China National Accord Medicines Corporation Ltd.
Semi-Annual Report 2019
August 2019
Section I. Important Notice, Contents and Paraphrase
Board of Directors, Supervisory Committee, all directors, supervisors and senior
executives of China National Accord Medicines Corporation Ltd. (hereinafter
referred to as the Company) hereby confirm that there are no any fictitious
statements, misleading statements, or important omissions carried in this report,
and shall take all responsibilities, individual and/or joint, for the reality,
accuracy and completion of the whole contents.
Lin Zhaoxiong, Principal of the Company, Wei Pingxiao, person in charger of
accounting works and Wang Ying, person in charge of accounting organ
(accounting principal) hereby confirm that the Financial Report of Semi
-Annual Report 2019 is authentic, accurate and complete.
All directors are attended the Board Meeting for report deliberation.
The Company plans not to pay cash dividends, bonus and carry out capitalizing
of common reserves.
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Contents
Section I Important Notice and Paraphrase.................................................................................... 1
Section II Company Profile and Main Financial Indexes...............................................................4
Section III Summary of Company Business ................................................................................ 7
Section IV Discussion and Analysis of Business.............................................................................11
Section V Important Events............................................................................................................ 28
Section VI Changes in Shares and Shareholders...........................................................................58
Section VII Preferred Stock.............................................................................................................63
Section VIII Particulars about Directors, Supervisors and Senior Executives.......................... 64
Section IX Corporate Bonds............................................................................................................65
Section X Financial Report..............................................................................................................66
Section XI Documents Available for Reference........................................................................... 256
2
Paraphrase
Items Refers to Contents
Listed Company, Company, the Company,
Refers to China National Accord Medicines Corporation Ltd.
Sinopharm Accord, the Group
Sinopharm Refers to China National Pharmaceutical Group Corporation
Sinopharm Holding Refers to Sinopharm Group Co., Ltd; Controlling shareholder of the Company
Company Law Refers to Company Law of the People’s Republic of China
Securities Law Refers to Securities Law of the People’s Republic of China
Yuan, 10 thousand Yuan, 100 million Yuan Refers to RMB, RMB 10 thousand, RMB 100 million
Terminology: Refers to
The first invoice refers to the invoice from the manufacturer to the
distributor, and the second invoice refers to the invoice from the
Two Invoices System Refers to distributor to the medical service provider. By this way, circulation links
have been greatly reduced and the number of distributors for each
medicine category shall not exceed two.
GPO Refers to Group purchasing organizations
GSP certificate Refers to Good Supply Practice certificate
That is CMS, and information system processing workflow &
Supply Chain Management Refers to
procurement, inventory & sales documents
Abbreviation: Refers to
Sinopharm Holding Guangzhou Refers to Sinopharm Holding Guangzhou Co., Ltd.
Guoda Drugstore Refers to Sinopharm Holding Guoda Drugstore Co., Ltd.
Sinopharm Holding Guangxi Refers to Sinopharm Holding Guangxi Co., Ltd.
Foshan Nanhai Refers to Foshan Nanhai Pharmaceutical Group Co., Ltd.
Nanfang Pharmaceutical Foreign Trade Refers to Guangdong Nanfang Pharmaceutical Foreign Trade Co., Ltd.
China National Zhijun, Zhijun Pharmaceutical Refers to China National Zhijun (Shenzhen) Pharmaceutical Co., Ltd.
Zhijun Pharmacy Trade Refers to Shenzhen Zhijun Pharmacy Trade Co., Ltd.
Zhijun Pingshan, Pingshan Pharmaceutical Refers to China National Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd.
Main Luck Pharmaceuticals Refers to Shenzhen Main Luck Pharmaceuticals Inc.
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Section II. Company Profile and Main Financial Indexes
I. Company profile
Short form of the stock Sinopharm Accord; Accord B Stock code 000028, 200028
Stock exchange for listing Shenzhen Stock Exchange
Name of the Company (in
国药集团一致药业股份有限公司
Chinese)
Short form of the Company
国药一致
(in Chinese)
Foreign name of the Company
China National Accord Medicines Corporation Ltd.
(if applicable)
Short form of foreign name of
Sinopharm Accord
the Company (if applicable)
Legal representative Lin Zhaoxiong
II. Person/Way to contact
Secretary of the Board Representative of security affairs
Name Chen Changbing Wang Zhaoyu
Accord Pharm. Bldg., No. 15, Ba Gua Si Accord Pharm. Bldg., No. 15, Ba Gua Si
Contact add. Road, Futian District, Shenzhen, Road, Futian District, Shenzhen,
Guangdong Province Guangdong Province
Tel. +(86)755 25875195 +(86)755 25875222
Fax. +(86)755 25195435 +(86)755 25195435
E-mail gyyzinvestor@sinopharm.com gyyz0028@sinopharm.com
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company changed in reporting period or
not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company has no change in reporting period,
found more details in Annual Report 2018.
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2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2018.
IV. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data
□Yes √ No
Increase/decrease in this
Current period Same period of last year
report y-o-y
Operating revenue (RMB) 25,228,147,377.43 20,778,425,602.22 21.42%
Net profit attributable to shareholders of
650,833,360.40 641,727,034.93 1.42%
the listed Company (RMB)
Net profit attributable to shareholders of
the listed Company after deducting 639,700,447.95 623,296,339.34 2.63%
non-recurring gains and losses (RMB)
Net cash flow arising from operating
1,163,757,581.35 225,357,709.20 416.40%
activities (RMB)
Basic earnings per share (RMB/Share) 1.52 1.50 1.33%
Diluted earnings per share (RMB/Share) 1.52 1.50 1.33%
Decline 1.18 percentage
Weighted average ROE 5.44% 6.62%
points
Increase/decrease in this
End of current period End of last period report-end over that of last
period-end
Total assets (RMB) 33,539,598,682.94 28,930,300,519.97 15.93%
Net assets attributable to shareholder of
12,140,439,917.48 11,618,432,603.28 4.49%
listed Company (RMB)
V. Difference of the accounting data under accounting rules in and out of China
1. Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under both IAS (International Accounting
Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
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2. Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□ Applicable √ Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under both foreign accounting rules and
Chinese GAAP (Generally Accepted Accounting Principles)
VI. Items and amounts of extraordinary profit (gains)/loss
√ Applicable □ Not applicable
In RMB
Item Amount Note
Gains/losses from the disposal of non-current asset (including the
4,318.22
write-off that accrued for impairment of assets)
Governmental subsidy calculated into current gains and
The vary taxation subsidiary and
losses(while closely related with the normal business of the
16,456,976.15 financial incentive received in the
Company, excluding the fixed-amount or fixed-proportion
period
governmental subsidy according to the unified national standard)
Reversal of impairment reserve for account receivable with
1,076,222.62
separate impairment testing
The gains obtained from offering
Gains/losses on entrusted loans 1,715,338.06 entrust loans to China National
Zhijun (Suzhou).
Other non-operating income and expenditure except for the
519,920.40
aforementioned items
Other gains/losses satisfy a definition of extraordinary
16,447.15
gains/losses
Less: impact on income tax 4,668,084.55
Influenced amount of minority shareholders’ equity (after
3,988,225.60
tax)
Total 11,132,912.45 --
Concerning the extraordinary profit (gain)/loss defined by Q&A Announcement No.1 on Information Disclosure for Companies
Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to
the lists of extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public --- Extraordinary Profit/loss, explain reasons
□ Applicable √ Not applicable
In reporting period, the Company has no particular about items defined as recurring profit (gain)/loss according to the lists of
extraordinary profit (gain)/loss in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to
the Public --- Extraordinary Profit/loss
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Section III. Summary of Company Business
I. Main businesses of the Company in the reporting period
Whether the Company needs to comply with the disclosure requirements of the particular industry
Yes
Retailing industry
The Company complies with the disclosure requirement of "Information Disclosure Guidelines for the Shenzhen Stock Exchange No.
8- Listing Company Engaged in Retailing Industry"
In the reporting period, the main business of Sinopharm Accord includes pharmaceutical distribution and
pharmaceutical retail, specifically as follows:
(i) In the pharmaceutical distribution field, the Company continues to integrate the distribution and logistics
business, deeply penetrates into the end markets, improves the multistep distribution network, creates intelligent
supply chain,developed a clustered and large-scale industrial advantages, and commit to becoming a leading
provider of medical health products and services in Southern China.
1. In terms of market competition pattern, the company's pharmaceutical distribution is mainly based on
Guangdong and Guangxi. The company opened the network channel construction of Guangdong and Guangxi in
2008, and the business was distributed to various cities and regions through the merger and acquisition and the
new branches; at the same time, the company started the logistics network construction, and realized whole
network operation in 2015. In 2016, with the reorganization of Sinopharm Accord, the distribution continued to
consolidate the traditional hospital business, while actively expanding innovative business, combined with the
exploration of wholesale and retail synergy, and realized steady growth in scale year by year facing with the
changing market in recent years, the frequent medical reform policies, and the increasingly strict supervision to
pharmaceutical industry. In the first half of 2019, the hospital direct selling market distributed in 30 cities at
prefecture level and above in Guangdong and Guangxi ranked the top three.
2. In terms of customer distribution, as the distribution channels continue to sink, the expansion of small and
medium-sized terminals has continued to increase since 2018, mainly including retail medical treatment,
grass-root medical institutions, and small-scale social medical services. The distribution of customers up to the
first half of 2019 was as follows: 1,804 medical institutions at the first level or above, 3,783 primary care
customers (excluding 836 first-level hospitals), and 1,587 retail terminal customers (chain drugstores, single
stores).
(ii) In the pharmaceutical retail field, Guoda Drugstore is a pharmaceutical retail enterprise that ranks the first in
the sales volume throughout the country, and is one of the few enterprises in China with national direct sales drug
retail network.
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As of the end of June 2019, Guoda Drugstore had 4,593 stores, covering 19 provinces, autonomous regions, and
municipalities directly under the central government, which formed a network of pharmacies covering the urban
agglomerations of East China, North China, and coastal region of South China, and gradually spread into the
Northwest, Central Plains, and inland city clusters. The business of Guoda Drugstore mainly relied on modern
retail pharmacies, and focused on the development of professional service systems with medical resources as its
core competitiveness, and created a group of retail medical treatment and hospital cooperation professionalized
stores that integrate medical services and health products sales. At the same time, Guoda Drugstore actively
expanded its innovative business, actively explored and enriched new business channels, enhanced professional
service capabilities, and was committed to the transformation from traditional pharmaceutical retail enterprises to
innovative service-oriented enterprises. Guoda Drugstore had built industry-leading professional service
capabilities through regular merchandise retail management, upgrades of key brands and potential tapping of
cooperation with suppliers, and accelerating DTP business and continuing the creation of health service system. In
addition, the leading scale of Guoda Drugstore was one of the core competitiveness, and the scale advantage
reduced the company's procurement cost and enhanced the company's bargaining ability.
II. Major changes in main assets
1. Major changes in main assets
Major assets Note of major changes
Increased 197.4176 million Yuan over that of period-begin with 10.42% rate of change,
Equity assets
mainly because the investment income from joint ventures increased.
Decreased 14.3813 million Yuan over that of period-begin with 2.37% rate of change, no
Fixed assets
significant changes during the reporting period.
Increased 1.3156 million Yuan over that of period-begin with 0.41% rate of change, no
Intangible assets
significant changes during the reporting period.
Decreased 4.432 million Yuan over that of period-begin with 12.17% rate of change,
Construction in progress
mainly because the ERP software transfer to intangible assets for installation completed.
Increased 325.4396 million Yuan over that of period-begin with 100% rate of change,
Receivables Financing mainly because at end of the period, the bank acceptance bill under Note Receivable was
listed under the item of "Receivables Financing" for change of the statement format
Increased 1910.9812 million Yuan over that of period-begin with 100% rate of change,
Right-of-use assets
mainly because new leasing standards are implemented in the period
2. Main overseas assets
□ Applicable √ Not applicable
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III. Core competitiveness analysis
Whether the Company needs to comply with the disclosure requirements of the particular industry
Yes
Retailing industry
1. Strong network coverage and layout
Leading layout and complete distribution network in Guangdong and Guangxi: the Company has complete
pharmaceutical distribution networks in Guangdong and Guangxi, achieve comprehensive coverage of the second-
and third-level medical institutions in Guangdong and Guangxi; in recent years, we have seized the opportunity to
develop retail-oriented customers, and vigorously expanded related business formats such as grass-root medical
institutions, distribution retail pharmacies, and retail terminals including small-scale private medical enterprises,
and continuously expanded the coverage of the vast market terminals, therefore, the scale and growth rate have
achieved rapid growth.
Take the lead in scale and cover the countrywide retail network: Guoda Drugstore is a pharmaceutical retail
enterprise with sales volume ranking first throughout the country, established 28 regional chain enterprises, with
retail network spreading over 19 provinces and municipalities and autonomous regions.
2. Abundant variety resources
In the pharmaceutical distribution, the Company has established extensive cooperative relations with thousands of
domestic manufacturers and commercial enterprises and established stable business relationships with hundreds of
import and joint venture manufacturers, its business scope and various business qualifications are complete,
covering medicines, medical equipment, herbal medicine pieces, and including hemp medicines, medical toxic
drugs, diagnostic reagents, etc.
Guoda Drugstore operates nearly 120,000 merchandises. With its relatively comprehensive purchasing network
and years of experience in commodity management, Guoda Drugstore has established a merchandise system with
wide coverage, high professionalization, and rich varieties.
3. Complete logistics and distribution system
Sinopharm Accord distribution adopts supply chain management and warehouse management solutions system, it
has built large-scale first-grade logistics centers in Guangzhou, Nanning, Shenzhen and other places and
established distribution centers in Guangdong and Guangxi which has formed ladder logistics and distribution
networks, it is the first enterprise in Guangdong and Guangxi that has achieved the third-party logistics
qualification and has the professional pharmaceutical logistics capabilities with the largest scale, the most
extensive network, and the most complete modes in southern China.
Guoda Drugstore has a nationwide modern logistics and distribution system, and has established the logistics and
distribution network covering all the stores throughout the country, including Shanghai National Logistics Center
and 23 provincial and municipal distribution centers.
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4. The advantages of medical insurance resources
Regarding medicine retails, the subsidiaries of Guoda Drugstore have featured generally higher medical insurance
acquiring ability, with higher medical insurance sales ratio and steady operation.
5. The advantages of Compliance
The Company had a big lead under an increasingly stringent regulatory environment for the reason that it has kept
emphasizing legalization and compliance in the process of operation and management.
6. Unique-influence Sinopharm brand
Brand of the Company and distribution, industry child-brand and controlling shareholder and actual controller’s
brand come down in one continuous line, depending on powerful force of central enterprises, the Company’s
popularity and influence are prominent day by day in the industry
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Section IV. Discussion and Analysis of Business
I. Introduction
In the first half of 2019, the growth rate of China's pharmaceutical market slowed down, and the growth of major
terminals continued to differentiate, the growth rate of primary medical care and retail terminals was higher than
that of hospital terminals. The industrial policy continued to deepen the medical reform with the core thoughts of
"adjusting the structure, strengthening the grassroots and strict supervision", and the pace of reform in the medical
field was accelerated; the "4+7" collection and linkage was rapidly advanced, the national medical insurance
standardization work was officially launched, the payment method reform pilot has been advanced, and the market
regulation was becoming stricter.
Under the new situation, Sinopharm Accord conformed to the industry and policy trends, maintained strategic
strength, sought transformation and innovation and development, and continuously promoted the strategic
measures and technological transformation with wholesale and retail integration as the core, focused on four
business directions, and created a "new" Guoda. Under the guidance and support of the company's board of
directors, with the joint efforts of more than 25,000 employees, we focused on the increase in share and the scale
expansion, the company's scale and growth rate in the first half of the year was better than the overall level of the
industry, and achieved steady and rapid growth in performance.
(i) Performance completion
In first half of 2019, Sinopharm Accord achieved a revenue from operation amounted as 25.228 billion Yuan with
a y-o-y growth 21.42%; net profit attributable to shareholders of parent company comes to 651 million Yuan with
1.42% up on a y-o-y basis. The distribution business has operation revenue of 19.477 billion Yuan with y-o-y
growth of 22.66%; net profit attributable to shareholders of parent company has 382 million Yuan with y-o-y
growth of 15.41%. Guoda Drugstore achieved a revenue from operation amounted to 6.108 billion Yuan with a
y-o-y growth of 18.75% and net profit attributable to shareholders of parent company amounted as 150 million
Yuan, a 7.81% up on a y-o-y basis.
(ii) The main work
1. Stabilize growth - performance improvement and scale expansion
The company actively grasped industry opportunities, optimized investment M&A decision-making efficiency,
accelerated industry resource integration and store network layout, and ensured scale development. As of the first
half of the year, the company had a total of 107 subsidiaries, and the number of retail outlets of Guoda Drugstore
was 4,593, with a net increase of 318 stores. During the reporting period, the company invested in the
establishment of the Sinopharm Guoda Drugstore Bayannao’er Co., Ltd., Inner Mongolia Guoda Pharmaceuticals
Co., Ltd., and Sinopharm Guoda Drugstore Yongxingtang Chain (Chaoyang) Co., Ltd.
2. Promote strategy - integration of wholesale and retail, and technology empowerment
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The company researched and grasped environmental changes, deepened the development plan for the next five
years, and carried out strategic rolling revisions. With the core measures of "technology empowerment, service
upgrading, integration of wholesale and retail, and industry and finance dual drive", we provided full-service
solutions for the upstream and downstream industry chain through customer value driving and upgrades of supply
chain model, and transformed the pharmaceutical distributors into the solution providers and service providers so
as to create a leading international medicine health service platform.
The company integrated resources to promote the synergy of wholesale and retail. In the first half of the year, the
distribution launched the logistics planning of wholesale and retail integration, and the sales of wholesale and
retail synergies increased by 54% on a year-on-year basis, and the part outside of Guangdong and Guangxi
provinces increased by 64% on a year-on-year basis; Guoda Drugstore got supports from WBA global strategic
cooperation manufacturers’ resources, and improved the Catalogue of Integration of Wholesales and Retails, at the
same time, promoted the construction of provincial platforms, at present, the provincial platform in Inner
Mongolia has been completed, and the provincial platform project in Shenyang has passed the project approval.
Centering on the "digital transformation", the company launched IT planning, promoted intelligent logistics and
intelligent supply chain optimization, and energized the business development in multiple dimensions.
3. Consolidate foundation - management upgrade, risk control guarantee
The company straightened out the governance relationship of subsidiaries, regulated the management of its
subsidiaries, and enhanced its overall governance capabilities. The company optimized the organizational
structure, created a diversified incentive mechanism, improved the talent development system, strengthened
leadership, stimulated organizational vitality and innovation, and promoted organizational management
transformation. The headquarters gave play to resource allocation and control functions, strengthened professional
capabilities, improved service awareness, implemented risk prevention and control, and escorted the business
development. We promoted key projects such as controls of claims and inventory balances, loss-making enterprise
governance, and innovation first, and improved quality and efficiency for healthy development.
4. Promote transformation – service driven, model innovation
Distribution business: The company maintained strategic strength, actively responded to changes in market
policies, and consolidated the integrated operational foundation, the four major businesses developed rapidly and
built new competitive advantages. In the first half of the year, traditional business grew by 22% on a year-on-year
basis, retail direct sales increased by 30% on a year-on-year basis, equipment consumables increased by 52% on a
year-on-year basis, retail medical treatment increased by 80% on a year-on-year basis, and primary care increased
by 34% on a year-on-year basis.
(1) The company actively responded to environmental changes, strengthened communication with the government,
responded to the government's demand for medical reform, actively participated in and provided professional
advice to enhance the company's influence. In terms of GPO policy, Guangzhou Company completed bargaining
reports for seven batches of products, and the bargaining list coverage rate reached 91%, at the same time, it
actively took countermeasures against new GPO areas such as Meizhou, Heyuan, Shanwei and Maoming. In the
implementation of "4+7" quantity procurement, with the professional service capability and network coverage
advantage, Shenzhen Company has obtained distribution rights of 22 varieties, accounting for 84%; Guangzhou
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Company has obtained distribution rights of 24 varieties, accounting for 96%.
(2) Retail direct sales business: combined with the characteristics of retail terminals, continued to promote
customer expansion, regional sinking, and actively promoted the integration of wholesale and retail and the
platform construction. In terms of sales growth, in the first half of 2019, the retail direct sales business achieved
rapid growth, among them, retail pharmacy customer sales increased by 40% on a year-on-year basis, and
small-scale private medical sales increased by 29% on a year-on-year basis. Actively integrated Guoda chain and
private single-store and small chain resources, and promoted the construction of the core network of the terminal
network member store + the hospital circumjacent store through the "network self-built + cooperative
development" dual-track mode, and continued to expand the construction of the third terminal medical network. In
terms of B2B platform construction and service innovation, the company built OTC resource platforms, realized
online payment of B2B platform, upgraded member management functions, optimized APP module construction,
focused on end customer needs, and created special services.
(3) Retail medical treatment business: Continued to promote the distribution of professional pharmacies in
Guangdong and Guangxi, and sales have increased significantly. In the first half of the year, the sales revenue of
professional pharmacies in the first half of the year increased by 80%, and 13 new pharmacies were opened.
Currently, the distribution points in 20 cities of Guangdong and 12 cities of Guangxi have been completed. As of
June, there were 29 hospital circumjacent pharmacies with sales growth of 122% on a year-on-year basis, and 25
DTP pharmacies with sales growth of 60% on a year-on-year basis. While advancing the layout of professional
pharmacies, we have continuously obtained various types of medical insurance qualifications: in the first half of
2019, Shenzhen Pharmacy and Hexie Road Pharmacy became the major and serious disease supplementary
medical insurance drug retail pharmacies of Shenzhen; Huizhou Pharmacy obtained the qualification of serious
disease medical insurance of Huizhou, while Zhuhai Pharmacy has obtained the qualification of additional
supplementary medical insurance project.
(4) Equipment consumables business: With the gradual advancement of medical reform policies, the medical
device industry supervision has become increasingly strict, and the management advantages of distribution for the
device business have emerged. In the first half of 2019, the sales of equipment business increased by more than
50%. In the sales of equipment, combined with the needs of hospitals, continuously improved the viscosity of
hospital customers through platform construction and deep personalized service, formed a variety of SPD project
customized solutions, and promoted through the creation of SPD model hospital; explored medical supplies
counter sales and consignment sales model, and promoted the hospital bidding process; the sales of SPD projects
in the first half of the year increased by 181% on a year-on-year basis.
In addition, it actively acquired the qualifications for wholesales and retails of medical devices, developed retail
medical device models, and improved retail business processes and retail system platforms, in addition, expanded
4D business around the supply chain service upgrades, the businesses of new type of business company (including
equipment consumables, equipment management, disinfection center, etc.) have been gradually carried out in an
orderly manner.
Guoda Drugstore: Promote the company's brand upgrade, optimize the management foundation, strengthen the
professional pharmacy service capabilities, and create new models.
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(1) According to the company's strategic planning and deployment, implement the new brand strategy,
successively complete the "Guoda" upgrades and "Guozhi" brand integration plan, expand the brand upgrade
ideas, form a number of landing plans, and continue to promote brand upgrades in the second half of the year.
(2) The "New Concept" pilot pharmacy jointly launched by Guoda Drugstore and Walgreens Boots Alliance
opened on January 20th at Shangnan Road, Pudong New District of Shanghai. Up to now, sales have increased by
34.8% on a year-on-year basis, and the number of transactions has increased by 31.5% on a year-on-year basis.
The pilot pharmacy has integrated and implemented a new business operation model with advanced design and
operation management concept of Walgreens Pharmacy and Boots Pharmacy. Introduced varieties and cooperated
with a number of global brand suppliers, set parameters vital signs detector, and the touch advertising machine
provided physical intelligent detection and online drug purchasing services; launched "cloud hospital" project,
sothat customers can experience internet medical services such as remote consultation, electronic kitchen, chronic
disease management, self-test medication, and appointment registration.
(3) Professionalization of pharmaceutical service capabilities. Strengthened professional competence, and carried
out training courses for licensed pharmacists; opened Elearning platform to promote online learning; carried out
the "Guoda Drugstore Service Improvement" project; explored a sustainable and replicable basic service
management system.
(4) Built an Internet + medical e-commerce model. Improved the value-added service system, optimized the
self-operated OTO platforms such as WeChat Mall and APP, created a pharmacy + Internet O2O model, enhanced
the front-end customer experience, and launched the e-commerce national customer service. In the first half of the
year, the number of effective members nationwide was 11.436 million, an increase of 8% over the same period
last year.
5. Strengthen party building - party building is strong foundation, don’t forget the initial heart
Guided by the party's political construction, strengthened the theme education of "not forgetting the initial heart,
keeping the mission in mind" and the special action of "party building is strong foundation", focused on the
company's development strategy and central tasks, focused on the consolidation of basic organization, basic team,
and group organization construction.
6. Cultivate internal strength - cultural practice, and sedimentary accretion of brand
Carried out various cultural activities, gathered heart and strength together, promoted corporate culture
propaganda and practice, focused on brand building, gave play to brand value, and cultivated the driving force of
enterprise development. Sinopharm Accord Corporate Culture Communication Project won the Best Learning
Project Award in the China Talent Development Elite Award (2018-2019). At the same time, Sinopharm Accord
also won the 16th "Shenzhen Famous Brand" and the excellent enterprise in Guangdong Province, and also won
the most social responsibility award of Gelonghui's 2019 A-share listed companies.
The Company is required to comply with the disclosure requirements of the Industry Information Disclosure
Guide of the Shenzhen Stock Exchange No. 8 - Listed Companies Engaged in Retail-Related Businesses.
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1. The entity business operations and the business condition of the stores during the reporting period:
As of the end of June 2019, Guoda had 3,470 direct-operated stores, with sales revenue of 5.381 billion Yuan, a
year-on-year growth of 11.82%, 1,123 franchise stores with distribution revenue of 622 million Yuan, an increase
of 7.64% on a year-on-year basis.
