2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Huadong Medicine Co., Ltd.
Semi-Annual Report 2024
August 16, 2024
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Section I. Important Declaration, Contents and Definitions
The Board of Directors, Board of Supervisors, directors, supervisors and
senior managers of Huadong Medicine Co., Ltd. (hereinafter referred to as the
“Company”) hereby guarantee that the information presented in this semi-annual
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.
Lv Liang, the Company’s legal representative and the officer in charge of
accounting, and Qiu Renbo, head of accounting department (accounting
supervisor) hereby declare and guarantee that the financial statements in this
semi-annual report are authentic, accurate and complete.
All directors have attended the Board of Directors meeting to review this
semi-annual report.
The future plans, development strategies and other forward-looking
statements in this semi-annual report shall not be considered as substantial
commitment of the Company to investors. Investors and related parties should be
fully aware of the risks, and understand the differences between plans, forecasts
and commitments.
The risks the Company faces in operation include industry policy and
product price reduction risk, new drug R&D risk, investment and M&A risk and
exchange rate fluctuation risk. For details, please refer to “X. Risks and
Countermeasures” in “Section III. Management’s Discussion and Analysis”.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Therefore, investors are kindly reminded to pay attention to possible investment
risks.
The dividend distribution scheme approved at the meeting of the Board of
Directors is as follows: On the basis of 1,754,262,548 shares that are obtained after
removing 65,000 restricted shares that have not been repurchased and canceled
from the total share capital of 1,754,327,548 shares of the Company, 3.50 yuan
(before tax) of cash dividends per ten common shares will be distributed to all
shareholders; a total of 0 bonus share (before tax) will be issued; and no capital
reserve will be converted to increase the capital stock.
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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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Contents
Section I. Important Declaration, Contents and Definitions ............................................................................... 2
Section II. Company Profile and Key Financial Indicators ................................................................................. 9
Section III. Management's Discussion and Analysis........................................................................................... 12
Section IV. Corporate Governance....................................................................................................................... 63
Section V. Environmental and Social Responsibilities ........................................................................................ 70
Section VI. Important Matters ............................................................................................................................. 89
Section VII. Share Change and Shareholders ................................................................................................... 122
Section VIII. Information on Preferred Shares ................................................................................................ 135
Section IX. Information on Bonds ...................................................................................................................... 136
Section X. Financial Report ................................................................................................................................ 137
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Contents of Reference File
(I) Financial statements signed and stamped by the legal representative, the person in charge of accounting work and the head of
accounting institution (accounting manager).
(II) The original of all Company’s documents publicly disclosed in the press designated by CSRC during the reporting period and
the original of announcements.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Definitions
Term refers to Definition
CSRC refers to China Securities Regulatory Commission
SSE refers to Shenzhen Stock Exchange
Huadong Medicine/the Company/our Company refers to Huadong Medicine Co., Ltd.
CGE refers to China Grand Enterprises, Inc.
Huadong Medicine Group refers to Hangzhou Huadong Medicine Group Co., Ltd.
Zhongmei Huadong refers to Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd.
Hangzhou Zhongmei Huadong Pharmaceutical
Jiangdong Company refers to
Jiangdong Co., Ltd.
Jiangsu Joyang refers to Joyang Laboratories
Huadong Medicine (Xi’an) Bohua Pharmaceutical Co.,
Xi’an Bohua/ Bohua Pharmaceutical refers to
Ltd.
Jiuyuan Gene refers to Hangzhou Jiuyuan Gene Engineering Co., Ltd.
Doer Biologics refers to Zhejiang Doer Biologics Co., Ltd.
Huadong Ningbo refers to Huadong Ningbo Medicine Co., Ltd.
Chongqing Peg-Bio refers to Chongqing Peg-Bio Biopharm Co., Ltd.
Qyuns Therapeutics refers to Qyuns Therapeutics Co., Ltd.
Nuoling Bio refers to Nuoling Biomedical Technology (Beijing) Co., Ltd.
Shanghai Grand Industrial and Financial Investment
Grand Chanrong refers to
Management Co., Ltd.
Grand Huachuang refers to Beijing Grand Huachuang Investment Co., Ltd.
Hangzhou Heda refers to Hangzhou Heda Industrial Fund Investment Co., Ltd.
Hangzhou Fuguang Hongxin Equity Investment
Fuguang Hongxin refers to
Partnership (Limited Partnership)
Meihua Hi-Tech/ Anhui Meihua refers to Anhui Meihua Hi-Tech Pharmaceutical Co., Ltd.
Wuhu Huaren refers to Wuhu Huaren Science and Technology Co., Ltd.
Magic Health refers to Hubei Magic Health Technology Co., Ltd.
CARsgen Therapeutics refers to CARsgen Therapeutics Holdings Limited
Jiangsu Nanjing Nongda Animal Pharmaceutical Co.,
Nanjing Nongda Animal Pharmaceutical refers to
Ltd.
Hibe refers to Hibe Technology Co., Ltd.
Chongqing Yuyan refers to Chongqing Yuyan Pharmaceutical Co., Ltd.
IMPACT Therapeutics refers to Nanjing IMPACT Therapeutics Co., Ltd.
Imunopharm refers to Beijing Imunopharm Technology Co., Ltd.
Huadong Medicine Hangzhou refers to Huadong Medicine (Hangzhou) Co., Ltd.
Guizhou HengBa Pharmaceutical Limited Liability
HengBa Pharmaceutical refers to
Company
Auzone refers to Suzhou Auzone Biological Technology Co., Ltd.
Huadong Medicine Investment Holding (Hong Kong)
Huadong Medicine Investment refers to
Limited
Huadong Medicine (Hangzhou) Biological Products
Biological Products Company refers to
Co., Ltd.
Takeda refers to Takeda Pharmaceuticals Company Ltd.
GLP-1 refers to Glucagon-like Peptide 1
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
CAR-T refers to Chimeric Antigen Receptor T-Cell
Sinclair refers to Sinclair Pharma Limited
vTv refers to vTv Therapeutics LLC
R2 refers to R2 Technologies, Inc.
MediBeacon refers to MediBeacon Inc.
ImmunoGen refers to ImmunoGen, Inc.
Provention Bio refers to Provention Bio, Inc.
RAPT refers to RAPT Therapeutics, Inc.
Kylane refers to Kylane Laboratories SA
High Tech refers to High Technology Products, S.L.U.
Heidelberg Pharma refers to Heidelberg Pharma AG
Kiniksa refers to Kiniksa Pharmaceuticals (UK), Ltd.
KiOmed refers to KiOmed Pharma SA
Arcutis refers to Arcutis Biotherapeutics, Inc.
MC2 refers to MC2 Therapeutics Ltd.
ATGC refers to ATGC Co., Ltd.
GMP refers to Good Manufacturing Practice
cGMP refers to Current Good Manufacturing Practices
GSP refers to Good Supply Practice
BE refers to Bioequivalence
Center for Drug Evaluation (of National Medical
CDE refers to
Products Administration)
MAH refers to Marketing Authorization Holder
FDA refers to (U.S.) Food and Drug Administration
NMPA refers to National Medical Products Administration
NHSA refers to National Healthcare Security Administration
NDA refers to New Drug Application
BLA refers to Biologic License Application
Abbreviated New Drug Application (or Generic Drug
ANDA refers to
Application)
International Council for Harmonisation (of Technical
ICH refers to
Requirements for Pharmaceuticals for Human Use)
IND refers to Investigational New Drug
PK/PD refers to Pharmacokinetics/ pharmacodynamics
Chemistry, Manufacturing and Control, mainly such
pharmaceutical researches as manufacturing technology,
CMC refers to
impurity research, quality research, and stability
research during drug research and development.
Contract Manufacturing Organization, i.e. Providing
such services as customized manufacturing of medical
CMO refers to
intermediates, APIs and pharmaceutical preparations
entrusted by pharmaceutical companies.
Contract Development and Manufacturing Organization,
mainly including providing customized R&D and
production services for multinational pharmaceutical
CDMO refers to
companies and biotechnology companies, such as
process R&D and preparation, process optimization,
scale-up manufacturing, registration and verification
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
batches manufacturing, and commercial manufacturing
of medicines, especially innovative medicines.
QA refers to Quality Assurance (department)
ADC refers to Antibody-Drug Conjugates
EBD refers to Energy Based Devices
license-in refers to Product license introduction
license-out refers to Product External License Authorization
BD refers to Business Development
Earnings Before Interest, Taxes, Depreciation and
EBITDA refers to
Amortization
EHS refers to Environment, Health and Safety Management Systems
MRCT refers to Multi-regional Clinical Trials
Over The Counter, i.e. medicines published by the
medical products administration under the State Council
OTC refers to and purchased and used by consumers at their discretion
without the prescription of practicing doctors or
assistant practicing doctors.
PFS refers to Progression-free survival
Drugs that require medical prescriptions issued by
Prescription Drugs refers to
physicians to be bought and used
Real World Research/Study, RWR/RWS, refers to
collecting data related to patients in the real world
environment (Real World Data), through analysis,
RWR/RWS refers to
acquiring the use value of medical products and clinical
evidence of potential benefits or risks (Real World
Evidence).
Catalogue of Drugs for Basic National Medical
2023 Drug Catalog refers to Insurance/Employment Injury Insurance/Birth Insurance
(2023)
Reporting Period refers to From January 1, 2024, to June 30, 2024
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Section II. Company Profile and Key Financial Indicators
I. Company information
Stock name (abbreviation) Huadong Medicine Stock code 000963
Stock listed on Shenzhen Stock Exchange
Company name in Chinese 华东医药股份有限公司
Company name in Chinese
华东医药
(abbreviation, if any)
Company name in English (if
Huadong Medicine Co., Ltd.
any)
Company name in English
Huadong Medicine
(abbreviation, if any)
Legal representative Lv Liang
II. Contact persons and contact information
Secretary of the Board of Directors Securities affairs representative
Name Chen Bo Hu Shufen
Contact address No. 866, Moganshan Road, Hangzhou No. 866, Moganshan Road, Hangzhou
Tel. 0571-89903300 0571-89903300
Fax 0571-89903300 0571-89903300
Email address hz000963@126.com hz000963@126.com
III. Other information
1. Company’s contact information
Whether there is any change in the Company’s registered address, office address, zip code, company website or company email
address during the reporting period.
□ Applicable N/A
The Company’s registered address, office address, zip code, company website or company email address have not changed during
the reporting period. For details, please refer to the 2023 Annual Report.
2. Channels of disclosure and location of preparation
Whether there is alteration in channels of disclosure and location of preparation
□ Applicable N/A
The website of the stock exchange, media and website for disclosing the semi-annual report, and the location of preparation of the
Company’s semi-annual report have not changed during the reporting period. For details, please refer to the 2023 Annual Report.
3. Other information
Changes in other related materials
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Applicable □ N/A
At the 24th meeting of the 10th Board of Directors held on May 30, 2024, the Company deliberated on and approved the Proposal on
Increasing the Business Scope, Changing Registered Address and Amending the Articles of Association. Please refer to the
Announcement on Increasing the Business Scope, Changing Registered Capital and Amending the Articles of Association
(Announcement No.: 2024-051) disclosed by the Company on Cninfo (http://www.cninfo.com.cn) for details. In July 2024, the
Company completed the registration of industrial and commercial changes related to the increase of its business scope, and obtained
the Business License renewed by Zhejiang Provincial Market Supervision and Administration Bureau.
IV. Key accounting data and financial indicators
Whether the Company needs to perform a retroactive adjustment or restatement of previous accounting data
□Yes No
Change of the current
Current reporting period Same period last year reporting period over the
same period last year (%)
Operating revenue (yuan) 20,965,065,605.67 20,385,344,288.81 2.84%
Net profit attributable to
shareholders of listed 1,696,020,589.20 1,433,824,629.56 18.29%
companies (yuan)
Net profit attributable to
shareholders of listed
companies after deducting 1,625,200,244.09 1,427,487,870.97 13.85%
non-recurring gains/losses
(yuan)
Net cash flow from operating
2,275,256,481.44 2,021,743,748.65 12.54%
activities (yuan)
Basic earnings per share
0.9675 0.8194 18.07%
(yuan/share)
Diluted earnings per share
0.9686 0.8190 18.27%
(yuan/share)
Weighted average return on
7.80% 7.43% 0.37%
equity (ROE)
Change of the end of the
End of the current reporting
End of last year current reporting period over
period
the end of last year (%)
Total assets (yuan) 36,166,783,775.64 33,509,361,816.98 7.93%
Net assets attributable to
shareholders of listed 21,760,294,487.74 21,047,609,756.66 3.39%
companies (yuan)
V. Differences in accounting data under domestic and overseas accounting standards
1. Differences in net profit and net assets disclosed in financial statements under international and
Chinese accounting standards
□ Applicable N/A
There are no differences in net profit and net assets disclosed in financial statements under international and Chinese accounting
standards during the reporting period.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
2. Differences in net profit and net assets disclosed in financial statements under overseas and Chinese
accounting standards
□ Applicable N/A
There are no differences in net profit and net assets disclosed in financial statements under overseas and Chinese accounting
standards during the reporting period.
VI. Items and amounts of non-recurring gains/losses
Applicable □ N/A
Unit: yuan
Item Amount Note
Gains/losses on disposal of non-current
assets (including the written-off part of 4,359,863.53
the accrued assets impairment reserve)
Government grants included in current
gains/losses (excluding those closely
related to daily business operation, See XI of the Notes to Financial
distributed constantly in accordance with 77,486,049.64 Statements for details of government
defined standards in line with national grants.
policies and regulations, and constantly
affecting the Company’s gains/losses)
Return of receivables impairment
reserves that are individually tested for 1,270,982.00
impairment
Other non-operating revenue and
-31,818,623.29
expenditures except the aforesaid items
Other profit and loss items that satisfy
the definition of non-recurring profit and 33,151,426.55
loss
Minus: Amount affected by income tax 8,226,028.61
Impact on minority interests (post-
5,403,324.71
tax)
Total 70,820,345.11
Details of other items of gains/losses meet the definition of non-recurring gains/losses:
Applicable □ N/A
As the operation of Huadong Ningbo Medicine Co., Ltd. Expired on December 31, 2021, the Company
confirmed the investment income of 33,151,426.55 yuan in this reporting period by applying the equity method.
Explanation for recognizing an item listed as a non-recurring gain/loss in the Interpretative Announcement No. 1 on Information
Disclosure Criteria for Public Companies - Non-Recurring Gains/Losses as a recurring gain/loss
□ Applicable N/A
Explanation for recognizing an item listed as a non-recurring gain/loss in the Interpretative Announcement No. 1 on Information
Disclosure Criteria for Public Companies - Non-Recurring Gains/Losses as a recurring gain/loss.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Section III. Management’s Discussion and Analysis
I. Main business of the company during the reporting period
(I) Main businesses
Founded in 1993 and headquartered in Hangzhou, Zhejiang Province, Huadong Medicine Co.,
Ltd. (stock code: 000963) was listed on Shenzhen Stock Exchange in December 1999. With its
businesses covering the entire pharmaceutical industry chain thanks to over 30 years of vigorous
development, the Company has now fostered four major business segments of pharmaceutical
industry, pharmaceutical business, aesthetic medicine and industrial microbiology, and has been a
large comprehensive listed pharmaceutical enterprise specialized in pharmaceutical R&D, production
and marketing.
Specialized in the R&D, production and marketing of specialized medicines, medicines for
chronic diseases, as well as special medicines for years, the Company has established complete
pharmaceutical production and quality research systems, and fostered core product lines focusing on
chronic nephrosis, autoimmunity, internal secretion, oncology and other fields. With multiple first-
line clinical medicines with market advantages in China, the Company has made layout in R&D of
innovative and high technology barrier generic medicines in three core therapeutic fields of oncology,
endocrinology and autoimmunity through independent development, external introduction, project
cooperation and by other means. To date, the Company has formed a good rhythm in launching
innovative medicines annually. The Company has continued to engage in international registration,
international certification, consistency evaluation, etc. of products, with successive results achieved.
Moreover, the Company has fostered a complete internationally-oriented pharmaceutical industry
system, and established and maintained R&D and project cooperation with multiple international
innovative R&D enterprises. Moreover, the Company has established strategic partnerships with
Pfizer, Takeda and other multinational pharmaceutical companies on products in the Chinese market.
As for the pharmaceutical business, the Company has continuously made innovation in services
to lead the high-quality development. To date, the Company has been ranked among the top ten
pharmaceutical business enterprises in China for consecutive years. Having four business segments
of Chinese & western medicine, medical devices, medicine materials and ginseng & antler, and health
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
industry, the Company has established 11 regional branches and subsidiaries in Zhejiang Province,
and three self-owned pharmaceutical logistics bases in Hangzhou, Jinhua and Wenzhou in northern,
central and southern Zhejiang respectively. The Company has also established retail chain and
outpatient departments and flagship stores on mainstream e-commerce platforms. In the field of
pharmaceutical circulation, the Company has fostered all-round advantages that feature complete
categories of products, omni-channel, integration of wholesale and retail, and online and offline
collaboration. As for the medical devices and instruments segment, the Company has attached equal
importance to both “scale distribution” and “professional agency”. In the ginseng & antler segment,
the Company has formed the whole industry chain from planting in bases to processing of prepared
pieces, automatic decoction, and self-owned brand functional products, leading the industry in the
scale of TCM decoction. In the segment of health industry, the Company has placed its focus on
rehabilitation and nursing. As for the innovative business, the Company has always focused on
product agency and market expansion, as well as pharmaceutical logistics characterized by cold chain.
To date, the Company has built its gold name card as an “integrated pharmaceutical service provider”
thanks to its project cooperation and CSO services with suppliers, as well as SPD and industry-
university-institute scientific research projects in line with the high-quality development goals of
medical institutions.
In terms of aesthetic medicine, the Company has created a comprehensive and differentiated
product matrix by following the strategy of “global operation layout and dual-circulation operation
& development” with an international vision through forward-looking layout, and now ranks at the
forefront of the industry in terms of product quantity and coverage. Specifically, over 20 products
have been launched in China and abroad, and more than a dozen innovative global products are in
development. Fostering differentiated product lines that cover three major categories of regeneration
products, hyaluronic acids and botulinum toxin, the Company is committed to becoming a global
leading aesthetic medicine comprehensive solution provider by offering patients with more
professional, efficient, comprehensive and safer integrated solutions through diversified combined
therapy techniques that combine “noninvasive and micro-invasive”, “facial and body filling”,
“products + technologies”, and “injection + energy source device”. Headquartered in the UK, the
Company’s wholly-owned subsidiary Sinclair is its global aesthetic medicine operation platform that
has R&D centers in the UK, the Netherlands, France, Switzerland, Spain and Israel, and production
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
bases in the Netherlands, France, the U.S., Switzerland, Bulgaria and Israel. Promoting and marketing
PCL microspheres for injection, hyaluronic acid, facial thread lifting and other products in global
markets, Sinclair researches, develops and expands its energy-source aesthetic medicine device
businesses through its wholly-owned subsidiaries High Tech and Viora. As for the aesthetic medicine
segment, the Company also has Sinclair (Shanghai), a wholly-owned subsidiary and its market
operation platform in China, as well as R2 in the U.S. and Kylane in Switzerland, two overseas
technical development-type joint-stock subsidiaries.
With profound industrial base and powerful industrial transformation ability thanks to over 40
years of development in the industrial microbiology sector, the Company has successfully
development and manufactured multiple types of microbiological medicines, and established the key
technology system for R&D and production of microbiological products, ranking at the forefront of
the industry in terms of scale and technological level of microbiological fermented products. Being
market demand-oriented, R&D technology-driven and industrial resource-coordinative in the
industrial microbiology segment, the Company has placed its focus on two business scenarios of
application of synthetic biology technology system and innovative development of bio-
pharmaceuticals, and has fostered differentiated product lines and business solutions in four major
fields of xRNA, featured APIs&Intermediates, massive health &biomaterials, and animal health. The
Company has also established the R&D clusters with Industrial Microbiology of Zhongmei Huadong,
HIT Institute of Synthetic Biology, Huida Biotech, Hizyme Biotech, Perfect mRNA and Hibe as the
core, and seven industrial bases in Hangzhou Xiangfuqiao, Qiantang New Area, Jiangsu Joyang,
Magic Health, Anhui Meihua, Wuhu Huaren, and Nanjing Nongda Animal Pharmaceutical.
Moreover, the Company has set up the largest fermentation monomer plants in Zhejiang Province,
formed the industry-leading microbiological medicine production ability and high-level R&D
capacity that covers all stages of microbiological engineering technologies from strain construction,
metabolic regulation, enzymatic catalysis, synthetic modification to separation and purification, and
built a complete manufacturing system for R&D, pilot test, commercial production, engineering and
public system guarantee of microbiological projects.
(II) Overview of the Company’s operations during the reporting period
In 2024, the international situation is still chaotic and intertwined. As for the development and
security of the world, new opportunities come with multiple uncertainties and instabilities. The
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
adverse impact of global environment changes on China has escalated. China has continued to
strengthen macro policies to effectively respond to risks and challenges, maintaining the rebound and
upturn trend of economy. As Chinese-style modernization has been steadily advanced and the
situation of insufficient domestic demand has been improved, the economy will continue to improve
in the future.
Nevertheless, the reform of medical and health system in China will keep advancing in 2024,
bringing great opportunities and challenges for the continuous transformation and upgrade of the
pharmaceutical industry. It was the first time that the government work report had clearly put forward
to step up development of innovative medicines and other cutting-edge sectors, foster new growth
engines in fields such as biomanufacturing, and open up new fields such as life sciences, defining
innovative drugs as an important orientation for the development of new quality productive forces.
On July 5, the State Council issued the Implementation Plan for the Development of Innovative
Medicines, requesting the whole chain to strengthen policy guarantee, make good use of policies
regarding price management, medical insurance payment, commercial insurance, medicine
preparation & use, investment and financing, optimize review, approval and medical institution
assessment mechanisms, and pool efforts to promote the breakthrough development of innovative
medicines. Various provinces and municipalities have also successively launched industrial policies
to support and encourage the development of innovative medicines, affirming the importance of
innovative medicines to China’s innovative development strategy. On the industrial side,
continuously iterated technological innovation and released new demands have provided sustained
impetus for the long-term growth of the industry. On the market side, domestic demand has recovered
steadily and China’s innovative medicines have been recognized in overseas markets with successive
breakthroughs made. The innovative medicine industry in China enters the stage of booming
development.
In 2024, a year marking the end of the Company’s 7th three-year planning, the reform of the
pharmaceutical industry is China keeps deepening, and the volume-based procurement of medicines
and consumables has been gradually normalized, institutionalized, accelerated and expanded,
bringing certain pressure on overall business growth of the Company. During the reporting period,
the Company continuously followed its operation philosophy of “high quality and efficiency” and
“struggling forward for development and putting management first”, benchmarked with the 2030
Vision, and constantly advanced its operation and management efforts revolving around its annual
operation plan and the 7th three-year planning. In the meantime, the Company proactively responded
to market competitions and diver uncertainties, and constantly motivated its business vitality and
impetus for growth. Thanks to all these efforts, the Company achieved the historically best level in
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
both operating revenue and net profits, marching ahead steadily towards innovation and high-quality
development. In H1 2024, the Company achieved the total operating revenue of 20.965 billion yuan,
up 2.84% year on year (up 2.93% year on year in the first quarter), the net profit attributable to
shareholders of listed companies of 1.696 billion yuan, up 18.29% year on year (up 14.18% year on
year in the first quarter), and the net profit attributable to shareholders of listed companies after
deducting non-recurring gains/losses of 1.625 billion yuan, up 13.85% year on year (up 10.66 year
on year in the first quarter). After deducting the profits and losses of participating and holding R&D
institutions, the net profit after deducting non-recurring profit and loss attributable to shareholders of
listed companies was 1.802 billion yuan, up 26.26% compared with the Company’s net profit after
deducting non-recurring profits and losses attributable to the parent company in H1 2023. The
Company kept improving its quality and efficiency and kept the good momentum of steady growth,
laying a solid foundation for the attainment of its annual operation goals.
During the reporting period, the Company’s four major business segments of pharmaceutical
industry, pharmaceutical business, aesthetic medicine and industrial microbiology maintained steady
growth in operation, as well as stable improvement in operation quality and growth momentum. In
Q2, the Company achieved the total operating revenue of 10.554 billion yuan, up 2.76% year on year.
The net profit attributable to shareholders of listed companies was 834 million yuan, up 22.85% year
on year. The net profit attributable to shareholders of listed companies after deducting non-recurring
gains/losses was 787 million yuan, up 17.46% year on year.
Operation and Development of Four Business Segments of the Company during the
Reporting Period
1. Pharmaceutical industry
During the reporting period, the Company’s core subsidiary Zhongmei Huadong witnessed
favorable growth as a whole and achieved the operating revenue (including CSO business) of 6.698
billion yuan, up 10.63% year on year, and the net profit attributable to the parent company of 1.385
billion yuan, up 11.48% year on year. The net return on equity was 12.29%.
During the reporting period, Hangzhou Zhongmei Huadong Pharmaceutical Service Corporation
consolidated its existing marketing system, comprehensively improved its abilities in pharmaceutical
services, and constantly deepened the transformation of pharmaceutical services. Moreover, it
endeavored to develop a three-dimensional marketing strategy. While stabilizing the hospital market,
it continuously expanded grassroots and out-of-hospital markets, and further strengthened online
markets, OTC markets, DTP stores and other market networks and channels. It expanded the market
coverage, enhanced business cooperation on out-of-hospital and retail markets, strengthened brand
promotion, increased repurchase rate of products, and enhanced the breadth and depth of products,
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
fostering its brand advantages at both client and patient levels. It facilitated, optimized and improved
the Regional Marketing Department and the KA system construction, actively advanced lean
management and digital marketing, optimized the out-of-hospital promotion system, and
continuously fostered multi-dimensional market access and professional promotion capacities. The
Company strengthened academic driving and medical guidance, actively conducted research from the
perspective of evidence-based medicine, continuously improved the academic value and
competitiveness of key products, and deepened the medical services and promotion of key
departments. It also optimized its organizational structure, advanced organizational reform,
strengthened personnel training and external talent introduction, and improved per capita efficiency.
Zevorcabtagene Autoleucel Injection (trade name: Saikaize) exclusively commercialized by the
Company has witnessed favorable sales has witnessed favorable sales since it was commercialized
and launched this March, further boosting the Company’s confidence in constantly expanding its
CAR-T product lines. The Company set up a professional commercialization team to
comprehensively promote Saikaize. To date, the product has been smoothly promoted. A total of
129 medical institutions have received training on the use of Saikaize and passed relevant
certification as of July 31, 2024. The Company established a commercialization platform integrating
market access, medical services, operational services and logistics management, which covers all
links from hospital certification, DTP pharmacy and cold chain transportation to innovative payment.
A highly specialized team provides professional full-process services for each order, empowering
their successful execution.
During the reporting period, the Company’s innovative R&D kept advancing in an orderly
manner, with positive results achieved. In H1 2024, the Company has one BLA for innovative
medicines approved, three NDAs/BLAs accepted, and five INDs approved in China or the U.S.
Moreover, four applications for marketing authorization of generic medicines were approved. Please
refer to “(III) R&D situation” below in this section for details.
During the reporting period, the Company’s production system kept advancing innovation in
management with a goal to create lean production system and agile operation mode by upholding its
concept of “High Quality and High Efficiency” development. While ensuring the market supply, the
Company continued to promote the lean production and standardization construction of workshops,
and actively promoted the reduction of production costs and improvement of efficiency. The
Company promoted the construction of Huadong Medicine Bio-innovation Intelligence Center and
the Production Base of Synthetic APIs as planned, favorably supporting its subsequent commercial
production of biomedicines and innovative medicines. Moreover, the Company further strengthened
its quality compliance and GMP normalization management, completed the submission of
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
registration applications for multiple products and on-site inspection of registration, and continued to
advance the international registration and certification of key products.
In February 2024, the Company invested in the construction of a Bio-innovation Intelligence
Center project. Specializing in the transformation and industrialization of high-end biomedicines, the
Project will gradually build biological intelligence platforms that cover ADCs (including antibody
medicines), recombinant peptides, therapeutic enzymes, and synthetic biology. Please refer to the
Announcement on Investing in the Construction of Bio-innovation Intelligence Center Project
(Announcement No.: 2024-006) disclosed by the Company on Cninfo (http://www.cninfo.com.cn) on
February 8, 2024 for details. The Bio-innovation Intelligence Center Project has now smoothly
progressed. As of the date of the Report, the project design work has been completed and the
construction of Area 1 of Phase I is in progress.
2. Pharmaceutical business
In H1 2024, the Company actively responded to the dual challenges brought by weak market
demand and policy regulation, attached equal importance to both in-hospital and out-of-hospital
markets, and focused on both business expansion and operation efficiency improvement in the
segment of pharmaceutical business. The Company achieved an operating revenue of 13.552 billion
yuan, down 0.58% year on year, and accumulated a net profit of 218 million yuan, up 0.90% year on
year.
During the reporting period, the Company developed its pharmaceutical business revolving
around three key business modes of medical device distribution, product agency and third-party
logistics to empower the attainment of its 7th three-year planning. The distribution mode maintained
a reasonable growth in scale: In sectors of TCM and western medicine, the proportion of in-hospital
market was stabilized and out-of-hospital markets were expanded. For medical devicesand ginseng
& antler materials, the proportion of hospitals in Zhejiang Province was continuously increased. As
for product agency and third-party logistics, the Company kept playing its leading role, reaching new
clients, increasing its profitability, and empowering the distribution business.
As for in-hospital markets, the Company established the differentiated growth index based on
the market share and competition pattern of hospitals in various cities, and achieved steady growth
of its shares in in-hospital markets by guaranteeing order satisfaction rate, introducing mature
products and cooperating to cultivate new products. In out-of-hospital markets, the Company
endeavored to develop high-value retail pharmacies and new private medical customers. Its chain
pharmacies covered 97% of Zhejiang Province and its retail businesses had spanned across Zhejiang.
