HuadongMedicineCo.,Ltd.

2025Semi-annualReport

August20,2025

SectionIImportantNotes,TableofContentsandDefinitions

TheBoardofDirectors,directors,andseniormanagementofHuadongMedicineCo.,Ltd.(hereinafterreferredtoasthe"Company")herebyguaranteethattheinformationpresentedinthisreportisauthentic,accurateandcomplete,andfreeoffalserecords,misleadingstatementsormaterialomissions,andshallundertakeindividualandjointlegalliabilities.

LvLiang,theCompany’slegalrepresentativeandtheofficerinchargeofaccounting,andQiuRenbo,headoftheaccountingdepartment(accountingmanager)herebydeclarethatthefinancialstatementsinthissemi-annualreportareauthentic,accurate,andcomplete.

AlldirectorshaveattendedtheBoardofDirectorsmeetingtoreviewthissemi-annualreport.

Thefutureplans,developmentstrategiesandotherforward-lookingstatementsinthissemi-annualreportshallnotbeconsideredasasubstantialcommitmentoftheCompanytoinvestors.Investorsandrelatedpartiesshouldbefullyawareoftherisks,andunderstandthedifferencesbetweenplans,forecastsandcommitments.

TheriskstheCompanyfacesinoperationincludeindustrypolicyandproductpricereductionrisk,newdrugR&Drisk,investmentandM&Ariskandexchangeratefluctuationrisk.Fordetails,pleasereferto"X.RisksfacedbytheCompanyandcountermeasures"in"SectionIII.Management'sDiscussionandAnalysis".Therefore,investorsarekindlyremindedtopayattentiontopossibleinvestmentrisks.

ThedividenddistributionschemeapprovedatthemeetingoftheBoardofDirectorsisasfollows:Onthebasisof1,754,021,048.00shares—derivedbyexcluding56,000.00restrictedstock(pendingrepurchaseandcancellation)fromtheexistingtotalsharecapitalof1,754,077,048.00shares,RMB3.50(beforetax)ofcashdividendspertenshareswillbedistributedtoallshareholders;atotalof0bonusshares(beforetax)willbeissued;andnocapitalreservewillbeconvertedtoincreasethecapitalstock.This2025interimprofitdistributionschemefallswithinthescopeauthorizedbythe2024AnnualShareholders'MeetingresolutiontotheBoardofDirectorsanddoesnotrequirefurtherapprovalbytheShareholders'Meeting.

Accordingto“StockListingRulesoftheShenzhenStockExchange”,iflistedcompanieshavebothChineseandotherlanguageversionofpublicnotice,theyshouldensurethecontentofbothversionsarethesame.Inthecaseofdiscrepancy,theoriginalversioninChineseshallprevail.

TableofContents

SectionIImportantNotes,TableofContentsandDefinitions ...... 2

SectionIICompanyProfileandKeyFinancialIndicators ...... 11

SectionIIIManagement'sDiscussionandAnalysis ...... 15

SectionIVCorporateGovernance,Environment,andSociety ...... 62

SectionVImportantMatters ...... 72

SectionVIChangesinSharesandShareholders ...... 113

SectionVIIBonds-relatedInformation ...... 125

SectionVIIIFinancialReports ...... 126

SectionIXOtherSubmittedData ...... 345

ContentsofReferenceFile

(I)Financialaccountingstatementssignedandsealedbythelegalrepresentative,thepersoninchargeofaccounting,andtheheadoftheaccountingdepartment(accountingmanager).(II)TheoriginalsofallCompany’sdocumentspubliclydisclosedinthepressdesignatedbyCSRCduringthereportingperiodandtheoriginalsofannouncements.

Definitions

SectionIICompanyProfileandKeyFinancialIndicators

I.Companyprofile

II.Contactpersonandcontactinformation

III.Otherinformation

1.CompanycontactinformationWhethertheCompany'sregisteredaddress,officeaddressanditspostalcode,website,oremailaddresshavechangedduringthereportingperiod?Applicable□Notapplicable

2.Informationdisclosureandstoragelocation

Hastheinformationdisclosureandstoragelocationchangedduringthereportingperiod?

□Applicable?NotapplicableThestockexchangewebsiteandmedianamesandURLswheretheCompanydisclosesitssemi-annualreports,aswellasthestoragelocationofthesemi-annualreports,remainedunchangedduringthereportingperiod.Fordetails,pleaserefertothe2024AnnualReport.

3.Otherrelevantinformation

Hasanyotherrelevantinformationchangedduringthereportingperiod?

□Applicable?NotapplicableIVKeyaccountingdataandfinancialindicators

DoestheCompanyneedtoretroactivelyadjustorrestatetheaccountingdataofpreviousyears?

□Yes?No

TotalsharecapitaloftheCompanyasofthetradingdaypriortodisclosure:

Fullydilutedearningspersharebasedonthelatestsharecapital:

V.Differencesinaccountingdataunderdomesticandforeignaccountingstandards

1.DifferencesbetweennetprofitandnetassetsinthefinancialreportdisclosedinaccordancewiththeInternationalAccountingStandardsandtheChineseAccountingStandards

□Applicable?NotapplicableDuringthereportingperiod,thereisnodifferencebetweenthenetprofitandnetassetsinthefinancialreportdisclosedinaccordancewiththeInternationalAccountingStandardsandtheChineseAccountingStandards.

2.DifferencesbetweennetprofitandnetassetsinthefinancialreportdisclosedinaccordancewithoverseasaccountingstandardsandChineseaccountingstandards

□Applicable?NotapplicableDuringthereportingperiod,thereisnodifferencebetweenthenetprofitandnetassetsinthefinancialreportdisclosedinaccordancewiththeoverseasaccountingstandardsandtheChineseaccountingstandards.VI.Itemsandamountsofnon-recurringgains/losses?Applicable□Notapplicable

Unit:RMB

Detailsofothergainandlossitemsconformingtothedefinitionofnon-recurringgainsandlosses?Applicable□NotapplicableAstheoperationofHuadongNingboMedicineCo.,Ltd.expiredonDecember31,2021,anditiscurrentlyintheliquidationphase,itisnolongerincludedintheconsolidatedfinancialstatementsoftheCompany.TheCompany'sinvestmentinitisclassifiedasothernon-currentassets.Duringthecurrentperiod,theCompanyrecognizedaninvestmentincomeofRMB-6,672,178.39duringtheliquidationperiodbasedonitsshareholdingratio.Anexplanationofthefactthatthenon-recurringgainandlossitemslistedintheExplanatoryAnnouncementNo.1onInformationDisclosurebyCompaniesthatOfferSecuritiestothePublic-Non-recurringGainsandLossesaredefinedasrecurringgainandlossitems

□Applicable?NotapplicableTheCompanydidnotdefinethenon-recurringgainandlossitemslistedintheExplanatoryAnnouncementNo.1onInformationDisclosurebyCompaniesthatOfferSecuritiestothePublic-Non-recurringGainsandLossesasrecurringgainandlossitems.

SectionIIIManagement'sDiscussionandAnalysisI.MainbusinessoftheCompanyduringthereportingperiod(I)MainbusinessoftheCompanyHuadongMedicineCo.,Ltd.(stockcode:000963)wasfoundedin1993andisheadquarteredinHangzhou,Zhejiang.ThecompanywaslistedontheShenzhenStockExchangeinDecember1999.Withitsbusinessescoveringtheentirepharmaceuticalindustrychainthankstoover30yearsofvigorousdevelopment,theCompanyhasnowfosteredfourmajorbusinesssegmentsofthepharmaceuticalindustry,pharmaceuticalbusiness,aestheticmedicineandindustrialmicrobiology,andhasbeenalargecomprehensivelistedpharmaceuticalenterprisespecializedinpharmaceuticalR&D,production,andmarketing.SpecializedintheR&D,production,andmarketingofspecializedmedicines,medicinesforchronicdiseases,aswellasspecialmedicinesforyears,theCompany’spharmaceuticalindustrysegmenthasestablishedcompleteinternationalpharmaceuticalproductionsystems,andfosteredcoreproductlinesfocusingonchronicnephrosis,autoimmunity,oncology,endocrinology,digestivesystem,cardiovascularsystem,andotherfields.Withmultiplefirst-lineclinicalmedicineswithmarketadvantagesinChina,theCompanyhaswoninternationalcertificationsformultiplevarietiesofitsproducts.TheCompanyhasstrategicallyfocuseditsR&Deffortsoninnovativedrugswithinthreecoretherapeuticfieldsofendocrinology,autoimmunity,andoncologythroughacombinationofin-housedevelopment,externalpartnerships,andcollaborativeprojects,fosteringadifferentiatedinnovativemedicinepipelinethatspanstheentireR&Dlifecycleandarobustproductportfolio.Moreover,theCompanyhasestablishedstrategicpartnershipswithnumerousmultinationalinnovativemedicineR&DcompaniesandpharmaceuticalcompaniesonproductsintheChinesemarket.

TheCompany’spharmaceuticalbusinesssegmentfocusedonthreecorebusinessesofmedicines,medicaldevices,anddecoctionpieces.Supportedbyanintelligentlogisticsnetwork(threemajorhubsinHangzhou,Jinhua,andWenzhou,13logisticswarehouseswithtotalstorageareaexceeding190,000squaremeters),itenhancescompetitivenessthroughcharacteristiclogisticssuchascoldchain,specialdrugs,andvaccines.ItsbusinessscaleranksastheleaderinZhejiang,rankingamongChina’sTop10pharmaceuticalwholesaleenterprises.Asformedicines,theCompanyhascomprehensivestrengthsinfull-productandfull-channelcoverage,efficienthospital-institutioncoordination,andcoordinateddistributionandagencyoperations.Withregardtomedical

devices,theCompanyleveragesalarge-scaledistributionnetworktosupportspecializedagencyoperations,withafocusoninnovativebusinesses.Forthedecoctionpiecessegment,itbenefitsfromfull-industry-chainadvantagesandcontinuestoexpanditsbusinessacrosstheprovincethroughefficiencyupgradesandcapacityexpansion.Withdigitalizationandinnovativeservicesascoredrivers,theCompanyintegratesCSOpartnerships,SPDsupplychainmanagement,andindustry-university-researchprojectstobuildan"integratedpharmaceuticalservice"ecosystem,preciselyconnectingupstreamanddownstreamneeds.Simultaneously,itfocusesonthreestrategicpillars—organizationalefficiency,costcontrol,andregionalpenetration—tocontinuouslyconsolidateitsindustry-leadingposition.Intermsofaestheticmedicine,theCompanyhascreatedacomprehensiveanddifferentiatedproductmatrixbyfollowingthestrategyof"globaloperationlayoutanddual-circulationoperation&development"withaninternationalvisionandforward-lookinglayout,andnowranksattheforefrontoftheindustryintermsofproductquantityandcoverage.Specifically,over20productshavebeenlaunchedinChinaandabroad,andmorethanadozeninnovativeglobalproductsareindevelopment.Fosteringdifferentiatedproductlinesthatcoverthreemajorinjectablecategories—regenerative,hyaluronicacidandbotulinumtoxin,theCompanyiscommittedtobecomingagloballeadingaestheticmedicinecomprehensivesolutionproviderbyofferingpatientswithmoreprofessional,efficient,comprehensiveandsaferintegratedsolutionsthroughdiversifiedcombinedtherapytechniquesthatcombine"noninvasiveandmicro-invasive","facialandbodyfilling",and"injection+energy-baseddevice".Sinclair,itswholly-ownedsubsidiary,istheCompany’sglobalaestheticmedicineplatform.SinclairisheadquarteredintheUKandoperatesmultipleR&Dcentersandproductionbasesglobally.PromotingandmarketingPCLmicrospheresforinjection,hyaluronicacid,facialthreadliftingandotherproductsinglobalmarkets,Sinclairresearches,develops,andexpandsitsbusinessesofenergy-baseddevicesthroughitswholly-ownedsubsidiariesHighTechandViora.Asfortheaestheticmedicinesegment,theCompanyalsohasSinclair(Shanghai),awholly-ownedsubsidiaryanditsmarketoperationplatforminChina,aswellasR2intheU.S.andKylaneinSwitzerland,twooverseastechnicaldevelopment-typejointstockcompanies.

TheCompany’sindustrialmicrobiologysegmentfocusesontwokeydirectionsofsyntheticbiotechnologyinnovationandbio-pharmaceuticalindustryadvancement,prioritizingthedevelopmentoffourcorebusinesssegments:xRNArawmaterials,featuredAPIs&intermediates,massivehealth&biomaterials,andanimalhealth.Afterfourdecadesofdevelopment,theCompanyhasestablishedaresearchmatrixanchoredbyIndustrialMicrobiologyofZhongmeiHuadong,synergizedwithHITInstituteofSyntheticBiology,HuidaBiotech,PerfectmRNAandShengjiMaterial.Thisframeworkintegratesfull-chaintechnologicalcapabilitiesinmicrobialengineering,

maintaininganR&Dandproductionsystemthatspanstheentirelifecycleofmicrobial-derivedmedicines,alongsideinterdisciplinaryR&Dplatformsandindustrialresourcenetworks.Asforitsindustriallayout,theCompanyoperatessevencoordinatedindustrialbasesinHangzhouXiangfuqiao,QiantangNewArea,JiangsuJoyangLaboratories,MagicHealth,AnhuiMeihua,WuhuHuaren,andNanjingNongdaAnimalPharmaceutical.Moreover,theCompanyhassetupthelargestfermentationmonomerplantsinZhejiangandformedtheindustry-leadingintelligentproductionsystemthatcoversallstagesfromstrainscreeningandprocessdevelopmenttoscaleproduction.WithacompletemanufacturingecologicalchainthatencompassestechnologicalR&D,pilot-scaleamplification,engineeringconversion,andqualitycontrol,theCompanysustainsitsindustryleadershipinfermentationscaleandprocesstechnology.

(II)OverviewofcompanyoperationsduringthereportingperiodInthefirsthalfof2025,theglobalgeopoliticallandscapebecameincreasinglycomplexandvolatile.Competitionandrivalryinthefieldofinternationaleconomyandtradecontinuedtoescalate,withunilateralmeasuressuchastariffbarriersevolvingconstantly.Thisnotonlytriggeredprofoundrestructuringofglobalsupplychainsbutalsosubjectedthemultilateraltradingsystemtounprecedentedchallenges.Againstthisbackdrop,themomentumforglobaleconomicgrowthweakenedsignificantly,andvariousunstableanduncertainfactorsintertwined,makingtheglobaldevelopmentenvironmentfarmorecomplexandsevere.Instarkcontrast,Chinaadheredtoimplementingmoreproactiveandeffectivemacroeconomicpolicies.Itsnationaleconomymaintainedanoverallstableoperationandcontinuedtomovetowardpositivedevelopmentonthefoundationofstability,fullydemonstratingthestrongresilienceandvigorousvitalityoftheChineseeconomy.

2025marksthefirstyearoftheCompany'seighththree-yearplan,andmoreimportantly,apivotaltransitionalperiodtoembarkonanewphaseoftransformativeandinnovativedevelopment.AmidthecomplexandchallengingChineseandforeignpoliticalandeconomiclandscape,aswellastheprofoundstructuraladjustmentsunderwayinChina'spharmaceuticalindustry,allemployeesofHuadongMedicinehaveremainedsteadfastinaligningwiththeoverarchingstrategicplanandannualbusinessobjectives.Guidedbytheprinciplesof"upholdingtheentrepreneurialspirit,furtherdeepeningreforms,forgingarobustorganizationalsystem,andseizingdevelopmentopportunities",wehaveforgedaheadunderpressure,focusedonbreakthroughs,andtookproactivestepsinthefiercelycompetitivemarkettoensurethesolidimplementationofkeyinitiatives.Duringthereportingperiod,theCompanyachievedsteadyimprovementsinoperationalqualityandefficiency,maintainedapositivedevelopmenttrajectory,andcontinuouslyenhanceditscorecompetitiveness.Itnotonlysuccessfullymettheprimarybusinesstargets,butalsodeliveredamid-yearperformance

reportthatreflectshigh-qualitydevelopment.

Inthefirsthalfof2025,theCompanyrecordedtotaloperatingrevenueofRMB21.675billion,representingayear-on-yearincreaseof3.39%(3.12%growthinQ1);netprofitattributabletoshareholdersreachedRMB1.815billion,up7.01%year-on-year(6.06%growthinQ1);andnetprofitattributabletoshareholdersexcludingnon-recurringgainsandlossesamountedtoRMB

1.762billion,an8.40%increaseyear-on-year(7.04%growthinQ1).TheCompany'soveralloperationsmaintainedastableandupwardtrendwithquarterlyimprovements,layingasolidfoundationforachievingtheannualbusinesstargets.

Specifically,inQ22025,theCompanyachievedtotaloperatingrevenueofRMB10.939billion,ayear-on-yearincreaseof3.65%;netprofitattributabletoshareholdersofthelistedcompanywasRMB900million,ayear-on-yearincreaseof7.98%;andnetprofitattributabletoshareholdersofthelistedcompanyafterdeductingnon-recurringgainsandlosseswasRMB864million,ayear-on-yearincreaseof9.85%.

OperationanddevelopmentofthefourmajorbusinesssegmentsoftheCompanyduringthereportingperiod:

1.Pharmaceuticalindustrysegment

Duringthereportingperiod,thecoresubsidiaryHangzhouZhongmeiHuadongPharmaceuticalCo.,Ltd.(ZhongmeiHuadong)maintainedrobustgrowthmomentum,recordinganoperatingrevenueofRMB7.317billion(includingCSObusiness),ayear-on-yearincreaseof9.24%,andachievinganetprofitattributabletotheparentcompany’sshareholdersofRMB1.580billion,up

14.09%year-on-year,withareturnonequity(ROE)of12.16%.

InQ2alone,theoperatingrevenuereachedRMB3.696billion,ayear-on-yearincreaseof

12.04%,andthenetprofitattributabletotheparentcompany’sshareholderswasRMB737million,up16.34%year-on-year.

ZhongmeiHuadong’scommercializationpipelineofinnovativepharmaceuticalproductshascontinuedtoexpand,coveringkeytherapeuticareassuchasoncology,endocrinology,andautoimmunity.RepresentativeproductsincludeNesina

?(AlogliptinBenzoateTablets),Liluping

?

(LiraglutideInjection),Huiyoujing

?(GanagliflozinProlineTablets),Sailexin

?

(UstekinumabInjection),aswellasElahere

?(MirvetuximabSoravtansineInjection)andSaikaize

?

