Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
Security code: 000963 Stock abbreviation: Huadong Medicine Announcement No.: 2024-087
Huadong Medicine Co., Ltd.
Third Quarterly Report 2024
The Company and all members of the Board of Directors hereby guarantee that the information presented in
this report is authentic, accurate and complete and free of any false records, misleading statements or material
omissions.
Important Declaration:
1. The Board of Directors, Board of Supervisors, directors, supervisors and senior management of Huadong
Medicine Co., Ltd. (hereinafter referred to as the "Company") hereby guarantee that the information presented in
this quarterly report is authentic, accurate and complete and free of false records, misleading statements or material
omissions, and shall undertake individual and joint legal liabilities.
2. The Company's legal representative, the officer in charge of accounting, and the head of accounting department
(accounting supervisor) hereby declare that the financial information in this quarterly report is authentic, accurate
and complete.
3. Has the Third Quarterly Report been audited?
□Yes No
According to “Stock Listing Rules of the Shenzhen Stock Exchange”, if listed companies have both Chinese 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.
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Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
I. Key Financial Data
(I) Key accounting data and financial indicators
Does the Company need to retroactively adjust or restate the accounting data of previous years?
□Yes No
Increase or decrease
Change from the
during the current
Beginning of the year beginning of the year
Current reporting reporting period
to the end of the to the end of the
period compared with the
reporting period reporting period over
same period of last
the end of last year
year
Operating revenue
10,512,589,144.83 5.03% 31,477,654,750.50 3.56%
(RMB)
Net profit attributable
to shareholders of the 866,306,099.25 14.71% 2,562,326,688.45 17.05%
listed company (RMB)
Net profit attributable
to shareholders of the
listed company after
856,621,563.99 16.93% 2,481,821,808.08 14.90%
deduction of non-
recurring profits and
losses (RMB)
Net cash flow from
operating activities — — 2,506,402,808.91 11.43%
(RMB)
Basic earnings per
0.4969 15.14% 1.4644 17.06%
share (RMB/share)
Diluted earnings per
0.4953 14.84% 1.4639 17.08%
share (RMB/share)
Weighted average
3.90% 0.11% 11.70% 0.49%
return on equity
End of the current Change of the end of the current reporting period
End of last year
reporting period over the end of last year
Total assets (RMB) 37,495,253,725.60 33,509,361,816.98 11.89%
Owners' equity
attributable to
22,041,377,799.42 21,047,609,756.66 4.72%
shareholders of listed
companies (RMB)
(II) Non-recurring profit and loss items and amounts
Applicable □Not applicable
Unit: yuan
Amount from the beginning
Amount during the reporting
Item of the year to the end of the Note
period
reporting period
Gains/losses on disposal of
non-current assets (including
the written-off part of the -2,182,713.07 2,177,150.46
accrued assets impairment
reserve)
Government grants included
in current gains/losses 66,731,056.88 144,217,106.52
(excluding those closely
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Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
related to daily business
operation, distributed
constantly in accordance with
defined standards in line with
national policies and
regulations, and constantly
affecting the Company’s
gains/losses)
Return of receivables
impairment reserves that are
1,270,982.00
individually tested for
impairment
Other non-operating income
and expenditures except the -49,322,309.41 -81,140,932.70
aforesaid items
Other profit and loss items
that satisfy the definition of -387,496.90 32,763,929.65
non-recurring profit and loss
Minus: Amount affected by
2,912,290.09 11,138,318.70
income tax
Impact on minority
2,241,712.15 7,645,036.86
interests (post-tax)
Total 9,684,535.26 80,504,880.37 --
Details of other profit and loss items conforming to the definition of non-recurring profits and losses
□Applicable Not applicable
The Company has no other specific circumstances of profit and loss items that meet the definition of non-recurring profits and losses.
An explanation of the fact that the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on Information
Disclosure by Companies that Offer Securities to the Public - Non-recurring Profits and Losses are defined as recurring profit and loss
items
□Applicable Not applicable
The Company did not define the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on Information
Disclosure by Companies that Offer Securities to the Public - Non-recurring Profits and Losses as recurring profit and loss items.
(III) Details and reasons for changes in key accounting data and financial indicators
Applicable □ N/A
Unit: ten thousand yuan
Amount at
Amount at the
Percentage
Balance sheet accounts the end of beginning Reasons for changes
change
the period of the
period
Mainly due to the disposal of foreign exchange
Derivative financial assets - -100.00% derivatives of currency swap in the current
1,643.45
period
Mainly due to the decrease in receivable trade
Notes receivable - 681.21 -100.00%
acceptance in the current period
Mainly due to the increase in revenue in the
Accounts receivable 995,987.46 745,525.07 33.60%
current period
Mainly due to the due collection and discount of
Receivables financing 61,599.73 143,436.63 -57.05%
bank acceptance bills in the current period
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Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
Mainly due to the increase in prepayments for
Prepayments 45,361.91 27,920.77 62.47%
medicines in the current period
Mainly due the increase in receivable temporary
Other receivables 52,601.23 29,113.51 80.68%
payments in the current period
Mainly due to the increase in loans in the current
Short-term borrowings 183,336.82 82,238.03 122.93%
period
Mainly due to the increase in payables settled by
Notes payable 276,686.04 172,742.10 60.17%
bills in the current period
Mainly due to the payment of salary in the
Employee benefits payable 20,873.78 35,914.85 -41.88%
current period
Mainly due the increase in payable temporary
