华东医药: 2026年半年度报告（英文版）

           Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Huadong Medicine Co., Ltd.
      August 27, 2026
                                            Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
               Section I Important Notes, Contents and Definitions
     The Board of Directors, directors, and senior manager of Huadong Medicine Co., Ltd.
(hereinafter referred to as the "Company") hereby guarantee that the information
presented in this report is authentic, accurate and complete and free of false records,
misleading statements or material omissions, and shall undertake individual and joint legal
liabilities.
     Lv Liang, the Company's legal representative and the officer in charge of accounting,
and Qiu Renbo, head of accounting department (accounting manager) hereby declare that
the financial statements in this semi-annual report are authentic, accurate, and complete.
     All directors have attended the Board of Directors meeting to review this semi-annual
report.
     The future plans, development strategies and other forward-looking statements in this
semi-annual report shall not be considered as a substantial commitment of the Company to
investors. Investors and related parties should be fully aware of the risks, and understand
the differences between plans, forecasts and commitments.
     The risks the Company faces in operation including industry policy and product price
reduction risk, new drug R&D risk, investment and M&A risk and exchange rate
fluctuation risk. For details, please refer to "X. Risks faced by the Company and
countermeasures" in "Section III. Management's Discussion and Analysis" in the Report.
Therefore, investors are kindly reminded to pay attention to possible investment risks.
     The profit distribution plan deliberated and approved at the meeting of the Board of
Directors is as follows: On the basis of 1,753,736,848.00 shares of the existing total share
capital of the Company, a cash dividend of RMB 3.50 (tax inclusive) per 10 shares will be
distributed to all shareholders; a total of 0 bonus share (tax inclusive) will be issued; and no
capital reserves will be converted to increase the share capital. This 2026 semi-annual profit
distribution scheme falls within the scope authorized by the 2025 Annual Shareholders'
Meeting resolution to the Board of Directors and does not require further approval by the
Shareholders' Meeting.
                                         Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
    According to “Stock Listing Rules of the Shenzhen Stock Exchange”, if listed
companies have both Chinese and other language version of public notice, they should
ensure the content of both versions are the same. In the case of discrepancy, the original
version in Chinese shall prevail.
                                                                         Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                                        Table of Contents
                                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                        Contents of Reference File
(I) Financial accounting statements signed and stamped by the legal representative, the officer in charge of accounting, and the
head of Accounting Department (accounting manager).
(II) The original of all Company's documents publicly disclosed in the press designated by CSRC during the reporting period and
the original of announcements.
                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                           Definitions
                          Item                 refers to                          Definition
CSRC                                           refers to   China Securities Regulatory Commission
SZSE                                           refers to   Shenzhen Stock Exchange
Huadong Medicine/the Company/our Company       refers to   Huadong Medicine Co., Ltd.
China Grand Enterprises                        refers to   China Grand Enterprises, Inc.
Huadong Medicine Group                         refers to   Hangzhou Huadong Medicine Group Co., Ltd.
Zhongmei Huadong                               refers to   Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd.
                                                           Hangzhou Zhongmei Huadong Pharmaceutical
Jiangdong Company                              refers to
                                                           Jiangdong Co., Ltd.
Jiangsu Joyang                                 refers to   Joyang Laboratories
Jiuyuan Gene                                   refers to   Hangzhou Jiuyuan Genetic Biopharmaceutical Co., Ltd.
Doer Biologics                                 refers to   Zhejiang Doer Biologics Co., Ltd.
Chongqing Peg-Bio                              refers to   Chongqing Peg-Bio Biopharm Co., Ltd.
Qyuns Therapeutics                             refers to   Qyuns Therapeutics Co., Ltd.
Nuoling Bio                                    refers to   Nuoling Biomedical Technology (Beijing) Co., Ltd.
Meihua Hi-Tech/Anhui Meihua                    refers to   Anhui Meihua Hi-Tech Pharmaceutical Co., Ltd.
Wuhu Huaren                                    refers to   Wuhu Huaren Science and Technology Co., Ltd.
Huida Biotech                                  refers to   Zhejiang Huida Biotech Co., Ltd.
Hizyme Biotech                                 refers to   Hangzhou Hizyme Biotech Co., Ltd.
Magic Health                                   refers to   Hubei Magic Health Technology Co., Ltd.
CARsgen Therapeutics                           refers to   CARsgen Therapeutics Holdings Limited
HD Animal Health                               refers to   HD Animal Health (Jiangsu) Pharmaceutical Co., Ltd.
Shengji Material                               refers to   Zhejiang Shengji Material Technology Co., Ltd.
IMPACT Therapeutics                            refers to   Nanjing IMPACT Therapeutics Co., Ltd.
Sinclair                                       refers to   Sinclair Pharma Limited
R2                                             refers to   R2 Technologies,Inc.
MediBeacon                                     refers to   MediBeacon Inc.
ImmunoGen                                      refers to   ImmunoGen,Inc.
RAPT                                           refers to   RAPT Therapeutics,Inc.
Kylane                                         refers to   Kylane Laboratoires SA
High Tech                                      refers to   High Technology Products, S.L.U.
Viora                                          refers to   Viora Ltd
Heidelberg Pharma                              refers to   Heidelberg Pharma AG
Kiniksa                                        refers to   Kiniksa Pharmaceuticals (UK), Ltd.
Arcutis                                        refers to   Arcutis Biotherapeutics, Inc.
ATGC                                           refers to   ATGC Co., Ltd.
GMP                                            refers to   Good Manufacturing Practice
cGMP                                           refers to   Current Good Manufacturing Practice
GSP                                            refers to   Good Supply Practice
BE                                             refers to   Bioequivalence
CDE                                            refers to   Center for Drug Evaluation of National Medical
                   Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                 Products Administration
MAH                  refers to   Marketing Authorization Holder
FDA                  refers to   U.S. Food and Drug Administration
NMPA                 refers to   National Medical Products Administration
IPO                  refers to   Initial Public Offering
API                  refers to   Active Pharmaceutical Ingredient
                                 Drug Master File, a confidential dossier prepared by the
                                 holder on a precautionary basis, which contains
                                 comprehensive details about facilities, manufacturing
                                 processes, and materials involved in the preparation,
                                 processing, packaging, and storage of one or more
DMF                  refers to
                                 human drug products. The contents of a DMF may only
                                 be referenced by the FDA during its review of IND
                                 applications, NDAs, and ANDAs upon receipt of a
                                 Letter of Authorization from either the DMF holder or
                                 their legally authorized representative.
NHSA                 refers to   National Healthcare Security Administration
                                 Key Opinion Leader, individuals who possess extensive
                                 and more accurate information regarding products. They
KOL                  refers to   are recognized and trusted by a relevant community and
                                 have significant influence over the purchasing decisions
                                 of that group.
NDA                  refers to   New Drug Application
BLA                  refers to   Biologics License Application
                                 Abbreviated New Drug Application (i.e., Generic Drug
ANDA                 refers to
                                 Application)
                                 The EU's certification for products, which indicates that
                                 the products meet the requirements of relevant EU
                                 directives. It also serves as evidence that the products
CE certification     refers to   have undergone the corresponding conformity
                                 assessment procedures and that the manufacturer has
                                 made a declaration of conformity. This certification
                                 shows that the products can be sold in the EU market.
MDR                  refers to   Medical Devices Regulation (EU) 2017/745
                                 International Council for Harmonisation of Technical
ICH                  refers to
                                 Requirements for Pharmaceuticals for Human Use
IND                  refers to   Investigational New Drug
PK/PD                refers to   Pharmacokinetics/pharmacodynamics
                                 Chemistry, Manufacturing and Control, mainly such
                                 pharmaceutical researches as manufacturing process,
CMC                  refers to
                                 impurity research, quality research, and stability
                                 research during drug research and development.
                                 Contract Manufacturing Organization, i.e. providing
                                 such services as customized manufacturing of medical
CMO                  refers to
                                 intermediates, APIs and pharmaceutical preparations
                                 entrusted by pharmaceutical companies.
                                 Contract Development and Manufacturing Organization,
                                 mainly including providing customized R&D and
                                 production services for multinational pharmaceutical
                                 companies and biotechnology companies, such as
CDMO                 refers to
                                 process R&D and preparation, process optimization,
                                 scale-up manufacturing, registration and verification
                                 batches manufacturing, and commercial manufacturing
                                 of medicines, especially innovative drugs.
                        Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
QA                        refers to   Quality Assurance (department)
ADC                       refers to   Antibody-Drug Conjugates
EBD                       refers to   Energy-based device
license-in                refers to   Product license introduction
license-out               refers to   Product External License Authorization
BD                        refers to   Business Development
EHS                       refers to   Environment, Health, and Safety Management System
MRCT                      refers to   Multi-regional Clinical studies
ESG                       refers to   Environmental, Social and Governance
                                      Over The Counter, i.e. medicines published by the
                                      medical products administration under the State Council
OTC                       refers to   and purchased and used by consumers at their discretion
                                      without the prescription of practicing doctors or
                                      assistant practicing doctors.
PFS                       refers to   Progression-free survival
DTP                       refers to   Direct to Patient
                                      Computer-Aided Drug Design, a drug design method
CADD                      refers to
                                      based on computer technology.
                                      Artificial Intelligence-Driven Drug Design, a method
                                      that applies Artificial Intelligence (AI) technology for
                                      drug development. In AIDD, AI algorithms are utilized
AIDD                      refers to
                                      to analyze large-scale molecular structure data, helping
                                      to predict intermolecular interactions and their
                                      therapeutic effects on diseases.
GLP-1                     refers to   Glucagon-like Peptide-1
                                      Drugs that can only be purchased and used with a
Prescription Drugs        refers to
                                      prescription issued by a physician
                                      Real World Research/Study, RWR/RWS, which involves
                                      collection of data related to patients in the real world
RWR/RWS                   refers to   environment (real world data) and analysis to obtain the
                                      use value of medical products and clinical evidence of
                                      potential benefits or risks(real world evidence).
                                      National Reimbursement Drug List for Basic Medical
                                      Insurance (2025)
Reporting period          refers to   From January 1, 2026 to June 30, 2026
                                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
           Section II Company Profile and Key Financial Indicators
I. Company profile
 Stock name (abbreviation)           Huadong Medicine                Stock code                       000963
 Stock listed on                     Shenzhen Stock Exchange
 Company name in Chinese             Huadong Medicine Co., Ltd.
 Company name in Chinese
                                     Huadong Medicine
 (abbreviation, if any)
 Company name in English (if
                                     HUADONG MEDICINE CO., LTD
 any)
 Company name in English
                                     HUADONG MEDICINE
 (abbreviation, if any)
 Legal representative of the
                                     Lv Liang
 Company
II. Contact persons and contact information
                                                  Secretary of the Board of Directors         Securities affairs representative
 Name                                           Chen Bo                                   Hu Shufen
                                                New Office Building of Huadong            New Office Building of Huadong
                                                Medicine, No. 858, Moganshan Road,        Medicine, No. 858, Moganshan Road,
 Contact address
                                                Gongshu District, Hangzhou City,          Gongshu District, Hangzhou City,
                                                Zhejiang Province                         Zhejiang Province
 Tel.                                           0571-89903300                             0571-89903300
 Fax                                            0571-89903366                             0571-89903366
 Email address                                  ir@eastchinapharm.com                     ir@eastchinapharm.com
III. Other information
Whether the Company's registered address, office address and its postal code, website, or email address have changed during the
reporting period
Applicable □Not applicable
                                                                     Floors 4/7, No. 439, Zhongshan North Road, Gongshu District,
 Registered address of the Company
                                                                     Hangzhou City, Zhejiang Province
 Postal code of registered address                                   310006
                                                                     New Office Building of Huadong Medicine, No. 858,
 Office address of the Company                                       Moganshan Road, Gongshu District, Hangzhou City, Zhejiang
                                                                     Province
 Postal code of office address                                       310011
 Company website                                                     www.huadongmedicine.com
 Email address of the Company                                        ir@eastchinapharm.com
 Query date of the temporary announcement on the designated
                                                                     August 18, 2026
 website (if applicable)
                                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
 Query index of the temporary announcement on the designated
                                                                     www.cninfo.com.cn
 website (if applicable)
Has the information disclosure and storage location changed during the reporting period?
□Applicable Not applicable
The stock exchange website and media names and URLs where the Company discloses its semi-annual reports, as well as the
storage location of the semi-annual reports, remained unchanged during the reporting period. For details, please refer to the 2025
Annual Report.
Has any other relevant information changed during the reporting period?
□Applicable Not applicable
IV Key accounting data and financial indicators
Whether the Company needs to perform a retroactive adjustment or restatement of previous accounting data
□Yes No
                                                                                                        Increase or decrease during
                                                                                                        the current reporting period
                                      Current reporting period            Same period last year
                                                                                                          compared with the same
                                                                                                             period of last year
 Operating revenue (RMB)                       22,066,646,185.69                 21,674,928,965.21                            1.81%
 Net profits attributable to
 shareholders of the listed                     1,860,757,262.42                  1,814,826,860.86                            2.53%
 company (RMB)
 Net profits attributable to
 shareholders of the listed
 company after deduction of                     1,857,546,440.75                  1,761,734,255.98                            5.44%
 non-recurring profit and loss
 (RMB)
 Net cash flow from operating
 activities (RMB)
 Basic earnings per share
 (RMB/share)
 Diluted earnings per share
 (RMB/share)
 Weighted average return on
 equity
                                                                                                         Increase or decrease at the
                                    End of the current reporting                                        end of the current reporting
                                                                           End of the last year
                                               period                                                  period compared with the end
                                                                                                               of the last year
 Total assets (RMB)                            39,975,481,755.81                 39,038,036,320.92                            2.40%
 Net assets attributable to
 shareholders of the listed                    25,441,362,923.69                 24,811,339,992.99                            2.54%
 company (RMB)
                                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
The Company's total share capital as of the trading day prior to disclosure:
 The Company's total share capital as of the trading day prior to
 disclosure (shares)
Fully diluted earnings per share based on the latest share capital
 Preferred dividends paid                                                                                                           0.00
 Paid perpetual bond interest (RMB)                                                                                                 0.00
 Fully diluted earnings per share based on the latest share capital
 (RMB/share)
V. Differences in accounting data under domestic and foreign accounting standards
Chinese accounting standards
□Applicable Not applicable
There are no differences in net profit and net assets disclosed in financial statements under international and Chinese accounting
standards during the reporting period.
accounting standards
□Applicable Not applicable
There are no differences in net profit and net assets disclosed in financial statements under overseas and Chinese accounting
standards during the reporting period.
VI. Items and amounts of non-recurring profit and loss
Applicable □Not applicable
                                                                                                                            Unit: RMB
                     Item                                       Amount                                       Description
 Profits/losses on disposal of non-current
 assets (including the written-off part of
 the accrued impairment provision of
 assets)
 Government grants included in the
 current profits and losses (except those
 that are closely related to the normal
 business operation of the Company,                                                           For details of government grants, please
 comply with national policies and                                        50,634,330.21       refer to XI of the Notes to these financial
 regulations, are enjoyed in accordance                                                       statements.
 with the defined criteria, and have a
 lasting impact on the Company's profits
 and losses)
 Profits and losses caused by fair value
 changes in financial assets and financial
                                                                           -2,119,166.93
 liabilities held by non-financial
 enterprises, and profits and losses arising
                                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
 from the disposal of financial assets and
 liabilities, excluding the effective
 hedging business related to the normal
 business operation of the Company
 Other non-operating revenue and                                                             For details of non-operating expenses,
 expenses other than those mentioned                                      -46,881,439.62     please refer to VII (74, 75) of the Notes
 above                                                                                       to this financial report
 Less: Amount affected by income tax                                       -2,829,609.80
       Amount affected by minority
 interests (after tax)
 Total                                                                      3,210,821.67
Details of other profit and loss items conforming to the definition of non-recurring profits and losses
□Applicable Not applicable
There are no other profit and loss items that meet the definition of non-recurring profits and losses
Explanation for recognizing an item listed as a non-recurring profit and loss in the Interpretative Announcement No. 1 on
Information Disclosure Criteria for Public Listed Companies - Non-Recurring Profits and Losses as an item of recurring profit and
loss
□Applicable Not applicable
The Company did not recognize any item of non-recurring profit and loss items listed in the Interpretative Announcement No. 1 on
Information Disclosure Criteria for Public Listed Companies - Non-Recurring Profits and Losses as an item of recurring profit and
loss.
                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
             Section III Management's Discussion and Analysis
I. Main business of the Company during the reporting period
    (I) Main business of the Company
    Founded in 1993 and headquartered in Hangzhou, Zhejiang Province, Huadong Medicine Co.,
Ltd. (stock code: 000963) was listed on Shenzhen Stock Exchange in December 1999. With its
businesses covering the entire pharmaceutical industry chain thanks to over 30 years of vigorous
development, the Company has now fostered four major business segments of pharmaceutical
industry, pharmaceutical distribution, aesthetic medicine and industrial microbiology, and has been
a large comprehensive listed pharmaceutical enterprise specialized in pharmaceutical R&D,
production, and marketing.
    The Company's pharmaceutical industry segment focuses on the R&D, manufacturing and
sales of medicines for specialty care, chronic diseases and special indications. Its core product
portfolio covers key therapeutic areas, including chronic kidney disease, immunology, oncology,
endocrinology, digestive diseases and cardiovascular diseases. The Company also has multiple first-
line medicines with strong market positions in China, giving it strong brand advantages and a
diversified, multi-tiered product portfolio. Through in-house development, external in-licensing and
project collaboration, the Company puts its emphasis on innovative drug R&D efforts on three core
therapeutic areas: endocrinology, autoimmunity and oncology. It has established a differentiated and
well-structured pipeline spanning the full R&D lifecycle, with nearly 100 innovative drug
candidates in development. At present, the Company's innovative drug R&D pipeline is gradually
translating into commercial products. Nearly 20 in-house-developed or externally introduced
products have been launched and commercialized, while more than 10 additional products are
undergoing regulatory review. The contribution of innovative products to total revenue has
continued to increase. In addition, the Company has set up a comprehensive pharmaceutical
manufacturing system with international capabilities. Multiple products have obtained regulatory
registrations and approvals in international markets. The Company is deeply integrated into the
global innovation ecosystem, maintains R&D collaborations with multiple international innovative
pharmaceutical companies, and has established strategic product partnerships in the Chinese market
with a number of multinational pharmaceutical companies.
    The Company's pharmaceutical distribution segment focuses on three core businesses:
pharmaceuticals, medical device, and herbal decoction pieces. Leveraging a specialized logistics
                                            Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
system with strengths in cold-chain products, specialty drugs, and vaccines, together with the
synergies generated by its proprietary-brand e-commerce platforms, the Company has developed
strong integrated omnichannel marketing capabilities. Its business scale and market share rank
among the industry leaders in Zhejiang Province, giving it a solid competitive position. The
Company has ranked among China's top 10 pharmaceutical wholesalers for many consecutive years.
The Company continues to strengthen its core market in Zhejiang Province, with Hangzhou, Jinhua
and Wenzhou serving as its three core supply chain hubs. It operates 13 regional warehouses, with a
total warehousing area of more than 190,000 m², and has established an integrated multi-warehouse
smart logistics network covering Zhejiang Province. The pharmaceuticals business provides full
product-category and omnichannel coverage, promoting coordinated development across in-hospital
and out-of-hospital channels and integrating distribution and agency operations. The medical device
business of the Company continues to expand beyond large-scale distribution into specialized
product agency and value-added supply chain services. The herbal decoction pieces business of the
Company covers the entire value chain, from cultivation at production bases and the processing and
preparation of decoction pieces to smart decoction services and sales of proprietary-brand products
through end-user channels, thereby creating a complete business loop from the field to clinical end
markets. The Company regards service innovation as a core driver of its development. By
integrating supplier collaboration, specialized CSO services, SPD-based (Supply, Processing,
Distribution-based) in-hospital supply chain operations, and resources across industry, academia
and research, the Company provides customized, comprehensive supply chain solutions to upstream
and downstream customers and partners, steadily advancing toward its strategic goal of becoming a
trusted comprehensive pharmaceutical services provider.
    In the field of aesthetic medicine, the Company adheres to the strategy of "global operational
layout and dual-circulation business development", with innovation as a core driver of its
development. With a global perspective and forward-looking strategic planning, the Company has
developed a comprehensive and differentiated product portfolio. Both the number of products and
the breadth of fields covered rank among the industry leaders, with more than 30 products launched
in China and overseas and nearly 20 globally innovative products in development. The Company
integrates multiple dimensions, including "non-invasive + minimally invasive" technologies, "facial
+ body" treatment areas, and "injectables + energy-based device." Its injectable product portfolio
achieves full coverage across three major categories—regenerative products, hyaluronic acid
products and botulinum toxin—while maintaining differentiated development pipelines. Through
innovation in source materials, formulation technologies, product categories and application
scenarios, the Company has established strong competitive barriers and provides consumers seeking
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
aesthetic enhancement with precise, personalized and highly effective one-stop aesthetic solutions.
The Company is committed to becoming a leading global provider of comprehensive aesthetic
medicine solutions. The Company operates multiple R&D centers and manufacturing bases
worldwide. Its product portfolio includes injectable regenerative fillers, botulinum toxin, hyaluronic
acid, chitosan, ECM collagen and facial lifting threads. The Company is also conducting R&D and
expanding its energy-based aesthetic medical device business in global markets.
     The Company's industrial microbiology business focuses on two major areas: the application
of synthetic biology technologies and innovation and development in biopharmaceuticals. It has
strategically developed four core business segments: xRNA raw materials, specialty APIs and
intermediates, massive health products and biomaterials, and animal health. Building on more than
cluster comprising three core platforms: a synthetic biology R&D platform, an industrial
microbiology R&D platform, and a synthetic chemistry R&D platform. The Company possesses
key technologies covering the entire microbial engineering value chain and has established an R&D
and manufacturing system spanning the full lifecycle of microbial medicines. It has also developed
interdisciplinary R&D platforms and a global network of industrialization resources. On the
industrialization front, the Company operates seven major industrialization bases in a coordinated
manner, including the Hangzhou Xiangfuqiao Base, Qiantang New Area, Jiangsu Jiuyang, Hubei
Magic Health, Anhui Meihua, Wuhu Huaren and HD Animal Health. The Company has the largest
single fermentation workshop in Zhejiang Province and industry-leading intelligent production
systems. Its operations cover the entire process from strain screening and process development
through pilot-scale scale-up to large-scale commercial production, creating a closed-loop
manufacturing ecosystem encompassing technology R&D, engineering scale-up and quality control.
Its fermentation capacity and process technology capabilities have consistently remained at the
forefront of the domestic industry.
     (II) Overview of company operations during the reporting period
     In the first half of 2026, the international situation became increasingly turbulent, with the
global economy undergoing deep differentiation amid complex geopolitical dynamics and
restructuring of the global trade landscape. Energy price fluctuations and recurring inflation
persisted, while the global supply chain landscape continued to adjust. Global economic growth
momentum remained insufficient, and the recovery continued to stay under pressure. Facing an
increasingly complex and challenging domestic and international environment, China's economy
withstood the pressure and maintained steady growth. Macroeconomic policies continued to take
effect, effectively addressing various external shocks and internal difficulties. China's GDP grew by
                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
showing a development trend of new growth drivers and an improving economic structure. China's
pharmaceutical industry is also at a critical stage of structural transformation, with regulatory
policies for pharmaceutical and medical device being frequently updated and the industry regulatory
system continuing to improve. The industry faces both opportunities and challenges. Enterprises
must seize the development opportunities arising from the international expansion of innovation
and the upgrading of consumer healthcare, while also facing multiple pressures at the policy, market,
and compliance levels.
     In the first half of 2026, the Company centered its efforts on its overall strategic plan and
closely aligned them with its annual operating targets, integrating risk management and response, as
well as value creation, throughout the entire business management process. The Company
comprehensively advanced the implementation of its "innovation-driven, resource integration, and
full-domain synergy" strategy, building core competitive advantages through R&D innovation,
optimizing its business layout through the integration of internal and external resources, and
leveraging synergies across all business segments to enhance overall competitiveness. The
Company regarded the expansion of "new markets, new products, new organizational structures,
and new capabilities" as the key to breaking through. For new markets, the Company consolidates
its domestic business base while steadily advancing its international footprint. For new products, it
focuses on key therapeutic areas and consumer medical segments, accelerating pipeline project
progression and commercialization. In terms of new organization, the Company continuously
optimizes its organizational structure and reengineers business processes to improve operational
efficiency. For new capabilities, it strengthens the development of core competencies including
R&D, compliance, commercial operations, and global business management. All employees of the
Company have united to overcome challenges, delivered results under pressure, balanced business
growth with compliance and risk control, and fully ensured that core tasks in R&D,
commercialization, market expansion, internal control and compliance are carried out in an orderly
manner as scheduled, consolidating the fundamental business base.
     During the reporting period, all business segments of the Company tapped into growth
opportunities, with core businesses maintaining stable performance. R&D and innovation advanced
steadily, and the innovative product pipeline continued to expand. Organizational efficiency kept
improving, and operation management was continuously optimized, driving overall operational
management to achieve higher quality and efficiency, and the Company met its phased key business
targets.
     In the first half of 2026, the Company recorded an operating revenue of RMB 22.067 billion,
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
representing a YoY increase of 1.81%. The net profit attributable to shareholders of the listed
company reached RMB 1.861 billion, up 2.53% YoY. Net profit attributable to shareholders of the
listed company excluding non-recurring profit and loss stood at RMB 1.858 billion, with a YoY
increase of 5.44%. The net cash flow generated from operating activities during the reporting period
was RMB 2.499 billion, up 1.73% YoY. The operating cash inflow remained in good shape,
demonstrating robust earnings quality and overall stable business performance of the Company.
during the reporting period
     (1) Pharmaceutical industry segment
     During the reporting period, the core subsidiary Zhongmei Huadong sustained a steady upward
business momentum with continuously improving operating quality. It recorded an operating
revenue of RMB 7.969 billion (including CSO business), representing a YoY increase of 8.92%.
The net profit attributable to parent company reached RMB 1.74 billion, up 10.12% YoY. The non-
recurring gains and losses excluded net profit attributable to parent company was RMB 1.725
billion, with a YoY increase of 13.35%, and the return on equity stood at 12.13%.
     Specifically, in the second quarter, it recorded an operating revenue of RMB 3.92 billion, up
YoY increase of 9.76%. The non-recurring gains and losses excluded net profit attributable to parent
company was RMB 808 million, with a YoY increase of 15.84%.
     Leveraging its leading R&D system and core technology platforms, the Company has built a
diversified portfolio of innovative products. In the oncology field, it boasts major products such as
Elahere (Mirvetuximab Soravtansine Injection), CAR-T product Zevor-cel (Zevorcabtagene
Autoleucel Injection), PARP inhibitor Paishuning (Senaparib Capsules), and Mairuidong
(Mifanertinib Maleate Tablets). In the endocrinology field, it possesses core varieties such as
Nesina (Alogliptin Benzoate Tablets), Liluping (Liraglutide Injection), and Huiyoujing
(Ganagliflozin    Proline   Tablets).    In    the     autoimmunity           field,     it    has      deployed
Sailexin/Saijiening(Ustekinumab Injection/Ustekinumab Injection(Intravenous Infusion)). In the
gastroenterology field, it launched Xinlian (linaprazan glurate Capsules). Meanwhile,
MediBeacon TGFR, the world's first bedside renal function precision monitoring and evaluation
product suitable for patients with normal or impaired renal function, has officially entered the
commercialization promotion stage, creating a differentiated and innovative competition barrier.
     During the reporting period, previously approved innovative products entered a phase of
scaled-up commercial sales, while newly commercialized products provided additional revenue
contributions, driving the rapid expansion of the innovative product business. Total revenue from
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
sales and agency services amounted to RMB 1.684 billion, representing a YoY increase of 52% and
accounting for 21.14% of the operating revenue of the pharmaceutical industry segment (including
CSO business). The innovative business has become the core engine driving growth in the
pharmaceutical industry segment.
     Since its launch, the CAR-T therapy Zevorcabtagene Autoleucel Injection (trade name: Zevor-
cel) has demonstrated strong market expansion momentum, with its clinical safety and efficacy
receiving positive evaluations. In the first half of 2026, medical institutions that had completed the
certification and filing procedures for Zevor-cel covered more than 20 provinces and municipalities
nationwide. During this period, the Company placed 110 valid orders with its partner, CARsgen
Therapeutics. At the same time, the Company continued to strengthen its product access system and
accelerate efforts to establish mechanisms to ensure patients' access to treatment. The product has
now been successfully included in the Commercial Health Insurance Innovative Drug List. As of
the date of the Report, more than 100 Huiminbao programs (a city-specific supplemental medical
insurance program) and various commercial health insurance products across the country have
included Zevor-cel in their reimbursement coverage, effectively reducing patients' treatment costs
and enhancing the accessibility and inclusiveness of high-end innovative therapies. Looking ahead,
as the Company's nationwide medical channel network continues to improve, coverage of
Huiminbao programs and commercial health insurance continues to expand across regions, and
access policies are progressively implemented, the market penetration and industry influence of
Zevor-cel are expected to increase further, and the product is expected to maintain its growth
momentum.
     Following its inclusion in the updated National Reimbursement Drug List (NRDL),
Huiyoujing (Ganagliflozin Proline Tablets), the Category 1 innovative drug intended for diabetes,
has seen the pharmaceutical service promotion team of Zhongmei Huadong make active efforts for
hospital access. It is now listed in more than 2,400 tiered hospitals, laying a solid foundation for
subsequent rapid market growth. Additionally, multiple national and regional large-scale clinical
trials have been conducted, including real world studies (RWS) and various clinical studies on
complication/comorbidity in patients with type 2 diabetes mellitus (T2DM). In product promotion,
effective synergy has been achieved by sharing resources with Metformin Hydrochloride and
Empagliflozin Tablets (Enshuangping), consolidating the Corporation's core competitiveness in the
SGLT-2 inhibitor segment for diabetes. The YoY growth rate of sales revenue in the 2026 half-year
period exceeded 900% (the first quarter of 2025 was the first sales quarter after the product was
included in the National Reimbursement Drug List).
     Elahere (Mirvetuximab Soravtansine Injection), recognized as the world's first and currently
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
the sole FRα-targeted Antibody-Drug Conjugate (ADC) drug approved for the treatment of
platinum-resistant ovarian cancer, was officially launched for commercial sale in China in
November 2025. The Company is diligently and expeditiously advancing its market access
endeavors. By the end of the first half of this year, Elahere has completed the network listing in 31
provinces, with over 300 hospitals that have issued prescriptions, covering more than 400 medical
institutions and over 200 DTP pharmacies. Currently, Elahere has also been successfully
incorporated in multiple Huiminbao programs (city-specific supplemental medical insurance
programs) and commercial insurance programs, such as Beijing Inclusive Medical Insurance
Program, Shanghai Hu Hui Bao Insurance, Jiangxi Ganhuibao, Leshan Huijiabao, and Shaanxi
Universal Health Insurance. Since its official domestic commercial launch in the Q4 of 2025,
Elahere recorded sales of approximately RMB 90.49 million in the first half of 2026.
     Senaparib Capsules (Paishuning), a novel PARP inhibitor exclusively promoted by the
Company in Chinese mainland, was approved for market launch in January 2025 and was
successfully included in the National Reimbursement Drug List for Basic Medical Insurance, Work-
related Injury Insurance, and Maternity Insurance in December 2025, indicated for first-line
maintenance treatment of ovarian cancer (OC). As of June 30, 2026, Senaparib Capsules had been
launched in all provinces across Chinese mainland, secured access to more than 380 specialty and
community pharmacies, and reached nearly 1,200 medical institutions. Following its inclusion in
the National Reimbursement Drug List, the product's sales volume continued to increase, and its
sales revenue in the first half of 2026 increased significantly compared with the same period in
     In May 2026, the Marketing Authorization Application (MAA) and supplemental application
for Sailexin/Saijiening for Crohn's disease (CD) were approved. Since its launch,
Sailexin/Saijiening has continued to demonstrate strong market performance. The pharmaceutical
services team has deeply explored the product's outstanding advantages in terms of ease of use,
drug safety, and accessibility under medical insurance reimbursement. By leveraging shared
resources and close collaboration with the Corporation's existing autoimmune product line, it has
established effective synergies. To date, over 2,000 hospitals have prescribed the product, with
market sales gradually increasing. Through initiatives such as soliciting outstanding case studies,
launching public welfare science popularization projects, organizing multi-level and multi-
dimensional online and offline academic seminars, and conducting nationwide multi-center real-
world studies (RWS), the Company has expanded the product influence and optimized the concept
of clinical medication. Sailexin/Saijiening is expected to become a new core product in the
Corporation's autoimmune disease field. The domestic sales revenue (including value-added tax) of
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Sailexin/Saijiening in the first half of 2026 exceeded RMB 300 million, surpassing the full-year
figure for 2025 and representing a YoY increase of more than 100%.
     The transcutaneous glomerular filtration rate measurement system (TGFR System) is the
world's first innovative drug-device combination product for real-time point-of-care assessment of
renal function. It consists of the first-in-class innovative drug, Relmapirazin Injection (MB-102),
and the supporting transcutaneous glomerular filtration rate (TGFR) measurement equipment, and
has been approved for marketing in China as a complete drug-device combination. During the
reporting period, the Company actively expanded its medical device sales and promotion team, and
advanced the market access and commercialization of MediBeacon TGFR in China. In June 2026,
Relmapirazin (MB-102), as a fluorescent tracer, was included for the first time in the Chinese
Clinical Practice Guideline for Screening, Diagnosis and Treatment of Chronic Kidney Disease
(2026 Edition). Among the mGFR (measured glomerular filtration rate) testing methods specified in
the guideline, it is the only technology system that uses a non-invasive testing method and enables
point-of-care monitoring, providing a new option for precise clinical assessment of renal function.
In July 2026, Relmapirazin Injection and the TGFR technology were included in the Expert
Consensus on Assessment and Diagnosis of Acute Kidney Injury in Elderly Patients with
Comorbidities in China. To date, consumables of MediBeacon TGFR have been listed in 25
provinces, while Relmapirazin Injection has been listed in 29 provinces.
     In the field of gastrointestinal drugs, the Class 1.1 innovative drug, Linaprazan Glurate
Capsules (Xinlian), for which the Company holds exclusive commercialization rights, is a new-
generation potassium-competitive acid blocker (P-CAB). It has been approved for the treatment of
reflux esophagitis, while Phase III clinical trials in China for the indications of "duodenal ulcer" and
"treatment of Helicobacter pylori infection in combination with antibiotics" are also underway.
Linaprazan Glurate Capsules were successfully included in the National Reimbursement Drug List
for Basic Medical Insurance, Work-related Injury Insurance, and Maternity Insurance (2025) in
December 2025 and has been included in the "New and High-Quality Drugs and Devices" Product
Catalogue of Shanghai's biomedical industry. During the reporting period, the Company continued
to advance the market access of Xinlian to improve access to clinical treatment. It also conducted
patient education and provided educational resources on medication use to help patients develop a
sound understanding of medication use and use medicines in a standardized and rational manner. By
the end of the reporting period, Xinlian had covered 25 provinces and municipalities across China
and more than 900 hospitals of various grades, with sales volume growing rapidly.
     The Company's innovation-driven transformation strategy continues to be implemented and
deepened, and the Company has entered a critical stage in which pipeline achievements are being
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realized on a larger scale and commercial value is being unlocked at an accelerating pace. The
innovative product portfolio continues to expand and diversify, the clinical value of innovative
products continues to be validated, and the Company's commercialization capabilities continue to
strengthen and mature, laying a solid foundation for high-quality growth in the Company's medium-
and long-term performance.
     During the reporting period, the General Pharmaceutical Service Subsidiary of Zhongmei
Huadong adhered to the core philosophy of "Innovation, Professionalism, Service", adopted
"solving problems and creating value" as the guiding principles for management assessment, and
continuously adapted its operations to changes in the pharmaceutical industry's policy and market
environment. The Company continued to upgrade and enhance its digital systems for
pharmaceutical services and marketing, fully enhancing its capabilities in product academic
promotion and patient services, and achieved solid results in business model transformation and
efficiency improvement. By focusing deeply on targeted therapeutic segments, continuously
extending channel coverage into lower-tier and grassroots markets, and implementing refined and
differentiated promotional strategies, the Company continuously enhanced the market penetration
of its core competitive products, expanded coverage of medical institutions at all levels, and
consolidated and strengthened its competitive position in key areas.