Moreover, the Company focused on developing in-hospital pharmacies, hospital-side pharmacies and
DTP pharmacies. Now, the Company has actually controlled up to 240 pharmacies. The segment kept
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
expanding its medical devices, medicinal materials, ginseng & antler to low-tier markets. Its
automatic medicinal materials, ginseng & antler decoction center played a significant role, which has
accepted over 6,000 prescriptions since 2024, running at full load. The Phase II of automatic
production line will be put into operation in Q4 2024. As for the medical devices business, the
segment placed its focus on the distribution of medicines winning bid for volume-based procurement,
and actively achieved steady growth of businesses outside Zhejiang Province through integration of
product distribution channels, expansion of e-commerce business, and increase in number of areas
supporting distribution of devices.
With regard to the agency business, Biological Products Company focused on the agency of
blood products and launched the joint construction project of the Aesthetic Medicine Center of Public
Medical Institutions in 2024. It re-integrated the Private Sales Department, stripped product agency
from distribution, rapidly expanded its agency lines for medicines by joint ventures, and gradually
shifted its focus to agency of domestic medicines. As for the supply chain business, the revenue of
the third-party logistics represented by the cold chain witnessed stable growth, making it the first
brand in the cold chain pharmaceutical logistics sector in Zhejiang Province. The Phase IV of cold
storage is expected to be put into use in H2 2024. The medicine storage has been completed and
passed the site inspection considering its demands for business development. Moreover, wholesale
and retail of veterinary medicines were included in its business scope. Regarding the e-commerce
business, the focus was placed on the improvement of profitability at the customer end, tapping of
connotations of its self-owned time-honored brand “Xuguanghe”, and expansion of C-end markets
online and offline. After the launch of freshly stewed cubilose, it also developed white fungus cubilose
soup, ganoderma lucidum spore powder and liquid salad for young consumers, continuously
enriching and broadening its product lines.
3. Aesthetic medicine business
During the reporting period, the Company’s aesthetic medicine segment maintained favorable
performance. The total operating revenue reached 1.348 billion yuan (excluding internal offsetting
factors), up 10.14% year on year. The overall profitability in the aesthetic medicine segment and the
ratio of contribution to the Company’s overall net profit witnessed continuous and steady
improvement.
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 injection and
EBD products globally. During the reporting period, affected by sluggish global economic growth
and phased fluctuations in demands for EBD products, the Company achieved an operating revenue
of about 570 million yuan, down 14.81% year on year, and the EBITDA of GBP 5.3180 million.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
During the reporting period, Sinclair (Shanghai), the Company’s wholly-owned subsidiary for
its domestic aesthetic medicine business, achieved an accumulative revenue of 618 million yuan, up
19.78% year on year, making important contributions to the continuous growth of the Company’s
overall performance.
During the reporting period, the Company actively practiced the long-term vision of cultivating
and building the world’s leading innovative aesthetic medicine enterprise, continued to steadily
promote the strategy of dual-circulation development in and out of China, focused on the global high-
end aesthetic medicine market, strengthened its brand building, and accelerated the integration of
product resources. To date, the Company has launched 40 high-end products in the field of “non-
invasive + micro-invasive” aesthetic medicine worldwide, of which 26 have been marketed. The
product portfolio covers non-surgical mainstream aesthetic medicine fields such as botulinum toxin,
facial and body fillers, energy source skin management, and body shaping. In the meantime, the
Company has formed integrated product clusters and ranks at the forefront of the industry in terms of
quantity of products and number of fields covered, with continuously improved international
influence. With a professional marketing and promotion team comprised of over 300 talents, the
Company’s aesthetic medicine segment has built its global aesthetic medicine marketing network
with over 80 countries and regions covered.
During the reporting period, the Company kept advancing the registration of its core products in
China. The supplementary materials for registration of the Company’s optical RF therapy device V20
was submitted on July 2 and the product is expected to be approved in China in 2024. The application
for registration of MaiLi Extreme, the Company’s novel high-end lidocaine-containing sodium
hyaluronate filler for injection, was accepted by the Center for Medical Device Evaluation, NMPA in
April 2024. The product is expected to be approved in China in 2025. By the end of April 2024, MaiLi
Precise completed the enrollment of all subjects in clinical trials in China. In May 2024, Ellansé S
completed the enrollment of the first subject in clinical trials in China for a new indication. Poly-L-
lactic acid (PLLA) collagen stimulant Lanluma successfully passed filing for international
cooperative clinical trial in May 2024 and completed the enrollment of the first subject in clinical
trials in June 2024. It is now under multi-center registered clinical study in China. Ellansé M, a type
of polycaprolactone microsphere facial filler for injection, successfully completed 12-month follow-
up of all subjects in China in June 2024. In the meantime, the Company continued to advance overseas
registration of its aesthetic medicine products. Maili series sodium hyaluronate fillers were approved
in Singapore in June 2024. The application for EU CE certification of KIO015, a type of dermal filler
for injection, was submitted and the product is expected to be granted EU CE certification in 2025.
Please refer to “8. Progress of registration and launching of aesthetic medicine products in China” in
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
“(III) R&D situation” below in this section for the progress of registration of the Company’s other
key aesthetic medicine products in China.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Figure: Key Aesthetic Medicine Products of Huadong Medicine
During the reporting period, Sinclair (Shanghai) drove collaborative development of its multiple
subsidiary brands with the Company’s brand as the main body, constantly launched high-quality
products, gradually improved its product matrix, linked global R&D and medical resources, improved
its reputation on B and C ends, and created a brand image that features “professional”, “aesthetic”
and “high-end”. As for products, the Company launched the second-generation new products of
Ellansé in Shanghai in July 2024: three high-end regenerative facial fillers, namely Ellansé
Zhenyan, Ellansé Jinyan and Ellansé Zhizhen, which are upgraded and launched based on
the market feedback and physicians’ injection habits. These products further consolidated the leading
position and product matrix in the field of high-end anti-aging in China. Compared with the first
generation of products, these products not only subdivided PCL microspheres, their core component,
into large, medium and small particles to satisfy the anti-aging needs at different levels, but also
upgraded quality control and safety measures through destructive unpacking design, etc. to further
ensure authenticity, thus better safeguarding the rights and interests of consumers. Winning great
concern and recognition after being launched, these products have been introduced and applied by
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
more than 100 institutions so far. As a basic product in the field of regeneration, the first generation
of Ellansé original microspheres will help more patients experience the natural regeneration effect
brought by PCL microspheres. In the meantime, the second generation of new products will cater to
the mainstream needs of patients for the most “personalized” beauty. Featuring layered anti-aging
and specialized effects, they are expected to keep leading the upgrade of demands in the high-end
aesthetic medicine market in China.
In addition to continuous product innovation, the aesthetic medicine segment also made major
medical breakthroughs. This year, Sinclair (Shanghai) reached academic cooperation with
Massachusetts General Hospital under Harvard Medical School on Asian Virtual Magic Wand, which
was successfully launched early this year. With the program as a carrier, Sinclair (Shanghai) will pool
together top-notch scholars, clinicians, researchers and industry leaders across the globe to promote
international academic exchanges, enhance the influence of Chinese physicians in the field of
aesthetic medicine globally, expand more safe and effective treatment means, and actively advance
the vigorous development of the global aesthetic medicine industry.
Always putting medical science first, the Company’s aesthetic medicine segment published 4
academic journal papers in H1 2024. Now, 7 clinical researches and 8 basic researches are in progress.
By the end of 2024, Sinclair (Shanghai) has signed cooperation contracts with over 600 hospitals and
trained over 1000 certified physicians on Ellansé. During the reporting period, the Company’s
aesthetic medicine segment held hundreds of medical training and education activities both online
and offline. More than 120,000 physicians viewed its online education platform in H1 2024. As for
Ellansé, Sinclair (Shanghai) constantly strengthened its brand building and consolidated the high-
end orientation through diverse trans-discipline activities, being well-received by C-end markets and
witnessing improved industry influence and competitiveness.
During the reporting period, Sinclair (Shanghai) also achieved positive results in the expansion
of biological and aesthetic medicine equipment market. In April 2024, the new product launch
meeting of Glacial Spa was held in Shanghai. In May 2024, the launch meeting of Reaction body
program was kicked off during Mevos in Hangzhou, constantly leading the new trend of comfortable
anti-aging. Keeping the philosophy of “medicine-based aesthetic medicine” in mind, Sinclair
(Shanghai) successfully released the Expert Consensus on Strengthened Treatment of Ligament
through Multi-channel Radio Frequency. Two clinical trials with Peking University First Hospital
and Shanghai Ninth People’s Hospital are about to end. Sinclair (Shanghai) has always been
committed to offering patients more professional and safer products and services. The Company’s
energy source products have been well-received by many institutions and patients. To date, more than
200 institutions have introduced Glacial Spa or Reaction. The number of terminal treatments was
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
increased by more than 300% year on year. In addition, the Company actively advanced its efforts for
registration of Préime DermaFacial, its aesthetic equipment, in China and kept offering patients
excellent experience and services from all aspects through constantly enriched product matrix.
In the future, the Company’s aesthetic medicine segment will continue to focus on the high-end
market of global aesthetic medicine to form an international aesthetic medicine business integrating
R&D, manufacturing and marketing by upholding the strategy of “global operation layout and dual-
circulation operation & development” and keeping optimizing its product lines. With its core
subsidiary Sinclair as the global operation platform and integrating global technological and
innovative resources, the Company has achieved the global operation layout for its aesthetic medicine
segment and successively introduces “aesthetic medicine + cosmetic medicine” products with great
scientific connotation and huge market potential into China. Internationally, the Company empowers
the rapid launching and commercialization of its superior international products relying on its great
registration and marketing abilities in China and steadily expands its presence in China. In the
meantime, the Company will continue to foster robust brand strength based on cutting-edge
innovative technology, strive to bring comprehensive solutions and extraordinary aesthetic
experience to patients by upholding the professional and rigorous attitude as a pharmaceutical
enterprise, and bring long-term values to patients, aesthetic medicine institutions, and physicians
around the world.
4. Industrial microbiology
The Company kept practicing the industrial microbiology development strategy and continued
to enhance its product R&D and market expansion by clarifying and continuously advancing the
layout cored at four major fields of xRNA, featured APIs & intermediates, massive health &
biomaterials, and animal health. As a result, the Company made positive achievements in
development of key clients in and out of China and witnessed constantly improved overall sales that
are expected to further accelerated. During the reporting period, the industrial microbiology segment
achieved the sales revenue of 285 million yuan, up 27.43% year on year.
As for the industrial microbiology business, the Company continuously enriched the product
lines in four major strategic segments of high innovation, high technology barrier and high added-
values, and optimized its product structures with the focus placed on R&D. Work and tasks in each
segment of the Company’s industrial microbiology completed during the reporting period were as
follows:
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
xRNA: Perfect mRNA established industrial collaboration with Anhui Meihua and Wuhu
Huaren in the field of xRNA, further optimizing the whole-industrial chain layout of xRNA. In H1
2024, Perfect mRNA completed site construction and entered the trial operation stage, forming the
ability to undertake mRNA-related CDMO businesses. In the field of xRNA, Wuhu Huaren steadily
expanded its CDMO businesses in China, input more to develop international clients, established
business cooperation, submitted DMF application documents for the first monomer, and established
business cooperation with core nucleic acid medicine R&D enterprises for sales of customized
products.
Featured APIs & intermediates: The Company completed the layout of series products for ADC,
submitted DMF application documents for mainstream toxin varieties, and signed and initiated the
first overseas ADC small-molecule CDMO project. The Company also completed the overall layout
of polypeptide business and will proactively expand its international markets. The layout of high-
activity anti-tumor, anti-parasite and microbial source API product systems was basically completed.
Massive health & biomaterials: Magic Health completed the fundamental construction of its
Yichang Industrial Base, obtained the license for production and shifted to normalized operation. It
also obtained various certifications including ISO9001 certification, ISO22000 certification, HACCP,
Halal (ARA), Halal (MUI), Halal (BP) and Kosher (OU), and accelerated the development of major
clients in and out of China. Hibe fostered a matrix of upstream medical high-end functional materials
with its self-developed products based on biodegradable materials together with exclusively agent
varieties introduced from overseas. It proactively laid out biological medicine and aesthetic medicine
CMC R&D businesses strongly associated with self-owned materials and with global competitiveness,
and joined hands with clients to incubate global innovative products relying on its unique preparation
technological innovation platform.
Animal health: Nanjing Nongda Animal Pharmaceutical, the Company’s holding subsidiary,
endeavors to become a new brand specialized in pains and aged disease management in the field of
pet care. In H1 2024, Butorphanol Tartrate Injection (trade name: Baoshining), a kind of central
analgesic medicine exclusively commercialized by Nanjing Nongda Animal Pharmaceutical, was
successfully marketed, attracting more than 3,300 pet hospitals throughout China. In the field of
aquatic animal health, the Company has always been committed to improving water environment and
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
enhancing aquatic nutrition, thus providing farmers with comprehensive product solutions and
services. In this field, Nanjing Nongda Animal Pharmaceutical will keep improving online and offline
treatment links, promote and build the “Mengdi” brand online, make long-term layout, advance the
replenishment of new products offline, and endeavor to build benchmark hospitals in key cities.
5. BD cooperation as of the date of the Report
On March 11, 2024, Company’s wholly-owned subsidiary Huadong Medicine Investment
Holding (Hong Kong) Limited subscribed IPO shares of Qyuns Therapeutics Co., Ltd. at the Stock
Exchange of Hong Kong Limited as cornerstone investor with the consideration of equivalent 5
million US dollars from its own funds in Hong Kong dollar (excluding brokerage commission, related
transaction fees and levies). Please refer to the Announcement on Subscribing IPO Shares of Qyuns
Therapeutics Co., Ltd. as Cornerstone Investor (Announcement No.: 2024-013) disclosed by the
Company on Cninfo (http://www.cninfo.com.cn) for details. On March 20, 2024, Qyuns Therapeutics
was successfully listed on the main board of Stock Exchange of Hong Kong with the stock code of
2509.HK. As of the date of the Report, the Company holds a total of 37,876,800 shares of Qyuns
Therapeutics through its wholly-owned subsidiaries Zhongmei Huadong and Huadong Medicine
Investment Holding (Hong Kong) Limited, accounting for about 17.06% of the total shares of Qyuns
Therapeutics. Among them, Zhongmei Huadong holds 35,900,000 shares and Huadong Medicine
Investment holds 1,976,800 shares.
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.
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 holding
company Qyuns Therapeutics Co., Ltd. Listed on the Stock Exchange of Hong Kong with the stock
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
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
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
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
(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.
6. ESG of the Company during the reporting period
With regard to ESG, the Company has always adhered to the concept of sustainable development.
Setting up a special ESG Committee to coordinate the Company’s ESG work, the Company integrates
the core theory of ESG with the enterprise development strategy and daily operation management,
guides and makes innovation in various work with a scientific concept of social responsibility,
upholds the idea of green production, actively responds to the “carbon neutrality and carbon peaking”
goals, operates with integrity in strict accordance with laws, and actively fulfills its social
responsibilities. By virtue of its excellent ESG governance ability, the Company won the AA rating
for ESG by CNI Index of Shenzhen Stock Exchange, the A rating for ESG of WIND, the A rating for
ESG of Sino-Securities Index, the A rating for ESG of China Securities Index, and the BBB rating
for ESG of MSCI.
7. Awards during the reporting period
During the reporting period, as the Company’s comprehensive competitive strength, efficient
operation and governance, and value creation ability were recognized by the market, it won a number
of awards and honors: The Company was included in Fortune China 500 for the 15th time and ranked
373rd. It was selected in the list of “2023 Top 100 Pharmaceutical Industries in China” of MENET,
reelected the top 10 among “2023 Top 100 Pharmaceutical Enterprises in China”, granted “2023 Top
10 Big Pharma Enterprises in Innovation Power”, and included in “2024 Top 100 Chinese Enterprises
in Overall Strength of Pharmaceutical Research and Development”, “2024 Top 100 Chinese
Enterprises in Chemical Drugs Research and Development” and “2024 Top 50 Chinese Enterprises
in Biomedicine Research and Development” by YaoZH.
(III) R&D situation
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
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
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. As of the date
of the Report, the Company has a total of 129 pharmaceutical projects under development, including
86 innovative and biosimilar medicine projects. During the reporting period, the Company’s R&D
investment in the pharmaceutical industry (excluding equity investment) was 1.110 billion yuan, up
10.34% year on year. Among them, direct R&D expenditure was 761 million yuan, up 14.04% year
on year, which accounts for 11.58% 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 entities of multiple types medicines including small-molecule medicines,
targeted protein degraders, 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.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Figure: Pipeline Diagram of Main Innovative Medicines and Biosimilar Medicines as of the Date of the
Report
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
3. Progress of R&D of innovative medicines, innovative medical devices 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.
In October 2023, the marketing authorization application 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, in China was accepted and is now under review.
In March 2024, the Company’s American partner announced that the approval state of ELAHERE
in the U.S. had changed from accelerated approval to full approval. In April 2024, the Company was
approved to join the international multi-regional phase III clinical study of PSOC (platinum-sensitive
ovarian cancer) to advance the front-line treatment of ovarian cancer, for the maintenance treatment
for adult patients with FRα-positive recurrent platinum-sensitive epithelial ovarian cancer, fallopian
tube cancer or primary peritoneal cancer, who have not experienced disease progression after second-
line platinum-based chemotherapy in combination with bevacizumab. In addition, the product was
approved in Macao, China in April 2024. According to the innovative policy of “Hong Kong & Macao
Registered Medicine Access to GBA Program”, the product was approved 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 EGFR mutations, was accepted in May 2024.
HDM2005, an ADC product independently developed by the Company, targeting receptor
tyrosine kinase-like orphan receptor 1, is used for the treatment of advanced malignant neoplasm. Its
IND applications in both China and the U.S. were approved in June 2024. The Company completed
the enrollment of the first subject in clinical trial in China in August 2024.
The IND application of HPK-1 PROTAC (hematopoietic progenitor kinase1 proteolysis
targeting chimera), the Company’s first self-developed small-molecule anti-tumor medicine under
HDM2006, was accepted in August 2024. The product is used for the treatment of advanced solid
tumors.
The IND application of HDM2027 (HDP-101), an innovative medicine introduced by the
Company, was accepted in August 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.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
HDM2020 and HDM2012 of innovative target ADC developed independently by the Company
completed PCC confirmations and entered IND R&D state. IND applications in China and the U.S.
are expected to be submitted in 2025.
Endocrinology
As of August 2024, an oral small-molecule GLP-1 receptor stimulant developed independently
by the Company, completed the enrollment of all subjects for phase II clinical trial for overweight or
obesity indication. The top-line results are expected to be obtained in Q4 2024. In the meantime, the
enrollment of the first subject for clinical trial for diabetes mellitus phase II indication was completed.
IND applications in China for two indications of weight management of patients with overweight
or obesity and type 2 diabetes of HDM1005, a GLP-1R and GIPR long-acting polypeptide dual-target
agonist developed by the Company independently, were approved in March 2024. IND applications
in the U.S. for weight management of patients with overweight or obesity were approved in April
2024. The enrollment and administration of the first subject for phase Ia clinical trial in China were
completed in March 2024. Currently, phase Ia and phase Ib clinical trials in China are smoothly
progressed, and the top-line results are expected to be obtained in Q4 2024. Phase II clinical trial is
expected to be initiated in early 2025.
DR10624, a kind of FGF21R/GCGR/GLP-1R target multiple agonist developed by Doer
Biologics, the Company’s holding subsidiary, completed SAD studies for phase I clinical trial in
China and New Zealand respectively. The phase Ib/ IIa clinical trial for obesity with
hypertriglyceridemia is now conducted in New Zealand, which is expected to be completed by the
end of 2024. The phase II clinical trial for hypertriglyceridemia in China was initiated and the
enrollment of the first subject is expected to be completed by the end of 2024.
To date, Semaglutide Injection completed the enrollment of all subjects for phase III clinical
study for diabetes indication. It is expected that main end-point data will be obtained in Q4 2024. Pre-
IND application of Semaglutide Injection for weight management indication was submitted in May
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 for
phase III clinical study in August 2024.
Autoimmunity
The Company has had over 10 varieties of biomedicines and micromodular innovative products
in the field of autoimmunity.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Being listed as Overseas New Medicine in Urgent Need for Clinical Purpose (First Batch) by
CDE in China, Rilonacept for Injection (ARCALYST), a global innovative product introduced from
Kiniksa in the U.S., is used for the treatment of Cryo-Pyrin-Associated Periodic Syndromes (CAPS).
The marketing authorization application for CAPS indication was accepted in November 2023 and
the product was included in the list of priority review varieties in January 2023. Moreover, in
September 2023, recurrent pericarditis (RP) was included in the Second Catalogue of Rare Diseases
jointly issued by the National Health Commission and other miniseries. In March 2024, the marketing
authorization application of Rilonacept for Injection for RP indication was accepted in March 2024
and the product was included in the list of priority review varieties in December 2023. The marketing
authorization applications of the product for CAPS and RP are both under review.
The marketing authorization application of HDM3001 (QX001S), a biological similar of
Ustekinumab for plaque psoriasis launched by the Company in cooperation with Qyuns Therapeutics,
in China is under review.
The innovative medicine HDM3016 (QX005N) jointly developed by the Company and Qyuns
Therapeutics completed enrollments of the first subject for phase III clinical study for two indications
of prurigo nodularis and atopic dermatitis in May 2024. In addition, the product was included as
breakthrough therapeutic varieties for the treatment of moderate and severe prurigo nodularis of
adults by CDE in January 2024.
The Roflumilast Cream (0.3%) , in cooperation with Arcutis of the U.S., was previously
approved for the treatment of plaque-type psoriasis of patients aged 6 or above in the U.S. and the
Roflumilast Foam (0.3%) was approved for the treatment of seborrheic dermatitis of patients aged 9
or above in the U.S. On July 9, Arcutis announced that the Roflumilast Cream (0.15%) was approved
by the FDA for the treatment of atopic dermatitis of adults and child patients aged 6 or above. On
July 23, Arcutis announced to submit sNDA of the Roflumilast Foam (0.3%) to FDA for the treatment
of scalp and body psoriasis of adults and adolescent patients aged 12 or above. In addition, the IND
applications of the Roflumilast Cream for two indications of atopic dermatitis and seborrheic
dermatitis in China were accepted in July 2024.
Innovative pharmaceutical device
HD-NP-102 (Dynamic Monitoring System of Glomerular Filtration Rate and Relmapirazin
Injection): The Dynamic Monitoring System of Glomerular Filtration Rate and Relmapirazin
Injection jointly developed by the Company and MediBeacon, Inc. of the U.S. (the Company received
the Letter on the General Name of Relmapirazin Injection issued by Chinese Pharmacopoeia
Commission in May 2024, which specifies the Chinese name of the injection) can continuously
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
measure the glomerular filtration rate (GFR) of patients with normal or impaired renal functions by
non-invasive monitoring of the fluorescence emitted by Relmapirazin Injection through intravenous
injection. According to the requirements of registration regulations in China, the Dynamic Monitoring
System of Glomerular Filtration Rate and Relmapirazin Injection need to be registered as medical
devices and medicines respectively. In November 2021, the Dynamic Monitoring System of
Glomerular Filtration Rate was approved to enter the special review procedure for innovative medical
device in China. In July 2022, NMPA formally accepted the medical device marketing authorization
application for the system and is now reviewing the application. The marketing authorization
application of Relmapirazin Injection used together with the system in China was accepted in January
2024. The clinical and pharmaceutical inspections were completed in May and June 2024
respectively. Moreover, MediBeacon has submitted all modules regarding the PMA of the
MediBeacon Dynamic Monitoring System of Glomerular Filtration Rate (including the dynamic
monitoring system and Relmapirazin Injection) to the FDA, which was formally accepted in July
2023, and clinical, pharmaceutical and medical device production inspections were completed.
4. Other tasks regarding innovation R&D
Exploring innovative mechanism and continuously motivating vitality for innovation
The Company launched its early exploratory project mechanism revolving around two strategies
of innovative transformation and internationalization, showcasing huge potential in independent
innovation. Focusing on such fields as endocrinology, autoimmunity and oncology, the Company
continued to accelerate its differentiated innovation by identifying pilot frontier targets through a
target discovery platform in combination with AI drug discovery & design (CADD/AIDD). Since
2023, the Company has launched about 20 early exploratory and prospective projects, and has
successively incubated the first-in-class (FIC) or best-in-class (BIC) innovative medicines of the same
type.
Facilitating innovation transformation and advancing clinical development
The Company’s clinical R&D team continued to explore the speed and coverage of innovation
and break through the differentiated bottleneck in innovation in accordance with the orientation of
high efficiency and high quality, endeavoring to achieve the leap-forward development of diversified
innovation in clinical R&D. The R&D team charged and supported about 30 clinical projects from
such dimensions as clinical study, operation, biometrics, registration and pharmaco-vigilance.
Advanced technical platforms
The Company successfully built such medicinal R&D platforms as a new target discovery
platform, medicine design and synthesis platform, CADD/AIDD platform, PROTAC technology
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
platform and ADC R&D platform, aiming at accelerating the promotion of numerous lines with
original innovation (first-in-class, best-in-class) or differentiated/iterative development values.
Thanks to these platforms, the Innovative Medicine R&D Center accumulated about ten self-
dependent innovation PCC molecules in the past three years.
AI drug discovery & design (AIDD) platform is a key orientation currently valued by the
Company, which strengthens the construction of computing power and algorithm system and
intelligently process the data generated and accumulated in combination with the research progress
of the industry. In the meantime, rich data on the properties of finished medicines accumulated by the
Company lays the foundation for continuous optimization and iterative prediction model of the
properties of finished medicines and greatly improves the R&D progress of several projects at
different stages. This year, the platform has increased the prediction of small molecule novelty,
hemolysis, efflux, ADC drug solubility, and other properties. At present, the platform is also
expanding its application in the R&D of small molecule, PROTAC, ADC, protein, polypeptide, and
nucleic acid medicines. In the meantime, the platform also introduced Hermite and Uni-QSAR
technologies, which fill the FEP precision shortcomings of the platform and enrich the prediction
methods of small molecular properties.
Postdoctoral research workstation
Zhongmei Huadong, a wholly-owned subsidiary of the Company, was approved to set up the
postdoctoral research workstation in February 2021, which was registered as a national postdoctoral
research workstation in September 2022. The workstation now has 14 postdoctors. Two postdoctors
successfully completed their tasks and left the workstation. Postdoctors at the Company’s
postdoctoral research workstation are devoted to frontier and translational studies on R&D of
innovative medicines and join hands with moving stations at Zhejiang University, Shanghai Institute
of Materia Medica of Chinese Academy of Sciences, Zhejiang University of Technology and other
universities in combination with the Company’s development strategies and product lines under
research.
Other innovation results
(1) Patent applications
The Company’s Innovative Medicine Global R&D Center attached great importance to the
protection of intellectual property rights, valued the management of intellectual property rights in the
whole life cycle of medicines and the formulation of patent strategies, and set up an intellectual
property BP for the early warning, declaration and retention of patents in and out of China, thus
improving the comprehensive competitiveness of its products. After 4 years of development, the
Innovative Medicine Global R&D Center has claimed a total of over 100 patent applications for
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
various innovative medicines. In H1 2024, the center was granted 4 patents, including 3 ones in China
and 1 in the U.S. In H1 2024, the Company submitted a total of 7 formal (Chinese) or PCT
(international) patent applications. Among them, many key international patents have been applied in
over 20 regions across the globe.
(2) Academic publications
From 2024 to date, the innovative medicine team successively published 8 conference/ journal
papers in the fields of endocrinology, autoimmunity and oncology at conferences or in journals:
results of GLP-1/GIP dual-target long-acting agonist HDM1005 pre-clinical research selected in the
summary of 2024 EASD, with an oral presentation made; results of small-molecule inhibitor of
targeted STING selected as the POSTER of 2024 ECI; targeted HPK1 PROTAC research selected as
the POSTER of 2024 AACR; oral HPK1 small-molecule inhibitor HDM2004 research selected as the
POSTER of 2024-CIMT Annual Conference; positive results of phase III key clinical study of
Mefatinib (HDHY-MHTN-III-1907) and oral PTPN2 small molecule inhibitor HDM2010 selected as
the POSTER and in the summary of 2024 ASCO Annual Conference, respectively; pre-clinical
research of ADC HDM2005 of targeted ROR1 selected as the POSTER of 2024 World ADC Asia.
The research results of HDM1002 were received by Journal of Medicinal Chemistry.
Since 2022, Huadong Medicine has published 16 innovative research results in journals or at
international conferences, highlighting its continuous efforts in exploring innovative transformation
and vigorous improvement of its R&D strength.
(3) Governmental subsidies
To date, the Company’s Innovative Medicine Global R&D Center has obtained approvals from
the government for 17 projects, with certified subsidies of 52.50 million yuan. The Company won the
honor of “Pioneering Innovation Team” of Zhejiang Province in 2021 and obtained the fund under
Zhejiang Province’s Pioneer Scientific and Technology Program for three consecutive years in 2021,
2022 and 2023. Meanwhile, HDM1002 and some other programs were all awarded prizes for
scientific and technological projects at the provincial and/or municipal level. HD-NP-102 and
Mefatinib won the fund from the “Special Program for High-quality Development of Bio-
pharmaceutical Industry in Hangzhou”.
