 16 29 liability None 3 years No Yes
Biophar 2025 guarante
2025 guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
Decemb several
Bio April 18 onal
1396.4 er 31 3 liability None 3 years No Yes
Biophar 2025 guarante
2025 guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 January onal
1396.4 10 liability None 3 years No Yes
Biophar 2025 9 2026 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 January onal
1396.4 35 liability None 3 years No Yes
Biophar 2025 15 2026 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 January onal
1396.4 33 liability None 3 years No Yes
Biophar 2025 22 2026 guarante
guarante
m Co. e
e
Ltd.Chongqi April 18 January Joint and Proporti
1396.4 6 None 3 years No Yes
ng Peg- 2025 30 2026 several onal
Bio liability guarante
Biophar guarante e
m Co. e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 February onal
1396.4 11 liability None 3 years No Yes
Biophar 2025 5 2026 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 February onal
1396.4 10 liability None 3 years No Yes
Biophar 2025 11 2026 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 March onal
1396.4 15 liability None 3 years No Yes
Biophar 2025 12 2026 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 March onal
1396.4 124 liability None 3 years No Yes
Biophar 2025 20 2026 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 March onal
1396.4 9 liability None 3 years No Yes
Biophar 2025 27 2026 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 April 2 onal
1396.4 24 liability None 3 years No Yes
Biophar 2025 2026 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 April 9 onal
1396.4 11 liability None 3 years No Yes
Biophar 2025 2026 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 April 14 onal
1396.4 10 liability None 3 years No Yes
Biophar 2025 2026 guarante
guarante
m Co. e
e
Ltd.Chongqi Joint and
Proporti
ng Peg- several
April 18 April 15 onal
Bio 1396.4 6 liability None 3 years No Yes
2025 2026 guarante
Biophar guarante
e
m Co. e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 April 21 onal
1396.4 13 liability None 3 years No Yes
Biophar 2025 2026 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18 April 23 onal
1396.4 8 liability None 3 years No Yes
Biophar 2025 2026 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 24 May 14 onal
1396.4 17 liability None 3 years No Yes
Biophar 2026 2026 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 24 June 4 onal
1396.4 21 liability None 3 years No Yes
Biophar 2026 2026 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 24 June 11 onal
1396.4 35 liability None 3 years No Yes
Biophar 2026 2026 guarante
guarante
m Co. e
e
Ltd.Chongqi
Joint and
ng Peg- Proporti
several
Bio April 24 June 25 onal
1396.4 35 liability None 3 years No Yes
Biophar 2026 2026 guarante
guarante
m Co. e
e
Ltd.Total approved Total actual
guarantee quota for guarantee amount
subsidiaries during 1396 for subsidiaries 432.34
the reporting period during the reporting
(C1) period (C2)
Total approved Total guarantee
guarantee quota for balance for
subsidiaries at the 4189 subsidiaries at the 1146.99
end of the reporting end of the reporting
period (C3) period (C4)
Total Company guarantees (sum of the fore-mentioned three major items)
Total approved Total actual
guarantee quota guarantee amount
during the reporting 470196 during the reporting 98730.6
period (A1 + B1 + period (A2 + B2 +
C1) C2)
Total approved Total guarantee
guarantee quota at 979974 balance at the end of 132913.59
the end of the the reporting period
reporting period (A3 (A4 + B4 + C4)
+ B3 + C3)
Proportion of total actual guarantees (i.e. A4
5.22%
+ B4 + C4) in the Company's net assets
Incl.:
Outstanding debt guarantees provided
directly or indirectly to guarantee recipients
34619.76
with an asset liability ratio exceeding 70%
(E)
Total of the above three guaranteed amounts
34619.76
(D + E + F)
Explanation of specific situations for composite guarantee
3. Entrusted wealth management
□Applicable□Not applicable
The Company did not have any entrusted wealth management during the reporting period.
4. Other significant contracts
□Applicable□Not applicable
The Company did not have any other significant contracts during the reporting period.XIII. Registration form for activities such as research communication and interviews
conducted during the reporting period
□Applicable □Not applicable
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
refer to the Record
Sheet of Investor
Guotai Relations Activities
Haitong on January 21 and
Institutio Securities 22 2026 published
January 21 Conference ns and TF Investor by the Company on
and 22 2026 room of the Field visitsCompany individu Securities
communicati the Shenzhen Stock
als Zheshang on Exchange Interactive
Securities Platform
etc. (https://irm.cninfo.com.cn/) and the
website of Cninfo (at
www.cninfo.com.cn).April 24 Conferenceroom of the Online
Institutio Industrial 2025 Annual For details see the
2026 ns and Securities & 2026 First Record Sheet ofCompany exchange individu Soochow Quarter Investor Relations
als Securities Performance Activities on April
GF Exchange 24 2026 which was
Securities Meeting of published by the
etc. Huadong Company on the
Medicine Shenzhen Stock
Exchange Interactive
Platform
(https://irm.cninfo.co
m.cn/) and the
website of Cninfo (at
www.cninfo.com.cn).For details see the
2026 Online Record Sheet of
Collective Investor Relations
Investor Activities on May 13
Reception 2026 which was
Day for published by the
May 13 Conference Online Individu Individual Listed Company on the
2026 room of theCompany exchange als investors
Companies in Shenzhen Stock
Zhejiang and Exchange Interactive
2025 Annual Platform
and 2026 (https://irm.cninfo.co
First-Quarter m.cn/) and the
Results website of Cninfo (at
Briefing www.cninfo.com.cn).For details see the
Record Sheet of
Investor Relations
Activities (Investor
Day Events) on May
CICC 20 2026 which was
Conference Institutio Industrial published by theMay 20 Investor
2026 room of the Field visits
ns and Securities Company on the
Company individu CITIC
Reception Shenzhen Stock
als Securities Day Exchange Interactive
etc. Platform
(https://irm.cninfo.co
m.cn/) and the
website of Cninfo (at
www.cninfo.com.cn)."Striving for For details see the
Excellence in Record Sheet of
R&D and Investor Relations
Online Cultivating Activities on May 21
8/F Listed meetings New Drivers 2026 which was
Companies via an Institutio Institutional for published by the
May 21 Hall Internet ns and and Pharmaceutic Company on the
2026 Shenzhen platform individu individual al Growth" — Shenzhen Stock
Stock and on-site als investors 2025 Exchange Interactive
Exchange research Collective Platform
visits Results (https://irm.cninfo.co
Briefing m.cn/) and the
Hosted by the website of Cninfo (at
Shenzhen www.cninfo.com.cn)
Stock .Exchange
XIV. Other major events
□Applicable□Not applicable
The Company had no other significant matters requiring explanation during the reporting period.XV. Major events of subsidiaries
□Applicable □Not applicable
As of the release date of the Report under the supervision of the court the liquidation of
Huadong Ningbo Medicine Co. Ltd. has completed the disposal of major asset. Currently only
the collection of remaining receivables remains pending. The Company will actively advance the
subsequent liquidation. During this reporting period the Company recognized an investment
income of RMB -2119166.93 by using the equity method.Section VI Share Changes and Shareholders Information
I. Changes in shares
1. Changes in shares
Unit: Shares
Before the change Change in the period (+/-) After the change
Shares
converted
New Bonus
Quantity Ratio from Others Subtotal Quantity Ratio
shares shares
capital
reserve
I. Shares
subject to
trading 100795 0.06% 0 0 0 -284200 -284200 723750 0.04%
restriction 0
s
1.
