The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Stock code: 000963 Stock abbreviation: Huadong Medicine Announcement No.: 2021-076
Huadong Medicine Co., Ltd.
The Third Quarterly Report 2021
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 report is authentic, accurate and complete and free of any false records,
misleading statements or material omissions, and shall undertake individual and joint legal
liabilities.
2.The Company’s legal representative and the officer in charge of accounting, and head of
accounting department (accounting supervisor) hereby declare and guarantee that the financial
statements in this quarter report are authentic, accurate and complete.
3.Has the third quarterly report been audited?
□ Yes √ No
This report is prepared both in Chinese and English. Should there be any discrepancy between the
Chinese and English versions, the Chinese version shall prevail.
I. Key financial data
(I) Key Accounting Data and Financial Indicators
Whether the Company needs to perform retroactive adjustment or restatement of previous accounting data
□ Yes √ No
Change from the
Change of the current From the beginning of the beginning of the year to
The current reporting the end of the reporting
reporting period over the year to the end of the
period period over the
same period last year reporting period
same period last year
Operating revenue (yuan) 8,748,039,460.66 -1.04% 25,927,477,363.27 1.67%
Net profit attributable to
shareholders of listed 595,038,254.49 -9.88% 1,895,384,579.34 -20.74%
companies (yuan)
Net profit attributable to
568,039,187.19 -9.00% 1,762,020,074.37 -13.24%
shareholders of listed
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
companies after
deducting non-recurring
gains/losses (yuan)
Net cash flow from
operating activities —— —— 2,105,916,826.72 10.73%
(yuan)
Basic earnings per share
0.3401 -9.88% 1.0832 -20.74%
(yuan/share)
Diluted earnings per
0.3401 -9.88% 1.0832 -20.74%
share (yuan/share)
Weighted average return
3.75% -1.00% 12.28% -5.41%
on equity (ROE)
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 (yuan) 27,687,711,922.81 24,201,348,154.75 14.41%
Owners’ equity
attributable to
16,250,585,502.88 14,619,821,308.60 11.15%
shareholders of
listed companies (yuan)
Share capital of the Company as of the trading day before disclosure:
Share capital of the Company as of the trading day before
1,749,809,548
disclosure (share)
Fully diluted earnings per share calculated on the basis of the latest Share capital
Dividends paid on preferred shares 0.00
Perpetual bond interest paid (yuan) 0.00
Fully diluted earnings per share calculated on the basis of the
1.0832
latest Share capital (yuan/share)
(II)Items and amounts of non-recurring gains/losses
√ Applicable □ N/A
Amount (from the
Amount of the current beginning of the year to
Item Note
reporting period the end of the reporting
period)
Gains/losses on disposal of non-current assets
(including the written-off part of the accrued assets -356,832.47 -466,951.55
impairment reserve)
Government grants included in current
gains/losses(excluding those closely related to normal
19,665,596.43 157,973,691.62
operating activities, in line with national policies and
measured according to unified national standards)
Receivables subject to separate impairment test and
5,388,185.00
reversal of reserve for impairment
Other non-operating income or expenditure 2,888,378.89 -2,028,188.08
Less: Amount affected by income tax -2,745,429.38 19,349,865.15
Amount affected by minority interest (after tax) -2,056,495.07 8,152,366.87
Total 26,999,067.30 133,364,504.97 --
Details of other gains/losses items satisfying the definition of non-recurring gains/losses:
□ Applicable √ N/A
No such case.
If the Company recognizes a non-recurring gain/loss listed in the “Interpretative Announcement No. 1 on Information Disclosure
Criteria for Public Companies – Non-Recurring Profit/Loss” as a recurring gain/loss, reasons should be specified.
□ Applicable √ N/A
No such case.
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
(III)Changes in key accounting data and financial indicators and their reasons
√ Applicable □ N/A
Unit: RMB yuan
Balance sheet item End of the period Beginning of the Change rate Notes on cause of changes
period
Accounts receivable 572,080,968.64 828,659,217.25 -30.96% Mainly due to banker’s acceptance discount in
financing the current period
Accounts receivable 8,147,812,875.63 6,137,675,568.82 32.75% Mainly due to income growth and capital
return fluctuation
Other receivables 299,688,469.54 87,269,489.82 243.41% Mainly due to the increase of equity transfer
accounts receivable and suspense accounts
receivable
Other current assets 38,039,156.52 85,654,691.58 -55.59% Mainly due to the decrease of input VAT to be
deducted at the end of the period
Other equity instruments 129,841,291.42 225,453,120.05 -42.41% Mainly due to the transfer of equity instrument
investment investment of Ningbo Donghai Bank and the
sale of some RAPT shares in the current
period
Goodwill 2,100,106,651.09 1,469,617,262.10 42.90% Mainly due to the acquisition of Doer
Biologics and High Tech in the current period
Notes payable 1,381,336,643.84 554,336,058.71 149.19% Mainly due to the increase of bill payment in
the current period
Contract liabilities 186,487,690.02 94,384,629.77 97.58% Mainly due to the increase of advance drug
payments in the current period
Non-current liabilities due 23,288,386.11 67,813,886.68 -65.66% Mainly due to the decrease of long-term
within one year payables and long-term borrowing due within
one year
Long-term payables 164,454,591.48 26,812,354.90 513.35% Mainly due to the increase in contingent and
deferred consideration resulting from the
acquisition of external companies by the
subsidiaries
Long term loan 287,439,900.00 151,611,367.86 89.59% Mainly due to the increase of subsidiaries’
long-term borrowing
Other comprehensive 91,912,418.43 -2,191,069.45 4294.87% Mainly due to the increase in the exchange
income differences from translation of foreign
currency statements
Income statement item Amount of the Amount of the Change rate Notes on cause of changes
current period previous period
Gains on assets disposal -149,966.61 304,146,257.99 -100.05% Mainly due to the income from asset disposal
of Sinclair in the previous period
Investment income -60,001,493.40 -20,950,134.64 -186.40% Mainly due to the increase of discount interest
and the decrease of net profit of joint ventures
in the current period
Cash flow statement item Amount of the Amount of the Change rate Notes on cause of changes
current period previous period
Net cash flows from -1,406,864,147.47 -920,040,870.59 -52.91% Mainly due to the increase of equity
investing activities investment in the current period
II. Shareholder information
(I) Total number of shareholders of common shares and number of shareholders of preferred shares with
voting rights restored, as well as information about top 10 shareholders
Unit: share
Total number of shareholders of Total number of shareholders
common shares at the end of the 195,693 of preferred shares whose 0
reporting period voting rights have been
restored at the end of the
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
reporting period (if any)
Information about top 10 shareholders
Number of shares Pledged, marked or frozen
Shareholding Number of shares
Name Nature held with sale
ratio held Status Number
restrictions
Domestic
China Grand
non-state-owned 41.77% 730,938,157 0 Pledged 238,450,000
Enterprises, Inc.
legal person
Hangzhou
Huadong State-owned legal
16.46% 288,000,000 0
Medicine Group person
Co., Ltd.