5. Progress of development of major generic medicines
The Company further clarified the focused and prioritized varieties of existing generic medicines
under development by regularly organizing dynamic evaluation and analysis. As of the date of the
Report, key varieties are as follows:
No. Field Item Specification Latest Progress
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
1 Immunity Tacrolimus Granules 1mg Approved by NMPA in May 2024
5mg strength approved by NMPA
Tacrolimus Sustained- in February 2024
2 Immunity 5mg, 1mg, 0.5mg
release Capsules 1mg and 0.5mg strengths approved
by NMPA in June 2024
Marketing Authorization
3 Immunity Sirolimus Tablets 1mg Application accepted in February
2024
Marketing Authorization
4 Immunity Sirolimus Gel 0.2% Application accepted in January
2024
Marketing Authorization
Mycophenolate Mofetil Application accepted in November
5 Immunity 34.98g
for Suspension 2023, and supplementary materials
submitted.
Mesalazine Enteric-coated Marketing Authorization
6 Immunity 0.5g
Tablets Application accepted in June 2024
7 Oncology Olaparib Tablets 100mg, 150mg Approved by NMPA in June 2024
Marketing Authorization
8 Oncology Ibrutinib Capsules 140mg Application accepted in January
2024
Marketing Authorization
9 Oncology Carfilzomib for Injection 60mg Application accepted in February
2024
Icosapent Ethyl Soft Marketing Authorization
10 Angiocarpy 1g
Capsules Application accepted in June 2024
Marketing Authorization
Application accepted in May 2023,
11 Anti-infection Fusidic Acid Cream 15g: 0.3g
and supplementary materials
submitted.
Marketing Authorization
Application accepted in August
12 Easing pain Lornoxicam for Injection 8mg
2023, and supplementary materials
submitted.
Marketing Authorization
Vonoprazan Fumarate
13 Gastroenterology 10mg, 20mg Application accepted in January
Tablets
2024
6. Progress of international registration
The Company has actively conducted its international registration tasks. As of the date of the
Report, main progress is as follows:
No. Field Item Remarks Latest Progress
Renewed CEP certificate obtained in June
1 Endocrinology Acarbose APIs
2024
Reply to questions in clinical approval
2 Endocrinology Liraglutide Injection 3mL: 18mg
submitted in July 2024
Renewed certificate by CEP obtained in
3 Immunity Ciclosporin APIs
June 2024
Supplementary materials for ANDA
Caspofungin Acetate application submitted in the U.S. in
4 Anti-infection 50mg, 70mg
for Injection January 2024; on-site inspection of APIs
suppliers by FDA completed in June
DMF defect reply submitted in the U.S. in
5 Anticoagulant Fondaparinux Sodium APIs
May 2024
Fondaparinux Sodium 2.5 mg/0.5 mL, 5 Supplementary materials for ANDA
6 Anticoagulant
Injection mg/0.4 mL, 7.5 application submitted in the U.S. in May
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
mg/0.6 mL, 10 2024
mg/0.8 mL
7 Oncology VcMMAE Intermediate DMF submitted in the U.S. in May 2024
Nucleic acid DMF submitted in the U.S. in January
8 C00 Intermediate
medicines 2024
ANDA PAS in the U.S. submitted in April
9 Anti-infection Daptomycin Injection 500mg 2024; supplementary materials for PAS
submitted in May, June and July
7. Progress of consistency evaluation
As of the date of the Report, the progress of consistency evaluation on quality and efficacy of
Company’s generic medicines is as follows:
No. Field Item Specification Latest Progress
The notification of approval for
supplementary application of
1 Immunity Tacrolimus Capsules 1mg, 0.5mg
consistency evaluation for 0.5mg
strength obtained in January 2024
The notification of approval for
20ml:60mg,
supplementary application of
2 Angiocarpy Adenosine Injection 30ml:90mg,
consistency evaluation for 2ml:6mg
2ml:6mg
strength obtained in April 2024
Paracetamol and Application for consistency
3 Easing pain Dihydrocodeine Tartrate 500mg-10mg evaluation submitted and accepted in
Tablets July 2024
8. Progress of registration and launching of aesthetic medicine products in China
No. Type Product Designation Purpose Latest Progress
Application for registration accepted by
MaiLi Extreme the Center for Medical Device
1 Injections Facial filling
Hyaluronic acid Evaluation, NMPA in April 2024;
currently under technical review
Enrollment of all subjects for clinical
MaiLi Precise trial completed in April 2024; all follow-
2 Injections Facial filling
Hyaluronic acid ups for main end-point expected to be
completed by the end of 2024
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 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
recruitment in progress
Facial skin
5 Injections KIO015 Preparation for clinical trial in China
improvement
Improvement of
body and facial
wrinkles, benign
skin lesions, Supplementary materials for registration
Energy source
6 V20 benign vascular in China submitted in July 2024;
equipment
lesions, currently under technical review
inflammatory
acne, hair
removal, etc.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Improvement of
body and facial
wrinkles, benign
skin lesions, Testing for registration and preparation
Energy source benign vascular of technical data completed; application
7 V30
equipment lesions, benign for registration in China to be submitted
pigmented lesions, recently
inflammatory
acne, hair
removal, etc.
Facial skin To be launched in China ascosmetic
8 Cosmeticequipment Préime DermaFacial
management equipment
9. Progress of patents
In recent years, the Company attached great importance to the protection of intellectual property
and the commercialization and application of achievements, and the number of patent applications
and authorization steadily increased. Over the years, the Company applied for 1500 patents in and
out of China, including 500 authorized invention patents. Hangzhou Zhongmei Huadong
Pharmaceutical Co., Ltd., the Company’s wholly-controlled subsidiary, is a national intellectual
property demonstration enterprise. In November 2014, it passed the external audit of Zhongzhi
(Beijing) Certification Co., Ltd., becoming one of the first 147 companies that passed the standards
implementation certification and successfully passed the re-examination of the enterprise intellectual
property management system in October 2023.
During the reporting period, application and renewal of patents of the Company progressed
smoothly, with a total of 87 patent applications submitted, including 64 patents for invention. A total
of 56 patents were granted.
Increase during the reporting period Total quantity
Number of
Patent type Number of patents Number of patents Number of patents
patents received
applied for (unit) applied for (unit) received (unit)
(unit)
Invention patent 64 34 1200 507
Utility patent 22 18 275 245
Appearance design
1 4 40 39
patent
Total 87 56 1515 791
Note: Data in the above table represent the statistical patent information of main subsidiaries engaging in the
pharmaceutical industry, industrial microbiology and aesthetic medicine within the Company’s consolidated
statements.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
II. Core Competitiveness
1. Open innovative medicine R&D system and continuously improved innovation ability
The Company has always attached great importance to innovative R&D and maintained great
input in R&D. Being “Scientific Research-based and Patient-centered”, the Company has fostered a
sound independent innovation system for R&D of medicines that covers the whole process from
medicine discovery, pharmaceutical research, pre-clinical study and clinical study to industrial
production, and set up its Global New Medicine R&D Center after years of vigorous development,
with “clinical value, pharmacoeconomic value and commercial value” as the starting point.
Focusing on three core therapeutic fields of oncology, endocrinology and autoimmunity, the
Company keeps developing and has fostered differentiated innovative product lines that cover the full
R&D cycle via independent R&D, external cooperation, license-in, etc. All these merits effectively
empower the continuous initiation and launching of innovative products, offering impetuses for the
medium- and long-term development.
2. Diverse product lines for specialized and chronic diseases, and featured layout in three
core therapeutic fields
Focusing on specialized and chronic diseases, as well as special medicines for years, the
Company has fostered good brand effect and laid strong market foundation in such fields as chronic
nephrosis, autoimmunity, endocrinology and oncology. With the world’s first-in-class layout in three
core therapeutic fields of anti-tumor, endocrinology and autoimmunity, the Company has fostered
three featured R&D matrices of ADC, GLP-1 and external preparation, forming differentiated
advantages.
Specializing in medicines for diabetes for about two decades, the Company has continuously
kept at the forefront of similar products in China in terms of market share. The Company has formed
a comprehensive layout for innovative medicines and differentiated generic medicines in the
mainstream clinical treatment targets of diabetes. To date, there have been 20 products under
commercialization and research. The existing and subsequently-upgraded products cover multiple
clinical mainstream targets, including α-glucosidase inhibitor, DPP-4 inhibitor, SGLT-2 inhibitor,
GLP-1 receptor agonist, double-target and triple-target agonists, insulin, and its analogues. The
Company has fostered all-round and differentiated product lines that combine the long-acting and
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
multi-target global innovative and biosimilar medicines including oral medicines and injections
revolving around GLP-1 target.
The field of oncology is one of the three core therapeutic fields valued by the Company during
its development. To date, the Company has formed rich product lines in the field of oncology driven
by its independent R&D and external cooperation, and has had a dozen of innovative medicines that
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
cover solid tumors and hematological tumors, as well as a variety of therapeutic mechanisms. In the
field of solid tumors, the Company has made differentiated layout for main cancers such as
gynecological tumors, urinary system tumors, and digestive system tumors. As for hematological
tumors, the Company has rolled out its services that cover diverse cancers including multiple
myeloma, lymphoma and leukemia through its ADC and CAR-T products. In the field of ADC, the
Company keeps enhancing its product lines and has successively invested, held and incubated many
biotech companies with leading technologies in China. Moreover, the Company has fostered a unique
ADC global R&D ecology of Huadong Medicine and gradually created a world-leading ADC
independent R&D platform that is unique to Huadong Medicine. The Company will keep developing
ADC innovative products in a differentiated manner and bringing tumor patients better and more
advanced solutions.
In the field of autoimmunity, the indications of the Company’s existing and under-development
products include transplant immunity, systemic lupus erythematosus, psoriasis, atopic dermatitis,
seborrheic dermatitis, recurrent pericarditis, Cryopyrin-Associated Periodic Syndromes and other
diseases, covering such diseases as skin, rheumatism, cardiovascular, respiratory, and transplantation.
The Company has become one of the pharmaceutical companies with comprehensive coverage in the
field of autoimmunity in China. To date, the Company has had over 10 varieties of biomedicines and
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
small-molecule innovative products in the field of autoimmunity. In the meantime, the Company’s
Innovative Medicine R&D Center developed multiple new target and biological mechanism immune
disease early projects, which are all smoothly advanced. With regard to autoimmunity, the Company
stretched its coverage to external preparations, built external preparations R&D platforms, and
steadily advanced the R&D and innovation of external preparations and complicated preparations. To
date, its wholly-owned subsidiary Huadong Medicine (Xi’an) Bohua Pharmaceutical Co., Ltd. has
fostered three production lines for external preparations.
3. China’s leading professional pharmaceutical service team and complete commercial
format
In the pharmaceutical industry segment, the Company has fostered a professional
pharmaceutical service and market development team. Coring at the clinical values and academic
promotion, the team vigorously promotes the marketing mode that features the online integration of
comprehensive hospitals, primary-level medical institutions, retailing, third-party terminals and
Internet, with its sales network covering over 30 provinces (autonomous regions and municipalities).
To date, the Company has gradually formed multi-channel effective coverage and strong competitive
advantages.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
As for pharmaceutical business, the Company has made its presence in Zhejiang market for years.
To date, the Company has established business partnerships with over 95% of top 50 pharmaceutical
enterprises globally and the top 100 pharmaceutical enterprises in China, and covered all public
medical institutions in all cities, districts and counties (county-level cities) in Zhejiang. With regard
to the out-of-hospital market, the Company keeps developing retain pharmacies and private medical
institutions, with a leading market share in Zhejiang Province. The Company continuously improves
its core competence and has formed significant competitive advantages in cooperation with leading
hospitals, innovation in services, policy affairs, as well as organization and operation. Keeping pace
with the development of leading hospitals, the Company firmly seizes policy opportunities such as
the facilitation of medical insurance settlement in different places, keeping its share in leading
hospitals in Zhejiang Province around top three. The Company leads the industry in innovation in
services, offers services in diverse types and with rich contents, and achieves favorable cooperation
with upstream pharmaceutical enterprises and downstream terminal hospitals that feature high
compliance rate. The Company has formed strong competitiveness in such innovative businesses as
cold chain third-party logistics and automatic decoction, with a leading position in Zhejiang Province.
Attaching great importance to policy affairs, the Company boasts advantages accumulated over a long
period of time and is highly professional in serving clients and patients. Highly flattened
organizational structure, strong team cohesion and robust execution force help the Company lead the
industry in such key labor efficiency indexes as per capita sales and per capita net profit.
4. High-end international aesthetic medicine product lines that cover noninvasive and
micro-invasive mainstream non-operative fields
The Company successfully made its presence in the aesthetic medicine industry by acquiring
Sinclair based in the UK in 2018, and international energy-source aesthetic medicine device
enterprises High Tech and Viora in 2021 and 2022 respectively. In 2023, the Company successively
obtained the global rights of ATGC-110, a botulinum toxin product from ATGC in the Republic of
Korea, and the commercial rights of YY001 by Chongqing Yuyan in China, realizing the full coverage
of three categories of injection products, i.e. recycled products, hyaluronic acids, and botulinum toxin.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
For each category, the Company has formed more than two differentiated product lines and built a
comprehensive multi-dimensional aesthetic product system to provide patients with one-stop
integrated facial aesthetics solutions. Covering all middle- and high-end markets of non-operative
aesthetic medicine injections and energy-source aesthetic medicine devices, the Company has now
held global rights of multiple patented products in such fields as facial and body filling, facial
cleansing, body shaping, thread lifting, and energy-source devices, and set up an international
aesthetic medicine operation and BD team. To date, the Company has developed 40 types of
international high-end “noninvasive and micro-invasive” aesthetic medicine products that cover
frown lines improvement, facial and body filling, thread lifting, skin management, body shaping,
depilation, private repair and other non-operative mainstream aesthetic medicine fields. Specifically,
26 types of these products have been launched in and out of China, and the other 14 types are “first-
in-class” products under development. With comprehensive product clusters formed, the Company
now ranks at the forefront of the industry in terms of product quantity and coverage.
5. Building R&D industrial cluster and comprehensively improving the international
competitiveness of industrial microbiology segment
Since the establishment of the Industrial Microbiology Division, the Company has led the
overall business development in the field of industrial microbiology, and formed a complete
independent management system in marketing, operation, R&D, human resources, and finance. The
Company has also established the R&D clusters with Industrial Microbiology of Zhongmei Huadong,
HIT Institute of Synthetic Biology, Huida Biotech, Hizyme Biotech, Perfect mRNA and Hibe as the
core, and seven industrial bases in Hangzhou Xiangfuqiao, Qiantang New Area, Jiangsu Joyang,
Magic Health, Anhui Meihua, Wuhu Huaren, and Nanjing Nongda Animal Pharmaceutical. Moreover,
the Company has set up the largest fermentation monomer plants in Zhejiang Province, formed the
industry-leading microbiological medicine production ability and high-level R&D capacity that
covers all stages of microbiological engineering technologies from strain construction, metabolic
regulation, enzymatic catalysis, synthetic modification to separation and purification, and built a
complete manufacturing system for R&D, pilot test, commercial production, engineering and public
system guarantee of microbiological projects. On this basis, the Company further advances the
integrated construction of “production, research and marketing” of the Industrial Microbiology
Division, and make it an innovative international team with high synergy and high efficiency.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
The Company’s industrial microbiology team is rich-experienced and full of vitality. Mr. Wu
Hui, Deputy General Manager of the Company, serves as the leader of the Company’s industrial
microbiology segment. With profound technical foundation and over 30 years of experience in the
field of industrial microbiology, he won the second prize of National Science and Technology
Progress Award twice. In terms of R&D, the Company’s industrial microbiology segment has been
committed to forming an efficient R&D team with high-quality talents as the core. To date, there are
309 R&D personnel, 27% of whom have obtained their master and/or doctoral degrees. In the
industrial microorganism sector, the Company has initiated over 361 R&D projects, including 63
projects for xRNA (including 225 subprojects), 76 projects for featured APIs and pharmaceutical
intermediates, 30 projects for massive health and biomaterials, and 30 projects for animal health.
6. Prudent and pragmatic operation style, and stable returns to shareholders
Valuing innovation in management, the Company has always endeavored to satisfy the demands
for market competition by improving the quality of its operation. As a result, the Company has
achieved long-term steady development thanks to its high-quality products, excellent
commercialization capability, compliant yet efficient marketing services, differentiated market
positioning, innovative R&D layout, and complete talent planning. Since it was listed, the Company
has distributed dividends for 22 times with a cumulative amount of 6.628 billion yuan, which is 26.51
times the fund of 250 million yuan raised during IPO. The Company brings shareholders consistent
and steady returns on investment.
III. Main Businesses
Overview
Refer to “I. Main Business of the Company during the Reporting Period”
Year-on-year Changes in Major Financial Data
Unit: yuan
Year-on-year
Current reporting
Same period last year percentage Reasons for changes
period
increase/decrease
Operating revenue 20,965,065,605.67 20,385,344,288.81 2.84%
Operating cost 14,109,803,647.16 13,917,418,061.11 1.38%
Sales expenses 3,274,822,873.39 3,083,786,005.03 6.19%
Administrative
714,633,116.91 721,477,862.62 -0.95%
expenses
Financial expenses 23,424,445.20 55,848,182.30 -58.06% Mainly due to the
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
increase in net interest
income
Income tax expenses 360,337,560.24 345,279,440.91 4.36%
R&D input 643,106,566.65 558,407,142.27 15.17%
Net cash flow from
2,275,256,481.44 2,021,743,748.65 12.54%
operating activities
Net cash flow from
-669,504,073.37 -577,687,027.42 -15.89%
investing activities
Net cash flow from
-487,229,608.74 -926,491,607.55 47.41%
financing activities
Net increase of cash
1,112,735,457.71 526,515,832.72 111.34%
and cash equivalents
Material changes in profit composition or profit sources during the reporting period
□ Applicable N/A
No material changes in profit composition or profit sources during the reporting period.
Composition of operating revenue
Unit: yuan
Current reporting period Same period last year Year-on-year
Proportion in Proportion in percentage
Amount Amount increase/decrease
operating revenue operating revenue
Total operating
20,965,065,605.67 100% 20,385,344,288.81 100% 2.84%
revenue
By sectors
Business 13,588,899,262.22 64.82% 13,636,059,547.28 66.89% -0.35%
Manufacturing 7,857,208,599.38 37.48% 7,134,543,938.82 35.50% 10.13%
Including:
6,697,868,023.87 31.95% 6,054,218,892.26 30.20% 10.63%
Industrial
Aesthetic
1,348,185,919.47 6.43% 1,224,069,602.01 6.00% 10.14%
medicine
Including:
International 569,905,904.41 2.72% 668,946,339.96 3.28% -14.81%
aesthetic medicine
Aesthetic
medicine in China 824,698,912.81 3.93% 646,500,104.35 3.17% 27.56%
[Note]
Offset (inter-
-481,042,255.93 -385,259,197.30
sectoral offset)
By products
By regions
Sales in China 20,326,872,868.28 96.96% 19,679,447,121.24 96.54% 3.29%
Overseas sales 638,192,737.39 3.04% 705,897,167.57 3.46% -9.59%
The operating revenue or profit accounts for more than 10% of the total by industries, products or regions
[Note] The aesthetic medicine in China includes the income from the self-operated aesthetic medicine products, the income from the
aesthetic medicine products of the Company’s pharmaceutical commercial agency and the income from the OTC weight-loss
products of the Company.
Applicable □ N/A
Unit: yuan
47
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Year-on-year Year-on-year Year-on-year
percentage percentage percentage
Operating Gross profit
Operating cost increase/decrea increase/decrea increase/decrea
revenue rate
se in operating se in operating se in gross
revenue cost profit rate
By sectors
13,588,899,262 12,712,773,454
Business 6.45% -0.35% -0.93% 0.55%
.22 .71
7,857,208,599. 1,757,590,864.
Manufacturing 77.63% 10.13% 24.85% -2.64%
38 82
By products
By regions
20,326,872,868 13,900,942,569
Sales in China 31.61% 3.29% 1.61% 1.13%
.28 .53
Overseas sales 638,192,737.39 208,861,077.63 67.27% -9.59% -10.71% 0.41%
If the statistical specifications of the Company’s main business data have been adjusted during the reporting period, the Company’s
main business data of the latest period should be adjusted according to the specifications at the end of the reporting period.
□ Applicable N/A
IV. Non-main Businesses
Applicable □ N/A
Unit: yuan
Proportion in total
Amount Note on reasons Sustainable or not
profit
Mainly due to long-
term equity investment
Total return -47,845,863.81 -2.34%
gains measured at the
equity method
Gains and losses from
0.00 0.00% No
changes in fair value
Assets Impairment 0.00 0.00%
Non-operating revenue 5,221,955.01 0.25% No
Non-operating
37,784,277.75 1.84% No
expenses
Mainly due to the
confirmation of
Other income 93,707,046.82 4.57% No
government grants in
the current period
V. Assets and Liabilities
1. Major changes in asset composition
Unit: yuan
End of the current reporting period End of last year
Change of Note on major
Proportion in Proportion in proportion changes
Amount Amount
total assets total assets
Monetary funds 5,650,547,127. 15.62% 4,663,378,011. 13.92% 1.70%
48
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
07 64
Accounts 7,964,566,076. 7,455,250,690.
22.02% 22.25% -0.23%
receivable 36 83
4,379,240,489. 4,290,214,266.
Inventories 12.11% 12.80% -0.69%
45 03
Investment real
12,270,841.77 0.03% 12,746,181.87 0.04% -0.01%
estate
Long-term
1,540,257,326. 1,535,907,809.
equity 4.26% 4.58% -0.32%
17 85
investment
4,158,172,111.3 4,140,144,817.
Fixed Assets 11.50% 12.36% -0.86%
9 51
Construction in
918,366,234.28 2.54% 913,147,212.17 2.73% -0.19%
Progress
Right-of-use
157,318,875.96 0.43% 151,175,007.16 0.45% -0.02%
Assets
Short-term 1,405,140,132.
3.89% 822,380,292.37 2.45% 1.44%
borrowings 05
Contract
125,051,134.31 0.35% 135,459,275.17 0.40% -0.05%
liabilities
Long-term
81,565,510.08 0.23% 520,759,460.07 1.55% -1.32%
borrowings
Lease liabilities 69,083,110.73 0.19% 56,695,158.59 0.17% 0.02%
2. Information about main overseas assets
Applicable □ N/A
Proportion
Control Where
of overseas
measures to there are
Contents of Operation Earnings assets to
Reasons Asset size Location ensure significant
assets mode position the
asset impairment
Company’s
security risk
net assets
Approval
of
decisions
on major
matters and
daily
Sinclair financial Loss in the
Equity 2,196,780,3 United Independen
Pharma supervision current 9.86% No
acquisition 00 yuan Kingdom t auditing
Limited by the period
Board of
Directors,
and audit
by external
intermediar
ies
3. Assets and liabilities measured at fair value
Applicable □ N/A
49
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Unit: yuan
Gain/loss Accumulat
Amount at Depreciatio
from fair ed fair Purchase Selling
the n reserves Amount at
value value amount in amount in Other
Item beginning withdrawn the end of
changes in changes the current the current changes
of the during the the period
the current recognized period period
period period
period in equity
Financial
assets
2.
Derivative 16,434,493. 16,488,136.
53,642.57
financial 97 54
assets
4. Other
equity
565,223,87 1,344,406.0 566,568,27
instrument
2.68 4 8.72
investment
s
Subtotal of
581,658,36 1,398,048.6 583,056,41
financial
6.65 1 5.26
assets
Receivable 1,434,366,3 5,234,592,0 5,009,854,6 1,659,103,7
s financing 00.69 59.74 01.39 59.04
2,016,024,6 5,234,592,0 5,009,854,6 1,398,048.6 2,242,160,1
Total 0.00 0.00 0.00
67.34 59.74 01.39 1 74.30
Financial
0.00 0.00
liabilities
Other changes
Changes in exchange rate
Whether there are significant changes in the main asset measurement attribute of the Company during the reporting period.
□Yes □No
4. Limitation of asset rights at the end of the reporting period
Unit: yuan
Book value at the end
Item Ending book balance Type of limitation Reasons for limitation
of the period
The deposit is used for
Monetary funds 72,862,407.58 72,862,407.58 Deposit issuing bills, letters of
credit, etc.
Certificate of deposit
Monetary funds 255,013,541.67 255,013,541.67 Pledge pledge is used for issuing
bills.
Monetary funds 1,000,000.00 1,000,000.00 Freezing Judicially frozen payment
Bill pledge is used for
Receivables financing 4,035,242.07 4,035,242.07 Pledge
issuing bills.
50
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Total 332,911,191.32 332,911,191.32
VI. Investment
1. Overview
Applicable □ N/A
Investment amount in the reporting Investment amount in the same period of
Percentage change
period (yuan) last year (yuan)
1,243,491,577.69 1,101,613,342.52 12.88%
2. Significant equity investments acquired during the reporting period
□ Applicable N/A
3. Significant non-equity investments in progress during the reporting period
Applicable □ N/A
Unit: yuan
Reaso
Cumul
Cumul ns for
ative
Invest ative not
Industr actual
ment incom meetin
Invest y invest
amoun e g the Disclo
ment involv ment Project Disclo
Way of t Project realize planne sure
Project in ed in amoun Fund ed sure
invest during progre d by d index
name fixed the t by source incom date (if
ment the ss the end schedu (if
assets invest the end e any)
reporti of the le and any)
or not ment of the
ng reporti project
project reporti
period ng ed
ng
period incom
period
e
Huado
ng
Medici
ne
Biome Pharm
Cninfo
dical aceutic
Self- 1,807, March (http://
Scienc al 5,935, Equity 99.00
built Yes 103,10 / / N/A 9, www.c
e and manuf 117.42 funds %
project 3.33 2017 ninfo.c
Techn acturin
om.cn)
ology g
Park
Project
Phase
II
Huado Self- Pharm 11,349 386,79 April Cninfo
Equity 95.50
ng built Yes aceutic ,855.1 4,847. / / N/A 21, (http://
funds %
Medici project al 8 89 2021 www.c
51
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
ne Life R&D ninfo.c
Scienc om.cn)
e
Industr
ial
Park
(Xiang
fu
south
plot)
project
Huado
ng
Medici Pharm
Cninfo
ne aceutic
Self- 62,384 62,384 Februa (http://
Bio- al Equity
built Yes ,170.5 ,170.5 2.00% / / N/A ry 8, www.c
innova manuf funds
project 9 9 2024 ninfo.c
tion acturin
om.cn)
Intellig g
ence
Center
Project
79,669 2,256,
Total -- -- -- ,143.1 282,12 -- -- / / -- -- --
9 1.81
4. Investment in financial assets
(1) Securities Investment
Applicable □ N/A
Unit: yuan
Gain/l
Accu
oss
mulat Purch Sellin
Book from Gain/l
Accou ed fair ase g Book
value fair oss
Stock Initial nting value amou amou value
Type at the value during Accou
Stock abbre invest measu chang nt in nt in at the Fund
of begin chang the nting
code viatio ment remen es the the end of source
stock ning es in report item
n cost t recog curren curren the
of the the ing
model nized t t period
period curren period
in period period
t
equity
period
Dome Other
Meas
stic equity
20,20 ureme 7,122, 3,047, 7,167, Equit
and 44,35 instru
RAPT RAPT 7,400. nt of 858.9 0.00 483.6 0.00 0.00 208.9 y
overse 0.07 ment
00 Fair 1 8 8 funds
as invest
Value
stock ments
20,20 7,122, 3,047, 7,167,
44,35
Total 7,400. -- 858.9 0.00 483.6 0.00 0.00 208.9 -- --
0.07
00 1 8 8
Note: (1) Huadong Medicine Investment Holding (Hong Kong) Limited, a wholly-owned subsidiary of the Company, purchased
218,102 Series C-2 preferred shares of RAPT Therapeutics, Inc. in a total of 3 million US dollars in 2018. RAPT Therapeutics, Inc.
52
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
was listed on NASDAQ exchange on October 30, 2019 (stock code: RAPT). As of the end of the reporting period, Huadong
Medicine Investment Holding (Hong Kong) Limited holds 39,500 shares in RAPT, accounting for about 0.113% of the total shares of
RAPT Therapeutics, Inc.
(2) On March 11, 2024, the Company’s wholly-owned subsidiary Huadong Medicine Investment Holding (Hong Kong) Limited
subscribed IPO shares of Qyuns Therapeutics Co., Ltd. at the Stock Exchange of Hong Kong Limited as cornerstone investor with the
consideration of equivalent 5 million US dollars from its own funds in Hong Kong dollar (excluding brokerage commission, related
transaction fees and levies). Please refer to the Announcement on Subscribing IPO Shares of Qyuns Therapeutics Co., Ltd. as
Cornerstone Investor (Announcement No.: 2024-013) disclosed by the Company on Cninfo (http://www.cninfo.com.cn) for details.
On March 20, 2024, Qyuns Therapeutics was successfully listed on the main board of the Stock Exchange of Hong Kong with the
stock code of 2509.HK. As of the date of the Report, the Company holds a total of 37,876,800 shares of Qyuns Therapeutics through
its wholly-owned subsidiaries Zhongmei Huadong and Huadong Medicine Investment Holding (Hong Kong) Limited, accounting for
about 17.06% of the total shares of Qyuns Therapeutics. Among them, Zhongmei Huadong holds 35,900,000 shares and Huadong
Medicine Investment holds 1,976,800 shares.
The Company calculated the shares held by Zhongmei Huadong and Huadong Medicine Investment in a consolidated manner, which
was reflected in the long-term equity investment in the financial statements.
(2) Derivatives investment
Applicable □ N/A
1) Derivatives investment for hedging during the reporting period
Applicable □ N/A
Unit: ten thousand yuan
Proportion
of the
investment
Gain/los amount at
s from Accumulat the end of
Amount at Purchase Selling
Initial fair ed fair the period
Type of the amount amount Amount at
investm value value in the net
derivatives beginning during the during the the end of
ent changes changes assets of
investment of the reporting reporting the period
amount in the recognized the
period period period
current in equity Company
period at the end
of the
reporting
period
Currency swap
2,990.75 1,643.45 0 0 0 0 1,648.81 0.08%
derivatives
Total 2,990.75 1,643.45 0 0 0 0 1,648.81 0.08%
Note on
accounting
policies and
specific principles
of accounting
concerning
hedging business N/A
during the
reporting period,
and whether they
change
significantly when
compared with
53
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
that in the
previous reporting
period
Note on the actual
gains and losses
N/A
during the
reporting period
The Company carries out foreign currency hedging business based on specific situations, which is based on
Note on the effect
normal production and operations and can effectively reduce risks on the foreign currency market. Risks
of hedging
facing the Company under control are bearable.
