Stock code: 000963 Stock abbreviation: Huadong Medicine Announcement No.: 2025-036
Huadong Medicine Co., Ltd.First Quarterly Report 2025The Company and all members of the Board of Directors hereby guarantee that the information presented inthis report is authentic, accurate, 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 Huadong Medicine Co., Ltd.(hereinafter referred to as the “Company”) hereby guarantee that the information presented in this report is authentic, accurate, complete,and free of any false records, misleading statements or material omissions, and shall undertake individual and joint legal liabilities.
2. The Company’s legal representative, the officer in charge of accounting, and the head of accounting department (accounting manager)hereby declare that the financial information in this quarterly report is authentic, accurate, and complete.
3. Has the First Quarterly Report been audited?
□Yes ? No
According to “Stock Listing Rules of the Shenzhen Stock Exchange”, if listed companies have both Chinese 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 indicatorsWhether the Company needs to perform a retroactive adjustment or restatement of previous accounting data
□Yes ? No
| Current reporting period | Same period last year | Change of the current reporting period over the same period last year (%) | |
| Operating revenue (yuan) | 10,735,787,899.82 | 10,410,809,128.72 | 3.12% |
| Net profit attributable to shareholders of listed companies (yuan) | 914,708,484.70 | 862,411,560.96 | 6.06% |
| Net profit attributable to shareholders of listed companies after deducting non-recurring gains/losses (yuan) | 897,337,982.42 | 838,303,551.41 | 7.04% |
| Net cash flows from operating activities (yuan) | -832,728,693.88 | -484,522,666.13 | -71.87% |
| Basic earnings per share (yuan/share) | 0.5224 | 0.4929 | 5.98% |
| Diluted earnings per share (yuan/share) | 0.5213 | 0.4928 | 5.78% |
| Weighted average return on equity (ROE) | 3.88% | 4.01% | -0.13% |
| 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 (yuan) | 39,447,159,682.31 | 37,879,046,367.15 | 4.14% |
| Owners’ equity attributable to shareholders of listed companies (yuan) | 24,059,686,522.62 | 23,060,051,397.36 | 4.33% |
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 disclosure (share) | 1,754,077,048.00 |
Fully diluted earnings per share based on the latest share capital:
| Paid preference dividends (yuan) | 0.00 |
| Paid perpetual bond interests (yuan) | 0.00 |
| Fully diluted earnings per share based on the latest share capital (yuan/share) | 0.5215 |
(II) Items and amounts of non-recurring gains/losses? Applicable □ N/A
Unit: yuan
| Item | Amount during the reporting period | Note |
| Gains/losses on disposal of non-current assets (including the written-off part of the accrued assets impairment reserve) | -14,540,990.32 | |
| Government grants included in current | 63,368,096.78 |
| gains/losses (excluding those closely related to daily business operation, distributed constantly in accordance with defined standards in line with national policies and regulations, and constantly affecting the Company’s gains/losses) | ||
| Other non-operating income and expenditures except the aforesaid items | -27,234,544.52 | |
| Minus: Amount affected by income tax | 2,320,389.02 | |
| Impact on minority interests (post-tax) | 1,901,670.64 | |
| Total | 17,370,502.28 | -- |
Details of other items of gains/losses meeting the definition of non-recurring gains/losses
□ Applicable ? N/A
There are no other items of gains/losses meeting the definition of non-recurring gains/losses.Explanation for recognizing an item listed as a non-recurring gain/loss in the Interpretative Announcement No. 1 on InformationDisclosure Criteria for Public Companies - Non-Recurring Gains/Losses as a recurring gain/loss
□ Applicable ? N/A
No item listed as a non-recurring gain/loss in the Interpretative Announcement No. 1 on Information Disclosure Criteria for PublicCompanies - Non-Recurring Gains/Losses is recognized as a recurring gain/loss.(III) Details and reasons for changes in key accounting data and financial indicators? Applicable □ N/A
Unit: ten thousand yuan
| Balance sheet accounts | Amount at the end of the period | Amount at the beginning of the period | Percentage change | Reasons for changes |
| Notes receivable | - | 1,069.63 | -100.00% | Mainly due to the decrease in receivable trade acceptance in the current period |
| Receivables financing | 98,819.62 | 167,763.64 | -41.10% | Mainly due to the discount of bank acceptance bills in the current period |
| Accounts receivable | 1,155,823.38 | 842,535.89 | 37.18% | Mainly due to the increase in accounts receivable in the current period |
| Other receivables | 57,186.65 | 40,287.04 | 41.95% | Mainly due to the increase in receivable temporary payments in the current period |
| Advances from customers | 239.44 | 111.52 | 114.71% | Mainly due to the increase in prepaid rent in the current period |
| Employee benefit payable | 21,991.29 | 41,713.31 | -47.28% | Mainly due to the payment of employee benefit in the current period |
| Non-current liabilities due within one year | 11,078.20 | 33,052.89 | -66.48% | Mainly due to the payment of long-term borrowings due within one year |
| Other comprehensive income | 3,144.68 | -5,059.82 | 162.15% | 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 |
| R&D expenses | 51,537.69 | 28,163.98 | 82.99% | Mainly due to the increase in R&D input in the current period |
| Financial expenses | 1,461.80 | 755.50 | 93.49% | Mainly due to the increase in exchange losses in the current period |
| Other income | 7,364.16 | 3,831.17 | 92.22% | Mainly due to the increase in income-related governmental subsidy in the current period |
| Income from disposal of assets | -1,454.10 | 152.13 | -1055.84% | Mainly due to the decrease in income from the disposal of fixed assets in the current period |