Hong Kong
Securities Overseas legal
1.75% 30,641,915 0
Clearing person
Company Ltd.
Domestic
China Securities
non-state-owned 1.27% 22,186,818 0
Finance Co., Ltd.
legal person
National Social
Security Fund Others 0.49% 8,500,086 0
Portfolio 503
Domestic natural
#Liu Li 0.34% 6,000,000 0
persons
Basic
Endowment
Others 0.27% 4,682,950 0
Insurance Fund
Portfolio 15041
Domestic natural
#Chen Shaoming 0.21% 3,744,388 0
persons
Norges Bank－ Overseas legal
0.16% 2,776,229 0
own funds person
China Merchants
Bank Co., Ltd.－
Xingquanheyuan
2-year Holding Others 0.15% 2,609,639 0
Mixed
Securities
Investment Fund
Shares held by the top 10 shareholders of Non- restricted shares
Type of shares
Name Number of shares held without sale restrictions
Type Number
RMB common
China Grand Enterprises, Inc. 730,938,157 730,938,157
shares
Hangzhou Huadong Medicine Group RMB common
288,000,000 288,000,000
Co., Ltd. shares
Hong Kong Securities Clearing RMB common
30,641,915 30,641,915
Company Ltd. shares
RMB common
China Securities Finance Co., Ltd. 22,186,818 22,186,818
shares
National Social Security Fund RMB common
8,500,086 8,500,086
Portfolio 503 shares
RMB common
#Liu Li 6,000,000 6,000,000
shares
Basic Endowment Insurance Fund RMB common
4,682,950 4,682,950
Portfolio 15041 shares
RMB common
#Chen Shaoming 3,744,388 3,744,388
shares
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
RMB common
Norges Bank－own funds 2,776,229 2,776,229
shares
China Merchants Bank Co., Ltd.－
Xingquanheyuan 2-year Holding RMB common
2,609,639 2,609,639
Mixed shares
Securities Investment Fund
Notes on relations and concerted
The Company does not know whether the shareholders mentioned above are related parties
actions among the shareholders
with each other or whether they are acting-in-concert parties with each other.
mentioned above
At the end of the current reporting period, Liu Li, the sixth shareholder of the Company, held
Notes on financing and securities
6,000,000 shares of the Company through financing and securities loan, Chen Shaoming, the
loan conducted by top 10
eighth shareholder of the Company, held 3,651,388 shares of the Company through financing
shareholders (if any)
and securities loan.
(II) Total number of shareholders of preferred shares and information about top 10 shareholders of
preferred shares
□ Applicable √ N/A
III. Other important matters
√ Applicable □ N/A
(I) Overview of operations
1. The Company’s operations during the reporting period
In the first three quarters of 2021, the Company deepened the transformation and innovation
work. The performance of business indicators in the reporting period decreased year-on-year, but
has been significantly improved compared with the first half of the year, and the overall operation
maintained a stable and positive trend. The core subsidiary Zhongmei Huadong actively overcame
the business and market pressure brought about by the reform of the domestic pharmaceutical
industry, accelerated the process of innovation and internationalization, and strengthened the
development of out-of-hospital and grass-roots markets. In the first three quarters of 2021, the
operating income reached RMB7.804 billion, down 11.4% year on year, and the net profit was
RMB1.72 billion, down 11.1% year on year. While the sales volume of main products was
increasing, the income from immunity and cardiovascular products co ntinued to increase rapidly.
The export of customized high-end bulk drugs (Contract Development and Manufacturing
Organization, CDMO) and e-commerce business continued to develop, reflecting the resilience and
growth potential of the Company’s pharmaceutical manufacturing business as a whole. In the third
quarter, Zhongmei Huadong was affected by product price reduction continuously, with the
operating income decreasing by 12.7% year on year but increasing by 2.0% quarter on quarter, and
the net profit decreasing by 5.2% year on year (compared with 14.6% year-on-year decline of the
first quarter of 2021 and 11.7% year-on-year decline of the second quarter of 2021, indicating the
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
trend of narrowing decline and stabilization) but increasing by 14.8% quarter on quarter, which has
laid a solid foundation for returning to growth in 2022. In the fourth quarter, the Company will
make every effort to manage the operation, strive to achieve growth in the quarter, and endeavor to
achieve the operating objectives of the whole year.
Ellansé, the core aesthetic medicine product of the Company, has been officially placed on
the Chinese mainland market at the end of August. It has been accurately positioned for high-end
regeneration market with its unique advantages of “immediate filling, lasting effect and being
metabolizable”. Currently, the number of contracted cooperative hospitals for the product exceeds
120, the number of trained and certified doctors exceeds 200, and its sales and promotion was ready.
Ellansé has received extensive attention and popularity from the market since its launch, with a
stack of orders from aesthetic medicine institutions and good feedback from customers. As of the
release date of this report, the Company has received advances of more than RMB100 million for
the product, and is expected to beat the annual sales target, and drive the Company’s domestic
aesthetic medicine business to achieve new growth in 2022 based on the head start this year. Facing
the strong demand in the domestic market, the Company requires Sinclair’s Dutch factory to give
priority to the supply in the domestic market, thus shortening the waiting time of customers. At the
same time, the Company will strictly select cooperative institutions and constantly increase the
training and certification of doctors to provide responsible and high-quality services to customers.
Moreover, to meet the demand growth of Ellansé in the global market, in addition to the factory in
Utrecht in the Netherlands, Sinclair built a new factory in Almere, Netherlands, to expand its
capacity. At present, the new factory is completed and put into use after passing the certification and
approval, so as to fully ensure the subsequent supply of Ellansé around the globe.
