Recently, Tonghua Dongbao Pharmaceutical Co., Ltd. ("Dongbao Pharm" or the "Company") signed a "Commercialization Cooperation Agreement" (the "Agreement") with Huisheng Biopharmaceuticals Co., Ltd. ("Huisheng Pharm"), a holding subsidiary of Sihuan Pharmaceutical Holdings Group Ltd. (00460.HK). Leveraging their respective core strengths, the two parties will jointly establish a presence in the diabetes treatment sector for resource complementarity and collaborative development.

Under the Agreement, Dongbao Pharm has obtained exclusive commercialization rights in mainland China for insulin degludec and insulin aspart injection (trade name: Huiyoujia) and insulin degludec injection (trade name: Huiyouda) from Huisheng Pharm. Huiyoujia, an insulin co-formulation comprising 70% insulin degludec and 30% insulin aspart, is the first domestically developed biosimilar of insulin degludec and insulin aspart injection approved for marketing in China. According to Novo Nordisk's 2025 annual report, the combined revenue of its two products with the same generic names in Greater China reached approximately RMB 4.3 billion, highlighting significant market opportunities and growth potential. The two products in-licensed under this agreement will effectively synergize with the Company's existing diabetes treatment products. By enhancing domestic production capabilities and improving drug accessibility, they are expected to further enhance basal insulin treatments in China and drive the evolution of integrated basal and mealtime insulin co-formulation treatments better suited to the dietary patterns of the Chinese population.

As a leading insulin manufacturer in China, Dongbao Pharm has focused on diabetes medication for many years and has built a strong market foundation, a mature commercialization system, and strong brand influence, with its products consistently ranking among the top in the domestic market for this category. The Company has established a mature, nationwide commercialization network that covers medical institutions at all levels and primary healthcare markets. With comprehensive capabilities to efficiently drive market entry, academic promotion, and sales growth at the end-market level, the network provides a solid foundation for rapid, broad market coverage. According to Pharmcube data for the first three quarters of 2025, the Company's sales market share for human insulin and insulin analogs ranked second in the industry, behind Novo Nordisk. Market share across its various insulin products continued to increase, with human insulin reaching 45.5% and maintaining its No. 1 position in China.

The partnership builds on the extensive expertise Dongbao Pharm and Huisheng Pharm have accumulated in their respective fields, and both parties expressed strong recognition of the prospects for the partnership. Going forward, Dongbao Pharm will leverage its commercialization strengths in the endocrine and metabolic field to accelerate the market promotion and clinical adoption of Huiyoujia and Huiyouda. Huisheng Pharm will continuously strengthen the advantages of its R&D and technology system to provide robust support for a stable supply of the products.

The partnership will further enrich Dongbao Pharm's product portfolio in the endocrine and metabolic field, reinforce the Company's overall competitiveness in diabetes treatment, and provide new momentum for its long-term, sustainable growth. At the same time, Huisheng Pharm is expected to rapidly increase the market penetration of the two products and unlock their market value. Seizing this partnership as an opportunity, both parties will work together to bring high-quality Chinese insulin products to a wider range of patients, contribute to continued improvements in diabetes prevention and treatment in China, and achieve mutually beneficial, high-quality development.