| Non-operating revenue | 76.91 | 129.56 | -40.64% | Mainly due to the decrease in compensation revenue in the current period |
| Non-operating expenses | 2,807.54 | 520.26 | 439.64% | Mainly due to the increase in donations in the current period |
| Cash flow statement accounts | Amount in the current period | Amount in the previous period | Percentage change | Reasons for changes |
| Net cash flows from operating activities | -83,272.87 | -48,452.27 | -71.87% | Mainly due to the increase in cash paid to employees in the current period |
| Net cash flows from investing activities | -64,583.94 | -70,737.61 | 8.70% | Mainly due to the decrease in investment in the current period |
| Net cash flows from financing activities | -8,683.86 | 7,149.63 | -221.46% | Mainly due to the year-on-year decrease in borrowings obtained in the current period |
II. Shareholder Information(I) Total number of common shareholders, number of preferred shareholders with restored voting rights, andshareholdings of the top 10 shareholders
Unit: share
| Total number of common shareholders at the end of the reporting period | 75,847 | Total number of preferred shareholders with restored voting rights at the end of the reporting period (if any) | 0 | |||
| Particulars about the 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 | Domestic non-state-owned corporation | 41.67% | 730,938,157.00 | 0.00 | Pledge | 143,880,000.00 |
| Hangzhou Huadong Medicine Group Co., Ltd. | State-owned corporation | 16.42% | 288,000,000.00 | 0.00 | N/A | 0.00 |
| Hong Kong Securities Clearing Company Ltd. | Overseas corporation | 2.63% | 46,120,860.00 | 0.00 | N/A | 0.00 |
| China Securities Finance Co., Ltd. | Domestic non-state-owned corporation | 1.26% | 22,186,818.00 | 0.00 | N/A | 0.00 |
| Industrial and Commercial | Others | 1.19% | 20,819,368.00 | 0.00 | N/A | 0.00 |
| Bank of China Limited - China-Europe Healthcare Hybrid Securities Investment Fund | ||||||
| China Construction Bank Corporation - E Fund CSI 300 Medicine and Health Exchange Open Index Securities Investment Fund | Others | 0.88% | 15,518,810.00 | 0.00 | N/A | 0.00 |
| Industrial and Commercial Bank of China Limited - Huatai-PineBridge CSI 300 Exchange Open Index Securities Investment Fund | Others | 0.80% | 14,092,845.00 | 0.00 | N/A | 0.00 |
| National Social Security Fund - Profile 112 | Others | 0.69% | 12,081,124.00 | 0.00 | N/A | 0.00 |
| China Construction Bank Co., Ltd.-ICBC Credit Suisse Frontier Medical Equity Securities Investment Fund | Others | 0.68% | 11,977,700.00 | 0.00 | N/A | 0.00 |
| Bank of Shanghai Co., Ltd.-Yinhua CSI Innovative Medicine Exchange Traded Fund | Others | 0.63% | 10,987,978.00 | 0.00 | N/A | 0.00 |
| Particulars about the 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 | ||||
| Type of shares | Quantity | |||||
| China Grand Enterprises | 730,938,157.00 | Common shares in yuan | 730,938,157.00 | |||
| Hangzhou Huadong Medicine | 288,000,000.00 | Common | 288,000,000.00 | |||
| Group Co., Ltd. | shares in yuan | |||
| Hong Kong Securities Clearing Company Ltd. | 46,120,860.00 | Common shares in yuan | 46,120,860.00 | |
| China Securities Finance Co., Ltd. | 22,186,818.00 | Common shares in yuan | 22,186,818.00 | |
| Industrial and Commercial Bank of China Limited - China-Europe Healthcare Hybrid Securities Investment Fund | 20,819,368.00 | Common shares in yuan | 20,819,368.00 | |
| China Construction Bank Corporation - E Fund CSI 300 Medicine and Health Exchange Open Index Securities Investment Fund | 15,518,810.00 | Common shares in yuan | 15,518,810.00 | |
| Industrial and Commercial Bank of China Limited - Huatai-PineBridge CSI 300 Exchange Open Index Securities Investment Fund | 14,092,845.00 | Common shares in yuan | 14,092,845.00 | |
| National Social Security Fund - Profile 112 | 12,081,124.00 | Common shares in yuan | 12,081,124.00 | |
| China Construction Bank Co., Ltd.-ICBC Credit Suisse Frontier Medical Equity Securities Investment Fund | 11,977,700.00 | Common shares in yuan | 11,977,700.00 | |
| Bank of Shanghai Co., Ltd.-Yinhua CSI Innovative Medicine Exchange Traded Fund | 10,987,978.00 | Common shares in yuan | 10,987,978.00 | |
| Explanation on associated relationships or concerted actions among the above-mentioned shareholders | The Company does not know whether the above-mentioned shareholders are related parties or whether they are acting-in-concert parties with one another. | |||
| Description of the participation in margin trading business of the top 10 shareholders (if any) | At the end of the reporting period, the Company had no shareholders holding its shares through margin trading and securities lending accounts among the top 10 common shareholders. | |||
Participation of shareholders with a shareholding ratio of over 5%, the top 10 shareholders, and the top 10 shareholders holding tradableshares without trading restriction conditions in lending through conversions
□ Applicable ? N/A
Change in the top 10 shareholders or the top 10 common shareholders without trading restrictions compared with the end of the previousperiod due to shares lent/returned through conversions
□ Applicable ? N/A
(II) Total number of preferred shareholders of the Company and shareholdings of the top 10 shareholders
□ Applicable ? N/A
III. Other Important Matters? Applicable □ N/A(I) Overview of the Company’s overall operations in the reporting periodDuring the reporting period, the Company remained closely aligned with its overarchingstrategic blueprint and annual operational objectives. Guided by the principles of “reinvigorating
entrepreneurial spirit, deepening reforms, strengthening organizational systems, and seizingdevelopmental opportunities,” the Company maintained a zero-based mindset and a relentless pursuitof excellence, vigorously advancing the effective implementation of various management initiatives.
