The Half Year Report 2021 of Huadong Medicine Co., Ltd
Huadong Medicine Co., Ltd.
The Half Year Report 2021
August 2021
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Section I. Important Declaration, Contents and Definitions
The Board of Directors, Board of Supervisors, directors, supervisors and
senior management of Huadong Medicine Co., Ltd. (hereinafter referred to as
the “Company”) hereby guarantee that the information presented in this half
year report is authentic, accurate and complete and free of any false records,
misleading statements or material omissions, and shall undertake individual and
joint legal liabilities.
Lv Liang, the Company’s legal representative and the officer in charge of
accounting, and Qiu Renbo, head of accounting department (accounting
supervisor) hereby declare and guarantee that the financial statements in this
half year report are authentic, accurate and complete.
All directors have attended the Board of Directors meeting to review this
half year report.
The future plans, development strategies and other forward-looking
statements in this half year report shall not be considered as substantial
commitment of the Company to investor. Investors and related parties should
maintain sufficient risk awareness, and should understand the difference
between plans, forecasts and promises. Investors are kindly reminded to pay
attention to possible investment risks.
The Company faced various risks in its operations, involving industry
The Half Year Report 2021 of Huadong Medicine Co., Ltd
policies, markets, R&D of new drugs, product price reduction, etc. For details,
refer to “X. Risks and Countermeasures” in “Section III. Discussion and
Analysis of the Management”. We thank all investors for paying attention to the
Company’s operations, and we hope that you can be aware of investment risks.
The company does not plan to distribute cash dividends, no bonus share
will be issued; and no capital reserve will be converted to increase the share
capital.
According to “Stock Listing Rules of the Shenzhen Stock Exchange”, if
listed companies have both Chinese or 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.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Contents
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Documents Available for Reference
I. Financial Statements carrying the signatures and stamps of the Company
Principal, the Chief Financial Officer and the person in charge of accounting firm;
II. Original copies of all documents and the announcements thereof disclosed in
the reporting period on the designated newspaper.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Definitions
Term refers to Definition
CSRC refers to China Securities Regulatory Commission
SSE refers to Shenzhen Stock Exchange
Huadong Medicine/the Company/our Company refers to Huadong Medicine Co., Ltd.
CGE refers to China Grand Enterprises, Inc.
Huadong Medicine Group refers to Hangzhou Huadong Medicine Group Co., Ltd.
Zhongmei Huadong refers to Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd.
Jiangdong Company refers to Hangzhou Zhongmei Huadong Pharmaceutical Jiangdong Co., Ltd.
Jiuyang Bio refers to Jiangsu Jiuyang Biopharm Co., Ltd.
Xi’an Bohua refers to Huadong Medicine (Xi’an) Bohua Pharmaceutical Co., Ltd.
Jiuyuan Gene refers to Hangzhou Jiuyuan Gene Engineering Co., Ltd.
Doer Biologics refers to Zhejiang Doer Biologics Corporation
Huadong Ningbo Company refers to Huadong Ningbo Medicine Co., Ltd.
Chongqing Peg-Bio refers to Chongqing Peg-Bio Biopharm Co., Ltd.
Qyuns Therapeutics refers to Qyuns Therapeutics Co., Ltd.
Nuoling Biomedical refers to Nuoling Biomedical Technology (Beijing) Co., Ltd.
Yuanda Investment Management refers to Shanghai Yuanda Investment Management Co., Ltd.
Fuguang Chengdu refers to Fuguang Chengdu Equity Investment Management Co., Ltd.
Hangzhou High-Tech refers to Hangzhou High-Tech Venture Capital Management Co., Ltd.
Yuanda Huachuang refers to Beijing Yuanda Huachuang Investment Co., Ltd.
Hangzhou Heda refers to Hangzhou Heda Industrial Fund Investment Co., Ltd.
Pharmaceutical Industry Fund/Fuguang
refers to Hangzhou Fuguang Hongxin Equity Investment Partnership (L.P.)
Hongxin
Sinclair refers to Sinclair Pharma Limited
vTv Company refers to vTv Therapeutics LLC
R2 refers to R2 Technologies,Inc.
MediBeacon refers to MediBeacon Inc.
ImmunoGen refers to ImmunoGen, Inc.
Provention Bio refers to Provention Bio, Inc.
RAPT refers to RAPT Therapeutics,Inc.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Kylane refers to Kylane Laboratoires SA
High Tech refers to High Technology Products, S.L.U.
LG refers to LG Chem Ltd
Jetema refers to Jetema. Co,.ltd
Exscientia refers to Exscientia Ltd.
GMP refers to Good Manufacturing Practice
CGMP refers to Current Good Manufacture Practices
GSP refers to Good Supply Practice
BE refers to Bioequivalence
Center for Drug Evaluation (of National Medical Products
CDE refers to
Administration)
MAH refers to Marketing Authorization Holder
FDA refers to (U.S.) Food and Drug Administration
NMPA refers to National Medical Products Administration
NDA refers to New Drug Application
ANDA refers to Abbreviated New Drug Application
International Council for Harmonisation (of Technical Requirements
ICH refers to
for Pharmaceuticals for Human Use)
IND refers to Investigational New Drug
PK/PD refers to pharmacokinetics/pharmacodynamics
CMC refers to Chemistry, Manufacturing and Control
CMO refers to Contract Manufacturing Organization
CDMO refers to Contract Development and Manufacturing Organization
PMA refers to Premarket Application
QA refers to Quality Assurance (department)
Catalogue of Drugs for Basic National Medical
Catalogue of Drugs for Insurance（2020） refers to
Insurance/Employment Injury Insurance/Birth Insurance（2020）
ADC refers to Antibody-Drug Conjugate
EHS refers to Environment、Health、Safety
Drugs that can only be purchased and used according to prescriptions
Prescription Drugs refers to
issued by physicians
OTC refers to Over The Counter
MRCT refers to International Multi-center Clinical Trial
RWS/RWR refers to Real World Study/Real World Research
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Section II. Company Profile and Key Financial Indicators
I. Company information
Stock name (abbreviation) Huadong Medicine Stock code 000963
Stock listed on Shenzhen Stock Exchange
Company name in Chinese 华东医药股份有限公司
Company name in Chinese
华东医药
(abbreviation, if any)
Company name in English (if
HUADONG MEDICINE CO., LTD
any)
Company name in English
HUADONG MEDICINE
(abbreviation, if any)
Legal representative Lv Liang
II. Contact persons and contact information
Secretary of the Board of Directors Securities Affairs Representative
Name Chen Bo /
Contact address 866 Moganshan Road, Hangzhou /
Tel. 0571-89903300 /
Fax 0571-89903300 /
Email address hz000963@126.com /
III. Other information
Whether there is any change in the Company’s registered address, office address, zip code, company website or company email
address during the reporting period.
□ Applicable √ N/A
There is no change in the Company’s registered address, office address, zip code, company website or company email address during
the reporting period. For details, please refer to 2020 Annual Report.
Whether there is alteration in information disclosure and place of the report during the reporting period.
□ Applicable √ N/A
The Half Year Report 2021 of Huadong Medicine Co., Ltd
The media selected by the Company for information disclosure, the website designated by CSRC for publication of the half year
report, and the location of preparation of the Company’s half year report have not changed during the reporting period. For details,
please refer to the 2020 Annual Report.
IV. Key accounting data and financial indicators
Whether the Company needs to perform a retroactive adjustment or restatement of previous accounting data
□Yes √No
Change of the current
Current reporting period Same period last year reporting period over the
same period last year(%)
Operating revenue (yuan) 17,179,437,902.61 16,660,934,157.64 3.11%
Net profit attributable to shareholders of
listed companies (yuan)
Net profit attributable to shareholders of
listed companies after deducting 1,193,980,887.18 1,406,723,973.10 -15.12%
non-recurring gains/losses (yuan)
Net cash flow from operating activities
(yuan)
Basic earnings per share (yuan/share) 0.7431 0.9894 -24.89%
Diluted earnings per share (yuan/share) 0.7431 0.9894 -24.89%
Weighted average return on equity (ROE) 8.54% 13.12% -4.58%
Change of the end of the
End of the current reporting
End of last year current reporting period
period
over the end of last year(%)
Total assets (yuan) 26,108,178,089.87 24,201,348,154.75 7.88%
Net assets attributable to shareholders of
listed companies (yuan)
Share capital of the Company as of the trading day before disclosure
Share capital of the Company as of the trading day before
disclosure (share)
Fully diluted earnings per share calculated on the basis of the latest Share capital
Dividends paid on preferred shares 0.00
Perpetual bond interest paid (yuan) 0.00
Fully diluted earnings per share calculated on the basis of the
latest Share capital (yuan/share)
The Half Year Report 2021 of Huadong Medicine Co., Ltd
V. Differences in accounting data under domestic and overseas accounting standards
accounting standards
□ Applicable √ N/A
There are no differences in net profit and net assets disclosed in financial statements under international and Chinese accounting
standards.
accounting standards
□ Applicable √ N/A
There are no differences in net profit and net assets disclosed in financial statements under overseas and Chinese accounting
standards.
VI. Items and amounts of non-recurring gains/losses
√ Applicable □ N/A
Unit: RMB yuan
Item Amount Note
Gains/losses on disposal of non-current assets (including the
-110,119.08
written-off part of the accrued assets impairment reserve)
Government grants included in current gains/losses (excluding Mainly due to the confirmation of
those closely related to operating activities and measured 138,308,095.20 government grants by
according to unified national standards) subsidiaries in the current period.
Receivables subject to separate impairment test and reversal of
reserve for impairment of contract assets
Other non-operating revenue or expenditure expect
-4,916,566.97
above-mentioned items
Minus: Amount affected by income tax 22,095,294.54
Amount affected by rights and interests of minority
stakeholders (after tax)
Total 106,365,437.67 --
If the Company recognizes an item as a non-recurring gain/loss based on the “Interpretative Announcement No. 1 on Information
Disclosure Criteria for Public Companies – Non-Recurring Profit/Loss” or recognizes an item satisfying the definition of
non-recurring gain/loss in the announcement as a recurring gain/loss, reasons should be specified.
□ Applicable √ N/A
No such case during the reporting period.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Section III. Discussion and Analysis of the Management
I. Main business of the company during the reporting period
Huadong Medicine Co., Ltd. (stock code: 000963), founded in 1993 and headquartered in
Hangzhou, Zhejiang Province, was listed on Shenzhen Stock Exchange in December 1999. After
more than 20 years of development, its business covers the whole pharmaceutical industrial chain.
With the pharmaceutical industry as its core, the Company expands its medicine business and
aesthetic medicine industry. It has developed into a large comprehensive listed pharmaceutical
company integrating R&D, production and sales of medicine.
The pharmaceutical industry of the Company focuses on R&D, production and sales of
specialist medication, chronic disease medication and medication for special purposes. The Company
has formed core product pipelines in such fields as chronic kidney diseases, transplantation immunity,
internal secretion and gastrointestinal system, and owns a number of first-line clinical medications
with market advantages in China. Meanwhile, through independent development, external
introduction and project cooperation, the Company focuses on the R&D layout of innovative drugs
and generic drugs with high technical barriers in the three core fields of anti-tumor, internal secretion
and autoimmunity. The Company continues to carry out international product registration,
international certification, consistency evaluation, etc., and continues to achieve results, forming an
international pharmaceutical industry system.
The Company has four business segments, including Traditional Chinese Medicine (TCM) and
Western Medicine, medical devices, ginseng, antler and other herbs, and health industry, covering
pharmaceutical wholesale, pharmaceutical retail, third-party pharmaceutical logistics characterized
by cold chain, pharmaceutical e-commerce, hospital value-added service, and featured mega health
industry, providing customers with integrated solutions.
Committed to the R&D, production and sales of a series of advanced international aesthetic
brands and high-end aesthetic medicine products, the Company’s aesthetic medicine business
targets the global high-end aesthetic medicine market and focuses on the R&D, production and
sales of the latest products and devices in facial micro-plastic surgery and skin management.
Sinclair, a wholly-owned subsidiary of the Company that is headquartered in the United Kingdom,
has production bases in France and the Netherlands, and promotes and sells long-effect microsphere
fillers for injection, hyaluronic acid, as well as face thread lift products in the global market.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Sinclair is the global operation platform of the Company for aesthetic medicine business. The
aesthetic medicine sector also includes High Tech (Spain), an overseas wholly-owned subsidiary,
R2 (USA) and Kylane (Switzerland), two partially-owned subsidiaries, and Huadong Ningbo
Medicine Co., Ltd., a domestic holding subsidiary.
transition, in which China’s pharmaceutical industry has entered a new stage of development and the
market pattern has changed dramatically. In the post-pandemic period, China’s economy maintains
its recovery momentum and is driving the unleashing of the potential of domestic demand. However,
as the COVID-19 pandemic breaks out repeatedly, the global economic situation is complex and
severe, and the international situation is still subject to many unstable and uncertain factors.
pressure. With the gradual national and local normalization of volume-based procurement of drugs,
the quantity and category of drugs have been gradually expanded and are being advanced in depth.
The backward forcing effect of medical insurance policies has become increasingly pronounced, and
the reform of the medical insurance payment mechanism has been accelerating. In the context of
medical insurance cost control and clinical value first, DRG/DIP has been extensively piloted at the
same time, and the assessment of rational drug use by medical institutions has been put on the agenda.
Therefore, hospitals’ sales model of drugs and competitive landscape will also undergo major
changes. The pharmaceutical market and pharmaceutical enterprises are still facing a huge policy
shock. In July 2021, the Center for Drug Evaluation of National Medical Products Administration
issued the draft for comments of the Guidelines for Clinical Value-based Clinical Research and
Development of Anti-tumor Drugs, which caused widespread concern in the industry. The concept of
“Clinical value-based” will become a significant factor in innovative drug R&D strategies in the
future.
In the first half of 2021, despite the dual challenges of industry policy and market competition,
the Company continued to follow the trend, actively pursued changes, and focused on innovation. It
implemented its strategic planning around its annual business objectives, and made great efforts to
overcome the staged impact of the price reduction of some products, maintaining the stable
development of overall operations. Furthermore, it achieved new breakthroughs in the three major
sectors of the pharmaceutical industry, pharmaceutical commerce, and aesthetic medicine business,
laying a solid foundation for the realization of the annual business objectives.
During the reporting period, the Company achieved an operating income of RMB17.179
billion, up 3.11% year on year; the net profit attributable to the shareholders of the listed company
The Half Year Report 2021 of Huadong Medicine Co., Ltd
was RMB1.3 billion, down 24.89% year on year, and the net profit attributable to the shareholders
of the listed company after deducting non-recurring gains/losses was RMB1.194 billion, down
Co., Ltd., the core subsidiary of the Company achieved an operating income of RMB5.424 billion,
down 10.85% year on year, and its net profit was RMB1.192 billion, down 13.49% year on year; in
the second quarter, due to the impact of product price reduction, the operating income of Zhongmei
Huadong decreased by 5.35% year on year (the first quarter down 14.58% year on year), its net
profit decreased by 11.67% year on year (the first quarter down 14.6% year on year), and the
decline narrowed significantly compared with the first quarter. In the first half of this year, the sales
volume and market share of Acarbose products of Zhongmei Huadong kept rising year on year, and
its transplantation immunity and cardiovascular products maintained rapid growth. In the second
half of the year, the Company will deepen its implementation of innovation and transformation, and
strive to achieve the business indicators of the pharmaceutical industry in 2021 to meet and exceed
the goals of last year. During the reporting period, Huadong Pharmaceutical Distribution Company
continued to show a gradual recovery in its overall business; the growth in the first quarter was
relatively rapid due to the low year-on-year base, and the growth in the second quarter stabilized.
During the reporting period, the operating income was RMB11.765 billion, up 9.34% year on year;
In the aesthetic medicine business, the Company continued to maintain recovery, with an
overall operating income of RMB565 million during the reporting period, up 46.25% year on year.
The overseas aesthetic medicine business maintained rapid growth despite the repeated outbreak of
the COVID-19 pandemic. During the reporting period, Sinclair (the UK) showed a clear recovery in
its overall business. As orders from the international market increased significantly, and the sales of
high-end hyaluronic acid filler MaiLi® series newly launched in the European market and Korean
Lanluma® (poly-L-lactic acid (PLLA) collagen stimulant) on commission were better than expected,
Sinclair achieved a year-on-year growth of 111.28% in its operation income (including the newly
acquired Spanish company High Tech), in which Sinclair’s own income rose by 74%. It is expected
to maintain the current operating trend in the second half of the year. In the second half of the year,
the Company will continue to accelerate the progress of clinical registration of other core aesthetic
medicine products at home and abroad. In addition, following the official launching of
polycaprolactone microsphere facial filler Ellansé® for injection, the Company’s core aesthetic
medicine product, in the Chinese mainland market in August, Glacial Spa™ (F0), a cold-touch
cosmetic instrument from R2 Company (the USA), is expected to officially enter the Chinese
mainland market in the third quarter, which is expected to drive new performance growth in the
Company’s aesthetic medicine business.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
The main reasons for the year-on-year decrease in the Company’s net profit during the reporting
period were as follows: (1) The income and gross profit of some products of Zhongmei Huadong
slightly decreased year on year due to the price reduction after the implementation of the national
centralized procurement and National Drug Reimbursement List (NDRL) price negotiations; (2) The
Company’s non-recurring gains and losses in the first quarter of 2020 were RMB290 million,
including a net income of GBP30.65 million from the transfer of regional product distribution rights
by Sinclair to Galderma, which greatly increased the Company’s overall income in the first quarter of
totaled RMB106 million, resulting in a further decrease in the net profit attributable to shareholders of
the listed company year on year.
(1) Pharmaceutical industry
During the reporting period, under the continuous influence of the normalization of centralized
drug procurement and the increasing fluctuation of demand caused by market competition, the
Company practiced the value-oriented lean manufacturing concept and adhered to technological
innovation and the agile production mode to cope with market competition and changes. In terms of
production, the Company explored its potential internally, and made multi-dimensional and
multi-level efforts to promote lean management from aspects of process optimization, technology
improvement, process innovation, flexible employment, supplier development, and bidding and
purchasing negotiations, effectively improving product quality and labor efficiency per capita and
reducing production costs. Externally, it continued to promote product transfer and outsourcing, and
expanded production capacity. With the capacity release in the new workshop of international R&D
and manufacturing center for preparations, the production capacity has been further guaranteed and
expanded, which also laid the foundation for the international development of preparation products.
In the first half of 2021, for the core purposes of changing the concept and realizing the
transformation from cost center to profit center, the Company launched the reform of production
system and CMC system. It mobilized various departments by formulating targeted incentive
programs. Taking the acceleration of the development of industrial microbiology-based strategic
planning as a breakthrough, the Company made progress in project commercialization, and made
great breakthroughs in the export of high-end bulk drugs CMO and CDMO. On this basis, it further
increased investment, in hope of quickly building industrial chain in the field of industrial
microbiology, occupying the high ground in the industry, and achieving industrialization. The
project of Huadong Medicine Biomedical Science and Technology Park has officially commenced,
and the construction is pushed forward as planned. In terms of EHS tasks, the Company
implemented the whole staff EHS responsibility system and the concept of process risk control
The Half Year Report 2021 of Huadong Medicine Co., Ltd
around R&D, production and industrial park construction, and improved its EHS management and
control capabilities through the building of both tiered risk management and control system and
hidden risk screening and management system.
