Security code: 000963 Stock abbreviation: Huadong Medicine Announcement No.: 2024-087
Huadong Medicine Co., Ltd.Third Quarterly Report 2024
The Company and all members of the Board of Directors hereby guarantee that the information presented inthis report is authentic, accurate and complete and free of any false records, misleading statements or materialomissions.Important Declaration:
1. The Board of Directors, Board of Supervisors, directors, supervisors and senior management of HuadongMedicine Co., Ltd. (hereinafter referred to as the "Company") hereby guarantee that the information presented inthis quarterly report is authentic, accurate and complete and free of false records, misleading statements or materialomissions, and shall undertake individual and joint legal liabilities.
2. The Company's legal representative, the officer in charge of accounting, and the head of accounting department(accounting supervisor) hereby declare that the financial information in this quarterly report is authentic, accurateand complete.
3. Has the Third Quarterly Report been audited?
□Yes ?No
According to “Stock Listing Rules of the Shenzhen Stock Exchange”, if listed companies have both Chinese andother language version of public notice, they should ensure the content of both versions are the same. In the caseof discrepancy, the original version in Chinese shall prevail.
I. Key Financial Data
(I) Key accounting data and financial indicators
Does the Company need to retroactively adjust or restate the accounting data of previous years?
□Yes ?No
| Current reporting period | Increase or decrease during the current reporting period compared with the same period of last year | Beginning of the year to the end of the reporting period | Change from the beginning of the year to the end of the reporting period over the end of last year | |
| Operating revenue (RMB) | 10,512,589,144.83 | 5.03% | 31,477,654,750.50 | 3.56% |
| Net profit attributable to shareholders of the listed company (RMB) | 866,306,099.25 | 14.71% | 2,562,326,688.45 | 17.05% |
| Net profit attributable to shareholders of the listed company after deduction of non-recurring profits and losses (RMB) | 856,621,563.99 | 16.93% | 2,481,821,808.08 | 14.90% |
| Net cash flow from operating activities (RMB) | — | — | 2,506,402,808.91 | 11.43% |
| Basic earnings per share (RMB/share) | 0.4969 | 15.14% | 1.4644 | 17.06% |
| Diluted earnings per share (RMB/share) | 0.4953 | 14.84% | 1.4639 | 17.08% |
| Weighted average return on equity | 3.90% | 0.11% | 11.70% | 0.49% |
| End of the current reporting period | End of last year | Change of the end of the current reporting period over the end of last year | ||
| Total assets (RMB) | 37,495,253,725.60 | 33,509,361,816.98 | 11.89% | |
| Owners' equity attributable to shareholders of listed companies (RMB) | 22,041,377,799.42 | 21,047,609,756.66 | 4.72% | |
(II) Non-recurring profit and loss items and amounts
?Applicable □Not applicable
Unit: yuan
| Item | Amount during the reporting period | Amount from the beginning of the year to the end of the reporting period | Note |
| Gains/losses on disposal of non-current assets (including the written-off part of the accrued assets impairment reserve) | -2,182,713.07 | 2,177,150.46 | |
| Government grants included in current gains/losses (excluding those closely | 66,731,056.88 | 144,217,106.52 |
| related to daily business operation, distributed constantly in accordance with defined standards in line with national policies and regulations, and constantly affecting the Company’s gains/losses) | |||
| Return of receivables impairment reserves that are individually tested for impairment | 1,270,982.00 | ||
| Other non-operating income and expenditures except the aforesaid items | -49,322,309.41 | -81,140,932.70 | |
| Other profit and loss items that satisfy the definition of non-recurring profit and loss | -387,496.90 | 32,763,929.65 | |
| Minus: Amount affected by income tax | 2,912,290.09 | 11,138,318.70 | |
| Impact on minority interests (post-tax) | 2,241,712.15 | 7,645,036.86 | |
| Total | 9,684,535.26 | 80,504,880.37 | -- |
Details of other profit and loss items conforming to the definition of non-recurring profits and losses
□Applicable ?Not applicableThe Company has no other specific circumstances of profit and loss items that meet the definition of non-recurring profits and losses.An explanation of the fact that the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on InformationDisclosure by Companies that Offer Securities to the Public - Non-recurring Profits and Losses are defined as recurring profit and lossitems
□Applicable ?Not applicableThe Company did not define the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on InformationDisclosure by Companies that Offer Securities to the Public - Non-recurring Profits and Losses as recurring profit and loss items.(III) Details and reasons for changes in key accounting data and financial indicators? Applicable □ N/A
Unit: ten thousand yuan
| Balance sheet accounts | Amount at the end of the period | Amount at the beginning of the period | Percentage change | Reasons for changes |
| Derivative financial assets | - | 1,643.45 | -100.00% | Mainly due to the disposal of foreign exchange derivatives of currency swap in the current period |
| Notes receivable | - | 681.21 | -100.00% | Mainly due to the decrease in receivable trade acceptance in the current period |
| Accounts receivable | 995,987.46 | 745,525.07 | 33.60% | Mainly due to the increase in revenue in the current period |
| Receivables financing | 61,599.73 | 143,436.63 | -57.05% | Mainly due to the due collection and discount of bank acceptance bills in the current period |
| Prepayments | 45,361.91 | 27,920.77 | 62.47% | Mainly due to the increase in prepayments for medicines in the current period |
| Other receivables | 52,601.23 | 29,113.51 | 80.68% | Mainly due the increase in receivable temporary payments in the current period |
Short-term borrowings
| Short-term borrowings | 183,336.82 | 82,238.03 | 122.93% | Mainly due to the increase in loans in the current period |
| Notes payable | 276,686.04 | 172,742.10 | 60.17% | Mainly due to the increase in payables settled by bills in the current period |
| Employee benefits payable | 20,873.78 | 35,914.85 | -41.88% | Mainly due to the payment of salary in the current period |
| Other payables | 360,601.47 | 251,862.14 | 43.17% | Mainly due the increase in payable temporary payments in the current period |
| Long-term borrowings | 6,797.95 | 52,075.95 | -86.95% | Mainly due to the debt repayment in the current period |
| Lease liabilities | 8,877.92 | 5,669.52 | 56.59% | Mainly due to the increase in lease in the current period |