During the reporting period, the Company achieved an operating revenue of 10.736 billion yuan,up 3.12% year on year and up 2.95% compared with that in Q4 2024. The net profit attributable toshareholders of listed companies reached 915 million yuan, marking a 6.06% year-on-year increase.The net profit attributable to shareholders of listed companies after deducting non-recurringgains/losses stood at 897 million yuan, reaching a historic high with a 7.04% year-on-year increaseand a 3.16% quarter-on-quarter increase from that in Q4 2024. After deducting the profits and lossesof participating and holding R&D institutions, the net profit attributable to shareholders of listedcompanies after deducting non-recurring gains/losses during the reporting period amounted to 982million yuan, reflecting a 17.15% growth compared with the Company’s net profit attributable toshareholders of listed companies after deducting non-recurring gains/losses in Q1 2024.
During the reporting period, the Company’s core subsidiary Zhongmei Huadong witnessedsteady growth as a whole and achieved an operating revenue (including CSO business) of 3.621billion yuan, up 6.52% year on year, and the consolidated net profit attributable to the parent companyof 843 million yuan, up 12.20% year on year. During the reporting period, the Company’s innovativemedicines saw robust momentum in sales, driving sustained growth in the pharmaceutical industry.Leveraging its differentiated clinical value, the CAR-T Zevorcabtagene Autoleucel Injection(Saikaize
?) has rapidly penetrated core treatment centers throughout China. With positive clinicalfeedback, the product maintained strong sales momentum in Q1 2025, marked by steadily increasingvalid orders. The Company actively enhanced treatment accessibility, with Saikaize
?now covered byover 70 commercial insurance plans and regional Huiminbao programs (an urban customizedcommercial medical insurance) as of the reporting date, effectively alleviating patients’ financialburdens. Continued market expansion and broader insurance coverage are expected to sustain itshigh-speed growth trajectory. Sailexin
?, China’s first biosimilar of Ustekinumab Injection, hasdelivered exceptional market performance since its launch. By March 31, 2025, prescriptions for theproduct had been issued in over 800 hospitals, significantly benefiting psoriasis patients throughoutChina. The product is projected to maintain robust growth throughout the year, emerging as acornerstone of the Company’s autoimmune disease portfolio. Furthermore, the novel Class 1medicine Ganagliflozin Proline Tablets (Huiyoujing
?
) has been included in the updated catalogue ofmedicines covered by medical insurance, accelerating its hospital adoption. Strategic synergy withMetformin Hydrochloride and Empagliflozin Tablets (Enshuangping
?) has accelerated resourcesharing, further reinforcing the Company’s competitive edge in the SGLT-2 inhibitor segment for
diabetes management. The newly approved Senaparib Capsules (Paishuning
?
), a new 1.5-generationPARP inhibitor, was launched for sales in January 2025. The Company is actively working on thelisting of the product on the procurement platform and facilitating its hospital access. To date, theCompany has introduced Paishuning
?
to over 100 DTPs and 300 hospitals, while actively pursuinginclusion in Huiminbao programs and commercial insurances, such as West Lake Yilian Insurance (auniverse medical insurance in Hangzhou), Huhuibao (a universe medical insurance in Shanghai),Chonghuibao (a universe medical insurance in Nanchong), Jiaxing Huiminbao, and CPIC-Huxiangbao (a commercial insurance of CPIC in Shanghai). In August 2024, the Company completedthe acquisition of Guizhou Hengba Pharmaceutical Limited Liability Company (renamed HuadongMedicine (Guizhou) Pharmaceutical Co., Ltd., hereinafter referred to as “Guizhou Pharma”). Adedicated in-house promotion team was established after the acquisition to accelerate the marketpenetration of its flagship product Shangkeling
?
in major hospitals and retail pharmacies. Thisinitiative has driven significant operational growth. During the reporting period, Guizhou Pharmaachieved a strong start with an operating revenue of 24.26 million yuan, up over 100% year on year,and a net profit of 6.67 million yuan, surpassing its net profit in H1 2024. From its consolidation intothe Company’s financial statements in August 2024 to the end of the reporting period, GuizhouPharma generated a cumulative operating revenue of 62.28 million yuan and a cumulative net profitof 14.87 million yuan. It is projected to sustain its growth momentum in 2025.