Other payables 360,601.47 251,862.14 43.17%
payments in the current period
Mainly due to the debt repayment in the current
Long-term borrowings 6,797.95 52,075.95 -86.95%
period
Mainly due to the increase in lease in the current
Lease liabilities 8,877.92 5,669.52 56.59%
period
Mainly due to the transfer of unpaid acquisition
Long-term payables 2,414.43 10,725.12 -77.49% funds to non-current liabilities due within one
year in the current period
Mainly due to the increase in foreign currency
Other comprehensive income -2,266.56 -4,034.15 43.82%
translation difference in the current period
Amount in
Amount in
the Percentage
Income statement accounts the current Reasons for changes
previous change
period
period
Mainly due to the increase in revenue in the
Financial expenses 3,801.78 6,403.32 -40.63%
current period
Mainly due to the increase in income-related
Other income 16,898.21 7,061.76 139.29%
governmental subsidy in the current period
Mainly due to the increase in investment income
Total return -8,671.03 -16,884.29 48.64%
from joint ventures in the current period
Mainly due to the increase in bad-debt provision
Credit impairment loss -5,793.99 -4,202.25 -37.88%
in the current period
Mainly due to the decrease in income from the
Income from disposal of assets 217.72 358.76 -39.32%
disposal of fixed assets in the current period
Mainly due to the increase in payments not need
Non-operating revenue 744.27 353.70 110.42%
to be paid and revenue in the current period
Mainly due to the increase in donations in the
Non-operating expenses 8,891.13 2,400.01 270.46%
current period
Amount in
Amount in
the Percentage
Cash flow statement accounts the current Reasons for changes
previous change
period
period
Net cash flow from operating Mainly due to the increase in cash received from
250,640.28 224,927.79 11.43%
activities the sale of goods in the current period
Net cash flow from investing Mainly due to the increase in investment in the
-160,445.56 -94,792.15 -69.26%
activities current period
Net cash flow from financing Mainly due to the year-on-year decrease in debt
-116,141.66 -121,831.50 4.67%
activities repayment in the current period
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Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
II. Shareholder Information
(I) Total number of common shareholders, number of preferred shareholders with restored voting rights
and shareholdings of top 10 shareholders
Unit: Share
Total number of common
Total number of preference shareholders with restored
shareholders at the end of the 91,879 0
voting rights at the end of the reporting period (if any)
reporting period
Particulars about top 10 shareholders (excluding shares lent through conversions)
Number of Pledged, marked or locked-up
Name of Nature of Shareholding Number of shares with status
shareholder shareholder ratio shares held trading
Status of shares Quantity
restrictions held
China Grand Domestic non-
Enterprises, state-owned 41.67% 730,938,157.00 0 Pledge 147,070,000.00
Inc. corporation
Hangzhou
Huadong State-owned
16.42% 288,000,000.00 0 N/A 0
Medicine corporations
Group Co., Ltd.
Hong Kong
Securities Overseas
3.96% 69,449,072.00 0 N/A 0
Clearing corporation
Company Ltd.
China
Domestic non-
Securities
state-owned 1.26% 22,186,818.00 0 N/A 0
Finance Co.,
corporation
Ltd.
Industrial and
Commercial
Bank of China
Limited -
Others 0.98% 17,257,945.00 0 N/A 0
Huatai-
PineBridge CSI
300 Exchange
Traded Fund
Industrial and
Commercial
Bank of China
Limited -
China-Europe
Others 0.81% 14,242,403.00 0 N/A 0
Healthcare
Hybrid
Securities
Investment
Fund
China
Construction
Bank
Corporation - E
Others 0.78% 13,696,532.00 0 N/A 0
Fund CSI 300
Healthcare
Exchange
Traded Fund
China Others 0.64% 11,222,232.00 0 N/A 0
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Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
Construction
Bank
Corporation - E
Fund CSI 300
Trading Open
Index Initiated
Securities
Investment
Fund
National Social
Security Fund - Others 0.63% 10,983,604.00 0 N/A 0
Profile 110
China
Construction
Bank Co., Ltd.
- ICBC Credit
Others 0.57% 10,000,000.00 0 N/A 0
Suisse Frontier
Medical Equity
Investment
Fund
Particulars about top 10 shareholders without trading restrictions (excluding shares lent through conversions and locked-up shares
for senior managers)
Type of shares and quantity
Name of shareholder Number of shares without trading restrictions held
Type of shares Quantity
RMB-
China Grand Enterprises, Inc. 730,938,157.00 denominated 730,938,157.00
ordinary share
RMB-
Hangzhou Huadong Medicine
288,000,000.00 denominated 288,000,000.00
Group Co., Ltd.
ordinary share
RMB-
Hong Kong Securities Clearing
69,449,072.00 denominated 69,449,072.00
Company Ltd.
ordinary share
RMB-
China Securities Finance Co., Ltd. 22,186,818.00 denominated 22,186,818.00
ordinary share
Industrial and Commercial Bank
RMB-
of China Limited - Huatai-
17,257,945.00 denominated 17,257,945.00
PineBridge CSI 300 Exchange
ordinary share
Traded Fund
Industrial and Commercial Bank
RMB-
of China Limited - China-Europe
14,242,403.00 denominated 14,242,403.00
Healthcare Hybrid Securities
ordinary share
Investment Fund
China Construction Bank RMB-
Corporation - E Fund CSI 300 13,696,532.00 denominated 13,696,532.00
Healthcare Exchange Traded Fund ordinary share
China Construction Bank
RMB-
Corporation - E Fund CSI 300
11,222,232.00 denominated 11,222,232.00
Trading Open Index Initiated
ordinary share
Securities Investment Fund
RMB-
National Social Security Fund -
10,983,604.00 denominated 10,983,604.00
Profile 110
ordinary share
China Construction Bank Co., Ltd. RMB-
- ICBC Credit Suisse Frontier 10,000,000.00 denominated 10,000,000.00
Medical Equity Investment Fund ordinary share
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Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
Explanation on associated relationships or concerted The Company did not know whether there was any relationship among
actions among the above-mentioned shareholders the above shareholders, or whether they were parties acting in concert.
As of the end of the current reporting period, none of the top 10 common
Description of the participation in margin trading
shareholders of the Company held shares of the Company through
business of the top 10 shareholders (if any)
securities margin trading accounts.