| Long-term payables | 2,414.43 | 10,725.12 | -77.49% | Mainly due to the transfer of unpaid acquisition funds to non-current liabilities due within one year in the current period |
Other comprehensive income
| Other comprehensive income | -2,266.56 | -4,034.15 | 43.82% | Mainly due to the increase in foreign currency translation difference in the current period |
| Income statement accounts | Amount in the current period | Amount in the previous period | Percentage change | Reasons for changes |
Financial expenses
| Financial expenses | 3,801.78 | 6,403.32 | -40.63% | Mainly due to the increase in revenue in the current period |
| Other income | 16,898.21 | 7,061.76 | 139.29% | Mainly due to the increase in income-related governmental subsidy in the current period |
| Total return | -8,671.03 | -16,884.29 | 48.64% | Mainly due to the increase in investment income from joint ventures in the current period |
| Credit impairment loss | -5,793.99 | -4,202.25 | -37.88% | Mainly due to the increase in bad-debt provision in the current period |
| Income from disposal of assets | 217.72 | 358.76 | -39.32% | Mainly due to the decrease in income from the disposal of fixed assets in the current period |
| Non-operating revenue | 744.27 | 353.70 | 110.42% | Mainly due to the increase in payments not need to be paid and revenue in the current period |
Non-operating expenses
| Non-operating expenses | 8,891.13 | 2,400.01 | 270.46% | Mainly due to the increase in donations in the current period |
Cash flow statement accounts
| Cash flow statement accounts | Amount in the current period | Amount in the previous period | Percentage change | Reasons for changes |
| Net cash flow from operating activities | 250,640.28 | 224,927.79 | 11.43% | Mainly due to the increase in cash received from the sale of goods in the current period |
| Net cash flow from investing activities | -160,445.56 | -94,792.15 | -69.26% | Mainly due to the increase in investment in the current period |
Net cash flow from financingactivities
| Net cash flow from financing activities | -116,141.66 | -121,831.50 | 4.67% | Mainly due to the year-on-year decrease in debt repayment in the current period |
II. Shareholder Information(I) Total number of common shareholders, number of preferred shareholders with restored voting rightsand shareholdings of top 10 shareholders
Unit: Share
| Total number of common shareholders at the end of the reporting period | 91,879 | Total number of preference shareholders with restored voting rights at the end of the reporting period (if any) | 0 | |||
| Particulars about top 10 shareholders (excluding shares lent through conversions) | ||||||
| Name of shareholder | Nature of shareholder | Shareholding ratio | Number of shares held | Number of shares with trading restrictions held | Pledged, marked or locked-up status | |
| Status of shares | Quantity | |||||
| China Grand Enterprises, Inc. | Domestic non-state-owned corporation | 41.67% | 730,938,157.00 | 0 | Pledge | 147,070,000.00 |
| Hangzhou Huadong Medicine Group Co., Ltd. | State-owned corporations | 16.42% | 288,000,000.00 | 0 | N/A | 0 |
| Hong Kong Securities Clearing Company Ltd. | Overseas corporation | 3.96% | 69,449,072.00 | 0 | N/A | 0 |
| China Securities Finance Co., Ltd. | Domestic non-state-owned corporation | 1.26% | 22,186,818.00 | 0 | N/A | 0 |
| Industrial and Commercial Bank of China Limited - Huatai-PineBridge CSI 300 Exchange Traded Fund | Others | 0.98% | 17,257,945.00 | 0 | N/A | 0 |
| Industrial and Commercial Bank of China Limited - China-Europe Healthcare Hybrid Securities Investment Fund | Others | 0.81% | 14,242,403.00 | 0 | N/A | 0 |
| China Construction Bank Corporation - E Fund CSI 300 Healthcare Exchange Traded Fund | Others | 0.78% | 13,696,532.00 | 0 | N/A | 0 |
| China | Others | 0.64% | 11,222,232.00 | 0 | N/A | 0 |
| Construction Bank Corporation - E Fund CSI 300 Trading Open Index Initiated Securities Investment Fund | ||||||
| National Social Security Fund - Profile 110 | Others | 0.63% | 10,983,604.00 | 0 | N/A | 0 |
| China Construction Bank Co., Ltd. - ICBC Credit Suisse Frontier Medical Equity Investment Fund | Others | 0.57% | 10,000,000.00 | 0 | N/A | 0 |
| Particulars about top 10 shareholders without trading restrictions (excluding shares lent through conversions and locked-up shares for senior managers) | ||||||
| Name of shareholder | Number of shares without trading restrictions held | Type of shares and quantity | ||||
| Type of shares | Quantity | |||||
| China Grand Enterprises, Inc. | 730,938,157.00 | RMB-denominated ordinary share | 730,938,157.00 | |||
| Hangzhou Huadong Medicine Group Co., Ltd. | 288,000,000.00 | RMB-denominated ordinary share | 288,000,000.00 | |||
| Hong Kong Securities Clearing Company Ltd. | 69,449,072.00 | RMB-denominated ordinary share | 69,449,072.00 | |||
| China Securities Finance Co., Ltd. | 22,186,818.00 | RMB-denominated ordinary share | 22,186,818.00 | |||
| Industrial and Commercial Bank of China Limited - Huatai-PineBridge CSI 300 Exchange Traded Fund | 17,257,945.00 | RMB-denominated ordinary share | 17,257,945.00 | |||
| Industrial and Commercial Bank of China Limited - China-Europe Healthcare Hybrid Securities Investment Fund | 14,242,403.00 | RMB-denominated ordinary share | 14,242,403.00 | |||
| China Construction Bank Corporation - E Fund CSI 300 Healthcare Exchange Traded Fund | 13,696,532.00 | RMB-denominated ordinary share | 13,696,532.00 | |||
| China Construction Bank Corporation - E Fund CSI 300 Trading Open Index Initiated Securities Investment Fund | 11,222,232.00 | RMB-denominated ordinary share | 11,222,232.00 | |||
| National Social Security Fund - Profile 110 | 10,983,604.00 | RMB-denominated ordinary share | 10,983,604.00 | |||
| China Construction Bank Co., Ltd. - ICBC Credit Suisse Frontier Medical Equity Investment Fund | 10,000,000.00 | RMB-denominated ordinary share | 10,000,000.00 | |||
| Explanation on associated relationships or concerted actions among the above-mentioned shareholders | The Company did not know whether there was any relationship among the above shareholders, or whether they were parties acting in concert. |
| Description of the participation in margin trading business of the top 10 shareholders (if any) | As of the end of the current reporting period, none of the top 10 common shareholders of the Company held shares of the Company through securities margin trading accounts. |
Participation of shareholders with a shareholding ratio of over 5%, top 10 shareholders, and top 10 shareholders holding tradableshares without trading restriction conditions in refinancing lending? Applicable □ N/A