Capital source of
derivatives Equity or self-raised funds
investment
Risks: 1. Market risks: The interest rate, exchange rate and other prices on the market may fluctuate due to
changed domestic and overseas economic policies and situations, thus changing the price of financial
derivative instruments and causing losses. 2. Liquidity risks: Transactions fail to be completed due to the
market lacking liquidity and counterparties. 3. Operational risks: Trading financial derivative instruments
requires experts who can deal with complexity, which may cause operational risks due to traders or
managers thinking there is an error or system failure and out of control. 4. Contractual risks: Contracts on
financial derivative business expire, some of which cannot be performed on time, and thus they are
breached. 5. Legal risks: Relevant legal changes lead to a contract that is not in conformity with local
laws, so that the contract cannot be performed, or contractual terms are omitted and unclear; or losses are
Note on the risk
caused to the Company due to the counter-party violating relevant laws and regulations, and thus the
analysis and
contract cannot be performed as required. Measures: The Company and its wholly-controlled subsidiaries
control measures
avoid speculation and arbitrage when trading financial derivatives, so that strict risk control will be
for derivatives
employed during the execution of contracts concerning financial derivatives trading. 1. The Company
holding during the
strictly abides by prudent investment principles, selects prudent investment types, and makes investments
reporting period
within the amount approved by the Board of Directors. 2. The Company carefully selects counter-parties for
(including but not
trading, and only trades derivatives with financial institutions featuring robust operations, sound reputation
limited to market
and business license for financial derivative trading. The Company may resort to external professional
risks, liquidity
investment and legal service institutions if necessary to provide consulting services for the Company’s
risks, credit risks,
financial derivative trading, as well as scientific and precise investment strategies and suggestions. 3. The
operational risks
Company has formulated the Management Rules for Securities Investment and Derivative Trading, setting
and legal risks)
detailed rules on the management, supervision and information closure related to the Company’s derivative
trading principles, scope, decision-making authority and capital use, which can effectively prevent
investment risks. Besides, the Company will strictly implement related management rules, assign special
personnel to follow up on the progress of financial derivative trading. For instance, relevant measures shall
be taken in time to control investment risks if there are risks that may affect the Company’s capital safety
The Company’s audit department is in charge of monitoring and checking the execution of financial
derivative trading and reporting to the Audit Committee of the Board of Directors. 4. The Company’s audit
department is in charge of monitoring and checking the execution of financial derivative trading and
reporting to the Audit Committee of the Board of Directors.
In case of
changing market
prices or fair
values of invested
derivatives during
the reporting
period, the
Please refer to “Disclosure of fair value” in the “Financial Report” for details when the derivatives are
analysis of the
measured at fair value on the market.
derivatives’ fair
values shall
disclose the
specific methods
adopted, relevant
assumptions and
parameter
54
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
settings.
Litigation (if
N/A
applicable)
Date of
announcement of
the Board of
Directors on August 16, 2023
derivatives
investment
approval (if any)
2) Derivatives investment for speculation during the reporting period
□ Applicable N/A
No such case during the reporting period.
5. Use of raised funds
□ Applicable N/A
No such case during the reporting period.
VII. Major Assets and Equity Sales
1. Major assets sales
□ Applicable N/A
No such case during the reporting period.
2. Major equity sales
□ Applicable N/A
VIII. Analysis of Controlling and Shareholding Companies
Applicable □ N/A
Main subsidiaries and the shareholding companies that have an impact on the Company’s net profit of more than 10%
Unit: yuan
Company Company Main Registered Operating Operating
Total assets Net assets Net profits
name type business capital revenue Profits
Production
and
manageme
Hangzhou
nt of
Zhongmei
Traditional
Huadong 872,308,13 16,759,828, 11,280,159, 6,573,045,4 1,567,312,6 1,328,598,0
Subsidiary Chinese
Pharmaceut 0 793.00 533.95 40.32 15.73 14.00
and
ical Co.,
Western
Ltd.
raw
medicines
and
55
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
preparation
s, and
health care
products
Acquisition and disposal of subsidiaries during the reporting period
Applicable □ N/A
Methods of acquisition and disposal of Impact on the overall production,
Company name
subsidiaries during the reporting period operation and performance
Shaanxi Bohua (Weinan) Pharmaceutical
Newly established Business expansion
Co., Ltd.
Sinclair (Hangzhou) Supply Chain Business expansion for aesthetic
Newly established
Management Co., Ltd. medicine products
Information on major shareholding companies
IX Structured Entities Controlled by the Company
□ Applicable N/A
X. Risks and Countermeasures
1. Change of industry policy and production operation risks
The pharmaceutical industry is a strategic industry supported and developed in China, which is
closely related to people’s health and life safety. Being highly competitive and innovative, it needs
to constantly adapt to market changes and policy adjustments. In recent years, the pharmaceutical
industry has been gradually standardized, normalized and systematized as such policies as volume-
based procurement and medical insurance negotiation are constantly advanced. In the meantime, such
external factors as geopolitics and macroeconomic policies also disturb enterprise management and
market conditions, posing new challenges to the production cost and profitability of the
pharmaceutical industry. Besides, there is a risk of price reduction of new medicines.
Countermeasures: The Company has always paid great attention to national policies and
industrial development, with corresponding adjustments made when necessary. In terms of R&D, the
Company continues to increase its R&D input and improves its competitiveness and potential for
future development by enriching product lines in core therapeutic fields. While maintaining its stable
operation, the Company actively expands the aesthetic medicine and industrial microbiology fields
to create new growth points. In addition, the Company also reduces its production and operation risks
through cost reduction, efficiency improvement, lean management, or by other means.
2. Risk in new medicine R&D
56
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
The R&D in the pharmaceutical industry features high investment, long cycle and high risk.
Generally, it takes a long time for a new product to be launched from R&D to pre-clinical research,
clinical trials, application for registration, production approval, commercialization and etc. The R&D
progress is affected by such factors as national policies, market factors, and regulatory approval. In
addition, the R&D of innovative medicines needs excellent R&D personnel with high education level.
The investment of manpower and early R&D expenses will put some pressure on the Company to
achieve its current business objectives. Meanwhile, new medicines will be tested by the market
demands after launching and may face such risks as price reduction, which may result in return on
R&D investment that is less than expected.
Countermeasures: The Company focuses on its core therapeutic fields, continuously improves
its capacity in independent R&D, keeps enriching and optimizing its product lines through
independent R&D + introduction, and fosters the R&D ecology unique to Huadong Medicine, with
featured R&D matrices formed in the fields of oncology, endocrinology and autoimmunity. The
Company will continue to optimize its innovation mechanism, constantly improve scientific research,
evaluation and decision-making system for new medicines, and strengthen close partnerships with
well-known R&D institutions in and out of China. In the meantime, the Company inputs more to
introduce high-level scientific research talents, enhances training and incentives for internal core
technical staff, and endeavors to foster a high-level innovative R&D team that supports the complete
cycle of innovative medicine R&D.
3. Risk in investment & merger and goodwill impairment
Foreign investment is one of the important ways of enterprise development. In recent years, the
Company has continued to invest and do mergers and acquisitions in such fields as innovative
medicines, aesthetic medicine and industrial microbiology, so as to form goodwill and realize the
innovation and transformation development strategy. If the company acquired in the future faces the
risk of performance fluctuation, there may be a risk of goodwill impairment, adversely affecting the
Company’s current operation performance. At the same time, the post-investment management and
business integration of the target company also put forward higher requirements for the management
of the Company.
Countermeasures: The Company will strive to comprehensively improve our capabilities in
overall planning, management structure, financial management, overall operation and governance,
57
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
and business integration; strengthen the resource sharing and synergy of acquired subsidiaries;
regularly test the impairment of goodwill; and enhance comprehensive, scientific and timely post-
investment management.
4. Risk in exchange rate fluctuation
The Company is advancing its international development. With many overseas subsidiaries, the
Company increasingly develops international cooperation and exchanges, expands the sales network
of aesthetic medicine in the world, and accelerates the development of its industrial microbiology
segment in recent years, raising the proportion of foreign currency settlement business. The
fluctuation in exchange rate will affect the price of the Company’s export products, cause exchange
gains and losses to the Company, and increase the operating costs, thus affecting the Company’s
assets, liabilities and income, further its operation ability, debt repayment ability and profitability.
Countermeasures: the Company will pay close attention to the fluctuation in exchange rate,
adjust our business countermeasures in time according to its own situation, and resolve the adverse
effects; develop the exchange risk awareness, and improve the foreign exchange risk management
system; strengthen the training of financial personnel’s professional skills and risk awareness,
enhance the awareness of risk avoidance, and make good use of financial means to avoid exchange
rate risks.
XI. Implementation of the Action Plan of “Improvement of Quality and Return”
Whether the Company discloses its Action Plan of “Improvement of Quality and Return”
Yes □No
The Company has formulated the Action Plan of “Improvement of Quality and Return” in a bid
to implement the guiding principles of “Activating the capital market and boosting investors’
confidence” put forward by the Political Bureau of the CPC Central Committee and “Vigorously
improving the quality and investment value of listed companies, taking more powerful and effective
measures to stabilize the market and confidence” pointed out at the executive meeting of the State
Council, safeguard the interests of all shareholders of the Company, continuously enhance the
Company’s core competitiveness and investment values, and realize high-quality, high-efficiency and
sustainable development. Please refer to the Announcement on Advancing the Implementation of the
Action Plan of “Improvement of Quality and Return” (Announcement No.: 2024-011) disclosed by
the Company on Cninfo (http://www.cninfo.com) on March 9, 2024 for details.
58
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
The Company implements the Action Plan of “Improvement of Quality and Return”, focuses on
four business segments of pharmaceutical industry, pharmaceutical business, aesthetic medicine and
industrial microbiology, and continues to advance the innovation and transformation strategy, fully
stimulates the innovation vitality, improves the operating quality and efficiency, and promotes the its
sustainable and high-quality development.
During the reporting period, the Company’s R&D investment in the pharmaceutical industry
(excluding equity investment) was 1.110 billion yuan, up 10.34% year on year. Among them, direct
R&D expenditure was 761 million yuan, up 14.04% year on year, which accounts for 11.58% of the
operating revenue of the pharmaceutical industry. Over the years, the Company applied for more than
1,500 patents in and out of China, including 500 authorized invention patents. During the reporting
period, application and renewal of patents of the Company progressed smoothly, with a total of 87
patent applications submitted, including 64 patents for invention. A total of 56 patents were granted.
The Company conducted information disclosure and investor exchange activities based on the
needs of investors, enhanced its transparency, listened to and drew opinions and suggestions of
investors, continuously improved corporate governance, strengthened internal control and risk
prevention, and improved the level of standardized operation. The Company further standardized the
operation of the mechanism comprised of shareholders’ meeting, board of directors, board of
supervisors and senior managers, gave full play to the roles of special committees, independent
directors and professional organizations of the board of directors, continuously improved the
decision-making level, and safeguarded the interests of the Company and stakeholders.
The Company has always kept the philosophy of returning investors in mind and operated stably.
In H1 2024, the Company achieved a total operating revenue of 20.965 billion yuan, up 2.84% year
on year (up 2.93% year on year in the first quarter), the net profit attributable to shareholders of listed
companies of 1.696 billion yuan, up 18.29% year on year (up 14.18% year on year in the first quarter),
and the net profit attributable to shareholders of listed companies after deducting non-recurring
gains/losses of 1.625 billion yuan, up 13.85% year on year (up 10.66 year on year in the first quarter).
In May 2024, the Company implemented the profit distribution in 2023, with a total cash
dividend of 1.018 billion yuan. Moreover, the Company will also implement the profit distribution in
H1 2024, with a total cash dividend of 614 million yuan.
59
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
XII. Registration Form of Receptions, including Research, Communication and Interviews,
undertaken during the Reporting Period
60
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
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
Record of Investor
NCI, Citic
Relations Activities
On-site Securities,
Conference Investor on January 9 to 10,
January 9 to survey and Institutio Guotai
Room of the communicati 2024 presented on
10, 2024 online n Junan
Company on the websites of
meeting Securities,
irm.cninfo.com.cn
etc.
and cninfo.com.cn
for details.
Please refer to the
Haitong
Record of Investor
Securities,
Relations Activities
Origin Asset
Conference Investor on January 16 to 17,
January 16 to On-site Institutio Managemen
Room of the communicati 2024 presented on
17, 2024 survey n t, SWS MU
Company on the websites of
Fund
irm.cninfo.com.cn
Managemen
and cninfo.com.cn
t, etc.
for details.
Exchange Please refer to the
Soochow
Meeting for Record of Investor
Securities,
Launching of Relations Activities
Institutio Zhong Ou
Conference Saikaize on March 4, 2024
March 4, Online n and AMC,
Room of the between presented on the
2024 meeting individu Perseveranc
Company Huadong websites of
al e Asset
Medicine and irm.cninfo.com.cn
Managemen
CARsgen and cninfo.com.cn
t, etc.
Therapeutics for details.
Please refer to the
CICC, Record of Investor
2023 Annual
China Relations Activities
Institutio Performance
Conference Securities on April 18, 2024
April 18, Online n and Exchange
Room of the Cooperation presented on the
2024 meeting individu Meeting of
Company , TF websites of
al Huadong
Securities, irm.cninfo.com.cn
Medicine
etc. and cninfo.com.cn
for details.
Please refer to the
Record of Investor
Citic 2024 Q1
Relations Activities
Institutio Securities, Performance
Conference on April 26, 2024
April 26, Online n and China Exchange
Room of the presented on the
2024 meeting individu Galaxy Meeting of
Company websites of
al Securities, Huadong
irm.cninfo.com.cn
CICC, etc. Medicine
and cninfo.com.cn
for details.
61
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Please refer to the
2023 Annual Record of Investor
and 2024 Q1 Relations Activities
Conference Online on April 30, 2024
April 30, Online Individu Individual
Room of the Performance presented on the
2024 meeting al investors
Company Meeting of websites of
Huadong irm.cninfo.com.cn
Medicine and cninfo.com.cn
for details.
Please refer to the
Record of Investor
Relations Activities
Activities of
Citic on May 8, 2024
Institutio Investors’
Conference Securities, (Activities of
On-site n and Reception
May 8, 2024 Room of the CICC, Investors’ Reception
survey individu Day of
Company Harvest Day) presented on
al Huadong
Fund, etc. the websites of
Medicine
irm.cninfo.com.cn
and cninfo.com.cn
for details.
62
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Section IV. Corporate Governance
I. Annual and extraordinary general meetings held during the reporting period
1. General meetings in the reporting period
Proportion of
Sessions Meeting type Convening date Disclosure date Meeting resolution
investors present
Announcement of
the Resolutions of
2023 Annual
General Meeting
(Announcement
No.: 2024-043) on
2023 Annual Annual general
62.86% May 8, 2024 May 8, 2024 China Securities
General Meeting meeting
Journal, Securities
Times, Shanghai
Securities News,
and Cninfo
(www.cninfo.com.
cn)
Announcement of
the Resolutions of
2024 First
Extraordinary
General Meeting
(Announcement
2024 First
Extraordinary No.: 2024-056) on
Extraordinary 63.36% June 18, 2024 June 18, 2024
general meeting China Securities
General Meeting
Journal, Securities
Times, Shanghai
Securities News,
and Cninfo
(www.cninfo.com.
cn)
2. Extraordinary general meetings convened at the request of preference shareholders with resumed voting
rights:
□ Applicable N/A
II. Change of directors, supervisors and senior managers of the Company
Applicable □ N/A
Name Title Type Date Reasons
Additional Employee
Xia Jing Employee Supervisor Elected May 16, 2024
Supervisor
Zhu Yinhua Employee Supervisor Retired May 16, 2024 Voluntary Resignation
63
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
III. Profit distribution and share capital increase by capital reserve conversion during the
current reporting period
Applicable □ N/A
Number of bonus shares every 10 shares (share) 0
Dividends paid every 10 shares (yuan) (tax included) 3.50
Share capital base of the distribution plan (share) 1,754,262,548
Cash dividends (yuan) (tax included) 613,991,891.80
Cash dividends by other means (such as share repurchase)
0.00
(yuan)
Total cash dividends (including those by other means) (yuan) 613,991,891.80
Distributable profit (yuan) 6,833,221,740.55
Proportion of total cash dividends (including those by other
100%
means) in the total profit distributed
Current cash dividends
If the Company is in a mature stage of development and has significant capital expenditure arrangements, the proportion of cash
dividends in the current profit distribution should be at least 40%.
Details of the profit distribution plan or the plan for capital stock increase by capital reserve conversion
The Company’s Profit Distribution Plan for H1 2024 is as follows: On the basis of 1,754,262,548 shares that are obtained after
removing 65,000 restricted shares that have not been repurchased and canceled from the total share capital of 1,754,327,548
shares of the Company, 3.50 yuan (including tax) of cash dividends per ten common shares will be distributed to all shareholders.
No bonus shares will be distributed, and no reserved funds can be converted as the share capital. The total cash dividend will be
613,991,891.80 yuan (including tax), and the remaining undistributed profits will be carried forward to future annual distribution.
If the base shares of the Company change before the implementation of this profit distribution plan, the distribution ratio per share
will be adjusted while the total amount to be distributed keeps unchanged.
The Company is handling procedures for the repurchase and cancellation of 65,000 restricted shares involved in the 2022
Restricted Stock Incentive Plan. As of the date of the Report, the repurchase and cancellation are not completed, which are
expected to be completed before the implementation of the Profit Distribution Plan for H1 2024. Please refer to subsequent
announcements of the Company for details.
This profit distribution plan integrates the Company’s current operating situation and long-term development, fully considers the
reasonable demands and return on investment of investors, matches the Company’s operating performance and future
development, and conforms to the Company’s development plan.
This profit distribution plan complies with the provisions and requirements of the Company Law of People’s Republic of China,
the CSRC Notice on Further Implementing Matters Related to Cash Dividend Distribution of Listed Companies, the Regulatory
Guidelines for Listed Companies No.3 - Distribution of Cash Dividends of Listed Companies and the Articles of Association. The
interim dividend plan is legal, compliant, and reasonable.
This profit distribution plan is in line with the Company’s proposal on cash dividends in 2023 and 2024 received by China Grand
Enterprises, Inc., the controlling shareholder of the Company, and Hangzhou Huadong Medicine Group Co., Ltd., the shareholder
holding more than 5% of the shares, on February 18, 2024 (please refer to the Announcement on Receiving Shareholders’ Cash
Dividends in 2023 and 2024 (Announcement No.: 2024-007) disclosed by the Company on Cninfo (http://www.cninfo.com.cn) on
February 18, 2024 for details).
The 2023 Annual General Meeting convened on May 8, 2024 deliberated on and approved the Proposal on Applying to the
General Meeting for Authorizing the Board of Directors to Prepare the Interim Dividend Distribution in 2024. The Board of
Directors agreed to authorize the Board of Directors to prepare specific dividend distribution plan according to the resolution of
the General Meeting if conditions for profit distribution are satisfied. Preconditions for interim dividend distribution in 2024 are as
follows: (1) The net profit attributable to shareholders of listed companies in consolidated financial statements of the Company in
the current period witness and maintain stable growth; (2) The Company’s cash flow can meet the needs of normal operation and
sustainable development. The upper limit of the interim dividend is 50% of the net profit attributable to shareholders of listed
companies in the corresponding period, and the lower limit is 500 million yuan (including tax). The Profit Distribution Plan for
H1 2024 falls within the scope authorized by the resolution of the General Meeting to the Board of Directors, and will not be
submitted to the General Meeting for deliberation and approval.
64
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
IV. Implementation of the Company’s equity incentive scheme, employee stock ownership
plan or other employee incentive measures
Applicable □ N/A
1. Equity incentive
(1) On August 8, 2022, the Company convened the second meeting of the 10th Board of
Directors and the 2nd meeting of the 10th Board of Supervisors, deliberating on and passing the
Proposal on the Company’s 2022 Restricted Share Incentive Scheme (Draft) and Its Summary, the
Proposal on Management Rules for the Implementation and Assessment of the Company’s 2022
Restricted Share Incentive Scheme, the Proposal on the Management Rules of the Company’s 2022
Restricted Share Incentive Scheme, and the Proposal on Applying to the General Meeting for
Authorizing the Board of Directors to Handle Equity Incentive-related Matters. Independent directors
expressed their independent opinions on whether this incentive scheme is conducive to the sustainable
development of the Company and whether there is any situation that harms the interests of the
Company and all shareholders. See the relevant announcement of the Company published on Cninfo
(http://www.cninfo.com.cn) on August 10, 2022 for details.
(2) On August 10, 2022, the Company disclosed the Announcement on Independent Directors
Publicly Soliciting Proxy Voting Rights on Cninfo (www.cninfo.com.cn). Mr. Wang Ruwei,
Independent Director of the Company, commissioned by other independent directors publicly
solicited proxy voting rights from all shareholders of the Company on proposals related to the 2022
Restricted Share Incentive Scheme reviewed on the 1st extraordinary general meeting in 2022 that
was set to be convened on August 31, 2022.
(3) The Company announced publicly the list of the first batch of employees receiving the
incentive from the restricted share incentive scheme on the Company’s intra-net from August 15 to
25, 2022, which lasted for 10 days in total. As of the end of the announcement on August 25, 2022,
the Board of Supervisors did not receive any objection against these employees. On August 25, 2022,
the Company convened a session of the Board of Supervisors, during which the Verification Opinions
and Announcement Note on the List of the First Batch of Employees Receiving the Incentive from the
Company’s 2022 Restricted Share Incentive Scheme was reviewed and approved. On the same day,
the Company disclosed the Board of Supervisors’ Verification Opinions and Announcement Note on
the List of the First Batch of Employees Receiving the Incentive from the Company’s 2022 Restricted
Share Incentive Scheme and a related announcement on www.cninfo.com.cn.
(4) On August 31, 2022, the Company convened the first extraordinary general meeting in 2022.
During the meeting, the Proposal on the Company’s 2022 Restricted Share Incentive Scheme (Draft)
65
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
and Its Summary, the Proposal on Management Rules for the Implementation and Assessment of the
Company’s 2022 Restricted Share Incentive Scheme, the Proposal on the Management Rules of the
Company’s 2022 Restricted Share Incentive Scheme, and the Proposal on Applying to the General
Meeting for Authorizing the Board of Directors to Handle Equity Incentive-related Matters were
deliberated on and approved. On the same day, the Company disclosed on www.cninfo.com.cn the
Self-Inspection Report on Insiders and Incentive Receivers of the 2022 Restricted Share Incentive
Scheme Purchasing and Selling the Company’s Shares and a related announcement. The incentive
scheme was approved in the Company’s first extraordinary general meeting in 2022, and the Board
of Directors was authorized to implement the restricted share incentive scheme and handle relevant
matters according to laws and regulations.
(5) On October 27, 2022, the Company convened the fourth session of the tenth Board of
Directors and the fifth session of the tenth Board of Supervisors. During these two sessions, the
Proposal on Adjustments of the Company’s 2022 Restricted Share Incentive Scheme, and the Proposal
on Granting Restricted Shares to the First Batch of Employees Receiving Incentive from the 2022
Restricted Share Incentive Scheme were deliberated on and approved. The Company’s Board of
Directors believed that the conditions of the incentive scheme for granting restricted shares were
fulfilled, and the Board of Supervisors re-verified the list of incentive receivers on the first grant date,
and expressed opinions on the grant. The Company’s independent directors agreed on the above
proposals. Lawyers and independent financial advisers prepared related reports. On October 28, 2022,
the Company disclosed a related announcement on www.cninfo.com.cn.
(6) On November 9, 2022, the Company disclosed the Announcement on Completion of
Registration of the First Grant of the 2022 Restricted Share Incentive Scheme. The Company
completed the registration of the first grant of the restricted share incentive scheme in 2022, and the
listing date of the granted restricted shares was November 15, 2022.
(7) On July 12, 2023, the Company convened the twelfth session of the tenth Board of Directors
and the eighth session of the tenth Board of Supervisors. During these two sessions, the Proposal on
Adjustments of the Granted Price of the Company’s 2022 Restricted Share Incentive Scheme, and the
Proposal on Granting Reserved Restricted Shares to the First Batch of Employees Receiving Incentive
from the 2022 Restricted Share Incentive Scheme were deliberated on and approved. The Company’s
Board of Directors believed that reserved conditions of the incentive scheme for granting restricted
shares were fulfilled, and the Board of Supervisors re-verified the list of incentive receivers on the
date of granting reserved shares, and expressed opinions on the grant. The Company’s independent
directors agreed on the above proposals. Lawyers and independent financial advisers prepared related
reports. On the same day, the Company disclosed a related announcement on www.cninfo.com.cn.
66
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
(8) The Company announced publicly the list of this batch of employees receiving the incentive
from the restricted share incentive scheme on the Company’s OA system from July 13 to 23, 2023,
which lasted for 10 days in total. As of the end of the announcement on July 23, 2023, the Board of
Supervisors did not receive any objection against these employees. On July 26, 2023, the Company
convened a session of the Board of Supervisors, during which the Verification Opinions and
Announcement Note on the List of Employees Receiving the Reserved Restricted Share Incentive from
the Company’s 2022 Restricted Share Incentive Scheme was reviewed and approved. On the same
day, the Company disclosed the Board of Supervisors’ Verification Opinions and Announcement Note
on the List of Employees Receiving the Reserved Restricted Share Incentive from the Company’s 2022
Restricted Share Incentive Scheme and a related announcement on www.cninfo.com.cn.
(9) On September 27, 2023, the Company disclosed the Announcement on Completion of
Registration of the Reserved Grant of 2022 Restricted Share Incentive Scheme. The Company
completed the registration of the reserved grant of the restricted share incentive scheme in 2022, and
the listing date of the granted restricted shares was September 28, 2023.
(10) On November 21, 2023, the Company convened the 18th session of the 10th Board of
Directors and the 12th session of the 10th Board of Supervisors. During these two sessions, the
Proposal on Achievement of the Release of Restriction Conditions during the First Restriction Period
of Restricted Shares Granted for the First Time from the 2022 Restricted Share Incentive Scheme, the
Proposal on Adjusting the Repurchase Price of Shares under the 2022 Restricted Share Incentive
Scheme, and the Proposal on Repurchase and Cancellation of Some Restricted Shares were
deliberated on and approved. The Board of Directors believed that the Company attained conditions
for the unlock of restriction conditions during the first restriction period of restricted shares granted
for the first time from the 2022 Restricted Share Incentive Scheme. According to the authorization of
the Company’s first extraordinary general meeting in 2022, the Board of Directors agreed that the
Company can handle the procedures for releasing restricted sales of 1,220,940 restricted shares with
the restricted sales period for 108 incentive subjects. The Board of Directors also agreed to repurchase
and cancel 97,800 shares of restricted shares that have been granted but have not been unlocked for
four incentive subjects who are no longer eligible for incentives due to resignation and two incentive
subjects who fail to satisfy the standards due to personal performance during the first restricted sales
releasing period. The Company’s independent directors issued independent opinions on related
matters, and the Company’s Board of Supervisors issued verification opinions on related matters.
Lawyers and independent financial advisers prepared related reports. On the same day, the Company
disclosed a related announcement on www.cninfo.com.cn.
67
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
(11) On December 1, 2023, the Company disclosed the Hint on Circulation of Restricted Shares
Released during the First Restriction Release Period of Restricted Shares Granted for the First Time
from the 2022 Restricted Share Incentive Scheme. The date of circulation of restricted shares released
during the first restriction release period of restricted shares granted for the first time from the 2022
Restricted Share Incentive Scheme is December 5, 2023.
(12) On December 8, 2023, the Company convened the second extraordinary general meeting in
2023, deliberated on and approved the Proposal on Repurchase and Cancellation of Some Restricted
Shares and the Proposal on Altering the Registered Capital and Amending the Articles of Association.
On the same day, the Company disclosed the Announcement on Repurchase and Cancellation of Some
Restricted Shares to Reduce Registered Capital and Notify the Creditors. As of January 24, 2024, the
benchmark date for capital verification, i.e. within forty-five days from the date when the Company
announced the reduction of capital, no creditor asked the Company to pay off its debts or provide
corresponding guarantees.
(13) On March 28, 2024, the Company disclosed the Announcement on Completion of
Repurchase and Cancellation of Some Restricted Shares. On March 26, 2024, the Company
completed the procedures for the repurchase and cancellation of 97,800 restricted shares in Shenzhen
Branch of China Securities Depository and Clearing Co., Ltd.
(14) On May 30, 2024, the Company convened the twenty-fourth session of the tenth Board of
Directors and the sixteenth session of the tenth Board of Supervisors. During these two sessions, the
Proposal on Adjusting the Repurchase Price in 2022 Restricted Share Incentive Scheme and Proposal
on Repurchase and Cancellation of Some Restricted Shares were deliberated on and approved. The
Board of Directors agreed to repurchase and cancel 65,000 restricted shares that have been granted
but have not been unlocked for five incentive subjects of firstly-granted or reserved shares who are
no longer eligible for incentives due to resignation. The Company’s Board of Supervisors issued
verification opinions on related matters. Lawyers and independent financial advisers prepared related
reports. On the same day, the Company disclosed a related announcement on www.cninfo.com.cn.
