Hua Medicine Announces 2025 Interim Results

• Sales of HuaTangNing (华堂宁®) increased by 108% year-on-year, with net sales increasing by 112% year-on-year. Reimbursement coverage continued to expand, with a significant increase in prescription volumes across Tier 2 and Tier 3 hospitals, as our comprehensive commercialization strategy achieved significant results. • Following the termination of the exclusive promotion service agreement with Bayer, the Company recognized a one-time release of previously deferred income of RMB 1,243.5 million, achieving a profit of RMB 1,183.9 million for the first half of the year. This is the Company's first profit during the performance period. • A real-world study (BLOOM) involving 80 centers and 2,000 patients with Type 2 diabetes conducted in China further demonstrated the broad applicability and safety of dorzagliatin. • A registration application has been submitted in Hong Kong for Dorzagliatin 75mg (brand name: MYHOMSIS®, 華領片TM), aiming to extend its presence across Greater China and Southeast Asia. • Gross profit margin improved significantly, as production scale and operational efficiency continued to be optimized. SHANGHAI, Aug. 28, 2025 /PRNewswire/ -- Hua Medicine (the "Company", HKEx: 2552) announced the unaudited consolidated results of the Company and its subsidiaries for the six months ended June 30, 2025 (the "Reporting Period"), as well as the Company's business progress during the first half of the year and future outlook. During the Reporting Period, the commercialization of the Company's core product, HuaTangNing (华堂宁®) (dorzagliatin tablets), accelerated. The Company's independent operational capabilities improved significantly. R&D progress advanced smoothly and the Company's financial performance achieved breakthrough growth, laying a solid foundation for long-term sustainable development. "The first half of 2025 was a critical stage in Hua Medicine's transformation and development. Following the full takeover of the commercialization of HuaTangNing ( 华堂宁 ® ) , the Company achieved double-digit growth in sales and revenue through its independently established sales team, thereby validating the effectiveness of the new business model. We have also submitted a new drug application in Hong Kong, China, laying the foundation for dorzagliatin to expand from China to Southeast Asia and the global market," said Dr. Li Chen, founder and CEO of Hua Medicine, "Dorzagliatin has continued to demonstrate broad therapeutic potential in real-world studies, and new evidence has been found in basic research regarding diabetes remission, cognitive improvement, lipid improvement, and muscle gain, further consolidating Hua Medicine's global leadership in GKA research and development and treatment. In the future, Hua Medicine will continue to focus on diabetes and the entire field of metabolic diseases, driving innovation through research and development and market expansion to bring the benefits of China's original innovative drugs to more patients worldwide." Business Highlights and Operational Progress • Commercialization transformation achieved remarkable results, with doubling of sales and profits. • Effective from January 1, 2025, the Company terminated its exclusive promotion service agreement with Bayer and fully took over the commercialization of HuaTangNing (华堂宁®) in China. During the Reporting Period, with unit prices remaining consistent with the same period in 2024, sales of HuaTangNing (华堂宁®) reached 1,764,000 packs, a year-on-year increase of 108%. Net sales reached RMB217.4 million, a year-on-year increase of 112%. Leveraging strong commercial execution and continuously improving operational efficiency, the Company is moving toward profitability. Hua Medicine has successfully transitioned to a fully independent commercialization phase, confirming growing market demand and the efficient execution capabilities of its independent sales team. • Sales of HuaTangNing (华堂宁®) continued to benefit from its inclusion in China's National Reimbursement Drug List (NRDL), which took effect in January 2024. Reimbursement coverage under the NRDL has significantly increased accessibility, especially in Tier 2 and Tier 3 hospitals, and played a critical role in accelerating patient adoption. • Due to expanded production scale and improved cost efficiency, the Company's gross profit margin increased to 54.2%, higher than 46.5% in the same period last year. • With sales revenue growing 112% year-on-year, the Company's sales expenses during the Reporting Period were RMB64.2 million for the six months ended June 30, 2025, growing only 5% compared to the same period last year. The composition of our selling expenses for the six months ended June 30, 2025 changed significantly from the same period in 2024 due to the Company incurring selling expenses directly as a result of assuming sole commercialization responsibilities for HuaTangNing (华堂宁®) in China, while no longer owin