Unit: Share
| Participation of shareholders with a shareholding ratio of over 5%, top 10 shareholders, and top 10 shareholders holding tradable shares without trading restriction conditions in refinancing lending | ||||||||
| Name of shareholder (full name) | Shareholding in common accounts and credit accounts at the beginning of the period | Shares lent and not returned at the beginning of the period | Shareholding in common accounts and credit accounts at the end of the period | Shares lent and not returned at the end of the period | ||||
| Total number | Proportion in total share capital | Total number | Proportion in total share capital | Total number | Proportion in total share capital | Total number | Proportion in total share capital | |
| China Construction Bank Corporation - E Fund CSI 300 Healthcare Exchange Traded Fund | 12,896,932.00 | 0.74% | 328,500 | 0.02% | 13,696,532.00 | 0.78% | 0 | 0.00% |
| China Construction Bank Corporation - E Fund CSI 300 Trading Open Index Initiated Securities Investment Fund | 2,462,532.00 | 0.14% | 12,800 | 0.00% | 11,222,232.00 | 0.64% | 0 | 0.00% |
| Industrial and Commercial Bank of China Limited - Huatai-PineBridge CSI 300 Exchange Traded Fund | 6,639,145.00 | 0.38% | 17,500 | 0.00% | 17,257,945.00 | 0.98% | 0 | 0.00% |
Change in the top 10 shareholders or the top 10 shareholders holding tradable shares without trading restrictions compared with the
end of the previous period due to shares lent/returned through conversions
□ Applicable ? N/A
(II) Total number of preferred shareholders of the Company and shareholdings of top 10 shareholders
□ Applicable ? N/A
III. Other Important Matters? Applicable □ N/A(I) Overview of the Company’s overall operations during the reporting periodDuring the reporting period, the Company faced numerous uncertainties in the macro-environment and profound changes and challenges within China's pharmaceutical industry. Despitethese, the Company earnestly implemented its annual operation plan, operated in a standardized andstable manner, and proactively advanced various operation management tasks in line with its mediumand long-term development strategy, resulting in stable growth in overall performance.
From January to September 2024, the Company achieved the operating revenue of 31.478 billionyuan, up 3.56% year on year, the net profit attributable to shareholders of listed companies of 2.562billion yuan, up 17.05% year on year, and the net profit attributable to shareholders of listedcompanies after deducting non-recurring gains/losses of 2.482 billion yuan, up 14.90% year on year.From January to September 2024, after deducting the equity incentive expenses and the profits andlosses of participating and holding R&D institutions, the Company achieved the net profit attributableto shareholders of listed companies after deducting non-recurring gains/losses of 2.739 billion yuan,up 26.81% compared with the net profit attributable to shareholders of listed companies afterdeducting non-recurring gains/losses in the same period in 2023.In Q3 2024, the Company continued its favorable growth trend in the first half of the year. TheCompany achieved the total operating revenue of 10.513 billion yuan, up 5.03% year on year. Thenet profit attributable to shareholders of listed companies was 866 million yuan, up 14.71% year onyear. The net profit attributable to shareholders of listed companies after deducting non-recurringgains/losses was 857 million yuan, up 16.93% year on year.From January to September 2024, the Company’s pharmaceutical industry segment achieved theoperating revenue of 9.941 billion yuan (including CSO business), up 10.53% year on year, and thenet profit attributable to the parent company of 2.140 billion yuan, up 14.49% year on year. Amongthem, in Q3 2024, the pharmaceutical industry segment achieved the operating revenue of 3.243billion yuan (including CSO business), up 10.32% year on year, and the net profit attributable to theparent company of 755 million yuan, up 20.44% year on year.
During the reporting period, the Company’s pharmaceutical business segment witnessedcontinuous and stable growth as a whole. From January to September 2024, the segment achieved theoperating revenue of 20.571 billion yuan, up 1.38% year on year, and the net profit of 323 millionyuan, up 2.09% year on year.During the reporting period, the Company’s aesthetic medicine segment witnessed stable growthas a whole. From January to September 2024, the segment achieved the total operating revenue of
1.909 billion yuan (excluding internal offsetting factors), up 1.90% year on year. Sinclair, theCompany’s wholly-owned subsidiary and the global operating platform of its aesthetic medicinebusiness based in the UK, proactively expanded sales of its aesthetic medicine injection, fillers andEBD products globally. During the reporting period, affected by sluggish global economic growthand other factors, Sinclair achieved the operating revenue of about 776 million yuan from January toSeptember 2024, down 20.30% year on year. From January to September 2024, Sinclair (Shanghai),the Company’s wholly-owned subsidiary for its aesthetic medicine business, achieved the operatingrevenue of 909 million yuan, up 10.31% year on year, witnessing continuous improvement inprofitability and making important contribution to the continuous growth of the Company’s overallperformance. In the future, the Company will intensify its efforts to integrate global resources andwill continue to advance the registration, admission, global coverage in potential markets, and marketshare expansion of its core products. Currently, the Company has comprehensively facilitated theregistration of its products in key overseas aesthetic medicine markets. Sinclair's entire injectionportfolio has been registered and launched in over ten core markets in the Middle East. Additionally,more than half of the procedures for registering its EBD core products in the Middle East's keymarkets have been completed. The registration of various core injectable products, such as Ellansé
?
S, MaiLi, and KIO015, is actively progressing in the U.S. With the gradual launch of its core productlines in key overseas markets, the Company is expected to enhance its brand impact and corecompetitiveness, thereby continuously fueling its growth in the international aesthetic medicine sector.In the meantime, the Company will facilitate the launch of its high-end aesthetic medicine productsin the domestic market and continue to enrich its product portfolio to capitalize on the emerginggrowth of Huadong Medicine’s aesthetic medicine business.