During the reporting period, Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd.
continued to take effective countermeasures regarding national centralized drug procurement
projects, centralized procurement by inter-provincial alliances, provincial- and city-level centralized
procurement, GPO projects, etc. On the premise of actively anticipating policy, it fully analyzed its
own capabilities and advantages, and set up the concept of development based on strategy,
improving its all-round marketing capabilities. It continued to adhere to the marketing strategy of
“equal attention to out-of-hospital market and in-hospital market, and equal attention to the medical
insurance market and the self-paying market, equal attention to online and offline markets, and
vigorous expansion of the county-level and primary-level markets”, attached great importance to
patient education, kept reforming and adjusting the marketing structure, accelerated the formation
of the full-time sales force, increased the coverage of the primary-level and blank markets, and
expanded the out-of-hospital promotion teams. The Company accelerated the hospital development
and sales volume increase of the varieties that were newly approved for launching. It continued to
boost the development and coverage of Acarbose Tablets in the out-of-hospital market and Acarbose
Chewable Tablets in the in-hospital market, maintain the stock market, strive for the margin market,
and cover the blank market. Although the impact of price reduction of such products as Bailing
Capsule and Pantoprazole continued, bringing phased pressure to the Company’s revenue growth,
the situation has stabilized. It is expected that the impact of product price reduction on the Company
in the second half of the year will fade away, and the overall revenue of the pharmaceutical industry
is expected to stabilize and recover. The Company will deepen its implementation of innovation and
transformation, make great efforts to mitigate the impact of lower product prices, and strive to
achieve the business indicators of the pharmaceutical industry in 2021 to meet and even exceed the
goals set last year.
During the reporting period, the Company continuously improved its product pipelines, kept
up with the forefront of global R&D, spared no effort to deploy global innovative drugs with
foresight based on clinical value, differentiation and technology, rapidly supplemented the
innovative product pipelines, and consolidated the generic drug product pipeline in the chronic
disease field that has formed a competitive advantage in the market, rapidly establishing and
enriching product clusters and echelons. The Company made great progress in the quantity and
quality of its own R&D projects and introduced projects: (1) The Company invested RMB487.5
million to acquire 75% of Hangzhou Doer Biologics’ shares and became its controlling shareholder.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Doer Biologics, an R&D enterprise with multiple independent intellectual property rights and a
unique protein engineering technology platform, specializes in the development of innovative
biological drugs. It focuses on the development of multi-domain-based multi-specific innovative
fusion proteins, antibody drugs and peptide drugs to meet unmet clinical needs in the fields of
oncology, metabolism, ophthalmology, etc. It has an excellent R&D team of 50 professionals. (2) In
the field of autoimmunity, in February 2021, the Company introduced HDM3002 (PRV-3279), a
product under development by Provention Bio (USA), which is used to treat systemic lupus
erythematosus (SLE) and bispecific antibody that prevents or reduces the immunogenicity of gene
therapy. The phase II international multi-center clinical research for the product is being carried out.
At present, pre-IND materials have been submitted in China. (3) In the field of diabetes, in June
development in clinical phase I, which is a global innovative dual agonist of GLP-1R and GIPR
targets for the treatment of such diseases as type 2 diabetes, obesity and non-alcoholic
steatohepatitis (NASH). Through the investment layout in the above fields, the Company has
preliminarily formed its R&D ecosystem. While optimizing the innovation system, the Company
strengthened the introduction of advanced clinical medicine talents and the development of
organizational structure, accelerated the progress of clinical projects and implementation. All those
efforts made achievements.
(For details of the R&D pipelines and related work, refer to the R&D related content in this
chapter.)
During the reporting period, Pantoprazole Injection (trade name: Pan Li Su) from the
wholly-owned subsidiary of the Company, Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd.,
won the bid in the fourth batch of national drug centralized procurement, and Decitabine for
injection (trade name: Xiang Ke) won the bid in the fifth batch of national drug centralized
procurement, which will help consolidate and expand the market share, establish the Company’s
high-quality brand, enhance market reputation and influence, and has a positive impact on the
Company’s market expansion for follow-up products in the digestion and anti-tumor fields.
(2) Pharmaceutical commerce
During the reporting period, the Company’s pharmaceutical commerce accelerated the
innovation-driven corporate development, adhered to the concept of “good products always stand
for the first productivity”, consolidated the traditional pharmaceutical commerce, reshaped its core
competitiveness, surpassed its peers with innovation, and continued to build itself into a leading
service provider in the pharmaceutical industry in Zhejiang Province.
It properly carried out the introduction of new products and cooperation with suppliers, and
The Half Year Report 2021 of Huadong Medicine Co., Ltd
made great efforts to build a province-wide market expansion network, form a promotion team for
the in-hospital and private hospital markets, enrich product lines, and foster new profit models. In
terms of innovation drive, the Company sought breakthroughs from four directions: market
expansion, e-commerce business, cold chain logistics and characteristic mega health industry. It
changed the operational thinking, optimized the in-hospital market, and made arrangements for the
out-of-hospital market. At the same time, the Company properly carried out access services,
expanded the provincial market of high-value products such as narcotic and psychotropic drugs,
medical devices, ginseng, antler and other medicinal materials. All subsidiaries set up specialized
sales teams, giving play to the synergy between the headquarter and subsidiaries, and conducted
two-way assessments. The Company laid out the out-of-hospital market, focusing on the expansion
of OTC business, including pharmacies near hospitals, social pharmacies, Internet medical
cooperation, online order delivery, etc. It actively participated in the digital reform of medical and
health services in Zhejiang Province, provided support to open up the full channel of “Internet +
diagnosis and treatment”, and took the lead in completing the first medicine delivery services of
“Internet + Medical Service” for many provincial hospitals. It continued to undertake medicine
delivery services for chronic illness long-term prescriptions from dozens of community service
centers in Hangzhou; the Internet out-of-hospital delivery business in Shaoxing, Huzhou, Jiaxing,
Wenzhou, Ningbo, Jinhua, Lishui and other regions was also rapidly expanding.
It also accelerated the development of e-commerce business, upgraded its own platform, and
promoted B2C/B2B/O2O/H2C and other modes of business through third-party channels. Relying
on its independent B2B e-commerce platform and supported by modern pharmaceutical logistics
and distribution system, the Company provided distribution services of drugs, medical devices and
other products for the second and third terminals in Zhejiang Province and even the whole country.
It entered the 2021-2022 list of key cultivating e-commerce platforms in Zhejiang Province. During
the reporting period, Huadong Medicine Supply Chain Management (Hangzhou) Co., Ltd., a
wholly-owned subsidiary, was awarded the first express business license of a pharmaceutical cold
chain enterprise in Zhejiang Province issued by Zhejiang Provincial Postal Administration, setting a
benchmark for enterprises in the field; it also obtained the qualification of third-party vaccine
storage and transportation service from Zhejiang Provincial Center for Disease Control and
Prevention, becoming the exclusive service provider in the province to provide safe and specialized
storage and distribution guarantee for the vaccination in the whole province against COVID-19. In
addition, it has completed the planned tasks for the first half of the year in an efficient and timely
manner, boosting the universal vaccination to combat the COVID-19 pandemic.
In March 2021, the wholly-owned subsidiary of the Company located in Chengdu officially
The Half Year Report 2021 of Huadong Medicine Co., Ltd
obtained the Internet hospital license — Practice License for Medical Institutions, and officially
commenced the construction of the “Internet platform” of Huadong Medicine.
(3) Aesthetic medicine business
The aesthetic product portfolio of Huadong Medicine’s aesthetic medicine business covers the
mainstream non-surgical aesthetic medicine fields such as facial fillers, body shaping, catgut
embedding and energy source devices. The Company has formed a comprehensive product cluster
integrating full product portfolios of differentiated sodium hyaluronate, collagen stimulator,
botulinum toxin type A, catgut embedding and implanting, and energy source devices, achieving a
comprehensive layout of the “non-invasive + minimally invasive” aesthetic medicine industrial
chain. Huadong Medicine’s aesthetic medicine business focuses on the breakthrough and innovation
in the field of aesthetics, and is committed to providing comprehensive and scientific aesthetic
products. The sector is equipped with independent R&D departments, including four global R&D
centers, namely, wholly-owned subsidiaries Sinclair (UK) and High Tech (Spain), and
partially-owned companies R2 (USA) and Kylane (Switzerland), and five production bases in the
Netherlands, France, the United States, Switzerland and Bulgaria, with the core products launched
in more than 60 countries and regions.
During the reporting period, Sinclair (UK), a wholly-owned subsidiary of the Company,
acquired 100% equity in High Tech, a Spanish company engaged in energy source aesthetic
medicine devices. Since then, the latter officially became a major part of the Company’s landscape
of global aesthetic medicine business and is included in the consolidated statements of Sinclair and
the Company. Sinclair and High Tech have started to work together on market and business
collaboration and integration; the Company is formulating the launching plans for High Tech’s five
products on sale overseas and four innovative products under R&D, and plans to start the
registration of core products in China in 2021.
During the reporting period, Ellansé®, a polycaprolactone microsphere facial filler for injection,
the core product of Sinclair, obtained the Medical Device Registration Certificate issued by the
National Medical Products Administration (NMPA) in April 2021, and will be officially marketed in
Chinese mainland in August. The Company established a wholly-owned subsidiary, Sinclair
Aesthetics (Shanghai) Medical Technology Co., Ltd., to undertake the sales and promotion of
Ellansé®. At present, the latter has assigned a full-time brand manager and set up an independent
direct selling team for the product Ellansé®. Meanwhile, the preparations for brand and marketing
communication, the training and education of the first aesthetic medicine institutions and physicians
are being carried out as planned. After launching, 100 hospitals will be the first to use the product,
and it is expected to gradually expand to 300-500 domestic hospitals next year. The Company hopes
The Half Year Report 2021 of Huadong Medicine Co., Ltd
to lead the Chinese aesthetic medicine industry into the era of regeneration by virtue of the natural,
safe and lasting effect of Ellansé®. It will also make efforts in the domestic terminal market of
aesthetic medicine, and carry out both online and offline marketing to diversify the marketing
matrix, so that the sales volume can be rapidly expanded after being launched in China.
Moreover, the Company introduced a cold-touch cosmetic instrument from R2 Company,
Glacial® SpaTM (F0, life cosmetology version of a frozen freckle-removing medical device), has
obtained a marketing approval in Korea and Taiwan of China, and the Management Certification for
Non-medical Devices from NMPA. The product is mainly designed to solve skin tone problems,
including uneven skin tone, dark yellow and darkened skin, dull skin, sensitive and reddish skin,
severe local pigmentation, etc. The Company is sparing no effort to prepare for the launch of the
product in China, and it is expected to be officially marketed in China in the third quarter of 2021.
Cooperation intentions have been reached with some beauty institutions.
During the reporting period, the Company continued to accelerate the progress of clinical
registration of other core aesthetic medicine products at home and abroad, and made positive
progress. Silhouette® Instalift™, a catgut embedding product of Sinclair, was successfully filed with
China Human Genetic Resources Administration Office, Ministry of Science and Technology of the
People’s Republic of China, and officially entered into a registered clinical research, with the
subjects being enrolled smoothly. Sinclair’s Perfectha® series product containing lidocaine and High
Tech’s Cooltech Define obtained the CE Certification from EU, respectively. Glacial Rx (F1), a
frozen freckle-removing medical device developed by R2 (USA) was classified as a Class II
Medical Device by Zhejiang Medical Products Administration on July 5, and its registration in
China is promoted in an orderly manner. The product was approved for import by Hainan Province
and will soon be launched in the hospitals in the Hainan Boao Lecheng International Medical
Tourism Pilot Area. The product has successively obtained marketing licenses in Korea and
Singapore in the Asia-Pacific region, and applied for marking in Indonesia and Malaysia.
In addition to actively promoting the clinical registration of domestic aesthetic medicine
products, the Company is actively following up the latest policies issued by the National
Development and Reform Commission on supporting the development of high-end aesthetic
medicine industry in Hainan, and a number of aesthetic medicine products of its aesthetic medicine
subsidiaries that have been registered, certified and launched in the mainstream markets or regions
such as the United States and the EU conform to the standards of the policy. The Company is
preparing for the registration and launch of those products in Hainan, including Ellansé® type M,
cryolipolysis energy source product, a new high-end lidocaine-containing hyaluronic acid filler
MaiLi® series product, etc. It will accelerate the approval and launch of those products in China by
The Half Year Report 2021 of Huadong Medicine Co., Ltd
conducting real-world research.
Market
Main Products Intended Use Registration and Launch
Classification
YVOIRE hyaluronic
Facial filler Launched in China
acid
Used for subcutaneous Launched in the Chinese mainland in August 2021
Ellansé® implantation to correct moderate Obtained registration certification or marketing
to severe nasolabial folds access in more than 60 countries or regions
Designed for mid-face tissue
Certified by FDA, the USA
Catgut-embedding lifting surgery, temporarily fixing
Obtained registration certification or marketing
Silhouette®Instalift™ and lifting the dermis under the
access in more than 60 countries or regions
cheeks
MaiLi® series Facial filler CE certification of EU, launched in Europe
Minimally Obtained registration certification or marketing
Invasive access in more than 60 countries or regions
Perfectha® series Facial filler
Perfectha® series product containing lidocaine
obtained the CE certification from the EU
Kylane’s two key
Facial and body filler Under R&D
R&D products
Botulinum Toxin
Wrinkle removal In the process of registration and launch in China
(kreotoxin type A)
Lanluma®
(PLLA collagen Facial and body filler CE certification of EU, launched in Europe
stimulant）
To eliminate benign pigmented
lesions of the skin, and relieve
USA FDA 510(k)
F1 (Glacial RxTM) pain, swelling, inflammation and
In the process of registration and launch in China
hematoma through low
temperature
F2 Whole body whitening Under R&D
Approved for launch in the United States and Korea
Noninvasive Filed for launch in Taiwan, China
Glacial SpaTM (F0) Skin whitening and brightening
To be launched in the Chinese market in the third
quarter of 2021
Cooltech Body shaping and fat reduction CE certification from EU
CE certification from EU, and TGA certification from
Cooltech Define Body shaping and fat reduction
Australia
Crystile Body shaping and fat reduction Launched overseas
Primelase Hair removal Obtained registration certification or marketing
The Half Year Report 2021 of Huadong Medicine Co., Ltd
access in more than 11 countries or regions
Primelase Pro Hair removal In the process of global registration and launch
Obtained registration certification or marketing
Elysion Hair removal
access in more than 7 countries or regions
Define 2.0 Skin tightening and shaping Under R&D overseas
Define 3.0 Skin tightening and shaping Under R&D overseas
Titania Skin tightening and shaping Under R&D overseas
Fig. Launch and R&D of the Company’s Main Aesthetic Medicine Products
(4) Other matters
In January 2021, the Company entered into an agreement with Shanghai Yuanda Investment
Management Co., Ltd. and Hangzhou High-tech Venture Capital Management Co., Ltd. and jointly
set up Hangzhou Fuguang Hongxin Equity Investment Partnership (L.P.) (referred to as “Fuguang
Hongxin Pharmaceutical Industry Fund”). The Pharmaceutical Industry Fund was established with a
total scale of RMB200 million, of which RMB98 million is contributed by the Company with its
own funds and the Company is a limited partner of the Pharmaceutical Industry Fund. The
Pharmaceutical Industry Fund mainly invests in startup and early projects in the fields of aesthetic
medicine, endocrinology, anti-rejection regarding organ transplantation, alimentary canal, tumor,
nephrology, immunology, etc. As of the disclosure date of this report, the Pharmaceutical Industry
Fund had completed the initial fund raising, finished the industrial and commercial registration
procedures, and completed the filing with AMAC on April 2, 2021. After its establishment,
Fuguang Hongxin Pharmaceutical Industry Fund jointly invested in Nuoling Biomedical
Technology (Beijing) Co., Ltd., an innovative enterprise focusing on the R&D of a new generation
of polymer ADC drugs, with Zhongmei Huadong in April 2021, holding 5.97% and 4.48% of the
shares of Nuoling Biomedical, respectively.
Also in April 2021, Zhongmei Huadong, a wholly-owned subsidiary of the Company, reached
a cooperation agreement with Zhejiang Provincial Natural Science Foundation Committee (referred
to as “Foundation Committee”) and jointly set up the Joint Innovation and Development Fund of
Zhejiang Provincial Natural Science Foundation and Huadong Medicine. It became the first
enterprise in Zhejiang Province to cooperate with the Foundation Committee. Projects funded by
the Joint Innovation and Development Fund fall into three categories: major projects, key projects
and exploratory projects. The major projects focus on three core fields, namely, metabolic disease,
tumor and immunity, which are highly compatible with the key fields of the Company’s R&D
layout. The establishment of the Joint Innovation and Development Fund is conducive to attracting
and gathering superior scientific research forces inside and outside the province, carry out basic
The Half Year Report 2021 of Huadong Medicine Co., Ltd
research and applied basic research, create an open and cooperative development model, and speed
up innovation and research process of the Company.
During the reporting period, the Company had been listed on the Fortune China 500 selected
by FortuneChina.com for the 10th consecutive year and Top 100 Pharma Companies in China in
and was granted many honors and awards, including the “Best Board of Directors”, “Best Investor
Relations” and “Best Board Secretary” of the 12th China Listed Company Investor Relations
Tianma Award, China’s Top 10 Enterprises for Biomedical Business Development in 2020, etc.,
which fully shows the market recognition and affirmation of Huadong Medicine’s comprehensive
competitive strength, efficient operation, corporate governance level and ability to create value.
In the first half of 2021, despite many obstacles and challenges, the Company unswervingly
promoted the development goal of innovation and transformation, and maintained a stable and
positive development trend, fully demonstrating its strong development resilience. Looking forward
to the second half of 2021, the external situation facing the Company is still grim, the COVID-19
pandemic is still fraught with repetitiveness and uncertainty, and the competition and policy
challenges in the pharmaceutical industry are becoming more prominent, resulting in the continuous
great development pressure on the Company’s three major business sectors. The road of
development is full of hardships, so we must cheer up and strive to be strong. Since the heavy
responsibility lies on our shoulders, we must be bold in moving forward. In the second half of 2021,
the Company will continue to promote innovation and reform, formulate the development goals of
the seventh Three-Year Plan, make great efforts to build its R&D ecosystem, continue to intensify
efforts to carry out innovation and R&D, continuously enhance the international capability of the
pharmaceutical industry system, improve the efficiency of new drug R&D, and promote the global
strategic layout of the aesthetic medicine business. At the same time, all cadres and employees shall
work hard for the second half of 2021, show courage to face difficulties in R&D and production,
marketing, talent introduction, quality management and other aspects, uphold a pioneering spirit,
and make unremitting efforts toward the annual business goals, to achieve the Company’s annual
high-quality development.
II. Analysis of core competitiveness
capability
After years of development, the Company has established its independent R&D system, a global
The Half Year Report 2021 of Huadong Medicine Co., Ltd
new drug R&D center as well as a global R&D strategic collaboration ecosystem centered on
Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd., and cooperated with world-renowned
colleges at home and abroad, research institutes, innovative R&D companies, professional
technology platforms and so on in new drug R&D projects. The Company continuously has increased
R&D investment, made an overall planning for the global innovative products in the three core areas
of anti-tumor, internal secretion and autoimmunity, and carried out cooperation with the world’s
leading AI drug discovery company Exscientia and XtalPi in anti-tumor drug R&D. Through
independent R&D, external cooperation and product license-in, the Company has continuously
enriched the product pipelines in core areas, formed a good development trend of continuous clinical
promotion and marketing of innovative products, and provided new momentum for medium- and
long-term growth.
The Company actively promotes global expansion. Through the acquisition of the equity of UK
Sinclair and Spanish High Teach engaged in aesthetic medicine, the Company has realized the global
layout of aesthetic medicine sales network. Through strategic and equity collaboration with R2 (US),
Medibeacon (US), ImmunoGen (US), Provention Bio (US), Kylane (Switzerland), LG (South Korea),
Jetema (South Korea) and so on, the Company supplemented and enriched the commercial
development rights of innovative drugs and high-end aesthetic medicine products at home and abroad.