Direct-sale store Franchised outlet
Region Sales income Numbers of the Sales income
Numbers of the store
(in 10 thousand Yuan) store (in 10 thousand Yuan)
North 1,701 254,878 338 21,517
East China 829 106,956 587 26,537
South China 421 66,125 87 4,133
Central China 277 24,769 111 2,586
Northwest 242 25,004 -
Total 3,470 477,731 1,123 54,773
Note:
North: Liaoning, Shanxi, Inner Mongolia, Beijing, Tianjin, Hebei;
East China: Shanghai, Jiangsu, Anhui, Shandong, Fujian, Zhejiang;
South China: Guangdong, Guangxi;
Central China: Henan, Hunan;
Northwest: Ningxia, Xinjiang.
(1) Top 10 stores in sales
Year for
Operating Business Actual operating area (in
Serial Region Name starting Property belonging
mode activity M 2)
business
1 Shanxi Yiyuan Zhongli Branch 2002 Direct-sale 5+X 820.00 Rental
2 Guangdon 2006 Modern 260.00
Shenzhen Exhibition Hall Direct-sale Rental
g pharmacy
3 Inner HQ 2003 1,689.26
Direct-sale 5+X Store Rental
Mongolia
4 Jiangsu Jiangsu Baiyulan Store, 1991 Modern 620.00
Direct-sale Rental
Yangzhou pharmacy
5 Shanxi Yiyuan Er Yuan Branch 2011 Direct-sale 5+X 600.00 Rental
6 Beijing Jinxiang Store, Xidang, 1997 Modern 773.16
Direct-sale Rental
Jinxiang pharmacy
7 Fujian Xiamen New Special 2005 Modern 132.90
Direct-sale Rental
Medicine pharmacy
15
8 Hebei 2010 TCM diagnosis 1,206.00
Le Ren Tang HQ Direct-sale Rental
shops
9 Guangdon Lianhuabei, Shenzhen 2003 Modern 120.33
Direct-sale Rental
g pharmacy
10 Beijing Yongding store 2009 Modern 100.00
Direct-sale Rental
pharmacy
(2) In first half of 2019, 281 direct-sale shops are self-opened, and 53 shops closed with 228 self-opened
direct-sale shops net increased, in addition, part of the stores have been put into operation. 50 new stores actually
increased.
Direct-sale store Franchised outlet
Region Number of store Total area Number of stores shut Number of store Number of stores shut
increased down increased down
North 169 17,970.35 -18 19 -3
East China 51 9,599.22 -15 18 -9
South China 20 1,912.84 -8 24 -4
Central China 11 1,478.14 -1 7 -2
Northwest 30 3,002.63 -11 - -
Total 281 33,963.18 -53 68 -18
2. In first half of 2019, online sales developed in a steady pace, and overall e-commerce revenue growth slowed
down, and O2O platform sales totaled 154 million yuan. Details are:
In 10 thousand Yuan
Cooperation platform Business revenue
China National Health On-line 9,588.21
800FANG.CN 73.96
(www.800pharm.com)
Yaofangwang (www.yaofangwang.com) 422.34
Yiyaowang (www.111.com.cn) 41.38
Other B2B E-business 1,408.64
JD daojia (http://daojia.jd.com) 459.07
Ali Health 115.14
Yao Dao Jia 0.13
Wanda E-business 0.28
Baidu takeout 2.98
ele.me (www.ele.me/home) 1,716.59
16
Meituan Waimai 1,365.62
(waimai.meituan.com)
We Chat Mall 204.87
Total 15,399.19
3. Procurement, inventory and supplier from the headquarter: top 5 suppliers in first half of 2019:
In 10 thousand Yuan
Supplier Procurement amount (tax included) Purchase ratio
No. 1 8,000 11%
No. 2 6,160 8%
No. 3 5,286 7%
No. 4 4,792 6%
No. 5 4,264 6%
4. Warehousing and logistics:
In the first half of 2019, logistics warehouses of Guoda Drugstore spread over 17 provinces, there were 28 large
and small logistics warehouses and the total warehouse area was over 130,000 square meters.
Warehouse area (In Management Logistic charge (in 10
Province Regional enterprise Rate
M )
2
ownership thousand Yuan)
Liaoning Shenyang Guoda 18,821 Self-management 771.51 0.97%
Guangdong Guoda 6,950 Sinopharm Holding 366.66 0.82%
Guangdong Guangzhou entrusted
Jiangmen Guoda 5,072 Self-management 247.38 1.48%
Shanxi Wanmin 10,919 Self-management 611.23 1.11%
Shanxi
Shanxi Yiyuan 8,860 Self-management 553.94 0.82%
Yangzhou Guoda 4,869 Self-management 147.94 0.89%
Jiangsu Nanjing Guoda 2,200 Self-management 105.75 1.81%
Liyang Guoda 1,920 Self-management 92.08 1.04%
Fujian Guoda 5,688 Self-management 114.07 0.75%
Fujian
Quanzhou Guoda 1,096 Self-management 33.61 0.85%
Hebei Hebei Guoda 4,300 Self-management 215.56 0.95%
Shandong Shandong Guoda 4,800 Self-management 240.88 1.20%
Ningxia Ningxia Guoda 3,300 Self-management 141.67 1.28%
Hunan Hunan Guoda 3,600 Self-management 151.64 0.97%
17
Henan Henan Guoda 3,610 Self-management 176.71 1.29%
Zhengzhou Guoda 1,515 Self-management 45.12 9.19%
Inner Mongolia Inner Mongolia 5,236 213.76 0.74%
Self-management
Guoda
Guangxi Guangxi Guoda 1,950 Self-management 133.08 1.29%
Beijing Guoda 4,389 425.93 1.72%
Beijing Self-management
Beijing Jinxiang
Tianjin Tianjin Guoda 1,200 Self-management 68.69 1.74%
Anhui Anhui Guoda 1,000 Self-management 46.75 2.17%
Xinjiang Xinjiang Guoda 3,517 Self-management 148.69 1.07%
Shanghai Fumei 20,000 1310.30 1.32%
Shanghai Self-management
Shanghai Guoda
Zhejiang Zhejiang Guoda 974 Self-management 53.37 2.55%
Shanghai 13,192 Sinopharm Logistic 600.00 0.99%
Guoda HQ
entrusted
Total 138,977 7,016.34 1.20%
5. The commodity suppliers of Guoda Drugstore are mainly external suppliers, and also assisted by some
Sinopharm affiliated enterprises and private brands. The sale for the first half of 2019 was as follows:
In 10 thousand Yuan
Private brand Property Category Turnover (tax included) Ratio
a Group-buying OEM Health-care food 1,237 0.23%
b Group-buying OEM Kids 16 0.00%
c Group-buying OEM Gynecology 10 0.00%
d Group-buying OEM Cold 5 0.00%
e Group-buying OEM Personal care 16 0.00%
f Group-buying OEM Family health 1,602 0.30%
g Group-buying OEM Anti-infection 31 0.01%
h Group-buying OEM Anti-allergic & antidinic 14 0.00%
i Group-buying OEM Clearing heat and detoxitating 136 0.03%
j Group-buying OEM External use drugs 157 0.03%
k Group-buying OEM Five sense organs 123 0.02%
l Group-buying OEM Chinese herbal pieces 1,867 0.35%
Total - - 5,213.50 0.97%
18
II. Main business analysis
Found more in I. Introduction in Discussion and Analysis of Business
Y-o-y changes of main financial data
In RMB
Current period Same period of last year Y-o-y increase/decrease Reasons for changes
Increased 21.42% on a
y-o-y basis, mainly
because the operating
Operating revenue 25,228,147,377.43 20,778,425,602.22 21.42%
revenue has y-o-y growth
for a favorable operation
condition in the period
Consistent with the
Operating costs 22,415,519,952.87 18,367,643,723.84 22.04% growth of operating
revenue basically
Sales expenses 1,483,332,500.73 1,273,588,756.07 16.47% No major changes
Administration expenses 377,216,694.13 351,820,063.78 7.22% No major changes
Increased 80.90% on a
y-o-y basis, mainly
because under the new
leasing standards, the
interest expenses of a
Finance expenses 104,095,254.24 57,541,544.32 80.90% leasing liability is
calculated at the discount
rate for each period of
the lease term, while no
such item occurred at
same period of last year
Income tax expenses 192,243,926.50 164,486,734.32 16.88% No major changes
Increased 416.40% on a
y-o-y basis, mainly
because due to a good
operation conditions, the
Net cash flow arising
1,163,757,581.35 225,357,709.20 416.40% cash received from good
from operating activities
sales, and providing
labor service are
increased on a y-o-y
basis
Net cash flow arising -135,236,954.51 -18,211,602.74 -642.59% Decreased 642.59% on a
19
from investment y-o-y basis, mainly
activities because the bonus
received from associated
enterprise declined from
a year earlier in the
period
Decreased 209.28% on a
y-o-y basis, mainly
because under the new
leasing standards, the
Net cash flow arising cash of rent was included
-891,486,201.45 -288,243,874.04 -209.28%
from financing activities in Other Cash Paid With
Financing Activities
Concerned, while no
such item occurred at
same period of last year
Increased 269.41% on a
y-o-y basis, mainly
Net increase of cash and because net cash flow
136,857,858.14 -80,782,904.11 269.41%
cash equivalent arising from operating
activity increased from a
year earlier.
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period.
Constitution of main business
In RMB
Increase or Increase or Increase or
decrease of decrease of decrease of gross
Gross profit
Operating revenue Operating cost operating revenue operating cost profit ratio over
ratio
over same period over same period same period of
of last year of last year last year
According to industries
Pharmaceutical
18,998,360,457.86 17,841,023,662.96 6.09% 23.12% 23.15% -0.02%
wholesale
Pharmaceutical
5,986,434,262.23 4,513,779,258.68 24.60% 16.16% 17.04% -0.56%
retail
Logistics and
warehousing 46,841,002.95 41,457,036.52 11.49% 201.66% 345.14% -28.53%
services
Leasing and
196,511,654.39 19,259,994.71 90.20% 9.78% 38.28% -2.02%
other
According to products
20
Drugs 23,547,484,934.34 21,063,595,549.23 10.55% 19.35% 20.99% -1.22%
Apparatus 1,345,459,501.68 1,239,062,232.74 7.91% 45.93% 43.30% 1.69%
Other 335,202,941.42 112,862,170.90 66.33% 165.94% 19.73% 41.12%
According to region
Internal revenue 25,228,147,377.43 22,415,519,952.87 11.15% 21.42% 22.04% -0.45%
III. Analysis of non-main business
□ Applicable √ Not applicable
IV. Assets and liability
1. Major changes of assets composition
In RMB
End of current period End of last period
Ratio in Ratio
Ratio in Notes of major changes
Amount total Amount changes
total assets
assets
Mainly because received a capital
increase for subsidiary Guoda
Monetary fund 8,086,328,508.49 24.11% 3,943,595,560.58 16.42% 7.69%
Drugstore in the half year of 2018 from
strategic investor
Account
11,826,440,731.59 35.26% 9,441,542,367.19 39.32% -4.06% No major changes
receivable
Inventory 4,882,673,616.27 14.56% 4,245,354,625.22 17.68% -3.12% No major changes
Investment
140,319,140.00 0.42% 149,409,723.79 0.62% -0.20% No major changes
property
Long-term equity
2,077,811,395.30 6.20% 1,756,735,242.44 7.32% -1.12% No major changes
investment
Fix assets 593,552,480.99 1.77% 550,102,564.29 2.29% -0.52% No major changes
Construction in
31,980,582.21 0.10% 30,805,874.11 0.13% -0.03% No major changes
process
Affected by the more financing for
Short-term loans 3,290,877,595.23 9.81% 2,051,139,651.67 8.54% 1.27%
supply chain
The long-term loans are re-classified to
Long-term loans 0.00% 31,600,000.00 0.13% -0.13% non-current liability due within one
year in the period
21
2. Assets and liability measured by fair value
√Applicable □Not applicable
In RMB
(1) Assets and liability measured by fair value
2019-6-30
Input value used for fair value measurement
Important Total
Active market Important observable
un-observable input
quotation input value
value
(1st Level) (2nd Level) (3rd Level)
Receivables Financing - 325,439,580.18 - 325,439,580.18
Other equity instrument -- -
investment 13,685,760.00 13,685,760.00
Other non-current financial assets - - 140,000,000.00 140,000,000.00
- 339,125,340.18 140,000,000.00 479,125,340.18
2019-1-1
Input value used for fair value measurement
Important Total
Active market Important observable
un-observable input
quotation input value
value
(1st Level) (2nd Level) (3rd Level)
Receivables Financing - 567,775,275.40 - 567,775,275.40
Other equity instrument -- -
investment 13,685,760.00 13,685,760.00
Other non-current financial assets - - 140,000,000.00 140,000,000.00
- 581,461,035.40 140,000,000.00 721,461,035.40
(2) Assets and liability released by fair value
2019-1-1
Input value used for fair value measurement
Active market Important observable Important Total
quotation input value un-observable input
22
value
(1st Level) (2nd Level) (3rd Level)
Long-term loans - 31,600,000.00 - 31,600,000.00
3. Assets right restriction till end of reporting period
Nil
V. Investment
1. Overall situation
√Applicable □ Not applicable
During the reporting period, the company newly established subsidiaries, including Sinopharm Holding Guoda Drugstore
Bayannao’er Co., Ltd. (80% of shareholding ratio), Inner Mongolia Guoda Pharmaceuticals Co., Ltd. (100% of shareholding ratio),
and Sinopharm Holding Guoda Drugstore Yongxingtang Chain (Chaoyang) Co., Ltd. (51% of shareholding ratio). At the same time,
during the reporting period, the company participated in a 30% stake in Shanghai Renbei Pharmacy Co., Ltd. and a 10% stake in
Guangdong Jianhui Construction Investment Management Co., Ltd. For specific investment, please refer to note (VIII) of the
financial report.
2. The major equity investment obtained in the reporting period
□ Applicable √ Not applicable
3. The major non-equity investment doing in the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
The Company had no securities investment in the reporting period.
(2) Derivative investment
□ Applicable √ Not applicable
The Company has no derivatives investment in the Period
23
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
There are no major assets sell in the period
2. Sales of major equity
□ Applicable √ Not applicable
VII. Analysis of main holding Company and stock-jointly companies
√Applicable □ Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company Register Operating Operating
Type Main business Total assets Net Assets Net profit
name capital revenue profit
"Chinese
traditional patent
medicine,
chemical
preparations,
antibiotics,
bio-chemical
medicine,
biological
medicine,
diagnosis
Sinopharm
medicine,
Holding
biological 1,683,333,33 10,847,813,4 5,177,131,80 6,107,899,23 251,957,08
Guoda Subsidiary 186,189,865.75
medicine with 3.00 04.32 9.42 1.32 0.15
Drugstore
features of
Co., Ltd.
treatment and
diagnosis, shaped
packing food,
chemical
products, and
various
commodity and
technique hold by
self-support and
agency as well as
import & export
24
of technology"
"Sales of drugs,
medical apparatus
and instruments,
freightage,
storage, loading
and unloading,
glass wares,
cosmetics and
Sinopharm daily
Holding merchandise; 3,553,249,39 14,292,376,6 4,222,799,88 14,142,231,5 353,918,89
Subsidiary 261,515,224.79
Guangzhou other business 3.17 83.43 7.46 56.01 9.20
Co., Ltd. services, other
professional
consultation,
various goods
agency and for
self-operation,
import & export
of technology,
houses leasing"
"Retail and
distribution in
respect of
Sinopharm pharmaceutical
Holding products and 521,407,965. 4,109,137,77 1,013,776,48 3,140,863,90 114,052,14
Subsidiary 97,976,493.68
Guangxi Co., medical apparatus 79 4.54 2.33 5.65 4.85
Ltd. and instruments,
wholesale and
retails of health
products"
Particular about subsidiaries obtained or disposed in report period
√Applicable □ Not applicable
The method of obtaining and
The influence to the whole production and
Company handling subsidiaries during the
performance
report period
Expand local medicine retail business layout,
Sinopharm Holding Guoda Drugstore
Establishment and without major influence on performance of
Bayan Nur Co., Ltd.
the Company
Expand local medicine retail business layout,
Inner Mongolia Guoda Medicine Co., Ltd. Establishment and without major influence on performance of
the Company
25
Expand local medicine retail business layout,
Sinopharm Holding Guoda Drugstore
Establishment and without major influence on performance of
Yongxingtang Chain (Chaoyang) Co., Ltd.
the Company
Notes of main holding Company and stock-jointly companies
VIII. Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance from January – September 2019
Estimation on accumulative net profit from the beginning of the year to the end of next report period to be loss probably or the
warning of its material change compared with the corresponding period of the last year and explanation on reason
□ Applicable √ Not applicable
X. Risks and countermeasures
1. The management risks in sustainable expansion of marketing network of Guoda Drugstore
The marketing network of Guoda Drugstore has maintained stable growth trend in recent years through newly
opened stores and extended mergers. The expansion of sales area and increase of stores have brought pressure on
the site selection, distribution, cash management, marketing and human resource management of the stores of
Guoda Drugstore. The Company will strengthen the management and construction in merchandise procurement,
logistics and distribution, marketing and other links and establish corresponding management methods for each
link so as to ensure the unified standards and management quality for store expansion.
2. Risks of intensifying market competition
At present, the market concentration ratio of domestic pharmaceutical retail market industry is relatively low, and
the national and regional pharmaceutical retail enterprises have fierce market competition. As the country
continues to introduce corresponding policies to encourage the integration of pharmaceutical retail industry, the
major pharmaceutical retail enterprises in the industry have accelerated the pace of mergers and acquisitions, and
continued to expand the marketing networks, improve the logistics center constructions, and innovate the business
and profit models so that the sales scale and comprehensive strength continuously strengthen. At the same time,
with the upgrading of consumption and the gradual opening of market, the distribution enterprises with powerful
strength are entering the domestic pharmaceutical distribution markets through a variety of ways, so the industry
competition is further intensifying. Sinopharm Accord will integrate the existing resources, create a two-wheel
drive development model with integration of both wholesale and retail, deeply give full play to synergistic effect,
strengthen operation, directly face the end patients and consumers by varieties complementation, capital
cooperation, supply chain collaboration, internationalization promotion, strengthening the overall planning of
information technology and investment in science and technology, and other measures, and achieve brand
globalization through capital operation.
26
3. Risks of changes in industry policy
The development of pharmaceutical retail industry is regulated and influenced by the relevant national policies.
The state has promulgated a series of documents such as Good Supply Practice for Prescription Products and
Some Opinions on Further Reform and Improvement of Drug Production, Circulation and Use Policy, which put
forward specific requirements to the industry operation. Along with the gradual increase of management standards
for management standard, the regulations are constantly being revised and improved and put forward higher
requirements to the business operations. In addition, with the promotion and implementation of the new medical
reform, the state has implemented the essential medicine system, public hospital reform, drug centralized
procurement bidding system and tax reduction policy for anticancer drugs throughout the country, and
repeatedly introduced policies to reduce the drug retail price ceiling in order to reduce the burden of drug use. If
the policies introduced in the process of implementing new medical reform impose restrictions on the industrial
development and the product price of retail Drugstores, the operation and profitability of Guoda Drugstore may
have to face some challenges. The Sinopharm Accord has actively studied the policy direction, positively adjusted
or transformed the innovative business model, and fully implemented compliance management, strengthened
policy risk prevention and control, and ensured the sound quality of operations.
4. Risks of facing the horizontal competition
In the pharmaceutical retail field, Sinopharm Group’s affiliated distribution subsidiaries have also opened some
social retail pharmacies, which constitute a certain degree of horizontal competition with the subordinate Guoda
Drugstore. Sinopharm Group and Sinopharm have pledged to take effective measures to resolve the possible
horizontal competition.
5. Risk of goodwill impairments
On June 30, 2019, the book value of goodwill in the Company’s consolidated financial statements was RMB
847,041,800.60 and was allocated to the asset groups of distribution branches and retail branches. The Company
conducts impairment test on goodwill annually in accordance with the provisions of the Accounting Standards for
Business Enterprises. Disclosures relating to the impairments of goodwill are set out in Notes V. 31 and 43 and
Notes VII. 28 of the financial statements
27
Section V. Important Events
I. In the report period, the Company held annual shareholders’ general meeting and
extraordinary shareholders’ general meeting
1. Shareholders’ General Meeting in the report period
Ratio of investor
Session of meeting Type Date Date of disclosure Index of disclosure
participation
Juchao
Website—(http://www.cni
First extraordinary nfo.com.cn) "Resolution
Extraordinary
general meeting of 62.79% 2019-01-24 2019-01-25 Notice of First
general meeting
2019 extraordinary general
meeting of 2019 No.:
2019-07
Juchao
Website—(http://www.cni
Annual General
AGM 65.67% 2019-05-17 2019-05-18 nfo.com.cn) "Resolution
Meeting of 2018
Notice of AGM of 2018
No.: 2019-26
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √ Not applicable
II. Profit distribution plan and capitalizing of common reserves plan for the Period
□ Applicable √ Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from capital reserve either for
the semi-annual year.
III. Commitments completed in Period and those without completed till end of the Period
from actual controller, shareholders, related parties, purchaser and companies
√Applicable □ Not applicable
Type of
Commitme Commitme Implementati
Commitments Promise commitment Content of commitments
nt date nt term on
s
Commitments in Sinopharm Commitment As a large pharmaceutical commercial enterprise whose 2005-06-2 Long-term Normally
28
report of Holding of business involves pharmaceutical wholesale and retail, 1 effective implementing
acquisition or shareholders Sinopharm Holding may overlap with the Company in
equity change geographical segmentation during its future business
development. To avoid the potential peer competition
brought by such geographical overlap, Sinopharm
Holding undertakes that, upon the transfer of shares of
Sinopharm Holding Guangzhou it held to Accord Pharma,
"1. it will not newly-establish or broaden within
Guangdong any business operation that actually compete
with that of Accord Pharma, or set up any new
subsidiaries or subordinate enterprises who engage in
such business. 2. It will enter into business delineation
with Accord Pharma and Sinopharm Holding Guangzhou,
thereby giving the three parties clear geographical areas to
carry out pharmaceutical wholesale and retail businesses,
so as to avoid potential peer competition. Apart from
above, Sinopharm Holding will no longer newly-establish
any enterprise that may compete with Accord Pharma in
the production and R&D of pharmaceutical products.""
"Sinopharm Group and Sinopharm Foreign Trade made
commitments in the Report about China National Accord
Medicines Corporation Ltd. Purchasing Assets and
Raising Supporting Funds and Related Transactions by
Asset Sale, Stock Issuance and Cash Payment that the
non-public offering of shares of Sinopharm Accord
obtained from this transaction shall not be transferred
within 36 months since the finish date of issuance and
Sinopharm
shall be unlocked after 36 months since the date of listing.
Group Co.,
Within 6 months after the completion of this transaction,
Ltd;China
Commitment if the closing price of the stock of Sinopharm Accord is
National 2016-05-3 Normally
Commitments in on restricted less than the issue price in continuous 20 trading days, or 36 months
Pharmaceuti 1 implementing
shares the closing price at the end of 6 months after the
assets
cal Foreign
completion of this transaction is less than the issue price,
reorganization
Trade
the lockup period of the stock of Sinopharm Group and
Corporation
Sinopharm Foreign Trade obtained from Sinopharm
Accord by this transaction will automatically prolong at
least 6 months. The shares derived from stock dividends
allocation and capital reserve increase transferring of
Sinopharm Accord based on the non-public offering of
shares of Sinopharm Accord obtained by this transaction
should also abide by the above stock restricted
arrangements."
Ping’an Commitment "Ping An Asset Management Co., Ltd. made 2016-05-3 Normally
36 months
Assets on restricted commitments in the Report about China National Accord 1 implementing
29
Managemen shares Medicines Corporation Ltd. Purchasing Assets and
t Co., Ltd Raising Supporting Funds and Related Transactions by
Asset Sale, Stock Issuance and Cash Payment that the
non-public offering of shares of Sinopharm Accord
obtained from this transaction shall not be transferred
within 36 months since the finish date of issuance and
shall be unlocked after 36 months since the date of listing.
After placement completed, the shares of the listed
Company increased due to bonus shares and turning to
increase capital should pursuit to the restriction
arrangement the above mentioned.
"Sinopharm Accord made commitments in the Report
about China National Accord Medicines Corporation Ltd.
Purchasing Assets and Raising Supporting Funds and
Related Transactions by Asset Sale, Stock Issuance and
Cash Payment that the net profits attributable to the
owners of parent company after deducting the
non-recurring gains and losses committed by Zhijun
Pharmaceutical in 2016, 2017 and 2018 should be
respectively no less than RMB 222,671,700.00, RMB
232,561,600.00, and RMB 241,878,700.00; the net profits
attributable to the owners of parent company after
deducting the non-recurring gains and losses committed
China Performance
by Zhijun Pharmacy Trade in 2016, 2017 and 2018 should
National commitment
be respectively no less than RMB 2,379,600.00, RMB
Accord and 2016-05-3 2018-12-3
2,335,100.00, and RMB 2,345,600.00; the net profits Completed
Medicines compensatio 1 1
attributable to the owners of parent company after
Corporation n
deducting the non-recurring gains and losses committed
Ltd. arrangement
by Pingshan Pharmaceutical in 2016, 2017 and 2018
should be respectively no less than RMB 39,716,300.00,
RMB 43,033,500.00, and RMB 50,325,500.00. If the
actual net profits attributable to the owners of parent
company after deducting the non-recurring gains and
losses of Zhijun Pharmaceutical / Zhijun Pharmacy Trade
/ Pingshan Pharmaceutical don’t reach the committed net
profits attributable to the owners of parent company after
deducting the non-recurring gains and losses, Sinopharm
Accord should compensate in accordance with the
stipulations of the Profit Forecast Compensation
Agreement for the Stock Issuance and Assets Purchase."
China "The listed Company, controlling shareholders, the
Other
National actual controllers made commitments in the Report about 2016-05-3 Long-term Normally
commitment
Accord China National Accord Medicines Corporation Ltd. 1 effective implementing
s
Medicines Purchasing Assets and Raising Supporting Funds and
30
Corporation Related Transactions by Asset Sale, Stock Issuance and
Ltd.; Cash Payment that the Company shall not violate the
Sinopharm relevant regulations of Article 16 in Securities Issuance
Group Co., and Underwriting Management Approach, and directly or
Ltd;Sinopha indirectly providing financial assistance or compensation
rm for the subscription objects and its shareholders / partners
/ clients (if any) of this non-public offering does not exist
and will not occur in the future."