Participation of shareholders with a shareholding ratio of over 5%, top 10 shareholders, and top 10 shareholders holding tradable
shares without trading restriction conditions in refinancing lending
Applicable □ N/A
Unit: Share
Participation of shareholders with a shareholding ratio of over 5%, top 10 shareholders, and top 10 shareholders holding tradable
shares without trading restriction conditions in refinancing lending
Shareholding in common Shareholding in common
Shares lent and not Shares lent and not
accounts and credit accounts and credit
returned at the beginning returned at the end of the
accounts at the beginning accounts at the end of the
Name of of the period period
of the period period
shareholder
(full name) Proportion Proportion Proportion Proportion
Total in total Total in total Total in total Total in total
number share number share number share number share
capital capital capital capital
China
Constructio
n Bank
Corporatio
n - E Fund 12,896,932. 13,696,532.
0.74% 328,500 0.02% 0.78% 0 0.00%
CSI 300 00 00
Healthcare
Exchange
Traded
Fund
China
Constructio
n Bank
Corporatio
n - E Fund
CSI 300 2,462,532.0 11,222,232.
0.14% 12,800 0.00% 0.64% 0 0.00%
Trading 0 00
Open Index
Initiated
Securities
Investment
Fund
Industrial
and
Commercia
l Bank of
China
Limited - 6,639,145.0 17,257,945.
0.38% 17,500 0.00% 0.98% 0 0.00%
Huatai- 0 00
PineBridge
CSI 300
Exchange
Traded
Fund
Change in the top 10 shareholders or the top 10 shareholders holding tradable shares without trading restrictions compared with the
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Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
end of the previous period due to shares lent/returned through conversions
□ Applicable N/A
(II) Total number of preferred shareholders of the Company and shareholdings of top 10 shareholders
□ Applicable N/A
III. Other Important Matters
Applicable □ N/A
(I) Overview of the Company’s overall operations during the reporting period
During the reporting period, the Company faced numerous uncertainties in the macro-
environment and profound changes and challenges within China's pharmaceutical industry. Despite
these, the Company earnestly implemented its annual operation plan, operated in a standardized and
stable manner, and proactively advanced various operation management tasks in line with its medium
and long-term development strategy, resulting in stable growth in overall performance.
From January to September 2024, the Company achieved the operating revenue of 31.478 billion
yuan, up 3.56% year on year, the net profit attributable to shareholders of listed companies of 2.562
billion yuan, up 17.05% year on year, and the net profit attributable to shareholders of listed
companies after deducting non-recurring gains/losses of 2.482 billion yuan, up 14.90% year on year.
From January to September 2024, after deducting the equity incentive expenses and the profits and
losses of participating and holding R&D institutions, the Company achieved the net profit attributable
to shareholders of listed companies after deducting non-recurring gains/losses of 2.739 billion yuan,
up 26.81% compared with the net profit attributable to shareholders of listed companies after
deducting non-recurring gains/losses in the same period in 2023.
In Q3 2024, the Company continued its favorable growth trend in the first half of the year. The
Company achieved the total operating revenue of 10.513 billion yuan, up 5.03% year on year. The
net profit attributable to shareholders of listed companies was 866 million yuan, up 14.71% year on
year. The net profit attributable to shareholders of listed companies after deducting non-recurring
gains/losses was 857 million yuan, up 16.93% year on year.
From January to September 2024, the Company’s pharmaceutical industry segment achieved the
operating revenue of 9.941 billion yuan (including CSO business), up 10.53% year on year, and the
net profit attributable to the parent company of 2.140 billion yuan, up 14.49% year on year. Among
them, in Q3 2024, the pharmaceutical industry segment achieved the operating revenue of 3.243
billion yuan (including CSO business), up 10.32% year on year, and the net profit attributable to the
parent company of 755 million yuan, up 20.44% year on year.
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Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
During the reporting period, the Company’s pharmaceutical business segment witnessed
continuous and stable growth as a whole. From January to September 2024, the segment achieved the
operating revenue of 20.571 billion yuan, up 1.38% year on year, and the net profit of 323 million
yuan, up 2.09% year on year.
During the reporting period, the Company’s aesthetic medicine segment witnessed stable growth
as a whole. From January to September 2024, the segment achieved the total operating revenue of
1.909 billion yuan (excluding internal offsetting factors), up 1.90% year on year. Sinclair, the
Company’s wholly-owned subsidiary and the global operating platform of its aesthetic medicine
business based in the UK, proactively expanded sales of its aesthetic medicine injection, fillers and
EBD products globally. During the reporting period, affected by sluggish global economic growth
and other factors, Sinclair achieved the operating revenue of about 776 million yuan from January to
September 2024, down 20.30% year on year. From January to September 2024, Sinclair (Shanghai),
the Company’s wholly-owned subsidiary for its aesthetic medicine business, achieved the operating
revenue of 909 million yuan, up 10.31% year on year, witnessing continuous improvement in
profitability and making important contribution to the continuous growth of the Company’s overall
performance. In the future, the Company will intensify its efforts to integrate global resources and
will continue to advance the registration, admission, global coverage in potential markets, and market
share expansion of its core products. Currently, the Company has comprehensively facilitated the
registration of its products in key overseas aesthetic medicine markets. Sinclair's entire injection
portfolio has been registered and launched in over ten core markets in the Middle East. Additionally,
more than half of the procedures for registering its EBD core products in the Middle East's key
markets have been completed. The registration of various core injectable products, such as Ellansé
S, MaiLi, and KIO015, is actively progressing in the U.S. With the gradual launch of its core product
lines in key overseas markets, the Company is expected to enhance its brand impact and core
competitiveness, thereby continuously fueling its growth in the international aesthetic medicine sector.
In the meantime, the Company will facilitate the launch of its high-end aesthetic medicine products
in the domestic market and continue to enrich its product portfolio to capitalize on the emerging
growth of Huadong Medicine’s aesthetic medicine business.
During the reporting period, the Company made active progress in the international market
expansion of its industrial microbiology segment, witnessing a favorable overall growth trend. From
January to September 2024, the segment achieved operating revenue of 443 million yuan, up 30.17%
year on year. With the continuous expansion of its overseas markets and a constant increase in the
number of clients, the industrial microbiology segment is expected to maintain rapid growth.