During the reporting period, the Company’s overseas aesthetic medicine business continued to
show rapid growth with the relaxation of pandemic containment measures in various countries. The
sales of Ellansé, the core product of Sinclair UK, MaiLi series product, a newly-launched
high-end hyaluronic acid filler in Europe, Lanluma , a collagen stimulant, and other products
continued to outperform the expectation. In the first three quarters of 2021, Sinclair’s operating
income (including acquired Spanish company High Tech) was GBP53.06 million (approximately
RMB473 million) with a year-on-year increase of 127.4%. Specifically, Sinclair’s own income
increased by 79.24%, and its annual income is expected to reach the highest level in history. Driven
by good sales in the end market, High Tech received sufficient orders during the year, which has
provided a strong guarantee for the rapid growth of annual income. In the first three quarters of
2021, affected by factors such as non-recurring expenses for the acquisition of High Tech’s equities,
Sinclair’s net profit in the overall consolidated statement still showed a loss, but its earnings before
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
interest, taxes, depreciation and amortization (i.e. EBITDA) was GBP5.06 million (consolidated
specifications), the highest EBITDA since the Company completed the buyout of Sinclair in 2018,
and also important evidence of the Company’s ability to run the aesthetic medicine business around
the globe.
Huadong Pharmaceutical Distribution Company has actively optimized the in-hospital market
and expanded the out-of-hospital market, and the overall business maintained a stable growth. In the
first three quarters of 2021, the Company’s pharmaceutical commerce segment achieved an
operating income of RMB17.268 billion with a year-on-year increase of 7.03%. The establishment
of product promotion teams has been accelerated, and the number of innovative drugs introduced to
sell by proxy during the year has exceeded that in 2020. The third-party logistics business of
pharmaceutical commerce continued with rapid growth, with the phased task of the distribution of
COVID-19 vaccines in Zhejiang Province being fully completed. The construction of Jinhua
logistics center entered the final stage. During the reporting period, the Company was also selected
as a key e-commerce platform enterprise in 2021-2022 in Zhejiang Province.
The main reason for the difference between year-on-year decrease in the Company’s net profit
and the net profit after deducting non-recurring profits and losses in the reporting period is that the
Company’s non-recurring profits and losses in the first quarter of 2020 were RMB290 million,
including a net income of GBP30.65 million from the transfer of regional product distribution rights
by Sinclair to Galderma, which greatly increased the Company’s overall income in the first quarter
of 2020. No such matters occurred during the reporting period, and other non-recurring gains and
losses totaled RMB133 million in the first three quarters of 2021, resulting in a decrease in the net
profit attributable to shareholders of the listed company year on year.
2. Building an R&D ecosystem of the Company and accelerating the process of
innovation and internationalization
During the reporting period, Zhongmei Huadong and Huadong Medicine Investment Holding
(Hong Kong) Co., Ltd. (hereinafter referred to as the “Investment Holding”), wholly-owned
subsidiaries of the Company, signed an equity investment agreement and exclusive product license
agreement with Ashvattha Therapeutic, Inc. (hereinafter referred to as “Ashvattha”). Investment
Holding will subscribe for Series B preferred shares issued by Ashvattha in stages. Meanwhile,
Zhongmei Huadong will obtain the exclusive license of Ashvattha’s 8 products under research in 20
Asian countries and regions such as China, Singapore and Malaysia, including the use of
Ashvattha’s relevant intellectual property rights for R&D, production and commercialization.
Ashvattha is an innovative biopharmaceutical enterprise focusing on the development of
hydroxyl dendrimer (HD) therapeutics (HDTs). Based on interdisciplinary transformation research
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
of dendrimers that can cross the tissue barrier, its scientific research team connects active
pharmaceutical ingredients (API) or imaging agent with HD to form new patented drugs, which can
achieve precise treatment by targeting disease cells and have clinical significance and application
prospect. Ashvattha applies the technology of nanomedicine and nano materials. Its unique HD
platform is the only hydroxyl dendrimer platform capable of producing highly selective drugs in the
world. Ashvattha has a reasonable patent portfolio and has the potential to develop a variety of
therapeutic drugs.
Ashvattha was founded by three scientists, namely, Dr. Kannan Rangaramanujam, the Arnall
Patz distinguished professor of ophthalmology and co-director of center for nanomedicine at the
Wilmer Eye Institute at Johns Hopkins School of Medicine, Dr. Sujatha Kannan, the Richard J.
Traystman Professor and Vice chair of research in Anesthesiology and Critical Care Medicine
(ACCM) at Johns Hopkins School of Medicine, and Dr. Jeffrey Cleland, who graduated from
Massachusetts Institute of Technology in chemical engineering, worked for Genentech and
committed to new drug research and development for more than ten years. The three founders have
made achievements in the field of medicine, published a large number of academic articles and
owned dozens of invention patents. In addition, Ashvattha also has a team of professional
consultants with rich research experience and professional experience.
The Company introduced eight products under research from Ashvattha, covering the fields of
tumor, metabolic comorbidity, inflammation, etc.. One of the products has entered phase II clinical
trial in the United States, and two products will be submitted for IND review in the United States in
the first quarter of 2022. This cooperation will further enrich the Company’s innovative product
pipeline in the fields of tumor, immunity and endocrinology, and help to improve the Company’s
internationalization and scientific research innovation level. In the future, the products will also
provide doctors and patients with more precise and scientific diagnosis and treatment and
medication options after launching.
The Company has invested, held shares in and incubated a number of domestic biotechnology
companies with leading technology. For example, it invested in Peg-Bio Biopharm featuring a
peptide technology platform, Qyuns Therapeutics, an antibody company focusing on immune
diseases, and Nuoling Biomedical Technology featuring ADC linker and coupling technology; it
incubated Huida Biotech which has a full line of toxin ingredients used to develop ADC drugs; and
it holds stakes in Doer Biologics which focuses on the development of a Polyclonal antibody
platform. Through those efforts, the Company has gradually formed its own medical R&D
ecosystem. The cooperation with Ashvattha and the introduction of its HD platform technology will
become an important part of the Company’s efforts to build an R&D ecosystem and accelerate its
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
process of innovation and internationalization.