     At the market strategy level, the Company continued to improve its comprehensive omni-
channel strategy, driving coordinated growth across multiple markets, including in-hospital, out-of-
hospital, grassroots and retail markets. In the in-hospital market, the Company strengthened its core
business base by leveraging the solid clinical value of its products and professional academic
services. On the one hand, it fully tapped the growth potential of mature key products; on the other
hand, it strengthened its academic marketing system, accelerating hospital access, clinical education
and prescription conversion for innovative products. Leveraging its increasingly diversified
innovative product portfolio, the Company is able to provide more individualized and standardized
comprehensive treatment solutions for patients with different disease courses and characteristics. In
the out-of-hospital and primary healthcare markets, the Company closely aligned with policy
priorities concerning tiered diagnosis and treatment and the strengthening of grassroots healthcare
capacity, continued to strengthen and expand its network of partnerships for grassroots healthcare
services, and deepened its reach across community, county-level and township medical institutions.
Through diversified academic education and public outreach initiatives and commercial cooperation,
the Company continued to enhance market awareness of innovative drugs and improve patient
access to medicines. In the retail market, the Company continued to strengthen its multi-channel
presence across online platforms, OTC markets and DTP specialty pharmacies. In the online
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segment, it worked with mainstream e-commerce platforms to optimize the entire medication
purchasing process, providing patient education and awareness initiatives, targeted access to
pharmaceuticals information and convenient medication purchasing services. In the OTC segment,
it strengthened brand building, integrated media communications and retail sell-through initiatives,
and continuously increased its market share at the retail level. Meanwhile, the Company continued
to refine its regional market management mechanisms and KA management system, remained
guided by medical expertise and driven by academic promotion, and strengthened the market
competitiveness of its products. The Company maintains continuous collaboration with scientific
research institutes, colleges and universities at home and abroad, and advances post-marketing real-
world studies and evidence-based medicine exploration for new indications around its core products,
to accumulate more clinical evidence and support further expansion of the product's clinical
application scenarios. At the organizational level, the Company continues to deepen organizational
transformation and process optimization, adheres to the parallel approach of in-house talent
cultivation and high-end external talent recruitment, and consistently builds a talent echelon of
pharmaceutical services that is youthful, specialized and highly execution-oriented, so as to provide
solid organizational and talent support for the sustained commercialization of innovative products.
     During the reporting period, the Company's R&D investment in the pharmaceutical industry
segment (excluding equity investment) amounted to RMB 1.208 billion, representing a YoY
decrease of 18.58%, among which the direct R&D expenditure reached RMB 1.062 billion, down
Company's innovative drug R&D center is advancing the development of 96 innovative drugs
pipeline programs, with multiple positive results achieved in the first half of 2026. For details,
please refer to the "(III) R&D situation" section below.
     (2) Pharmaceutical distribution segment
     In the first half of 2026, affected by multiple external factors including continuously tightened
medical insurance cost control and pressure on terminal medical consumption, the pharmaceutical
distribution industry has entered a transformation cycle focused on quality and efficiency
improvement, and the profitability pressure of the traditional distribution model has intensified.
Against this backdrop, the Company's pharmaceutical distribution segment adheres to the dual-track
advancement of in-hospital and out-of-hospital businesses, giving consideration to both business
scale expansion and internal operational efficiency improvement. Through proactive business
structure adjustment and internal mechanism innovation, the segment effectively hedges the
operational pressure brought by the external environment and achieves overall stable performance.
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During the reporting period, the pharmaceutical distribution segment recorded an operating revenue
of RMB 14.182 billion, representing a YoY increase of 1.68%, and a net profit of RMB 233 million,
up 3.02% YoY.
     During the reporting period, the segment closely followed the kick-off theme of the Company's
of "preserving existing business, driving incremental growth, and improving labor efficiency", to
accelerate the transformation from scale-driven growth to value creation. By delivering integrated
comprehensive services covering market access, government affairs, channels, sales and supply
chain to upstream industrial clients, the Company deepens industrial collaboration and jointly builds
an industrial value ecosystem. On the premise of stabilizing the fundamental business base, the
segment actively explores new businesses, new markets and new models, so as to consolidate the
business foundation for the Company's strategic goal of becoming a "comprehensive
pharmaceutical services provider".
     The segment consolidates its performance base with professional supply chain and
pharmaceutical service capabilities. In the in-hospital segment, it deepened strategic cooperation
with tertiary hospitals, delivered optimized pharmaceutical management and refined supply chain
solutions to consolidate existing distribution shares; it also continuously expanded coverage to
secondary hospitals and primary medical markets, optimized staffing and product mix, and filled
the business gaps in primary markets. In the out-of-hospital segment, it accelerated business
deployment. The self-operated retail business of the Company adhered to the principle of quality
priority. The Company focused on developing hospital-affiliated stores and DTP pharmacies,
strengthened project access review and store operation control, and built a benchmark for
professional pharmaceutical services. New subsidiaries dedicated to pharmaceuticals and
international trade were established, focusing on out-of-hospital market and non-pharmaceutical
business expansion respectively, to further expand the national distribution scale and enrich the
supply of non-pharmaceutical categories. In terms of operation management, the Company focused
on key operational indicators such as inventory turnover and accounts receivable control, improved
the performance appraisal system for personnel efficiency and departmental operational efficiency,
and drove the transformation of traditional distribution business toward lean and efficient operations.
     Breaking through the framework of traditional pharmaceutical distribution business, the
Company vigorously promoted business model innovation and actively cultivated the second
growth curve. The product agency business focused on three major directions: specialty chemical
pharmaceutical, blood product, and innovative medical device. Based in Zhejiang and radiating to
other provinces, the Company strives to build a leading regional CSO service brand. The third-party
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logistics business took high-barrier segments such as cold chain, specialty drugs and
radiopharmaceuticals as the breakthrough points, continuously upgraded software and hardware
capabilities, and built a nationwide professional delivery network. Meanwhile, by linking internal
segment resources such as aesthetic medicine and industrial microbiology, the Company actively
entered emerging tracks such as medical aesthetics and animal health. Relying on the national
distribution business of key products including recombinant botulinum toxin, the Company built a
cross-regional organizational structure, commercialization model and academic promotion system,
and substantially advanced the development strategy of "going beyond Zhejiang Province".
     The Company aligned business iteration and upgrading with organizational transformation,
completed the integration of medical device business, established a medical device business unit,
and set up specialized subsidiaries targeting the out-of-hospital and non-pharmaceutical markets.
It accelerated the iteration and upgrading of information systems, promoted integrated intelligent
management and control across business, material flow, retail, and operations. It continuously
upgraded the national supply chain system, strengthened cross-regional cold chain delivery
capabilities, and provided solid support for business expansion outside Zhejiang. The human
resources and financial systems deepened group-wide management and control around the goals
of "improving personnel efficiency, reducing costs and controlling expenses", optimized the
resource allocation structure, and escorted the high-quality and sustainable growth of the segment.
     (3) Aesthetic medicine segment
     In the first half of 2026, the global macroeconomic environment presented a complex and
volatile operating landscape, while the domestic pharmaceutical health and aesthetic medicine
consumer industries as a whole entered a stage of in-depth structural adjustment. Multiple pressures
continue to superimpose on the domestic aesthetic medicine industry: the recovery pace of terminal
consumption remains slow, industry regulation continues to tighten and compliance standards keep
escalating. Meanwhile, the supply of injectable medical aesthetics products continues to expand,
leading to normalized price-driven cutthroat competition. The overseas market, on the other hand, is
disturbed by multiple factors such as weak household consumption willingness, geopolitical
fluctuations and exchange rate volatility, resulting in overall pressured operating environment.
     During the reporting period, the Company's aesthetic medicine segment (excluding inter-
segment elimination) recorded a total operating revenue of RMB 651 million, representing a YoY
decrease of 41.43%. Specifically, the domestic aesthetic medicine business revenue reached RMB
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million, representing a YoY decrease of 36.59%. The Company believes that the current phased
performance fluctuation of its aesthetic medicine business is not only an objective reflection of the
industry as a whole entering an in-depth adjustment cycle, but also an inevitable stage for the
Company to proactively promote strategic adjustment and upgrading, restructure the growth logic
of the segment and accumulate momentum for recovery. It falls under the category of phased
growing pains in the process of enterprise value reconstruction and capability iteration.
     Facing the phased operational challenges, the Company adhered to the development goal of
becoming a globally leading aesthetic medicine enterprise, upheld long-termism, deeply focused on
innovation, and continuously promoted the optimization and integration of business systems at
home and abroad.
     Overseas market: In the first half of 2026, the overall organizational structure adjustment of
the overseas aesthetic medicine business was completed. By integrating the functional teams of
subsidiaries under Sinclair, streamlining business links, implementing flat management,
empowering overseas businesses with domestic R&D, quality and supply chain capabilities, the
Company optimized the global channel layout, deeply cultivated core European markets, expanded
emerging regions, accelerated the overseas registration and commercialization of innovative
products, and consolidated the foundation of global operation.
     Domestic market: The Company carried out the reform of organizational and marketing
systems to realize multi-category synergy across injectable fillers, botulinum toxin and energy-
based device. It optimized the channel structure, continuously promoted the dual-channel
construction of public hospitals and private institutions, scaled up academic education for
physicians and standardized clinical promotion, and drove the transformation of the business from
extensive expansion to high-quality operation.
     In terms of product pipelines, a number of heavyweight new products were approved for
marketing during the reporting period, achieving full coverage of core tracks including regenerative
fillers, botulinum toxin, hyaluronic acid filler and energy-based device. Domestically, Retoxin, the
world's first Recombinant Botulinum Toxin Type A containing only 150KD core protein, Ellansé
M, the first imported regenerative material in China approved for the temporal region (temple)
indication, and the multi-functional skin therapy device V30 were successively approved for
marketing. As of the end of June 2026, Retoxin has established cooperation with more than 1,600
hospitals. The Company's Ellansé series — Zhenyan, Jinyan and Zhizhen have entered nearly
with strategic partners. MaiLi Extreme (MaiLi Extreme Shuoying), originating from
Switzerland and equipped with the first-in-class OxiFree (oxygen-free) crosslinking technology,
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has entered over 100 institutions across the country with continuously improving market
recognition. The number of cooperative institutions for energy-based devices including Glacial Spa,
Reaction and Renotion has steadily climbed to more than 500, and Glacialspa Glacial Spa
exceeded its semi-annual target.
     In terms of academic promotion, Sinclair carried out 311 offline medical trainings in the first
half of the year, covering more than 4,000 physician visits. The online physician platform recorded
over 180,000 views, and a total of 42 academic papers covering all products have been published.
The construction of public hospital channels continues to advance. The classic version of Ellansé
has successfully entered key public hospitals nationwide. MaiLi Extreme completed network
listing and price adjustment in 23 provinces, and carried out more than 20 public hospital physician
trainings, covering nearly 500 physician attendances.
     Important progress has also been made in the Company's overseas aesthetic medicine pipelines.
Kytogen Defend, the non-animal-derived chitosan product, obtained the EU MDR CE certification
in August 2026, further enriching the injectable product matrix. Meanwhile, the in-development
pipelines are advancing steadily, with continuous layout in next-generation regenerative materials,
skin repair, energy-based device and other directions to guarantee the supply of medium and long-
term product iteration. The Company insists on returning to the essence of medical treatment,
continuously enhances the professional influence on B-end institutions and C-end brand awareness,
and builds a brand image of "innovation, professionalism and trustworthiness".
     Overall, the compliant and standardized development trend of the aesthetic medicine industry
continues to deepen, the underlying logic for the long-term growth of the industry remains robust,
and the dual demands of consumers for safe, compliant, innovative and efficient aesthetic medicine
products and services are still the core driving force for the development of the industry. Relying on
the global R&D pipeline layout, the mature integrated commercial platform at home and abroad,
and the commercialization capabilities built through years of deep cultivation in the industry, the
Company is fully confident in the medium and long-term development prospects of its aesthetic
medicine business. In the next stage, the Company will continue to focus on three core directions:
first, accelerate the iteration and upgrading of product pipelines to enrich the differentiated product
matrix; second, deepen the optimization of channel structure to improve the quality and efficiency
of terminal coverage; third, strengthen the refined management of internal operations to release
organizational effectiveness.
     Looking ahead, with the accelerated clearance of inefficient production capacity in the industry,
the steady recovery of consumer market confidence, and the gradual completion of market
cultivation and release of sales momentum for a number of its own heavyweight new products, the
                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Company's aesthetic medicine segment is expected to smoothly step out of the adjustment cycle and
achieve high-quality restorative growth.
     During the reporting period, the Company also continued to advance the overseas registration
of its aesthetic medicine portfolio, while actively implementing the registration and implementation
of multiple core products in China. For information on the registration progress of the Company's
key aesthetic medicine products at home and abroad, please refer to the subsections "(10)
Registration and launching progress of domestic aesthetic medicine product" and "(11) Registration
and launching progress of overseas aesthetic medicine product" under "(III) R&D situation" below
in this section.
                                            Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
            Figure: Key Aesthetic Medicine Products Launched by Huadong Medicine
    (4) Industrial microbiology business
    In the first half of 2026, the global innovative drug industry chain continues to recover. The
pipelines of cutting-edge therapies such as ADCs, nucleic acid drugs and polypeptide keep
expanding, driving increased demand for high-value upstream APIs, intermediates and CDMO
services. Meanwhile, the synthetic biology industry has received strong policy support, and the
overseas market demand for high-quality, stably supplied biomanufacturing raw materials continues
to be released. However, the industry also faces challenges including intensified global market
competition, stricter overseas registration and compliance standards, and heightened price
competition in some product categories. Against this industry backdrop, the Company's industrial
microbiology segment firmly implements its established development strategy, continuously
consolidates its four major business layouts covering xRNA raw materials, specialty APIs &
intermediates, massive health products & biomaterials, and animal health. The Company
strengthens technological innovation iteration and global market expansion, and takes accelerating
international layout and deeply integrating into the global pharmaceutical supply chain as its core
work objective at the current stage. It has achieved phased results in developing key customers at
home and abroad. All business units delivered improving performance during the reporting period,
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
achieving growth against market trends. Total sales revenue reached RMB 437 million, representing
a YoY increase of 18.64%. Of which, the xRNA segment recorded a growth of over 50%. API and
intermediate segment grew by 10%, among which the polypeptide API business increased by more
than 50%. Massive health and biomaterials segment posted a growth of over 25%, the animal health
segment grew by 25% and overseas business sales increased by 33%. Major accomplishments
across all fields are as follows:
     Specialty API & intermediate segment (ADC payloads + polypeptide):
     International market development is the core strategic task of this segment at the current stage.
As a business segment that integrates the traditional API business and innovative business for
coordinated development, the Company has completed the layout of ADC toxin product series, and
all mainstream toxin varieties have obtained US DMF filings. In 2026, the Company will continue
to promote DMF filing for more new molecular products. Multiple CDMO cooperation contracts
for ADC toxins have been executed, enabling the Company to provide global partners with
integrated small-molecule development services from early-stage research through clinical stages,
as well as supporting services for regulatory submission. Stable bulk supply of linker-toxin products
for both clinical and commercial use has been achieved. The Company has finalized its global
market strategic planning for polypeptide business. It is accelerating its international market
expansion, actively advancing overseas licensing for finished preparations, and building an
internationalized API supply system. Both polypeptide preparations and API businesses are
expected to achieve scaled commercial sales over the next two years. The Company continues to
regard strengthening international registration and market access as a critical pillar of its
internationalization strategy, steadily builds the product pipeline of biopharmaceuticals in the global
metabolism field, and continuously enhances its participation in the global high-end HPAPI (High
Potency Active Pharmaceutical Ingredient)supply chain.
     xRNA segment: Leveraging the Wuhu Huaren production base, the xRNA segment has built a
complete R&D and production system for upstream raw materials of oligonucleotide drugs and in
vitro diagnostic raw materials, serving domestic and overseas innovative pharmaceutical enterprises,
CDMOs and in vitro diagnostic manufacturers with differentiated technological capabilities and
efficient delivery capabilities. The Company continues to increase R&D investment, by focusing on
three core directions: raw materials for nucleic acid drug (phosphoramidite monomers), delivery
systems (GalNAc), and specially modified custom monomers. This segment has obtained ISO9001,
ISO14001 and ISO45001 system certifications. The entire production process strictly complies with
ICH international standards and GMP quality specifications. A total of 12 US DMF filings have
been completed, and the Company has established cooperative relationships with many
                                               Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
multinational pharmaceutical enterprises, achieving rapid business growth during the reporting
period.
     Massive health & biomaterials segment: This segment focuses on three core business
directions: functional food raw materials, personal care raw materials and biomaterials. In the first
half of 2026, Magic Health focused on the R&D and iteration of products such as VK2(Vitamin K2),
PQQ(Pyrroloquinoline quinone), PS(Phosphatidylserine) and nattokinase around the tracks of bone
health, brain health and anti-aging, and achieved rapid growth in the international market. All food-
related quality systems including ISO9001, KOSHER, GMP and FSSC22000 have been kept in
effective operation. In July, it passed the on-site audit of Food and Drug Administration (FDA) with
zero defects, and the overseas compliance capability of its products has been authoritatively verified.
Major breakthroughs have also been made in international market customer development and new
application scenario expansion. The Company has successfully realized supply cooperation with
many leading international health product customers in the United States. Shengji Material,
centered on its proprietary and controllable biodegradable materials, has built a matrix of high-end
medical functional materials. It has carried out CMC R&D and project incubation for biomedicine
and aesthetic medicine by leveraging its pharmaceutical preparation technology platform. Two
GMP-compliant manufacturing facilities for biodegradable materials and microspheres have been
completed and put into operation. The Company actively cooperates with overseas universities,
domestic and overseas pharmaceutical and aesthetic medicine enterprises in R&D collaborations
covering material supply and complex injectable formulation development, and continuously builds
a global innovation-driven industrial chain.
     Animal health segment: Continue to strengthen its technological edge and accelerate the
commercialization of products. Guided by market demand orientation, the Company focuses on
differentiated innovation tracks, steadily advances R&D and commercial layouts for products in
perioperative period, chronic disease management, deworming and other areas. The R&D pipeline
continues to expand, building momentum for long-term sustainable growth. In the first half of the
year, the Company was among the first to obtain the new veterinary drug registration certificate for
Pregabalin Oral Solution, further consolidating its competitive edge in the pet analgesia and
sedation track. Another 7 products are under registration review, including 2 Class I new veterinary
drug APIs and their injections. On the marketing front, the Company continues to build professional
brand moats. The core driver of business growth relies on Baoshining, China's first opiate
analgesic new drug for pets. Through collaboration with top-tier chain hospitals, industry KOLs,
and building benchmark hospitals in key cities, the products have deeply covered diverse clinical
scenarios of perioperative care and pain management, driving the Company's offline business to
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
record a YoY growth of over 50%. The new product Pregabalin has quickly completed channel
deployment in key hospitals across the country, fully demonstrating the Company's channel reuse
capability. On the consumer front, the Company has completed omni-channel layout on mainstream
e-commerce platforms including Tmall, Douyin and Pinduoduo, focusing on core categories of
deworming and nutritional supplements. Adhering to the business strategy of "empowering
consumer brand penetration with professional medical endorsement", the Company promotes the
coordinated development of online and offline businesses, continuously strengthens its
comprehensive competitiveness and brand influence, and adapts to the development trend of
China's pet pharmaceutical industry transforming towards compliance and professionalism.
     On January 5, 2026, Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd., the wholly-
owned subsidiary of the Company, announced the signing of a strategic cooperation agreement with
MC2 Therapeutics Ltd. (hereinafter referred to as "MC2"), the wholly-owned subsidiary of MC2
Therapeutics A/S. Under the agreement, Huadong Medicine will obtain the exclusive
commercialization rights for MC2 dermatological skincare creams, Biomee#1 and Biomee#2, in
Greater China (including Chinese mainland, Hong Kong SAR, Macau SAR, and Taiwan region).
These two products, powered by MC2 innovative PAD Technology, are designed to address dry
skin and discomfort while providing daily skincare and comfort. Huadong Medicine will be
responsible for the registration and commercialization of Biomee#1 and Biomee#2 in Greater
China. MC2 will be responsible for manufacturing and supply.
     With regard to ESG, the Company maintained an unwavering commitment to sustainable
development. A Sustainability (ESG) Committee has been established under the Board of Directors
to oversee ESG-related matters. The Company integrates the core ESG principles into corporate
development strategy and daily operations management, guiding and innovating business practices
with a science-based approach to social responsibility. It upholds the idea of green manufacturing,
actively supports China's "carbon neutrality and carbon peaking" goals, operates in strict
compliance with laws and regulations with integrity, and actively fulfills its social responsibilities.
As of the release date of the Report, the Company has received an AAA ESG rating from the SZSE
CNI rating system, an AAA rating from RatingDock, an A ESG rating from WIND, an A ESG rating
from CNI rating system, and an A ESG rating from Huazheng. The Company has also received
honors including the "ESG Best Practice Company" award presented by New Fortune magazine in
                                            Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
    During the reporting period, the Company's comprehensive competitive strength, efficient
operation and governance, and value creation capabilities gained significant market recognition, as
evidenced by a number of prestigious awards and honors. The Company has been included in the
Fortune China 500 for 17 consecutive years. It has been ranked on the List of Global Top 50
Pharmaceutical Companies of Pharmaceutical Executive (US) for the second time. The Company
also received such honors as the "Best Listed Company" award from New Fortune in 2025 and a
place in the first tier of the "2026 Top 100 Innovative Pharmaceutical Enterprises in China" by E-
Pharm Manager. In terms of investor relations management, the Company won the "Investor
Relations Management Award" at the 17th Tianma Awards presented by Securities Times and the
"Best Investor Relations Award" in Tonghuashun's 2025 Annual Ranking of Listed Companies.
    (III) R&D
    During the reporting period, the Company adhered to the "Scientific Research-based and
Patient-centered" corporate philosophy, strengthened its focus on therapeutic areas such as
endocrinology, autoimmunity and oncology, continued to increase its R&D investment, expanded
its innovative drug R&D pipeline, enhanced its innovative R&D ecosystem and technology
platforms, actively advanced clinical trials, and accelerated the market launch of new products.
Meanwhile, the Company conducted dynamic R&D assessments on an ongoing basis to improve
the quality and competitiveness of its R&D pipeline. As of the date of the Report, the Company's
innovative drug R&D center is advancing 96 innovative drug pipeline projects. Since its
establishment 6 years ago, the Innovative Drug R&D Center has obtained marketing authorization
for 12 innovative products in total. During the reporting period, the NDA for Sailexin/Saijiening
for the indication of Crohn's disease was approved, achieving 4 NDA/BLA applications
submissions, 9 IND approvals, and 14 innovative achievements published at international
conferences. In addition, the DR10624 project was granted the Breakthrough Therapy Designation
in China for severe hypertriglyceridemia. The Company's key projects, DR10624 and HDM2005,
were successfully selected for the 2026 National Science and Technology Major Special Projects.
During the reporting period, the Company's R&D investment in the pharmaceutical industry
segment (excluding equity investment) amounted to RMB 1.208 billion, representing a YoY
decrease of 18.58%, among which the direct R&D expenditure reached RMB 1.062 billion, down
    Oncology
    HDM2005, an ROR1-targeting ADC, ranks in the global first tier of global clinical
development for ROR1 ADCs. Four clinical studies are currently underway in China: i) Phase I
                                                 Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
clinical study of monotherapy for advanced hematological malignancies, including mantle cell
lymphoma (MCL), diffuse large B-cell lymphoma (DLBCL) and classical Hodgkin lymphoma
(cHL). The Ia phase monotherapy dose escalation has been completed, and dose expansion studies
for MCL and cHL are ongoing; ii) Phase I clinical study of monotherapy for advanced solid tumor,
which is currently in the dose expansion stage for metastatic castration-resistant prostate cancer
(mCRPC); iii) Phase Ib/II clinical study of combination therapy for DLBCL patients, which is in the
phase II enrollment stage; iv) Phase Ib/III clinical study of combination therapy for r/r MCL
patients, which is in the enrollment stage. In addition, the clinical study application for combination
therapy in cHL was approved by NMPA in June.
     The Phase I clinical study of HDM2012, a MUC17-targeting ADC for the advanced solid
tumor, has entered the dose backfilling stage.
     For HDM2020, an FGFR2b-targeting ADC, the monotherapy dose-escalation Phase I clinical
study for advanced solid tumor has progressed to the 7th dose cohort. The Phase Ib clinical study
for advanced squamous non-small cell lung cancer (sqNSCLC) has completed enrollment of the
first dose cohort.
     HDM2017, a CDH17-targeting ADC, is simultaneously advancing Phase Ia clinical study in
China and Australia. Furthermore, two clinical study applications for combination therapy in
advanced colorectal cancer (CRC) have both been approved by CDE.
     The clinical study application for HDM2024, a bispecific antibody-drug conjugate (ADC)
targeting EGFR/HER3 for the treatment of advanced solid tumor, has received IND approvals from
the U.S. Food and Drug Administration (FDA) and China CDE. The first patient enrollment in the
Phase I clinical study in China has been completed, and the study is currently in the dose-escalation
phase.
     HDM2027 (HDP-101), a BCMA-targeting Amanitin ADC, has completed the first patient
enrollment in China for its Phase I monotherapy study targeting plasma cell diseases including
multiple myeloma, and is currently in the dose escalation stage. In addition, in August 2026, the
IND for a new indication of HDM2027 in drug combination was approved by the NMPA.
     DR30206, a PD-L1/VEGF/TGF-β triple-target antibody fusion proteins developed by the
holding subsidiary Doer Biologics, has completed Phase Ib dose expansion enrollment for first-line
non-small cell lung cancer. Subsequent expansion or combination therapy studies are currently
underway. The Company is also actively advancing the Phase Ib clinical study of monotherapy for
head and neck squamous cell carcinoma, the Phase Ib/IIa clinical study of combination therapy for
advanced or metastatic gastrointestinal oncology, and the Phase Ib/II clinical study of combination
therapy for locally advanced or metastatic non-small cell lung cancer.
                                               Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
     DR510, a first-in-class EGFR/CD3 bispecific T-cell redirecting antibody prodrug
independently developed by the holding subsidiary Doer Biologics, is intended for the treatment of
multiple solid tumors including head and neck squamous cell carcinoma, non-small cell lung cancer,
pancreatic cancer and colorectal cancer. Its IND submission is in preparation.
     Endocrinology
     For HDM1002 (conveglipron), an oral small-molecule GLP-1 receptor agonist, the Phase III
clinical study for the weight management indication in China has reached the primary clinical
endpoint. The Pre-NDA submission was made in July 2026, and the NDA submission is planned for
Q4 2026. Both Phase III clinical studies for the type 2 diabetes mellitus indication of this product
have completed full enrollment. Pre-NDA communication application is expected to be submitted in
Q4 2026.
     For HDM1005 (poterepatide) injection, a long-acting GLP-1R/GIPR dual-target polypeptide
agonist, all subject enrollment in the Phase III clinical study for the weight management indication
has been completed. The study is currently in the treatment follow-up and data collection phase.
The Pre-NDA application is scheduled to be submitted in Q4 2026. All subject enrollments have
been completed in two Phase III studies for the diabetes mellitus indication. Two Phase III studies
for the obstructive sleep apnea hypopnea syndrome (OSAS) indication are currently in preparation.
     DR10624, the first-in-class candidate product for FGF21R/GCGR/GLP-1R triple agonist
developed by the Company's holding subsidiary, Doer Biologics, was included in the Breakthrough
Therapy Designation list by CDE for severe hypertriglyceridemia (sHTG) in January 2026. Key
clinical discussions with regulatory authorities in China and the US have been completed, and the
Phase III clinical study has been initiated. The Phase II clinical study of metabolic associated fatty
liver disease with a high risk of liver fibrosis reported top-line results in Q3 2026. Follow-up studies
are planned to further verify the efficacy and safety of DR10624 in the MASLD/MASH population.
In July 2026, the IND for DR10624 in the indication of adult's HFpEF/HFrEF (heart failure with
preserved ejection fraction/heart failure with reduced ejection fraction) was approved in China.
     HDM1014 injection, which is the GalNAc-siRNA weight-loss drug self-developed by the
Company, is undergoing IND development work. It is expected to submit IND application in China
in Q4 2026.
     HDM1013, the Company's independently developed triple-target weight-loss drug, is under
IND development, and the Chinese IND submission is scheduled for Q3 2027.
     The IND application for HDM1010 Tablets (a fixed-dose combination oral formulation of
HDM1002) intended for the type 2 diabetes mellitus indication has been approved by the US Food
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
and Drug Administration (FDA).
     The NDA for Semaglutide Injection (diabetes indication) was submitted with supplementary
materials in March 2026 and is currently under review. The marketing application for the weight
management indication is also under review, with registration testing ongoing.
     The NDA for Insulin Degludec Injection was submitted with supplementary materials in May
     The NDA for Insulin Degludec and Insulin Aspart Injection was submitted in June 2026 and is
currently under professional review.
     Autoimmunity
     For HDM3001 (QX001S), the Ustekinumab biosimilar co-developed with Qyuns Therapeutics,
the supplementary application for the subcutaneous injection and the marketing authorization
application for the intravenous injection for the indication of Crohn's disease were approved in
April and May 2026 respectively. The supplementary application for the new 90 mg strength for the
indication of Crohn's disease was accepted in January 2026 and is expected to be approved by the
end of 2026.
     The Phase III clinical study of HDM3010 (Ruxolitinib Gel), the modified new drug
independently developed by the Company for the treatment of vitiligo, is progressing.
     For HDM3014 (Roflumilast Cream) co-developed with Arcutis (US), the Chinese NDA
applications for two indications — plaque psoriasis (PsO) in patients aged 6 and above, and atopic
dermatitis (AD) in patients aged 6 and above — have passed the on-site clinical inspection by
NMPA. The Chinese NDA application for the AD indication in patients aged 2 to 5 was accepted in
February 2026. All three indications above are expected to be approved in 2027.
     The Phase III clinical trial of HDM3015 (MC2-01 Cream) for plaque psoriasis, co-developed
with MC2 Therapeutics, has completed enrollment in China, and is currently in the treatment
follow-up and data collection phase.
     HDM4002 Injection, the first-in-class bispecific antibody candidate independently developed
by the Company, is currently undergoing IND-enabling development. It is anticipated that IND
applications will be submitted in both China and the United States in Q4 2026.
     HDM3018, a bispecific antibody independently developed by the Company, is under IND
development. The IND submissions in China and the US are scheduled for the second half of 2026.
     HDM3020, a bispecific antibody independently developed by the Company, is under IND
development, and the Chinese IND submission is scheduled for Q2 2027.
     Other segments
                                                  Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
    The supplementary materials for the NDA of Ranibizumab Injection was submitted in Q2 2026.
         Figure: Pipeline Diagram of Innovative Products in Major Clinical Development Stages
                                                 China
Type              Item            Category     Registration                       Milestone Event
                                                  Class
           Sailexin                                            The NDA for Saijiening for Crohn's disease
           (Ustekinumab                                         indication was approved in May 2026;
           Injection)                            Class 3.3      The supplementary application to add a Crohn's
 NDA
approv     Saijiening            Biosimilar
                                                therapeutic     disease indication for the 45 mg strength of
           (Ustekinumab                          biological     Sailexin was approved in April 2026; the
  ed
           Injection                              product       supplementary application to add a Crohn's
           (Intravenous                                         disease indication for the 90 mg strength was
           Infusion))                                           accepted in January 2026.
                                                                NDA was accepted in February 2026
           Cream                     drug      chemical drug
                                                 Class 3.3
           Semaglutide                          therapeutic     NDA for weight management indication was
                                  Biosimilar
           Injection                             biological     accepted in April 2026
                                                  product
 NDA       Budesonide       and
accept     Formoterol
           Fumarate Powder        Modified       Class 2.2
  ed                                                            NDA accepted in April 2026
           for Inhalation (IV),   new drug     chemical drug
           Capsule‑ type
                                                 Class 3.3
           Insulin Degludec
                                                therapeutic
           and Insulin Aspart     Biosimilar                    NDA was accepted in June 2026
                                                 biological
           Injection
                                                  product
                                  Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                  Class 1
                                                The IND for metabolic associated fatty liver
                   Innovative   therapeutic
         DR10624                                disease was approved in the U.S. in January
                      drug       biological
                                  product
                                  Class 1       The IND for the combination therapy with
                   Innovative   therapeutic     Rituximab and Lenalidomide for the treatment of
         HDM2005
                      drug       biological     relapsed/refractory mantle cell lymphoma was
                                  product       approved in China in January 2026
                                  Class 1
                   Innovative   therapeutic     IND for hypertriglyceridemia was approved in
         DR10624
                      drug       biological     China in February 2026
                                  product
                                  Class 1       The IND for combination with standard
                   Innovative   therapeutic     chemotherapy in treatment of locally advanced
         DR30206
                      drug       biological     or metastatic non-small cell lung cancer patients
                                  product       was approved in China in February 2026
                                  Class 1
 IND                                            The IND for monotherapy in treatment of
                   Innovative   therapeutic
approv   HDM2024                                advanced malignant solid tumors was approved
                      drug       biological
  ed                                            in China in March 2026
                                  product
                                  Class 1
                                                The IND for monotherapy in treatment of
                   Innovative   therapeutic
         HDM2024                                advanced malignant solid tumors was approved
                      drug       biological
                                                in the U.S. in March 2026
                                  product
                                  Class 1
                                                The IND for combination with Fruquintinib in
                   Innovative   therapeutic
         HDM2017                                the treatment of advanced colorectal cancer was
                      drug       biological
                                                approved in China in May 2026
                                  product
                                  Class 1
                                                The IND for combination therapy in advanced
                   Innovative   therapeutic
         HDM2017                                colorectal cancer was approved in China in June
                      drug       biological
                                  product
                                  Class 1
                                                The IND for combination therapy in classical
                   Innovative   therapeutic
         HDM2005                                Hodgkin lymphoma was approved in China in
                      drug       biological
                                                June 2026
                                  product
                                  Class 1
                                                Orphan drug designation was granted in the U.S.
                   Innovative   therapeutic
         HDM2020                                in February 2026 for indications of gastric
                      drug       biological
                                                cancer and gastroesophageal junction cancer
                                  product
                                  Class 1
                   Innovative   therapeutic     Orphan drug designation was granted in the U.S.
         HDM2017
Orpha                 drug       biological     in March 2026 for biliary tract cancer indication
n drug                            product
design                            Class 1
 ation             Innovative   therapeutic     Orphan drug designation was granted in the U.S.
         HDM2017
                      drug       biological     in March 2026 for gastric cancer indication
                                  product
                                  Class 1
                   Innovative   therapeutic     Orphan drug designation was granted in the U.S.
         HDM2017
                      drug       biological     in March 2026 for pancreatic cancer indication
                                  product
Breakt                            Class 1
                                                Chinese breakthrough therapy designation was
hrough             Innovative   therapeutic
         DR10624                                obtained in January 2026 for severe
Therap                drug       biological
                                                hypertriglyceridemia
   y                              product
                                                   Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Note: Budesonide and Formoterol Fumarate Powder for Inhalation (IV), Capsule‑ type, is the product exclusively
commercialized by the Company in the Chinese mainland.
academic conferences since 2026
                                    Conference/journal      Presentation
No.   Date of release     Item                                                                  Title
                                          name                format
                                                                             Efficacy and Safety of Roflumilast
                                    American Academy
                                                                             Cream 0.3% in Chinese Adult and
                                                                             Pediatric Patients with Plaque Psoriasis:
                                         (AAD)
                                                                             Results From a Phase 3 Trial
                                                                             Roflumilast Cream 0.15% for Mild-to-
                                    American Academy
                                                               Poster        Moderate      Atopic    Dermatitis:     A
                                                            presentation     Multicenter, vehicle-Controlled Phase 3
                                         (AAD)
                                                                             Bridging Study in China
                                     Society of Critical                     Clinical Validation of a Transdermal
                                         (SCCM)                              Individuals
                                     Society of Critical                     Bioequivalence and Efficacy Study of
                                         (SCCM)                              Measurement in Chinese Subjects
                                         American                            HDM2021, a potent and selective CBL-
                                      Association for          Poster        B      inhibitor      exhibits     robust
                                      Cancer Research       presentation     immunomodulatory efficacy for anti-
                                         (AACR)                              tumor therapy
                                         American                            A novel EGFR and HER3 bispecific
                                      Association for          Poster        antibody-drug      conjugate      exhibits
                                      Cancer Research       presentation     superior antitumor activity and favorable
                                         (AACR)                              toxicological profile
                                         American
                                                                             DR319-DP:      A     Nectin-4/Trop-2
                                      Association for          Poster
                                      Cancer Research       presentation
                                                                             VHH design and dual-MOA payloads
                                         (AACR)
                                                                             Efficacy and Safety of Dual GLP-1/GIP
                                                                             Receptor Agonist HDM1005 in Obese
                                    American Diabetes
                                    Association (ADA)
                                                                             Randomized, Double-Blind, Placebo-
                                                                             Controlled, Phase 2 Trial
                                                                             Efficacy and Safety of a Novel Oral
                                                                             Small Molecule Glucagon-Like Peptide
                                    American Diabetes                        1 Receptor Agonist (HDM1002) in Type
                                    Association (ADA)                        2      Diabetes     Mellitus   Patients
                                                                             Inadequately Controlled on Diet and
                                                                             Exercise or Metformin
                                                                             Efficacy and Safety of a Novel Oral
                                                                             Small Molecule GLP-1 Receptor
                                    American Diabetes          Poster        Agonist     HDM1002        in  Chinese
                                    Association (ADA)       presentation     Overweight and Obese Adults: A
                                                                             Randomized, Double-Blind, Placebo-
                                                                             Controlled, Phase 2 Trial
                                                                             Preclinical Efficacy and Safety of
                                    American Diabetes          Poster        HDM1014, a Novel GalNAc-siRNA
                                    Association (ADA)       presentation     Targeting     INHBE,       for  Weight
                                                                             Management with Muscle Preservation
                                                Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                                                          Significant Synergistic Hypoglycemic
                                   American Diabetes        Poster
                                   Association (ADA)     presentation
                                                                          HDM1010
                                   American Diabetes        Poster        Significant Synergistic Effects in
                                   Association (ADA)     presentation     Diabetic Kidney Disease by HDM1010
                                   American College
                                                                          Clinical studies on Weight-Loss Efficacy
                                     of Veterinary
                                   Internal Medicine
                                                                          FIC GLP-1R/GIPR Agonist.
