Huadong Medicine Co., Ltd.

2026 Semi-annual Report

August 27, 2026

Section I Important Notes, Contents and Definitions

The Board of Directors, directors, and senior manager of Huadong Medicine Co., Ltd. (hereinafter referred to as the "Company") hereby guarantee that the information presented in this report is authentic, accurate and complete and free of false records, misleading statements or material omissions, and shall undertake individual and joint legal liabilities.

Lv Liang, the Company's legal representative and the officer in charge of accounting, and Qiu Renbo, head of accounting department (accounting manager) hereby declare that the financial statements in this semi-annual report are authentic, accurate, and complete.

All directors have attended the Board of Directors meeting to review this semi-annual report.

The future plans, development strategies and other forward-looking statements in this semi-annual report shall not be considered as a substantial commitment of the Company to investors. Investors and related parties should be fully aware of the risks, and understand the differences between plans, forecasts and commitments.

The risks the Company faces in operation including industry policy and product price reduction risk, new drug R&D risk, investment and M&A risk and exchange rate fluctuation risk. For details, please refer to "X. Risks faced by the Company and countermeasures" in "Section III. Management's Discussion and Analysis" in the Report. Therefore, investors are kindly reminded to pay attention to possible investment risks.

The profit distribution plan deliberated and approved at the meeting of the Board of Directors is as follows: On the basis of 1,753,736,848.00 shares of the existing total share capital of the Company, a cash dividend of RMB 3.50 (tax inclusive) per 10 shares will be distributed to all shareholders; a total of 0 bonus share (tax inclusive) will be issued; and no capital reserves will be converted to increase the share capital. This 2026 semi-annual profit distribution scheme falls within the scope authorized by the 2025 Annual Shareholders' Meeting resolution to the Board of Directors and does not require further approval by the Shareholders' Meeting.

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.

Table of Contents

Section I Important Notes, Contents and Definitions....2

Section II Company Profile and Key Financial Indicators....9

Section III Management's Discussion and Analysis....13

Section IV Corporate Governance, Environment, and Society....66

Section V Important Matters....78

Section VI Share Changes and Shareholders Information....129

Section VII Information on Bonds....140

Section VIII Financial Reports....141

Contents of Reference File

(I) Financial accounting statements signed and stamped by the legal representative, the officer in charge of accounting, and the head of Accounting Department (accounting manager).

(II) The original of all Company's documents publicly disclosed in the press designated by CSRC during the reporting period and the original of announcements.

Definitions

Section II Company Profile and Key Financial Indicators

I. Company profile

II. Contact persons and contact information

III. Other information

1. Company contact information

Whether the Company's registered address, office address and its postal code, website, or email address have changed during the reporting period

Applicable □Not applicable

2. Information disclosure and storage location

Has the information disclosure and storage location changed during the reporting period?

□Applicable Not applicable

The stock exchange website and media names and URLs where the Company discloses its semi-annual reports, as well as the storage location of the semi-annual reports, remained unchanged during the reporting period. For details, please refer to the 2025 Annual Report.

3. Other relevant information

Has any other relevant information changed during the reporting period?

□Applicable Not applicable

IV Key accounting data and financial indicators

Whether the Company needs to perform a retroactive adjustment or restatement of previous accounting data

□Yes No

The Company's total share capital as of the trading day prior to disclosure:

Fully diluted earnings per share based on the latest share capital

V. Differences in accounting data under domestic and foreign accounting standards

1. Differences in net profit and net assets disclosed in financial statements under international and Chinese accounting standards

□Applicable Not applicable

There are no differences in net profit and net assets disclosed in financial statements under international and Chinese accounting standards during the reporting period.

2. Differences in net profit and net assets disclosed in financial statements under overseas and Chinese accounting standards

□Applicable Not applicable

There are no differences in net profit and net assets disclosed in financial statements under overseas and Chinese accounting standards during the reporting period.

VI. Items and amounts of non-recurring profit and loss

Applicable □Not applicable

Unit: RMB

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

□Applicable Not applicable

There are no other profit and loss items that meet the definition of non-recurring profits and losses

Explanation for recognizing an item listed as a non-recurring profit and loss in the Interpretative Announcement No. 1 on Information Disclosure Criteriafor Public Listed Companies - Non-Recurring Profits and Losses as an item of recurring profit and loss

□Applicable Not applicable

The Company did not recognize any item of non-recurring profit and loss items listed in the Interpretative Announcement No. 1 on Information Disclosure Criteria for Public Listed Companies - Non-Recurring Profits and Losses as an item of recurring profit and loss.

Section III Management's Discussion and Analysis

I. Main business of the Company during the reporting period

(I) Main business of the Company

Founded in 1993 and headquartered in Hangzhou, Zhejiang Province, Huadong Medicine Co., Ltd. (stock code: 000963) was listed on Shenzhen Stock Exchange in December 1999. With its businesses covering the entire pharmaceutical industry chain thanks to over 30 years of vigorous development, the Company has now fostered four major business segments of pharmaceutical industry, pharmaceutical distribution, aesthetic medicine and industrial microbiology, and has been a large comprehensive listed pharmaceutical enterprise specialized in pharmaceutical R&D, production, and marketing.

The Company's pharmaceutical industry segment focuses on the R&D, manufacturing and sales of medicines for specialty care, chronic diseases and special indications. Its core product portfolio covers key therapeutic areas, including chronic kidney disease, immunology, oncology, endocrinology, digestive diseases and cardiovascular diseases. The Company also has multiple firstline medicines with strong market positions in China, giving it strong brand advantages and a diversified, multi-tiered product portfolio. Through in-house development, external in-licensing and project collaboration, the Company puts its emphasis on innovative drug R&D efforts on three core therapeutic areas: endocrinology, autoimmunity and oncology. It has established a differentiated and well-structured pipeline spanning the full R&D lifecycle, with nearly 100 innovative drug candidates in development. At present, the Company's innovative drug R&D pipeline is gradually translating into commercial products. Nearly 20 in-house-developed or externally introduced products have been launched and commercialized, while more than 10 additional products are undergoing regulatory review. The contribution of innovative products to total revenue has continued to increase. In addition, the Company has set up a comprehensive pharmaceutical manufacturing system with international capabilities. Multiple products have obtained regulatory registrations and approvals in international markets. The Company is deeply integrated into the global innovation ecosystem, maintains R&D collaborations with multiple international innovative pharmaceutical companies, and has established strategic product partnerships in the Chinese market with a number of multinational pharmaceutical companies.

The Company's pharmaceutical distribution segment focuses on three core businesses: pharmaceuticals, medical device, and herbal decoction pieces. Leveraging a specialized logistics system with strengths in cold-chain products, specialty drugs, and vaccines, together with the synergies generated by its proprietary-brand e-commerce platforms, the Company has developed strong integrated omnichannel marketing capabilities. Its business scale and market share rank among the industry leaders in Zhejiang Province, giving it a solid competitive position. The Company has ranked among China's top 10 pharmaceutical wholesalers for many consecutive years. The Company continues to strengthen its core market in Zhejiang Province, with Hangzhou, Jinhua and Wenzhou serving as its three core supply chain hubs. It operates 13 regional warehouses, with a total warehousing area of more than 190,000 m², and has established an integrated multi-warehouse smart logistics network covering Zhejiang Province. The pharmaceuticals business provides full product-category and omnichannel coverage, promoting coordinated development across in-hospital and out-of-hospital channels and integrating distribution and agency operations. The medical device business of the Company continues to expand beyond large-scale distribution into specialized product agency and value-added supply chain services. The herbal decoction pieces business of the Company covers the entire value chain, from cultivation at production bases and the processing and preparation of decoction pieces to smart decoction services and sales of proprietary-brand products through end-user channels, thereby creating a complete business loop from the field to clinical end markets. The Company regards service innovation as a core driver of its development. By integrating supplier collaboration, specialized CSO services, SPD-based (Supply, Processing, Distribution-based) in-hospital supply chain operations, and resources across industry, academia and research, the Company provides customized, comprehensive supply chain solutions to upstream and downstream customers and partners, steadily advancing toward its strategic goal of becoming a trusted comprehensive pharmaceutical services provider.

In the field of aesthetic medicine, the Company adheres to the strategy of "global operational layout and dual-circulation business development", with innovation as a core driver of its development. With a global perspective and forward-looking strategic planning, the Company has developed a comprehensive and differentiated product portfolio. Both the number of products and the breadth of fields covered rank among the industry leaders, with more than 30 products launched in China and overseas and nearly 20 globally innovative products in development. The Company integrates multiple dimensions, including "non-invasive + minimally invasive" technologies, "facial + body" treatment areas, and "injectables + energy-based device." Its injectable product portfolio achieves full coverage across three major categories—regenerative products, hyaluronic acid products and botulinum toxin—while maintaining differentiated development pipelines. Through innovation in source materials, formulation technologies, product categories and application scenarios, the Company has established strong competitive barriers and provides consumers seeking aesthetic enhancement with precise, personalized and highly effective one-stop aesthetic solutions. The Company is committed to becoming a leading global provider of comprehensive aesthetic medicine solutions. The Company operates multiple R&D centers and manufacturing bases worldwide. Its product portfolio includes injectable regenerative fillers, botulinum toxin, hyaluronic acid, chitosan, ECM collagen and facial lifting threads. The Company is also conducting R&D and expanding its energy-based aesthetic medical device business in global markets.

The Company's industrial microbiology business focuses on two major areas: the application of synthetic biology technologies and innovation and development in biopharmaceuticals. It has strategically developed four core business segments: xRNA raw materials, specialty APIs and intermediates, massive health products and biomaterials, and animal health. Building on more than 40 years of accumulated technological expertise, the Company has established an integrated R&D cluster comprising three core platforms: a synthetic biology R&D platform, an industrial microbiology R&D platform, and a synthetic chemistry R&D platform. The Company possesses key technologies covering the entire microbial engineering value chain and has established an R&D and manufacturing system spanning the full lifecycle of microbial medicines. It has also developed interdisciplinary R&D platforms and a global network of industrialization resources. On the industrialization front, the Company operates seven major industrialization bases in a coordinated manner, including the Hangzhou Xiangfuqiao Base, Qiantang New Area, Jiangsu Jiuyang, Hubei Magic Health, Anhui Meihua, Wuhu Huaren and HD Animal Health. The Company has the largest single fermentation workshop in Zhejiang Province and industry-leading intelligent production systems. Its operations cover the entire process from strain screening and process development through pilot-scale scale-up to large-scale commercial production, creating a closed-loop manufacturing ecosystem encompassing technology R&D, engineering scale-up and quality control. Its fermentation capacity and process technology capabilities have consistently remained at the forefront of the domestic industry.

(II) Overview of company operations during the reporting period

In the first half of 2026, the international situation became increasingly turbulent, with the global economy undergoing deep differentiation amid complex geopolitical dynamics and restructuring of the global trade landscape. Energy price fluctuations and recurring inflation persisted, while the global supply chain landscape continued to adjust. Global economic growth momentum remained insufficient, and the recovery continued to stay under pressure. Facing an increasingly complex and challenging domestic and international environment, China's economy withstood the pressure and maintained steady growth. Macroeconomic policies continued to take effect, effectively addressing various external shocks and internal difficulties. China's GDP grew by

4.7% year on year("YoY"), with economic performance remaining within a reasonable range, showing a development trend of new growth drivers and an improving economic structure. China's pharmaceutical industry is also at a critical stage of structural transformation, with regulatory policies for pharmaceutical and medical device being frequently updated and the industry regulatory system continuing to improve. The industry faces both opportunities and challenges. Enterprises must seize the development opportunities arising from the international expansion of innovation and the upgrading of consumer healthcare, while also facing multiple pressures at the policy, market, and compliance levels.

In the first half of 2026, the Company centered its efforts on its overall strategic plan and closely aligned them with its annual operating targets, integrating risk management and response, as well as value creation, throughout the entire business management process. The Company comprehensively advanced the implementation of its "innovation-driven, resource integration, and full-domain synergy" strategy, building core competitive advantages through R&D innovation, optimizing its business layout through the integration of internal and external resources, and leveraging synergies across all business segments to enhance overall competitiveness. The Company regarded the expansion of "new markets, new products, new organizational structures, and new capabilities" as the key to breaking through. For new markets, the Company consolidates its domestic business base while steadily advancing its international footprint. For new products, it focuses on key therapeutic areas and consumer medical segments, accelerating pipeline project progression and commercialization. In terms of new organization, the Company continuously optimizes its organizational structure and reengineers business processes to improve operational efficiency. For new capabilities, it strengthens the development of core competencies including R&D, compliance, commercial operations, and global business management. All employees of the Company have united to overcome challenges, delivered results under pressure, balanced business growth with compliance and risk control, and fully ensured that core tasks in R&D, commercialization, market expansion, internal control and compliance are carried out in an orderly manner as scheduled, consolidating the fundamental business base.

During the reporting period, all business segments of the Company tapped into growth opportunities, with core businesses maintaining stable performance. R&D and innovation advanced steadily, and the innovative product pipeline continued to expand. Organizational efficiency kept improving, and operation management was continuously optimized, driving overall operational management to achieve higher quality and efficiency, and the Company met its phased key business targets.

In the first half of 2026, the Company recorded an operating revenue of RMB 22.067 billion, representing a YoY increase of 1.81%. The net profit attributable to shareholders of the listed company reached RMB 1.861 billion, up 2.53% YoY. Net profit attributable to shareholders of the listed company excluding non-recurring profit and loss stood at RMB 1.858 billion, with a YoY increase of 5.44%. The net cash flow generated from operating activities during the reporting period was RMB 2.499 billion, up 1.73% YoY. The operating cash inflow remained in good shape, demonstrating robust earnings quality and overall stable business performance of the Company.

1. Operation and development of the four major business segments of the Company during the reporting period

(1) Pharmaceutical industry segment

During the reporting period, the core subsidiary Zhongmei Huadong sustained a steady upward business momentum with continuously improving operating quality. It recorded an operating revenue of RMB 7.969 billion (including CSO business), representing a YoY increase of 8.92%. The net profit attributable to parent company reached RMB 1.74 billion, up 10.12% YoY. The nonrecurring gains and losses excluded net profit attributable to parent company was RMB 1.725 billion, with a YoY increase of 13.35%, and the return on equity stood at 12.13%.

Specifically, in the second quarter, it recorded an operating revenue of RMB 3.92 billion, up 6.07% YoY. The net profit attributable to parent company reached RMB 809 million, representing a YoY increase of 9.76%. The non-recurring gains and losses excluded net profit attributable to parent company was RMB 808 million, with a YoY increase of 15.84%.

Leveraging its leading R&D system and core technology platforms, the Company has built a diversified portfolio of innovative products. In the oncology field, it boasts major products such as Elahere^® (Mirvetuximab Soravtansine Injection), CAR-T product Zevor-cel (Zevorcabtagene Autoleucel Injection), PARP inhibitor Paishuning^® (Senaparib Capsules), and Mairuidong^® (Mifanertinib Maleate Tablets). In the endocrinology field, it possesses core varieties such as Nesina^® (Alogliptin Benzoate Tablets), Liluping^® (Liraglutide Injection), and Huiyoujing^® (Ganagliflozin Proline Tablets). In the autoimmunity field, it has deployed Sailexin^®/Saijiening^®(Ustekinumab Injection/Ustekinumab Injection(Intravenous Infusion)). In the gastroenterology field, it launched Xinlian^® (linaprazan glurate Capsules). Meanwhile, MediBeacon^® TGFR, the world's first bedside renal function precision monitoring and evaluation product suitable for patients with normal or impaired renal function, has officially entered the commercialization promotion stage, creating a differentiated and innovative competition barrier.

During the reporting period, previously approved innovative products entered a phase of scaled-up commercial sales, while newly commercialized products provided additional revenue contributions, driving the rapid expansion of the innovative product business. Total revenue from sales and agency services amounted to RMB 1.684 billion, representing a YoY increase of 52% and accounting for 21.14% of the operating revenue of the pharmaceutical industry segment (including CSO business). The innovative business has become the core engine driving growth in the pharmaceutical industry segment.