(15) On June 18, 2024, the Company convened the first extraordinary general meeting in 2024,
deliberated on and approved the Proposal on Repurchase and Cancellation of Some Restricted Shares
and the Proposal on Increasing the Business Scope, Changing Registered Capital and Amending the
Articles of Association. On the same day, the Company disclosed the Announcement on Repurchase
and Cancellation of Some Restricted Shares to Reduce Registered Capital and Notify the Creditors.
2. Implementation of the employee stock ownership plan
□ Applicable N/A
68
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
3. Other employee incentives
□ Applicable N/A
69
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Section V. Environmental and Social Responsibilities
I. Major Environmental Protection Issues
Do the listed company and its subsidiaries belong to the key pollutant discharge units announced by the environmental protection
department
Yes □No
Relevant policies and industry standards for environmental protection
Environmental Protection Law of the People’s Republic of China; Law of the People’s Republic of China on Water Pollution
Prevention and Control; Law of the People’s Republic of China on Atmospheric Pollution Prevention and Control; Law of the People’s
Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste; Law of the People’s Republic of China
on the Prevention and Control of Ambient Noise Pollution; Law of the People’s Republic of China on the Prevention and Control of
Soil Pollution; Emission Standard of Air Pollutants for Pharmaceutical Industry; Discharge Standard of Pollutants for Bio-
pharmaceutical Industry; Regulations on the Administration of Permitting of Pollutant Discharges; Standard for Fugitive Emission of
Volatile Organic Compounds; Emission Standards for Odor Pollutants; Wastewater Quality Standards for Discharge to Municipal
Sewers; Emission Standard for Industrial Enterprises Noise at Boundary; Standard for Pollution Control on the Non-hazardous
Industrial Solid Waste Storage and Landfill; Standard for Pollution Control on Hazardous Waste Storage; Technical Specification for
Setting Identification Signs of Hazardous Waste; Integrated Emission Standard of Air Pollutants; Emission Standard of Volatile
Organic Compounds; National Catalogue of Hazardous Wastes; Integrated Wastewater Discharge Standard; Discharge Standard of
Water Pollutants for Pharmaceutical Industry - Chemical Synthesis Products Category; Detailed Annotation of Integrated Emission
Standard of Air Pollutants; Technical guidelines for Environmental Impact Assessment - Atmospheric Environment; Environmental
Quality Standard for Surface Water; Environmental Quality Standards for Noise; Technical Methods for Making Local Emission
Standards of Air Pollutants; Technical Specification for Application and Issuance of Pollutant Permit - General Programme; General
Specifications of Engineering and Technology for Hazardous Waste Disposal; Standard for Groundwater Quality; Soil Environmental
Quality - Risk Control Standard for Soil Contamination of Development Land (Trial); Water Quality Standard for Sewage Treatment
Plant in South of Wuhu City; Integrated Wastewater Discharge Standard of Yellow River Basin in Shaanxi Province; Discharge
Standard of Pollutants for Bio-pharmaceutical Industry of Zhejiang Province; and Emission Standard of Air Pollutants for
Pharmaceutical Industry of Zhejiang Province.
Information on environmental protection-related administrative licensing
Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd. re-applied for the Pollutant Emission Permit on April 25, 2024, which is
valid until April 24, 2029.
Hangzhou Zhongmei Huadong Pharmaceutical Jiangdong Co., Ltd. re-applied for the Pollutant Emission Permit on March 4, 2023,
which is valid until March 3, 2028.
Jiangsu Joyang Laboratories obtained the Pollutant Emission Permit according to the environmental protection requirements on
February 28, 2022, which is valid until February 27, 2027.
Huadong Medicine (Xi’an) Bohua Pharmaceutical Co., Ltd. re-applied for the Pollutant Emission Permit on March 29, 2024,
which is valid until March 28, 2029. In addition, Huadong Medicine (Xi’an) Bohua Pharmaceutical Co., Ltd. completed the
environment acceptance upon completion of 50t/a Indobufen Product Transfer Project in March 2024.
Wuhu Huaren Science and Technology Co., Ltd. obtained the Pollutant Emission Permit on February 26, 2024, which is valid
until February 25, 2029. In addition, the Series Innovative Medicine and Biological Reagent API R&D Center Project of Wuhu Huaren
Science and Technology Co., Ltd. obtained the EIA approval on July 16, 2024.
70
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Industrial emission standards and specific situation of pollutant emissions involved in production and business activities
Category Name of
Designat Executiv
of main main Discharg
ion of Quantity Distribut e Approve Excessiv
and and e Total
Compan Discharg of ion of pollutant d total e
particula particula concentr discharg
y or e pattern discharg discharg discharg discharg discharg
r r ation/int es
subsidiar e outlet e outlet e es e
pollutant pollutant ensity
y standard
s s
Hangzho
u Main
Zhongm Intermitt Entrance
ei Water ent Mogans
pH value 1 6.97 6-9 / / None
Huadong pollutant discharg han
Pharmac e Road,
eutical No.866
Co., Ltd.
Hangzho
u Main 4.92
Zhongm Intermitt Entrance tons
ei Water ent Mogans 21.11mg (dischar
COD 1 500mg/l 33.3 t/a None
Huadong pollutant discharg han /l ged to
Pharmac e Road, environ
eutical No.866 ment)
Co., Ltd.
Hangzho
u Main 0.08
Zhongm Intermitt Entrance tons
Ammoni
ei Water ent Mogans (dischar
a- 1 1.90mg/l 35mg/l 2.38 t/a None
Huadong pollutant discharg han ged to
nitrogen
Pharmac e Road, environ
eutical No.866 ment)
Co., Ltd.
Hangzho Within
Complia
u the
nt
Zhongm factory
Hazardo disposal
ei Solid at 528.145
us solid by 3 / / / None
Huadong pollutant Mogans tons
waste entrusted
Pharmac han
qualified
eutical Road,
units
Co., Ltd. No.866
Hangzho Within
Complia
u the
nt
Zhongm factory
General disposal
ei Solid at 11.24
solid by 2 / / / None
Huadong pollutant Mogans tons
waste entrusted
Pharmac han
qualified
eutical Road,
units
Co., Ltd. No.866
Hangzho
u
Roof of
Zhongm Organize
Boiler
ei Air Nitric d 27.5mg/ 50mg/m 1.16
1 Room at 17.7 t/a None
Huadong pollutant oxide discharg m3 3 tons
Building
Pharmac e
25
eutical
Co., Ltd.
Hangzho Air Sulfur Organize 1 Roof of 3.5mg/m 20mg/m 0.15 / None
71
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
3 3
u pollutant dioxide d Boiler tons
Zhongm discharg Room at
ei e Building
Huadong 25
Pharmac
eutical
Co., Ltd.
Hangzho
u
Roof of
Zhongm Organize
Boiler
ei Air Dust and d 1.15mg/ 10mg/m 0.048
1 Room at / None
Huadong pollutant fume discharg m3 3 tons
Building
Pharmac e
25
eutical
Co., Ltd.
Hangzho
u
Zhongm 104.378 141.455
ei Continu 8 tons tons
Phase II
Huadong Wastewa ous 100- (Nanotu (dischar
COD 1 Factory 500mg/L None
Pharmac ter discharg 350mg/L be ged to
Area
eutical e discharg environ
Jiangdon e) ment)
g Co.,
Ltd.
Hangzho
u
Zhongm 0.9984 14.146
ei Continu tons tons
Ammoni Phase II
Huadong Wastewa ous 0- (Nanotu (dischar
a- 1 Factory 35mg/L None
Pharmac ter discharg 25mg/L be ged to
nitrogen Area
eutical e discharg environ
Jiangdon e) ment)
g Co.,
Ltd.
Hangzho
u
Zhongm
ei Non- Organize
Phase II
Huadong Exhaust methane d 0- 0.5415 4.877
1 Factory 60mg/L None
Pharmac gas hydrocar discharg 30mg/L tons tons
Area
eutical bon e
Jiangdon
g Co.,
Ltd.
Intermitt No. 9,
Joyang
Water ent Haidu
Laborato pH value 1 7.8 6-9 / / None
pollutant discharg North
ries
e Road
Intermitt No. 9,
Joyang
Water ent Haidu 8.12 22.401
Laborato COD 1 176mg/l 500mg/l None
pollutant discharg North tons t/a
ries
e Road
Intermitt No. 9,
Joyang Ammoni
Water ent Haidu 0.099
Laborato a- 1 2.15mg/l 35mg/l 1.156 t/a None
pollutant discharg North tons
ries nitrogen
e Road
72
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Intermitt No. 9,
Joyang
Water Total ent Haidu 0.32
Laborato 1 6.95mg/l 45mg/l 1.486 t/a None
pollutant nitrogen discharg North tons
ries
e Road
Intermitt No. 9,
Joyang Total
Water ent Haidu 0.078
Laborato phospho 1 1.69mg/l 8mg/l 0.164 t/a None
pollutant discharg North tons
ries rus
e Road
Complia
nt
No. 9,
Joyang Hazardo disposal
Solid Haidu 1026.9 3148.7
Laborato us by / / / None
pollutant North tons t/a
ries wastes entrusted
Road
qualified
units
Non- Organize No. 9, 2.28
Joyang
Air methane d Haidu 11.58mg 60mg/N tons/ 42.7409
Laborato 1 None
pollutant hydrocar discharg North /m3 m3 semi- t/a
ries
bon e Road annual
Beside
Huadong
National
Medicin
Intermitt Highway
e (Xi’an)
Water ent 310,
Bohua pH value 1 7.34 6-9 / / None
pollutant discharg Liuye
Pharmac
e River,
eutical
Huayin
Co., Ltd.
City
Beside
Huadong
National
Medicin
Intermitt Highway
e (Xi’an)
Water ent 310, 0.29642
Bohua COD 1 18.5mg/l 50mg/l 3 tons None
pollutant discharg Liuye 6 tons
Pharmac
e River,
eutical
Huayin
Co., Ltd.
City
Beside
Huadong
National
Medicin
Intermitt Highway
e (Xi’an) Ammoni
Water ent 310, 0.00454 0.48
Bohua a- 1 0.44mg/l 8mg/l None
pollutant discharg Liuye 8 tons tons
Pharmac nitrogen
e River,
eutical
Huayin
Co., Ltd.
City
Beside
Huadong
National
Medicin
Intermitt Highway
e (Xi’an)
Water Total ent 310, 10.44mg 0.15455
Bohua 1 15mg/l / None
pollutant nitrogen discharg Liuye /l 2 tons
Pharmac
e River,
eutical
Huayin
Co., Ltd.
City
Huadong Complia
Medicin nt Within
Hazardo
e (Xi’an) Solid disposal the 422.092
us 3 / / / None
Bohua pollutant by Compan tons
wastes
Pharmac entrusted y
eutical qualified
73
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Co., Ltd. units
Huadong
Medicin
Volatile Organize
e (Xi’an)
Air organic d APIs 60mg/m
Bohua 1 / 3 / 0.388t/a None
pollutant compou discharg Plant 1
Pharmac
nd e
eutical
Co., Ltd.
Huadong
Medicin
Organize
e (Xi’an) Hydroge
Air d APIs 30mg/m
Bohua n 1 / 3 / / None
pollutant discharg Plant 1
Pharmac chloride
e
eutical
Co., Ltd.
Huadong
Medicin
Ammoni Organize
e (Xi’an)
Air a d APIs 20mg/m
Bohua 1 / 3 / / None
pollutant (ammoni discharg Plant 1
Pharmac
a gas) e
eutical
Co., Ltd.
Huadong
Medicin
Organize
e (Xi’an)
Air Sulfuric d APIs 45mg/m
Bohua 1 / 3 / / None
pollutant acid mist discharg Plant 1
Pharmac
e
eutical
Co., Ltd.
Huadong
Medicin
Organize
e (Xi’an) Hydroge
Air d APIs 30mg/m
Bohua n 1 / 3 / / None
pollutant discharg Plant 2
Pharmac chloride
e
eutical
Co., Ltd.
Huadong
Medicin
Non- Organize
e (Xi’an)
Air methane d APIs 60mg/m
Bohua 1 / 3 / / None
pollutant hydrocar discharg Plant 2
Pharmac
bon e
eutical
Co., Ltd.
Huadong
Medicin
Ammoni Organize
e (Xi’an)
Air a d APIs 20mg/m
Bohua 1 / 3 / / None
pollutant (ammoni discharg Plant 2
Pharmac
a gas) e
eutical
Co., Ltd.
Huadong
Medicin
Organize
e (Xi’an)
Air d APIs 20mg/m
Bohua PM 1 / 3 / / None
pollutant discharg Plant 2
Pharmac
e
eutical
Co., Ltd.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Huadong
Medicin
Ammoni Organize
e (Xi’an) Sewage
Air a d 20mg/m
Bohua 1 treatmen / 3 / / None
pollutant (ammoni discharg
Pharmac t station
a gas) e
eutical
Co., Ltd.
Huadong
Medicin
Organize
e (Xi’an) Sewage
Air Hydroge d
Bohua 1 treatmen / 5mg/m3 / / None
pollutant n sulfide discharg
Pharmac t station
e
eutical
Co., Ltd.
Huadong
Medicin
Non- Organize
e (Xi’an) Sewage
Air methane d 60mg/m
Bohua 1 treatmen / 3 / / None
pollutant hydrocar discharg
Pharmac t station
bon e
eutical
Co., Ltd.
Huadong
Medicin
Organize
e (Xi’an) Odor Sewage
Air d
Bohua concentr 1 treatmen / 6000 / / None
pollutant discharg
Pharmac ation t station
e
eutical
Co., Ltd.
Huadong
Medicin
Organize
e (Xi’an) Solid
Air d 20mg/m
Bohua PM 6 preparati / 3 / / None
pollutant discharg
Pharmac on plant
e
eutical
Co., Ltd.
Huadong
Medicin
Organize
e (Xi’an) Hydroge
Air d Pilot 30mg/m
Bohua n 1 / 3 / / None
pollutant discharg plant
Pharmac chloride
e
eutical
Co., Ltd.
Huadong
Medicin
Non- Organize
e (Xi’an)
Air methane d Pilot 60mg/m
Bohua 1 / 3 / / None
pollutant hydrocar discharg plant
Pharmac
bon e
eutical
Co., Ltd.
Wuhu
Huaren
Organize
Science Roof of
Air d 18.975m 60mg/m 0.55231
and NMHC 1 Building 5.4t/a None
pollutant discharg g/m3 3 7t
Technol A
e
ogy Co.,
Ltd.
Wuhu Air Methylb Organize 1 Roof of 0 20mg/m 0 0 None
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
3
Huaren pollutant enzene d Building
Science discharg A
and e
Technol
ogy Co.,
Ltd.
Wuhu
Huaren
Organize
Science Roof of
Air Methyl d 50mg/m
and 1 Building 0 3 0 0 None
pollutant alcohol discharg
Technol A
e
ogy Co.,
Ltd.
Wuhu
Huaren
Organize
Science Roof of
Air Dichloro d 40mg/m
and 1 Building 0 3 0 0 None
pollutant methane discharg
Technol A
e
ogy Co.,
Ltd.
Wuhu
Huaren
Organize
Science Roof of
Air Ethyl d 40mg/m
and 1 Building 0 3 0 0 None
pollutant acetate discharg
Technol A
e
ogy Co.,
Ltd.
Wuhu
Huaren
Organize
Science Roof of
Air d 40mg/m
and Acetone 1 Building 0 3 0 0 None
pollutant discharg
Technol A
e
ogy Co.,
Ltd.
Wuhu
Huaren
Organize
Science Roof of
Air Acetonit d 20mg/m
and 1 Building 0 3 0 0 None
pollutant rile discharg
Technol A
e
ogy Co.,
Ltd.
Wuhu
Huaren
Science Wastewa Sewage
Main 7.125mg 6-
and ter PH 1 main 0 0 None
outlet /m3 9mg/m3
Technol pollutant outlet
ogy Co.,
Ltd.
Wuhu
Huaren
Science Wastewa Sewage
Main 16.37mg 360mg/ 0.2272t/
and ter COD 1 main 0.08282t None
outlet /m3 m a
Technol pollutant outlet
ogy Co.,
Ltd.
Wuhu Wastewa Main Sewage 5.7mg/m 170mg/ 0.00144
BOD5 1 3
0 None
Huaren ter outlet main m 2t
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Science pollutant outlet
and
Technol
ogy Co.,
Ltd.
Wuhu
Huaren
Science Wastewa Sewage
Main 12mg/m 230mg/
and ter SS 1 main 3 0.00317t 0 None
outlet m3
Technol pollutant outlet
ogy Co.,
Ltd.
Wuhu
Huaren
Science Wastewa Ammoni Sewage
Main 3.29mg/ 30mg/m 0.00230 0.04735t
and ter a- 1 main None
outlet m3 3 4t /a
Technol pollutant nitrogen outlet
ogy Co.,
Ltd.
Wuhu
Huaren
Science Wastewa Sewage
Total Main 9.62mg/ 35mg/m
and ter 1 main 0.00247t 0 None
nitrogen outlet m3 3
Technol pollutant outlet
ogy Co.,
Ltd.
Wuhu
Huaren
Science Wastewa Total Sewage
Main 0.32mg/ 0.00008
and ter phospho 1 main 5mg/m3 0 None
outlet m3 81t
Technol pollutant rus outlet
ogy Co.,
Ltd.
Wuhu
Huaren
Science Wastewa Sewage
Dichloro Main 0.0088m 0.3mg/m 0.00000
and ter 1 main 0 None
methane outlet g/m3 3 225t
Technol pollutant outlet
ogy Co.,
Ltd.
Pollutant treatment
1. Pollutant treatment of Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd.
(1) Wastewater
Designation of pollution Treatment process Treatment capacity Time when put into operation Operation
prevention and control condition
facility
Wastewater treatment Originally 600 t/d,
Facultative + fluidized November 1993
system of old sewage and 800 t/d after technical Demolished
bed process Technical improvement in 2007
treatment station improvement
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December 2001
Wastewater treatment Technical improvement in 2014
Facultative + CASS + Normal
system of new sewage 2,200 t/d (adding IC and steam flotation)
steam flotation operation
treatment station IC tower outage for demolition in
2022
(2) Exhaust gas
Designation of pollution Treatment process Treatment capacity Time when put into Operation
prevention and control (CMH) operation condition
facility
Normal
DA002 (16#-1) Water Spraying + activated carbon 40000 2023
operation
Secondary water spraying + dry filter + Under
DA010 (35#-1) 30000 /
activated carbon adsorption and desorption construction
Secondary water spraying + dry filter + Normal
DA013 (32#-1) 35000 2023
activated carbon adsorption and desorption operation
Two-level water spraying + activated carbon + Normal
DA016 (18#-1) 30000 2022
primary spraying operation
Normal
DA019 (3#-1) Primary water spraying + photo-oxidation 20000+52000 2019
operation
Two-level water spraying + condensation +
Normal
DA020 (36#-2) photo-oxidation + activated carbon + inorganic 10000 2019
operation
nano-catalysis + water spraying
Condensation + alkaline water spraying + all-in-
DA023 (27#-1) 15000 2009 Outage
one machine + alkaline water spraying
Secondary water spraying + dry filter + Normal
DA024 (33#-1) 1000 2023
activated carbon adsorption and desorption operation
Secondary water spraying + dry filter + Normal
DA026 (34#-1) 40000 2023
activated carbon adsorption and desorption operation
Secondary alkaline water spraying (activated Normal
DA027 (7#-1) 26000 2015
carbon) operation
Normal
DA028 (6#-1) Primary clean water spraying 12200 2016
operation
Primary clean water spraying + primary alkaline Normal
DA030 (18#-3) 5000 2017
water spraying operation
Low nitrogen
transformation
completed in
Low nitrogen combustion + high altitude December 2019. Normal
DA031 (25#-1) 16000
emission Online monitoring operation
installed for
integrated emptying
in 2023
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Two-level water spraying + activated carbon
DA034 (27#-2) 15000 2011 Outage
adsorption and desorption
Photo-oxidation + primary alkaline water
DA035 (27#-3) 22300 2016 Outage
spraying
Secondary water spraying/ two-level spraying + Normal
DA036 (8/13#-1) 25000 2017
activated carbon adsorption and desorption operation
Normal
DA042 (10#-1) Primary clean water spraying 20000 2016
operation
Primary alkaline water spraying + photo Normal
DA043 (15#-1) 25000 2018
oxidation operation
Primary alkaline water spraying + primary Normal
DA044 (43#-1) 45000 2014
water spraying operation
Normal
DA045 (46#-1) Primary clean water spraying 3000 2015
operation
Normal
DA046 (46#-2) Primary clean water spraying 25000 2015
operation
Normal
DA047 (46#-3) Primary clean water spraying 30000 2015
operation
Normal
DA048 (23#-1) Secondary water spraying 7000 2019
operation
Secondary water spraying + dry filter + Under
DA049 (36#-3) 10000 /
activated carbon adsorption and desorption construction
Under
DA050 (3#-2) Secondary water spraying + activated carbon 45000 /
construction
(3) Solid wastes
Designation of pollution Treatment process Treatment capacity Time when put into Operation condition
prevention and control operation
facility
Normative storage 180 tons March 2012
Normative storage, compliant
Hazardous waste warehouse Normative storage 107 tons October 2023 disposal by entrusted
qualified units
Normative storage 85 tons December 2022
Normative storage 7 tons March 2010 Normative storage, compliant
General solid waste storage
disposal by entrusted
yard Normative storage 30 tons June 2004
qualified units
2. Pollutant treatment of Hangzhou Zhongmei Huadong Pharmaceutical Jiangdong Co., Ltd.
(1) Wastewater
Designation of pollution Treatment process Treatment capacity Time when put into Operation
prevention and control operation condition
facility
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Phase I sewage treatment Primary sedimentation + EGSB + facultative + 1500 t/d March 2016 Normal
station aerobic + advanced treatment operation
Phase II sewage treatment EGSB + facultative + aerobic + advanced 8500 t/d July 2019 Normal
station treatment operation
(2) Exhaust gas
Designation of pollution prevention and Treatment process Treatment Time when put Operation condition
control facility capacity (CMH) into operation
Exhaust gas from Two-level alkaline
DA001 fermenting east spraying + photo- 45000 May 2016 Normal operation
section catalytic oxidation
Exhaust gas from Secondary alkaline
DA002 fermenting west spraying + photo- 40000 May 2016 Normal operation
section catalytic oxidation
Exhaust gas from Two-level alkaline
DA003 drying north spraying 80000 May 2016 Normal operation
section
Exhaust gas from Secondary alkaline
DA004 sewage treatment spraying 50000 May 2016 Normal operation
station
Exhaust gas from Primary alkaline
DA006 10000 May 2016 Normal operation
batching section spraying
Exhaust gas from Primary alkaline
DA007 quality testing and spraying + photo- 20000 May 2016 Normal operation
R&D catalytic oxidation
Exhaust gas from Secondary alkaline
DA008 drying south spraying 80000 May 2016 Normal operation
section
Exhaust gas from Secondary alkaline
DA010 plate-and-frame spraying + photo- 40000 May 2017 Normal operation
filter catalytic oxidation
Exhaust gas from Secondary alkaline
DA011 20000 May 2017 Normal operation
drying cooling bin spraying
Exhaust gas from Primary alkaline
DA012 20000 May 2016 Normal operation
drying 7m spraying
Exhaust gas from Primary alkaline
DA013 20000 May 2016 Normal operation
drying 18m spraying
Exhaust gas from Activated carbon + Waste gas
DA014 Few June 2019
tank area alkaline spraying containing solvent is
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
separately
connected to RTO
system
Normal operation
Water spraying +
DA015 RTO exhaust gas RTO + alkaline 100000 June 2019 Normal operation
spraying
Exhaust gas I from Bag dust removal
DA016 Few June 2019 Normal operation
Vogely preparation
Photo-catalytic
DA033 MP exhaust gas 44000 June 2019 Normal operation
oxidation
Alkaline spraying
Exhaust gas from
+ photo-catalytic
DA018 super-resistant 20000 June 2019 Normal operation
oxidation + water
fermentation
spraying
Acid spraying +
DA019 X8 exhaust gas 6000 June 2019 Normal operation
water spraying
Alkaline spraying
Exhaust gas from + photo-catalytic
DA021 30000 June 2019 Normal operation
quality testing oxidation + water
spraying
Exhaust gas from Alkaline spraying
DA022 AK refining + water spraying 10000 June 2019 Normal operation
hydrochloric acid
Exhaust gas I from Bag dust removal
DA023 Few June 2019 Normal operation
spray drying + water spraying
Alkaline spraying
Exhaust gas from
+ photo-catalytic
DA024 AK fermenting 90000 June 2019 Normal operation
oxidation + water
north section
spraying
Alkaline spraying
Exhaust gas from
+ photo-catalytic
DA025 AK fermenting 90000 June 2019 Normal operation
oxidation + water
south section
spraying
Exhaust gas from Alkaline spraying
DA026 phase II sewage + water spraying 58000 June 2019 Normal operation
treatment station
Alkaline spraying
Exhaust gas from + photo-catalytic
DA027 8000 June 2019 Normal operation
center control oxidation + water
spraying
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Alkaline spraying Connected to RTO
+ water spraying system after being
/ YT exhaust gas 4000 June 2019 pre-treated in this
system; this outlet
canceled
Exhaust gas II Bag dust removal
DA029 Few June 2019 Normal operation
from spray drying + water spraying
Exhaust gas from Alkaline spraying
DA030 AK refining ethyl + water spraying 1000 June 2019 Normal operation
alcohol
Condensation + Connected to RTO
Exhaust gas from two-level water system after being
/ Bailing Tablets spraying 20000 July 2022 pre-treated in this
preparation system; this outlet
canceled
Oxidation spraying Connected to RTO
HDG solvent- + two-level system after being
/ containing exhaust alkaline spraying 2000 September 2022 pre-treated in this
gas system; this outlet
canceled
HDG odor exhaust Oxidation spraying
FQ217 20000 September 2022 Normal operation
gas + alkaline spraying
Waste gas from Water spraying +
FQ 219 benzpyrole water spraying 30000 April 2024 Not operate
preparation
(3) Solid wastes
Designation of
Time when put into
pollution prevention Treatment process Treatment capacity Operation condition
operation
and control facility
Normative storage 10 tons March 2017 Normative storage,
Hazardous waste compliant disposal by
warehouse Normative storage 200 tons May 2021 entrusted qualified
units
Normative storage 20 tons March 2016
Normative storage,
General solid waste Normative storage 15 tons March 2016 compliant disposal by
storage yard Normative storage 40 tons July 2019 entrusted qualified
units
Normative storage 30 tons July 2019
3. Pollutant treatment of Jiangsu Joyang Laboratories
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
(1) Wastewater
Designation of pollution Treatment process Treatment capacity Time when put into Operation
prevention and control operation condition
facility
Steam flotation tank + hydrolytic acidification +
Wastewater treatment IC tower +
Normal
system of sewage treatment UASB tank + A/O tank + O tank + secondary 1,000 t/d December 2014
operation
station sedimentation
tank
(2) Exhaust gas
Designation of pollution Treatment process Treatment capacity Time when put into Operation
prevention and control (CMH) operation condition
facility
Primary water spraying + water-gas separator +
Exhaust gas treatment
photo-catalytic oxidation + secondary activated Normal
equipment for extracting 10000 2014
carbon adsorption + 25m exhaust pipe high operation
section in Plant 101
altitude emission
Exhaust gas treatment Primary water spraying + water-gas separator +
Normal
equipment for fermentation secondary activated carbon adsorption + 25m 20000 2019
operation
section in Plant 101 exhaust pipe high altitude emission
Exhaust gas treatment Primary water spraying + water-gas separator +
Normal
equipment for drying section secondary activated carbon adsorption + 25m 22000 2017
operation
in Plant 101 exhaust pipe high altitude emission
Exhaust gas treatment
Cyclone separator + primary water spray + 15m Normal
equipment for batching 5000 2014
exhaust pipe high altitude emission operation
section in Plant 101
Exhaust gas treatment
Primary water spraying + water-gas separator +
equipment for fermentation Normal
secondary activated carbon adsorption + 25m 75000 2021
sections in Plants operation
exhaust pipe high altitude emission
104/107/108
Primary water spraying + water-gas separator +
Exhaust gas treatment
photo-catalytic oxidation + secondary activated Normal
equipment for extracting 10000 2015
carbon adsorption + 25m exhaust pipe high operation
section in Plant 104
altitude emission
Exhaust gas treatment
equipment for batching Normal
Cyclone separator + primary water spraying 5000 2015
sections in Plants operation
104/107/108
Exhaust gas treatment
equipment for drying Primary water spraying + water-gas separator + Normal
20000 2015
sections in Plants secondary activated carbon adsorption operation
104/107/108
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Exhaust gas treatment Primary water spraying + water-gas separator +
equipment for pretreatment photo-catalytic oxidation + secondary activated Normal
40000 2019
tank and hazardous waste carbon adsorption + 25m exhaust pipe high operation
repository in Plant 303 altitude emission
Primary water spraying + water-gas separator +
Exhaust gas treatment photo-catalytic oxidation + secondary activated Normal
10000 2015
equipment for Plant 106 carbon adsorption + 25m exhaust pipe high operation
altitude emission
Primary water spraying + water-gas separator +
Exhaust gas treatment
photo-catalytic oxidation + secondary activated Normal
equipment for extracting 20000 2019
carbon adsorption + 25m exhaust pipe high operation
section in Plant 107
altitude emission
Primary water spraying + water-gas separator +
Exhaust gas treatment
photo-catalytic oxidation + secondary activated Normal
equipment for extracting 40000 2019
carbon adsorption + 25m exhaust pipe high operation
section in Plant 108
altitude emission
Exhaust gas treatment
Primary water spraying +25m exhaust pipe high Normal
equipment on F3 in Plant 20000 2019
altitude emission operation
106
Exhaust gas treatment Primary water spraying + water-gas separator +
Normal
equipment for sewage photo-catalytic + 25m exhaust pipe high altitude 15000 2021
operation
treatment station 303 emission
Primary water spraying + water-gas separator +
Exhaust gas treatment photo-catalytic oxidation + secondary activated Normal
45000 2022
equipment for Plant 103 carbon adsorption + 25m exhaust pipe high operation
altitude emission
Exhaust gas treatment Normal
Spraying + activated carbon adsorption 25000 2023
equipment in laboratories operation
(3) Solid wastes
Designation of
Time when put into
pollution prevention Treatment process Treatment capacity Operation condition
operation
and control facility
Normative storage,
Hazardous waste compliant disposal by
Normative storage 3148.7 t/a October 2020
warehouse entrusted qualified
units
Household garbage Garbage disposal site
Normative storage 1,000 t/a March 2015
dumping site in the east of the city
4. Pollutant treatment of Huadong Medicine (Xi’an) Bohua Pharmaceutical Co., Ltd.
(1) Wastewater
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Designation of pollution Treatment process Treatment capacity Time when put into Operation
prevention and control operation condition
facility
Wastewater treatment Pretreatment + Fenton system + facultative + 250 t/d July 2012 Normal
system of sewage treatment aerobic + MBR + carbon filtration operation
station
(2) Exhaust gas
Designation of pollution prevention Treatment process Time when put into Operation
and control facility operation condition
Exhaust gas treatment equipment for Alkaline solution spraying + dry filter (filter cotton) + Normal
October 2020
APIs Plant 1 UV photolysis + activated carbon adsorption operation
Tertiary alkaline solution spraying + steam-water
Exhaust gas treatment equipment for Normal
separator + dry filter + two-level activated carbon November 2019
APIs Plant 2 operation
adsorption
Exhaust gas treatment equipment for Normal
Bag dust removal 2018
solid preparation operation
Exhaust gas treatment equipment for Two-level alkaline solution spraying + steam-water Normal
2023
pilot plant separator + two-level activated carbon adsorption operation
(3) Solid wastes
Designation of
Time when put into
pollution prevention Treatment process Treatment capacity Operation condition
operation
and control facility
Normative storage,
Hazardous waste compliant transfer and
Normative storage 133 tons January 2012
repository disposal by entrusted
qualified units
5. Wuhu Huaren Science and Technology Co., Ltd.
(1) Wastewater
Designation of pollution Treatment process Treatment capacity Time when put into operation Operation
prevention and control condition
facility
pH regulation +
coagulation and Normal
Sewage treatment station 30 t/d August 2023
sedimentation + aerobic operation
bioremediation
(2) Exhaust gas
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Designation of pollution Treatment process Treatment capacity Time when put into Operation
prevention and control (CMH) operation condition
facility
Collected by pipeline and adsorbed by Normal
DA001 40000 May 2024
secondary activated carbon operation
Collected by pipeline and adsorbed by Construction
DA002 8000 /
secondary activated carbon in progress
(3) Solid wastes
Designation of pollution Treatment process Treatment capacity Time when put into Operation condition
prevention and control operation
facility
Normative storage, compliant
Hazardous waste warehouse Temporary storage 20 tons August 2022 disposal by entrusted
qualified units
Emergency plan for sudden environmental events
Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd. has formulated and established the Emergency Plan for Sudden
Environmental Events as required, with the record No. of 330105-2021-003-M.