Shares
0 0.00% 0 0 0 0 0 0 0.00%
held by
the State
2.
Shares
held by
the state- 0 0.00% 0 0 0 0 0 0 0.00%
owned
corporatio
ns
3.
Shares
held by 100795
0.06% 0 0 0 -284200 -284200 723750 0.04%
other 0
domestic
investors
Incl.:
Shares
held by
0 0.00% 0 0 0 0 0 0 0.00%
domestic
corporatio
ns
Shar
es held by
domestic 100795 0.06% 0 0 0 -284200 -284200 723750 0.04%
natural 0
persons
4.
Shares
held by 0 0.00% 0 0 0 0 0 0 0.00%
overseas
investors
Incl.:
shares
held by
overseas 0 0.00% 0 0 0 0 0 0 0.00%
corporatio
ns
Shar
es held by
overseas 0 0.00% 0 0 0 0 0 0 0.00%
natural
persons
II. Shares
without
trading 175301 17530199.94% 0 0 0 0 0 99.96%
restriction 3098 3098
s
1.
Common 175301 175301
99.94% 0 0 0 0 0 99.96%
shares in 3098 3098
RMB
2.
Foreign
capital
0 0.00% 0 0 0 0 0 0 0.00%
shares
listed in
China
3.
Foreign
capital
shares 0 0.00% 0 0 0 0 0 0 0.00%
listed
overseas
4.
0 0.00% 0 0 0 0 0.00%
Others
III. Total
number of 175402 175373100.00% 0 0 0 -284200 -284200 100.00%
shares 1048 6848
Reason for changes in shares
□Applicable □Not applicable
During the reporting period the Company completed the repurchase and cancellation of
certain restricted shares under its Restricted Stock Incentive Plan in 2022. A total of 284200
restricted stocks were repurchased and canceled resulting in a corresponding decrease of 284200
shares in the Company's total share capital.Approval of changes in shares
□Applicable □Not applicable
1. On November 20 2025 the Company convened the 5th Meeting of the 11th Board of
Directors on which the following proposals were reviewed and approved: Proposal on the
Fulfillment of the Release Conditions during the Third Restriction Release Period for First Grant of
Reserved Restricted Stocks under the Restricted Stock Incentive Plan in 2022 the Proposal on
Adjusting the Repurchase Price of the Restricted Stock Incentive Plan in 2022 and the Proposal on
Repurchase and Cancellation of Certain Restricted Stocks. The Board of Directors believed that the
conditions for releasing restrictions during the third restriction release period of the first grant of
restricted stocks under the Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to
the authorization granted by the Company's 1st Extraordinary General Meeting in 2022 the Board
of Directors agreed to handle the releasing procedures for 1275120 restricted stocks for 77
incentive recipients during the third restriction release period and also approved the repurchase and
cancellation of a total of 284200 restricted stocks that had been granted but not yet released from
trading restrictions corresponding to 6 incentive recipients who were no longer eligible due to
resignation 16 incentive recipients whose individual performance assessment results for the third
restriction release period were unqualified 3 incentive recipients whose individual performance
assessment results for the restriction release period were qualified among the initially granted
incentive recipients 1 reserved incentive recipient who was no longer eligible due to resignation
and 2 incentive recipients whose individual performance evaluations for the second restriction
release period were unqualified among the incentive recipients of reserved grants. The
Remuneration and Appraisal Committee of the Board of Directors issued verification opinions on
relevant matters while lawyers and independent financial advisors provided corresponding reports.On November 22 2025 the Company disclosed the relevant announcements on Cninfo
(http://www.cninfo.com.cn).
2. On December 9 2025 the Company convened its 2nd Extraordinary Shareholders' Meeting
in 2025 where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks and the
Proposal on Expanding the Business Scope Altering the Registered Capital and Amending the
"Articles of Association" were reviewed and approved. On the same day the Company disclosed
the Announcement on Reducing Registered Capital by Repurchasing and Canceling Some
Restricted Stocks and Notifying Creditors. As of January 23 2026 the benchmark date for capital
verification i.e. within forty-five days from the date when the Company announced the reduction
of capital no creditor requested the Company to pay off its debts or provide corresponding
guarantees.
