华东医药：2024年第一季度报告(英文版)

Security code: 000963 Stock abbreviation: Huadong Medicine Announcement No.: 2024-041

Huadong Medicine Co., Ltd.First Quarterly Report 2024

The Company and all members of the Board of Directors hereby guarantee that the information presentedin this report is authentic, accurate and complete and free of any false records, misleading statements or materialomissions.Important Declaration:

1. The Board of Directors, Board of Supervisors, directors, supervisors and senior management of HuadongMedicine Co., Ltd. (hereinafter referred to as the "Company") hereby guarantee that the information presentedin this report is authentic, accurate and complete and free of false records, misleading statements or materialomissions, and shall undertake individual and joint legal liabilities.

2. The Company's legal representative, the officer in charge of accounting, and the head of accountingdepartment (accounting supervisor) hereby declare that the financial information in this quarterly report isauthentic, accurate and complete.

3. Has the First Quarterly Report been audited?

□Yes ?No

According to “Stock Listing Rules of the Shenzhen Stock Exchange”, if listed companies have both Chineseand other language version of public notice, they should ensure the content of both versions are the same. In thecase of discrepancy, the original version in Chinese shall prevail.

I. Key Financial Data(I) Key accounting data and financial indicators

Does the Company need to retroactively adjust or restate the accounting data of previous years?

□Yes ?No

(II) Non-recurring profit and loss items and amounts?Applicable □Not applicable

Unit: RMB

Details of other profit and loss items conforming to the definition of non-recurring profits and losses

□Applicable ?Not applicableThe Company has no other specific circumstances of profit and loss items that meet the definition of non-recurring profits andlosses.An explanation of the fact that the non-recurring profit and loss items listed in the Explanatory Announcement No.1 onInformation Disclosure by Companies that Offer Securities to the Public - Non-recurring Profits and Losses are defined asrecurring profit and loss items

□Applicable ?Not applicableThe Company did not define the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on InformationDisclosure by Companies that Offer Securities to the Public - Non-recurring Profits and Losses as recurring profit and loss items.(III) Details and reasons for changes in key accounting data and financial indicators

?Applicable □Not applicable

Advance receipts

Items in the profitstatement

II. Shareholder Information(I) Total number of common shareholders, number of preferred shareholders with restored voting rightsand shareholdings of top 10 shareholders

Unit: Shares

Participation in the lending of shares through refinancing business of shareholders holding more than 5% of shares, top 10shareholders and top 10 shareholders holding tradable shares without restricted sale conditions?Applicable □Not applicable

Unit: Shares

Change in top 10 shareholders and top 10 shareholders holding tradable shares without restricted sale conditions due tolending/returning of shares through refinancing as compared to the previous period?Applicable □Not applicable

Unit: Shares

(II) Total number of preferred shareholders and shareholding list of top 10 preferred shareholders of theCompany

□Applicable ?Not applicable

Ⅲ. Other Important Matters?Applicable □Not applicable(I) Overview of the Company's overall operations during the reporting periodIn 2024, the reform of the domestic pharmaceutical industry continued to be expanded, which,coupled with market competition, drove the intensification of the differentiation of pharmaceuticalenterprises. By focusing on the overall strategic planning and annual business objectives, theCompany actively promoted the implementation of various operational management work, andachieved a good start in the first quarter. During the reporting period, the Company achievedoperating income in the amount of RMB 10.411 billion, up 2.93% year-on-year; net profitattributable to parent company in the amount of RMB 862 million, up 14.18% year-on-year; netprofit attributable to the parent company after deducting non-recurring profits and losses in theamount of RMB 838 million, up 10.66% year-on-year; and realized a positive growth in operatingincome and net profit compared with the fourth quarter of 2023. After deducting the equityincentive expenses and the profits and losses of participating and holding R&D institutions, netprofit attributable to shareholders of the listed company upon deduction of non-recurring profits andlosses during the reporting period was amounted to RMB 928 million, representing an increase of

22.45% compared with the net profit attributable to shareholders of the listed company upondeduction of non-recurring profits and losses in the first quarter of 2023.

