公告日期：2024-06-13

Huadong Medicine Co., Ltd.

2023AnnualReport

April 2024

ALetter to the Shareholders

Distinguished shareholders,

As time flies, we usher in a new year with endless possibilities. Over the past
year, we have witnessed and experienced profound changes brought by the era. The
pharmaceutical industry is marching towards a new track of increasingly healthy and
compliant high-quality development driven by continuous pressures it withstands,
accelerated industrial clearing due to medical anti-corruption, and continuously
increased values of innovative medicines. We are keenly aware that we can tide over
the difficulties only by constantly fostering our resilience for development, which
will be achieved through our down-to-earth efforts.

Since we started our innovation and transformation, we have gradually defined
development strategies for our four major business segments of pharmaceutical
industry, pharmaceutical business, aesthetic medicine and industrial microbiology.
Thanks to our consistent practice, we have transformed our innovative R&D system
from external introduction to “self-development + introduction” step by step and have
successfully achieved historic breakthrough in both innovative R&D team building
and its capacity, with an industry chain for the complete cycle of innovation medicine
R&D fostered. To date, we have established over 100 pharmaceutical product
pipelines, including more than 60 pipelines for innovative products, and built the
R&D ecology with Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd. as the
core.

In 2023, our constant efforts have been bearing fruits. The Liraglutide Injection
was successfully launched, and had its marketing authorization application for
diabetes, obesity or overweight applications approved successively, being the first of
its kind in China and playing a leading role in the GLP-1 track. In the meantime,
applications for launching of multiple blockbuster products were submitted.……
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