2020年华东医药股份有限公司年报

Huadong Medicine Co., Ltd. 2020 Annual Report April 2021 To the shareholders In2020, HuadongMedicineencounteredunprecedentedchallenges,including COVID-19pandemicimpactontheentiremanufacturingoperation,theunsuccessfulGPOparticipationofAcarboseproducts,aswellas theimpactofaseriesofsubsequentpoliciessuchasthe GPOprocessandNationalDrugReimbursementList(NDRL)pricenegotiations. Nevertheless,weacknowledgedthatHuadongovercamethesechallenges andsuccessfully metitsfullyearoperational&businesstargets.Althoughthe Company’s totalrevenuewas slightlydelclinedyearonyearwhileprofitgrowthhadbeensqueezed,thePharmaceutical Industrybusinesssectormaintaineditsgrowth,whilebuckingmarkettrends.Acarbosetabletsmaintaineditsmarketshare andcontinuedto increase itsshareoftheex-hospitalandretail markets.Thisachievementwasreallyahard-won! HuadongMedicine’s R&Dstrategyhasalwaysadheredtothe corporatephilosophyofbeing“Devoted toscience,Dedicatedtopatients”,with “clinicalvalue,healthcareeconomicalvalueandcommercialvalue”askeyfocuses.Ithas establishedapipelineofinnovative productsinthefieldofoncology, immunologyandendocrinology.ThroughreconstructionofinnovativedrugR&Dfunctions,the Company’s R&Dcapabilityhasbeensignificantly strengthened.TheINDapplicationinChinaforanin-licensedADCproductwas completedwithin 100days andhasalreadyobtainedCTAapprovalfromCDE.Theexcellentexecutioncapabilityofthe R&Dteamhasunderpinnedourconfidenceinthe longtermtransformationandgrowthoftheCompany’sinnovativedrugbusiness.IntheTAofdiabetes,the Companycontinues tomonitorcutting-edge technologiesandinnovativeproductpipelineglobally,and willcontinueenrichingitsproductportfolio.TheCompanyhasalreadyparticipatedand investedinanumberofdomesticandinternationalbiotechcompanieswithleading technologies.Throughestablishingdifferentiatedpeptideinnovationtechnologyplatform, autoimmunedisease antibodytechnologyplatform,microbialfermentationcytotoxin technologyplatformandinnovative linker technologyplatform,aswellasmutuallybeneficialcollaborations, HuadongMedicineisbuildingandimprovingitspharmaceuticalresearchanddevelopmentecosystem. Huadongcommercialdistributionbusinesshasbeenadheringtothephilosophyof “caringtheworldwithsincerity,integrity,persistenceandbeingpragmatic”, transformingfromabasicdistributortoanintegratedserviceproviderwithgreaterindustryexpertise.The Company’s coldchainbusinessispositionedas thewhole life-cycleprecisionmanagementandcontrolforbiologicalspecialtydrugs.Ithas continuouslystrengthenedthecompetitive advantageofthecoldchaincapabilityanddriventhehigh-qualitydevelopmentofdigitalintelligentsupply chain.TheCompanywillvigorouslyexpande-commercebusiness,establishanew “online offlineinteraction” growthmodel, andactivelyexplore thenewhealthcareservicesbusinessof“internet+ chronicdiseasemanagement”. HuadongMedicinehasbegunexpandinginthefieldofaestheticswhenChina’saestheticsindustryisintheascendant. Wehavewitnessedaestheticsproductstransitioningfrom discretionaryconsumerproductstonecessitiesandthe industryisabouttoexperiencea longtermhigh growthphase. Thisstrengthenedourcommitmentto expandinthefieldofaesthetics.Thereare stillsignificantupside inaestheticsoverthe longterm. Goingforward,wewill continuefollowingthestrategyof “globaloperationalpositioning, dual-cyclebusiness development”,make Chinaanimportantmarketforaestheticsandbring"first-in-class", high-endinternationalproducts toChinaovertime. Wewillleverage theCompany’s establishedaestheticsdistributioncapabilitiesinChinaandthe fastgrowthoftheaesthetics industry,tosupportrapidavailabilityofhighqualityinternationalproductportfolioin Chinaandprovidebeautyseekerspersonalisedanddifferentiatedaestheticsproductportfolios.Thus,anewmodelofdomestic andinternationaldual-cyclejointgrowthandmutualpromotionisformed. 