(II) R&D situation
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Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
1. Overall R&D situation
During the reporting period, being “Scientific Research-based and Patient-centered”, the
Company further devoted itself to the treatment in the fields of endocrinology, autoimmunity and
oncology, continuously increased the R&D input, kept enriching the layout of innovative medicine
R&D, enhanced the construction of innovative R&D ecology and technological platform, and actively
advanced the progress of clinical trials, with multiple major staged achievements made. From January
to September 2024, the Company’s R&D investment in the pharmaceutical industry (excluding equity
investment) was 1.607 billion yuan, up 0.60% year on year. Among them, direct R&D expenditure
was 1.149 billion yuan, up 12.41% year on year, which accounts for 11.69% of the operating revenue
of the pharmaceutical industry.
2. Innovative R&D lines
The Company placed the focus of its innovative R&D on three core fields of oncology,
endocrinology and autoimmunity. To date, there have been over 70 innovative product lines. As its
product lines are continuously enriched, the Company has constantly expanded its innovative
medicine field to the R&D of multiple types of medicines including small-molecule medicines,
polypeptides, ADCs, bispecific or multispecific antibody medicines, as well as the exploration
towards innovative therapies for diseases in the fields of endocrinology, autoimmunity and oncology.
3. Progress of R&D of innovative medicines, innovative medical apparatuses and
biosimilar medicines
Oncology
The Company endeavored to build the world’s leading platform for R&D of innovative cancer
medicines and established more than 30 innovative antineoplastic medicines covering targeted small-
molecule medicines, ADCs, antibodies, PROTAC, etc. through discovery, screening and verification
of new targets in preliminary R&D of medicines.
The marketing authorization application in China of ELAHERE (R&D code: IMGN853,
HDM2002), the world’s first-in-class Mirvetuximab Soravtansine Injection, introduced by the
Company, for platinum-resistant ovarian cancer, was accepted and is now under comprehensive
review. Passing the innovative policy approval of “Hong Kong & Macao Registered Medicine Access
to GBA Program” in August 2024, the product was launched in the Guangdong-Hong Kong-Macao
Greater Bay Area to benefit more patients.
The marketing authorization application of Mefatinib Tablet, the Company’s first-class new
medicine, for the first-line treatment of Locally Advanced or Metastatic Non-small Cell Lung Cancer
(NSCLC) patients with an exon L858R mutation in EGFR 21 was accepted in May 2024. The clinical
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Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
and pharmaceutical inspections were completed in September and October 2024, respectively, and
the application is now under review.
HDM2005, an ADC product independently developed by the Company and receptor tyrosine
kinase-like orphan receptor 1 (ROR1), is used for the treatment of advanced malignant neoplasm.
The Company completed the enrollment of the first subject in clinical trial in China in August 2024.
At present, the study is in the stage of third dose escalation.
The IND application in China of HPK-1 PROTAC (hematopoietic progenitor kinase1
proteolysis targeting chimera), the Company’s first self-developed small-molecule anti-tumor
medicine HDM2006, was approved in October 2024. The product is used for the treatment of
advanced solid tumors.
The IND application in China of HDM2027 (HDP-101), an innovative medicine introduced by
the Company, was approved in October 2024. The product is used for the treatment of clonal
hematological diseases with positive B cell maturation antigen (BCMA), such as recurrent/refractory
multiple myeloma.
The company's self-developed ADC products with innovative targets, HDM2020, HDM2012
and HDM2017, have completed PCC confirmation and entered the IND R&D stage. IND applications
in China and the U.S. are expected to be submitted in 2025.
Endocrinology
HDM1002, an oral small-molecule GLP-1 receptor stimulant developed independently by the
Company, completed the enrollment of all subjects for clinical trial for overweight or obesity phase
II indications. The top-line results are expected to be obtained in October 2024. The pre-III phase
communication is expected to be conducted in Q4 2024. In the meantime, the enrollment of the first
subject for clinical trial for diabetes mellitus phase II indication was completed.
Phase Ia and phase Ib clinical trials in China of the GLP-1/GIPR dual-target long-acting agonist
HDM1005 independently developed by the Company are smoothly progressing. It is anticipated that
the phase Ia clinical research report and the top-line results from phase Ib (Part I) will be available in
Q4 2024. Phase II clinical trial is expected to be initiated in early 2025.
DR10624, a multiple agonist targeting FGF21R/GCGR/GLP-1R developed by Zhejiang Doer
Biologics Co., Ltd., a holding subsidiary of the Company, is currently undergoing phase Ib/IIa clinical
trials for obesity with hypertriglyceridemia in New Zealand. The phase II clinical trial for severe
hypertriglyceridemia in China has been initiated, and the enrollment and dosing of the first subject
have been completed.
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Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
To date, Semaglutide Injection has completed the enrollment of all subjects in the phase III
clinical study for diabetes indication. It is expected that the main endpoint data will be obtained and
pre-BLA communication will be submitted in Q4 2024. IND application for Semaglutide Injection
for weight management has been approved by the end of September 2024.
Insulin Degludec Injection completed the enrollment of all subjects during phase III clinical
study. It is expected that main end-point data will be obtained in Q4 2024.
Insulin Degludec and Insulin Aspart Injection completed the enrollment of the first subject
during phase III clinical study in August 2024.
Autoimmunity
The Company has had over 10 varieties of biomedicines and small-molecule innovative products
in the field of autoimmunity.
Rilonacept for Injection (ARCALYST), a globally innovative product from Kiniksa in the U.S.,
is used for the treatment of Cryo-Pyrin-Associated Periodic Syndromes (CAPS) and recurrent
pericarditis (RP). The marketing authorization applications for both CAPS and RP are currently under
review.
The marketing authorization application in China of HDM3001 (QX001S), a biological similar
of Ustekinumab for plaque psoriasis developed by the Company in cooperation with Qyuns
Therapeutics, is under comprehensive review.