During the reporting period, the Company made active progress in the international marketexpansion of its industrial microbiology segment, witnessing a favorable overall growth trend. FromJanuary to September 2024, the segment achieved operating revenue of 443 million yuan, up 30.17%year on year. With the continuous expansion of its overseas markets and a constant increase in thenumber of clients, the industrial microbiology segment is expected to maintain rapid growth.
(II) R&D situation
1. Overall R&D situation
During the reporting period, being “Scientific Research-based and Patient-centered”, theCompany further devoted itself to the treatment in the fields of endocrinology, autoimmunity andoncology, continuously increased the R&D input, kept enriching the layout of innovative medicineR&D, enhanced the construction of innovative R&D ecology and technological platform, and activelyadvanced the progress of clinical trials, with multiple major staged achievements made. From Januaryto September 2024, the Company’s R&D investment in the pharmaceutical industry (excluding equityinvestment) was 1.607 billion yuan, up 0.60% year on year. Among them, direct R&D expenditurewas 1.149 billion yuan, up 12.41% year on year, which accounts for 11.69% of the operating revenueof the pharmaceutical industry.
2. Innovative R&D lines
The Company placed the focus of its innovative R&D on three core fields of oncology,endocrinology and autoimmunity. To date, there have been over 70 innovative product lines. As itsproduct lines are continuously enriched, the Company has constantly expanded its innovativemedicine field to the R&D of multiple types of medicines including small-molecule medicines,polypeptides, ADCs, bispecific or multispecific antibody medicines, as well as the explorationtowards innovative therapies for diseases in the fields of endocrinology, autoimmunity and oncology.
3. Progress of R&D of innovative medicines, innovative medical apparatuses andbiosimilar medicines
Oncology
The Company endeavored to build the world’s leading platform for R&D of innovative cancermedicines and established more than 30 innovative antineoplastic medicines covering targeted small-molecule medicines, ADCs, antibodies, PROTAC, etc. through discovery, screening and verificationof new targets in preliminary R&D of medicines.
The marketing authorization application in China of ELAHERE
?(R&D code: IMGN853,HDM2002), the world’s first-in-class Mirvetuximab Soravtansine Injection, introduced by theCompany, for platinum-resistant ovarian cancer, was accepted and is now under comprehensivereview. Passing the innovative policy approval of “Hong Kong & Macao Registered Medicine Accessto GBA Program” in August 2024, the product was launched in the Guangdong-Hong Kong-MacaoGreater Bay Area to benefit more patients.
The marketing authorization application of Mefatinib Tablet, the Company’s first-class newmedicine, for the first-line treatment of Locally Advanced or Metastatic Non-small Cell Lung Cancer(NSCLC) patients with an exon L858R mutation in EGFR 21 was accepted in May 2024. The clinical
and pharmaceutical inspections were completed in September and October 2024, respectively, andthe application is now under review.
HDM2005, an ADC product independently developed by the Company and receptor tyrosinekinase-like orphan receptor 1 (ROR1), is used for the treatment of advanced malignant neoplasm.The Company completed the enrollment of the first subject in clinical trial in China in August 2024.At present, the study is in the stage of third dose escalation.The IND application in China of HPK-1 PROTAC (hematopoietic progenitor kinase1proteolysis targeting chimera), the Company’s first self-developed small-molecule anti-tumormedicine HDM2006, was approved in October 2024. The product is used for the treatment ofadvanced solid tumors.
The IND application in China of HDM2027 (HDP-101), an innovative medicine introduced bythe Company, was approved in October 2024. The product is used for the treatment of clonalhematological diseases with positive B cell maturation antigen (BCMA), such as recurrent/refractorymultiple myeloma.
The company's self-developed ADC products with innovative targets, HDM2020, HDM2012and HDM2017, have completed PCC confirmation and entered the IND R&D stage. IND applicationsin China and the U.S. are expected to be submitted in 2025.
Endocrinology
HDM1002, an oral small-molecule GLP-1 receptor stimulant developed independently by theCompany, completed the enrollment of all subjects for clinical trial for overweight or obesity phaseII indications. The top-line results are expected to be obtained in October 2024. The pre-III phasecommunication is expected to be conducted in Q4 2024. In the meantime, the enrollment of the firstsubject for clinical trial for diabetes mellitus phase II indication was completed.
Phase Ia and phase Ib clinical trials in China of the GLP-1/GIPR dual-target long-acting agonistHDM1005 independently developed by the Company are smoothly progressing. It is anticipated thatthe phase Ia clinical research report and the top-line results from phase Ib (Part I) will be available inQ4 2024. Phase II clinical trial is expected to be initiated in early 2025.
DR10624, a multiple agonist targeting FGF21R/GCGR/GLP-1R developed by Zhejiang DoerBiologics Co., Ltd., a holding subsidiary of the Company, is currently undergoing phase Ib/IIa clinicaltrials for obesity with hypertriglyceridemia in New Zealand. The phase II clinical trial for severehypertriglyceridemia in China has been initiated, and the enrollment and dosing of the first subjecthave been completed.
To date, Semaglutide Injection has completed the enrollment of all subjects in the phase IIIclinical study for diabetes indication. It is expected that the main endpoint data will be obtained andpre-BLA communication will be submitted in Q4 2024. IND application for Semaglutide Injectionfor weight management has been approved by the end of September 2024.
Insulin Degludec Injection completed the enrollment of all subjects during phase III clinicalstudy. It is expected that main end-point data will be obtained in Q4 2024.
Insulin Degludec and Insulin Aspart Injection completed the enrollment of the first subjectduring phase III clinical study in August 2024.
Autoimmunity
The Company has had over 10 varieties of biomedicines and small-molecule innovative productsin the field of autoimmunity.
Rilonacept for Injection (ARCALYST
?), a globally innovative product from Kiniksa in the U.S.,is used for the treatment of Cryo-Pyrin-Associated Periodic Syndromes (CAPS) and recurrentpericarditis (RP). The marketing authorization applications for both CAPS and RP are currently underreview.
The marketing authorization application in China of HDM3001 (QX001S), a biological similarof Ustekinumab for plaque psoriasis developed by the Company in cooperation with QyunsTherapeutics, is under comprehensive review.
The innovative medicine HDM3016 (QX005N) in cooperation with Qyuns Therapeuticscompleted enrollment of the first subject for phase III clinical study for two indications of prurigonodularis and atopic dermatitis in May 2024.