2021willbeanothersignificantyearfor HuadongMedicine’s strategic transformation.As GPOpoliciesandpricereductionmaycontinueto impacttheCompany’soveralloperation,HuadongMedicinewillalsoface thestrongestpressureonitsbusiness growthinhistory. Nevertheless,weconstantlyremindourselves:don’twastea goodcrisis.ThecurrentsituationofChina’spharmaceuticalmarketrepresents arareopportunityfor HuadongMedicineto transformintoan innovative companyandexpand globally. Expansionininnovativepharmaceuticalbusinessremainsfirmlyas themainthemeof HuadongMedicine.Aesthetics, asacore strategicfocusofthe Company’shealthcarebusiness,marksthebeginningofthe Company’s globalizationstrategy.Wearecommittedto continuestrategicallypositioningacrossthe globalpharmaceuticalandhealthcarevaluechain,and activelyintegrateintoglobalpharmaceuticalinnovationcollaborationsbystrengtheningourowninnovativedrugR&Dcapabilities andkeyadvantages. Thisis aneraofsurvivalofthefittestandintheendallsandswillberemovedandonlythegoldleftshinning.Fromnowontotheforeseeablefuture, theonlycertaintyis thatwewill continueexperiencingvariousuncertaintiescausedbyinfrastructuralchangesin theindustry.HuadongMedicinewillremaincommittedto its course,continue tooutperforminthe currentenvironmentandstrategicallyplanforthefuture.Thanks toallthe investorsforyour recognitionandlongtermsupport,whichare thesourceofourcommitmentandconfidence inpursuingthetransformation! HuadongMedicinewillstrivetofirmlymeetshareholders expectationsandcontinuedeliveringexcellentresults. LvLiang OnBehalfOf HuadongMedicine GrainRain2021 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 annual report is authentic, accurate and complete and free of any false records, misleading statements or material omissions, and shallundertake individualand 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 annualreport are authentic, accurate and complete. All directors have attended the Board of Directors meeting to review this annualreport. The future plans, development strategies and other forward-looking statements in this annual report shall not be considered as substantial commitment of the Company to investor. Therefore, investors are kindly reminded to pay attention to possible investment risks. The profit distribution plan reviewed and adopted by this Board of Directors meeting is as follows: on the basis of 1,749,809,548 shares, a cash dividend of 2.3 yuan (tax included) is to be distributed to all shareholders for every 10 shares; no bonus share will be issued; and no capital reserve will be converted to increase the capitalstock. 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 originalversion in Chinese shallprevail. Contents To the shareholders ......2 SectionI. Important Declaration, Contents and Definitions......6 SectionII. Company Profile and Key Financial Indicators ......11 SectionIII. Overview of the Company’s Business...... 16 SectionIV. Discussionand Analysis of Operations...... 23 SectionV. Important Matters ...... 75 SectionVI. Share Change and Shareholders......117 SectionVIII. Convertible Corporate Bonds ......125 SectionVIII. Convertible Corporate Bonds ......126 SectionIX. Directors, Supervisors, Senior Managers andEmployees......127 Section X. Corporate Governance......137 Section XI. Informationabout Corporate Bonds......143 Section XII. Financial Report ......144 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 Me dicine Group Co., Ltd. ZhongmeiHuadong refers to Hangzhou Zhongme iHuadong PharmaceuticalCo. , Ltd. Jiangdong Company refers to Hangzhou Zhongme iHuadong PharmaceuticalJ iangdong Co., Ltd. Jiuyang Bio refers to Jiangsu Jiuyang Biopharm Co., Ltd. Xi’an Bohua refers to Huadong Medicine (Xi’an) Bohua PharmaceuticalCo., Ltd. Jiuyuan Gene refers to Hangzhou Jiuyuan Gene Engineering Co., Ltd. Huadong N ingbo 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. Xta lPi refers to XtalPiInc. Sanyou Bio refers to Sanyou Biopharmaceuticals Co., Ltd. Sinclair refers to Sinc lair Pharma Limited vTv 公司 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. Kylane