(ZevorcabtageneAutoleucelInjection),aCAR-Tproduct.Duringthereportingperiod,drivenbytheincrementalcontributionsfromnewlyapprovedproducts,therevenuefrominnovativeproductbusinessescontinuedtoclimb,withcombinedsalesandagencyservicerevenuefortheperiodreachingRMB1.084billion,aremarkableyear-on-yearincreaseof59%,signalingtheentryintoaphaseofrapidgrowth.

ThedeepeningoftheinnovationtransformationstrategyispropellingZhongmeiHuadongintoapivotalstageofresultsrealizationandvaluerelease.ThecontinuousexpansionoftheinnovativeproductportfolioandbreakthroughsincommercializationareinjectingstrongmomentumintoZhongmeiHuadong’ssustainedfutureperformance.

Duringthereportingperiod,ZhongmeiHuadongPharmaceuticalServiceCorporation(theCorporation)adheredtothecorephilosophyof“Innovation,Professionalism,andService,”with“Problem-SolvingandValueCreation”asthemanagementbenchmark,proactivelyadaptingtomarketchanges.Byfocusingonthedevelopmentofpharmaceuticalservicesanddigitalmarketingsystems,theCorporationcomprehensivelyenhancedproductpromotionandserviceefficiency,havingachievedsignificantprogressinitstransformationjourney.Bydeepeningitspresenceinnichemarkets,expandingintolower-tiermarkets,andimplementingdifferentiatedpromotionstrategies,theCorporationcontinuouslyimprovedmarketpenetrationandhospitalcoverageforkeyandleadingproducts,furtherstrengtheningitsmarketcompetitiveness.

Intermsofmarketstrategy,theCorporationfullyadvancedacomprehensivemulti-channelstrategy,achievingbreakthroughsacrossmultipledimensions.Inthehospitalmarket,theCompanyconsolidateditsleadingpositionthroughproductreputationandprofessionalservices,bothtappingthepotentialofestablishedproductsandenhancingacademicmarketingtoacceleratenewdrugadoptionandprescriptiongrowth.Withthesequentiallaunchofinnovativeproductsdiversifyingitsportfolio,theCorporationcanprovidemorepreciseandpersonalizedtreatmentoptionsfordifferentpatients.Inthenon-hospitalandprimarycaremarkets,theCorporationalignedwiththeprogressiveimplementationoftieredhealthcarepolicies,penetratedcommunityandtownshiphealthcareinstitutionsbyconstructingaprimarymedicalservicenetwork,andenhancedproductawarenessandaccessibilitybymeansofdiversifiedpromotionandcommercialcollaboration.Intheretailmarket,theCorporationstrengthenedchanneldevelopmentacrossonlineplatforms,OTCmarkets,andDTPpharmacies:optimizingthemedicationpurchaseprocessthroughpartnershipswithmajore-commerceplatformstoenableprecisedruginformationdeliveryandconvenientpurchasing;intensifyingbrandpromotionintheOTCmarkettoboostmarketshareviaadvertisingandpoint-of-salepromotions.Concurrently,theCorporationcontinuedtorefineitsregionalmarketingdepartmentsandKAsystems,reinforcingproductcompetitivenessthroughacademically-drivenandmedically-ledstrategies.ThroughcollaborationswithChineseandforeignresearchinstitutionsanduniversities,theCorporationconductedpost-marketingevidence-basedmedicalresearchonnewindicationsforkeyproducts,providingrobustclinicalevidencetosupporttheirclinicalapplication.TheCorporationadvancedorganizationaltransformationbycontinuouslyoptimizingitsstructure,strengtheningtalentcultivationandexternalrecruitment,andpromotingtheprofessional

developmentofthepharmaceuticalserviceteamtoestablisharobusttalentpipeline.Duringthereportingperiod,thesalesofnewlyapprovedinnovativedrugscontinuedtorise,becomingoneofthecoredriversofsustainedgrowthinthepharmaceuticalindustry.Sinceitslaunch,theCAR-TproductZevorcabtageneAutoleucelInjection(tradename:Saikaize

?

)hasdominatedthemarketwithexcellentclinicalsafetyandefficacyfeedback.Inthefirsthalfof2025,Saikaize

?

wascertifiedandregisteredinmedicalinstitutionsacrossmorethan20provincesandmunicipalitiesnationwide,andtheCorporationhasplaced111validorderswithitspartnerCARsgenTherapeutics.Concurrently,theCorporationactivelypursuedcollaborationswithmedicalinsuranceandHuiminbaoprograms.AsofthereleaseoftheReport,over100insuranceandHuimininsuranceprogramshaveincludedSaikaize

?intheirreimbursementcategory,significantlyalleviatingthefinancialburdenofpatients.Lookingahead,Saikaize

?

isexpectedtomaintainrapidgrowthconsideringthecontinuousmarketexpansionandincreasedcoverageunderregionalHuiminbaoprogramsandcommercialinsuranceplans.SincetheCategory1innovativeproductGanagliflozinProlineTablets(Huiyoujing

?)wasincludedintheupdatedNationalReimbursementDrugList(NRDL),thepromotionteamofZhongmeiHuadongPharmaceuticalsServiceCorporationhasmadeactivehospitalaccessefforts,andthenumberoftieredhospitalscoveredatpresenthasexceeded1,200,layingasolidfoundationforsubsequentrapidgrowth.Additionally,multiplenationalandregionallarge-scaleclinicaltrialshavebeenconducted,includingreal-worldstudies(RWS)andvariousclinicalstudiesoncomplications/comorbiditiesinpatientswithtype2diabetes(T2DM).Inproductpromotion,effectivesynergyhasbeenachievedbysharingresourceswithMetforminHydrochlorideandEmpagliflozinTablets(Enshuangping

?),consolidatingtheCorporation'scorecompetitivenessintheSGLT-2inhibitorsegmentfordiabetes.

MirvetuximabSoravtansineInjection(ELAHERE

?

)istheworld'sfirstandonlyFDA-approvedADCtargetingFRα-positiveplatinum-resistantovariancancer.Itisalsothefirstandonlyglobalinnovativedrugtodemonstratedualbenefitsinbothprogression-freesurvival(PFS)andoverallsurvival(OS),earningtheexclusiveI-levelrecommendationfromauthoritativeguidelinesworldwide.Theproducthasbeenapproved,andtheCorporationisactivelyconductingsalesteamtraining,withplanstolaunchitsformalcommercialsalesinChinainQ42025.IthaspreviouslyachievedpilotimplementationintheHainanBoaoLechengPilotZoneandconductedreal-worldstudiesforplatinum-resistantovariancancerattheRuijinHainanHospital.InAugust2024,Elahere

?

wasapprovedundertheinnovative"HongKong-MacaoDrugandDeviceAccess"policyandintroducedintheGuangdong-HongKong-MacaoGreaterBayArea,enablingpatientstoreceiveintegrateddiagnosisandtreatmentatdesignatedhospitalsinthearea.Duringthereporting

period,theproductgeneratedsalesrevenueofapproximatelyRMB30millionintheaforementionedarea.SinceitsapprovalandmarketlaunchinNovember2024,theCorporation'sUstekinumabInjection,SAILEXIN

?

,hasdemonstratedconsistentlyexcellentmarketperformance.Thepharmaceuticalservicesteamhasdeeplyexploredtheproduct'soutstandingadvantagesintermsofeaseofuse,drugsafety,andaccessibilityundermedicalinsurancereimbursement.ByleveragingsharedresourcesandclosecollaborationwiththeCorporation'sexistingautoimmuneproductline,ithasestablishedeffectivesynergies.AsofJune30,2025,thenumberofhospitalsthathaveprescribedtheproductexceeds1,200,withmarketsalesgraduallyincreasing.Throughinitiativessuchassolicitingoutstandingcasestudies,launchingpublicwelfaresciencepopularizationprojects,organizingmulti-levelandmulti-dimensionalonlineandofflineacademicseminars,andconductingnationwidemulti-centerreal-worldstudies(RWS),theCorporationhasexpandedtheproductinfluenceandoptimizedclinicalmedicationpractices.SAILEXIN

?

isexpectedtobecomeanewcoreproductintheCorporation'sautoimmunediseasefield.InJanuary2025,theCorporation'sexclusivelymarketednovel1.5-generationPARPinhibitor,SenaparibCapsules(tradename:Paishuning

?),wasapprovedformarketingbytheNationalMedicalProductsAdministrationandisnowcommerciallyavailable.Toenhancemarketaccessandpatientaffordability,theCorporationhasimplementedmultiplekeyinitiatives:ontheonehand,ithasacceleratedthelistingofdrugsonofficialprocurementplatformsandthehospitalaccessprocess.Currently,ithascompletedthelayoutofover200DTPpharmacies,coveringmorethan600medicalinstitutions,andbuiltamulti-leveldrugsupplynetwork;ontheotherhand,theCorporationactivelypromotestheinclusionoftheproductininsuranceprograms.IthassuccessfullyincorporatedtheproductintoregionalHuiminbaoprograms(e.g.,WestLakeYilianbao(Hangzhou),ShanghaiHuibao,Chonghuibao(Nanchong),JiaxingHuiminbao,andCPIC-ShanghaiXiangbao)aswellasothercommercialinsuranceprograms,effectivelyreducingthefinancialburdenonpatients.Meanwhile,theCorporationisactivelyadvancingvariouspreparatoryworksforPaishuning

?

tobeincludedintheNationalReimbursementDrugListthroughnegotiation.Thislaysasolidfoundationfortheproducttoachieverapidsalesgrowthafteritsinclusioninthemedicalinsurancesystem,helpingmorepatientsbenefitfromthisinnovativetreatmentregimen.

Duringthereportingperiod,HuadongMedicine(Guizhou)PharmaceuticalCo.,Ltd.(hereinafterreferredtoas"GuizhouCorporation")establishedaprofessionalself-operatedpromotionteamtovigorouslyadvancethemarketaccessofitscoreproductShangkeling

?

inlargeandmedium-sizedhospitals,whilecontinuouslyexpandingthecoverageofretailpharmaciesandsalespromotionreach.Asofnow,accesshasbeensecuredinover760tieredhospitals,nearly3,000

primaryhealthcareinstitutionshavebeencovered,andretailpharmacycoveragehasexceeded80,000,achievinglarge-scaleexpansionofthechannelnetwork.Leveragingthedeepenedchannellayout,GuizhouCorporationexperiencedexplosivegrowthinoveralloperations:TheoperatingrevenueduringthereportingperiodreachedRMB102.11million,representingayear-on-yearincreaseof188%,andthenetprofitwasRMB27.54million,surgingover300%year-on-year.Lookingahead,ZhongmeiHuadongwillfullycapitalizeontheuniqueadvantagesofShangkeling

?

asanexternalpreparationoftraditionalChinesemedicineandits"dual-status"attribute(availablebothasaprescriptiondrugandanover-the-counterdrug),positioningitasacoredriverforbreakthroughout-of-hospitalsales.Bysynergizingeffortsacrosstieredhospitals,primaryhealthcareinstitutions,andtheout-of-hospitalmarket,theCorporationwillsystematicallyenhancethecomprehensivemarketingcapabilitiesofitspharmaceuticalteam.Concurrently,initiativessuchascollectingtypicalcasestudies,conductingnationwidemulti-centerclinicalresearchonosteoarthritis,andexploratorycomparativestudiesonsofttissueinjurieswillstrengthenmultidisciplinarypenetration.Additionally,diversifiedscenariomarketing—includinghealthrunsandsportseventsponsorships—willbolsterbrandinfluence,layingasolidfoundationforthefuturemarketpromotionoftheCorporation’sexternalproductportfolio.

Duringthereportingperiod,theCompany'sproductionteamcloselyadheredtothedevelopmentgoalsof"highqualityandhighefficiency,"drivingthetransformationandupgradingoftheproductionmanagementsystemthroughsystematicinnovationandrefinedoperations.Ontheonehand,theCompanycontinuedtoadvancecost-reductionandefficiency-enhancementinitiatives,optimizingoperationalefficiencyacrossmultipledimensionsbyrefiningcostcontrolandimprovingper-capitaoutput.Ontheotherhand,itleveragedartificialintelligencetechnologytodriveasecondwaveofinnovationinproductionmanagementmodels,activelyadvancingworkshopautomation,unmanneddistributionsystems,electronicinspectionprocesses,andtheimplementationofintelligentprojectssuchastheLims,MES,andEQMSsystems,injectingnewdigitalmomentumintoproductionprocesses.

TheconstructionofAreaIoftheHuadongMedicineBio-InnovationIntelligenceCenterwascompletedinJune2025,withequipmentdebugginginitsfinalstages.ThisareafocusesonthecommercialproductionofADCs(antibody-drugconjugates),peptides,andantibodyproducts.SupportedbyinternationallystandardizedQClaboratories,integratedwarehousingcenters,andR&Dfacilities,itisdesignedtomeetfull-chainneedsfromclinicalsamplepreparationtolarge-scaleproduction.TheconstructionofAreaIIcommencedinJune2025,emphasizingcriticalauxiliaryfacilitiessuchashazardouschemicalwarehouses,ClassAworkshops,andenvironmentaltreatmentsystems,whichareplannedtobecompletedandputintousebyJune2026.Uponthe

overallcompletionoftheproject,acomprehensivebiopharmaceuticalindustrializationplatformcoveringR&D,production,andlogisticswillbeformedtosupportthetechnologytransferoftheCompany'sglobalinnovationandR&Decosystem.HuadongMedicine'sSyntheticAPIBaseProject(Xi'anBohua)alsobrokegroundinJune2025.Designedinlinewithinternationalstandards,theprojectplanstobuildthreeintelligentproductionlinescovering20typesofhigh-endAPIsforcardiovascular,cerebrovascular,andanti-tumortherapies.ThisinitiativewillstrengthentheCompany'sfull-chaincapacitylayoutinsyntheticbiologyandformstrategicsynergywiththeBio-InnovationandIntelligentManufacturingCenter.ThesmoothprogressofkeynewproductionprojectsmarksanewstageintheindustrializationcapabilityoftheCompanywithinthebiologicsandsyntheticAPIsectors.Byestablishingadual-drivenproductionmatrixof"biologicsintelligentmanufacturing+syntheticAPIs,"theCompanycanprovidefull-cycleproductioncapacitysupportfromclinicaldevelopmenttocommercializationforitspipelineofover80innovativedrugsunderdevelopment(includingkeyvarietiessuchasADCsandGLP-1).

Duringthereportingperiod,theCompany'sR&Dinvestmentinthepharmaceuticalindustry(excludingequityinvestment)reachedRMB1.484billion,ayear-on-yearincreaseof33.75%,ofwhichdirectR&DexpenditurewasRMB1.174billion,ayear-on-yearincreaseof54.21%,accountingfor15.97%ofthepharmaceuticalindustryrevenue.TheCompany'sinnovativedrugR&Dcenterisadvancingthedevelopmentofover80innovativedrugsinitspipeline,withmultiplepositiveresultsachievedinthefirsthalfof2025.Fordetails,pleaserefertothe"(III)R&D"sectionbelow.

2.Pharmaceuticalbusinesssegment

FromJanuarytoJune2025,HuadongMedicine’spharmaceuticalbusinesssegmentfaceddualpressuresofpayment-sidecostcontrolandstructuraladjustmentofthemarket.Byadoptingadual-driverstrategycoveringbothin-hospitalandout-of-hospitalmarkets,whileprioritizingtheexpansionofdiversifiedbusinessesandoperationalefficiencyimprovements,thesegmentcontinuedtosolidifyitsfoundationforsteadydevelopment.Overall,theCompanymaintainedstablegrowth,achievingoperatingrevenueofRMB13.947billion(ayear-on-yearincreaseof

2.91%)andnetprofitofRMB226million(ayear-on-yearincreaseof3.67%).

Duringthereportingperiod,theCompanyfocusedonitscoreoperationalstrategyof"preservingexistingbusiness,drivingincrementalgrowth,andimprovinglaborefficiency."Leveraging"innovativebusiness,innovativeproducts,andinnovativemodels",itdeepenedtheiterativeupgradeoffull-spectrumservicecapabilitiesinpharmaceuticals,medicaldevices,anddecoctionpieces.Forthepharmaceuticalbusiness,itstrengtheneditsresponsivenesstocentralizedprocurementordersandsystematicallyoptimizedorderfulfillmentrates.Italsopioneereda

traceabilitycodepolicyresponsesystem,securingcoremarketsharesinleadinghospitalswhileproactivelyadaptingtothenewlandscapeofpharmaceuticaldistributioninretailandnon-publicmedicalmarketspostfullimplementationofdrugtraceabilitycodes.Additionally,itstrategicallyadvancedtheprofessionaltransformationofretailpharmacies,withafocusonnewchangesinprescriptionacceptanceforDTPpharmacies.Inthemedicaldevicebusiness,theCompanycompletedthestrategicreorganizationofitsnewbusinessdivision.Leveragingitslarge-scaledistributionnetwork,itexpandeditsprofessionalagencysystem—focusingonstabilizingmarketshareincoremedicalequipmentsegments,buildingbrandrecognitionintheage-appropriatehealthindustry,andfacilitatingtheimplementationofprojectssuchasintegratedoperatingrooms.Simultaneously,itactivelyseizednewopportunitiesarisingfromthereformofhospitalSPDmodels.Inthedecoctionpiecesbusiness,theCompanydeepeneditsrefinedmanagementacrosstheentireindustrialchainandstrategicallylaunchedtwonewdecoctioncentersin"CentralZhejiang(Jinhua)"and"SouthernZhejiang(Wenzhou)."Throughtheupgradingofdecoctiontechnologiesandtheiterationofautomatedproductionlinesfordecoctionpieceprocessing,itsignificantlyimprovedproductionefficiencyandqualitystability,effectivelymeetingthestandardizedfulfillmentrequirementsforprovincialcentralizedprocurement.