                                       (ACVIM)
conferences in the second half of 2026
                                  Conference/journal    Presentation
No.   Date of release    Item                                                                Title
                                         name             format
                                  European Academy
                                                                         HDM3017‑ 1, a Potent and Selective
                                  of Dermatology and       Poster
                                      Venereology       presentation
                                   Congress (EADV)                       Autoimmune and Inflammatory Diseases
                                       European                          Efficacy and Safety of HDM1702 vs.
                                  Association for the                    Semaglutide (Wegovy) in Patients with
                                   Study of Diabetes                     obesity: A Randomized, Open-label
                                        (EASD)                           Phase 3 Trial
                                       European                          A phase 2 trial of HDM1005 in
                                  Association for the                    participants with type 2 diabetes not
                                   Study of Diabetes                     controlled     with    diet/exercise or
                                        (EASD)                           metformin
                                       European                          A Novel GLP-1/GIP/Amylin Triple
                                  Association for the                    Agonist Demonstrates Robust Weight
                                   Study of Diabetes                     Loss and Overcomes Incretin Plateau in
                                        (EASD)                           Preclinical Models
                                   European Society                      Updated Results from a Phase I Study of
                                      for Medical          Poster        HDM2005, a ROR1-targeting Antibody
                                       Oncology         presentation     Drug Conjugate, in non-Hodgkin
                                        (ESMO)                           lymphoma
                                   European Society                      A Phase I Study of HDM2005, a ROR1-
                                      for Medical          Poster        targeting Antibody Drug Conjugate, in
                                       Oncology         presentation     Patients with Metastatic Castration-
                                        (ESMO)                           resistant Prostate Cancer
                                   European Society                      A Phase I Clinical Study of HDM2020
                                      for Medical          Poster        (FGFR2b-ADC) in Patients with
                                       Oncology         presentation     Advanced FGFR2b Positive Solid
                                        (ESMO)                           Tumors: Results from Dose Escalation
Platform
      In H1 2026, the Company continued to advance the systematic construction, R&D and
application of the AI-Aided Drug Discovery (AIDD) platform. It accelerated the deep integration of
artificial intelligence, bioinformatics and the new drug R&D workflow, further enhancing the
enabling capabilities in key links including target evaluation, project initiation, molecular design,
candidate molecule screening, druggability optimization and R&D intelligence analysis. The AIDD
team has supported nearly 30 R&D projects, and the platform's supporting role for the R&D
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
pipeline has become increasingly prominent. In terms of biopharmaceutical R&D, the Company
continuously strengthens its capabilities in antibody engineering design, structure optimization,
affinity maturation and druggability evaluation, which have been implemented in multiple key
projects. The fastest-progressing projects have entered the pre-PCC stage. In terms of small-
molecule drug R&D, AIDD is used for druggability prediction and assessment to drive compound
optimization. Among them, the HDM1013 project has entered the IND development stage.
     During the reporting period, the Company initially completed the localized deployment of the
competitive intelligence platform, AIDD toolbox and intelligent scientific research platform. It has
preliminarily built an integrated AIDD technical chain covering "R&D intelligence acquisition,
target and indication analysis, computational design and screening, intelligent analysis and decision
support", providing critical support for improving the efficiency of candidate molecule discovery
and optimization, strengthening early-stage project screening capabilities, optimizing R&D resource
allocation and enhancing independent innovation capabilities. The Company actively deploys
bioinformatics and intelligent R&D tools, and carries out systematic work focusing on target and
target combination evaluation, indication selection and expansion, omics data analysis and R&D
decision support. In H1 2026, relevant analyses covered more than 30 indications, approximately
     Since the establishment of the Global Innovative Drug R&D Center 6 years ago, the Company
has submitted over 220 innovation drug patents in total, with a cumulative number of 42 granted
patents. Since the beginning of 2026, 14 domestic and foreign granted patents have been obtained,
and 12 PCT international patent applications have been submitted.
     Since 2021, the Global Innovative Drug R&D Center of the Company has been approved for
of nearly RMB 136.6 million. These projects include 2 national science and technology major
special projects for innovative drug R&D under the national "Four Major Chronic Diseases" special
program, national laboratory projects, central emergency research special projects, and Zhejiang
Province "Pioneer" & "Leading Goose" R&D tackling projects. During the reporting period,
Relmapirazin Injection and Mifanertinib Maleate Tablets were included in the 2026 Catalogue of
High-Quality Innovative Hangzhou-produced Pharmaceuticals and Medical Devices. As the leading
entity, the Company established the Yangtze River Delta Autoimmune Disease New Drug
Innovation Consortium, focusing on the major clinical needs of autoimmunity to carry out R&D
and industrialization tackling for innovative drugs. The "Provincial Key Laboratory for Intelligent
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Innovation of Metabolic Disease New Drugs" has promoted the technical tackling of AIDD-based
drug design & synthesis and intelligent drug delivery, supporting the R&D of the metabolism
pipeline. The Lingang National Laboratory project focuses on metabolic drug-microneedle
sustained-release technology. Its newly developed next-generation weight-loss and hypoglycemic
drug-device combination product has advanced to the pre-PCC stage.
      In February 2021, Zhongmei Huadong, a wholly-owned subsidiary of the Company, was
approved to set up a postdoctoral research workstation in Zhejiang Province, which was registered
as a national postdoctoral research workstation in September 2022. Postdoctoral researchers at the
workstation conduct cutting-edge and translational research in innovative drug development, in
alignment with the Company's strategic priorities and R&D pipeline layout. Postdoctoral
researchers receive joint training through collaborations with mobile postdoctoral stations at leading
academic institutions, including Zhejiang University, the Shanghai Institute of Materia Medica of
the Chinese Academy of Sciences, Shandong University, and Zhejiang University of Technology.
To date, the workstation has recruited 36 postdoctoral researchers, among whom 20 are currently in
residence, while 16 have successfully completed the program.
      The Company further clarified the focused and prioritized varieties by regularly organizing
dynamic evaluation and analysis of existing generic drugs under development. From the beginning
of the year to the release date of this Report, the Company has obtained marketing approval for a
total of 5 generic drugs. These products include Carfilzomib for Injection, Isavuconazonium Sulfate
for Injection and Ruxolitinib Phosphate Tablets from its wholly-owned subsidiary Hangzhou
Zhongmei Huadong Pharmaceutical Co., Ltd., as well as Adapalene Gel and Terbinafine
Hydrochloride Spray from its wholly-owned subsidiary Huadong Medicine (Xi'an) Bodyguard
Pharmaceutical Co., Ltd.
No.        Field           Item                   Remarks                             Latest progress
                                         For diabetes treatment: 1.34
                                                                          Approved by EAEU in April 2026
                                                mg/mL, 3 mL
                                        For weight loss: 0.68 mg/mL,
                        Semaglutide
                         Injection
                                        mg/mL, 3 mL; 3.2 mg/mL, 3
                                                     mL
                        Tacrolimus                                        Approved by Uzbekistan in April
                         Capsules                                         2026
                                                 Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                        Isavuconazonium
                                                                             DRL response for label and quality in
                                                                             April 2026
                            Injection
                          Polymyxin B                                        CEP (Sister file) approved in February
                             Sulfate                                         2026;
                                                                             Completed      initial   U.S.    DMF
                                                                             submission in January 2026
                                                                             Completed      initial   U.S.    DMF
                                                                             submission in March 2026
                                                                             Completed      initial   U.S.    DMF
                                                                             submission in March 2026
                                                                             CEP application submitted in June
           Nucleotide     2'-F-dC(Ac)                                        Completed      initial   U.S.    DMF
             drugs      Phosphoramidite                                      submission in March 2026
                                                                             Completed      initial   U.S.    DMF
                                                                             submission in March 2026
                                                                             Completed      initial   U.S.    DMF
                                                                             submission in March 2026
           Nucleotide                                                        Completed      initial   U.S.    DMF
             drugs                                                           submission in April 2026
                        Echinocandin B                                       Completed      initial   U.S.    DMF
                        nucleus (ECBN)                                       submission in June 2026
                           Adagrasib                                         Completed      initial   U.S.    DMF
                          Intermediate                                       submission in June 2026
           Nucleotide          dT                                            Completed      initial   U.S.    DMF
             drugs      phosphoramidite                                      submission in July 2026
      From the beginning of 2026 to the release date of the Report, Huadong Medicine (Xi'an)
Bodyguard Pharmaceutical Co., Ltd., a wholly-owned subsidiary of the Company, received an
Approval Notice for the Supplemental Application for Consistency Evaluation for its Ibuprofen
Tablets.
No.          Type          Product designation            Intended use                    Latest progress
                                                        Improvement of
                             MaiLiPrecise                                    Received marketing approval from
                             Hyaluronic acid                                  NMPA in August 2026
                                                          hollowness
                               LanlumaV                Improvement of        Completed the clinical trial report in
                            Poly-L-lactic acid          jawline contour       June 2026
                                                        Improvement of        Completed 500 subjects enrollment
                                 KIO021
                                 Chitosan
                                                            condition         analysis is currently underway
                                                                              The      supplementary      indication
                                                                              registration application was accepted
                                Ellansé-S                Improvement of
                             Polycaprolactone           forehead contour
                                                                              currently in the regulatory review
                                                                              stage.
                                Ellansé-M               Improvement of
                                                                              Received marketing approval from
                                                                              NMPA in April 2026
                                                          hollowness
                                                    Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                       Recombinant botulinum toxin
                                                          Moderate-to-severe     Received marketing approval from
                                                           glabellar lines       NMPA in March 2026
                          (trade name: Retoxin)
                                                             Improvement of
                                                             wrinkles, benign
                                                          skin lesions, benign
          Energy-
                                                             vascular lesions,   Received marketing approval from
                                                            benign pigmented     NMPA in June 2026
           device
                                                            lesions, moderate
                                                           inflammatory acne
                                                            and hair removal
                                                                                 Chinese Mainland: Currently in the
                                                                                 stage of regulatory submission to
                                                              Benign skin
          Energy-                                                                NMPA;
                                Primelase                 lesions, pigmented
                               Laser device               lesions, and benign
           device                                                                China: Currently in the technical
                                                            vascular lesions
                                                                                 review stage; the application is
                                                                                 expected to get approval in Q1 2027
 No.       Type          Product                    Indication                           Latest progress
                           KIO015           Superficial filling, skin
                                                                          Obtained EU MDR-CE certification in
                                                                          August 2026
                      KytogenDefend)               hydration
                                                                          Completed enrollment of all subjects for
                                                                          U.S. clinical study by end of March 2026;
                                                                          currently conducting safety follow-ups
                                                                          according to the study protocol
          Energy-                              Benign skin lesions,       Japan registration application: Currently, the
                         Primelase
                        Laser device
          device                              benign vascular lesions     it is expected to get approval in Q2 2027
       In recent years, the Company has placed great emphasis on the protection of intellectual
property rights and the application of research outcomes, with both the number of patent
applications and grants steadily increasing. The Company has filed a total of over 2,000 patent
applications domestically and internationally over the years, including more than 610 authorized
invention patents. Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd., a wholly-owned
subsidiary of the Company, is a national intellectual property demonstration enterprise. It passed the
external audit by Zhongzhi (Beijing) Certification Co., Ltd. in November 2014 and became one of
the first 147 enterprises that passed the standards implementation certification. In October 2025, it
smoothly passed the audit of the enterprise intellectual property compliance management system
(Certificate No.: 165IP250489R0L).
       During the reporting period, the Company's patent application and maintenance work
proceeded smoothly. A total of 110 patent applications were filed, including 86 invention patents,
and 44 patents were authorized.
                                                    Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                          Increase during the reporting period                         Total quantity
    Patent type
                       Number of patents       Number of patents       Number of patents         Number of patents
                       applied for (units)      received (units)       applied for (units)        received (units)
  Invention patent              86                     32                      1624                      619
   Utility patent               18                      9                       339                      282
 Appearance design
      patent
       Total                   110                     44                      2,017                     950
Note: The data in the above table represent the statistical patent information of main subsidiaries engaged in the
pharmaceutical industry, industrial microbiology and aesthetic medicine within the Company's consolidated
statements.
II. Analysis of core competitiveness
     The Company has consistently placed a high priority on innovation and research and
development, and adhered to the philosophy of "research-driven and patient-centered" development.
Guided by the principles of clinical value, pharmacoeconomic value, and commercial viability, the
Company continues to sustain a high level of investment in R&D activities. Its Global Innovative
Drug R&D Center serves as the cornerstone for innovation strategy formulation, pipeline planning,
and clinical study and development. Following years of dedicated development, the Company has
established a relatively comprehensive and independent drug R&D system that encompasses the
entire life cycle of drug development—from drug discovery and pharmaceutical research through
preclinical and clinical studies to industrialization.
     Focusing on three core therapeutic fields—oncology, endocrinology, and autoimmunity—the
Company remains committed to continuous development and has cultivated a diversified portfolio
of differentiated innovative product pipelines that cover the full R&D cycle via independent R&D,
external cooperation, license-in. All these merits effectively empower the continuous initiation and
marketing of innovative products, offering impetuses for the Company's medium- and long-term
development. The Company has continuously leveled up its independent R&D and innovation
capabilities. Its Innovative Drug R&D Center is advancing the R&D of nearly 100 innovative drug
pipeline programs, placing the Company among the first tier of pharmaceutical companies in China
in terms of pipeline size.
three core therapeutic fields
                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
     Focusing on specialized medicines, medicines for chronic diseases, as well as special
medicines for years, the Company has fostered good brand effect and laid strong market foundation
in such fields as chronic kidney disease, immunology, endocrinology, oncology, digestive system
and cardiovascular diseases, continuously keeping in the forefront of similar products in China in
terms of market share. Meanwhile, the Company has launched first-in-class new drugs on the global
market in core therapeutic areas including oncology, endocrinology and autoimmunity. It has
formed three featured pipeline matrices covering ADCs, GLP-1s and topical preparation, building
differentiated competitive advantages.
     Specializing in medicines for diabetes for over two decades, the Company has
comprehensively laid out product pipelines of innovative and differentiated generic drugs for
clinical mainstream therapeutic targets of diabetes, with over 20 types of products under
development or put in commercial production. Now, the Company has fostered good brand effect
and laid strong market foundation. The existing and subsequently-upgraded products cover multiple
mainstream targets, including α-glucosidase inhibitors, DPP-4 inhibitors, SGLT-2 inhibitors, GLP-1
receptor single-target and long-acting multi-target agonists, as well as insulin and its analogs.
Centered on the GLP-1 target, the Company has developed a comprehensive and differentiated
product pipeline that combines long-acting and multi-target global innovative drugs and biosimilars,
including oral tablets and injections.
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
     In the oncology field, the Company takes independent R&D as the core and global
collaboration as the support, continuously consolidating its differentiated product pipeline.
Especially in the ADC track, the Company has built full-chain capabilities spanning from R&D to
commercialization. Elahere, the world's first and currently the only approved FRα-targeting ADC
drug for platinum-resistant ovarian cancer, has been officially commercialized in China. The
Company is committed to building an ADC pipeline matrix centered on independent innovation,
with ADC candidate products targeting differentiated innovative targets such as ROR1, FGFR2b,
MUC17 and CDH17. The overall R&D progress for these novel targets ranks among the global
leaders, and multiple products have obtained the Orphan Drug Designation from the FDA.
Meanwhile, the Company has invested in, held controlling stakes in and incubated a number of
leading domestic biotech companies. By strategically acquiring shares in Heidelberg Pharma, a
German company, to become its second-largest shareholder, the Company carries out product
collaboration and introduces its proprietary ATAC (Amanitin Antibody Conjugate) technology
platform, further expanding its differentiated toxin ADC pipeline. Based on clinical feedback, the
Company continues to carry out innovative R&D of ADCs with novel targets and new mechanisms,
building a world-class independent ADC R&D industrial platform, and committed to providing
innovative treatment solutions with higher clinical value for oncology patients.
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
     In the field of autoimmunity, the Company's marketed and pipeline products cover a wide
range of indications, including transplant immunology, psoriasis, atopic dermatitis, rheumatoid
arthritis, seborrhoeic dermatitis, prurigo nodularis, vitiligo, recurrent pericarditis, and cryopyrin-
associated periodic syndromes. These indications span across dermatology, rheumatology,
cardiovascular, respiratory, and transplant-related diseases, making the Company one of the most
comprehensive pharmaceutical enterprises in China in terms of coverage in the autoimmune disease
area. Additionally, the Company's innovative drug R&D center has been focusing on new targets
and biological mechanisms, developing multiple early-stage projects for immune diseases, all of
which are progressing smoothly. With regard to autoimmunity, the Company stretched its coverage
to topical preparations, built topical preparation R&D platforms, and steadily advanced the R&D
                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
and innovation of external and complicated preparations. Currently, the Company's wholly-owned
subsidiary, Huadong Medicine (Xi'an) Bodyguard Pharmaceutical Co., Ltd. and its controlled
subsidiary, Shaanxi Jiuzhou Pharmaceutical Co., Ltd., have jointly fostered four production lines for
topical preparations. The Company now has more than 10 products of topical preparation either
under development or in commercial production.
established commercial operation system
     The Company's pharmaceutical development is supported by a highly specialized team
dedicated to pharmaceutical services and market development. Centered on clinical value and
academic promotion, the team advances an integrated marketing model that connects
comprehensive hospitals, primary-level medical institutions, the retail sector, third-terminal
channels, and online platforms. With a sales network covering more than 30 provinces, autonomous
regions, and municipalities nationwide, the Company has established a multi-channel, wide-
coverage presence with strong competitive advantages.
     The Company's pharmaceutical distribution segment has deeply cultivated the Zhejiang market
for many years, with a solid regional business foundation and a well-established product category
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
layout, building deep competitive moats in market access and terminal channel coverage. In terms
of supply chain cooperation, the Company has established long-term, stable and in-depth strategic
partnerships with over 95% of mainstream domestic and international pharmaceutical enterprises,
with sufficient product supply and a mature cooperation system. Its sales network fully covers all 90
county-level administrative regions in Zhejiang Province, achieving 100% coverage of public
medical institutions within the province. It also continuously expands to out-of-hospital terminal
customers such as retail pharmacies and private medical institutions, with its regional market share
ranking among the top in Zhejiang's pharmaceutical industry.
     The Company continuously strengthens the construction of core competitive capabilities,
forming systematic and institutionalized competitive advantages in deep collaboration with top-tier
medical institutions, coordinated implementation of policy affairs, business model innovation and
efficient organizational operation. It can provide full-value-chain integrated services for upstream
and downstream partners, covering the entire process including pharmaceutical project market
access, professional one-stop CSO commercial marketing, retail and DTP professional channel
construction, local government affairs coordination, and compliant payment guarantee, fully
empowering the coordinated development of the entire industrial chain.
     With the continuous deepening of China's pharmaceutical reform, the pharmaceutical
distribution industry is accelerating its transformation from the traditional commercial distribution
model to a specialized, service-oriented and integrated supply chain service model. The Company
accurately grasps the industry development trend, actively adapts to the orientation of policy reform,
and continuously deepens strategic cooperation and ecological co-construction with core customers.
At present, the Company has formed differentiated leading advantages in multiple core segmented
tracks including professional market access services, omni-channel integrated marketing,
pharmaceutical government affairs coordination, innovative pharmaceutical affairs services, high-
end cold chain third-party pharmaceutical logistics, and automated intelligent herbal decoction. It
continues to consolidate its core competitiveness as the regional industry leader, building solid core
moats for sustained and steady business growth.
     Focusing on the global high-end medical aesthetics market, the Company has established an
internationalized team dedicated for aesthetic medicine operations and BD. Through mergers and
acquisitions and product in-licensing in recent years, the Company has progressively refined and
enriched its industrial layout for high-end aesthetic medicines. The Company now provides full-
spectrum coverage in the mid- to high-end markets for non-surgical aesthetic injectables and
energy-based devices. Its portfolio comprises more than 50 high-end, internationally sourced
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
minimally invasive and non-invasive aesthetic medicine products, 36 of which have already been
launched in domestic or overseas markets. Its globally patented product suite spans mainstream
non-surgical aesthetic categories, including frown line improvement, facial and body filling, thread
lifting, skin management, body contouring, depilation, and intimate rejuvenation. The Company has
thus established a comprehensive product cluster, ranking among the industry leaders in terms of
product number and coverage breadth, while continuing to expand its global presence. Meanwhile,
the Company has achieved full coverage across three major injectable categories—regenerative
products, hyaluronic acid, and botulinum toxin—forming a multi-dimensional, full-face aesthetics
treatment system. This allows the Company to provide precise, personalized and highly effective
"one-stop" aesthetic solutions for aesthetic seekers. The Company's aesthetic medicine marketing
network spans over 80 countries and regions worldwide, supported by a professional aesthetic
medicine sales team of over 700 members across markets in and out of China.
segment
     The Company has long been deeply engaged in the industrial microbiology segment. It
operates the largest single fermentation workshop in Zhejiang Province and boasts industry-leading
production capacity for microbial drugs. It possesses full-chain R&D capabilities in microbial
engineering technologies, including strain construction, metabolism regulation, enzyme catalysis,
synthetic modification, separation and purification. It has established a complete manufacturing
system covering microbial project R&D, pilot-scale verification, commercial production, and
engineering & utility system support. The Company has established an R&D cluster centered on the
Synthetic Biology R&D Platform (Huadong Synthetic Biology Research Institute), the Industrial
Microbiology R&D Platform (Huida Biotech) and the Synthetic Chemistry R&D Platform. It has
deployed 7 industrialization bases located in Hangzhou Xiangfuqiao, Qiantang New Area, Jiangsu
Joyang, Magic Health, Anhui Meihua, Wuhu Huaren and Huadong Dongbao. The Company is
making every effort to continuously advance the integrated development of "production, research
and marketing" in the field of industrial microbiology.
     The Company's industrial microbiology segment has developed a globally-oriented,
collaborative and highly efficient innovation talent team and established a multidisciplinary talent
structure led by seasoned industry experts and supported by a new generation of key scientific
research personnel. This has enabled the Company to build a specialized operating system
underpinned by profound technical expertise and outstanding innovation capabilities. On the R&D
front, the Company remains committed to talent-driven innovation, with master's and doctoral
degree holders accounting for 30% of its R&D personnel. As of the end of the reporting period, the
                                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Company's industrial microbiology segment had initiated 538 R&D projects in total, including 294
xRNA raw material projects, 148 specialty API and intermediate projects, 61 massive health and
biomaterials projects, and 35 animal health projects. This extensive project pipeline provides a solid
pipeline foundation for medium- and long-term business growth.
      The Company is committed to management innovation and continues to enhance its operating
quality as a means of strengthening its core competitiveness. Leveraging its high-quality product
portfolio, outstanding commercialization capabilities, compliant and efficient marketing and service
system, differentiated market positioning, forward-looking R&D and innovation strategy, and a
well-structured talent echelon plan, the Company is steadily advancing toward long-term,
sustainable and high-quality growth. Since its listing, the Company has made a total of 26 dividend
distributions, with cumulative dividends amounting to RMB 9.89 billion. Through sustained and
stable cash returns, the Company has created substantial long-term investment value for its
shareholders.
III. Analysis of main business
Overview
Please refer to the relevant contents of "I. Main business of the Company during the reporting period".
Year-on-year changes in key accounting data
                                                                                                                      Unit: RMB
                               Current reporting                                       Year-on-year
                                                        Same period last year                                Reason for change
                                    period                                           increase/decrease
 Operating revenue               22,066,646,185.69          21,674,928,965.21                      1.81%
 Operating cost                  14,828,934,265.49          14,327,396,132.90                      3.50%
 Selling expenses                 3,415,134,454.00           3,229,044,236.81                      5.76%
 Management expenses                695,712,456.19             725,296,086.80                     -4.08%
 Financial expenses                  15,815,238.01              22,424,175.74                    -29.47%
 Income tax expense                 371,103,526.62             389,834,341.82                     -4.80%
 R&D investment                     747,087,944.12             999,673,972.93                    -25.27%
 Net cash flow from
 operating activities
 Net cash flows from
                                   -762,606,541.65            -791,757,068.20                      3.68%
 investing activities
                                                                                                           Primarily attributable
                                                                                                           to a decrease in cash
 Net cash flow from
                                   -983,956,953.27          -1,533,431,198.50                     35.83%   payments for other
 financing activities
                                                                                                           activities related to
                                                                                                           financing compared
                                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                                                                                             with the same period of
                                                                                                             the previous year
                                                                                                             Primarily attributable
                                                                                                             to a decrease in net
                                                                                                             cash outflows from
 Net increase in cash
 and cash equivalents
                                                                                                             compared with the
                                                                                                             same period of the
                                                                                                             previous year
Significant changes in the composition or sources of the Company's profits during the reporting period
□Applicable Not applicable
There were no significant changes in the composition or sources of the Company's profits during the reporting period.
Composition of operating revenue
                                                                                                                         Unit: RMB
                                 Current reporting period                       Same period last year
                                                                                                                      Year-on-year
                                                 Proportion to                                Proportion to         increase/decrease
                              Amount                                         Amount
                                               operating revenue                            operating revenue
 Operating revenue        22,066,646,185.69                  100%     21,674,928,965.21                  100%                  1.81%
 By industries
 Commerce                 14,099,335,279.67                 63.89%    13,970,510,608.22                 64.45%                 0.92%
 Manufacturing             8,679,896,494.76                 39.33%     8,603,485,229.15                 39.69%                 0.89%
 Incl.: industry           7,968,908,996.66                 36.11%     7,316,615,884.76                 33.76%                 8.92%
    Medical
 aesthetics business
     Incl.:
 international
 medical aesthetics
 business
          Medical
 aesthetics business         344,790,625.38                 1.56%        725,276,218.82                  3.35%               -52.46%
 in China [Note]
 Offset (inter-
                            -712,585,588.74                             -899,066,872.16
 sectoral offset)
 By products
 By regions
 Sales in China           21,628,415,106.91                 98.01%    21,062,550,182.23                 97.17%                 2.69%
 Overseas sales              438,231,078.78                  1.99%       612,378,782.98                  2.83%               -28.44%
[Note] The medical aesthetics business in China includes revenue from self-operated aesthetic medicine products, revenue from
aesthetic medicine products distributed by the Company's pharmaceutical commercial agency, and revenue from proprietary OTC
weight-loss products.
Industries, products, regions accounting for more than 10% of the Company's operating revenue or operating profit
Applicable □Not applicable
                                                                                                                         Unit: RMB
                                                                                 Year-on-year
                                                                                                   Year-on-year        Year-on-year
                         Operating                            Gross profit        change in
                                         Operating cost                                              change in        change in gross
                          revenue                               margin            operating
                                                                                                   operating cost      profit margin
                                                                                   revenue
 By industries
 Commerce                                                            6.62%              0.92%               1.01%             -0.08%
                                   .67               .01
                                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
 Manufacturing                                                      73.46%                 0.89%             9.01%               -1.98%
 By products
 By regions
 Sales in China                                                     32.28%                 2.69%             3.86%               -0.76%
                                 .91                 .13
 Overseas sales      438,231,078.78      181,659,395.36             58.55%              -28.44%             -19.06%              -4.80%
If the statistical method of the Company's main business data has been adjusted during the reporting period, the Company's main
business data of the most recent period should be adjusted according to the method at the end of the reporting period
□Applicable Not applicable
IV. Analysis of non-main business
Applicable □Not applicable
                                                                                                                            Unit: RMB
                                                           Proportion to total                                        Whether it is
                                    Amount                                           Reason for formation
                                                                 profit                                               sustainable
 Investment income                       595,643.34                       0.03%
 Gains or losses from
 changes in fair value
 Impairment of assets                  -7,889,468.30                     -0.36%
 Non-operating revenue                  1,638,197.10                      0.07%                                No
 Non-operating
 expenses
 Other income                          61,562,073.66                      2.78%                                No
V. Analysis of assets and liabilities
                                                                                                                            Unit: RMB
                     End of the current reporting period           End of the prior year            Increase or          Description of
                                          Proportion to                           Proportion to     decrease in           significant
                         Amount                                 Amount                              proportion             changes
                                           total assets                            total assets
                                                                                                                        Primarily
                                                                                                                        attributable to a
                                                                                                                        decrease in net
                                                                                                                        cash outflows
                                                                                                                        from financing
 Monetary funds                                 14.02%                                  12.75%               1.27%      activities,    an
                                                                                                                        increase in net
                                                                                                                        cash inflows,
                                                                                                                        and an increase
                                                                                                                        in          bank
                                                                                                                        deposits.
 Accounts            8,841,404,841.                          8,985,587,945.
 receivable                      16                                      31
                                                                                                                        Primarily
 Inventory                                      12.58%                                  14.18%               -1.60%     attributable to a
                                                                                                                        decrease in
                                                               Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                                                                                                          finished goods
                                                                                                                          and inventory
 Investment
 property
 Long-term
 equity                                            4.13%                                      3.87%            0.26%
 investment
 Fixed assets                                    10.73%                                   11.45%               -0.72%
 Construction in
 progress
 Right-of-use
 assets
 Short-term             1,715,030,135.                        1,621,903,523.
 borrowings                         18                                    77
 Contract
 liabilities
 Long-term
 borrowings
 Lease liabilities     116,993,386.72              0.29%       88,813,504.20                  0.23%            0.06%
Applicable □Not applicable
                                                                                                               Proportion
                                                                                 Control                       of overseas        Any
   Specific
                 Reason for                                     Operating      measures to      Profitabilit    assets to      significant
 item of the                     Asset scale     Location
                 formation                                       mode            ensure              y          net assets    impairment
    asset
                                                                               asset safety                       of the          risk
                                                                                                                Company
                                                                               Major
                                                                               decisions
                                                                               approved
                                                                               by the
                                                                               Board of
                                                                               Directors,
 Sinclair                       RMB                            Independen                       Loss for
                 Equity                         The United                     routine
 Pharma                         2,007,706,9                    t                                the current         7.79%     No
                 acquisition                    Kingdom                        financial
 Limited                        00                             accounting                       period
                                                                               supervision
                                                                               , and audits
                                                                               conducted
                                                                               by external
                                                                               intermediar
                                                                               y agencies
Applicable □Not applicable
                                                                                                                             Unit: RMB
                                   Profits or   Cumulative     Impairment       Purchase           Sale
                     Opening                                                                                     Other          Closing
     Item                        losses from     fair value     accrued in      amount in        amount in
                     balance                                                                                    changes         balance
                                  changes in      changes       the current    the current      the current
                                                            Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                fair value   recorded in          period      period        period
                                  in the        equity
                                 current
                                  period
 Financial
 assets
 equity                                                                                                             -
 instrument                    820,934.11                                                                 7,845,749.5
 investment                                                                                                         4
 s
 Subtotal of                                                                                                        -
 financial                     820,934.11                                                                 7,845,749.5
 assets                                                                                                             4
 Receivable     460,578,20                                                 4,047,985,0   3,643,296,1                      865,267,15
 s financing          6.16                                                       68.80         18.31                            6.65
 Total of the   1,141,584,4                  4,595,102.0                   4,050,219,5   3,645,246,3                     1,539,532,8
 above                59.92                            4                         34.02         15.05                           63.46
 Financial
 liabilities
Description of other changes
 Other changes are due to exchange rate changes
Whether there is any significant change in the measurement attributes of the Company's main assets during the reporting period
□Yes No
                                                                                                                         Unit: RMB
                                                Closing carrying            Type of
    Item          Closing book balance                                                               Reason for restriction
                                                    amount                 restriction
  Monetary                                                                                 Deposit used for issuing bills, letters
   funds                                                                                              of credit, etc.
  Monetary                                                                                 Time deposits not withdrawable on
   funds                                                                                           demand and interest
  Monetary
   funds
 Fixed assets        104,874,654.12               100,146,512.50           Mortgage         Property used as mortgage for loan
  Intangible
    assets
    Total            279,214,363.80               269,799,807.98
VI. Analysis of investment status
Applicable □Not applicable
    Investment amount in the reporting          Investment in the same period of the                  Percentage change
                                                                   Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
               period (RMB)                                   prior year (RMB)
□Applicable Not applicable
Applicable □Not applicable
                                                                                                                                            Unit: RMB
                                                                                                                         Reaso
                                                         Accum                                                           ns for
                                                                                                              Accum
                                                          ulated                                                         failure
                                              Invest                                                           ulated
                                  Industr                 actual                                                            to
                                               ment                                                            incom
                       Invest        ies                  invest                                                          meet                  Disclo
                                              amoun                                                               e                 Disclo
                        ment      involv                   ment                                  Expect                    the                    sure
            Way of                               t                   Source      Project                      realize                sure
                          in        ed in                amoun                                     ed                    planne                  index
  Item      invest                            during                    of       progre                         d by                date (if
                        fixed        the                   t by                                  earnin                      d                     (if
             ment                               the                   funds        ss                         the end               applica
                       assets      invest                the end                                   gs                    progre                 applica
                                              reporti                                                          of the                ble)
                       or not       ment                  of the                                                         ss and                   ble)
                                                ng                                                            reporti
                                  project                reporti                                                         expect
                                              period                                                             ng
                                                            ng                                                              ed
                                                                                                               period
                                                          period                                                         earnin
                                                                                                                            gs
 Huado
 ng
 Medici
                                  Pharm                                                                                                         CNIN
 ne
                                  aceutic                                                                                                       FO
 Bio-       Self-                              82,380    513,09                                                          Not        Februa
                                  al                                 Own              58.00                                                     (http://
 innova     built      Yes                      ,365.8    5,275.                                     0.00       0.00     applica    ry 8,
                                  manuf                              funds               %                                                      www.c
 tion       project                                  1        85                                                         ble        2024
                                  acturin                                                                                                       ninfo.c
 Intellig
                                  g                                                                                                             om.cn)
 ence
 Center
 Project
 Total         --        --          --         ,365.8    5,275.        --             --            0.00       0.00       --          --          --
(1) Investment in securities
Applicable □Not applicable
                                                                                                                                            Unit: RMB
                                            Accou    Openi     Profit        Cumu           Purch     Sale      Gains      Closin
                      Securi
                                Initial      nting     ng        s or        lative           ase    amou          or        g
 Securi     Securi      ty                                                                                                           Accou       Sourc
                                invest      measu    carryi    losses         fair          amou      nt in     losses     carryi
   ty         ty      abbre                                                                                                          nting        e of
                                 ment       remen      ng       from         value           nt in     the      during       ng
  type       code     viatio                                                                                                          item       funds
                                 cost          t     amou      chang         chang            the    curren       the      amou
                        n
                                            model      nt       es in          es           curren      t       report       nt
                                                           Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                                           fair    record       t     period    ing
                                                          value     ed in    period            period
                                                          in the   equity
                                                          curren
                                                             t
                                                          period
                                                                                                                Invest
 Dome
                                         Fair                                                                   ment
 stic
 and                                                      820,9                                                          Own
          RAPT     RAPT         7,400.   measu    325.5               0.00            196.7    29,06     0.00   other
 overse                                                   34.11                                                          funds
 as
                                         t                                                                      instru
 stocks
                                                                                                                ments
 Total                          7,400.    --      325.5               0.00    0.00    196.7    29,06     0.00     --       --
Note: (1) Huadong Medicine Investment Holding (Hong Kong) Limited ("Huadong Investment"), a wholly-
owned subsidiary of the Company, invested USD 3.00 million in 2018 to purchase 218,102 Series C-2 preferred
shares of RAPT Therapeutics, Inc. RAPT Therapeutics, Inc. was listed on the NASDAQ Stock Market in the
United States on October 30, 2019 (stock code: RAPT). As of the end of the reporting period, all RAPT shares
held by Huadong Medicine Investment Holding (Hong Kong) Limited had been sold.