Hangzhou Zhongmei Huadong Pharmaceutical Jiangdong Co., Ltd. has modified the Emergency Plan for Sudden Environmental
Events in 2022, with the record No. of 330114-2022-069-M. In May 2024, an emergency drill of “super-anti-sewage regulating tank
overflowing” was conducted.
Jiangsu Joyang Laboratories has modified the Emergency Plan for Sudden Environmental Events in H1 2024, which has been
approved and recorded. In June 2024, an emergency plan drill for a sudden fire environmental incident was conducted.
Huadong Medicine (Xi’an) Bohua Pharmaceutical Co., Ltd. has modified and perfected the Emergency Plan for Sudden
Environmental Events as required in 2024, with the record No. of 610582-2024-152-M.
Wuhu Huaren Science and Technology Co., Ltd. has formulated the Emergency Plan for Sudden Environmental Events in July
2022, with the record No. of 340203-2022-018-L.
Investment in environmental governance and protection, and the relevant information on paying environmental protection tax
In H1 2024, Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd. invested 5,430,000 yuan in environmental governance and
protection, paid the environmental protection tax of 1277.11 yuan.
In H1 2024, Hangzhou Zhongmei Huadong Pharmaceutical Jiangdong Co., Ltd. invested 13,101,000 yuan in environmental
governance and protection, and did not pay environmental protection tax according to relevant policies.
In H1 2024, Jiangsu Joyang Laboratories invested 3,600,000 yuan in environmental governance and protection, and paid the
environmental protection tax of 67,900 yuan.
In H1 2024, Huadong Medicine (Xi’an) Bohua Pharmaceutical Co., Ltd. invested 1,276,800 yuan in environmental governance
and protection, and paid the environmental protection tax of 473.3 yuan.
In H1 2024, Wuhu Huaren Science and Technology Co., Ltd. invested a total of 464,100 yuan in environmental governance and
protection, and paid the environmental protection tax of 65.13 yuan.
Environmental self-monitoring program
Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd. revised the Pollution Source Self-monitoring Program on July 17, 2024.
86
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Hangzhou Zhongmei Huadong Pharmaceutical Jiangdong Co., Ltd. has formulated the entrusted monitoring plan according to the
self-monitoring requirements in the Pollutant Emission Permit, and carried out daily, monthly, quarterly or annual entrusted monitoring
according to the monitoring plan.
Jiangsu Joyang Laboratories has formulated the Pollution Source Self-monitoring Program according to the relevant national
environmental protection requirements, and reported daily monitoring data as required.
Huadong Medicine (Xi’an) Bohua Pharmaceutical Co., Ltd. has formulated the Self-monitoring Program, registered the Program
in the environmental protection department, and reported the monitoring data as required.
Wuhu Huaren Science and Technology Co., Ltd. has formulated the Self-monitoring Program on February 2, 2024 and conducted
monitoring as per the program.
Administrative penalties for environmental issues during the reporting period
Impacts on the
Designation of
production and Rectification
Company or Reasons Type of violation Results
operation of listed measures
subsidiary
company
None None None None None None
Other environmental information to be disclosed
None
Measures taken to reduce carbon emissions during the reporting period and corresponding effects
Applicable □ N/A
Hangzhou Zhongmei Huadong Pharmaceutical Jiangdong Co., Ltd. continued to use biogas to generate electricity, reducing the
emissions of methane, hydrogen sulfide, and other pollutants. It launched a new project to replace natural gas with biogas. It
continuously took lean measures in the plants to reduce pollutant emissions, such as saving water and reducing consumption.
Jiangsu Joyang Laboratories saved 54.71 tons of steam and 7.04 tons of standard coal in H1 2024 by identifying steam usage
points and strengthening the maintenance and management of steam traps. It also saved a total of 350,000 yuan of electricity charges
and a total of 366.11 tons of standard coal by controlling the electricity use date reported each month within ±3% through precision
energy use management.
Other environmental protection related information
None
II. Social Responsibilities
During the reporting period, the Company actively fulfilled its social responsibilities, and
participated in the “Spring Breeze Action” with the theme of “Pooling Efforts of All Walks of Life
to Help People with Urgent Needs” launched by Hangzhou. Since it was launched in 2000, the
“Spring Breeze Action” has extensively mobilized all walks of life to care about poverty alleviation
and has become a famous brand of Hangzhou in the charity undertaking, receiving great praise from
all walks of life. In 2024, the Company continued to make donations and won the “Love Award” of
2023 “Spring Breeze Action” of Hangzhou awarded by Hangzhou Municipal People’s Government.
In the future, the Company will actively devote itself to the social and public welfare undertaking,
endeavor to empower the community and people’s well-being, actively repay the society, and
87
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
practically fulfill our social responsibilities by upholding the core values of “Caring, Integrity,
Persistence and Pragmatism”.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Section VI. Important Matters
I. Commitments made by interested parties such as the Company’s de facto controller,
shareholders, related parties, acquirer(s), and the Company that are fulfilled during the
reporting period or unfulfilled by the end of the reporting period
Applicable □ N/A
Time of
Cause of Committing Type of Contents of Duration of Degree of
Commitmen
Commitment Party Commitment Commitment Commitment Fulfillment
t
“The shareholder
hereby recommends
increasing the
proportion of your cash
dividends in 2023 and
H1 2024 based on our
confidence in your
long-term development,
good financial position,
return to shareholders
and other factors to
ensure that all
shareholders can share
the Company’s business
development
achievements and
effectively protect the
interests of investors.
Specific suggestions are
Grand
as follows:
Enterprises,
Commitment Proposed profits
Other Inc.; Hangzhou February December
to dividend distribution plan for Fulfilled
Commitments Huadong 18, 2024 31, 2024
distribution 2023: A total of 1
Medicine
billion yuan cash
Group Co., Ltd.
dividends (including
tax); no bonus shares
will be distributed, and
no reserved funds can
be converted as the
share capital. It is also
suggested that the
Company divides no
less than 500 million
yuan (including tax)
cash dividends for H1
2024 if the Company’s
net profits increase
steadily in consideration
of the Company’s actual
operation in H1 2024.
Specific profit
distribution plan will be
determined by the
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Company based on the
actual operation
situation, which will be
submitted to the Board
of Directors and
General Meeting for
deliberation and
approval. The
shareholder hereby
undertakes to vote in
favor of the above
distribution plan at the
General Meeting
deliberating on and
approving such plan.”
Whether the
commitment is
Yes
fulfilled on
time
II. Controlling shareholders’ and related parties’ occupation of non-operating funds of the
listed companies
□ Applicable N/A
No such case during the reporting period.
III. External guarantees in violation of provisions
□ Applicable N/A
No such case during the reporting period.
IV. Employment and dismissal of accounting firms
Whether the semi-annual financial report has been audited?
□Yes No
The Company’s semi-annual report is not audited.
V. Explanation by the Board of Directors and the Board of Supervisors on the “nonstandard
audit report” of the accounting firm during the current reporting period
□ Applicable N/A
VI. Explanation by the Board of Directors on the “nonstandard audit report” in 2023
□ Applicable N/A
VII. Bankruptcy reorganization
□ Applicable N/A
The Company does not have related matters of bankruptcy reorganization during the reporting period.
90
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
VIII. Contentious matters
Major litigations and arbitrations
□ Applicable N/A
The Company has no major litigations and arbitrations during the current reporting period.
Other litigations and arbitrations
Applicable □ N/A
Litigation
Amount Whether an Execution of
Basic of Litigation (arbitration)
involved (ten estimated litigation Disclosure Disclosure
litigations (arbitration) adjudication
thousand liability is (arbitration) date index (if any)
(arbitrations) progress result and
yuan) formed judgments
impact
The Some cases
Some cases
summary of have been
are under
the litigation The executed;
acceptance
matters that summary of some
and some
don’t satisfy the litigation adjudicated
adjudications
the criteria 9,597.13 No matters has cases are / /
have come
for disclosure no significant being
into force
of major impact on the executed.
(involving
litigations Company Some cases
11.3437
(arbitrations) are not
million yuan)
(China) adjudicated.
The
summary of
Some
the litigation Some cases The
adjudicated
matters that are under summary of
cases are
don’t satisfy trials and the litigation
being
the criteria 251 No some matters has / /
executed.
for disclosure adjudications no significant
Some cases
of major have come impact on the
are not
litigations into force Company
adjudicated.
(arbitrations)
(overseas)
Hangzhou Please refer
Zhongmei to the
Huadong Announceme
Pharmaceutic nt on the
al Co., Ltd., Wholly-
the owned
Company’s Subsidiary
wholly- Receiving the
owned Notice of
subsidiary, Case
Temporarily Temporarily January 3,
demanded 11,137.58 No Under trails Acceptance
no no 2024
that Qinghai from
Everest Zhejiang
Cordyceps Provincial
Sinensis Raw Higher
Materials People’s
Co., Ltd. Court
(Defendant (Announcem
1) and ent No.:
Qinghai 2024-001)
Everest disclosed by
91
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Cordyceps the Company
Sinensis on Cninfo
Pharmaceutic (http://www.
al Co., Ltd. cninfo.com.c
(Defendant n) on January
2) 3, 2024 for
immediately details.
stop the
infringement
of relevant
invention
patents of
Zhongmei
Huadong and
bear
liabilities for
compensatio
n.
IX. Punishment and rectification
□ Applicable N/A
No such case during the reporting period.
X. Integrity of the Company and its controlling shareholders and de facto controller
Applicable □ N/A
The Company, its controlling shareholder and de facto controller are in good credit. There is no
failure to fulfill the obligations determined by legal documents in force from courts or failure to
repay the due debts of a large amount during the reporting period.
XI. Major related transactions
1. Transactions related to daily operations
Applicable □ N/A
Availa
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purch purch 0.18% 6,000 No 18,
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
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94
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
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95
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
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on-
103
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
makin
g
proces
s
Marke
t price
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Subsi by the
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diary Comp Cninf
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cal Comp Medic Medic relate April (http:/
Marke r’s Marke
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Trade makin
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Lixian Marke r’s Marke
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Marke Marke
Yuand diary ine ine t price 3.36 0.00% / Yes banke 18, o
t price t price
a of the sales sales deter r’s 2024 (http:/
104
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Tianti Comp mined accept /www
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Ltd. makin
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Comp Medic Medic relate April (http:/
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lling o.com
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105
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
ction
decisi
on-
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g
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Comp matio matio relate April (http:/
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Co.,
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makin
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proces
s
106
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Marke
t price
deter
mined
Hangz by the
hou Comp Cninf
Joint Cash,
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ventur banke
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any’s d 0.01% / Yes 18, /www
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29,37 50,52
Total -- -- -- -- -- -- -- --
9.56 7.76
Details of large-scale sales return N/A
The actual performance during the
reporting period if the total amount
of the daily related transactions
N/A
that will occur in the current
period is estimated by category, if
any
Reasons for large differences in
transaction price and reference N/A
market value, if applicable
2. Related transactions involving the acquisition or selling of assets and equity
□ Applicable N/A
No such case during the reporting period.
3. Related transactions of joint external investment
□ Applicable N/A
107
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
No such case during the reporting period.
4. Associated claim and debt transactions
□ Applicable N/A
No such case during the reporting period.
5. Transactions with financial companies who are related parties of the Company
□ Applicable N/A
No deposit, loan, credit or other financial business between the Company and the related financial companies
6. Transactions between the financial companies controlled by the Company and the related parties
□ Applicable N/A
No deposit, loan, credit or other financial business between the financial companies controlled by the Company and the related
parties.
7. Other major related transactions
□ Applicable N/A
No such case during the reporting period.
XII. Major contracts and their fulfillment
1. Entrustment, contracting and leasing
(1) Entrustment
□ Applicable N/A
No such case during the reporting period.
(2) Contracting
□ Applicable N/A
No such case during the reporting period.
(3) Leasing
□ Applicable N/A
No such case during the reporting period.
2. Important guarantees
Applicable □ N/A
Unit: ten thousand yuan
External guarantees of the Company and its subsidiaries (excluding guarantees for subsidiaries)
108
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Disclosu
re date
of the Guarante
Actual Actual Period
Guarant announc Type of Counter e for a
Guarante date of guarante Collatera of Fulfilled
eed ement guarante guaranty related
e cap occurren ed l (if any) guarante or not
party related e (if any) party or
ce amount e
to the not
guarante
e cap
Guarantee for subsidiaries
Disclosu
re date
of the Guarante
Actual Actual Period
Guarant announc Type of Counter e for a
Guarante date of guarante Collatera of Fulfilled
eed ement guarante guaranty related
e cap occurren ed l (if any) guarante or not
party related e (if any) party or
ce amount e
to the not
guarante
e cap
Hangzho
u
Zhongm Joint and
ei several
April 14, January Annuall
Huadon 85,000 4,824.89 liability None None No No
2023 28, 2024 y
g guarante
Pharmac e
eutical
Co., Ltd.
Hangzho
u
Zhongm Joint and
ei several
April 14, February Annuall
Huadon 85,000 5,809.42 liability None None No No
2023 26, 2024 y
g guarante
Pharmac e
eutical
Co., Ltd.
Hangzho
u
Zhongm Joint and
ei several
April 14, March Annuall
Huadon 85,000 3,514.81 liability None None No No
2023 20, 2024 y
g guarante
Pharmac e
eutical
Co., Ltd.
Hangzho
u
Zhongm Joint and
ei several
April 14, March Annuall
Huadon 85,000 4,776.9 liability None None No No
2023 20, 2024 y
g guarante
Pharmac e
eutical
Co., Ltd.
Hangzho April 14, 85,000 March 1,923.49 Joint and None None Annuall No No
109
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
u 2023 26, 2024 several y
Zhongm liability
ei guarante
Huadon e
g
Pharmac
eutical
Co., Ltd.
Hangzho
u
Zhongm Joint and
ei several
April 18, April 23, 17,386.8 Annuall
Huadon 155,000 liability None None No No
2024 2024 4 y
g guarante
Pharmac e
eutical
Co., Ltd.
Hangzho
u
Zhongm Joint and
ei several
April 18, April 25, Annuall
Huadon 155,000 3,923.79 liability None None No No
2024 2024 y
g guarante
Pharmac e
eutical
Co., Ltd.
Hangzho
u
Zhongm Joint and
ei several
April 18, May 21, 16,511.9 Annuall
Huadon 155,000 liability None None No No
2024 2024 7 y
g guarante
Pharmac e
eutical
Co., Ltd.
Hangzho
u
Zhongm Joint and
ei several
April 18, June 14, 20,531.0 Annuall
Huadon 155,000 liability None None No No
2024 2024 1 y
g guarante
Pharmac e
eutical
Co., Ltd.
Hangzho
u
Zhongm Joint and
ei several
April 18, June 26, Annuall
Huadon 155,000 194.63 liability None None No No
2024 2024 y
g guarante
Pharmac e
eutical
Co., Ltd.
Huadon
g
April 18,
Medicin 5,000
2024
e (Xi’an)
Bohua
110
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Pharmac
eutical
Co., Ltd.
Huadon
g Joint and
Medicin several
April 14, February Annuall
e 16,000 4,750 liability None None No No
2023 28, 2024 y
Ningbo guarante
Sales e
Co., Ltd.
Huadon
g Joint and
Medicin several
April 18, June 18, Annuall
e 16,000 3,800 liability None None No No
2024 2024 y
Ningbo guarante
Sales e
Co., Ltd.
Huadon
Joint and
g
several
Medicin April 14, February Annuall
15,000 4,500 liability None None No No
e 2023 26, 2024 y
guarante
Huzhou
e
Co., Ltd.
Huadon
Joint and
g
several
Medicin April 18, April 25, Annuall
19,300 4,500 liability None None No No
e 2024 2024 y
guarante
Huzhou
e
Co., Ltd.
Huadon
Joint and
g
several
Medicin April 18, June 19, Annuall
19,300 3,800 liability None None No No
e 2024 2024 y
guarante
Huzhou
e
Co., Ltd.
Huadon
g Joint and
Medicin several
April 14, February Annuall
e 19,000 4,750 liability None None No No
2023 28, 2024 y
Shaoxin guarante
g Co., e
Ltd.
Huadon
g Joint and
Medicin several
April 14, March Annuall
e 19,000 3,000 liability None None No No
2023 20, 2024 y
Shaoxin guarante
g Co., e
Ltd.
Huadon
g Joint and
Medicin several
April 18, April 18, Annuall
e 20,000 5,000 liability None None No No
2024 2024 y
Shaoxin guarante
g Co., e
Ltd.
Huadon April 18, 20,000 June 14, 4,000 Joint and None None Annuall No No
111
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
g 2024 2024 several y
Medicin liability
e guarante
Shaoxin e
g Co.,
Ltd.
Huadon
g
Medicin
Joint and
e
several
(Hangzh April 18, May 15, Annuall
5,000 21.8 liability None None No No
ou) 2024 2024 y
guarante
Biologic
e
al
Products
Co., Ltd.
Joyang
April 18,
Laborato 5,000
2024
ries
Ruian
People’s
Hospital
Huadon
provided
g Joint and
Wenzho
Medicin several
April 14, July 17, u Annuall
e 24,000 1,000 liability None No No
2023 2023 Compan y
Wenzho guarante
y with a
u Co., e
loan of
Ltd.
340
million
yuan
Ruian
People’s
Hospital
Huadon
provided
g Joint and
Wenzho
Medicin several
April 14, July 17, u Annuall
e 24,000 1,000 liability None No No
2023 2023 Compan y
Wenzho guarante
y with a
u Co., e
loan of
Ltd.
340
million
yuan
Ruian
People’s
Hospital
Huadon
provided
g Joint and
Wenzho
Medicin several
April 14, July 19, u Annuall
e 24,000 1,000 liability None No No
2023 2023 Compan y
Wenzho guarante
y with a
u Co., e
loan of
Ltd.
340
million
yuan
Huadon Joint and Ruian
April 14, July 20, Annuall
g 24,000 1,000 several None People’s No No
2023 2023 y
Medicin liability Hospital
112
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
e guarante provided
Wenzho e Wenzho
u Co., u
Ltd. Compan
y with a
loan of
340
million
yuan
Ruian
People’s
Hospital
Huadon
provided
g Joint and
Wenzho
Medicin several
April 14, July 21, u Annuall
e 24,000 1,000 liability None No No
2023 2023 Compan y
Wenzho guarante
y with a
u Co., e
loan of
Ltd.
340
million
yuan
Ruian
People’s
Hospital
Huadon
provided
g Joint and
Wenzho
Medicin several
April 14, August u Annuall
e 24,000 1,000 liability None No No
2023 4, 2023 Compan y
Wenzho guarante
y with a
u Co., e
loan of
Ltd.
340
million
yuan
Ruian
People’s
Hospital
Huadon
provided
g Joint and
Wenzho
Medicin several
April 14, August u Annuall
e 24,000 1,000 liability None No No
2023 7, 2023 Compan y
Wenzho guarante
y with a
u Co., e
loan of
Ltd.
340
million
yuan
Ruian
People’s
Hospital
Huadon
provided
g Joint and
Wenzho
Medicin Septemb several
April 14, u Annuall
e 24,000 er 12, 1,000 liability None No No
2023 Compan y
Wenzho 2023 guarante
y with a
u Co., e
loan of
Ltd.
340
million
yuan
Huadon April 14, 24,000 Septemb 1,000 Joint and None Ruian Annuall No No
113
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
g 2023 er 14, several People’s y
Medicin 2023 liability Hospital
e guarante provided
Wenzho e Wenzho
u Co., u
Ltd. Compan
y with a
loan of
340
million
yuan
Ruian
People’s
Hospital
Huadon
provided
g Joint and
Wenzho
Medicin several
April 18, May 6, u Annuall
e 24,000 2,233.7 liability None No No
2024 2024 Compan y
Wenzho guarante
y with a
u Co., e
loan of
Ltd.
340
million
yuan
Longqua
n
Pharmac
eutical
Assets
Manage
ment
Co., Ltd.
Huadon Joint and Offered
g several 15
April 18, April 26, Annuall
Medicin 15,000 5,250 liability None million No No
2024 2024 y
e Lishui guarante yuan of
Co., Ltd. e load and
a
guarante
e cap of
83.5
million
yuan in
other
banks
Huadon
g
Medicin April 18,
2,500
e 2024
Daishan
Co., Ltd.
Huadon
g Joint and
Medicin several
April 18, June 20, Annuall
e Cunde 9,000 1,900 liability None None No No
2024 2024 y
(Zhoush guarante
an) Co., e
Ltd.
Hangzho April 14, 40,000 March 3,413.61 Joint and None None Annuall No No
114
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
u 2023 21, 2024 several y
Zhongm liability
ei guarante
Huadon e
g
Pharmac
eutical
Jiangdon
g Co.,
Ltd.
Hangzho
u
Zhongm
ei Joint and
Huadon several
April 18, June 28, Annuall
g 60,000 7,392.61 liability None None No No
2024 2024 y
Pharmac guarante
eutical e
Jiangdon
g Co.,
Ltd.
Hangzho
u Joint and
Huadon several
April 18, June 20, Annuall
g 10,000 3,800 liability None None No No
2024 2024 y
Pharmac guarante
y Chain e
Co., Ltd.
Huadon Joint and
g several
April 14, February Annuall
Medicin 15,000 4,000 liability None None No No
2023 21, 2024 y
e Jinhua guarante
Co., Ltd. e
Huadon Joint and
g several
April 18, April 24, Annuall
Medicin 15,000 6,000 liability None None No No
2024 2024 y
e Jinhua guarante
Co., Ltd. e
Huadon Joint and
g several
April 18, June 20, Annuall
Medicin 15,000 4,000 liability None None No No
2024 2024 y
e Jinhua guarante
Co., Ltd. e
Hubei
Joint and
Magic Proporti
several
Health April 14, January onate Annuall
5,400 382.46 liability None No No
Technol 2023 31, 2024 guarante y
guarante
ogy Co., e
e
Ltd.
Hubei
Joint and
Magic Proporti
several
Health April 14, February onate Annuall
5,400 228.74 liability None No No
Technol 2023 6, 2024 guarante y
guarante
ogy Co., e
e
Ltd.
Hubei April 14, February Joint and Proporti Annuall
5,400 8.96 None No No
Magic 2023 7, 2024 several onate y
115
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Health liability guarante
Technol guarante e
ogy Co., e
Ltd.
Hubei
Joint and
Magic Proporti
several
Health April 14, March onate Annuall
5,400 92.78 liability None No No
Technol 2023 21, 2024 guarante y
guarante
ogy Co., e
e
Ltd.
Hubei
Joint and
Magic Proporti
several
Health April 14, March onate Annuall
5,400 629.9 liability None No No
Technol 2023 21, 2024 guarante y
guarante
ogy Co., e
e
Ltd.
Hubei
Joint and
Magic Proporti
several
Health April 14, April 12, onate Annuall
5,400 63.34 liability None No No
Technol 2023 2024 guarante y
guarante
ogy Co., e
e
Ltd.
Hubei
Joint and
Magic Proporti
several
Health April 14, March onate Annuall
5,400 30.37 liability None No No
Technol 2023 27, 2024 guarante y
guarante
ogy Co., e
e
Ltd.
Hubei
Joint and
Magic Proporti
several
Health April 18, April 28, onate Annuall
9,000 71.61 liability None No No
Technol 2024 2024 guarante y
guarante
ogy Co., e
e
Ltd.
Hubei
Joint and
Magic Proporti
several
Health April 18, June 27, onate Annuall
9,000 82.16 liability None No No
Technol 2024 2024 guarante y
guarante
ogy Co., e
e
Ltd.
Hubei
Joint and
Magic Proporti
several
Health April 18, April 29, onate Annuall
9,000 150.37 liability None No No
Technol 2024 2024 guarante y
guarante
ogy Co., e
e
Ltd.
Hubei
Joint and
Magic Proporti
several
Health April 18, May 17, onate Annuall
9,000 42.17 liability None No No
Technol 2024 2024 guarante y
guarante
ogy Co., e
e
Ltd.
Hubei Joint and
Proporti
Magic several
April 18, May 28, onate Annuall
Health 9,000 210 liability None No No
2024 2024 guarante y
Technol guarante
e
ogy Co., e
116
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Ltd.
Hubei
Joint and
Magic Proporti
several
Health April 18, June 25, onate Annuall
9,000 806.28 liability None No No
Technol 2024 2024 guarante y
guarante
ogy Co., e
e
Ltd.
Hubei
Joint and
Magic Proporti
several
Health April 18, June 28, onate Annuall
9,000 17.79 liability None No No
Technol 2024 2024 guarante y
guarante
ogy Co., e
e
Ltd.
Jiangsu
Nanjing
Nongda
April 18,
Animal 4,000
2024
Pharmac
eutical
Co., Ltd.
Huadon
g
Medicin
e
Investm April 18,
50,400
ent 2024
Holding
(Hong
Kong)
Limited
Joint and
Sinclair Novemb several
April 1, Three
Pharma er 23, 52,591 18,086 liability None None No No
2022 years
Limited 2018 guarante
e
Joint and
Sinclair several
July 16, January 31,357.9 Three
Pharma 38,305 liability None None No No
2021 13, 2022 2 years
Limited guarante
e
Sinclair
March
Pharma 14,846
16, 2021
Limited
Sinclair
March
Pharma 14,846
16, 2021
Limited
Sinclair
March
Pharma 31,696
16, 2021
Limited
Sinclair
April 28,
Pharma 58,600
2022
Limited
Sinclair
April 14,
Pharma 65,000
2023
Limited
Total guarantee cap Total guarantee
424,200 158,326.4
for subsidiaries amount for
117
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
approved during the subsidiaries actually
reporting period (Bl) occurred during the
reporting period
(B2)
Total actual
Total approved
guarantee balance
guarantee cap for
for subsidiaries at
subsidiaries at the 904,638.03 216,770.32
the end of the
end of the reporting
reporting period
period (B3)
(B4)
Subsidiaries guarantee for subsidiaries
Disclosu
re date
of the Guarante
Actual Actual Period
Guarant announc Type of Counter e for a
Guarante date of guarante Collatera of Fulfilled
eed ement guarante guaranty related
e cap occurren ed l (if any) guarante or not
party related e (if any) party or
ce amount e
to the not
guarante
e cap
Chongqi
Joint and
ng Peg- Proporti
Novemb several
Bio April 14, onate Three
4,800 er 16, 60.26 liability No Yes
Biophar 2023 guarante years
2023 guarante
m Co., e
e
Ltd.
Chongqi
Joint and
ng Peg- Proporti
Decemb several
Bio April 14, onate Three
4,800 er 22, 32.63 liability No Yes
Biophar 2023 guarante years
2023 guarante
m Co., e
e
Ltd.
Chongqi
Joint and
ng Peg- Proporti
Decemb several
Bio April 14, onate Three
4,800 er 15, 12.78 liability No Yes
Biophar 2023 guarante years
2023 guarante
m Co., e
e
Ltd.