Breakthroughsinstrategicsynergyforinnovativebusinesses:Intermsofretailserviceevolution,theCompanydeepenedthedevelopmentofprofessionalpharmaceuticalservicecapabilities,withafocusonenhancing"integratedpharmaceuticalservicecapabilities."Itfocusedonhospital-affiliatedspecialtypharmacies,launcheddual-channelaccess(medicalinstitutionsandretailpharmacies),andimprovedprofitability.IntermsofCSOvalueextension,itfocusedonhigh-growthmarketsegmentssuchasbloodproducts,providingupstreamanddownstreamclientswithfull-lifecycleservicesolutionscoveringproductaccesssupport,clinicalacademictraining,andprescriptionvolumemanagement.Meanwhile,itexpandedintooncologyprojects,exploredtheaestheticmedicinemarketinpublicmedicalinstitutions,andbuiltupitsagencybusinessforaestheticmedicineproductssuchasbotulinumtoxinsandpremiumhyaluronicacid.Continuousreconstructionandupgradingofcoresupportingcapabilities:Intermsofsupplychainhardpowerleap,theregionalintelligentlogisticshubhascompletedthefunctionalupgradeofmulti-warehousecollaboration,thecoldchaindistributionnetworkwasexpanded,andcapabilitiesforcirculationguaranteeofvaccines,specialtydrugs,andnuclearmedicineswerestrengthened.Intermsofdigitalupgrades,thebusinesssystemwasfullymigratedonlinetointegratetheentireorderprocessingworkflow,enhancingtheresponsivenessofpharmaceuticalservices.Intermsoforganizationalefficiencyimprovement,throughbusinessarchitectureintegration,itsimultaneouslyoptimizedcentralizedprocurementcostsandlaunchedaspecialcampaigntoclearaccountsreceivable,

therebyimprovingcapitalturnoverefficiency.Leveragingitsrapidpolicyresponsemechanism,in-depthstrategiccooperationwithtop-tierhospitals,andrefinedregionalmarketoperations,theCompany'spharmaceuticalbusinesssectorhasdriventhetransformationofitsbusinessmodel—fromatraditionaldistributortoavalue-addedserviceplatform.Withintheframeworkofpolicycompliance,itisexploringinnovativegrowthdrivers,includingthelinkagebetweenin-hospitalandout-of-hospitalmarkets,theintegrationofwholesaleandretailbusinesses,theconvergenceofpharmaceuticalandmedicaldeviceservices,andtheexpansionofintelligentdecoctionservicesfordecoctionpieces.

3.AestheticmedicinesegmentAmidexternalpressuressuchasglobalmacroeconomicfluctuationsandmarketdemandadjustments,themedicalaestheticsindustryhasenteredaphaseofslowinggrowthunderpressure.Duringthereportingperiod,theCompany'saestheticmedicinesegmentachievedtotaloperatingrevenueofRMB1.112billion(excludinginternaloffsetfactors),reflectingacertainyear-on-yeardecline.

Sinclair,oneofHuadongMedicine’swholly-ownedsubsidiariesandtheglobaloperatingplatformoftheCompany’saestheticmedicinebusinessbasedintheUK,proactivelyexpandedsalesofitsaestheticmedicineinjectablefillerproductsandEBDproductsglobally.Affectedbymultiplefactorssuchassluggishglobaleconomicgrowth,fluctuatingexternaldemandforEBDbusiness,andinternaladjustments,SinclairachievedsalesrevenueofapproximatelyRMB524millionduringthereportingperiod,representinga7.99%year-on-yeardecrease,withitsoveralloperationsmetphasedtargets.Inthesecondquarter,salesrevenuereachedapproximatelyRMB286million,ayear-on-yeardecreaseof4.08%,butaquarter-on-quarterincreaseof19.96%comparedtothefirstquarter.

Duringthereportingperiod,Sinclair,theCompany'swholly-ownedsubsidiaryindomesticaestheticmedicine,achievedoperatingrevenueofRMB543million,ayear-on-yeardecreaseof

12.15%,withaquarter-on-quartergrowthof14.16%inQ22025comparedtoQ1,markingtwoconsecutivequartersofpositivesequentialgrowth.Despitethedomesticaestheticmedicineindustryremaininginaphaseofongoingadjustmentduetoacceleratedconsumerdemandshiftsandintensifiedmarketcompetition,theCompany'sdomesticaestheticmedicinebusinesscontinuestodemonstratestrongoperationalresilience.Withtheupcomingapprovalandcommercializationofseveralkeyaestheticmedicineproducts,theproductportfolioofSinclairwillbefurtherimprovedandenriched,markingthepotentialcommencementofitsnewgrowthcycle.

Duringthereportingperiod,Sinclair,withtheCompany’sbrandasthedriver,continuedtostrengthentheproductlayoutofitsinjectablepipeline,anddrovesynergisticdevelopmentacross

multiplesub-brands.BymaintainingcollaborationwiththeglobalR&Dteamandadheringtotheprincipleofprioritizingprofessionalmedicalstandards,itenhanceditsinfluenceamongB-endinstitutionsanditsreputationamongC-endconsumers,establishingabrandimageof"professionalism,aesthetics,andpremium".Asofnow,thecompany’sthreenewsecond-generationEllansé

?

products—EllanséZhenyan

?,EllanséJinyan

?,andEllanséZhizhen

?—havebeenintroducedandpromotedinnearly500medicalaestheticinstitutions,garneringstrongmarketacclaim.Additionally,tobettermeetdifferentiatedchanneldemandsandenhancemarketpenetrationofmedicalaestheticservices,SinclairlaunchedtheclassicversionofEllansé

?in2025,targetingmarketaccessinpublichospitalsandcustomizedproductdevelopmentforspecificstrategicpartners.MaiLiExtreme

?

(tradename:MaiLi

?Shuoying

?),anewpremiumlidocaine-containingsodiumhyaluronatefillerforinjection,wasofficiallycommercializedinMay2025.OriginatingfromSwitzerland,MaiLi

?

istheworld’sfirstpremiuminjectablehyaluronicacidproductfeaturingOxiFree

?"oxygen-free"cross-linkingtechnology.Sinceitslaunch,theEBDproductsfromthecompanyhavebeenwidelyfavoredbynumerousinstitutionsandcustomers.Todate,over300institutionshaveintroducedtheGlacialspa

?

orReaction

?devices.Additionally,thenext-generationRenotion

?wasofficiallyreleasedinMay,garneringsignificantacclaimfromdoctorsandexperts.Inthefirsthalfof2025,theoverallterminalsalesofEBDproductsachievedsubstantialyear-over-yeargrowth.Furthermore,theCompanyisactivelyadvancingthedomesticlaunchoftheaestheticdevicePréimeDermaFacial,continuouslyenrichingitsproductportfoliotoprovidecustomerswithexceptionalexperiencesandservices.Sinclairhascompleteditsdual-channelbusinessdevelopmentstrategy,coveringbothpublichospitalsandprivatemedicalaestheticsinstitutions,tomeettheincreasinglydiverseneedsofcustomersforprofessional,high-end,andcustomizedaestheticsolutions.Committedtotheprincipleof"medicalprofessionalismfirst"initsaestheticmedicinebusiness,Sinclairorganizedover180offlinemedicaltrainingandeducationeventsinthefirsthalfof2025,trainingmorethan3,000doctors.Itsonlineeducationplatformrecordedover130,000doctorvisits,with17academicjournalpaperspublished,including11SCI-indexedjournals(English).AsofJune30,2025,Ellansé

?

hassignedcooperationcontractswithover1000hospitalsandtrainedover2000certifiedphysicians.Againstthebackdropofnationalpoliciesvigorouslypromotingthestandardizedtransformationoftheestheticmedicineindustry,theGuidelinesfortheEstablishmentofPricingProjectsforAestheticandPlasticMedicalServices(Trial)issuedbytheNationalHealthcareSecurityAdministrationinJune2025hasprovidedclearpolicyguidanceandpricingstandardsforpublichospitalstodevelopplasticandaestheticservices.Drivenbythispolicyorientation,Grade

IIIClassAhospitalsacrossChinaareacceleratingtheirdeploymentintheaestheticmedicinesector,aimingtofillthemarketgapinprofessional,standardizedaestheticservicesandmeetthegrowingdemandforhigh-qualityaestheticcare.Facingthestrategicopportunityofrapiddevelopmentinthepublichospitalaestheticmedicinemarket,thepharmaceuticalservicesteamofZhongmeiHuadongandtheaestheticmedicineteamofSinclairhaveestablishedadeepcollaborationmechanism.Througha"dual-drive"strategy,theyarecomprehensivelydeployinginthepublichospitalmarket,withtargetedplanning,divisionoflabor,andmarketaccessforaestheticmedicinepromotioninpublichospitals.Thepharmaceuticalservicesteamisacceleratingteamformation,productlistingonpublicprocurementplatforms,accessnegotiations,andpersonneltraining.TheyareactivelyundertakingthepromotionofinjectablefillerproductsandEBDproductsinpublichospitals,strivingtobuildaprofessionalpromotionteamspecializedinpublichospitalaestheticmedicine.Thiswillcreateaclosed-loopecosystemof"productaccess-clinicalpromotion-continuousservice"inthepublichospitalmedicalaestheticsmarket,fosteringanewgrowthdriverforthecompany'smedicalaestheticsbusiness.Duringthereportingperiod,theCompanycontinuedtodevelopandadvancetheoverseasregistrationofitsaestheticmedicineproducts.Thenext-generationinjectabledermalfillerKIO015iscurrentlyinthetechnicalreviewstageforEUMDR-CEcertificationandisexpectedtoobtainEUCEcertificationby2025.AllinjectableproductsoftheCompany,includingregenerativematerials(Ellansé

?

,Lanluma

?

),hyaluronicacidfillers(MaiLi

?,Perfectha

?),andthreadliftingproducts(SilhouetteSoft

?,SilhouetteInstalift

?),havebeenregisteredandmarketedinovertenmarketsintheMiddleEast.TheregistrationofcoreEBDproductssuchastheCooltech,Elysion,andPrimelaseseriesintheMiddleEastmarkethasalsobeenactivelypromoted,withoverallprogressexceeding50%.Ellansé

?ShasbeenapprovedforclinicaltrialsintheU.S.,andprojectinitiationandinjectiontrainingforinvestigatorshavebeencompleted.Currently,subjectenrollmentisover50%complete.Meanwhile,theCompanyhasinitiatedpreparatoryworkfortheregistrationofMaiLi

?

intheU.S.,andotherinjectableproductssuchasKIO015arealsoinactivepreparationforU.S.registrationandclinicaltrials.Duringthereportingperiod,theCompanycontinuedtopromotetheregistrationandcommercializationofseveralcoreproductsinChina.ForV30(ahigh-endintegratedmultifunctionalplatformcombiningradiofrequency,intensepulsedlight,andNd:YAGlaser),asupplementaryinformationnoticewasreceivedfromtheCenterforMedicalDeviceEvaluationinJune2025,andtherelevanttechnicalmaterialsarecurrentlybeingprepared.Forthenewhigh-endlidocaine-containingsodiumhyaluronatefillerforinjection,MaiLi

?

Precise(indicatedforinfraorbitalhollows),databaselockforitsChineseclinicaltrialwascompletedinearlyJuly2025

anditiscurrentlyinthesummaryreportphase.Thesameseries,MaiLi

?Extreme(indicatedforimprovementofjawlinecontour),receivedNMPAapprovalformarketlaunchinJanuary2025.ForEllansé

?

S,subjectenrollmentforitsnewindication(foreheadcontourimprovement)inChinawasfullycompletedinNovember2024,andthetrialiscurrentlyintheprimaryendpointfollow-upstage.Meanwhile,Ellansé

?M—along-actingcollagen-stimulatingproductoftheEllansé?series(indicatedfortemporalhollowimprovement)—receivedaregistrationacceptancenotificationfromtheNMPAinJanuary2025.Forthepoly-L-lacticacidcollagenstimulatorLanluma

?

,subjectenrollmentfortheChineseclinicaltrialwascompletedinNovember2024,andthetrialiscurrentlyinthefollow-upphase.ThenewmaterialchitosandermalfillerKIO021isexpectedtoentertheclinicaltrialphaseinSeptember2025.TheMarketingAuthorizationApplicationfortheCompany'sexclusivedistributionproduct,RecombinantBotulinumToxinTypeAforInjection(R&Dcode:

YY001),wasacceptedbytheNMPAinDecember2024.Theon-siteproductioninspectionofNMPAwascompletedinJune2025,andtheproductiscurrentlyinthetechnicalreviewstage.FortheregistrationprogressofotherkeyaestheticmedicineproductsinChina,pleaserefertothesection"ProgressinregistrationandlaunchingofaestheticmedicineproductsinChina"below.

Figure:HuadongMedicine'skeyaestheticmedicineproducts

4.IndustrialmicrobiologysegmentDuringthereportingperiod,theCompanykeptimplementingtheindustrialmicrobiologydevelopmentstrategyandfurtherstrengtheneditsproductR&DandmarketexpansioncapabilitiesbycontinuouslyadvancingfourmajorfieldsofxRNA,featuredAPIs&intermediates,massivehealth&biomaterials,andanimalhealth.Withcurrentstrategicprioritiesestablishedonacceleratingglobalmarketexpansionanddeeperintegrationintotheglobalpharmaceuticalsupplychain,theCompanyhasachievedpositiveprogressindevelopingmajorcustomerpartnershipsacrossdomesticandinternationalmarkets.Throughyearsofexplorationandpractice,theCompanyhasforgedachallengingyetrewardingpathforgrowth.Duringthereportingperiod,allbusinessunitsmaintainedrapidgrowth,demonstratingasustainedupwardtrendinoverallsalesandachievingatotalsalesrevenueofRMB368million,up29%yearonyear.FourmajorfieldsoffeaturedAPIs&intermediates,xRNA,massivehealth&biomaterials,andanimalhealthwitnessedgrowthof23%,37%,21%and100%,respectively.Majoraccomplishmentsacrossallfieldsareasfollows:

Globalmarketexpansionremainsacoremissionfortheindustrialmicrobiologysegment.ForthefeaturedAPIs&intermediatesfieldthatintegratestraditionalandinnovativeoperations,theproductportfolioforADCtoxininnovationbusinesshasnowbeenestablished,withallcoretoxinvariantshavingcompletedU.S.DMFregistrations.Moreover,multipleADCsmall-moleculeCDMOprojectshavebeensecured,offeringglobalcustomersend-to-endservicesspanningfromearly-stageR&Dtoclinical-phaseproductdevelopmentandregulatoryregistrationsubmissions,aswellasastablesupplyoftoxinproductsforclinicalandcommercialstages.Thepolypeptidebusinesshascompletedanoveralldeploymentandkeptactivelyexpandingintotheinternationalmarket,withanticipatedgradualreleaseofoverseasorderpotential.Additionally,thedeploymentofhigh-potencyAPIproductsofmicrobialorigin(includinganti-tumor,anti-parasitecompounds)hasbeensubstantiallycompleted.xRNA:PerfectmRNAhasestablishedfullcapabilitiestoundertakemRNA-relatedCDMObusinesses.IthassuccessfullydevelopeddozensofenzymaticandchemicalrawmaterialsformRNAvaccinesynthesis,andbuiltanintegratedplatformthatencompasseshigh-densityfermentation,plasmidpreparation,mRNAdrugsubstanceproduction,andLNPformulations,providingcustomerswithend-to-endsolutionsthatspanR&D,production,andqualitycontrol,andithasalreadysignedCDMOcontractsforplasmidDNAtherapeutics.Meanwhile,WuhuHuarenhasenhanceditsfull-chaindevelopmentandproductioncapabilitiesforupstreamrawmaterialsforoligonucleotidemedicinesandinvitrodiagnostics(IVD),deliveringdifferentiatedservicesandrapidresponsestoservegloballyrenownedpharmaceuticalenterprises,CDMOs,andIVDcompanies.Throughsustainedinvestmentsininnovation,WuhuHuarenhasendeavoredtocontinuouslyenhanceitsR&Dcapabilitiesinrawmaterialsfornucleicacidmedicines,deliverysystems,andcustomizedbusiness.Todate,withISO9001certificationandstrictadherencetotheICHinternationalguidelinesandGMPstandards,WuhuHuarenhassecuredtenU.S.DMFregistrations.Thesecapabilitieshaveenableditspartnershipswithmultiplemultinationalpharmaceuticalenterprises,thusdrivingrobustbusinessgrowth.

Massivehealth&biomaterials:Focusedonthreecorebusinesses—functionalfoodingredients,personalcarerawmaterials,andbiomaterials,MagicHealthhaslaunchedsixproductsinthefirsthalfof2025andhasmaintainedtheeffectiveoperationofmultiplefoodqualitymanagementsystems,includingISO9001,KOSHER,GMP,andFSSC22000.Intermsofcustomerdevelopmentandexpansionofnewapplication,itestablishedcooperationwithleadinginternationalhealthsupplementcustomersandachievedsignificantprogressinexploringnewsegmentsofthedomesticdairyindustry.ShengjiMaterialfosteredanadvancedmedical-gradefunctionalmaterialsmatrixbasedonitsself-developedbiodegradableproducts.Byleveragingitsuniqueplatformforpreparationtechnologiesi

nnovation,itproactivelydevelopedbiologicalmedicineandaestheticmedicineCMCR&Dbusinessescloselyassociatedwithitsmaterialsexpertisethatboastglobalcompetitiveness.Thismodelfacilitatesjointincubationofinnovativeproductstogetherwithinternationalpartners.Currently,ShengjiMaterialhasestablishedcollaborativerelationshipswithleadingoverseasuniversitiesanddomesticpharmaceuticalenterprisesinthefieldsofnoveleco-friendlymaterialsandcomplexinjectables,coveringbothmaterialsupplyanddownstreamapplicationresearch.

Animalhealth:NanjingNongdaAnimalPharmaceutical,theCompany’sholdingsubsidiary,hasbeenactivelybuildingaprofessionalbrandsystemforthepethealthcareindustry,developinginnovativesolutionsacrossthreespecializedsegmentsinanimalhealth:perioperativecare,geriatricdiseasemanagement,andnutritionalhealthservices.Leveragingitsexclusivelycommercializedcentralanalgesicmedicineforpets,ButorphanolTartrateInjection(tradename:Baoshining

?

),NanjingNongdaAnimalPharmaceuticalhasimplementedastrategycenteredonexpandinghospitalcoverage,buildingpartnershipswithKOLsatchainhospitals,andestablishingflagshiphospitalsinmajorcities.AsofJune2025,theseeffortshadsecuredcoverageinover7,000pethospitalsthroughoutChina,effectivelydrivingthepromotionandsalesofotherspecializedproductswhilefosteringandstrengtheningitsfieldprofessionalteamsforpetcare.Concurrently,NanjingNongdaAnimalPharmaceuticalhasvigorouslystrengtheneditsinnovativepetproductpipelinesthroughinternalR&Dandexternalpartnerships,fosteringrobustproductportfoliosinperioperativecareanddermatologytreatments.Inthefirsthalfof2025,twoproductswereapproved,withfourmoreunderfinalreview.Additionally,NanjingNongdaAnimalPharmaceuticalhasprioritizedonlinechanneldevelopmentbylaunchingthepete-commercebrand“Mengdi”onTmall,TikTok,andothermainstreame-commerceplatforms.Thisinitiativedirectlyaddressedtheevolvingconsumerneedswhilecontributingtotheentireindustry'sdevelopment.Strategicallyadvancingaquaticanimalhealthasahigh-potentialsector,ithasbeencommittedtoimprovingwaterenvironmentsandenhancingaquaticnutritionthroughteamrestructuring,productinnovation,regionalexpansion,anddirectsalesmodeltrials.TheseeffortsenableNanjingNongdaAnimalPharmaceuticaltoprovideaquacultureoperatorswithcomprehensivesolutionsandservices,includinganimalhealthproducts,pathogendetectionservices,andwaterqualitytesting.