"Ping An Asset Management Co., Ltd. has made
commitments that the unit intends to utilize Ping An Asset
Xinxiang No.3 asset management product and Ping An
Asset Xinxiang No.7 asset management product to fund
and subscribe some non-public offering of shares of
Sinopharm Accord in this major asset restructuring
process, and has the ability to subscribe the shares, the
Ping’an
Other relevant capital sources are legitimate, there is no
Assets 2016-03-2 Long-term Normally
commitment hierarchical income and other structured arrangements,
Managemen 4 effective implementing
s and there is no use of leveraged funds. The unit does not
t Co., Ltd
receive financial assistance or compensation from
Sinopharm Accord and its controlling shareholders, or the
actual controllers. The investors’ structure of
above-mentioned products does not change from the issue
date of the commitment letter to the end date of the
lockup period of the stock that the unit subscribes from
Sinopharm Accord."
"Sinopharm Group made commitments in the Report
about China National Accord Medicines Corporation Ltd.
Purchasing Assets and Raising Supporting Funds and
Related Transactions by Asset Sale, Stock Issuance and
Cash Payment that the Company shall be the controlling
shareholder of China National Accord Medicines
Commitment
Corporation Ltd. (hereinafter referred to as Sinopharm
s on
Accord) up to the issue date of this commitment letter,
horizontal
Sinopharm after the completion of this major assets reorganization
competition, 2016-12-2 Long-term Normally
Group Co., (hereinafter referred to as "this reorganization"),
relation 8 effective implementing
Ltd Sinopharm Accord shall no longer hold shares or operate
transaction
relevant businesses of pharmaceutical industry, the main
and capital
business will become the national pharmaceutical retail
occupation
and pharmaceutical distribution business in Guangdong
and Guangxi. In order to support the business
development of Sinopharm Accord and avoid horizontal
competition with Sinopharm Accord and its controlling
enterprises, the Company made following irrevocable
commitments and promises:1, after the completion of this
31
reorganization, as for the social retail drugstore assets
except for Sinopharm Holding Guoda Drugstore Co., Ltd.
and its subsidiaries and branches owned or controlled by
the Company, the Company promised to take appropriate
measures to solve the horizontal competition problem in
the pharmaceutical retail business between the Company
and Sinopharm Accord within 5 years since the
completion date of this reorganization. 2. The Company's
way of resolving horizontal competition problems
includes and is not limited to purchasing the social retail
drugstore assets subordinated to the Company by
Sinopharm Accord, taking the entrusted operation, leasing
or contracting operation by Sinopharm Accord and its
controlling enterprises in accordance with the methods
permitted bu national laws to hold or control the social
retail drugstore assets, or transferring the controlling stake
of the social retail drugstore assets by the Company. 3. If
the shareholders of the social retail drugstore assets
(hereinafter referred to as "the third party") of the
Company or the enterprises controlled by the Company
have or are going to perform the preemptive rights under
the same conditions in accordance with relevant laws and
corresponding Articles of Association, then the above
commitment will not be applicable, but in this case, the
Company should try its utmost to urge the third party to
waive its preemptive rights. If the Company is unable to
urge the third party to give up the preemptive rights, the
Company will urge the enterprises controlled by the
Company to transfer the social retail drugstore assets to
the third party to solve the horizontal competition
problem. 4. The pharmaceutical distribution assets
currently owned or controlled by the Company are
distributed outside Guangdong and Guangxi regions, there
is no horizontal competition with Sinopharm Accord, the
Company will not engage in the same or similar operation
businesses to Sinopharm Accord in Guangdong and
Guangxi in the future, if the Company and its holding
enterprises obtain the new business opportunities
constituting substantial horizontal competition
(hereinafter referred to as competitive new business)
within the pharmaceutical distribution business scope of
Sinopharm Accord in Guangdong and Guangxi, the
Company will send written notice to Sinopharm Accord
and try its utmost to firstly provide the new business
32
opportunities to Sinopharm Accord or its holding
enterprises according to the reasonable and fair terms and
conditions so as to avoid the horizontal competition with
Sinopharm Accord and its holding enterprises. 5. Since
the issue date of this commitment letter, the Company
promises to indemnify Sinopharm Accord for all actual
losses, damages and expenses caused by the Company in
violation of any commitments under this commitment
letter. 6. This commitment letter terminates when
following circumstances occur (subject to the earlier one):
(1) the Company is no longer the controlling shareholder
of Sinopharm Accord; or (2) the shares of Sinopharm
Accord terminate the listing at the stock exchange."
"Sinopharm made commitments in the Report about
China National Accord Medicines Corporation Ltd.
Purchasing Assets and Raising Supporting Funds and
Related Transactions by Asset Sale, Stock Issuance and
Cash Payment that the Company shall be the actual
controller of China National Accord Medicines
Corporation Ltd. (hereinafter referred to as Sinopharm
Accord) up to the issue date of this commitment letter,
after the completion of this major assets reorganization
(hereinafter referred to as "this reorganization"),
Sinopharm Accord shall no longer hold shares or operate
relevant businesses of pharmaceutical industry, the main
Commitment
business will become the national pharmaceutical retail
s on
China and pharmaceutical distribution business in Guangdong
horizontal
National and Guangxi. In order to support the business
competition, 2016-12-2 Long-term Normally
Pharmaceuti development of Sinopharm Accord and avoid horizontal
relation 8 effective implementing
cal Group competition with Sinopharm Accord and its controlling
transaction
Corporation enterprises, the Company made following irrevocable
and capital
commitments and promises:1, after the completion of this
occupation
reorganization, as for the social retail drugstore assets
except for Sinopharm Group Guoda Pharmacy Co., Ltd.
and its subsidiaries and branches owned or controlled by
the Company, the Company promised to take appropriate
measures to solve the horizontal competition problem in
the pharmaceutical retail business between the Company
and Sinopharm Accord within 5 years since the
completion date of this reorganization. 2. The Company's
way of resolving horizontal competition problems
includes and is not limited to purchasing the social retail
drugstore assets subordinated to the Company by
Sinopharm Accord, taking the entrusted operation, leasing
33
or contracting operation by Sinopharm Accord and its
controlling enterprises in accordance with the methods
permitted bu national laws to hold or control the social
retail drugstore assets, or transferring the controlling stake
of the social retail drugstore assets by the Company. 3. If
the shareholders of the social retail drugstore assets
(hereinafter referred to as "the third party") of the
Company or the enterprises controlled by the Company
have or are going to perform the preemptive rights under
the same conditions in accordance with relevant laws and
corresponding Articles of Association, then the above
commitment will not be applicable, but in this case, the
Company should try its utmost to urge the third party to
waive its preemptive rights. If the Company is unable to
urge the third party to give up the preemptive rights, the
Company will urge the enterprises controlled by the
Company to transfer the social retail drugstore assets to
the third party to solve the horizontal competition
problem. 4. The pharmaceutical distribution assets
currently owned or controlled by the Company are
distributed outside Guangdong and Guangxi regions, there
is no horizontal competition with Sinopharm Accord, the
Company will not engage in the same or similar operation
businesses to Sinopharm Accord in Guangdong and
Guangxi in the future, if the Company and its holding
enterprises obtain the new business opportunities
constituting substantial horizontal competition
(hereinafter referred to as competitive new business)
within the pharmaceutical distribution business scope of
Sinopharm Accord in Guangdong and Guangxi, the
Company will send written notice to Sinopharm Accord
and try its utmost to firstly provide the new business
opportunities to Sinopharm Accord or its holding
enterprises according to the reasonable and fair terms and
conditions so as to avoid the horizontal competition with
Sinopharm Accord and its holding enterprises. 5. This
commitment letter terminates when following
circumstances occur (subject to the earlier one): (1) the
Company is no longer the actual controller of Sinopharm
Accord; or (2) the shares of Sinopharm Accord terminate
the listing at the stock exchange."
Commitments Commitment Sinopharm Holding made commitments in the Controlling
Sinopharm 2013-09-0 Long-term
make in initial of Commitment Letter About Sinopharm Group Co., Ltd. to shareholder is
Holding 5 effective
public offering shareholders Avoid Horizontal Competition: "First, the Company and implement in
34
or re-financing the Company’s wholly-owned, controlling or other real earnest,
enterprises with actual control (in addition to Sinopharm Sinopharm
Accord and its controlling enterprises, hereinafter the Accord will
same) don’t have businesses and operations constituting actively urge
the substantial horizontal competition to Sinopharm the
Accord and its controlling enterprises. Second, the controlling
Company and the Company’s wholly-owned, controlling shareholder
or other enterprises with actual control shall not engage, and actual
participate in or do businesses and activities in controller to
Guangdong and Guangxi which constitute substantial fulfill
competition to Sinopharm Accord and pharmaceutical commitments
business services. Third, the Company and the Company’s
wholly-owned, controlling or other enterprises with actual
control shall not engage, participate in or do businesses
and activities which constitute substantial competition to
Sinopharm Accord and pharmaceutical industry
businesses. Fourth, the Company shall not take advantage
of the control to Sinopharm Accord to damage the
legitimate rights and interests of Sinopharm Accord and
other shareholders (especially medium and small
shareholders). This commitment letter takes effect from
the issue date, and remains in effect for the entire period
when the Company acts as the controlling shareholder or
its related party of Sinopharm Accord. Within the
effective period of the commitment, if the Company
violates this commitment and causes a loss to Sinopharm
Accord, the Company will timely make full compensation
for Sinopharm Accord."
Sinopharm Holding made commitments in the
Controlling
Commitment Letter About Sinopharm Group Co., Ltd. to
shareholder is
Regulate the Related Transactions with China National
implement in
Accord Medicines Corporation Ltd.: "First, when the
real earnest,
Company is controlling Sinopharm Accord, the Company
Sinopharm
and the companies and enterprises directly and indirectly
Accord will
Commitment controlled by the Company ("related party" for short) will
Sinopharm 2013-09-0 Long-term actively urge
of strictly regulate the related transactions with Sinopharm
Holding 5 effective the
shareholders Accord and its controlling enterprises. Second, for the
controlling
related transactions that cannot be avoided or have
shareholder
reasonable reasons to occur, the Company and related
and actual
party shall sign normative related transaction agreement
controller to
in accordance with relevant laws with Sinopharm Accord.
fulfill
Sinopharm Accord implements the approval procedures
commitments
and fulfills the information disclosure obligations of the
35
related transactions according to relevant laws,
regulations, rules, other normative documents and the
constitutions of Sinopharm Accord. Third, for the related
transactions that cannot be avoided or have reasonable
reasons to occur, the Company and related party shall
abide by the open, fair and just market principles and
confirm the price of related transactions in accordance
with the price that the independent third party without
association sets for the same and similar transactions, and
ensure the fairness of the price of the related transactions.
Fourth, when the board of directors and the general
meeting of stockholders of Sinopharm Accord vote on the
related transactions involving the Company and other
enterprises controlled by the Company, the Company shall
fulfill the necessary obligations that the associated
directors and associated shareholders abstain from voting
in accordance with the relevant provisions, and abide by
the legal procedures for approving related transactions
and the information disclosure obligations. Fifth, the
Company guarantees to participate in the shareholders'
general meeting, equally exercise the corresponding rights
and take the corresponding obligations in accordance with
the constitutions of Sinopharm Accord, not to take
advantage of controlling shareholder status to seek
improper benefits or utilize related transactions to
illegally transfer the funds and profits of Sinopharm
Accord, and not to damage the legitimate rights and
interests of other shareholders (especially the medium and
small shareholders) of Sinopharm Accord. Sixth, this
commitment letter comes into force from the issue date
and remains in effect for the entire period when the
Company acts as the controlling shareholder or its related
party of Sinopharm Accord. Within the effective period of
the commitment, if the Company violates this
commitment and causes a loss to Sinopharm Accord, the
Company will timely make full compensation for
Sinopharm Accord."
Sinopharm made commitments in the Commitment Letter Controlling
China About China National Pharmaceutical Group Corporation shareholder is
National Commitment to Avoid Horizontal Competition with China National implement in
2013-10-1 Long-term
Pharmaceuti of actual Accord Medicines Corporation Ltd.: "First, in the next real earnest,
6 effective
cal Group controller five years, Sinopharm plans to take appropriate measures Sinopharm
Corporation (including assets replacement or acquisition, equity Accord will
reorganization, etc.) to resolve the horizontal competition actively urge
36
between Sinopharm Weiqida and Sinopharm Accord. the
Second, in addition to the past matters and matters controlling
disclosed in this commitment letter, the Company and the shareholder
Company’s wholly-owned, controlling or other and actual
enterprises with actual control rights (except for controller to
Sinopharm Accord and its controlling enterprises, the fulfill
same as below) shall not directly engaged in, participate commitments
in or do the businesses an activities constituting actual
competition to the production and operation of Sinopharm
Accord in China. The relevant commitments about
avoiding horizontal competition that the Company made
in the past still remain in effect. Third, the Company shall
not take advantage of the control relationship to
Sinopharm Accord to damage the legitimate rights and
interests of Sinopharm Accord and its shareholders
(especially the medium and small shareholders). Fourth,
this commitment letter comes into force from the issue
date and remains in effect for the entire period when the
Company acts as the controlling shareholder or its related
party of Sinopharm Accord."
Sinopharm made commitments in the Commitment Letter
About Sinopharm Group Co., Ltd. to Regulate the Related
Transactions with China National Accord Medicines
Corporation Ltd.: "First, when the Company is controlling
Sinopharm Accord, the Company and the companies and
enterprises directly and indirectly controlled by the Controlling
Company ("related party" for short) will strictly regulate shareholder is
the related transactions with Sinopharm Accord and its implement in
controlling enterprises. Second, for the related real earnest,
transactions that can not be avoided or have reasonable Sinopharm
China
reasons to occur, the Company and related party shall sign Accord will
National Commitment
normative related transaction agreement in accordance 2013-09-2 Long-term actively urge
Pharmaceuti of actual
with relevant laws with Sinopharm Accord. Sinopharm 2 effective the
cal Group controller
Accord implements the approval procedures and fulfills controlling
Corporation
the information disclosure obligations of the related shareholder
transactions according to relevant laws, regulations, rules, and actual
other normative documents and the constitutions of controller to
Sinopharm Accord. Third, for the related transactions that fulfill
cannot be avoided or have reasonable reasons to occur, commitments
the Company and related party shall abide by the open,
fair and just market principles and confirm the price of
related transactions in accordance with the price that the
independent third party without association sets for the
same and similar transactions, and ensure the fairness of
37
the price of the related transactions. Fourth, when the
board of directors and the general meeting of stockholders
of Sinopharm Accord vote on the related transactions
involving the Company and other enterprises controlled
by the Company, the Company shall fulfill the necessary
obligations that the associated directors and associated
shareholders abstain from voting in accordance with the
relevant provisions, and abide by the legal procedures for
approving related transactions and the information
disclosure obligations. Fifth, the Company guarantees not
to take advantage of actual controller status to seek
improper benefits or utilize related transactions to
illegally transfer the funds and profits of Sinopharm
Accord, and not to damage the legitimate rights and
interests of other shareholders (especially the medium and
small shareholders) of Sinopharm Accord. Sixth, this
commitment letter comes into force from the issue date
and remains in effect for the entire period when the
Company acts as the actual controller or its related party
of Sinopharm Accord.
Completed on
Y
time (Y/N)
IV. Appointment and non-reappointment (dismissal) of CPA
Financial report has been audit or not
□ Yes √ No
Not been audited.
V. Explanation from Board of Directors, Supervisory Committee for "Qualified Opinion"
that issued by CPA
□ Applicable √ Not applicable
VI. Explanation from the Board for "Qualified Opinion" of last year’s
□ Applicable √ Not applicable
VII. Bankruptcy reorganization
□ Applicable √ Not applicable
No bankruptcy reorganization for the Company in Period.
38
VIII. Lawsuits
Material lawsuits and arbitration
□ Applicable √ Not applicable
No significant lawsuits and arbitration occurred in the reporting period.
Other lawsuits
As of the date of disclosing this report, the Company has 25 cases of contract disputes in the daily operation, with total amount of
RMB 85,067,800 involved; three cases of intellectual property right dispute, involving a total amount of RMB15,300,000; and one
case of equity transfer dispute, involving a total amount of RMB 32,913,800.
The total amount involved in the above 29 cases was RMB 133,281,600, which neither formed the expected liabilities, nor had an
effect on normal operation and management of the Company.
IX. Penalty and rectification
□ Applicable √ Not applicable
No penalty and rectification for the Company in Period.
X. Integrity of the Company and its controlling shareholders and actual controllers
√Applicable □ Not applicable
In the reporting period, integrity of the Company and its controlling shareholders and actual controllers is good and they do not have
a relatively large amount of due existing debt with court's effective judgments.
XI. Implementation of the Company’s stock incentive plan, employee stock ownership plan or
other employee incentives
□ Applicable √ Not applicable
The Company has no equity incentive plan, employee stock ownership plans or other employee incentives in Period.
XII. Major related transaction
1. Related transaction with routine operation concerned
(1) Related transaction with routine operation concerned can be found in "12. Related party and related transaction" carried in
Section X. Financial Report;
(2) The related transactions are settled in cash and by notes, according to the "Proposal of Expected Routine Related Transactions
with Subordinate Enterprise for Year of 2019" was deliberated and approved by 10th session of 8th BOD held on 23 April 2019 and
"Announcement on Expected Routine Related Transaction for Year of 2019" (Notice No.: 2019-18) released on 25 April 2019, in
2019, related sales takes 34.61% in total expected amount for the whole year, and related procurement takes 38.47% in total expected
amount for the whole year.
39
2. Related transactions by assets acquisition and sold
□ Applicable √ Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
3. Related transactions of mutual investment outside
□ Applicable √ Not applicable
No main related transactions of mutual investment outside for the Company in reporting period.
4. Contact of related credit and debt
√Applicable □ Not applicable
Whether the Company had non-operating contact of related credit and debt
□Yes √ No
The Company had no non-operating contact of related credit and debt in the reporting period.
5. Other related transactions
□ Applicable √ Not applicable
The Company had no other related transaction in the period.
XIII. Non-operational fund occupation from controlling shareholders and its related party
□ Applicable √ Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
XIV. Significant contract and implementations
1. Trusteeship, contract and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No trusteeship for the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No contract for the Company in reporting period.
(3) Leasing
□ Applicable √ Not applicable
40
No leasing for the Company in reporting period.
2. Major guarantees
√Applicable □ Not applicable
(1) Guarantees
In 10 thousand Yuan
Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)
Guarante
Related
Actual date of e for
Name of the Announce Implemen
Guarantee happening (Date Actual Guarantee Guarantee
Company ment related
limit of signing guarantee limit type term ted (Y/N)
guaranteed disclosure
agreement) party
date
(Y/N)
Guarantee between the Company and the subsidiaries
Guarante
Related
Actual date of e for
Name of the Announce Implemen
Guarantee happening (Date Actual Guarantee Guarantee
Company ment related
limit of signing guarantee limit type term ted (Y/N)
guaranteed disclosure
agreement) party
date
(Y/N)
Sinopharm
Holding Joint liability 2019.5.20-20
2019-04-25 15,000 2019-05-20 10,105.66 N N
Guangzhou Co., assurance 20.5.20
Ltd.
Sinopharm
Holding Joint liability 2019.5.31-20
2019-04-25 50,000 2019-05-31 50,000 N N
Guangzhou Co., assurance 20.5.30
Ltd.
Sinopharm
Holding Joint liability 2018.12.20-2
2018-09-19 60,000 2018-12-20 45,242.22 N N
Guangzhou Co., assurance 019.12.19
Ltd.
Sinopharm
Holding Joint liability 2019.1.18-20
2018-09-19 25,000 2019-01-18 24,889.43 N N
Guangzhou Co., assurance 20.1.17
Ltd.
Sinopharm
Holding Joint liability 2018.8.7-201
2018-03-22 15,000 2018-08-07 N N
Guangzhou Co., assurance 9.8.6
Ltd.
41
Sinopharm
Holding Joint liability 2019.5.20-20
2019-04-25 70,000 2019-05-20 50,523.89 N N
Guangzhou Co., assurance 20.5.19
Ltd.
Sinopharm
Holding Joint liability 2019.1.25-20
2018-09-19 5,000 2019-01-25 N N
Guangzhou Co., assurance 20.1.24
Ltd.
Sinopharm
Holding Joint liability 2018.10.15-2
2018-09-19 35,000 2018-10-15 N N
Guangzhou Co., assurance 019.10.14
Ltd.
Sinopharm
Holding Joint liability 2018.6.5-201
2018-03-22 40,000 2018-06-05 39,761.38 N N
Guangzhou Co., assurance 9.6.4
Ltd.
Sinopharm
Holding Joint liability 2018.6.22-20
2018-03-22 20,000 2018-06-22 5,326.67 N N
Guangzhou Co., assurance 19.4.30
Ltd.
Sinopharm
Holding Joint liability 2018.7.5-201
2018-03-22 20,000 2018-07-05 5,485.17 N N
Guangzhou Co., assurance 9.7.4
Ltd.
Sinopharm
Holding Joint liability 2018.6.13-20
2018-03-22 60,000 2018-06-13 17,438.73 N N
Guangzhou Co., assurance 19.6.12
Ltd.
Sinopharm
Holding Joint liability 2019.5.20-20
2019-04-25 2,500 2019-05-20 N N
Guangdong assurance 20.5.20
Yuexing Co., Ltd.
Sinopharm
Holding Joint liability 2018.10.15-2
2018-09-19 5,000 2018-10-15 4,195.13 N N
Guangdong assurance 019.10.14
Yuexing Co., Ltd.
Sinopharm
Holding Joint liability 2019.5.31-20
2019-04-25 10,000 2019-05-31 8,888.96 N N
Guangdong assurance 20.5.30
Yuexing Co., Ltd.
Sinopharm 2018-03-22 5,000 2018-07-12 4,964.97 Joint liability 2018.7.12-20 N N
42
Holding assurance 19.6.12
Guangdong
Yuexing Co., Ltd.
Sinopharm
Joint liability 2018.10.15-2
Holding Dongguan 2018-09-19 2,000 2018-10-15 1,000 N N
assurance 019.10.14
Co., Ltd.
Sinopharm
Joint liability 2018.10.15-2
Holding Foshan 2018-09-19 1,500 2018-10-15 36.16 N N
assurance 019.10.14
Co., Ltd.
Sinopharm
Joint liability 2018.11.20-2
Holding Foshan 2018-09-19 1,000 2018-11-20 600.71 N N
assurance 019.11.19
Co., Ltd.
Sinopharm
Joint liability 2019.5.31-20
Holding Foshan 2019-04-25 3,000 2019-05-31 N N
assurance 20.5.30
Co., Ltd.
Sinopharm
Holding Joint liability 2018.11.16-2
2018-09-19 3,000 2018-11-09 1,868.89 N N
Guangdong assurance 019.10.31
Hengxing Co., Ltd.
Sinopharm
Holding Joint liability 2018.6.6-201
2018-03-22 5,000 2018-06-06 393.52 N N
Guangdong assurance 9.6.5
Hengxing Co., Ltd.
Sinopharm
Joint liability 2018.10.12-2
Holding Huizhou 2018-09-19 1,000 2018-10-12 415.6 N N
assurance 019.10.11
Co., Ltd.
Sinopharm
Joint liability 2018.9.18-20
Holding Huizhou 2018-03-22 3,000 2018-09-18 N N
assurance 19.9.17
Co., Ltd.
Sinopharm
Holding Joint liability 2018.10.15-2
2018-09-19 1,000 2018-10-15 993.53 N N
(Jiangmen) Co., assurance 019.10.14
Ltd.
Sinopharm
Joint liability 2018.10.15-2
Holding Meizhou 2018-09-19 1,000 2018-10-15 500 N N
assurance 019.10.14
Co., Ltd.
Foshan Nanhai
Joint liability 2018.7.31-20
Pharmaceutical 2018-03-22 5,000 2018-07-31 N N
assurance 19.7.31
Co., Ltd.
Foshan Nanhai Joint liability 2018.10.15-2
2018-09-19 5,000 2018-10-15 1,133.85 N N
Pharmaceutical assurance 019.10.14
43
Co., Ltd.
Foshan Nanhai
Joint liability 2019.5.31-20
Pharmaceutical 2019-04-25 10,000 2019-05-31 6,019.69 N N
assurance 20.5.30
Co., Ltd.
Foshan Nanhai
Joint liability 2018.11.20-2
Pharmaceutical 2018-09-19 3,000 2018-11-20 2,914.03 N N
assurance 019.11.19
Co., Ltd.
Foshan Nanhai
Uptodate & Joint liability 2018.7.31-20
2018-03-22 5,000 2018-07-31 N N
Special Medicines assurance 19.7.31
Co. Ltd.
Foshan Nanhai
Uptodate & Joint liability 2018.10.15-2
2018-09-19 6,000 2018-10-15 1,499.92 N N
Special Medicines assurance 019.10.14
Co. Ltd.
Foshan Nanhai
Uptodate & Joint liability 2019.5.31-20
2019-04-25 10,000 2019-05-31 4,409.75 N N
Special Medicines assurance 20.5.30
Co. Ltd.
Foshan Nanhai
Uptodate & Joint liability 2018.11.20-2
2018-09-19 3,000 2018-11-20 1,901.75 N N
Special Medicines assurance 019.11.19
Co. Ltd.
Guangdong
Nanfang
Joint liability 2018.7.1-201
Pharmaceutical 2018-03-22 15,000 2018-07-01 13,353.98 N N
assurance 9.6.30
Foreign Trade Co.,
Ltd.
Guangdong
Nanfang
Joint liability 2019.5.27-20
Pharmaceutical 2019-04-25 15,000 2019-05-27 12,543.48 N N
assurance 19.10.31
Foreign Trade Co.,
Ltd.