(2) On March 11, 2024, Huadong Medicine Investment Holding (Hong Kong) Limited, one of the Company's
wholly-owned subsidiaries, subscribed IPO shares of Qyuns Therapeutics Co., Ltd. at the Stock Exchange of
Hong Kong Limited as cornerstone investor with the consideration of equivalent USD 5 million from its own
funds in Hong Kong dollar (excluding brokerage commission, related transaction fees and levies). For details,
please refer to the Announcement on Subscribing IPO Shares of Qyuns Therapeutics Co., Ltd. in Hong Kong as
Cornerstone Investor (Announcement No.: 2024-013) disclosed by the Company on CNINFO
(http://www.cninfo.com.cn). On March 20, 2024, Qyuns Therapeutics was successfully listed on the main board
of the Stock Exchange of Hong Kong with the stock code of 2509.HK. As of the date of this Report, the
Company holds a total of 37,876,800 shares of Qyuns Therapeutics through its wholly-owned subsidiaries
Zhongmei Huadong and Huadong Medicine Investment Holding (Hong Kong) Limited, accounting for
approximately 16.68% of the total shares of Qyuns Therapeutics. Among them, Zhongmei Huadong holds
shares held by Zhongmei Huadong and Huadong Medicine Investment in a consolidated manner, which was
reflected in the long-term equity investment in the financial statements.
(3) On November 28, 2024, Hangzhou Jiuyuan Genetic Biopharmaceutical Co., Ltd., one of the Company's
shareholding enterprises, was successfully listed on the main board of the Stock Exchange of Hong Kong with
the stock name (abbreviation) of Jiuyuan Gene and the stock code of 2566.HK. As of the date of the Report, the
Company holds a total of 42,120,453 shares of Jiuyuan Gene through its wholly-owned subsidiary Hangzhou
Zhongmei Huadong Pharmaceutical Co., Ltd., accounting for approximately 17.16% of the total shares of
Jiuyuan Gene. The Company's shareholding in Jiuyuan Gene was reflected in the long-term equity investment
in the financial statements.
(2) Investment in derivatives
□Applicable Not applicable
The Company had no derivative investment during the reporting period.
□Applicable Not applicable
The Company had no use of raised funds during the reporting period.
                                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
VII. Sale of major assets and equity
□Applicable Not applicable
The Company did not sell major assets during the reporting period.
□Applicable Not applicable
VIII. Analysis of major shareholding companies
Applicable □Not applicable
Major subsidiaries and shareholding companies with an impact of more than 10% on the Company's net profit
                                                                                                                       Unit: RMB
  Company         Type of         Main         Registered                                  Operating      Operating
                                                              Total assets   Net assets                                 Net profit
   name          company         business       capital                                     revenue        profit
                               Production
                               of
                               Traditional
 Hangzhou
                               Chinese
 Zhongmei
                               and
 Huadong                                       872,308,13     23,322,958,    13,822,840,   7,986,595,3   2,124,908,4   1,770,702,9
                Subsidiary     Western
 Pharmaceut                                   0.00                 855.98         772.91         03.35         22.54         31.34
                               APIs and
 ical Co.,
                               formulation
 Ltd.
                               s, and
                               health care
                               products
Acquisition and disposal of subsidiaries during the reporting period
Applicable □Not applicable
                                                Method of acquisition and disposal of      Impact on overall production, operation,
              Company name
                                               subsidiaries during the reporting period               and performance
 Huadong Medicinal Materials
                                              Incorporation                                Pharmaceutical distribution development
 (Wenzhou) Co., Ltd.
 Huadong Medicine E-commerce
                                              Incorporation                                Pharmaceutical distribution development
 (Zhejiang) Co., Ltd.
 Huadong Medicine New Drug R&D
                                              Incorporation                                Innovation R&D platform expansion
 Center (Beijing) Co., Ltd.
Description of major shareholding companies
IX. Structured entities controlled by the Company
□Applicable Not applicable
X. Risks faced by the Company and countermeasures
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
     The pharmaceutical industry is not only a strategic industry that receives strong support and
encouragement from the government, but also one that is directly related to public health and life
safety. It is characterized by intense competition and active innovation, requiring companies to
continuously adapt to changes in market conditions and policy developments. In recent years,
policies such as centralized volume-based procurement and national medical insurance negotiations
have continued to advance, with an increasing trend toward standardization, normalization and
systematization. Meanwhile, external uncertainties such as geopolitical factors and macroeconomic
policies have also disrupted business operations and market conditions, presenting challenges to the
production costs and profitability of the pharmaceutical industry. New drug products may also face
the risk of price reductions.
     Countermeasures: The Company closely monitors macroeconomic policies and industry
development trends and continuously adjusts its business strategies accordingly. In terms of R&D,
the Company continues to increase its investment in R&D and strengthen its long-term
competitiveness and growth potential by continuously expanding its product pipeline in core
therapeutic areas. Meanwhile, the Company continues to deepen its presence in the aesthetic
medicine and industrial microbiology sectors, fostering diversified growth drivers. In addition, the
Company also mitigates its production and operation risks through cost reduction, efficiency
improvement, lean management, or by other means.
     The development of innovative products is characterized by long development cycles,
substantial investment requirements and a high degree of uncertainty. From R&D to
commercialization, an innovative drug must go through multiple stages, including preclinical study,
clinical trial, regulatory submission and registration, approval for production, and commercial
launch. The process is also subject to various uncertainties arising from government policies,
market conditions, regulatory reviews and approvals, among other factors. In addition, the R&D of
innovative drugs requires highly educated and highly qualified R&D professionals. Upfront
investments in personnel and R&D expenses may place a certain degree of pressure on the
Company's achievement of its current-period operating objectives. Following commercialization,
newly launched drugs also require time and market development efforts to achieve meaningful sales
growth, and may be subject to risks such as price reductions. As a result, there is a risk that returns
on R&D investment may fall short of expectations.
     Countermeasures: The Company focuses on its core therapeutic fields and continuously
enhances its in-house R&D capabilities. In recent years, it has enriched and optimized its product
pipelines through a combination of independent R&D and licensed introductions, thereby building a
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
distinctive R&D ecosystem for Huadong Medicine and establishing differentiated R&D portfolios
in oncology, endocrinology and autoimmunity. The Company will also continue to optimize its
innovation mechanisms, improve its scientific evaluation and decision-making systems for new
drug candidates, and deepen cooperation with renowned R&D institutions in China and abroad. At
the same time, the Company will further strengthen its efforts to attract and develop high-caliber
scientific and research talent, enhance the training and incentive mechanisms for key technical
personnel, and build a high-level innovative R&D team capable of supporting the entire life cycle of
innovative drug development.
     External investment is one of the key means through which the Company pursues strategic
transformation and upgrading. In recent years, to support its strategic transformation toward
innovation-driven development, the Company has continued to pursue investment and M&A
activities in the areas of innovative drugs, aesthetic medicine and industrial microbiology, resulting
in goodwill and long-term equity investment of a certain scale. If the operating performance of
investee or acquired companies fluctuates in the future, the related goodwill or long-term equity
investment may be subject to impairment, which could adversely affect the Company's operating
results for the current period. In addition, post-investment management and business integration of
target companies place higher demands on the Company's management capabilities.
     Countermeasures: The Company exercises oversight over acquired subsidiaries through
control of Board of Directors and by appointing management and financial personnel to participate
in major decision-making and daily operations. The Company requires its controlling subsidiaries to
operate in compliance with the relevant internal control requirements applicable to listed companies.
It has established comprehensive management systems for their day-to-day operations and ensured
their effective implementation. The Management of acquired subsidiaries maintains efficient
communication with the Company, while daily operations and major decisions are strictly carried
out in accordance with relevant laws and regulations, the Company's Articles of Association,
management rules, the Board of Directors and the Rules of Procedure for Shareholders' Meeting.
From a risk management and control perspective, the Company conducts business, financial and tax
due diligence on target companies by engaging professional intermediaries and regularly carries out
special-purpose management audits. In addition, the Company is committed to comprehensively
enhancing its capabilities in overall planning and coordination of business operations, management
structures and financial management. It continuously strengthens resource sharing and synergies
with acquired subsidiaries, enhances its capabilities in integrated business management and
coordinated operations and governance, establishes a regular impairment testing mechanism
                                                         Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
covering goodwill and long-term equity investment, and further improves the comprehensiveness,
scientific rigor and timeliness of post-investment management.
      The Company has remained committed to advancing its international development. In recent
years, its international cooperation has continued to deepen, its aesthetic medicine sales network has
expanded globally, and its industrial microbiology segment has accelerated its expansion into
international markets. The proportion of its transactions settled in foreign currencies has been
steadily increasing. The fluctuation in exchange rate will affect the price of the Company's export
products, cause exchange gains and losses to the Company, and increase the operating costs, thus
affecting the Company's assets, liabilities and income, further impacting its operation ability, debt
repayment ability and profitability.
      Countermeasures: The Company will closely monitor exchange rate movements and
dynamically adjust its response strategies based on actual operating conditions to mitigate adverse
impacts. It will enhance awareness of foreign exchange risk prevention and improve its foreign
exchange risk management system. At the same time, the Company will strengthen the professional
capabilities of its financial personnel and enhance their awareness of risk mitigation, while making
effective use of financial instruments and other financial management measures to prudently
manage and mitigate the risks arising from exchange rate fluctuations.
XI. Implementation of the market value management system and valuation enhancement
plan
Whether the Company formulates its market value management system.
Yes □No
Whether the Company discloses its valuation enhancement plan.
□Yes No
      To strengthen its market value management, further standardize its market value management
practices, and practically safeguard the legitimate rights and interests of the Company, its investors,
and other interested stakeholders, the Company has formulated its Market Value Management
System in compliance with relevant laws and regulations, including the Company Law of the
People's Republic of China, the Securities Law of the People's Republic of China, the Several
Opinions of the State Council on Strengthening Regulation, Forestalling Risks, and Promoting
High-Quality Development of the Capital Market, the Administrative Measures for the Disclosure
of Information of Listed Companies, the No. 10 Guideline for the Supervision of Listed Companies -
Market Value Management, as well as the Articles of Association and the Company's operational
                                                         Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
realities. The system was deliberated and approved at the 32nd Meeting of the 10th Board of
Directors. Detailed information and the full text of the system can be found in the relevant
announcement disclosed by the Company on the website of Cninfo (http://www.cninfo.com.cn) on
April 18, 2025.
XII. Implementation status of the Action Plan for "Dual Enhancement of Quality and
Return"
Whether the Company discloses its Action Plan for "Dual Enhancement of Quality and Return".
Yes □No
      The Company has formulated the Action Plan for "Dual Enhancement of Quality and Return"
to implement the guiding principles of "Activating the capital market and boosting investors'
confidence" put forward by the Political Bureau of the CPC Central Committee, and of "Vigorously
improving the quality and investment value of listed companies, taking more powerful and effective
measures to stabilize the market and confidence" emphasized at the executive meeting of the State
Council. The Plan aims to safeguard the interests of all shareholders, continuously strengthen the
Company's core competitiveness and investment value, and achieve high-quality, efficient, and
sustainable development. For details, please refer to the Announcement on Advancing the
Implementation of the Action Plan for "Dual Enhancement of Quality and Return" (Announcement
No.: 2024-011) disclosed by the Company on the website of Cninfo (http://www.cninfo.com.cn) on
March 9, 2024. The progress of the Action Plan is presented as follows:
      (I) Focusing on core responsibilities and principal businesses while maintaining stable
operating performance and efficiency
      The Company implemented the Action Plan for "Dual Enhancement of Quality and Return",
concentrated on four major business segments: pharmaceutical industry, pharmaceutical distribution,
aesthetic medicine, and industrial microbiology. These segments have advanced in a coordinated
and in-depth manner, ensuring stable operational performance and efficiency. In the first half of
increase of 1.81%. The net profit attributable to shareholders of the listed company reached RMB
non-recurring profit and loss stood at RMB 1.858 billion, with a YoY increase of 5.44%. The net
cash flow generated from operating activities during the reporting period was RMB 2.499 billion,
up 1.73% YoY. The operating cash inflow remained in good shape, demonstrating robust earnings
quality and overall stable business performance of the Company.
      (II) Continuing innovative R&D to enhance core competitiveness
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
     Adhering to the "research-driven and patient-centered" philosophy, the Company places great
emphasis on innovation-driven R&D. In recent years, annual R&D expenditures of the Company
have consistently surpassed RMB 1 billion.
     As of the date of the Report, the Company's innovative drug R&D center is advancing 96
innovative drug pipeline projects. Since its establishment 6 years ago, the Innovative Drug R&D
Center has obtained marketing authorization for 12 innovative products in total. During the
reporting period, the NDA for Sailexin/Saijiening for the indication of Crohn's disease was
approved, achieving 4 NDA/BLA applications, 9 IND approvals, and 14 innovative achievements
published at international conferences. In addition, the DR10624 project was granted the
Breakthrough Therapy Designation in China for severe hypertriglyceridemia. The Company's key
projects, DR10624 and HDM2005, were successfully selected for the 2026 National Science and
Technology Major Special Projects. During the reporting period, the Company's R&D investment in
the pharmaceutical industry segment (excluding equity investment) amounted to RMB 1.208 billion,
representing a YoY decrease of 18.58%, among which the direct R&D expenditure reached RMB
pharmaceutical industrial segment.
     In recent years, the Company has placed great emphasis on the protection of intellectual
property rights and the application of research outcomes, with both the number of patent
applications and grants steadily increasing. The Company has filed a total of over 2000 patent
applications domestically and internationally over the years, including more than 610 authorized
invention patents. Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd., a wholly-owned
subsidiary of the Company, is a national intellectual property demonstration enterprise. It passed the
external audit by Zhongzhi (Beijing) Certification Co., Ltd. in November 2014 and became one of
the first 147 enterprises that passed the standards implementation certification. In October 2025, it
smoothly passed the audit of the enterprise intellectual property compliance management system
(Certificate No.: 165IP250489R0L).
     During the reporting period, the Company's patent application and maintenance work
proceeded smoothly. A total of 110 patent applications were filed, including 86 invention patents,
and 44 patents were authorized.
     (III) Improving corporate governance and enhancing the level of compliant operations
     During the reporting period, in accordance with the latest provisions of relevant laws,
regulations and regulatory documents, including the Company Law of the People's Republic of
China, the Stock Listing Rules of the Shenzhen Stock Exchange, the Self-Regulatory Guideline No. 1
for Listed Companies of the Shenzhen Stock Exchange — Standardized Operation of Main Board
                                               Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Listed Companies, and the Code of Corporate Governance for Listed Companies, and in light of the
Company's actual circumstances, the Company adopted the Management System for the
Remuneration of Directors and Senior Managers, and revised the Responsible Marketing Policy
and the Administrative System for the Preparation and Disclosure of Financial Reports. The
continuous improvement of the Company's institutional framework has further optimized its
decision-making and deliberation processes, bringing its corporate governance system more closely
in line with the requirements of market-oriented development and standardized operations. This has
provided a solid institutional foundation for sound and efficient business decision-making and
effectively safeguarded the legitimate rights and interests of the Company, its shareholders and all
stakeholders.
     With regard to ESG, the Company maintained an unwavering commitment to sustainable
development. A Sustainability (ESG) Committee has been established under the Board of Directors
to oversee ESG-related matters. The Company integrates the core ESG principles into corporate
development strategy and daily operations management, guiding and innovating business practices
with a science-based approach to social responsibility. It upholds the idea of green manufacturing,
actively supports China's "carbon neutrality and carbon peaking" goals, operates in strict
compliance with laws and regulations with integrity, and actively fulfills its social responsibilities.
     (IV) Prioritizing shareholder returns and sharing development achievements
     The Company places strong emphasis on management innovation and strives to enhance its
market competitiveness through continuous improvements in operational excellence. Supported by
high-quality products, superior commercialization capabilities, compliant and efficient marketing
services, differentiated market positioning, forward-looking innovation-driven R&D layout, and
comprehensive talent development, the Company continues to exhibit long-term and resilient
growth. Since its listing, the Company has made a total of 26 dividend distributions, with
cumulative dividends amounting to RMB 9.89 billion, providing shareholders with sustained and
stable investment returns.
     Pursuant to the Proposal on the Company's 2026 Semi-Annual Profit Distribution Plan, which
was deliberated and approved at the seventh meeting of the eleventh session of the Company's
Board of Directors on August 25, 2026, based on the Company's existing total share capital of
for every 10 shares to all shareholders. No bonus shares will be issued, and no capitalization of
capital reserves will be made. The total cash dividend is expected to amount to RMB
scope of authorization granted by the 2025 Annual Shareholders' Meeting to the Board of Directors
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
and therefore does not need to be submitted to the Shareholders' Meeting for deliberation and
approval.
     (V) Improving information disclosure and strengthening the communication with
investors
     The Company consistently prioritizes the quality of information disclosure, and utilizes high-
quality, high-standard, and easily understandable disclosures to comprehensively and accurately
convey its operational and developmental status to investors. To facilitate understanding of
company dynamics among international investors, the Company publishes English versions of its
periodic reports, further enhancing its international communication capabilities. Furthermore, the
Company continuously innovates in the format of information disclosure, introduces visual tools
such as "snapshot reports" to present its operational achievements and development plans in a more
intuitive manner, enhancing the practicality and readability of information disclosure.
     The Company regarded investor relations management as a vital component of corporate
governance. It was committed to establishing smooth and efficient communication channels to
continuously enhance interaction quality with the capital market. Through diversified investor
communication activities, the Company actively conveyed its operational achievements and
development strategies, effectively safeguarded investors' right to information and strengthened
market recognition of the Company's long-term value.
     The Company proactively organized specialized activities such as investor Q&A sessions,
performance briefing, investor research events, and the "Investor Reception Day", to provide in-
depth interpretations of its strategies and financial performance. The Company responds to
investors' inquiries through the Shenzhen Stock Exchange's Interactive Platform and has designated
personnel to answer investor hotlines. At the same time, the Company promptly addresses investors'
concerns through its official email address and investor relations email address, ensuring open and
effective communication channels.
     The Company has established a comprehensive new media communication matrix, including
WeChat official account, Tongshunhao account, as well as Snowball and East Money corporate
accounts. The Company flexibly utilized various new media tools to convey the latest developments,
such as operational performance, BD project introductions, R&D progress, award information, and
interpretations of regular reports, to the capital market and a broad range of investors in a concise
and innovative manner.
                                                                Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
       Section IV Corporate Governance, Environment, and Society
I. Changes in directors and senior managers of the Company
□Applicable Not applicable
There were no changes in the Company's directors and senior managers during the reporting period. For details, please refer to the
II. Profit distribution and conversion of capital reserve into share capital during the
reporting period
Applicable □Not applicable
 Number of bonus shares issued per 10 shares (shares)                                                                                 0
 Dividend distribution per 10 shares (RMB) (tax inclusive)                                                                         3.50
 Share capital base for distribution plan (shares)                                                                     1,753,736,848.00
 Amount of cash dividends (RMB) (tax inclusive)                                                                          613,807,896.80
 Amount of cash dividends in other ways (e.g. share repurchase)
 (RMB)
 Total amount of cash dividends (including other ways) (RMB)                                                             613,807,896.80
 Distributable profits (RMB)                                                                                           7,284,510,525.05
 Proportion of total cash dividends (including other ways) to
 total profit distribution
                                                     Current situation of cash dividends
 For companies at a mature stage of development with significant capital expenditure plans, the cash dividend payout ratio shall
 account for no less than 40% in the current profit distribution.
               Detailed description of the profit distribution or plan for conversion of capital reserve into share capital
 The Company's 2026 Semi-Annual Profit Distribution Plan is as follows: based on the Company's existing total share capital of
 will be issued, and no capitalization of capital reserves will be made. The total cash dividend to be distributed will amount to
 RMB 613,807,896.80 (including tax), with the remaining undistributed profits carried forward for distribution in subsequent
 years. If there is a change in the Company's share capital base prior to the implementation of this profit distribution plan, the total
 amount of the cash dividend will be adjusted in accordance with the principle that the distribution ratio per share remains
 unchanged.
 This profit distribution plan complies with the requirements on profit distribution under the Company Law of the People's
 Republic of China, the Regulatory Guidelines for Listed Companies No. 3 — Cash Dividend of Listed Companies, the Self-
 Regulatory Guidelines for Listed Companies No. 1 — Standardized Operation of Main Board Listed Companies of the Shenzhen
 Stock Exchange, and other applicable laws, regulations and regulatory documents, as well as the Company's Articles of
 Association. Accordingly, the interim dividend plan is lawful, compliant and reasonable.
 This profit distribution plan takes into full consideration the Company's current operating conditions and future funding
 requirements, as well as the reasonable expectations and investment returns of its investors. The plan is commensurate with the
 Company's operating performance and future development and is consistent with its development plans. It will not have a material
 impact on the Company's operating cash flow or affect its normal operations or long-term development, and will not prejudice the
 interests of the Company's shareholders, particularly its minority shareholders.
 At the 2025 Annual Shareholders' Meeting, held on May 20, 2026, the Company approved the Proposal on Authorizing the Board
 of Directors to Formulate the 2026 Interim Dividend Plan, authorizing the Board of Directors to formulate specific dividend plans
 in accordance with the resolution of the Shareholders' Meeting, subject to the fulfillment of the conditions for profit distribution.
 The preconditions for the 2026 interim dividend are as follows: (1) the Company achieves stable growth in net profit attributable
 to shareholders of the listed company in the current period; and (2) the Company's cash flow can meet the needs of normal
 operations and sustainable development. The total amount of the interim dividend shall not exceed 50% of the net profit
                                                          Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
 attributable to shareholders of the listed company for the corresponding period, and shall not be less than RMB 500 million (tax
 inclusive). This 2026 semi-annual profit distribution scheme falls within the scope authorized by the 2025 Annual Shareholders'
 Meeting resolution to the Board of Directors and does not require further approval by the Shareholders' Meeting.
III. Implementation of the Company's equity incentive plan, employee stock ownership plan
or other employee incentive measures
Applicable □Not applicable
      (1) On August 8, 2022, the Company convened the 2nd Meeting of the 10th Board of Directors
and the 2nd Meeting of the 10th Board of Supervisors, on which the following proposals were
reviewed and approved: the Proposal on the Company's Restricted Stock Incentive Plan in 2022
(Draft) and Its Abstract, the Proposal on Management Rules for the Implementation and
Assessment of the Company's Restricted Stock Incentive Plan in 2022, the Proposal on the
Management Rules of the Company's Restricted Stock Incentive Plan in 2022, and the Proposal on
Applying to the General Meeting of Shareholders for Authorizing the Board of Directors to Handle
Equity Incentive-related Matters. Independent directors provided their independent opinions on
whether this incentive plan is conducive to the Company's sustainable development and whether it
may harm the interests of the Company and all shareholders. For specific details, please refer to the
relevant announcement published by the Company on CNINFO on August 10, 2022.
      (2) On August 10, 2022, the Company disclosed the Announcement on Independent Directors
Publicly Soliciting Proxy Voting Rights on Cninfo (http://www.cninfo.com.cn). Mr. Wang Ruwei,
an Independent Director of the Company, acting as the convener and commissioned by other
independent directors, publicly solicited proxy voting rights from all shareholders of the Company
for the proposals related to the Restricted Stock Incentive Plan in 2022 reviewed at the 1st
Extraordinary General Meeting of Shareholders in 2022, which was set to be convened on August
      (3) From August 15 to 25, 2022, the Company posted on its intranet the list of the first batch of
incentive recipients under the Restricted Stock Incentive Plan in 2022, for a total of 10 days. By the
end of the public announcement period on August 25, 2022, the Board of Supervisors had not
received any objections against the incentive recipients from any individuals. On August 25, 2022,
the Board of Supervisors of the Company convened a meeting to review and approve the
Verification Opinions and Announcement Note on the List of the First Batch of Incentive Recipients
under the Company's Restricted Stock Incentive Plan in 2022. The Company then disclosed these
Verification Opinions and relevant announcements on Cninfo (http://www.cninfo.com.cn).
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
     (4) On August 31, 2022, the Company convened the 1st Extraordinary General Meeting in
Company's Restricted Stock Incentive Plan in 2022 (Draft) and Its Abstract, the Proposal on
Management Rules for the Implementation and Assessment of the Company's Restricted Stock
Incentive Plan in 2022, the Proposal on the Management Rules of the Company's Restricted Stock
Incentive Plan in 2022, and the Proposal on Applying to the General Meeting of Shareholders for
Authorizing the Board of Directors to Handle Equity Incentive-related Matters. On the same day,
the Company disclosed the Self-Inspection Report on Trading of Company Shares by Insiders and
Incentive Recipients under Restricted Stock Incentive Plan in 2022 and related announcements on
Cninfo (http://www.cninfo.com.cn). This incentive plan was approved at the Company's 1st
Extraordinary General Meeting in 2022, and the Board of Directors was authorized to implement
the Company's Restricted Stock Incentive Plan in 2022 and handle relevant matters according to the
laws and regulations.
     (5) On October 27, 2022, the Company convened the 4th Meeting of the 10th Board of
Directors and the 5th Meeting of the 10th Board of Supervisors, on which the following proposals
were reviewed and approved: the Proposal on Adjustments of the Company's Restricted Stock
Incentive Plan in 2022, and the Proposal on Granting Restricted Stocks to the First Batch of
Incentive Recipients under the Restricted Stock Incentive Plan in 2022. The Board of Directors
confirmed that the grant conditions under the incentive plan were satisfied. The Board of
Supervisors re-verified the list of incentive recipients on the first grant date and provided opinions
on the adjustment and grant. The Company's independent directors agreed on the above proposals,
with related reports prepared by the lawyers and independent financial advisers. On October 28,
     (6) On November 9, 2022, the Company disclosed the Announcement on Completion of
Registration of the First Grant of Restricted Stocks under the Restricted Stock Incentive Plan in
Restricted Stock Incentive Plan in 2022, and the listing date of the granted restricted stocks was
November 15, 2022.
     (7) On July 12, 2023, the Company convened the 12th Meeting of the 10th Board of Directors
and the 8th Meeting of the 10th Board of Supervisors, on which the following proposals were
reviewed and approved: the Proposal on Adjusting the Grant Price of Reserved Stocks under the
Restricted Stock Incentive Plan in 2022 and the Proposal on Granting Reserved Restricted Stocks to
Incentive Recipients under the Restricted Stock Incentive Plan in 2022. The Board of Directors
confirmed that reserved conditions of the incentive plan for granting restricted stocks were fulfilled,
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
and the Board of Supervisors re-verified the list of incentive recipients on the date of granting
reserved stocks, and provided opinions on the grant. The Company's independent directors agreed
on the above proposals, with related reports prepared by the lawyers and independent financial
advisers. On the same day, the Company disclosed the relevant announcement on CNINFO.
     (8) From July 13 to 23, 2023, the Company publicly displayed the list of incentive recipients
for the reserved restricted stocks under this Restricted Stock Incentive Plan through its OA system,
for a total of 10 days. By the end of the public announcement period on July 23, 2023, the Board of
Supervisors had not received any objections against the incentive recipients from any individuals.
On July 26, 2023, the Company convened a meeting of the Board of Supervisors, on which the
following proposals were reviewed and approved: the Verification Opinions of the Board of
Supervisors and Announcement Note on the List of Incentive Recipients for Reserved Restricted
Stocks Granted under the Company's Restricted Stock Incentive Plan in 2022. On the same day, the
Company disclosed the Verification Opinions of the Board of Supervisors and Announcement Note
on the List of Incentive Recipients for Reserved Restricted Stocks Granted under the Company's
Restricted   Stock   Incentive    Plan   in   2022      and     related     announcements           on     Cninfo
(http://www.cninfo.com.cn).
     (9) On September 27, 2023, the Company disclosed the Announcement on Completion of the
Reserved Grant under the Restricted Stock Incentive Plan in 2022. The Company completed the
registration of the reserved restricted stocks granted under the Restricted Stock Incentive Plan in
     (10) On November 21, 2023, the Company convened the 18th Meeting of the 10th Board of
Directors and the 12th Meeting of the 10th Board of Supervisors, on which the following proposals
were reviewed and approved: Proposal on the Fulfillment of Conditions for the First Restriction
Release Period of the Initial Grant of Restricted Stocks under the Restricted Stock Incentive Plan in
Directors confirmed that the conditions for releasing restrictions during the first restriction release
period of the first grant of restricted stocks under the Restricted Stock Incentive Plan in 2022 had
been satisfied. Pursuant to the authorization granted by the Company's 1st Extraordinary General
Meeting in 2022, the Board of Directors approved the completion of the procedures for releasing
the restrictions on 1,220,940 restricted stocks under the first restriction release period for 108
incentive recipients. The Board of Directors also approved the repurchase and cancellation of a total
of 97,800 restricted stocks that had been granted but not yet released, corresponding to 4 incentive
recipients who were no longer eligible due to resignation and 2 incentive recipients who failed to
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
fully meet the individual performance assessment criteria for the first restriction release period. The
Company's independent directors issued concurring independent opinions on the relevant matters,
and the Board of Supervisors provided verification opinions, with related reports prepared by the
lawyers and independent financial advisers. On the same day, the Company disclosed the relevant
announcement on CNINFO.
     (11) On December 1, 2023, the Company disclosed the Hint on Circulation of Restricted
Stocks Released during the First Restriction Release Period for First Grant of Restricted Stocks
under the Restricted Stock Incentive Plan in 2022. The restricted stocks released from the first
restriction release period of the first grant under the Restricted Stock Incentive Plan in 2022 became
tradable on December 5, 2023.
     (12) On December 8, 2023, the Company convened its 2nd Extraordinary General Meeting in
Proposal on Altering the Registered Capital and Amending the Articles of Association were
approved after review. On the same day, the Company disclosed the Announcement on Reducing
Registered Capital by Repurchasing and Canceling Some Restricted Stocks and Notifying Creditors.
As of January 24, 2024, the benchmark date for capital verification, i.e., within forty-five days from
the date when the Company announced the reduction of capital, no creditor requested the Company
to pay off its debts or provide corresponding guarantees.
     (13) On March 28, 2024, the Company disclosed the Announcement on the Completion of the
Repurchase and Cancellation of Certain Restricted Stocks. On March 26, 2024, the Company
completed the procedures for repurchase and cancellation of 97,800 restricted stocks in Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited.
     (14) On May 30, 2024, the Company convened the 24th Meeting of the 10th Board of
Directors and the 16th meeting of the 10th Board of Supervisors, during which the Proposal on
Adjusting the Repurchase Price of the Restricted Stock Incentive Plan in 2022 and the Proposal on
Repurchase and Cancellation of Certain Restricted Stocks were reviewed and approved. The Board
of Directors agreed to repurchase and cancel a total of 65,000 restricted stocks that had been
granted but not yet released from restrictions, corresponding to 5 incentive recipients who were no
longer eligible due to resignation. The Board of Supervisors provided verification opinions on the
relevant matters. with related reports prepared by the lawyers and independent financial advisers.
On the same day, the Company disclosed the relevant announcement on CNINFO.
     (15) On June 18, 2024, the Company convened its 1st Extraordinary General Meeting in 2024,
where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks and the Proposal
on Expanding the Business Scope, Altering the Registered Capital and Amending the "Articles of
                                               Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Association" were reviewed and approved. On the same day, the Company disclosed the
Announcement on Reducing Registered Capital by Repurchasing and Canceling Some Restricted
Stocks and Notifying Creditors. As of August 5, 2024, the benchmark date for capital verification,
i.e., within forty-five days from the date when the Company announced the reduction of capital, no
creditor requested the Company to pay off its debts or provide corresponding guarantees.
     (16) On August 29, 2024, the Company disclosed the Announcement on the Completion of the
Repurchase and Cancellation of Certain Restricted Stocks. On August 27, 2024, the Company
completed the procedures for repurchase and cancellation of 65,000 restricted stocks in Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited.
     (17) On October 10, 2024, the Company convened the 28th Meeting of the 10th Board of
Directors and the 18th Meeting of the 10th Board of Supervisors. During these two meetings, the
Proposal on the Fulfillment of the Release Conditions during the First Restriction Release Period
of the Reserved Restricted Stocks Granted under the Restricted Stock Incentive Plan in 2022 was
reviewed and approved. The Board of Directors confirmed that the conditions for releasing
restrictions during the first restriction release period of the reserved grant of restricted stocks under
the Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to the authorization granted
by the Company's 1st Extraordinary General Meeting in 2022, the Board of Directors approved the
completion of the procedures for releasing the restrictions on 192,500 restricted stocks under the
first restriction release period for 18 incentive recipients. The Board of Supervisors provided
verification opinions on the relevant matters. with related reports prepared by the lawyers and
independent financial advisers. On the same day, the Company disclosed the relevant
announcement on CNINFO.
     (18) On October 24, 2024, the Company disclosed the Hint on Circulation of Restricted Stocks
Released during the First Restriction Release Period of Reserved Restricted Stocks Granted under
the Restricted Stock Incentive Plan in 2022. The restricted stocks released from the first restriction
release period of the reserved grant under the Restricted Stock Incentive Plan in 2022 became
tradable on October 28, 2024.
     (19) On November 25, 2024, the Company convened the 30th Meeting of the 10th Board of
Directors and the 20th Meeting of the 10th Board of Supervisors, during which the following
proposals were reviewed and approved: Proposal on the Fulfillment of the Release Conditions
during the Second Restriction Release Period for First Grant of Reserved Restricted Stocks under
the Restricted Stock Incentive Plan in 2022, the Proposal on Adjusting the Repurchase Price of the
Restricted Stock Incentive Plan in 2022 and the Proposal on Repurchase and Cancellation of
Certain Restricted Stocks. The Board of Directors confirmed that the conditions for releasing
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
restrictions during the second restriction release period of the first grant of restricted stocks under
the Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to the authorization granted
by the Company's 1st Extraordinary General Meeting in 2022, the Board of Directors approved the
completion of the procedures for releasing the restrictions on 1,063,740 restricted stocks under the
second restriction release period for 90 incentive recipients. The Board of Directors also approved
the repurchase and cancellation of a total of 185,500 restricted stocks that had been granted but not
yet released from restrictions, corresponding to 1 incentive recipient who was no longer eligible due
to resignation, 16 incentive recipients whose individual performance assessment results for the
second restriction release period were unqualified, and 1 reserved incentive recipient whose
individual performance assessment results for the first restriction release period were unqualified.
The Board of Supervisors provided verification opinions on the relevant matters. with related
reports prepared by the lawyers and independent financial advisers. On November 27, 2024, the
Company disclosed the relevant announcements on Cninfo (http://www.cninfo.com.cn).
     (20) On December 13, 2024, the Company disclosed the Hint on Circulation of Restricted
Stocks Released during the Second Restriction Release Period for First Grant of Restricted Stocks
under the Restricted Stock Incentive Plan in 2022. The restricted stocks released from the second
restriction release period of the first grant under the Restricted Stock Incentive Plan in 2022 became
tradable on December 16, 2024.
     (21) On December 20, 2024, the Company convened its 2nd Extraordinary General Meeting in
Proposal on Expanding the Business Scope, Altering the Registered Capital and Amending the
"Articles of Association" were reviewed and approved. On the same day, the Company disclosed
the Announcement on Reducing Registered Capital by Repurchasing and Canceling Some
Restricted Stocks and Notifying Creditors. As of February 5, 2025, the benchmark date for capital
verification, i.e., within forty-five days from the date when the Company announced the reduction
of capital, no creditor requested the Company to pay off its debts or provide corresponding
guarantees.
     (22) On March 28, 2025, the Company disclosed the Announcement on the Completion of the
Repurchase and Cancellation of Certain Restricted Stocks. On March 26, 2025, the Company
completed the procedures for repurchase and cancellation of 185,500 restricted stocks in Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited.
     (23) On June 27, 2025, the Company convened the 34th Meeting of the 10th Board of
Directors and the 24th Meeting of the 10th Board of Supervisors, where the Proposal on Adjusting
the Repurchase Price of the Restricted Stock Incentive Plan in 2022 and the Proposal on
                                               Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Repurchase and Cancellation of Certain Restricted Stocks and Reduction of the Company's
Registered Capital were reviewed and approved. The Board of Directors agreed to repurchase and
cancel a total of 56,000 restricted stocks that had been granted but not yet released from restrictions,
corresponding to 6 incentive recipients who were no longer eligible due to resignation, and to
reduce the Company's registered capital accordingly. The Board of Supervisors provided
verification opinions on the relevant matters. with related reports prepared by the lawyers and
independent financial advisers. On July 1, 2025, the Company disclosed the relevant announcement
on CNINFO.
     (24) On July 16, 2025, the Company convened its 1st Extraordinary General Meeting in 2025,
where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks and Reduction of
the Company's Registered Capital was reviewed and approved. On the same day, the Company
disclosed the Announcement on Reducing Registered Capital by Repurchasing and Canceling Some
Restricted Stocks and Notifying Creditors. As of September 1, 2025, the benchmark date for capital
verification, i.e., within forty-five days from the date when the Company announced the reduction
of capital, no creditor requested the Company to pay off its debts or provide corresponding
guarantees.