5.ESGoftheCompanyduringthereportingperiodWithregardtoESG,theCompanymaintainedanunwaveringcommitmenttosustainabledevelopment.AnESGCommitteehasbeenestablishedundertheBoardofDirectorstooverseeESG-relatedmatters.TheCompanyintegratesthecoreESGprinciplesintocorporatedevelopmentstrategyanddailyoperationsmanagement,guidingandinnovatingbusinesspracticeswithascience-basedapproachtosocialresponsibility.Itupholdstheideaofgreenmanufacturing,actively

supportsChina’s“carbonneutralityandcarbonpeaking”goals,operatesinstrictcompliancewithlawsandregulationswithintegrity,andactivelyfulfillsitssocialresponsibilities.Duringthereportingperiod,theCompany’sexcellentESGgovernancecapabilitiesledtoanupgradeofitsWINDESGratingfromAtoAA.Inaddition,theCompanycurrentlyholdsanMSCIESGratingofAandaShenzhenStockExchangeCSIESGratingofAA.TheCompanywasalsorecognizedwithhonorssuchasthe“ESGBestPracticeAward2024”bytheNewFortuneandthe“2025BiopharmaceuticalSustainableValueLeadershipAward”byHealthcareExecutive.

6.AwardsduringthereportingperiodDuringthereportingperiod,theCompany’scomprehensivecompetitivestrength,efficientoperationandgovernance,andvaluecreationcapabilitiesgainedsignificantmarketrecognition,asevidencedbyanumberofprestigiousawardsandhonors.TheCompanywaslistedinFortuneChina500forthe16

th

time,andwasselectedasoneoftheTop50GlobalPharmaceuticalCompaniesbyPharmaceuticalExecutiveintheUnitedStates.TheCompanywasalsorecognizedasthe“BestListedCompany2024”bytheNewFortune.Intermsofinvestorrelationsmanagement,itreceivedthe“InvestorRelationsManagementAward”atthe16

th

TianmaAwardsandwasnamedamongthe“Top10ZhejiangA-shareListedCompaniesMostFavoredbyInstitutionalInvestors”bytheSecuritiesTimes.(III)R&D

1.R&DoverviewDuringthereportingperiod,adheringtothe“ScientificResearch-basedandPatient-centered”corporatephilosophy,theCompanyhasdeepeneditsexpertiseinthefieldsofendocrinology,autoimmunityandoncology.ThroughsustainedincreasesintheR&DinvestmentandexpansionofinnovativedrugR&Dpipelines,ithasstrengthenedtheinnovativeR&Decosystemandtechnologicalplatforms,whileacceleratingclinicaltrials,withmultiplesignificantmilestoneachievementsmade.AsofthedateoftheReport,theCompany'sinnovativedrugR&Dcenterisadvancingover80innovativedrugpipelines.Duringthereportingperiod,theCompany'sR&Dinvestmentinthepharmaceuticalindustry(excludingequityinvestment)reachedRMB1.484billion,ayear-on-yearincreaseof33.75%,ofwhichdirectR&DexpenditurewasRMB1.174billion,ayear-on-yearincreaseof54.21%,accountingfor15.97%ofpharmaceuticalindustryrevenue.

Figure:Pipelinediagramofmaininnovativeproductsasofthedateofthereport

2.SignificantR&DprogressOncologyInMarch2025,thesupplementalapplicationtoconverttheconditionalapprovalofMirvetuximabSoravtansineInjection(Elahere

?

,R&Dcode:IMGN853,HDM2002)toregularapprovalwasaccepted.

TheNDAfortheCompany'sclass1newdrug,MefatinibTablets,asafirst-linetreatmentforlocallyadvancedormetastaticnon-smallcelllungcancer(NSCLC)patientswithEGFRexon21L858Rsubstitutionmutation,completedthesubmissionofsupplementarymaterialsinJune2025andiscurrentlyunderreview.TheCompany'sself-developeddifferentiatedinnovativeADCdrugpipelinetargetingnoveltargetshasestablishedagradientlayout.CurrentkeyadvancingprojectsincludeHDM2005,HDM2020,HDM2012,HDM2017,andHDM2024.Amongthem,HDM2005,anADCtargetingROR1,receivedNMPAapprovalinApril2025foritsINDapplicationincombinationwithrituximab,cyclophosphamide,doxorubicin(orepirubicin),andprednisone(R-CHP)inthetreatmentofpreviouslyuntreateddiffuselargeB-celllymphoma(DLBCL).InFebruary2025,HDM2005wasgrantedOrphanDrugDesignationbytheU.S.FDAformantlecelllymphoma(MCL).HDM2005ispositionedattheforefrontofglobalclinicaldevelopmentforROR1ADCsandiscurrentlyconductingthreeclinicaltrialsinChina:aPhaseItrialevaluatingHDM2005monotherapyforadvancedhematologicmalignancies(MCL,DLBCL,classicalHodgkinlymphoma,cHL),whichhascompletedfourdose-escalationcohorts,isundergoingthefifth,andhassimultaneouslyenteredtheexpansionphasefortwodoselevels;aPhaseItrialevaluatingHDM2005monotherapyforadvancedsolidtumors,withthefirstsubjectdosedinMay2025anddoseescalationongoing;andaPhaseIb/IItrialevaluatingHDM2005combinationtherapyforDLBCLpatients,whichhasbeeninitiatedbytheleadsite.Additionally,theFGFR2b-targetingHDM2020andMUC17-targetingHDM2012haveachievedbreakthroughprogress,withINDapprovalsobtainedinbothChinaandtheUnitedStates.InAugust2025,thePhaseItrialofHDM2012foradvancedsolidtumorsdoseditsfirstsubject,makingittheworld’sfirstMUC17ADCtoenterclinicaldevelopment.Inthesamemonth,thePhaseItrialofHDM2020foradvancedsolidtumorsalsosuccessfullydoseditsfirstsubject.TheINDapplicationforHDM2017wassubmittedinChinainJuly2025,andHDM2024isprogressingthroughpreclinicaldevelopment,withanINDapplicationplannedforthefourthquarterof2025.TheINDapplicationforthesmall-moleculeanti-tumordrugHPK-1PROTAC(hematopoieticprogenitorkinase1proteolysistargetingchimera),HDM2006tablets,wasapprovedbytheFDAinJanuary2025,withanindicationforadvancedmalignanttumors.Additionally,HDM2006tablets

arecurrentlyundergoingPhaseIclinicalstudiesinChinaforadvancedsolidtumors.

ForDR30206,aproprietaryPD-L1/VEGF/TGF-βtri-specificantibodyfusionproteinwhollyownedanddevelopedbytheCompany’ssubsidiaryDoerBiologics,iscurrentlyleadingglobalR&Dprogressforthesametarget.InApril2025,thePhaseIbclinicaltrialofDR30206forfirst-linetreatmentofNSCLCsuccessfullydoseditsfirstsubject.Furthermore,theclinicaltrialapplicationforDR30206incombinationwithstandardchemotherapyforpatientswithadvancedormetastaticgastrointestinaltumorswasapprovedinApril2025,andenrollmenthasnowcommencedforthePhaseIb/IIastudyofthiscombinationtherapy.TheCompany’sexclusivelycommercializedautologousCD19-targetedCAR-Tcandidate,IM19,isunderdevelopmentinmainlandChina.InAugust2025,itreceivedasupplementaryinformationnotice,andtheCompanyiscurrentlypreparingtherequiredtechnicaldocumentation.ThemarketingauthorizationapplicationisexpectedtobeapprovedinQ12026orearlier.

Endocrinology

Theoralsmall-moleculeGLP-1receptoragonistHDM1002(conveglipron)hasnowcompletedenrollmentofallsubjectsforitsPhaseIIIclinicaltrialinChinafortheweightmanagementindication.PreviouslyreleasedPhaseIItrialresultsfortheweightmanagementindicationdemonstratedthatHDM1002tabletseffectivelyreducedbodyweightandimprovedmetabolicparameters,withgoodsafetyandtolerability.After12weeksofadministration,thepercentagechangesinbodyweightfrombaselinewere-6.08%and-6.83%forthe200mgBIDand400mgQDgroups,respectively.Sensitivityanalysisshowedpercentagechangesof-7.01%and-

8.46%,respectively,consistentwiththeprimaryanalysisresultsandwithoutevidenceofaplateaueffect.Additionally,thePhaseIIIclinicaltrialfortreatment-naivepatientswithtype2diabeteshasenrolleditsfirstsubject,whileanotherPhaseIIItrialforaseparatediabetesindicationhasreceivedapprovalfromtheCDEtoproceed.

TheHDM1005(poterepatide)injection,aGLP-1R/GIPRlong-actingpolypeptidedual-targetagonist,iscurrentlyundergoingaPhaseIIclinicaltrialfortheweightmanagementindication,withfullsubjectenrollmentcompletedinApril2025.ItisexpectedtoadvancetoPhaseIIIclinicaltrialinQ42025.Additionally,thePhaseIIclinicaltrialforthediabetesindicationcompletedenrollmentofallsubjectsinJuly2025.Duringthereportingperiod,theINDapplicationsfornewindicationsofHDM1005InjectionweresuccessivelyapprovedbytheNMPA,forthetreatmentofobstructivesleepapnea(OSA)inadultpatientswithobesityoroverweightandheartfailurewithpreservedejectionfraction(HFpEF)inadultpatientswithobesityoroverweight.

DR10624Injection,aFGF21R/GCGR/GLP-1Rtri-specificagonistbeingdevelopedbytheCompany’sholdingsubsidiaryDoerBiologics,hassuccessfullycompletedaPhaseIIclinicaltrial

forseverehypertriglyceridemia,withpositivetop-lineresultsafterunblinding.Previously,theresultsofaPhaseIb/IIaclinicaltrialofDR10624forobesitywithhypertriglyceridemia,presentedbyDoerBiologicsattheEASLCongress2025,showedareductioninliverfatbyupto89%.Furthermore,aPhaseIIclinicaltrialformetabolicdysfunction-associatedsteatoticliverdiseasewithahighriskofliverfibrosisandmetaboliccombinedalcohol-associatedsteatoticliverdiseasecompletedthefirstsubjectenrollmentinApril2025.TheINDapplicationforHDM1010tablets(afixed-doseoralcombinationformulationofHDM1002)forthetreatmentoftype2diabeteswasapprovedbytheU.S.FDAinJune2025,andclinicaltrialpreparationsarecurrentlyunderway.TheNDAforSemaglutideInjectionforthediabetesindicationwassubmittedandacceptedinMarch2025.Fortheweightmanagementindication,allsubjectsinthePhaseIIIclinicaltrialwereenrolledinFebruary2025,withtop-lineresultsexpectedinQ42025.

TheNDAforInsulinDegludecInjectionwassubmittedandacceptedinFebruary2025;theon-siteinspectionhasbeencompleted,andtheapplicationiscurrentlyundertechnicalreview.InsulinDegludecandInsulinAspartInjectionhascompletedenrollmentofallsubjectsinitsPhaseIIIclinicaltrialinDecember2024,withtop-lineresultsanticipatedinSeptember2025.

Autoimmunity

ThesupplementalapplicationofHDM3001(QX001S),abiosimilarofUstekinumabdevelopedincollaborationbetweentheCompanyandQyunsTherapeutics,forthenewpediatricplaquepsoriasisindication,wasapprovedinMarch2025.Additionally,themarketingauthorizationapplicationandsupplementalapplicationforCrohn'sdiseasewereacceptedforreviewinFebruary2025.

TheinnovativedrugHDM3016(QX005N),developedincollaborationbetweentheCompanyandQyunsTherapeutics,iscurrentlyundergoingPhaseIIIclinicaltrialsinChinafortwoindications:prurigonodularisandatopicdermatitis.EnrollmentforthePhaseIIIstudyinprurigonodulariswascompletedinMarch2025,withtop-lineresultsexpectedinQ42025.EnrollmentforthePhaseIIIstudyinatopicdermatitiswillbecompletedsoon.

HDM3014(RoflumilastCream),developedincollaborationbetweentheCompanyandArcutis,hasachievedpositivetop-lineresultsinPhaseIIIclinicaltrialsinChinaforbothplaquepsoriasisandatopicdermatitis.TheNDAsubmissionsforbothindicationsareplannedforQ42025.

RuxolitinibGel(HDM3010),independentlydevelopedbytheCompany,hascompletedenrollmentinitsPhaseI/IIclinicaltrialforprurigonodularis.Inaddition,aPhaseIIIclinicaltrialinvitiligoiscurrentlyongoing.

TheMC2-01Cream,developedincollaborationbetweentheCompanyandMC2Therapeutics,

receivedapprovalinJuly2025toinitiateaPhaseIIIclinicaltrialinChinaforplaquepsoriasis.

TheCompany’sfirst-in-classbispecificantibodycandidateHDM3018injectionisunderIND-enablingdevelopment,withINDfilingsinbothChinaandtheU.S.expectedbyQ32026.Theplannedindicationsincludeinflammatoryboweldisease(IBD),plaquepsoriasis(PsO),andpsoriaticarthritis(PsA).TheCompany’sfirst-in-classbispecificantibodycandidateHDM4002injectionisalsounderIND-enablingdevelopment,withINDapplicationsinChinaandtheU.S.targetedbyQ32026.TheplannedindicationisIgAnephropathy.

Othersegments

TheTransdermalGlomerularFiltrationRateSystem,aClassIIIinnovativemedicaldevice,wasapprovedbytheNMPAinFebruary2025.ThemarketingauthorizationapplicationforRelmapirazinInjection(MB-102)usedcooperativelywiththedevicewasacceptedbytheNMPAinJanuary2024,withapprovalexpectedinQ42025.Additionally,inJanuary2025,MediBeacon

?

TGFR(includingtheTransdermalGlomerularFiltrationRateSystemandRelmapirazinInjection)wasapprovedbytheU.S.FDA.

TheNDAforRanibizumabInjectionwassubmittedandacceptedinMay2025.

3.OthertasksregardinginnovationR&D

Buildinginnovationecosystemsandunlockingsource-drivenimpetusforinnovation

Centeredonthedualstrategiesofinnovationtransformationandinternationalization,theCompany'snewinnovativedrugR&DmechanismhasdemonstratedhugepotentialinindependentR&D.Focusingonthefieldsofendocrinology,autoimmunity,andoncology,theCompanycontinuedtoaccelerateitsdifferentiatedinnovationbyidentifyingpilotfrontiertargetsthroughtargetdiscoveryplatformincombinationwithAI-drivendrugdesign(AIDD).Since2023,theCompanyhaslaunchedover20earlyexploratoryandprospectiveprojects,andhassuccessivelyincubatedthefirst-in-class(FIC)orbest-in-class(BIC)innovativedrugsofthesametype.

Facilitatinginnovationandtransformation,advancingclinicaldevelopment

Guidedbythecorephilosophyof"EfficiencyFirst,QualityForemost,"theclinicalR&Dteamhasestablishedafull-cycleinnovationsystemencompassingclinicalstudydesign,operationalmanagement,biostatisticalanalysis,regulatoryregistration,andpharmacovigilance.Thissystemisdesignedtoovercomebottlenecksindifferentiatedinnovationanddrivediversifiedbreakthroughsinclinicaldevelopment.Todate,theR&Dteamhasledandsupportedover40clinicalprojectsfrommultipledimensions,includingclinicalstudy,operations,biometrics,regulatoryaffairs,andpharmacovigilance.

ApplyingAItechnologiesinmedicineR&D

Toaddresscorechallengesofhighcosts,lengthytimelines,andlowsuccessratesinnewdrugR&D,theCompanyhasestablishedanAI-drivendrugdesignplatformintegratingmultiplecutting-edgetechnologies.Thisplatformcombineskeymodulessuchastargetproteinanddrugmoleculestructureprediction,high-throughputvirtualscreening,AI-drivenmoleculargeneration,moleculardocking,deeplearning-basedbindingaffinityprediction,freeenergyperturbation(FEP)calculations,ADMETpropertyevaluation,andpharmacokineticmodeling.Itscoreinnovationliesinthedeepintegrationanddynamicfeedbackmechanismsacrossfunctionalmodules,which,whencoupledwiththecontinuousiterativeoptimizationofexperimentaldata,forma“dry-wetlab”closed-loopsystem.Thisframeworksignificantlyenhancespredictionaccuracyanddruggabilityassessmentefficiency.

Currently,theplatformiscontinuouslyextendingintoallstagesofdrugR&D,coveringtargetdiscovery,leadcompoundscreening,preclinicalevaluation,andclinicaldevelopment.Buildingonopen-sourcetoolssuchasBoltz-2andProteinMPNN,theAIDDteamfocusesontheintelligentdesignandsequenceoptimizationofmacromoleculardrugs,includingantibodies,proteintherapeutics,andantibody-drugconjugates(ADCs),whilealsoexploringnovelmultimodaldata-drivenapproachesforstructurepredictionandconformationalsampling.TheteamalsoplanstocollaboratewithuniversitiesandresearchinstitutionstojointlyestablishanAI-driventargetdiscoverysystem.Atthepreclinicalandclinicalstages,multipleapplicationsoflargelanguagemodels(LLMs)havealreadybeenimplemented,significantlyenhancingR&Doperationalefficiencyanddataprocessingquality.TheCompanyisacceleratingtheestablishmentofanend-to-endAI-driveninnovativedrugR&Dsystem,spanningtargetidentification,drugdesign,preclinicalevaluation,andclinicaldevelopment,therebyenablingamoreefficient,intelligent,andlower-riskmodelforpharmaceuticalinnovation.

Postdoctoralresearchworkstation

InFebruary2021,ZhongmeiHuadong,awholly-ownedsubsidiaryoftheCompany,wasapprovedtosetupapostdoctoralresearchworkstationinZhejiang,whichwasregisteredasanationalpostdoctoralresearchworkstationinSeptember2022.Todate,theworkstationhasrecruitedatotalof23postdoctoralresearchers.Amongthem,14arecurrentlyactiveand9havecompletedtheirprograms.UnderjointcultivationprojectswithpostdoctoralprogramsatZhejiangUniversity,ShanghaiInstituteofMateriaMedicaofChineseAcademyofSciences,ZhejiangUniversityofTechnology,andotherinstitutions,postdocsattheCompany’spostdoctoralresearchworkstationaredevotedtofrontierandtranslationalstudiesonR&Dofinnovativedrugs,incombinationwiththeCompany’sdevelopmentstrategiesandproductpipelines.