During the reporting period, the Company’s pharmaceutical business segment witnessed stablegrowth as a whole. The segment achieved an operating revenue of 6.934 billion yuan, up 3.23% yearon year, and a net profit of 115 million yuan, up 7.33% year on year.
During the reporting period, the Company’s aesthetic medicine segment faced certain pressuresin growth imposed by dual challenges from global economic downturn and intensified industrycompetition. Continuously expanding its aesthetic medicine market globally, Sinclair, the Company’swholly-owned subsidiary, achieved the consolidated operating revenue of approximately 238 millionyuan, down 12.29% year on year, but up 24.37% quarter on quarter compared with that in Q4 2024,which align with its quarterly operational targets as a whole. Sinclair (Shanghai), the Company’swholly-owned subsidiary, actively expanded its market in China and achieved an operating revenueof 254 million yuan, down 1.36% year on year, but up 10.64% quarter on quarter compared with thatin Q4 2024. The Company has constantly deepened its layout of high-end aesthetic medicineportfolios in China. MaiLi
?
Extreme (trade name: MaiLi
?
Shuoying
?), a high-end hyaluronic acidfiller in the MaiLi series utilizing patented OxiFree? technology, is scheduled for commercial launchin May 2025. With the highest hyaluronic acid concentration and the best volumization effect amongthe MaiLi series, this injectable filler provides immediate contouring effects for mandibular
retrognathia correction, presenting more wonderful facial volumization solutions for Chinese patients.The Préime DermaFacial multi-functional facial skin management platform, an intelligent hi-techcosmetic device that integrates IoT-enabled technologies such as spiral vacuum, microdermabrasion,micro current, and ultrasonic technique, will debut in 2025 to deliver one-stop personalized cleaningand anti-aging solutions to Chinese patients. The applications for the launch of key aesthetic medicineportfolios such as recombinant botulinum toxin type A YY001, energy source equipment V30, andEllansé
?
M in China have all been accepted and are expected to receive approvals in 2026. Bycontinuously enriching its differentiated product matrix in China’s aesthetic medicine sector andcapitalizing on consumption upgrade-driven market expansion, the Company is positioned toaccelerate the release of growth potential in its aesthetic medicine business in China.During the reporting period, the Company’s industrial microbiology segment sustained rapidgrowth in revenue, up 29.98% year on year. With the ongoing proactive expansion in overseasmarkets, this segment is positioned to maintain its growth momentum moving forward.(II) Important R&D progress of the Company during the reporting period
1. Progress of R&D of innovative medicines, innovative medical devices and biosimilarmedicinesThe Company further intensified its R&D efforts with increased investment. During thereporting period, the Company reported a pharmaceutical R&D input (excluding equity investments)of 880 million yuan, up 49.60% year on year. Among them, direct R&D expenditure reached 600million yuan, up 71.77% year on year, which accounts for 16.67% of the operating revenue of thepharmaceutical industry segment. Multiple milestone achievements were attained in R&D ofinnovative and biosimilar medicines, with key progresses stated as follows:
Oncology
The supplemental application to convert the conditional approval of Mirvetuximab SoravtansineInjection (ELAHERE
?
, R&D code: IMGN853, HDM2002) into full regular approval was acceptedin March 2025.
With regard to the ROR1-targeted ADC (HDM2005) for the treatment of advanced malignanttumors, the Company completed the first three dose-escalation cohorts in its phase I clinical trial inChina, with no dose-limiting toxicities (DLT) observed. The Company is currently advancing to thefourth dose-escalation cohort while initiating expansion cohorts for the third dose level. In February2025, the Company submitted an IND application to the NMPA for HDM2005 combined with R-CHP in previously untreated diffuse large B-cell lymphoma (DLBCL), which was accepted. TheCompany also received the Orphan Drug Designation (ODD) from the U.S. FDA for mantle celllymphoma (MCL) of its HDM2005 in February 2025.