The Company also accelerated the international registration of products. Its online chemical raw
medicines have been certified by the Food and Drug Administration (FDA) or EU and other
authoritative authentication in markets; its Pantoprazole Sodium Lyophilized Powder for Injection
has been temporarily approved by the FDA; and its Acarbose Tablets gained market access to the
United States and the European Union Austria. The Company is the first Chinese medicine enterprise
to achieve these results. In addition, the Company actively develops international logistics and
purchasing suppliers to realize the internationalization of purchasing ability. It has promoted the
internationalization level of CMO/CDMO business and integrate it into the global innovative drug
R&D industry chain.
overall competitive advantage in the field of diabetes medication
Over the years, the Company has been deeply engaged in medication for specialized
departments, chronic diseases and special drugs, and has built a good brand effect and solid market
foundation in such fields as chronic kidney diseases, transplantation immunity, internal secretion,
and digestive system, and has maintained a leading market share of similar products in China. The
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Company has formed a comprehensive pipeline of innovative drugs and differentiated generic drugs
in the diabetes clinical mainstream therapeutic target. In the field of organ transplantation, it also
realized full coverage of clinical first-line immunosuppressive drugs. The Company has established
a global first-in-class distribution of new drugs in the three core areas of anti-tumor, internal
secretion and autoimmunity, forming a differentiated advantage. At present, 24 core marketed
products of the Company have been included in the 2020 Catalog of Medicines Covered by the
National Medical Insurance System.
China
The pharmaceutical industry of the Company has a professional pharmaceutical care team of
multi-channel marketing model that combines general hospitals, primary medical institutions, retail
and third terminals, and Internet online. It has gradually formed effective coverage through multiple
channels and has a good competitive advantage.
The business of the Company has been deeply rooted in the market of Zhejiang Province for
many years, with complete commercial formats and rich distribution varieties, and has
comprehensive competitive advantages in policy affairs, market access and network coverage. It has
fully covered the customers from public medical institutions, key private medical institutions and
retail pharmacies in Zhejiang Province, and maintained the leading order satisfaction rate. The
Company has established business cooperation with 90% of the mainstream pharmaceutical
The Half Year Report 2021 of Huadong Medicine Co., Ltd
enterprises at home and abroad. The Company has a complete cold chain logistics distribution
service system and professional capabilities, and its cold chain logistics distribution business is in
the lead in China. The Company has obtained the first express business license of pharmaceutical
cold chain enterprise in Zhejiang Province, and got the exclusive qualification of third-party storing
and transporting vaccine from Zhejiang Provincial Center for Disease Control and Prevention.
non-surgical fields
In 2018, through the successful acquisition of Sinclair in UK, the Company strategically
entered the aesthetic medicine industry, effectively completed the integration of products and
businesses in less than three years, and realized the full layout of the non-invasive and minimally
invasive aesthetic medicine industry chain. In the fields of facial fillers, body shaping, catgut
embedding, energy source devices and so on, we have a number of patented products with global
rights and also have an international aesthetic medicine operation and BD team. Focusing on the
global high-end aesthetic medicine market, further integrating R&D resources and capabilities, and
relying on the four global R&D centers of Sinclair in the UK, High Tech in Spain, R2 in the United
States and Kylane in Switzerland, and five global production bases in the Netherlands, France, the
United States, Switzerland and Bulgaria, the Company has formed its international aesthetic
medicine business integrating R&D, production, and marketing, and set up a global aesthetic
medicine marketing network, which has covered more than 60 countries and regions in the world.
The Company values management innovation, and strives to meet the demand of market
competition by improving its quality of operation. High quality products, excellent
commercialization ability, compliant and efficient marketing services, differentiated market
positioning, innovative R&D layout and completed talent planning all boost the long-term and
stable development of the Company. Since its listing, the Company has maintained steady growth in
performance for 21 years. Since 2007, the Company has kept the return on equity (ROE) above
its listing 21 years ago, the Company has paid dividends for 18 times, with a total value of
RMB4.577 billion, far exceeding the RMB250 million raised in its IPO. The Company has brought
continuous and stable returns of investment to shareholders.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
III. Analysis of main business
Please refer to the relevant content of "I. Main business of the company during the reporting period".
Year-on-year changes in major financial data
Unit: RMB yuan
Year-on-year percentage
Current reporting period Same period last year Cause of changes
increase/decrease
Operating revenue 17,179,437,902.61 16,660,934,157.64 3.11%
Operating cost 11,589,419,896.59 10,681,089,643.50 8.50%
Selling expenses 2,978,753,751.45 3,109,911,383.02 -4.22%
Administrative expenses 534,683,411.33 506,362,613.35 5.59%
Mainly due to the
increase of interest
Financial expenses 9,789,580.87 17,531,072.80 -44.16% income and the
year-on-year decrease of
financing cost
Income tax expenses 240,728,486.55 334,125,800.82 -27.95%
R&D investment 437,556,684.96 479,685,981.21 -8.78%
Mainly due to the
increase of capital return
Net cash flows from
operating activities
operating expenses in the
current period
Mainly due to the
increase of equity
Net cash flows from
-1,297,044,289.24 -374,008,436.39 252.78% investment and
investing activities
construction assets in the
current period
Mainly due to the
Net cash flows from
-366,906,114.30 -743,357,031.90 50.55% increase of loans in the
financing activities
current period
Mainly due to the
increase of the amount of
Net increase in cash and
cash equivalents
investing activities in the
current period
Mainly due to the
Accounts receivable increase of banker’s
financing acceptance discount in
the current period
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Mainly due to the
Other receivables 114,697,517.74 87,269,489.82 31.43% increase of suspense
accounts receivable
Mainly due to the
Other current assets 44,928,681.66 85,654,691.58 -47.55% decrease of pending input
tax in the current period
Mainly due to the
acquisition of Doer
Goodwill 2,100,106,651.09 1,469,617,262.10 42.90%
Biologics and High Tech
in the current period
Mainly due to the
Notes payable 979,859,751.59 554,336,058.71 76.76% increase of bill payments
in the current period
Mainly due to the
decrease of advance drug
Contract liabilities 53,923,017.30 94,384,629.77 -42.87%
payments in the current
period
Mainly due to the
Non-current liabilities decrease of long-term
due within one year payables due within one
year
Mainly due to the
Long-term borrowing 477,876,860.08 151,611,367.86 215.20% increase of subsidiaries’
long-term borrowing
Mainly due to the
increase in contingent
and deferred
Long-term payables 157,449,847.67 26,812,354.90 487.23% consideration resulting
from the acquisition of
external companies by
the subsidiaries
Significant changes in the company's profit composition or source of profit during the reporting period
□ Applicable √ N/A
There was no major change in the company's profit composition or source of profit during the reporting period.
Composition of operating revenue
Unit: RMB yuan
The current reporting period Same period last year Year-on-year
Proportion in Proportion in percentage
Amount Amount
operating revenue operating revenue increase/decrease
Total operating 17,179,437,902.61 100% 16,660,934,157.64 100% 3.11%
The Half Year Report 2021 of Huadong Medicine Co., Ltd
revenue
By sector
Business 11,765,327,916.99 68.48% 10,760,596,159.30 64.59% 9.34%
Manufacturing 5,599,557,312.42 32.59% 6,238,364,356.65 37.44% -10.24%
aesthetic medicine
[Note]
International
aesthetic medicine
Offset (inter-sectoral
-461,528,533.38 -468,699,695.21
offset)
By product
By region
Domestic sales 16,879,853,037.00 98.26% 16,505,022,711.72 99.06% 2.27%
Overseas sales 299,584,865.61 1.74% 155,911,445.92 0.94% 92.15%
[Note] The aesthetic medicine business of the Company includes both the domestic and the international aesthetic medicine business.
There is a little overlap between the income statistics of the domestic aesthetic medicine business and that of the pharmaceutical
commerce and the pharmaceutical manufacturing industry. In order to truly reflect the Company’s business reality, the data is counted
separately.
Sectors, products or regions that account for more than 10% of the Company’s operating revenue or operating profit
√ Applicable □ N/A
Unit: RMB yuan
Year-on-year Year-on-year
Year-on-year
percentage percentage
Gross profit percentage
Operating revenue Operating cost increase/decrease increase/decrease
rate increase/decrease
in operating in gross profit
in operating cost
revenue rate
By sector
Business 11,765,327,916.99 10,897,355,721.16 7.38% 9.34% 9.57% -0.20%
Manufacturing 5,599,557,312.42 1,069,513,577.27 80.90% -10.24% -2.69% -1.48%
International
aesthetic 276,081,206.58 88,544,271.23 67.93% 111.28% 82.21% 5.12%
medicine
Offset
(inter-sectoral -461,528,533.38 -465,993,673.07
offset)
By region
Domestic sales 16,879,853,037.00 11,485,297,284.73 31.96% 2.27% 8.76% -4.06%
Overseas sales 299,584,865.61 104,122,611.86 65.24% 92.15% 66.59% 5.33%
The Half Year Report 2021 of Huadong Medicine Co., Ltd
If the statistical specifications of the Company’s main business data have been adjusted during the reporting period, the Company’s
main business data of the most recent period should be adjusted according to the specifications at the end of the reporting period.
□ Applicable √ N/A
Explanation of the reason why the relevant data has changed by more than 30% year-on-year.
□ Applicable √ N/A
IV. Analysis of non-main business
√ Applicable □ N/A
Unit: RMB yuan
Proportion in total
Amount Note on reasons Sustainable or not
profit
Mainly due to the increase of
bill discount interest and
Investment income -54,458,950.28 -3.44% losses of partially-owned No
enterprises in the current
period
Mainly due to the
government subsidies
Other income 137,364,653.52 8.68% No
recognized in the current
period
V. Analysis of assets and liabilities
Unit: RMB yuan
End of the current reporting
End of last year
period
Change of
Proportion Proportion Note on major changes
proportion
Amount in total Amount in total
assets assets
Monetary funds 3,269,314,047.58 12.52% 3,198,080,997.82 13.21% -0.69%
Accounts
receivable
Contract assets 0.00% 0.00% 0.00%
Inventories 4,130,364,327.93 15.82% 4,067,635,254.80 16.81% -0.99%
Real estate
properties for 17,191,977.46 0.07% 17,792,735.95 0.07% 0.00%
investment
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Long-term equity
investments
Fixed assets 2,668,749,549.01 10.22% 2,420,366,582.92 10.00% 0.22%
Mainly due to the transfer of part of
Constructions in
progress
assets
Right-of-use
assets
Short-term
borrowing
Contract
liabilities
Long-term Mainly due to the increase of
borrowing Sinclair’s long-term borrowing
Lease liability 82,245,770.91 0.32% 0.32%
√ Applicable □ N/A
Proportion of Whether
Assets size Control
Specific overseas there are any
Reason for (Ten Operating measures to
content of Location Profit or loss assets in the significant
formation thousand mode ensure assets
assets Company’s impairment
yuan) safety
net assets risks
Control of
the Board of
Directors and
examination
& approval
of major
decisions;
Sinclair
Acquisition Independent daily Loss during
Pharma 15925.85 UK 9.83% No
of equity accounting supervision the period
Limited
of financial
matters;
entrusting
external
intermediarie
s to conduct
audits
Note: In April 2019, the Company entered into strategic cooperation with R2 Dermatology, a US company specializing in medical
The Half Year Report 2021 of Huadong Medicine Co., Ltd
devices and technology development related to dark spot removal and skin whitening using freezing technology in the field of
aesthetic medicine, and invested 30 million US dollars for equity investment in R2 and became its shareholder. As of the date of this
disclosure, the company's wholly-owned subsidiary Hangzhou Huasheng Investment Management Co., Ltd. has completed all
payment for equity investment, with a shareholding ratio of 27.75%. In July 2019, the Company entered into strategic cooperation
with MediBeacon, a US company dedicated to the development of contrast agents and equipment in such medical fields as renal
function and gastrointestinal function assessment, and invested 30 million US dollars for equity investment. As of the date of this
report, the company's wholly-owned subsidiary Hangzhou Huasheng Investment Management Co., Ltd. has contributed 15 million
US dollars, or 4.3% of its shares.
√ Applicable □ N/A
Unit: RMB yuan
Amou
Impairmen
Cumulative nt
Change in fair t accrued
changes in fair purcha Amount sold Closing
Item Opening balance value for the during the Other Changes
value included sed in in this period balance
current period current
in equity this
period
period
Financial
Assets
Including:
Investment in
other equity
instruments
Total of the
above
Financial
Liabilities
Other changes
During the reporting period, whether the company’s main asset measurement attributes have changed significantly
□ Yes √ No
Item Book value at the end of the period Reason for limitation
Cash and bank balance 37,768,911.41 Cash deposit
Fixed assets 23,619,173.02 Mortgage guarantee for borrowing
Total 61,388,084.43
The Half Year Report 2021 of Huadong Medicine Co., Ltd
VI. Investment
√ Applicable □ N/A
Investment amount in the reporting period Investment amount in the same period of
Percentage change
(yuan) last year (yuan)
√ Applicable □ N/A
Unit: RMB yuan
Profit or
Progre
loss of
Term ss as of Involve Disclos
Name Main Way of Invest Shareh Project investm Disclosu
Capital Partner of Product the d in ure
of busines invest ment olding ed ent in re date
source (s) invest type balanc litigatio index
investee s ment amount ratio income the (if any)
ment e sheet n or not (if any)
current
date
period
Fuguan The
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Chengd aceutic
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Equity Industr
Invest y Fund
Hangzh
ment had
ou
Manag comple
Fuguan
Equity ement ted the
g
investm Co., initial
Hongxi http://w
ent; Newly Ltd., fund
n 98,000, Own Long-t -996,32 January ww.cnin
venture establis 49.00% Hangzh Equity raising, 0.00 No
Equity 000.00 funds erm 9.16 08, 2021 fo.com.
capital hed ou finishe
Investm cn
investm High-T d the
ent
ent ech industr
Partners
Venture ial and
hip
Capital comme
(L.P.)
Manag rcial
ement registr
Co., ation
Ltd., proced
Hangzh ures,
ou and
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Heda comple
Industri ted the
al Fund filing
Invest with
ment AMA
Co., C on
Ltd., April
and 2,
Shangh 2021.
ai
Yuanda
Invest
ment
Manag
ement
Co.,
Ltd.
Zhejian
Compl
g Doer http://w
pharma 487,50 eted
Biologi Acquisi Own Long-t -3,566,1 April ww.cnin
ceutical 0,000.0 75.00% / Equity equity 0.00 No
cs tion funds erm 78.14 28, 2021 fo.com.
R&D 0 invest
Corpora cn
ment
tion
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S.L.U. type) ted
medical
aestheti
c
devices
Total -- -- 03,000. -- -- -- -- -- -- 0.00 -- -- --
Note: Conversion is based on the central parity of the Euro to RMB exchange rate on June 30, 2021, which is 7.6862.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
√Applicable □N/A
Unit: RMB yuan
Cumulat
Reasons
ive Cumula
for not
Investme actual tive
Industry meeting
Investme nt investme income
involved the Disclos
Way of nt in amount nt Project Projecte realized Disclos
in the Capital planned ure
Project name investme fixed during amount progres d by the ure date
investme source schedul index
nt assets or the by the s income end of (if any)
nt e and (if any)
not reporting end of the
project projecte
period the reportin
d
reporting g period
income
period
Huadong
Medicine
Pharmac http://w
Biomedical
Self-built eutical 25,972,9 1,742,30 Own March ww.cni
Science and Yes 95.00% / / N/A
project manufac 20.50 4,827.30 funds 9, 2017 nfo.com
Technology
turing .cn
Park Project
Phase II
Huadong http://w
Pharmac April
Medicine Life Self-built 17,735,2 18,871,4 Own ww.cni
Yes eutical 24.00% / / N/A 21,
Science project 78.06 41.26 funds nfo.com
R&D 2021
Industrial Park .cn
Total -- -- -- -- -- -- -- -- -- --
(1) Securities Investment
√ Applicable □ N/A
Gain/los Accumu
Book
s from lative Purchas
Account value at Selling Gain/los Book
fair fair e
Stock Initial ing the amount s during value at
Type of Stock value value amount Account Capital
abbrevia investm measure beginni in the the the end
stock code changes changes in the ing item source
tion ent cost ment ng of current reportin of the
in the included current
model the period g period period
current in period
period
period equity
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Other
Domesti Fair equity
c and 20,207, value 23,582, 15,091, 7,534,1 4,788,6 33,885, instrum Own
RAPT RAPT 0.00 0.00
overseas 400.00 measure 877.56 655.18 47.03 36.47 896.27 ent funds
stock ment investm
ent
Total -- 0.00 0.00 -- --
Date of announcement of
the Board of Directors on
N/A
securities investment
approval
Date of announcement of
the Board of Shareholders
N/A
on securities investment
approval (if any)
Note: In 2018, Huadong Medicine Investment Holding (Hong Kong) Co., Ltd., a subsidiary of the Company, invested USD 3 million
to purchase 218,102 preferred shares of RAPT Therapeutics, Inc. in C-2 series. RAPT Therapeutics, Inc. (stock code: RAPT) was
listed on the NASDAQ Stock Exchange on October 30, 2019. Up to now, Huadong Medicine Investment Holding (Hong Kong) Co.,
Ltd. holds 165,002 RAPT shares after reducing some of its shares, accounting for 0.575% of the total shares of RAPT Therapeutics,
Inc.
(2) Derivatives investment
□ Applicable √ N/A
No such case during the reporting period.
VII. Major assets and equity sales
□ Applicable √ N/A
No such case during the reporting period.
□ Applicable √ N/A
VIII. Analysis of wholly-partially owned and shareholding companies
√ Applicable □ N/A
Main subsidiaries and the shareholding companies that have an impact on the Company’s net profit of more than 10%
Unit: RMB yuan
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Company Company Registered Operating Operating
Main business Total assets Net assets Net profit
name type capital revenue profit
Production and
management
Hangzhou of Traditional
Zhongmei Chinese and
Huadong Subsidiary Western raw 872,308,130
Pharmaceutic medicines and
al Co., Ltd. preparations,
and health care
products
Huadong Sales of
Ningbo biological 1,002,680,43 614,591,609. 569,093,932. 68,384,569
Subsidiary 5,000,000 50,333,683.31
Medicine products as 3.29 26 01 .49
Co., Ltd. proxy
Wholesale of
TCM
materials,
Huadong
TCM
Medicine 1,297,079,12 255,691,676. 1,294,102,66 34,340,365
Subsidiary decoction 61,300,000 24,584,261.31
Wenzhou 0.10 70 2.82 .65
pieces,
Co., Ltd.
chemical
preparations,
etc.
Huadong
Medicine
Warehousing
Supply Chain 283,569,835. 135,556,348. 84,045,782.2 10,619,118
Subsidiary and storage 50,729,863 6,166,445.05
Management 84 55 1 .24
services
(Hangzhou)
Co., Ltd.
R&D,
production and
Sinclair
Sub-subsidiar sales of 219,962,963. 1,592,584,83 474,560,100. 276,081,206. -47,618,96
Pharma -52,918,540.05
y aesthetic 92 4.52 47 58 1.79
Limited
medicine
products
Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ N/A
Methods of acquisition and disposal of Impact on the overall production, operation
Name of company
subsidiaries during the reporting period and performance
Zhejiang Doer Biologics Corporation Acquisition Polyclonal antibody technology platform
The Half Year Report 2021 of Huadong Medicine Co., Ltd
International business expansion for the
High Technology Products, S.L.U. Acquisition Company’s energy source aesthetic
medicine products
IX. Structured entities controlled by the Company
□ Applicable √ N/A
X. Research and development (R&D)
(1) Overall situation of R&D
With “scientific research-based, patient-centered” as the corporate philosophy, the Company
continued to increase investment in R&D, and continuously enriched its arrangements in the R&D
of innovative drug pipelines. During the reporting period, the Company invested RMB536 million
in the R&D of the pharmaceutical industry, an increase of 6.38% year on year. The R&D of the
Company mainly involved the following aspects:
cooperative development + product license-in, tracked the latest international drug action
mechanism and target as well as advances in clinical application research, and accelerated the
development of innovative drugs and the cooperation on and introduction of innovative drug
projects at home and abroad.