Otherinnovativeachievements

1)PatentapplicationsTheCompany’sglobalR&Dcenterforinnovativedrugsplaceshighimportanceontheprotectionofintellectualpropertyrights,focusingonthemanagementofintellectualpropertythroughoutthedruglifecycleandtheformulationofpatentstrategiestoenhancethecomprehensivecompetitivenessofitsproducts.Thecenterhasfiledover120patentapplicationsacrossvariousinnovationdomainsoverthepastfiveyearssinceitsinception,with15patentsgrantedtodate.Sinceearly2025,thecenterhassecured5patentsgranteddomesticallyandinternationally,filed19PCTapplicationsenteringnationalphases,andsubmittednumerouspriorityapplicationscoveringnewtechnologyareas.Amongthem,multiplekeyinternationalpatentsarenowunderprotectioninoverfiftycountriesandregions.

2)AcademicpublicationsFrom2025todate,theCompany’sinnovationteamshavesuccessivelypublished12papersinjournalsand/oratconferencesinoncology,endocrinology/metabolism,andautoimmunitysegments.Specifically:thePhaseIclinicalresultsoftheGLP-1/GIPdual-targetlong-actingagonistHDM1005,selectedfororalpresentationat2025ADA;thePhaseIIIresultsofsemaglutideandthePhaseIbresultsofHDM1002,acceptedasthePOSTERat2025ADA;preclinicalresultsofHDM2006,HDM2022,HDM2012,HDM2017,andHDM2020,selectedforPOSTERsharingat2025AACR;ADCpipelinestudies(includingHDM2020,HDM2012,andHDM2017),featuredinbothoralandPOSTERsessionsat2025WorldADCAsia;thepreclinicalresultsofpan-KRASantitumordegraderHDM2025,acceptedasthePOSTERof2025ASCO;andnonclinicalandclinicalresultsofDR10624,afirst-in-classFc-fusionproteindrugwithtripleagonistactivitytargetingGLP-1,GCG,andFGFRIc/KlothoB(FGF21R)receptorsdevelopedbytheCompany’swholly-ownedsubsidiaryDoerBiologics,presentedasthePOSTERof2025EASL,withtheclinicaldatafurtherrecognizedasaLate-Breaker.

TheCompanyhassuccessivelygarneredrecognitionwithintheglobalacademiccommunityforitsindependentR&Dachievements.Since2022,atotalof37groundbreakinginnovativeresearchachievementshavebeenpublishedinauthoritativejournalsand/oratacademicconferences,vividlyvalidatingthesustainedenhancementofitsindependentinnovationcapabilitiesandmarkingasystemicbreakthroughinitsinnovation-driventransformationstrategy.

3)Governmentsubsidies

Todate,theCompany’sglobalR&Dcenterforinnovativedrugshasobtainedapprovalsfromthegovernmentfor21projects,withthecertifiedsubsidiesofnearlyRMB70million.In2024,theCompanywasrecognizedasa“PioneeringInnovativeYouthTeaminHangzhou”.ThepreclinicalstudyofHDM1002receivedfundingunderthe“High-QualityDevelopmentSpecialPrograminthe

Bio-pharmaceuticalIndustryinHangzhou”,whileHDM4002wassupportedbythe"ZhongmeiHuadongNationalEnterpriseTechnologyCenterCapacityBuilding"in2025.Additionally,theCompanywasapprovedtoestablishthe“ZhejiangProvincialKeyLaboratoryforIntelligentInnovationofNewMedicinesforMetabolicDiseases”in2024,withtheprovincialkeylaboratorycommencingfulloperationin2025.

4.R&DprogressofmajorgenericdrugsTheCompanyfurtherclarifiedthefocusedandprioritizedvarietiesbyregularlyorganizingdynamicevaluationandanalysisofexistinggenericdrugsunderdevelopment.AsofthedateoftheReport,theCompany'sSirolimusGel,MycophenolateMofetilforSuspension,IbrutinibCapsules,andVonoprazanFumarateTabletswereapprovedformarketing.

5.ProgressininternationalregistrationTheCompanyhasactivelypursuedinternationalregistrationefforts.AsofthedateoftheReport,themainprogressisasfollows:

6.ProgressinconsistencyevaluationAsofthedateoftheReport,theCompany'ssubsidiary,ShaanxiJiuzhouPharmaceuticalCo.,Ltd.,receivedtheapprovalnoticeforthesupplementalapplicationoftheconsistencyevaluationforParacetamolandDihydrocodeineTartrateTablets.

7.ProgressinregistrationandlaunchingofaestheticmedicineproductsinChina

8.PatentprogressInrecentyears,theCompanyhasplacedgreatemphasisontheprotectionofintellectualpropertyrightsandtheapplicationofresearchoutcomes,withboththenumberofpatentapplicationsandgrantssteadilyincreasing.TheCompanyhasfiledatotalofover1700patentapplicationsdomesticallyandinternationallyovertheyears,includingmorethan550authorizedinventionpatents.Itswholly-ownedsubsidiary,HangzhouZhongmeiHuadongPharmaceuticalCo.,Ltd.,isanationalintellectualpropertydemonstrationenterprise.InNovember2014,itpassedtheexternalauditbyZhongzhi(Beijing)CertificationCo.,Ltd.,becomingoneofthefirst147companiesthatpassedthestandardsimplementationcertificationandsuccessfullypassedthesupervisionandexaminationoftheenterpriseintellectualpropertymanagementsysteminOctober2024.

Duringthereportingperiod,theCompany’spatentapplicationsandrenewalsprogressedsmoothly.Atotalof169patentapplicationsweresubmitted,including142forinventions.Additionally,33patentsweregranted.

Note:Thedataintheabovetablerepresentthestatisticalpatentinformationofthemainsubsidiariesengagedinthepharmaceuticalindustry,industrialmicrobiologyandaestheticmedicinewithintheCompany’sconsolidatedstatements.II.Analysisofcorecompetitiveness

1.OpeninnovativedrugR&Dsystemandcontinuouslyimprovedinnovationability

TheCompanyplacesastrongemphasisoninnovativeR&D,adheringtothephilosophyofbeing“ScientificResearch-basedandPatient-centered”,andtaking“clinicalvalue,pharmacoeconomicvalue,andcommercialvalue”asguidingprinciples.Itmaintainsaconsistently

highlevelofR&Dinvestment.TheCompanyhasestablishedaglobalnewdrugR&Dcenter,responsibleforformulatingstrategiesforindependentinnovativeproducts,managingpipelinelayouts,andoverseeingclinicalresearchanddevelopment.Overtheyearsofdevelopment,theCompanyhasbuiltarelativelycompleteindependentdrugR&Dsystem,coveringtheentireprocessfromdrugdiscovery,pharmaceuticalresearch,preclinicalstudies,andclinicalresearchtoindustrialization.

Focusingonthethreecoretherapeuticfieldsofoncology,endocrinologyandautoimmunity,theCompanykeepsdevelopingandhasfostereddifferentiatedinnovativeproductpipelinesthatcoverthefullR&DcycleviaindependentR&D,externalcooperation,license-in,etc.Allthesemeritseffectivelyempowerthecontinuousinitiationandlaunchingofinnovativeproducts,offeringimpetusesforthemedium-andlong-termdevelopment.TheCompanyhascontinuouslyleveledupitsindependentR&Dandinnovationcapabilitieswithitsinnovativedrugpipelinesnowcoveringover80items,positioningitwithinthetoptierofthepharmaceuticalindustryinChina.

2.Diverseproductpipelinesforspecializedandchronicdiseases,andfeaturedlayoutinthreecoretherapeuticfields

Focusingonspecializedmedicines,medicinesforchronicdiseases,aswellasspecialmedicinesforyears,theCompanyhasfosteredgoodbrandeffectandlaidastrongmarketfoundationinsuchfieldsaschronicnephrosis,autoimmunity,endocrinology,oncology,digestivesystemandcardiovasculardiseases,continuouslykeepingintheforefrontofsimilarproductsinChinaintermsofmarketshare.Meanwhile,theCompanyhassuccessfullylaunchedfirst-in-classdrugsinthreecoretherapeuticfields—oncology,endocrinology,andautoimmunity—andhasdevelopedthreefeaturedproductmatrices:ADC,GLP-1,andexternalpreparations,formingdifferentiatedcompetitiveadvantages.

Withovertwodecadesoffocusondiabetestherapeutics,theCompanyhascomprehensivelylaidoutproductpipelinesofinnovativeanddifferentiatedgenericdrugsforclinicalmainstreamtherapeutictargetsofdiabetes,withover20typesofproductsunderdevelopmentorincommercialproduction.Now,theCompanyhasfosteredagoodbrandeffectandlaidastrongmarketfoundation.Theexistingandsubsequently-upgradedproductscovermultiplemainstreamtargets,includingα-glucosidaseinhibitors,DPP-4inhibitors,SGLT-2inhibitors,GLP-1receptorsingle-targetandlong-actingmulti-targetagonists,aswellasinsulinanditsanalogs.CenteredontheGLP-1target,theCompanyhasdevelopedacomprehensiveanddifferentiatedproductpipelinethatcombineslong-actingandmulti-targetglobalinnovativedrugsandbiosimilars,includingoraltabletsandinjections.

Inthefieldofoncology,theCompanyfocusedoncutting-edgetherapiessuchasADCsandCAR-T,continuouslystrengtheningitsproductpipeline.Additionally,theCompanyhasinvestedin,heldcontrollingstakesin,andincubatedseveraldomesticbiotechcompanieswithleadingtechnologies,andhasestablishedproductandequitycollaborationswithHeidelbergPharmainGermany(asitssecondlargestshareholder).ThroughtheintroductionofHeidelberg’sproprietaryATAC(antibody–amanitinconjugates)technologyplatform,theCompanyhasbuiltauniqueADC

globalR&Decosystemandisactivelydevelopingaworld-classADCinnovationplatformwithin-housecapabilities.TheseeffortsarededicatedtoadvancingdifferentiatedADCdrugsanddeliveringbetter,moreadvancedtreatmentoptionsforcancerpatients.

Inthefieldofautoimmunity,theCompany'smarketedandpipelineproductscoverawiderangeofindications,includingtransplantimmunology,psoriasis,atopicdermatitis,rheumatoidarthritis,seborrheicdermatitis,prurigonodularis,vitiligo,recurrentpericarditis,andcryopyrin-associatedperiodicsyndromes.Theseindicationsspandermatology,rheumatology,cardiovascular,respiratory,andtransplant-relateddiseases,makingtheCompanyoneofthemostcomprehensivepharmaceuticalenterprisesinChinaintermsofcoverageintheautoimmunediseasearea.Todate,theCompanyhasover20biologicandsmall-moleculeinnovativeproductsinthefieldofautoimmunity.Additionally,theCompany'sinnovativedrugR&Dcenterhasbeenfocusingonnewtargetsandbiologicalmechanisms,developingmultipleearly-stageprojectsforimmunediseases,

allofwhichareprogressingsmoothly.Withregardtoautoimmunity,theCompanystretcheditscoveragetoexternalpreparations,builtexternalpreparationR&Dplatforms,andsteadilyadvancedtheR&Dandinnovationofexternalandcomplicatedpreparations.Currently,theCompany'swholly-ownedsubsidiary,HuadongMedicine(Xi'an)BodyguardPharmaceuticalCo.,Ltd.,hasestablishedthreeproductionlinesforexternalpreparations.TheCompanynowhasasmanyastenproductsofexternalpreparationseitherunderdevelopmentorincommercialproduction.

3.China’sleadingprofessionalpharmaceuticalserviceteamandcompletecommercialformat

Inthepharmaceuticalindustrysegment,theCompanyhasfosteredaprofessionalpharmaceuticalserviceandmarketdevelopmentteam.Withafocusonclinicalvaluesandacademicpromotion,theteamadvancesamarketingmodethatintegratescomprehensivehospitals,primary-levelmedicalinstitutions,theretailsector,thethird-terminalmarket,andonlinechannels.Itssalesnetworknowcoversmorethan30provinces(autonomousregionsandmunicipalities)acrossChina,graduallyachievingmulti-channelandbroadcoverage,andformingstrongcompetitiveadvantages.

Inthepharmaceuticalbusiness,theCompanyhaslongbeendeeplyengagedintheZhejiang

market,withamatureandcomprehensivebusinessstructureandabroadproductportfolio,maintainingaleadingedgeinmarketaccessanddistributioncoverage.Ithasestablishedstrategicpartnershipswithover95%ofmainstreampharmaceuticalenterprisesbothdomesticallyandinternationally.Itssalesnetworkcoversall91districtsandcountiesacrossZhejiang,with100%penetrationintopublichospitals.TheCompanyalsocontinuestoexpanditscustomerbasetoincludehigh-valueretailpharmaciesandprivatemedicalinstitutions,withitsmarketshareconsistentlyrankingamongthetopinZhejiang.Inthemeantime,theCompanyhascontinuouslyenhanceditscorecompetenciesandestablishedsignificantcompetitiveadvantagesinstrategiccooperationwithleadinghospitals,policyandregulatoryaffairscoordination,servicesysteminnovation,andefficientorganizationaloperations.Activelyembracinghealthcarereformpoliciesandfurtherdeepeningpartnershipswithmajorclients,theCompanyhasmaintainedindustryleadershipinZhejianginareassuchaspharmaceuticalserviceinnovation,third-partycold-chainlogistics,andautomatedherbaldecoction.

4.Comprehensivehigh-endinternationalaestheticmedicineproductpipelineTheCompanyfocusesontheglobalhigh-endaestheticmedicinemarketandhasestablisheditswholly-ownedsubsidiary,SinclairintheUK,astheglobaloperatingplatformforitsaestheticmedicinebusiness.BackedbyaninternationalaestheticmedicineoperationandBDteam,theCompanyhasinrecentyearsacquiredenergy-baseddevicecompaniesHighTechandViora.Throughtheseacquisitions,ithassuccessivelyintroducedanumberofproducts,includingthePréimeDermaFacialmultifunctionalfacialskinmanagementplatform,theKiOmedseriesofchitosan-basedaestheticproducts,andtherecombinantbotulinumtoxintypeA(YY001).TheseeffortshavegraduallyimprovedandenrichedtheCompany’shigh-endaestheticmedicineportfolio.Currently,thecompanyhasachievedfullcoverageofthemid-to-high-endmarketsfornon-surgicalaestheticmedicineinjectionsandenergy-baseddevices.Ithasbuiltaportfolioof40internationalhigh-endproductsunderthe“micro-invasive+non-invasive”categories,ofwhich26havealreadybeenlaunchedindomesticandoverseasmarkets.Itsglobalpatentedproductportfoliospansmainstreamnon-operativeaestheticfields,includingfrownlinesimprovement,facialandbodyfilling,threadlifting,skinmanagement,bodyshaping,depilation,andintimaterejuvenation.Withthis,theCompanyhasformedacomprehensiveproductcluster,rankingamongthetopintheindustryintermsofproductnumberandcoveragebreadth,whilecontinuingtoexpanditsinternationalinfluence.Meanwhile,theCompanyhasachievedfullcoverageofthethreemajorinjectablecategories—regenerativeproducts,hyaluronicacid,andbotulinumtoxin—establishingamulti-dimensionalfull-faceaestheticsystemthatprovidesconsumerswithone-stopcomprehensivefacialaestheticsolutions.TheCompany'saestheticmedicinemarketingnetworkspansover80

countriesandregionsworldwide,supportedbyaprofessionalaestheticmedicinesalesteamofover600membersacrossbothdomesticandinternationalmarkets.

5.Outstandingandleadinginternationalcompetitivenessinindustrialmicrobiologysegment

TheCompanyhasbeendeeplyengagedinthefieldofindustrialmicrobiology,operatingthelargestfermentationmonomerplantsinZhejiangandpossessingindustry-leadingcapabilitiesinmicrobialdrugproduction.ItsadvancedR&Dcapacityspansallstagesofmicrobialengineeringtechnologies,includingstrainconstruction,metabolicregulation,enzymaticcatalysis,syntheticmodification,andseparationandpurification.Acompletemanufacturingsystemhasbeenestablished,coveringprojectR&D,pilot-scaletesting,commercialproduction,engineering,andutilitysupport.Atthesametime,theCompanyhasformedanR&DclustercenteredontheIndustrialMicrobiologyofZhongmeiHuadong,theHITInstituteofSyntheticBiology,HuidaBiotech,PerfectmRNAandShengjiMaterial.Inaddition,ithasbuiltsevenindustrialbaseslocatedinHangzhouXiangfuqiao,QiantangNewArea,JiangsuJoyangLaboratories,MagicHealth,AnhuiMeihua,WuhuHuaren,andNanjingNongdaAnimalPharmaceutical.Onthisbasis,theCompanyismakingeveryefforttoadvancetheintegrateddevelopmentof“production,researchandmarketing”inthefieldofindustrialmicrobiology.

FortheindustrialmicrobiologyteamoftheCompany,aninnovative,internationalizedteamcharacterizedbystrongcollaborationandhighefficiencyhasbeenbuilt.Itfeaturesacompositetalentstructurewithseasonedindustryexpertsatthecoreandanewgenerationofyoungresearchersasthebackbone,formingaspecializedoperatingsystemthatcombinesdeeptechnicalexpertisewithvibrantinnovation.IntermsofR&D,theCompany’sIndustrialMicrobiologyDivisionhasbeencommittedtoforminganefficientR&Dteamwithhigh-qualitytalentsasthecore.Todate,33%ofitsR&Dpersonnelhaveobtainedtheirmaster'sand/ordoctoraldegrees.Intheindustrialmicrobiologysegment,theCompanyhasinitiatedover460R&Dprojects,including266projectsforxRNArawmaterials,110projectsforfeaturedAPIs&intermediates,49projectsformassivehealth&biomaterials,and35projectsforanimalhealth.

6.Prudentandpragmaticoperationstyle,andstablereturnstoshareholders

Valuinginnovationinmanagement,theCompanyhasalwaysendeavoredtosatisfythedemandsformarketcompetitionbyimprovingthequalityofitsoperations.Asaresult,theCompanyhasachievedlong-termsteadydevelopmentthankstoitshigh-qualityproducts,excellentcommercializationcapability,compliantyetefficientmarketingservices,differentiatedmarketpositioning,innovativeR&Dlayout,andcompletetalentplanning.Sinceitwaslisted,theCompanyhasdistributeddividends24times,withacumulativeamountofRMB8.259billion,whichis33.04

timesthefundsraisedattheIPO(RMB250million).TheCompanyprovidesshareholderswithsteadyreturnsoninvestment.