The IND application of HPK-1 PROTAC (hematopoietic progenitor kinase1 proteolysistargeting chimera), a small-molecule anti-tumor medicine under HDM2006, in the U.S. was approvedby FDA in January 2025. The product is used for the treatment of advanced malignant tumors.Moreover, the Company is currently conducting the phase I clinical trial in China for the treatment ofadvanced solid tumors.DR30206, a PD-L1/VEGF/TGF-β trispecific antibody fusion protein for injection, completed itsfirst subject administration in phase Ib clinical trial for the treatment of non-small cell lung cancer inApril 2025. The Company received approval for the clinical trial application for DR30206 incombination with standard chemotherapy for the treatment of patients with advanced or metastaticgastrointestinal tumors in April 2025. The enrollment of subjects for phase Ib clinical research isexpected to begin in H1 2025.EndocrinologyHDM1002 (conveglipron), an oral small-molecule GLP-1 receptor agonist, completedenrollment of the first subject for phase III clinical research for the indication of weight managementin April 2025. It is scheduled to complete the enrollment of all subjects by the end of June 2025. Thephase II clinical research for diabetes indication is progressing smoothly, with top-line resultsanticipated in Q3 2025. Phase III clinical research for diabetes indication is expected to be initiatedin H2 2025.HDM1005 (poterepatide) injection, a GLP-1R/GIPR long-acting polypeptide dual-targetagonist, is undergoing phase II clinical research for the indication of weight management andcompleted the enrollment of all subjects for phase II in April 2025. Phase III clinical research isexpected to be initiated in Q4 2025. The Company also completed the enrollment of the first subjectfor phase II clinical trial for the indication of diabetes in April 2025. During the reporting period, theIND applications for new indications of HDM1005 Injection were approved by the NMPAsuccessively, targeting the treatment of obstructive sleep apnea (OSA) in adults with obesity oroverweight and heart failure with preserved ejection fraction (HFpEF) in adults with obesity oroverweight, respectively.DR10624 Injection, a FGF21R/GCGR/GLP-1R trispecific agonist, is currently undergoingphase II clinical trials for metabolic dysfunction-associated steatotic liver disease (MASLD) with thefirst patient enrolled in April 2025. Concurrently, a previously initiated phase II clinical research ofDR10624 for the treatment of severe hypertriglyceridemia completed the enrollment of all subjects,with unblinded top-line results anticipated in Q3 2025.The marketing authorization application of Semaglutide Injection for the indication of diabeteswas submitted in March 2025, which has been accepted. For the weight management indication, full
patient enrollment in phase III clinical research of Semaglutide Injection was completed in February2025.The marketing authorization application of Insulin Degludec Injection was submitted inFebruary 2025, which has been accepted.AutoimmunityThe supplemental application for the new pediatric plaque psoriasis indication of HDM3001(QX001S), a biosimilar of Ustekinumab developed in collaboration between the company and QyunsTherapeutics, was approved in March 2025. Additionally, the marketing authorization application andsupplemental application for the Crohn’s disease were accepted in February 2025.
The innovative medicine HDM3016 (QX005N) developed in collaboration between thecompany and Qyuns Therapeutics is currently conducting phase III clinical trials in China for twoindications of prurigo nodularis and atopic dermatitis. The enrollment of all subjects for phase IIIclinical research for prurigo nodularis was completed in March 2025.
The IND application of HDM3019 (IMB-101) developed by the Company in partnership withIMBiologics (Republic of Korea) for the treatment of rheumatoid arthritis in China was approved inMarch 2025.
Other segments
The Transdermal Glomerular Filtration Rate System, a Class III innovative medical device, wasapproved by the NMPA in February 2025. The marketing authorization application for RelmapirazinInjection (MB-102) used cooperatively with the system was accepted by the NMPA in January 2024.Additionally, MediBeacon
?TGFR (including the Transdermal Glomerular Filtration Rate System andRelmapirazin Injection) was approved by the U.S. FDA in January 2025.
Academic publications
From 2025 to date, the Company’s innovation teams have successively published 11 posters ororal presentations at academic conferences in oncology, endocrinology/metabolism, andautoimmunity segments. Specifically: results of phase I clinical research of GLP-1/GIP dual-targetlong-acting agonist HDM1005 selected for oral presentation at 2025 ADA; results of phase III clinicalresearch of Semaglutide Injection and phase Ib clinical research of HDM1002 selected for POSTERsharing at 2025 ADA; results of pre-clinical researches of HDM2006, HDM2022, HDM2012,HDM2017 and HDM2020 all selected as the POSTER of 2025 AACR; results of pre-clinical researchof the pan-KRAS antitumor degrader HDM2025 selected as the POSTER of 2025 ASCO; results ofclinical research of DR10624, a first-in-class Fc-fusion protein medicine with triple agonist activitytargeting GLP-1, GCG, and FGFRIc/KlothoB (FGF21R) receptors developed by the Company’swholly-owned subsidiary Doer Biologics, selected as the Late-Breaker at 2025 EASL, and its non-
clinical research results selected as the POSTER of 2025 EASL.
2. Progress of registration and launching of aesthetic medicine products in ChinaDuring the reporting period, the Company continued to advance the registration and launchingof its aesthetic medicine products. V30, a high-end integrated multi-functional platform combiningradio frequency, intense pulsed light, and Nd:YAG laser technologies, received a registrationacceptance notice from the National Medical Products Administration (NMPA) in March 2025.MaiLi
?
Precise, a novel premium hyaluronic acid dermal filler with lidocaine (indication: correctionof infraorbital pouch), completed main end-point follow-ups for all subjects in its Chinese clinicaltrial in September 2024 and is currently undergoing safety follow-ups. MaiLi
?
Extreme, another fillerin the same series (indication: enhancement of jawline contour), was approved by the NMPA inJanuary 2025. For the Ellansé
?S, the enrollment of all subjects for the new indication (enhancementof forehead contour) in its Chinese clinical trial was completed in November 2024, and follow-upsare now in progress. Ellansé
?M, a long-acting collagen-stimulating variant (indication: correction oftemporal depression), received the registration acceptance notice from the NMPA in January 2025.For the Poly-L-lactic acid (PLLA) collagen stimulant Lanluma
?
(indication: enhancement ofmandibular contour), the enrollment of all subjects in its Chinese clinical trial was completed inNovember 2024, and follow-ups are now in progress. The chitosan-based dermal filler KIO021 thatutilizes innovative biomaterials secured ethical approval for principal investigator of clinical trial inDecember 2024 and is poised to initiate formal clinical trials. Additionally, the marketingauthorization application for the exclusively distributed product YY001 (recombinant botulinumtoxin type A for injection) was accepted by the NMPA in December 2024, and is currently underreview.
