Huadong Medicine reduces share capital after incentive recipients depart

Huadong Medicine Company Limited has completed the repurchase and cancellation of 56,000 restricted shares, representing 0.003% of the company's total share capital before the cancellation. This action was taken for 6 incentive recipients from the 2022 Restricted Stock Incentive Plan who are no longer eligible due to resignation.

The repurchase price per share was RMB 23.20, resulting in a total payment of RMB 1,380,472.88, which includes personal income tax and interest. Following the cancellation, the company's total share capital has decreased from 1,754,077,048.00 shares to 1,754,021,048.00 shares. The company confirmed that the cancellation procedures were completed with the Shenzhen branch of China Securities Depository and Clearing Corporation Limited on September 9, 2025.

The board of directors and the supervisory board approved the repurchase and cancellation in meetings held on June 27, 2025, with shareholder approval granted at the first extraordinary general meeting on July 16, 2025. This move aligns with the company's incentive plan regulations and is not expected to materially impact the company's financial condition or business operations.