III.Analysisofthemainbusiness

OverviewPleaserefertotherelevantcontentsof"I.MainbusinessoftheCompanyduringthereportingperiod".Year-on-yearchangesinkeyaccountingdata

Unit:RMB

SignificantchangesinthecompositionorsourcesoftheCompany'sprofitsduringthereportingperiod

□Applicable?NotapplicableTherewerenosignificantchangesinthecompositionorsourcesoftheCompany'sprofitsduringthereportingperiod.Compositionofoperatingrevenue

Unit:RMB

[Note]ThemedicalaestheticsbusinessinChinaincludesrevenuefromself-operatedaestheticmedicineproducts,revenuefromaestheticmedicineproductsdistributedbytheCompany'spharmaceuticalcommercialagency,andrevenuefromproprietaryOTCweight-lossproducts.Industries,products,regionsaccountingformorethan10%oftheCompany'soperatingrevenueoroperatingprofit?Applicable□Notapplicable

Unit:RMB

IfthestatisticalmethodoftheCompany’smainbusinessdatahasbeenadjustedduringthereportingperiod,theCompany’smainbusinessdataofthemostrecentperiodshouldbeadjustedaccordingtothemethodattheendofthereportingperiod

□Applicable?NotapplicableIV.Analysisofnon-mainbusiness

?Applicable□Notapplicable

Unit:RMB

V.Analysisofassetsandliabilities

1.Significantchangesinassetcomposition

Unit:RMB

2.Majoroverseasassets

?Applicable□Notapplicable

3.Assetsandliabilitiesmeasuredatfairvalue

?Applicable□Notapplicable

Unit:RMB

DescriptionofotherchangesOtherchangesareduetoexchangeratechangesWhetherthereisanysignificantchangeinthemeasurementattributesoftheCompany'smainassetsduringthereportingperiod

□Yes?No

4.Restrictionsonassetrightsasoftheendofthereportingperiod

Unit:RMB

VI.Analysisofinvestmentstatus

1.Overallsituation?Applicable□Notapplicable

2.Significantequityinvestmentsacquiredduringthereportingperiod

□Applicable?Notapplicable

3.Significantnon-equityinvestmentsinprogressduringthereportingperiod?Applicable□Notapplicable

Unit:RMB

4.Investmentinfinancialassets

(1)Investmentinsecurities?Applicable□Notapplicable

Unit:RMB

Note:(1)HuadongMedicineInvestmentHolding(HongKong)Limited,awholly-ownedsubsidiaryoftheCompany,purchased218,102SeriesC-2preferredsharesofRAPTTherapeutics,Inc.inatotalofUSD3millionin2018.APTTherapeutics,Inc.waslistedontheNASDAQExchangeonOctober30,2019(stockcode:RAPT).Asoftheendofthereportingperiod,HuadongMedicineInvestmentHolding(HongKong)Limitedholds4937sharesinRAPT,accountingforapproximately0.0298%ofthetotalsharesofRAPTTherapeutics,Inc.

(2)OnMarch11,2024,HuadongMedicineInvestmentHolding(HongKong)Limited,oneoftheCompany’swholly-ownedsubsidiaries,subscribedIPOsharesofQyunsTherapeuticsCo.,Ltd.attheStockExchangeofHongKongLimitedascornerstoneinvestorwiththeconsiderationofequivalentUSD5millionfromitsownfundsinHongKongdollar(excludingbrokeragecommission,relatedtransactionfeesandlevies).Fordetails,pleaserefertotheAnnouncementonSubscribingIPOSharesofQyunsTherapeuticsCo.,Ltd.inHongKongasCornerstoneInvestor(AnnouncementNo.:2024-013)disclosedbytheCompanyonCNINFO(http://www.cninfo.com.cn).OnMarch20,2024,QyunsTherapeuticswassuccessfullylistedonthemainboardoftheStockExchangeofHongKongwiththestockcodeof2509.HK.AsofthedateoftheReport,theCompanyholdsatotalof37,876,800sharesofQyunsTherapeuticsthroughitswholly-ownedsubsidiariesZhongmeiHuadongandHuadongMedicineInvestmentHolding(HongKong)Limited,accountingforapproximately17.06%ofthetotalsharesofQyunsTherapeutics.Amongthem,ZhongmeiHuadongholds35,900,000sharesandHuadongMedicineInvestmentholds1,976,800shares.TheCompanycalculatedthesharesheldbyZhongmeiHuadongandHuadongMedicineInvestmentinaconsolidatedmanner,whichwasreflectedinthelong-termequityinvestmentinthefinancialstatements.

(3)OnNovember28,2024,HangzhouJiuyuanGeneticBiopharmaceuticalCo.,Ltd.,oneoftheCompany’sshareholdingenterprises,wassuccessfullylistedonthemainboardoftheStockExchangeofHongKongwiththestockname(abbreviation)ofJiuyuanGeneandthestockcodeof2566.HK.AsofthedateoftheReport,theCompanyholdsatotalof42,120,453sharesofJiuyuanGenethroughitswholly-ownedsubsidiaryZhongmeiHuadong,accountingforapproximately17.16%ofthetotalsharesofJiuyuanGene.TheCompany’sshareholdinginJiuyuanGenewasreflectedinthelong-termequityinvestmentinthefinancialstatements.

(2)Investmentinderivatives

□Applicable?NotapplicableTheCompanyhadnoderivativeinvestmentduringthereportingperiod.

5.Useofraisedfunds

□Applicable?NotapplicableTheCompanyhadnouseofraisedfundsduringthereportingperiod.

VII.Saleofmajorassetsandequity

1.Saleofmajorassets

□Applicable?NotapplicableTheCompanydidnotsellmajorassetsduringthereportingperiod.

2.Saleofsignificantequity

□Applicable?Notapplicable

VIII.Analysisofmajorshareholdingcompanies

?Applicable□NotapplicableMajorsubsidiariesandshareholdingcompanieswithanimpactofmorethan10%ontheCompany'snetprofit

Unit:RMB

Acquisitionanddisposalofsubsidiariesduringthereportingperiod?Applicable□Notapplicable

Descriptionofmajorshareholdingcompanies

IX.StructuredentitiescontrolledbytheCompany

□Applicable?NotapplicableX.RisksfacedbytheCompanyandcountermeasures

1.RisksfromindustrypolicychangesandproductpricereductionsThepharmaceuticalindustryisastrategicsectorstronglysupportedandpromotedinChina,as

itiscloselyrelatedtopublichealthandlifesafety.Itisalsoahighlycompetitiveandinnovation-drivenindustrythatmustcontinuouslyadapttomarketchangesandpolicyadjustments.Inrecentyears,withtheongoingadvancementofpoliciessuchasvolume-basedprocurementandmedicalinsurancenegotiations,theindustryhasbeenmovingtowardgreaterstandardization,normalization,andsystematization.Inthemeantime,externalfactorssuchasgeopoliticsandmacroeconomicpolicieshaveintensifiedthevolatilityofcorporateoperationsandmarketconditions,posingchallengestotheproductioncostsandprofitabilityofthepharmaceuticalindustry.Inaddition,newdrugsfacetheriskofpricereductions.

Countermeasures:TheCompanyhasalwayspaidgreatattentiontonationalpoliciesandindustrialdevelopment,withcorrespondingadjustmentsmadewhennecessary.IntermsofR&D,theCompanyisincreasinginvestmenttofurtherenrichitsproductpipelineincoretherapeuticareas,therebyenhancingcompetitivenessandgrowthpotential.Atthesametime,theCompanyisactivelyexpandingintotheaestheticmedicineandindustrialmicrobiologysectorstofosternewgrowthdrivers.Inaddition,theCompanyiscommittedtostrengtheningitsresiliencethroughcostreduction,efficiencyimprovement,andleanmanagement.

2.RisksinnewdrugR&D

Inrecentyears,theCompanyhasactivelyenricheditsinnovativedrugpipelineandaccelerateditspresenceincoretherapeuticareasthroughindependentR&Dandlicensedintroductions.Generally,theR&Dcycleofinnovativedrugsislengthy.Frompre-clinicalresearchtoclinicaltrials,regulatoryregistration,productionapproval,andfinalcommercialization,theprocessissubjecttonumerousuncertainties,suchasnationalpolicies,marketdynamics,andregulatoryapprovals.Inaddition,theR&Dofinnovativedrugsrequireshigh-calibertalentwithadvancedacademicandprofessionalbackgrounds,andtherelatedlaborcostsandupfrontR&DexpendituresmayputpressureontheCompany’sshort-termoperationalperformance.Post-launch,marketpromotionandsalesramp-upalsotaketimeandmayfaceriskssuchaspricereductions,whichcouldresultinreturnsonR&Dinvestmentfallingshortofexpectations.

Countermeasures:TheCompanyfocusesonitscoretherapeuticfieldsandcontinuouslyenhancesitsin-houseR&Dcapabilities.Inrecentyears,ithasenrichedandoptimizeditsproductpipelinesthroughacombinationofindependentR&Dandlicensedintroductions,therebybuildingadistinctiveR&DecosystemforHuadongMedicine,withspecializedresearchmatricesinoncology,endocrinology,andautoimmunediseases.TheCompanywillcontinuetooptimizeitsinnovationmechanisms,improveitsscientificevaluationanddecision-makingsystemfornewdrugresearch,andstrengthenclosecollaborationswithleadingR&DinstitutionsbothinChinaandabroad.Inthemeantime,itwillincreaseinvestmentinattractinghigh-levelresearchtalent,enhancethetraining

andincentivemechanismsforitscoretechnicalstaff,anddevelopaworld-classinnovationteamcapableofsupportingthefullcycleofinnovativedrugR&D.

3.RiskininvestmentandmergerExternalinvestmentisoneofthekeyapproachesforenterprisedevelopment.Inrecentyears,toadvanceitsstrategictransformationtowardinnovation,theCompanyhascontinuouslyengagedininvestmentsandacquisitionsininnovativedrugs,aestheticmedicine,andindustrialmicrobiology,leadingtotherecognitionofgoodwill.Ifacquiredcompaniesexperienceperformancefluctuationsinthefuture,goodwillmaybeimpaired,whichcouldadverselyaffecttheCompany’sperformancefortheperiod.Inaddition,post-investmentmanagementandbusinessintegrationoftargetcompaniesplacehigherdemandsontheCompany’smanagementcapabilities.

Countermeasures:TheCompanyexercisesoversightoveracquiredsubsidiariesthroughcontroloftheBoardofDirectorsandbyappointingmanagementandfinancialpersonneltoparticipateinmajordecision-makinganddailyoperations.Subsidiariesarerequiredtocomplywiththelistedcompany’sinternalcontrolsystemsandtoestablishandimplementcomprehensivemanagementsystems.ThemanagementofacquiredsubsidiariesmaintainsefficientcommunicationwiththeCompany,whiledailyoperationsandmajordecisionsarestrictlycarriedoutinaccordancewithrelevantlawsandregulations,theCompany’sArticlesofAssociation,managementrules,andthedecision-makingproceduresstipulatedbytheBoardofDirectorsandshareholders’meetings.Intermsofacquisitionriskpreventionandcontrol,theCompanyconductsbusiness,financial,andtaxduediligenceontargetcompaniesbyengagingexternalintermediaries,andregularlycarriesoutspecializedmanagementauditsofsubsidiaries.Furthermore,theCompanyiscommittedtoenhancingitscapabilitiesinoperationalplanning,managementstructure,andfinancialmanagement,whilecontinuouslystrengtheningresourcesharingandsynergywithacquiredsubsidiaries,andimprovingbusinessintegrationinconsolidatedoperationsandgovernance.Italsoconductsregulargoodwillimpairmenttestsandreinforcescomprehensiveness,rigor,andtimelinessinpost-investmentmanagement.

4.Riskinexchangeratefluctuation

TheCompanyhasalwaysbeendevotedtoadvancingitsinternationaldevelopment.Inrecentyears,theCompanyhasincreasinglydevelopedinternationalcooperationandexchanges,expandedthesalesnetworkofaestheticmedicineintheworld,andacceleratedthedevelopmentofitsindustrialmicrobiologysegment,raisingtheproportionofforeigncurrencysettlementbusiness.ThefluctuationinexchangeratewillaffectthepriceoftheCompany’sexportproducts,causeexchangegainsandlossestotheCompany,andincreasetheoperatingcosts,thusaffectingtheCompany’sassets,liabilities,andincome,furtheraffectingitsoperationalability,debtrepayment

ability,andprofitability.Countermeasures:TheCompanywillcloselymonitorfluctuationsinexchangeratesandpromptlyadjustitsbusinessstrategiesaccordinglytomitigateadverseimpacts.Itwillenhanceawarenessofexchangeraterisksandcontinuouslyimprovetheforeignexchangeriskmanagementsystem.Meanwhile,theCompanywillstrengthentrainingforfinancialpersonneltoimproveprofessionalskillsandriskawareness,reinforceriskmitigationpractices,andfullyutilizefinancialinstrumentstohedgeagainstexchangeraterisks.

XI.Implementationofthemarketvaluemanagementsystemandvaluationenhancementplan

HastheCompanyestablishedamarketvaluemanagementsystem??Yes□NoHastheCompanydisclosedavaluationenhancementplan?

□Yes?NoTostrengthenitsmarketvaluemanagement,furtherstandardizeitsmarketvaluemanagementpractices,andpracticallysafeguardthelegitimaterightsandinterestsoftheCompany,itsinvestors,andotherstakeholders,theCompanyhasformulateditsmarketvaluemanagementsystemincompliancewithrelevantlawsandregulations,includingtheCompanyLawofthePeople’sRepublicofChina,theSecuritiesLawofthePeople’sRepublicofChina,theSeveralOpinionsoftheStateCouncilonStrengtheningRegulation,GuardingagainstRisks,andPromotingHigh-QualityDevelopmentoftheCapitalMarket,theAdministrativeMeasuresfortheDisclosureofInformationofListedCompanies,theNo.10GuidelinefortheSupervisionofListedCompanies-MarketValueManagement,aswellastheArticlesofAssociationandtheCompany’soperationalrealities.Thesystemwasapprovedatthe32

nd

Meetingofthe10

th

BoardofDirectors.DetailedinformationandthefulltextofthesystemareavailableintherelevantannouncementdisclosedbytheCompanyonCNINFO(https://www.cninfo.com)onApril18,2025.XII.ImplementationstatusoftheActionPlanfor"DualEnhancementofQualityandReturn"HastheCompanydisclosedtheActionPlanfor“DualEnhancementofQualityandReturn”?

?Yes□No

TheCompanyhasformulatedtheActionPlanfor"DualEnhancementofQualityandReturn"toimplementtheguidingprinciplesof“Activatingthecapitalmarketandboostinginvestors’confidence”putforwardbythePoliticalBureauoftheCPCCentralCommittee,andof“Vigorouslyimprovingthequalityandinvestmentvalueoflistedcompanies,takingmorepowerfulandeffectivemeasurestostabilizethemarketandconfidence”emphasizedattheexecutivemeetingoftheStateCouncil.ThePlanaimstosafeguardtheinterestsofallshareholders,continuouslystrengthentheCompany’scorecompetitivenessandinvestmentvalue,andachievehigh-quality,efficient,andsustainabledevelopment.Fordetails,pleaserefertotheAnnouncementonAdvancingtheImplementationoftheActionPlanfor"DualEnhancementofQualityandReturn"(AnnouncementNo.:2024-011)disclosedbytheCompanyonCNINFO(http://www.cninfo.com)onMarch9,2024.TheCompanyisimplementingtheActionPlanfor"DualEnhancementofQualityandReturn",focusingonitsfourmajorbusinesssegments—pharmaceuticalindustry,pharmaceuticalbusiness,aestheticmedicine,andindustrialmicrobiology—toadvanceitsinnovation-driventransformationstrategy,fullystimulateinnovationvitality,improveoperationalqualityandefficiency,anddrivesustainedhigh-qualitydevelopment.

Duringthereportingperiod,theCompany'sR&Dinvestmentinthepharmaceuticalindustry(excludingequityinvestments)reachedRMB1.484billion,ayear-on-yearincreaseof33.75%,ofwhichdirectR&DexpenditurewasRMB1.174billion,ayear-on-yearincreaseof54.21%,accountingfor15.97%ofthepharmaceuticalindustry'srevenue.TheCompanyhasfiledatotalofover1,700patentapplicationsdomesticallyandinternationallyovertheyears,includingmorethan550authorizedinventionpatents.Duringthereportingperiod,theCompany’spatentapplicationsandrenewalsprogressedsmoothly.Atotalof169patentapplicationsweresubmitted,including142forinventions.Additionally,33patentsweregranted.

TheCompanyconductedinformationdisclosureandinvestorexchangeactivitiesinlinewithinvestorneeds,enhanceditstransparency,listenedtoandadoptedinvestoropinionsandsuggestions,continuouslyimprovedcorporategovernance,strengthenedinternalcontrolandriskmanagement,andenhancedstandardizedoperations.Itfurtherstandardizedtheoperationsofthe“ThreeMeetings”—theshareholders’meeting,theBoardofDirectors,andtheBoardof

Supervisors—gavefullplaytotherolesofboardcommittees,independentdirectors,andexternalprofessionalinstitutions,continuouslyimproveddecision-making,andsafeguardedtheinterestsoftheCompanyanditsstakeholders.TheCompanyhasfirmlyupheldthephilosophyofdeliveringreturnstoinvestorsandremainedcommittedtoprudentoperations.Inthefirsthalfof2025,theCompanyrecordedtotaloperatingrevenueofRMB21.675billion,representingayear-on-yearincreaseof3.39%(3.12%growthinQ1);netprofitattributabletoshareholdersreachedRMB1.815billion,up7.01%year-on-year(6.06%growthinQ1);andnetprofitattributabletoshareholdersexcludingnon-recurringgainsandlossesamountedtoRMB1.762billion,an8.40%increaseyear-on-year(7.04%growthinQ1).TheCompany'soveralloperationsmaintainedastableandupwardtrendwithquarterlyimprovements,layingasolidfoundationforachievingtheannualbusinesstargets.InMay2025,theCompanyimplementedtheprofitdistributionplanfor2024,withatotalcashdividendofRMB1.017billion.Additionally,theCompanywillcarryouttheprofitdistributionforthefirsthalfof2025,withatotalcashdividendofRMB614million.Todate,theCompanyhasdistributeddividends24timessinceitwaslisted,withacumulativeamountofRMB8.259billion,whichis33.04timesthefundsraisedattheIPO(RMB250million).TheCompanyprovidesshareholderswithsteadyreturnsoninvestment.