3. Continuing to enrich product lines and enhancing the competitiveness of diabetes
me dicine
During the reporting period, the application for marketing authorization regarding the
indications for diabetes of the Company’s GLP-1 receptor agonist Liraglutide injection was
accepted in September 2021. In addition to the original research company, there is no domestic
manufacturer applying for its marketing authorization. Therefore, the Company is expected to
become the first enterprise in China to obtain approval for the marketing authorization of
Liraglutide’s biosimilar. Furthermore, the Company has carried out phase III clinical research on the
indication for weight loss of Liraglutide injection. At present, the enrollment has been completed
and a follow-up visit is underway. It is planned to carry out the application for marketing
authorization by the end of 2021.
In September 2021, the Company granted the exclusive development, production and
commercialization rights of the world’s first small-molecule oral GLP-1 receptor agonist TTP273 in
Korea to Daewon Pharmaceutical Co., Ltd. of South Korea, which is the Company’s first
license-out of innovative products (see the relevant announcement issued by the Company on
September 30, 2021).
In October, the Company entered into strategic cooperation with Takeda Pharmaceuticals
Company Ltd. (hereinafter referred to as “Takeda”) on the commercialization rights of globally
innovative DPP-4 inhibitor Nesina (Alogliptin Benzoate Tablets) in China, which has been
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
launched in China, further enriching the Company’s diabetes product portfolio, forming synergy
with the Company’s existing key products in the field of diabetes, and continuously consolidating
and enhancing the competitiveness and leading position of the Company in the field of diabetes
medicine in China. The alliance with Takeda also shows the industry’s affirmation of the
commercialization ability of the Company in the local market of diabetes medicine.
The company has been engaged in the field of diabetes medicine for nearly 20 years, has
established a product matrix of core therapeutic targets and mainstream clinical drugs, and already
has more than 20 commercialized products and products under research. The diabetes medicine
market will continue to be a core area for the Company to expand its layout in the future. The
Company will actively accelerate the process of innovation and industrialization through
independent research and development, cooperation, equity investment and other diversified modes,
continuously provide cutting-edge and advanced drugs in the world, continuously broaden the road
of internationalization and make progress towards the world’s leading diabetes medicine
manufacturing enterprise.
4. Building a non-invasive + minimally invasive high-end product pipeline to bring a new
growth mome ntum to the global aesthetic medicine business
During the reporting period, Sinclair cooperated with KiOmed in Belgium to obtain the
exclusive license of four globally innovative KiOmedine chitosan products under research and all
subsequent chitosan related aesthetic medicine products in the field of aesthetic medicine for skin in
other regions of the world except the United States, including the use of KiOmed related intellectual
property rights for R&D, production and commercialization. The cooperation is another important
strategic measure for global layout of the Company in the field of light aesthetic medicine, will
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
further enrich the Company’s innovative filler product pipeline of aesthetic medicine, and realize
the full coverage of products in the fields of hyaluronic acid, collagen stimulant, skin booster and so
on. KiOmedine is a high-purity natural (non-animal-sourced) medical chitosan derivative
developed by KiOmed using its unique patented technology. Compared with hyaluronic acid,
KiOmedine is characterized by deep moisturizing, increasing collagen level and anti -aging. In
addition, KiOmedine series fillers are expected to further prolong the action time of hyaluronic
acid and achieve long-acting filling effect. At present, there is no similar product in the market all
over the world. The future launch of the product is expected to change the product landscape of the
hyaluronic acid market and will become another potential blockbuster product in the field besides
high-end hyaluronic acid MaiLi .
The Company introduced a cold-touch cosmetic instrument from R2 Company, Glacial SpaTM
(F0, life cosmetology version of a frozen freckle-removing medical device), has obtained marketing
approval in Korea and Taiwan of China, and the Non-medical Devices Management Certification
from NMPA. It is expected to be officially marketed in China in the fourth quarter of 2021.
Cooperation intentions have been reached with some beauty institutions.
In addition, the Company has made launching plans in China for the main products on sale
overseas and innovative products under research of the wholly-owned subsidiary High Tech in
Spain engaged in energy source aesthetic medicine devices, and the relevant registration
preparations have been carried out orderly. In particular, the registration of cryolipolysis product
Cooltech Define and laser hair removal device Primelase in China will be officially launched before
the end of 2021. Safyre, an RF product marketed overseas and suitable for facial rejuvenation and
body shaping, is expected to be rolled out in China in the second quarter of 2022.
The Company will continue to accelerate the progress of clinical registration and promotion of
core aesthetic medicine products at home and abroad, and continuously improve the competitive
advantage in the industry by penetrating the global high-end aesthetic medicine market. After three
years of rapid development, the Company’s aesthetic medicine business has achieved phased
strategic objectives, and developed more than 20 products in the field of non-invasive + minimally
invasive aesthetic medicine, with the number and coverage among the front rank of the industry. Of
those products, several are expected to be released and sold at home and abroad before 2025,
bringing new growth momentum to the Company’s global aesthetic medicine business.