The products in cooperation with Arcutis of the U.S., Roflumilast Cream (0.3%) for plaquepsoriasis in patients aged 6 or above, Roflumilast Foam (0.3%) for seborrheic dermatitis in patientsaged 9 or above, and Roflumilast Cream (0.15%) for atopic dermatitis in adults and children aged 6or above, have all been approved by the FDA. In September 2024, Arcutis announced that the FDAhas accepted their sNDA for Roflumilast Foam (0.3%) to treat scalp and body psoriasis in adults andadolescents aged 12 or above. In addition, the IND applications for Roflumilast Cream for theindications of atopic dermatitis and plaque psoriasis in China were approved in September 2024. Theenrollment of the first subject is expected to be completed in Q4 2024.
Innovative pharmaceutical devices
The Dynamic Monitoring System of Glomerular Filtration Rate and Relmapirazin Injectionjointly developed by the Company and MediBeacon, Inc. of the U.S. are both under registration
review stage in China. Additionally, MediBeacon has submitted all documents regarding themarketing authorization application of the MediBeacon
?
Dynamic Monitoring System of GlomerularFiltration Rate (including the dynamic monitoring system and Relmapirazin Injection) to the FDA bymeans of rolling submission, which was formally accepted in July 2023 and is now under review. Todate, all clinical, pharmaceutical, and medical device production inspections have been completed.
4. Approval of generic medicines
| S/N | Type | Project name | Specification | Time of Approval |
| 1 | Anticoagulant | Fondaparinux Sodium Injection | 2.5 mg/0.5 mL, 5 mg/0.4 mL, 7.5 mg/0.6 mL, 10 mg/0.8 mL | Approved by FDA of the U.S. in August 2024 |
5. Progress of aesthetic medicine registration
(1) Progress of aesthetic medicine products in China
| S/N | Type | Product Designation | Purpose | Latest Progress |
| 1 | Injections | MaiLi Extreme Hyaluronic acid | Facial filling | Supplementary notice on opinions received from the Center for Medical Device Evaluation, NMPA in July 2024; pre-review submitted in September; currently under technical review |
| 2 | Injections | MaiLi Precise Hyaluronic acid | Facial filling | Enrollment of all subjects for clinical trial completed in April 2024; all follow-ups for main end-point expected to be completed by the end of 2024 |
| 3 | Injections | Ellansé-M | Facial filling | Clinical follow-ups of main end-point of all subjects for clinical trial in China completed in the middle of 2024; 18-month safety follow-up in progress |
| 4 | Injections | LanlumaV Poly-l-lactic Acid | Facial filling | Enrollment of the first subject for clinical trial in China completed in June 2024; national enrollment of subjects in progress |
| 5 | Injections | KIO015 | Facial skin improvement | Expert seminar on clinical trial scheme completed in October 2024; all pre-trial work progressed orderly |
| 6 | Injections | Recombinant botulinum toxin type A | Treatment of moderate to severe frown lines | Collaborative product with Chongqing Yuyan. A clinical summary meeting held on September 12 organized by 16 research centers. The phase III clinical trial showed a high degree of consistency with the completed phase I/II clinical results; its effectiveness, safety and immunogenicity have reached the established end-point of clinical trials, and it is superior to the control medicines. |
| 7 | Energy based devices | V20 | Improvement of skin wrinkles, hair removal, benign pigmented epidermis and skin lesions, benign skin vascular lesions | Approved in September 2024 |
| and inflammatory acne | ||||
| 8 | Energy based devices | V30 | Improvement of body and facial wrinkles, benign skin lesions, benign vascular lesions, benign pigmented lesions, inflammatory acne, hair removal, etc. | To be submitted for registration |
| 9 | cosmetic devices | Préime DermaFacial | Facial skin management | Pre-launching work in preparation |
(2) Progress of overseas registration of cosmetic medicine productsIn the meantime, the Company has continued to plan and promote the overseas registration ofits aesthetic medicine products. The MaiLi series of products received approval in Singapore in June2024, and a new product launch conference took place on July 30. KIO015, a dermal filler forinjection, is currently undergoing technical review for EU CE certification and is expected to receivethe certification in 2025. Currently, the Company has registered and launched all its injection products,including regenerative materials (Ellansé
? and Lanluma
?), hyaluronic acid fillers (MaiLi andPerfectha
?), and thread lifting products (Silhouette Soft
? and Silhouette Instalift
?), in over ten majorMiddle Eastern markets. Additionally, the registrations of EBD core products like Cooltech, Elysion,and the Primelase series are being actively promoted, with more than half of the registrationprocedures completed in key markets. Ellansé
?
S has been approved for clinical in the U.S. andclinical trial enrollment are scheduled to begin in Q4 2024. In the meantime, the Company has startedthe registration of the hyaluronic acid filler MaiLi in the U.S., and is actively preparing for theregistration and clinical trials of other injection products such as KIO015.(III) BD cooperation as of the date of the ReportOn July 12, 2024, the Company’s wholly-owned subsidiary Zhongmei Huadong signed theExclusive Product License Agreement with Suzhou Auzone Biological Technology Co., Ltd.According to the agreement, Zhongmei Huadong obtained the exclusive license of the globallyinnovative product TTYP01 Tablets (Edaravone Tablets) in Chinese mainland, Hong Kong, Macaoand Taiwan, including rights for development, registration, production and commercialization. Pleaserefer to the Announcement on Signing an Exclusive Permit Agreement for Products by a Wholly-owned Subsidiary with Auzone (Announcement No.: 2024-060) disclosed by the Company on Cninfo(http://www.cninfo.com.cn) for details.
On July 19, 2024, the Company’s wholly-owned subsidiary Zhongmei Huadong signed theCooperative Development and Market Promotion Service Agreement on QX005N with itsshareholding company Qyuns Therapeutics Co., Ltd. Listed on the Stock Exchange of Hong Kongwith the stock code of 2509.HK. According to the agreement, Zhongmei Huadong obtained theexclusive cooperative development rights, exclusive market promotion option and preferentialcooperation right to transfer the marketing authorization holder of QX005N of Qyuns Therapeuticsin Chinese mainland, Hong Kong SAR, Macao SAR and Taiwan, China. Please refer to theAnnouncement on Signing a Cooperative Development and Market Promotion Service Agreement forProducts by a Wholly-owned Subsidiary (Announcement No.: 2024-061) disclosed by the Companyon Cninfo (http://www.cninfo.com.cn) for details.