Since its launch, the CAR-T therapy Zevorcabtagene Autoleucel Injection (trade name: Zevorcel) has demonstrated strong market expansion momentum, with its clinical safety and efficacy receiving positive evaluations. In the first half of 2026, medical institutions that had completed the certification and filing procedures for Zevor-cel covered more than 20 provinces and municipalities nationwide. During this period, the Company placed 110 valid orders with its partner, CARsgen Therapeutics. At the same time, the Company continued to strengthen its product access system and accelerate efforts to establish mechanisms to ensure patients' access to treatment. The product has now been successfully included in the Commercial Health Insurance Innovative Drug List. As of the date of the Report, more than 100 Huiminbao programs (a city-specific supplemental medical insurance program) and various commercial health insurance products across the country have included Zevor-cel in their reimbursement coverage, effectively reducing patients' treatment costs and enhancing the accessibility and inclusiveness of high-end innovative therapies. Looking ahead, as the Company's nationwide medical channel network continues to improve, coverage of Huiminbao programs and commercial health insurance continues to expand across regions, and access policies are progressively implemented, the market penetration and industry influence of Zevor-cel are expected to increase further, and the product is expected to maintain its growth momentum.

Following its inclusion in the updated National Reimbursement Drug List (NRDL), Huiyoujing^® (Ganagliflozin Proline Tablets), the Category 1 innovative drug intended for diabetes, has seen the pharmaceutical service promotion team of Zhongmei Huadong make active efforts for hospital access. It is now listed in more than 2,400 tiered hospitals, laying a solid foundation for subsequent rapid market growth. Additionally, multiple national and regional large-scale clinical trials have been conducted, including real world studies (RWS) and various clinical studies on complication/comorbidity in patients with type 2 diabetes mellitus (T2DM). In product promotion, effective synergy has been achieved by sharing resources with Metformin Hydrochloride and Empagliflozin Tablets (Enshuangping^®), consolidating the Corporation's core competitiveness in the SGLT-2 inhibitor segment for diabetes. The YoY growth rate of sales revenue in the 2026 half-year period exceeded 900% (the first quarter of 2025 was the first sales quarter after the product was included in the National Reimbursement Drug List).

Elahere^® (Mirvetuximab Soravtansine Injection), recognized as the world's first and currently the sole FRα-targeted Antibody-Drug Conjugate (ADC) drug approved for the treatment of platinum-resistant ovarian cancer, was officially launched for commercial sale in China in November 2025. The Company is diligently and expeditiously advancing its market access endeavors. By the end of the first half of this year, Elahere^® has completed the network listing in 31 provinces, with over 300 hospitals that have issued prescriptions, covering more than 400 medical institutions and over 200 DTP pharmacies. Currently, Elahere^® has also been successfully incorporated in multiple Huiminbao programs (city-specific supplemental medical insurance programs) and commercial insurance programs, such as Beijing Inclusive Medical Insurance Program, Shanghai Hu Hui Bao Insurance, Jiangxi Ganhuibao, Leshan Huijiabao, and Shaanxi Universal Health Insurance. Since its official domestic commercial launch in the Q4 of 2025, Elahere^® recorded sales of approximately RMB 90.49 million in the first half of 2026.

Senaparib Capsules (Paishuning^®), a novel PARP inhibitor exclusively promoted by the Company in Chinese mainland, was approved for market launch in January 2025 and was successfully included in the National Reimbursement Drug Listfor Basic Medical Insurance, Workrelated Injury Insurance, and Maternity Insurance in December 2025, indicated for first-line maintenance treatment of ovarian cancer (OC). As of June 30, 2026, Senaparib Capsules had been launched in all provinces across Chinese mainland, secured access to more than 380 specialty and community pharmacies, and reached nearly 1,200 medical institutions. Following its inclusion in the National Reimbursement Drug List, the product's sales volume continued to increase, and its sales revenue in the first half of 2026 increased significantly compared with the same period in 2025.

In May 2026, the Marketing Authorization Application (MAA) and supplemental application for Sailexin^®/Saijiening^® for Crohn's disease (CD) were approved. Since its launch, Sailexin^®/Saijiening^® has continued to demonstrate strong market performance. The pharmaceutical services team has deeply explored the product's outstanding advantages in terms of ease of use, drug safety, and accessibility under medical insurance reimbursement. By leveraging shared resources and close collaboration with the Corporation's existing autoimmune product line, it has established effective synergies. To date, over 2,000 hospitals have prescribed the product, with market sales gradually increasing. Through initiatives such as soliciting outstanding case studies, launching public welfare science popularization projects, organizing multi-level and multidimensional online and offline academic seminars, and conducting nationwide multi-center realworld studies (RWS), the Company has expanded the product influence and optimized the concept of clinical medication. Sailexin^®/Saijiening^® is expected to become a new core product in the Corporation's autoimmune disease field. The domestic sales revenue (including value-added tax) of

Sailexin^®/Saijiening^® in the first half of 2026 exceeded RMB 300 million, surpassing the full-year figure for 2025 and representing a YoY increase of more than 100%.

The transcutaneous glomerular filtration rate measurement system (TGFR System) is the world's first innovative drug-device combination product for real-time point-of-care assessment of renal function. It consists of the first-in-class innovative drug, Relmapirazin Injection (MB-102), and the supporting transcutaneous glomerular filtration rate (TGFR) measurement equipment, and has been approved for marketing in China as a complete drug-device combination. During the reporting period, the Company actively expanded its medical device sales and promotion team, and advanced the market access and commercialization of MediBeacon^® TGFR in China. In June 2026, Relmapirazin (MB-102), as a fluorescent tracer, was included for the first time in the Chinese Clinical Practice Guideline for Screening, Diagnosis and Treatment of Chronic Kidney Disease (2026 Edition). Among the mGFR (measured glomerular filtration rate) testing methods specified in the guideline, it is the only technology system that uses a non-invasive testing method and enables point-of-care monitoring, providing a new option for precise clinical assessment of renal function. In July 2026, Relmapirazin Injection and the TGFR technology were included in the Expert Consensus on Assessment and Diagnosis of Acute Kidney Injury in Elderly Patients with Comorbidities in China. To date, consumables of MediBeacon^® TGFR have been listed in 25 provinces, while Relmapirazin Injection has been listed in 29 provinces.

In the field of gastrointestinal drugs, the Class 1.1 innovative drug, Linaprazan Glurate Capsules (Xinlian^®), for which the Company holds exclusive commercialization rights, is a newgeneration potassium-competitive acid blocker (P-CAB). It has been approved for the treatment of reflux esophagitis, while Phase III clinical trials in China for the indications of "duodenal ulcer" and "treatment of Helicobacter pylori infection in combination with antibiotics" are also underway. Linaprazan Glurate Capsules were successfully included in the National Reimbursement Drug List for Basic Medical Insurance, Work-related Injury Insurance, and Maternity Insurance (2025) in December 2025 and has been included in the "New and High-Quality Drugs and Devices" Product Catalogue of Shanghai's biomedical industry. During the reporting period, the Company continued to advance the market access of Xinlian to improve access to clinical treatment. It also conducted patient education and provided educational resources on medication use to help patients develop a sound understanding of medication use and use medicines in a standardized and rational manner. By the end of the reporting period, Xinlian^® had covered 25 provinces and municipalities across China and more than 900 hospitals of various grades, with sales volume growing rapidly.

The Company's innovation-driven transformation strategy continues to be implemented and deepened, and the Company has entered a critical stage in which pipeline achievements are being realized on a larger scale and commercial value is being unlocked at an accelerating pace. The innovative product portfolio continues to expand and diversify, the clinical value of innovative products continues to be validated, and the Company's commercialization capabilities continue to strengthen and mature, laying a solid foundation for high-quality growth in the Company's mediumand long-term performance.

During the reporting period, the General Pharmaceutical Service Subsidiary of Zhongmei Huadong adhered to the core philosophy of "Innovation, Professionalism, Service", adopted "solving problems and creating value" as the guiding principles for management assessment, and continuously adapted its operations to changes in the pharmaceutical industry's policy and market environment. The Company continued to upgrade and enhance its digital systems for pharmaceutical services and marketing, fully enhancing its capabilities in product academic promotion and patient services, and achieved solid results in business model transformation and efficiency improvement. By focusing deeply on targeted therapeutic segments, continuously extending channel coverage into lower-tier and grassroots markets, and implementing refined and differentiated promotional strategies, the Company continuously enhanced the market penetration of its core competitive products, expanded coverage of medical institutions at all levels, and consolidated and strengthened its competitive position in key areas.

At the market strategy level, the Company continued to improve its comprehensive omnichannel strategy, driving coordinated growth across multiple markets, including in-hospital, out-ofhospital, grassroots and retail markets. In the in-hospital market, the Company strengthened its core business base by leveraging the solid clinical value of its products and professional academic services. On the one hand, it fully tapped the growth potential of mature key products; on the other hand, it strengthened its academic marketing system, accelerating hospital access, clinical education and prescription conversion for innovative products. Leveraging its increasingly diversified innovative product portfolio, the Company is able to provide more individualized and standardized comprehensive treatment solutions for patients with different disease courses and characteristics. In the out-of-hospital and primary healthcare markets, the Company closely aligned with policy priorities concerning tiered diagnosis and treatment and the strengthening of grassroots healthcare capacity, continued to strengthen and expand its network of partnerships for grassroots healthcare services, and deepened its reach across community, county-level and township medical institutions. Through diversified academic education and public outreach initiatives and commercial cooperation, the Company continued to enhance market awareness of innovative drugs and improve patient access to medicines. In the retail market, the Company continued to strengthen its multi-channel presence across online platforms, OTC markets and DTP specialty pharmacies. In the online segment, it worked with mainstream e-commerce platforms to optimize the entire medication purchasing process, providing patient education and awareness initiatives, targeted access to pharmaceuticals information and convenient medication purchasing services. In the OTC segment, it strengthened brand building, integrated media communications and retail sell-through initiatives, and continuously increased its market share at the retail level. Meanwhile, the Company continued to refine its regional market management mechanisms and KA management system, remained guided by medical expertise and driven by academic promotion, and strengthened the market competitiveness of its products. The Company maintains continuous collaboration with scientific research institutes, colleges and universities at home and abroad, and advances post-marketing realworld studies and evidence-based medicine exploration for new indications around its core products, to accumulate more clinical evidence and support further expansion of the product's clinical application scenarios. At the organizational level, the Company continues to deepen organizational transformation and process optimization, adheres to the parallel approach of in-house talent cultivation and high-end external talent recruitment, and consistently builds a talent echelon of pharmaceutical services that is youthful, specialized and highly execution-oriented, so as to provide solid organizational and talent support for the sustained commercialization of innovative products.

During the reporting period, the Company's R&D investment in the pharmaceutical industry segment (excluding equity investment) amounted to RMB 1.208 billion, representing a YoY decrease of 18.58%, among which the direct R&D expenditure reached RMB 1.062 billion, down 9.56% YoY, accounting for 13.30% of the revenue from the pharmaceutical industrial segment. The Company's innovative drug R&D center is advancing the development of 96 innovative drugs pipeline programs, with multiple positive results achieved in the first half of 2026. For details, please refer to the "(III) R&D situation" section below.

(2) Pharmaceutical distribution segment

In the first half of 2026, affected by multiple external factors including continuously tightened medical insurance cost control and pressure on terminal medical consumption, the pharmaceutical distribution industry has entered a transformation cycle focused on quality and efficiency improvement, and the profitability pressure of the traditional distribution model has intensified. Against this backdrop, the Company's pharmaceutical distribution segment adheres to the dual-track advancement of in-hospital and out-of-hospital businesses, giving consideration to both business scale expansion and internal operational efficiency improvement. Through proactive business structure adjustment and internal mechanism innovation, the segment effectively hedges the operational pressure brought by the external environment and achieves overall stable performance.

During the reporting period, the pharmaceutical distribution segment recorded an operating revenue of RMB 14.182 billion, representing a YoY increase of 1.68%, and a net profit of RMB 233 million, up 3.02% YoY.

During the reporting period, the segment closely followed the kick-off theme of the Company's 8th "Three-Year Plan" — "Innovation and Breakthrough", and focused on the three core priorities of "preserving existing business, driving incremental growth, and improving labor efficiency", to accelerate the transformation from scale-driven growth to value creation. By delivering integrated comprehensive services covering market access, government affairs, channels, sales and supply chain to upstream industrial clients, the Company deepens industrial collaboration and jointly builds an industrial value ecosystem. On the premise of stabilizing the fundamental business base, the segment actively explores new businesses, new markets and new models, so as to consolidate the business foundation for the Company's strategic goal of becoming a "comprehensive pharmaceutical services provider".

The segment consolidates its performance base with professional supply chain and pharmaceutical service capabilities. In the in-hospital segment, it deepened strategic cooperation with tertiary hospitals, delivered optimized pharmaceutical management and refined supply chain solutions to consolidate existing distribution shares; it also continuously expanded coverage to secondary hospitals and primary medical markets, optimized staffing and product mix, and filled the business gaps in primary markets. In the out-of-hospital segment, it accelerated business deployment. The self-operated retail business of the Company adhered to the principle of quality priority. The Company focused on developing hospital-affiliated stores and DTP pharmacies, strengthened project access review and store operation control, and built a benchmark for professional pharmaceutical services. New subsidiaries dedicated to pharmaceuticals and international trade were established, focusing on out-of-hospital market and non-pharmaceutical business expansion respectively, to further expand the national distribution scale and enrich the supply of non-pharmaceutical categories. In terms of operation management, the Company focused on key operational indicators such as inventory turnover and accounts receivable control, improved the performance appraisal system for personnel efficiency and departmental operational efficiency, and drove the transformation of traditional distribution business toward lean and efficient operations.

Breaking through the framework of traditional pharmaceutical distribution business, the Company vigorously promoted business model innovation and actively cultivated the second growth curve. The product agency business focused on three major directions: specialty chemical pharmaceutical, blood product, and innovative medical device. Based in Zhejiang and radiating to other provinces, the Company strives to build a leading regional CSO service brand. The third-party logistics business took high-barrier segments such as cold chain, specialty drugs and radiopharmaceuticals as the breakthrough points, continuously upgraded software and hardware capabilities, and built a nationwide professional delivery network. Meanwhile, by linking internal segment resources such as aesthetic medicine and industrial microbiology, the Company actively entered emerging tracks such as medical aesthetics and animal health. Relying on the national distribution business of key products including recombinant botulinum toxin, the Company built a cross-regional organizational structure, commercialization model and academic promotion system, and substantially advanced the development strategy of "going beyond Zhejiang Province".

The Company aligned business iteration and upgrading with organizational transformation, completed the integration of medical device business, established a medical device business unit, and set up specialized subsidiaries targeting the out-of-hospital and non-pharmaceutical markets. It accelerated the iteration and upgrading of information systems, promoted integrated intelligent management and control across business, material flow, retail, and operations. It continuously upgraded the national supply chain system, strengthened cross-regional cold chain delivery capabilities, and provided solid support for business expansion outside Zhejiang. The human resources and financial systems deepened group-wide management and control around the goals of "improving personnel efficiency, reducing costs and controlling expenses", optimized the resource allocation structure, and escorted the high-quality and sustainable growth of the segment.

(3) Aesthetic medicine segment

In the first half of 2026, the global macroeconomic environment presented a complex and volatile operating landscape, while the domestic pharmaceutical health and aesthetic medicine consumer industries as a whole entered a stage of in-depth structural adjustment. Multiple pressures continue to superimpose on the domestic aesthetic medicine industry: the recovery pace of terminal consumption remains slow, industry regulation continues to tighten and compliance standards keep escalating. Meanwhile, the supply of injectable medical aesthetics products continues to expand, leading to normalized price-driven cutthroat competition. The overseas market, on the other hand, is disturbed by multiple factors such as weak household consumption willingness, geopolitical fluctuations and exchange rate volatility, resulting in overall pressured operating environment.

During the reporting period, the Company's aesthetic medicine segment (excluding intersegment elimination) recorded a total operating revenue of RMB 651 million, representing a YoY decrease of 41.43%. Specifically, the domestic aesthetic medicine business revenue reached RMB 345 million, down 52.46% YoY; the overseas aesthetic medicine business revenue hit RMB 332 million, representing a YoY decrease of 36.59%. The Company believes that the current phased performance fluctuation of its aesthetic medicine business is not only an objective reflection of the industry as a whole entering an in-depth adjustment cycle, but also an inevitable stage for the Company to proactively promote strategic adjustment and upgrading, restructure the growth logic of the segment and accumulate momentum for recovery. It falls under the category of phased growing pains in the process of enterprise value reconstruction and capability iteration.