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
填充 肉毒素 埋线
3款KiOmedine
MaiLi系列 与Kylane公司合 皮肤动能素
Ellansé 伊妍仕 Lanluma
Perfectha 系列 填充剂 美容埋线
（天然<非动物源> Botulinum Toxin 1
（聚左旋乳酸类胶 新型高端含利多 作两款重点研发
注射用聚己内酯微球 原蛋白刺激剂） 双相透明质酸 羧烷基壳聚糖注射 （天然<非动物源> （A型肉毒素） SilhouetteInstalift
卡因透明质酸 产品 剂） 羧烷基壳聚糖和透
明质酸注射剂）
用于皮下层植入 适用于中面部提拉手术
抗衰 唇部、面部
以纠正中到重度 面部和身体填充剂 面部填充 面部填充 面部和身体填充剂 除皱 短暂固定并提拉
改善肤质 填充塑形
鼻唇沟皱纹 脸颊下真皮位置
中国已上市 全球 60 多个国家 研发阶段 美国 FDA 认证
研发阶段 研发阶段
全球 60 多个国家或 欧盟 CE 认证 欧盟 CE 认证 或地区获注册认 预计将于 2026 年 预计 2023 年获得 预计 2024 年后陆 全球 60 多个国家获地区
中国注册上市推进中
地区获注册认证 欧洲已上市 欧洲已上市 证或上市准入 续获得欧盟 CE 获注册认证或上市准入
获得欧盟CE 认证 欧盟 CE认证
或上市准入 欧盟 CE 认证 认证 预计 2024 年在中国上市
皮肤管理 身体塑形 脱毛
酷雪Glacial Spa
F1（Glacial Rx） F2（Glacial Ai） Cooltech Cooltech Define Crystile Define2.0 Define3.0 Titania Safyre Primelase Primelase Pro Elysion
（F0）
祛除皮肤的良性色素
面部年轻
性病变和低温缓解
皮肤美白提亮 全身美白 身体减脂塑形 身体减脂塑形 身体减脂塑形 紧肤塑形 紧肤塑形 紧肤塑形 化及身体 脱毛 脱毛 脱毛
疼痛、 肿胀、炎症
塑形
和血肿
美国、韩国获批上市 海外研发阶段 海外研发阶段 海外研发阶段 全球 11 个 海外研发阶段 全球 7 个
美国 FDA 510(k)认证 海外研发阶段 欧盟 CE 认证
中国台湾已递交上市 欧盟 CE 认证 预计 2023 年 预计 2024 年 预计 2022年 预计2022年 国家或地 预计 2023 年 国家或地
预计 2024 年 预计 2024 年在 澳洲 TGA 认证 海外已上市 区获 注册 区获注册
申请 2021 年四季度 欧洲已上市 获得欧盟 CE 获得欧盟 CE 获得欧盟 CE 中国上市 认证或上 获得欧盟 CE
在中国上市 美国上市 海外已上市 认证或上
登陆中国市场 认证 认证 认证 市准入 认证
市准入
Note 1: Due to the liquidation of Huadong Ningbo after its operations expire, there is still uncertainty about the subsequent ownership of the interests in the commercialization of
botulinum toxin products in China with Jetema of South Korea.
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
(II) Research and developme nt and registration
During the reporting period, the Company continued to accelerate the R&D work, with a total
R&D investment of RMB904 million in the pharmaceutical industry, a year-on-year increase of
8.9%. The clinical study and registration of products under research in the Company’s core areas is
advancing in an orderly manner.
As of the release of the report, the main R&D and registration progress of the Company’s
medicine business is as follows:
1. Diabetes
The application for marketing authorization regarding the indication for diabetes of GLP-1
receptor agonist Liraglutide injection was accepted in September 2021. The non-clinical study of
Insulin Aspart injection was completed, and it is expected that the application for IND review will
be submitted in the first quarter of 2022. HDM1003 (SCO-094) is a dual agonist that targets both
GLP-1R and GIPR for the treatment of diseases such as type 2 diabetes, obesity and non-alcoholic
steatohepatitis (NASH), jointly developed by the Company and SCOHIA PHARMA, Inc. in Japan.
Its Phase I clinical trial is being carried out in the United Kingdom, and the Pre-IND application in
China has been submitted. DR10624 is a multiple agonist under research by the holding subsidiary
Zhejiang Doer Biologics Corporation that targets GLP-1R/GCGR/FGF21, which can be used for
the treatment of diseases such as type 2 diabetes, obesity and NASH. The preparations of its phase I
clinical trial overseas and pre-IND application in China in 2022 are underway.
2. Tumor
HDM2002 (IMGN853), developed jointly by the Company and ImmunoGen of the United
States, is the world’s first ADC drug for FR α-positive ovarian cancer. Its phase III multi-regional
clinical trial has been initiated in China, and it is expected that clinical enrollment will be completed
in 2022. The clinical enrollment of another key single-arm clinical trial of the drug has been
completed in the United States and Europe in the second quarter, and preliminary test results are
expected to be obtained by the end of 2021. Mefatinib for the treatment of advanced non-small cell
lung cancer is under phase III clinical trial, and the enrollment of the subjects for the phase III
clinical trial has been completed. It is expected to carry out application for marketing authorization
after the completion of phase III clinical trial in 2022. DR30303 is a product under research of the
holding subsidiary Zhejiang Doer Biologics Corporation for the treatment of gastric cancer and
pancreatic cancer, and feedback has been received from CDE concerning its application for
pre-IND. Its phase I clinical trial will be launched in China in 2022 after IND approval.
3. Autoimmunity
The Company introduced HDM3002 (PRV-3279), a bispecific antibody under research of
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Provention Bio (USA) for the treatment of systemic lupus erythematosus (SLE) and for preventing
or reducing the immunogenicity of gene therapy. At present, pre-IND materials have been submitted
in China and feedback has been received. The phase II multi-regional clinical trial of this product
will be initiated in China. HDM3001 (QX001S) is a biosimilar of the original drug ustekinumab
(Stelara) jointly developed by the Company and its partially-owned company Qyuns Therapeutics
and used to treat moderate-to-severe psoriasis of adults. Its phase III clinical trial is underway.
4. Rare diseases
Sirolimus Oral Solution produced by the Company has been used clinically to treat a rare
pediatric disease tuberous sclerosis complex (TSC) for many years. In view of the urgent clinical
needs of children with TSC for approved effective treatment, the Company has submitted a pre-IND
application to CDE and plans to carry out a real-world study to support the expansion of the
indications.
5. Medicine/medical device
HD-NP-102 (MB102, dynamic TGFR monitoring system): A product jointly developed by the
Company and Medibeacon, Inc. of the United States for the evaluation of the renal function of
healthy people and patients through real-time percutaneous monitoring of glomerular filtration rate.
With its accurate diagnosis and risk assessment of early renal injury, the product is of
ground-breaking clinical significance. The Company has submitted an application for innovative
medical devices to the Center for Medical Device Evaluation of National Medical Products
Administration, and the phase III multi-regional clinical trial will be launched by the end of 2021.