On July 19, 2024, to further enhance the Company’s core competitiveness in the field oftraditional Chinese medicine and enrich its product lines of external preparations, the Company andits wholly-owned subsidiary Huadong Medicine (Xi’an) Bohua Pharmaceutical Co., Ltd. signed theAgreement on Acquiring the Equity of Guizhou HengBa Pharmaceutical Limited Liability Companywith Guizhou HengBa Pharmaceutical Limited Liability Company and its original shareholders.According to the agreement, Bohua Pharmaceutical acquired 100% equity of HengBa Pharmaceutical.The transaction base price was 528.47 million yuan and floating consideration would be paid asagreed in the agreement. Please refer to the Announcement on Acquisition of 100% Equity of GuizhouHengBa Pharmaceutical Limited Liability Company (Announcement No.: 2024-064) disclosed bythe Company on Cninfo (http://www.cninfo.com.cn) for details.
On August 2, 2024, the Company’s wholly-owned subsidiary Huadong Medicine (Hangzhou)Co., Ltd. signed an Exclusive Commercialization Cooperation Agreement with Beijing ImunopharmTechnology Co., Ltd. According to the agreement, Huadong Medicine Hangzhou obtained theexclusive commercialization rights of CD19-targeting autologous CAR-T candidate product IM19chimeric antigen receptor T cell injection in Chinese mainland (“licensed area”). Please refer to theAnnouncement on Signing an Exclusive Commercialization Cooperation Agreement for Products bya Wholly-owned Subsidiary (Announcement No.: 2024-065) disclosed by the Company on Cninfo(http://www.cninfo.com.cn) for details.
On August 14, 2024, the Company’s wholly-owned subsidiary Zhongmei Huadong signed an
Exclusive Product License Agreement with IMBiologics Corp. (“IMB”) from the Republic of Korea.According to the agreement, Zhongmei Huadong obtained the exclusive license of two globallyinnovative autoimmune products of IMB-101 and IMB-102 in 37 Asian countries including China(excluding Japan, Republic of Korea and North Korea), including development, registration,production and commercialization rights. Please refer to the Announcement on Signing an ExclusiveLicense Agreement for Products by a Wholly-owned Subsidiary with IMBiologics (AnnouncementNo.: 2024-071) disclosed by the Company on Cninfo (http://www.cninfo.com.cn) for details.On September 20, 2024, Huadong Medicine (Hangzhou) Co., Ltd., a wholly-owned subsidiaryof our company, reached an exclusive strategic cooperation with Huisheng Biopharmaceutical Co.,Ltd. Huisheng is a non-wholly-owned subsidiary of Hainan Sihuan Pharmaceutical Co., Ltd. (StockCode: 00460.HK). The cooperation concerns the commercial rights and interests of their approvedinnovative product, Huiyoujing (Ganagliflozin Proline Tablets), in the Chinese mainland. Huiyoujingis an SGLT-2 inhibitor for the treatment of type 2 diabetes approved by Huisheng Pharma in China.(IV) Receptions, including research, communication and interviews, undertaken duringthe reporting period
| Reception date | Reception address | Reception method | Type of visitor | Reception object | Main content of discussion and information provided | Index of basic information of the research |
| August 16, 2024 | Conference Room of the Company | Online meeting | Institution and individual | Hua Chuang Securities, CSC Financial, Citic Securities, etc. | 2024 Interim Performance Exchange Meeting of Huadong Medicine | Please refer to the Record of Investor Relations Activities on August 16, 2024 presented on the websites of irm.cninfo.com.cn and cninfo.com.cn for details. |
IV. Quarterly Financial Statements
(I) Financial statements
1. Consolidated balance sheet
Prepared by: Huadong Medicine Co., Ltd.
September 30, 2024
Unit: yuan
| Item | Closing balance | Opening balance |
| Current assets: | ||
| Monetary funds | 4,739,290,249.11 | 4,663,378,011.64 |
| Deposit reservation for balance | ||
| Lendings to banks and other financial institutions | ||
| Trading financial assets | ||
| Derivative financial assets | 16,434,493.97 | |
| Notes receivable | 6,812,089.97 | |
| Accounts receivable | 9,959,874,617.50 | 7,455,250,690.83 |
| Receivables financing | 615,997,329.90 | 1,434,366,300.69 |
| Prepayments | 453,619,057.35 | 279,207,655.40 |
| Premium receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance contract reserve receivable | ||
| Other accounts receivable | 526,012,334.37 | 291,135,104.33 |
| Including: Interest receivable | ||
| Dividends receivable | 223,608.84 | 2,623,608.84 |
| Financial assets purchased for resale | ||
| Inventory | 4,906,568,632.85 | 4,290,214,266.03 |
| Including: Data resources | ||
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 52,102,427.05 | 59,881,757.08 |
| Total current assets | 21,253,464,648.13 | 18,496,680,369.94 |
| Non-current assets: | ||
| Loans and advances issued | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investment | 1,504,680,048.89 | 1,535,907,809.85 |
| Investment in other equity instruments | 597,327,085.25 | 565,223,872.68 |
| Other non-current financial assets | ||
| Investment real estate | 12,056,372.93 | 12,746,181.87 |
| Fixed assets | 4,151,614,313.81 | 4,140,144,817.51 |
| Works in progress | 956,356,801.65 | 913,147,212.17 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 163,209,658.39 | 151,175,007.16 |
| Intangible assets | 2,548,279,294.67 | 2,333,787,357.62 |
| Including: Data resources | ||
| Development expenses | 1,220,784,671.74 | 992,532,091.86 |
| Including: Data resources | ||
| Goodwill | 2,909,064,173.67 | 2,598,696,062.31 |
| Long-term unamortized expenses | 21,569,252.06 | 20,053,854.34 |
| Deferred income tax assets | 232,727,968.46 | 187,808,574.44 |
| Other non-current assets | 1,924,119,435.95 | 1,561,458,605.23 |
| Total non-current assets | 16,241,789,077.47 | 15,012,681,447.04 |
| Total assets | 37,495,253,725.60 | 33,509,361,816.98 |
| Current liabilities: | ||