Facing the phased operational challenges, the Company adhered to the development goal of becoming a globally leading aesthetic medicine enterprise, upheld long-termism, deeply focused on innovation, and continuously promoted the optimization and integration of business systems at home and abroad.

Overseas market: In the first half of 2026, the overall organizational structure adjustment of the overseas aesthetic medicine business was completed. By integrating the functional teams of subsidiaries under Sinclair, streamlining business links, implementing flat management, empowering overseas businesses with domestic R&D, quality and supply chain capabilities, the Company optimized the global channel layout, deeply cultivated core European markets, expanded emerging regions, accelerated the overseas registration and commercialization of innovative products, and consolidated the foundation of global operation.

Domestic market: The Company carried out the reform of organizational and marketing systems to realize multi-category synergy across injectable fillers, botulinum toxin and energybased device. It optimized the channel structure, continuously promoted the dual-channel construction of public hospitals and private institutions, scaled up academic education for physicians and standardized clinical promotion, and drove the transformation of the business from extensive expansion to high-quality operation.

In terms of product pipelines, a number of heavyweight new products were approved for marketing during the reporting period, achieving full coverage of core tracks including regenerative fillers, botulinum toxin, hyaluronic acid filler and energy-based device. Domestically, Retoxin^®, the world's first Recombinant Botulinum Toxin Type A containing only 150KD core protein, Ellansé^® M, the first imported regenerative material in China approved for the temporal region (temple) indication, and the multi-functional skin therapy device V30 were successively approved for marketing. As of the end of June 2026, Retoxin^® has established cooperation with more than 1,600 hospitals. The Company's Ellansé^® series — Zhenyan^®, Jinyan^® and Zhizhen^® have entered nearly 500 aesthetic medicine institutions, and customized new product development has been carried out with strategic partners. MaiLi Extreme^® (MaiLi^® Extreme Shuoying^®), originating from Switzerland and equipped with the first-in-class OxiFree^® (oxygen-free) crosslinking technology, has entered over 100 institutions across the country with continuously improving market recognition. The number of cooperative institutions for energy-based devices including Glacial Spa, Reaction and Renotion has steadily climbed to more than 500, and Glacial^®spa Glacial Spa exceeded its semi-annual target.

In terms of academic promotion, Sinclair carried out 311 offline medical trainings in the first half of the year, covering more than 4,000 physician visits. The online physician platform recorded over 180,000 views, and a total of 42 academic papers covering all products have been published. The construction of public hospital channels continues to advance. The classic version of Ellansé^® has successfully entered key public hospitals nationwide. MaiLi^® Extreme^® completed network listing and price adjustment in 23 provinces, and carried out more than 20 public hospital physician trainings, covering nearly 500 physician attendances.

Important progress has also been made in the Company's overseas aesthetic medicine pipelines. Kytogen^® Defend, the non-animal-derived chitosan product, obtained the EU MDR CE certification in August 2026, further enriching the injectable product matrix. Meanwhile, the in-development pipelines are advancing steadily, with continuous layout in next-generation regenerative materials, skin repair, energy-based device and other directions to guarantee the supply of medium and longterm product iteration. The Company insists on returning to the essence of medical treatment, continuously enhances the professional influence on B-end institutions and C-end brand awareness, and builds a brand image of "innovation, professionalism and trustworthiness".

Overall, the compliant and standardized development trend of the aesthetic medicine industry continues to deepen, the underlying logic for the long-term growth of the industry remains robust, and the dual demands of consumers for safe, compliant, innovative and efficient aesthetic medicine products and services are still the core driving force for the development of the industry. Relying on the global R&D pipeline layout, the mature integrated commercial platform at home and abroad, and the commercialization capabilities built through years of deep cultivation in the industry, the Company is fully confident in the medium and long-term development prospects of its aesthetic medicine business. In the next stage, the Company will continue to focus on three core directions: first, accelerate the iteration and upgrading of product pipelines to enrich the differentiated product matrix; second, deepen the optimization of channel structure to improve the quality and efficiency of terminal coverage; third, strengthen the refined management of internal operations to release organizational effectiveness.

Looking ahead, with the accelerated clearance of inefficient production capacity in the industry, the steady recovery of consumer market confidence, and the gradual completion of market cultivation and release of sales momentum for a number of its own heavyweight new products, the

Company's aesthetic medicine segment is expected to smoothly step out of the adjustment cycle and achieve high-quality restorative growth.

During the reporting period, the Company also continued to advance the overseas registration of its aesthetic medicine portfolio, while actively implementing the registration and implementation of multiple core products in China. For information on the registration progress of the Company's key aesthetic medicine products at home and abroad, please refer to the subsections "(10) Registration and launching progress of domestic aesthetic medicine product" and "(11) Registration and launching progress of overseas aesthetic medicine product" under "(III) R&D situation" below in this section.

(4) Industrial microbiology business

In the first half of 2026, the global innovative drug industry chain continues to recover. The pipelines of cutting-edge therapies such as ADCs, nucleic acid drugs and polypeptide keep expanding, driving increased demand for high-value upstream APIs, intermediates and CDMO services. Meanwhile, the synthetic biology industry has received strong policy support, and the overseas market demand for high-quality, stably supplied biomanufacturing raw materials continues to be released. However, the industry also faces challenges including intensified global market competition, stricter overseas registration and compliance standards, and heightened price competition in some product categories. Against this industry backdrop, the Company's industrial microbiology segment firmly implements its established development strategy, continuously consolidates its four major business layouts covering xRNA raw materials, specialty APIs & intermediates, massive health products & biomaterials, and animal health. The Company strengthens technological innovation iteration and global market expansion, and takes accelerating international layout and deeply integrating into the global pharmaceutical supply chain as its core work objective at the current stage. It has achieved phased results in developing key customers at home and abroad. All business units delivered improving performance during the reporting period, achieving growth against market trends. Total sales revenue reached RMB 437 million, representing a YoY increase of 18.64%. Of which, the xRNA segment recorded a growth of over 50%. API and intermediate segment grew by 10%, among which the polypeptide API business increased by more than 50%. Massive health and biomaterials segment posted a growth of over 25%, the animal health segment grew by 25% and overseas business sales increased by 33%. Major accomplishments across all fields are as follows:

Specialty API & intermediate segment (ADC payloads + polypeptide):

International market development is the core strategic task of this segment at the current stage. As a business segment that integrates the traditional API business and innovative business for coordinated development, the Company has completed the layout of ADC toxin product series, and all mainstream toxin varieties have obtained US DMF filings. In 2026, the Company will continue to promote DMF filing for more new molecular products. Multiple CDMO cooperation contracts for ADC toxins have been executed, enabling the Company to provide global partners with integrated small-molecule development services from early-stage research through clinical stages, as well as supporting services for regulatory submission. Stable bulk supply of linker-toxin products for both clinical and commercial use has been achieved. The Company has finalized its global market strategic planning for polypeptide business. It is accelerating its international market expansion, actively advancing overseas licensing for finished preparations, and building an internationalized API supply system. Both polypeptide preparations and API businesses are expected to achieve scaled commercial sales over the next two years. The Company continues to regard strengthening international registration and market access as a critical pillar of its internationalization strategy, steadily builds the product pipeline of biopharmaceuticals in the global metabolism field, and continuously enhances its participation in the global high-end HPAPI (High Potency Active Pharmaceutical Ingredient)supply chain.

xRNA segment: Leveraging the Wuhu Huaren production base, the xRNA segment has built a complete R&D and production system for upstream raw materials of oligonucleotide drugs and in vitro diagnostic raw materials, serving domestic and overseas innovative pharmaceutical enterprises, CDMOs and in vitro diagnostic manufacturers with differentiated technological capabilities and efficient delivery capabilities. The Company continues to increase R&D investment, by focusing on three core directions: raw materials for nucleic acid drug (phosphoramidite monomers), delivery systems (GalNAc), and specially modified custom monomers. This segment has obtained ISO9001, ISO14001 and ISO45001 system certifications. The entire production process strictly complies with ICH international standards and GMP quality specifications. A total of 12 US DMF filings have been completed, and the Company has established cooperative relationships with many multinational pharmaceutical enterprises, achieving rapid business growth during the reporting period.

Massive health & biomaterials segment: This segment focuses on three core business directions: functional food raw materials, personal care raw materials and biomaterials. In the first half of 2026, Magic Health focused on the R&D and iteration of products such as VK2(Vitamin K2), PQQ(Pyrroloquinoline quinone), PS(Phosphatidylserine) and nattokinase around the tracks of bone health, brain health and anti-aging, and achieved rapid growth in the international market. All foodrelated quality systems including ISO9001, KOSHER, GMP and FSSC22000 have been kept in effective operation. In July, it passed the on-site audit of Food and Drug Administration (FDA) with zero defects, and the overseas compliance capability of its products has been authoritatively verified. Major breakthroughs have also been made in international market customer development and new application scenario expansion. The Company has successfully realized supply cooperation with many leading international health product customers in the United States. Shengji Material, centered on its proprietary and controllable biodegradable materials, has built a matrix of high-end medical functional materials. It has carried out CMC R&D and project incubation for biomedicine and aesthetic medicine by leveraging its pharmaceutical preparation technology platform. Two GMP-compliant manufacturing facilities for biodegradable materials and microspheres have been completed and put into operation. The Company actively cooperates with overseas universities, domestic and overseas pharmaceutical and aesthetic medicine enterprises in R&D collaborations covering material supply and complex injectable formulation development, and continuously builds a global innovation-driven industrial chain.

Animal health segment: Continue to strengthen its technological edge and accelerate the commercialization of products. Guided by market demand orientation, the Company focuses on differentiated innovation tracks, steadily advances R&D and commercial layouts for products in perioperative period, chronic disease management, deworming and other areas. The R&D pipeline continues to expand, building momentum for long-term sustainable growth. In the first half of the year, the Company was among the first to obtain the new veterinary drug registration certificate for Pregabalin Oral Solution, further consolidating its competitive edge in the pet analgesia and sedation track. Another 7 products are under registration review, including 2 Class I new veterinary drug APIs and their injections. On the marketing front, the Company continues to build professional brand moats. The core driver of business growth relies on Baoshining^®, China's first opiate analgesic new drug for pets. Through collaboration with top-tier chain hospitals, industry KOLs, and building benchmark hospitals in key cities, the products have deeply covered diverse clinical scenarios of perioperative care and pain management, driving the Company's offline business to record a YoY growth of over 50%. The new product Pregabalin has quickly completed channel deployment in key hospitals across the country, fully demonstrating the Company's channel reuse capability. On the consumer front, the Company has completed omni-channel layout on mainstream e-commerce platforms including Tmall, Douyin and Pinduoduo, focusing on core categories of deworming and nutritional supplements. Adhering to the business strategy of "empowering consumer brand penetration with professional medical endorsement", the Company promotes the coordinated development of online and offline businesses, continuously strengthens its comprehensive competitiveness and brand influence, and adapts to the development trend of China's pet pharmaceutical industry transforming towards compliance and professionalism.

2. BD collaboration of the Company during the reporting period

On January 5, 2026, Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd., the whollyowned subsidiary of the Company, announced the signing of a strategic cooperation agreement with MC2 Therapeutics Ltd. (hereinafter referred to as "MC2"), the wholly-owned subsidiary of MC2 Therapeutics A/S. Under the agreement, Huadong Medicine will obtain the exclusive commercialization rights for MC2 dermatological skincare creams, Biomee^®#1 and Biomee^®#2, in Greater China (including Chinese mainland, Hong Kong SAR, Macau SAR, and Taiwan region). These two products, powered by MC2 innovative mathrm P A D otimes Technology, are designed to address dry skin and discomfort while providing daily skincare and comfort. Huadong Medicine will be responsible for the registration and commercialization of Biomee^®#1 and Biomee^®#2 in Greater China. MC2 will be responsible for manufacturing and supply.

3. ESG of the Company during the reporting period

With regard to ESG, the Company maintained an unwavering commitment to sustainable development. A Sustainability (ESG) Committee has been established under the Board of Directors to oversee ESG-related matters. The Company integrates the core ESG principles into corporate development strategy and daily operations management, guiding and innovating business practices with a science-based approach to social responsibility. It upholds the idea of green manufacturing, actively supports China's "carbon neutrality and carbon peaking" goals, operates in strict compliance with laws and regulations with integrity, and actively fulfills its social responsibilities. As of the release date of the Report, the Company has received an AAA ESG rating from the SZSE CNI rating system, an AAA rating from RatingDock, an A ESG rating from WIND, an A ESG rating from CNI rating system, and an A ESG rating from Huazheng. The Company has also received honors including the "ESG Best Practice Company" award presented by New Fortune magazine in 2025.

4. Awards during the reporting period

During the reporting period, the Company's comprehensive competitive strength, efficient operation and governance, and value creation capabilities gained significant market recognition, as evidenced by a number of prestigious awards and honors. The Company has been included in the Fortune China 500 for 17 consecutive years. It has been ranked on the List of Global Top 50 Pharmaceutical Companies of Pharmaceutical Executive (US) for the second time. The Company also received such honors as the "Best Listed Company" award from New Fortune in 2025 and a place in the first tier of the "2026 Top 100 Innovative Pharmaceutical Enterprises in China" by E-Pharm Manager. In terms of investor relations management, the Company won the "Investor Relations Management Award" at the 17th Tianma Awards presented by Securities Times and the "Best Investor Relations Award" in Tonghuashun's 2025 Annual Ranking of Listed Companies.

(III) R&D

1. Key progress in innovation and R&D

During the reporting period, the Company adhered to the "Scientific Research-based and Patient-centered" corporate philosophy, strengthened its focus on therapeutic areas such as endocrinology, autoimmunity and oncology, continued to increase its R&D investment, expanded its innovative drug R&D pipeline, enhanced its innovative R&D ecosystem and technology platforms, actively advanced clinical trials, and accelerated the market launch of new products. Meanwhile, the Company conducted dynamic R&D assessments on an ongoing basis to improve the quality and competitiveness of its R&D pipeline. As of the date of the Report, the Company's innovative drug R&D center is advancing 96 innovative drug pipeline projects. Since its establishment 6 years ago, the Innovative Drug R&D Center has obtained marketing authorization for 12 innovative products in total. During the reporting period, the NDA for Sailexin^®/Saijiening^® for the indication of Crohn's disease was approved, achieving 4 NDA/BLA applications submissions, 9 IND approvals, and 14 innovative achievements published at international conferences. In addition, the DR10624 project was granted the Breakthrough Therapy Designation in China for severe hypertriglyceridemia. The Company's key projects, DR10624 and HDM2005, were successfully selected for the 2026 National Science and Technology Major Special Projects. During the reporting period, the Company's R&D investment in the pharmaceutical industry segment (excluding equity investment) amounted to RMB 1.208 billion, representing a YoY decrease of 18.58%, among which the direct R&D expenditure reached RMB 1.062 billion, down 9.56% YoY, accounting for 13.30% of the revenue from the pharmaceutical industrial segment.

Oncology

HDM2005, an ROR1-targeting ADC, ranks in the global first tier of global clinical development for ROR1 ADCs. Four clinical studies are currently underway in China: i) Phase I clinical study of monotherapy for advanced hematological malignancies, including mantle cell lymphoma (MCL), diffuse large B-cell lymphoma (DLBCL) and classical Hodgkin lymphoma (cHL). The Ia phase monotherapy dose escalation has been completed, and dose expansion studies for MCL and cHL are ongoing; ii) Phase I clinical study of monotherapy for advanced solid tumor, which is currently in the dose expansion stage for metastatic castration-resistant prostate cancer (mCRPC); iii) Phase Ib/II clinical study of combination therapy for DLBCL patients, which is in the phase II enrollment stage; iv) Phase Ib/III clinical study of combination therapy for r/r MCL patients, which is in the enrollment stage. In addition, the clinical study application for combination therapy in cHL was approved by NMPA in June.

The Phase I clinical study of HDM2012, a MUC17-targeting ADC for the advanced solid tumor, has entered the dose backfilling stage.