     (25) On September 11, 2025, the Company disclosed the Announcement on the Completion of
Repurchase and Cancellation of Certain Restricted Stocks. On September 9, 2025, the Company
completed the procedures for repurchase and cancellation of 56,000 restricted stocks at Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited.
     (26) On October 13, 2025, the Company convened the 3rd Meeting of the 11th Board of
Directors, where the Proposal on the Fulfillment of Conditions for the Second Restriction Release
Period of Reserved Restricted Stocks Granted under the Restricted Stock Incentive Plan in 2022
was reviewed and approved. The Board of Directors confirmed that the conditions for releasing
restrictions during the second restriction release period of the reserved restricted stocks granted
under the Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to the authorization
granted by the Company's 1st Extraordinary General Meeting in 2022, the Board of Directors
approved the completion of the procedures for releasing the restrictions on 175,000 restricted stocks
under the second restriction release period for 16 incentive recipients. The Remuneration and
Appraisal Committee of the Board of Directors issued verification opinions on relevant matters,
while lawyers and independent financial advisors provided corresponding reports. On October 15,
     (27) On October 25, 2025, the Company disclosed the Hint on Circulation of Restricted Stocks
Released during the Second Restriction Release Period of Reserved Restricted Stocks Granted
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
under the Restricted Stock Incentive Plan in 2022. The restricted stocks released from the second
restriction release period of the reserved restricted stocks granted under the Restricted Stock
Incentive Plan in 2022 became tradable on October 29, 2025.
     (28) On November 20, 2025, the Company convened the 5th Meeting of the 11th Board of
Directors, on which the following proposals were reviewed and approved: Proposal on the
Fulfillment of the Release Conditions during the Third Restriction Release Period for First Grant of
Reserved Restricted Stocks under the Restricted Stock Incentive Plan in 2022, the Proposal on
Adjusting the Repurchase Price of the Restricted Stock Incentive Plan in 2022 and the Proposal on
Repurchase and Cancellation of Certain Restricted Stocks. The Board of Directors believed that the
conditions for releasing restrictions during the third restriction release period of the first grant of
restricted stocks under the Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to
the authorization granted by the Company's 1st Extraordinary General Meeting in 2022, the Board
of Directors agreed to handle the releasing procedures for 1,275,120 restricted stocks for 77
incentive recipients during the third restriction release period, and also approved the repurchase and
cancellation of a total of 284,200 restricted stocks that had been granted but not yet released from
trading restrictions, corresponding to 6 incentive recipients who were no longer eligible due to
resignation, 16 incentive recipients whose individual performance assessment results for the third
restriction release period were unqualified, 3 incentive recipients whose individual performance
assessment results for the restriction release period were qualified among the initially granted
incentive recipients, 1 reserved incentive recipient who was no longer eligible due to resignation,
and 2 incentive recipients whose individual performance evaluations for the second restriction
release period were unqualified among the incentive recipients of reserved grants. The
Remuneration and Appraisal Committee of the Board of Directors issued verification opinions on
relevant matters, while lawyers and independent financial advisors provided corresponding reports.
On November 22, 2025, the Company disclosed the relevant announcements on Cninfo
(http://www.cninfo.com.cn).
     (29) On December 6, 2025, the Company disclosed the Hint on Circulation of Restricted
Stocks Released during the Third Restriction Release Period for First Grant of Restricted Stocks
under the Restricted Stock Incentive Plan in 2022. The restricted stocks released from the third
restriction release period of the first grant under the Restricted Stock Incentive Plan in 2022 became
tradable on December 10, 2025.
     (30) On December 9, 2025, the Company convened its 2nd Extraordinary Shareholders'
Meeting in 2025, where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks
and the Proposal on Expanding the Business Scope, Altering the Registered Capital and Amending
                                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
the "Articles of Association" were reviewed and approved. On the same day, the Company
disclosed the Announcement on Reducing Registered Capital by Repurchasing and Canceling Some
Restricted Stocks and Notifying Creditors. As of January 23, 2026, the benchmark date for capital
verification, i.e., within forty-five days from the date when the Company announced the reduction
of capital, no creditor requested the Company to pay off its debts or provide corresponding
guarantees.
      (31) On March 7, 2026, the Company disclosed the Announcement on the Completion of
Repurchase and Cancellation of Certain Restricted Stocks. On March 5, 2026, the Company
completed the procedures for repurchase and cancellation of 284,200 restricted stocks at Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited.
□Applicable Not applicable
□Applicable Not applicable
IV. Disclosure of environmental information
Whether the listed company and its major subsidiaries are included in the list of enterprises legally required to disclose
environmental information
Yes □No
 Number of enterprises included in the list of enterprises legally required to disclose
 environmental information (unit)
                                                                                              Index for accessing the environmental
                     No.                                    Enterprise name
                                                                                                  information disclosure report
                                                                                             Enterprise Environmental Information
                                                                                             Disclosure System (Zhejiang):
                                                                                             https://mlzj.sthjt.zj.gov.cn/eps/index/ente
                                                                                             rprise-
                                                                                             more?code=91330100609120774J&uniq
                                                                                             ueCode=f07f08c3e871f665&date=2026
                                                                                             &type=true&isSearch=true
                                               Hangzhou Zhongmei Huadong
                                               Pharmaceutical Co., Ltd.
                                                                                             National Pollutant Discharge Permit
                                                                                             Management Information Platform
                                                                                             (Public Access):
                                                                                             https://permit.mee.gov.cn/perxxgkinfo/xk
                                                                                             gkAction!xkgk.action?xkgk=getxxgkCon
                                                                                             tent&dataid=5fce8b294f2542e8a5aa1841
                                                                                             f3251baa
                                                                                             Enterprise Environmental Information
                                               Hangzhou Zhongmei Huadong                     Disclosure System (Zhejiang):
                                               Pharmaceutical Jiangdong Co., Ltd.            https://mlzj.sthjt.zj.gov.cn/eps/index/ente
                                                                                             rprise-
                 Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                             more?code=913301000678586850&uniq
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                                             &type=true
                                             National Pollutant Discharge Permit
                                             Management Information Platform
                                             (Public Access):
                                             https://permit.mee.gov.cn/perxxgkinfo/xk
                                             gkAction!xkgk.action?xkgk=getxxgkCon
                                             tent&dataid=1d7a321cefe745c99140308
                                             e0eea1fa4
                                             Filling of "Environmental Portrait"
                                             enterprise environmental information
                                             disclosure system for Jiangsu enterprises
                                             (One File for One Enterprise):
                                             http://ywxt.sthjt.jiangsu.gov.cn:18181/sp
                                             sarchive-
                                             webapp/web/viewRunner.html?viewId=h
                                             ttp%3A%2F%2Fywxt.sthjt.jiangsu.gov.c
                                             n%3A18181%2Fspsarchive-
                                             webapp%2Fweb%2Fsps%2Fviews%2Fy
                                             fpl%2Fviews%2FyfplEntInfo%2Findex.j
                                             b981d864df49c63d93039dc2d3f&versio
                                             nId=1B45D14C2F334189899BB095514
                                             National Pollutant Discharge Permit
                                             Management Information Platform
                                             (Public Access):
                                             https://permit.mee.gov.cn/perxxgkinfo/xk
                                             gkAction!xkgk.action?xkgk=getxxgkCon
                                             tent&dataid=40175a71fada4866a256047
                                             dc4e460ed
                                             Enterprise Environmental Information
                                             Disclosure System (Anhui):
                                             https://39.145.37.16:8081/zhhb/yfplpub_
                                             html/?mcpParams=%7B%7D#/searchPa
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                                             BD%E7%BE%8E%E5%8D%8E%E9%
                                             AB%98%E7%A7%91&hy=%5B%5D
    Anhui Meihua Hi-Tech Pharmaceutical
    Co., Ltd.
                                             National Pollutant Discharge Permit
                                             Management Information Platform
                                             (Public Access):
                                             https://permit.mee.gov.cn/perxxgkinfo/xk
                                             gkAction!xkgk.action?xkgk=getxxgkCon
                                             tent&dataid=8159494acc9847248285d17
                                             Enterprise Environmental Information
                                             Disclosure System (Anhui):
                                             https://39.145.37.16:8081/zhhb/yfplpub_
                                             html/?mcpParams=%7B%7D#/searchPa
    Wuhu Huaren Science and Technology
    Co., Ltd.
                                             National Pollutant Discharge Permit
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                                                          Management Information Platform
                                                                          (Public Access):
                                                                          https://permit.mee.gov.cn/perxxgkinfo/xk
                                                                          gkAction!xkgk.action?xkgk=getxxgkCon
                                                                          tent&dataid=2ae2e3ca099d4c8f9cb3058
                                                                          Enterprise Environmental Information
                                                                          Disclosure System (Shaanxi):
                                                                          http://113.140.66.227:11077/#/noLogin/q
                                                                          ymd?key=%E5%8D%8E%E4%B8%9C
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                                                                          %88%E8%A5%BF%E5%AE%89%EF
                                                                          %BC%89%E5%8D%9A%E5%8D%8E
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                                  Huadong Medicine (Xi'an) Bodyguard      %89%E9%99%90%E5%85%AC%E5%
                                  Pharmaceutical Co., Ltd.                8F%B8
                                                                          National Pollutant Discharge Permit
                                                                          Management Information Platform
                                                                          (Public Access):
                                                                          https://permit.mee.gov.cn/perxxgkinfo/xk
                                                                          gkAction!xkgk.action?xkgk=getxxgkCon
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                                                                          a0def606d
V. Social responsibility
    In the process of its strategic transformation, the Company strictly fulfills its corporate social
responsibilities, and actively addresses the concerns of all stakeholders, including shareholders,
governments and regulatory agencies, employees, customers and patients, suppliers, communities,
the public, as well as partners The Company continues to deepen its engagement in public health
education, expand access to medical services to a broader population, and strive to provide
affordable healthcare solutions for patients. Meanwhile, the Company remains committed to social
welfare initiatives, uniting diverse forces to deliver warmth and care. By sharing cutting-edge
technologies and collaborating with leading experts and industry partners, the Company also
continues to drive progress in both industry development and societal advancement.
                                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                      Section V Important Matters
I. Commitments that have been fulfilled by the commitment-related parties, such as de facto
controller, shareholders, related parties, acquirers and the Company, during the reporting
period, and those have not been fulfilled as of the end of the reporting period
□Applicable Not applicable
During the reporting period, the company did not have any commitments made by the de facto controller, shareholders, related
parties, acquirers, or the Company itself that were fulfilled during the reporting period or remained overdue as of the end of the
reporting period.
II. Non-operational appropriation of funds of the listed company by controlling
shareholders and other related parties
□Applicable Not applicable
During the reporting period, there was no non-operational appropriation of funds of the listed company by controlling shareholders
and other related parties
III. Violations of external guarantees
□Applicable Not applicable
There was no violation of external guarantee during the reporting period.
IV. Appointment and dismissal of accounting firms
Whether the semi-annual financial report has been audited
□Yes No
The Company's semi-annual report has not been audited.
V. Explanations by the Board of Directors on the "Non-standard Audit Report" during the
reporting period
□Applicable Not applicable
VI. Explanation of the Board of Directors on the situation relating to the "Non-standard
Audit Report" of the prior year
□Applicable Not applicable
VII. Matters related to bankruptcy and reorganization
□Applicable Not applicable
The Company was not involved in matters related to bankruptcy and reorganization during the reporting period.
                                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
VIII. Litigation matters
Significant litigation and arbitration matters
□Applicable Not applicable
During the reporting period, the company was not involved in major litigation or arbitration matters.
Other litigation matters
Applicable □Not applicable
                                                                      Adjudication
      Basic          Amount          Whether an                                        Execution of
                                                     Progress of       result and
  information        involved        estimated                                           litigation      Disclosure       Disclosure
                                                      litigation       impact of
  of litigation        (RMB          liability is                                      (arbitration)        date            index
                                                    (arbitration)       litigation
  (arbitration)       10,000)          formed                                           judgments
                                                                      (arbitration)
                                                    Some cases
                                                    are pending
                                                    trial, while
                                                    some have
                                                    been
                                                    adjudicated
                                                    and       the
                                                    relevant
                                                                                       Some cases
                                                    judgments
 Summary of                                                                            have been
                                                    have become
 matters not                                                          The              executed,
                                                    effective (Of
 meeting the                                                          summary of       some
                                                    the
 thresholds                                                           the litigation   adjudicated
                                                    concluded
 for disclosure        36,959.63    No                                matters has      cases are                      /
                                                    cases,    the
 of major                                                             no significant   under
                                                    total amount
 litigations                                                          impact on the    enforcement,
                                                    involved is
 (arbitrations)                                                       Company          some cases
                                                    RMB
 (China)                                                                               are not
                                                                                       adjudicated
                                                    million,    of
                                                    which RMB
                                                    million
                                                    remains
                                                    pending
                                                    enforcement.
                                                    )
                                                                                       Some first-
 Summary of
                                                                                       instance
 matters not                                                          The
                                                                                       judgments
 meeting the                                                          summary of
                                                                                       have been
 thresholds                                                           the litigation
                                                    All cases are                      issued and
 for disclosure            6,930    No                                matters has                                     /
                                                    under trials                       are still
 of major                                                             no significant
                                                                                       under appeal.
 litigations                                                          impact on the
                                                                                       some cases
 (arbitrations)                                                       Company
                                                                                       are not
 (overseas)
                                                                                       adjudicated
 Hangzhou                                           The      first-   This                                            For details,
                                                                                       The first-
 Zhongmei                                           instance          litigation is                                   please refer
                                                                                       instance
 Huadong                                            judgment has      still pending                                   to        the
                                                                                       judgment has     December
 Pharmaceutic          11,137.58    No              been              at the                                          Announceme
                                                                                       not yet          15, 2025
 al Co., Ltd.,                                      received          second-                                         nt on the
                                                                                       become
 the                                                from       the    instance                                        Receipt     of
                                                                                       effective.
 Company's                                          Zhejiang          stage and                                       the     First-
                                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
 wholly-                                            High              does not                                           Instance
 owned                                              People's          have a                                             Civil
 subsidiary,                                        Court.            material                                           Judgment by
 demanded                                           Zhongmei          impact on the                                      the Wholly-
 that Qinghai                                       Huadong has       Company.                                           Owned
 Everest                                            filed      an                                                        Subsidiary
 Cordyceps                                          appeal     in                                                        (Announcem
 Sinensis Raw                                       accordance                                                           ent       No.:
 Materials                                          with the law.                                                        2025-113)
 Co., Ltd.                                          The Supreme                                                          disclosed by
 (Defendant                                         People's                                                             the Company
 Qinghai                                            hearing    on                                                        website     of
 Everest                                            April     23,                                                        Cninfo
 Cordyceps                                          2026.                                                                (http://www.
 Sinensis                                                                                                                cninfo.com.c
 Pharmaceutic                                                                                                            n)          on
 al Co., Ltd.                                                                                                            December
 (Defendant                                                                                                              15, 2025.
 immediately
 cease all acts
 of
 infringement
 of relevant
 invention
 patents of
 Zhongmei
 Huadong and
 compensate
 for damages.
      Note: During the reporting period, the Company made positive progress in initiating administrative rulings and lawsuits against
ZL202211596913.5) owned by Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd. (hereinafter referred to as "Zhongmei
Huadong"), its wholly-owned subsidiary. The Company also actively defended against the patent invalidation request filed by the
accused infringing enterprises. As of August 25, 2026, the progress is as follows:
Property Office, Huzhou Intellectual Property Office, Chengdu Intellectual Property Office, Nanjing Intellectual Property Office,
Guangdong Intellectual Property Office, and Changsha Intellectual Property Office regarding patent infringement by 20 companies,
demanding an immediate cessation of the infringing activities. As of August 25, 2026, the Hangzhou Intellectual Property Office had
issued 4 administrative rulings, all finding that infringement had occurred and ordering the involved enterprises to immediately cease
their infringing activities. In response to the above administrative rulings, the involved enterprises filed administrative lawsuits
before the Hangzhou Intermediate People's Court, with Zhongmei Huadong participating in the proceedings as a third party. One case
involving an administrative ruling was withdrawn due to jurisdictional issues, one administrative ruling was upheld by the Hangzhou
Intermediate People's Court, and the remaining 2 cases remain pending before the court. Guangdong Intellectual Property Office
issued an administrative decision in one case, determining that the alleged infringement was not established. The decision further
clarified that, if a subsequent effective judgment of a people's court makes a new determination regarding the scope of protection
afforded by the claims of the patent at issue, Zhongmei Huadong may re-submit a request for an administrative ruling on the patent
infringement dispute based on the new effective decision confirming the validity and ownership of the patent rights. Zhongmei
Huadong has filed an administrative lawsuit against the administrative decision in accordance with the law. The administrative ruling
application filed with the Changsha Intellectual Property Office has been accepted but has not yet proceeded to an oral hearing. The
other applications for administrative rulings have been docketed and accepted by the intellectual property offices in the respective
regions, and oral hearings have been completed, but rulings have not yet been issued.
with the Hangzhou Intermediate People's Court in 2024 and 2025, respectively, requesting an immediate cessation of the infringing
acts and compensation for losses. One case has obtained a judgment determining infringement, and the involved enterprise has filed
an appeal with the Supreme People's Court, which has been accepted and is pending adjudication; the other case has been accepted
by the Hangzhou Intermediate People's Court, but has not yet been adjudicated.
invalidation concerning the patent at issue. On March 12, 2025, the China National Intellectual Property Administration (CNIPA)
issued decisions on the examination of requests for patent invalidation in all 5 cases simultaneously, maintaining the patent at issue in
                                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
full force and effect. Four cases were closed following the withdrawal of the requests by the requesters, and the remaining 6 cases
remain pending. In response to the Decision on the Review of a Request for an Invalidation Declaration issued by the China National
Intellectual Property Administration, two invalidation petitioners, dissatisfied with the decisions, filed administrative lawsuits for
invalidation with the Beijing Intellectual Property Court, which ruled to uphold the original decisions and dismissed the petitioners'
claims; two petitioners, still dissatisfied with the judgment, subsequently appealed to the Supreme People's Court, which has
accepted the case, but has not yet rendered a judgment.
      In addition, during the reporting period, the Company received: (1) a non-infringement confirmation lawsuit filed by a related
party of the involved enterprise with the Jinan Intermediate People's Court, which ruled to reject all claims brought by the related
party of the involved enterprise; (2) an unfair competition lawsuit filed by the involved enterprise with the Yinchuan Intermediate
People's Court, which was later voluntarily withdrawn by the involved enterprise; subsequently, the involved enterprise filed another
unfair competition lawsuit with the Wucheng District People's Court in Jinhua City. As of August 25, 2026, this case has been
transferred to the Gongshu District People's Court in Zhejiang Province for handling, and has not yet been heard or adjudicated.
IX. Penalties and rectification
□Applicable Not applicable
The Company had no penalties or rectifications during the reporting period.
X. Integrity of the Company and its controlling shareholders and de facto controllers
Applicable □Not applicable
During the reporting period, neither the Company, its controlling shareholders, nor its de facto controller has failed to comply with
any effective court judgment, nor defaulted on any material debt obligations that had become due.
XI. Significant related party transactions
Applicable □Not applicable
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                                  g
                                  proce
                                  dures
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
         Subsi
Beijin                            to the
         diary
g                                 Comp
         of
Grand                             any's                                                 Cash,
         contro   Procu   Procu
Joham                             decisi                                                bank                April
         lling    remen   remen             Marke     848.0           7,823.                      Marke             CNIN
u                                 on-                         0.04%            No       accept              24,
         shareh   t of    t of              t price       4               72                      t price           FO
Pharm                             makin                                                 ance                2026
         older    drugs   drugs
aceuti                            g                                                     bill
         of the
cal                               proce
         Comp
Ltd.                              dures
         any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
Grand                             ding
         Subsi
Medic                             to the
         diary
al                                Comp
         of
Nutrit                            any's                                                 Cash,
         contro   Procu   Procu
ion                               decisi                                                bank                April
         lling    remen   remen             Marke     819.1           6,762.                      Marke             CNIN
Scien                             on-                         0.04%            No       accept              24,
         shareh   t of    t of              t price       6               03                      t price           FO
ce                                makin                                                 ance                2026
         older    drugs   drugs
(Wuh                              g                                                     bill
         of the
an)                               proce
         Comp
Co.,                              dures
         any
Ltd.                              for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
Grand    Subsi    Procu   Procu   Marke                                                 Cash,
                                                                                                            April
Life     diary    remen   remen   t price   Marke                     6,762.            bank      Marke             CNIN
Scien    of       t of    t of    deter     t price                       03            accept    t price           FO
ce       contro   drugs   drugs   mined                                                 ance
                                                      Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
(Liao    lling                    accor                                                 bill
ning)    shareh                   ding
Co.,     older                    to the
Ltd.     of the                   Comp
         Comp                     any's
         any                      decisi
                                  on-
                                  makin
                                  g
                                  proce
                                  dures
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
Wuha     Subsi
                                  to the
n        diary
                                  Comp
Grand    of
                                  any's                                                 Cash,
Pharm    contro   Procu   Procu
                                  decisi                                                bank                April
aceuti   lling    remen   remen             Marke     446.1           7,823.                      Marke             CNIN
                                  on-                         0.02%            No       accept              24,
cal      shareh   t of    t of              t price       5               72                      t price           FO
                                  makin                                                 ance                2026
Group    older    drugs   drugs
                                  g                                                     bill
Sales    of the
                                  proce
Co.,     Comp
                                  dures
Ltd.     any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
         Subsi                    ding
Grand    diary                    to the
Life     of                       Comp
                                                                                        Cash,
Scien    contro   Procu   Procu   any's
                                                                                        bank                April
ces      lling    remen   remen   decisi    Marke     411.6           6,762.                      Marke             CNIN
(Ansh    shareh   t of    t of    on-       t price       7               03                      t price           FO
                                                                                        ance                2026
an)      older    drugs   drugs   makin
                                                                                        bill
Co.,     of the                   g
Ltd.     Comp                     proce
         any                      dures
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                                      Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
Yunna    Subsi
                                  to the
n        diary
                                  Comp
Leiyu    of
                                  any's                                                 Cash,
nshan    contro   Procu   Procu
                                  decisi                                                bank                April
g        lling    remen   remen             Marke     271.0                                       Marke             CNIN
                                  on-                         0.01%    3,346   No       accept              24,
Pharm    shareh   t of    t of              t price       5                                       t price           FO
                                  makin                                                 ance                2026
aceuti   older    drugs   drugs
                                  g                                                     bill
cal      of the
                                  proce
Co.,     Comp
                                  dures
Ltd.     any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
         Subsi
                                  to the
Grand    diary
                                  Comp
Life     of
                                  any's                                                 Cash,
Scien    contro   Procu   Procu
                                  decisi                                                bank                April
ce       lling    remen   remen             Marke     254.4                                       Marke             CNIN
                                  on-                         0.01%    3,346   No       accept              24,
(Jiang   shareh   t of    t of              t price       4                                       t price           FO
                                  makin                                                 ance                2026
su)      older    drugs   drugs
                                  g                                                     bill
Co.,     of the
                                  proce
Ltd.     Comp
                                  dures
         any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
Beijin
                                  deter
g        Subsi
                                  mined
Yuand    diary
                                  accor
a        of
                                  ding                                                  Cash,
Chang    contro   Procu   Procu
                                  to the                                                bank                April
sheng    lling    remen   remen             Marke     222.8           7,823.                      Marke             CNIN
                                  Comp                        0.01%            No       accept              24,
Pharm    shareh   t of    t of              t price       8               72                      t price           FO
                                  any's                                                 ance                2026
aceuti   older    drugs   drugs
                                  decisi                                                bill
cal      of the
                                  on-
Sales    Comp
                                  makin
Co.,     any
                                  g
Ltd.
                                  proce
                                  dures
                                                      Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
         Subsi
Xi'an                             to the
         diary
Grand                             Comp
         of
Chang                             any's                                                 Cash,
         contro   Procu   Procu
'an                               decisi                                                bank                April
         lling    remen   remen             Marke     206.5           7,823.                      Marke             CNIN
Pharm                             on-                         0.01%            No       accept              24,
         shareh   t of    t of              t price       5               72                      t price           FO
aceuti                            makin                                                 ance                2026
         older    drugs   drugs
cal                               g                                                     bill
         of the
Co.,                              proce
         Comp
Ltd.                              dures
         any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
         Subsi
                                  to the
Xi'an    diary
                                  Comp
Grand    of
                                  any's                                                 Cash,
Deten    contro   Procu   Procu
                                  decisi                                                bank                April
Pharm    lling    remen   remen             Marke     134.3                                       Marke             CNIN
                                  on-                         0.01%      210   No       accept              24,
aceuti   shareh   t of    t of              t price       2                                       t price           FO
                                  makin                                                 ance                2026
cal      older    drugs   drugs
                                  g                                                     bill
Co.,     of the
                                  proce
Ltd.     Comp
                                  dures
         any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
Chon     Subsi                    Marke
gqing    diary                    t price
Duop     of                       deter
                                                                                        Cash,
utai     contro   Procu   Procu   mined
                                                                                        bank                April
Pharm    lling    remen   remen   accor     Marke     132.5           7,823.                      Marke             CNIN
aceuti   shareh   t of    t of    ding      t price       7               72                      t price           FO
                                                                                        ance                2026
cal      older    drugs   drugs   to the
                                                                                        bill
Techn    of the                   Comp
ology    Comp                     any's
Co.,     any                      decisi
                                                      Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Ltd.                              on-
                                  makin
                                  g
                                  proce
                                  dures
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
         Subsi
                                  to the
Grand    diary
                                  Comp
Pharm    of
                                  any's                                                 Cash,
aceuti   contro   Procu   Procu
                                  decisi                                                bank                April
cal      lling    remen   remen             Marke     115.1           7,823.                      Marke             CNIN
                                  on-                         0.01%            No       accept              24,
(Tianj   shareh   t of    t of              t price       1               72                      t price           FO
                                  makin                                                 ance                2026
in)      older    drugs   drugs
                                  g                                                     bill
Co.,     of the
                                  proce
Ltd.     Comp
                                  dures
         any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
Jiangs   Subsi
                                  to the
u        diary
                                  Comp
Shen     of
                                  any's                                                 Cash,
ming     contro   Procu   Procu
                                  decisi                                                bank                April
Medic    lling    remen   remen             Marke     115.0           7,823.                      Marke             CNIN
                                  on-                         0.01%            No       accept              24,
al       shareh   t of    t of              t price       8               72                      t price           FO
                                  makin                                                 ance                2026
Techn    older    drugs   drugs
                                  g                                                     bill
ology    of the
                                  proce
Co.,     Comp
                                  dures
Ltd.     any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
Sheny    Subsi                    Marke                                                 Cash,
                  Procu   Procu
ang      diary                    t price                                               bank                April
                  remen   remen             Marke                                                 Marke             CNIN
Yaoda    of                       deter               65.61   0.00%    3,346   No       accept              24,
                  t of    t of              t price                                               t price           FO
Leiyu    contro                   mined                                                 ance                2026
                  drugs   drugs
nshan    lling                    accor                                                 bill
                                                      Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
g        shareh                   ding
Pharm    older                    to the
aceuti   of the                   Comp
cal      Comp                     any's
Co.,     any                      decisi
Ltd.                              on-
                                  makin
                                  g
                                  proce
                                  dures
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
         Subsi
Anhui                             to the
         diary
Leiyu                             Comp
         of
nshan                             any's                                                 Cash,
         contro   Procu   Procu
g                                 decisi                                                bank                April
         lling    remen   remen             Marke                                                 Marke             CNIN
Pharm                             on-                 52.18   0.00%    3,346   No       accept              24,
         shareh   t of    t of              t price                                               t price           FO
aceuti                            makin                                                 ance                2026
         older    drugs   drugs
cal                               g                                                     bill
         of the
Co.,                              proce
         Comp
Ltd.                              dures
         any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
Chang    Subsi
                                  to the
shu      diary
                                  Comp
Lei      of
                                  any's                                                 Cash,
Yun      contro   Procu   Procu
                                  decisi                                                bank                April
Shang    lling    remen   remen             Marke                                                 Marke             CNIN
                                  on-                   47    0.00%    3,346   No       accept              24,
Pharm    shareh   t of    t of              t price                                               t price           FO
                                  makin                                                 ance                2026
aceuti   older    drugs   drugs
                                  g                                                     bill
cal      of the
                                  proce
Co.,     Comp
                                  dures
Ltd.     any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                                      Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
Chang    Subsi
                                  to the
chun     diary
                                  Comp
Lei      of
                                  any's                                                 Cash,
Yun      contro   Procu   Procu
                                  decisi                                                bank                April
Shang    lling    remen   remen             Marke                                                 Marke             CNIN
                                  on-                 39.42   0.00%    3,346   No       accept              24,
Pharm    shareh   t of    t of              t price                                               t price           FO
                                  makin                                                 ance                2026
aceuti   older    drugs   drugs
                                  g                                                     bill
cal      of the
                                  proce
Co.,     Comp
                                  dures
Ltd.     any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
Guan     Subsi
                                  to the
gdong    diary
                                  Comp
Leiyu    of
                                  any's                                                 Cash,
nshan    contro   Procu   Procu
                                  decisi                                                bank                April
g        lling    remen   remen             Marke                                                 Marke             CNIN
                                  on-                 35.13   0.00%    3,346   No       accept              24,
Pharm    shareh   t of    t of              t price                                               t price           FO
                                  makin                                                 ance                2026
aceuti   older    drugs   drugs
                                  g                                                     bill
cal      of the
                                  proce
Co.,     Comp
                                  dures
Ltd.     any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
         Subsi                    mined
Grand
         diary                    accor
Jiu He
         of                       ding
(Jiang                                                                                  Cash,
         contro   Procu   Procu   to the
xi)                                                                                     bank                April
         lling    remen   remen   Comp      Marke                     7,823.                      Marke             CNIN
Pharm                                                 26.82   0.00%            No       accept              24,
         shareh   t of    t of    any's     t price                       72                      t price           FO
aceuti                                                                                  ance                2026
         older    drugs   drugs   decisi
cal                                                                                     bill
         of the                   on-
Co.,
         Comp                     makin
Ltd.
         any                      g
                                  proce
                                  dures
                                  for
                                                      Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
         Subsi
Cangz                             to the
         diary
hou                               Comp
         of
Huach                             any's                                                 Cash,
         contro   Procu   Procu
en                                decisi                                                bank                April
         lling    remen   remen             Marke                     7,823.                      Marke             CNIN
Biotec                            on-                 19.82   0.00%            No       accept              24,
         shareh   t of    t of              t price                       72                      t price           FO
hnolo                             makin                                                 ance                2026
         older    drugs   drugs
gy                                g                                                     bill
         of the
Co.,                              proce
         Comp
Ltd.                              dures
         any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
         Subsi
Shaan                             to the
         diary
xi                                Comp
         of
Jianm                             any's                                                 Cash,
         contro   Procu   Procu
in                                decisi                                                bank                April
         lling    remen   remen             Marke                                                 Marke             CNIN
Pharm                             on-                 15.96   0.00%    3,346   No       accept              24,
         shareh   t of    t of              t price                                               t price           FO
aceuti                            makin                                                 ance                2026
         older    drugs   drugs
cal                               g                                                     bill
         of the
Co.,                              proce
         Comp
Ltd.                              dures
         any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
         Subsi
                                  t price
Grand    diary
                                  deter
Pharm    of
                                  mined                                                 Cash,
aceuti   contro   Procu   Procu
                                  accor                                                 bank                April
cal      lling    remen   remen             Marke                     7,823.                      Marke             CNIN
                                  ding                  15    0.00%            No       accept              24,
(Chin    shareh   t of    t of              t price                       72                      t price           FO
                                  to the                                                ance                2026
a)       older    drugs   drugs
                                  Comp                                                  bill
Co.,     of the
                                  any's
Ltd.     Comp
                                  decisi
         any
                                  on-
                                                      Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                  makin
                                  g
                                  proce
                                  dures
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
         Subsi
                                  to the
         diary
                                  Comp
Wuha     of
                                  any's                                                 Cash,
n        contro   Procu   Procu
                                  decisi                                                bank                April
Grand    lling    remen   remen             Marke                     7,823.                      Marke             CNIN
                                  on-                 14.34   0.00%            No       accept              24,
Hoyo     shareh   t of    t of              t price                       72                      t price           FO
                                  makin                                                 ance                2026
Co.,     older    drugs   drugs
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Ltd.     of the
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         Comp
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         any
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                                  relate
                                  d
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                                  Marke
Huan                              t price
gshi                              deter
Feiyu                             mined
n                                 accor
Pharm                             ding
         Subsi
aceuti                            to the
         diary
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         of
Co.,                              any's                                                 Cash,
         contro   Procu   Procu
Ltd.                              decisi                                                bank                April
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         shareh   t of    t of              t price                       72                      t price           FO
subsid                            makin                                                 ance                2026
         older    drugs   drugs
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         Comp
Grand                             dures
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aceuti                            relate
cal                               d
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)                                 transa
                                  ctions
Beijin   Subsi                    Marke
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g        diary    Procu   Procu   t price
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Huaji    of       remen   remen   deter     Marke                     7,823.                      Marke             CNIN
n        contro   t of    t of    mined     t price                       72                      t price           FO
                                                                                        ance                2026
Pharm    lling    drugs   drugs   accor
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aceuti   shareh                   ding
                                                      Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
cal      older                    to the
Co.,     of the                   Comp
Ltd.     Comp                     any's
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Lei      Subsi
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Yun      diary
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Shang    of
                                  any's                                                 Cash,
Pharm    contro   Procu   Procu
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cal      shareh   t of    t of              t price                                               t price           FO
                                  makin                                                 ance                2026
Group    older    drugs   drugs
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Sales    of the
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Co.,     Comp
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                                  d
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         Subsi
nshan                             to the
         diary
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         of
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         contro   Procu   Procu
h                                 decisi                                                bank                April
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         shareh   t of    t of              t price                                               t price           FO
ology                             makin                                                 ance                2026
         older    drugs   drugs
(Suzh                             g                                                     bill
         of the
ou)                               proce
         Comp
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         any
Ltd.                              for
                                  relate
                                  d
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                                  ctions
Grand    Subsi    Contr   Contr   Marke     Marke     166.1   0.01%   1,796.   No       Cash,     Marke     April   CNIN
                                                        Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Life     diary    act      act      t price   t price      8                 4            bank      t price   24,     FO
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ces      contro   acturi   acturi   mined                                                 ance
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dong)    shareh   and      and      ding
Co.,     older    other    other    to the
Ltd.     of the   servic   servic   Comp
         Comp     es       es       any's
         any                        decisi
                                    on-
                                    makin
                                    g
                                    proce
                                    dures
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                                    relate
                                    d
                                    party
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                                    ctions
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                                    t price
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                                    mined
                                    accor
                                    ding
         Subsi
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         diary
                                    Comp
         of
Grand                               any's                                                 Cash,
         contro
Bay               Confe    Confe    decisi                                                bank                April
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Hotel             rence    rence    on-                 13.81   0.00%    57.22   Yes      accept              24,
         shareh                               t price                                               t price           FO
Beijin            fee      fee      makin                                                 ance                2026
         older
g                                   g                                                     bill
         of the
                                    proce
         Comp
                                    dures
         any
                                    for
                                    relate
                                    d
                                    party
                                    transa
                                    ctions
                                    Marke
                                    t price
                                    deter
                                    mined
         Subsi
                                    accor
         diary
                                    ding
         of
Grand                               to the                                                Cash,
         contro
Bay                                 Comp                                                  bank                April
         lling    Servic   Servic             Marke                                                 Marke             CNIN
Hotel                               any's               26.15   0.00%    57.22   Yes      accept              24,
         shareh   e fee    e fee              t price                                               t price           FO
Beijin                              decisi                                                ance                2026
         older
g                                   on-                                                   bill
         of the
                                    makin
         Comp
                                    g
         any
                                    proce
                                    dures
                                    for
                                    relate
                                                         Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                     d
                                     party
                                     transa
                                     ctions
                                     Marke
                                     t price
                                     deter
                                     mined
                                     accor
Beijin
                                     ding
g        Subsi
                                     to the
Grand    diary
                                     Comp
Innov    of
                   Prope    Prope    any's                                                 Cash,
ation    contro
                   rty      rty      decisi                                                bank                April
Prope    lling                                 Marke                                                 Marke             CNIN
                   mana     mana     on-                 28.68   0.00%    57.22   Yes      accept              24,
rty      shareh                                t price                                               t price           FO
                   geme     geme     makin                                                 ance                2026
Mana     older
                   nt fee   nt fee   g                                                     bill
geme     of the
                                     proce
nt       Comp
                                     dures
Co.,     any
                                     for
Ltd.