3. On March 7 2026 the Company disclosed the Announcement on the Completion of
Repurchase and Cancellation of Certain Restricted Stocks. On March 5 2026 the Company
completed the procedures for repurchase and cancellation of 284200 restricted stocks at Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited.Transfer of changed shares
□Applicable □Not applicable
In February 2026 the Company submitted the relevant registration materials to the Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited for the repurchase and
cancellation of 284200 shares involved in the equity incentive plan. In the same month the
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited issued the
Confirmation for Registration of Securities Transfer to the Company and the total share capital of
the Company was reduced from 1754021048.00 shares to 1753736848.00 shares.Progress of implementation of share repurchase
□Applicable□Not applicable
Progress in the implementation of the reduction of repurchased shares via centralized bidding
□Applicable□Not applicable
Impact of share changes on financial indicators such as basic and diluted earnings per share and net assets per share attributable to
common shareholders of the Company in the last year and the latest period
□Applicable □Not applicable
Calculated based on the total number of stocks before the change in share capital
(1754021048 shares) the Company's basic earnings per share in 2026 were RMB 1.0609/share
diluted earnings/share were RMB 1.0609/share and net assets per share attributable to common
shareholder of the Company were RMB 14.5046/share. Calculated based on the total number of
stocks after the change in share capital (1753736848 shares) the Company's basic earnings per
share for 2026 were RMB 1.0610/share diluted earnings per share were RMB 1.0610/share and net
assets per share attributable to common shareholder of the Company were RMB 14.5069/share.Overall the aforementioned changes in share capital did not have a significant impact on the
Company's financial indicators for the first half of 2026 including basic and diluted earnings per
share as well as net assets per share attributable to common shareholder of the Company.Other contents deemed necessary by the Company or required to be disclosed by securities regulatory authorities
□Applicable□Not applicable
2. Changes in restricted stocks
□Applicable □Not applicable
Unit: Shares
Number of
Number of Number of newly Number of
restricted restricted increased restricted
Name of Reasons for Restriction
stocks at the stocks released restricted stocks at the
shareholder sale restriction release date
beginning of during the stocks during end of the
the period current period the current period
period
In accordance
with
Locked-up regulations on
stocks for the
Zhang Jianfei 60000 0 0 60000
senior management of
management shares held by
senior
managers
In accordance
with
Locked-up regulations on
stocks for the
Zhang Jianfei 112500 0 0 112500
senior management of
management shares held by
senior
managers
In accordance
with
Locked-up regulations on
stocks for the
Lv Liang 150000 0 0 150000
senior management of
management shares held by
senior
managers
In accordance
with
Locked-up regulations on
stocks for the
Zhu Li 22500 0 0 22500
senior management of
management shares held by
senior
managers
In accordance
with
Locked-up regulations on
stocks for the
Zhu Li 112500 0 0 112500
senior management of
management shares held by
senior
managers
In accordance
with
Locked-up regulations on
stocks for the
Wu Hui 78750 0 0 78750
senior management of
management shares held by
senior
managers
In accordance
with
Locked-up regulations on
stocks for the
Chen Bo 75000 0 0 75000
senior management of
management shares held by
senior
managers
Qiu Renbo 75000 0 0 75000 Locked-up In accordance
stocks for with
senior regulations on
management the
management of
shares held by
senior
managers
In accordance
with
Locked-up regulations on
stocks for the
Zhu Liang 22500 0 0 22500
senior management of
management shares held by
senior
managers
In accordance
with
Locked-up regulations on
Zhang stocks for the
15000 0 0 15000
Zhongxing senior management of
management shares held by
senior
managers
Other mid-level
management
Restricted
personnel and
stocks under
core technical 284200 0 -284200 0 /
equity incentive
(business)
plan
personnel of the
Company
Total 1007950 0 -284200 723750 -- --
II. Issuance and listing of securities
□Applicable□Not applicable
III. Number of shareholders and shareholding
Unit: Shares
Total number of common Total number of preferred shareholders
shareholders at the end of 100196 with restored voting rights at the end of 0
the reporting period the reporting period (if any) (see Note 8)
Particulars about shareholders with a shareholding ratio of over 5% or the top 10 shareholders (excluding shares lent through
conversions)
Number of Pledged marked or
Number of Number of
shares held Changes locked-up status
shares held shares held
Name of Nature of Shareholdi at the end during the
with without
shareholder shareholder ng ratio of the reporting
trading trading Status of
reporting period Quantity
restrictions restrictions shares
period
China Domestic
Grand non-state- 73093815 73093815 14481000
41.68% 0 0 Pledged
Enterprises owned 7 7 0
Inc. corporation
Hangzhou
Huadong State-
28800000 28800000 Not
Medicine owned 16.42% 0 0 0
0 0 applicable
Group Co. corporation
Ltd.Hong Kong
Securities
Overseas Not
Clearing 2.33% 40944342 -5423649 0 40944342 0
corporation applicable
Company
Limited
New China
Life
Insurance
Co. Ltd. -
Dividend - Not
Others 2.05% 35907902 942660 0 35907902 0
Individual applicable
Dividend -
018L-
FH002
Shenzhen
New China
Life
Insurance
Co. Ltd. -
Traditional
Not
- General Others 1.44% 25203996 3413182 0 25203996 0
applicable
Insurance
Products -
018L-
CT001
Shenzhen
Bank of
Shanghai
Co. Ltd. -
Yinhua CSI
Innovative
Pharmaceut
ical
Not
Industry Others 0.82% 14464550 3812809 0 14464550 0
applicable
Traded
Open-
ended
Index
Securities
Investment
Fund
China
Constructio
n Bank
Corporatio
n - E Fund
CSI 300 Not
Others 0.81% 14252950 2540440 0 14252950 0
Medical applicable
and Health
Trading
Open Index
Securities
Investment
Fund
National
Social
Security Not
Others 0.59% 10419328 6182224 0 10419328 0
Fund - applicable
Portfolio
110
Bank of
China Co.Ltd. – GF
CSI
Innovative
Drug
Industry Not
Others 0.54% 9530815 3408208 0 9530815 0
Exchange applicable
Traded
Open-end
Index
Securities
Investment
Fund
China
Merchants
Bank Co.Ltd. –
Industrial
Synergy Not
Others 0.42% 7361209 3821209 0 7361209 0
Return applicable
Enhanced
Bond
Securities
Investment
Fund
Strategic investors or
general corporations
become the top 10
Not applicable
shareholders due to the
placement of new shares
(if any) (see Note 3)
Explanation on associated
relationships or concerted The Company is unaware of whether the above-mentioned shareholders are related parties or
actions among the above- whether they are concert parties with one another.mentioned shareholders
Explanation on the above
shareholders involved in
proxy/trusted voting rights Not applicable
and waiver of voting
rights
Special notes on the
existence of repurchase
special accounts among Not applicable
the top 10 shareholders(if
any)(See Note 11)
Information about the top 10 shareholders without trading restrictions (excluding shares lent through conversions and locked-up