Completed the pipeline layout of innovative products in the fields like endocrine/metabolism,
tumor, and autoimmune and obtained the approval regarding a number of innovative drug projects
with independent intellectual property rights; covered three major drug molecular entities from all
aspects: NCE small molecules, biological macromolecules and peptides;
accelerated the R&D of generic drugs with high technical barrier and improved new drugs (505b
(2)), and initiated key projects centering on autoimmunity, endocrine and anti-tumor fields during
the reporting period;
the cost, actively developed dosage forms of on-line products, and strengthened the market
competitiveness; and
ensured the R&D progress of key varieties under research to the greatest extent through the priority
ranking of ongoing projects and the rational allocation of R&D resources.
(2) R&D of projects regarding major innovative drugs and biosimilars
The Half Year Report 2021 of Huadong Medicine Co., Ltd
The Company has drawn up a strategic plan for the development of innovative drugs for the
next five years, clearly defined the key direction and number of innovation projects for each year
during the planning period centering on the existing therapeutic fields, and proposed that no less
than 15 innovative varieties (including original new drugs, improved new drugs, innovative medical
devices and high-end aesthetic medicine products) should be established and reserved annually
during the planning period. During the reporting period, the Company actively boosted the clinical
research on innovative drugs under research and key biosimilars. In addition, the Company actively
explored and learned from the international advanced innovative drug R&D system building,
continuously optimized and adjusted its overall R&D system structure, and improved the functional
modules on the R&D of innovative projects through the introduction of high-end R&D personnel,
to achieve the objectives on the strategic planning of the Company’s innovative projects.
(3) Progress on the clinical research of key innovative drugs, innovative medical devices
and biosimilars
From 2020, the Company began to streamline the R&D pipeline of the innovative drug sector,
adjust the organizational structure of innovative drug R&D, and introduce high-level external R&D
personnel. The Company introduced first-in-class or best-in-class drugs at home and abroad in the
three core areas of anti-tumor, endocrine and autoimmunity. At present, the Company has
innovative drugs and key biosimilars in those three areas.
Diabetes
currently undergoing multi-regional phase II clinical trials in the Chinese mainland and Taiwan
region. It is expected that the phase II clinical work will be completed by the end of 2021 and the
phase III trial will start in 2022;
and its partially-owned company, Peg-Bio Biopharm Co., Ltd. (Chongqing), which is undergoing
experiments on animals. It is planned that the investigational new drug (IND) domestic clinical trial
application will be launched in 2021;
indications for diabetes and weight loss in China. The phase III clinical trial on the indications for
diabetes has basically been completed, and it is expected that the application for registration will be
submitted in the third quarter of 2021. The registration regarding the indications for weight loss will
be submitted before the end of 2021; and
The Half Year Report 2021 of Huadong Medicine Co., Ltd
actively planned the global distribution of innovative drugs. It introduced the product SCO-094 of
SCOHIA PHARMA, Inc. (Japan) under the development in phase I clinical trial, which is a dual
agonist of GLP-1R and GIPR targets used for the treatment of such diseases as type 2 diabetes,
obesity and non-alcoholic steatohepatitis.
Tumor
ovarian cancer. The clinical trials of HDM2002 (including MRCT phase III clinical and PK
bridging trials) have received approval in China, and various pre-clinical preparations are currently
being promoted as planned. The trials are expected to begin in the second half of 2021. Another
application for the single-arm clinical trial of the drug in China was approved in July 2021 and is
expected to begin in early 2022; and
phase III clinical trial and the enrollment of the subjects for the phase III clinical trial has been
completed. It is expected that the phase III clinical trial will end and that the application for
registration will be submitted before the end of 2021.
Autoimmunity
introduced it for the treatment of systemic lupus erythematosus (SLE) and for preventing or
reducing the immunogenicity of gene therapy. The phase II international multi-center clinical
research of this product is underway. At present, pre-IND materials have been submitted in China;
and
developed by the Company and its partially-owned company Qyuns Therapeutics, used to treat
moderate-to-severe psoriasis of adults. The phase III clinical trial of the drug is underway.
Other innovative drugs and major biosimilars
through real-time monitoring of glomerular filtration rate. With its accurate diagnosis and risk
assessment of early renal injury, the product is of ground-breaking clinical significance. The
application for carrying out the international multi-center phase III clinical trial of MB102 injection
(fluorescent tracer), class 1 new drug used in the monitoring system, has been approved by NMPA.
The drug will officially enter the clinical stage in the second half of 2021;
April 2021. Insulin degludec injection and insulin aspart injection are under preclinical study; and
The Half Year Report 2021 of Huadong Medicine Co., Ltd
characterization regarding oral GLP-1 innovative drugs for the treatment of type 2 diabetes,
anti-tumor projects including CDK targeted drugs and innovative drugs such as PROTAC and ADC
are underway as planned.
(4) Progress of R&D of major generic drugs
During the reporting period, the Company conducted earnest dynamic evaluation and combing
of the existing generic drug varieties under research, and further clarified the varieties to be focused
and prioritized. The progress regarding the key varieties is as follows:
was approved in June 2021. Sitagliptin Phosphate/Metformin Hydrochloride Tablets (50/850mg)
and Canagliflozin Tablets (specifications: 0.1g, 0.3g) have been declared for production.
Pioglitazone Hydrochloride and Metformin Hydrochloride Tablets (15/850mg) is under pilot scale
production;
pilot scale production. The supplement materials of the ANDA for Tacrolimus have been submitted,
and FDA priority review has been accepted;
capsule is under laboratory research. Olaparib tablet is under the pilot scale production. The on-site
inspection regarding sorafenib tosylate tablets (0.2g) is pending;
June 2021.The project of BHFXG-06 was initiated. The information for ANDA application for
Caspofungin Acetate for Injection (50mg/vial) is in preparation. The ANDA regarding Caspofungin
Acetate for Injection (70mg/vial) is under process validation. The amendment of preparation and
API regarding the ANDA for Daptomycin for Injection (500mg/vial) have been completed;
was approved in June 2021; and
for Injection are in preparation; Macitentan Tablet (10mg) has been filed for production, and the
on-site inspection is in the preparatory stage.
(5) Progress of patent
The Company has attached great importance to the protection of its intellectual property rights
and application of results in recent years, and the number of patent applications and grants is
steadily increasing. The Company has applied for more than 600 patents at home and abroad over
the years, of which more than 280 were granted. Hangzhou Zhongmei Huadong Pharmaceutical Co.,
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Ltd., a wholly-owned subsidiary of the Company, is a national IP demonstration enterprise. In
November 2014, the Company passed the external audit of Zhongzhi (Beijing) Certification Co.,
Ltd., becoming one of the 147 enterprises who have firstly passed the standard implementation
certification. In 2020, the Company successfully passed the examination review on supervising the
standard implementation of corporates’ intellectual property.
During the reporting period, the Company’s patent application and maintenance proceeded
smoothly. Zhongmei Huadong, a wholly-owned subsidiary of the Company, applied and submitted
more than 40 patents, among which more than 30 were utility patents, and 9 were authorized in
China. In May 2021, the utility patent “Enzyme for synthesizing and metabolizing inosine
monophosphate of Cordyceps sinensis (Berk.) Sacc. Hirsutella sinensis and application thereof” of
Zhongmei Huadong was awarded China Patent Excellence Award, with the patent number:
ZL201110267161.3.
(6) Building of a R&D ecosystem
The Company has invested, held shares in and incubated a number of domestic biotechnology
companies with leading technology. For example, it invested in Peg-Bio Biopharm featuring a
peptide technology platform, Qyuns Therapeutics, an antibody company focusing on immune
diseases, and Nuoling Biomedical Technology featuring ADC linker and coupling technology; it
incubated Huida Biotech which has a full line of toxin ingredients used to develop ADC drugs; and
it holds stakes in Doer Biologics which focuses on the development of a Polyclonal antibody
platform. Through a series of investments and acquisitions, the Company has gradually formed its
own medical R&D ecosystem. Relying on Huida Biotech’s antibody-conjugated drug toxin library
construction technology, Qyuns Therapeutics’ monoclonal antibody R&D and productive capacity,
and Nuoling Biomedical Technology’s polymer linker coupling technology, the Company has the
ability to carry out the R&D of all ADC components. Regarding R&D arrangements, the Company
follows the principle of “division of labor and cooperation, collaboration and win-win”. That is,
through cooperation, all enterprises can interact on their technologies and help each other achieve
development and innovation, further allowing the rapid improvement of the Company’s overall
R&D capability.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
XI. Risks and Countermeasures
At present, China has continuously deepened reform in the field of medicine and health, and
various policies have been introduced intensively. Policies such as national centralized purchasing,
generic drug consistency evaluation, two-vote system, new drug approval, control of the proportion
of hospital drugs, secondary price negotiation in hospitals, and close medical association will have a
significant impact on the R&D, production, and circulation of drugs. At the same time, with the
implementation of medical insurance fee control, the reform of payment methods, and the further
implementation of the generic drug centralized purchasing policy, some drugs will face the risk of
further price reduction.
Countermeasures: The Company will pay close attention to, analyze and grasp major national
medicine policies and industry development trends, strengthen the layout of innovative varieties and
R&D investment through endogenous development and outward extension, reduce production and
operation risks through lean production, fully implement the international development strategy and
improve the technological quality advantages of products with international standards. It will
The Half Year Report 2021 of Huadong Medicine Co., Ltd
continue to tap the advantageous products and subdivisions of aesthetic medicine to create new
profit points. It will vigorously expand grassroots communities and OTC markets, and increase the
coverage of primary and retail terminal markets to maintain stable growth in operations.
New drug R&D involves a long cycle, large investment and many uncertainties. In the R&D
process, there are also risks such as shortage of high-level talents, failure to obtain registration and
approval for new drug R&D due to curative effect or safety reasons. After new drugs hit the market,
there are also risks such as market demand test, purchasing by bidding, medical insurance payment
access, and market competition for similar products. In addition, the investment in R&D will also
bring certain pressure to the realization of the Company’s current operating objectives.
Countermeasures: The Company will continue to increase investment in new drug R&D,
optimize the innovation mechanism, improve the scientific new drug research evaluation and
decision-making system, and establish close ties with well-known R&D institutions at home and
abroad, focus on the core treatment fields, continue to enrich and optimize the product pipelines
through independent project establishment and external introduction, vigorously develop innovative
drugs and generic drugs with high technical barriers, and gradually eliminate the backward varieties
that are not competitive in the market, increase the introduction of high-level research personnel,
build a research team that covers the entire development cycle of new drugs, and strengthen the
training and encouragement of core technical personnel, and accelerate the construction of
high-standard medicine R&D centers and pilot test bases.
With the intensified competition in the medicine market and the further promotion of the
national centralized purchasing policy, domestic medicine enterprises will face the pressure of
policy-based price reduction for a long time. There will be more competitive manufacturers of
similar products, leading to the risk of failure in bidding.
Countermeasures: Focusing on scientific R&D and technological innovation, the Company
will improve the technological quality advantages of its products with international standards,
strengthen internal management and technological upgrading, strengthen cost competitive
advantages, carry out marketing assessment and incentives and channel sinking, continue to expand
the professional promotion team of county-level markets, vigorously expand primary communities
The Half Year Report 2021 of Huadong Medicine Co., Ltd
and OTC markets, and increase the coverage of primary and retail terminal markets to maintain stable
market growth.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Section IV. Corporate Governance
I. Annual General Meeting and Extraordinary General Meetings convened during the
reporting period
Proportion of
Meeting Nature participating Convened Date Disclosure Date Disclosure Index
investors
No. 2021-045;
Meeting of Meeting of 59.20% May 21, 2021 May 21, 2021
www.cninfo.com.cn
Shareholders Shareholders
rights
□ Applicable √ N/A
II. Change of directors, supervisors and senior managers
□ Applicable √ N/A
There are no changes of directors, supervisors and senior management personnel during the reporting period (referring to 2020
annual report).
III. Profit distribution and capitalization of capital reserves plan or proposal for the current
reporting period
□ Applicable √ N/A
The Company did not plan to distribute cash dividends, send bonus shares, or convert capital reserve into share capital during the
first half of the year.
IV. The implementation of Equity Incentive Plan, Employee Stock Incentive Plan, or other
incentive plans
□ Applicable √ N/A
No such case during the reporting period.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Section V. Environmental and Social Responsibility
I. Significant environmental problems
Whether the Company and its subsidiaries are the key pollutant discharging units announced by the environmental protection
authorities
√ Yes □No
Name of the Name of Number of Distribution Concentrati Discharge Approved
Discharge Total Excessive
company or major discharge of discharge on of standard of total
type discharge discharge
subsidiary pollutants outlets outlets discharge pollutants discharge
Hangzhou
Front gate,
Zhongmei Water
Intermittent 866
Huadong pollutant: 1 7.56 6-9 / / None
discharge Moganshan
Pharmaceuti PH value
Road
cal Co., Ltd.
Hangzhou
Front gate,
Zhongmei Water
Intermittent 866 475.5
Huadong pollutant:: 1 79.6mg/l 500mg/l 25.3 tons None
discharge Moganshan tons/year
Pharmaceuti COD
Road
cal Co., Ltd.
Hangzhou
Water Front gate,
Zhongmei
pollutant: Intermittent 866
Huadong 1 0.998mg/l 35mg/l 0.317 tons / None
ammonia discharge Moganshan
Pharmaceuti
nitrogen Road
cal Co., Ltd.
Hangzhou Legal In the
Solid
Zhongmei disposal by factory at
pollutant: 1885.19
Huadong entrusted 2 866 / / / None
hazardous tons
Pharmaceuti qualified Moganshan
solid waste
cal Co., Ltd. units Road
Hangzhou Legal In the
Solid
Zhongmei disposal by factory at
pollutant:
Huadong entrusted 2 866 / / 1306.6 tons / None
general
Pharmaceuti qualified Moganshan
solid waste
cal Co., Ltd. units Road
Hangzhou
Air Roof of the
Zhongmei
pollutant: Organized boiler room 17.7
Huadong 1 26.5mg/ m? 60mg/ m? 1.27 tons None
nitrogen emission in Building tons/year
Pharmaceuti
oxide No. 25
cal Co., Ltd.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Hangzhou
Air Roof of the
Zhongmei
pollutant: Organized boiler room
Huadong 1 3 mg/ m? 50mg/ m? 0.144 tons / None
sulfur emission in Building
Pharmaceuti
dioxide No. 25
cal Co., Ltd.
Hangzhou
Air Roof of the
Zhongmei
pollutant: Organized boiler room
Huadong 1 4.6mg/ m? 20mg/ m? 0.221 tons / None
dust and emission in Building
Pharmaceuti
fume No. 25
cal Co., Ltd.
Huadong Along
Medicine National
Water
(Xi’an) Intermittent Highway
pollutant: 1 8.2 6-9 / / None
Bohua discharge 310, Liuye
PH value
Pharmaceuti River,
cal Co., Ltd. Huayin City
Huadong Along
Medicine National
Water
(Xi’an) Intermittent Highway
pollutant: 1 11.22mg/l 50mg/l 0.1 tons 3 tons None
Bohua discharge 310, Liuye
COD
Pharmaceuti River,
cal Co., Ltd. Huayin City
Huadong Along
Medicine Water National
(Xi’an) pollutant: Intermittent Highway
Bohua ammonia discharge 310, Liuye
Pharmaceuti nitrogen River,
cal Co., Ltd. Huayin City
Huadong Along
Medicine Water National
(Xi’an) pollutant: Intermittent Highway
Bohua total discharge 310, Liuye
Pharmaceuti nitrogen River,
cal Co., Ltd. Huayin City
Huadong
Compliant
Medicine Solid
disposal by
(Xi’an) pollutant: In the
entrusted 3 / / 172.06 tons / None
Bohua hazardous company
qualified
Pharmaceuti waste
units
cal Co., Ltd.
Huadong Air Organized Raw
Medicine pollutant: emission medicine
The Half Year Report 2021 of Huadong Medicine Co., Ltd
(Xi’an) volatile No.1
Bohua organic workshop
Pharmaceuti compound
cal Co., Ltd.
Huadong
Medicine Air Raw
(Xi’an) pollutant: Organized medicine
Bohua hydrogen emission No.1
Pharmaceuti chloride workshop
cal Co., Ltd.
Huadong
Medicine Air Raw
(Xi’an) pollutant: Organized medicine
Bohua hydrogen emission No.2
Pharmaceuti chloride workshop
cal Co., Ltd.
Huadong
Medicine Air Raw
(Xi’an) pollutant: Organized medicine
Bohua particulate emission No.2
Pharmaceuti matter workshop
cal Co., Ltd.
Huadong
Medicine Air Raw
(Xi’an) pollutant: Organized medicine
Bohua sulfuric acid emission No.2
Pharmaceuti mist workshop
cal Co., Ltd.
Jiangsu
Water
Joyang Intermittent 9 Haidubei
pollutant: 1 7.95 6-9 / / None
Laboratorie discharge Road
PH value
s Co., Ltd.
Jiangsu
Water
Joyang Intermittent 9 Haidubei 51.4173
pollutant: 1 250mg/l 500mg/l 5.83 tons None
Laboratorie discharge Road tons/year
COD
s Co., Ltd.
Jiangsu Water
Joyang pollutant: Intermittent 9 Haidubei 3.6819
Laboratorie ammonia discharge Road tons/year
s Co., Ltd. nitrogen
Jiangsu Water Intermittent 9 Haidubei 24.968
Joyang pollutant: discharge Road tons/year
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Laboratorie SS
s Co., Ltd.
Legal
Jiangsu Solid In the
disposal by
Joyang pollutant: factory at 9 728.111 3148.7
entrusted / / / None
Laboratorie hazardous Haidubei tons tons/year
qualified
s Co., Ltd. solid waste Road
units
Dosing
section of
workshop
fermentatio
n section of
workshop
section of
workshop
Jiangsu Air
by 107 and
Joyang pollutant: Organized 0.416 0.797
Laboratorie particulate emission tons/year tons/year
fermentatio
s Co., Ltd. matter
n section of
workshop
by 107 and
drying
section of
workshop
by 107 and
Extraction
of
workshop
Jiangsu Air 101,
Joyang pollutant: Organized Extraction 0.007 1.074
Laboratorie ethyl emission of tons/year tons/year
s Co., Ltd. acetate workshop
workshop
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Construction and operation of pollution prevention and control facilities
(1) Waste water
Name of pollution
Status of
prevention and control Treatment process Processing capacity Time of operation
operation
facilities
Waste water treatment Original 600 tons/day; 800
Facultative + fluidized November 1993; technical
system of the old sewage tons/day after technical Normal
bed transformation in 2007
station transformation
Waste water treatment Anaerobic (IC tower)+ December 2001; technical
system of the new sewage facultative +CASS+ air 2,200 tons/day transformation in 2014 (IC and Normal
station flotation air flotation added)
(2) Waste gas
Name of pollution
Processing Status of
prevention and control Treatment process Time of operation
capacity CMH operation
facilities
Level 2 water spraying + surface cooling +
DA010（35#-1） 15000 2017 Normal
activated carbon adsorption/desorption
DA011（35#-2） Level 2 water spraying 22000 2013 Normal
DA012（40#-2） Activated carbon + horizontal spraying 6000 2019 Stopped
DA013（32#-1） Level 2 alkali liquor spraying 22000 2013 Stopped
Level 2 water spraying + surface cooling +
DA014（36#-1) low-temperature plasma + Level 1 water 27000 2017 Normal
spraying
DA015（40#-1） Level 2 water spraying 24200 / Normal
Two levels of alkali liquor spraying + all-in-one
(photocatalytic oxidation + plasma + activated
DA016（18#-1） 16000 2019 Normal
carbon) + inorganic nano catalytic deodorization
equipment + Level 1 water spraying
DA017（19#-1） Combustion tower / 2018 Stopped
DA018（19#-2） Combustion tower / 2018 Stopped
Level 1 water spraying + photocatalytic
DA019（3#-1） 20000+52000 2019 Normal
oxidation
Two levels of water spraying + condensation+
DA020（36#-2） photocatalytic oxidation + activated carbon + 10000 2019 Normal
inorganic nano-catalysis + water spraying
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Level 1 water spraying + Level 1 alkali liquor
DA021（16#-1） 12000 2012 Stopped
spraying
Level 1 water spraying + Level 1 plant oil and
DA022（16#-2） 30000 2014 Stopped
water spraying
Condensation + Level 1 alkali liquor spraying +
DA023（27#-1） 15000 2009 Normal
all-in-one + Level 1 alkali liquor spraying
Level 2 alkali liquor spray + condensate tank +
DA024（33#-1） 48000 2019 Stopped
common Level 1 alkali liquor spraying
Dust removal with cloth bag + high-efficiency
DA025（32#-2） / 2017 Stopped
filter
DA026（34#-1） Level 2 alkali liquor spraying 54000 2008 Stopped
DA027（7#-1） Level 2 alkali liquor spraying 26000 2015 Normal
DA028（6#-1） Level 1 water spraying 12200 2016 Normal
Level 2 alkali liquor spraying + photocatalytic
DA029（18#-2） oxidation + activated carbon + Level 1 alkali 16000 2018 Normal
liquor spraying
Level 1 water spraying + Level 1 alkali liquor
DA030（18#-3） 5000 2017 Normal
spraying
(The low nitrogen
Low-nitrogen combustion + high-altitude
DA031（25#-2） 8000 transformation Normal
emission
completed in
December 2019.)