                                     relate
                                     d
                                     party
                                     transa
                                     ctions
                                     Marke
                                     t price
                                     deter
                                     mined
                                     accor
                                     ding
         Subsi
                                     to the
Xi'an    diary
                   Contr    Contr    Comp
Grand    of
                   act      act      any's                                                 Cash,
Deten    contro
                   manuf    manuf    decisi                                                bank                Augus
Pharm    lling                                 Marke                                                 Marke             CNIN
                   acturi   acturi   on-                 17.92   0.00%     0.00   Yes      accept              t 24,
aceuti   shareh                                t price                                               t price           FO
                   ng       ng       makin                                                 ance                2026
cal      older
                   servic   servic   g                                                     bill
Co.,     of the
                   es       es       proce
Ltd.     Comp
                                     dures
         any
                                     for
                                     relate
                                     d
                                     party
                                     transa
                                     ctions
                                     Marke
                                     t price
Chon                                 deter
         Assoc
gqing                                mined
         iate of                                                                           Cash,
Peg-                                 accor
         the       Inspec   Inspec                                                         bank                April
Bio                                  ding      Marke                                                 Marke             CNIN
         Comp      tion     tion                          8.02   0.00%    4,000   No       accept              24,
Bioph                                to the    t price                                               t price           FO
         any's     fee      fee                                                            ance                2026
arm                                  Comp
         subsid                                                                            bill
Co.,                                 any's
         iary
Ltd.                                 decisi
                                     on-
                                     makin
                                                      Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                  g
                                  proce
                                  dures
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
         Subsi
                                  to the
         diary
                                  Comp
         of
Grand                             any's                                                 Cash,
         contro
Bay               Confe   Confe   decisi                                                bank                April
         lling                              Marke                                                 Marke             CNIN
Hotel,            rence   rence   on-                  0.36   0.00%    57.22   Yes      accept              24,
         shareh                             t price                                               t price           FO
Zhuha             fee     fee     makin                                                 ance                2026
         older
i                                 g                                                     bill
         of the
                                  proce
         Comp
                                  dures
         any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
Suzho                             ding
         Subsi
u                                 to the
         diary
Leiyu                             Comp
         of
nshan                             any's                                                 Cash,
         contro
g                 Sales   Sales   decisi                                                bank                April
         lling                              Marke     801.9                                       Marke             CNIN
Sinop             of      of      on-                         0.04%      856   Yes      accept              24,
         shareh                             t price       5                                       t price           FO
harm              drugs   drugs   makin                                                 ance                2026
         older
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         of the
Store                             proce
         Comp
Co.,                              dures
         any
Ltd.                              for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
Anhui    Subsi                    Marke
Leiyu    diary                    t price                                               Cash,
nshan    of       Sales   Sales   deter                                                 bank                April
                                            Marke     623.7                                       Marke             CNIN
g        contro   of      of      mined                       0.03%      856   Yes      accept              24,
                                            t price       4                                       t price           FO
Pharm    lling    drugs   drugs   accor                                                 ance                2026
aceuti   shareh                   ding                                                  bill
cal      older                    to the
                                                      Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Co.,     of the                   Comp
Ltd.     Comp                     any's
         any                      decisi
                                  on-
                                  makin
                                  g
                                  proce
                                  dures
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
Yunna    Subsi
                                  to the
n        diary
                                  Comp
Leiyu    of
                                  any's                                                 Cash,
nshan    contro
                  Sales   Sales   decisi                                                bank                April
g        lling                              Marke     132.7                                       Marke             CNIN
                  of      of      on-                         0.01%      856   Yes      accept              24,
Pharm    shareh                             t price       2                                       t price           FO
                  drugs   drugs   makin                                                 ance                2026
aceuti   older
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cal      of the
                                  proce
Co.,     Comp
                                  dures
Ltd.     any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
         Subsi
Hubei                             to the
         diary
Grand                             Comp
         of
Life                              any's                                                 Cash,
         contro
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         lling                              Marke                                                 Marke             CNIN
ce &              of      of      on-                 57.61   0.00%       60   Yes      accept              24,
         shareh                             t price                                               t price           FO
Techn             drugs   drugs   makin                                                 ance                2026
         older
ology                             g                                                     bill
         of the
Co.,                              proce
         Comp
Ltd.                              dures
         any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
Beijin   Subsi    Sales   Sales   Marke     Marke                                       Cash,     Marke     April   CNIN
g        diary    of      of      t price   t price                                     bank      t price   24,     FO
                                                      Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Grand    of       drugs   drugs   deter                                                 accept              2026
Joham    contro                   mined                                                 ance
u        lling                    accor                                                 bill
Pharm    shareh                   ding
aceuti   older                    to the
cal      of the                   Comp
Ltd.     Comp                     any's
         any                      decisi
                                  on-
                                  makin
                                  g
                                  proce
                                  dures
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
         Subsi
Hangz                             to the
         diary
hou                               Comp
         of
Grand                             any's                                                 Cash,
         contro
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         lling                              Marke                                                 Marke             CNIN
gic               of      of      on-                 38.86   0.00%      135   No       accept              24,
         shareh                             t price                                               t price           FO
Pharm             drugs   drugs   makin                                                 ance                2026
         older
aceuti                            g                                                     bill
         of the
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         Comp
Inc.                              dures
         any
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                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
Guan     Subsi                    accor
gdong    diary                    ding
Leiyu    of                       to the
                                                                                        Cash,
nshan    contro                   Comp
                  Sales   Sales                                                         bank                April
g        lling                    any's     Marke                                                 Marke             CNIN
                  of      of                          17.96   0.00%      856   Yes      accept              24,
Pharm    shareh                   decisi    t price                                               t price           FO
                  drugs   drugs                                                         ance                2026
aceuti   older                    on-
                                                                                        bill
cal      of the                   makin
Co.,     Comp                     g
Ltd.     any                      proce
                                  dures
                                  for
                                  relate
                                  d
                                                      Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
Guipi    Subsi
                                  to the
ng       diary
                                  Comp
Shuya    of
                                  any's                                                 Cash,
ng       contro
                  Sales   Sales   decisi                                                bank                April
Plasm    lling                              Marke                                                 Marke             CNIN
                  of      of      on-                 8.58   0.00%        34   No       accept              24,
a        shareh                             t price                                               t price           FO
                  drugs   drugs   makin                                                 ance                2026
Collec   older
                                  g                                                     bill
tion     of the
                                  proce
Co.,     Comp
                                  dures
Ltd.     any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
         Subsi
Lei                               to the
         diary
Yunsh                             Comp
         of
ang                               any's                                                 Cash,
         contro
Pharm             Sales   Sales   decisi                                                bank                April
         lling                              Marke                                                 Marke             CNIN
aceuti            of      of      on-                 6.01   0.00%       856   Yes      accept              24,
         shareh                             t price                                               t price           FO
cal               drugs   drugs   makin                                                 ance                2026
         older
Group                             g                                                     bill
         of the
Co.,                              proce
         Comp
Ltd.                              dures
         any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
         Subsi
                                  deter
         diary
Grand                             mined
         of
Pharm                             accor                                                 Cash,
         contro
aceuti            Sales   Sales   ding                                                  bank                April
         lling                              Marke                                                 Marke             CNIN
cal               of      of      to the              4.82   0.00%       856   Yes      accept              24,
         shareh                             t price                                               t price           FO
(Xi'an            drugs   drugs   Comp                                                  ance                2026
         older
) Co.,                            any's                                                 bill
         of the
Ltd.                              decisi
         Comp
                                  on-
         any
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                                  g
                                                      Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                  proce
                                  dures
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                                  relate
                                  d
                                  party
                                  transa
                                  ctions
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                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
Danle    Subsi
                                  to the
ng       diary
                                  Comp
Shuya    of
                                  any's                                                 Cash,
ng       contro
                  Sales   Sales   decisi                                                bank                April
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                  of      of      on-                  3.5   0.00%        34   No       accept              24,
a        shareh                             t price                                               t price           FO
                  drugs   drugs   makin                                                 ance                2026
Collec   older
                                  g                                                     bill
tion     of the
                                  proce
Co.,     Comp
                                  dures
Ltd.     any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
Chang    Subsi
                                  to the
ning     diary
                                  Comp
Shuya    of
                                  any's                                                 Cash,
ng       contro
                  Sales   Sales   decisi                                                bank                April
Plasm    lling                              Marke                                                 Marke             CNIN
                  of      of      on-                 2.55   0.00%        34   No       accept              24,
a        shareh                             t price                                               t price           FO
                  drugs   drugs   makin                                                 ance                2026
Collec   older
                                  g                                                     bill
tion     of the
                                  proce
Co.,     Comp
                                  dures
Ltd.     any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
Jiangy   Subsi                    Marke
ou       diary                    t price
                                                                                        Cash,
Shuya    of                       deter
                  Sales   Sales                                                         bank                April
ng       contro                   mined     Marke                                                 Marke             CNIN
                  of      of                          2.55   0.00%        34   No       accept              24,
Plasm    lling                    accor     t price                                               t price           FO
                  drugs   drugs                                                         ance                2026
a        shareh                   ding
                                                                                        bill
Collec   older                    to the
tion     of the                   Comp
                                                      Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Co.,     Comp                     any's
Ltd.     any                      decisi
                                  on-
                                  makin
                                  g
                                  proce
                                  dures
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
         Subsi
Santai                            to the
         diary
Shuya                             Comp
         of
ng                                any's                                                 Cash,
         contro
Plasm             Sales   Sales   decisi                                                bank                April
         lling                              Marke                                                 Marke             CNIN
a                 of      of      on-                 2.39   0.00%        34   No       accept              24,
         shareh                             t price                                               t price           FO
Collec            drugs   drugs   makin                                                 ance                2026
         older
tion                              g                                                     bill
         of the
Co.,                              proce
         Comp
Ltd.                              dures
         any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
                                  Marke
                                  t price
                                  deter
                                  mined
                                  accor
                                  ding
Zizho    Subsi
                                  to the
ng       diary
                                  Comp
Shuya    of
                                  any's                                                 Cash,
ng       contro
                  Sales   Sales   decisi                                                bank                April
Plasm    lling                              Marke                                                 Marke             CNIN
                  of      of      on-                 2.39   0.00%        34   No       accept              24,
a        shareh                             t price                                               t price           FO
                  drugs   drugs   makin                                                 ance                2026
Collec   older
                                  g                                                     bill
tion     of the
                                  proce
Co.,     Comp
                                  dures
Ltd.     any
                                  for
                                  relate
                                  d
                                  party
                                  transa
                                  ctions
Grand    Subsi    Sales   Sales   Marke                                                 Cash,               April
                                            Marke                                                 Marke             CNIN
Medic    diary    of      of      t price             2.31   0.00%       856   Yes      bank                24,
                                            t price                                               t price           FO
al       of       drugs   drugs   deter                                                 accept              2026
                                                       Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Nutrit    contro                   mined                                                 ance
ion       lling                    accor                                                 bill
Scien     shareh                   ding
ce        older                    to the
(Wuh      of the                   Comp
an)       Comp                     any's
Co.,      any                      decisi
Ltd.                               on-
                                   makin
                                   g
                                   proce
                                   dures
                                   for
                                   relate
                                   d
                                   party
                                   transa
                                   ctions
                                   Marke
                                   t price
                                   deter
                                   mined
Miany
                                   accor
ang
                                   ding
Anzh      Subsi
                                   to the
ou        diary
                                   Comp
Distri    of
                                   any's                                                 Cash,
ct        contro
                   Sales   Sales   decisi                                                bank                April
Shuya     lling                              Marke                                                 Marke             CNIN
                   of      of      on-                 2.07   0.00%        34   No       accept              24,
ng        shareh                             t price                                               t price           FO
                   drugs   drugs   makin                                                 ance                2026
Plasm     older
                                   g                                                     bill
a         of the
                                   proce
Collec    Comp
                                   dures
tion      any
                                   for
Co.,
                                   relate
Ltd.
                                   d
                                   party
                                   transa
                                   ctions
                                   Marke
                                   t price
                                   deter
                                   mined
                                   accor
                                   ding
          Contr                    to the
China     olling                   Comp                                                  Cash,
Grand     shareh   Sales   Sales   any's                                                 bank                April
                                             Marke                                                 Marke             CNIN
Enter     older    of      of      decisi              0.64   0.00%       856   Yes      accept              24,
                                             t price                                               t price           FO
prises,   of the   drugs   drugs   on-                                                   ance                2026
Inc.      Comp                     makin                                                 bill
          any                      g
                                   proce
                                   dures
                                   for
                                   relate
                                   d
                                   party
                                                         Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                    transa
                                    ctions
                                    Marke
                                    t price
                                    deter
                                    mined
                                    accor
                                    ding
         Subsi
                                    to the
Grand    diary
                                    Comp
Pharm    of
                                    any's                                                  Cash,
aceuti   contro
                  Sales    Sales    decisi                                                 bank                April
cal      lling                                Marke                                                  Marke             CNIN
                  of       of       on-                  0.25    0.00%       60   Yes      accept              24,
(Xiant   shareh                               t price                                                t price           FO
                  drugs    drugs    makin                                                  ance                2026
ao)      older
                                    g                                                      bill
Co.,     of the
                                    proce
Ltd.     Comp
                                    dures
         any
                                    for
                                    relate
                                    d
                                    party
                                    transa
                                    ctions
                                    Marke
                                    t price
                                    deter
                                    mined
                                    accor
Grand                               ding
         Subsi
Life                                to the
         diary
Scien                               Comp
         of
ces                                 any's                                                  Cash,
         contro
(Hang             Sales    Sales    decisi                                                 bank                April
         lling                                Marke                                                  Marke             CNIN
zhou)             of       of       on-                  0.02    0.00%      135   No       accept              24,
         shareh                               t price                                                t price           FO
Pharm             drugs    drugs    makin                                                  ance                2026
         older
aceuti                              g                                                      bill
         of the
cal                                 proce
         Comp
Co.,                                dures
         any
Ltd.                                for
                                    relate
                                    d
                                    party
                                    transa
                                    ctions
                                    Marke
                                    t price
         Subsi                      deter
Xi'an    diary                      mined
Grand    of                         accor
                                                                                           Cash,
Deten    contro   Agenc    Agenc    ding
                                                                                           bank                April
Pharm    lling    y        y        to the    Marke     1,244.           3,840.                      Marke             CNIN
aceuti   shareh   servic   servic   Comp      t price       87                1                      t price           FO
                                                                                           ance                2026
cal      older    es       es       any's
                                                                                           bill
Co.,     of the                     decisi
Ltd.     Comp                       on-
         any                        makin
                                    g
                                    proce
                                                        Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                    dures
                                    for
                                    relate
                                    d
                                    party
                                    transa
                                    ctions
                                    Marke
                                    t price
                                    deter
                                    mined
                                    accor
                                    ding
Guan     Subsi
                                    to the
gdong    diary
                                    Comp
Leiyu    of
                  Infor    Infor    any's                                                 Cash,
nshan    contro
                  matio    matio    decisi                                                bank                April
g        lling                                Marke     304.2           3,570.                      Marke             CNIN
                  n        n        on-                         0.01%            No       accept              24,
Pharm    shareh                               t price       3               65                      t price           FO
                  servic   servic   makin                                                 ance                2026
aceuti   older
                  es       es       g                                                     bill
cal      of the
                                    proce
Co.,     Comp
                                    dures
Ltd.     any
                                    for
                                    relate
                                    d
                                    party
                                    transa
                                    ctions
                                    Marke
                                    t price
                                    deter
                                    mined
                                    accor
                                    ding
         Subsi
Lei                                 to the
         diary
Yunsh                               Comp
         of
ang               Infor    Infor    any's                                                 Cash,
         contro
Pharm             matio    matio    decisi                                                bank                April
         lling                                Marke     282.5           3,570.                      Marke             CNIN
aceuti            n        n        on-                         0.01%            No       accept              24,
         shareh                               t price       9               65                      t price           FO
cal               servic   servic   makin                                                 ance                2026
         older
Group             es       es       g                                                     bill
         of the
Co.,                                proce
         Comp
Ltd.                                dures
         any
                                    for
                                    relate
                                    d
                                    party
                                    transa
                                    ctions
Anhui    Subsi                      Marke
Leiyu    diary                      t price
nshan    of       Infor    Infor    deter                                                 Cash,
g        contro   matio    matio    mined                                                 bank                April
                                              Marke     226.8           3,570.                      Marke             CNIN
Pharm    lling    n        n        accor                       0.01%            No       accept              24,
                                              t price       5               65                      t price           FO
aceuti   shareh   servic   servic   ding                                                  ance                2026
cal      older    es       es       to the                                                bill
Co.,     of the                     Comp
Ltd.     Comp                       any's
                                                         Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
         any                         decisi
                                     on-
                                     makin
                                     g
                                     proce
                                     dures
                                     for
                                     relate
                                     d
                                     party
                                     transa
                                     ctions
                                     Marke
                                     t price
                                     deter
                                     mined
                                     accor
                                     ding
Chang    Subsi
                                     to the
chun     diary
                                     Comp
Lei      of
                   Infor    Infor    any's                                                 Cash,
Yun      contro
                   matio    matio    decisi                                                bank                April
Shang    lling                                 Marke     216.5           3,570.                      Marke             CNIN
                   n        n        on-                         0.01%            No       accept              24,
Pharm    shareh                                t price       9               65                      t price           FO
                   servic   servic   makin                                                 ance                2026
aceuti   older
                   es       es       g                                                     bill
cal      of the
                                     proce
Co.,     Comp
                                     dures
Ltd.     any
                                     for
                                     relate
                                     d
                                     party
                                     transa
                                     ctions
                                     Marke
                                     t price
                                     deter
                                     mined
                                     accor
                                     ding
Yunna    Subsi
                                     to the
n        diary
                                     Comp
Leiyu    of
                   Infor    Infor    any's                                                 Cash,
nshan    contro
                   matio    matio    decisi                                                bank                April
g        lling                                 Marke                     3,570.                      Marke             CNIN
                   n        n        on-                 85.38   0.00%            No       accept              24,
Pharm    shareh                                t price                       65                      t price           FO
                   servic   servic   makin                                                 ance                2026
aceuti   older
                   es       es       g                                                     bill
cal      of the
                                     proce
Co.,     Comp
                                     dures
Ltd.     any
                                     for
                                     relate
                                     d
                                     party
                                     transa
                                     ctions
Chon     Assoc     Techn    Techn    Marke                                                 Cash,
                                                                                                               April
gqing    iate of   ical     ical     t price   Marke                                       bank      Marke             CNIN
Peg-     the       servic   servic   deter     t price                                     accept    t price           FO
Bio      Comp      es       es       mined                                                 ance
                                                        Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Bioph    any's                      accor                                                 bill
arm      subsid                     ding
Co.,     iary                       to the
Ltd.                                Comp
                                    any's
                                    decisi
                                    on-
                                    makin
                                    g
                                    proce
                                    dures
                                    for
                                    relate
                                    d
                                    party
                                    transa
                                    ctions
                                    Marke
                                    t price
                                    deter
                                    mined
                                    accor
                                    ding
Chang    Subsi
                                    to the
shu      diary
                                    Comp
Lei      of
                  Infor    Infor    any's                                                 Cash,
Yun      contro
                  matio    matio    decisi                                                bank                April
Shang    lling                                Marke                     3,570.                      Marke             CNIN
                  n        n        on-                 51.12   0.00%            No       accept              24,
Pharm    shareh                               t price                       65                      t price           FO
                  servic   servic   makin                                                 ance                2026
aceuti   older
                  es       es       g                                                     bill
cal      of the
                                    proce
Co.,     Comp
                                    dures
Ltd.     any
                                    for
                                    relate
                                    d
                                    party
                                    transa
                                    ctions
                                    Marke
                                    t price
                                    deter
                                    mined
                                    accor
         Subsi                      ding
Grand    diary                      to the
Life     of                         Comp
                                                                                          Cash,
Scien    contro   Techn    Techn    any's
                                                                                          bank                April
ces      lling    ical     ical     decisi    Marke                                                 Marke             CNIN
(Shan    shareh   servic   servic   on-       t price                                               t price           FO
                                                                                          ance                2026
dong)    older    es       es       makin
                                                                                          bill
Co.,     of the                     g
Ltd.     Comp                       proce
         any                        dures
                                    for
                                    relate
                                    d
                                    party
                                    transa
                                                          Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                      ctions
                                      Marke
                                      t price
                                      deter
                                      mined
                                      accor
                                      ding
         Subsi
                                      to the
         diary
Grand                                 Comp
         of
Pharm                                 any's                                                 Cash,
         contro   Techn     Techn
aceuti                                decisi                                                bank                April
         lling    ical      ical                Marke                     3,570.                      Marke             CNIN
cal                                   on-                 7.92   0.00%             No       accept              24,
         shareh   servic    servic              t price                       65                      t price           FO
(Xi'an                                makin                                                 ance                2026
         older    es        es
) Co.,                                g                                                     bill
         of the
Ltd.                                  proce
         Comp
                                      dures
         any
                                      for
                                      relate
                                      d
                                      party
                                      transa
                                      ctions
                                      Marke
                                      t price
                                      deter
                                      mined
                                      accor
                                      ding
Grand    Subsi
                  Trans     Trans     to the
Shuya    diary
                  portati   portati   Comp
ng       of
                  on        on        any's                                                 Cash,
Life     contro
                  and       and       decisi                                                bank                April
Scien    lling                                  Marke                                                 Marke             CNIN
                  wareh     wareh     on-                 5.29   0.00%        10   No       accept              24,
ces      shareh                                 t price                                               t price           FO
                  ousin     ousin     makin                                                 ance                2026
(Chen    older
                  g         g         g                                                     bill
gdu)     of the
                  servic    servic    proce
Co.,     Comp
                  e         e         dures
Ltd.     any
                                      for
                                      relate
                                      d
                                      party
                                      transa
                                      ctions
                                      Marke
                                      t price
                                      deter
         Subsi
                                      mined
Hangz    diary
                                      accor
hou      of       Prope     Prope
                                      ding                                                  Cash,
Sihan    contro   rty       rty
                                      to the                                                bank                April
Biotec   lling    and       and                 Marke                     3,570.                      Marke             CNIN
                                      Comp                3.01   0.00%             No       accept              24,
hnolo    shareh   other     other               t price                       65                      t price           FO
                                      any's                                                 ance                2026
gy       older    servic    servic
                                      decisi                                                bill
Co.,     of the   es        es
                                      on-
Ltd.     Comp
                                      makin
         any
                                      g
                                      proce
                                      dures
                                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                        for
                                        relate
                                        d
                                        party
                                        transa
                                        ctions
                                        Marke
                                        t price
                                        deter
                                        mined
                                        accor
                                        ding
           Other
                                        to the
 Beijin    enterp
                                        Comp
 g         rises
                                        any's                                                     Cash,
 Yanhu     contro    House     House
                                        decisi                                                    bank                April
 ang       lled      s and     s and              Marke     121.7                                           Marke              CNIN
                                        on-                          0.01%          0   Yes       accept              24,
 Real      by the    buildi    buildi             t price       7                                           t price            FO
                                        makin                                                     ance                2026
 Estate    de        ngs       ngs
                                        g                                                         bill
 Co.,      facto
                                        proce
 Ltd.      contro
                                        dures
           ller
                                        for
                                        relate
                                        d
                                        party
                                        transa
                                        ctions
 Total                                    --        --                 --                  --        --       --        --        --
 Details of significant sales returns   Not applicable
                                        For 2026, the Company and its subsidiaries expect to enter into routine related party
                                        transactions with related parties in an aggregate amount of RMB 399.4353 million,
 Estimated total amount of daily        including RMB 355.6683 million in transactions with enterprises affiliated with China
 related party transactions expected    Grand Enterprises and RMB 43.7670 million in transactions with other related enterprises.
 to occur in the current period by      For details, please refer to the Announcement on the Estimated Routine Related Party
 category, and the actual fulfillment   Transactions for 2026 disclosed by the Company on the website of Cninfo on April 24,
 during the reporting period (if any)   2026. In the first half of 2026, the total amount of daily related party transactions between
                                        the Company and its subsidiaries and related parties was RMB 148.6057 million, which did
                                        not exceed the expected total amount.
 Reasons for significant differences
 between transaction prices and         Not applicable
 market prices (if applicable)
□Applicable Not applicable
During the reporting period, the company did not have any related party transactions arising from the acquisition or sale of assets
or equity interests.
□Applicable Not applicable
The company did not have any related party transactions of joint investments abroad during the reporting period.
                                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
□Applicable Not applicable
The company did not have any related credit and debt transactions during the reporting period.
□Applicable Not applicable
There was no deposit, loan, credit or other financial business among the Company, the finance company with which the Company
has established a relationship, and the related parties.
□Applicable Not applicable
There was no deposit, loan, credit facility or other financial transactions between the finance companies controlled by the
Company and related parties.
□Applicable Not applicable
The Company did not have other significant related party transactions during the reporting period.
XII. Significant contracts and fulfillment
(1) Trusteeship
□Applicable Not applicable
The company did not have trusteeship during the reporting period.
(2) Contracting
□Applicable Not applicable
The company did not have contracting during the reporting period.
(3) Leasing
Applicable □Not applicable
Lease description
 Refer to the relevant content in "Section VIII Financial Report - VII. Notes to consolidated financial statement items, 82.
Leasing".
Items that brought gains and losses to the Company amounting to more than 10% of the Company's total profit during the
reporting period
□Applicable Not applicable
There was no leasing item that brought gains and losses to the Company amounting to more than 10% of the Company's total
                                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
profit during the reporting period.
Applicable □Not applicable
                                                                                                                Unit: RMB 10,000
                   External guarantees by the Company and its subsidiaries (excluding guarantees for subsidiaries)
              Disclosu
               re date
                                                                                                                           Whether
                  of
 Name of                                           Actual                                                      Whether       it is a
              announc                  Actual                 Type of                  Counter-
 guarante                 Guarante                guarante                Collatera                 Guarante    it has     guarante
                ement                 occurren                guarante                 guarante
     e                     e quota                   ed                   l (if any)                e period     been         e for
              regardin                 ce date                   e                     e (if any)
 recipient                                        amount                                                       fulfilled    related
                 g the
                                                                                                                            parties
              guarante
               e quota
                                            The company's guarantees for its subsidiaries
              Disclosu
               re date
                                                                                                                           Whether
                  of
 Name of                                           Actual                                                      Whether       it is a
              announc                  Actual                 Type of                  Counter-
 guarante                 Guarante                guarante                Collatera                 Guarante    it has     guarante
                ement                 occurren                guarante                 guarante
     e                     e quota                   ed                   l (if any)                e period     been         e for
              regardin                 ce date                   e                     e (if any)
 recipient                                        amount                                                       fulfilled    related
                 g the
                                                                                                                            parties
              guarante
               e quota
 Hangzho
 u
 Zhongm                                                       Joint and
 ei                                                           several
              April 18,               August
 Huadon                    155,000                     500    liability   None         None         1 year     No          No
 g                                                            guarante
 Pharmac                                                      e
 eutical
 Co., Ltd.
 Hangzho
 u
 Zhongm                                                       Joint and
 ei                                                           several
              April 18,               February
 Huadon                    155,000                   7,150    liability   None         None         1 year     No          No
 g                                                            guarante
 Pharmac                                                      e
 eutical
 Co., Ltd.
 Hangzho
 u
 Zhongm                                                       Joint and
 ei                                                           several
              April 24,               May 22,
 Huadon                    115,000                     355    liability   None         None         1 year     No          No
 g                                                            guarante
 Pharmac                                                      e
 eutical
 Co., Ltd.
 Hangzho      April 24,    115,000    June 25,      13,434    Joint and   None         None         1 year     No          No
                                                      Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
u           2026                  2026                 several
Zhongm                                                 liability
ei                                                     guarante
Huadon                                                 e
g
Pharmac
eutical
Co., Ltd.
Huadon
g
Medicin
e Supply
            April 19,
Chain                   20,000                                                            10 years    No         No
Manage
ment
(Jinhua)
Co., Ltd.
Huadon
g
Medicin                                                Joint and
e (Xi'an)                                              several
            July 22,              July 19,
Bodygua                 5,284.7               5,285    liability   None       None        2 years     No         No
rd                                                     guarante
Pharmac                                                e
eutical
Co., Ltd.
Huadon
g
Medicin                                                Joint and
e (Xi'an)                                              several
            April 18,             June 23,
Bodygua                 37,000               25,684    liability   None       None        1 year      No         No
rd                                                     guarante
Pharmac                                                e
eutical
Co., Ltd.
Huadon
g
Medicin
e (Xi'an)
            April 24,
Bodygua                 37,000                                                            1 year      No         No
rd
Pharmac
eutical
Co., Ltd.
Shaanxi
Bohua
(Weinan
            April 24,
)                       30,000                                                            1 year      No         No
Pharmac
eutical
Co., Ltd.
Huadon
g                                                      Joint and
Medicin                                                several
            April 18,             January
e                       16,000                1,900    liability   None       None        1 year      No         No
Ningbo                                                 guarante
Sales                                                  e
Co., Ltd.
                                                    Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Huadon
g                                                    Joint and
Medicin                                              several
            April 18,            March
e                       16,000              1,900    liability   None       None        1 year      No         No
Ningbo                                               guarante
Sales                                                e
Co., Ltd.
Huadon
g                                                    Joint and
Medicin                                              several
            April 18,            March
e                       16,000              2,000    liability   None       None        1 year      No         No
Ningbo                                               guarante
Sales                                                e
Co., Ltd.
Huadon
g                                                    Joint and
Medicin                                              several
            April 24,            May 21,
e                       18,000              2,850    liability   None       None        1 year      No         No
Ningbo                                               guarante
Sales                                                e
Co., Ltd.
Huadon
g                                                    Joint and
Medicin                                              several
            April 24,            May 25,
e                       18,000              2,850    liability   None       None        1 year      No         No
Ningbo                                               guarante
Sales                                                e
Co., Ltd.
Huadon
g                                                    Joint and
Medicin                                              several
            April 24,            June 15,
e                       18,000              2,850    liability   None       None        1 year      No         No
Ningbo                                               guarante
Sales                                                e
Co., Ltd.
Huadon                                               Joint and
g                                                    several
            April 24,            June 16,
Medicin                 15,000              3,800    liability   None       None        1 year      No         No
e Jinhua                                             guarante
Co., Ltd.                                            e
Huadon                                               Joint and
g                                                    several
            April 24,            June 23,
Medicin                 15,000              4,750    liability   None       None        1 year      No         No
e Jinhua                                             guarante
Co., Ltd.                                            e
Huadon
                                                     Joint and
g
                                                     several
Medicin     April 18,            January
e           2025                 8, 2026
                                                     guarante
Huzhou
                                                     e
Co., Ltd.
Huadon
                                                     Joint and
g
                                                     several
Medicin     April 18,            January
e           2025                 14, 2026
                                                     guarante
Huzhou
                                                     e
Co., Ltd.
                                                    Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Huadon
                                                     Joint and
g
                                                     several
Medicin     April 18,            March
e           2025                 20, 2026
                                                     guarante
Huzhou
                                                     e
Co., Ltd.
Huadon
                                                     Joint and
g
                                                     several
Medicin     April 18,            March
e           2025                 26, 2026
                                                     guarante
Huzhou
                                                     e
Co., Ltd.
Huadon
                                                     Joint and
g
                                                     several
Medicin     April 24,            May 21,
e           2026                 2026
                                                     guarante
Huzhou
                                                     e
Co., Ltd.
Huadon
                                                     Joint and
g
                                                     several
Medicin     April 24,            June 22,
e           2026                 2026
                                                     guarante
Huzhou
                                                     e
Co., Ltd.
Huadon
g                                                    Joint and
Medicin                                              several
            April 18,            January
e                       20,000              1,900    liability   None       None        1 year      No         No
Shaoxin                                              guarante
g Co.,                                               e
Ltd.
Huadon
g                                                    Joint and
Medicin                                              several
            April 18,            March
e                       20,000              1,900    liability   None       None        1 year      No         No
Shaoxin                                              guarante
g Co.,                                               e
Ltd.
Huadon
g                                                    Joint and
Medicin                                              several
            April 18,            March
e                       20,000              3,800    liability   None       None        1 year      No         No
Shaoxin                                              guarante
g Co.,                                               e
Ltd.
Huadon
g                                                    Joint and
Medicin                                              several
            April 18,            March
e                       20,000              2,000    liability   None       None        1 year      No         No
Shaoxin                                              guarante
g Co.,                                               e
Ltd.
Huadon                                               Joint and
g                                                    several
            April 24,            May 21,
Medicin                 20,000              2,850    liability   None       None        1 year      No         No
e                                                    guarante
Shaoxin                                              e
                                                     Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
g Co.,
Ltd.
Huadon
g                                                     Joint and
Medicin                                               several
            April 24,            June 15,
e                       20,000               2,850    liability   None       None        1 year      No         No
Shaoxin                                               guarante
g Co.,                                                e
Ltd.
Huadon
g
Medicin
                                                      Joint and
e
                                                      several
(Hangzh     April 18,            April 23,
ou)         2025                 2026
                                                      guarante
Biologic
                                                      e
al
Product
Co., Ltd.
Huadon
g
Medicin
                                                      Joint and
e
                                                      several
(Hangzh     April 24,            April 29,
ou)         2026                 2026
                                                      guarante
Biologic
                                                      e
al
Product
Co., Ltd.
Huadon
g
Medicin
                                                      Joint and
e
                                                      several
(Hangzh     April 24,            April 29,
ou)         2026                 2026
                                                      guarante
Biologic
                                                      e
al
Product
Co., Ltd.
Huadon
g
Medicin
                                                      Joint and
e
                                                      several
(Hangzh     April 24,            June 25,
ou)         2026                 2026
                                                      guarante
Biologic
                                                      e
al
Product
Co., Ltd.
Huadon
g
Medicin                                               Joint and
e                                                     several
            April 24,            June 25,
(Hangzh                  5,000                 30     liability   None       None        1 year      No         No
ou)                                                   guarante
Biologic                                              e
al
Product
                                                    Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Co., Ltd.
Huadon
g
Medicin
                                                     Joint and
e
                                                     several
(Hangzh     April 24,            June 25,
ou)         2026                 2026
                                                     guarante
Biologic
                                                     e
al
Product
Co., Ltd.
Huadon
g
Medicin
                                                     Joint and
e
                                                     several
(Hangzh     April 24,            June 25,
ou)         2026                 2026
                                                     guarante
Biologic
                                                     e
al
Product
Co., Ltd.
Joyang
            April 24,
Laborato                 5,000                                                          1 year      No         No
ries
Huadon
g                                                    Joint and
                                                                            Proporti
Medicin                                              several
            April 18,            August                                     onal
e                       24,000              1,000    liability   None                   1 year      No         No
Wenzho                                               guarante
                                                                            e
u Co.,                                               e
Ltd.
Huadon
g                                                    Joint and
                                                                            Proporti
Medicin                                              several
            April 18,            August                                     onal
e                       24,000              1,000    liability   None                   1 year      No         No
Wenzho                                               guarante
                                                                            e
u Co.,                                               e
Ltd.
Huadon
g                                                    Joint and
                                                                            Proporti
Medicin                                              several
            April 18,            March                                      onal
e                       24,000               215     liability   None                   1 year      No         No
Wenzho                                               guarante
                                                                            e
u Co.,                                               e
Ltd.
Huadon
g                                                    Joint and
                                                                            Proporti
Medicin                                              several
            April 18,            March                                      onal
e                       24,000              1,000    liability   None                   1 year      No         No
Wenzho                                               guarante
                                                                            e
u Co.,                                               e
Ltd.
Huadon                                               Joint and
                                                                            Proporti
g                                                    several
            April 18,            March                                      onal
Medicin                 24,000              1,000    liability   None                   1 year      No         No
e                                                    guarante
                                                                            e
Wenzho                                               e
                                                     Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
u Co.,
Ltd.
Huadon
g                                                     Joint and
                                                                             Proporti
Medicin                                               several
            April 24,            April 28,                                   onal
e                       24,000                722     liability   None                   1 year      No         No
Wenzho                                                guarante
                                                                             e
u Co.,                                                e
Ltd.
Huadon
g                                                     Joint and
                                                                             Proporti
Medicin                                               several
            April 24,            April 28,                                   onal
e                       24,000                171     liability   None                   1 year      No         No
Wenzho                                                guarante
                                                                             e
u Co.,                                                e
Ltd.
Huadon
g                                                     Joint and
                                                                             Proporti
Medicin                                               several
            April 24,            April 29,                                   onal
e                       24,000               1,000    liability   None                   1 year      No         No
Wenzho                                                guarante
                                                                             e
u Co.,                                                e
Ltd.
Huadon
g                                                     Joint and
                                                                             Proporti
Medicin                                               several
            April 24,            May 27,                                     onal
e                       24,000                446     liability   None                   1 year      No         No
Wenzho                                                guarante
                                                                             e
u Co.,                                                e
Ltd.
Huadon
g                                                     Joint and
                                                                             Proporti
Medicin                                               several
            April 24,            June 26,                                    onal
e                       24,000                379     liability   None                   1 year      No         No
Wenzho                                                guarante
                                                                             e
u Co.,                                                e
Ltd.