(III) Other important matters
In August 2021, the natural person shareholders of the Company’s holding subsidiary Huadong
Ningbo Medicine Co., Ltd. (hereinafter referred to as “Huadong Ningbo”) filed a lawsuit to the
People’s Court of Beilun District of Ningbo for an order to dissolve Huadong Ningbo in advance on
the grounds that there were serious difficulties in the operation and management of Huadong
Ningbo and that the continuing operation of Huadong Ningbo would cause material losses to
shareholders. The Company claimed that Huadong Ningbo should enter the legal liquidation after
its operation expires on December 31, 2021, but did not agree to dissolve Huadong Ningbo in
advance. The case was heard in People’s Court of Beilun District of Ningbo on September 22, 2021,
and has not been sentenced yet. Afterward, the Company held meetings with natural person
shareholders and management representatives of Huadong Ningbo on relevant matters. The two
parties have reached a consensus that Huadong Ningbo has entered the liquidation preparation
period, will mainly carry out capital withdrawal before the end of 2021, and will not conduct new
business. The parties agree to speed up the preparations for the liquidation of Huadong Ningbo. To
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
be responsible to all shareholders and safeguard the interests of all shareholders, the Company will
properly carry out the subsequent liquidation of Huadong Ningbo according to law.
IV. Quarterly financial statements
(I) Financial Statements
1. Consolidated balance sheet
Prepared by Huadong Medicine Co., Ltd.
Unit: RMB yuan
Item September 31, 2021 December 31, 2020
Current assets:
Monetary funds 3,366,668,781.24 3,198,080,997.82
Settlement reserve
Lending to other banks and other
financial institutions
Financial assets for trade
Derivative financial assets
Notes receivable
Accounts receivable 8,147,812,875.63 6,137,675,568.82
Accounts receivable financing 572,080,968.64 828,659,217.25
Advance payments 291,583,511.06 250,916,482.07
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve
receivable
Other receivables 299,688,469.54 87,269,489.82
Including: Interests receivable 15,972,701.53
Dividends receivable 832,286.37 4,195,666.37
Financial assets purchased for
resale
Inventories 4,129,417,606.73 4,067,635,254.80
Contract assets
Assets held for sale
Non-current assets due within one
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
year
Other current assets 38,039,156.52 85,654,691.58
Total current assets 16,845,291,369.36 14,655,891,702.16
Non-current assets:
Loans and prepayments issuance
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 950,889,474.55 850,072,053.02
Other equity instrument
129,841,291.42 225,453,120.05
investments
Other non-current financial assets
Real estate properties for
17,082,267.95 17,792,735.95
investment
Fixed assets 3,106,575,021.33 2,420,366,582.92
Constructions in progress 1,864,058,365.39 2,240,201,926.65
Biological assets for production
Oil & gas assets
Right-of-use assets 161,568,723.35
Intangible assets 1,707,792,705.74 1,463,242,463.99
Development expenditures
Goodwill 2,100,106,651.09 1,469,617,262.10
Long-term unamortized expenses 10,511,051.56 8,811,339.43
Deferred income tax assets 151,508,607.37 137,829,774.40
Other non-current assets 642,486,393.70 712,069,194.08
Total non-current assets 10,842,420,553.45 9,545,456,452.59
Total assets 27,687,711,922.81 24,201,348,154.75
Current liabilities:
Short-term borrowing 1,280,558,172.04 1,416,932,884.87
Borrowing from the Central bank
Borrowing from other banks and
other financial institutions
Financial liabilities for trade
Derivative financial liabilities
Notes payable 1,381,336,643.84 554,336,058.71
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Accounts payable 4,292,982,588.65 3,947,044,331.68
Advance receipts 1,906,357.52 951,926.56
Contract liabilities 186,487,690.02 94,384,629.77
Financial assets sold for
repurchase
Absorbing deposits and due from
banks
Receipts for buying and selling
securities as proxy
Receipts for underwriting
securities as proxy
Employee benefits payable 160,461,686.62 152,106,819.91
Taxes and fees payable 565,343,178.21 571,792,475.80
Other payables 2,084,232,842.01 1,817,529,820.99
Including: Interests payable
Dividends payable 224,219.60 224,219.60
Handling fees and commissions
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within
23,288,386.11 67,813,886.68
one year
Other current liabilities 30,059,800.64 10,786,034.37
Total current liabilities 10,006,657,345.66 8,633,678,869.34
Non-current liabilities:
Insurance contract reserve
Long-term borrowing 287,439,900.00 151,611,367.86
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 148,719,237.87
Long-term payables 164,454,591.48 26,812,354.90
Long-term employee benefits
payable
Provision 37,410,969.95 39,467,829.23
Deferred gains 83,907,277.33 81,628,032.54
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Deferred income tax liabilities 83,108,397.29 88,738,187.41
Other non-current liabilities
Total non-current liabilities 805,040,373.92 388,257,771.94
Total liabilities 10,811,697,719.58 9,021,936,641.28
Ownership interest:
Share capital 1,749,809,548.00 1,749,809,548.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 2,158,080,661.07 2,158,080,661.07
Less: Treasury shares
Other comprehensive income 91,912,418.43 -2,191,069.45
Special reserve
Surplus reserve 863,793,516.20 861,680,578.42
General risk reserve
Undistributed profit 11,386,989,359.18 9,852,441,590.56
Total ownership interest attributable to
16,250,585,502.88 14,619,821,308.60
the parent company
Minority interest 625,428,700.35 559,590,204.87
Total ownership interest 16,876,014,203.23 15,179,411,513.47
Total liabilities & ownership interest 27,687,711,922.81 24,201,348,154.75
Legal representative: Lv Liang
Officer in charge of accounting: Lv Liang
Head of accounting department : Qiu Renbo
2. Consolidated income statement from the beginning of the year to the end of the reporting period
Unit: RMB yuan
Item Amount incurred during the current period Amount incurred during the previous period
I. Total operating income 25,927,477,363.27 25,500,876,607.95
Including: Operating income 25,927,477,363.27 25,500,876,607.95
Interests received
Premiums earned
Handling fees and
commissions received
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
II. Total operating cost 23,721,020,429.04 22,945,770,445.69
Including: Operating cost 17,820,264,592.12 16,739,900,305.18
Interests paid
Handling fees and
commissions paid
Surrender value
Net payment of insurance
claims
Net appropriation of policy
reserve
Policy dividends paid
Reinsurance expenses