IV. Quarterly Financial Statements(I) Financial statements
1. Consolidated balance sheet
Prepared by: Huadong Medicine Co., Ltd.
March 31, 2025
Unit: yuan
| Item | Ending balance | Opening balance |
| Current assets: | ||
| Monetary funds | 3,711,981,117.29 | 5,276,440,245.36 |
| Settlement reserve | ||
| Lending funds | ||
| Trading financial assets | ||
| Derivative financial assets |
| Notes receivable | 10,696,341.24 | |
| Accounts receivable | 11,558,233,812.68 | 8,425,358,862.23 |
| Receivables financing | 988,196,245.72 | 1,677,636,420.09 |
| Prepayments | 509,401,242.97 | 400,291,510.71 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance contract reserve receivable | ||
| Other receivables | 571,866,490.76 | 402,870,356.31 |
| Including: Interests receivable | ||
| Dividends receivable | 223,608.84 | 223,608.84 |
| Financial assets purchased for resale | ||
| Inventories | 4,993,004,391.03 | 4,776,397,278.01 |
| Including: Data resource | ||
| Contract assets | ||
| Assets held for sale | ||
| Other non-current assets due within one year | ||
| Other non-current assets | 74,540,402.52 | 82,099,747.34 |
| Total current assets | 22,407,223,702.97 | 21,051,790,761.29 |
| Non-current assets: | ||
| Loans and prepayments issuance | ||
| Debt investment | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investment | 1,513,925,302.98 | 1,543,646,404.76 |
| Other equity instrument investments | 711,111,696.58 | 603,232,766.22 |
| Other non-current financial assets | ||
| Investment real estate | 11,589,767.25 | 11,842,042.67 |
| Fixed assets | 4,333,070,220.62 | 4,422,300,775.01 |
| Construction in progress | 952,469,422.55 | 836,739,481.60 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use Assets | 141,646,790.18 | 149,504,562.99 |
| Intangible Assets | 3,786,366,926.50 | 3,644,956,428.71 |
| Including: Data resource | ||
| Development expenditure | 1,120,038,511.44 | 1,033,392,377.69 |
| Including: Data resource | ||
| Goodwill | 2,918,760,393.01 | 2,913,334,523.63 |
| Long-term Deferred Expenses | 20,884,747.76 | 22,601,572.13 |
| Deferred income tax assets | 223,505,398.13 | 221,848,889.06 |
| Other non-current assets | 1,306,566,802.34 | 1,423,855,781.39 |
| Total non-current assets | 17,039,935,979.34 | 16,827,255,605.86 |
| Total assets | 39,447,159,682.31 | 37,879,046,367.15 |
| Current liabilities: | ||
| Short-term borrowings | 2,453,068,051.27 | 2,312,339,143.21 |
| Borrowing from the central bank | ||
| Borrowing from other banks and other financial institutions | ||
| Trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 2,963,905,693.12 | 2,576,685,923.31 |
| Accounts payable | 4,778,197,764.09 | 4,467,770,810.96 |
| Advances from customers | 2,394,374.93 | 1,115,173.00 |
| Contract liabilities | 175,030,504.60 | 173,609,109.58 |
| Financial assets sold for repurchase |
| Deposits from customers and due from banks | ||
| Receipts for buying and selling securities as proxy | ||
| Receipts for underwriting securities as proxy | ||
| Employee benefit payable | 219,912,857.71 | 417,133,101.11 |
| Taxes payable | 669,769,811.98 | 645,950,867.22 |
| Other payables | 2,957,810,000.79 | 2,849,833,595.48 |
| Including: Interests payable | ||
| Dividends payable | 125,024,219.60 | 125,024,219.60 |
| Handling fees and commissions payable | ||
| Reinsurance accounts payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 110,782,003.10 | 330,528,920.89 |
| Other current liabilities | 20,456,908.65 | 19,268,728.25 |
| Total current liabilities | 14,351,327,970.24 | 13,794,235,373.01 |
| Non-current liabilities: | ||
| Insurance policy reserve | ||
| Long-term borrowings | 14,642,806.35 | 14,262,841.05 |
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bond | ||
| Lease liabilities | 89,138,466.89 | 71,857,938.46 |
| Long-term payables | 23,479,876.74 | 24,715,073.51 |
| Long-term employee benefits payable | ||
| Estimated liabilities | 28,690,397.55 | 28,985,982.19 |
| Deferred income | 180,766,396.92 | 183,855,718.48 |
| Deferred income tax liabilities | 196,417,169.62 | 197,378,528.33 |
| Other non-current liabilities | ||
| Total non-current liabilities | 533,135,114.07 | 521,056,082.02 |
| Total liabilities | 14,884,463,084.31 | 14,315,291,455.03 |
| Owners’ equity: | ||
| Share capital | 1,754,077,048.00 | 1,754,262,548.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bond | ||
| Capital reserves | 2,549,212,445.78 | 2,550,780,602.69 |
| Minus: treasury stock | 42,168,791.67 | 46,804,116.67 |
| Other comprehensive income | 31,446,768.30 | -50,598,204.17 |
| Special reserves | ||
| Surplus reserves | 1,395,568,477.98 | 1,395,568,477.98 |
| General risk reserve | ||
| Undistributed profit | 18,371,550,574.23 | 17,456,842,089.53 |
| Total owners’ equity attributable to owners of the parent company | 24,059,686,522.62 | 23,060,051,397.36 |
| Minority interests | 503,010,075.38 | 503,703,514.76 |