SectionIVCorporateGovernance,Environment,andSociety

I.Changesindirectors,supervisorsandseniormanagersoftheCompany

□Applicable?NotapplicableTherewerenochangesintheCompany'sdirectors,supervisors,orseniormanagersduringthereportingperiod.Fordetails,pleaserefertothe2024AnnualReport.II.Profitdistributionandconversionofcapitalreserveintosharecapitalduringthereportingperiod?Applicable□Notapplicable

III.ImplementationoftheCompany'sequityincentiveplan,employeestockownershipplanorotheremployeeincentivemeasures

?Applicable□Notapplicable

1.Equityincentive

(1)OnAugust8,2022,theCompanyconvenedthe2

ndMeetingofthe10

thBoardofDirectorsandthe2

ndMeetingofthe10

thBoardofSupervisors,whichreviewedandapprovedtheProposalontheCompany’sRestrictedStockIncentivePlanin2022(Draft)andItsAbstract,theProposalonManagementRulesfortheImplementationandAssessmentoftheCompany’sRestrictedStockIncentivePlanin2022,theProposalontheManagementRulesoftheCompany’sRestrictedStockIncentivePlanin2022,andtheProposalonApplyingtotheShareholders’MeetingforAuthorizingtheBoardofDirectorstoHandleEquityIncentive-relatedMatters.IndependentdirectorsprovidedtheirindependentopinionsonwhetherthisincentiveplanisconducivetotheCompany'ssustainabledevelopmentandwhetheritmayharmtheinterestsoftheCompanyandallshareholders.Forspecificdetails,pleaserefertotherelevantannouncementpublishedbytheCompanyonCNINFOonAugust10,2022.

(2)OnAugust10,2022,theCompanydisclosedtheAnnouncementonIndependentDirectorsPubliclySolicitingProxyVotingRightsonCNINFO.Mr.WangRuwei,anIndependentDirectoroftheCompany,actingastheconvenerandcommissionedbyotherindependentdirectors,publiclysolicitedproxyvotingrightsfromallshareholdersoftheCompanyfortheproposalsrelatedtotheRestrictedStockIncentivePlanin2022tobereviewedatthe1

stExtraordinaryGeneralMeetingin2022,scheduledforAugust31,2022.

(3)FromAugust15to25,2022,theCompanypostedonitsintranetthelistofthefirstbatchofemployeesreceivingincentivesundertheRestrictedStockIncentivePlanin2022,foratotalof10days.AsoftheendoftheannouncementonAugust25,2022,theBoardofSupervisorshadnotreceivedanyobjectionsagainsttheseemployees.Onthesameday,theBoardofSupervisorsconvenedameetingtoreviewandapprovetheVerificationOpinionsandAnnouncementNoteontheListoftheFirstBatchofEmployeesReceivingtheIncentiveundertheCompany’sRestrictedStockIncentivePlanin2022.TheCompanythendisclosedtheseVerificationOpinionsandAnnouncementNotes,alongwitharelatedannouncement,onCNINFO.

(4)OnAugust31,2022,theCompanyconvenedthe1

st

ExtraordinaryGeneralMeetingin2022,whichreviewedandapprovedtheProposalontheCompany’sRestrictedStockIncentivePlanin2022(Draft)andItsAbstract,theProposalonManagementRulesfortheImplementationandAssessmentoftheCompany’sRestrictedStockIncentivePlanin2022,theProposalontheManagementRulesoftheCompany’sRestrictedStockIncentivePlanin2022,andtheProposalonApplyingtotheShareholders’MeetingforAuthorizingtheBoardofDirectorstoHandleEquityIncentive-relatedMatters.Onthesameday,theCompanydisclosedtheSelf-InspectionReportonInsidersandIncentiveRecipientsTradingofRestrictedStockIncentivePlanin2022andrelatedannouncementsonCNINFO.ThisincentiveplanwasapprovedintheCompany's1

st

ExtraordinaryGeneralMeetingin2022,andtheBoardofDirectorswasauthorizedtoimplementtheCompany'sRestrictedStockIncentivePlanin2022andhandlerelevantmattersaccordingtothelawsandregulations.

(5)OnOctober27,2022,theCompanyconvenedthe4

thMeetingofthe10

thBoardofDirectorsandthe5

thMeetingofthe10

thBoardofSupervisors.Duringthesetwomeetings,theProposalonAdjustmentsoftheCompany’sRestrictedStockIncentivePlanin2022,andtheProposalonGrantingRestrictedStockstotheFirstBatchofEmployeesReceivingIncentiveundertheRestrictedStockIncentivePlanin2022werereviewedandapproved.TheBoardofDirectorsconfirmedthattheconditionsoftheincentiveplanforgrantingrestrictedstockswerefulfilled,andtheBoardofSupervisorsre-verifiedthelistofincentiverecipientsonthefirstgrantdate,andprovidedopinionsonthegrant.TheCompany’sindependentdirectorsagreedontheaboveproposals,withrelatedreportspreparedbythelawyersandindependentfinancialadvisers.OnOctober28,2022,theCompanydisclosedtherelevantannouncementonCNINFO.

(6)OnNovember9,2022,theCompanydisclosedtheAnnouncementonCompletionofRegistrationoftheFirstGrantofRestrictedStocksundertheRestrictedStockIncentivePlanin2022.Theregistrationofthefirstgrantwascompleted,andthelistingdateofthegrantedrestrictedstockswasNovember15,2022.

(7)OnJuly12,2023,theCompanyconvenedthe12

thMeetingofthe10

thBoardofDirectorsandthe8

thMeetingofthe10

thBoardofSupervisors,wheretheProposalonAdjustingtheGrantPriceofReservedStocksundertheRestrictedStockIncentivePlanin2022andtheProposalonGrantingReservedRestrictedStockstoIncentiveRecipientsundertheRestrictedStockIncentivePlanin2022werereviewedandapproved.TheBoardofDirectorsconfirmedthatreservedconditionsoftheincentiveplanforgrantingrestrictedstockswerefulfilled,andtheBoardofSupervisorsre-verifiedthelistofincentiverecipientsonthedateofgrantingreservedstocks,andprovidedopinionsonthegrant.TheCompany’sindependentdirectorsagreedontheabove

proposals,withrelatedreportspreparedbythelawyersandindependentfinancialadvisers.Onthesameday,theCompanydisclosedtherelevantannouncementonCNINFO.

(8)FromJuly13to23,2023,theCompanypubliclydisplayedthelistofincentiverecipientsforthereservedrestrictedstocksunderthisincentiveplanthroughitsOAsystem,foratotalof10days.AsoftheendoftheannouncementonJuly23,2023,theBoardofSupervisorsdidnotreceiveanyobjectionsagainsttheseemployees.OnJuly26,2023,theBoardofSupervisorsconvenedameetingtoreviewandapprovetheVerificationOpinionsandAnnouncementNoteontheListofEmployeesReceivingtheReservedRestrictedStockIncentiveundertheCompany’sRestrictedStockIncentivePlanin2022.Onthesameday,theCompanydisclosedtheseVerificationOpinionsandAnnouncementNote,alongwitharelatedannouncement,onCNINFO.

(9)OnSeptember27,2023,theCompanydisclosedtheAnnouncementonCompletionofRegistrationoftheReservedGrantofRestrictedStocksundertheRestrictedStockIncentivePlanin2022.Theregistrationofthereservedgrantwascompleted,andthelistingdateofthegrantedrestrictedstockswasSeptember28,2023.

(10)OnNovember21,2023,theCompanyconvenedthe18

th

Meetingofthe10

thBoardofDirectorsandthe12

thMeetingofthe10

thBoardofSupervisors,duringwhichthefollowingproposalswerereviewedandapproved:ProposalonAchievementoftheReleaseofRestrictionConditionsduringtheFirstRestrictionPeriodofFirstGrantofRestrictedStocksundertheRestrictedStockIncentivePlanin2022,theProposalonAdjustingtheRepurchasePriceoftheRestrictedStockIncentivePlanin2022andtheProposalonRepurchaseandCancellationofCertainRestrictedStocks.TheBoardofDirectorsconfirmedthattheconditionsforreleasingrestrictionsduringthefirstrestrictionperiodofthefirstgrantofrestrictedstocksundertheRestrictedStockIncentivePlanin2022hadbeensatisfied.PursuanttotheauthorizationgrantedbytheCompany's1

st

ExtraordinaryGeneralMeetingin2022,theBoardofDirectorsapprovedthecompletionoftheproceduresforreleasingtherestrictionson1,220,940restrictedstocksunderthefirstrestrictionperiodfor108incentiverecipients.TheBoardofDirectorsalsoapprovedtherepurchaseandcancellationofatotalof97,800restrictedstocksthathadbeengrantedbutnotyetreleased,correspondingto4incentiverecipientswhowerenolongereligibleduetoresignationand2incentiverecipientswhofailedtofullymeettheindividualperformanceassessmentcriteriaforthefirstrestrictionreleaseperiod.TheCompany'sindependentdirectorsissuedconcurringindependentopinionsontherelevantmatters,andtheBoardofSupervisorsprovidedverificationopinions,withrelatedreportspreparedbythelawyersandindependentfinancialadvisers.Onthesameday,theCompanydisclosedtherelevantannouncementonCNINFO.

(11)OnDecember1,2023,theCompanydisclosedtheHintonCirculationofRestrictedStocksReleasedduringtheFirstRestrictionPeriodoftheFirstGrantofRestrictedStocksundertheRestrictedStockIncentivePlanin2022.TherestrictedstocksreleasedfromthefirstrestrictionperiodofthefirstgrantundertheRestrictedStockIncentivePlanin2022becametradableonDecember5,2023.

(12)OnDecember8,2023,theCompanyconvenedits2

nd

ExtraordinaryGeneralMeetingin2023,wheretheProposalonRepurchaseandCancellationofCertainRestrictedStocksandtheProposalonAlteringtheRegisteredCapitalandAmendingtheArticlesofAssociationwerereviewedandapproved.Onthesameday,theCompanydisclosedtheAnnouncementonRepurchaseandCancellationofCertainRestrictedStockstoReduceRegisteredCapitalandNotifytheCreditors.AsofJanuary24,2024,thebenchmarkdateforcapitalverification,i.e.,withinforty-fivedaysfromthedatewhentheCompanyannouncedthereductionofcapital,nocreditorrequestedtheCompanytopayoffitsdebtsorprovidecorrespondingguarantees.

(13)OnMarch28,2024,theCompanydisclosedtheAnnouncementontheCompletionoftheRepurchaseandCancellationofCertainRestrictedStocks.OnMarch26,2024,theCompanycompletedtheproceduresforrepurchaseandcancellationof97,800restrictedstocksinShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited.

(14)OnMay30,2024,theCompanyconvenedthe24

th

Meetingofthe10

thBoardofDirectorsandthe16

thMeetingofthe10

thBoardofSupervisors,duringwhichtheProposalonAdjustingtheRepurchasePriceoftheRestrictedStockIncentivePlanin2022andtheProposalonRepurchaseandCancellationofCertainRestrictedStockswerereviewedandapproved.TheBoardofDirectorsagreedtorepurchaseandcancelatotalof65,000restrictedstocksthathadbeengrantedbutnotyetreleasedfromrestrictions,correspondingto5incentiverecipientswhowerenolongereligibleduetoresignation.TheBoardofSupervisorsprovidedverificationopinionsontherelevantmatters,withrelatedreportspreparedbythelawyersandindependentfinancialadvisers.Onthesameday,theCompanydisclosedtherelevantannouncementonCNINFO.

(15)OnJune18,2024,theCompanyconvenedits1

stExtraordinaryGeneralMeetingin2024,wheretheProposalonRepurchaseandCancellationofCertainRestrictedStocksandtheProposalonIncreasingtheBusinessScope,AlteringtheRegisteredCapitalandAmendingtheArticlesofAssociationwerereviewedandapproved.Onthesameday,theCompanydisclosedtheAnnouncementonRepurchaseandCancellationofCertainRestrictedStockstoReduceRegisteredCapitalandNotifytheCreditors.AsofAugust05,2024,thebenchmarkdateforcapitalverification,i.e.,withinforty-fivedaysfromthedatewhentheCompanyannouncedthereductionofcapital,nocreditorrequestedtheCompanytopayoffitsdebtsorprovidecorrespondingguarantees.

(16)OnAugust29,2024,theCompanydisclosedtheAnnouncementontheCompletionoftheRepurchaseandCancellationofCertainRestrictedStocks.OnAugust27,2024,theCompanycompletedtheproceduresforrepurchaseandcancellationof65,000restrictedstocksinShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited.

(17)OnOctober10,2024,theCompanyconvenedthe28

th

Meetingofthe10

thBoardofDirectorsandthe18

thMeetingofthe10

thBoardofSupervisors.Duringthesetwomeetings,theProposalonAchievementoftheReleaseofRestrictionConditionsduringtheFirstRestrictionPeriodofReservedGrantofRestrictedStocksundertheRestrictedStockIncentivePlanin2022wasreviewedandapproved.TheBoardofDirectorsconfirmedthattheconditionsforreleasingrestrictionsduringthefirstrestrictionperiodofthereservedgrantofrestrictedstocksundertheRestrictedStockIncentivePlanin2022hadbeensatisfied.PursuanttotheauthorizationgrantedbytheCompany’s1

st

ExtraordinaryGeneralMeetingin2022,theBoardofDirectorsapprovedthecompletionoftheproceduresforreleasingtherestrictionson192,500restrictedstocksunderthefirstrestrictionperiodfor18incentiverecipients.TheBoardofSupervisorsprovidedverificationopinionsontherelevantmatters,withrelatedreportspreparedbythelawyersandindependentfinancialadvisers.Onthesameday,theCompanydisclosedtherelevantannouncementonCNINFO.

(18)OnOctober24,2024,theCompanydisclosedtheHintonCirculationofRestrictedStocksReleasedduringtheFirstRestrictionPeriodofReservedGrantofRestrictedStocksundertheRestrictedStockIncentivePlanin2022.TherestrictedstocksreleasedfromthefirstrestrictionperiodofthereservedgrantundertheRestrictedStockIncentivePlanin2022becametradableonOctober28,2024.

(19)OnNovember25,2024,theCompanyconvenedthe30

th

Meetingofthe10

thBoardofDirectorsandthe20

thMeetingofthe10

thBoardofSupervisors,duringwhichthefollowingproposalswerereviewedandapproved:ProposalonAchievementoftheReleaseofRestrictionConditionsduringtheSecondRestrictionPeriodofFirstGrantofRestrictedStocksundertheRestrictedStockIncentivePlanin2022,theProposalonAdjustingtheRepurchasePriceoftheRestrictedStockIncentivePlanin2022andtheProposalonRepurchaseandCancellationofCertainRestrictedStocks.TheBoardofDirectorsconfirmedthattheconditionsforreleasingrestrictionsduringthesecondrestrictionperiodofthefirstgrantofrestrictedstocksundertheRestrictedStockIncentivePlanin2022hadbeensatisfied.PursuanttotheauthorizationgrantedbytheCompany’s1

st

ExtraordinaryGeneralMeetingin2022,theBoardofDirectorsapprovedthecompletionoftheproceduresforreleasingtherestrictionson1,063,740restrictedstocksunderthesecondrestrictionperiodfor90incentiverecipients.TheBoardofDirectorsalsoapprovedthe

repurchaseandcancellationofatotalof185,500restrictedstocksthathadbeengrantedbutnotyetreleasedfromrestrictions,correspondingto1incentiverecipientwhowasnolongereligibleduetoresignation,16incentiverecipientswhoseindividualperformanceassessmentresultsforthesecondrestrictionreleaseperiodwereunqualified,and1reservedincentiverecipientwhoseindividualperformanceassessmentresultsforthefirstrestrictionreleaseperiodwereunqualified.TheBoardofSupervisorsprovidedverificationopinionsontherelevantmatters,withrelatedreportspreparedbythelawyersandindependentfinancialadvisers.OnNovember27,2024,theCompanydisclosedtherelevantannouncementonCNINFO.

(20)OnDecember13,2024,theCompanydisclosedtheHintonCirculationofRestrictedStocksReleasedduringtheSecondRestrictionPeriodofFirstGrantofRestrictedStocksundertheRestrictedStockIncentivePlanin2022.TherestrictedstocksreleasedfromthesecondrestrictionperiodofthefirstgrantundertheRestrictedStockIncentivePlanin2022becametradableonDecember16,2024.

(21)OnDecember20,2024,theCompanyconvenedits2

nd

ExtraordinaryGeneralMeetingin2024,wheretheProposalonRepurchaseandCancellationofCertainRestrictedStocksandtheProposalonIncreasingtheBusinessScope,AlteringtheRegisteredCapitalandAmendingtheArticlesofAssociationwerereviewedandapproved.Onthesameday,theCompanydisclosedtheAnnouncementonRepurchaseandCancellationofCertainRestrictedStockstoReduceRegisteredCapitalandNotifytheCreditors.AsofFebruary5,2025,thebenchmarkdateforcapitalverification,i.e.,withinforty-fivedaysfromthedatewhentheCompanyannouncedthereductionofcapital,nocreditorrequestedtheCompanytopayoffitsdebtsorprovidecorrespondingguarantees.

(22)OnMarch28,2025,theCompanydisclosedtheAnnouncementontheCompletionoftheRepurchaseandCancellationofCertainRestrictedStocks.OnMarch26,2025,theCompanycompletedtheproceduresforrepurchaseandcancellationof185,500restrictedstocksinShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited.

(23)OnJune27,2025,theCompanyconvenedthe34

th

Meetingofthe10

thBoardofDirectorsandthe24

th

Meetingofthe10

th

BoardofSupervisors,wheretheProposalonAdjustingtheRepurchasePriceoftheRestrictedStockIncentivePlanin2022andtheProposalonRepurchaseandCancellationofCertainRestrictedStocksandReductionoftheCompany’sRegisteredCapitalwerereviewedandapproved.TheBoardofDirectorsagreedtorepurchaseandcancelatotalof56,000restrictedstocksthathadbeengrantedbutnotyetreleasedfromrestrictions,correspondingto6incentiverecipientswhowerenolongereligibleduetoresignation,andtoreducetheCompany’sregisteredcapitalaccordingly.TheBoardofSupervisorsprovidedverificationopinions

ontherelevantmatters,withrelatedreportspreparedbythelawyersandindependentfinancialadvisers.OnJuly01,2025,theCompanydisclosedtherelevantannouncementonCNINFO.