Taxes and surcharges 132,071,642.16 148,487,687.03
Selling expenses 4,165,255,628.17 4,575,928,264.87
Administrative expenses 859,932,896.49 775,033,097.55
R&D expenses 727,596,640.52 689,897,925.27
Financial expenses 15,899,029.58 16,523,165.79
Including: Interests paid 59,960,711.55 59,381,737.63
Interests received 64,850,873.74 52,891,384.64
Add: Other gains 157,965,604.53 123,759,645.82
Investment gains (Losses are
-60,001,493.40 -20,950,134.64
indicated by “-”)
Including: Investment gains
-18,970,341.98 -9,025,650.76
from associates and joint ventures
Gains from the
derecognition of financial assets
measured at amortized cost
Gains on exchange (Losses are
indicated by “-”)
Gains on net exposure hedging
(Losses are indicated by “-”)
Gains on changes in fair value
(Losses are indicated by “-”)
Credit impairment loss (Losses
-38,263,673.24 -29,841,283.63
are indicated by “-”)
Assets impairment loss (Losses
3,054,806.20
are indicated by “-”)
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Gains on assets disposal
-149,966.61 304,146,257.99
(Losses are indicated by “-”)
III. Operating profit (Losses are indicated
2,269,062,211.71 2,932,220,647.80
by “-”)
Add: Non-operating income 17,439,095.86 16,504,085.99
Less: Non-operating expenditure 19,888,568.89 26,367,259.87
IV. Total profit (Total losses are
2,266,612,738.68 2,922,357,473.92
indicated by “-”)
Less: Income tax expenses 324,435,752.43 462,041,510.71
V. Net profit (Net losses are indicated by
1,942,176,986.25 2,460,315,963.21
“-”)
(I) Categorized by the continuity of
operations
1. Net profit from continued
operations (Net deficit is indicated by 1,942,176,986.25 2,460,315,963.21
“-”)
2. Net profit from discontinued
operations (Net deficit is indicated by
“-”)
(II) Categorized by attribution of the
ownership
1. Net profit attributable to owners
1,895,384,579.34 2,391,466,604.78
of the parent company
2. Gains/losses of minority
46,792,406.91 68,849,358.43
shareholders
VI. Net amount after tax of other
115,596,732.48 21,024,507.92
comprehensive income
Net amount after tax of other
comprehensive income attributable to 115,596,732.48 21,024,507.92
owners of the parent company
(I) Other comprehensive income that
18,270,393.86 5,817,290.26
cannot be reclassified into gains/losses
1. Changes in
remeasurement on the defined benefit
plan
2. Other comprehensive
income that cannot be reclassified into
gains/losses under equity method
3. Changes in fair value of 18,270,393.86 5,817,290.26
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
other equity instrument investments
4. Changes in fair value of
credit risk of the enterprise
5. Others
(II) Other comprehensive income to
97,326,338.62 15,207,217.66
be reclassified into gains/losses
1. Other comprehensive
income that can be reclassified into
gains/losses under equity method
2. Changes in fair value of
other debt investments
3. Amount of financial assets
reclassified into other comprehensive
income
4. Credit impairment reserve
of other debt investments
5. Cash flow hedging reserve
6. Exchange differences arise
from translation of foreign currency 97,326,338.62 15,207,217.66
financial statements
7. Others
Net amount after tax of other
comprehensive income attributable to
minority shareholders
VII. Total comprehensive income 2,057,773,718.73 2,481,340,471.13
Total comprehensive income
attributable to owners of the parent 2,010,981,311.82 2,412,491,112.70
company
Total comprehensive income
46,792,406.91 68,849,358.43
attributable to minority shareholders
VIII. Earnings per share (EPS):
(I) Basic EPS 1.0832 1.3667
(II) Diluted EPS 1.0832 1.3667
As for enterprise merger under the same control in the current period, the net profit generated by the merged party before the merger
is 0 yuan, and that generated during the previous period is 0 yuan.
Legal representative : Lv Liang
Officer in charge of accounting: Lv Liang
Head of accounting department : Qiu Renbo
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
3. Consolidated cash flow statement from the beginning of the year to the end of the reporting period
Unit: RMB yuan
Item Amount incurred during the current period Amount incurred during the previous period
I. Cash flows from operating activities:
Cash from the sale of goods and
27,674,577,148.04 26,358,487,943.05
provision of services
Net increase in customer deposits
and due from banks
Net increase in borrowing from the
central bank
Net increase in borrowing from
other financial institutions
Cash from the premium of the
original insurance policy
Net cash from reinsurance
Net increase in deposits and
investment of the insured
Cash from interests, handling fees
and commissions
Net increase in borrowing from
other banks and other financial
institutions
Net increase in funds for
repurchase
Net cash received for buying and
selling securities as proxy
Tax refund received 11,649,988.97 17,066,804.84
Other cash receipts in relation to
529,610,507.12 862,918,296.18
operating activities
Total cash inflows from operating
28,215,837,644.13 27,238,473,044.07
activities
Cash payments for goods and
18,596,693,102.88 17,276,216,270.79
services
Net increase in customer loans and
prepayments
Net increase in deposits of central
bank and due from banks
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Cash for payment of original
insurance claims
Net increase in lending to other
banks and other financial institutions
Cash for payment of interests,
handling fees and commissions
Cash for payment of policy
dividends
Cash payments to and for
1,822,563,793.72 1,623,091,615.04
employees
Payment of taxes and fees 1,531,826,498.86 1,795,768,635.77
Other cash payments in relation to
4,158,837,421.95 4,641,582,165.81
operating activities
Total cash outflows for operating
26,109,920,817.41 25,336,658,687.41
activities
Net cash flows from operating activities 2,105,916,826.72 1,901,814,356.66
II. Cash flows from investing activities
Cash from recovery of investments 20,432,161.82
Cash from investment gains 4,281,616.50 900,000.00
Net cash from disposal of fixed
assets, intangible assets and other 2,009,441.20 349,442,817.74
long-term assets
Net cash from disposal of
subsidiaries and other business units
Other cash receipts in relation to
29,602,856.85
investing activities
Total cash inflows from investing
56,326,076.37 350,342,817.74
activities
Cash payments for purchase and
construction of fixed assets, intangible 539,567,188.77 864,848,688.33
assets and other long-term assets
Cash payments for investment 120,706,000.00 70,535,000.00
Net increase in pledge loans
Net cash paid for acquisition of
776,789,194.67 335,000,000.00
subsidiaries and other business units
Other cash payments in relation to