During the reporting period, the overall operation of the core subsidiary Zhongmei Huadongcontinued to maintain a stable growth trend, achieved operating income (including CSO business)in the amount of RMB 3.399 billion, showing a year-on-year increase of 10.53%; and achievedconsolidated net profit attributable to the parent company in the amount of RMB 751 million, with a

year-on-year increase of 11.67%.During the reporting period, the Company's pharmaceutical business segment achieved anoverall operating income of RMB 6.717 billion, down 1.86% year-on-year, and a net profit of RMB107 million, up 1.51% year-on-year. The decreasing operating income of the Company'spharmaceutical business segment was mainly affected by the higher base in the first quarter of2023. It is expected that the pharmaceutical business segment will return to show positive growth inthe second quarter.

The Company's aesthetic medicine business continued to maintain a good growth momentumduring the reporting period. Its aesthetic medicine segment realized a consolidated operatingincome of RMB 630 million (excluding internal offsets), representing a year-on-year increase of

25.30%. Sinclair UK, a wholly-owned subsidiary, continued to expand the global aesthetic medicinemarket, realized a consolidated operating income of approximately RMB 272 million during thereporting period. Due to fluctuations in demands caused by the impact of the slowdown in globalmacro-economic growth, it underwent a year-on-year decline of 4.40%, with the overall incomereaching the operating target for the first quarter. Growth rate is expected to gradually pick up fromthe second quarter. Sinclair (Shanghai), a wholly-owned subsidiary engaging in domestic aestheticmedicine, was actively expanding the domestic market. During the reporting period, it achievedoperating income of RMB 257 million, representing a year-on-year increase of 22.65%, and aquarter-on-quarter increase of 13.38% compared with the fourth quarter of 2023.

During the reporting period, the income of the Company's industrial microbiology businessmaintained a stable growth, up 23.00% year-on-year. Subsequently, along with the active expansionof the overseas market, increasing online and offline marketing promotion for the domestic animalhealth business and the launching of products of Hubei Magic Health, it is expected that the growthof industrial microbiology business will accelerate.

(II) Important R&D progress of the Company during the reporting period

During the reporting period, the Company accelerated its R&D efforts and continued toincrease its R&D investment. The Company's R&D investment in the pharmaceutical industry(excluding equity investment) amounted to RMB 588 million during the reporting period, of which,direct R&D expenditure amounted to RMB 349 million, representing a year-on-year increase of

13.96%. The Company's innovative drugs and biosimilar business ushered in a number of importantmilestones. The main progress is described as follows:

1. The Company's BLA application in China for the recurrent pericarditis indication ofRilonacept (ARCALYST?) for injection, a global innovative product introduced from Kiniksa,USA, was accepted in March 2024;

2. The Company's Chinese IND application for HDM1005, which is the GLP-1R/GIPR dual-target, long-acting peptide agonist product independently developed by the Company, intended forweight management among overweight or obese people and for Type 2 diabetes, was approved inMarch 2024. The first subject was enrolled and administered in the phase Ia clinical study in Chinain March 2024. In addition, the US IND application of HDM1005 for overweight or obesityindications was approved in April 2024;

3. Chinese IND Application for HDM2005, the first ADC program that is independentlydeveloped by the Company and intended for the treatment of advanced solid tumors andhematological tumors, was submitted and accepted in March 2024;

4. In March 2024, the Company's U.S. partner announced that ELAHERE? (MirvetuximabSoravtansine Injection), an ADC drug intended for the treatment of platinum-resistant ovariancancer, has been converted from accelerated approval to full approval in the United States. In April2024, the Company was approved to join the international multi-center PSOC (platinum-sensitiveovarian cancer) Phase III clinical study, to promote this product for the frontline treatment ofovarian cancer. It is being developed as maintenance therapy for the treatment of subjects withrecurrent platinum-sensitive, epithelial ovarian, primary peritoneal, or fallopian tube cancers withpositive folate receptor alpha (FRα) in combination with bevacizumab;