| Short-term borrowings | 1,833,368,155.46 | 822,380,292.37 |
| Borrowings from the central bank | ||
| Borrowings from other banks and other financial institutions | ||
| Trading financial liabilities |
| Derivative financial liabilities | ||
| Notes payable | 2,766,860,378.77 | 1,727,420,960.30 |
| Accounts payable | 4,856,894,594.16 | 4,374,832,979.95 |
| Advance receipts | 1,707,483.62 | 1,393,551.48 |
| Contract liabilities | 128,171,949.61 | 135,459,275.17 |
| Expense for financial assets sold for repurchase | ||
| Deposits from customers and interbank | ||
| Receivings from vicariously traded securities | ||
| Receivings from vicariously underwriting securities | ||
| Employee compensation payable | 208,737,763.77 | 359,148,474.25 |
| Taxes and dues payable | 536,518,574.86 | 489,385,055.57 |
| Other accounts payable | 3,606,014,657.41 | 2,518,621,382.87 |
| Including: Interests payable | ||
| Dividends payable | 143,024,219.60 | 143,024,219.60 |
| Fees and commissions payable | ||
| Reinsurance accounts payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 378,428,427.31 | 359,342,623.38 |
| Other current liabilities | 16,262,707.17 | 14,621,494.85 |
| Total current liabilities | 14,332,964,692.14 | 10,802,606,090.19 |
| Non-current liabilities: | ||
| Reinsurance contract reserves | ||
| Long-term borrowings | 67,979,467.42 | 520,759,460.07 |
| Bonds payable | ||
| Including: Preferred share | ||
| Perpetual bonds | ||
| Lease liabilities | 88,779,151.93 | 56,695,158.59 |
| Long-term accounts payable | 24,144,309.00 | 107,251,248.59 |
| Long-term employee compensation payable | ||
| Estimated liabilities | 37,294,797.00 | 37,184,074.06 |
| Deferred income | 147,307,332.45 | 171,056,435.34 |
| Deferred income tax liabilities | 180,093,287.69 | 184,373,974.04 |
| Other non-current liabilities | 46,192,650.00 | 47,170,650.00 |
| Total non-current liabilities | 591,790,995.49 | 1,124,491,000.69 |
| Total liabilities | 14,924,755,687.63 | 11,927,097,090.88 |
| Owners’ equity: | ||
| Share capital | 1,754,262,548.00 | 1,754,425,348.00 |
| Other equity instruments | ||
| Including: Preferred share | ||
| Perpetual bonds | ||
| Capital reserve | 2,487,606,390.48 | 2,446,313,774.82 |
| Minus: Treasury stock | 80,458,069.07 | 84,519,369.07 |
| Other comprehensive income | -22,665,647.88 | -40,341,544.18 |
| Special reserves | ||
| Surplus reserves | 1,277,779,972.18 | 1,277,779,972.18 |
| General risk reserves | ||
| Undistributed profit | 16,624,852,605.71 | 15,693,951,574.91 |
| Total owners' equity attributable to the parent company | 22,041,377,799.42 | 21,047,609,756.66 |
| Minority interests | 529,120,238.55 | 534,654,969.44 |
| Total owners’ equity | 22,570,498,037.97 | 21,582,264,726.10 |
| Total liabilities and owners’ equity | 37,495,253,725.60 | 33,509,361,816.98 |
Legal Representative: Lv Liang Officer In Charge of Accounting: Lv Liang Head of Accounting Department: Qiu Renbo
2、Consolidated income statements from the beginning of the year to the end of the reporting period
Unit: yuan
| Item | Amount incurred in the current period | Amount incurred in the previous period |
| I. Total operating revenue | 31,477,654,750.50 | 30,394,530,509.51 |
| Including: Operating revenue | 31,477,654,750.50 | 30,394,530,509.51 |
| Interest revenue | ||
| Premiums earned | ||
| Fees and commissions revenue | ||
| II. Total operating costs | 28,288,811,654.13 | 27,539,505,233.90 |
| Including: Operating costs | 21,231,803,408.72 | 20,711,433,505.92 |
| Interest expense | ||
| Fees and commissions expenditures | ||
| Surrender value | ||
| Net payments for insurance claims | ||
| Net provision for insurance liabilities | ||
| Policy dividend expenditures | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 163,791,954.73 | 155,063,860.73 |
| Selling expenses | 4,727,512,478.83 | 4,662,350,509.65 |
| Management expenses | 1,179,023,165.24 | 1,105,836,120.39 |
| R&D expenses | 948,662,894.53 | 840,788,063.58 |
| Financial expenses | 38,017,752.08 | 64,033,173.63 |
| Including: Interest expense | 86,594,008.13 | 84,321,926.54 |
| Interest revenue | 80,012,995.89 | 61,683,137.57 |
| Plus: Other incomes | 168,982,096.89 | 70,617,560.34 |
| Investment income (loss expressed with “-”) | -86,710,253.53 | -168,842,873.72 |
| Including: Investment income in associates and joint ventures | -54,563,003.59 | -145,314,249.10 |
| Income from derecognition of financial assets measured on the basis of amortization costs | ||
| Exchange earnings (loss expressed with “-”) | ||
| Net income of exposure hedge (loss expressed with “－”) | ||
| Income from changes in fair value (loss expressed with “-”) | -6,616,639.87 | |
| Credit impairment loss (loss expressed with “-”) | -57,939,915.17 | -42,022,538.00 |
| Asset impairment loss (loss | -3,175,583.57 |
| expressed with “-”) | ||
| Proceeds from disposal of assets (loss expressed with “-”) | 2,177,150.46 | 3,587,637.81 |
| III. Operating profit (loss expressed with “-”) | 3,215,352,175.02 | 2,708,572,838.60 |
| Plus: Non-operating incomes | 7,442,671.20 | 3,536,981.13 |
| Minus: Non-operating expenses | 88,911,294.16 | 24,000,149.00 |
| IV. Total profit (total loss expressed with “-”) | 3,133,883,552.06 | 2,688,109,670.73 |
| Minus: Income tax expense | 571,279,294.45 | 494,560,848.37 |
| V. Net profit (net loss expressed with “-”) | 2,562,604,257.61 | 2,193,548,822.36 |
| (I) Classification by continuity of operation | ||
| 1. Net profits from continuing operations (net loss expressed with “-”) | 2,562,604,257.61 | 2,193,548,822.36 |
| 2. Net profit from discontinued operations (net loss expressed with “-”) | ||
| (II) Classification by ownership | ||
| 1. Net profit attributable to the owners of the parent company | 2,562,326,688.45 | 2,189,046,844.62 |
| 2. Minority interest income | 277,569.16 | 4,501,977.74 |
| VI. Net of tax of other comprehensive income | 17,675,896.30 | -3,888,970.61 |