shares for senior management)
Type of shares
Number of shares held without trading restrictions at the end of the
Name of shareholder
reporting period Type of Quantity
shares
RMB
China Grand Enterprises 73093815
730938157 common
Inc. 7
shares
RMB
Hangzhou Huadong 28800000
288000000 common
Medicine Group Co. Ltd. 0
shares
Hong Kong Securities RMB
Clearing Company 40944342 common 40944342
Limited shares
New China Life Insurance
RMB
Co. Ltd. - Dividend -
35907902 common 35907902
Individual Dividend -
shares
018L-FH002 Shenzhen
New China Life Insurance
Co. Ltd. - Traditional - RMB
General Insurance 25203996 common 25203996
Products - 018L-CT001 shares
Shenzhen
Bank of Shanghai Co.Ltd. - Yinhua CSI
RMB
Innovative Pharmaceutical
14464550 common 14464550
Industry Traded Open-
shares
ended Index Securities
Investment Fund
China Construction Bank
Corporation - E Fund CSI
RMB
300 Medical and Health
14252950 common 14252950
Trading Open Index
shares
Securities Investment
Fund
RMB
National Social Security
10419328 common 10419328
Fund - Portfolio 110
shares
Bank of China Co. Ltd. –
GF CSI Innovative Drug RMB
Industry Exchange Traded 9530815 common 9530815
Open-end Index Securities shares
Investment Fund
China Merchants Bank
Co. Ltd. – Industrial RMB
Synergy Return Enhanced 7361209 common 7361209
Bond Securities shares
Investment Fund
Description of the related
party relationship or
concerted action among
the top 10 shareholders
holding unrestricted The Company is unaware of whether the above-mentioned shareholders are related parties or
shares and between the whether they are concert parties with one another.top 10 shareholders
holding unrestricted
shares and the top 10
shareholders.Description of the top 10
common shareholders'
As of the end of the current reporting period none of the top 10 common shareholders of the
participation in margin
Company held shares of the Company through securities margin trading accounts.trading business (if any)
(see Note 4)
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
Whether the top 10 common shareholders and the top 10 common shareholders with unrestricted stocks in the Company engage in
the agreed repurchase transactions during the reporting period
□Yes□No
The top 10 common shareholders and the top 10 common shareholders with unrestricted stocks in the Company did not engage in
any agreed repurchase transactions during the reporting period.IV. Changes in shareholdings of directors and senior managers
□Applicable□Not applicable
There has been no change in the shareholding status of the Company's directors and senior managers during the reporting period.For full details please refer to the 2025 Annual Report.V. Changes in controlling shareholders or de facto controllers
As previously disclosed by the Company the de facto controller is planning a change of control which has not yet been completed.Please provide an update on the progress of this change of control.□Applicable□Not applicable
Change in controlling shareholder during the reporting period
□Applicable□Not applicable
There was no change in the controlling shareholder of the Company during the reporting period.Change in the de facto controller during the reporting period
□Applicable□Not applicable
There was no change in the de facto controller of the Company during the reporting period.VI. Relevant situation of preferred shares
□Applicable□Not applicable
The Company did not have preferred shares during the reporting period.Section VII Information on Bonds
□Applicable□Not applicable
Section VIII Financial Reports
I. Audit report
Whether the semi-annual financial report has been audited
□Yes□No
The Company's semi-annual financial report has not been audited.II. Financial statements
The unit in the notes to financial statements is: RMB
1. Consolidated balance sheet
Prepared by: Huadong Medicine Co. Ltd.June 30 2026
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 5605360468.39 4978052188.84
Deposit reservation for balance
Lendings to banks and other financial
institutions
Trading financial assets
Derivative financial assets
Notes receivable 9420826.08 6213394.05
Accounts receivable 8841404841.16 8985587945.31
Receivables financing 865267156.65 460578206.16
Prepayments 440117285.40 445803941.09
Premium receivable
Reinsurance accounts receivable
Reinsurance contract reserve
receivable
Other receivables 632928610.62 517535129.39
Incl.: Interest receivable
Dividends receivable 5024474.67 223608.84
Financial assets purchased for resale
Inventory 5030683149.60 5535765919.86
Incl.: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year 75464880.54
Other current assets 188965311.55 222343329.23
Total current assets 21614147649.45 21227344934.47
Non-current assets:
Loans and advances issued
Debt investments
Other debt investments
Long-term receivables
Long-term equity investment 1650742294.80 1509122017.22
Investment in other equity instruments 674265706.81 681006253.76
Other non-current financial assets
Investment property 10480170.79 10946776.47
Fixed assets 4289689684.93 4470264264.88
Construction in progress 987615685.14 832431516.18
Productive biological assets
Oil and gas assets
Right-of-use assets 199999619.57 170395474.59
Intangible assets 3798710511.50 3849691624.59
Incl.: Data resources
Development expenditure 2119595539.50 1757196902.53
Incl.: Data resources
Goodwill 2839831632.30 2860135566.37
Long-term deferred expenses 16458438.84 19541767.43
Deferred income tax assets 439471542.07 385084524.45
Other non-current assets 1334473280.11 1264874697.98
Total non-current assets 18361334106.36 17810691386.45
Total assets 39975481755.81 39038036320.92
Current liabilities:
Short-term borrowings 1715030135.18 1621903523.77
Borrowings from the central bank
Borrowings from other banks and
other financial institutions
Trading financial liabilities
Derivative financial liabilities
Notes payable 3068414627.61 2910051094.08
Accounts payable 5243981724.11 5059850765.02
Advance receipts 495915.58 797358.84
Contract liabilities 145747142.69 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 212037322.11 411598841.94
Taxes and dues payable 373250286.43 563317023.92
Other payables 2581603873.52 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
72199920.12 108871732.55
year
Other current liabilities 17003618.72 10443641.94
Total current liabilities 13429764566.07 13090663656.22
Non-current liabilities:
Provision for insurance contracts
Long-term borrowings 250096486.73 252034854.55
Bonds payable
Incl.: Preferred share
Perpetual bonds
Lease liabilities 116993386.72 88813504.20
Long-term payables
Long-term employee compensation
payable
Estimated liabilities 4018799.32 20617015.41
Deferred revenue 182119801.26 190942291.61
Deferred income tax liabilities 212327829.99 223959318.75
Other non-current liabilities
Total non-current liabilities 765556304.02 776366984.52
Total liabilities 14195320870.09 13867030640.74
Owners' equity:
Share capital 1753736848.00 1753736848.00
Other equity instruments
Incl.: Preferred share
Perpetual bonds
Capital reserve 2405166419.87 2416358618.64
Less: Treasury share
Other comprehensive income -194461639.77 5770687.07
Special reserves
Surplus reserves 1616443486.39 1616443486.39
General risk reserves
Retained earnings 19860477809.20 19019030352.89
Total owners' equity attributable to the
25441362923.69 24811339992.99
parent company