(The low nitrogen
Low-nitrogen combustion + high-altitude
DA032（25#-1） 8000 transformation Normal
emission
completed in
December 2019.)
DA033（1#-1） Oil fume purifier / / Normal
Two levels of water spraying + activated carbon
DA034（27#-2） 15000 2011 Normal
adsorption/desorption
Photocatalytic oxidation + Level 1 alkali liquor
DA035（27#-3） 22300 2016 Normal
spraying
DA036（8#-1） Level 2 water spraying 25000 2017 Normal
Level 2 water spraying + surface cooling +
DA037（13#-1） 25000 2017 Normal
activated carbon adsorption/desorption
Level 1 water spraying + photocatalytic
DA038（28#-1） 22000 2011 Normal
oxidation
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Level 2 water spraying + common
DA039（28#-2） 48000 2011 Normal
photocatalytic oxidation
Level 1 water spraying + Level 1 alkali liquor
DA040（29#-1） 22000 2011 Normal
spraying
DA041（33#-2） Level 1 water spraying 18600 2012 Stopped
DA042（10#-1） Level 1 water spraying 20000 2016 Normal
Level 1 alkali liquor spraying + photocatalytic
DA043（15#-1） 25000 2018 Normal
oxidation
Level 1 alkali liquor spraying + Level 1 water
DA044（43#-1） 45000 2014 Normal
spraying
DA045（46#-1） Level 1 water spraying 3000 2015 Normal
DA046（46#-2） Level 1 water spraying 25000 2015 Normal
DA047（46#-3） Level 1 water spraying 30000 2015 Normal
DA048（23#-1） Two levels of water spraying 7000 2019 Stopped
Note: Waste gas treatment process of 107 fermentation section: when the fermentation tank is not disinfected, the waste gas is
discharged at high altitude after level 3 alkali spray; when the fermentation tank is disinfected, the waste gas is first condensed and
then treated with level 1 alkali spray, and then discharged at high altitude.
(3) Solid waste
Name of pollution
prevention and control Treatment process Processing capacity Time of operation Status of operation
facilities
Standardized storage 160 tons March 2012
Standardized storage; legal
Hazardous waste warehouse
disposal by qualified units
Standardized storage 240 tons March 2010
Standardized storage 7 tons March 2010
Standardized storage; legal
General solid waste yard
disposal by qualified units
Standardized storage 30 tons June 2004
(1) Waste water
Name of pollution
prevention and control Treatment process Processing capacity Time of operation Status of operation
facilities
Waste water treatment Ozone oxidation +
system of the sewage facultative + aerobic + 250 tons/day July 2012 Normal
station MBR
The Half Year Report 2021 of Huadong Medicine Co., Ltd
(2) Waste gas
Name of pollution prevention and control facilities Treatment process Time of operation Status of operation
Alkali spray + dry
filter (filter cotton)
Waste gas treatment unit of raw medicine No. 1
+UV photolysis + October 2020 Normal
workshop
activated carbon
adsorption
Two alkali spray + dry
Waste gas treatment unit of raw medicine No. 2
filter +UV photolysis November 2019 Normal
workshop
+ activated carbon
(3) Solid waste
Name of pollution
prevention and control Treatment process Storage capacity Time of operation Status of operation
facilities
Standardized Standardize storage; legal disposal
Hazardous waste warehouse 60 tons January 2012
storage by entrusted qualified units
(1) Waste water
Name of pollution
prevention and control Treatment process Processing capacity Time of operation Status of operation
facilities
Air floatation tank + hydrolysis
Waste water treatment
acidification + IC tower + UASB
system of the sewage 300 tons/day December 2014 Normal
pool + A/O pool + O pool +
station
secondary sedimentation tank
(2) Waste gas
Name of pollution
Name of pollution prevention and control Processing Treatment
Treatment process prevention and
facilities capacity process
control facilities
Level 1 water spray + moisture
separator + photocatalytic
Waste gas treatment unit of the extraction
oxidation + level 2 activated 10000 2014 Normal
section of workshop 101
carbon adsorption + high-altitude
discharge via 25m exhaust pipe
Waste gas treatment unit of the
Level 1 water spray + moisture 20000 2019 Normal
fermentation section of workshop 101
separator + level 2 activated
The Half Year Report 2021 of Huadong Medicine Co., Ltd
carbon adsorption + high-altitude
discharge via 25m exhaust pipe
Level 1 water spray + moisture
Waste gas treatment unit of the drying separator + level 2 activated
section of workshop 101 carbon adsorption + high-altitude
discharge via 25m exhaust pipe
Cyclone separator + level 1 water
Waste gas treatment unit of the dosing
spray + high-altitude discharge via 5000 2014 Normal
section of workshop 101
Level 1 water spray + moisture
Waste gas treatment unit of the
separator + level 2 activated carbon
fermentation section of workshop 75000 2021 Normal
adsorption + high-altitude
discharge via 25m exhaust pipe
Level 1 water spray + moisture
separator + photocatalytic
Waste gas treatment unit of the extraction
oxidation + level 2 activated
section of workshop 104 10000 2015 Normal
carbon adsorption + high-altitude
discharge via 25m exhaust pipe
Cyclone separator + level 1 water
Waste gas treatment unit of the dosing
spray + high-altitude discharge via 5000 2015 Normal
section of workshop 104/107/108
Level 1 water spray + moisture
Waste gas treatment unit of the drying
separator + level 2 activated 20000 2015 Normal
section of workshop 104/107/108
carbon adsorption
Level 1 water spray + moisture
Waste gas treatment unit of the separator + photocatalytic
pretreatment pool and hazardous waste oxidation + level 2 activated 40000 2019 Normal
warehouse of workshop 103, 303 carbon adsorption + high-altitude
discharge via 25m exhaust pipe
Level 1 water spray + moisture
separator + photocatalytic
Waste gas treatment unit of workshop 106 oxidation + level 2 activated
carbon adsorption + high-altitude
discharge via 25m exhaust pipe
Level 1 water spray + moisture
separator + photocatalytic
Waste gas treatment unit of the extraction
oxidation + level 2 activated 20000 2019 Normal
section of workshop 107
carbon adsorption + high-altitude
discharge via 25m exhaust pipe
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Level 1 water spray + moisture
separator + photocatalytic
Waste gas treatment unit of the extraction
oxidation + level 2 activated
section of workshop 108 40000 2019 Normal
carbon adsorption + high-altitude
discharge via 25m exhaust pipe
Level 1 water spray +
Waste gas treatment unit of workshop 109 high-altitude discharge via 25m 20000 2019 Normal
exhaust pipe
Level 1 water spray + moisture
Waste gas treatment unit of sewage station separator + photocatalysis +
exhaust pipe
(3) Solid waste
Name of pollution
prevention and control Treatment process Processing capacity Time of operation Status of operation
facilities
Standardized storage; legal
Hazardous waste warehouse Standardized storage 300 tons December 2020 disposal by entrusted
qualified units
Chengdong Garbage Disposal
Domestic waste yard Standardized storage 3 tons March 2015
Station
Environmental impact assessment of construction projects and other administrative permits for
environmental protection
protection upon completion of the technical transformation project of the macromolecular medicine R&D
laboratory (pilot test), and disclosed the acceptance information in the National Environmental Protection Final
Inspection Information System for Construction Projects.
declared, constructed and accepted in strict accordance with the requirements of “three simultaneous items” for
environmental protection, all of which have obtained the official approval of environmental assessment,
conforming to the requirements of environmental impact assessment of construction projects.
On June 13, 2019, Huadong Medicine (Xi’an) Bohua Pharmaceutical Co., Ltd. obtained the approval
(W.H.P.F [2019] No.49) from Weinan Environmental Protection Bureau for the environmental impact assessment
report on domperidone, seflurane and topiramate pilot test reform projects.
In November 2019, Huadong Medicine (Xi’an) Bohua Pharmaceutical Co., Ltd. completed the
environmental impact post assessment report and submitted it to Weinan Ecological Environment Bureau for
filing, with the filing number: W.H.P.B (2020) No.3.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
and accepted in strict accordance with the requirements of “three simultaneous items” for environmental
protection, all of which have obtained the official approval of environmental assessment, conforming to the
requirements of environmental impact assessment of construction projects. Jiangsu Jiuyang Biopharmaceutical
Co., Ltd. has obtained the sewage discharge permit and the discharge permit of urban sewage into the drainage
pipe network in accordance with the environmental protection requirements.
Emergency plan for sudden environmental incidents
Bureau on February 2, 2021.
Environmental Incidents, with the filing No.61050020183022.
Incidents which was first prepared in October 2017. The 2021 plan has been renewed and reviewed, and is being
filed.
The Emergency Plan for Sudden Environmental Incidents of Jiangsu Jiuyang Bio-pharmaceutical Co., Ltd.
can improve the company’s ability to cope with and prevent environmental emergencies. In May 2021, the
company organized a drill for its comprehensive emergency plan for safety and environmental protection,
standardized the emergency handling of sudden environmental incidents, minimized the hazards to human health
and the environment caused by the leakage of environmental risk substances into the air, water or soil due to fire,
explosion, leakage or other unexpected emergencies, and enhanced the emergency response capability for
environmental pollution incidents.
Environmental self-monitoring scheme
discharge permit, as well as and the revision of the self-monitoring scheme.
Pollution Sources” which was put on record in the environmental protection authorities, and all the monitoring
data was reported according to the regulations.
which was put on record in the environmental protection authorities.
The scheme was prepared in accordance with the relevant national requirements for environmental protection,
and the company reported all the monitoring data every day according to the regulations.
Administrative penalties imposed for environmental issues during the reporting period
Impact on the
Name of company or Corrective measures
Reason for penalty Violation Result of penalty production and
subsidiary of the company
operation of listed
The Half Year Report 2021 of Huadong Medicine Co., Ltd
company
The company
immediately stopped
The concentration of discharging sewage
ammonia nitrogen in and re-processed the
Discharged
the wastewater from unqualified sewage.
industrial wastewater
the general discharge After the sewage
Jiangsu Jiuyang that failed to meet
outlet failed to meet A fine of 100,000 Did not constitute a reached the standard,
Biopharmaceutical the process
the treatment process yuan significant impact the environmental
Co., Ltd. requirements to the
requirements of protection authority
centralized sewage
Sheyang County sampled and tested
treatment facilities
Wastewater it. After passing the
Treatment Co., Ltd. test, the sewage was
discharged according
to regulations.
Other environmental information that should be made public
/
Other information related to environmental protection
Zhongmei Huadong completes the carbon emission verification report during the period from July to August
every year according to the requirements of the superior environmental protection authorities, and reports it to the
carbon emission system of the ecological environment authority for filing.
II. Social responsibilities
The Company actively performed corporate social responsibilities, took the initiative to
participate in social public welfare activities, and made a contribution to society with actions.
In July 2021, many areas in Henan Province suffered from extremely heavy rainfall, which
caused severe floods and heavy casualties and property losses. Zhongmei Huadong, the Company’s
wholly-owned subsidiary, immediately donated RMB2 million in cash to the Henan Red Cross
Society to support the flood relief and the construction of the post-disaster public health service
system in the province.
In July 2021, Zhongmei Huadong, the Company’s wholly-owned subsidiary, donated RMB1
million in cash to Zhejiang Shulan Charity Foundation to help poor patients with major diseases,
especially those who need organ transplants or have other major diseases.
The Company actively responded to the “Connecting the Villages” activity organized by the
government, and launched targeted support projects. It formed a pair with Linqi Town, Chun’an
The Half Year Report 2021 of Huadong Medicine Co., Ltd
County, Hangzhou, and provided support to boost the economic and social development of Linqi
Town through targeted poverty alleviation. From 2017 to 2020, the Company donated a total of
RMB1.2 million to the “Connecting the Villages” poverty alleviation project, and it is expected to
donate another RMB300,000 in 2021.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Section VI. Important Matters
I. Fulfilled and Unfulfilled commitments from the related committed parties such as the
Company’s actual controller, shareholders, related parties, acquirer(s), and the Company
during the current reporting period
□ Applicable √ N/A
No such case during the reporting period.
II. Controlling shareholder’s and related parties’ occupation of non-operating funds of the
listed companies
□ Applicable √ N/A
No such case during the reporting period.
III. External guarantees in violation of provisions
□ Applicable √ N/A
No such case during the reporting period.
IV. Employment and dismissal of accounting firms
Whether the half year report was audited
□ Yes √ No
The Company’s half year report was not audited.
V. Explanation given by the Board of directors and the Board of Supervisors regarding the
“non-standard auditor’s report” issued by the accounting firm for the current reporting
period
□ Applicable √ N/A
VI. Explanation given by the Board of Directors regarding the “non-standard auditor’s
report” for the prior year
□ Applicable √ N/A
VII. Bankruptcy reorganization
□ Applicable √ N/A
No such case during the reporting period.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
VIII. Litigations
Major litigation and arbitration
□ Applicable √ N/A
No such case during the reporting period.
Other litigations
√ Applicable □N/A
Whether
Amount Litigation
Basic litigation estimated Progress of Litigation
involved (arbitration) Disclosure Disclosure
(arbitration) liabilities are litigation (arbitration) result
(unit: judgment date index
information formed as a (arbitration) and impact
RMB10,000) execution
result
Some judgments
have taken
Summary of Some cases
effect and are
matters that do not are being The summary of Not meet the
under execution,
meet the disclosure filed, some litigation matters disclosure
some have not
standards for 783.33 No are under has no material standards for /
yet taken effect,
major litigation trial, and impact on the major
some are
(arbitration) some have Company litigation
pending, and
(domestic) taken effect
some are in
progress
Summary of
matters that do not The summary of Not meet the
meet the disclosure litigation matters disclosure
In trial, with no
standards for 117.6 No In trial has no material standards for /
decision made
major litigation impact on the major
(arbitration) Company litigation
(overseas)
IX. Punishment and rectification
□ Applicable √ N/A
No such case during the reporting period.
X. Integrity of the Company and its controlling shareholder and actual controller
□ Applicable √ N/A
The Half Year Report 2021 of Huadong Medicine Co., Ltd
XI. Major related transactions
√Applicable □N/A
Approve
Related Proporti Whether Settleme
Pricing d Availabl
Content transacti on in the it nt
Type of principl Price of transacti e market
of on amount exceeds method Date of Disclo
Related Relation related es for related on prices of
related amount of the of disclosu sure
party ship transacti related transacti amount similar
transacti (ten similar approve related re index
on transacti on (ten transacti
on thousan transacti d transacti
on thousan ons
d yuan) ons amount on
d yuan)
Market
price
determi
Subsidia
ned by
ry of the
Grandph the
Compan Cash, http://
arma Drug Drug Compan
y’s Market banker’s Market April www.c
(China) purchas purchas y’s 3,831.33 0.33% 7,500 No
controlli price acceptan price 21, 2021 ninfo.c
Co., e e related
ng ce bill om.cn
Ltd. transacti
sharehol
on
der
decision
-making
process
Market
price
determi
Hangzh
ned by
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Joint the
Jiuyuan Cash, http://
venture Drug Drug Compan
Gene Market banker’s Market April www.c
of the purchas purchas y’s 3,006.94 0.26% 4,500 No
Enginee price acceptan price 21, 2021 ninfo.c
Compan e e related
ring ce bill om.cn
y transacti
Co.,
on
Ltd.
decision
-making
process
Sichuan Subsidia Market Cash, http://
Drug Drug
Yuanda ry of the price Market banker’s Market April www.c
purchas purchas 2,468.59 0.21% 6,500 No
Shuyang Compan determi price acceptan price 21, 2021 ninfo.c
e e
Pharmac y’s ned by ce bill om.cn
The Half Year Report 2021 of Huadong Medicine Co., Ltd
eutical controlli the
Co., ng Compan
Ltd. sharehol y’s
der related
transacti
on
decision
-making
process
Market
price
determi
Subsidia
Beijing ned by
ry of the
Grand the
Compan Cash, http://
Johamu Drug Drug Compan
y’s Market banker’s Market April www.c
Pharmac purchas purchas y’s 1,110.83 0.10% 4,000 No
controlli price acceptan price 21, 2021 ninfo.c
eutical e e related
ng ce bill om.cn
Co., transacti
sharehol
Ltd. on
der
decision
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process
Market
price
determi
Wuhan Subsidia
ned by
Grand ry of the
the
Pharmac Compan Cash, http://
Drug Drug Compan
eutical y’s Market banker’s Market April www.c
purchas purchas y’s 1,037.95 0.09% 2,000 No
Group controlli price acceptan price 21, 2021 ninfo.c
e e related
Sales ng ce bill om.cn
transacti
Co., sharehol
on
Ltd. der
decision
-making
process
Subsidia Market
Hangzh
ry of the price
ou
Compan determi Cash, http://
Grand Drug Drug
y’s ned by Market banker’s Market April www.c
Biologic purchas purchas 920.86 0.08% 2,000 No
controlli the price acceptan price 21, 2021 ninfo.c
Pharmac e e
ng Compan ce bill om.cn
eutical
sharehol y’s
Inc
der related
The Half Year Report 2021 of Huadong Medicine Co., Ltd
transacti
on
decision
-making
process
Market
price
determi
Subsidia
ned by
Penglai ry of the
the
Nuokan Compan Cash, http://
Drug Drug Compan
g y’s Market banker’s Market April www.c
purchas purchas y’s 880.23 0.08% 3,000 No
Pharmac controlli price acceptan price 21, 2021 ninfo.c
e e related
eutical ng ce bill om.cn
transacti
Co. Ltd. sharehol
on
der
decision
-making
process
Market
price
determi
Yunnan Subsidia
ned by
Leiyuns ry of the
the
hang Compan Cash, http://
Drug Drug Compan
Lixiang y’s Market banker’s Market April www.c
purchas purchas y’s 850.27 0.07% 2,000 No
Pharmac controlli price acceptan price 21, 2021 ninfo.c
e e related
eutical ng ce bill om.cn
transacti
Co., sharehol
on
Ltd. der
decision
-making
process
Market
price
Subsidia determi
Shangha
ry of the ned by
i
Compan the Cash, http://
Xudong Drug Drug
y’s Compan Market banker’s Market April www.c
Haipu purchas purchas 240.72 0.02% 500 No
controlli y’s price acceptan price 21, 2021 ninfo.c
Pharmac e e
ng related ce bill om.cn
eutical
sharehol transacti
Co., Ltd
der on
decision
-making
The Half Year Report 2021 of Huadong Medicine Co., Ltd
process
Market
price
determi
Subsidia
ned by
Leiyuns ry of the
the
hang Compan Cash, http://
Drug Drug Compan
Pharmac y’s Market banker’s Market April www.c
purchas purchas y’s 230.9 0.02% 500 No
eutical controlli price acceptan price 21, 2021 ninfo.c
e e related
Group ng ce bill om.cn
transacti
Co. Ltd. sharehol
on
der
decision
-making
process
Market
price
determi
Shenyan Subsidia
ned by
g Yaoda ry of the
the
Leiyuns Compan Cash, http://
Drug Drug Compan
hang y’s Market banker’s Market April www.c
purchas purchas y’s 221.82 0.02% 700 No
Pharmac controlli price acceptan price 21, 2021 ninfo.c
e e related
eutical ng ce bill om.cn
transacti
Co., sharehol
on
Ltd. der
decision
-making
process
Market
price
determi
Guangd Subsidia
ned by
ong ry of the
the
Leiyuns Compan Cash, http://
Drug Drug Compan
hang y’s Market banker’s Market April www.c
purchas purchas y’s 206.18 0.02% 350 No
Pharmac controlli price acceptan price 21, 2021 ninfo.c
e e related
eutical ng ce bill om.cn
transacti
Co., sharehol
on
Ltd. der
decision
-making
process
Xi'an Subsidia Drug Drug Market Cash, http://
Market Market April
Yuanda ry of the purchas purchas price 104.13 0.01% 300 No banker’s www.c
price price 21, 2021
new Compan e e determi acceptan ninfo.c
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Beilin y’s ned by ce bill om.cn
Pharmac controlli the
eutical ng Compan
Co., Ltd sharehol y’s
der related
transacti
on
decision
-making
process
Market
price
determi
Changsh Subsidia
ned by
u ry of the
the
Leiyuns Compan Cash, http://
Drug Drug Compan
hang y’s Market banker’s Market April www.c
purchas purchas y’s 70.47 0.01% 200 No
Pharmac controlli price acceptan price 21, 2021 ninfo.c
e e related
eutical ng ce bill om.cn
transacti
Co., sharehol
on
Ltd. der
decision
-making
process
Market
price
determi
Changc Subsidia
ned by
hun ry of the
the
Leiyuns Compan Cash, http://
Drug Drug Compan
hang y’s Market banker’s Market April www.c
purchas purchas y’s 68.51 0.01% 150 No
Pharmac controlli price acceptan price 21, 2021 ninfo.c
e e related
eutical ng ce bill om.cn
transacti
Co., sharehol
on
Ltd. der
decision
-making
process
Subsidia Market
Beijing ry of the price
Cash, http://
Huajin Compan Drug Drug determi
Market banker’s Market April www.c
Pharmac y’s purchas purchas ned by 28.1 0.00% 100 No
price acceptan price 21, 2021 ninfo.c
eutical controlli e e the
ce bill om.cn
Co., Ltd ng Compan
sharehol y’s
The Half Year Report 2021 of Huadong Medicine Co., Ltd
der related
transacti
on
decision
-making
process
Market
Hangzh
price
ou
determi
Huadon Subsidia
ned by
g ry of the
the
Medicin Compan Cash, http://
Drug Drug Compan
e Group y’s Market banker’s Market April www.c
purchas purchas y’s 24.82 0.00% 150 No
Guizhou second price acceptan price 21, 2021 ninfo.c
e e related
TCM largest ce bill om.cn
transacti
Develop sharehol
on
ment der
decision
Co.,
-making
Ltd.