Huadon                                                Joint and
                                                                             Guarante
g                                                     several
            April 24,            May 26,                                     e+
Medicin                 15,000               3,563    liability   None                   1 year      No         No
e Lishui                                              guarante
                                                                             loan
Co., Ltd.                                             e
Huadon
g
Medicin     April 24,
e           2026
Daishan
Co., Ltd.
Huadon
g                                                     Joint and
Medicin                                               several
            April 18,            March
e Cunde                  7,600                950     liability   None       None        1 year      No         No
(Zhoush                                               guarante
an) Co.,                                              e
Ltd.
Huadon      April 18,            March                Joint and
g           2025                 26, 2026             several
                                                    Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Medicin                                              liability
e Cunde                                              guarante
(Zhoush                                              e
an) Co.,
Ltd.
Huadon
g                                                    Joint and
Medicin                                              several
            April 24,            June 23,
e Cunde                  7,600              1,900    liability   None       None        1 year      No         No
(Zhoush                                              guarante
an) Co.,                                             e
Ltd.
Hangzho
u
Zhongm
ei
Huadon
            April 24,
g                       60,000                                                          1 year      No         No
Pharmac
eutical
Jiangdon
g Co.,
Ltd.
Hangzho
u                                                    Joint and
Huadon                                               several
            April 24,            June 23,
g                        7,000              1,900    liability   None       None        1 year      No         No
Medicin                                              guarante
e Chain                                              e
Co., Ltd.
Hubei
                                                     Joint and
Magic                                                                       Proporti
                                                     several
Health      April 18,            January                                    onal
Technol     2025                 26, 2026                                   guarante
                                                     guarante
ogy Co.,                                                                    e
                                                     e
Ltd.
Hubei
                                                     Joint and
Magic                                                                       Proporti
                                                     several
Health      April 18,            February                                   onal
Technol     2025                 10, 2026                                   guarante
                                                     guarante
ogy Co.,                                                                    e
                                                     e
Ltd.
Hubei
                                                     Joint and
Magic                                                                       Proporti
                                                     several
Health      April 18,            March                                      onal
Technol     2025                 10, 2026                                   guarante
                                                     guarante
ogy Co.,                                                                    e
                                                     e
Ltd.
Hubei
                                                     Joint and
Magic                                                                       Proporti
                                                     several
Health      April 24,            June 26,                                   onal
Technol     2026                 2026                                       guarante
                                                     guarante
ogy Co.,                                                                    e
                                                     e
Ltd.
Hubei                                                Joint and              Proporti
            April 24,            June 29,
Magic                    3,600                71     several     None       onal        1 year      No         No
Health                                               liability              guarante
                                                    Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Technol                                              guarante               e
ogy Co.,                                             e
Ltd.
Huadon
                                                     Joint and
g
                                                     several
Medicin     April 18,            March
e           2025                 26, 2026
                                                     guarante
(Jiaxing)
                                                     e
Co., Ltd.
Huadon
g
Medicin     April 24,
e           2026
(Jiaxing)
Co., Ltd.
Zhejiang
Yiqun
Biologic
al          April 24,
Pharmac     2026
eutical
Trading
Co., Ltd.
Hangzho
u Huayi
            April 24,
Pharmac                  1,500                                                          1 year      No         No
y Co.,
Ltd.
Anhui
                                                     Joint and
Meihua
                                                     several
Hi-Tech     April 18,            January
Pharmac     2025                 14, 2026
                                                     guarante
eutical
                                                     e
Co., Ltd.
Anhui
                                                     Joint and
Meihua
                                                     several
Hi-Tech     April 18,            January
Pharmac     2025                 26, 2026
                                                     guarante
eutical
                                                     e
Co., Ltd.
Anhui
                                                     Joint and
Meihua
                                                     several
Hi-Tech     April 18,            February
Pharmac     2025                 25, 2026
                                                     guarante
eutical
                                                     e
Co., Ltd.
Anhui
                                                     Joint and
Meihua
                                                     several
Hi-Tech     April 18,            March
Pharmac     2025                 16, 2026
                                                     guarante
eutical
                                                     e
Co., Ltd.
Anhui                                                Joint and
Meihua                                               several
            April 18,            March
Hi-Tech                  5,000               366     liability   None       None        1 year      No         No
Pharmac                                              guarante
eutical                                              e
                                                     Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Co., Ltd.
Anhui
                                                      Joint and
Meihua
                                                      several
Hi-Tech     April 18,            April 14,
Pharmac     2025                 2026
                                                      guarante
eutical
                                                      e
Co., Ltd.
Anhui
                                                      Joint and
Meihua
                                                      several
Hi-Tech     April 24,            April 24,
Pharmac     2026                 2026
                                                      guarante
eutical
                                                      e
Co., Ltd.
Anhui
                                                      Joint and
Meihua
                                                      several
Hi-Tech     April 24,            May 7,
Pharmac     2026                 2026
                                                      guarante
eutical
                                                      e
Co., Ltd.
Anhui
                                                      Joint and
Meihua
                                                      several
Hi-Tech     April 24,            May 22,
Pharmac     2026                 2026
                                                      guarante
eutical
                                                      e
Co., Ltd.
Anhui
                                                      Joint and
Meihua
                                                      several
Hi-Tech     April 24,            May 26,
Pharmac     2026                 2026
                                                      guarante
eutical
                                                      e
Co., Ltd.
Huadon
g
Medicin
e
Internati   April 24,
onal        2026
Trade
(Zhejian
g) Co.,
Ltd.
Hangzho
u
Yuexing
Youpin      April 24,
Health      2026
Manage
ment
Co., Ltd.
Wuhu
Huaren
Science
            April 24,
and                      3,000                                                           1 year      No         No
Technol
ogy Co.,
Ltd.
Huadon      April 18,   20,000   March       1,694    Joint and   None       None        1 year      No         No
                                                   Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
g           2025                 24, 2026           several
Medicin                                             liability
e                                                   guarante
(Guizho                                             e
u)
Pharmac
eutical
Co., Ltd.
Huadon
g
Medicin
e
            April 24,
(Guizho                 20,000                                                         1 year      No         No
u)
Pharmac
eutical
Co., Ltd.
Huadon
g
Medicin
            April 24,
e                       17,000                                                         1 year      No         No
(Hangzh
ou) Co.,
Ltd.
Bailing
                                                    Joint and
Health
                                                    several
Science     April 18,            April 1,
(Hangzh     2025                 2026
                                                    guarante
ou) Co.,
                                                    e
Ltd.
Bailing
                                                    Joint and
Health
                                                    several
Science     April 24,            May 9,
(Hangzh     2026                 2026
                                                    guarante
ou) Co.,
                                                    e
Ltd.
Bailing
                                                    Joint and
Health
                                                    several
Science     April 24,            May 9,
(Hangzh     2026                 2026
                                                    guarante
ou) Co.,
                                                    e
Ltd.
Bailing
                                                    Joint and
Health
                                                    several
Science     April 24,            June 10,
(Hangzh     2026                 2026
                                                    guarante
ou) Co.,
                                                    e
Ltd.
Bailing
                                                    Joint and
Health
                                                    several
Science     April 24,            June 10,
(Hangzh     2026                 2026
                                                    guarante
ou) Co.,
                                                    e
Ltd.
Gongwe                                              Joint and
            April 18,            April 13,
i                        2,000               228    several     None       None        1 year      No         No
Lianchu                                             liability
                                                          Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
ang                                                        guarante
(Shangh                                                    e
ai)
Biotechn
ology
Co., Ltd.
Gongwe
i
Lianchu                                                    Joint and
ang                                                        several
            April 24,              June 16,
(Shangh                    2,000                     95    liability   None         None         1 year     No          No
ai)                                                        guarante
Biotechn                                                   e
ology
Co., Ltd.
HD
Animal                                                                              Equity
                                                           Joint and
Health                                                                              pledge
                                                           several
(Jiangsu    April 18,              January                                          by
)           2025                   30, 2026                                         minority
                                                           guarante
Pharmac                                                                             sharehol
                                                           e
eutical                                                                             ders
Co., Ltd.
HD
Animal
Health
(Jiangsu    April 24,
)           2026
Pharmac
eutical
Co., Ltd.
Total approved                                Total actual
guarantee quota for                           guarantee amount
subsidiaries during                 468,800   for subsidiaries                                                          98,298.26
the reporting period                          during the reporting
(B1)                                          period (B2)
Total approved                                Total guarantee
guarantee quota for                           balance for
subsidiaries at the                 975,785   subsidiaries at the                                                       131,766.6
end of the reporting                          end of the reporting
period (B3)                                   period (B4)
                                   Guarantees provided by subsidiaries to other subsidiaries
            Disclosu
             re date
                                                                                                                        Whether
                of
Name of                                         Actual                                                      Whether       it is a
            announc                 Actual                 Type of                  Counter-
guarante                Guarante               guarante                Collatera                 Guarante    it has     guarante
              ement                occurren                guarante                 guarante
    e                    e quota                  ed                   l (if any)                e period     been         e for
            regardin                ce date                   e                     e (if any)
recipient                                      amount                                                       fulfilled    related
               g the
                                                                                                                         parties
            guarante
             e quota
Chongqi                                                    Joint and
                                                                                     Proporti
ng Peg-                                                    several
            April 18,              May 7,                                           onal
Bio                      1,396.4                    113    liability   None                      3 years    No          Yes
Biophar                                                    guarante
                                                                                    e
m Co.,                                                     e
                                                 Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Ltd.
Chongqi
                                                  Joint and
ng Peg-                                                                   Proporti
                                                  several
Bio       April 18,             July 26,                                 onal
Biophar   2024                  2024                                     guarante
                                                  guarante
m Co.,                                                                   e
                                                  e
Ltd.
Chongqi
                                                  Joint and
ng Peg-                                                                   Proporti
                                                  several
Bio       April 18,             August                                   onal
Biophar   2024                  21, 2024                                 guarante
                                                  guarante
m Co.,                                                                   e
                                                  e
Ltd.
Chongqi
                                                  Joint and
ng Peg-                                                                   Proporti
                                                  several
Bio       April 18,             August                                   onal
Biophar   2024                  23, 2024                                 guarante
                                                  guarante
m Co.,                                                                   e
                                                  e
Ltd.
Chongqi
                                                  Joint and
ng Peg-                                                                   Proporti
                                Septemb           several
Bio       April 18,                                                      onal
Biophar   2024                                                           guarante
m Co.,                                                                   e
                                                  e
Ltd.
Chongqi
                                                  Joint and
ng Peg-                                                                   Proporti
                                                  several
Bio       April 18,             April 21,                                onal
Biophar   2025                  2025                                     guarante
                                                  guarante
m Co.,                                                                   e
                                                  e
Ltd.
Chongqi
                                                  Joint and
ng Peg-                                                                   Proporti
                                                  several
Bio       April 18,             April 25,                                onal
Biophar   2025                  2025                                     guarante
                                                  guarante
m Co.,                                                                   e
                                                  e
Ltd.
Chongqi
                                                  Joint and
ng Peg-                                                                   Proporti
                                                  several
Bio       April 18,             April 29,                                onal
Biophar   2025                  2025                                     guarante
                                                  guarante
m Co.,                                                                   e
                                                  e
Ltd.
Chongqi
                                                  Joint and
ng Peg-                                                                   Proporti
                                                  several
Bio       April 18,             May 15,                                  onal
Biophar   2025                  2025                                     guarante
                                                  guarante
m Co.,                                                                   e
                                                  e
Ltd.
Chongqi
                                                  Joint and
ng Peg-                                                                   Proporti
                                                  several
Bio       April 18,             May 20,                                  onal
Biophar   2025                  2025                                     guarante
                                                  guarante
m Co.,                                                                   e
                                                  e
Ltd.
Chongqi   April 18,             May 28,           Joint and               Proporti
ng Peg-   2025                  2025              several                onal
                                                Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Bio                                              liability              guarante
Biophar                                          guarante               e
m Co.,                                           e
Ltd.
Chongqi
                                                 Joint and
ng Peg-                                                                  Proporti
                                                 several
Bio       April 18,             June 6,                                 onal
Biophar   2025                  2025                                    guarante
                                                 guarante
m Co.,                                                                  e
                                                 e
Ltd.
Chongqi
                                                 Joint and
ng Peg-                                                                  Proporti
                                                 several
Bio       April 18,             June 12,                                onal
Biophar   2025                  2025                                    guarante
                                                 guarante
m Co.,                                                                  e
                                                 e
Ltd.
Chongqi
                                                 Joint and
ng Peg-                                                                  Proporti
                                                 several
Bio       April 18,             June 26,                                onal
Biophar   2025                  2025                                    guarante
                                                 guarante
m Co.,                                                                  e
                                                 e
Ltd.
Chongqi
                                                 Joint and
ng Peg-                                                                  Proporti
                                                 several
Bio       April 18,             July 10,                                onal
Biophar   2025                  2025                                    guarante
                                                 guarante
m Co.,                                                                  e
                                                 e
Ltd.
Chongqi
                                                 Joint and
ng Peg-                                                                  Proporti
                                                 several
Bio       April 18,             July 14,                                onal
Biophar   2025                  2025                                    guarante
                                                 guarante
m Co.,                                                                  e
                                                 e
Ltd.
Chongqi
                                                 Joint and
ng Peg-                                                                  Proporti
                                                 several
Bio       April 18,             July 23,                                onal
Biophar   2025                  2025                                    guarante
                                                 guarante
m Co.,                                                                  e
                                                 e
Ltd.
Chongqi
                                                 Joint and
ng Peg-                                                                  Proporti
                                                 several
Bio       April 18,             July 31,                                onal
Biophar   2025                  2025                                    guarante
                                                 guarante
m Co.,                                                                  e
                                                 e
Ltd.
Chongqi
                                                 Joint and
ng Peg-                                                                  Proporti
                                                 several
Bio       April 18,             August                                  onal
Biophar   2025                  7, 2025                                 guarante
                                                 guarante
m Co.,                                                                  e
                                                 e
Ltd.
Chongqi                                          Joint and
                                                                         Proporti
ng Peg-                                          several
          April 18,             August                                  onal
Bio                   1,396.4              9     liability   None                   3 years     No         Yes
Biophar                                          guarante
                                                                        e
m Co.,                                           e
                                                Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Ltd.
Chongqi
                                                 Joint and
ng Peg-                                                                  Proporti
                                Septemb          several
Bio       April 18,                                                     onal
Biophar   2025                                                          guarante
m Co.,                                                                  e
                                                 e
Ltd.
Chongqi
                                                 Joint and
ng Peg-                                                                  Proporti
                                                 several
Bio       April 18,             October                                 onal
Biophar   2025                  16, 2025                                guarante
                                                 guarante
m Co.,                                                                  e
                                                 e
Ltd.
Chongqi
                                                 Joint and
ng Peg-                                                                  Proporti
                                                 several
Bio       April 18,             October                                 onal
Biophar   2025                  28, 2025                                guarante
                                                 guarante
m Co.,                                                                  e
                                                 e
Ltd.
Chongqi
                                                 Joint and
ng Peg-                                                                  Proporti
                                Novemb           several
Bio       April 18,                                                     onal
Biophar   2025                                                          guarante
m Co.,                                                                  e
                                                 e
Ltd.
Chongqi
                                                 Joint and
ng Peg-                                                                  Proporti
                                Decemb           several
Bio       April 18,                                                     onal
Biophar   2025                                                          guarante
m Co.,                                                                  e
                                                 e
Ltd.
Chongqi
                                                 Joint and
ng Peg-                                                                  Proporti
                                Decemb           several
Bio       April 18,                                                     onal
Biophar   2025                                                          guarante
m Co.,                                                                  e
                                                 e
Ltd.
Chongqi
                                                 Joint and
ng Peg-                                                                  Proporti
                                                 several
Bio       April 18,             January                                 onal
Biophar   2025                  9, 2026                                 guarante
                                                 guarante
m Co.,                                                                  e
                                                 e
Ltd.
Chongqi
                                                 Joint and
ng Peg-                                                                  Proporti
                                                 several
Bio       April 18,             January                                 onal
Biophar   2025                  15, 2026                                guarante
                                                 guarante
m Co.,                                                                  e
                                                 e
Ltd.
Chongqi
                                                 Joint and
ng Peg-                                                                  Proporti
                                                 several
Bio       April 18,             January                                 onal
Biophar   2025                  22, 2026                                guarante
                                                 guarante
m Co.,                                                                  e
                                                 e
Ltd.
Chongqi   April 18,             January          Joint and               Proporti
ng Peg-   2025                  30, 2026         several                onal
                                                  Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Bio                                                liability              guarante
Biophar                                            guarante               e
m Co.,                                             e
Ltd.
Chongqi
                                                   Joint and
ng Peg-                                                                    Proporti
                                                   several
Bio       April 18,             February                                  onal
Biophar   2025                  5, 2026                                   guarante
                                                   guarante
m Co.,                                                                    e
                                                   e
Ltd.
Chongqi
                                                   Joint and
ng Peg-                                                                    Proporti
                                                   several
Bio       April 18,             February                                  onal
Biophar   2025                  11, 2026                                  guarante
                                                   guarante
m Co.,                                                                    e
                                                   e
Ltd.
Chongqi
                                                   Joint and
ng Peg-                                                                    Proporti
                                                   several
Bio       April 18,             March                                     onal
Biophar   2025                  12, 2026                                  guarante
                                                   guarante
m Co.,                                                                    e
                                                   e
Ltd.
Chongqi
                                                   Joint and
ng Peg-                                                                    Proporti
                                                   several
Bio       April 18,             March                                     onal
Biophar   2025                  20, 2026                                  guarante
                                                   guarante
m Co.,                                                                    e
                                                   e
Ltd.
Chongqi
                                                   Joint and
ng Peg-                                                                    Proporti
                                                   several
Bio       April 18,             March                                     onal
Biophar   2025                  27, 2026                                  guarante
                                                   guarante
m Co.,                                                                    e
                                                   e
Ltd.
Chongqi
                                                   Joint and
ng Peg-                                                                    Proporti
                                                   several
Bio       April 18,             April 2,                                  onal
Biophar   2025                  2026                                      guarante
                                                   guarante
m Co.,                                                                    e
                                                   e
Ltd.
Chongqi
                                                   Joint and
ng Peg-                                                                    Proporti
                                                   several
Bio       April 18,             April 9,                                  onal
Biophar   2025                  2026                                      guarante
                                                   guarante
m Co.,                                                                    e
                                                   e
Ltd.
Chongqi
                                                   Joint and
ng Peg-                                                                    Proporti
                                                   several
Bio       April 18,             April 14,                                 onal
Biophar   2025                  2026                                      guarante
                                                   guarante
m Co.,                                                                    e
                                                   e
Ltd.
Chongqi                                            Joint and
                                                                           Proporti
ng Peg-                                            several
          April 18,             April 15,                                 onal
Bio                   1,396.4                 6    liability   None                   3 years     No         Yes
Biophar                                            guarante
                                                                          e
m Co.,                                             e
                                                          Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Ltd.
Chongqi
                                                           Joint and
ng Peg-                                                                            Proporti
                                                           several
Bio         April 18,             April 21,                                       onal
Biophar     2025                  2026                                            guarante
                                                           guarante
m Co.,                                                                            e
                                                           e
Ltd.
Chongqi
                                                           Joint and
ng Peg-                                                                            Proporti
                                                           several
Bio         April 18,             April 23,                                       onal
Biophar     2025                  2026                                            guarante
                                                           guarante
m Co.,                                                                            e
                                                           e
Ltd.
Chongqi
                                                           Joint and
ng Peg-                                                                            Proporti
                                                           several
Bio         April 24,             May 14,                                         onal
Biophar     2026                  2026                                            guarante
                                                           guarante
m Co.,                                                                            e
                                                           e
Ltd.
Chongqi
                                                           Joint and
ng Peg-                                                                            Proporti
                                                           several
Bio         April 24,             June 4,                                         onal
Biophar     2026                  2026                                            guarante
                                                           guarante
m Co.,                                                                            e
                                                           e
Ltd.
Chongqi
                                                           Joint and
ng Peg-                                                                            Proporti
                                                           several
Bio         April 24,             June 11,                                        onal
Biophar     2026                  2026                                            guarante
                                                           guarante
m Co.,                                                                            e
                                                           e
Ltd.
Chongqi
                                                           Joint and
ng Peg-                                                                            Proporti
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Bio         April 24,             June 25,                                        onal
Biophar     2026                  2026                                            guarante
                                                           guarante
m Co.,                                                                            e
                                                           e
Ltd.
Total approved                                Total actual
guarantee quota for                           guarantee amount
subsidiaries during                  1,396    for subsidiaries                                                          432.34
the reporting period                          during the reporting
(C1)                                          period (C2)
Total approved                                Total guarantee
guarantee quota for                           balance for
subsidiaries at the                  4,189    subsidiaries at the                                                     1,146.99
end of the reporting                          end of the reporting
period (C3)                                   period (C4)
                          Total Company guarantees (sum of the fore-mentioned three major items)
Total approved                                Total actual
guarantee quota                               guarantee amount
during the reporting               470,196    during the reporting                                                    98,730.6
period (A1 + B1 +                             period (A2 + B2 +
C1)                                           C2)
Total approved                                Total guarantee
guarantee quota at                 979,974    balance at the end of                                                132,913.59
the end of the                                the reporting period
                                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
 reporting period (A3                              (A4 + B4 + C4)
 + B3 + C3)
 Proportion of total actual guarantees (i.e., A4
 + B4 + C4) in the Company's net assets
 Incl.:
 Outstanding debt guarantees provided
 directly or indirectly to guarantee recipients
 with an asset liability ratio exceeding 70%
 (E)
 Total of the above three guaranteed amounts
 (D + E + F)
Explanation of specific situations for composite guarantee
□Applicable Not applicable
The Company did not have any entrusted wealth management during the reporting period.
□Applicable Not applicable
The Company did not have any other significant contracts during the reporting period.
XIII. Registration form for activities such as research, communication, and interviews
conducted during the reporting period
Applicable □Not applicable
                                                                                        Main content
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   Reception            Reception        Reception      Type of
                                                                        Visitors             and          information of the
     date                address          method        visitor
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                                                                                                         refer to the Record
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                                                        Institutio   Securities,
                     Conference                                                         Investor         by the Company on
 January 21                                             ns and       TF
                     room of the         Field visits                                   communicati      the Shenzhen Stock
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                     Conference                         Institutio   Industrial         2025 Annual      For details, see the
 April        24,                        Online
                     room of the                        ns and       Securities,        & 2026 First     Record Sheet of
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                                                 Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
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                                                           Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                                                                     Stock             .
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XIV. Other major events
□Applicable Not applicable
The Company had no other significant matters requiring explanation during the reporting period.
XV. Major events of subsidiaries
Applicable □Not applicable
      As of the release date of the Report, under the supervision of the court, the liquidation of
Huadong Ningbo Medicine Co., Ltd. has completed the disposal of major asset. Currently, only
the collection of remaining receivables remains pending. The Company will actively advance the
subsequent liquidation. During this reporting period, the Company recognized an investment
income of RMB -2,119,166.93 by using the equity method.
                                                     Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
             Section VI Share Changes and Shareholders Information
I. Changes in shares
                                                                                                               Unit: Shares
                Before the change                    Change in the period (+/-)                       After the change
                                                                Shares
                                                               converted
                                      New         Bonus
               Quantity     Ratio                                from       Others       Subtotal   Quantity        Ratio
                                     shares       shares
                                                                capital
                                                                reserve
 I. Shares
 subject to
 trading                     0.06%            0            0           0   -284,200      -284,200   723,750           0.04%
 restriction
 s
 Shares
 held by
 the State
 Shares
 held by
 the state-           0      0.00%            0            0           0             0          0          0          0.00%
 owned
 corporatio
 ns
 Shares
 held by       1,007,95
 other                0
 domestic
 investors
      Incl.:
 Shares
 held by
 domestic
 corporatio
 ns
      Shar
 es held by
 domestic                    0.06%            0            0           0   -284,200      -284,200   723,750           0.04%
 natural
 persons
 Shares
 held by              0      0.00%            0            0           0             0          0          0          0.00%
 overseas
 investors
                                               Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
      Incl.:
 shares
 held by
 overseas
 corporatio
 ns
      Shar
 es held by
 overseas              0         0.00%   0        0            0           0            0            0       0.00%
 natural
 persons
 II. Shares
 without
 trading                        99.94%   0        0            0           0            0                   99.96%
 restriction
 s
 Common        1,753,01                                                                      1,753,01
 shares in        3,098                                                                         3,098
 RMB
 Foreign
 capital
 shares
 listed in
 China
 Foreign
 capital
 shares
 listed
 overseas
 Others
 III. Total
 number of                     100.00%   0        0            0   -284,200     -284,200                   100.00%
 shares
Reason for changes in shares
Applicable □Not applicable
      During the reporting period, the Company completed the repurchase and cancellation of
certain restricted shares under its Restricted Stock Incentive Plan in 2022. A total of 284,200
restricted stocks were repurchased and canceled, resulting in a corresponding decrease of 284,200
shares in the Company's total share capital.
Approval of changes in shares
Applicable □Not applicable
Directors, on which the following proposals were reviewed and approved: Proposal on the
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Fulfillment of the Release Conditions during the Third Restriction Release Period for First Grant of
Reserved Restricted Stocks under the Restricted Stock Incentive Plan in 2022, the Proposal on
Adjusting the Repurchase Price of the Restricted Stock Incentive Plan in 2022 and the Proposal on
Repurchase and Cancellation of Certain Restricted Stocks. The Board of Directors believed that the
conditions for releasing restrictions during the third restriction release period of the first grant of
restricted stocks under the Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to
the authorization granted by the Company's 1st Extraordinary General Meeting in 2022, the Board
of Directors agreed to handle the releasing procedures for 1,275,120 restricted stocks for 77
incentive recipients during the third restriction release period, and also approved the repurchase and
cancellation of a total of 284,200 restricted stocks that had been granted but not yet released from
trading restrictions, corresponding to 6 incentive recipients who were no longer eligible due to
resignation, 16 incentive recipients whose individual performance assessment results for the third
restriction release period were unqualified, 3 incentive recipients whose individual performance
assessment results for the restriction release period were qualified among the initially granted
incentive recipients, 1 reserved incentive recipient who was no longer eligible due to resignation,
and 2 incentive recipients whose individual performance evaluations for the second restriction
release period were unqualified among the incentive recipients of reserved grants. The
Remuneration and Appraisal Committee of the Board of Directors issued verification opinions on
relevant matters, while lawyers and independent financial advisors provided corresponding reports.
On November 22, 2025, the Company disclosed the relevant announcements on Cninfo
(http://www.cninfo.com.cn).
in 2025, where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks and the
Proposal on Expanding the Business Scope, Altering the Registered Capital and Amending the
"Articles of Association" were reviewed and approved. On the same day, the Company disclosed
the Announcement on Reducing Registered Capital by Repurchasing and Canceling Some
Restricted Stocks and Notifying Creditors. As of January 23, 2026, the benchmark date for capital
verification, i.e., within forty-five days from the date when the Company announced the reduction
of capital, no creditor requested the Company to pay off its debts or provide corresponding
guarantees.
Repurchase and Cancellation of Certain Restricted Stocks. On March 5, 2026, the Company
completed the procedures for repurchase and cancellation of 284,200 restricted stocks at Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited.
                                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Transfer of changed shares
Applicable □Not applicable
      In February 2026, the Company submitted the relevant registration materials to the Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited for the repurchase and
cancellation of 284,200 shares involved in the equity incentive plan. In the same month, the
Shenzhen Branch of China Securities Depository and Clearing Corporation Limited issued the
Confirmation for Registration of Securities Transfer to the Company, and the total share capital of
the Company was reduced from 1,754,021,048.00 shares to 1,753,736,848.00 shares.
Progress of implementation of share repurchase
□Applicable Not applicable
Progress in the implementation of the reduction of repurchased shares via centralized bidding
□Applicable Not applicable
Impact of share changes on financial indicators such as basic and diluted earnings per share, and net assets per share attributable to
common shareholders of the Company in the last year and the latest period
Applicable □Not applicable
      Calculated based on the total number of stocks before the change in share capital
(1,754,021,048 shares), the Company's basic earnings per share in 2026 were RMB 1.0609/share,
diluted earnings/share were RMB 1.0609/share, and net assets per share attributable to common
shareholder of the Company were RMB 14.5046/share. Calculated based on the total number of
stocks after the change in share capital (1,753,736,848 shares), the Company's basic earnings per
share for 2026 were RMB 1.0610/share, diluted earnings per share were RMB 1.0610/share, and net
assets per share attributable to common shareholder of the Company were RMB 14.5069/share.
      Overall, the aforementioned changes in share capital did not have a significant impact on the
Company's financial indicators for the first half of 2026, including basic and diluted earnings per
share, as well as net assets per share attributable to common shareholder of the Company.
Other contents deemed necessary by the Company or required to be disclosed by securities regulatory authorities
□Applicable Not applicable
Applicable □Not applicable
                                                                                                                         Unit: Shares
                                                              Number of
                       Number of           Number of              newly           Number of
                        restricted          restricted          increased          restricted
    Name of                                                                                          Reasons for         Restriction
                      stocks at the      stocks released        restricted       stocks at the
   shareholder                                                                                      sale restriction     release date
                      beginning of          during the       stocks during        end of the
                       the period        current period        the current           period
                                                                  period
                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                                                                   In accordance
                                                                                   with
                                                                Locked-up          regulations on
                                                                stocks for         the
Zhang Jianfei    60,000   0               0            60,000
                                                                senior             management of
                                                                management         shares held by
                                                                                   senior
                                                                                   managers
                                                                                   In accordance
                                                                                   with
                                                                Locked-up          regulations on
                                                                stocks for         the
Zhang Jianfei   112,500   0               0           112,500
                                                                senior             management of
                                                                management         shares held by
                                                                                   senior
                                                                                   managers
                                                                                   In accordance
                                                                                   with
                                                                Locked-up          regulations on
                                                                stocks for         the
Lv Liang        150,000   0               0           150,000
                                                                senior             management of
                                                                management         shares held by
                                                                                   senior
                                                                                   managers
                                                                                   In accordance
                                                                                   with
                                                                Locked-up          regulations on
                                                                stocks for         the
Zhu Li           22,500   0               0            22,500
                                                                senior             management of
                                                                management         shares held by
                                                                                   senior
                                                                                   managers
                                                                                   In accordance
                                                                                   with
                                                                Locked-up          regulations on
                                                                stocks for         the
Zhu Li          112,500   0               0           112,500
                                                                senior             management of
                                                                management         shares held by
                                                                                   senior
                                                                                   managers
                                                                                   In accordance
                                                                                   with
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                                                                stocks for         the
Wu Hui           78,750   0               0            78,750
                                                                senior             management of
                                                                management         shares held by
                                                                                   senior
                                                                                   managers
                                                                                   In accordance
                                                                                   with
                                                                Locked-up          regulations on
                                                                stocks for         the
Chen Bo          75,000   0               0            75,000
                                                                senior             management of
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                                                                                   senior
                                                                                   managers
Qiu Renbo        75,000   0               0            75,000   Locked-up          In accordance
                                                            Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                                                                                   stocks for                with
                                                                                                   senior                    regulations on
                                                                                                   management                the
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                                                                                                                             senior
                                                                                                                             managers
                                                                                                                             In accordance
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                                                                                                   Locked-up                 regulations on
                                                                                                   stocks for                the
 Zhu Liang                     22,500                 0                   0              22,500
                                                                                                   senior                    management of
                                                                                                   management                shares held by
                                                                                                                             senior
                                                                                                                             managers
                                                                                                                             In accordance
                                                                                                                             with
                                                                                                   Locked-up                 regulations on
 Zhang                                                                                             stocks for                the
 Zhongxing                                                                                         senior                    management of
                                                                                                   management                shares held by
                                                                                                                             senior
                                                                                                                             managers
 Other mid-level
 management
                                                                                                   Restricted
 personnel and
                                                                                                   stocks under
 core technical               284,200                 0          -284,200                     0                              /
                                                                                                   equity incentive
 (business)
                                                                                                   plan
 personnel of the
 Company
 Total                    1,007,950                   0          -284,200               723,750             --                       --
II. Issuance and listing of securities
□Applicable Not applicable
III. Number of shareholders and shareholding
                                                                                                                                 Unit: Shares
 Total number of common                                     Total number of preferred shareholders
 shareholders at the end of                      100,196    with restored voting rights at the end of                                          0
 the reporting period                                       the reporting period (if any) (see Note 8)
    Particulars about shareholders with a shareholding ratio of over 5% or the top 10 shareholders (excluding shares lent through
                                                             conversions)
                                              Number of                                                            Pledged, marked or
                                                                              Number of      Number of
                                              shares held     Changes                                               locked-up status
                                                                              shares held    shares held
  Name of        Nature of      Shareholdi     at the end    during the
                                                                                  with         without
 shareholder    shareholder      ng ratio        of the      reporting                                           Status of
                                                                                trading        trading                              Quantity
                                               reporting       period                                             shares
                                                                              restrictions   restrictions
                                                 period
 China          Domestic
 Grand          non-state-                    730,938,15                                     730,938,15                            144,810,00
 Enterprises,   owned                                  7                                              7                                     0
 Inc.           corporation
                                                  Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Hangzhou
Huadong       State-
Medicine      owned         16.42%                0                       0                                          0
Group Co.,    corporation
Ltd.
Hong Kong
Securities
              Overseas                                                                       Not
Clearing                    2.33%    40,944,342   -5,423,649              0    40,944,342                            0
              corporation                                                                    applicable
Company
Limited
New China
Life
Insurance
Co., Ltd. -
Dividend -                                                                                   Not
              Others        2.05%    35,907,902   942,660                 0    35,907,902                            0
Individual                                                                                   applicable
Dividend -
FH002
Shenzhen
New China
Life
Insurance
Co., Ltd. -
Traditional
                                                                                             Not
- General     Others        1.44%    25,203,996   3,413,182               0    25,203,996                            0
                                                                                             applicable
Insurance
Products -
CT001
Shenzhen
Bank of
Shanghai
Co., Ltd. -
Yinhua CSI
Innovative
Pharmaceut
ical
                                                                                             Not
Industry      Others        0.82%    14,464,550   3,812,809               0    14,464,550                            0
                                                                                             applicable
Traded
Open-
ended
Index
Securities
Investment
Fund
China
Constructio
n Bank
Corporatio
n - E Fund
CSI 300                                                                                      Not
              Others        0.81%    14,252,950   2,540,440               0    14,252,950                            0
Medical                                                                                      applicable
and Health
Trading
Open Index
Securities
Investment
                                                            Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Fund
National
Social
Security                                                                                               Not
               Others              0.59%       10,419,328   6,182,224               0    10,419,328                                0
Fund -                                                                                                 applicable
Portfolio
Bank of
China Co.,
Ltd. – GF
CSI
Innovative
Drug
Industry                                                                                               Not
               Others              0.54%        9,530,815   3,408,208               0     9,530,815                                0
Exchange                                                                                               applicable
Traded
Open-end
Index
Securities
Investment
Fund
China
Merchants
Bank Co.,
Ltd. –
Industrial
Synergy                                                                                                Not
               Others              0.42%        7,361,209   3,821,209               0     7,361,209                                0
Return                                                                                                 applicable
Enhanced
Bond
Securities
Investment
Fund
Strategic investors or
general corporations
become the top 10
                              Not applicable
shareholders due to the
placement of new shares
(if any) (see Note 3)
Explanation on associated
relationships or concerted    The Company is unaware of whether the above-mentioned shareholders are related parties or
actions among the above-      whether they are concert parties with one another.
mentioned shareholders
Explanation on the above
shareholders involved in
proxy/trusted voting rights   Not applicable
and waiver of voting
rights
Special notes on the
existence of repurchase
special accounts among        Not applicable
the top 10 shareholders(if
any)(See Note 11)
 Information about the top 10 shareholders without trading restrictions (excluding shares lent through conversions and locked-up
                                                shares for senior management)
                                                          Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                                                                                           Type of shares
                               Number of shares held without trading restrictions at the end of the
  Name of shareholder                                                                                   Type of
                                                       reporting period                                             Quantity
                                                                                                         shares
                                                                                                       RMB
China Grand Enterprises,                                                                                            730,938,15
Inc.                                                                                                                         7
                                                                                                       shares
                                                                                                       RMB
Hangzhou Huadong                                                                                                    288,000,00
Medicine Group Co., Ltd.                                                                                                     0
                                                                                                       shares
Hong Kong Securities                                                                                   RMB
Clearing Company                                                                         40,944,342    common       40,944,342
Limited                                                                                                shares
New China Life Insurance
                                                                                                       RMB
Co., Ltd. - Dividend -
Individual Dividend -
                                                                                                       shares
New China Life Insurance
Co., Ltd. - Traditional -                                                                              RMB
General Insurance                                                                        25,203,996    common       25,203,996
Products - 018L-CT001                                                                                  shares
Shenzhen
Bank of Shanghai Co.,
Ltd. - Yinhua CSI
                                                                                                       RMB
Innovative Pharmaceutical
Industry Traded Open-
                                                                                                       shares
ended Index Securities
Investment Fund
China Construction Bank
Corporation - E Fund CSI
                                                                                                       RMB
Trading Open Index
                                                                                                       shares
Securities Investment
Fund
                                                                                                       RMB
National Social Security
Fund - Portfolio 110
                                                                                                       shares
Bank of China Co., Ltd. –
GF CSI Innovative Drug                                                                                 RMB
Industry Exchange Traded                                                                   9,530,815   common        9,530,815
Open-end Index Securities                                                                              shares
Investment Fund
China Merchants Bank
Co., Ltd. – Industrial                                                                                 RMB
Synergy Return Enhanced                                                                    7,361,209   common        7,361,209
Bond Securities                                                                                        shares
Investment Fund
Description of the related
party relationship or
concerted action among
the top 10 shareholders
holding unrestricted         The Company is unaware of whether the above-mentioned shareholders are related parties or
shares, and between the      whether they are concert parties with one another.
top 10 shareholders
holding unrestricted
shares and the top 10
shareholders.