The innovative medicine HDM3016 (QX005N) in cooperation with Qyuns Therapeutics
completed enrollment of the first subject for phase III clinical study for two indications of prurigo
nodularis and atopic dermatitis in May 2024.
The products in cooperation with Arcutis of the U.S., Roflumilast Cream (0.3%) for plaque
psoriasis in patients aged 6 or above, Roflumilast Foam (0.3%) for seborrheic dermatitis in patients
aged 9 or above, and Roflumilast Cream (0.15%) for atopic dermatitis in adults and children aged 6
or above, have all been approved by the FDA. In September 2024, Arcutis announced that the FDA
has accepted their sNDA for Roflumilast Foam (0.3%) to treat scalp and body psoriasis in adults and
adolescents aged 12 or above. In addition, the IND applications for Roflumilast Cream for the
indications of atopic dermatitis and plaque psoriasis in China were approved in September 2024. The
enrollment of the first subject is expected to be completed in Q4 2024.
Innovative pharmaceutical devices
The Dynamic Monitoring System of Glomerular Filtration Rate and Relmapirazin Injection
jointly developed by the Company and MediBeacon, Inc. of the U.S. are both under registration
12
Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
review stage in China. Additionally, MediBeacon has submitted all documents regarding the
marketing authorization application of the MediBeacon Dynamic Monitoring System of Glomerular
Filtration Rate (including the dynamic monitoring system and Relmapirazin Injection) to the FDA by
means of rolling submission, which was formally accepted in July 2023 and is now under review. To
date, all clinical, pharmaceutical, and medical device production inspections have been completed.
4. Approval of generic medicines
S/N Type Project name Specification Time of Approval
2.5 mg/0.5 mL, 5
Fondaparinux Sodium mg/0.4 mL, 7.5 Approved by FDA of the U.S. in
1 Anticoagulant
Injection mg/0.6 mL, 10 August 2024
mg/0.8 mL
5. Progress of aesthetic medicine registration
(1) Progress of aesthetic medicine products in China
Product
S/N Type Purpose Latest Progress
Designation
Supplementary notice on opinions
received from the Center for Medical
MaiLi Extreme
1 Injections Facial filling Device Evaluation, NMPA in July 2024;
Hyaluronic acid
pre-review submitted in September;
currently under technical review
Enrollment of all subjects for clinical trial
MaiLi Precise completed in April 2024; all follow-ups
2 Injections Facial filling
Hyaluronic acid for main end-point expected to be
completed by the end of 2024
Clinical follow-ups of main end-point of
all subjects for clinical trial in China
3 Injections Ellansé-M Facial filling
completed in the middle of 2024; 18-
month safety follow-up in progress
Enrollment of the first subject for clinical
LanlumaV
4 Injections Facial filling trial in China completed in June 2024;
Poly-l-lactic Acid
national enrollment of subjects in progress
Expert seminar on clinical trial scheme
Facial skin
5 Injections KIO015 completed in October 2024; all pre-trial
improvement
work progressed orderly
Collaborative product with Chongqing
Yuyan. A clinical summary meeting held
on September 12 organized by 16 research
centers. The phase III clinical trial showed
Recombinant Treatment of
a high degree of consistency with the
6 Injections botulinum toxin type moderate to severe
completed phase I/II clinical results; its
A frown lines
effectiveness, safety and immunogenicity
have reached the established end-point of
clinical trials, and it is superior to the
control medicines.
Improvement of
skin wrinkles, hair
removal, benign
Energy based
7 V20 pigmented Approved in September 2024
devices
epidermis and skin
lesions, benign skin
vascular lesions
13
Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
and inflammatory
acne
Improvement of
body and facial
wrinkles, benign
skin lesions, benign
Energy based
8 V30 vascular lesions, To be submitted for registration
devices
benign pigmented
lesions,
inflammatory acne,
hair removal, etc.
cosmetic Facial skin
9 Préime DermaFacial Pre-launching work in preparation
devices management
(2) Progress of overseas registration of cosmetic medicine products
In the meantime, the Company has continued to plan and promote the overseas registration of
its aesthetic medicine products. The MaiLi series of products received approval in Singapore in June
2024, and a new product launch conference took place on July 30. KIO015, a dermal filler for
injection, is currently undergoing technical review for EU CE certification and is expected to receive
the certification in 2025. Currently, the Company has registered and launched all its injection products,
including regenerative materials (Ellansé and Lanluma), hyaluronic acid fillers (MaiLi and
Perfectha), and thread lifting products (Silhouette Soft and Silhouette Instalift), in over ten major
Middle Eastern markets. Additionally, the registrations of EBD core products like Cooltech, Elysion,
and the Primelase series are being actively promoted, with more than half of the registration
procedures completed in key markets. Ellansé S has been approved for clinical in the U.S. and
clinical trial enrollment are scheduled to begin in Q4 2024. In the meantime, the Company has started
the registration of the hyaluronic acid filler MaiLi in the U.S., and is actively preparing for the
registration and clinical trials of other injection products such as KIO015.
(III) BD cooperation as of the date of the Report
On July 12, 2024, the Company’s wholly-owned subsidiary Zhongmei Huadong signed the
Exclusive Product License Agreement with Suzhou Auzone Biological Technology Co., Ltd.
According to the agreement, Zhongmei Huadong obtained the exclusive license of the globally
innovative product TTYP01 Tablets (Edaravone Tablets) in Chinese mainland, Hong Kong, Macao
and Taiwan, including rights for development, registration, production and commercialization. Please
refer to the Announcement on Signing an Exclusive Permit Agreement for Products by a Wholly-
owned Subsidiary with Auzone (Announcement No.: 2024-060) disclosed by the Company on Cninfo
(http://www.cninfo.com.cn) for details.