For HDM2020, an FGFR2b-targeting ADC, the monotherapy dose-escalation Phase I clinical study for advanced solid tumor has progressed to the 7th dose cohort. The Phase Ib clinical study for advanced squamous non-small cell lung cancer (sqNSCLC) has completed enrollment of the first dose cohort.

HDM2017, a CDH17-targeting ADC, is simultaneously advancing Phase Ia clinical study in China and Australia. Furthermore, two clinical study applications for combination therapy in advanced colorectal cancer (CRC) have both been approved by CDE.

The clinical study application for HDM2024, a bispecific antibody-drug conjugate (ADC) targeting EGFR/HER3 for the treatment of advanced solid tumor, has received IND approvals from the U.S. Food and Drug Administration (FDA) and China CDE. The first patient enrollment in the Phase I clinical study in China has been completed, and the study is currently in the dose-escalation phase.

HDM2027 (HDP-101), a BCMA-targeting Amanitin ADC, has completed the first patient enrollment in China for its Phase I monotherapy study targeting plasma cell diseases including multiple myeloma, and is currently in the dose escalation stage. In addition, in August 2026, the IND for a new indication of HDM2027 in drug combination was approved by the NMPA.

DR30206, a PD-L1/VEGF/TGF-β triple-target antibody fusion proteins developed by the holding subsidiary Doer Biologics, has completed Phase Ib dose expansion enrollment for first-line non-small cell lung cancer. Subsequent expansion or combination therapy studies are currently underway. The Company is also actively advancing the Phase Ib clinical study of monotherapy for head and neck squamous cell carcinoma, the Phase Ib/IIa clinical study of combination therapy for advanced or metastatic gastrointestinal oncology, and the Phase Ib/II clinical study of combination therapy for locally advanced or metastatic non-small cell lung cancer.

DR510, a first-in-class EGFR/CD3 bispecific T-cell redirecting antibody prodrug independently developed by the holding subsidiary Doer Biologics, is intended for the treatment of multiple solid tumors including head and neck squamous cell carcinoma, non-small cell lung cancer, pancreatic cancer and colorectal cancer. Its IND submission is in preparation.

Endocrinology

For HDM1002 (conveglipron), an oral small-molecule GLP-1 receptor agonist, the Phase III clinical study for the weight management indication in China has reached the primary clinical endpoint. The Pre-NDA submission was made in July 2026, and the NDA submission is planned for Q4 2026. Both Phase III clinical studies for the type 2 diabetes mellitus indication of this product have completed full enrollment. Pre-NDA communication application is expected to be submitted in Q4 2026.

For HDM1005 (poterepatide) injection, a long-acting GLP-1R/GIPR dual-target polypeptide agonist, all subject enrollment in the Phase III clinical study for the weight management indication has been completed. The study is currently in the treatment follow-up and data collection phase. The Pre-NDA application is scheduled to be submitted in Q4 2026. All subject enrollments have been completed in two Phase III studies for the diabetes mellitus indication. Two Phase III studies for the obstructive sleep apnea hypopnea syndrome (OSAS) indication are currently in preparation.

DR10624, the first-in-class candidate product for FGF21R/GCGR/GLP-1R triple agonist developed by the Company's holding subsidiary, Doer Biologics, was included in the Breakthrough Therapy Designation list by CDE for severe hypertriglyceridemia (sHTG) in January 2026. Key clinical discussions with regulatory authorities in China and the US have been completed, and the Phase III clinical study has been initiated. The Phase II clinical study of metabolic associated fatty liver disease with a high risk of liver fibrosis reported top-line results in Q3 2026. Follow-up studies are planned to further verify the efficacy and safety of DR10624 in the MASLD/MASH population. In July 2026, the IND for DR10624 in the indication of adult's HFpEF/HFrEF (heart failure with preserved ejection fraction/heart failure with reduced ejection fraction) was approved in China.

HDM1014 injection, which is the GalNAc-siRNA weight-loss drug self-developed by the Company, is undergoing IND development work. It is expected to submit IND application in China in Q4 2026.

HDM1013, the Company's independently developed triple-target weight-loss drug, is under IND development, and the Chinese IND submission is scheduled for Q3 2027.

The IND application for HDM1010 Tablets (a fixed-dose combination oral formulation of HDM1002) intended for the type 2 diabetes mellitus indication has been approved by the US Food

and Drug Administration (FDA).

The NDA for Semaglutide Injection (diabetes indication) was submitted with supplementary materials in March 2026 and is currently under review. The marketing application for the weight management indication is also under review, with registration testing ongoing.

The NDA for Insulin Degludec Injection was submitted with supplementary materials in May 2026 and is currently in the professional review stage.

The NDA for Insulin Degludec and Insulin Aspart Injection was submitted in June 2026 and is currently under professional review.

Autoimmunity

For HDM3001 (QX001S), the Ustekinumab biosimilar co-developed with Qyuns Therapeutics, the supplementary application for the subcutaneous injection and the marketing authorization application for the intravenous injection for the indication of Crohn's disease were approved in April and May 2026 respectively. The supplementary application for the new 90 mg strength for the indication of Crohn's disease was accepted in January 2026 and is expected to be approved by the end of 2026.

The Phase III clinical study of HDM3010 (Ruxolitinib Gel), the modified new drug independently developed by the Company for the treatment of vitiligo, is progressing.

For HDM3014 (Roflumilast Cream) co-developed with Arcutis (US), the Chinese NDA applications for two indications — plaque psoriasis (PsO) in patients aged 6 and above, and atopic dermatitis (AD) in patients aged 6 and above — have passed the on-site clinical inspection by NMPA. The Chinese NDA application for the AD indication in patients aged 2 to 5 was accepted in February 2026. All three indications above are expected to be approved in 2027.

The Phase III clinical trial of HDM3015 (MC2-01 Cream) for plaque psoriasis, co-developed with MC2 Therapeutics, has completed enrollment in China, and is currently in the treatment follow-up and data collection phase.

HDM4002 Injection, the first-in-class bispecific antibody candidate independently developed by the Company, is currently undergoing IND-enabling development. It is anticipated that IND applications will be submitted in both China and the United States in Q4 2026.

HDM3018, a bispecific antibody independently developed by the Company, is under IND development. The IND submissions in China and the US are scheduled for the second half of 2026.

HDM3020, a bispecific antibody independently developed by the Company, is under IND development, and the Chinese IND submission is scheduled for Q2 2027.

Other segments

The supplementary materials for the NDA of Ranibizumab Injection was submitted in Q2 2026.

2. Key registration milestones of innovative products during the reporting period

Note: Budesonide and Formoterol Fumarate Powder for Inhalation (IV), Capsule‑ type, is the product exclusively commercialized by the Company in the Chinese mainland.

3. The Company's pharmaceutical innovation achievements presented at international academic conferences since 2026

4. Innovative achievements scheduled for presentation at international academic conferences in the second half of 2026

5. Progress in the development and application of the AI-Enabled Drug Discovery (AIDD) Platform

In H1 2026, the Company continued to advance the systematic construction, R&D and application of the AI-Aided Drug Discovery (AIDD) platform. It accelerated the deep integration of artificial intelligence, bioinformatics and the new drug R&D workflow, further enhancing the enabling capabilities in key links including target evaluation, project initiation, molecular design, candidate molecule screening, druggability optimization and R&D intelligence analysis. The AIDD team has supported nearly 30 R&D projects, and the platform's supporting role for the R&D pipeline has become increasingly prominent. In terms of biopharmaceutical R&D, the Company continuously strengthens its capabilities in antibody engineering design, structure optimization, affinity maturation and druggability evaluation, which have been implemented in multiple key projects. The fastest-progressing projects have entered the pre-PCC stage. In terms of smallmolecule drug R&D, AIDD is used for druggability prediction and assessment to drive compound optimization. Among them, the HDM1013 project has entered the IND development stage.

During the reporting period, the Company initially completed the localized deployment of the competitive intelligence platform, AIDD toolbox and intelligent scientific research platform. It has preliminarily built an integrated AIDD technical chain covering "R&D intelligence acquisition, target and indication analysis, computational design and screening, intelligent analysis and decision support", providing critical support for improving the efficiency of candidate molecule discovery and optimization, strengthening early-stage project screening capabilities, optimizing R&D resource allocation and enhancing independent innovation capabilities. The Company actively deploys bioinformatics and intelligent R&D tools, and carries out systematic work focusing on target and target combination evaluation, indication selection and expansion, omics data analysis and R&D decision support. In H1 2026, relevant analyses covered more than 30 indications, approximately 100 potential target genes and related splice variants, supporting multiple initiated R&D projects.

6. Other innovative progress

Since the establishment of the Global Innovative Drug R&D Center 6 years ago, the Company has submitted over 220 innovation drug patents in total, with a cumulative number of 42 granted patents. Since the beginning of 2026, 14 domestic and foreign granted patents have been obtained, and 12 PCT international patent applications have been submitted.

Since 2021, the Global Innovative Drug R&D Center of the Company has been approved for 27 government projects at the national, provincial and municipal levels, with a total granted funding of nearly RMB 136.6 million. These projects include 2 national science and technology major special projects for innovative drug R&D under the national "Four Major Chronic Diseases" special program, national laboratory projects, central emergency research special projects, and Zhejiang Province "Pioneer" & "Leading Goose" R&D tackling projects. During the reporting period, Relmapirazin Injection and Mifanertinib Maleate Tablets were included in the 2026 Catalogue of High-Quality Innovative Hangzhou-produced Pharmaceuticals and Medical Devices. As the leading entity, the Company established the Yangtze River Delta Autoimmune Disease New Drug Innovation Consortium, focusing on the major clinical needs of autoimmunity to carry out R&D and industrialization tackling for innovative drugs. The "Provincial Key Laboratory for Intelligent

Innovation of Metabolic Disease New Drugs" has promoted the technical tackling of AIDD-based drug design & synthesis and intelligent drug delivery, supporting the R&D of the metabolism pipeline. The Lingang National Laboratory project focuses on metabolic drug-microneedle sustained-release technology. Its newly developed next-generation weight-loss and hypoglycemic drug-device combination product has advanced to the pre-PCC stage.

In February 2021, Zhongmei Huadong, a wholly-owned subsidiary of the Company, was approved to set up a postdoctoral research workstation in Zhejiang Province, which was registered as a national postdoctoral research workstation in September 2022. Postdoctoral researchers at the workstation conduct cutting-edge and translational research in innovative drug development, in alignment with the Company's strategic priorities and R&D pipeline layout. Postdoctoral researchers receive joint training through collaborations with mobile postdoctoral stations at leading academic institutions, including Zhejiang University, the Shanghai Institute of Materia Medica of the Chinese Academy of Sciences, Shandong University, and Zhejiang University of Technology. To date, the workstation has recruited 36 postdoctoral researchers, among whom 20 are currently in residence, while 16 have successfully completed the program.

7. Major R&D progress in generic drugs

The Company further clarified the focused and prioritized varieties by regularly organizing dynamic evaluation and analysis of existing generic drugs under development. From the beginning of the year to the release date of this Report, the Company has obtained marketing approval for a total of 5 generic drugs. These products include Carfilzomib for Injection, Isavuconazonium Sulfate for Injection and Ruxolitinib Phosphate Tablets from its wholly-owned subsidiary Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd., as well as Adapalene Gel and Terbinafine Hydrochloride Spray from its wholly-owned subsidiary Huadong Medicine (Xi'an) Bodyguard Pharmaceutical Co., Ltd.

8. Progress in international registration

8. Progress in international registration No. Field Item Remarks Latest progress 1 Endocrinology Semaglutide Injection For diabetes treatment: 1.34 mg/mL, 3 mL Approved by EAEU in April 2026 For weight loss: 0.68 mg/mL, 1.5 mL; 1.34 mg/mL, 1.5 mL; 1.34 mg/mL, 3 mL; 2.27 mg/mL, 3 mL; 3.2 mg/mL, 3 mL Approved by EAEU in May 2026 2 Immunology Tacrolimus Capsules 0.5 mg/1 mg Approved by Uzbekistan in April 2026

9. Progress in consistency evaluation

From the beginning of 2026 to the release date of the Report, Huadong Medicine (Xi'an) Bodyguard Pharmaceutical Co., Ltd., a wholly-owned subsidiary of the Company, received an Approval Notice for the Supplemental Application for Consistency Evaluation for its Ibuprofen Tablets.

10. Main registration progress of domestic aesthetic medicine

10. Main registration progress of domestic aesthetic medicine No. Type Product designation Intended use Latest progress 1 Injections MaiLi®Precise Hyaluronic acid Improvement of infraorbital hollowness Received marketing approval from NMPA in August 2026 2 Injections Lanluma®V Poly-L-lactic acid Improvement of jawline contour Completed the clinical trial report in June 2026 3 Injections KIO021 Chitosan Improvement of facial skin condition Completed 500 subjects enrollment in January 2026. Clinical data analysis is currently underway 4 Injections Ellansé-S Polycaprolactone

11. Main registration progress of overseas aesthetic medicine

12. Patent progress

In recent years, the Company has placed great emphasis on the protection of intellectual property rights and the application of research outcomes, with both the number of patent applications and grants steadily increasing. The Company has filed a total of over 2,000 patent applications domestically and internationally over the years, including more than 610 authorized invention patents. Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd., a wholly-owned subsidiary of the Company, is a national intellectual property demonstration enterprise. It passed the external audit by Zhongzhi (Beijing) Certification Co., Ltd. in November 2014 and became one of the first 147 enterprises that passed the standards implementation certification. In October 2025, it smoothly passed the audit of the enterprise intellectual property compliance management system (Certificate No.: 165IP250489R0L).

During the reporting period, the Company's patent application and maintenance work proceeded smoothly. A total of 110 patent applications were filed, including 86 invention patents, and 44 patents were authorized.

Note: The data in the above table represent the statistical patent information of main subsidiaries engaged in the pharmaceutical industry, industrial microbiology and aesthetic medicine within the Company's consolidated statements.

II. Analysis of core competitiveness

1. Open innovative drug R&D system and continuously improved innovation ability

The Company has consistently placed a high priority on innovation and research and development, and adhered to the philosophy of "research-driven and patient-centered" development. Guided by the principles of clinical value, pharmacoeconomic value, and commercial viability, the Company continues to sustain a high level of investment in R&D activities. Its Global Innovative Drug R&D Center serves as the cornerstone for innovation strategy formulation, pipeline planning, and clinical study and development. Following years of dedicated development, the Company has established a relatively comprehensive and independent drug R&D system that encompasses the entire life cycle of drug development—from drug discovery and pharmaceutical research through preclinical and clinical studies to industrialization.

Focusing on three core therapeutic fields—oncology, endocrinology, and autoimmunity—the Company remains committed to continuous development and has cultivated a diversified portfolio of differentiated innovative product pipelines that cover the full R&D cycle via independent R&D, external cooperation, license-in. All these merits effectively empower the continuous initiation and marketing of innovative products, offering impetuses for the Company's medium- and long-term development. The Company has continuously leveled up its independent R&D and innovation capabilities. Its Innovative Drug R&D Center is advancing the R&D of nearly 100 innovative drug pipeline programs, placing the Company among the first tier of pharmaceutical companies in China in terms of pipeline size.

2. Diverse product pipelines for specialized and chronic diseases, and featured layout in three core therapeutic fields

Focusing on specialized medicines, medicines for chronic diseases, as well as special medicines for years, the Company has fostered good brand effect and laid strong market foundation in such fields as chronic kidney disease, immunology, endocrinology, oncology, digestive system and cardiovascular diseases, continuously keeping in the forefront of similar products in China in terms of market share. Meanwhile, the Company has launched first-in-class new drugs on the global market in core therapeutic areas including oncology, endocrinology and autoimmunity. It has formed three featured pipeline matrices covering ADCs, GLP-1s and topical preparation, building differentiated competitive advantages.

Specializing in medicines for diabetes for over two decades, the Company has comprehensively laid out product pipelines of innovative and differentiated generic drugs for clinical mainstream therapeutic targets of diabetes, with over 20 types of products under development or put in commercial production. Now, the Company has fostered good brand effect and laid strong market foundation. The existing and subsequently-upgraded products cover multiple mainstream targets, including α-glucosidase inhibitors, DPP-4 inhibitors, SGLT-2 inhibitors, GLP-1 receptor single-target and long-acting multi-target agonists, as well as insulin and its analogs. Centered on the GLP-1 target, the Company has developed a comprehensive and differentiated product pipeline that combines long-acting and multi-target global innovative drugs and biosimilars, including oral tablets and injections.