26,127,840.40
investing activities
Total cash outflows for investing 1,463,190,223.84 1,270,383,688.33
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
activities
Net cash flows from investing activities -1,406,864,147.47 -920,040,870.59
III. Cash flows from financing
activities:
Cash from absorbing investments
Including: Cash from absorption of
minority shareholders’ investments by
subsidiaries
Cash from borrowing 1,854,078,657.43 2,044,165,545.94
Other cash receipts in relation to
360,000,000.00 340,000,000.00
financing activities
Total cash inflows from financing
2,214,078,657.43 2,384,165,545.94
activities
Cash for repayment of debt 1,874,703,029.58 2,161,566,863.78
Cash payments for dividends,
499,317,003.89 612,515,321.94
profits or interests
Including: Payment of dividends
and profits by subsidiaries to minority 49,000,000.00
shareholders
Other cash payments in relation to
365,675,774.15 357,318,045.74
financing activities
Total cash outflows for financing
2,739,695,807.62 3,131,400,231.46
activities
Net cash flows from financing activities -525,617,150.19 -747,234,685.52
IV. Influence of exchange rate
fluctuations on cash and cash -1,383,998.81 4,496,816.65
equivalents
V. Net increase in cash and cash
172,051,530.25 239,035,617.20
equivalents
Add: Balance of cash and cash
equivalents at the beginning of the 3,157,407,073.26 2,231,771,546.50
period
VI. Balance of cash and cash
3,329,458,603.51 2,470,807,163.70
equivalents at the end of the period
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
(II) Notes on adjustments of financial statements
1、Adjustments to financial statement items at the beginning of the year of the first implementation of the new
accounting standards governing leases which have been implemented since 2021
√ Applicable N/A
Whether any balance sheet items at the beginning of the year requires adjustment
√Yes □ No
Consolidated balance sheet
Unit: RMB yuan
Item December 31, 2020 January 1, 2021 Adjustment
Current assets:
Cahs and bank balances 3,198,080,997.82 3,198,080,997.82
Settlement reserve
Lending to other banks and other financial
institutions
Financial assets for trade
Derivative financial assets
Notes receivable
Accounts receivable 6,137,675,568.82 6,137,675,568.82
Accounts receivable for financing 828,659,217.25 828,659,217.25
Prepayments 250,916,482.07 238,357,844.74 -12,558,637.33
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve receivable
Other receivables 87,269,489.82 87,269,489.82
Including: Interests receivable
Dividends receivable 4,195,666.37 4,195,666.37
Financial assets purchased for resale
Inventories 4,067,635,254.80 4,067,635,254.80
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 85,654,691.58 85,654,691.58
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Total current assets 14,655,891,702.16 14,643,333,064.83 -12,558,637.33
Non-current assets:
Loans and prepayments issuance
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 850,072,053.02 850,072,053.02
Other equity instrument investments 225,453,120.05 225,453,120.05
Other non-current financial assets
Real estate properties for investment 17,792,735.95 17,792,735.95
Fixed assets 2,420,366,582.92 2,420,366,582.92
Constructions in progress 2,240,201,926.65 2,240,201,926.65
Biological assets for production
Oil & gas assets
Right-of-use assets 140,149,561.51 140,149,561.51
Intangible assets 1,463,242,463.99 1,463,242,463.99
Development expenditures 1,469,617,262.10
Goodwill 1,469,617,262.10
Long-term unamortized expenses 8,811,339.43 8,811,339.43
Deferred tax assets 137,829,774.40 137,829,774.40
Other non-current assets 712,069,194.08 712,069,194.08
Total non-current assets 9,545,456,452.59 9,685,606,014.10 140,149,561.51
Total assets 24,201,348,154.75 24,328,939,078.93 127,590,924.18
Current liabilities:
Short-term borrowing 1,416,932,884.87 1,416,932,884.87
Borrowing from the central bank
Borrowing from other banks and other
financial institutions
Financial liabilities for trade
Derivative financial liabilities
Notes payable 554,336,058.71 554,336,058.71
Accounts payable 3,947,044,331.68 3,947,044,331.68
Receipts in Advance 951,926.56 951,926.56
Contract liabilities 94,384,629.77 94,384,629.77
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Financial assets sold for repurchase
Absorbing deposits and due from banks
Receipts for buying and selling securities as
proxy
Receipts for underwriting securities as proxy
Payroll payable 152,106,819.91 152,106,819.91
Taxes payable 571,792,475.80 571,792,475.80
Other payables 1,817,529,820.99 1,817,529,820.99
Including: Interests payable
Dividends payable 224,219.60 224,219.60
Handling fees and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 67,813,886.68 67,813,886.68
Other current liabilities 10,786,034.37 10,786,034.37
Total current liabilities 8,633,678,869.34 8,633,678,869.34
Non-current liabilities:
Insurance policy reserve
Long-term borrowing 151,611,367.86 151,611,367.86
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 127,590,924.18 127,590,924.18
Long-term payables 26,812,354.90 26,812,354.90
Long-term employee benefits payable
Estimated liabilities 39,467,829.23 39,467,829.23
Deferred income 81,628,032.54 81,628,032.54
Deferred tax liabilities 88,738,187.41 88,738,187.41
Other non-current liabilities
Total non-current liabilities 388,257,771.94 515,848,696.12 127,590,924.18
Total liabilities 9,021,936,641.28 9,149,527,565.46 127,590,924.18
Owners’ Equity:
Share capital 1,749,809,548.00 1,749,809,548.00
Other equity instruments
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The Third Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Including: Preferred shares
Perpetual bonds
Capital reserves 2,158,080,661.07 2,158,080,661.07
Less: Treasury shares
Other comprehensive income -2,191,069.45 -2,191,069.45
Special reserve
Surplus reserves 861,680,578.42 861,680,578.42
General risk reserve
Retained earnings 9,852,441,590.56 9,852,441,590.56
Total owners’ equity attributable to owner of
14,619,821,308.60 14,619,821,308.60
the Company
Minority interest 559,590,204.87 14,619,821,308.60
Total owners’ equity 15,179,411,513.47 15,179,411,513.47
Total liabilities & owners’ equity 24,201,348,154.75 24,328,939,078.93 127,590,924.18
Adjustment description
2、Retrospective adjustments to comparative data of the previous period due to the first implementation of the new
accounting standards leases since 2021
□ Applicable √ N/A
(III)Audit report
Has the third quarterly report been audited?
□ Yes √ No
The third quarterly report has not been audited.
The Board of Directors of Huadong Medicine Co., Ltd.
October 27, 2021
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