| Total owner’s equity | 24,562,696,598.00 | 23,563,754,912.12 |
| Total liabilities & owners’ equity | 39,447,159,682.31 | 37,879,046,367.15 |
Legal representative: Lv Liang Officer in charge of accounting: Lv Liang Head of the Accounting Department: Qiu Renbo
2. Consolidated income statement
Unit: yuan
| Item | Amount in the current period | Amount in previous period |
| I. Total operating revenue | 10,735,787,899.82 | 10,410,809,128.72 |
| Including: Operating revenue | 10,735,787,899.82 | 10,410,809,128.72 |
| Interests income | ||
| Premiums earned | ||
| Handling fees and commissions received | ||
| II. Total operating cost | 9,620,007,130.43 | 9,331,357,509.92 |
| Including: Operating cost | 7,206,598,136.26 | 7,076,397,110.06 |
| Interest expenses | ||
| Handling fees and commissions paid | ||
| Surrender value | ||
| Net payment of insurance claims | ||
| Net appropriation of policy reserve | ||
| Policy dividends paid | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 57,265,200.91 | 56,334,556.14 |
| Sales expenses | 1,470,753,504.47 | 1,574,261,928.29 |
| Administrative expenses | 355,395,350.66 | 335,169,160.39 |
| R&D expenses | 515,376,918.47 | 281,639,751.64 |
| Financial expenses | 14,618,019.66 | 7,555,003.40 |
| Including: Interest expenses | 25,924,507.30 | 23,050,131.41 |
| Interests income | 27,812,843.06 | 24,409,865.24 |
| Add: Other income | 73,641,636.88 | 38,311,729.18 |
| Investment income (Losses are indicated by “-”) | -42,624,149.61 | -47,163,448.93 |
| Including: Investment gains (losses) in associated enterprise and joint-venture enterprise | -28,249,462.69 | -37,504,466.74 |
| Gains on the derecognition of financial assets measured at amortized cost | ||
| Gains on exchange (Losses are indicated by “-”) | ||
| Gains on net exposure hedging (Losses are indicated by “-”) | ||
| Gains from changes in fair values (Losses are indicated by “-”) | -25,364.49 | |
| Credit impairment losses (Losses are indicated by “-”) | ||
| Assets impairment losses (Losses are indicated by “-”) | ||
| Asset disposal income (Losses are indicated by “-”) | -14,540,990.32 | 1,521,275.31 |
| III. Operating profit (Losses are indicated by “-”) | 1,132,257,266.34 | 1,072,095,809.87 |
| Add: Non-operating revenue | 769,095.39 | 1,295,600.39 |
| Minus: Non-operating expenses | 28,075,417.91 | 5,202,610.91 |
| IV. Total profit (Total losses are indicated by “-”) | 1,104,950,943.82 | 1,068,188,799.35 |
| Minus: Income tax expense | 190,966,760.40 | 207,943,278.46 |
| V. Net profit (Net losses are indicated by “-”) | 913,984,183.42 | 860,245,520.89 |
| (I) Classification by business continuity | ||
| 1. Net profit from continuing operations (Net losses are indicated by “-”) | 913,984,183.42 | 860,245,520.89 |
| 2. Net profit at terminational operation (Net losses are indicated by “-”) | ||
| (II) Classification by attribution of ownership | ||
| 1. Net profit attributable to owners of the parent company | 914,708,484.70 | 862,411,560.96 |
| 2. Profit or loss attributable to minority shareholders | -724,301.28 | -2,166,040.07 |
| VI. Other comprehensive income (net of income tax) | 82,044,972.47 | 40,589,535.10 |
| Other comprehensive income attributable to owners of the parent company (net of tax) | 82,044,972.47 | 40,589,535.10 |
| (I) Other comprehensive income that cannot be reclassified into gains/losses | ||
| 1. Changes in remeasurement on the defined benefit plan | ||
| 2. Other comprehensive income that cannot be reclassified into gains/losses under equity method | ||
| 3. Changes in fair value of other equity instrument investments | ||
| 4. Changes in fair value of credit risk of the enterprise | ||
| 5. Others | ||
| (II) Other comprehensive income to be reclassified into gains/losses | 82,044,972.47 | 40,589,535.10 |
| 1. Other comprehensive income that can be reclassified into gains/losses under equity method | ||
| 2. Changes in fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive income | ||
| 4. Credit impairment reserve of other debt investments | ||
| 5. Cash flow hedging reserve | ||
| 6. Exchange differences from translation of foreign currency financial statements | 82,044,972.47 | 40,589,535.10 |
| 7. Others | ||
| Net amount after tax of other comprehensive income attributable to |
| minority shareholders | ||
| VII. Total comprehensive income | 996,029,155.89 | 900,835,055.99 |
| Total comprehensive income attributable to owners of the parent company | 996,753,457.17 | 903,001,096.06 |
| Total comprehensive income attributable to minority shareholders | -724,301.28 | -2,166,040.07 |
| VIII. Earnings per share (EPS): | ||
| (I) Basic EPS | 0.5224 | 0.4929 |
| (II) Diluted EPS | 0.5213 | 0.4928 |
As for business merger under the same control in the current period, the net profit generated by the merged party before the mergerwas 0.00 yuan, and that generated during the previous period was 0.00 yuan.Legal representative: Lv Liang Officer in charge of accounting: Lv Liang Head of the Accounting Department: Qiu Renbo