In the oncology field, the Company takes independent R&D as the core and global collaboration as the support, continuously consolidating its differentiated product pipeline. Especially in the ADC track, the Company has built full-chain capabilities spanning from R&D to commercialization. Elahere^®, the world's first and currently the only approved FRα-targeting ADC drug for platinum-resistant ovarian cancer, has been officially commercialized in China. The Company is committed to building an ADC pipeline matrix centered on independent innovation, with ADC candidate products targeting differentiated innovative targets such as ROR1, FGFR2b, MUC17 and CDH17. The overall R&D progress for these novel targets ranks among the global leaders, and multiple products have obtained the Orphan Drug Designation from the FDA. Meanwhile, the Company has invested in, held controlling stakes in and incubated a number of leading domestic biotech companies. By strategically acquiring shares in Heidelberg Pharma, a German company, to become its second-largest shareholder, the Company carries out product collaboration and introduces its proprietary ATAC (Amanitin Antibody Conjugate) technology platform, further expanding its differentiated toxin ADC pipeline. Based on clinical feedback, the Company continues to carry out innovative R&D ofADCs with novel targets and new mechanisms, building a world-class independent ADC R&D industrial platform, and committed to providing innovative treatment solutions with higher clinical value for oncology patients.

华东医药主要肿瘤产品管线布局(截至2026年8月)

In the field of autoimmunity, the Company's marketed and pipeline products cover a wide range of indications, including transplant immunology, psoriasis, atopic dermatitis, rheumatoid arthritis, seborrhoeic dermatitis, prurigo nodularis, vitiligo, recurrent pericarditis, and cryopyrinassociated periodic syndromes. These indications span across dermatology, rheumatology, cardiovascular, respiratory, and transplant-related diseases, making the Company one of the most comprehensive pharmaceutical enterprises in China in terms of coverage in the autoimmune disease area. Additionally, the Company's innovative drug R&D center has been focusing on new targets and biological mechanisms, developing multiple early-stage projects for immune diseases, all of which are progressing smoothly. With regard to autoimmunity, the Company stretched its coverage to topical preparations, built topical preparation R&D platforms, and steadily advanced the R&D and innovation of external and complicated preparations. Currently, the Company's wholly-owned subsidiary, Huadong Medicine (Xi'an) Bodyguard Pharmaceutical Co., Ltd. and its controlled subsidiary, Shaanxi Jiuzhou Pharmaceutical Co., Ltd., have jointly fostered four production lines for topical preparations. The Company now has more than 10 products of topical preparation either under development or in commercial production.

3. A leading professional pharmaceutical service team in China and a mature and wellestablished commercial operation system

The Company's pharmaceutical development is supported by a highly specialized team dedicated to pharmaceutical services and market development. Centered on clinical value and academic promotion, the team advances an integrated marketing model that connects comprehensive hospitals, primary-level medical institutions, the retail sector, third-terminal channels, and online platforms. With a sales network covering more than 30 provinces, autonomous regions, and municipalities nationwide, the Company has established a multi-channel, widecoverage presence with strong competitive advantages.

The Company's pharmaceutical distribution segment has deeply cultivated the Zhejiang market for many years, with a solid regional business foundation and a well-established product category layout, building deep competitive moats in market access and terminal channel coverage. In terms of supply chain cooperation, the Company has established long-term, stable and in-depth strategic partnerships with over 95% of mainstream domestic and international pharmaceutical enterprises, with sufficient product supply and a mature cooperation system. Its sales network fully covers all 90 county-level administrative regions in Zhejiang Province, achieving 100% coverage of public medical institutions within the province. It also continuously expands to out-of-hospital terminal customers such as retail pharmacies and private medical institutions, with its regional market share ranking among the top in Zhejiang's pharmaceutical industry.

The Company continuously strengthens the construction of core competitive capabilities, forming systematic and institutionalized competitive advantages in deep collaboration with top-tier medical institutions, coordinated implementation of policy affairs, business model innovation and efficient organizational operation. It can provide full-value-chain integrated services for upstream and downstream partners, covering the entire process including pharmaceutical project market access, professional one-stop CSO commercial marketing, retail and DTP professional channel construction, local government affairs coordination, and compliant payment guarantee, fully empowering the coordinated development of the entire industrial chain.

With the continuous deepening of China's pharmaceutical reform, the pharmaceutical distribution industry is accelerating its transformation from the traditional commercial distribution model to a specialized, service-oriented and integrated supply chain service model. The Company accurately grasps the industry development trend, actively adapts to the orientation of policy reform, and continuously deepens strategic cooperation and ecological co-construction with core customers. At present, the Company has formed differentiated leading advantages in multiple core segmented tracks including professional market access services, omni-channel integrated marketing, pharmaceutical government affairs coordination, innovative pharmaceutical affairs services, highend cold chain third-party pharmaceutical logistics, and automated intelligent herbal decoction. It continues to consolidate its core competitiveness as the regional industry leader, building solid core moats for sustained and steady business growth.

4. A comprehensive high-end international aesthetic medicine product pipeline

Focusing on the global high-end medical aesthetics market, the Company has established an internationalized team dedicated for aesthetic medicine operations and BD. Through mergers and acquisitions and product in-licensing in recent years, the Company has progressively refined and enriched its industrial layout for high-end aesthetic medicines. The Company now provides fullspectrum coverage in the mid- to high-end markets for non-surgical aesthetic injectables and energy-based devices. Its portfolio comprises more than 50 high-end, internationally sourced minimally invasive and non-invasive aesthetic medicine products, 36 of which have already been launched in domestic or overseas markets. Its globally patented product suite spans mainstream non-surgical aesthetic categories, including frown line improvement, facial and body filling, thread lifting, skin management, body contouring, depilation, and intimate rejuvenation. The Company has thus established a comprehensive product cluster, ranking among the industry leaders in terms of product number and coverage breadth, while continuing to expand its global presence. Meanwhile, the Company has achieved full coverage across three major injectable categories—regenerative products, hyaluronic acid, and botulinum toxin—forming a multi-dimensional, full-face aesthetics treatment system. This allows the Company to provide precise, personalized and highly effective "one-stop" aesthetic solutions for aesthetic seekers. The Company's aesthetic medicine marketing network spans over 80 countries and regions worldwide, supported by a professional aesthetic medicine sales team of over 700 members across markets in and out of China.

5. Outstanding and leading international competitiveness in industrial microbiology segment

The Company has long been deeply engaged in the industrial microbiology segment. It operates the largest single fermentation workshop in Zhejiang Province and boasts industry-leading production capacity for microbial drugs. It possesses full-chain R&D capabilities in microbial engineering technologies, including strain construction, metabolism regulation, enzyme catalysis, synthetic modification, separation and purification. It has established a complete manufacturing system covering microbial project R&D, pilot-scale verification, commercial production, and engineering & utility system support. The Company has established an R&D cluster centered on the Synthetic Biology R&D Platform (Huadong Synthetic Biology Research Institute), the Industrial Microbiology R&D Platform (Huida Biotech) and the Synthetic Chemistry R&D Platform. It has deployed 7 industrialization bases located in Hangzhou Xiangfuqiao, Qiantang New Area, Jiangsu Joyang, Magic Health, Anhui Meihua, Wuhu Huaren and Huadong Dongbao. The Company is making every effort to continuously advance the integrated development of "production, research and marketing" in the field of industrial microbiology.

The Company's industrial microbiology segment has developed a globally-oriented, collaborative and highly efficient innovation talent team and established a multidisciplinary talent structure led by seasoned industry experts and supported by a new generation of key scientific research personnel. This has enabled the Company to build a specialized operating system underpinned by profound technical expertise and outstanding innovation capabilities. On the R&D front, the Company remains committed to talent-driven innovation, with master's and doctoral degree holders accounting for 30% of its R&D personnel. As of the end of the reporting period, the

Company's industrial microbiology segment had initiated 538 R&D projects in total, including 294 xRNA raw material projects, 148 specialty API and intermediate projects, 61 massive health and biomaterials projects, and 35 animal health projects. This extensive project pipeline provides a solid pipeline foundation for medium- and long-term business growth.

6. Prudent and pragmatic operation style, and stable returns to shareholders

The Company is committed to management innovation and continues to enhance its operating quality as a means of strengthening its core competitiveness. Leveraging its high-quality product portfolio, outstanding commercialization capabilities, compliant and efficient marketing and service system, differentiated market positioning, forward-looking R&D and innovation strategy, and a well-structured talent echelon plan, the Company is steadily advancing toward long-term, sustainable and high-quality growth. Since its listing, the Company has made a total of 26 dividend distributions, with cumulative dividends amounting to RMB 9.89 billion. Through sustained and stable cash returns, the Company has created substantial long-term investment value for its shareholders.

III. Analysis of main business

Overview

Please refer to the relevant contents of "I. Main business of the Company during the reporting period".

Year-on-year changes in key accounting data Unit: RMB

Significant changes in the composition or sources of the Company's profits during the reporting period □Applicable Not applicable

There were no significant changes in the composition or sources of the Company's profits during the reporting period.

Composition of operating revenue

Unit: RMB

[Note] The medical aesthetics business in China includes revenue from self-operated aesthetic medicine products, revenue from aesthetic medicine products distributed by the Company's pharmaceutical commercial agency, and revenue from proprietary OTC weight-loss products.

Industries, products, regions accounting for more than 10% of the Company's operating revenue or operating profit

Applicable □Not applicable

Unit: RMB

If the statistical method of the Company's main business data has been adjusted during the reporting period, the Company's main business data of the most recent period should be adjusted according to the method at the end of the reporting period

□Applicable Not applicable

IV. Analysis of non-main business

Applicable □Not applicable

Unit: RMB

V. Analysis of assets and liabilities

1. Significant changes in asset composition

Unit: RMB

2. Major overseas assets

Applicable □Not applicable

3. Assets and liabilities measured at fair value

Applicable □Not applicable

Unit: RMB

Description of other changes Other changes are due to exchange rate changes

Whether there is any significant change in the measurement attributes of the Company's main assets during the reporting period □Yes No

4. Restrictions on asset rights as of the end of the reporting period

Unit: RMB

VI. Analysis of investment status

1. Overall situation

Applicable □Not applicable

2. Significant equity investments acquired during the reporting period

□Applicable Not applicable

3. Significant non-equity investments in progress during the reporting period

Applicable □Not applicable

Unit: RMB

4. Investment in financial assets

(1) Investment in securities

Applicable □Not applicable

Unit: RMB

Note: (1) Huadong Medicine Investment Holding (Hong Kong) Limited ("Huadong Investment"), a whollyowned subsidiary of the Company, invested USD 3.00 million in 2018 to purchase 218,102 Series C-2 preferred shares of RAPT Therapeutics, Inc. RAPT Therapeutics, Inc. was listed on the NASDAQ Stock Market in the United States on October 30, 2019 (stock code: RAPT). As of the end of the reporting period, all RAPT shares held by Huadong Medicine Investment Holding (Hong Kong) Limited had been sold.

(2) On March 11, 2024, Huadong Medicine Investment Holding (Hong Kong) Limited, one of the Company's wholly-owned subsidiaries, subscribed IPO shares of Qyuns Therapeutics Co., Ltd. at the Stock Exchange of Hong Kong Limited as cornerstone investor with the consideration of equivalent USD 5 million from its own funds in Hong Kong dollar (excluding brokerage commission, related transaction fees and levies). For details, please refer to the Announcement on Subscribing IPO Shares ofQyuns Therapeutics Co., Ltd. in Hong Kong as Cornerstone Investor (Announcement No.: 2024-013) disclosed by the Company on CNINFO (http://www.cninfo.com.cn). On March 20, 2024, Qyuns Therapeutics was successfully listed on the main board of the Stock Exchange of Hong Kong with the stock code of 2509.HK. As of the date of this Report, the Company holds a total of 37,876,800 shares of Qyuns Therapeutics through its wholly-owned subsidiaries Zhongmei Huadong and Huadong Medicine Investment Holding (Hong Kong) Limited, accounting for approximately 16.68% of the total shares of Qyuns Therapeutics. Among them, Zhongmei Huadong holds 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.

(3) On November 28, 2024, Hangzhou Jiuyuan Genetic Biopharmaceutical Co., Ltd., one of the Company's shareholding enterprises, was successfully listed on the main board of the Stock Exchange of Hong Kong with the stock name (abbreviation) of Jiuyuan Gene and the stock code of 2566.HK. As of the date of the Report, the Company holds a total of 42,120,453 shares of Jiuyuan Gene through its wholly-owned subsidiary Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd., accounting for approximately 17.16% of the total shares of Jiuyuan Gene. The Company's shareholding in Jiuyuan Gene was reflected in the long-term equity investment in the financial statements.

(2) Investment in derivatives

□Applicable Not applicable

The Company had no derivative investment during the reporting period.

5. Use of raised funds

□Applicable Not applicable

The Company had no use of raised funds during the reporting period.

VII. Sale of major assets and equity

1. Sale of major assets

□Applicable Not applicable

The Company did not sell major assets during the reporting period

2. Sale of significant equity

□Applicable Not applicable

VIII. Analysis of major shareholding companies

Applicable □Not applicable

Major subsidiaries and shareholding companies with an impact of more than 10% on the Company's net profit

Unit: RMB

Acquisition and disposal of subsidiaries during the reporting period

Applicable □Not applicable

Description of major shareholding companies

IX. Structured entities controlled by the Company

□Applicable Not applicable

X. Risks faced by the Company and countermeasures

1. Risks arising from industry policy changes and product price reductions

The pharmaceutical industry is not only a strategic industry that receives strong support and encouragement from the government, but also one that is directly related to public health and life safety. It is characterized by intense competition and active innovation, requiring companies to continuously adapt to changes in market conditions and policy developments. In recent years, policies such as centralized volume-based procurement and national medical insurance negotiations have continued to advance, with an increasing trend toward standardization, normalization and systematization. Meanwhile, external uncertainties such as geopolitical factors and macroeconomic policies have also disrupted business operations and market conditions, presenting challenges to the production costs and profitability of the pharmaceutical industry. New drug products may also face the risk of price reductions.

Countermeasures: The Company closely monitors macroeconomic policies and industry development trends and continuously adjusts its business strategies accordingly. In terms of R&D, the Company continues to increase its investment in R&D and strengthen its long-term competitiveness and growth potential by continuously expanding its product pipeline in core therapeutic areas. Meanwhile, the Company continues to deepen its presence in the aesthetic medicine and industrial microbiology sectors, fostering diversified growth drivers. In addition, the Company also mitigates its production and operation risks through cost reduction, efficiency improvement, lean management, or by other means.

2. Risks in new drug R&D

The development of innovative products is characterized by long development cycles, substantial investment requirements and a high degree of uncertainty. From R&D to commercialization, an innovative drug must go through multiple stages, including preclinical study, clinical trial, regulatory submission and registration, approval for production, and commercial launch. The process is also subject to various uncertainties arising from government policies, market conditions, regulatory reviews and approvals, among other factors. In addition, the R&D of innovative drugs requires highly educated and highly qualified R&D professionals. Upfront investments in personnel and R&D expenses may place a certain degree of pressure on the Company's achievement of its current-period operating objectives. Following commercialization, newly launched drugs also require time and market development efforts to achieve meaningful sales growth, and may be subject to risks such as price reductions. As a result, there is a risk that returns on R&D investment may fall short of expectations.

Countermeasures: The Company focuses on its core therapeutic fields and continuously enhances its in-house R&D capabilities. In recent years, it has enriched and optimized its product pipelines through a combination of independent R&D and licensed introductions, thereby building a distinctive R&D ecosystem for Huadong Medicine and establishing differentiated R&D portfolios in oncology, endocrinology and autoimmunity. The Company will also continue to optimize its innovation mechanisms, improve its scientific evaluation and decision-making systems for new drug candidates, and deepen cooperation with renowned R&D institutions in China and abroad. At the same time, the Company will further strengthen its efforts to attract and develop high-caliber scientific and research talent, enhance the training and incentive mechanisms for key technical personnel, and build a high-level innovative R&D team capable of supporting the entire life cycle of innovative drug development.