Guangdong
Nanfang
Joint liability 2018.7.2-201
Pharmaceutical 2018-03-22 10,000 2018-07-02 9,144.56 N N
assurance 9.6.26
Foreign Trade Co.,
Ltd.
Guangdong
Joint liability 2018.9.7-201
Nanfang 2018-03-22 10,000 2018-09-07 5,522.15 N N
assurance 9.9.6
Pharmaceutical
44
Foreign Trade Co.,
Ltd.
Guangdong
Nanfang
Joint liability 2018.10.15-2
Pharmaceutical 2018-09-19 3,000 2018-10-15 N N
assurance 019.10.14
Foreign Trade Co.,
Ltd.
Sinopharm
Joint liability 2018.10.15-2
Holding Shantou 2018-09-19 500 2018-10-15 500 N N
assurance 019.10.14
Co., Ltd.
Sinopharm
Joint liability 2018.10.15-2
Holding Zhanjiang 2018-09-19 1,000 2018-10-15 900 N N
assurance 019.10.14
Co., Ltd.
Sinopharm
Joint liability 2018.10.15-2
Holding Zhaoqing 2018-09-19 2,000 2018-10-15 165.06 N N
assurance 019.10.14
Co., Ltd.
Sinopharm
Holding Joint liability 2018.10.15-2
2018-09-19 1,000 2018-10-15 994.71 N N
Zhongshan Co., assurance 019.10.14
Ltd.
Sinopharm
Joint liability 2018.10.15-2
Holding Zhuhai 2018-09-19 1,000 2018-10-15 998.29 N N
assurance 019.10.14
Co., Ltd.
Guangdong
Dongfang New Joint liability 2018.8.20-20
2018-03-22 4,000 2018-08-20 3,928.03 N N
Special Medicine assurance 19.8.19
Co., Ltd
Guangdong
Dongfang New Joint liability 2019.1.10-20
2018-09-19 5,000 2019-01-10 4,975.91 N N
Special Medicine assurance 20.1.9
Co., Ltd
Guangdong
Dongfang New Joint liability 2019.6.14-20
2019-04-25 2,000 2019-06-14 1,594.92 N N
Special Medicine assurance 20.6.13
Co., Ltd
Guangdong
Dongfang New Joint liability 2019.5.31-20
2019-04-25 5,000 2019-05-31 4,395.35 N N
Special Medicine assurance 20.5.30
Co., Ltd
China National Joint liability 2018.12.3-20
2018-09-19 20,000 2018-12-03 9,657.33 N N
Accord Medicines assurance 19.11.27
45
Corporation Ltd.
Sinopharm
Joint liability 2018.10.15-2
Holding Shenzhen 2018-03-22 500 2018-10-15 450 N N
assurance 019.10.14
Jianmin Co., Ltd.
Sinopharm
Joint liability 2018.12.24-2
Holding Shenzhen 2018-09-19 1,000 2018-12-24 N N
assurance 019.12.24
Jianmin Co., Ltd.
Sinopharm
Joint liability 2018.10.15-2
Holding Shenzhen 2018-03-22 500 2018-10-15 57.12 N N
assurance 019.10.14
Medicine Co., Ltd
Sinopharm
Joint liability 2018.10.15-2
Holding Shenzhen 2018-09-19 9,000 2018-10-15 2,500 N N
assurance 019.10.14
Yanfeng Co., Ltd.
Sinopharm
Joint liability 2018.12.03-2
Holding Shenzhen 2018-09-19 5,000 2018-12-03 3,980 N N
assurance 019.11.27
Yanfeng Co., Ltd.
Sinopharm
Joint liability 2018.06.13-2
Holding Shenzhen 2018-03-22 7,000 2018-06-20 4,500 N N
assurance 019.06.12
Yanfeng Co., Ltd.
Sinopharm
Joint liability 2018.10.15-2
Holding Liuzhou 2018-09-19 9,000 2018-10-15 5,600 N N
assurance 019.10.14
Co., Ltd.
Sinopharm
Joint liability 2019.6.21-20
Holding Liuzhou 2019-04-25 10,000 2019-06-21 4,757.03 N N
assurance 20.6.20
Co., Ltd.
Sinopharm
Joint liability 2019.2.27-20
Holding Liuzhou 2018-09-19 6,000 2019-02-27 3,181.33 N N
assurance 20.2.26
Co., Ltd.
Sinopharm
Joint liability 2018.11.12-2
Holding Liuzhou 2018-09-19 5,000 2018-11-12 3,312.69 N N
assurance 019.11.11
Co., Ltd.
Sinopharm
Joint liability 2018.9.7-201
Holding Liuzhou 2018-03-22 9,000 2018-09-07 1,500.22 N N
assurance 9.9.5
Co., Ltd.
Sinopharm
Joint liability 2018.11.26-2
Holding Guangxi 2018-09-19 20,000 2018-11-26 19,297.35 N N
assurance 019.11.26
Co., Ltd.
Sinopharm
Joint liability 2018.10.15-2
Holding Guangxi 2018-03-22 28,000 2018-10-15 14,503.2 N N
assurance 019.10.14
Co., Ltd.
46
Sinopharm
Joint liability 2018.11.15-2
Holding Guangxi 2018-09-19 25,000 2018-11-15 12,298.67 N N
assurance 019.11.7
Co., Ltd.
Sinopharm
Joint liability 2018.6.22-20
Holding Guangxi 2018-03-22 5,000 2018-06-22 4,151.95 N N
assurance 19.6.21
Co., Ltd.
Sinopharm
Joint liability 2018.12.13-2
Holding Guangxi 2018-09-19 15,000 2018-12-13 8,583.45 N N
assurance 019.11.27
Co., Ltd.
Sinopharm
Joint liability 2018.6.20-20
Holding Guangxi 2018-03-22 10,000 2018-06-20 8,645.37 N N
assurance 19.6.20
Co., Ltd.
Sinopharm
Joint liability 2018.6.5-201
Holding Guangxi 2018-03-22 5,000 2018-06-05 2,999.62 N N
assurance 9.6.5
Co., Ltd.
Sinopharm
Joint liability 2018.6.5-201
Holding Guangxi 2018-03-22 5,000 2018-06-05 4,347.42 N N
assurance 9.6.5
Co., Ltd.
Sinopharm
Joint liability 2019.6.18-20
Holding Guangxi 2019-04-25 10,000 2019-06-18 1,284.55 N N
assurance 20.6.18
Co., Ltd.
Total amount of actual
Total amount of approving
occurred guarantee for
guarantee for subsidiaries in 212,500 703,506.95
subsidiaries in report period
report period (B1)
(B2)
Total balance of actual
Total amount of approved
guarantee for subsidiaries at
guarantee for subsidiaries at the 785,500 465,133.35
the end of reporting period
end of reporting period (B3)
(B4)
Guarantee between the subsidiaries and the subsidiaries
Guarante
Related
Actual date of e for
Name of the Announce Implemen
Guarantee happening (Date Actual Guarantee Guarantee
Company ment related
limit of signing guarantee limit type term ted (Y/N)
guaranteed disclosure
agreement) party
date
(Y/N)
Sinopharm
Holding Guoda
Drugstore Joint liability 2018.10.10-2
2018-09-19 2,000 2018-10-10 1,441.37 N N
Yangzhou assurance 019.10.9
Dadesheng Chain
Co., Ltd.
47
Fujian Guoda
Joint liability 2018.4.20-20
Drugstore Chain 2018-03-22 2,275 2018-04-20 157.4 N N
assurance 19.4.19
Co., Ltd.
Fujian Guoda
Joint liability 2019.5.18-20
Drugstore Chain 2019-04-25 5,000 2019-05-18 1,842.28 N N
assurance 20.5.17
Co., Ltd.
Fujian Guoda
Joint liability 2019.5.10-20
Drugstore Chain 2019-04-25 2,000 2019-05-10 411.63 N N
assurance 20.5.9
Co., Ltd.
Sinopharm
Holding Guoda
Joint liability 2018.10.10-2
Drugstore 2018-09-19 8,000 2018-10-10 7,817.84 N N
assurance 019.10.9
Guangdong Co.,
Ltd.
Sinopharm
Holding Guoda
Joint liability 2018.12.20-2
Drugstore 2018-09-19 2,400 2018-12-20 N N
assurance 019.12.19
Guangdong Co.,
Ltd.
Sinopharm
Holding Guoda
Joint liability 2018.10.9-20
Drugstore 2018-09-19 3,000 2018-10-09 2,395.71 N N
assurance 19.10.8
Guangdong Co.,
Ltd.
Sinopharm
Holding Guoda
Joint liability 2018.9.28-20
Drugstore 2018-09-19 3,000 2018-09-28 2,275.98 N N
assurance 19.9.27
Guangdong Co.,
Ltd.
Taishan Sinopharm
Holding Guoda
Joint liability 2019.6.2-202
Qunkang 2019-04-25 800 2019-06-02 168.15 N N
assurance 0.6.1
Drugstore Chain
Co., Ltd.
Sinopharm
Holding Guoda Joint liability 2018.10.10-2
2018-09-19 3,000 2018-10-10 1,541.39 N N
Drugstore Guangxi assurance 019.10.9
Chain Co., Ltd.
China National
Joint liability 2018.10.10-2
Hebei Lerentang 2018-09-19 3,000 2018-10-10 2,282.58 N N
assurance 019.10.9
Medicine Chain
48
Co., Ltd.
Sinopharm
Holding Guoda Joint liability 2018.6.24-20
2018-03-22 3,000 2018-06-24 593.05 N N
Drugstore Henan assurance 19.6.23
Chain Co., Ltd.
Hunan Guoda
Minshentang Joint liability 2018.10.10-2
2018-09-19 3,000 2018-10-10 1,286.61 N N
Drugstore Chain assurance 019.10.9
Co., Ltd.
Sinopharm
Holding Guoda
Joint liability 2018.10.10-2
Drugstore 2018-09-19 3,000 2018-10-10 961.87 N N
assurance 019.10.9
Jiangmen Chain
Co., Ltd.
Sinopharm
Holding Guoda
Joint liability 2018.4.1-201
Drugstore 2018-03-22 2,000 2018-04-01 980.71 N N
assurance 9.4.1
Jiangmen Chain
Co., Ltd.
Sinopharm
Holding Guoda
Joint liability 2018.9.28-20
Drugstore 2018-09-19 2,000 2018-09-28 1,396.64 N N
assurance 19.9.27
Jiangmen Chain
Co., Ltd.
Beijing Jinxiang
Drugstore Joint liability 2018.9.28-20
2018-09-19 4,000 2018-09-28 2,874.9 N N
Medicine Chain assurance 19.9.27
Co., Ltd
Sinopharm
Holding Guoda Joint liability 2018.9.28-20
2018-09-19 1,000 2018-09-28 363 N N
Drugstore Nanjing assurance 19.9.27
Chain Co., Ltd.
Sinopharm
Holding Guoda Joint liability 2018.7.3-201
2018-03-22 3,000 2018-07-03 960.92 N N
Drugstore Inner assurance 9.7.2
Mongolia Co., Ltd.
Sinopharm
Holding Guoda Joint liability 2019.4.30-20
2019-04-25 3,000 2019-04-30 2,337.4 N N
Drugstore Inner assurance 20.4.29
Mongolia Co., Ltd.
Sinopharm 2018-09-19 8,000 2018-10-10 6,811.35 Joint liability 2018.10.10-2 N N
49
Holding Guoda assurance 019.10.9
Drugstore Inner
Mongolia Co., Ltd.
Ningxia Guoda
Joint liability 2018.10.16-2
Drugstore Chain 2018-09-19 4,000 2018-10-16 1,606 N N
assurance 019.10.16
Co., Ltd.
Sinopharm
Holding Guoda Joint liability 2018.11.28-2
2018-09-19 4,000 2018-11-28 2,624.36 N N
Drugstore assurance 019.11.27
Shandong Co., Ltd.
Shanxi Guoda
Joint liability 2018.10.16-2
Wanmin Drugstore 2018-09-19 5,000 2018-10-16 2,500 N N
assurance 019.10.15
Chain Co., Ltd.
Shanxi Guoda
Joint liability 2019.6.13-20
Wanmin Drugstore 2019-04-25 6,000 2019-06-13 4,059 N N
assurance 20.6.12
Chain Co., Ltd.
Sinopharm
Holding Guoda
Joint liability 2018.11.21-2
Drugstore 2018-09-19 5,000 2018-11-21 3,168 N N
assurance 019.11.20
Shanghai Chain
Co., Ltd.
Sinopharm
Holding Guoda
Joint liability 2018.10.10-2
Drugstore 2018-09-19 4,000 2018-10-10 896.58 N N
assurance 019.10.9
Shanghai Chain
Co., Ltd.
Sinopharm
Holding Guoda
Joint liability 2018.11.28-2
Drugstore 2018-09-19 5,000 2018-11-28 4,279.37 N N
assurance 019.11.27
Shenyang Chain
Co., Ltd.
Sinopharm
Holding Guoda
Joint liability 2018.4.23-20
Drugstore 2018-03-22 10,000 2018-04-23 1,940.41 N N
assurance 19.4.22
Shenyang Chain
Co., Ltd.
Sinopharm
Holding Guoda
Joint liability 2018.10.15-2
Drugstore 2018-09-19 6,000 2018-10-15 2,884.52 N N
assurance 019.10.14
Shenyang Chain
Co., Ltd.
50
Sinopharm
Holding Guoda
Joint liability 2018.11.17-2
Drugstore 2018-09-19 6,000 2018-11-17 3,070.04 N N
assurance 019.11.16
Shenyang Chain
Co., Ltd.
Sinopharm
Holding Guoda
Joint liability 2018.10.10-2
Drugstore 2018-09-19 15,000 2018-10-10 13,978 N N
assurance 019.10.9
Shenyang Chain
Co., Ltd.
Sinopharm
Holding Guoda
Drugstore Xinjiang Joint liability 2018.10.11-2
2018-09-19 3,000 2018-10-11 2,105.42 N N
New Special assurance 019.10.10
Medicine Chain
Co., Ltd
Sinopharm
Holding Guoda
Joint liability 2019.6.21-20
Drugstore Shanxi 2019-04-25 6,000 2019-06-21 4,552.46 N N
assurance 20.6.20
Yiyuan Chain Co.,
Ltd.
Sinopharm
Holding Guoda
Joint liability 2019.4.2-202
Drugstore Shanxi 2018-09-19 7,000 2019-04-02 1,179.99 N N
assurance 0.4.1
Yiyuan Chain Co.,
Ltd.
Sinopharm
Holding Guoda
Joint liability 2018.11.21-2
Drugstore Shanxi 2018-09-19 4,900 2018-11-21 4,271.85 N N
assurance 019.11.20
Yiyuan Chain Co.,
Ltd.
Sinopharm
Holding Guoda
Joint liability 2019.6.14-20
Drugstore Shanxi 2019-04-25 5,600 2019-06-14 1,500.66 N N
assurance 20.6.13
Yiyuan Chain Co.,
Ltd.
Sinopharm
Holding Guoda
Joint liability 2018.6.28-20
Drugstore Shanxi 2018-03-22 5,000 2018-06-28 2,534.39 N N
assurance 19.6.27
Yiyuan Chain Co.,
Ltd.
Sinopharm 2019-04-25 3,000 2019-06-25 Joint liability 2019.6.25-20 N N
51
Holding Guoda assurance 20.6.24
Drugstore Shanxi
Yiyuan Chain Co.,
Ltd.
Sinopharm
Holding Guoda
Joint liability 2018.10.10-2
Drugstore Shanxi 2018-09-19 5,000 2018-10-10 4,997.5 N N
assurance 019.10.9
Yiyuan Chain Co.,
Ltd.
Sinopharm
Holding Guoda
Joint liability 2018.11.15-2
Drugstore Shanxi 2018-09-19 3,000 2018-11-15 N N
assurance 019.11.14
Yiyuan Chain Co.,
Ltd.
Sinopharm
Holding Guoda Joint liability 2018.9.28-20
2018-09-19 2,000 2018-09-28 9.47 N N
Drugstore Guangxi assurance 19.9.27
Chain Co., Ltd.
Sinopharm
Holding Guoda
Joint liability 2019.1.9-202
Drugstore 2018-09-19 10,500 2019-01-09 5,862.34 N N
assurance 0.1.8
Shenyang Chain
Co., Ltd.
Sinopharm
Holding Guoda
Drugstore Xinjiang Joint liability 2018.10.30-2
2018-09-19 5,000 2018-10-30 N N
New Special assurance 019.10.30
Medicine Chain
Co., Ltd
Shanxi Guoda
Joint liability 2019.1.18-20
Wanmin Drugstore 2018-09-19 6,000 2019-01-18 3,488.8 N N
assurance 20.1.17
Chain Co., Ltd.
Shanxi Guoda
Joint liability 2019.2.19-20
Wanmin Drugstore 2018-09-19 4,000 2019-02-19 1,000 N N
assurance 20.2.19
Chain Co., Ltd.
Sinopharm
Holding Guoda Joint liability 2019.4.2-202
2018-09-19 8,000 2019-04-02 53.98 N N
Drugstore Inner assurance 0.4.1
Mongolia Co., Ltd.
Total amount of actual
Total amount of approving
31,400 occurred guarantee for 171,617.77
guarantee for subsidiaries in
subsidiaries in report period
52
report period (C1) (C2)
Total balance of actual
Total amount of approved
guarantee for subsidiaries at
guarantee for subsidiaries at the 214,475 111,463.92
the end of reporting period
end of reporting period (C3)
(C4)
Total amount of guarantee of the Company (total of three abovementioned guarantee)
Total amount of approving Total amount of actual
guarantee in report period 243,900 occurred guarantee in report 875,124.72
(A1+B1+C1) period (A2+B2+C2)
Total amount of approved Total balance of actual
guarantee at the end of report 999,975 guarantee at the end of report 576,597.27
period (A3+B3+C3) period (A4+B4+C4)
The proportion of the total amount of actually guarantee in the
47.49%
net assets of the Company (that is A4+ B4+C4)
(2) Guarantee outside against the regulation
□ Applicable √ Not applicable
No guarantee outside against the regulation in Period.
3. Other material contracts
□ Applicable √ Not applicable
No other material contracts for the Company in reporting period.
XV. Social responsibility
1. Major environment protection
The listed Company and its subsidiary whether belong to the key sewage units released from environmental protection department
voluntary disclosure
Name of
Major Quantity Distributio
Emission Total Approved
Company Pollutants Emission of n of Executed Pollutant Excessive
Concentrat Emission Total
/subsidiary and Method Discharge Discharge Discharge Standards Discharge
ion s Emissions
Particular Outlet Outlet
Pollutants
1
China Discharge DB44/26-2001 LEVEL 1
Tube 0.521ton/ 6.64
National COD 1 Outlet of 15.91mg/L STANDARD FOR THE N/A
Discharge year ton/year
Zhijun Waste SECOND PERIOD
Water
53
1
China Discharge DB44/26-2001 LEVEL 1
Ammonia Tube 0.028ton/ 0.7ton/yea
National 1 Outlet of 0.84mg/L STANDARD FOR THE N/A
Nitrogen Discharge year r
Zhijun Waste SECOND PERIOD
Water
1
China Discharge DB44/26-2001 Level 1
Tube 0.001ton/ 0.0369ton/
National Phosphate 1 Outlet of 0.035mg/L standard for the second N/A
Discharge year year
Zhijun Waste period
Water
1
China Discharge DB44/26-2002 Level 1
Tube 0.075ton/ 1.476ton/y
National BOD 1 Outlet of 2.3mg/L standard for the second N/A
Discharge year ear
Zhijun Waste period
Water
1
China Discharge DB44/26-2002 Level 1
Tube 0.229ton/ 4.428ton/y
National SS 1 Outlet of 7mg/L standard for the second N/A
Discharge year ear
Zhijun Waste period
Water
The Class IV water
(Ammonia Nitrogen up to
Class V) Standard in
1
"Discharge standard of
Discharge
Zhijun Tube water pollutants in mixed 0.5162ton 2.16ton/ye
COD 1 Outlet of 16.64mg/L N/A
Pingshan Discharge pharmaceutical /year ar
Waste
industry"(GB21908-2008)
Water
and "Standard of Surface
water environmental
quality"(GB3838-2002)
The Class IV water
(Ammonia Nitrogen up to
Class V) Standard in
1
"Discharge standard of
Discharge
Zhijun Ammonia Tube water pollutants in mixed 0.0239ton 0.144ton/y
1 Outlet of 0.768mg/L N/A
Pingshan Nitrogen Discharge pharmaceutical /year ear
Waste
industry"(GB21908-2008)
Water
and "Standard of Surface
water environmental
quality"(GB3838-2002)
Zhijun Total Tube 1 The Class IV water 0.0038ton 0.0216ton/
1 0.1mg/L N/A
Pingshan phosphorus Discharge Discharge (Ammonia Nitrogen up to /year year
54
Outlet of Class V) Standard in
Waste "Discharge standard of
Water water pollutants in mixed
pharmaceutical
industry"(GB21908-2008)
and "Standard of Surface
water environmental
quality"(GB3838-2002)
The Class IV water
(Ammonia Nitrogen up to
Class V) Standard in
1
"Discharge standard of
Discharge
Zhijun Tube water pollutants in mixed 0.089ton/ 0.432ton/y
BOD 1 Outlet of 2.86mg/L N/A
Pingshan Discharge pharmaceutical year ear
Waste
industry"(GB21908-2008)
Water
and "Standard of Surface
water environmental
quality"(GB3838-2002)
The Class IV water
(Ammonia Nitrogen up to
Class V) Standard in
1
"Discharge standard of
Discharge
Zhijun Tube water pollutants in mixed 0.25ton/y 2.16ton/ye
SS 1 Outlet of 8mg/L N/A
Pingshan Discharge pharmaceutical ear ar
Waste
industry"(GB21908-2008)
Water
and "Standard of Surface
water environmental
quality"(GB3838-2002)
Discharge
Main Luck DB44/26-2001 LEVEL 1
Tube Outlet of 0.007ton/ 0.053ton/y
Pharmaceuti COD 1 12mg/L STANDARD FOR THE N/A
Discharge Waste year ear
cals SECOND PERIOD
Water
Discharge
Main Luck DB44/26-2001 LEVEL 1
Ammonia Tube Outlet of 0.0003ton 0.006ton/y
Pharmaceuti 1 0．5mg/L STANDARD FOR THE N/A
Nitrogen Discharge Waste /year ear
cals SECOND PERIOD
Water
Discharge
Main Luck DB44/26-2001 LEVEL 1
Tube Outlet of 0.00003to 0.0003ton/
Pharmaceuti Phosphate 1 0.05mg/l STANDARD FOR THE N/A
Discharge Waste n/year year
cals SECOND PERIOD
Water
Main Luck Tube Discharge DB44/26-2001 LEVEL 1 0.006ton/ 0.012ton/y
BOD 1 10mg/L N/A
Pharmaceuti Discharge Outlet of STANDARD FOR THE year ear
55
cals Waste SECOND PERIOD
Water
Discharge
Main Luck DB44/26-2001 LEVEL 1
Tube Outlet of 0.001ton/ 0.037ton/y
Pharmaceuti SS 1 2mg/L STANDARD FOR THE N/A
Discharge Waste year ear
cals SECOND PERIOD
Water
Construction and operation of pollution prevention and control facilities
The above-mentioned environmental pollution key monitoring units in which the Company has a shareholding
have established pollution prevention and control facilities for wastewater. In the daily management process,
enterprises establish management procedures and operating instructions for environmental protection facilities,
and ensure the normal and compliant operation of anti-pollution facilities through system implementation and
responsibility implementation. All enterprises are continuously investing funds and stepping up the transformation
and improvement of pollution prevention and control facilities to ensure the stable operation of pollution
prevention facilities and improve the disposal capacity of environmental protection facilities.
Environmental impact assessment of construction projects and other environmental protection administrative
licenses
The projects of all key monitoring units have carried out environmental impact assessments and obtained
approvals. The projects to be built also carry out the relevant administrative review procedures according to the
"three simultaneous" requirements of the environmental protection facilities of the construction project.
Emergency plan for environmental emergencies
At present, the above-mentioned environmental pollution key monitoring units in which the Company has a
shareholding have formulated the Emergency Plan for Environmental Emergencies and reported them according
to the regulatory requirements of the local regulatory authorities. According to the management requirements of
the emergency plan, the key units regularly carry out emergency plan drills to further provide the enterprises’
emergency response capability.
Environmental self-monitoring scheme
At present, the above-mentioned environmental pollution key monitoring units in which the Company has a
shareholding have established environmental self-detection scheme and plan, and implemented self-inspection,
third-party detection and other monitoring methods according to the government requirements. Relevant
monitoring data and reports have been archived and saved.
Other environmental information that should be disclosed
The above two companies are joint stock companies of the Company. The Company and its holding subsidiaries
are not listed as key pollutant discharge units announced by the environmental protection department.
Relevant information on environment protection
Nil
2. Execution of social responsibility of targeted poverty alleviation
The Company temporarily not to carry out a targeted poverty alleviation in the period, and there are no follow-up plans either.
56
XVI. Explanation on other significant events
□ Applicable √ Not applicable
No explanation on other significant event of the Company in the Period.