Chongqi
Joint and
ng Peg- Proporti
several
Bio April 14, January onate Three
4,800 30.37 liability No Yes
Biophar 2023 18, 2024 guarante years
guarante
m Co., e
e
Ltd.
Chongqi
Joint and
ng Peg- Proporti
several
Bio April 14, January onate Three
4,800 12.78 liability No Yes
Biophar 2023 15, 2024 guarante years
guarante
m Co., e
e
Ltd.
Chongqi
Joint and
ng Peg- Proporti
several
Bio April 14, February onate Three
4,800 12.78 liability No Yes
Biophar 2023 23, 2024 guarante years
guarante
m Co., e
e
Ltd.
118
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Chongqi
Joint and
ng Peg- Proporti
several
Bio April 14, February onate Three
4,800 40.5 liability No Yes
Biophar 2023 22, 2024 guarante years
guarante
m Co., e
e
Ltd.
Chongqi
Joint and
ng Peg- Proporti
several
Bio April 14, March onate Three
4,800 5.87 liability No Yes
Biophar 2023 21, 2024 guarante years
guarante
m Co., e
e
Ltd.
Chongqi
Joint and
ng Peg- Proporti
several
Bio April 14, March onate Three
4,800 14.17 liability No Yes
Biophar 2023 14, 2024 guarante years
guarante
m Co., e
e
Ltd.
Chongqi
Joint and
ng Peg- Proporti
several
Bio April 14, March onate Three
4,800 32.63 liability No Yes
Biophar 2023 12, 2024 guarante years
guarante
m Co., e
e
Ltd.
Chongqi
Joint and
ng Peg- Proporti
several
Bio April 14, March onate Three
4,800 56.7 liability No Yes
Biophar 2023 31, 2024 guarante years
guarante
m Co., e
e
Ltd.
Chongqi
Joint and
ng Peg- Proporti
several
Bio April 14, April 11, onate Three
4,800 108.44 liability No Yes
Biophar 2023 2024 guarante years
guarante
m Co., e
e
Ltd.
Chongqi
Joint and
ng Peg- Proporti
several
Bio April 14, April 15, onate Three
1,396.4 20.28 liability No Yes
Biophar 2023 2024 guarante years
guarante
m Co., e
e
Ltd.
Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18, May 7, onate Three
1,396.4 125.82 liability No Yes
Biophar 2024 2024 guarante years
guarante
m Co., e
e
Ltd.
Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18, May 16, onate Three
1,396.4 11.05 liability No Yes
Biophar 2024 2024 guarante years
guarante
m Co., e
e
Ltd.
Chongqi Joint and Proporti
April 18, June 17, Three
ng Peg- 1,396.4 13.83 several onate No Yes
2024 2024 years
Bio liability guarante
119
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Biophar guarante e
m Co., e
Ltd.
Chongqi
Joint and
ng Peg- Proporti
several
Bio April 18, June 27, onate Three
1,396.4 11.06 liability No Yes
Biophar 2024 2024 guarante years
guarante
m Co., e
e
Ltd.
Total guarantee
Total guarantee cap
amount for
for subsidiaries
subsidiaries actually
approved during the 1,396.4 496.28
occurred during the
reporting period
reporting period
(C1)
(C2)
Total actual
Total approved
guarantee balance
guarantee cap for
for subsidiaries at
subsidiaries at the 6,196.4 601.95
the end of the
end of the reporting
reporting period
period (C3)
(C4)
Total amount of the Company’s guarantees (i.e. the sum of the above-mentioned 3 kinds of guarantees)
Total guarantees cap Total actual
approved during the guarantee amount
425,596.4 158,822.68
reporting period during the reporting
(A1+B1+C1) period (A2+B2+C2)
Total actual
Total approved
guarantee balance at
guarantee cap at the
910,834.43 the end of the 217,372.27
end of the reporting
reporting period
period (A3+B3+C3)
(A4+B4+C4)
Proportion of the actual guarantee amount
9.99%
(i.e. A4+B4+C4) in the Company’s net assets
Among them:
Balance of guarantees for shareholders, de
0
facto controllers and their related parties (D)
Amount of debt guarantees provided directly
or indirectly for the entities with a liability- 94,177.62
to-asset ratio over 70% (E)
The total amount of guarantees exceeds 50%
0
of the net assets (F)
Total guarantee amount of the above-
mentioned three kinds of guarantees 94,177.62
(D+E+F)
Note on the circumstance that guarantee
liability has occurred or there may be joint
liability for settlement during the reporting N/A
period in terms of unexpired guarantee
contracts (if any)
Note of external guarantees in violation of
N/A
prescribed procedures (if any)
Note on the specific circumstance if multiple methods are adopted for guarantees
120
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
3. Entrusted wealth management
□ Applicable N/A
No such case during the reporting period.
4. Other significant contracts
□ Applicable N/A
No other significant contract during the reporting period.
XIII. Other major events
□ Applicable N/A
No such case during the reporting period.
XIV. Major events of subsidiaries
Applicable □ N/A
1. As of the release of the Report, major assets had been disposed of in the liquidation of
Huadong Ningbo Medicine Co., Ltd. in the court. Some claims and accounts receivable remain to be
collected. The Company has assigned special personnel and actively advanced the subsequent
liquidation. The Company confirmed the investment income of 33,151,426.55 yuan in this reporting
period by applying the equity method.
2. As of the date of the Report, the Company’s patent infringement lawsuit against fermented
Cordyceps powder [please refer to the Announcement on the Wholly-owned Subsidiary Receiving the
Notice of Case Acceptance from Zhejiang Provincial Higher People’s Court (Announcement No.:
2024-001) disclosed by the Company on Cninfo (http://www.cninfo.com.cn) for details] has
completed two first-instance sessions of Zhejiang Provincial Higher People’s Court, and no results
are given.
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Section VII. Share Change and Shareholders
I. Changes in shares
1. Table of changes in shares
Unit: Share
Before the change Change in the period (+/-) After the change
Shares
converted
New Bonus
Quantity Ratio from Others Sub-total Quantity Ratio
shares shares
capital
reserve
I. Shares
subject to
condition 3,521,360 0.20% 0 0 0 -97,800 -97,800 3,423,560 0.20%
al
restriction
1.
Shares
0 0.00% 0 0 0 0 0 0 0.00%
held by
the state
2.
Shares
held by
state- 0 0.00% 0 0 0 0 0 0 0.00%
owned
corporatio
ns
3.
Shares
held by
3,372,360 0.19% 0 0 0 -67,800 -67,800 3,304,560 0.19%
other
domestic
investors
Inclu
ding:
Shares
held by 0 0.00% 0 0 0 0 0 0 0.00%
domestic
corporatio
ns
Shar
es held by
domestic 3,372,360 0.19% 0 0 0 -67,800 -67,800 3,304,560 0.19%
natural
persons
4.
Shares
149,000 0.01% 0 0 0 -30,000 -30,000 119,000 0.01%
held by
overseas
122
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
investors
Inclu
ding:
Shares
held by 0 0.00% 0 0 0 0 0 0 0.00%
overseas
corporatio
ns
Shar
es held by
overseas 149,000 0.01% 0 0 0 -30,000 -30,000 119,000 0.01%
natural
persons
II. Shares
1,750,903 1,750,903
without 99.80% 0 0 0 0 0 99.80%
,988 ,988
restriction
1.
Common 1,750,903 1,750,903
99.80% 0 0 0 0 0 99.80%
shares in ,988 ,988
yuan
2.
Domestic
ally listed 0 0.00% 0 0 0 0 0 0 0.00%
foreign
shares
3.
Foreign
shares 0 0.00% 0 0 0 0 0 0 0.00%
listed
overseas
4.
0 0.00% 0 0 0 0 0 0 0.00%
Others
III. Total
1,754,425 1,754,327
number of 100.00% 0 0 0 -97,800 -97,800 100.00%
,348 ,548
shares
Reasons for the changes in share capital
Applicable □ N/A
During the reporting period, the Company completed the repurchase and cancellation of some
restricted shares in the 2022 Restricted Share Incentive Scheme, and 97,800 restricted shares were
repurchased and canceled this time. The total number of restricted shares with equity incentives
decreased by 97,800 shares in total.
During the reporting period, the total number of shares decreased by 97,800 shares, of which the
total number of shares with restricted sales conditions decreased by 97,800 shares.
Approval for changes in share capital
Applicable □ N/A
1. On November 21, 2023, the Company convened the eighteenth session of the tenth Board of
Directors and the twelfth session of the tenth Board of Supervisors. During these two sessions, the
123
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Proposal on Repurchase and Cancellation of Some Restricted Shares was deliberated on and
approved. The Board of Directors also agreed to repurchase and cancel 97,800 shares of restricted
shares that have been granted but have not been released for four incentive subjects who are no longer
eligible for incentives due to resignation and two incentive subjects who fail to satisfy the standards
due to personal performance during the first restricted sales releasing period. The Company’s
independent directors issued independent opinions on related matters, and the Company’s Board of
Supervisors issued verification opinions on related matters. Lawyers and independent financial
advisers prepared related reports. On the same day, the Company disclosed a related announcement
on www.cninfo.com.cn.
2. On December 8, 2023, the Company convened the second extraordinary general meeting in
2023, deliberated on and approved the Proposal on Repurchase and Cancellation of Some Restricted
Shares and the Proposal on Increasing the Business Scope, Changing Registered Capital and
Amending the Articles of Association. On the same day, the Company disclosed the Announcement
on Repurchase and Cancellation of Some Restricted Shares to Reduce Registered Capital and Notify
the Creditors. As of January 24, 2024, the benchmark date for capital verification, i.e. within forty-
five days from the date when the Company announced the reduction of capital, no creditor asked the
Company to pay off its debts or provide corresponding guarantees.
3. On March 28, 2024, the Company disclosed the Announcement on Completion of Repurchase
and Cancellation of Some Restricted Shares. On March 26, 2024, the Company completed the
procedures for the repurchase and cancellation of 97,800 restricted shares in Shenzhen Branch of
China Securities Depository and Clearing Co., Ltd.
Transfer of shares
Applicable □ N/A
In March 2024, the Company submitted the relevant registration materials to Shenzhen Branch
of China Securities Depository and Clearing Co., Ltd. for 97,800 shares repurchased and canceled
under the equity incentive scheme. In the same month, China Securities Depository and Clearing Co.,
Ltd. issued the Confirmation of Securities Transfer Registration to the Company, and the total share
capital of the Company was reduced to 1,754,327,548 shares.
Progress of share repurchase
□ Applicable N/A
Progress of reducing repurchased shares through centralized bidding
□ Applicable N/A
Effects of changes in share capital on the basic earnings per share, diluted earnings per share for the most recent year and the most
recent period, the net assets per share attributable to the Company’s common shareholders and other financial indicators
Applicable □ N/A
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
The aforesaid changes due to share capital led to the increase of the Company’s basic earnings
per share, diluted earnings per share, and the net assets per share attributable to the Company’s
common shareholders and other financial indicators in H1 2024. If we calculate based on the total
number of shares before changes in share capital of 1,754,425,348, the Company’s basic earnings per
share, diluted earnings per share and net assets per share attributable to common shareholders of the
Company in H1 2024 were 0.96749 yuan/share, 0.96858 yuan/share and 12.4173 yuan/share
respectively. If we calculate based on the total number of shares after changes in the share capital of
1,754,327,548 shares, the Company’s basic earnings per share, diluted earnings per share and net
assets per share attributable to common shareholders of the Company in H1 2024 were 0.96752
yuan/share, 0.96861 yuan/share and 12.4177 yuan/share respectively.
Generally speaking, the aforesaid changes in share capital did not impose material impacts on
the basic earnings per share, diluted earnings per share, and the net assets per share attributable to the
Company’s common shareholders and other financial indicators in H1 2024.
Other disclosures the Company deems necessary or required by securities regulatory authorities
□ Applicable N/A
2. Changes in restricted shares
Applicable □ N/A
Unit: Share
Number of
Number of Number of newly Number of
restricted restricted increased restricted
Name of Reasons for
shares at the shares unlocked restricted shares at the Unlock date
shareholder restriction
beginning of during the shares during end of the
the period current period the current period
period
Be unlocked
according to
Equity relevant rules
incentive and of the
Zhang Jianfei 105,000 0 0 105,000
restricted Company’s
shares 2022 Restricted
Share Incentive
Scheme
Be unlocked
according to
Locked-up relevant rules
shares for of the
Zhang Jianfei 60,000 0 0 60,000
senior management of
managers shares for
senior
managers
Locked-up Be unlocked
Zhang Jianfei 7,500 0 0 7,500
shares for according to
125
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
senior relevant rules
managers of the
management of
shares for
senior
managers
Be unlocked
according to
Equity relevant rules
incentive and of the
Lv Liang 140,000 0 0 140,000
restricted Company’s
shares 2022 Restricted
Share Incentive
Scheme
Be unlocked
according to
Locked-up relevant rules
shares for of the
Lv Liang 10,000 0 0 10,000
senior management of
managers shares for
senior
managers
Be unlocked
according to
Equity relevant rules
incentive and of the
Zhu Li 105,000 0 0 105,000
restricted Company’s
shares 2022 Restricted
Share Incentive
Scheme
Be unlocked
according to
Locked-up relevant rules
shares for of the
Zhu Li 22,500 0 0 22,500
senior management of
managers shares for
senior
managers
Be unlocked
according to
Locked-up relevant rules
shares for of the
Zhu Li 7,500 0 0 7,500
senior management of
managers shares for
senior
managers
Be unlocked
according to
Equity relevant rules
incentive and of the
Wu Hui 105,000 0 0 105,000
restricted Company’s
shares 2022 Restricted
Share Incentive
Scheme
Locked-up Be unlocked
Wu Hui 7,500 0 0 7,500 shares for according to
senior relevant rules
126
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
managers of the
management of
shares for
senior
managers
Be unlocked
according to
Equity relevant rules
incentive and of the
Xu Junfang 105,000 0 0 105,000
restricted Company’s
shares 2022 Restricted
Share Incentive
Scheme
Be unlocked
according to
Equity relevant rules
LIU
incentive and of the
DONGZHOU 105,000 0 0 105,000
restricted Company’s
JEFFERY
shares 2022 Restricted
Share Incentive
Scheme
Be unlocked
according to
Equity relevant rules
incentive and of the
Chen Bo 70,000 0 0 70,000
restricted Company’s
shares 2022 Restricted
Share Incentive
Scheme
Be unlocked
according to
Locked-up relevant rules
shares for of the
Chen Bo 5,000 0 0 5,000
senior management of
managers shares for
senior
managers
Be unlocked
according to
Equity relevant rules
incentive and of the
Qiu Renbo 70,000 0 0 70,000
restricted Company’s
shares 2022 Restricted
Share Incentive
Scheme
Be unlocked
according to
Locked-up relevant rules
shares for of the
Qiu Renbo 5,000 0 0 5,000
senior management of
managers shares for
senior
managers
Equity Be unlocked
incentive and according to
Zhou Zhaohua 71,000 0 0 71,000
restricted relevant rules
shares of the
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Company’s
2022 Restricted
Share Incentive
Scheme
Be unlocked
according to
Equity relevant rules
incentive and of the
Huang Yanshan 71,000 0 0 71,000
restricted Company’s
shares 2022 Restricted
Share Incentive
Scheme
Be unlocked
according to
Equity relevant rules
incentive and of the
Qin Xiangtian 71,000 0 0 71,000
restricted Company’s
shares 2022 Restricted
Share Incentive
Scheme
Be unlocked
according to
Equity relevant rules
Other middle incentive, of the
management restricted Company’s
and core shares, and 2022 Restricted
2,378,360 97,800 0 2,280,560
technicians locked-up Share Incentive
(business shares for Scheme and the
specialists) senior management of
managers shares for
senior
managers
Total 3,521,360 97,800 0 3,423,560 -- --
II. Issuance and listing of securities
□ Applicable N/A
III. Total number of shareholders and their shareholdings
Unit: Share
Total number of preference shareholders
Total number of common
with restoration of the voting rights at the
shareholders at the end of 98,302 0
end of the reporting period (if any) (see
the reporting period
Note 8)
Particulars about common shareholders with a shareholding ratio of over 5% or the top 10 common shareholders (excluding
shares lent through conversions)
Total Pledged, marked or
Number of
common Number of locked-up status
Changes in common
shares held shares held
Name of Nature of Shareholdi the shares held
at the end without
shareholder shareholder ng ratio reporting with Status of
of the trading Quantity
period trading shares
reporting restriction
restrictions
period
128
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
China Domestic
Grand non-state- 730,938,15 730,938,15 147,070,00
41.66% 0 0 Pledge
Enterprises, owned 7 7 0
Inc. corporation
Hangzhou
State-
Huadong
owned 288,000,00 288,000,00
Medicine 16.42% 0 0 N/A 0
corporation 0 0
Group Co.,
s
Ltd.
Hong Kong
Securities
Overseas
Clearing 2.48% 43,423,174 -4531758 0 43,423,174 N/A 0
corporation
Company
Ltd.
China Domestic
Securities non-state-
1.26% 22,186,818 0 0 22,186,818 N/A 0
Finance owned
Co., Ltd. corporation
Industrial
and
Commercia
l Bank of
China
Limited -
China- Others 0.76% 13,285,154 -17795361 0 13,285,154 N/A 0
Europe
Healthcare
Hybrid
Securities
Investment
Fund
China
Constructio
n Bank
Corporatio
n - E Fund
Others 0.75% 13,215,232 318300 0 13,215,232 N/A 0
CSI 300
Healthcare
Exchange
Traded
Fund
China
Constructio
n Bank
Co., Ltd. -
ICBC
Credit Others 0.68% 12,000,000 -7000000 0 12,000,000 N/A 0
Suisse
Frontier
Medical
Equity
Fund
National
Social
Security Others 0.63% 10,983,604 -2636200 0 10,983,604 N/A 0
Fund -
Profile 0
129
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
China Life
Insurance
Company
Limited -
Traditional
Others 0.61% 10,683,967 3101653 0 10,683,967 N/A 0
- General
Insurance
Products－
005L－
CT001 SH
Industrial
and
Commercia
l Bank of
China
Limited -
Others 0.60% 10,566,645 3927500 0 10,566,645 N/A 0
Huatai-
PineBridge
CSI 300
Exchange
Traded
Fund
Strategic investors or
general corporations
become the top 10
common shareholders due N/A
to the placement of new
shares (if any) (see Note
3)
Explanation on associated
relationships or concerted The Company does not know whether the above-mentioned shareholders are related parties or
actions among the above- whether they are acting-in-concert parties with one another.
mentioned shareholders
Description about above-
mentioned shareholders’
entrusting/being entrusted N/A
with and waiving voting
rights
Explanation of special
account for repurchase
among the top 10 N/A
shareholders (if any) (see
Note 11)
Particulars about top 10 shareholders holding common shares without trading restrictions (excluding shares lent through
conversions and locked-up shares for senior managers)
Type of shares
Number of common shares without trading restrictions held at the end
Name of shareholder Type of
of the reporting period Quantity
shares
Common
China Grand Enterprises, 730,938,15
730,938,157 shares in
Inc. 7
yuan
Common
Hangzhou Huadong 288,000,00
288,000,000 shares in
Medicine Group Co., Ltd. 0
yuan
Hong Kong Securities 43,423,174 Common 43,423,174
130
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Clearing Company Ltd. shares in
yuan
Common
China Securities Finance
22,186,818 shares in 22,186,818
Co., Ltd.
yuan
Industrial and
Commercial Bank of
Common
China Limited - China-
13,285,154 shares in 13,285,154
Europe Healthcare Hybrid
yuan
Securities Investment
Fund
China Construction Bank
Common
Corporation - E Fund CSI
13,215,232 shares in 13,215,232
300 Healthcare Exchange
yuan
Traded Fund
China Construction Bank
Common
Co., Ltd. - ICBC Credit
12,000,000 shares in 12,000,000
Suisse Frontier Medical
yuan
Equity Fund
Common
National Social Security
10,983,604 shares in 10,983,604
Fund - Profile 0
yuan
China Life Insurance
Company Limited - Common
Traditional - General 10,683,967 shares in 10,683,967
Insurance Products－ yuan
005L－CT001 SH
Industrial and
Commercial Bank of Common
China Limited - Huatai- 10,566,645 shares in 10,566,645
PineBridge CSI 300 yuan
Exchange Traded Fund
Description for affiliated
relationship or concerted
action among the top 10
shareholders holding
common shares without
The Company does not know whether the above-mentioned shareholders are related parties or
trading restrictions and
whether they are acting-in-concert parties with one another
between the top 10
shareholders holding
common shares without
trading restrictions and the
top 10 shareholders
Description of the
participation in margin
At the end of the reporting period, the Company had no shareholders holding its shares through
trading business of the top
margin trading and securities lending accounts among the top 10 common shareholders
10 common shareholders
(if any) (see Note 4)
Participation of shareholders with a shareholding ratio of over 5%, the top 10 shareholders, and the 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%, the top 10 shareholders, and the top 10 shareholders holding
tradable shares without trading restriction conditions in refinancing lending
131
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
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
Grand 730,938,15 730,938,15
41.66% 0 0.00% 41.66% 0 0.00%
Enterprises, 7 7
Inc.
Hangzhou
Huadong
288,000,00 288,000,00
Medicine 16.42% 0 0.00% 16.42% 0 0.00%
0 0
Group Co.,
Ltd.
Hong Kong
Securities
Clearing 47,954,932 2.73% 0 0.00% 43,423,174 2.48% 0 0.00%
Company
Ltd.
China
Securities
22,186,818 1.26% 0 0.00% 22,186,818 1.26% 0 0.00%
Finance
Co., Ltd.
Industrial
and
Commercia
l Bank of
China
Limited -
China- 31,080,515 1.77% 0 0.00% 13,285,154 0.76% 0 0.00%
Europe
Healthcare
Hybrid
Securities
Investment
Fund
China
Constructio
n Bank
Corporatio
n - E Fund
12,896,932 0.74% 328,500 0.02% 13,215,232 0.75% 0 0.00%
CSI 300
Healthcare
Exchange
Traded
Fund
China
Constructio
n Bank
Co., Ltd. -
19,000,000 1.08% 0 0.00% 12,000,000 0.68% 0 0.00%
ICBC
Credit
Suisse
Frontier
132
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Medical
Equity
Fund
National
Social
Security 13,619,804 0.78% 0 0.00% 10,983,604 0.63% 0 0.00%
Fund -
Profile 0
China Life
Insurance
Company
Limited -
Traditional
7,582,314 0.43% 0 0.00% 10,683,967 0.61% 0 0.00%
- General
Insurance
Products－
005L－
CT001 SH
Industrial
and
Commercia
l Bank of
China
Limited -
6,639,145 0.38% 17,500 0.00% 10,566,645 0.60% 4,600 0.00%
Huatai-
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
end of the previous period due to shares lent/returned through conversions
□ Applicable N/A
Whether the Company’s top 10 common shareholders or the top 10 shareholders holding common shares without trading restrictions
have carried out any agreement to repurchase transaction during the reporting period
□Yes No
The Company’s top 10 common shareholders or the top 10 shareholders holding common shares without trading restrictions have not
carried out any agreement to repurchase transaction during the reporting period.
IV. Changes in shareholding of directors, supervisors and senior management members
□ Applicable N/A
The shareholding of directors, supervisors and senior management of the Company has not changed during the reporting period.
Please refer to the 2023 Annual Report for details.
V. Changes in holding shareholders or the de facto controller
Change of the controlling shareholder during the reporting period
□ Applicable N/A
No such case during the reporting period.
Change of the de facto controller during the reporting period
□ Applicable N/A
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No such case during the reporting period.
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Section VIII. Information on Preferred Shares
□ Applicable N/A
No such case during the reporting period.
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Section IX. Information on Bonds
□ Applicable N/A
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Section X. Financial Report
I. Audit report
Whether the semi-annual report has been audited?
□Yes No
The Company’s semi-annual financial report is not audited.
II. Financial statements
The unit of statements in the financial notes is: yuan.
1. Consolidated balance sheet
Prepared by: Huadong Medicine Co., Ltd.