3. Risk in investment and merger

External investment is one of the key means through which the Company pursues strategic transformation and upgrading. In recent years, to support its strategic transformation toward innovation-driven development, the Company has continued to pursue investment and M&A activities in the areas of innovative drugs, aesthetic medicine and industrial microbiology, resulting in goodwill and long-term equity investment of a certain scale. If the operating performance of investee or acquired companies fluctuates in the future, the related goodwill or long-term equity investment may be subject to impairment, which could adversely affect the Company's operating results for the current period. In addition, post-investment management and business integration of target companies place higher demands on the Company's management capabilities.

Countermeasures: The Company exercises oversight over acquired subsidiaries through control of Board of Directors and by appointing management and financial personnel to participate in major decision-making and daily operations. The Company requires its controlling subsidiaries to operate in compliance with the relevant internal control requirements applicable to listed companies. It has established comprehensive management systems for their day-to-day operations and ensured their effective implementation. The Management of acquired subsidiaries maintains efficient communication with the Company, while daily operations and major decisions are strictly carried out in accordance with relevant laws and regulations, the Company's Articles of Association, management rules, the Board of Directors and the Rules of Procedure for Shareholders' Meeting. From a risk management and control perspective, the Company conducts business, financial and tax due diligence on target companies by engaging professional intermediaries and regularly carries out special-purpose management audits. In addition, the Company is committed to comprehensively enhancing its capabilities in overall planning and coordination of business operations, management structures and financial management. It continuously strengthens resource sharing and synergies with acquired subsidiaries, enhances its capabilities in integrated business management and coordinated operations and governance, establishes a regular impairment testing mechanism covering goodwill and long-term equity investment, and further improves the comprehensiveness, scientific rigor and timeliness of post-investment management.

4. Risk in exchange rate fluctuation

The Company has remained committed to advancing its international development. In recent years, its international cooperation has continued to deepen, its aesthetic medicine sales network has expanded globally, and its industrial microbiology segment has accelerated its expansion into international markets. The proportion of its transactions settled in foreign currencies has been steadily increasing. The fluctuation in exchange rate will affect the price of the Company's export products, cause exchange gains and losses to the Company, and increase the operating costs, thus affecting the Company's assets, liabilities and income, further impacting its operation ability, debt repayment ability and profitability.

Countermeasures: The Company will closely monitor exchange rate movements and dynamically adjust its response strategies based on actual operating conditions to mitigate adverse impacts. It will enhance awareness of foreign exchange risk prevention and improve its foreign exchange risk management system. At the same time, the Company will strengthen the professional capabilities of its financial personnel and enhance their awareness of risk mitigation, while making effective use of financial instruments and other financial management measures to prudently manage and mitigate the risks arising from exchange rate fluctuations.

XI. Implementation of the market value management system and valuation enhancement plan

Whether the Company formulates its market value management system.

Yes □No

Whether the Company discloses its valuation enhancement plan.

□Yes No

To strengthen its market value management, further standardize its market value management practices, and practically safeguard the legitimate rights and interests of the Company, its investors, and other interested stakeholders, the Company has formulated its Market Value Management System in compliance with relevant laws and regulations, including the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Several Opinions of the State Council on Strengthening Regulation, Forestalling Risks, and Promoting High-Quality Development of the Capital Market, the Administrative Measures for the Disclosure of Information of Listed Companies, the No. 10 Guideline for the Supervision of Listed Companies - Market Value Management, as well as the Articles of Association and the Company's operational realities. The system was deliberated and approved at the 32nd Meeting of the 10th Board of Directors. Detailed information and the full text of the system can be found in the relevant announcement disclosed by the Company on the website of Cninfo (http://www.cninfo.com.cn) on April 18, 2025.

XII. Implementation status of the Action Plan for "Dual Enhancement of Quality and Return"

Whether the Company discloses its Action Plan for "Dual Enhancement of Quality and Return". Yes □No

The Company has formulated the Action Plan for "Dual Enhancement of Quality and Return" to implement the guiding principles of "Activating the capital market and boosting investors confidence" put forward by the Political Bureau of the CPC Central Committee, and of "Vigorously improving the quality and investment value of listed companies, taking more powerful and effective measures to stabilize the market and confidence" emphasized at the executive meeting of the State Council. The Plan aims to safeguard the interests of all shareholders, continuously strengthen the Company's core competitiveness and investment value, and achieve high-quality, efficient, and sustainable development. For details, please refer to the Announcement on Advancing the Implementation of the Action Plan for "Dual Enhancement of Quality and Return" (Announcement No.: 2024-011) disclosed by the Company on the website of Cninfo (http://www.cninfo.com.cn) on March 9, 2024. The progress of the Action Plan is presented as follows:

(I) Focusing on core responsibilities and principal businesses while maintaining stable operating performance and efficiency

The Company implemented the Action Plan for "Dual Enhancement of Quality and Return", concentrated on four major business segments: pharmaceutical industry, pharmaceutical distribution, aesthetic medicine, and industrial microbiology. These segments have advanced in a coordinated and in-depth manner, ensuring stable operational performance and efficiency. In the first half of 2026, the Company recorded an operating revenue of RMB 22.067 billion, representing a YoY increase of 1.81%. The net profit attributable to shareholders of the listed company reached RMB 1.861 billion, up 2.53% YoY. Net profit attributable to shareholders of the listed company excluding non-recurring profit and loss stood at RMB 1.858 billion, with a YoY increase of 5.44%. The net cash flow generated from operating activities during the reporting period was RMB 2.499 billion, up 1.73% YoY. The operating cash inflow remained in good shape, demonstrating robust earnings quality and overall stable business performance of the Company.

(II) Continuing innovative R&D to enhance core competitiveness

Adhering to the "research-driven and patient-centered" philosophy, the Company places great emphasis on innovation-driven R&D. In recent years, annual R&D expenditures of the Company have consistently surpassed RMB 1 billion.

As of the date of the Report, the Company's innovative drug R&D center is advancing 96 innovative drug pipeline projects. Since its establishment 6 years ago, the Innovative Drug R&D Center has obtained marketing authorization for 12 innovative products in total. During the reporting period, the NDA for Sailexin^®/Saijiening^® for the indication of Crohn's disease was approved, achieving 4 NDA/BLA applications, 9 IND approvals, and 14 innovative achievements published at international conferences. In addition, the DR10624 project was granted the Breakthrough Therapy Designation in China for severe hypertriglyceridemia. The Company's key projects, DR10624 and HDM2005, were successfully selected for the 2026 National Science and Technology Major Special Projects. During the reporting period, the Company's R&D investment in the pharmaceutical industry segment (excluding equity investment) amounted to RMB 1.208 billion, representing a YoY decrease of 18.58%, among which the direct R&D expenditure reached RMB 1.062 billion, down 9.56% year on year, accounting for 13.30% of the revenue from the pharmaceutical industrial segment.

In recent years, the Company has placed great emphasis on the protection of intellectual property rights and the application of research outcomes, with both the number of patent applications and grants steadily increasing. The Company has filed a total of over 2000 patent applications domestically and internationally over the years, including more than 610 authorized invention patents. Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd., a wholly-owned subsidiary of the Company, is a national intellectual property demonstration enterprise. It passed the external audit by Zhongzhi (Beijing) Certification Co., Ltd. in November 2014 and became one of the first 147 enterprises that passed the standards implementation certification. In October 2025, it smoothly passed the audit of the enterprise intellectual property compliance management system (Certificate No.: 165IP250489R0L).

During the reporting period, the Company's patent application and maintenance work proceeded smoothly. A total of 110 patent applications were filed, including 86 invention patents, and 44 patents were authorized.

(III) Improving corporate governance and enhancing the level of compliant operations

During the reporting period, in accordance with the latest provisions of relevant laws, regulations and regulatory documents, including the Company Law of the People's Republic of China, the Stock Listing Rules of the Shenzhen Stock Exchange, the Self-Regulatory Guideline No. 1 for Listed Companies of the Shenzhen Stock Exchange — Standardized Operation of Main Board

Listed Companies, and the Code ofCorporate Governancefor Listed Companies, and in light of the Company's actual circumstances, the Company adopted the Management System for the Remuneration of Directors and Senior Managers, and revised the Responsible Marketing Policy and the Administrative System for the Preparation and Disclosure of Financial Reports. The continuous improvement of the Company's institutional framework has further optimized its decision-making and deliberation processes, bringing its corporate governance system more closely in line with the requirements of market-oriented development and standardized operations. This has provided a solid institutional foundation for sound and efficient business decision-making and effectively safeguarded the legitimate rights and interests of the Company, its shareholders and all stakeholders.

With regard to ESG, the Company maintained an unwavering commitment to sustainable development. A Sustainability (ESG) Committee has been established under the Board of Directors to oversee ESG-related matters. The Company integrates the core ESG principles into corporate development strategy and daily operations management, guiding and innovating business practices with a science-based approach to social responsibility. It upholds the idea of green manufacturing, actively supports China's "carbon neutrality and carbon peaking" goals, operates in strict compliance with laws and regulations with integrity, and actively fulfills its social responsibilities.

(IV) Prioritizing shareholder returns and sharing development achievements

The Company places strong emphasis on management innovation and strives to enhance its market competitiveness through continuous improvements in operational excellence. Supported by high-quality products, superior commercialization capabilities, compliant and efficient marketing services, differentiated market positioning, forward-looking innovation-driven R&D layout, and comprehensive talent development, the Company continues to exhibit long-term and resilient growth. Since its listing, the Company has made a total of 26 dividend distributions, with cumulative dividends amounting to RMB 9.89 billion, providing shareholders with sustained and stable investment returns.

Pursuant to the Proposal on the Company's 2026 Semi-Annual Profit Distribution Plan, which was deliberated and approved at the seventh meeting of the eleventh session of the Company's Board of Directors on August 25, 2026, based on the Company's existing total share capital of 1,753,736,848.00 shares, the Company will distribute a cash dividend of RMB 3.50 (including tax) for every 10 shares to all shareholders. No bonus shares will be issued, and no capitalization of capital reserves will be made. The total cash dividend is expected to amount to RMB 613,807,896.80 (including tax). The 2026 Semi-Annual Profit Distribution Plan falls within the scope of authorization granted by the 2025 Annual Shareholders' Meeting to the Board of Directors and therefore does not need to be submitted to the Shareholders' Meeting for deliberation and approval.

(V) Improving information disclosure and strengthening the communication with investors

The Company consistently prioritizes the quality of information disclosure, and utilizes highquality, high-standard, and easily understandable disclosures to comprehensively and accurately convey its operational and developmental status to investors. To facilitate understanding of company dynamics among international investors, the Company publishes English versions of its periodic reports, further enhancing its international communication capabilities. Furthermore, the Company continuously innovates in the format of information disclosure, introduces visual tools such as "snapshot reports" to present its operational achievements and development plans in a more intuitive manner, enhancing the practicality and readability of information disclosure.

The Company regarded investor relations management as a vital component of corporate governance. It was committed to establishing smooth and efficient communication channels to continuously enhance interaction quality with the capital market. Through diversified investor communication activities, the Company actively conveyed its operational achievements and development strategies, effectively safeguarded investors' right to information and strengthened market recognition of the Company's long-term value.

The Company proactively organized specialized activities such as investor Q&A sessions, performance briefing, investor research events, and the "Investor Reception Day", to provide indepth interpretations of its strategies and financial performance. The Company responds to investors' inquiries through the Shenzhen Stock Exchange's Interactive Platform and has designated personnel to answer investor hotlines. At the same time, the Company promptly addresses investors' concerns through its official email address and investor relations email address, ensuring open and effective communication channels.

The Company has established a comprehensive new media communication matrix, including WeChat official account, Tongshunhao account, as well as Snowball and East Money corporate accounts. The Company flexibly utilized various new media tools to convey the latest developments, such as operational performance, BD project introductions, R&D progress, award information, and interpretations of regular reports, to the capital market and a broad range of investors in a concise and innovative manner.

Section IV Corporate Governance, Environment, and Society

I. Changes in directors and senior managers of the Company

□Applicable Not applicable

There were no changes in the Company's directors and senior managers during the reporting period. For details, please refer to the 2025 Annual Report.

II. Profit distribution and conversion of capital reserve into share capital during the reporting period

attributable to shareholders of the listed company for the corresponding period, and shall not be less than RMB 500 million (tax inclusive). This 2026 semi-annual profit distribution scheme falls within the scope authorized by the 2025 Annual Shareholders Meeting resolution to the Board of Directors and does not require further approval by the Shareholders' Meeting.

III. Implementation of the Company's equity incentive plan, employee stock ownership plan or other employee incentive measures

Applicable □Not applicable

1. Equity incentive

(1) On August 8, 2022, the Company convened the 2nd Meeting of the 10th Board of Directors and the 2nd Meeting of the 10th Board of Supervisors, on which the following proposals were reviewed and approved: the Proposal on the Company's Restricted Stock Incentive Plan in 2022 (Draft) and Its Abstract, the Proposal on Management Rules for the Implementation and Assessment of the Company's Restricted Stock Incentive Plan in 2022, the Proposal on the Management Rules ofthe Company's Restricted Stock Incentive Plan in 2022, and the Proposal on Applying to the General Meeting of Shareholders for Authorizing the Board of Directors to Handle Equity Incentive-related Matters. Independent directors provided their independent opinions on whether this incentive plan is conducive to the Company's sustainable development and whether it may harm the interests of the Company and all shareholders. For specific details, please refer to the relevant announcement published by the Company on CNINFO on August 10, 2022.

(2) On August 10, 2022, the Company disclosed the Announcement on Independent Directors Publicly Soliciting Proxy Voting Rights on Cninfo (http://www.cninfo.com.cn). Mr. Wang Ruwei, an Independent Director of the Company, acting as the convener and commissioned by other independent directors, publicly solicited proxy voting rights from all shareholders of the Company for the proposals related to the Restricted Stock Incentive Plan in 2022 reviewed at the 1st Extraordinary General Meeting of Shareholders in 2022, which was set to be convened on August 31, 2022.

(3) From August 15 to 25, 2022, the Company posted on its intranet the list of the first batch of incentive recipients under the Restricted Stock Incentive Plan in 2022, for a total of 10 days. By the end of the public announcement period on August 25, 2022, the Board of Supervisors had not received any objections against the incentive recipients from any individuals. On August 25, 2022, the Board of Supervisors of the Company convened a meeting to review and approve the Verification Opinions and Announcement Note on the List of the First Batch of Incentive Recipients under the Company's Restricted Stock Incentive Plan in 2022. The Company then disclosed these Verification Opinions and relevant announcements on Cninfo (http://www.cninfo.com.cn).

(4) On August 31, 2022, the Company convened the 1st Extraordinary General Meeting in 2022, on which the following proposals were reviewed and approved: the Proposal on the Company's Restricted Stock Incentive Plan in 2022 (Draft) and Its Abstract, the Proposal on Management Rules for the Implementation and Assessment of the Company's Restricted Stock Incentive Plan in 2022, the Proposal on the Management Rules of the Company's Restricted Stock Incentive Plan in 2022, and the Proposal on Applying to the General Meeting of Shareholders for Authorizing the Board of Directors to Handle Equity Incentive-related Matters. On the same day, the Company disclosed the Self-Inspection Report on Trading of Company Shares by Insiders and Incentive Recipients under Restricted Stock Incentive Plan in 2022 and related announcements on Cninfo (http://www.cninfo.com.cn). This incentive plan was approved at the Company's 1st Extraordinary General Meeting in 2022, and the Board of Directors was authorized to implement the Company's Restricted Stock Incentive Plan in 2022 and handle relevant matters according to the laws and regulations.

(5) On October 27, 2022, the Company convened the 4th Meeting of the 10th Board of Directors and the 5th Meeting of the 10th Board of Supervisors, on which the following proposals were reviewed and approved: the Proposal on Adjustments of the Company's Restricted Stock Incentive Plan in 2022, and the Proposal on Granting Restricted Stocks to the First Batch of Incentive Recipients under the Restricted Stock Incentive Plan in 2022. The Board of Directors confirmed that the grant conditions under the incentive plan were satisfied. The Board of Supervisors re-verified the list of incentive recipients on the first grant date and provided opinions on the adjustment and grant. The Company's independent directors agreed on the above proposals, with related reports prepared by the lawyers and independent financial advisers. On October 28, 2022, the Company disclosed the relevant announcements on Cninfo (http://www.cninfo.com.cn).