XVII. Significant event of subsidiary of the Company
□ Applicable √ Not applicable
57
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
1. Changes in Share Capital
In Share
Before the Change Increase/Decrease in the Change (+, -) After the Change
Capitalizat
New
Bonus ion of Subtot Proportio
Amount Proportion shares Others Amount
shares public al n
issued
reserve
I. Restricted shares 65,498,153 15.30% 65,498,153 15.30%
2. State-owned legal
60,380,743 14.10% 60,380,743 14.10%
person’s shares
3. Other domestic
5,117,410 1.20% 5,117,410 1.20%
shareholding
Including: Domestic
5,114,297 1.19% 5,114,297 1.19%
legal person’s shares
Domestic nature
3,113 0.00% 3,113 0.00%
person shares
II. Unrestricted shares 362,628,830 84.70% 362,628,830 84.70%
1. RMB Ordinary shares 307,744,355 71.88% 307,744,355 71.88%
2. Domestically listed
54,884,475 12.82% 54,884,475 12.82%
foreign shares
III. Total shares 428,126,983 100.00% 428,126,983 100.00%
Reasons for share changed
□Applicable √Not applicable
Approval of share changed
□Applicable √Not applicable
Ownership transfer of share changed
□ Applicable √ Not applicable
Progress of shares buy-back
□Applicable √Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common
shareholders of Company in latest year and period
58
□ Applicable √ Not applicable
Other information necessary to disclose for the Company or need to disclosed under requirement from security regulators
□ Applicable √ Not applicable
2. Changes of restricted shares
□ Applicable √ Not applicable
II. Securities issuance and listing
□ Applicable √ Not applicable
III. Number of shareholders and share-holding
In Share
Total preference shareholders
Total common shareholders at with voting rights recovered at
19,108 0
period-end end of reporting period (if
applicable) (see Note 8)
Particulars about shares held above 5% by common shareholders or top ten common shareholders
Number Number of share pledged/frozen
Amount
of
of Amount of
Proportion common Changes in
Nature of restricted un-restricte
Shareholders of shares shares reporting
shareholder common d common State of share Amount
held held at period
shares shares held
period-en
held
d
Sinopharm State-owned 239,999,9 55,057,70 184,942,29
56.06%
Group Co., Ltd corporate 91 0 1
Hong Kong
Securities 18,521,55
Overseas corporate 4.33% 0 18,521,557
Clearing 7
Company Ltd
HTHK/CMG
FSGUFP-CMG
11,469,64
FIRST STATE Overseas corporate 2.68% 0 11,469,644
4
CHINA
GROWTH FD
China National
Pharmaceutical State-owned
1.24% 5,323,043 5,323,043 0
Foreign Trade corporate
Corp.
59
Fidelity
Investment
Management
Overseas corporate 1.07% 4,582,909 0 4,582,909
(Hong Kong)
Limited -
Client’s fund
China United
Property
Insurance
Domestic non
Company
state-owned 1.01% 4,313,024 0 4,313,024
Limited –
corporate
Traditional
Insurance
Products
# Beijing
Haoqing
Fortune
Investment
Domestic non
Management
state-owned 0.96% 4,118,716 0 4,118,716
Co., Ltd. –
corporate
Haoqing Value
Stable No.8
Investment
Fund
Central Huijin State-owned
0.89% 3,804,400 0 3,804,400
Investment Ltd. corporate
Basic
Domestic non
endowment
state-owned 0.77% 3,294,334 0 3,294,334
insurance fund-
corporate
portfolio 1003
BBH BOS S/A
FIDELITY FD -
Overseas corporate 0.76% 3,246,061 0 3,246,061
CHINA
FOCUS FD
Sinopharm Group Co., Ltd. and China National Pharmaceutical Foreign Trade Corporation
Explanation on associated have the same actual controller, which is China National Pharmaceutical Group Corporation.
relationship among the aforesaid It is unknown that there exists no associated relationship or belongs to the consistent actionist
shareholders among the other tradable shareholders regulated by the Management Measure of Information
Disclosure on Change of Shareholding for Listed Companies.
Particular about top ten common shareholders with un-restrict shares held
Shareholders Amount of un-restrict common shares held at Type of shares
60
period-end Type Amount
RMB ordinary
Sinopharm Group Co., Ltd 184,942,291 184,942,291
shares
Hong Kong Securities Clearing RMB ordinary
18,521,557 18,521,557
Company Ltd shares
HTHK/CMG FSGUFP-CMG Domestically
FIRST STATE CHINA GROWTH 11,469,644 listed foreign 11,469,644
FD shares
Fidelity Investment Management
RMB ordinary
(Hong Kong) Limited - Client’s 4,582,909 4,582,909
shares
fund
China United Property Insurance
RMB ordinary
Company Limited – Traditional 4,313,024 4,313,024
shares
Insurance Products
# Beijing Haoqing Fortune
Investment Management Co., Ltd. – RMB ordinary
4,118,716 4,118,716
Haoqing Value Stable No.8 shares
Investment Fund
RMB ordinary
Central Huijin Investment Ltd. 3,804,400 3,804,400
shares
Basic endowment insurance fund- RMB ordinary
3,294,334 3,294,334
portfolio 1003 shares
Domestically
BBH BOS S/A FIDELITY FD -
3,246,061 listed foreign 3,246,061
CHINA FOCUS FD
shares
Bank of China – Harvest Medical RMB ordinary
3,138,525 3,138,525
Care Securities Investment Fund shares
Expiation on associated relationship
or consistent actors within the top
It is unknown that there exists no associated relationship or belongs to the consistent actionist
10 un-restrict shareholders and
among the other tradable shareholders regulated by the Management Measure of Information
between top 10 un-restrict
Disclosure on Change of Shareholding for Listed Companies.
shareholders and top 10
shareholders
Explanation on shareholders
involving margin business about top Beijing Haoqing Fortune Investment Management Co., Ltd. – Haoqing Value Stable No.8
ten common stock shareholders Investment Fund holds shares of the Company through margin trading and negotiable
with un-restrict shares held (if securities account that is 4,118,716 shares in total.
applicable) (see note4)
Whether top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held have a buy-back
agreement dealing in reporting period
□Yes √ No
61
The top ten common stock shareholders or top ten common stock shareholders with un-restrict shares held of the Company have no
buy-back agreement dealing in reporting period.
IV. Changes of controlling shareholders or actual controller
Changes of controlling shareholders in reporting period
□ Applicable √ Not applicable
Changes of controlling shareholders had no change in reporting period.
Changes of actual controller in reporting period
□ Applicable √ Not applicable
Changes of actual controller in reporting period had no change in reporting period.
62
Section VII. Preferred Stock
□ Applicable √ Not applicable
The Company has no preferred stock in reporting period.
63
Section VIII. Directors, Supervisors and Senior Executives
I. Changes of shares held by directors, supervisors and senior executives
□ Applicable √ Not applicable
Shares held by directors, supervisors and senior executives have no changes in reporting period, found more details in Annual Report
2018.
II. Resignation and dismissal of directors, supervisors and senior executives
√ Applicable □ Not applicable
Name Title Type Date Reasons
Vice General Appointment
Liu Tianyao 2019-01-11 New Vice General Manager
Manager and removal
Ma Zhanjun Director Election 2019-01-24 New director of 8th BOD
Ma Zhanjun Vice chairman Election 2019-01-31 New vice chairman of 8th BOD
Independent
Su Weiwei Election 2019-01-24 New independent director of 8th BOD
director
Chairman of
Leave the For work adjustment, leave the office of Chairman of
Wu Yijian Supervisory 2019-05-17
office Supervisory Committee
Committee
Wen Deyong Supervisor Election 2019-05-17 New supervisor of 8th Supervisory Committee
Chairman of
New Chairman of Supervisory Committee of 8th
Wen Deyong Supervisory Election 2019-07-10
Supervisory Committee
Committee
64
Section IX. Corporate Bond
Whether the Company has a corporation bonds that issuance publicly and listed on stock exchange and without due on the date when
semi-annual report approved for released or fail to cash in full on due
No
65
Section X. Financial Report
I. Audit reports
Whether the semi-annual report was audited or not
□ Yes √ No
The financial report of this semi-annual report was unaudited.
II. Financial Statement
Statement in Financial Notes are carried in RMB/CNY
66
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED BALANCE SHEET
As at 30 June 2019
(Expressed in Renminbi Yuan)
ASSETS Note V 30 June 2019 31 December 2018
Current assets
Cash and bank balances 1 8,086,328,508.49 8,089,781,304.56
Notes receivable 2 790,664,828.26 1,357,311,929.63
Accounts receivable 3 11,826,440,731.59 9,336,861,647.92
Receivable financing 4 325,439,580.18 -
Advances to suppliers 5 357,078,819.64 583,484,515.95
Other receivables 6 654,086,387.85 643,493,359.32
Incl:Interest receivable 14,791,483.10 8,223,327.64
Inventories 7 4,882,673,616.27 4,389,335,942.19
Other current assets 8 97,317,287.60 95,347,629.18
Total current assets 27,020,029,759.88 24,495,616,328.75
Non-current assets
Long-term equity investments 9 2,077,811,395.30 1,880,393,786.10
Other equity instruments 10 13,685,760.00 13,685,760.00
investment
Other non-current financial assets 11 140,000,000.00 140,000,000.00
Investment properties 12 140,319,140.00 144,894,495.97
Fixed assets 13 593,552,480.99 607,933,827.67
Construction in progress 14 31,980,582.21 36,412,614.61
Right-of-use assets 15 1,910,981,197.63 -
Intangible assets 16 320,522,690.59 319,207,126.15
Goodwill 17 847,041,800.60 833,547,800.60
Long-term prepaid expenses 18 311,311,781.97 311,328,706.46
Deferred tax assets 19 65,417,507.01 74,914,209.95
Other non-current assets 20 66,944,586.76 72,365,863.71
Total non-current assets 6,519,568,923.06 4,434,684,191.22
Total assets 33,539,598,682.94 28,930,300,519.97
The accompanying notes form an integral part of these financial statements
67
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED BALANCE SHEET (Continued)
As at 30 June 2019
(Expressed in Renminbi Yuan)
LIABILITIES Note V 30 June 2019 31 December 2018
Current liabilities
Short-term borrowings 21 3,290,877,595.23 2,597,652,702.43
Notes payable 22 3,539,095,262.34 3,416,755,681.80
Accounts payable 23 8,088,697,602.94 6,468,535,961.17
Advances from customers - -
Employee benefits payable 25 161,719,082.78 231,866,407.40
Tax payable 26 215,579,001.83 241,980,412.72
Other payables 27 1,474,526,698.43 1,539,436,971.93
Incl: Interest payable 29,012,444.93 21,906,660.63
Dividends payable 6,389,320.96 6,389,320.96
Contract liabilities 24 239,739,020.90 255,590,612.37
Non-current liabilities due within one year 28 558,296,784.75 5,861,324.37
Other current liabilities 29 445,493.48 292,465.75
Total current liabilities 17,568,976,542.68 14,757,972,539.94
Non-current liabilities
Long-term borrowings 30 - 31,600,000.00
Lease liabilities 31 1,186,461,123.96 -
Long-term payables 32 800,000.00 4,563,978.52
Long-term employee benefits payable 33 1,915,000.00 2,050,000.00
Deferred income 34 88,722,818.18 91,491,170.40
Deferred tax liabilities 19 66,386,258.77 67,605,161.88
Other non-current liabilities 35 67,840,696.09 69,241,176.18
Total non-current liabilities 1,412,125,897.00 266,551,486.98
Total liabilities 18,981,102,439.68 15,024,524,026.92
The accompanying notes form an integral part of these financial statements
68
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED BALANCE SHEET (Continued)
As at 30 June 2019
(Expressed in Renminbi Yuan)
SHAREHOLDERS’ EQUITY Note V 30 June 2019 31 December 2018
Shareholders’ equity
Share capital 36 428,126,983.00 428,126,983.00
Capital surplus 37 4,363,409,728.51 4,320,984,981.51
Surplus reserve 38 214,063,491.50 214,063,491.50
Retained earnings 39 7,134,839,714.47 6,655,257,147.27
Shareholders’ equity attributable
12,140,439,917.48 11,618,432,603.28
to shareholders of the parent
Non-controlling interests 2,418,056,325.78 2,287,343,889.77
Total shareholders’ equity 14,558,496,243.26 13,905,776,493.05
Total liabilities and shareholders’ 33,539,598,682.94 28,930,300,519.97
equity
The accompanying notes form an integral part of these financial statements
The financial statements have been signed by:
Legal representative: Financial controller: Head of Accounting Department:
69
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED INCOME STATEMENT
For the six months ended 30 June 2019
(Expressed in Renminbi Yuan)
Note V For the six months ended For the six months ended
30 June 2019 30 June 2018
Operating revenue 40 25,228,147,377.43 20,778,425,602.22
Less: Operating costs 40 22,415,519,952.87 18,367,643,723.84
Tax and surcharge 41 62,139,226.44 56,620,527.25
Selling expenses 42 1,483,332,500.73 1,273,588,756.07
Administrative expenses 43 377,216,694.13 351,820,063.78
Finance costs 44 104,095,254.24 57,541,544.32
Incl: Interest cost 169,529,472.37 83,356,367.18
Interest income 60,630,036.91 23,082,233.56
Add: Other incomes 45 14,990,919.02 11,330,310.02
Investment income 46 169,142,289.99 162,693,771.35
Incl: Investment income from
associates 169,142,289.99 162,662,271.35
Impairment loss on financial assets 47 (11,434,101.13) 1,026,702.24
Impairment losses 48 (125,554.34) (508,849.26)
Gain on disposal of assets 49 (29,725.44) 4,281,164.61
Operating profits 958,387,577.12 850,034,085.92
Add: Non-operating income 50 3,667,170.25 5,498,951.11
Less: Non-operating expenses 51 1,718,265.56 1,797,292.80
Total profit 960,336,481.81 853,735,744.23
Less: Income taxes 52 192,243,926.50 164,486,734.32
Net profit 768,092,555.31 689,249,009.91
Net Profit from continuing operations 768,092,555.31 689,249,009.91
Net profit attributable to shareholders of the parent 650,833,360.40 641,727,034.93
Profit or loss of non-controlling interests 117,259,194.91 47,521,974.98
Total comprehensive income 768,092,555.31 689,249,009.91
Incl: Total comprehensive income for the year
650,833,360.40 641,727,034.93
attributable to owners of the parent
Total comprehensive income for the year 117,259,194.91 47,521,974.98
attributable to non-controlling interests
Earnings per share
Basic earnings per share 1.52 1.50
Diluted earnings per share 1.52 1.50
The accompanying notes form an integral part of these financial statements
70
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
For the six months ended 30 June 2019
(Expressed in Renminbi Yuan)
For the six months ended 30 Shareholders’ equity attributable to shareholders of the parent Non-controlling Total equity
June 2019 interests
Other equity
Share capital instrument Capital surplus Surplus reserve Retained earnings Subtotal
Closing balance of the preceding year 428,126,983.00 - 4,320,984,981.51 214,063,491.50 6,655,257,147.27 11,618,432,603.28 2,287,343,889.77 13,905,776,493.05
others - - - - - - - -
Opening balance of the current year 428,126,983.00 - 4,320,984,981.51 214,063,491.50 6,655,257,147.27 11,618,432,603.28 2,287,343,889.77 13,905,776,493.05
Movements in the current year - - 42,424,747.00 - 479,582,567.20 522,007,314.20 130,712,436.01 652,719,750.21
(1) Total comprehensive income - - - - 650,833,360.40 650,833,360.40 117,259,194.91 768,092,555.31
(2) Capital paid and reduced by
- - 42,424,747.00 - - 42,424,747.00 14,780,000.00 57,204,747.00
owners
1.Capital injection by owners - - - - - - 14,780,000.00 14,780,000.00
2.Others - - 42,424,747.00 - - 42,424,747.00 - 42,424,747.00
(3) Profit distribution - - - - (171,250,793.20) (171,250,793.20) (1,326,758.90) (172,577,552.10)
1.Distribution to equity owners - - - - (171,250,793.20) (171,250,793.20) (1,326,758.90) (172,577,552.10)
2.Others - - - - - - - -
Closing balance of the current year 428,126,983.00 - 4,363,409,728.51 214,063,491.50 7,134,839,714.47 12,140,439,917.48 2,418,056,325.78 14,558,496,243.26
The accompanying notes form an integral part of these financial statements
71
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
For the six months ended 30 June 2019
(Expressed in Renminbi Yuan)
For the six months ended 30 Shareholders’ equity attributable to shareholders of the parent Non-controlling Total equity
June 2018 interests
Other equity
Share capital instrument Capital surplus Surplus reserve Retained earnings Subtotal
Closing balance of the preceding year 428,126,983.00 - 3,181,429,064.99 214,063,491.50 5,572,952,806.39 9,396,572,345.88 530,930,411.26 9,927,502,757.14
others - - - - - - - -
Opening balance of the current year 428,126,983.00 - 3,181,429,064.99 214,063,491.50 5,572,952,806.39 9,396,572,345.88 530,930,411.26 9,927,502,757.14
Movements in the current year - - 397,342.21 - 513,288,940.03 513,686,282.24 37,434,714.46 551,120,996.70
(1) Total comprehensive income - - - - 641,727,034.93 641,727,034.93 47,521,974.98 689,249,009.91
(2) Capital paid and reduced by
- - 397,342.21 - - 397,342.21 26,721,512.76 27,118,854.97
owners
1.Capital injection by owners - - - - - - 24,381,200.00 24,381,200.00
2.Others - - 397,342.21 - - 397,342.21 2,340,312.76 2,737,654.97
(3) Profit distribution - - - - (128,438,094.90) (128,438,094.90) (36,808,773.28) (165,246,868.18)
1.Distribution to equity owners - - - - (128,438,094.90) (128,438,094.90) (36,808,773.28) (165,246,868.18)
2.Others - - - - - - - -
Closing balance of the current year 428,126,983.00 - 3,181,826,407.20 214,063,491.50 6,086,241,746.42 9,910,258,628.12 568,365,125.72 10,478,623,753.84
The accompanying notes form an integral part of these financial statements
72
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 June 2019
(Expressed in Renminbi Yuan)
Note V For the six months ended For the six months ended
30 June 2019 30 June 2018
1.CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from sales of good or rendering of 25,674,088,675.82 22,055,082,715.59
services
Tax refunds 2,721,287.63 1,593,193.21
Cash receipts related to other operating activities 53 295,482,211.20 311,984,787.60
Sub-total of cash inflows from operating activities 25,972,292,174.65 22,368,660,696.40
Cash paid for goods and services 22,598,237,854.68 19,799,894,631.80
Cash paid to and on behalf of employees 956,322,585.28
1,088,230,430.51
Cash paid for all types of taxes 548,616,793.36
627,174,776.80
Cash payments related to other operating activities 53 838,468,976.76
494,891,531.31
Sub-total of cash outflows from operating activities 22,143,302,987.20
24,808,534,593.30
Net cash flows from operating activities 54 1,163,757,581.35 225,357,709.20
2.CASH FLOWS FROM INVESTING ACTIVITIES
Cash received from returns on investments 78,825,446.85
20,129,463.78
Net cash received from disposal of fixed
assets, intangible assets and other long-term 801,205.52
assets 6,064,099.87
Cash receipts related to other investing activities 53 - 48,766,145.15
Sub-total of cash inflows from investing activities 20,930,669.30 133,655,691.87
The accompanying notes form an integral part of these financial statements
73
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED CASH FLOW STATEMENT (Continued)
For the six months ended 30 June 2019
(Expressed in Renminbi Yuan)
For the six months For the six
Note V ended 30 June months ended 30
2019 June 2018
2.CASH FLOWS FROM INVESTING ACTIVITIES(Continued)
Cash paid for acquisition of fixed assets,
intangible assets and other long-term assets 111,399,813.51 97,867,494.61
Cash paid for acquisition of investments 43,674,685.30 10,000,000.00
Cash payments related to other investing activities 53 1,093,125.00 43,999,800.00
Sub-total of cash outflows from investing activities 156,167,623.81 151,867,294.61
Net cash flows from investing activities (135,236,954.51) (18,211,602.74)
3.CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others 14,780,000.00 11,781,200.00
Incl: Cash received from capital contributions from
14,780,000.00 11,781,200.00
non-controlling shareholders of subsidiaries
Cash received from borrowings 16,700,000.00 40,775,440.04
Cash receipts related to other financing activities 53 3,512,659.71 83,745,164.60
Sub-total of cash inflows from financing activities 34,992,659.71 136,301,804.64
Cash repayments for debts 73,261,634.53 79,670,200.30
Cash payments for distribution of dividends or profit and
343,055,058.89 226,149,759.15
interest expenses
Incl: Profit and dividends paid to non-controlling
1,326,758.90 40,392,215.98
shareholders of subsidiaries
Cash payments related to other financing activities 53 510,162,167.74 118,725,719.23
Sub-total of cash outflows from financing activities 926,478,861.16 424,545,678.68
Net cash flows from financing activities (891,486,201.45) (288,243,874.04)
The accompanying notes form an integral part of these financial statements
74
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED CASH FLOW STATEMENT (Continued)
For the six months ended 30 June 2019
(Expressed in Renminbi Yuan)
For the six months For the six months
Note V
ended 30 June 2019 ended 30 June 2018
4.EFFECT OF FOREIGN EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS (176,567.25) 314,863.47
5.NET INCREASE IN CASH AND CASH EQUIVALENTS 54 136,857,858.14 (80,782,904.11)
Add: Cash and cash equivalents at beginning of the year 7,632,117,020.77 3,673,498,691.48
6.CASH AND CASH EQUIVALENTS AT END OF YEAR 54 7,768,974,878.91 3,592,715,787.37
The accompanying notes form an integral part of these financial statements
75
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY BALANCE SHEET
As at 30 June 2019
(Expressed in Renminbi Yuan)
ASSETS Note XIV 30 June 2019 31 December 2018
Current assets
Cash and bank balances 2,210,653,256.99 1,817,654,598.01
Notes receivable 70,539,252.94 63,870,980.39
Accounts receivable 1 610,075,622.91 631,236,593.94
Advances to suppliers 3,875,346.87 4,760,182.00
Other receivables 2 1,858,484,572.60 1,541,980,883.50
Incl:Interest receivable 14,926,690.76 7,550,877.07
Dividends receivable 106,074,898.00 -
Inventories 225,040,528.88 158,166,185.65
Other current assets 39,482.38 39,482.38
Total current assets 4,978,708,063.57 4,217,708,905.87
Non-current assets
Long-term equity investments 3 7,639,715,544.55 7,432,906,692.24
Other non-current financial assets 140,000,000.00 140,000,000.00
Investment properties 1,635,946.12 1,955,854.46
Fixed assets 19,952,922.05 21,362,422.03
Right-of-use assets 6,316,333.03 -
Intangible assets 2,997,883.63 2,452,222.51
Long-term deferred expenses 6,990,428.04 7,481,809.53
Other non-current assets 7,000,000.00 7,000,000.00
Total non-current assets 7,824,609,057.42 7,613,159,000.77
Total assets 12,803,317,120.99 11,830,867,906.64
The accompanying notes form an integral part of these financial statements
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY BALANCE SHEET (Continued)
As at 30 June 2019
(Expressed in Renminbi Yuan)
LIABILITIES 30 June 2019 31 December 2018
Current liabilities
Short-term borrowings 570,000,000.00 539,000,000.00
Notes payable 321,344,616.65 252,317,800.78
Accounts payable 547,918,074.90 442,049,241.22
Contract liabilities 9,058,538.51 4,182,083.40
Employee benefits payable 34,702,315.82 36,233,563.12
Tax payables 11,430,926.20 13,426,601.90
Other payables 1,729,610,132.84 1,481,817,856.56
Incl:Interest payable 5,588,978.10 1,354,592.35
Non-current liabilities due within one year
32,452,757.27 -
Other current liabilities 208,701.01 226,427.99
Total current liabilities 3,256,726,063.20 2,769,253,574.97
Non-current liabilities
Long-term borrowings - 31,600,000.00
Lease liabilities 5,584,622.27 -
Long-term payables 800,000.00 800,000.00
Long-term employee benefits payable 102,000.00 118,000.00
Deferred income 1,508,786.84 1,687,899.50
Deferred tax liabilities 1,635,298.63 2,298,426.39
Total non-current liabilities 9,630,707.74 36,504,325.89
Total liabilities 3,266,356,770.94 2,805,757,900.86
The accompanying notes form an integral part of these financial statements
77
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY BALANCE SHEET (Continued)
As at 30 June 2019
(Expressed in Renminbi Yuan)
SHAREHOLDERS’ EQUITY 30 June 2019 31 December 2018
Shareholders’ equity
Share capital 428,126,983.00 428,126,983.00
Capital surplus 4,468,787,524.26 4,426,362,777.26
Surplus reserves 214,063,491.50 214,063,491.50
Retained earnings 4,425,982,351.29 3,956,556,754.02
Total shareholders’ equity 9,536,960,350.05 9,025,110,005.78
Total liabilities and shareholders’ equity 12,803,317,120.99 11,830,867,906.64
The accompanying notes form an integral part of these financial statements
78
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY INCOME STATEMENT
For the six months ended 30 June 2019
(Expressed in Renminbi Yuan)
Note XIV For the six months For the six months
ended 30 June 2019 ended 30 June 2018
Operating revenue 4 2,008,004,563.30 1,687,621,355.83
Less: Operating costs 4 1,921,272,394.76 1,614,717,473.91
Tax and surcharge 2,519,247.99 2,016,368.93
Selling expenses 31,052,044.81 25,894,795.45
Administrative expenses 38,056,806.31 33,679,106.75
Finance costs (28,398,244.00) (19,369,880.08)
Incl: Interest cost 23,271,307.72 20,770,113.43
Interest income 52,479,722.42 40,925,200.74
Add: Other incomes 332,764.13 1,299,345.14
Investment income 5 608,288,420.47 534,840,744.46
Incl: Investment income from 181,280,533.11 173,326,290.14
associates
Impairment loss on financial assets (2,365,765.08) 7,411.02
Impairment losses (102,112.84) (630,953.33)
Gain on disposal of assets (26,074.52) -
Operating profits 649,629,545.59 566,200,038.16
Add: Non-operating income 46,069.40 33.08
Less: Non-operating expenses - 127,688.63
Total profit 649,675,614.99 566,072,382.61
Less: Income taxes 8,999,224.52 6,292,873.84
Net profit 640,676,390.47 559,779,508.77
Net Profit from continuing operations 640,676,390.47 559,779,508.77
Total comprehensive income 640,676,390.47 559,779,508.77
The accompanying notes form an integral part of these financial statements
79
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
For the six months ended 30 June 2019
(Expressed in Renminbi Yuan)
For the six months ended 30 Other equity
Share capital Capital surplus Surplus reserve Retained earnings Total equity
June 2019 instruments
Closing balance of the preceding
year 428,126,983.00 - 4,426,362,777.26 214,063,491.50 3,956,556,754.02 9,025,110,005.78
Others - - - - - -
Opening balance of the current
year 428,126,983.00 - 4,426,362,777.26 214,063,491.50 3,956,556,754.02 9,025,110,005.78
Movements in the current year - - 42,424,747.00 - 469,425,597.27 511,850,344.27
(1) Total comprehensive income - - - - 640,676,390.47 640,676,390.47
(2) Capital paid and reduced by
owners - - 42,424,747.00 - - 42,424,747.00
1. Capital injection by owners - - - - - -
2. Others - - 42,424,747.00 - - 42,424,747.00
(3) Profit distribution - - - - （171,250,793.20） （171,250,793.20）
1. Distribution to owners - - - - （171,250,793.20） （171,250,793.20）
Closing balance of the current
year 428,126,983.00 - 4,468,787,524.26 214,063,491.50 4,425,982,351.29 9,536,960,350.05
The accompanying notes form an integral part of these financial statements
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (Continued)
For the six months ended 30 June 2019
(Expressed in Renminbi Yuan)
For the six months ended 30 June Other equity
Share capital Capital surplus Surplus reserve Retained earnings Total equity
2018 instruments
Closing balance of the preceding year 428,126,983.00 - 4,407,091,484.13 214,063,491.50 3,329,412,821.48 8,378,694,780.11
Others - - - - - -
Opening balance of the current year 428,126,983.00 - 4,407,091,484.13 214,063,491.50 3,329,412,821.48 8,378,694,780.11
Movements in the current year - - 397,342.21 - 431,341,413.87 431,738,756.08
(1) Total comprehensive income - - - - 559,779,508.77 559,779,508.77
(2) Capital paid and reduced by
- - 397,342.21 - - 397,342.21
owners
1. Capital injection by owners - - - - - -
2. Others - - 397,342.21 - - 397,342.21
(3) Profit distribution - - - - (128,438,094.90) (128,438,094.90)
1. Distribution to owners - - - - (128,438,094.90) (128,438,094.90)
Closing balance of the current year 428,126,983.00 - 4,407,488,826.34 214,063,491.50 3,760,754,235.35 8,810,433,536.19
The accompanying notes form an integral part of these financial statements
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY CASH FLOW STATEMENT
For the six months ended 30 June 2019
(Expressed in Renminbi Yuan)
For the six months For the six months
ended 30 June 2019 ended 30 June 2018
1.CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from sales of good or rendering of
services 2,136,424,520.77 1,787,065,555.60
Cash receipts related to other operating activities 18,658,823.82 43,943,301.92
Sub-total of cash inflows from operating activities 2,155,083,344.59 1,831,008,857.52
Cash paid for goods and services 1,905,147,658.61 1,655,107,446.18
Cash paid to and on behalf of employees 48,424,818.87 44,855,325.83
Cash paid for all types of taxes 27,913,893.13 18,706,775.51
Cash payments related to other operating
activities 17,265,038.12 36,183,479.25
Sub-total of cash outflows from operating
activities 1,998,751,408.73 1,754,853,026.77
Net cash flows from operating activities 156,331,935.86 76,155,830.75
2. CASH FLOWS FROM INVESTING ACTIVITIES
Cash received from returns of investments 55,106,832.79 187,137,437.23
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets 119,000.00 -
Cash receipts related to other investing activities 996,340,000.00 857,940,000.00
Sub-total of cash inflows from investing activities 1,051,565,832.79 1,045,077,437.23
Cash paid for acquisition of fixed assets,
intangible assets and other long-term assets 5,983,680.11 6,044,462.78
Cash paid for investments - 10,000,000.00
Cash payments related to other investing activities 1,200,340,000.00 1,051,642,980.00
Sub-total of cash outflows from investing activities 1,206,323,680.11 1,067,687,442.78
Net cash flows from investing activities (154,757,847.32) (22,610,005.55)
The accompanying notes form an integral part of these financial statements
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY CASH FLOW STATEMENT (Continued)
For the six months ended 30 June 2019
(Expressed in Renminbi Yuan)
For the six months For the six months
ended 30 June 2019 ended 30 June 2018
3. CASH FLOWS FROM FINANCING ACTIVITIES
Cash received from borrowings 10,000,000.00 10,000,000.00
Cash receipts related to other financing activities 11,037,461,719.13 8,065,884,436.80
Sub-total of cash inflows from financing activities 11,047,461,719.13 8,075,884,436.80
Cash repayments for debts 10,000,000.00 10,000,000.00
Cash payments for distribution of dividends or
182,679,899.11 144,898,008.66
profit and interest expenses
Cash payments related to other financing activities 10,463,180,682.33 8,230,488,300.78
Sub-total cash outflows from financing activities 10,655,860,581.44 8,385,386,309.44
Net cash flows from financing activities 391,601,137.69 (309,501,872.64)
4.EFFECT OF FOREIGN EXCHANGE RATE
CHANGES ON CASH AND CASH (176,567.25) 314,863.47
EQUIVALENTS
5. NET INCREASE IN CASH AND CASH
392,998,658.98 (255,641,183.97)
EQUIVALENTS
Add: Cash and cash equivalents at beginning of the 1,817,654,598.01 1,776,696,342.87
year
6. CASH AND CASH EQUIVALENTS
2,210,653,256.99 1,521,055,158.90
AT END OF YEAR
The accompanying notes form an integral part of these financial statements
18
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
I Profile of the Company
(1) Historical development and basic information
As approved by the People’s Government of Shenzhen (SFBF (1993) No.356), China National Accord
Medicines Corporation Ltd. (hereinafter referred to as the “the Company”), formerly known as Shenzhen
Health Mineral Water Corp., Ltd., was registered as a joint stock liability limited company on 1 February
1993 through stock transformation. In March 1993, with the approval from the Shenzhen Branch of the
People’s Bank of China, the Company issued 30 million A shares (including 16.5 million public shares, 3.5
million employee shares and 10 million corporation shares) and 20 million B shares. After this issuance,
the Company’s share capital was RMB105 million. Through convert capital surplus into share capital,
bonus issues and issuance of shares for years, the share capital of the Company increased to
RMB428,126,983 as at 30 June 2019.