Minority interests 338797962.03 359665687.19
Total owners' equity 25780160885.72 25171005680.18
Total liabilities and owners' equity 39975481755.81 39038036320.92
Legal representative: Lv Liang Officer in charge of accounting: Lv Liang Head of Accounting Department: Qiu Renbo
2. Balance sheet of the parent company
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 4310026513.42 3564448718.56
Trading financial assets
Derivative financial assets
Notes receivable 9420826.08 6213394.05
Accounts receivable 5287063503.46 5391415855.65
Receivables financing 237087856.44 244857205.35
Prepayments 261760229.68 245653821.11
Other receivables 5475950962.47 3563354230.97
Incl.: Interest receivable
Dividends receivable 2067200000.00 67200000.00
Inventory 3121025899.27 3288268422.10
Incl.: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year 53905213.88
Other current assets 13327168.63 45575531.66
Total current assets 18715662959.45 16403692393.33
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investment 6391381154.30 6201961896.83
Investment in other equity instruments 10080000.00 10080000.00
Other non-current financial assets
Investment property 5561297.02 5794413.34
Fixed assets 127382735.08 131080028.79
Construction in progress 1800536.15 752212.39
Productive biological assets
Oil and gas assets
Right-of-use assets 161702.52 1686359.56
Intangible assets 108933501.04 110137694.50
Incl.: Data resources
Development expenditure
Incl.: Data resources
Goodwill
Long-term deferred expenses 5333518.74 5542232.16
Deferred income tax assets 65893677.66 75065627.63
Other non-current assets 300759793.64 286664901.46
Total non-current assets 7017287916.15 6828765366.66
Total assets 25732950875.60 23232457759.99
Current liabilities:
Short-term borrowings 630713926.42 710713926.42
Trading financial liabilities
Derivative financial liabilities
Notes payable 1320723517.00 1256135416.88
Accounts payable 3560108728.09 3549725618.44
Advance receipts
Contract liabilities 66784419.68 36191247.19
Employee compensation payable 13553074.43 19904483.43
Taxes and dues payable 67344370.67 82180746.62
Other payables 6971742843.01 5337446854.57
Incl.: Interests payable
Dividends payable 224219.60 224219.60
Liabilities held for sale
Non-current liabilities due within one
193295.01
year
Other current liabilities 8449120.34 4614684.54
Total current liabilities 12639419999.64 10997106273.10
Non-current liabilities:
Long-term borrowings
Bonds payable
Incl.: Preferred share
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee compensation
payable
Estimated liabilities
Deferred revenue 26586598.89 27869536.35
Deferred income tax liabilities 40425.63 10075067.31
Other non-current liabilities
Total non-current liabilities 26627024.52 37944603.66
Total liabilities 12666047024.16 11035050876.76
Owners' equity:
Share capital 1753736848.00 1753736848.00
Other equity instruments
Incl.: Preferred share
Perpetual bonds
Capital reserve 2334357232.56 2334357232.56
Less: Treasury share
Other comprehensive income
Special reserves
Surplus reserves 1694299245.83 1694299245.83
Retained earnings 7284510525.05 6415013556.84
Total owners' equity 13066903851.44 12197406883.23
Total liabilities and owners' equity 25732950875.60 23232457759.99
3. Consolidated income statement
Unit: RMB
Item First half of 2026 First half of 2025
I. Total operating revenue 22066646185.69 21674928965.21
Incl.: Operating revenue 22066646185.69 21674928965.21
Interest income
Premiums earned
Handling charges and
commissions revenue
II. Total operating costs 19835882521.19 19418419774.58
Incl.: Operating costs 14828934265.49 14327396132.90
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 133198163.38 114585169.40
Selling expenses 3415134454.00 3229044236.81
Management expenses 695712456.19 725296086.80
R&D expenses 747087944.12 999673972.93
Financial expenses 15815238.01 22424175.74
Incl.: Interest expense 36071715.71 56147464.39
Interest income 37923772.29 45613834.96
Plus: Other incomes 61562073.66 144290664.93
Investment income (loss
595643.34 -67265820.65
expressed with "-")
Incl.: Investment income in
28392197.57 -35365772.99
associates and joint ventures
Income from
derecognition of financial assets
measured on the basis of amortized costs
Exchange gains (loss expressed
with "-")
Net exposure hedging gains (loss
expressed with "－")
Gains from changes in fair value
(loss expressed with "-")
Credit impairment loss (loss
-28480291.32 -83959366.71
expressed with "-")
Asset impairment loss (loss
-7889468.30
expressed with "-")
Gains from disposal of assets
1424072.58 -6201002.36
(loss expressed with "-")
III. Operating profit (loss expressed with
2257975694.46 2243373665.84
"-")
Plus: Non-operating revenue 1638197.10 4157614.19
Less: Non-operating expenses 48620827.68 54367929.24
IV. Total profit (total loss expressed with
2210993063.88 2193163350.79
"-")
Less: Income tax expense 371103526.62 389834341.82
V. Net profit (net loss expressed with "-") 1839889537.26 1803329008.97
(I) Classification by continuity of
operation
1. Net profit from continuing
1839889537.26 1803329008.97
operations (net loss expressed with "-")
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 1860757262.42 1814826860.86
loss expressed with "-")
2. Profit or loss attributable to
minority shareholders (net loss expressed -20867725.16 -11497851.89
with "-")
VI. Other comprehensive income (net of
-202374761.11 23756112.05
tax)
Other comprehensive income
attributable to the owner of the parent -202374761.11 23756112.05
company (net of tax)
(I) Other comprehensive income
that cannot be reclassified into the profits -233323.77 -171215.68
and losses
1. Change from re-measurement
of defined benefit plan
2. Other comprehensive income
that cannot be included in the profits and -1054257.88
losses under the equity method
3. Changes in fair value of
820934.11 -171215.68
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 -202141437.34 23927327.73
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
-202141437.34 23927327.73
currency financial statements
7. Others
Other comprehensive income
attributable to minority shareholders (net
of tax)
VII. Total comprehensive income 1637514776.15 1827085121.02
Total comprehensive income
attributable to the owner of the parent 1658382501.31 1838582972.91
company
Total comprehensive income
-20867725.16 -11497851.89
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 1.0610 1.0293
(II) Diluted earnings per share 1.0610 1.0346
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
4. Income statement of the parent company
Unit: RMB
Item First half of 2026 First half of 2025
I. Operating revenue 12631586239.42 11924816596.23
Less: Operating cost 12065132012.66 11319964972.46
Taxes and surcharges 22709024.58 12340230.92
Selling expenses 180334972.13 236318613.02
Management expenses 93815406.83 84584023.83
R&D expenses
Financial expenses 127314588.26 -119960930.02
Incl.: Interest expense 54453009.18 17223303.45
Interest income 28890599.07 5044375.26
Plus: Other incomes 5886338.08 10728229.03
Investment income (loss
2044883368.32 2206749733.14
expressed with "-")
Incl.: Investment income in
-2119166.93 977686.70
associates and joint ventures
Income from
derecognition of financial assets
measured on the basis of amortized cost
(loss expressed with "-")
Net exposure hedging gains (loss
expressed with "－")
Gains from changes in fair value