process
Market
price
determi
Subsidia
ned by
Xi'an ry of the
the
Yuanda Compan Cash, http://
Drug Drug Compan
Detian y’s Market banker’s Market April www.c
purchas purchas y’s 5.41 0.00% Yes
Pharmac controlli price acceptan price 21, 2021 ninfo.c
e e related
eutical ng ce bill om.cn
transacti
Co., Ltd sharehol
on
der
decision
-making
process
Market
Grandph price
Subsidia
arma determi
ry of the
Huangs ned by
Compan Cash, http://
hi the
y’s Drug Drug Market banker’s Market April www.c
Feiyun Compan 3.29 0.00% Yes
controlli sales sales price acceptan price 21, 2021 ninfo.c
Pharmac y’s
ng ce bill om.cn
eutical related
sharehol
Co., transacti
der
Ltd. on
decision
The Half Year Report 2021 of Huadong Medicine Co., Ltd
-making
process
Market
price
determi
Hangzh ned by
ou the
Shareho Cash, http://
Junlan Compan
lding Drug Drug Market banker’s Market April www.c
Pharmac y’s 4,526.18 0.26% 14,000 No
enterpris sales sales price acceptan price 21, 2021 ninfo.c
eutical related
e ce bill om.cn
Trading transacti
Co. Ltd. on
decision
-making
process
Market
price
determi
Subsidia
ned by
Leiyuns ry of the
the
hang Compan Cash, http://
Compan
Pharmac y’s Drug Drug Market banker’s Market April www.c
y’s 251.55 0.01% 450 No
eutical controlli sales sales price acceptan price 21, 2021 ninfo.c
related
Group ng ce bill om.cn
transacti
Co. Ltd. sharehol
on
der
decision
-making
process
Market
price
determi
Guangd Subsidia
ned by
ong ry of the
the
Leiyuns Compan Cash, http://
Compan
hang y’s Drug Drug Market banker’s Market April www.c
y’s 36.34 0.00% 400 No
Pharmac controlli sales sales price acceptan price 21, 2021 ninfo.c
related
eutical ng ce bill om.cn
transacti
Co., sharehol
on
Ltd. der
decision
-making
process
Yunnan Subsidia Drug Drug Market Market Cash, Market April http://
Leiyuns ry of the sales sales price price banker’s price 21, 2021 www.c
The Half Year Report 2021 of Huadong Medicine Co., Ltd
hang Compan determi acceptan ninfo.c
Lixiang y’s ned by ce bill om.cn
Pharmac controlli the
eutical ng Compan
Co., sharehol y’s
Ltd. der related
transacti
on
decision
-making
process
Market
price
determi
Changc Subsidia
ned by
hun ry of the
the
Leiyuns Compan Cash, http://
Compan
hang y’s Drug Drug Market banker’s Market April www.c
y’s 5.69 0.00% Yes
Pharmac controlli sales sales price acceptan price 21, 2021 ninfo.c
related
eutical ng ce bill om.cn
transacti
Co., sharehol
on
Ltd. der
decision
-making
process
Market
price
determi
Changsh Subsidia
ned by
u ry of the
the
Leiyuns Compan Cash, http://
Compan
hang y’s Drug Drug Market banker’s Market April www.c
y’s 8.58 0.00% Yes
Pharmac controlli sales sales price acceptan price 21, 2021 ninfo.c
related
eutical ng ce bill om.cn
transacti
Co., sharehol
on
Ltd. der
decision
-making
process
Hangzh Market
Joint
ou price Cash, http://
venture
Jiuyuan Drug Drug determi Market banker’s Market April www.c
of the 0.66 0.00% 600 No
Gene sales sales ned by price acceptan price 21, 2021 ninfo.c
Compan
Enginee the ce bill om.cn
y
ring Compan
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Co., y’s
Ltd. related
transacti
on
decision
-making
process
Market
price
determi
Hangzh
ned by
ou
Joint the
Tangyan Cash, http://
venture Compan
gyuan Drug Drug Market banker’s Market April www.c
of the y’s 462.48 0.03% 1,200 No
Pharmac sales sales price acceptan price 21, 2021 ninfo.c
Compan related
eutical ce bill om.cn
y transacti
Co.,
on
Ltd.
decision
-making
process
Market
price
determi
Subsidia
Hangzh ned by
ry of the
ou the
Compan Cash, http://
Grand Compan
y’s Drug Drug Market banker’s Market April www.c
Biologic y’s 74.1 0.00% 150 No
controlli sales sales price acceptan price 21, 2021 ninfo.c
Pharmac related
ng ce bill om.cn
eutical transacti
sharehol
Inc. on
der
decision
-making
process
Market
Subsidia price
Grand ry of the determi
Resourc Compan ned by Cash, http://
es y’s Drug Drug the Market banker’s Market April www.c
Group controlli sales sales Compan price acceptan price 21, 2021 ninfo.c
Co., ng y’s ce bill om.cn
Ltd. sharehol related
der transacti
on
The Half Year Report 2021 of Huadong Medicine Co., Ltd
decision
-making
process
Market
price
determi
Hangzh
ned by
ou
Joint the
Jiuyuan Cash, http://
venture Compan
Gene House House Market banker’s Market April www.c
of the y’s 6.42 0.00% 5 Yes
Enginee rental rental price acceptan price 21, 2021 ninfo.c
Compan related
ring ce bill om.cn
y transacti
Co.,
on
Ltd.
decision
-making
process
Market
price
determi
Subsidia
ned by
Beijing ry of the
the
Yanhuan Compan Cash, http://
Compan
g Real y’s House House Market banker’s Market April www.c
y’s 43.09 0.00% Yes
Estate controlli leasing leasing price acceptan price 21, 2021 ninfo.c
related
Co., ng ce bill om.cn
transacti
Ltd. sharehol
on
der
decision
-making
process
Market
price
determi
Hangzh
The ned by
ou
Compan the
Huadon Cash, http://
y’s Compan
g House House Market banker’s Market April www.c
second y’s 10.86 0.00% 25 No
Medicin leasing leasing price acceptan price 21, 2021 ninfo.c
largest related
e Group ce bill om.cn
sharehol transacti
Co.,
der on
Ltd.
decision
-making
process
Hangzh Subsidia Technol Technol Market Market 8.08 0.00% Yes Cash, Market April http://
The Half Year Report 2021 of Huadong Medicine Co., Ltd
ou ry of the ogy ogy price price banker’s price 21, 2021 www.c
Grand Compan Develop Develop determi acceptan ninfo.c
Biologic y’s ment ment ned by ce bill om.cn
Pharmac controlli Service Service the
eutical ng Compan
Inc. sharehol y’s
der related
transacti
on
decision
-making
process
Market
price
determi
Subsidia
ned by
Penglai ry of the
the
Nuokan Compan Cash, http://
Compan
g y’s Agency Agency Market banker’s Market April www.c
y’s 794.75 0.07% Yes
Pharmac controlli Service Service price acceptan price 21, 2021 ninfo.c
related
eutical ng ce bill om.cn
transacti
Co. Ltd. sharehol
on
der
decision
-making
process
Market
price
determi
Subsidia
Sichuan ned by
ry of the
Yuanda Transpo Transpo the
Compan Cash, http://
Shuyang rt rt Compan
y’s Market banker’s Market April www.c
Pharmac warehou warehou y’s 18.5 0.00% Yes
controlli price acceptan price 21, 2021 ninfo.c
eutical sing sing related
ng ce bill om.cn
Co., service service transacti
sharehol
Ltd. on
der
decision
-making
process
Beijing Subsidia Market
Cash, http://
Yuanda ry of the Property Property price
Market banker’s Market April www.c
Chuang Compan manage manage determi 9.64 0.00% Yes
price acceptan price 21, 2021 ninfo.c
xin y’s ment fee ment fee ned by
ce bill om.cn
Property controlli the
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Manage ng Compan
ment sharehol y’s
Co., der related
Ltd. transacti
on
decision
-making
process
Market
price
determi
Beijing Subsidia
ned by
Haiwan ry of the
the
Banshan Compan Cash, http://
Compan
Hotel y’s conferen conferen Market banker’s Market April www.c
y’s 9.08 0.00% Yes
Manage controlli ce fee ce fee price acceptan price 21, 2021 ninfo.c
related
ment ng ce bill om.cn
transacti
Co., sharehol
on
Ltd. der
decision
-making
process
Total -- -- -- 51,530 -- -- -- -- --
Details of bulk sales returns N/A
Actual performance during the
reporting period where the total
amount of daily related transactions N/A
is estimated by category for the
current period (if any)
Reasons for the large difference
between the transaction price and the N/A
market reference price (if applicable)
□ Applicable √ N/A
No such case during the reporting period.
√ Applicable □N/A
Joint Related Name of investee Main business Registered Total assets Net assets of Net profits of
The Half Year Report 2021 of Huadong Medicine Co., Ltd
investors relations of investee capital of of investee investee (unit: investee (unit:
investee (unit: RMB10,000) RMB10,000)
RMB10,000)
Yuanda
Investment
Management
and Fuguang
Chengdu are
subsidiaries
of Beijing
Yuanda
Huachuang
Shanghai Investment
Yuanda Co., Ltd., the
Investment controlling
Management shareholder
Co., Ltd., of China
Fuguang Grand
Chengdu Enterprises,
General
Equity Inc. (the
projects:
Investment controlling
Equity
Management shareholder Hangzhou
investment;
Co., Ltd., of the Fuguang
venture capital
Hangzhou Company). Hongxin Equity 200 million yuan 7,900.37 7,900.37 -99.63
investment
High-Tech According to Investment
(investment in
Venture the provisions Partnership (L.P.)
unlisted
Capital of Rules
companies
Management Governing
only)
Co., Ltd., and the Listing of
Hangzhou Shares on
Heda Shenzhen
Industrial Stock
Fund Exchange and
Investment other relevant
Co., Ltd. laws and
regulations,
Yuanda
Investment
Management,
Fuguang
Chengdu and
the Company
constitute
related
The Half Year Report 2021 of Huadong Medicine Co., Ltd
parties.
Since
Fuguang
Chengdu, the
managing
partner and
fund manager
of Fuguang
Hongxin, and
Yuanda
Investment
Management,
one of
Fuguang
Hongxin’s
limited
partner, are
subsidiaries
of Yuanda
Development,
Hangzhou Huachuang,
transfer,
Fuguang the Nuoling
consulting and
Hongxin controlling Biomedical
services 4.981729 million
Equity shareholder Technology 7,537.97 7,443.61 -534.41
regarding yuan
Investment of China (Beijing) Co.,
biological and
Partnership Grand Ltd.
medical
(L.P.) Enterprises,
technologies
Inc. (the
controlling
shareholder
of the
Company),
and the
Company is a
limited
partner of
Fuguang
Hongxin,
Fuguang
Hongxin and
the Company
constitute
related parties
in accordance
with the
The Half Year Report 2021 of Huadong Medicine Co., Ltd
provisions of
Rules
Governing
the Listing of
Shares on
Shenzhen
Stock
Exchange and
other relevant
laws and
regulations.
an incubation and introduction platform for diversified high-quality R&D and innovation projects,
and quickly enrich the Company’s core product pipelines, the Company signed the Partnership
Agreement of Hangzhou Fuguang Hongxin Equity Investment Partnership (L.P.) with Shanghai
Yuanda Investment Management Co., Ltd., Fuguang Chengdu Equity Investment Management Co.,
Ltd., Hangzhou High-Tech Venture Capital Management Co., Ltd., and Hangzhou Heda Industrial
Fund Investment Co., Ltd., jointly establishing “Hangzhou Fuguang Hongxin Equity Investment
Partnership (L.P.)” on January 7, 2021. The Pharmaceutical Industry Fund was established with a total
scale of RMB200 million, of which RMB98 million is contributed by the Company with its own
funds and the Company is a limited partner of the Pharmaceutical Industry Fund. For details, please
refer to No. 2021-002 Announcement on Participation in Investment in the Establishment of
Pharmaceutical Industry Investment Fund and Related Party Transactions issued by the Company on
January 7, 2021.
Progress of major ongoing the industrial and commercial registration procedures, and it was successfully filed with AMAC on
projects (if any) of the April 2, 2021. For details, please refer to No. 2021-016 Announcement on the Progress of
investee Participation in Investment in the Establishment of Pharmaceutical Industry Investment Fund issued
by the Company on April 6, 2021.
Equity Investment Partnership (L.P.) jointly contributed a total of RMB35 million to increase the
capital of Nuoling Biomedical Technology (Beijing) Co., Ltd. and subscribed for the newly increased
registered capital of RMB520,479 of Nuoling Biomedical Technology, which corresponds to
invested RMB15 million and subscribed for Nuoling Biomedical Technology’s newly registered
capital of RMB223,062, while Fuguang Hongxin invested RMB20 million and subscribed for
RMB297,417. Upon completion of the transaction, Zhongmei Huadong held 4.4776% of the equity of
Nuoling Biomedical Technology, while Fuguang Hongxin held 5.9702%. On April 19, 2021, all
existing shareholders of Nuoling Biomedical Technology signed a Capital Increase Agreement and a
Shareholders Agreement with Zhongmei Huadong and Fuguang Hongxin. For details, please refer to
No. 2021-020 Announcement on Joint External Investment and Related Party Transactions with the
Pharmaceutical Industry Investment Fund issued by the Company on April 19, 2021. Note 1
Note 1: Related inquiries on the disclosure website of interim reports on major related party transactions
Title of provisional announcement Disclosure date of provisional Disclosure website of provisional
The Half Year Report 2021 of Huadong Medicine Co., Ltd
announcement announcement
Announcement on Participation in Investment
in the Establishment of Pharmaceutical
January 08, 2021 http://www.cninfo.com.cn
Industry Investment Fund and Related Party
Transactions
Announcement on the Progress of
Participation in Investment in the
April 07, 2021 http://www.cninfo.com.cn
Establishment of Pharmaceutical Industry
Investment Fund
Announcement on Joint External Investment
and Related Party Transactions with the April 20, 2021 http://www.cninfo.com.cn
Pharmaceutical Industry Investment Fund
□ Applicable √N/A
No such case during the reporting period.
□ Applicable √N/A
There are no deposits, loans, credits, or other financial services between the company and the financial company that has an affiliated
relationship, and the financial company controlled by the company and the affiliated party.
□ Applicable √N/A
No such case during the reporting period.
XII. Major contracts and their fulfilment
(1) Entrustment
□ Applicable √N/A
No such case during the reporting period.
(2) Contracting
□ Applicable √N/A
No such case during the reporting period.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
(3) Leasing
□ Applicable √N/A
No such case during the reporting period.
√ Applicable □ N/A
Unit: RMB ten thousand yuan
External guarantees of the Company and its subsidiaries (excluding guarantees for subsidiaries)
Disclosure
Counter
date of the Guarante
-guarant
announcem Actual date Actual e for a
guaranteed Guarantee Type of Collateral ee Period of Fulfilled
ent related of guaranteed related
party Cap guarantee (if any) situatio guarantee or not
to the occurrence amount party or
n (if
guarantee not
any)
Cap
/ / / / / / / / / / /
Total amount of external Total actual amount of
guarantees approved external guarantees
/ /
during the reporting during the reporting
period (A1) period (A2)
Total amount of
Total actual balance of
approved external
external guarantees at
guarantees at the end of / /
the end of the reporting
the reporting period
period (A4)
(A3)
The Company’s guarantees for its subsidiaries
Disclosure
Counter
date of the Guarante
-guarant
announcem Actual date Actual e for a
guaranteed Guarantee Type of Collateral ee Period of Fulfilled
ent related of guaranteed related
party Cap guarantee (if any) situatio guarantee or not
to the occurrence amount party or
n (if
guarantee not
any)
Cap
Hangzhou
Zhongmei Joint
April 21, June 01,
Huadong 80,000 27,652 liability One year No No
Pharmaceut guarantee
ical Co.,
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Ltd.
Huadong
Joint
Ningbo April 21, June 01,
Medicine 2021 2021
guarantee
Co., Ltd.
Huadong
Joint
Ningbo April 28, December
Medicine 2020 18, 2020
guarantee
Co., Ltd.
Huadong
Joint
Ningbo April 28, November
Medicine 2020 20, 2020
guarantee
Co., Ltd.
Huadong
Joint
Ningbo April 28, October 23,
Medicine 2020 2020
guarantee
Co., Ltd.
Huadong
Joint
Ningbo April 28, October 28,
Medicine 2020 2020
guarantee
Co., Ltd.
Huadong
Joint
Ningbo April 28, October 21,
Medicine 2020 2020
guarantee
Co., Ltd.
Huadong
Joint
Ningbo April 28, October 14,
Medicine 2020 2020
guarantee
Co., Ltd.
Huadong
Joint
Ningbo April 28, September
Medicine 2020 23, 2020
guarantee
Co., Ltd.