3. Consolidated cash flow statement
Unit: yuan
| Item | Amount in the current period | Amount in previous period |
| I. Cash flows from operating activities: | ||
| Cash received from the sale of goods and the rendering of services | 9,882,552,619.72 | 9,896,088,428.64 |
| Net increase in customer deposits and due from banks | ||
| Net increase in borrowing from the central bank | ||
| Net increase in borrowing from other financial institutions | ||
| Cash from the premium of the original insurance policy | ||
| Net cash from reinsurance | ||
| Net increase in deposits and investment of the insured | ||
| Cash from interests, handling fees and commissions | ||
| Net increase in borrowing from other banks and other financial institutions | ||
| Net increase in funds for repurchase | ||
| Net cash received for buying and selling securities as proxy | ||
| Receipts of tax refund | 2,055,460.55 | 3,909,537.24 |
| Other cash receipts in relation to operating activities | 230,013,343.26 | 179,167,865.43 |
| Subtotal of cash inflows from operating activities | 10,114,621,423.53 | 10,079,165,831.31 |
| Cash payments for goods purchased and services received | 7,695,820,108.31 | 7,688,555,061.58 |
| Net increase in customer loans and prepayments | ||
| Net increase in deposits of central bank and due from banks | ||
| Cash payments for original insurance claims | ||
| Net increase in lending funds to other |
| banks and other financial institutions | ||
| Cash payments for interests, handling fees and commissions | ||
| Cash payments for policy dividends | ||
| Cash payments to and on behalf of employees | 1,441,219,423.87 | 1,232,560,542.55 |
| Payments of various types of taxes | 671,816,951.08 | 606,028,807.91 |
| Other cash payments in relation to operating activities | 1,138,493,634.15 | 1,036,544,085.40 |
| Subtotal of cash outflows for operating activities | 10,947,350,117.41 | 10,563,688,497.44 |
| Net cash flows from operating activities | -832,728,693.88 | -484,522,666.13 |
| II. Cash flows from investing activities | ||
| Cash receipts from recovery of investments | 1,000,000.00 | |
| Cash receipts from investment income | 43,350,000.00 | 2,000,000.00 |
| Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets | 9,751,907.00 | 2,328,201.94 |
| Net cash from disposal of subsidiaries and other business units | ||
| Other cash receipts in relation to investing activities | ||
| Subtotal of cash inflows from investing activities | 53,101,907.00 | 5,328,201.94 |
| Cash payments for purchase and construction of fixed assets, intangible assets and other long-term assets | 637,322,382.41 | 472,272,778.22 |
| Cash payments for investment | 61,618,925.00 | 65,861,678.42 |
| Net increase in pledge loans | ||
| Net cash paid for acquisition of subsidiaries and other business units | 17,006,187.32 | |
| Other cash payments in relation to investing activities | 157,563,682.87 | |
| Subtotal of cash outflows for investing activities | 698,941,307.41 | 712,704,326.83 |
| Net cash flows from investing activities | -645,839,400.41 | -707,376,124.89 |
| III. Cash flows from financing activities: | ||
| Cash receipts from absorbing investments | ||
| Including: Cash receipts from capital contributions from minority owners of subsidiaries | ||
| Cash receipts from borrowing | 1,289,998,848.00 | 1,510,044,486.23 |
| Other cash receipts in relation to financing activities | 146,000,000.00 | 62,459,038.61 |
| Subtotal of cash inflows from financing activities | 1,435,998,848.00 | 1,572,503,524.84 |
| Cash repayments of borrowings | 1,279,708,605.45 | 1,202,198,901.63 |
| Cash payments for distribution of dividends or profits or settlement of interest expenses | 17,579,298.66 | 36,432,249.03 |
| Including: Dividends and profits paid by subsidiaries to minority shareholders | ||
| Other cash payments in relation to | 225,549,581.73 | 262,376,106.69 |
| financing activities | ||
| Subtotal of cash outflows for financing activities | 1,522,837,485.84 | 1,501,007,257.35 |
| Net cash flows from financing activities | -86,838,637.84 | 71,496,267.49 |
| IV. Effect of foreign exchange rate changes on cash and cash equivalents | -3,115,685.50 | 17,392,454.16 |
| V. Net increase in cash and cash equivalents | -1,568,522,417.63 | -1,103,010,069.37 |
| Add: Opening balance of cash and cash equivalents | 4,990,151,186.68 | 4,208,160,010.91 |
| VI. Closing balance of cash and cash equivalents | 3,421,628,769.05 | 3,105,149,941.54 |
(II) Adjustments to financial statement items at the beginning of the year of the firstimplementation of the new accounting standards implemented since 2025
□ Applicable ? N/A
(III) Audit report
Has the First Quarterly Report been audited?
□Yes ? No
The Company’s First Quarterly Report has not been audited.
Board of Directors of Huadong Medicine Co., Ltd.
April 25, 2025