5. The NDA application for Relmapirazin Injection in China, which is an innovative drug usedin conjunction with a glomerular filtration rate dynamic monitoring system, was accepted inJanuary 2024;

6. On March 1, 2024, CARsgen's CAR-T product Zevorcabtagene Autoleucel Injection (tradename: Saikaize?, R&D code: CT053), has received notification from the National MedicalProducts Administration (NMPA) that it has been granted conditional approval for the treatment ofadult patients with relapsed or refractory multiple myeloma, who have previously progressed afterat least 3 lines of therapy (including a proteasome inhibitor and immunomodulator agent). TheCompany was granted the exclusive right to commercialize zevorcabtagene autoleucel in mainlandChina, and has set up a dedicated commercialization team. The first prescription was issued on theday when such product was approved for marketing.

In addition, the Company's generic drug registration was proceeded as planned. TacrolimusExtended-Release Capsules with a specification of 5mg were approved by the NMPA for marketingin February 2024.

During the reporting period, the Company continued to promote the registration andimplementation of key aesthetic medicine in China:

1. The Chinese clinical trial of MaiLi Extreme, the Company's new high-end lidocaine-

containing sodium hyaluronate for injection, successfully reached the primary study endpoint andshowed good product safety data. The application for registration of this product as a Class IIImedical device in China has recently been accepted;

2. Two innovative botulinum toxin products under development, i.e., ATGC-110 (Type Abotulinum toxin) and YY001 (Type A recombinant botulinum toxin), which were introduced by theCompany in cooperation with South Korea ATGC and Chongqing Claruvis, have made significantprogress respectively: the marketing application of ATGC-110 has been accepted by the Ministry ofFood and Drug Safety (MFDS) of Korea. The declared indication is to improve the moderate tosevere frown lines between eyebrows among adult patients. YY001 has completed the enrollment ofPhase III clinical subjects in China.

(III) Other important matters

The Company held the 20th Meeting of the 10th Session of the Board of Directors on February7, 2024, reviewed and approved the Proposal on Investment in Construction of Bio-Innovation andIntelligent Manufacturing Center Project, which agreed that Hangzhou Zhongmei HuadongPharmaceutical Co., Ltd., a wholly-owned subsidiary of the Company, would invest in constructionof the Bio-Innovation and Intelligent Manufacturing Center Project in accordance with its owndevelopment plan and new product launch plan. The total investment amount of this project isexpected to be RMB 2 billion. This project would be carried out in stages. The investment amountof Phase I is about RMB 1.188 billion (the final investment amount is subject to the actualinvestment expenditure of the project construction) (for details, please refer to the relevantannouncements disclosed by the Company at www.cninfo.com.cn, with the Announcement No.:

2024-006).

(IV) Registration form of receptions, including research, communication, interviewand other activities during the reporting period

IV. Quarterly Financial Statements

(I) Financial statements

1. Consolidated balance sheet

Prepared by: Huadong Medicine Co., Ltd.

March 31, 2024

Unit: RMB

Legal Representative: Lv Liang Officer In Charge of Accounting: Lv Liang Head of Accounting Department: Qiu Renbo

2. Consolidated profit statement

Unit: RMB

If there is a business combination under common control in this period, the net profit of the combined party before thecombination is RMB 0.00, and the net profit of the combined party in the previous period is RMB 0.00.Legal Representative: Lv Liang Officer In Charge of Accounting: Lv Liang Head of Accounting Department: Qiu Renbo

3. Consolidated cash flow statement

Unit: RMB

(II) Situation of relevant items of financial statements at the beginning of the currentyear after the initial implementation of adjustment of the New Accounting Standards in2024

□Applicable ?Not applicable

(III) Audit reportHas the First Quarterly Report been audited?

□Yes ?No

The First Quarterly Report of the Company has not been audited.

Board of Directors of Huadong Medicine Co., Ltd.

April 26, 2024