(24)OnJuly16,2025,theCompanyconvenedits1

st

ExtraordinaryGeneralMeetingin2025,wheretheProposalonRepurchaseandCancellationofCertainRestrictedStocksandReductionoftheCompany’sRegisteredCapitalandtheProposalonAmendingtheArticlesofAssociationwerereviewedandapproved.Onthesameday,theCompanydisclosedtheAnnouncementonRepurchaseandCancellationofCertainRestrictedStockstoReduceRegisteredCapitalandNotifytheCreditors.

2.Implementationofemployeestockownershipplan(ESOP)

□Applicable?Notapplicable

3.Otheremployeeincentives

□Applicable?Notapplicable

IV.Disclosureofenvironmentalinformation

Whetherthelistedcompanyanditsmajorsubsidiariesareincludedinthelistofenterpriseslegallyrequiredtodiscloseenvironmentalinformation?Yes□No

V.Socialresponsibility

Intheprocessofitsstrategictransformation,theCompanystrictlyfulfillsitscorporatesocialresponsibilities,addressingtheneedsofallstakeholders,includingshareholders,governmentsandregulatoryagencies,employees,customersandpatients,suppliers,communities,thepublic,aswellaspartnersTheCompanycontinuestodeepenitseffortsinpublichealtheducation,expandingaccesstomedicalservicesforbroaderpopulationsandprovidingaffordablehealthcaresolutionsforpatients.Meanwhile,theCompanyremainscommittedtosocialwelfareinitiatives,unitingdiverseforcestodeliverwarmthandcare.Bysharingcutting-edgetechnologiesandcollaboratingwithleadingexpertsandindustrypartners,theCompanydrivesprogressinbothindustrydevelopmentandsocietaladvancement.

SectionVImportantMattersI.Commitmentsthathavebeenfulfilledbythecommitment-relatedparties,suchasactualcontrollers,shareholders,relatedparties,acquirersandtheCompany,duringthereportingperiod,andthosethathavenotbeenfulfilledasoftheendofthereportingperiod

□Applicable?NotapplicableDuringthereportingperiod,thecompanydidnothaveanycommitmentsmadebytheactualcontroller,shareholders,relatedparties,acquirers,ortheCompanyitselfthatwerefulfilledduringthereportingperiodorremainedoverdueasoftheendofthereportingperiod.

II.Non-operationalappropriationoffundsofthelistedcompanybycontrollingshareholdersandotherrelatedparties

□Applicable?NotapplicableDuringthereportingperiod,therewasnonon-operationalappropriationoffundsofthelistedcompanybycontrollingshareholdersandotherrelatedpartiesIII.Violationsofexternalguarantees

□Applicable?NotapplicableTherewasnoviolationofexternalguaranteeduringthereportingperiod.

IV.AppointmentanddismissalofaccountingfirmsWhetherthesemi-annualfinancialreporthasbeenaudited

□Yes?NoTheCompany'ssemi-annualreporthasnotbeenaudited.V.ExplanationsbytheBoardofDirectorsandtheBoardofSupervisorsonthe“Non-standardAuditReport”duringthereportingperiod

□Applicable?Notapplicable

VI.ExplanationoftheBoardofDirectorsonthesituationrelatingtothe“Non-standardAuditReport”oftheprioryear

□Applicable?NotapplicableVII.Mattersrelatedtobankruptcyandreorganization

□Applicable?NotapplicableTheCompanywasnotinvolvedinmattersrelatedtobankruptcyandreorganizationduringthereportingperiod.

VIII.Litigationmatters

Significantlitigationandarbitrationmatters

□Applicable?NotapplicableDuringthereportingperiod,thecompanywasnotinvolvedinmajorlitigationorarbitrationmatters.Otherlitigationmatters?Applicable□Notapplicable

Note:Duringthereportingperiod,theCompanymadepositiveprogressininitiatingadministrativerulingsandlawsuitsagainst16infringingenterprisesforviolatingtheinventionpatent"IndobufenCrystalformDandItsPreparationMethod"(PatentNo.:

ZL202211596913.5)ownedbyHangzhouZhongmeiHuadongPharmaceuticalCo.,Ltd.(hereinafterreferredtoas"ZhongmeiHuadong"),oneofitswholly-ownedsubsidiaries.TheCompanyalsoactivelydefendedagainstthepatentinvalidationrequestfiledbytheaccusedinfringingenterprises.AsofthedisclosuredateoftheReport,relevantprogressisasfollows:

1.Administrativerulings:ZhongmeiHuadonghassubmittedadministrativerulingapplicationstotheHangzhouIntellectualPropertyOffice,HuzhouIntellectualPropertyOffice,ChengduIntellectualPropertyOffice,NanjingIntellectualPropertyOffice,andZunyiIntellectualPropertyOfficeregardingpatentinfringementby16companies,demandinganimmediatecessationoftheinfringingactivities.AsofthedisclosuredateoftheReport,theHangzhouIntellectualPropertyOfficehasissued3administrativerulings,confirmingtheexistenceofinfringementandorderingtheinvolvedcompaniestoimmediatelyceasetheinfringingactivities.Someoftheinvolvedcompanies,dissatisfiedwiththerulings,filedadministrativelawsuitswiththeHangzhouIntermediatePeople'sCourt.TheCourthasissuedanadministrativejudgmentupholdingtheoriginalrulinginonecase,whileanothercasewasconcludedbytheappellantvoluntarilywithdrawingtheappeal.Theremainingadministrativerulingapplicationsareundertrialbytherespectiveintellectualpropertyofficesandhavenotyetbeenadjudicated.

2.Judiciallitigation:Inadditiontotheadministrativerulingapplications,ZhongmeiHuadonghasalsofiledapatentinfringementlawsuitwiththeHangzhouIntermediatePeople'sCourt,demandinganimmediatecessationoftheinfringingactivitiesandcompensationfordamages.Thecasehasresultedinajudgmentconfirmingtheexistenceofinfringementandorderingtheinvolvedcompanytoimmediatelyceasetheinfringingactivities.

3.Patentinvalidationproceedings:AsofthedisclosuredateoftheReport,theCompanyhasreceivedpatentinvalidationrequestsfiledby13petitionerswiththeChinaNationalIntellectualPropertyAdministration(CNIPA).TheCNIPAissuedaCaseClosureNoticeforthewithdrawalofinvalidationrequestsbyonepetitioneronJanuary7,2025,renderedtheInvalidationDecisionNoticemaintainingthefullvalidityoftheinvolvedpatentfor5petitionersonMarch12,2025,issuedCaseClosureNoticeforthewithdrawalofinvalidationrequestsbyonepetitionereachonJune11,2025,andJune18,2025,respectively.Theremainingcasesarecurrentlyunderreview.

IX.Penaltiesandrectification

□Applicable?NotapplicableTheCompanyhadnopenaltiesorrectificationsduringthereportingperiod.

X.IntegrityoftheCompanyanditscontrollingshareholdersandactualcontrollers?Applicable□NotapplicableDuringthereportingperiod,neithertheCompany,itscontrollingshareholders,noritsactualcontrollerhasfailedtocomplywithanyeffectivecourtjudgment,nordefaultedonanymaterialdebtobligationsthathadbecomedue.

XI.Significantrelated-partytransactions

1.Relatedpartytransactionsrelatedtodailyoperations?Applicable□Notapplicable

2.Relatedpartytransactionsarisingfromtheacquisitionorsaleofassetsorequityinterests

□Applicable?NotapplicableDuringthereportingperiod,thecompanydidnothaveanyrelatedpartytransactionsarisingfromtheacquisitionorsaleofassetsorequityinterests.

3.Relatedpartytransactionsofjointinvestmentsabroad

□Applicable?NotapplicableThecompanydidnothaveanyrelatedpartytransactionsofjointinvestmentsabroadduringthereportingperiod.

4.Relatedcreditanddebttransactions

□Applicable?NotapplicableThecompanydidnothaveanyrelatedcreditanddebttransactionsduringthereportingperiod.

5.Transactionswithrelatedfinancecompanies

□Applicable?NotapplicableTherewasnodeposit,loan,creditorotherfinancialbusinessamongtheCompany,thefinancecompanywithwhichtheCompanyhasestablishedarelationship,andtherelatedparties.

6.TransactionsbetweenfinancialcompaniescontrolledbytheCompanyandrelatedparties

□Applicable?NotapplicableTherewasnodeposit,loan,creditfacilityorotherfinancialtransactionsbetweenthefinancecompaniescontrolledbytheCompanyandrelatedparties.

7.Othersignificantrelatedpartytransactions

□Applicable?NotapplicableTheCompanydidnothaveothersignificantrelatedpartytransactionsduringthereportingperiod.

XII.Significantcontractsandfulfillment

1.Trusteeship,contractingandleasingmatters

(1)Trusteeship

□Applicable?NotapplicableThecompanydidnothavetrusteeshipduringthereportingperiod.

(2)Contracting

□Applicable?NotapplicableThecompanydidnothaveanycontractsduringthereportingperiod.

(3)Leasing?Applicable□NotapplicableLeasedescriptionRefertotherelevantcontentin"SectionVIIIFinancialReport-VII.Notestoconsolidatedfinancialstatementitems,82.Leasing"ItemsthatbroughtgainsandlossestotheCompanyamountingtomorethan10%oftheCompany'stotalprofitduringthereportingperiod

□Applicable?NotapplicableTherewasnoleasingitemthatbroughtgainsandlossestotheCompanyamountingtomorethan10%oftheCompany'stotalprofitduringthereportingperiod.

2.Significantguarantees

?Applicable□Notapplicable

Unit:RMB10,000

Explanationofspecificsituationsforcompositeguarantee

3.Entrustedwealthmanagement

□Applicable?NotapplicableTheCompanydidnothaveanyentrustedwealthmanagementduringthereportingperiod.

4.Othersignificantcontracts

□Applicable?NotapplicableTheCompanydidnothaveanyothersignificantcontractsduringthereportingperiod.

XIII.Explanationforothersignificantmatters

□Applicable?NotapplicableTheCompanyhadnoothersignificantmattersrequiringexplanationduringthereportingperiod.

XIV.SignificantmattersoftheCompany'ssubsidiaries?Applicable□NotapplicableAsofthedateoftheReport,theliquidationofHuadongNingboMedicineCo.,Ltd.hasreachedastageunderthesupervisionofthecourtwherethemajorassetshavebeendisposedof,withonlythecollectionofremainingreceivablespending.TheCompanywillactivelyadvancethesubsequentliquidation.Duringthisreportingperiod,theCompanyrecognizedaninvestmentincomeofRMB-6,672,178.39usingtheequitymethod.

SectionVIChangesinSharesandShareholders

I.Changesinshares

1.Changesinshares

Unit:Shares

Reasonforchangesinshares?Applicable□Notapplicable

Duringthereportingperiod,theCompanyrepurchasedandcanceledaportionofrestrictedstockundertheRestrictedStockIncentivePlanin2022.Thenumberofrestrictedstocksrepurchasedandcanceledwas185,500,resultinginadecreaseof185,500sharesintheCompany'stotalsharecount,includingareductionof185,500shareswithrestrictedsaleconditions.

Approvalofchangesinshares?Applicable□Notapplicable

(1)OnNovember25,2024,theCompanyconvenedthe30

thMeetingofthe10

th

BoardofDirectorsandthe20

th

Meetingofthe10

th

BoardofSupervisors,duringwhichtheProposalonAdjustingtheRepurchasePriceoftheRestrictedStockIncentivePlanin2022andtheProposalonRepurchaseandCancellationofCertainRestrictedStockswerereviewedandapproved.TheBoardofDirectorsagreedtorepurchaseandcancelatotalof185,500restrictedstocksthathadbeengrantedbutnotyetreleasedfromrestrictions,andthesesharescorrespondingtoanincentiverecipientwhowasnolongereligibleduetoresignation,16incentiverecipientswhoseindividualperformanceassessmentresultsforthesecondrestrictionreleaseperiodweredeemedunqualified,andanincentiverecipientofthereservedshareswhoseindividualperformanceassessmentresultsforthefirstrestrictionreleaseperiodweredeemedunqualified.TheBoardofSupervisorsprovidedverificationopinionsontherelevantmatters,withrelatedreportspreparedbythelawyersandindependentfinancialadvisers.OnNovember27,2024,theCompanydisclosedtherelevantannouncementonCNINFO.

(2)OnDecember20,2024,theCompanyconvenedits2ndExtraordinaryGeneralMeetingin2024,wheretheProposalonRepurchaseandCancellationofCertainRestrictedStocksandtheProposalonIncreasingtheBusinessScope,AlteringtheRegisteredCapitalandAmendingtheArticlesofAssociationwerereviewedandapproved.Onthesameday,theCompanydisclosedtheAnnouncementonRepurchaseandCancellationofCertainRestrictedStockstoReduceRegisteredCapitalandNotifytheCreditors.AsofFebruary5,2025,thebenchmarkdateforcapitalverification,i.e.,withinforty-fivedaysfromthedatewhentheCompanyannouncedthereductionofcapital,nocreditorrequestedtheCompanytopayoffitsdebtsorprovidecorrespondingguarantees.

(3)OnMarch28,2025,theCompanydisclosedtheAnnouncementontheCompletionoftheRepurchaseandCancellationofCertainRestrictedStocks.OnMarch26,2025,theCompanycompletedtheproceduresforrepurchaseandcancellationof185,500restrictedstocksinShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited.

Transferofchangedshares?Applicable□Notapplicable

InMarch2025,theCompanysubmittedtherelevantregistrationmaterialstotheShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedfortherepurchaseandcancellationof185,500sharesinvolvedintheequityincentiveplan.Inthesamemonth,theShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimitedissuedtheConfirmationforRegistrationofSecuritiesTransfertotheCompany,andthetotalsharecapitaloftheCompanywasreducedfrom1,754,262,548.00sharesto1,754,077,048.00shares.

Progressofimplementationofsharerepurchase

□Applicable?NotapplicableProgressintheimplementationofthereductionofrepurchasedsharesviacentralizedbidding

□Applicable?NotapplicableImpactofsharechangesonfinancialindicatorssuchasbasicanddilutedearningspershare,andnetassetspershareattributabletocommonshareholdersoftheCompanyinthelastyearandthelatestperiod?Applicable□Notapplicable

Basedonthetotalsharesof1,754,262,548.00beforechangesinsharecapital,theCompany'sbasicanddilutedearningspershareforthefirsthalfof2025areRMB1.0293/shareandRMB

1.0345/share,respectively,andnetassetspershareattributabletocommonshareholdersareRMB

13.59/share.Afterchangesinsharecapital,withtotalsharesof1,754,077,048.00,thebasicearningspershareremainRMB1.0293/share,thedilutedearningspershareareRMB1.0346/share,andnetassetspershareattributabletocommonshareholdersremainRMB13.59/share.

Overall,theaforementionedchangesinsharecapitaldidnothaveasignificantimpactontheCompany'sfinancialindicatorsforthefirsthalfof2025,includingbasicanddilutedearningspershare,aswellasnetassetspershareattributabletocommonshareholders.

OthercontentsdeemednecessarybytheCompanyorrequiredtobedisclosedbysecuritiesregulatoryauthorities

□Applicable?Notapplicable

2.Changesinrestrictedshares

?Applicable□Notapplicable

Unit:Shares

II.Offeringandlistingofsecurities

□Applicable?NotapplicableIII.Numberofshareholdersandshareholding

Unit:Shares

Participationinthelendingofsharesthroughrefinancingbusinessofshareholdersholdingmorethan5%ofshares,thetop10shareholdersandthetop10shareholdersholdingtradableshareswithoutrestrictedsaleconditions

□Applicable?NotapplicableChangeintop10shareholdersandtop10shareholdersholdingtradableshareswithoutrestrictedsaleconditionsduetolending/returningofsharesthroughrefinancing,ascomparedtothepreviousperiod

□Applicable?NotapplicableWhetherthetop10commonshareholdersandthetop10commonshareholderswithunrestrictedsharesintheCompanyengagein

theagreedrepurchasetransactionsduringthereportingperiod

□Yes?NoThetop10commonshareholdersandthetop10commonshareholderswithunrestrictedsharesintheCompanydidnotengageinanyagreedrepurchasetransactionsduringthereportingperiod.

IV.Changesinshareholdingsofdirectors,supervisors,andseniormanagers?Applicable□Notapplicable

Note:InMarch2025,theCompanycanceled45,000restrictedstocksheldbyWuHui,theDeputyGeneralManageroftheCompany,inaccordancewithrelevantregulationsoftheRestrictedStockIncentivePlanin2022.V.ChangesincontrollingshareholdersoractualcontrollersChangeincontrollingshareholderduringthereportingperiod

□Applicable?NotapplicableTherewasnochangeinthecontrollingshareholderoftheCompanyduringthereportingperiod.Changeinactualcontrollerduringthereportingperiod

□Applicable?NotapplicableTherewasnochangeintheactualcontrolleroftheCompanyduringthereportingperiod.

VI.Relevantsituationofpreferredshares

□Applicable?NotapplicableTheCompanydidnothavepreferredsharesduringthereportingperiod.

SectionVII.RelevantSituationofBonds

□Applicable?Notapplicable

SectionVIII.FinancialReportsI.Auditreport

Whetherthesemi-annualfinancialreporthasbeenaudited

□Yes?NoTheCompany'ssemi-annualfinancialreporthasnotbeenaudited.

II.FinancialstatementsTheunitinthenotestofinancialstatementsis:RMB

1.ConsolidatedbalancesheetPreparedby:HuadongMedicineCo.,Ltd.

June30,2025

Unit:RMB

Legalrepresentative:LvLiangPersoninchargeofaccounting:LvLiangPersoninchargeoftheaccountingdepartment:

QiuRenbo

2.Balancesheetoftheparentcompany

Unit:RMB

3.Consolidatedprofitstatement

Unit:RMB

Ifthereisabusinesscombinationundercommoncontrolinthisperiod,thenetprofitofthecombinedpartybeforethecombinationisRMB0.00,andthenetprofitofthecombinedpartyinthepreviousperiodisRMB0.00.Legalrepresentative:LvLiangPersoninchargeofaccounting:LvLiangPersoninchargeoftheaccountingdepartment:

QiuRenbo

4.Profitstatementoftheparentcompany

Unit:RMB

5.Consolidatedcashflowstatement

Unit:RMB

6.Cashflowstatementoftheparentcompany

Unit:RMB

7.Consolidatedstatementofchangesinowners'equity

Amountinthecurrentperiod

Unit:RMB

Amountoftheprioryear

Unit:RMB