(loss expressed with "-")
Credit impairment loss (loss
-257444880.28 -223466792.26
expressed with "-")
Asset impairment loss (loss
expressed with "-")
Gains from disposal of assets
188867.53 -278243.93
(loss expressed with "-")
II. Operating profit (loss expressed with
1935793928.61 2385302612.00
"-")
Plus: Non-operating revenue 6937.93 17931.33
Less: Non-operating expenses 20685635.67 12363241.49
III. Total profit (total loss expressed with
1915115230.87 2372957301.84
"-")
Less: Income tax expense 28450890.82 97197219.33
IV. Net profit (net loss expressed with "-
1886664340.05 2275760082.51
")
(I) Net profits from continuing
1886664340.05 2275760082.51
operations (net loss expressed with "-")
(II) Net profit from discontinued
operations (net loss expressed with "-")
V. Other comprehensive income (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
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
currency financial statements
7. Others
VI. Total comprehensive income 1886664340.05 2275760082.51
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated cash flow statement
Unit: RMB
Item First half of 2026 First half of 2025
I. Cash flows from operating activities:
Cash received from selling goods and
23464347633.15 23043949397.08
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 2589794.81 5110647.25
Receipt of other cash relating to
400570732.10 311722673.58
operating activities
Subtotal of cash inflows from operating
23867508160.06 23360782717.91
activities
Cash paid for purchase of goods and
14522926495.71 13943183727.91
receipt of labor services
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 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 2724872670.38 2692040129.25
Various taxes and fees paid 1573252891.88 1576435543.90
Payment of other cash relating to
2547036571.46 2692274806.75
operating activities
Subtotal of cash outflows from operating 21368088629.43 20903934207.81
activities
Net cash flow from operating activities 2499419530.63 2456848510.10
II. Cash flows from investing activities:
Cash received from investment
1979259.70
recovery
Cash received from obtaining
16907623.61 47347567.67
investment income
Net cash recovered from disposal of
fixed assets intangible assets and other 4772727.51 10814966.49
long-term assets
Net cash received from disposal of
subsidiaries and other business units
Receipt of other cash relating to
81650074.99
investing activities
Subtotal of cash inflows from investing
105309685.81 58162534.16
activities
Cash paid for the purchase and
construction of fixed assets intangible 718496969.99 788358827.36
assets and other long-term assets
Cash paid for investment 149419257.47 61560775.00
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
867916227.46 849919602.36
activities
Net cash flows from investing activities -762606541.65 -791757068.20
III. Cash flows from financing activities:
Cash received by absorbing
investment
Incl.: Cash received by subsidiaries
from minority shareholders' investment
Cash received from obtaining
1683103844.50 1720372646.92
borrowings
Receipt of other cash relating to
55903162.77 217401111.10
financing activities
Subtotal of cash inflows from financing
1739007007.27 1937773758.02
activities
Cash paid for debt repayment 1613149927.02 1728740028.90
Cash paid to distribute dividends
1042083356.71 1057608222.25
profits or pay interest
Incl.: Dividends and profits paid by
750000.00
subsidiaries to minority shareholders
Payment of other cash relating to
67730676.81 684856705.37
financing activities
Subtotal of cash outflows from financing
2722963960.54 3471204956.52
activities
Net cash flow from financing activities -983956953.27 -1533431198.50
IV. Effect of exchange rate changes on
-1458952.03 -116843004.40
cash and cash equivalents
V. Net increase in cash and cash
751397083.68 14817239.00
equivalents
Plus: Opening balance of cash and
4735921663.90 4990151186.68
cash equivalents
VI. Closing balance of cash and cash 5487318747.58 5004968425.68
equivalents
6. Cash flow statement of the parent company
Unit: RMB
Item First half of 2026 First half of 2025
I. Cash flows from operating activities:
Cash received from selling goods and
13598040758.73 12852057702.55
providing services
Refund of taxes and fees received
Receipt of other cash relating to
120347173.18 81235533.54
operating activities
Subtotal of cash inflows from operating
13718387931.91 12933293236.09
activities
Cash paid for purchase of goods and
12464444424.75 11701705674.97
receipt of labor services
Cash paid to and for employees 161790608.85 152400783.19
Various taxes and fees paid 196358472.64 154375654.03
Payment of other cash relating to
181938421.93 259455509.87
operating activities
Subtotal of cash outflows from operating
13004531928.17 12267937622.06
activities
Net cash flow from operating activities 713856003.74 665355614.03
II. Cash flows from investing activities:
Cash received from investment
recovery
Cash received from obtaining
15300000.00 197347567.67
investment income
Net cash recovered from disposal of
fixed assets intangible assets and other 1428647.17 60172.90
long-term assets
Net cash received from disposal of
subsidiaries and other business units
Receipt of other cash relating to
765382904.24 646911010.54
investing activities
Subtotal of cash inflows from investing
782111551.41 844318751.11
activities
Cash paid for the purchase and
construction of fixed assets intangible 60199684.34 104186490.92
assets and other long-term assets
Cash paid for investment 189419257.47 160000000.00
Net cash paid for acquisition of
subsidiaries and other business entities
Payments of other cash relating to
894554800.00 1108831020.00
investing activities
Subtotal of cash outflows from investing
1144173741.81 1373017510.92
activities
Net cash flows from investing activities -362062190.40 -528698759.81
III. Cash flows from financing activities:
Cash received by absorbing
investment
Cash received from obtaining
620000000.00 849998846.92
borrowings
Receipt of other cash relating to
2398300830.03 7420914030.58
financing activities
Subtotal of cash inflows from financing 3018300830.03 8270912877.50
activities
Cash paid for debt repayment 700000000.00 899998846.92
Cash paid to distribute dividends
1025126300.24 1035935768.08
profits or pay interest
Payment of other cash relating to
854041693.04 6479986464.74
financing activities
Subtotal of cash outflows from financing
2579167993.28 8415921079.74
activities
Net cash flow from financing activities 439132836.75 -145008202.24
IV. Effect of exchange rate changes on
cash and cash equivalents
V. Net increase in cash and cash
790926650.09 -8351348.02
equivalents
Plus: Opening balance of cash and
3500327111.51 3940066700.23
cash equivalents
VI. Closing balance of cash and cash
4291253761.60 3931715352.21
equivalents
7. Consolidated statement of changes in owners' equity
Amount in the current period
Unit: RMB
First half of 2026
Owners' equity attributable to the parent company
Other equity Oth Tota
instruments Less er
Gen Min l
Item Shar Capi : com Spe Surp Reta
Pref Perp eral ority owne tal Trea preh cial lus ined Oth Subt
erre etua risk inter ers'capi Oth rese sury ensi rese rese earn ers otalrese estsd l equital ers rve shar ve rves rves ings
shar bon rves tye inco
e ds me
190 248 251
175 241 161 359
I. Closing 577 190 113 710
373 635 644 665
balance of 068 303 399 056
684 861 348 687.