In November 2000, the Company entered into an Assets Exchange Agreement with Shenzhen
Investment Management Company, the original major shareholder of the Company, to exchange all the
assets and liabilities of the Company as of 31 August 2000 for Shenzhen Investment Management
Company’s 100% equity interests in 11 pharmaceutical companies and certain properties as well as 51%
equity interests in Shenzhen Tefa Modern Computer Co., Ltd. The above assets exchange proposal was
approved by shareholders in the Second Extraordinary General Meeting on December 29, 2000. The
transaction was completed on 8 January 2001.
On 18 February 2004, the Company’s original major shareholder, Shenzhen Investment Management
Company, entered into a Stock Transfer Agreement with Sinopharm Group Co., Ltd. (hereinafter referred
to as “Sinopharm Group”) to transfer its 43.33% shares in the Company to Sinopharm Group. The legal
procedures of the above equity transfer were completed on 9 December 2004. At the same time, as
approved by the State-owned Assets Supervision and Administration Commission of the State Council
(GZCQ (2004) No.525) and the China Securities Regulatory Commission (ZJGSZ (2004) No.94), the
nature of these shares was changed from state-owned stock to state-owned legal entity stock and
Sinopharm Group became the largest shareholder of the Company.
On 14 April 2006, the Company’s proposal on reformation of segregated stocks was approved. To gain
liquidity for the restricted stocks of the Company, the holders of the restricted stocks of the Company
agreed to pay the following consideration: based on the stock registration as of 27 April 2006, the
Company issued bonus shares on 28 April 2006 at the ratio of 3 shares to every 10 A shares to liquidated
A-shareholders which went public on the same day. After this bonus issue, the total number of shares of
the Company remained unchanged with corresponding changes in the composition of shareholdings.
On March 14 2014, the company issued 74,482,543 ordinary shares (A shares) through the non-public
offering. Par value per share is RMB1 yuan. The shares shall not be transferred within 36 months since
the issued day. The total number of shares of the Company was 362,631,943 since the date of issue.
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
I Profile of the Company (Continued)
(1) Historical development and basic information (Continued)
As of 31 October 2016, the company issued RMB65,495,040.00 ordinary shares (A shares) through the
non-public offering. Par value per share is RMB1 yuan. Through the non-public offering, the Company
acquired the companies under common control, including Sinopharm Holding Guoda Pharmacy Co., Ltd.
(“Guoda Pharmacy”), Foshan Nanhai Medicine Group Co., Ltd.(“Foshan Nanhai”),Guangdong South
Pharmaceutical Foreign Trade Co., Ltd. (“South Pharma & Trade), Guangdong Dong Fang Uptodate &
Special Medicines Co., Ltd. (“ Guangdong Uptodate & Special Medicines”) by issuing shares and raised
supporting funds by issuing shares to Ping An Asset Management Co., Ltd.(“Ping An Asset
Management”) to acquire non-controlling interest of South Pharma & Trade. The relevant shares were
successfully issued and listed on 5 January 2017.
As of 30 June 2019, the total share capital was RMB428,126,983.
The Company is registered with Shenzhen Administration for Industry & Commerce. Its Uniform Social
Credit Code is 91440300192186267U. The operation period of the Company is from 2 August 1986 to
the long term. The registered capital of the Company is RMB428,126,983. The legal representative of
the Company is Lin Zhaoxiong.
The approved scope of business of the Company and its subsidiaries (together “the Group”) includes:
the wholesale of traditional Chinese medicine preparations, bulk pharmaceutical drugs, chemical
preparations, bulk antibiotic drugs, antibiotic preparations, biochemical drugs, biological products
(including vaccines and in vitro diagnostic reagents psychotropic drugs and preparations, narcotic drugs,
toxic drugs for medical use, protein assimilation preparation and peptide hormones; trade of dietary
supplement; research, development and consultation services of pharmaceutical packaging materials
and pharmaceutical industry products; industrial investment holding; domestic trade; material supply and
marketing industry (other than special licensing); sale of ambulances; trade of second-class and third-
class medical equipment; project investment; property management and lease of self-owned properties;
pharmacovigilance and medical information consulting; parking operation; logistics and related services;
package agency business; logistic design; import and export services (excluding projects that are
prohibited by the country; limited projects has to be approved before operating).
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
I Profile of the Company (Continued)
(2) The Group’s parent and ultimate parent company is Sinopharm Group and China National
Pharmaceutical Group Corporation respectively.
(3) These financial statements were authorized for issue by the board of directors of the Company
on 22 August 2019.
(4) Subsidiaries consolidated in the financial statements for the current period and change in the
consolidation scope are shown in Note VI.
II Basis of preparation
The financial statements were prepared in accordance with the Basic Standard and specific standards of
the Accounting Standards for Business Enterprises issued by the Ministry of Finance on 15 February
2006 and the specific accounting standards and the relevant regulations issued thereafter (hereafter
collectively referred to as the “Accounting Standards for Business Enterprises” or “CAS”), and the
disclosure requirements in the Preparation Convention of Information Disclosure by Companies Offering
Securities to the Public No.15 – General Rules on Financial Reporting issued by the China Securities
Regulatory Commission.
These financial statements are prepared on a going concern basis.
Except for certain financial instruments, the financial statements have been prepared using historical
cost as the principle of measurement. Where assets are impaired, provisions for asset impairment are
made in accordance with the relevant requirements.
The Group has made accounting policies and accounting estimates according to its own operation and
production characteristics, which are mainly reflected in the bad debt provision for accounts receivable
(Note Ⅲ (10)), inventory costing methods (Note Ⅲ (13)), depreciation methods for fixed assets and
amortization method for intangible assets (NoteⅢ(18),NoteⅢ(22)), judgement basis for capitalization of
development costs (Note Ⅲ (22)) , impairment of long-term assets (Note Ⅲ (23)), revenue recognition
(NoteⅢ(30)).
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates
(1) Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the year ended 30 June 2019 are in compliance with
Accounting Standards for Business Enterprises, and truly and completely present the financial position
of the Group and the Company as of 30 June 2019 and the operating results, cash flows and other
information for the six months ended 30 June 2019 of the Group and the Company.
(2) Accounting year
The Company’s accounting year starts on 1 January and ends on 31 December.
(3) Functional currency
The functional currency is Renminbi (RMB).
(4) Business combinations
(a) Business combinations involving entities under common control
Assets and liabilities (including goodwill arising from the ultimate controlling shareholder’s acquisition of
the party being absorbed) that are obtained by the absorbing party in a business combination shall be
measured at their carrying amounts at the combination date as recorded by the party being absorbed.
The difference between the carrying amount of the net assets obtained and the carrying amount of the
consideration paid for the combination (or the aggregate face value of shares issued as consideration)
shall be adjusted to share premium under capital surplus. If the capital surplus is not sufficient to absorb
the difference, any excess shall be adjusted against retained earnings. The transaction costs of issuing
equity securities or debt securities for a business combination are recognized at the initial recognition
amount of equity securities or debt securities.
(b) Business combinations involving enterprises not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business combination
are measured at fair value at the acquisition date. Where the cost of the combination exceeds the
acquirer’s interest in the fair value of the acquirer’s identifiable net assets, the difference is recognized
as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair value of the
acquirer’s identifiable net assets, the difference is recognized in profit or loss for the current period.
Costs directly attributable to the combination are included in profit or loss in the period in which they are
incurred. Transaction costs associated with the issue of equity or debt securities for the business
combination are included in the initially recognized amounts of the equity or debt securities.Where the
business combination not involving enterprises under common control which is achieved in stages, the
acquirer’s previously held equity interests in the acquiree are remeasured at the fair value on the
acquisition date, with the difference between the fair value and carrying amount recognized as
investment income for the current period.
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(4) Business combinations (Continued)
(b) Business combinations involving enterprises not under common control (Continued)
If the acquirer’s previously held equity interests of the acquiree involve other comprehensive income
(“OCI”) under the equity method, the accounting treatment is conducted on the same basis as would
have been required if the investee had directly disposed of the related assets or liabilities, and the
changes in shareholders’ equity other than net profit or loss, OCI and profit distributions are charged to
profit or loss for the current period on the acquisition date. For financial assets at fair value through OCI
held before the acquisition date, changes in fair value that was accumulated through OCI will transfer to
retained earnings.
(5) Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all of its
subsidiaries.
Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated
from the date that such control ceases. For a subsidiary that is acquired in a business combination
involving enterprises under common control, it is included in the consolidated financial statements from
the date when it, together with the Company, comes under common control of the ultimate controlling
party. The portion of the net profits realized before the combination date is presented separately in the
consolidated income statement.
In preparing the consolidated financial statements, where the accounting policies and the accounting
periods of the Company and subsidiaries are inconsistent, the financial statements of the subsidiaries
are adjusted in accordance with the accounting policies and the accounting period of the Company. For
subsidiaries acquired from business combinations involving enterprises not under common control, the
individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable
net assets at the acquisition date.
All significant intra-group balances, transactions and unrealized profits are eliminated in the consolidated
financial statements. The portion of a subsidiary’s equity and the portion of a subsidiary’s net profits,
losses and comprehensive income for the period not attributable to the Company are recognized as
non-controlling interests and presented separately in the consolidated financial statements within equity,
net profits and total comprehensive income, respectively. The unrealized gain or loss from selling assets
to subsidiaries fully offsets the net income attributable to equity holders of the Company. The unrealized
gain or loss from purchasing assets from subsidiaries offsets the net income attributable to equity
holders of the Company and attributable to the non-controlling interest by the distribution proportion
regarding the Company and the subsidiary. The unrealized gain or loss from a transaction between
subsidiaries offsets the net income attributable to equity holders of the Company and attributable to the
non-controlling interest by the distribution proportion regarding the Company and the selling side of the
subsidiaries. If different recognition perspectives for the same transaction arise within different
accounting identities which are set up, there is an adjustment for the transaction from the Group’s
perspective.
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(5) Preparation of consolidated financial statements (Continued)
When the Group loses control of a subsidiary in multiple transactions in which it disposes of its long-term
equity investment in the subsidiary in stages, if each of the multiple transactions does not form part of a
bundled transaction, the transactions conducted before the loss of control of the subsidiary are
accounted for in accordance with the accounting policy for partial disposal of the equity investment in
subsidiaries where control is retained. If each of the multiple transactions forms part of a bundled
transaction which eventually results in the loss of control in the subsidiary, these multiple transactions
are accounted for as a single transaction. In the consolidated financial statements, the difference
between the consideration received and the corresponding proportion of the subsidiary’s net assets
(calculated continuously from the acquisition date) in each transaction prior to the loss of control shall be
recognized in other comprehensive income and transferred to profit or loss when the parent eventually
loses control of the subsidiary.
(6) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand, and
short-term and highly liquid investments that are readily convertible to known amounts of cash and are
subject to an insignificant risk of changes in value.
(7) Foreign currency translation
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the dates
of the transactions.
At the balance sheet date, monetary items denominated in foreign currencies are translated into RMB
using the spot exchange rates on the balance sheet date. Exchange differences arising from these
translations are recognized in profit or loss for the current period, except for those attributable to foreign
currency borrowings that have been taken out specifically for the acquisition or construction of qualifying
assets, which are capitalized as part of the cost of those assets. Non-monetary items denominated in
foreign currencies that are measured at historical cost are translated at the balance sheet date using the
spot exchange rates at the dates of the transactions. The effect of exchange rate changes on cash is
presented separately in the cash flow statement.
(8) Financial instruments
Financial instruments are the contracts that formed the financial assets of one entity, and at the same
time formed the financial liabilities or equity instruments of other entities.
Recognition and derecognition of financial instruments
Financial assets and financial liabilities are recognised when the Group becomes a party to the
contractual provisions of the instrument.
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(8) Financial instruments (Continued)
Recognition and derecognition of financial instruments (Continued)
The Group derecognises a financial asset, part of a financial asset or group of financial assets, i.e., offset
from the accounts and statement of financial position, if either of the following conditions is satisfied:
(i) The contractual rights to the cash flows from the financial asset expire; or
(ii) The contractual rights to the cash flows from the financial asset are transferred out, or obligated
to transfer out all generated cash flows on receipt; and (a) substantially all the risks and rewards
of ownership of the financial asset are transferred to the transferee; or (b) the Group neither
transfers nor retains substantially all the risks and rewards of ownership of the financial asset,
but has not retained control of the financial asset.
The Group derecognises a financial liability only when the underlying present obligation is settled,
discharged or expired. An agreement to replace the original financial liability with a new financial liability
with substantially different terms, or to modify the original financial liability’s terms substantially, is
accounted for as an extinguishment of the original financial liability and the recognition of a new financial
liability. The difference between the carrying amount of the financial liability Derecognized and the new
financial liability should be recognised in profit or loss for the current period.
All regular means of purchases or sales of financial assets are recognised and Derecognized on a trade
date basis. Regular means of purchases or sales are purchases or sales of financial assets that require
delivery of assets within the period generally established by regulation or convention in the marketplace.
Trade date is the date that the Group commits to purchase or sell the financial asset.
Classification and measurement of financial assets
At initial recognition, the Group classifies its financial assets into: financial assets at fair value through
profit or loss, financial assets at amortised cost, or financial assets at fair value through other
comprehensive income, according to the Group’s business model for managing financial assets and the
contract cash flow characteristics of the financial assets. Financial assets are measured at fair value at
initial recognition, provided that trade receivables or bills receivable not containing significant financing
components or for which financing components of not more than 1 year are not taken into consideration
shall be measured at their transaction prices at initial recognition.
For financial assets at fair value through profit or loss, the relevant transaction costs are directly
recognised in profit or loss; for other financial assets, the relevant transaction costs are recognised in
their initial recognition amount.
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(8) Financial instruments (Continued)
Classification and measurement of financial assets (Continued)
Subsequent measurement depends on the classification of the financial assets:
Financial assets measured at amortised cost (debt instruments)
The Group measures financial assets at amortized cost if both of the following conditions are met: The
financial asset is held within a business model with the objective to hold financial assets in order to
collect contractual cash flows; The contractual terms of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and interest on the principal amount outstanding.
Interest income of this kind of financial assets is recognized using the effective interest method. Gains
and losses are recognized in the income statement when the asset is derecognized, modified or
impaired. These financial assets mainly include cash and cash equivalents, bills receivable and trade
receivables, other receivables, debt investment and long-term receivables. Debt investments and
long-term receivables due within one year from the balance sheet date are reported by the Group as
current portion of non-current assets, and debt investments due within one year from the original
maturity date are reported as other current assets.
Financial assets at fair value through other comprehensive income (debt instruments)
The Group measures debt investments at fair value through other comprehensive income if both of the
following conditions are met: The financial asset is held within a business model with the objective of
both holding to collect contractual cash flows and selling; The contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding. Changes in fair values are recognized in other comprehensive income
except that interest income, impairment losses and exchange differences are recognized in current profit
or loss. Upon derecognition, the cumulative fair value change recognised in other comprehensive
income is transferred to profit or loss. Such financial assets are reported as other debt investment. Other
debt investment due within one year from the balance sheet date is reported as a current portion of
non-current assets and other debt investment due within one year from the original maturity date is
reported as an item of other current assets.
Financial assets designated at fair value through other comprehensive income (equity investments)
The Group irrevocably chooses to designate some non-tradable equity instrument investments as
financial assets at fair value through other comprehensive income. Only relevant dividend income
(excluding dividend income explicitly recovered as part of investment cost) is recognized in profit or loss,
and subsequent changes in fair value are included in other comprehensive income without provision for
impairment. When financial assets are derecognized, the accumulated gains or losses previously
recognized in other comprehensive gains are transferred from other comprehensive income and
recognized in retained earnings. Such financial assets are reported as other equity investment.
If one of the following conditions is met, it is a held-for-trading financial asset: the acquisition of the
relevant financial asset is intended primarily for sale or repurchase in the near future; it is a part of the
portfolio of identifiable financial instruments under centralized management, and there is objective
evidence that the short-term profit model is adopted in the near future; it is a derivative, except for a
derivative that is designated as a valid hedging instrument, other than a derivative that complies with a
financial guarantee contract.
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(8) Financial instruments (Continued)
Classification and measurement of financial assets (Continued)
Financial assets at fair value through profit or loss
Financial assets other than the above-mentioned financial assets at amortised cost and financial assets
at fair value through other comprehensive income are classified as financial assets at fair value through
profit or loss. For such financial assets, fair value is used for subsequent measurement, and all changes
in fair value are recognised in profit or loss. Such financial assets are presented as held-for-trading
financial assets and are presented as other non-current financial assets if they expire after more than
one year from the balance sheet date or expected to be held more than one year from the balance sheet
date.
Only when an accounting mismatch is eliminated or significantly decreased, financial assets are
designated as financial assets at fair value through profit or loss at initial recognition.
When an enterprise initially designates a financial asset as a financial asset at fair value through profit or
loss, it cannot be reclassified to other financial assets; other financial assets cannot be re-designated
after initial recognition as financial assets measured at fair value through profit or loss.
When and only when the Group changes its business model of managing financial assets, it reclassifies
all relevant financial assets affected.
Classification and measurement of financial liabilities
On initial recognition of financial liabilities of the Group are classified as financial liabilities at fair value
through profit or loss, other financial liabilities and derivatives designated as effective hedging
instruments. For financial liabilities at fair value through profit or loss, the relevant transaction costs are
directly recognized in profit or loss, and the related transaction costs of other financial liabilities are
recognized in their initial amount.
Subsequent measurement of financial liabilities is determined by its classification:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss consist of held for trading financial liabilities
(including derivatives belonging to financial liabilities) and financial liabilities designated on initial
recognition as financial liabilities at fair value through profit or loss.
Financial liabilities are held-for-trading financial liabilities if one of the following conditions are met: the
purpose of assuming related financial liabilities is mainly to sell or repurchase in the near future; they are
part of a centrally managed identifiable portfolio of financial instruments, and there is objective evidence
that enterprises have adopted a short-term profitability model in the near future; they are derivatives,
excluding derivatives that are designated as effective hedging instruments and derivatives that meet the
financial guarantee contract. Held-for-trading financial liabilities (including derivatives belonging to
financial liabilities) are subsequently measured at fair value. Except for hedging accounting, all changes
in fair value are recognized in profit or loss.
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(8) Financial instruments (Continued)
Classification and measurement of financial liabilities (Continued)
Only if one of the following conditions is met can financial liabilities be designated as financial liabilities at
fair value through profit or loss on initial recognition: (1) It can eliminate or significantly reduce the
accounting mismatch. (2) The formal written document of risk management or investment strategy has
stated that the portfolio of financial instruments is managed, evaluated and reported to key managers on
the basis of fair value. (3) The financial liability is a hybrid instrument that contains one or more
embedded derivatives, unless the embedded derivatives have no significant change in the cash flows of
the hybrid instrument, or the embedded derivatives should obviously not be separated from the related
hybrid instruments. (4) Mixed instruments contain embedded derivatives that need to be split but cannot
be measured separately at the time of acquisition or on subsequent balance sheet days.
For such financial liabilities, subsequent measurements are made at fair value. Changes in fair value
caused by changes in the Group’s own credit risk are recognized in other comprehensive income, while
other changes in fair value are recognized in profit or loss. Unless changes in fair value caused by
changes in the Group's own credit risk recognized in other comprehensive income may result in or
expand accounting mismatches in profit or loss, the Group shall recognize all changes in fair value
(including the amount of impact of changes in its own credit risk) in profit or loss.When an enterprise
designates a financial liability as a financial liability at fair value through profit or loss, it cannot be
reclassified as other financial liabilities; nor can other financial liabilities be re-designated as financial
liabilities at fair value through profit or loss after initial recognition.
Other financial liabilities
For such financial liabilities, subsequent measurement is made at amortized cost using the effective
interest rate method.
Impairment of financial assets
Based on expected credit losses, the Group undertakes impairment treatment and confirms loss
provisions of financial assets at amortized cost, debt instrument investments at fair value through other
comprehensive income and financial guarantee contracts.
Credit loss refers to the difference between the cash flows of all contracts discounted at the original
effective interest rate and the expected cash flows of all contracts receivable, i.e. the present value of all
cash shortages. Among them, the financial assets purchased by or originated from the Group to which
credit impairment has occurred shall be discounted at the effective interest rate adjusted by the credit of
the financial assets.
