Huadong Medicine expands business, adjusts capital and incentive plan

Huadong Medicine, in an announcement dated November 22, 2025, confirmed the expansion of its business scope to include the operation and utilization of national key protected aquatic and terrestrial wild animals and their products, national key protected wild plants, pharmaceutical excipients, and traditional spice products. This strategic move, along with a change in registered capital, necessitated revisions to the company’s Articles of Association.

The change in registered capital from RMB 1,754,021,048.00 to RMB 1,753,736,848.00 results from the repurchase and cancellation of 284,200 restricted shares. This repurchase is due to 6 initial grantees and 1 reserved grantee no longer meeting incentive eligibility, alongside 16 grantees with unsatisfactory third-period performance and 2 grantees with unsatisfactory second-period performance. The repurchase price is RMB 22.85 per share, with funds sourced from the company's own capital.

These adjustments are part of the 2022 Restricted Stock Incentive Plan, which also saw the third lifting of sales restrictions for 77 initial grantees, allowing 1,275,120 restricted shares to be unfrozen. The company's board believes these changes will not materially impact the company’s financial health or operations.