the prior year 7.07 52.8 92.9 80.1
8.00 8.64 6.39 19
9 9 8
Plus:
Changes in
accounting
policies
Co
rrection of
prior period
errors
Ot
hers
190 248 251
II. Opening 175 241 161 359
577 190 113 710
balance of 373 635 644 665
068 303 399 056
the current 684 861 348 687.
7.07 52.8 92.9 80.1
year 8.00 8.64 6.39 19
9 9 8
- - 841 630 - 609
III. Increase 111 200 447 022 208 155
or decrease 921 232 456. 930. 677 205.in the current 98.7 326. 31 70 25.1 54
period 7 84 6
(decrease
expressed
with "-")
- -
186 165 163
(I) Total 202 208
075 838 751
comprehensi 374 677
726 250 477
ve income 761. 25.1
2.42 1.31 6.15
11 6
(II) Owner's
investment
and
reduction of
capital
1. Common
stocks
invested by
the owner
2. Capital
invested by
holders of
other equity
instruments
3. Amount of
share-based
payment
included in
owners'
equity
4. Others
- - -
101 101 101
(III) Profit
716 716 716
distribution
737 737 737
1.84 1.84 1.84
1. Provision
for surplus
reserves
2. Provision
for general
risk reserves
- - -
3.
101 101 101
Distribution
716 716 716
to owners (or
737 737 737
shareholders)
1.84 1.84 1.84
4. Others
(IV) Internal -
214
carry-over of 214
243
owners' 243
4.27
equity 4.27
1.
Conversion
of capital
reserve to
capital (or
share capital)
2.
Conversion
of surplus
reserve to
capital (or
share capital)
3. Losses
covered by
surplus
reserve
4. Changes
in the
defined
benefit plan
transferred to
retained
earnings
5. Other
comprehensi
-
ve income 214
214
carried 243
243
forward to 4.27
4.27
retained
earnings
6. Others
(V) Special
reserves
1. Amount
withdrawn in
the current
period
2. Amount
utilized in
the current
period
- - -
111 111 111
(VI) Others 921 921 921
98.7 98.7 98.7
7 7 7
- 198 254 257
IV. Closing 175 240 161 338
194 604 413 801
balance in 373 516 644 797
461 778 629 608
the current 684 641 348 962.
639. 09.2 23.6 85.7
period 8.00 9.87 6.39 03
77 0 9 2
Amount of the prior year
Unit: RMB
Item First half of 2025
Owners' equity attributable to the parent company
Other equity Oth Tota
instruments Less er
Gen Min l
Shar Capi : com Spe Surp Reta
e Pref Perp
eral ority own
tal Trea preh cial lus ined Oth Subt
erre etua risk inter ers'capi Oth rese sury ensi rese rese earn ers otal
tal d l
rese ests equi
ers rve shar ve rves rves ings
shar bon rves tye inco
e ds me
- 174 230 235
175 255 468 139 503
I. Closing 505 568 600 637
426 078 041 556 703
balance of 982 420 513 549
254 060 16.6 847 514.
the prior year 04.1 89.5 97.3 12.1
8.00 2.69 7 7.98 76
7 3 6 2
Plus:
Changes in
accounting
policies
Co
rrection of
prior period
errors
Ot
hers
- 174 230 235
II. Opening 175 255 468 139 503
505 568 600 637
balance of 426 078 041 556 703
982 420 513 549
the current 254 060 16.6 847 514.
04.1 89.5 97.3 12.1
year 8.00 2.69 7 7.98 76
7 3 6 2
III. Increase
or decrease - -
- - 237 797 691 551
in the current 133 140
185 463 561 462 866 251
period 802 614
500. 532 12.0 173. 000. 585.
(decrease 109. 414.
00 5.00 5 02 64 97
expressed 43 67
with "-")
-
237 181 183 182
(I) Total 114
561 482 858 708
comprehensi 978
12.0 686 297 512
ve income 51.8
5 0.86 2.91 1.02
9
(II) Owner's
- - - -
investment 267 264
185 177 463 289
and 411 515
500. 571 532 60.7
reduction of 3.56 2.79
00 1.44 5.00 7
capital
1. Common - - -
stocks 185 185 185
invested by 500. 500. 500.the owner 00 00 00
2. Capital
invested by
holders of
other equity
instruments
3. Amount of
share-based -
267 267 264
payment 289
411 411 515
included in 60.7
3.56 3.56 2.79
owners' 7
equity
- -
185 185
444 463
4. Others 500. 500.
982 532
00 00
5.00 5.00
- - -
-
101 101 102
(III) Profit 911
736 736 647
distribution 400
468 468 868
0.00
7.84 7.84 7.84
1. Provision
for surplus
reserves
2. Provision
for general
risk reserves
- - -
3. -
101 101 102
Distribution 911
736 736 647
to owners (or 400
468 468 868
shareholders) 0.00
7.84 7.84 7.84
4. Others
(IV) Internal
carry-over of
owners'
equity
1.
Conversion
of capital
reserve to
capital (or
share capital)
2.