| Net of tax of other comprehensive income attributable to the owner of the parent company | 17,675,896.30 | -3,888,970.61 |
| (I) Other comprehensive income that cannot be reclassified into the profits and losses | -6,582,969.35 | -1,453,894.59 |
| 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 | -6,582,969.35 | -1,453,894.59 |
| 4. Changes in fair value by the enterprise’s credit risks | ||
| 5. Others | ||
| (II) Other comprehensive income that can be reclassified into the profits and losses | 24,258,865.65 | -2,435,076.02 |
| 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 | 5,871,618.93 | |
| 6. Converted difference in foreign currency financial statements | 24,258,865.65 | -8,306,694.95 |
| 7. Others | ||
| Net of tax of other comprehensive income attributable to minority |
| shareholders | ||
| VII. Total Comprehensive Income | 2,580,280,153.91 | 2,189,659,851.75 |
| Total comprehensive income attributable to the owner of the parent company | 2,580,002,584.75 | 2,185,157,874.01 |
| Total comprehensive income attributable to minority shareholders | 277,569.16 | 4,501,977.74 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | 1.4644 | 1.2510 |
| (II) Diluted earnings per share | 1.4639 | 1.2503 |
If there is a business combination under common control in this period, the net profit of the combined party before the combination isRMB 0.00, and the net profit of the combined party in the previous period is RMB 0.00.Legal Representative: Lv Liang Officer In Charge of Accounting: Lv Liang Head of Accounting Department: Qiu Renbo
3、Consolidated cash flow statements from the beginning of the year to the end of the reporting period
Unit:yuan
| Item | Amount incurred in the current period | Amount incurred in the previous period |
| I. Cash flows from operating activities: | ||
| Cash received from selling goods and providing services | 33,334,628,825.63 | 32,682,451,836.29 |
| 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 savings and investment funds of policyholders | ||
| Cash for interest, fees 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 | 15,628,115.69 | 53,209,369.56 |
| Other cash received related to business activities | 566,037,648.66 | 594,342,751.13 |
| Subtotal of cash inflow from operating activities | 33,916,294,589.98 | 33,330,003,956.98 |
| Cash paid for purchases of goods and services | 21,947,910,270.08 | 21,403,392,127.90 |
| 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 for interest, handling fees and commissions | ||
| Cash for payment of dividends on policies | ||
| Cash paid to and for employees | 3,446,050,305.28 | 2,731,357,413.23 |
| Various taxes and fees paid | 1,962,213,221.83 | 2,018,766,158.13 |
| Payment of other cash related to business activities | 4,053,717,983.88 | 4,927,210,373.91 |
| Subtotal of cash outflows from operating activities | 31,409,891,781.07 | 31,080,726,073.17 |
| Net cash flow from operating activities | 2,506,402,808.91 | 2,249,277,883.81 |
| II. Cash flows arising from investment activities: | ||
| Cash received from investment recovery | 1,000,000.00 | |
| Cash received from obtaining investment income | 45,200,000.00 | 76,500,000.00 |
| Net cash recovered from disposal of fixed assets, intangible assets and other long-term assets | 2,528,623.35 | 5,487,494.29 |
| Net cash received from disposal of subsidiaries and other business units | ||
| Other cash received related to investment activities | 263,981,767.12 | 143,241,408.53 |
| Subtotal of cash inflows from investing activities | 312,710,390.47 | 225,228,902.82 |
| Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets | 930,485,860.82 | 960,170,505.01 |
| Cash paid for investment | 152,360,852.87 | 71,474,250.00 |
| Net increase in pledged loans | ||
| Net cash paid for acquisition of subsidiaries and other business entities | 348,814,981.61 | 137,922,688.09 |
| Payments of other cash related to investing activities | 485,504,341.65 | 3,582,952.58 |
| Subtotal of cash outflows from investing activities | 1,917,166,036.95 | 1,173,150,395.68 |
| Net cash flows from investing activities | -1,604,455,646.48 | -947,921,492.86 |
| III. Cash flows arising from financing activities: | ||
| Cash received by absorbing investment | 10,800,300.00 | |
| Including: Cash received by subsidiaries from minority shareholders' investment | ||
| Cash received from obtaining loans | 3,543,115,046.17 | 3,618,149,860.84 |
| Other cash received related to financing activities | 343,706,321.33 | 725,958,879.33 |
| Subtotal of cash inflows from financing activities | 3,886,821,367.50 | 4,354,909,040.17 |
| Cash paid for debt repayment | 2,930,078,520.91 | 4,202,280,794.93 |
| Cash paid to distribute dividends, profits or pay interest | 1,751,880,188.48 | 658,879,966.42 |
| Including: Dividends and profits paid by subsidiaries to minority shareholders | 5,994,660.00 | 15,728,000.00 |
| Payment of other cash related to financing activities | 366,279,261.77 | 712,063,268.70 |
| Subtotal of cash outflows from financing activities | 5,048,237,971.16 | 5,573,224,030.05 |
| Net cash flow from financing activities | -1,161,416,603.66 | -1,218,314,989.88 |
| IV. Impact of exchange rate changes on cash and cash equivalents | 21,363,561.91 | -20,487,569.21 |
| V. Net increase in cash and cash equivalents | -238,105,879.32 | 62,553,831.86 |
| Plus: Opening balance of cash and cash equivalents | 4,208,160,010.91 | 3,416,910,702.33 |
| VI. Closing balance of cash and cash equivalents | 3,970,054,131.59 | 3,479,464,534.19 |
(II) Situation of relevant items of financial statements at the beginning of the current yearafter the initial implementation of adjustment of the New Accounting Standards in 2024
□Applicable ?Not applicable(III) Audit report
Has the Third Quarterly Report been audited?
□Yes ?No
The Third Quarterly Report of the Company has not been audited.
Board of Directors of Huadong Medicine Co., Ltd.
October 25, 2024