For trade receivables and contractual assets that do not contain significant financing components, the
Group uses a simplified measurement method to measure loss provisions in accordance with the
amount of expected credit losses equivalent to the entire life cycle.
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(8) Financial instruments (Continued)
Impairment of financial assets (Continued)
For trade receivables and contractual assets with significant financing components, the Group uses a
simplified measurement method to measure loss provisions in accordance with the amount of the
expected credit loss equivalent to the entire lifetime.
For financial assets other than those measured with simplified valuation methods, the Group evaluates
at each balance sheet date whether its credit risk has significantly increased since initial recognition. The
period during which credit risk has not significantly increased since initial recognition is considered the
first stage, at which the Group shall measure the loss provision based on the amount of the expected
credit loss for the next 12 months and shall compute interest income according to the book balance and
effective interest rate; the period during which credit risk has significantly increased since initial
recognition although no credit impairment has occurred is considered the second stage, at which the
Group shall measure the loss provision based on the amount of the expected credit loss for the entire
valid period and shall compute interest income according to the book balance and effective interest rate;
The period during which credit impairment has occurred after initial recognition is considered the third
stage, at which the Group shall measure the loss provision based on the amount of the expected credit
loss for the entire period and shall compute interest income according to the amortised cost and effective
interest rate. For financial instruments with relatively low credit risk at the balance sheet date, the Group
assumes that its credit risk has not significantly increases since initial recognition.
The Group evaluates the expected credit losses of financial instruments on a single and combined basis.
Taking into account the credit risk characteristics of different customers, the Group evaluates the
expected credit losses of trade receivables based on the aging portfolio.
In assessing expected credit losses, the Group takes into account reasonable and valid information on
past events, current conditions and future economic forecasts.
Refer to Notes VIII.3 for the disclosure of the Group's criteria for judging the significant increase in credit
risk, the definition of assets with impaired credit losses, and the assumption of measuring expected
credit losses.
When the Group no longer reasonably expects to be able to recover all or part of the contract cash flows
of the financial assets, the Group will write off the book value of the financial assets directly.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the statement of
financial position if there is a currently enforceable legal right to offset the recognised amounts and there
is an intention to settle on a net basis, or to realize the financial assets and settle the financial liabilities
simultaneously.
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(8) Financial instruments (Continued)
Modification of financial assets
Where the Group modifies or renegotiates the contract with its counterparty and does not result in the
derecognition of financial assets, but results in a change in the cash flow of the contract, the Group
recalculates the book value of the financial asset on the basis of the renegotiated or modified contract
cash flows at the discounted value of the original effective interest rate (or credit-adjusted effective rate
of interest) of the financial asset, and the related gains or losses are recognized in profit or loss. The
revised cost or expense of the financial assets adjust the book value of the financial assets and are
amortized within the remaining period of the modified financial assets.
Transfer of financial assets
The Group derecognises a financial asset when it has transferred substantially all the risks and rewards
of ownership of the financial asset to the transferee; the Group does not derecognize those financial
assets when it retains substantially all the risks and rewards of the ownership.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of financial
assets, the related accounting treatments of such financial assets are as follows: the Group
derecognises financial assets when it retains no control on them, and associated assets and liabilities
are recognised at the same time. If the Group retains control of the financial asset, it recognizes the
financial asset to the extent of its continuing involvement in the transferred financial asset and
recognizes an associated liability.
Continuing involvement that takes the form of a financial guarantee over the transferred asset is
measured at the lower of the original carrying amount of the asset and the financial guarantee. The
amount of the financial guarantee is the maximum amount of consideration that the Group could be
required to repay.
(9) Notes receivables
For details of the method for determining the expected credit loss of notes receivable, please refer to
“III.8 Financial instruments - Impairment of financial instruments.”
(10) Accounts Receivable
For details of the method for determining the expected credit loss of accounts receivable, please refer to
“III.8 Financial instruments - Impairment of financial instruments.”
(11) Accounts Receivable Financing
It includes notes receivable and accounts receivable that are measured at fair value on the balance
sheet date and whose changes are included in other comprehensive income.
For details of the method for determining the expected credit loss of receivables financing, please refer
“III.8 Financial instruments - Impairment of financial instruments.”
95
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(12) Other receivables
For details of the method for determining the expected credit losses of other receivables, please refer to
“III.8 Financial instruments - Impairment of financial instruments.”
(13) Inventories
Inventories include raw materials, work in progress, finished goods, delegate processing supplies and
turnover materials, and are measured at the lower of cost and net realizable value.
Cost is determined on the weighted average method. The cost of finished goods and work in progress
comprises raw materials, direct labor and an allocation of systematically allocated overhead
expenditures incurred based on the normal operating capacity.
Basis for determining the net realizable values of inventories and method for making provisions for
decline in the value of inventories
Provisions for decline in the value of inventories are determined at the excess amount of the carrying
value of the inventories over their net realizable value. Net realizable value is determined based on the
estimated selling price in the ordinary course of business, less the estimated costs to completion and
estimated costs necessary to make the sale and related taxes.
The Group adopts the perpetual inventory system.
(14) Contract assets
The unconditional (namely, dependent only on the passage of time) right to receive consideration from
customers owned by the Group shall be presented as amounts receivable. The right to receive
consideration following the transfer of products to customers which is dependent on factors other than
the passage of time is presented as contract assets.
(15) Assets relating to contract cost
The Group’s assets relating to contract costs include the contract acquisition costs and contract
performance costs, presented respectively under inventories, other current assets and other non-current
assets.
Where the Group expects the incremental costs for acquiring a contract to be recoverable, such contract
acquisition costs are recognised as an asset (unless the amortisation period of the asset is not more
than 1 year).
96
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(15) Assets relating to contract cost (Continued)
Costs incurred by the Group for the performance of a contract are recognised as an asset as contract
performance costs if they do not fall under the scope of the relevant standards for inventories, fixed
assets or intangible assets but meet all the following conditions:
(1) They are directly related to a current or anticipated contract, including direct labour, direct
materials, manufacturing expenses (or similar expenses), to be borne by customers as
specifically stipulated, and otherwise incurred solely in connection with the contract;
(2) they will increase the resources to be utilised in the Company’s future performance of its
contractual obligations; and
(3) they are expected to be recoverable.
The Group amortises assets relating contract costs on the same basis as that for the recognition of
revenue relating to such assets and recognises the amortised assets in current profit or loss.
For assets relating to contract costs whose carrying value is higher than the difference between the
following two items, the Group makes provision for impairment for the excess to be recognised as asset
impairment losses:
(1) The remaining consideration expected to be obtained as a result of the transfer of goods relating
to such assets;
(2) Estimated costs to be incurred in connection with the transfer of relevant goods
In the event that the difference between (1) and (2) becomes higher than the carrying value of such
assets as a result of changes in the factors of impairment for previous periods, previous provisions for
asset impairment losses should be written back and included in current profit or loss, provided that the
carrying asset value following the write-back shall not exceed the carrying value that such assets would
have on the date of write-back were there no provision for impairment.
(16) Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries,
joint ventures and associates.
Long-term equity investments are accounted for using the coast method at the time it was acquired. For
long-term equity investments acquired through a business combination involving enterprises under
common control, the investment cost shall be the absorbing party’s share of the carrying amount of
shareholders’ equity of the party being absorbed at the combination date.
Subsidiaries are the investees over which the Company is able to exercise control. Associates are the
investees that the Group has significant influence on their financial and operating policies.
97
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(16) Long-term equity investments (Continued)
Investments in subsidiaries are measured using the cost method in the Company’s financial statements,
and adjusted by using the equity method when preparing the consolidated financial statements. Interests
in associates are accounted for using the equity method. For long-term equity investments acquired by
way of the swap of non-monetary assets, the initial investment cost shall be determined in accordance
with “ASBE No. 7 — Swap of Non-monetary Assets.” For long-term equity investments acquired by way
of debt restructuring, the initial investment cost shall be determined in accordance with “ASBE No. 12 —
Debt Restructuring.”
(a) Determination of investment cost
For long-term equity investments acquired through a business combination: for long-term equity
investments acquired through a business combination involving enterprises under common control, the
investment cost shall be the absorbing party’s share of the carrying amount of shareholders’ equity of the
party being absorbed at the combination date; for long-term equity investments acquired through a
business combination involving enterprises not under common control, the investment cost shall be the
combination cost.
(b) Subsequent measurement and recognition of related profit or loss
For long-term equity investments accounted for using the cost method, they are measured at the initial
Investment costs, and cash dividends or profit distribution declared by the investees are recognized as
investment income in profit or loss.
For long-term equity investments accounted for using the equity method, where the initial investment
cost of a long-term equity investment exceeds the Group’s share of the fair value of the investee’s
identifiable net assets at the acquisition date, the long-term equity investment is measured at the initial
investment cost; where the initial investment cost is less than the Group’s share of the fair value of the
investee’s identifiable net assets at the acquisition date, the difference is included in profit or loss and the
cost of the long-term equity investment is adjusted upwards accordingly.
For long-term equity investments accounted for using the equity method, the Group recognizes the
investment income according to its share of net profit or loss of the investee. The Group discontinues to
recognize its share of net losses of an investee after the carrying amount of the long-term equity
investment together with any long-term interests that, in substance, form part of the investor’s net
investment in the investee are reduced to zero. However, if the Group has obligations for additional
losses and the criteria with respect to the recognition of provisions under the accounting standards on
contingencies are satisfied, the Group continues to recognize the investment losses and the provisions.
For changes in shareholders’ equity of the investee other than those arising from its net profit or loss,
other comprehensive income, and profit distribution, the Group adjusts the book value of the investment
and records a capital surplus accordingly. The carrying amount of the investment is reduced by the
Group’s share of the profit distribution or cash dividends declared by an investee.
98
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(16) Long-term equity investments (Continued)
(b) Subsequent measurement and recognition of related profit or loss (Continued)
The unrealized profits or losses arising from the intra-group transactions amongst the Group and its
investees are eliminated in proportion to the Group’s equity interests in the investees, and then based on
which the investment gains or losses are recognized. For the loss on intra-group transactions amongst
the Group and its investees attributable to asset impairment, any unrealized loss is not eliminated.
(c) Basis for determining existence of control, joint control or significant influence over investees
Control is the power to govern the financial and operating policies of the investee so as to obtain benefits
from its operating activities. In determining whether the Company is able to exercise control over the
investee, the effect of potential voting rights over the investee is considered, such as convertible debts
and warrants currently exercisable.
Significant influence is the power to participate in the financial and operating policy decisions of the
investee, but is not control or joint control over those policies.
(d) Impairment of long-term equity investments
The carrying amount of long-term equity investments in subsidiaries and associates is reduced to the
recoverable amount when the recoverable amount is less than the carrying amount.
(17) Investment properties
Investment properties, including land use rights that have already been leased out, buildings that are
held for the purpose of leasing, and buildings that are being constructed or developed for the purpose of
leasing in future, are measured initially at cost. Subsequent expenditures incurred in relation to
investment properties are included in the cost of investment properties when it is probable that the
associated economic benefits will flow to the Group and their costs can be reliably measured; otherwise,
the expenditures are recognized in profit or loss in the period in which they are incurred.
Estimated useful lives Estimated residual value Annual depreciation
(amortization) rates
Buildings 12-35 years 0-5% 2.71-7.92%
Land use rights 30-50 years - 2.00-3.33%
When an investment property is transferred to owner-occupied property, it is reclassified as a fixed asset
or intangible asset at the date of transfer. When an owner-occupied property is transferred out for
earning rentals or for capital appreciation, the fixed asset or intangible asset is reclassified as an
investment property at its carrying amount at the date of transfer.
The investment properties’ useful life, net residual value and depreciation (amortization) method applied
are reviewed and adjusted as appropriate at the end of each year.
99
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(17) Investment properties (Continued)
An investment property is Derecognized on disposal or when the investment property is permanently
withdrawn from use and no future economic benefits are expected from its disposal. The net amount of
proceeds from sale, transfer, retirement or damage of an investment property after its carrying amount
and related taxes and expenses is recognized in profit or loss for the current period.
(18) Fixed assets
Fixed assets are recognized when it is probable that the related economic benefits will flow to the Group
and the costs can be reliably measured. Subsequent expenditures incurred for a fixed asset are included
in the cost of the fixed asset when it is probable that the associated economic benefits will flow to the
Group and the related cost can be reliably measured. The carrying amount of the replaced part is
derecognized. All the other subsequent expenditures are recognized in profit or loss in the period in
which they are incurred.
Fixed assets are initially measured at cost and the effect of any expected costs of abandoning the asset
at the end of its use is considered. The cost of a fixed asset is the aggregate cost of purchase price,
related taxes and any directly attributable expenditure for bringing the asset to its working condition for
its intended use.
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their
estimated residual values over their estimated useful lives. For the fixed assets that have been provided
for impairment loss, the related depreciation charge is prospectively determined based upon the
adjusted carrying amounts over their remaining useful lives.
Estimated useful lives Estimated residual value Annual depreciation
rates
Buildings 20-35 years 0-5% 2.71-5.00%
Machinery and equipment 5-14 years 3-6% 6.79-19.40%
Motor vehicles 3-10 years 0-5% 9.50-33.33%
Other equipment 3-10 years 0-5% 9.50-33.33%
Leasehold improvements within 5 years 0% 20% and above
Fixed assets held under finance leases are depreciated under the same depreciation method as other
fixed assets. The assets are depreciated over their estimated useful lives where ownership of the assets
can be reasonably estimated to be gained when lease periods end; otherwise, the leased assets are
depreciated over the shorter of the lease terms and the estimated useful lives of the assets.
The Group reviews the useful life, estimated net residual value of a fixed asset and the depreciation
method applied at least once at each financial year end, and adjusts for any change when necessary.
100
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(18) Fixed assets (Continued)
A fixed asset is Derecognized on disposal or when no future economic benefits are expected from its use
or disposal. The amount of proceeds from disposal on sale, transfer, retirement or damage of a fixed
asset net of its carrying amount and related taxes and expenses is recognized in profit or loss for the
current period.
(19) Construction in progress
Construction in progress is measured at its actual cost. The actual cost includes various necessary
construction expenditures during the construction period, borrowing costs capitalised before it is ready
for intended use and other relevant costs.
(20) Borrowing costs
Borrowing costs refer to the interest and other relevant cost incurred from borrowing, which include loan
interest, discount or amortization of premiums, auxiliary expenses and exchange differences due to
foreign currency loans, etc.
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and
construction or production of assets eligible for capitalization, it shall be capitalized and recorded into the
costs of relevant assets. Other borrowing costs shall be recognized as expenses on the basis of the
actual amount incurred, and shall be recorded into the current profits and losses. The term “assets
eligible for capitalization” shall refer to the fixed assets, investment real estate, inventories and other
assets, of which the acquisition and construction or production may take quite a long time to get ready
for its intended use or for sale.
The borrowing costs shall not be capitalized unless they simultaneously meet the following
requirements:
(1) The asset disbursements have already incurred;
(2) The borrowing costs have already incurred; and
(3) The acquisition and construction or production activities which are necessary to prepare the
asset for its intended use or sale have already started.
When the qualified asset under acquisition and construction or production is ready for the intended use
or sale, the capitalization of the borrowing costs shall be ceased. Borrowing costs incurred after the
intended use or sale shall be recorded in the current profits and losses.
During the period of capitalization, the capitalized amount of interest in each accounting period shall be
calculated and determined in the ways below:
The enterprise shall calculate and determine the interest of a specific loan by deducting interest income
of the loan capital deposit in the bank or investment income obtained from a temporary investment.
101
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(20) Borrowing costs (Continued)
The enterprise shall calculate and determine the to-be-capitalized amount of interests on the general
borrowing by multiplying the weighted average asset disbursement of the part of the accumulative asset
disbursements minus the general borrowing by the capitalization rate of the general borrowing used.
Where the acquisition and construction or production of a qualified asset is interrupted abnormally and
the interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be
suspended. The borrowing costs incurred during such period shall be recognized as expenses, and shall
be recorded into the profits and losses of the current period, till the acquisition and construction or
production of the asset restarts.
(21) Right-of-use assets
On the commencement date of the lease term, the lessee recognizes the right-of-use asset for the lease
(except for short-term leases and low-value asset leases). The right to use asset costs includes: the
initial measurement amount of the leas liability; the lease payment amount paid on or before the start
date of the lease period (if there is a lease incentive, deducting the relevant amount of the lease
incentive); The initial direct cost incurred by the lessee.
Where the lessee can reasonably determine the ownership of the leased asset at the expiration of the
lease term, the depreciation is provided within the remaining useful life of the leased asset; If it is not
reasonable to determine that the leasehold asset can be acquired at the expiration of the lease term, the
depreciation is provided during the period between the lease term and the remaining useful life of the
leased asset. The lessee is required to determine whether the right-of-use asset is impaired at the same
time and accounting for identified impairment losses.
(22) Intangible assets
Intangible assets are recognised and measured on initial recognition at cost only if the related economic
benefits will probably flow into the Group and their costs can be measured reliably. However, the
intangible assets acquired through a business combination not involving enterprises under common
control should be measured at fair value separately as intangible assets when their fair values can be
reliably measured.
102
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(22) Intangible assets (Continued)
The useful life of the intangible assets shall be assessed according to the estimated beneficial period
expected to generate economic benefits for the Group. An intangible asset shall be regarded as having
an indefinite useful life when there is no foreseeable limit to the period over which the asset is expected
to generate economic benefits for the Group.
Categories Useful lives
Land use rights Between the approved useful period and
the Company’s operating period
Software 3-5 years
Trademarks 5-10 years
Technology patents 5 years
Distribution network 20 years
Franchising rights 10 years
Favorable leases 17-20 years
Land use rights obtained by the Group are usually accounted for as intangible assets. As for the
construction of plants, factories and other buildings of the Group, the related land use rights and other
buildings were accounted for as intangible assets and fixed assets, respectively. Purchase costs of land
use rights and buildings were allocated to intangible assets and fixed assets separately. Purchase costs
were recognised as cost of fixed assets, only if the separation was impracticable.
Intangible assets with a finite useful life are amortised over their estimated useful lives using the
straight-line method or other reasonable systematic methods. For an intangible asset with a finite useful
life, the Group reviews the useful life and amortization method at least once at each financial year end,
and makes adjustments when necessary.A land use right granted by the government with an infinite
useful life would not be amortized. Other land use rights are amortized on the straight-line basis over
their approved useful period. If the acquisition costs of land use rights and the buildings located thereon
cannot be reliably allocated between the land use rights and the buildings, all of the acquisition costs are
recognized as fixed assets.
The expenditure on an internal research and development project is classified into expenditure on the
research phase and expenditure on the development phase based on its nature and whether there is
material uncertainty that the research and development activities can form an intangible asset at the end
of the project.
103
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(22) Intangible assets (Continued)
Expenditure for investigation, evaluation and selection of production process and new drug researches
is recognized in profit or loss in the period in which it is incurred. Expenditure on the designation,
measurement of the final utilization of the production process and new drugs before mass production is
capitalized only if all of the following conditions are satisfied:
development of the production process and new drugs has been fully demonstrated by the
technical team;
management has approved the budget of drug production development and new drugs;
market research analysis suggests that the products produced by the new production technology
are able to be promoted;
adequate technical, financial and other resources to complete the development and the ability to
use or sell the intangible asset;
the expenditure attributable to the intangible asset during its development phase can be reliably
measured.
Other development costs that do not meet the conditions above are recognized in profit or loss in the
period in which they are incurred. Development costs previously recognized as expenses are not
recognized as an asset in a subsequent period. Capitalized expenditure on the development phase is
presented as development costs in the balance sheet and transferred to intangible assets at the date
that the asset is ready for its intended use.
The Group classifies the expenses for internal research and development as research costs and
development costs. All research costs are charged to the current profit or loss as incurred. Expenditure
incurred on projects to develop new products is capitalised and deferred only when the Group can
demonstrate the technical feasibility of completing the intangible asset so that it will be available for use
or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future
economic benefits (including demonstration that the product derived from the intangible asset or the
intangible asset itself will be marketable or, in the case of internal use, the usefulness of the intangible
asset as such), the availability of technical and financial resources to complete the project and procure
the use or sale of the intangible asset, and the ability to measure reliably the expenditure during the
development. Product development expenditure which does not meet these criteria is expensed when
incurred.
104
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(23) Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives, long-term prepaid
expenses and investment properties measured using the cost model and long-term equity investments
in subsidiaries and associates are tested for impairment if there is any indication that an asset may be
impaired at the balance sheet date. If the result of the impairment test indicates that the recoverable
amount of the asset is less than its carrying amount, a provision for impairment and an impairment loss
are recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of
the future cash flows expected to be derived from the asset. Provision for asset impairment is
determined and recognized on the individual asset basis. If it is not possible to estimate the recoverable
amount of an individual asset, the recoverable amount of a group of assets to which the asset belongs is
determined. A group of assets is the smallest group of assets that is able to generate independent cash
inflows.
Goodwill that is separately presented in the financial statements, intangible assets with infinite useful
lives and capitalized development costs are tested at least annually for impairment, irrespective of
whether there is any indication that it may be impaired. In conducting the test, the carrying value of
goodwill is allocated to the related asset groups or groups of asset groups which are expected to benefit
from the synergies of the business combination. If the result of the test indicates that the recoverable
amount of an asset group or a group of asset groups, including the goodwill allocated, is lower than its
carrying amount, the corresponding impairment loss is recognized. The impairment loss is first deducted
from the carrying amount of goodwill that is allocated to the asset group or group of asset groups, and
then deducted from the carrying amount of other assets within the asset groups or groups of asset
groups in proportion to the carrying amount of other assets.
Once the above impairment loss is recognized, it will not be reversed for the value recovered in the
subsequent periods.
(24) Long-term prepaid expenses
Long-term prepaid expenses include the expenditure for improvements to fixed assets under operating
leases, and other expenditures that have been made but should be recognized as expenses over more
than one year in the current and subsequent periods. Long-term prepaid expenses are amortized on the
straight-line basis over the expected beneficial period and are presented at actual expenditure net of
accumulated amortization.
(25) Contract liabilities
The obligation to pass products to customers in connection with customer consideration received or
receivable is presented as contract liabilities, for example, amounts received prior to the transfer of the
promised products.
Contract assets and contract liabilities under the same contract are presented on a net basis after
set-off.
105
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(26) Employee benefits
Short-term employee benefits
The actual occurred short-term employee benefits are recognizes as liabilities during the accounting
period in which the service has been rendered by the employees and as costs of assets or expenses to
whichever the employee service is attributable.
Post-employment benefits (defined contribution plans)
The employees in the Group participate in social insurance and unemployment insurance schemes
administrated by the local governments, and the related expenditures are recorded in cost of related
assets or profit or loss in the period when they incurred.
Post-employment benefits (defined benefit plans)
The Group operates a defined benefit pension scheme. No funds have been injected into the scheme.
The cost of benefits provided under the defined benefit scheme is calculated using the expected benefit
accrual unit approach.
Remeasurement arising from defined benefit pension schemes, including actuarial gains or losses,
changes in the asset cap effect (deducting amounts included in net interest) and returns on scheme
assets (deducting amounts included in net interest) are instantly recognised in the balance sheet and
charged to shareholders’ equity through other comprehensive income for the period during which it is
incurred. It will not be reversed to profit and loss in subsequent periods.
Previous service costs are recognised as current expenses when: the defined benefit scheme is revised,
or relevant restructuring costs or termination benefits are recognised by the Group, whichever earlier.
Net interest is arrived at by multiplying net liabilities or net assets of defined benefits with a discount rate.
Changes in net obligations of defined benefits are recognised as operating costs and administration
expenses in the income statement. Service costs included current services costs, past service costs and
settlement of profit or loss. Net interest included interest income from scheme assets, interest expenses
for scheme obligations and interest of the asset cap effect.
Termination benefits
The Group recognizes a liability for termination benefits and charges to profit or loss at the earlier of the
following dates: a) when the Group can no longer withdraw from the termination plan or the redundancy
offer; and b) when the Group recognizes costs or expense for a restructuring plan which involves the
payment of termination benefits.
106
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(26) Employee benefits (Continued)
Other long term employee benefits
Other long-term employees’ benefits provided to employees shall be recognised and measured as net
liabilities or net assets where provisions regarding post-employment benefits are applicable, provided
that changes shall be included in current profit and loss or related capital costs.
(27) Lease liability
On the commencement date of the lease term, the lessee recognizes the lease liability for the lease
(except for short-term leases and low-value asset leases). The lease liability is initially measured using
the incremental borrowing rate as the present value of the discount rate based on the lease payments
that have not been paid on the start date of the lease term. At the same time, the lessee calculates the
interest expense of the lease liability for each period of the lease term based on the effective interest
method and recognizes it in profit or loss for the current period.
(28) Provisions
An obligation related to a contingency shall be recognized by the Group as a provision when all of the
following conditions are satisfied, except contingent considerations and contingent liabilities assumed in
a business combination not involving enterprises under common control:
(1) The obligation is a present obligation of the Group;
(2) It is probable that an outflow of economic benefits from the Group will be required to settle
theobligation; and
(3) The amount of the obligation can be measured reliably.
The provisions are initially measured at the best estimate of the expenditure required to settle the related
present obligation, taking into account factors pertaining to a contingency such as the risks, uncertainties
and time value of money as a whole. The carrying amount of provisions is reviewed at the balance sheet
date. Where there is clear evidence that the carrying amount of a provision does not reflect the current
best estimate, the carrying amount is adjusted to the current best estimate.
For business combinations not under common control, contingent liabilities of the acquiree obtained in a
business combination shall be measured at fair value in initial recognition. After initial recognition,
subsequent measurement is conducted using the higher of the amount recognized by provisions and the
amount of initial recognition deducting the accumulated amortization amount determined by the
principles of revenue recognition.
107
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(29) Share-based payments
The share-based payments shall consist of equity-settled share-based payments and cash-settled
share-based payments. The term "equity-settled share-based payment" refers to a transaction in which
the group grants shares or other equity instruments as a consideration in return for services.