14
Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
On July 19, 2024, the Company’s wholly-owned subsidiary Zhongmei Huadong signed the
Cooperative Development and Market Promotion Service Agreement on QX005N with its
shareholding company Qyuns Therapeutics Co., Ltd. Listed on the Stock Exchange of Hong Kong
with the stock code of 2509.HK. According to the agreement, Zhongmei Huadong obtained the
exclusive cooperative development rights, exclusive market promotion option and preferential
cooperation right to transfer the marketing authorization holder of QX005N of Qyuns Therapeutics
in Chinese mainland, Hong Kong SAR, Macao SAR and Taiwan, China. Please refer to the
Announcement on Signing a Cooperative Development and Market Promotion Service Agreement for
Products by a Wholly-owned Subsidiary (Announcement No.: 2024-061) disclosed by the Company
on Cninfo (http://www.cninfo.com.cn) for details.
On July 19, 2024, to further enhance the Company’s core competitiveness in the field of
traditional Chinese medicine and enrich its product lines of external preparations, the Company and
its wholly-owned subsidiary Huadong Medicine (Xi’an) Bohua Pharmaceutical Co., Ltd. signed the
Agreement on Acquiring the Equity of Guizhou HengBa Pharmaceutical Limited Liability Company
with Guizhou HengBa Pharmaceutical Limited Liability Company and its original shareholders.
According to the agreement, Bohua Pharmaceutical acquired 100% equity of HengBa Pharmaceutical.
The transaction base price was 528.47 million yuan and floating consideration would be paid as
agreed in the agreement. Please refer to the Announcement on Acquisition of 100% Equity of Guizhou
HengBa Pharmaceutical Limited Liability Company (Announcement No.: 2024-064) disclosed by
the Company on Cninfo (http://www.cninfo.com.cn) for details.
On August 2, 2024, the Company’s wholly-owned subsidiary Huadong Medicine (Hangzhou)
Co., Ltd. signed an Exclusive Commercialization Cooperation Agreement with Beijing Imunopharm
Technology Co., Ltd. According to the agreement, Huadong Medicine Hangzhou obtained the
exclusive commercialization rights of CD19-targeting autologous CAR-T candidate product IM19
chimeric antigen receptor T cell injection in Chinese mainland (“licensed area”). Please refer to the
Announcement on Signing an Exclusive Commercialization Cooperation Agreement for Products by
a Wholly-owned Subsidiary (Announcement No.: 2024-065) disclosed by the Company on Cninfo
(http://www.cninfo.com.cn) for details.
On August 14, 2024, the Company’s wholly-owned subsidiary Zhongmei Huadong signed an
15
Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
Exclusive Product License Agreement with IMBiologics Corp. (“IMB”) from the Republic of Korea.
According to the agreement, Zhongmei Huadong obtained the exclusive license of two globally
innovative autoimmune products of IMB-101 and IMB-102 in 37 Asian countries including China
(excluding Japan, Republic of Korea and North Korea), including development, registration,
production and commercialization rights. Please refer to the Announcement on Signing an Exclusive
License Agreement for Products by a Wholly-owned Subsidiary with IMBiologics (Announcement
No.: 2024-071) disclosed by the Company on Cninfo (http://www.cninfo.com.cn) for details.
On September 20, 2024, Huadong Medicine (Hangzhou) Co., Ltd., a wholly-owned subsidiary
of our company, reached an exclusive strategic cooperation with Huisheng Biopharmaceutical Co.,
Ltd. Huisheng is a non-wholly-owned subsidiary of Hainan Sihuan Pharmaceutical Co., Ltd. (Stock
Code: 00460.HK). The cooperation concerns the commercial rights and interests of their approved
innovative product, Huiyoujing (Ganagliflozin Proline Tablets), in the Chinese mainland. Huiyoujing
is an SGLT-2 inhibitor for the treatment of type 2 diabetes approved by Huisheng Pharma in China.
(IV) Receptions, including research, communication and interviews, undertaken during
the reporting period
Main content
of discussion Index of basic
Reception Reception Reception Type of Reception
and information of the
date address method visitor object
information research
provided
Please refer to the
Hua
Record of Investor
Chuang 2024 Interim
Relations Activities
Conference Securities, Performance
Institution on August 16, 2024
August 16, Room of Online CSC Exchange
and presented on the
2024 the meeting Financial, Meeting of
individual websites of
Company Citic Huadong
irm.cninfo.com.cn
Securities, Medicine
and cninfo.com.cn
etc.
for details.
IV. Quarterly Financial Statements
(I) Financial statements
1. Consolidated balance sheet
Prepared by: Huadong Medicine Co., Ltd.