Conversion
of surplus
reserve to
capital (or
share capital)
3. Losses
covered by
surplus
reserve
4. Changes
in the
defined
benefit plan
transferred to
retained
earnings
5. Other
comprehensi
ve income
carried
forward to
retained
earnings
6. Others
(V) Special
reserves
1. Amount
withdrawn in
the current
period
2. Amount
utilized in
the current
period
- - - -
132 132 119 252
(VI) Others 026 026 973 000
397. 397. 602. 000.
99 99 01 00
- 182 237 241
IV. Closing 175 241 421 139 363
268 543 519 150
balance in 407 697 687 556 089
420 042 173 064
the current 704 849 91.6 847 100.
92.1 62.5 98.0 98.0
period 8.00 3.26 7 7.98 09
2 5 0 9
8. Statement of changes in owners' equity of the parent company
Amount in the current period
Unit: RMB
First half of 2026
Other equity instruments Other
Capita Less: compr Specia Surplu Retain Total
Item Share Prefer Perpet l Treasu ehensi l s ed ownerOthers
capital red ual Others reserv ry ve reserv reserv earnin s'
share bonds e share incom es es gs equity
e
1219
I. Closing 1753 2334 1694 6415
7406
balance of 7368 3572 2992 0135
883.2
the prior year 48.00 32.56 45.83 56.84
Plus:
Changes in
accounting
policies
Co
rrection of
prior period
errors
Ot
hers
II. Opening 1219
1753 2334 1694 6415
balance of 7406
7368 3572 2992 0135
the current 883.2
48.00 32.56 45.83 56.84
year 3
III. Increase
or decrease
in the current 8694 8694
period 9696 9696
(decrease 8.21 8.21
expressed
with "-")
(I) Total 1886 1886
comprehensi 6643 6643
ve income 40.05 40.05
(II) Owner's
investment
and
reduction of
capital
1. Common
stocks
invested by
the owner
2. Capital
invested by
holders of
other equity
instruments
3. Amount of
share-based
payment
included in
owners'
equity
4. Others
- -
(III) Profit 1017 1017
distribution 1673 1673
71.84 71.84
1. Provision
for surplus
reserves
2. - -
Distribution 1017 1017
to owners (or 1673 1673
shareholders) 71.84 71.84
3. Others
(IV) Internal
carry-over of
owners'
equity
1.
Conversion
of capital
reserve to
capital (or
share capital)
2.
Conversion
of surplus
reserve to
capital (or
share capital)
3. Losses
covered by
surplus
reserve
4. Changes
in the
defined
benefit plan
transferred to
retained
earnings
5. Other
comprehensi
ve income
carried
forward to
retained
earnings
6. Others
(V) Special
reserves
1. Amount
withdrawn in
the current
period
2. Amount
utilized in
the current
period
(VI) Others
IV. Closing 1306
1753 2334 1694 7284
balance in 6903
7368 3572 2992 5105
the current 851.4
48.00 32.56 45.83 25.05
period 4
Amount of the prior year
Unit: RMB
First half of 2025
Item Share Other equity instruments Capita Less: Other Specia Surplu Retain Total
capital l Treasu compr l s ed
Others owner
Prefer Perpet Others reserv ry ehensi reserv reserv earnin s'
red ual e share ve es es gs equity
share bonds incom
e
I. Closing 1754 2346 4680 1473 6058 11585
balance of 2625 4434 4116. 4242 4105 7366
the prior year 48.00 94.22 67 37.42 35.83 98.80
Plus:
Changes in
accounting
policies
Co
rrection of
prior period
errors
Ot
hers
II. Opening
1754 2346 4680 1473 6058 11585
balance of
2625 4434 4116. 4242 4105 7366
the current
48.00 94.22 67 37.42 35.83 98.80
year
III. Increase
or decrease
- -
in the current - 1258 1261
1804 4635
period 1855 3953 0405
672.2 325.0
(decrease 00.00 94.67 47.45
2 0
expressed
with "-")
(I) Total 2275 2275
comprehensi 7600 7600
ve income 82.51 82.51
(II) Owner's
- -
investment - 2645
1804 4635
and 1855 152.7
672.2 325.0
reduction of 00.00 8
2 0
capital
1. Common
- -
stocks
1855 1855
invested by
00.00 00.00
the owner
2. Capital
invested by
holders of
other equity
instruments
3. Amount of
share-based - -
payment 1804 1804
included in 672.2 672.2
owners' 2 2
equity
-
4635
4635
4. Others 325.0
325.0
0
0
- -
(III) Profit 1017 1017
distribution 3646 3646
87.84 87.84
1. Provision
for surplus
reserves
2. - -
Distribution 1017 1017
to owners (or 3646 3646
shareholders) 87.84 87.84
3. Others
(IV) Internal
carry-over of
owners'
equity
1.
Conversion
of capital
reserve to
capital (or
share capital)
2.
Conversion
of surplus
reserve to
capital (or
share capital)
3. Losses
covered by
surplus
reserve
4. Changes
in the
defined
benefit plan
transferred to
retained
earnings
5. Other
comprehensi
ve income
carried
forward to
retained
earnings
6. Others
(V) Special
reserves
1. Amount
withdrawn in
the current
period
2. Amount
utilized in
the current
period
(VI) Others
IV. Closing 1284
1754 2344 4216 1473 7316
balance in 6777
0770 6388 8791. 4242 8059
the current 246.2
48.00 22.00 67 37.42 30.50
period 5
III. Basic information of the Company
Huadong Medicine Co. Ltd. (hereinafter referred to as the "Company") was formerly known as Hangzhou Medicine Station
Co. Ltd. established as a directed share issuance company in March 1993. It was registered with the Zhejiang Provincial
Administration for Industry and Commerce on March 31 1993 with its headquarters located in Hangzhou City Zhejiang Province.The Company currently holds a business license with the Unified Social Credit Code of 91330000143083157E a registered capital
of RMB 1753736848.00 and a total of 1753736848 shares (par value of RMB 1 per share). As of June 30 2026 there were
723750 A shares with selling restrictions and 1753013098 A shares without selling restrictions. The Company's shares were
listed on the Shenzhen Stock Exchange on January 27 2000.The Company operates in the pharmaceutical industry. The main business activities include the research development
manufacturing and sales of pharmaceutical products.These financial statements were approved by the seventh meeting of the eleventh session of the Board of Directors on August 25
2026.
Huadong Medicine Co. Ltd.Lv Liang Chairman
August 27 2026
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