Huadong
Joint
Ningbo April 28, September
Medicine 2020 04, 2020
guarantee
Co., Ltd.
Huadong
Joint
Ningbo April 28, September
Medicine 2020 25, 2020
guarantee
Co., Ltd.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Huadong
Joint
Ningbo April 28, February
Medicine 2020 03, 2021
guarantee
Co., Ltd.
Huadong
Joint
Ningbo April 28, June 28,
Medicine 2020 2020
guarantee
Co., Ltd.
Huadong
Joint
Ningbo April 28, June 28,
Medicine 2020 2020
guarantee
Co., Ltd.
Huadong
Joint
Ningbo April 28, July 02,
Medicine 2020 2020
guarantee
Co., Ltd.
Huadong
Joint
Ningbo April 28, July 02,
Medicine 2020 2020
guarantee
Co., Ltd.
Huadong
Joint
Medicine April 21,
Wenzhou 2021
guarantee
Co., Ltd.
Hangzhou
Huadong Joint
April 21, May 31,
Pharmacy 5,000 2,300 liability One year No No
Chain Co., guarantee
Ltd.
Huadong
Medicine
(Xi’an) Joint
April 21,
Bohua 5,000 0 liability One year No No
Pharmaceut guarantee
ical Co.,
Ltd.
Jiangsu
Joint
Jiuyang April 21,
Biopharm 2021
guarantee
Co., Ltd.
Huadong April 21, 15,000 Joint One year No No
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Medicine 2021 liability
Ningbo guarantee
Sales Co.,
Ltd.
Huadong
Joint
Medicine April 21,
Huzhou 2021
guarantee
Co., Ltd.
Huadong
Joint
Medicine April 21,
Shaoxing 2021
guarantee
Co., Ltd.
Huadong
Medicine
Supply
Joint
Chain April 21,
Manageme 2021
guarantee
nt
(Hangzhou)
Co., Ltd.
Huadong
Medicine
Supply Joint
April 19,
Chain 20,000 0 liability Ten years No No
Manageme guarantee
nt (JinHua)
Co., Ltd.
Huadong
Joint
Medicine April 21, May 31,
Lishui Co., 2021 2021
guarantee
Ltd.
Huadong
Joint
Medicine April 21, May 11,
Lishui Co., 2021 2021
guarantee
Ltd.
Huadong
Medicine
Joint
(Hangzhou) April 21,
Biological 2021
guarantee
Products
Co., Ltd.
Hangzhou April 21, 70,000 June 01, 25,162 Joint One year No No
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Zhongmei 2021 2021 liability
Huadong guarantee
Pharmaceut
ical
Jiangdong
Co., Ltd.
Huadong
Joint
Medicine April 21,
Jinhua Co., 2021
guarantee
Ltd.
Huadong
Medicine Joint
April 21,
Cunde 12,000 0 liability One year No No
(Zhoushan) guarantee
Co., Ltd.
Huadong
Joint
Medicine April 21,
Daishan 2021
guarantee
Co., Ltd.
Sinclair Joint
September April 01, three
Pharma 15,000 9,586 liability No No
Limited guarantee
Sinclair Joint
November May 01, three
Pharma 40,000 17,429 liability No No
Limited guarantee
Sinclair Joint
March 16, April 01, three
Pharma 50,050 35,824 liability No No
Limited guarantee
Total guarantee cap for Total actual guarantee
subsidiaries approved amount for
during the reporting subsidiaries during the
period (B1) reporting period (B2)
Total approved Total actual guarantee
guarantee cap for balance for
subsidiaries at the end of subsidiaries at the end of
the reporting period (B3) the reporting period (B4)
Subsidiariesguarantee for subsidiaries
Disclosure Counter Guarante
Actual date Actual
guaranteed date of the Guarantee Type of Collateral -guarant Period of Fulfilled e for a
of guaranteed
party announcem Cap guarantee (if any) ee guarantee or not related
occurrence amount
ent related situatio party or
The Half Year Report 2021 of Huadong Medicine Co., Ltd
to the n (if not
guarantee any)
Cap
Hangzhou
Zhongmei
Huadong Joint
April 21,
Pharmaceut 20,000 liability One year No No
ical guarantee
Jiangdong
Co., Ltd.
Total guarantee cap for Total actual guarantee
subsidiaries approved amount for
during the reporting subsidiaries during the
period (C1) reporting period (C2)
Total approved Total actual guarantee
guarantee cap for balance for
subsidiaries at the end of subsidiaries at the end of
the reporting period (C3) the reporting period (C4)
Total amount of the Company’s guarantees (i.e. the sum of the above-mentioned 3 kinds of guarantees)
Total actual guarantee
Total guarantees cap approved
amount during the
during the reporting period 416,750 111,659
reporting period
(A1+B1+C1)
(A2+B2+C2)
Total actual guarantee
Total approved guarantee cap
balance at the end of
at the end of the reporting period 491,750 141,880
the reporting period
(A3+B3+C3)
(A4+B4+C4)
Proportion of the actual guarantee amount (i.e.
A4+B4+C4) in the Company’s net assets
Including:
Balance of guarantees for shareholders, actual
/
controllers and their related parties (D)
Amount of debt guarantees provided directly or
indirectly for the entities with a liability-to asset 112,000
ratio over 70% (E)
The total amount of guarantees exceeds 50% of
/
the net assets (F)
Total guarantee amount of the above-mentioned
three kineds of guarantees (D+E+F)
For the unexpired guarantee, a guarantee liability /
The Half Year Report 2021 of Huadong Medicine Co., Ltd
has occurred or there may be a joint liability for
satisfaction during the reporting period (if any)
Note of external guarantees in violation of
/
prescribed procedures (if any)
□ Applicable √N/A
No such case during the reporting period.
□ Applicable √N/A
□ Applicable √N/A
No such case during the reporting period.
XIII. Other major events
□ Applicable √N/A
During the reporting period, the company did not have other major matters that need to be explained.
XIV. Major events of subsidiaries
□ Applicable √N/A
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Section VII. Share Change and Shareholders
I. Changes in Share Capital
Unit: share
Before the change Change in the period (+/-) After the change
Capital
Number of New Bonus reserve Number Proportio
Proportion Other Subtotal
shares shares share conversio of shares n
n
I. Shares subject to
conditional restriction
state-owned corporations
domestic investors
Including: held by
domestic corporations
held by domestic
natural persons
investors
Including: held by
overseas corporations
held by overseas
natural persons
II. Shares without 1,749,761, 1,749,761
restriction 803 ,803
foreign shares
overseas
The Half Year Report 2021 of Huadong Medicine Co., Ltd
III. Total number of shares 100.00% 0 0 0 0 0 100.00%
Reasons for the changes in share capital
□ Applicable √N/A
Approval for changes in share capital
□ Applicable √N/A
Transfer of shares
□ Applicable √N/A
Progress of share repurchase
□ Applicable √N/A
Progress of reducing repurchased shares through centralized bidding
□ Applicable √N/A
Effects of changes in share capital on the basic earnings per share, diluted earnings per share for the most recent year and the most
recent period, the net assets per share attributable to the Company’s shareholders of common shares and other financial indicators
□ Applicable √N/A
Other disclosures the Company deems necessary or required by securities regulatory authorities
□ Applicable √N/A
□ Applicable √N/A
II. Issuance and listing of securities
□ Applicable √N/A
III. Total number of shareholders and their shareholdings
Unit: share
Total number of preference
Total number of common shareholders with restoration of
shareholderss at the end of the 194,208 the voting rights at the end of 0
reporting period the reporting period (if any) (see
Note 8)
Particulars about shareholders with a shareholding ratio over 5% or the Top 10 shareholders
Total The The number Pledged, marked or frozen
Changes
Share- common number of of common
Name of Nature of in the
holding shares common shares held
shareholder shareholder reporting Status Amount
ratio held at the shares without
period
end of the held with trading
The Half Year Report 2021 of Huadong Medicine Co., Ltd
reporting trading restriction
period restriction
s
Domestic
China Grand 730,938,1
non-state-owned 41.77% 0 0 730,938,157 Pledged 220,450,000
Enterprises, Inc. 57
corporation
Hangzhou
Huadong State-owned 284,000,0
Medicine Group corporation 00
Co., Ltd.
Hong Kong
Securities Overseas 36,743,86 -1,555,75
Clearing corporation 32
Company Ltd.
China Securities Domestic
Finance Co., non-state-owned 1.27% 0 0 22,186,818
Ltd. corporation
National Social
Security Fund Others 0.45% 7,926,311 0 0 7,926,311
Portfolio 602
domestic natural
# Yang Yushan 0.29% 5,000,000 5,000,000 0 5,000,000
persons
Industrial and
Commercial
Bank of China
— CUAM
Operation
Strategy
Others 0.28% 4,835,665 4,835,665 0 4,835,665
Placement
Flexible
Allocation
Mixed
Securities
Investment
Fund (LOF)
Hua Life
Insurance Co.,
Others 0.22% 3,780,104 3,780,104 0 3,780,104
Ltd. — own
funds
#Chen domestic natural 0.21% 3,744,388 -20,000 0 3,744,388
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Shaoming persons
National Social
-3,999,77
Security Fund Others 0.17% 3,000,000 0 3,000,000
Portfolio 503
Strategic investors or general
corporations become the top 10
N/A
shareholders due to the placement
of new shares (if any) (see Note 3)
Explanation on associated
relationships or concerted actions The Company does not know whether the above-mentioned shareholders are related parties or
among the above-mentioned whether they are acting-in-concert parties with one another.
shareholders
Description about above-mentioned
shareholders’ entrusting/being
N/A
entrusted with and waiving voting
rights
Special instructions for the
existence of special repurchase
N/A
accounts among the top 10
shareholders (if any) (see Note 11)
Shareholding of the top 10 shareholders without trading restriction conditions
Number of the trading unrestricted stocks held at the Type of stocks
Name of shareholder
end of the Report Period Type of stocks Amount
RMB ordinary
China Grand Enterprises, Inc. 730,938,157 730,938,157
stocks
Hangzhou Huadong Medicine RMB ordinary
Group Co., Ltd. stocks
Hong Kong Securities Clearing RMB ordinary
Company Ltd. stocks
RMB ordinary
China Securities Finance Co., Ltd. 22,186,818 22,186,818
stocks
National Social Security Fund RMB ordinary
Portfolio 602 stocks
RMB ordinary
# Yang Yushan 5,000,000 5,000,000
stocks
Industrial and Commercial Bank of
China — CUAM 3-year Closed
RMB ordinary
Operation Strategy Placement 4,835,665 4,835,665
stocks
Flexible Allocation Mixed
Securities Investment Fund (LOF)
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Hua Life Insurance Co., Ltd. — RMB ordinary
own funds stocks
RMB ordinary
#Chen Shaoming 3,744,388 3,744,388
stocks
National Social Security Fund RMB ordinary
Portfolio 503 stocks
Description of the related
relationship or concerted action
between the top 10 common
shareholders of unrestricted shares, The Company does not know whether the above-mentioned shareholders are related parties or
and between the top 10 common whether they are acting-in-concert parties with one another.
shareholders of unrestricted shares
and the top 10 common
shareholders
The second major shareholder of the Company, Hangzhou Huadong Medicine Group Co.,
Ltd., holds 288,000,000 shares of the Company, accounting for 16.46% of the Company’s
Description of the participation in total capitalization. As of the end of the reporting period, 4,000,000 shares thereof were
margin trading business of the top subject to refinancing securities lending transactions in China Securities Finance Corporation
(see Note 4) Company’s Top 10 common shareholders, held 5,000,000 shares of the Company through
securities margin accounts, and Chen Shaoming, the ninth shareholder, held 3,651,388 shares
of the Company in the same manner.
Whether the Company’s Top 10 common shareholders or the Top 10 common shareholders without trading restriction have carried
out any agreement to repurchase transaction during the reporting period
□ Yes √ No
No such case during the reporting period.
IV. Changes in shareholding of directors, supervisors and senior managers
□ Applicable √N/A
No such case during the reporting period. For details, please refer to the 2020 Annual Report.
V. Changes in controlling shareholders or actual controllers
Change of controlling shareholder during the reporting period
□ Applicable √N/A
No such case during the reporting period.
Change of actual controller during the reporting period
□ Applicable √N/A
No such case during the reporting period.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Section VIII. Preferred Shares
□ Applicable √N/A
No such case during the reporting period.
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Section IX. Information about Bonds
□ Applicable √N/A
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Section X. Financial Report
I. Audit report
Whether the half year report was audited
□ Yes √ No
The Company’s half year report was not audited.
II. Financial statements
The currency unit of statements in the financial notes is: RMB yuan.
Prepared by: Huadong Medicine Co., Ltd.
June 30, 2021
Unit: RMB yuan
Item June 30, 2021 December 31, 2020
Current assets:
Cahs and bank balances 3,269,314,047.58 3,198,080,997.82
Settlement reserve
Lending to other banks and other
financial institutions
Financial assets for trade
Derivative financial assets
Notes receivable
Accounts receivable 6,871,300,450.79 6,137,675,568.82
Accounts receivable for financing 530,122,144.99 828,659,217.25
Prepayments 213,421,350.99 250,916,482.07
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve
receivable
Other receivables 114,697,517.74 87,269,489.82
Including: Interests receivable 6,326,425.78
Dividends receivable 832,286.37 4,195,666.37
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Financial assets purchased for
resale
Inventories 4,130,364,327.93 4,067,635,254.80
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 44,928,681.66 85,654,691.58
Total current assets 15,174,148,521.68 14,655,891,702.16
Non-current assets:
Loans and prepayments issuance
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 947,007,338.50 850,072,053.02
Other equity instrument
investments
Other non-current financial assets
Real estate properties for
investment
Fixed assets 2,668,749,549.01 2,420,366,582.92
Constructions in progress 2,000,163,547.28 2,240,201,926.65
Biological assets for production
Oil & gas assets
Right-of-use assets 128,934,858.91
Intangible assets 1,645,727,476.51 1,463,242,463.99
Development expenditures
Goodwill 2,100,106,651.09 1,469,617,262.10
Long-term unamortized expenses 11,043,633.03 8,811,339.43
Deferred tax assets 151,508,607.37 137,829,774.40
Other non-current assets 1,027,839,790.27 712,069,194.08
Total non-current assets 10,934,029,568.19 9,545,456,452.59
Total assets 26,108,178,089.87 24,201,348,154.75
Current liabilities:
Short-term borrowing 1,386,401,620.12 1,416,932,884.87
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Borrowing from the central bank
Borrowing from other banks and
other financial institutions
Financial liabilities for trade
Derivative financial liabilities
Notes payable 979,859,751.59 554,336,058.71
Accounts payable 4,018,087,903.17 3,947,044,331.68
Receipts in Advance 2,002,944.53 951,926.56
Contract liabilities 53,923,017.30 94,384,629.77
Financial assets sold for
repurchase
Absorbing deposits and due from
banks
Receipts for buying and selling
securities as proxy
Receipts for underwriting
securities as proxy
Payroll payable 116,950,830.93 152,106,819.91
Taxes payable 623,460,837.87 571,792,475.80
Other payables 1,764,290,228.84 1,817,529,820.99
Including: Interests payable
Dividends payable 224,219.60 224,219.60
Handling fees and commissions
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within
one year
Other current liabilities 6,752,043.58 10,786,034.37
Total current liabilities 8,995,002,658.61 8,633,678,869.34
Non-current liabilities:
Insurance policy reserve
Long-term borrowing 477,876,860.08 151,611,367.86
Bonds payable
Including: Preferred shares
Perpetual bonds
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Lease liabilities 82,245,770.91
Long-term payables 157,449,847.67 26,812,354.90
Long-term employee benefits
payable
Provisions 38,277,744.27 39,467,829.23
Deferred income 86,144,877.82 81,628,032.54
Deferred tax liabilities 83,108,397.29 88,738,187.41
Other non-current liabilities
Total non-current liabilities 925,103,498.04 388,257,771.94
Total liabilities 9,920,106,156.65 9,021,936,641.28
Owners’ Equity:
Share capital 1,749,809,548.00 1,749,809,548.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 2,158,080,661.07 2,158,080,661.07
Less: Treasury shares
Other comprehensive income 44,251,842.19 -2,191,069.45
Special reserve
Surplus reserves 861,680,578.42 861,680,578.42
General risk reserve
Retained earnings 10,753,451,519.08 9,852,441,590.56
Total owners’ equity attributable to
owner of the Company
Minority interest 620,797,784.46 559,590,204.87
Total owners’ equity 16,188,071,933.22 15,179,411,513.47
Total liabilities & owners’ equity 26,108,178,089.87 24,201,348,154.75
Legal representative: Lv Liang
Person in charge of accounting work: Lv Liang
Person in charge of the Accounting Department: Qiu Renbo
Unit: RMB yuan
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Item June 30, 2021 December 31, 2020
Current assets:
Cash and bank balances 1,500,810,612.41 1,889,264,142.30
Financial assets for trade
Derivative financial assets
Notes receivable
Accounts receivable 3,572,579,601.70 3,287,882,027.51
Accounts receivable for financing 231,103,545.66 214,871,707.01
Prepayments 54,030,047.36 121,268,106.62
Other receivables 863,943,656.30 798,152,353.96
Including: Interests receivable 3,810,555.56
Dividends receivable 3,363,380.00
Inventories 1,875,097,391.72 1,845,977,070.46
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 14,830.80
Total current assets 8,097,579,685.95 8,157,415,407.86
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 4,925,884,087.36 4,847,172,288.65
Other equity instrument
investments
Other non-current financial assets
Real estate properties for
investment
Fixed assets 156,295,538.13 159,486,234.04
Constructions in progress 2,016,101.54 342,161.41
Biological assets for production
Oil & gas assets
Right-of-use assets 11,446,169.18
Intangible assets 52,496,891.26 56,448,575.54
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Development expenditures
Goodwill
Long-term unamortized expenses 486,793.30 645,902.07
Deferred tax assets 50,432,935.67 45,918,388.57
Other non-current assets 137,966,017.50 96,882,664.08
Total non-current assets 5,439,229,736.65 5,309,334,533.39
Total assets 13,536,809,422.60 13,466,749,941.25
Current liabilities:
Short-term borrowing 610,340,666.97 930,813,369.36
Financial liabilities for trade
Derivative financial liabilities
Notes payable 201,919,106.24 180,042,270.63
Accounts payable 2,476,104,386.33 2,421,476,904.57
Receipts in advance
Contract liabilities 19,475,506.65 32,577,236.92
Payroll payable 2,907,977.80 8,530,961.48
Taxes payable 73,709,247.43 154,676,067.87
Other payables 200,923,749.27 518,390,330.44
Including: Interests payable
Dividends payable 224,219.60 224,219.60
Liabilities held for sale
Non-current liabilities due within
one year
Other current liabilities 2,484,687.36 4,273,258.99
Total current liabilities 3,587,865,328.05 4,250,780,400.26
Non-current liabilities:
Long-term borrowing
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 9,417,965.84
Long-term payables
Long-term employee benefits
payable
Provision
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Deferred income 39,415,973.49 40,698,910.95
Deferred tax liabilities 10,888,106.00 10,888,106.00
Other non-current liabilities
Total non-current liabilities 59,722,045.33 51,587,016.95
Total liabilities 3,647,587,373.38 4,302,367,417.21
Owners’ Equity:
Share capital 1,749,809,548.00 1,749,809,548.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 2,168,451,528.01 2,168,451,528.01
Less: Treasury shares
Other comprehensive income 3,051,311.29 3,051,311.29
Special reserve
Surplus reserves 939,536,337.86 939,536,337.86
Retained earnings 5,028,373,324.06 4,303,533,798.88
Total owners’ equity 9,889,222,049.22 9,164,382,524.04
Total liabilities & owners’ equity 13,536,809,422.60 13,466,749,941.25
Unit: RMB yuan
Item Current period in 2021 Previous period in 2020
I. Total operating income 17,179,437,902.61 16,660,934,157.64
Including: Operating revenue 17,179,437,902.61 16,660,934,157.64
Interests received
Premiums earned
Handling fees and
commissions received
II. Total operating cost 15,638,788,710.40 14,896,020,510.59
Including: Operating cost 11,589,419,896.59 10,681,089,643.50
Interests paid
Handling fees and
commissions paid
Surrender value
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Net payment of insurance
claims
Net appropriation of policy
reserve
Policy dividends paid
Reinsurance expenses
Business taxes and
surcharges
Selling expenses 2,978,753,751.45 3,109,911,383.02
Administrative expenses 534,683,411.33 506,362,613.35
Research and
Development(R&D) expenses
Financial expenses 9,789,580.87 17,531,072.80
Including: Interests
expenses
Interests income 38,453,252.17 30,675,897.56
Add: Other income 137,364,653.52 93,032,855.48
Investment income (Losses are
-54,458,950.28 -10,002,163.90
indicated by “-”)
Including: Investment gains
(losses) in associated enterprise and -22,852,478.03 -3,173,963.23
joint-venture enterprise
Gains on the
derecognition of financial assets
measured at amortized cost
Gains on exchange (Losses are
indicated by “-”)
Gains on net exposure hedging
(Losses are indicated by “-”)
Gains on changes in fair value
(Losses are indicated by “-”)
Credit impairment losses
-38,263,673.24 -29,841,283.63
(Losses are indicated by “-”)
Impairment losses of assets
(Losses are indicated by “-”)
Gains on assets disposal
(Losses are indicated by “-”)
III. Operating profit (Losses are indicated 1,588,528,336.21 2,119,269,312.18
The Half Year Report 2021 of Huadong Medicine Co., Ltd
by “-”)
Add: Non-operating income 834,874.23 10,190,295.80
Less: Non-operating expenses 6,126,908.04 20,122,066.85
IV. Total profit (Total losses are indicated
by “-”)
Less: Income tax expenses 240,728,486.55 334,125,800.82
V. Net profit (Net losses are indicated by
“-”)
(I) Classification by continuous
operations
operations (Net losses are indicated by 1,342,507,815.85 1,775,211,740.31
“-”)
operations (Net losses are indicated by
“-”)
(II) Classification by attribution of
ownership
of the parent company
minority shareholders
VI. Other comprehensive income, net of
income tax
Other comprehensive income
attributable to owners of the parent 49,562,711.35 38,749,338.23
company, net of tax
(I) Other comprehensive income that
cannot be reclassified into gains/losses
on the defined benefit plan
income that cannot be reclassified into
gains/losses under equity method
other equity instrument investments
credit risk of the enterprise
The Half Year Report 2021 of Huadong Medicine Co., Ltd
(II) Other comprehensive income to
be reclassified into gains/losses
income that can be reclassified into
gains/losses under equity method
other debt investments
reclassified into other comprehensive
income
of other debt investments
arising on conversion of financial
statements denominated in foreign
currencies
Net amount after tax of other
comprehensive income attributable to
minority shareholders
VII. Total comprehensive income 1,392,070,527.20 1,813,961,078.54
Total comprehensive income
attributable to owners of the parent 1,349,909,036.20 1,769,934,059.48
company
Total comprehensive income
attributable to minority shareholders
VIII. Earnings per share (EPS):
(I) Basic EPS 0.7431 0.9894
(II) Diluted EPS 0.7431 0.9894
As for enterprise merger under the same control in the current period, the net profit generated by the merged party before the merger
is 0.00 yuan, and that generated during the previous period is 0.00 yuan.