September 30, 2024
Unit: yuan
Item Closing balance Opening balance
16
Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
Current assets:
Monetary funds 4,739,290,249.11 4,663,378,011.64
Deposit reservation for balance
Lendings to banks and other financial
institutions
Trading financial assets
Derivative financial assets 16,434,493.97
Notes receivable 6,812,089.97
Accounts receivable 9,959,874,617.50 7,455,250,690.83
Receivables financing 615,997,329.90 1,434,366,300.69
Prepayments 453,619,057.35 279,207,655.40
Premium receivable
Reinsurance accounts receivable
Reinsurance contract reserve
receivable
Other accounts receivable 526,012,334.37 291,135,104.33
Including: Interest receivable
Dividends receivable 223,608.84 2,623,608.84
Financial assets purchased for resale
Inventory 4,906,568,632.85 4,290,214,266.03
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 52,102,427.05 59,881,757.08
Total current assets 21,253,464,648.13 18,496,680,369.94
Non-current assets:
Loans and advances issued
Debt investments
Other debt investments
Long-term receivables
Long-term equity investment 1,504,680,048.89 1,535,907,809.85
Investment in other equity instruments 597,327,085.25 565,223,872.68
Other non-current financial assets
Investment real estate 12,056,372.93 12,746,181.87
Fixed assets 4,151,614,313.81 4,140,144,817.51
Works in progress 956,356,801.65 913,147,212.17
Productive biological assets
Oil and gas assets
Right-of-use assets 163,209,658.39 151,175,007.16
Intangible assets 2,548,279,294.67 2,333,787,357.62
Including: Data resources
Development expenses 1,220,784,671.74 992,532,091.86
Including: Data resources
Goodwill 2,909,064,173.67 2,598,696,062.31
Long-term unamortized expenses 21,569,252.06 20,053,854.34
Deferred income tax assets 232,727,968.46 187,808,574.44
Other non-current assets 1,924,119,435.95 1,561,458,605.23
Total non-current assets 16,241,789,077.47 15,012,681,447.04
Total assets 37,495,253,725.60 33,509,361,816.98
Current liabilities:
Short-term borrowings 1,833,368,155.46 822,380,292.37
Borrowings from the central bank
Borrowings from other banks and
other financial institutions
Trading financial liabilities
17
Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
Derivative financial liabilities
Notes payable 2,766,860,378.77 1,727,420,960.30
Accounts payable 4,856,894,594.16 4,374,832,979.95
Advance receipts 1,707,483.62 1,393,551.48
Contract liabilities 128,171,949.61 135,459,275.17
Expense for financial assets sold for
repurchase
Deposits from customers and
interbank
Receivings from vicariously traded
securities
Receivings from vicariously
underwriting securities
Employee compensation payable 208,737,763.77 359,148,474.25
Taxes and dues payable 536,518,574.86 489,385,055.57
Other accounts payable 3,606,014,657.41 2,518,621,382.87
Including: Interests payable
Dividends payable 143,024,219.60 143,024,219.60
Fees and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
378,428,427.31 359,342,623.38
year
Other current liabilities 16,262,707.17 14,621,494.85
Total current liabilities 14,332,964,692.14 10,802,606,090.19
Non-current liabilities:
Reinsurance contract reserves
Long-term borrowings 67,979,467.42 520,759,460.07
Bonds payable
Including: Preferred share
Perpetual bonds
Lease liabilities 88,779,151.93 56,695,158.59
Long-term accounts payable 24,144,309.00 107,251,248.59
Long-term employee compensation
payable
Estimated liabilities 37,294,797.00 37,184,074.06
Deferred income 147,307,332.45 171,056,435.34
Deferred income tax liabilities 180,093,287.69 184,373,974.04
Other non-current liabilities 46,192,650.00 47,170,650.00
Total non-current liabilities 591,790,995.49 1,124,491,000.69
Total liabilities 14,924,755,687.63 11,927,097,090.88
Owners’ equity:
Share capital 1,754,262,548.00 1,754,425,348.00
Other equity instruments
Including: Preferred share
Perpetual bonds
Capital reserve 2,487,606,390.48 2,446,313,774.82
Minus: Treasury stock 80,458,069.07 84,519,369.07
Other comprehensive income -22,665,647.88 -40,341,544.18
Special reserves
Surplus reserves 1,277,779,972.18 1,277,779,972.18
General risk reserves
Undistributed profit 16,624,852,605.71 15,693,951,574.91
Total owners' equity attributable to the
22,041,377,799.42 21,047,609,756.66
parent company
Minority interests 529,120,238.55 534,654,969.44
Total owners’ equity 22,570,498,037.97 21,582,264,726.10
18
Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
Total liabilities and owners’ equity 37,495,253,725.60 33,509,361,816.98
Legal Representative: Lv Liang Officer In Charge of Accounting: Lv Liang Head of Accounting Department: Qiu Renbo
2、Consolidated income statements from the beginning of the year to the end of the reporting period
Unit: yuan
Item Amount incurred in the current period Amount incurred in the previous period
I. Total operating revenue 31,477,654,750.50 30,394,530,509.51
Including: Operating revenue 31,477,654,750.50 30,394,530,509.51
Interest revenue
Premiums earned
Fees and commissions revenue
II. Total operating costs 28,288,811,654.13 27,539,505,233.90
Including: Operating costs 21,231,803,408.72 20,711,433,505.92
Interest expense
Fees and commissions
expenditures
Surrender value
Net payments for insurance
claims
Net provision for insurance
liabilities
Policy dividend expenditures
Reinsurance expenses
Taxes and surcharges 163,791,954.73 155,063,860.73
Selling expenses 4,727,512,478.83 4,662,350,509.65
Management expenses 1,179,023,165.24 1,105,836,120.39
R&D expenses 948,662,894.53 840,788,063.58
Financial expenses 38,017,752.08 64,033,173.63
Including: Interest expense 86,594,008.13 84,321,926.54
Interest revenue 80,012,995.89 61,683,137.57
Plus: Other incomes 168,982,096.89 70,617,560.34
Investment income (loss
-86,710,253.53 -168,842,873.72
expressed with “-”)
Including: Investment
-54,563,003.59 -145,314,249.10
income in associates and joint ventures
Income from
derecognition of financial assets
measured on the basis of amortization
costs
Exchange earnings (loss
expressed with “-”)
Net income of exposure hedge
(loss expressed with “－”)
Income from changes in fair
-6,616,639.87
value (loss expressed with “-”)
Credit impairment loss (loss
-57,939,915.17 -42,022,538.00
expressed with “-”)
Asset impairment loss (loss -3,175,583.57
19
Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
expressed with “-”)
Proceeds from disposal of assets
2,177,150.46 3,587,637.81
(loss expressed with “-”)
III. Operating profit (loss expressed with
3,215,352,175.02 2,708,572,838.60
“-”)
Plus: Non-operating incomes 7,442,671.20 3,536,981.13
Minus: Non-operating expenses 88,911,294.16 24,000,149.00
IV. Total profit (total loss expressed with
3,133,883,552.06 2,688,109,670.73
“-”)
Minus: Income tax expense 571,279,294.45 494,560,848.37
V. Net profit (net loss expressed with “-”) 2,562,604,257.61 2,193,548,822.36