(6) On November 9, 2022, the Company disclosed the Announcement on Completion of Registration of the First Grant of Restricted Stocks under the Restricted Stock Incentive Plan in 2022. The Company completed the registration of the restricted stocks initially granted under the Restricted Stock Incentive Plan in 2022, and the listing date of the granted restricted stocks was November 15, 2022.

(7) On July 12, 2023, the Company convened the 12th Meeting of the 10th Board of Directors and the 8th Meeting of the 10th Board of Supervisors, on which the following proposals were reviewed and approved: the Proposal on Adjusting the Grant Price of Reserved Stocks under the Restricted Stock Incentive Plan in 2022 and the Proposal on Granting Reserved Restricted Stocks to Incentive Recipients under the Restricted Stock Incentive Plan in 2022. The Board of Directors confirmed that reserved conditions of the incentive plan for granting restricted stocks were fulfilled, and the Board of Supervisors re-verified the list of incentive recipients on the date of granting reserved stocks, and provided opinions on the grant. The Company's independent directors agreed on the above proposals, with related reports prepared by the lawyers and independent financial advisers. On the same day, the Company disclosed the relevant announcement on CNINFO.

(8) From July 13 to 23, 2023, the Company publicly displayed the list of incentive recipients for the reserved restricted stocks under this Restricted Stock Incentive Plan through its OA system, for a total of 10 days. By the end of the public announcement period on July 23, 2023, the Board of Supervisors had not received any objections against the incentive recipients from any individuals. On July 26, 2023, the Company convened a meeting of the Board of Supervisors, on which the following proposals were reviewed and approved: the Verification Opinions of the Board of Supervisors and Announcement Note on the List of Incentive Recipients for Reserved Restricted Stocks Granted under the Company's Restricted Stock Incentive Plan in 2022. On the same day, the Company disclosed the Verification Opinions of the Board of Supervisors and Announcement Note on the List of Incentive Recipients for Reserved Restricted Stocks Granted under the Company's Restricted Stock Incentive Plan in 2022 and related announcements on Cninfo (http://www.cninfo.com.cn).

(9) On September 27, 2023, the Company disclosed the Announcement on Completion of the Reserved Grant under the Restricted Stock Incentive Plan in 2022. The Company completed the registration of the reserved restricted stocks granted under the Restricted Stock Incentive Plan in 2022, and the listing date of the granted restricted stocks was September 28, 2023.

(10) On November 21, 2023, the Company convened the 18th Meeting of the 10th Board of Directors and the 12th Meeting of the 10th Board of Supervisors, on which the following proposals were reviewed and approved: Proposal on the Fulfillment of Conditions for the First Restriction Release Period ofthe Initial Grant ofRestricted Stocks under the Restricted Stock Incentive Plan in 2022, the Proposal on Adjusting the Repurchase Price of the Restricted Stock Incentive Plan in 2022 and the Proposal on Repurchase and Cancellation of Certain Restricted Stocks. The Board of Directors confirmed that the conditions for releasing restrictions during the first restriction release period of the first grant of restricted stocks under the Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to the authorization granted by the Company's 1st Extraordinary General Meeting in 2022, the Board of Directors approved the completion of the procedures for releasing the restrictions on 1,220,940 restricted stocks under the first restriction release period for 108 incentive recipients. The Board of Directors also approved the repurchase and cancellation of a total of 97,800 restricted stocks that had been granted but not yet released, corresponding to 4 incentive recipients who were no longer eligible due to resignation and 2 incentive recipients who failed to fully meet the individual performance assessment criteria for the first restriction release period. The Company's independent directors issued concurring independent opinions on the relevant matters, and the Board of Supervisors provided verification opinions, with related reports prepared by the lawyers and independent financial advisers. On the same day, the Company disclosed the relevant announcement on CNINFO.

(11) On December 1, 2023, the Company disclosed the Hint on Circulation of Restricted Stocks Released during the First Restriction Release Period for First Grant of Restricted Stocks under the Restricted Stock Incentive Plan in 2022. The restricted stocks released from the first restriction release period of the first grant under the Restricted Stock Incentive Plan in 2022 became tradable on December 5, 2023.

(12) On December 8, 2023, the Company convened its 2nd Extraordinary General Meeting in 2023, where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks and the Proposal on Altering the Registered Capital and Amending the Articles of Association were approved after review. On the same day, the Company disclosed the Announcement on Reducing Registered Capital by Repurchasing and Canceling Some Restricted Stocks and Notifying Creditors. As of January 24, 2024, the benchmark date for capital verification, i.e., within forty-five days from the date when the Company announced the reduction of capital, no creditor requested the Company to pay off its debts or provide corresponding guarantees.

(13) On March 28, 2024, the Company disclosed the Announcement on the Completion ofthe Repurchase and Cancellation of Certain Restricted Stocks. On March 26, 2024, the Company completed the procedures for repurchase and cancellation of 97,800 restricted stocks in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.

(14) On May 30, 2024, the Company convened the 24th Meeting of the 10th Board of Directors and the 16th meeting of the 10th Board of Supervisors, during which the Proposal on Adjusting the Repurchase Price ofthe Restricted Stock Incentive Plan in 2022 and the Proposal on Repurchase and Cancellation ofCertain Restricted Stocks were reviewed and approved. The Board of Directors agreed to repurchase and cancel a total of 65,000 restricted stocks that had been granted but not yet released from restrictions, corresponding to 5 incentive recipients who were no longer eligible due to resignation. The Board of Supervisors provided verification opinions on the relevant matters. with related reports prepared by the lawyers and independent financial advisers. On the same day, the Company disclosed the relevant announcement on CNINFO.

(15) On June 18, 2024, the Company convened its 1st Extraordinary General Meeting in 2024, where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks and the Proposal on Expanding the Business Scope, Altering the Registered Capital and Amending the "Articles of

Association" were reviewed and approved. On the same day, the Company disclosed the Announcement on Reducing Registered Capital by Repurchasing and Canceling Some Restricted Stocks and Notifying Creditors. As of August 5, 2024, the benchmark date for capital verification, i.e., within forty-five days from the date when the Company announced the reduction of capital, no creditor requested the Company to pay off its debts or provide corresponding guarantees.

(16) On August 29, 2024, the Company disclosed the Announcement on the Completion ofthe Repurchase and Cancellation of Certain Restricted Stocks. On August 27, 2024, the Company completed the procedures for repurchase and cancellation of 65,000 restricted stocks in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.

(17) On October 10, 2024, the Company convened the 28th Meeting of the 10th Board of Directors and the 18th Meeting of the 10th Board of Supervisors. During these two meetings, the Proposal on the Fulfillment of the Release Conditions during the First Restriction Release Period of the Reserved Restricted Stocks Granted under the Restricted Stock Incentive Plan in 2022 was reviewed and approved. The Board of Directors confirmed that the conditions for releasing restrictions during the first restriction release period of the reserved grant of restricted stocks under the Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to the authorization granted by the Company's 1st Extraordinary General Meeting in 2022, the Board of Directors approved the completion of the procedures for releasing the restrictions on 192,500 restricted stocks under the first restriction release period for 18 incentive recipients. The Board of Supervisors provided verification opinions on the relevant matters. with related reports prepared by the lawyers and independent financial advisers. On the same day, the Company disclosed the relevant announcement on CNINFO.

(18) On October 24, 2024, the Company disclosed the Hint on Circulation of Restricted Stocks Released during the First Restriction Release Period ofReserved Restricted Stocks Granted under the Restricted Stock Incentive Plan in 2022. The restricted stocks released from the first restriction release period of the reserved grant under the Restricted Stock Incentive Plan in 2022 became tradable on October 28, 2024.

(19) On November 25, 2024, the Company convened the 30th Meeting of the 10th Board of Directors and the 20th Meeting of the 10th Board of Supervisors, during which the following proposals were reviewed and approved: Proposal on the Fulfillment of the Release Conditions during the Second Restriction Release Period for First Grant of Reserved Restricted Stocks under the Restricted Stock Incentive Plan in 2022, the Proposal on Adjusting the Repurchase Price ofthe Restricted Stock Incentive Plan in 2022 and the Proposal on Repurchase and Cancellation of Certain Restricted Stocks. The Board of Directors confirmed that the conditions for releasing restrictions during the second restriction release period of the first grant of restricted stocks under the Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to the authorization granted by the Company's 1st Extraordinary General Meeting in 2022, the Board of Directors approved the completion of the procedures for releasing the restrictions on 1,063,740 restricted stocks under the second restriction release period for 90 incentive recipients. The Board of Directors also approved the repurchase and cancellation of a total of 185,500 restricted stocks that had been granted but not yet released from restrictions, corresponding to 1 incentive recipient who was no longer eligible due to resignation, 16 incentive recipients whose individual performance assessment results for the second restriction release period were unqualified, and 1 reserved incentive recipient whose individual performance assessment results for the first restriction release period were unqualified. The Board of Supervisors provided verification opinions on the relevant matters. with related reports prepared by the lawyers and independent financial advisers. On November 27, 2024, the Company disclosed the relevant announcements on Cninfo (http://www.cninfo.com.cn).

(20) On December 13, 2024, the Company disclosed the Hint on Circulation of Restricted Stocks Released during the Second Restriction Release Periodfor First Grant ofRestricted Stocks under the Restricted Stock Incentive Plan in 2022. The restricted stocks released from the second restriction release period of the first grant under the Restricted Stock Incentive Plan in 2022 became tradable on December 16, 2024.

(21) On December 20, 2024, the Company convened its 2nd Extraordinary General Meeting in 2024, where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks and the Proposal on Expanding the Business Scope, Altering the Registered Capital and Amending the "Articles of Association" were reviewed and approved. On the same day, the Company disclosed the Announcement on Reducing Registered Capital by Repurchasing and Canceling Some Restricted Stocks and Notifying Creditors. As of February 5, 2025, the benchmark date for capital verification, i.e., within forty-five days from the date when the Company announced the reduction of capital, no creditor requested the Company to pay off its debts or provide corresponding guarantees.

(22) On March 28, 2025, the Company disclosed the Announcement on the Completion ofthe Repurchase and Cancellation of Certain Restricted Stocks. On March 26, 2025, the Company completed the procedures for repurchase and cancellation of 185,500 restricted stocks in Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.

(23) On June 27, 2025, the Company convened the 34th Meeting of the 10th Board of Directors and the 24th Meeting of the 10th Board of Supervisors, where the Proposal on Adjusting the Repurchase Price of the Restricted Stock Incentive Plan in 2022 and the Proposal on

Repurchase and Cancellation of Certain Restricted Stocks and Reduction of the Company's Registered Capital were reviewed and approved. The Board of Directors agreed to repurchase and cancel a total of 56,000 restricted stocks that had been granted but not yet released from restrictions, corresponding to 6 incentive recipients who were no longer eligible due to resignation, and to reduce the Company's registered capital accordingly. The Board of Supervisors provided verification opinions on the relevant matters. with related reports prepared by the lawyers and independent financial advisers. On July 1, 2025, the Company disclosed the relevant announcement on CNINFO.

(24) On July 16, 2025, the Company convened its 1st Extraordinary General Meeting in 2025, where the Proposal on Repurchase and Cancellation ofCertain Restricted Stocks and Reduction of the Company's Registered Capital was reviewed and approved. On the same day, the Company disclosed the Announcement on Reducing Registered Capital by Repurchasing and Canceling Some Restricted Stocks and Notifying Creditors. As of September 1, 2025, the benchmark date for capital verification, i.e., within forty-five days from the date when the Company announced the reduction of capital, no creditor requested the Company to pay off its debts or provide corresponding guarantees.

(25) On September 11, 2025, the Company disclosed the Announcement on the Completion of Repurchase and Cancellation of Certain Restricted Stocks. On September 9, 2025, the Company completed the procedures for repurchase and cancellation of 56,000 restricted stocks at Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.

(26) On October 13, 2025, the Company convened the 3rd Meeting of the 11th Board of Directors, where the Proposal on the Fulfillment of Conditions for the Second Restriction Release Period of Reserved Restricted Stocks Granted under the Restricted Stock Incentive Plan in 2022 was reviewed and approved. The Board of Directors confirmed that the conditions for releasing restrictions during the second restriction release period of the reserved restricted stocks granted under the Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to the authorization granted by the Company's 1st Extraordinary General Meeting in 2022, the Board of Directors approved the completion of the procedures for releasing the restrictions on 175,000 restricted stocks under the second restriction release period for 16 incentive recipients. The Remuneration and Appraisal Committee of the Board of Directors issued verification opinions on relevant matters, while lawyers and independent financial advisors provided corresponding reports. On October 15, 2025, the Company disclosed the relevant announcements on Cninfo (http://www.cninfo.com.cn).

(27) On October 25, 2025, the Company disclosed the Hint on Circulation ofRestricted Stocks Released during the Second Restriction Release Period of Reserved Restricted Stocks Granted under the Restricted Stock Incentive Plan in 2022. The restricted stocks released from the second restriction release period of the reserved restricted stocks granted under the Restricted Stock Incentive Plan in 2022 became tradable on October 29, 2025.

(28) On November 20, 2025, the Company convened the 5th Meeting of the 11th Board of Directors, on which the following proposals were reviewed and approved: Proposal on the Fulfillment ofthe Release Conditions during the Third Restriction Release Periodfor First Grant of Reserved Restricted Stocks under the Restricted Stock Incentive Plan in 2022, the Proposal on Adjusting the Repurchase Price ofthe Restricted Stock Incentive Plan in 2022 and the Proposal on Repurchase and Cancellation ofCertain Restricted Stocks. The Board of Directors believed that the conditions for releasing restrictions during the third restriction release period of the first grant of restricted stocks under the Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to the authorization granted by the Company's 1st Extraordinary General Meeting in 2022, the Board of Directors agreed to handle the releasing procedures for 1,275,120 restricted stocks for 77 incentive recipients during the third restriction release period, and also approved the repurchase and cancellation of a total of 284,200 restricted stocks that had been granted but not yet released from trading restrictions, corresponding to 6 incentive recipients who were no longer eligible due to resignation, 16 incentive recipients whose individual performance assessment results for the third restriction release period were unqualified, 3 incentive recipients whose individual performance assessment results for the restriction release period were qualified among the initially granted incentive recipients, 1 reserved incentive recipient who was no longer eligible due to resignation, and 2 incentive recipients whose individual performance evaluations for the second restriction release period were unqualified among the incentive recipients of reserved grants. The Remuneration and Appraisal Committee of the Board of Directors issued verification opinions on relevant matters, while lawyers and independent financial advisors provided corresponding reports. On November 22, 2025, the Company disclosed the relevant announcements on Cninfo (http://www.cninfo.com.cn).

(29) On December 6, 2025, the Company disclosed the Hint on Circulation of Restricted Stocks Released during the Third Restriction Release Period for First Grant of Restricted Stocks under the Restricted Stock Incentive Plan in 2022. The restricted stocks released from the third restriction release period of the first grant under the Restricted Stock Incentive Plan in 2022 became tradable on December 10, 2025.

(30) On December 9, 2025, the Company convened its 2nd Extraordinary Shareholders Meeting in 2025, where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks and the Proposal on Expanding the Business Scope, Altering the Registered Capital and Amending the "Articles of Association" were reviewed and approved. On the same day, the Company disclosed the Announcement on Reducing Registered Capital by Repurchasing and Canceling Some Restricted Stocks and Notifying Creditors. As of January 23, 2026, the benchmark date for capital verification, i.e., within forty-five days from the date when the Company announced the reduction of capital, no creditor requested the Company to pay off its debts or provide corresponding guarantees.

(31) On March 7, 2026, the Company disclosed the Announcement on the Completion of Repurchase and Cancellation of Certain Restricted Stocks. On March 5, 2026, the Company completed the procedures for repurchase and cancellation of 284,200 restricted stocks at Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.