                                                                Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
 Description of the top 10
 common shareholders'
                               As of the end of the current reporting period, none of the top 10 common shareholders of the
 participation in margin
                               Company held shares of the Company through securities margin trading accounts.
 trading business (if any)
 (see Note 4)
Participation in the lending of shares through refinancing business of shareholders holding more than 5% of shares, top 10
shareholders and top 10 shareholders holding tradable shares without trading restriction
□Applicable Not applicable
Change in top 10 shareholders and top 10 shareholders holding tradable shares without trading restriction due to lending/returning
of shares through refinancing as compared to the previous period
□Applicable Not applicable
Whether the top 10 common shareholders and the top 10 common shareholders with unrestricted stocks in the Company engage in
the agreed repurchase transactions during the reporting period
□Yes No
The top 10 common shareholders and the top 10 common shareholders with unrestricted stocks in the Company did not engage in
any agreed repurchase transactions during the reporting period.
IV. Changes in shareholdings of directors and senior managers
□Applicable Not applicable
There has been no change in the shareholding status of the Company's directors and senior managers during the reporting period.
For full details, please refer to the 2025 Annual Report.
V. Changes in controlling shareholders or de facto controllers
As previously disclosed by the Company, the de facto controller is planning a change of control which has not yet been completed.
Please provide an update on the progress of this change of control.
□Applicable Not applicable
Change in controlling shareholder during the reporting period
□Applicable Not applicable
There was no change in the controlling shareholder of the Company during the reporting period.
Change in the de facto controller during the reporting period
□Applicable Not applicable
There was no change in the de facto controller of the Company during the reporting period.
                                                          Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
VI. Relevant situation of preferred shares
□Applicable Not applicable
The Company did not have preferred shares during the reporting period.
                                           Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                              Section VII Information on Bonds
□Applicable Not applicable
                                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                       Section VIII Financial Reports
I. Audit report
Whether the semi-annual financial report has been audited
□Yes No
The Company's semi-annual financial report has not been audited.
II. Financial statements
The unit in the notes to financial statements is: RMB
Prepared by: Huadong Medicine Co., Ltd.
                                                            June 30, 2026
                                                                                                                     Unit: RMB
                      Item                                  Closing balance                          Opening balance
 Current assets:
    Monetary funds                                                    5,605,360,468.39                          4,978,052,188.84
    Deposit reservation for balance
    Lendings to banks and other financial
 institutions
    Trading financial assets
    Derivative financial assets
    Notes receivable                                                        9,420,826.08                             6,213,394.05
    Accounts receivable                                               8,841,404,841.16                          8,985,587,945.31
    Receivables financing                                               865,267,156.65                            460,578,206.16
    Prepayments                                                         440,117,285.40                            445,803,941.09
    Premium receivable
    Reinsurance accounts receivable
    Reinsurance contract reserve
 receivable
    Other receivables                                                   632,928,610.62                            517,535,129.39
      Incl.: Interest receivable
                Dividends receivable                                        5,024,474.67                               223,608.84
    Financial assets purchased for resale
    Inventory                                                         5,030,683,149.60                          5,535,765,919.86
      Incl.: Data resources
    Contract assets
    Assets held for sale
    Non-current assets due within one year                                                                         75,464,880.54
    Other current assets                                                188,965,311.55                            222,343,329.23
                                           Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Total current assets                              21,614,147,649.45                          21,227,344,934.47
Non-current assets:
  Loans and advances issued
  Debt investments
  Other debt investments
  Long-term receivables
  Long-term equity investment                       1,650,742,294.80                          1,509,122,017.22
  Investment in other equity instruments             674,265,706.81                             681,006,253.76
  Other non-current financial assets
  Investment property                                  10,480,170.79                             10,946,776.47
  Fixed assets                                      4,289,689,684.93                          4,470,264,264.88
  Construction in progress                           987,615,685.14                             832,431,516.18
  Productive biological assets
  Oil and gas assets
  Right-of-use assets                                199,999,619.57                             170,395,474.59
  Intangible assets                                 3,798,710,511.50                          3,849,691,624.59
     Incl.: Data resources
  Development expenditure                           2,119,595,539.50                          1,757,196,902.53
     Incl.: Data resources
  Goodwill                                          2,839,831,632.30                          2,860,135,566.37
  Long-term deferred expenses                          16,458,438.84                             19,541,767.43
  Deferred income tax assets                         439,471,542.07                             385,084,524.45
  Other non-current assets                          1,334,473,280.11                          1,264,874,697.98
Total non-current assets                          18,361,334,106.36                          17,810,691,386.45
Total assets                                      39,975,481,755.81                          39,038,036,320.92
Current liabilities:
  Short-term borrowings                             1,715,030,135.18                          1,621,903,523.77
  Borrowings from the central bank
  Borrowings from other banks and
other financial institutions
  Trading financial liabilities
  Derivative financial liabilities
  Notes payable                                     3,068,414,627.61                          2,910,051,094.08
  Accounts payable                                  5,243,981,724.11                          5,059,850,765.02
  Advance receipts                                        495,915.58                                797,358.84
  Contract liabilities                               145,747,142.69                             188,554,462.61
  Expense for financial assets sold for
repurchase
  Deposits taken and interbank deposits
  Receivings from vicariously traded
securities
  Receivings from vicariously sold
securities
                                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
   Employee compensation payable                                         212,037,322.11                            411,598,841.94
   Taxes and dues payable                                                373,250,286.43                            563,317,023.92
   Other payables                                                      2,581,603,873.52                          2,215,275,211.55
      Incl.: Interests payable
               Dividends payable                                         101,810,219.60                            102,560,219.60
   Handling charges and commissions
 payable
   Reinsurance accounts payable
   Liabilities held for sale
   Non-current liabilities due within one
 year
   Other current liabilities                                              17,003,618.72                             10,443,641.94
 Total current liabilities                                            13,429,764,566.07                         13,090,663,656.22
 Non-current liabilities:
   Provision for insurance contracts
   Long-term borrowings                                                  250,096,486.73                            252,034,854.55
   Bonds payable
      Incl.: Preferred share
               Perpetual bonds
   Lease liabilities                                                     116,993,386.72                             88,813,504.20
   Long-term payables
   Long-term employee compensation
 payable
   Estimated liabilities                                                   4,018,799.32                             20,617,015.41
   Deferred revenue                                                      182,119,801.26                            190,942,291.61
   Deferred income tax liabilities                                       212,327,829.99                            223,959,318.75
   Other non-current liabilities
 Total non-current liabilities                                           765,556,304.02                            776,366,984.52
 Total liabilities                                                    14,195,320,870.09                         13,867,030,640.74
 Owners' equity:
  Share capital                                                        1,753,736,848.00                          1,753,736,848.00
  Other equity instruments
    Incl.: Preferred share
            Perpetual bonds
  Capital reserve                                                      2,405,166,419.87                          2,416,358,618.64
  Less: Treasury share
  Other comprehensive income                                            -194,461,639.77                               5,770,687.07
   Special reserves
   Surplus reserves                                                    1,616,443,486.39                          1,616,443,486.39
   General risk reserves
   Retained earnings                                                  19,860,477,809.20                         19,019,030,352.89
 Total owners' equity attributable to the
 parent company
   Minority interests                                                    338,797,962.03                            359,665,687.19
 Total owners' equity                                                 25,780,160,885.72                         25,171,005,680.18
 Total liabilities and owners' equity                                 39,975,481,755.81                         39,038,036,320.92
Legal representative: Lv Liang       Officer in charge of accounting: Lv Liang    Head of Accounting Department: Qiu Renbo
                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                                                                                     Unit: RMB
                     Item                   Closing balance                          Opening balance
 Current assets:
   Monetary funds                                     4,310,026,513.42                          3,564,448,718.56
   Trading financial assets
   Derivative financial assets
   Notes receivable                                       9,420,826.08                               6,213,394.05
   Accounts receivable                                5,287,063,503.46                          5,391,415,855.65
   Receivables financing                                237,087,856.44                            244,857,205.35
   Prepayments                                          261,760,229.68                            245,653,821.11
   Other receivables                                  5,475,950,962.47                          3,563,354,230.97
      Incl.: Interest receivable
               Dividends receivable                   2,067,200,000.00                             67,200,000.00
   Inventory                                          3,121,025,899.27                          3,288,268,422.10
      Incl.: Data resources
   Contract assets
   Assets held for sale
   Non-current assets due within one year                                                          53,905,213.88
   Other current assets                                  13,327,168.63                             45,575,531.66
 Total current assets                                18,715,662,959.45                         16,403,692,393.33
 Non-current assets:
   Debt investments
   Other debt investments
   Long-term receivables
   Long-term equity investment                        6,391,381,154.30                          6,201,961,896.83
   Investment in other equity instruments                10,080,000.00                             10,080,000.00
   Other non-current financial assets
   Investment property                                    5,561,297.02                               5,794,413.34
   Fixed assets                                         127,382,735.08                            131,080,028.79
   Construction in progress                               1,800,536.15                                 752,212.39
   Productive biological assets
   Oil and gas assets
   Right-of-use assets                                        161,702.52                             1,686,359.56
   Intangible assets                                    108,933,501.04                            110,137,694.50
      Incl.: Data resources
   Development expenditure
      Incl.: Data resources
   Goodwill
   Long-term deferred expenses                            5,333,518.74                               5,542,232.16
   Deferred income tax assets                            65,893,677.66                             75,065,627.63
   Other non-current assets                             300,759,793.64                            286,664,901.46
                                           Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
Total non-current assets                            7,017,287,916.15                          6,828,765,366.66
Total assets                                      25,732,950,875.60                          23,232,457,759.99
Current liabilities:
  Short-term borrowings                              630,713,926.42                             710,713,926.42
  Trading financial liabilities
  Derivative financial liabilities
  Notes payable                                     1,320,723,517.00                          1,256,135,416.88
  Accounts payable                                  3,560,108,728.09                          3,549,725,618.44
  Advance receipts
  Contract liabilities                                 66,784,419.68                             36,191,247.19
  Employee compensation payable                        13,553,074.43                             19,904,483.43
  Taxes and dues payable                               67,344,370.67                             82,180,746.62
  Other payables                                    6,971,742,843.01                          5,337,446,854.57
     Incl.: Interests payable
               Dividends payable                          224,219.60                                224,219.60
  Liabilities held for sale
  Non-current liabilities due within one
year
  Other current liabilities                             8,449,120.34                               4,614,684.54
Total current liabilities                         12,639,419,999.64                          10,997,106,273.10
Non-current liabilities:
  Long-term borrowings
  Bonds payable
     Incl.: Preferred share
               Perpetual bonds
  Lease liabilities
  Long-term payables
  Long-term employee compensation
payable
  Estimated liabilities
  Deferred revenue                                     26,586,598.89                             27,869,536.35
  Deferred income tax liabilities                          40,425.63                             10,075,067.31
  Other non-current liabilities
Total non-current liabilities                          26,627,024.52                             37,944,603.66
Total liabilities                                 12,666,047,024.16                          11,035,050,876.76
Owners' equity:
 Share capital                                      1,753,736,848.00                          1,753,736,848.00
 Other equity instruments
   Incl.: Preferred share
           Perpetual bonds
 Capital reserve                                    2,334,357,232.56                          2,334,357,232.56
 Less: Treasury share
 Other comprehensive income
  Special reserves
  Surplus reserves                                  1,694,299,245.83                          1,694,299,245.83
                                                Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
   Retained earnings                                      7,284,510,525.05                          6,415,013,556.84
 Total owners' equity                                    13,066,903,851.44                         12,197,406,883.23
 Total liabilities and owners' equity                    25,732,950,875.60                         23,232,457,759.99
                                                                                                         Unit: RMB
                       Item                   First half of 2026                        First half of 2025
 I. Total operating revenue                              22,066,646,185.69                         21,674,928,965.21
   Incl.: Operating revenue                              22,066,646,185.69                         21,674,928,965.21
               Interest income
               Premiums earned
         Handling charges and
 commissions revenue
 II. Total operating costs                               19,835,882,521.19                         19,418,419,774.58
   Incl.: Operating costs                                14,828,934,265.49                         14,327,396,132.90
               Interest expenditure
         Handling charges and
 commissions expenditure
               Surrender value
               Net payments for insurance
 claims
               Net provision for insurance
 liabilities
               Expense for insurance policy
 dividends
               Reinsurance expenses
               Taxes and surcharges                         133,198,163.38                            114,585,169.40
               Selling expenses                           3,415,134,454.00                          3,229,044,236.81
               Management expenses                          695,712,456.19                            725,296,086.80
               R&D expenses                                 747,087,944.12                            999,673,972.93
               Financial expenses                            15,815,238.01                             22,424,175.74
                 Incl.: Interest expense                     36,071,715.71                             56,147,464.39
                         Interest income                     37,923,772.29                             45,613,834.96
   Plus: Other incomes                                       61,562,073.66                            144,290,664.93
        Investment income (loss
 expressed with "-")
              Incl.: Investment income in
 associates and joint ventures
                     Income from
 derecognition of financial assets
 measured on the basis of amortized costs
         Exchange gains (loss expressed
 with "-")
        Net exposure hedging gains (loss
 expressed with "－")
          Gains from changes in fair value
                                               Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
(loss expressed with "-")
       Credit impairment loss (loss
                                                          -28,480,291.32                             -83,959,366.71
expressed with "-")
       Asset impairment loss (loss
                                                           -7,889,468.30
expressed with "-")
        Gains from disposal of assets
(loss expressed with "-")
III. Operating profit (loss expressed with
"-")
  Plus: Non-operating revenue                               1,638,197.10                               4,157,614.19
  Less: Non-operating expenses                             48,620,827.68                             54,367,929.24
IV. Total profit (total loss expressed with
"-")
  Less: Income tax expense                               371,103,526.62                             389,834,341.82
V. Net profit (net loss expressed with "-")             1,839,889,537.26                          1,803,329,008.97
   (I) Classification by continuity of
operation
operations (net loss expressed with "-")
operations (net loss expressed with "-")
   (II) Classification by ownership
shareholders of the parent company (net                 1,860,757,262.42                          1,814,826,860.86
loss expressed with "-")
minority shareholders (net loss expressed                 -20,867,725.16                             -11,497,851.89
with "-")
VI. Other comprehensive income (net of
                                                         -202,374,761.11                             23,756,112.05
tax)
   Other comprehensive income
attributable to the owner of the parent                  -202,374,761.11                             23,756,112.05
company (net of tax)
      (I) Other comprehensive income
that cannot be reclassified into the profits                 -233,323.77                                -171,215.68
and losses
of defined benefit plan
that cannot be included in the profits and                 -1,054,257.88
losses under the equity method
investment in other equity instruments
enterprise's credit risks
      (II) Other comprehensive income
that will be reclassified into the profits               -202,141,437.34                             23,927,327.73
and losses
that can be transferred to the profit and
loss under the equity method
investments in other debt investments
                                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
 into other comprehensive income
 of other debt investments
                                                                        -202,141,437.34                               23,927,327.73
 currency financial statements
    Other comprehensive income
 attributable to minority shareholders (net
 of tax)
 VII. Total comprehensive income                                       1,637,514,776.15                            1,827,085,121.02
    Total comprehensive income
 attributable to the owner of the parent                               1,658,382,501.31                            1,838,582,972.91
 company
    Total comprehensive income
                                                                         -20,867,725.16                               -11,497,851.89
 attributable to minority shareholders
 VIII. Earnings per share:
    (I) Basic earnings per share                                                 1.0610                                        1.0293
    (II) Diluted earnings per share                                              1.0610                                        1.0346
If there is a business combination under common control in this period, the net profit of the combined party before the
combination is RMB 0.00, and the net profit of the combined party in the previous period is RMB 0.00.
Legal representative: Lv Liang       Officer in charge of accounting: Lv Liang    Head of Accounting Department: Qiu Renbo
                                                                                                                          Unit: RMB
                    Item                                   First half of 2026                          First half of 2025
 I. Operating revenue                                                 12,631,586,239.42                           11,924,816,596.23
    Less: Operating cost                                              12,065,132,012.66                           11,319,964,972.46
         Taxes and surcharges                                             22,709,024.58                               12,340,230.92
         Selling expenses                                                180,334,972.13                              236,318,613.02
         Management expenses                                              93,815,406.83                               84,584,023.83
         R&D expenses
         Financial expenses                                              127,314,588.26                             -119,960,930.02
           Incl.: Interest expense                                        54,453,009.18                               17,223,303.45
                   Interest income                                        28,890,599.07                                   5,044,375.26
    Plus: Other incomes                                                    5,886,338.08                               10,728,229.03
        Investment income (loss
 expressed with "-")
           Incl.: Investment income in
                                                                           -2,119,166.93                                    977,686.70
 associates and joint ventures
                   Income from
 derecognition of financial assets
 measured on the basis of amortized cost
 (loss expressed with "-")
        Net exposure hedging gains (loss
 expressed with "－")
         Gains from changes in fair value
 (loss expressed with "-")
                                               Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
       Credit impairment loss (loss
                                                         -257,444,880.28                           -223,466,792.26
expressed with "-")
       Asset impairment loss (loss
expressed with "-")
        Gains from disposal of assets
(loss expressed with "-")
II. Operating profit (loss expressed with
"-")
  Plus: Non-operating revenue                                   6,937.93                                  17,931.33
  Less: Non-operating expenses                             20,685,635.67                             12,363,241.49
III. Total profit (total loss expressed with
"-")
  Less: Income tax expense                                 28,450,890.82                             97,197,219.33
IV. Net profit (net loss expressed with "-
")
   (I) Net profits from continuing
operations (net loss expressed with "-")
   (II) Net profit from discontinued
operations (net loss expressed with "-")
V. Other comprehensive income (net of
tax)
      (I) Other comprehensive income
that cannot be reclassified into the profits
and losses
of defined benefit plan
that cannot be included in the profits and
losses under the equity method
investment in other equity instruments
enterprise's credit risks
      (II) Other comprehensive income
that will be reclassified into the profits
and losses
that can be transferred to the profit and
loss under the equity method
investments in other debt investments
into other comprehensive income
of other debt investments
currency financial statements
VI. Total comprehensive income                          1,886,664,340.05                          2,275,760,082.51
VII. Earnings per share:
   (I) Basic earnings per share
   (II) Diluted earnings per share
                                              Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                                                                                       Unit: RMB
                    Item                    First half of 2026                        First half of 2025
 I. Cash flows from operating activities:
    Cash received from selling goods and
 providing services
    Net increase in deposits from
 customers as well as banks and other
 financial institutions
   Net increase in borrowings from the
 central bank
    Net increase in borrowings from other
 financial institutions
    Cash received from the original
 insurance contract premium
   Net cash received from reinsurance
 business
   Net increase in deposits and
 investments from policyholders
   Cash received from interests, handling
 charges and commissions
   Net increase in borrowings from banks
 and other financial institutions
   Net increase in funds from repurchase
 business
    Net cash received from securities
 trading agency
   Refund of taxes and fees received                        2,589,794.81                               5,110,647.25
   Receipt of other cash relating to
 operating activities
 Subtotal of cash inflows from operating
 activities
    Cash paid for purchase of goods and
 receipt of labor services
   Net increase in customer loans and
 advance payments
   Net increase in deposits with the
 central bank and interbank
    Cash for payment of the original
 insurance contract
   Net increase in lendings to banks and
 other financial institutions
   Cash paid for interests, handling
 charges and commissions
   Cash for payment of dividends on
 policies
   Cash paid to and for employees                       2,724,872,670.38                          2,692,040,129.25
   Various taxes and fees paid                          1,573,252,891.88                          1,576,435,543.90
   Payment of other cash relating to
 operating activities
 Subtotal of cash outflows from operating              21,368,088,629.43                         20,903,934,207.81
                                             Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
activities
Net cash flow from operating activities               2,499,419,530.63                          2,456,848,510.10
II. Cash flows from investing activities:
   Cash received from investment
recovery
   Cash received from obtaining
investment income
   Net cash recovered from disposal of
fixed assets, intangible assets and other                 4,772,727.51                             10,814,966.49
long-term assets
   Net cash received from disposal of
subsidiaries and other business units
   Receipt of other cash relating to
investing activities
Subtotal of cash inflows from investing
activities
   Cash paid for the purchase and
construction of fixed assets, intangible               718,496,969.99                             788,358,827.36
assets and other long-term assets
   Cash paid for investment                            149,419,257.47                              61,560,775.00
  Net increase in pledged loans
   Net cash paid for acquisition of
subsidiaries and other business entities
   Payments of other cash relating to
investing activities
Subtotal of cash outflows from investing
activities
Net cash flows from investing activities               -762,606,541.65                           -791,757,068.20
III. Cash flows from financing activities:
   Cash received by absorbing
investment
   Incl.: Cash received by subsidiaries
from minority shareholders' investment
   Cash received from obtaining
borrowings
   Receipt of other cash relating to
financing activities
Subtotal of cash inflows from financing
activities
  Cash paid for debt repayment                        1,613,149,927.02                          1,728,740,028.90
  Cash paid to distribute dividends,
profits or pay interest
   Incl.: Dividends and profits paid by
subsidiaries to minority shareholders
   Payment of other cash relating to
financing activities
Subtotal of cash outflows from financing
activities
Net cash flow from financing activities                -983,956,953.27                          -1,533,431,198.50
IV. Effect of exchange rate changes on
                                                         -1,458,952.03                           -116,843,004.40
cash and cash equivalents
V. Net increase in cash and cash
equivalents
   Plus: Opening balance of cash and
cash equivalents
VI. Closing balance of cash and cash                  5,487,318,747.58                          5,004,968,425.68
                                                 Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
 equivalents
                                                                                                           Unit: RMB
                     Item                      First half of 2026                        First half of 2025
 I. Cash flows from operating activities:
    Cash received from selling goods and
 providing services
    Refund of taxes and fees received
    Receipt of other cash relating to
 operating activities
 Subtotal of cash inflows from operating
 activities
    Cash paid for purchase of goods and
 receipt of labor services
    Cash paid to and for employees                           161,790,608.85                           152,400,783.19
    Various taxes and fees paid                              196,358,472.64                           154,375,654.03
    Payment of other cash relating to
 operating activities
 Subtotal of cash outflows from operating
 activities
 Net cash flow from operating activities                     713,856,003.74                           665,355,614.03
 II. Cash flows from investing activities:
    Cash received from investment
 recovery
    Cash received from obtaining
 investment income
    Net cash recovered from disposal of
 fixed assets, intangible assets and other                     1,428,647.17                                 60,172.90
 long-term assets
    Net cash received from disposal of
 subsidiaries and other business units
    Receipt of other cash relating to
 investing activities
 Subtotal of cash inflows from investing
 activities
    Cash paid for the purchase and
 construction of fixed assets, intangible                     60,199,684.34                           104,186,490.92
 assets and other long-term assets
    Cash paid for investment                                 189,419,257.47                           160,000,000.00
    Net cash paid for acquisition of
 subsidiaries and other business entities
    Payments of other cash relating to
 investing activities
 Subtotal of cash outflows from investing
 activities
 Net cash flows from investing activities                   -362,062,190.40                          -528,698,759.81
 III. Cash flows from financing activities:
    Cash received by absorbing
 investment
    Cash received from obtaining
 borrowings
    Receipt of other cash relating to
 financing activities
 Subtotal of cash inflows from financing                   3,018,300,830.03                         8,270,912,877.50
                                                               Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
 activities
    Cash paid for debt repayment                                            700,000,000.00                               899,998,846.92
    Cash paid to distribute dividends,
 profits or pay interest
    Payment of other cash relating to
 financing activities
 Subtotal of cash outflows from financing
 activities
 Net cash flow from financing activities                                    439,132,836.75                           -145,008,202.24
 IV. Effect of exchange rate changes on
 cash and cash equivalents
 V. Net increase in cash and cash
 equivalents
    Plus: Opening balance of cash and
 cash equivalents
 VI. Closing balance of cash and cash
 equivalents
Amount in the current period
                                                                                                                           Unit: RMB
                                                                     First half of 2026
                                              Owners' equity attributable to the parent company
                               Other equity                         Oth                                                            Tota
                               instruments                  Less     er                                                              l
                                                                                              Gen                          Min
        Item        Shar                            Capi      :     com      Spe    Surp             Reta                  ority   own
                           Pref   Perp                                                        eral
                      e                              tal    Trea    preh     cial    lus             ined   Oth   Subt     inter   ers'
                           erre   etua                                                        risk
                    capi                  Oth       rese    sury    ensi     rese   rese             earn   ers   otal      ests   equi
                            d       l                                                         rese
                     tal                  ers        rve    shar     ve      rves   rves             ings                           ty
                           shar   bon                                                         rves
                                                              e     inco
                            e      ds                                me
 I. Closing                                                         5,77                             19,0         11,3             71,0
 balance of                                                         0,68                             30,3         39,9             05,6
 the prior year                                                     7.07                             52.8         92.9             80.1
      Plus:
 Changes in
 accounting
 policies
            Co
 rrection of
 prior period
 errors
               Ot
 hers
 II. Opening        1,75                             2,41                           1,61                                    359,
 balance of         3,73                             6,35                           6,44                                    665,
 the current        6,84                             8,61                           3,48                                    687.
 year               8.00                             8.64                           6.39                                      19
                                                        -              -                             841,         630,         -   609,
 III. Increase
                        Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
or decrease      92,1       232,                          456.           930.   67,7    205.
in the current   98.7       326.                            31             70   25.1      54
period              7         84                                                   6
(decrease
expressed
with "-")
                               -                                                   -
(I) Total                   202,                                                20,8
comprehensi                 374,                                                67,7
ve income                   761.                                                25.1
(II) Owner's
investment
and
reduction of
capital
stocks
invested by
the owner
invested by
holders of
other equity
instruments
share-based
payment
included in
owners'
equity
                                                             -              -              -
(III) Profit
distribution
for surplus
reserves
for general
risk reserves
                                                             -              -              -
Distribution
to owners (or
shareholders)
(IV) Internal                                                -
carry-over of                                             2,14
owners'                                                   2,43
equity                                                    4.27
                                  Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
 Conversion
 of capital
 reserve to
 capital (or
 share capital)
 Conversion
 of surplus
 reserve to
 capital (or
 share capital)
 covered by
 surplus
 reserve
 in the
 defined
 benefit plan
 transferred to
 retained
 earnings
 comprehensi
 ve income                            2,14
 carried                              2,43
 forward to                           4.27
 retained
 earnings
 (V) Special
 reserves
 withdrawn in
 the current
 period
 utilized in
 the current
 period
                              -                                                       -              -
 (VI) Others               92,1                                                    92,1           92,1
                                         -                          19,8           25,4           25,7
 IV. Closing      1,75     2,40                       1,61                                338,
 balance in       3,73     5,16                       6,44                                797,
 the current      6,84     6,41                       3,48                                962.
 period           8.00     9.87                       6.39                                  03
Amount of the prior year
                                                                                          Unit: RMB
     Item                              First half of 2025
                                                           Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                          Owners' equity attributable to the parent company
                           Other equity                         Oth                                                        Tota
                           instruments                  Less     er                                                Min       l
                                                                                       Gen
                 Shar                           Capi      :     com    Spe     Surp           Reta                 ority   own
                        Pref   Perp                                                    eral
                   e                             tal    Trea    preh   cial     lus           ined   Oth    Subt   inter   ers'
                        erre   etua                                                    risk
                 capi                 Oth       rese    sury    ensi   rese    rese           earn   ers    otal    ests   equi
                         d       l                                                     rese
                  tal                 ers        rve    shar     ve    rves    rves           ings                          ty
                        shar   bon                                                     rves
                                                          e     inco
                         e      ds                               me
                                                                   -                          17,4          23,0           23,5
I. Closing                                                      50,5                          56,8          60,0           63,7
balance of                                                      98,2                          42,0          51,3           54,9
the prior year                                                  04.1                          89.5          97.3           12.1
     Plus:
Changes in
accounting
policies
           Co
rrection of
prior period
errors
          Ot
hers
                                                                   -                          17,4          23,0           23,5
II. Opening      1,75                            2,55   46,8                   1,39                                503,
balance of       4,26                            0,78   04,1                   5,56                                703,
the current      2,54                            0,60   16.6                   8,47                                514.
year             8.00                            2.69      7                   7.98                                  76
III. Increase
or decrease                                         -                                                                 -
                    -                                      -    23,7                          797,          691,           551,
in the current                                   133,                                                              140,
period                                           802,                                                              614,
(decrease                                        109.                                                              414.
expressed                                          43                                                                67
with "-")
(I) Total                                                                                                          11,4
comprehensi                                                                                                        97,8
ve income                                                                                                          51.8
(II) Owner's
                    -                               -      -                                                          -
investment                                                                                                  2,67           2,64
and                                                                                                         4,11           5,15
reduction of                                                                                                3.56           2.79
capital
stocks           185,                                                                                       185,           185,
invested by      500.                                                                                       500.           500.
the owner          00                                                                                         00             00
invested by
holders of
other equity
                          Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
instruments
share-based                                                                          -
payment                                                                           28,9
included in                                                                       60.7
owners'                                                                              7
equity
                    -      -
                                                               -              -              -
(III) Profit                                                                      9,11
distribution                                                                      4,00
for surplus
reserves
for general
risk reserves
                                                               -              -              -
Distribution                                                                      9,11
to owners (or                                                                     4,00
shareholders)                                                                     0.00
(IV) Internal
carry-over of
owners'
equity
Conversion
of capital
reserve to
capital (or
share capital)
Conversion
of surplus
reserve to
capital (or
share capital)
covered by
surplus
reserve
in the
defined
benefit plan
transferred to
retained
                                                          Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
 earnings
 comprehensi
 ve income
 carried
 forward to
 retained
 earnings
 (V) Special
 reserves
 withdrawn in
 the current
 period
 utilized in
 the current
 period
                                                   -                                                             -      -        -
 (VI) Others                                    026,                                                          026,   973,     000,
                                                                   -                            18,2          23,7            24,1
 IV. Closing      1,75                          2,41   42,1                     1,39                                 363,
 balance in       4,07                          6,97   68,7                     5,56                                 089,
 the current      7,04                          8,49   91.6                     8,47                                 100.
 period           8.00                          3.26      7                     7.98                                   09
Amount in the current period
                                                                                                                     Unit: RMB
                                                                 First half of 2026
                            Other equity instruments                       Other
                                                       Capita     Less:    compr       Specia   Surplu   Retain              Total
     Item         Share     Prefer   Perpet               l      Treasu    ehensi         l        s       ed               owner
                                                                                                                  Others
                  capital    red      ual     Others   reserv      ry        ve        reserv   reserv   earnin               s'
                            share    bonds                e       share    incom         es       es       gs               equity
                                                                              e
 I. Closing       1,753,                               2,334,                                   1,694,   6,415,
 balance of        736,8                                357,2                                   299,2    013,5
 the prior year    48.00                                32.56                                   45.83    56.84
      Plus:
 Changes in
 accounting
 policies
            Co
 rrection of
 prior period
 errors
                            Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
            Ot
hers
II. Opening                                                                                12,19
balance of                                                                                7,406,
the current                                                                                883.2
year                                                                                           3
III. Increase
or decrease
in the current                                                          869,4              869,4
period                                                                  96,96              96,96
(decrease                                                                8.21               8.21
expressed
with "-")
(I) Total                                                              1,886,             1,886,
comprehensi                                                            664,3               664,3
ve income                                                              40.05               40.05
(II) Owner's
investment
and
reduction of
capital
stocks
invested by
the owner
invested by
holders of
other equity
instruments
share-based
payment
included in
owners'
equity
                                                                            -                  -
(III) Profit                                                           1,017,             1,017,
distribution                                                           167,3               167,3
for surplus
reserves
Distribution                                                           1,017,             1,017,
to owners (or                                                          167,3               167,3
shareholders)                                                          71.84               71.84
(IV) Internal
carry-over of
owners'
equity
                                                          Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
 Conversion
 of capital
 reserve to
 capital (or
 share capital)
 Conversion
 of surplus
 reserve to
 capital (or
 share capital)
 covered by
 surplus
 reserve
 in the
 defined
 benefit plan
 transferred to
 retained
 earnings
 comprehensi
 ve income
 carried
 forward to
 retained
 earnings
 (V) Special
 reserves
 withdrawn in
 the current
 period
 utilized in
 the current
 period
 (VI) Others
 IV. Closing                                                                                                              13,06
 balance in                                                                                                              6,903,
 the current                                                                                                              851.4
 period                                                                                                                       4
Amount of the prior year
                                                                                                                   Unit: RMB
                                                                First half of 2025
     Item                   Other equity instruments   Capita    Less:    Other      Specia   Surplu   Retain            Total
                  Share
                                                          l     Treasu    compr         l        s       ed     Others   owner
                  capital   Prefer   Perpet   Others
                                                       reserv     ry      ehensi     reserv   reserv   earnin              s'
                                            Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                           red     ual      e      share      ve      es        es       gs               equity
                          share   bonds                     incom
                                                               e
I. Closing       1,754,                   2,346,   46,80                      1,473,   6,058,             11,585
balance of        262,5                    443,4   4,116.                     424,2    410,5              ,736,6
the prior year    48.00                    94.22       67                     37.42    35.83               98.80
     Plus:
Changes in
accounting
policies
           Co
rrection of
prior period
errors
            Ot
hers
II. Opening
balance of
the current
year
III. Increase
or decrease
                                               -        -
in the current       -                                                                 1,258,             1,261,
period           185,5                                                                 395,3               040,5
(decrease        00.00                                                                 94.67               47.45
expressed
with "-")
(I) Total                                                                              2,275,             2,275,
comprehensi                                                                            760,0               760,0
ve income                                                                              82.51               82.51
(II) Owner's
                                               -        -
investment           -                                                                                    2,645,
and              185,5                                                                                     152.7
reduction of     00.00                                                                                         8
capital
                     -                                                                                         -
stocks
invested by
the owner
invested by
holders of
other equity
instruments
share-based                                    -                                                               -
payment                                   1,804,                                                          1,804,
included in                                672.2                                                           672.2
owners'                                        2                                                               2
equity
                 Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
                                                                 -                  -
(III) Profit                                                1,017,             1,017,
distribution                                                364,6               364,6
for surplus
reserves
Distribution                                                1,017,             1,017,
to owners (or                                               364,6               364,6
shareholders)                                               87.84               87.84
(IV) Internal
carry-over of
owners'
equity
Conversion
of capital
reserve to
capital (or
share capital)
Conversion
of surplus
reserve to
capital (or
share capital)
covered by
surplus
reserve
in the
defined
benefit plan
transferred to
retained
earnings
comprehensi
ve income
carried
forward to
retained
earnings
(V) Special
reserves
withdrawn in
the current
period
                                                           Full text of the 2026 Semi-annual Report of Huadong Medicine Co., Ltd.
 utilized in
 the current
 period
 (VI) Others
 IV. Closing                                                                                                               12,84
 balance in                                                                                                               6,777,
 the current                                                                                                               246.2
 period                                                                                                                        5
III. Basic information of the Company
        Huadong Medicine Co., Ltd. (hereinafter referred to as the "Company") was formerly known as Hangzhou Medicine Station
Co., Ltd., established as a directed share issuance company in March 1993. It was registered with the Zhejiang Provincial
Administration for Industry and Commerce on March 31, 1993, with its headquarters located in Hangzhou City, Zhejiang Province.
The Company currently holds a business license with the Unified Social Credit Code of 91330000143083157E, a registered capital
of RMB 1,753,736,848.00, and a total of 1,753,736,848 shares (par value of RMB 1 per share). As of June 30, 2026, there were
listed on the Shenzhen Stock Exchange on January 27, 2000.
        The Company operates in the pharmaceutical industry. The main business activities include the research, development,
manufacturing, and sales of pharmaceutical products.
 These financial statements were approved by the seventh meeting of the eleventh session of the Board of Directors on August 25,
                                                                                              Huadong Medicine Co., Ltd.
                                                                                                        Lv Liang, Chairman
                                                                                                            August 27, 2026