Legal representative: Lv Liang
Person in charge of accounting work: Lv Liang
Person in charge of the Accounting Department: Qiu Renbo
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Unit: RMB yuan
Item Current period in 2021 Previous period in 2020
I. Total operating income 8,825,456,287.77 7,916,714,385.48
Less: Total operating cost 8,358,026,557.10 7,486,315,469.35
Business taxes and surcharges 8,620,356.90 12,247,764.43
Selling expenses 183,609,392.52 156,652,760.76
Administrative expenses 84,417,643.06 69,866,518.00
Research and Development
(R&D) expenses
Financial expenses 3,945,113.42 17,433,290.41
Including: Interests
expenses
Interests income 25,469,215.21 19,437,282.41
Add: Other income 3,491,044.84 10,042,695.77
Investment income (Losses
are indicated by “-”)
Including: Investment gains
(losses) in associated enterprise and -488,201.29
joint-venture enterprise
Gains on the
derecognition of financial assets
measured at amortized cost (Losses are
indicated by “-”)
Gains on net exposure
hedging (Losses are indicated by “-”)
Gains from changes in fair
values (Losses are indicated by “-”)
Credit impairment losses
-37,061,514.45 25,531,116.40
(Losses are indicated by “-”)
Impairment gains (losses) of
assets (Losses are indicated by “-”)
Asset disposal income
-24,172.29 -6,556.33
(Losses are indicated by “-”)
II. Operating profit (Losses are
indicated by “-”)
Add: Non-operating income 3,934.06 4,902,319.33
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Less: Non-operating expenses 232,283.92 6,681,349.13
III. Total profit (Total losses are
indicated by “-”)
Less: Income tax expenses 38,782,555.89 53,781,016.19
IV. Net profit (Net losses are indicated
by “-”)
(I) Net profit from continuous
operations (Net losses are indicated by 1,127,295,721.22 1,321,718,893.95
“-”)
(II) Net profit from discontinued
operations (Net losses are indicated by
“-”)
V. Other comprehensive income, net of
income tax
(I) Other comprehensive income
that cannot be reclassified into
gains/losses
remeasurement on the defined benefit
plan
income that cannot be reclassified into
gains/losses under equity method
other equity instrument investments
credit risk of the enterprise
(II) Other comprehensive income
to be reclassified into gains/losses
income that can be reclassified into
gains/losses under equity method
other debt investments
assets reclassified into other
comprehensive income
The Half Year Report 2021 of Huadong Medicine Co., Ltd
reserve of other debt investments
reserve
from translation of foreign currency
financial statements
VI. Total comprehensive income 1,127,295,721.22 1,321,718,893.95
VII. Earnings per share (EPS):
(I) Basic EPS
(II) Diluted EPS
Unit: RMB yuan
Item Current period in 2021 Previous period in 2020
I. Cash flows from operating activities：
Cash received from sale of goods
or rendering of services
Net increase in customer deposits
and due from banks
Net increase in borrowing from the
central bank
Net increase in borrowing from
other financial institutions
Cash from the premium of the
original insurance policy
Net cash from reinsurance
Net increase in deposits and
investment of the insured
Cash from interests, handling fees
and commissions
Net increase in borrowing from
other banks and other financial
institutions
Net increase in funds for
repurchase
Net cash received for buying and
The Half Year Report 2021 of Huadong Medicine Co., Ltd
selling securities as proxy
Receipts of tax refunds 1,862,175.25 15,546,329.17
Other cash receipts to operating
activities
Sub-total of Cash inflows from
operating activities
Cash payments for goods
purchased and services received
Net increase in customer loans and
prepayments
Net increase in deposits of central
bank and due from banks
Cash payments for original
insurance claims
Net increase in lending to other
banks and other financial institutions
Cash payments for interests,
handling fees and commissions
Cash payments for policy
dividends
Cash payments to and on behalf of
employees
Payments of various types of taxes 1,022,924,459.48 1,417,914,481.02
Other cash payments in relation to
operating activities
Sub-total of cash outflows for operating
activities
Net cash flow from operating activities 1,738,512,372.11 1,255,542,667.29
II. Cash flows from investing activities
Cash receipts from recovery of
investments
Cash receipts from investment
income
Net cash from disposal of fixed
assets, intangible assets and other 407,737.22 347,790,583.31
long-term assets
Net cash from disposal of
subsidiaries and other business units
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Other cash receipts in relation to
investing activities
Sub-total of cash inflows from investing
activities
Cash payments for purchase and
construction of fixed assets, intangible 403,137,637.26 522,164,019.70
assets and other long-term assets
Cash payments for investment 120,706,000.00 70,535,000.00
Net increase in pledge loans
Net cash paid for acquisition of
subsidiaries and other business units
Other cash payments in relation to
investing activities
Sub-total of cash outflows for investing
activities
Net cash flow from investing activities -1,297,044,289.24 -374,008,436.39
III. Cash flows from financing
activities:
Cash receipts from capital
contributions
Including: Cash receipts from
capital contributions from minority
owners of subsidiaries
Cash from borrowing 1,421,047,085.43 1,681,800,534.35
Other cash receipts in relation to
financing activities
Sub-total of cash inflows from
financing activities
Cash repayment of borrowings 1,309,701,912.43 1,851,002,797.43
Cash payments for distribution of
dividends or profits or settlement of 472,827,211.26 605,214,724.28
interest expenses
Including: Dividends and profits
paid by subsidiaries to minority 49,000,000.00
shareholders
Other cash payments in relation to
financing activities
Sub-total of cash outflows from 1,787,953,199.73 2,765,157,566.25
The Half Year Report 2021 of Huadong Medicine Co., Ltd
financing activities
Net cash flows from financing activities -366,906,114.30 -743,357,031.90
IV. Effect of foreign exchange rate
-423,905.66 40,923,061.58
changes on Cash and Cash Equivalents
V. Net increase in cash and cash
equivalents
Add: Opening balance of cash and
cash equivalents
VI. Closing balance of cash and cash
equivalents
Unit: RMB yuan
Item Current period in 2021 Previous period in 2020
I. Cash flows from operating activities：
Cash receipts from the sale of
goods and the rendering of services
Receipts of tax refund
Other cash receipts in relation to
operating activities
Sub-total of cash inflows from
operating activities
Cash payments for goods acquired
and services received
Cash payments to and on behalf of
employees
Payments of various types of
taxes
Other cash payments in relation to
operating activities
Sub-total of cash outflows for operating
activities
Net cash flow from operating activities -429,990,813.48 209,599,445.45
II. Cash flows from investing activities
Cash receipts from recovery of
investments
Cash receipts from investment 1,003,363,380.00 601,000,000.00
The Half Year Report 2021 of Huadong Medicine Co., Ltd
income
Net cash receipts from disposal of
fixed assets, intangible assets and other 237,307.57 45,538.08
long-term assets
Net cash from disposal of
subsidiaries and other business units
Other cash receipts in relation to
investing activities
Sub-total of cash inflows from investing
activities
Cash payments for purchase and
construction of fixed assets, intangible 23,188,911.97 13,910,582.10
assets and other long-term assets
Cash payments for investment 79,200,000.00 74,281,870.80
Net cash paid for acquisition of
subsidiaries and other business units
Other cash payments in relation to
investing activities
Sub-total of cash outflows for investing
activities
Net cash flows from investing activities 830,940,286.12 655,644,857.31
III. Cash flows from financing
activities:
Cash receipts from absorbing
investments
Cash receipts from borrowing 559,345,278.50 1,040,651,082.42
Other cash receipts in relation to
financing activities
Sub-total of cash inflows from
financing activities
Cash repayments of borrowings 879,341,384.32 1,165,656,610.43
Cash payments for distribution of
dividends or profits or settlement of 456,826,281.28 545,718,585.88
interest expenses
Other cash payments in relation to
financing activities
Sub-total of cash outflows
fromfinancing activities
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Net cash flow from financing activities -789,365,585.98 -432,130,901.40
IV. Effect of foreign exchange rate
-37,416.55 1,987,917.74
changes on Cahs and Cash Equivalents
V. Net increase in cash and cash
-388,453,529.89 435,101,319.10
equivalents
Add: Opening balance of cash and
cash equivalents
VI. Closing balance of cash and cash
equivalents
Amount in the current period
Unit: RMB yuan
Amount for the first half of 2021
Ownership interest attributable to the parent company
Other equity Other Total
Minori
instruments Less: compr owners
Item Share Specia Surplu Genera Undist ty
Capital Treasu ehensi hip
Prefe Perpe
capita l l risk ributed Others Total interes
s
interes
rred tual Other reserve ry ve
t
l reserve reserve reserve profit
shares incom t
share bond s
s s e
I. Balance at the 1,749
end of the ,809, -2,191,
period of the 548.0 069.45
prior year 0
Add:
changes in
accounting
policies
Error
correction in the
prior periods
Merger of
enterprises
under the same
control
Others
The Half Year Report 2021 of Huadong Medicine Co., Ltd
II. Balance at 1,749
the beginning of ,809, -2,191,
the period of the 548.0 069.45
current year 0
III. Amount of
change in the
current period
,911.6 9,928. 2,840. ,579.5 660,41
(Decreases are
indicated by
“-”)
(I) Total 49,562 1,300, 1,349, 42,161 1,392,
comprehensive ,711.3 346,32 909,03 ,491.0 070,52
income 5 4.85 6.20 0 7.20
(II) Capital
contributed by 19,046 19,046
owners and ,088.5 ,088.5
capital 9 9
decreases
shares invested
by owners
invested by
holders of other
equity
instruments
share-based
payment
included in
ownership
interest
-402,4 -402,4 -402,4
(III) Profit
distribution
.04 .04 .04
of surplus
reserve
The Half Year Report 2021 of Huadong Medicine Co., Ltd
of general risk
reserve
to owners (or 56,196 56,196 56,196
shareholders) .04 .04 .04
(IV) Internal
conversion of -3,119, 3,119,
ownership 799.71 799.71
interest
share capital)
increase from
capital reserve
conversion
share capital)
increase from
surplus reserve
conversion
losses by
surplus reserve
earnings from
transfer of
changes in the
defined benefit
plan
earnings from
-3,119, 3,119,
transfer of other
comprehensive
income
(V) Special
reserve
in the current
period
The Half Year Report 2021 of Huadong Medicine Co., Ltd
current period
(VI) Others
IV. Balance at 2,158, 44,251 861,68 10,753 15,567 620,79 16,188
,809,
the end of the 080,66 ,842.1 0,578. ,451,5 ,274,1 7,784. ,071,9
current period 1.07 9 42 19.08 48.76 46 33.22
Amount in the previous period
Unit: RMB yuan
Amount for the first half of 2020
Ownership interest attributable to the parent company
Other equity Other
Total
instruments Less: compr Minorit
Item owners
Share Specia Surplu Genera Undist
Capital Treasu ehensi y
Prefe Perp hip
capita l s l risk ributed Others Total
interest
rred etual Other reserve ry ve
interest
l reserve reserve reserve profit
share bond s shares incom
s s e
I. Balance at 1,749
the end of the ,809, 557,146
period of the 548.0 ,931.87
prior year 0
Add:
Changes in
accounting
policies
Error
correction in
the prior
periods
Merger of
enterprises
under the same
control
Others
II. Balance at 1,749
the beginning ,809, 557,146
of the period of 548.0 ,931.87
the current year 0
The Half Year Report 2021 of Huadong Medicine Co., Ltd
III. Amount of
change in the
current period -218,6 -7,285,
,338.2 238,04 768,76 83,594.
(Decreases are 23.93 167.82
indicated by
“-”)
(I) Total 38,749 1,731, 1,769, 1,813,9
comprehensive ,338.2 184,72 934,05 61,078.
income 3 1.25 9.48 54
(II) Capital
contributed by
owners and
capital
decreases
shares invested
by owners
invested by
holders of other
equity
instruments
share-based
payment
included in
ownership
interest
-489,9 -489,9 -538,94
(III) Profit -49,000
distribution ,000.00
.44 .44 4
of surplus
reserve
of general risk
reserve
-49,000
to owners (or 46,673 46,673 6,673.4
,000.00
shareholders) .44 .44 4
The Half Year Report 2021 of Huadong Medicine Co., Ltd
(IV) Internal
conversion of
ownership
interest
share capital)
increase from
capital reserve
conversion
share capital)
increase from
surplus reserve
conversion
losses by
surplus reserve
earnings from
transfer of
changes in the
defined benefit
plan
earnings from
transfer of
other
comprehensive
income
(V) Special
reserve
in the current
period
current period
-218,6 -218,6 -2,312, -2,530,
(VI) Others
The Half Year Report 2021 of Huadong Medicine Co., Ltd
IV. Balance at 2,157, 61,541 710,35 8,909, 13,589 14,139,
,809, 549,861
the end of the 862,03 ,827.0 9,967. 672,69 ,246,0 107,834
current period 7.14 3 51 0.43 70.11 .16
Amount in the current period
Unit: RMB yuan
Amount for the first half of 2021
Other equity
Other
instruments Less: Undistr Total
Item Share Capital compreh Special Surplus
Preferr Perpet Treasury ibuted Others ownership
capital reserve ensive reserve reserve
ed ual Others shares profit interest
income
shares bonds
I. Balance at the 1,749,8 4,303,5
end of the period 09,548. 33,798.
of the prior year 00 88
Add:
Changes in
accounting
policies
Error
correction in the
prior periods
Others
II. Balance at the
beginning of the 2,168,45 3,051,31 939,536, 9,164,382,
period of the 1,528.01 1.29 337.86 524.04
current year
III. Amount of
change in the 724,83
current period 9,525.1
(Decreases are 8
indicated by “-”)
(I) Total 1,127,2
comprehensive 95,721.
income 22
(II) Capital
contributed by
owners and
The Half Year Report 2021 of Huadong Medicine Co., Ltd
capital decreases
shares invested
by owners
invested by
holders of other
equity
instruments
share-based
payment
included in
ownership
interest
-402,45
(III) Profit -402,456,1
distribution 96.04
surplus reserve
-402,456,1
owners (or 6,196.0
shareholders) 4
(IV) Internal
conversion of
ownership
interest
share capital)
increase from
capital reserve
conversion
share capital)
increase from
surplus reserve
conversion
losses by surplus
The Half Year Report 2021 of Huadong Medicine Co., Ltd
reserve
earnings from
transfer of
changes in the
defined benefit
plan
earnings from
transfer of other
comprehensive
income
(V) Special
reserve
the current
period
current period
(VI) Others
IV. Balance at 1,749,8 5,028,3
the end of the 09,548. 73,324.
current period 00 06
Amount in the previous period
Unit: RMB yuan
Amount for the first half of 2020
Other equity
Other
instruments Less: Undistrib Total
Item Share Capital compre Special Surplus
Preferr Perpet Treasur uted Others ownership
capital reserve hensive reserve reserve
ed ual Others y shares profit interest
income
shares bonds
I. Balance at the
end of the 847,526 788,215 3,431,594 8,138,919,3
period of the .06 ,726.95 ,974.14 03.16
prior year
Add:
Changes in
accounting
policies
The Half Year Report 2021 of Huadong Medicine Co., Ltd
Error
correction in
the prior
periods
Others
II. Balance at
the beginning 847,526 788,215 3,431,594 8,138,919,3
of the period of .06 ,726.95 ,974.14 03.16
the current year
III. Amount of
change in the
current period 831,772,2 831,772,22
(Decreases are 20.51 0.51
indicated by
“-”)
(I) Total
comprehensive
,893.95 93.95
income
(II) Capital
contributed by
owners and
capital
decreases
shares invested
by owners
invested by
holders of other
equity
instruments
share-based
payment
included in
ownership
interest
(III) Profit -489,946, -489,946,67
distribution 673.44 3.44
The Half Year Report 2021 of Huadong Medicine Co., Ltd
of surplus
reserve
-489,946, -489,946,67
to owners (or
shareholders)
(IV) Internal
conversion of
ownership
interest
share capital)
increase from
capital reserve
conversion
share capital)
increase from
surplus reserve
conversion
losses by
surplus reserve
earnings from
transfer of
changes in the
defined benefit
plan
earnings from
transfer of other
comprehensive
income
(V) Special
reserve
in the current
period
The Half Year Report 2021 of Huadong Medicine Co., Ltd
current period
(VI) Others
IV. Balance at 1,749, 2,168,4
the end of the 809,54 51,528.
.06 ,726.95 ,194.65 23.67
current period 8.00 01
Huadong Medicine Co., Ltd.
Chairman of the Board: Lv Liang
August 10, 2021
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