Hua Medicine (02552) announced its audited consolidated results for the fiscal year ending December 31, 2025. During the reporting period, the company's core product, the globally innovative diabetes drug and glucokinase activator (GKA) HuaTangNing (dorzagliatin tablets), saw its commercialization process accelerate significantly. The research and development pipeline continued to expand, and the company achieved a historic breakthrough in financial performance, successfully entering a new phase of profitability. Product sales volume reached 4.011 million boxes, a year-on-year increase of 91%. Net sales reached RMB 492.9 million, a 93% increase compared to the previous year. With the unit price remaining stable, this robust growth strongly demonstrates surging market demand and the high operational efficiency of the in-house commercialization team. In terms of profitability, the company's gross profit reached RMB 280.4 million, marking a 125% increase. Benefiting from expanded production scale and optimized manufacturing processes, the gross profit margin improved to 56.9%, an increase of 8.2 percentage points from 2024. Sales and marketing expenses increased by only RMB 12.3 million to RMB 165.5 million, with their proportion of sales optimizing from 59.9% to 33.6%. Pre-tax profit reached RMB 1.1064 billion. The company expects to continue expanding its commercialization team, while the profitability trend of its commercial operations is also projected to grow steadily. The company continues to accelerate its global expansion. In the mainland China market, the China National Intellectual Property Administration formally approved the Patent Term Extension (PTE) application for dorzagliatin, granting an additional five years of market exclusivity. The drug has been recognized as a national innovative drug and an effective treatment for chronic diseases, and it was renewed in the updated National Reimbursement Drug List at its original price, further affirming its clinical and innovative value. Overseas, dorzagliatin successfully obtained marketing approval from the regulatory authorities in Hong Kong, with plans for further expansion into Asian markets, injecting strong momentum into innovative developments in the global diabetes treatment field. Furthermore, the company is actively progressing clinical research to explore new indications, including MODY-2 disease, diabetes prevention, neurodegenerative diseases, and the treatment of diabetes and its complications. The company anticipates submitting an Investigational New Drug (IND) application for dorzagliatin in MODY-2 patients in 2026. Looking ahead, Hua Medicine will continue to enrich its pipeline based on its core product. The company is accelerating the development of a fixed-dose combination (FDC) of dorzagliatin and metformin and investigating the efficacy of a second-generation GKA in glycemic homeostasis control. Concurrently, it is exploring combination therapies involving dorzagliatin with drugs such as GLP-1 receptor agonists and SGLT-2 inhibitors. Dr. Chen Li, Founder and CEO of Hua Medicine, stated, "2025 was a milestone year in Hua Medicine's commercialization journey. The company successfully achieved full independent commercialization for HuaTangNing, delivering triple-digit growth in both sales volume and revenue through strong market execution and product competitiveness, and realized its first annual profit. This also explores a new path for the commercialization of innovative drugs in China. Meanwhile, the company made key progress in global market expansion, clinical development, and intellectual property protection, with the therapeutic potential of dorzagliatin being continuously validated. In the future, we will continue to deepen our focus on the field of glycemic homeostasis management, further explore indications and applicable populations in areas such as diabetes prevention, rare diseases, and neurodegenerative diseases, advance the development of innovative products like the second-generation GKA, and expand our global footprint to contribute China's wisdom and strength to the global treatment of metabolic diseases."