2. Implementation of employee stock ownership plan (ESOP)

□Applicable Not applicable

3. Other employee incentives

□Applicable Not applicable

IV. Disclosure of environmental information

Whether the listed company and its major subsidiaries are included in the list of enterprises legally required to disclose environmental information

Yes □No

V. Social responsibility

In the process of its strategic transformation, the Company strictly fulfills its corporate social responsibilities, and actively addresses the concerns of all stakeholders, including shareholders, governments and regulatory agencies, employees, customers and patients, suppliers, communities, the public, as well as partners The Company continues to deepen its engagement in public health education, expand access to medical services to a broader population, and strive to provide affordable healthcare solutions for patients. Meanwhile, the Company remains committed to social welfare initiatives, uniting diverse forces to deliver warmth and care. By sharing cutting-edge technologies and collaborating with leading experts and industry partners, the Company also continues to drive progress in both industry development and societal advancement.

Section V Important Matters

I. Commitments that have been fulfilled by the commitment-related parties, such as de facto controller, shareholders, related parties, acquirers and the Company, during the reporting period, and those have not been fulfilled as of the end of the reporting period

□Applicable Not applicable

During the reporting period, the company did not have any commitments made by the de facto controller, shareholders, related parties, acquirers, or the Company itself that were fulfilled during the reporting period or remained overdue as of the end of the reporting period.

II. Non-operational appropriation of funds of the listed company by controlling shareholders and other related parties

□Applicable Not applicable

During the reporting period, there was no non-operational appropriation of funds of the listed company by controlling shareholders and other related parties

III. Violations of external guarantees

□Applicable Not applicable

There was no violation of external guarantee during the reporting period.

IV. Appointment and dismissal of accounting firms

Whether the semi-annual financial report has been audited

□Yes No

The Company's semi-annual report has not been audited.

V. Explanations by the Board of Directors on the "Non-standard Audit Report" during the reporting period

□Applicable Not applicable

VI. Explanation of the Board of Directors on the situation relating to the "Non-standard Audit Report" of the prior year

□Applicable Not applicable

VII. Matters related to bankruptcy and reorganization

□Applicable Not applicable

The Company was not involved in matters related to bankruptcy and reorganization during the reporting period.

VIII. Litigation matters

Significant litigation and arbitration matters

□Applicable Not applicable

During the reporting period, the company was not involved in major litigation or arbitration matters.

Other litigation matters

Applicable □Not applicable

Note: During the reporting period, the Company made positive progress in initiating administrative rulings and lawsuits against 20 infringing enterprises for violating the invention patent "Indobufen Crystal form D and Its Preparation Method" (Patent No.: ZL202211596913.5) owned by Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd. (hereinafter referred to as "Zhongme Huadong"), its wholly-owned subsidiary. The Company also actively defended against the patent invalidation request filed by the accused infringing enterprises. As of August 25, 2026, the progress is as follows:

1. Administrative rulings: Zhongmei Huadong has submitted administrative ruling applications to the Hangzhou Intellectua Property Office, Huzhou Intellectual Property Office, Chengdu Intellectual Property Office, Nanjing Intellectual Property Office Guangdong Intellectual Property Office, and Changsha Intellectual Property Office regarding patent infringement by 20 companies, demanding an immediate cessation of the infringing activities. As of August 25, 2026, the Hangzhou Intellectual Property Office had issued 4 administrative rulings, all finding that infringement had occurred and ordering the involved enterprises to immediately cease their infringing activities. In response to the above administrative rulings, the involved enterprises filed administrative lawsuits before the Hangzhou Intermediate People's Court, with Zhongmei Huadong participating in the proceedings as a third party. One case involving an administrative ruling was withdrawn due to jurisdictional issues, one administrative ruling was upheld by the Hangzhou Intermediate People's Court, and the remaining 2 cases remain pending before the court. Guangdong Intellectual Property Office issued an administrative decision in one case, determining that the alleged infringement was not established. The decision further clarified that, if a subsequent effective judgment of a people's court makes a new determination regarding the scope of protection afforded by the claims of the patent at issue, Zhongmei Huadong may re-submit a request for an administrative ruling on the paten infringement dispute based on the new effective decision confirming the validity and ownership of the patent rights. Zhongme Huadong has filed an administrative lawsuit against the administrative decision in accordance with the law. The administrative ruling application filed with the Changsha Intellectual Property Office has been accepted but has not yet proceeded to an oral hearing. The other applications for administrative rulings have been docketed and accepted by the intellectual property offices in the respective regions, and oral hearings have been completed, but rulings have not yet been issued.

2. Judicial litigation: In addition to the administrative ruling applications, Zhongmei Huadong filed patent infringement lawsuits with the Hangzhou Intermediate People's Court in 2024 and 2025, respectively, requesting an immediate cessation of the infringing acts and compensation for losses. One case has obtained a judgment determining infringement, and the involved enterprise has filed an appeal with the Supreme People's Court, which has been accepted and is pending adjudication; the other case has been accepted by the Hangzhou Intermediate People's Court, but has not yet been adjudicated.

3. Patent invalidation proceedings: As of August 25, 2026, the Company has received 15 cases involving requests for patent invalidation concerning the patent at issue. On March 12, 2025, the China National Intellectual Property Administration (CNIPA) issued decisions on the examination of requests for patent invalidation in all 5 cases simultaneously, maintaining the patent at issue in full force and effect. Four cases were closed following the withdrawal of the requests by the requesters, and the remaining 6 cases remain pending. In response to the Decision on the Review ofa Requestfor an Invalidation Declaration issued by the China Nationa Intellectual Property Administration, two invalidation petitioners, dissatisfied with the decisions, filed administrative lawsuits for invalidation with the Beijing Intellectual Property Court, which ruled to uphold the original decisions and dismissed the petitioners claims; two petitioners, still dissatisfied with the judgment, subsequently appealed to the Supreme People's Court, which has accepted the case, but has not yet rendered a judgment.

In addition, during the reporting period, the Company received: (1) a non-infringement confirmation lawsuit filed by a related party of the involved enterprise with the Jinan Intermediate People's Court, which ruled to reject all claims brought by the related party of the involved enterprise; (2) an unfair competition lawsuit filed by the involved enterprise with the Yinchuan Intermediate People's Court, which was later voluntarily withdrawn by the involved enterprise; subsequently, the involved enterprise filed another unfair competition lawsuit with the Wucheng District People's Court in Jinhua City. As of August 25, 2026, this case has been transferred to the Gongshu District People's Court in Zhejiang Province for handling, and has not yet been heard or adjudicated.

IX. Penalties and rectification

□Applicable Not applicable

The Company had no penalties or rectifications during the reporting period.

X. Integrity of the Company and its controlling shareholders and de facto controllers

Applicable □Not applicable

During the reporting period, neither the Company, its controlling shareholders, nor its de facto controller has failed to comply with any effective court judgment, nor defaulted on any material debt obligations that had become due.

XI. Significant related party transactions

1. Related party transactions related to daily operations

Applicable □Not applicable

2. Related party transactions involving the acquisition or selling assets and equity

□Applicable Not applicable

During the reporting period, the company did not have any related party transactions arising from the acquisition or sale of assets or equity interests.

3. Related party transactions of joint investments abroad

□Applicable Not applicable

The company did not have any related party transactions ofjoint investments abroad during the reporting period.

4. Related party receivables and payables

□Applicable Not applicable

The company did not have any related credit and debt transactions during the reporting period.

5. Transactions with related party financial companies

□Applicable Not applicable

There was no deposit, loan, credit or other financial business among the Company, the finance company with which the Company has established a relationship, and the related parties.

6. Transactions between the Company's controlled financial subsidiaries and related parties

□Applicable Not applicable

There was no deposit, loan, credit facility or other financial transactions between the finance companies controlled by the Company and related parties.

7. Other major related party transactions

□Applicable Not applicable

The Company did not have other significant related party transactions during the reporting period.

XII. Significant contracts and fulfillment

1. Entrustment, contracting and leasing

(1) Trusteeship

□Applicable Not applicable

The company did not have trusteeship during the reporting period.

(2) Contracting

□Applicable Not applicable

The company did not have contracting during the reporting period.

(3) Leasing

Applicable □Not applicable

Lease description

Refer to the relevant content in "Section VIII Financial Report - VII. Notes to consolidated financial statement items, 82. Leasing".

Items that brought gains and losses to the Company amounting to more than 10% of the Company's total profit during the reporting period

□Applicable Not applicable

There was no leasing item that brought gains and losses to the Company amounting to more than 10% of the Company's total

profit during the reporting period.

2. Important guarantees

Applicable □Not applicable

Unit: RMB 10,000

Explanation of specific situations for composite guarantee

3. Entrusted wealth management

□Applicable Not applicable

The Company did not have any entrusted wealth management during the reporting period.

4. Other significant contracts

□Applicable Not applicable

The Company did not have any other significant contracts during the reporting period

XIII. Registration form for activities such as research, communication, and interviews conducted during the reporting period

Applicable □Not applicable

XIV. Other major events

□Applicable Not applicable

The Company had no other significant matters requiring explanation during the reporting period.

XV. Major events of subsidiaries

Applicable □Not applicable

As of the release date of the Report, under the supervision of the court, the liquidation of Huadong Ningbo Medicine Co., Ltd. has completed the disposal of major asset. Currently, only the collection of remaining receivables remains pending. The Company will actively advance the subsequent liquidation. During this reporting period, the Company recognized an investment income of RMB -2,119,166.93 by using the equity method.

Section VI Share Changes and Shareholders Information

I. Changes in shares

1. Changes in shares

Unit: Shares

Reason for changes in shares Applicable □Not applicable

During the reporting period, the Company completed the repurchase and cancellation of certain restricted shares under its Restricted Stock Incentive Plan in 2022. A total of 284,200 restricted stocks were repurchased and canceled, resulting in a corresponding decrease of 284,200 shares in the Company's total share capital.

Approval of changes in shares

Applicable □Not applicable

1. On November 20, 2025, the Company convened the 5th Meeting of the 11th Board of Directors, on which the following proposals were reviewed and approved: Proposal on the

Fulfillment ofthe Release Conditions during the Third Restriction Release Periodfor First Grant of Reserved Restricted Stocks under the Restricted Stock Incentive Plan in 2022, the Proposal on Adjusting the Repurchase Price ofthe Restricted Stock Incentive Plan in 2022 and the Proposal on Repurchase and Cancellation ofCertain Restricted Stocks. The Board of Directors believed that the conditions for releasing restrictions during the third restriction release period of the first grant of restricted stocks under the Restricted Stock Incentive Plan in 2022 had been satisfied. Pursuant to the authorization granted by the Company's 1st Extraordinary General Meeting in 2022, the Board of Directors agreed to handle the releasing procedures for 1,275,120 restricted stocks for 77 incentive recipients during the third restriction release period, and also approved the repurchase and cancellation of a total of 284,200 restricted stocks that had been granted but not yet released from trading restrictions, corresponding to 6 incentive recipients who were no longer eligible due to resignation, 16 incentive recipients whose individual performance assessment results for the third restriction release period were unqualified, 3 incentive recipients whose individual performance assessment results for the restriction release period were qualified among the initially granted incentive recipients, 1 reserved incentive recipient who was no longer eligible due to resignation, and 2 incentive recipients whose individual performance evaluations for the second restriction release period were unqualified among the incentive recipients of reserved grants. The Remuneration and Appraisal Committee of the Board of Directors issued verification opinions on relevant matters, while lawyers and independent financial advisors provided corresponding reports. On November 22, 2025, the Company disclosed the relevant announcements on Cninfo (http://www.cninfo.com.cn).

2. On December 9, 2025, the Company convened its 2nd Extraordinary Shareholders' Meeting in 2025, where the Proposal on Repurchase and Cancellation of Certain Restricted Stocks and the Proposal on Expanding the Business Scope, Altering the Registered Capital and Amending the "Articles of Association" were reviewed and approved. On the same day, the Company disclosed the Announcement on Reducing Registered Capital by Repurchasing and Canceling Some Restricted Stocks and Notifying Creditors. As of January 23, 2026, the benchmark date for capital verification, i.e., within forty-five days from the date when the Company announced the reduction of capital, no creditor requested the Company to pay off its debts or provide corresponding guarantees.

3. On March 7, 2026, the Company disclosed the Announcement on the Completion of Repurchase and Cancellation of Certain Restricted Stocks. On March 5, 2026, the Company completed the procedures for repurchase and cancellation of 284,200 restricted stocks at Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.

Transfer of changed shares

Applicable □Not applicable

In February 2026, the Company submitted the relevant registration materials to the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited for the repurchase and cancellation of 284,200 shares involved in the equity incentive plan. In the same month, the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited issued the Confirmation for Registration of Securities Transfer to the Company, and the total share capital of the Company was reduced from 1,754,021,048.00 shares to 1,753,736,848.00 shares.

Progress of implementation of share repurchase

□Applicable Not applicable

Progress in the implementation of the reduction of repurchased shares via centralized bidding

□Applicable Not applicable

Impact of share changes on financial indicators such as basic and diluted earnings per share, and net assets per share attributable to common shareholders of the Company in the last year and the latest period

Applicable □Not applicable

Calculated based on the total number of stocks before the change in share capital (1,754,021,048 shares), the Company's basic earnings per share in 2026 were RMB 1.0609/share, diluted earnings/share were RMB 1.0609/share, and net assets per share attributable to common shareholder of the Company were RMB 14.5046/share. Calculated based on the total number of stocks after the change in share capital (1,753,736,848 shares), the Company's basic earnings per share for 2026 were RMB 1.0610/share, diluted earnings per share were RMB 1.0610/share, and net assets per share attributable to common shareholder of the Company were RMB 14.5069/share.

Overall, the aforementioned changes in share capital did not have a significant impact on the Company's financial indicators for the first half of 2026, including basic and diluted earnings per share, as well as net assets per share attributable to common shareholder of the Company.

Other contents deemed necessary by the Company or required to be disclosed by securities regulatory authorities □Applicable Not applicable

2. Changes in restricted stocks

Applicable □Not applicable

Unit: Shares

II. Issuance and listing of securities

□Applicable Not applicable

III. Number of shareholders and shareholding

Unit: Shares

Participation in the lending of shares through refinancing business of shareholders holding more than 5% of shares, top 10 shareholders and top 10 shareholders holding tradable shares without trading restriction

□Applicable Not applicable

Change in top 10 shareholders and top 10 shareholders holding tradable shares without trading restriction due to lending/returning of shares through refinancing as compared to the previous period

□Applicable Not applicable

Whether the top 10 common shareholders and the top 10 common shareholders with unrestricted stocks in the Company engage in the agreed repurchase transactions during the reporting period

□Yes No

The top 10 common shareholders and the top 10 common shareholders with unrestricted stocks in the Company did not engage in any agreed repurchase transactions during the reporting period.

IV. Changes in shareholdings of directors and senior managers

□Applicable Not applicable

There has been no change in the shareholding status of the Company's directors and senior managers during the reporting period. For full details, please refer to the 2025 Annual Report.

V. Changes in controlling shareholders or de facto controllers

As previously disclosed by the Company, the de facto controller is planning a change of control which has not yet been completed. Please provide an update on the progress of this change of control.

□Applicable Not applicable

Change in controlling shareholder during the reporting period

□Applicable Not applicable

There was no change in the controlling shareholder of the Company during the reporting period.

Change in the de facto controller during the reporting period

□Applicable Not applicable

There was no change in the de facto controller of the Company during the reporting period.

VI. Relevant situation of preferred shares

□Applicable Not applicable

The Company did not have preferred shares during the reporting period.

Section VII Information on Bonds

□Applicable Not applicable

Section VIII Financial Reports

I. Audit report

Whether the semi-annual financial report has been audited

□Yes No

The Company's semi-annual financial report has not been audited.

II. Financial statements

The unit in the notes to financial statements is: RMB

1. Consolidated balance sheet

Prepared by: Huadong Medicine Co., Ltd.

June 30, 2026

Unit: RMB

Legal representative: Lv Liang Officer in charge of accounting: Lv Liang Head of Accounting Department: Qiu Renbo

2. Balance sheet of the parent company

Unit: RMB

3. Consolidated income statement

Unit: RMB

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

4. Income statement of the parent company

Unit: RMB

5. Consolidated cash flow statement

Unit: RMB

6. Cash flow statement of the parent company

Unit: RMB

7. Consolidated statement of changes in owners' equity

Amount in the current period

Unit: RMB