(I) Classification by continuity of
operation
1. Net profits from continuing
2,562,604,257.61 2,193,548,822.36
operations (net loss expressed with “-”)
2. Net profit from discontinued
operations (net loss expressed with “-”)
(II) Classification by ownership
1. Net profit attributable to the
2,562,326,688.45 2,189,046,844.62
owners of the parent company
2. Minority interest income 277,569.16 4,501,977.74
VI. Net of tax of other comprehensive
17,675,896.30 -3,888,970.61
income
Net of tax of other comprehensive
income attributable to the owner of the 17,675,896.30 -3,888,970.61
parent company
(I) Other comprehensive income
that cannot be reclassified into the profits -6,582,969.35 -1,453,894.59
and losses
1. Change from re-measurement
of defined benefit plan
2. Other comprehensive income
that cannot be included in the profits and
losses under the equity method
3. Changes in fair value of
-6,582,969.35 -1,453,894.59
investment in other equity instruments
4. Changes in fair value by the
enterprise’s credit risks
5. Others
(II) Other comprehensive income
that can be reclassified into the profits 24,258,865.65 -2,435,076.02
and losses
1. Other comprehensive income
that can be transferred to the profit and
loss under the equity method
2. Changes in fair value of
investments in other debt investments
3. Financial assets reclassified
into other comprehensive income
4. Provision for credit impairment
of other debt investments
5. Cash flow hedging reserves 5,871,618.93
6. Converted difference in foreign
24,258,865.65 -8,306,694.95
currency financial statements
7. Others
Net of tax of other comprehensive
income attributable to minority
20
Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
shareholders
VII. Total Comprehensive Income 2,580,280,153.91 2,189,659,851.75
Total comprehensive income
attributable to the owner of the parent 2,580,002,584.75 2,185,157,874.01
company
Total comprehensive income
277,569.16 4,501,977.74
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 1.4644 1.2510
(II) Diluted earnings per share 1.4639 1.2503
If there is a business combination under common control in this period, the net profit of the combined party before the combination 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
3、Consolidated cash flow statements from the beginning of the year to the end of the reporting period
Unit:yuan
Item Amount incurred in the current period Amount incurred in the previous period
I. Cash flows from operating activities:
Cash received from selling goods and
33,334,628,825.63 32,682,451,836.29
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 savings and investment
funds of policyholders
Cash for interest, fees and
commissions
Net increase in borrowings from banks
and other financial institutions
Net increase in funds from repurchase
business
Net cash received from securities
trading agency
Refund of taxes and fees received 15,628,115.69 53,209,369.56
Other cash received related to business
566,037,648.66 594,342,751.13
activities
Subtotal of cash inflow from operating
33,916,294,589.98 33,330,003,956.98
activities
Cash paid for purchases of goods and
21,947,910,270.08 21,403,392,127.90
services
Net increase in customer loans and
advance payments
Net increase in deposits with the
central bank and interbank
21
Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
Cash for payment of the original
insurance contract
Net increase in lendings to banks and
other financial institutions
Cash for interest, handling fees and
commissions
Cash for payment of dividends on
policies
Cash paid to and for employees 3,446,050,305.28 2,731,357,413.23
Various taxes and fees paid 1,962,213,221.83 2,018,766,158.13
Payment of other cash related to
4,053,717,983.88 4,927,210,373.91
business activities
Subtotal of cash outflows from operating
31,409,891,781.07 31,080,726,073.17
activities
Net cash flow from operating activities 2,506,402,808.91 2,249,277,883.81
II. Cash flows arising from investment
activities:
Cash received from investment
1,000,000.00
recovery
Cash received from obtaining
45,200,000.00 76,500,000.00
investment income
Net cash recovered from disposal of
fixed assets, intangible assets and other 2,528,623.35 5,487,494.29
long-term assets
Net cash received from disposal of
subsidiaries and other business units
Other cash received related to
263,981,767.12 143,241,408.53
investment activities
Subtotal of cash inflows from investing
312,710,390.47 225,228,902.82
activities
Cash paid for the purchase and
construction of fixed assets, intangible 930,485,860.82 960,170,505.01
assets and other long-term assets
Cash paid for investment 152,360,852.87 71,474,250.00
Net increase in pledged loans
Net cash paid for acquisition of
348,814,981.61 137,922,688.09
subsidiaries and other business entities
Payments of other cash related to
485,504,341.65 3,582,952.58
investing activities
Subtotal of cash outflows from investing
1,917,166,036.95 1,173,150,395.68
activities
Net cash flows from investing activities -1,604,455,646.48 -947,921,492.86
III. Cash flows arising from financing
activities:
Cash received by absorbing
10,800,300.00
investment
Including: Cash received by
subsidiaries from minority shareholders'
investment
Cash received from obtaining loans 3,543,115,046.17 3,618,149,860.84
Other cash received related to
343,706,321.33 725,958,879.33
financing activities
Subtotal of cash inflows from financing
3,886,821,367.50 4,354,909,040.17
activities
Cash paid for debt repayment 2,930,078,520.91 4,202,280,794.93
22
Third Quarterly Report 2024 of Huadong Medicine Co., Ltd.
Cash paid to distribute dividends,
1,751,880,188.48 658,879,966.42
profits or pay interest
Including: Dividends and profits
paid by subsidiaries to minority 5,994,660.00 15,728,000.00
shareholders
Payment of other cash related to
366,279,261.77 712,063,268.70
financing activities
Subtotal of cash outflows from financing
5,048,237,971.16 5,573,224,030.05
activities
Net cash flow from financing activities -1,161,416,603.66 -1,218,314,989.88
IV. Impact of exchange rate changes on
21,363,561.91 -20,487,569.21
cash and cash equivalents
V. Net increase in cash and cash
-238,105,879.32 62,553,831.86
equivalents
Plus: Opening balance of cash and
4,208,160,010.91 3,416,910,702.33
cash equivalents
VI. Closing balance of cash and cash
3,970,054,131.59 3,479,464,534.19
equivalents
(II) Situation of relevant items of financial statements at the beginning of the current year
after the initial implementation of adjustment of the New Accounting Standards in 2024
□Applicable Not applicable
(III) Audit report
Has the Third Quarterly Report been audited?
□Yes No
The Third Quarterly Report of the Company has not been audited.
Board of Directors of Huadong Medicine Co., Ltd.
October 25, 2024
23