Unit: yuan
Item Ending balance Opening balance
Current assets:
Monetary funds 5,650,547,127.07 4,663,378,011.64
Settlement reserve
Lending funds
Trading financial assets
Derivative financial assets 16,488,136.54 16,434,493.97
Notes receivable 11,341,351.13 6,812,089.97
Accounts receivable 7,964,566,076.36 7,455,250,690.83
Receivables financing 1,659,103,759.04 1,434,366,300.69
Prepayments 331,737,711.33 279,207,655.40
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve
receivable
Other receivables 411,505,485.20 291,135,104.33
Including: Interests receivable
Dividends receivable 223,608.84 2,623,608.84
Financial assets purchased for resale
Inventories 4,379,240,489.45 4,290,214,266.03
Among them: data resource
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 81,397,040.52 59,881,757.08
Total current assets 20,505,927,176.64 18,496,680,369.94
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Non-current assets:
Loans and prepayments issuance
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 1,540,257,326.17 1,535,907,809.85
Other equity instrument investments 566,568,278.72 565,223,872.68
Other non-current financial assets
Investment real estate 12,270,841.77 12,746,181.87
Fixed assets 4,158,172,111.39 4,140,144,817.51
Construction in progress 918,366,234.28 913,147,212.17
Productive biological assets
Oil and gas assets
Right-of-use assets 157,318,875.96 151,175,007.16
Intangible assets 2,486,120,816.95 2,333,787,357.62
Among them: data resource
Development expenditure 1,149,241,824.64 992,532,091.86
Among them: data resource
Goodwill 2,591,744,585.15 2,598,696,062.31
Long-term deferred expenses 19,756,292.05 20,053,854.34
Deferred income tax assets 233,149,891.40 187,808,574.44
Other non-current assets 1,827,889,520.52 1,561,458,605.23
Total non-current assets 15,660,856,599.00 15,012,681,447.04
Total assets 36,166,783,775.64 33,509,361,816.98
Current liabilities:
Short-term borrowings 1,405,140,132.05 822,380,292.37
Borrowing from the central bank
Borrowing from other banks and other
financial institutions
Trading financial liabilities
Derivative financial liabilities
Notes payable 2,184,117,028.14 1,727,420,960.30
Accounts payable 4,791,397,351.82 4,374,832,979.95
Advances from customers 1,732,122.70 1,393,551.48
Contract liabilities 125,051,134.31 135,459,275.17
Financial assets sold for repurchase
Deposits from customers and due from
banks
Receipts for buying and selling
securities as proxy
Receipts for underwriting securities as
proxy
Employee benefits payable 213,405,220.46 359,148,474.25
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Taxes payable 452,700,174.26 489,385,055.57
Other payables 3,426,723,106.12 2,518,621,382.87
Including: Interests payable
Dividends payable 146,258,219.60 143,024,219.60
Handling fees and commissions
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
683,210,855.71 359,342,623.38
year
Other current liabilities 9,434,101.90 14,621,494.85
Total current liabilities 13,292,911,227.47 10,802,606,090.19
Non-current liabilities:
Insurance policy reserve
Long-term borrowings 81,565,510.08 520,759,460.07
Bonds payable
Including: Preferred shares
Perpetual bond
Lease liabilities 69,083,110.73 56,695,158.59
Long-term payables 25,507,681.65 107,251,248.59
Long-term employee salary payable
Estimated liabilities 37,973,290.55 37,184,074.06
Deferred income 158,889,475.61 171,056,435.34
Deferred income tax liabilities 173,389,997.24 184,373,974.04
Other non-current liabilities 46,192,650.00 47,170,650.00
Total non-current liabilities 592,601,715.86 1,124,491,000.69
Total liabilities 13,885,512,943.33 11,927,097,090.88
Owners’ equity:
Share capital 1,754,327,548.00 1,754,425,348.00
Other equity instruments
Including: Preferred shares
Perpetual bond
Capital reserves 2,484,397,834.82 2,446,313,774.82
Less: Treasury stock 82,074,369.07 84,519,369.07
Other comprehensive income -46,627,046.46 -40,341,544.18
Special reserves
Surplus reserves 1,277,779,972.18 1,277,779,972.18
General risk reserve
Undistributed profit 16,372,490,548.27 15,693,951,574.91
Total owners’ equity attributable to the
21,760,294,487.74 21,047,609,756.66
parent company
Minority interests 520,976,344.57 534,654,969.44
Total owners’ equity 22,281,270,832.31 21,582,264,726.10
Total liabilities & owners’ equity 36,166,783,775.64 33,509,361,816.98
Legal representative: Lv Liang Person in charge of accounting: Lv Liang Person in charge of the Accounting Department: Qiu
Renbo
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2. Balance sheet of the parent company
Unit: yuan
Item Ending balance Opening balance
Current assets:
Monetary funds 4,182,581,173.89 3,202,969,593.32
Trading financial assets
Derivative financial assets
Notes receivable 11,341,351.13 6,812,089.97
Accounts receivable 4,202,291,765.73 4,232,306,149.56
Receivables financing 531,734,538.84 257,987,672.16
Prepayments 67,645,946.32 104,299,584.06
Other receivables 1,949,221,169.57 1,826,331,443.42
Including: Interests receivable
Dividends receivable 98,566,000.00 95,200,000.00
Inventories 2,315,511,718.83 2,064,496,012.45
Among them: data resource
Contract assets
Assets held for sale
Non-current assets due within one year
Other non-current assets
Total current assets 13,260,327,664.31 11,695,202,544.94
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 6,001,053,679.88 5,961,344,825.40
Other equity instrument investments 10,080,000.00 10,080,000.00
Other non-current financial assets
Investment real estate 6,493,762.30 6,734,389.40
Fixed assets 134,313,241.48 131,994,767.68
Construction in progress 1,070,251.29 423,088.16
Productive biological assets
Oil and gas assets
Right-of-use assets 7,010,188.86 9,101,653.07
Intangible assets 147,676,477.01 160,438,646.19
Among them: data resource
Development expenditure
Among them: data resource
Goodwill
Long-term deferred expenses
Deferred income tax assets 54,954,781.10 53,563,924.40
Other non-current assets 301,681,785.09 250,146,911.16
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Total non-current assets 6,664,334,167.01 6,583,828,205.46
Total assets 19,924,661,831.32 18,279,030,750.40
Current liabilities:
Short-term borrowings 622,685,172.04 425,185,172.23
Trading financial liabilities
Derivative financial liabilities
Notes payable 726,204,199.58 500,551,829.47
Accounts payable 3,496,476,660.19 3,128,538,765.74
Advances from customers
Contract liabilities 28,491,227.99 56,745,329.30
Employee benefits payable 4,946,323.13 13,664,428.10
Taxes payable 77,930,025.36 67,429,440.31
Other payables 2,648,304,724.67 1,970,918,606.32
Including: Interests payable
Dividends payable 224,219.60 224,219.60
Liabilities held for sale
Non-current liabilities due within one
39,402,434.51 41,336,796.82
year
Other current liabilities 3,700,022.86 6,234,741.10
Total current liabilities 7,648,140,790.33 6,210,605,109.39
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bond
Lease liabilities 3,610,383.31
Long-term payables
Long-term employee salary payable
Estimated Liabilities
Deferred income 31,718,348.73 33,001,286.19
Deferred income tax liabilities
Other non-current liabilities 46,192,650.00 47,170,650.00
Total non-current liabilities 77,910,998.73 83,782,319.50
Total liabilities 7,726,051,789.06 6,294,387,428.89
Owners’ equity:
Share capital 1,754,327,548.00 1,754,425,348.00
Other equity instruments
Including: Preferred shares
Perpetual bond
Capital reserves 2,337,499,391.16 2,329,361,969.66
Less: Treasury stock 82,074,369.07 84,519,369.07
Other comprehensive income
Special reserves
Surplus reserves 1,355,635,731.62 1,355,635,731.62
Undistributed profit 6,833,221,740.55 6,629,739,641.30
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Total owners’ equity 12,198,610,042.26 11,984,643,321.51
Total liabilities & owners’ equity 19,924,661,831.32 18,279,030,750.40
3. Consolidated income statement
Unit: yuan
Item Semi-Annual 2024 Semi-Annual 2023
I. Total operating revenue 20,965,065,605.67 20,385,344,288.81
Including: Operating revenue 20,965,065,605.67 20,385,344,288.81
Interests income
Premiums earned
Handling fees and
commissions received
II. Total operating cost 18,876,799,219.53 18,443,622,876.24
Including: Operating cost 14,109,803,647.16 13,917,418,061.11
Interest expenses
Handling fees and
commissions paid
Surrender value
Net payment of insurance
claims
Net appropriation of policy
reserve
Policy dividends paid
Reinsurance expenses
Taxes and surcharges 111,008,570.22 106,685,622.91
Sales expenses 3,274,822,873.39 3,083,786,005.03
Administrative expenses 714,633,116.91 721,477,862.62
R&D expenses 643,106,566.65 558,407,142.27
Financial expenses 23,424,445.20 55,848,182.30
Including: Interest expenses 55,550,660.47 55,401,149.67
Interests income 53,142,421.17 33,022,555.87
Add: Other income 93,707,046.82 34,813,373.70
Investment income (Losses are
-47,845,863.81 -136,885,042.56
indicated by “-”)
Including: Investment gains
(losses) in associated enterprise and -25,256,184.91 -120,429,152.98
joint-venture enterprise
Gains on the
derecognition of financial assets
measured at amortized cost
Gains on exchange (Losses are
indicated by “-”)
Gains on net exposure hedging
(Losses are indicated by “-”)
Gains from changes in fair values -5,100,698.38
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(Losses are indicated by “-”)
Credit impairment losses (Losses
-57,939,915.37 -36,432,398.31
are indicated by “-”)
Impairment gains (losses) of
-3,175,583.57
assets (Losses are indicated by “-”)
Asset disposal income (Losses
4,927,280.24 3,519,820.08
are indicated by “-”)
III. Operating profit (Losses are
2,081,114,934.02 1,798,460,883.53
indicated by “-”)
Add: Non-operating revenue 5,221,955.01 2,972,826.61
Less: Non-operating expenses 37,784,277.75 16,298,554.80
IV. Total profit (Total losses are indicated
2,048,552,611.28 1,785,135,155.34
by “-”)
Less: Income tax expense 360,337,560.24 345,279,440.91
V. Net profit (Net losses are indicated by
1,688,215,051.04 1,439,855,714.43
“-”)
(I) Classification by business
continuity
1. Net profit from continuing
operations (Net losses are indicated by 1,688,215,051.04 1,439,855,714.43
“-”)
2. Net profit at terminational
operation (Net losses are indicated by
“-”)
(II) Classification by attribution of
ownership
1. Net profit attributable to
shareholders of the parent company (Net 1,696,020,589.20 1,433,824,629.56
losses are indicated by “-”)
2. Profit or loss attributable to
minority shareholders (Net losses are -7,805,538.16 6,031,084.87
indicated by “-”)
VI. Other comprehensive income, net of
-6,285,502.28 -8,889,448.01
income tax
Other comprehensive income
attributable to owners of the parent -6,285,502.28 -8,889,448.01
company, net of tax
(I) Other comprehensive income
that cannot be reclassified into -808,768.81
gains/losses
1. Changes in remeasurement on
the defined benefit plan
2. Other comprehensive income
that cannot be reclassified into
gains/losses under equity method
3. Changes in fair value of other
-808,768.81
equity instrument investments
4. Changes in fair value of credit
risk of the enterprise
5. Others
(II) Other comprehensive income to
-6,285,502.28 -8,080,679.20
be reclassified into gains/losses
1. Other comprehensive income
1,326,766.89
that can be reclassified into gains/losses
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under equity method
2. Changes in fair value of other
debt investments
3. Amount of financial assets
reclassified into other comprehensive
income
4. Credit impairment reserve of
other debt investments
5. Cash flow hedging reserve
6. Exchange differences from
translation of foreign currency financial -7,612,269.17 -8,080,679.20
statements
7. Others
Net amount after tax of other
comprehensive income attributable to
minority shareholders
VII. Total comprehensive income 1,681,929,548.76 1,430,966,266.42
Total comprehensive income
attributable to owners of the parent 1,689,735,086.92 1,424,935,181.55
company
Total comprehensive income
-7,805,538.16 6,031,084.87
attributable to minority shareholders
VIII. Earnings per share (EPS):
(I) Basic EPS 0.9675 0.8194
(II) Diluted EPS 0.9686 0.8190
As for business merger under the same control in the current period, the net profit generated by the merged party before the was
yuan, and that generated during the previous period was yuan.
Legal representative: Lv Liang Person in charge of accounting: Lv Liang Person in charge of the Accounting Department:
Qiu Renbo
4. Income statement of the parent company
Unit: yuan
Item Semi-Annual 2024 Semi-Annual 2023
I. Total operating revenue 11,394,995,446.30 11,079,388,260.41
Less: Total operating cost 10,768,645,517.84 10,420,679,546.07
Taxes and surcharges 14,643,641.79 12,616,117.10
Sales expenses 204,454,181.04 207,782,464.30
Administrative expenses 91,647,034.58 96,229,619.65
R&D expenses
Financial expenses -12,375,772.11 4,055,926.11
Including: Interest expenses 29,281,312.24 21,720,831.46
Interests income 44,142,368.81 23,053,892.55
Add: Other income 9,058,950.35 2,284,938.08
Investment income (Losses are
1,067,439,548.33 1,023,821,754.37
indicated by “-”)
Including: Investment gains
(losses) in associated enterprise and -12,860,749.73 -10,790,429.82
joint-venture enterprise
Gains on the
derecognition of financial assets
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measured at amortized cost (Losses are
indicated by “-”)
Gains on net exposure hedging
(Losses are indicated by “-”)
Gains from changes in fair values
(Losses are indicated by “-”)
Credit impairment losses (Losses
-84,295,275.84 -54,688,951.13
are indicated by “-”)
Impairment gains (losses) of
assets (Losses are indicated by “-”)
Asset disposal income (Losses
1,434,977.91 3,543,591.91
are indicated by “-”)
II. Operating profit (Losses are indicated
1,321,619,043.91 1,312,985,920.41
by “-”)
Add: Non-operating revenue 41,123.57 17,440.99
Less: Non-operating expenses 6,248,443.03 1,518,858.46
III. Total profit (Total losses are indicated
1,315,411,724.45 1,311,484,502.94
by “-”)
Less: Income tax expense 94,448,009.36 104,135,140.80
IV. Net profit (Net losses are indicated by
1,220,963,715.09 1,207,349,362.14
“-”)
(I) Net profit from continuous
operations (Net losses are indicated by 1,220,963,715.09 1,207,349,362.14
“-”)
(II) Net profit from discontinued
operations (Net losses are indicated by
“-”)
V. Other comprehensive income, net of
income tax
(I) Other comprehensive income
that cannot be reclassified into
gains/losses
1. Changes in remeasurement on
the defined benefit plan
2. Other comprehensive income
that cannot be reclassified into
gains/losses under equity method
3. Changes in fair value of other
equity instrument investments
4. Changes in fair value of credit
risk of the enterprise
5. Others
(II) Other comprehensive income to
be reclassified into gains/losses
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
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5. Cash flow hedging reserve
6. Exchange differences from
translation of foreign currency financial
statements
7. Others
VI. Total comprehensive income 1,220,963,715.09 1,207,349,362.14
VII. Earnings per share (EPS):
(I) Basic EPS
(II) Diluted EPS
5. Consolidated cash flow statement
Unit: yuan
Item Semi-Annual 2024 Semi-Annual 2023
I. Cash flows from operating activities:
Cash received from the sale of goods
21,640,152,875.03 22,512,508,261.51
and the rendering 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
Receipts of tax refund 8,235,381.72 13,105,796.43
Other cash receipts in relation to
239,783,680.99 253,862,517.46
operating activities
Cash inflows from operating activities 21,888,171,937.74 22,779,476,575.40
Cash payments for goods purchased
13,604,550,741.22 14,322,943,161.95
and services received
Net increase in customer loans and
prepayments
Net increase in deposits of central
bank and due from banks
Cash payments for original insurance
claims
Net increase in lending funds to other
banks and other financial institutions
Cash payments for interests, handling
fees and commissions
Cash payments for policy dividends
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Cash payments to and on behalf of
2,323,118,629.52 1,739,212,838.99
employees
Payments of various types of taxes 1,477,481,035.41 1,395,137,423.20
Other cash payments in relation to
2,207,765,050.15 3,300,439,402.61
operating activities
Cash outflows for operating activities 19,612,915,456.30 20,757,732,826.75
Net cash flow from operating activities 2,275,256,481.44 2,021,743,748.65
II. Cash flows from investing activities
Cash receipts from recovery of
3,000,000.00
investments
Cash receipts from investment income 27,900,000.00 76,500,000.00
Net cash receipts from disposal of
fixed assets, intangible assets and other 6,946,255.32 5,336,825.17
long-term assets
Net cash from disposal of subsidiaries
and other business units
Other cash receipts in relation to
255,959,940.22 148,464,580.63
investing activities
Cash inflows from investing activities 293,806,195.54 230,301,405.80
Cash payments for purchase and
construction of fixed assets, intangible 658,042,086.97 597,637,675.13
assets and other long-term assets
Cash payments for investment 147,660,247.99 52,794,250.00
Net increase in pledge loans
Net cash paid for acquisition of
130,057,945.49
subsidiaries and other business units
Other cash payments in relation to
157,607,933.95 27,498,562.60
investing activities
Cash outflows for investing activities 963,310,268.91 807,988,433.22
Net cash flow from investing activities -669,504,073.37 -577,687,027.42
III. Cash flows from financing activities:
Cash receipts from absorbing
investments
Including: Cash receipts from capital
contributions from minority owners of
subsidiaries
Cash receipts from borrowing 2,552,138,017.63 2,148,865,020.50
Other cash receipts in relation to
291,490,536.33 457,402,316.71
financing activities
Cash inflows from financing activities 2,843,628,553.96 2,606,267,337.21
Cash repayments of borrowings 1,988,027,915.09 2,557,868,542.48
Cash payments for distribution of
dividends or profits or settlement of 1,082,542,915.33 618,612,489.40
interest expenses
Including: Dividends and profits paid
2,760,660.00 13,328,000.00
by subsidiaries to minority shareholders
Other cash payments in relation to
260,287,332.28 356,277,912.88
financing activities
Cash outflows for financing activities 3,330,858,162.70 3,532,758,944.76
Net cash flow from financing activities -487,229,608.74 -926,491,607.55
IV. Effect of foreign exchange rate
-5,787,341.62 8,950,719.04
changes on cash and cash equivalents
V. Net increase in cash and cash
1,112,735,457.71 526,515,832.72
equivalents
Add: Opening balance of cash and 4,208,160,010.91 3,416,910,702.33
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2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
cash equivalents
VI. Closing balance of cash and cash
5,320,895,468.62 3,943,426,535.05
equivalents
6. Cash flow statement of the parent company
Unit: yuan
Item Semi-Annual 2024 Semi-Annual 2023
I. Cash flows from operating activities:
Cash received from the sale of goods
12,022,456,324.57 12,114,913,125.10
and the rendering of services
Receipts of tax refund
Other cash receipts in relation to
112,386,980.37 347,415,767.25
operating activities
Cash inflows from operating activities 12,134,843,304.94 12,462,328,892.35
Cash payments for goods purchased
11,234,484,512.22 11,092,284,263.73
and services received
Cash payments to and on behalf of
181,096,779.79 142,869,496.55
employees
Payments of various types of taxes 261,460,389.34 195,302,704.64
Other cash payments in relation to
109,374,865.51 460,908,694.29
operating activities
Cash outflows for operating activities 11,786,416,546.86 11,891,365,159.21
Net cash flow from operating activities 348,426,758.08 570,963,733.14
II. Cash flows from investing activities
Cash receipts from recovery of
investments
Cash receipts from investment income 1,028,373,340.00 676,500,000.00
Net cash receipts from disposal of
fixed assets, intangible assets and other 1,779,570.00 5,172,908.53
long-term assets
Net cash from disposal of subsidiaries
and other business units
Other cash receipts in relation to
927,233,012.13 334,071,068.06
investing activities
Cash inflows from investing activities 1,957,385,922.13 1,015,743,976.59
Cash payments for purchase and
construction of fixed assets, intangible 82,128,743.63 13,018,410.49
assets and other long-term assets
Cash payments for investment 35,000,000.00 360,565,000.00
Net cash paid for acquisition of
10,000,000.00
subsidiaries and other business units
Other cash payments in relation to
829,431,410.00 385,407,000.00
investing activities
Cash outflows for investing activities 946,560,153.63 768,990,410.49
Net cash flow from investing activities 1,010,825,768.50 246,753,566.10
III. Cash flows from financing activities:
Cash receipts from absorbing
investments
Cash receipts from borrowing 1,819,976,876.04 1,771,457,855.10
Other cash receipts in relation to
4,325,139,018.15 2,410,893,781.55
financing activities
Cash inflows from financing activities 6,145,115,894.19 4,182,351,636.65
Cash repayments of borrowings 1,574,976,876.04 1,722,457,855.10
Cash payments for distribution of 1,046,668,681.07 573,738,738.44
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dividends or profits or settlement of
interest expenses
Other cash payments in relation to
3,648,651,342.87 1,950,457,429.10
financing activities
Cash outflows for financing activities 6,270,296,899.98 4,246,654,022.64
Net cash flow from financing activities -125,181,005.79 -64,302,385.99
IV. Effect of foreign exchange rate
-138,375.85
changes on cash and cash equivalents
V. Net increase in cash and cash
1,234,071,520.79 753,276,537.40
equivalents
Add: Opening balance of cash and
2,946,999,653.10 2,029,798,269.62
cash equivalents
VI. Closing balance of cash and cash
4,181,071,173.89 2,783,074,807.02
equivalents
7. Consolidated statement of changes in owners’ equity
Amount in the current period
Unit: yuan
Semi-Annual 2024
Owners’ equity attributable to the parent company
Other equity Oth Tota
instruments Less er Und l
Gen Min
Item Shar Capi : com Spe Surp istri ority own
Pref Perp eral
e tal Trea preh cial lus bute Oth Sub- inter ers’
erre etua risk
capi Oth rese sury ensi rese rese d ers total ests equi
d l rese
tal ers rves stoc ve rves rves prof ty
shar bon rve
k inco it
es d me
- 15,6 21,0 21,5
I. Balance at 1,75 2,44 84,5 1,27 534,
40,3 93,9 47,6 82,2
the end of 4,42 6,31 19,3 7,77 654,
41,5 51,5 09,7 64,7
the period of 5,34 3,77 69.0 9,97 969.
44.1 74.9 56.6 26.1
the prior year 8.00 4.82 7 2.18 44
8 1 6 0
Add:
Changes in
accounting
policies
Err
or correction
in the prior
periods
Ot
hers
II. Balance at
- 15,6 21,0 21,5
the 1,75 2,44 84,5 1,27 534,
40,3 93,9 47,6 82,2
beginning of 4,42 6,31 19,3 7,77 654,
41,5 51,5 09,7 64,7
the period of 5,34 3,77 69.0 9,97 969.
44.1 74.9 56.6 26.1
the current 8.00 4.82 7 2.18 44
8 1 6 0
year
III. Amount - 38,0 - - 678, 712, - 699,
of change in 97,8 84,0 2,44 6,28 538, 684, 13,6 006,
the current 00.0 60.0 5,00 5,50 973. 731. 78,6 106.
149
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
period 0 0 0.00 2.28 36 08 24.8 21
(Decreases 7
are indicated
by “-”)
- 1,69 1,68 - 1,68
(I) Total
6,28 6,02 9,73 7,80 1,92
comprehensi
5,50 0,58 5,08 5,53 9,54
ve income
2.28 9.20 6.92 8.16 8.76
(II) Capital
- - 10,3 10,4
contributed 8,01 121,
97,8 2,44 63,0 84,6
by owners 5,84 573.
00.0 5,00 48.2 21.5
and capital 8.21 29
0 0.00 1 0
decreases
1. Common - - - -
shares 97,8 2,34 2,44 2,44
invested by 00.0 7,20 5,00 5,00
owners 0 0.00 0.00 0.00
2. Capital
invested by
holders of
other equity
instruments
3. Amount of
share-based 10,3 10,3 10,4
121,
payment 63,0 63,0 84,6
573.
included in 48.2 48.2 21.5
29
owners’ 1 1 0
equity
-
2,44 2,44
2,44
4. Others 5,00 5,00
5,00
0.00 0.00
0.00
- - -
-
1,01 1,01 1,02
(III) Profit 5,99
7,48 7,48 3,47
distribution 4,66
1,61 1,61 6,27
0.00
5.84 5.84 5.84
1.
Withdrawal
of surplus
reserve
2. Provision
of general
risk reserve
- - -
3. -
1,01 1,01 1,02
Distribution 5,99
7,48 7,48 3,47
to owners (or 4,66
1,61 1,61 6,27
shareholders) 0.00
5.84 5.84 5.84
4. Others
(IV) Internal
conversion
of owners’
equity
150
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
1. Capital (or
share capital)
increase
from capital
reserve
conversion
2. Capital (or
share capital)
increase
from surplus
reserve
conversion
3. Recovery
of losses by
surplus
reserve
4. Retained
earnings
from transfer
of changes in
the defined
benefit plan
5. Retained
earnings
from transfer
of other
comprehensi
ve income
6. Others
(V) Special
reserve
1.
Withdrawal
in the current
period
2. Use in the
current
period
30,0 30,0 30,0
68,2 68,2 68,2
(VI) Others
11.7 11.7 11.7
9 9 9
- 16,3 21,7 22,2
IV. Balance 1,75 2,48 82,0 1,27 520,
46,6 72,4 60,2 81,2
at the end of 4,32 4,39 74,3 7,77 976,
27,0 90,5 94,4 70,8
the current 7,54 7,83 69.0 9,97 344.
46.4 48.2 87.7 32.3
period 8.00 4.82 7 2.18 57
6 7 4 1
Amount in the prior year
Unit: yuan
Semi-Annual 2023
Item Owners’ equity attributable to the parent company Min Tota
Shar Other equity Capi Less Oth Spe Surp Gen Und Oth Sub- ority l
151
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
e instruments tal : er cial lus eral istri ers total inter own
capi rese Trea com rese rese risk bute ests ers’
tal Pref Perp rves sury preh rves rves rese d equi
erre etua stoc ensi rve prof ty
Oth
d l k ve it
ers
shar bon inco
es d me
- 13,4 18,5 19,1
I. Balance at 1,75 2,37 104, 1,15 598,
88,5 88,0 77,9 76,4
the end of 3,99 7,88 645, 1,21 522,
52,6 21,2 19,2 41,3
the period of 5,34 7,24 000. 3,03 145.
36.4 39.9 37.3 83.1
the prior year 8.00 6.39 00 9.48 76
2 4 9 5
Add:
Changes in
accounting
policies
Err
or correction
in the prior
periods
Ot
hers
II. Balance at
- 13,4 18,5 19,1
the 1,75 2,37 104, 1,15 598,
88,5 88,0 77,9 76,4
beginning of 3,99 7,88 645, 1,21 522,
52,6 21,2 19,2 41,3
the period of 5,34 7,24 000. 3,03 145.
36.4 39.9 37.3 83.1
the current 8.00 6.39 00 9.48 76
2 4 9 5
year
III. Amount
of change in
30,0 - 927, 954, 52,0 1,00
the current 228,
41,5 3,01 223, 476, 90,7 6,56
period 665.
53.2 7,82 970. 360. 54.6 7,11
(Decreases 80
4 9.08 81 77 3 5.40
are indicated
by “-”)
- 1,43 1,43 1,43
(I) Total 6,03
3,01 3,82 0,80 6,83
comprehensi 1,08
7,82 4,62 6,80 7,88
ve income 4.87
9.08 9.56 0.48 5.35
(II) Capital
19,7 19,7 47,9 67,7
contributed
48,6 48,6 89,7 38,3
by owners
39.5 39.5 27.8 67.4
and capital
8 8 6 4
decreases
1. Common 47,8 47,8
shares 69,7 69,7
invested by 70.1 70.1
owners 0 0
2. Capital
invested by
holders of
other equity
instruments
19,7 19,7 119, 19,8
3. Amount of
48,6 48,6 957. 68,5
152
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
share-based 39.5 39.5 76 97.3
payment 8 8 4
included in
owners’
equity
4. Others
- - -
-
508, 508, 510,
(III) Profit 1,96
658, 658, 618,
distribution 0,00
650. 650. 650.
0.00
92 92 92
1.
Withdrawal
of surplus
reserve
2. Provision
of general
risk reserve
- - -
3. -
508, 508, 510,
Distribution 1,96
658, 658, 618,
to owners (or 0,00
650. 650. 650.
shareholders) 0.00
92 92 92
4. Others
(IV) Internal
228, 2,05 2,28 2,28
conversion
665. 7,99 6,65 6,65
of owners’
80 2.17 7.97 7.97
equity
1. Capital (or
share capital)
increase
from capital
reserve
conversion
2. Capital (or
share capital)
increase
from surplus
reserve
conversion
3. Recovery
of losses by
surplus
reserve
4. Retained
earnings
from transfer
of changes in
the defined
benefit plan
5. Retained
228, 2,05 2,28 2,28
earnings
665. 7,99 6,65 6,65
from transfer
80 2.17 7.97 7.97
of other
153
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
comprehensi
ve income
6. Others
(V) Special
reserve
1.
Withdrawal
in the current
period
2. Use in the
current
period
10,2 10,2 10,3
29,9
92,9 92,9 22,8
(VI) Others 41.9
13.6 13.6 55.5
0
6 6 6
- 14,4 19,5 20,1
IV. Balance 1,75 2,40 104, 1,15 650,
91,5 15,2 32,3 83,0
at the end of 3,99 7,92 645, 1,44 612,
70,4 45,2 95,5 08,4
the current 5,34 8,79 000. 1,70 900.
65.5 10.7 98.1 98.5
period 8.00 9.63 00 5.28 39
0 5 6 5
8. Statement of changes in owners’ equity of the parent company
Amount in the current period
Unit: yuan
Semi-Annual 2024
Other equity instruments Other
Capita Less: compr Specia Surplu Undist Total
Item Share Prefer Perpet l Treasu ehensi l s ribute owner
Others
capital red ual Others reserv ry ve reserv reserv d s’
shares bond es stock incom es es profit equity
e
I. Balance at
1,754, 2,329, 84,51 1,355, 6,629, 11,984
the end of
425,3 361,9 9,369. 635,7 739,6 ,643,3
the period of
48.00 69.66 07 31.62 41.30 21.51
the prior year
Add:
Changes in
accounting
policies
Error
correction in
the prior
periods
Others
II. Balance at
the
1,754, 2,329, 84,51 1,355, 6,629, 11,984
beginning of
425,3 361,9 9,369. 635,7 739,6 ,643,3
the period of
48.00 69.66 07 31.62 41.30 21.51
the current
year
154
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
III. Amount
of change in
-
the current - 8,137, 203,4 213,9
2,445,
period 97,80 421.5 82,09 66,72
000.0
(Decreases 0.00 0 9.25 0.75
0
are indicated
by “-”)
(I) Total 1,220, 1,220,
comprehensi 963,7 963,7
ve income 15.09 15.09
(II) Capital
-
contributed - 8,137, 10,48
2,445,
by owners 97,80 421.5 4,621.
000.0
and capital 0.00 0 50
0
decreases
1. Common - -
-
shares 2,347, 2,445,
97,80
invested by 200.0 000.0
0.00
owners 0 0
2. Capital
invested by
holders of
other equity
instruments
3. Amount of
share-based
10,48 10,48
payment
4,621. 4,621.
included in
50 50
owners’
equity
-
2,445,
2,445,
4. Others 000.0
000.0
0
0
- -
(III) Profit 1,017, 1,017,
distribution 481,6 481,6
15.84 15.84
1.
Withdrawal
of surplus
reserve
2. - -
Distribution 1,017, 1,017,
to owners (or 481,6 481,6
shareholders) 15.84 15.84
3. Others
(IV) Internal
conversion
of owners’
equity
1. Capital (or
share capital)
increase
155
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
from capital
reserve
conversion
2. Capital (or
share capital)
increase
from surplus
reserve
conversion
3. Recovery
of losses by
surplus
reserve
4. Retained
earnings
from transfer
of changes in
the defined
benefit plan
5. Retained
earnings
from transfer
of other
comprehensi
ve income
6. Others
(V) Special
reserve
1.
Withdrawal
in the current
period
2. Use in the
current
period
(VI) Others
IV. Balance 12,19
1,754, 2,337, 82,07 1,355, 6,833,
at the end of 8,610,
327,5 499,3 4,369. 635,7 221,7
the current 042.2
48.00 91.16 07 31.62 40.55
period 6
Amount in the prior year
Unit: yuan
Semi-Annual 2023
Other equity instruments Other
Capita Less: compr Specia Surplu Undist Total
Item Share Prefer Perpet l Treasu ehensi l s ribute owner
Others
capital red ual Others reserv ry ve reserv reserv d s’
shares bond es stock incom es es profit equity
e
I. Balance at 1,753, 2,276, 104,6 - 1,229, 5,999, 11,154
the end of 995,3 383,5 45,00 129,1 068,7 424,9 ,098,5
the period of 48.00 43.02 0.00 29.44 98.92 83.44 43.94
156
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
the prior year
Add:
Changes in
accounting
policies
Err
or correction
in the prior
periods
Ot
hers
II. Balance at
the
1,753, 2,276, 104,6 - 1,229, 5,999, 11,154
beginning of
995,3 383,5 45,00 129,1 068,7 424,9 ,098,5
the period of
48.00 43.02 0.00 29.44 98.92 83.44 43.94
the current
year
III. Amount
of change in
the current 26,48 698,6 725,1
period 4,163. 90,71 74,87
(Decreases 54 1.22 4.76
are indicated
by “-”)
(I) Total 1,207, 1,207,
comprehensi 349,3 349,3
ve income 62.14 62.14
(II) Capital
contributed 19,86 19,86
by owners 8,597. 8,597.
and capital 33 33
decreases
1. Common
shares
invested by
owners
2. Capital
invested by
holders of
other equity
instruments
3. Amount of
share-based
19,86 19,86
payment
8,597. 8,597.
included in
33 33
owners’
equity
4. Others
- -
(III) Profit 508,6 508,6
distribution 58,65 58,65
0.92 0.92
1.
157
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
Withdrawal
of surplus
reserve
2. - -
Distribution 508,6 508,6
to owners (or 58,65 58,65
shareholders) 0.92 0.92
3. Others
(IV) Internal
conversion
of owners’
equity
1. Capital (or
share capital)
increase
from capital
reserve
conversion
2. Capital (or
share capital)
increase
from surplus
reserve
conversion
3. Recovery
of losses by
surplus
reserve
4. Retained
earnings
from transfer
of changes in
the defined
benefit plan
5. Retained
earnings
from transfer
of other
comprehensi
ve income
6. Others
(V) Special
reserve
1.
Withdrawal
in the current
period
2. Use in the
current
period
6,615, 6,615,
(VI) Others 566.2 566.2
1 1
158
2024 Semi-Annual Report of Huadong Medicine Co., Ltd.
IV. Balance
1,753, 2,302, 104,6 - 1,229, 6,698, 11,879
at the end of
995,3 867,7 45,00 129,1 068,7 115,6 ,273,4
the current
48.00 06.56 0.00 29.44 98.92 94.66 18.70
period
Huadong Medicine Co., Ltd.
Chairman of the Board: Lv Liang
August 16, 2024
159