The equity-settled share-based payment in return for employee services shall be measured at the fair
value of the equity instruments granted to the employees. As to an equity-settled share-based payment
in return for services of employees, if the right may be exercised immediately after the grant, the fair
value of the equity instruments shall, on the date of the grant, be included in the relevant cost or expense
and the capital reserves shall be increased accordingly. As to an equity-settled share-based payment in
return for employee services, if the right cannot be exercised until the vesting period comes to an end or
until the prescribed performance conditions are met, then on each balance sheet date within the vesting
period, the Group shall make the best estimate of the number of vested equity instruments based on the
latest movement of the granted employee, the content of prescribed performance and other conditions.
Based on the best estimate, the services obtained in the current period shall be included in the relevant
costs or expenses and the capital reserves at the fair value of the equity instruments on the date of the
grant.
For awards that do not ultimately vest because non-market performance and service conditions have not
been met, no expense is recognised. Where awards include a market or non-vesting condition, the
transactions are treated as vesting irrespective of whether the market or non-vesting condition is
satisfied, provided that all other performance and service conditions are satisfied.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if
the terms had not been modified, if the original terms of the award are met. In addition, an expense is
recognised for any modification that increases the total fair value of the share-based payments, or is
otherwise beneficial to the employee as measured at the date of modification.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation,
and any expense not yet recognised for the award is recognised immediately. This includes any award
where non-vesting conditions within the control of either the Group or the employee are not met.
However, if a new award is substituted for the cancelled award, and is designated as a replacement
award on the date that it is granted, the cancelled and new awards are treated as if they were a
modification of the original award, as described in the previous paragraph.
108
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(29) Share-based payments (Continued)
A cash-settled share-based payment shall be measured in accordance with the fair value of liability
calculated and confirmed based on the shares or other equity instruments undertaken by an enterprise.
As to a cash-settled share-based payment instruments, if the right may be exercised immediately after
the grant, the fair value of the liability undertaken by the enterprise shall, on the date of the grant, be
included in the relevant costs or expenses, and the liabilities shall be increased accordingly. As to a
cash-settled share-based payment, if the right may not be exercised until the vesting period comes to an
end or until the specified performance conditions are met, on each balance sheet date within the vesting
period, the services obtained in the current period shall, based on the best estimate of the information
about the exercisable right, be included in the relevant costs or expenses and the corresponding
liabilities at the fair value of the liability undertaken by the group. The group shall, on each balance sheet
date and on each account date prior to the settlement of the relevant liabilities, re-measure the fair
values of the liabilities and include the changes in the current profits and losses.
(30) Revenue recognition
The group recognizes revenue when it has fulfilled its obligations under the contract, i, e. when the
customer acquires control relevant goods or services. Acquiring control over the goods or services refers
to the ability to dominate the use of the goods or the portion of services and to derive almost all the
economic benefits therefrom.
Contracts for sale of goods
The contracts for the sale of goods between the Group and its customer usually only contain the
performance obligations for the transfer of goods. The Group generally recognizes revenue at the point
of transferring the control of goods on the basis of a combination of the following factors: the current right
to collect the goods, the transfer of major risks and benefits in the ownership of the goods, and the
transfer of the legal ownership of the goods, the transfer of physical assets of the goods and that the
customers have accepted the goods.
Service Contracts
The service contracts between the Group and its customers usually consist of performance obligations
such as engineering construction management, engineering design consulting and so on. As the Group's
performance of contracts is at the same time when the customer obtains and consumes the economic
benefits of the performance of the Group, and the Group has the right to collect receivables from the
performance of contacts that has been completed to date, the Group regards it as a contact obligation
over a period of time, except that the progress of performance cannot be reasonably determined. The
Group determines the progress of the performance of contracts in accordance with the input method. If
the progress of performance of contracts cannot be reasonably determined and the cost incurred by the
Group are expected to be compensated, the revenue is recognized on the basis of the incurred costs
until the progress of performance of contacts can be reasonably measured.
109
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(30) Revenue recognition (Continued)
Variable consideration
Certain contracts between the Group and its customers contain cash discounts and price guarantee
clauses which will give rise to variable consideration. Where a contract contains variable consideration,
the Group determines the best estimates on the variable consideration based on expected values or the
most probable amount, provided that transaction prices including variable consideration shall not exceed
the cumulative amount of recognised revenue upon the removal of relevant uncertainties in connection
with which a significant reversal is highly unlikely.
Consideration payable to customers
Where consideration is payable by the Group to a customer, such consideration payable shall be
deducted against the transaction price, and against current revenue upon the recognition of revenue or
the payment of (or the commitment to pay) the consideration to the customer (whichever is later), save
for consideration payable to the customer for the purpose of acquiring from the customer other clearly
separable products.
Return clauses
In connection with sales with a return clause, revenue is recognised according to the amount of
consideration it expects to be entitled to for the transfer to a customer when the customer acquires
control of the relevant. Amounts expected to be refunded for the return of sales are recognised as
liabilities. At the same time, the balance of the carrying value of the product expected to be returned
upon transfer less expected costs for the recall of such product (including an impairment loss of the
recalled product) shall be recognised as an asset (i.e. cost of return receivables), and the net amount of
the carrying value of the transferred product upon the transfer less the aforesaid asset cost shall be
transferred to cost. At each balance sheet date, the Group reassesses the future return of sales and
remeasures the above assets and liabilities.
Significant financing component
Where a contract contains a significant financing component, the Group determines transaction prices
based on amounts payable assumed to be settled in cash by customers immediately upon the
acquisition of control over the products. The difference between such transaction price and contract
consideration is amortised over the contract period using the effective interest rate method based on a
ratio that discounts the nominal contractual consideration to the current selling price of the products.
The Group shall not give consideration to any significant financing component in a contract if the gap
between the customer’s acquisition of control over the products and payment of consideration is
expected to be less than 1 year.
110
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(30) Revenue recognition (Continued)
Warranty clauses
The Group provides quality assurance for products sold and assets built in accordance with
contract terms and laws and regulations. The accounting treatment of quality assurance in the
form of warranty assuring customers products sold are in compliance with required standards is
set out in Note III.28. Where the Group provides a service warranty for a standalone service in
addition to the assurance of compliance of products with required standards, such warranty is
treated as a standalone contractual performance obligation, and a portion of the transaction
price shall be allocated to the service warranty based on a percentage of the standalone price
for the provision of product and service warranty. When assessing whether a warranty is
rendering a standalone service in addition to providing guarantee to customers that all sold
goods are in compliance with required standards, the Group will consider whether or not such
warranty is a statutory requirement, the term of the warranty and the nature of the Group’s
undertaking to perform its obligations.
Reward points program
The Group grants reward points to customers when selling goods. Customers can use reward
points to redeem free or discounted goods provided by the Group. This reward points program
provides significant rights to customers, the Group consider it as an individual performance
obligation, and an apportion part of the transaction price to reward points based on pricing of
goods or services with warranty clauses. Revenue is recognised when customers obtain goods
redeemed or when reward points expire.
Principal responsible person/proxy
For goods or other assets obtained from a third party which were transferred later to customers,
the Group has the right to decide independently, pricing of goods. This means that the Group
has obtained control over related goods before transferring to customers. Therefore, the Group
is the principal responsible person, and revenue is recognised based on total amount of
consideration received or receivable. Otherwise, the Group is proxy, and revenue is recognised
based on expected commission. This amount should be the total amount of consideration
received or receivable net of the amount payable to other parties, or based on the fixed amount
or percentage.
(31) Government grants
A government grant is recognized when the conditions attached to it can be complied with and
the government grant can be received. For a government grant in the form of transfer of
monetary assets, the grant is measured at the amount received or receivable. For a government
grant in the form of transfer of non-monetary assets, it is measured at fair value; if the fair value
is not reliably determinable, the grant is measured at nominal amount.
111
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(31) Government grants (Continued)
Government grants related to assets refer to government assets which are granted to enterprises for the
long-term assets formed by acquisition, construction or in other manners. Government grants related to
income refer to government grants other than those related to assets.
Government grants related to income to be used as compensation for future expenses or losses shall be
recognized as deferred income and shall be charged to the current profit or loss or be used to write down
the relevant loss, during the recognition of the relevant cost expenses or losses; or used as
compensation for relevant expenses or losses already incurred by enterprises shall be directly charged
to the profit or loss account in the current period or used to write down the relevant cost.
The government grants related to assets shall be used to write down the book value of the relevant
assets or be recognized as deferred income. The government grants related to assets, recognized as
deferred income, shall be charged to the profit and loss reasonably and systematically in stages over the
useful lives of the relevant assets. The government grants measured at a nominal amount shall be
directly charged to the current profit or loss.
If any related asset is sold, transferred, written off or destroyed before the end of its useful life, the
balance of the undistributed deferred income shall be transferred to the current gain or loss on disposal
of the asset.
(32) Income tax
Income tax comprises current and deferred tax. Income tax is recognized as income or an expense in
profit or loss of the current period, or recognized directly in shareholders’ equity if it arises from a
business combination or relates to a transaction or event which is recognized directly in shareholders’
equity.
The Group measures a current tax asset or liability arising from the current and prior periods based on
the amount of income tax expected to be paid by the Group or returned by tax authorites calculated
according to related tax laws.
Deferred tax assets and deferred tax liabilities are calculated and recognized based on the differences
arising between the tax bases of assets and liabilities and their carrying amounts (temporary
differences). A deferred tax asset is recognized for the deductible losses that can be carried forward to
subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax
liability is recognized for a temporary difference arising from the initial recognition of goodwill. No
deferred tax asset or deferred tax liability is recognized for the temporary differences resulting from the
initial recognition of assets or liabilities due to a transaction other than a business combination, which
affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date,
deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to
the period when the asset is realized or the liability is settled.
112
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(32) Income tax (Continued)
Deferred tax assets are only recognized for deductible temporary differences, deductible losses and tax
credits to the extent that it is probable that taxable profit will be available in the future against which the
deductible temporary differences, deductible losses and tax credits can be utilized.
Deferred tax assets and liabilities are offset when:
the deferred taxes are related to the same tax payer within the Group and the same
taxation authority; and
that tax payer has a legally enforceable right to offset current tax assets against
current tax liabilities.
Deferred tax liabilities are recognized for temporary differences arising from investments in subsidiaries
and associates, except where the Group is able to control the timing of the reversal of the temporary
difference, and it is probable that the temporary difference will not reverse in the foreseeable future.
When it is probable that the temporary differences arising from investments in subsidiaries, and
associates will be reversed in the foreseeable future and that the taxable profit will be available in the
future against which the temporary differences can be utilized, the corresponding deferred tax assets are
recognized.
(33) Changes in accounting policies and accounting estimates
Changes in accounting policies
Details and reasons for changes in Procedures for approval Notes
accounting estimates
On 7 December 2018, the Ministry of Approval by The eleventh meeting The Group implement the New Lease
Finance revised “Accounting Standard of the eighth board of directors that Standard from 1 January 2019. According to
for Enterprises No. 21 - Lease” (the held on August 22, 2019. the convergence rules of the New Lease
“New Lease Standard”). It is also Standard, it is optional to adjust the amount of
required that enterprises listed both the retained earnings and other relevant
domestically and abroad and enterprises accounts at the beginning of the year when
listed abroad and preparing financial the New Lease Standard is initially
statements in accordance with implemented based on the cumulative impact
International Financial Reporting of the initial implement of the New Lease
Standards or the Accounting Standards Standard without adjusting the information for
for Business Enterprises adopt the New the comparable period. This change in
Lease Standard from 1 January 2019. accounting policy will increase the company's
total assets and total liabilities, but it is not
expected to have a significant impact on the
owner's equity and net profit.
The main impact of the retroactive adjustments resulting from the above changes in accounting policies on the
financial statements are as follows:
113
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(33) Changes in accounting policies and accounting estimates (Continued)
Consolidated balance sheet:
ASSETS 31 December 2018 1 January 2019 Adjustment
Current assets
Cash and bank balances 8,089,781,304.56 8,089,781,304.56
Notes receivable 1,357,311,929.63 789,536,654.23 (567,775,275.40)
Accounts receivable 9,336,861,647.92 9,336,861,647.92
Receivable financing - 567,775,275.40 567,775,275.40
Advances to suppliers 583,484,515.95 419,443,944.83 (164,040,571.12)
Other receivables 643,493,359.32 643,493,359.32
Incl:Interest receivable 8,223,327.64 8,223,327.64
Inventories 4,389,335,942.19 4,389,335,942.19
Other current assets 95,347,629.18 95,347,629.18
Total current assets 24,495,616,328.75 24,331,575,757.63 (164,040,571.12)
Non-current assets
Long-term equity investments 1,880,393,786.10 1,880,393,786.10
Other equity instruments 13,685,760.00 13,685,760.00
investment
Other non-current financial assets 140,000,000.00 140,000,000.00
Investment properties 144,894,495.97 144,894,495.97
Fixed assets 607,933,827.67 594,067,973.91 (13,865,853.76)
Construction in progress 36,412,614.61 36,412,614.61
Right-of-use assets - 1,782,725,159.78 1,782,725,159.78
Intangible assets 319,207,126.15 318,693,082.72 (514,043.43)
Goodwill 833,547,800.60 833,547,800.60
Long-term prepaid expenses 311,328,706.46 311,328,706.46
Deferred tax assets 74,914,209.95 74,914,209.95
Other non-current assets 72,365,863.71 58,168,919.11 (14,196,944.60)
Total non-current assets 4,434,684,191.22 6,188,832,509.21 1,754,148,317.99
Total assets 28,930,300,519.97 30,520,408,266.84 1,590,107,746.87
114
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(33) Changes in accounting policies and accounting estimates (Continued)
LIABILITIES 31 December 2018 1 January 2019 Adjustment
Current liabilities
Short-term borrowings 2,597,652,702.43 2,597,652,702.43
Notes payable 3,416,755,681.80 3,416,755,681.80
Accounts payable 6,468,535,961.17 6,468,535,961.17
Advances from customers - -
Employee benefits payable 231,866,407.40 231,866,407.40
Tax payable 241,980,412.72 241,980,412.72
Other payables 1,539,436,971.93 1,539,436,971.93
Incl: Interest payable 21,906,660.63 21,906,660.63
Dividends payable 6,389,320.96 6,389,320.96
Contract liabilities 255,590,612.37 255,590,612.37
Non-current liabilities due within one year 5,861,324.37 495,132,751.96 489,271,427.59
Other current liabilities 292,465.75 292,465.75
Total current liabilities 14,757,972,539.94 15,247,243,967.53 489,271,427.59
Non-current liabilities
Long-term borrowings 31,600,000.00 31,600,000.00
Lease liabilities - 1,104,600,297.80 1,104,600,297.80
Long-term payables 4,563,978.52 800,000.00 (3,763,978.52)
Long-term employee benefits payable 2,050,000.00 2,050,000.00
Deferred income 91,491,170.40 91,491,170.40
Deferred tax liabilities 67,605,161.88 67,605,161.88
Other non-current liabilities 69,241,176.18 69,241,176.18
Total non-current liabilities 266,551,486.98 1,367,387,806.26 1,100,836,319.28
Total liabilities 15,024,524,026.92 16,614,631,773.79 1,590,107,746.87
115
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(33) Changes in accounting policies and accounting estimates (Continued)
SHAREHOLDERS’ EQUITY 31 December 2018 1 January 2019 Adjustment
Shareholders’ equity
Share capital 428,126,983.00 428,126,983.00
Capital surplus 4,320,984,981.51 4,320,984,981.51
Surplus reserve 214,063,491.50 214,063,491.50
Retained earnings 6,655,257,147.27 6,655,257,147.27
Shareholders’ equity attributable
11,618,432,603.28 11,618,432,603.28
to shareholders of the parent
Non-controlling interests 2,287,343,889.77 2,287,343,889.77
Total shareholders’ equity 13,905,776,493.05 13,905,776,493.05
Total liabilities and shareholders’ 28,930,300,519.97 30,520,408,266.84 1,590,107,746.87
equity
116
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(33) Changes in accounting policies and accounting estimates (Continued)
Company’s balance sheet：
ASSETS 31 December 2018 1 January 2019 Adjustment
Current assets
Cash and bank balances 1,817,654,598.01 1,817,654,598.01
Notes receivable 63,870,980.39 34,154,774.75 (29,716,205.64)
Accounts receivable 631,236,593.94 631,236,593.94
Receivable financing 29,716,205.64 29,716,205.64
Advances to suppliers 4,760,182.00 4,757,318.66 (2,863.34)
Other receivables 1,541,980,883.50 1,541,980,883.50
Incl:Interest receivable 7,550,877.07 7,550,877.07
Dividends receivable - -
Inventories 158,166,185.65 158,166,185.65
Other current assets 39,482.38 39,482.38
Total current assets 4,217,708,905.87 4,217,706,042.53 (2,863.34)
Non-current assets
Long-term equity investments 7,432,906,692.24 7,432,906,692.24
Other non-current financial
140,000,000.00 140,000,000.00
assets
Investment properties 1,955,854.46 1,955,854.46
Fixed assets 21,362,422.03 21,362,422.03
Right-of-use assets - 6,827,171.38 6,827,171.38
Intangible assets 2,452,222.51 2,452,222.51
Long-term deferred expenses 7,481,809.53 7,481,809.53
Other non-current assets 7,000,000.00 7,000,000.00
Total non-current assets 7,613,159,000.77 7,619,986,172.15 6,827,171.38
Total assets 11,830,867,906.64 11,837,692,214.68 6,824,308.04
117
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(33) Changes in accounting policies and accounting estimates (Continued)
LIABILITIES 31 December 2018 1 January 2019 Adjustment
Current liabilities
Short-term borrowings 539,000,000.00 539,000,000.00
Notes payable 252,317,800.78 252,317,800.78
Accounts payable 442,049,241.22 442,049,241.22
Contract liabilities 4,182,083.40 4,182,083.40
Employee benefits
36,233,563.12 36,233,563.12
payable
Tax payables 13,426,601.90 13,426,601.90
Other payables 1,481,817,856.56 1,481,817,856.56
Incl:Interest payable 1,354,592.35 1,354,592.35
Non-current liabilities
- 786,068.44 786,068.44
due within one year
Other current liabilities 226,427.99 226,427.99
Total current liabilities 2,769,253,574.97 2,770,039,643.41 786,068.44
Non-current liabilities
Long-term borrowings 31,600,000.00 31,600,000.00
Lease liabilities - 6,038,239.60 6,038,239.60
Long-term payables 800,000.00 800,000.00
Long-term employee
118,000.00 118,000.00
benefits payable
Deferred income 1,687,899.50 1,687,899.50
Deferred tax liabilities 2,298,426.39 2,298,426.39
Total non-current liabilities 36,504,325.89 42,542,565.49 6,038,239.60
Total liabilities 2,805,757,900.86 2,812,582,208.90 6,824,308.04
118
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(33) Changes in accounting policies and accounting estimates (Continued)
SHAREHOLDERS’ EQUITY 31 December 2018 1 January 2019 Adjustment
Shareholders’ equity
Share capital 428,126,983.00 428,126,983.00
Capital surplus 4,426,362,777.26 4,426,362,777.26
Surplus reserves 214,063,491.50 214,063,491.50
Retained earnings 3,956,556,754.02 3,956,556,754.02
Total shareholders’ equity 9,025,110,005.78 9,025,110,005.78
Total liabilities and shareholders’ 11,830,867,906.64 11,837,692,214.68 6,824,308.04
equity
119
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
IV Taxation
1. Main categories and rates of taxes:
Categories Tax base Tax rate
Corporate income tax
(“CIT”) Taxable income 15%,20% or 25%
Taxable value added amount (Tax
payable is calculated by using the
taxable sales amount multiplied by
the effective tax rate less
Value added tax deductible VAT input of the current 0%,3%,5%,6%,9%,
(“VAT”) period) 10%,13%,16%
City maintenance and
construction tax Amount of VAT 5% or 7%
Educational surcharge Amount of VAT 3%
Local educational
surcharge Amount of VAT 2%
2. Tax preferences
(a) In 2011, the Urumqi Head Office, Changji Branch and Karamay Branch of Sinopharm Holding
Xinjiang New & Special Medicines Chain Store Co., Ltd. (“Xinjiang New & Special Medicines”),
subsidiaries of the group, shall pay tax at a rate of 15% by jurisdictions. According to the Circular of
the Ministry of Finance, the State Administration of Taxation, the General Administration of Customs
on Issues Concerning Tax Policies for the Further Development of the Western Regions (Cai shui
[2011] No.58), enterprises from encouraged industries in the Western Regions, could enjoy a
reduced CIT rate of 15% from 1 January 2011 to 31 December 2020.
In 2014, the Group’s subsidiary Sinopharm Holding Guangxi Logistics Co., Ltd. (“Sinopharm
Guangxi Logistics”) was approved by the Guangxi Local Tax Bureau to enjoy a tax discount
applicable to corporations in the region of Western Development to pay income tax at a tax rate of
15%.
Eight subsidiaries in Guangxi Province of the Group, including Sinopharm Guangxi, Sinopharm
Holding Liuzhou Co., Ltd. (“Sinopharm Liuzhou”) , Sinopharm Holding Beihai Co., Ltd (“Sinopharm
Beihai”), Sinopharm Holding Guilin Co., Ltd. (“Sinopharm Guilin”), Sinopharm Holding Guigang Co.,
Ltd. (“Sinopharm Guigang”), Sinopharm Holding Yulin Co., Ltd. (“Sinopharm Yulin”), Sinopharm
Holding Baise Co., Ltd (“Sinopharm Baise”)and Sinopharm Holding Wuzhou Co., Ltd. (“Sinopharm
Wuzhou”) were all approved by the Guangxi Local Tax Bureau to enjoy a tax concession of Western
Development at a preferential CIT rate of 15%. The applicable period for Sinopharm Guangxi,
Sinopharm Liuzhou and Sinopharm Beihai is 1 January 2014 to 31 December 2020, and that for the
other 5 subsidiaries is 1 January 2015 to 31 December 2020.
120
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
IV Taxation (Continued)
2. Tax preferences (Continued)
The Group's subsidiary Sinopharm Holding National Pharmacy Inner Mongolia Co., Ltd. (hereinafter
referred to as "National University of Inner Mongolia"), Sinopharm Holding National Pharmacy
Hulunbeier Co., Ltd., Sinopharm Holding National Pharmacy Wulanchabu Co., Ltd., National
University Pharmacy Manzhouli Co., Ltd., Sinopharm Holding National Pharmacy Bayannaoer Co.,
Ltd. and Inner Mongolia NUS Pharmaceutical Co., Ltd., in accordance with the provisions of Caishui
[2011] No. 58 Document, meet the conditions for the enjoyment of corporate income tax benefits in
the Western Development, and obtain the Notice of Approval for Reduction and Exemption of Taxes.
In 2019, the enterprise income tax was paid at a preferential tax rate of 15%. According to Caishui
[2011] No. 58 Document, Sinopharm Holding National Pharmacy Guangxi Chain Co., Ltd. and
Ningxia Guoda Pharmacy Chain Co., Ltd. reduced the corporate income tax of 2019 at a reduced
rate of 15%.
In the half year of 2019, according to the "Notice on Implementing the Inclusive Tax Deduction Policy
for Small and Micro Enterprises" (Cai Shui [2019] No. 13): the Group's subsidiary Sinopharm Medical
Supply Chain Service (Guangxi) Co., Ltd., Shanghai Guoda Dongsheng Pharmacy Co., Ltd.,
Sinopharm Holding National Pharmacy Guangzhou Chain Co., Ltd., Taishan City Guokong Guoda
Group Kangda Pharmacy Chain Co., Ltd., Guangxi Guoda Pharmaceutical Consulting Chain Co.,
Ltd., Changzhi City Guoda Wanmin Pharmacy Co., Ltd., Shanghai Fumei Xuhui Pharmacy Co., Ltd.,
Sanhe Liyang Jinxiang Pharmacy Co., Ltd., Sinopharm Holding National Pharmacy Hulunbeier Co.,
Ltd. The company, NUS Pharmacy Manzhouli Co., Ltd. pays taxable income less than RMB 3 million,
and meets the requirements of small and meager profit enterprises, so it pays corporate income tax
at a rate of 20%.
121
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements
1. Cash and bank balances
30 June 2019 1 January 2019
Cash on hand 3,415,085.25 5,587,191.18
Cash at banks 7,765,559,793.66 7,626,529,829.59
Other cash balances 317,353,629.58 457,664,283.79
8,086,328,508.49 8,089,781,304.56
At 30 June 2019, other cash balances were consisted of letter credit deposits amounting to RMB
305,806.00 (31 December 2018: RMB 4,191,246.00), bank acceptance notes deposits amounting to
RMB317,047,823.58 (31 December 2018: RMB453,473,037.79).
2. Notes receivable
30 June 2019 1 January 2019
Trade acceptance notes 790,664,828.26 789,536,654.23
Bank acceptance notes - -
790,664,828.26 789,536,654.23
122
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
2. Notes receivable (Continued)
Notes receivable endorsed or discounted by the Group to other parties which were not yet due at
30 June 2019 and 31 December 2018 are as follows:
30 June 2019
Derecognized Not derecognized
Trade acceptance notes 216,316,836.99
Bank acceptance notes -
216,316,836.99
As at 30 June 2019 and 31 December 2018, notes that were converted into accounts receivable
due to the drawer’s inability to settle the note on maturity date are as follows:
30 June 2019
Bank acceptance notes -
Trade acceptance notes 20,010,459.85
20,010,459.85
3. Accounts receivable
The accounts receivable by category are analyzed below:
30 June 2019 1 January 2019
Gross carrying amount Provision for bad debt Gross carrying amount Provision for bad debt
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Items for
which
provision for
bad debt is
recognised
separately 613,529,239.36 5.17% 19,044,116.83 3.10% 595,919,487.29 6.36% 16,766,679.23 2.81%
Items for
which
provision for
bad debt is
recognized by
group (credit
risk
characteristics
) 11,262,211,636.12 94.83% 30,256,027.06 0.27% 8,780,463,595.37 93.64% 22,754,755.51 0.26%
11,875,740,875.48 100.00% 49,300,143.89 0.42% 9,376,383,082.66 100.00% 39,521,434.74 0.42%
123
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
3. Accounts receivable (Continued)
At 30 June 2019, accounts receivable that are individually significant and individually assessed for provisions
are as follows:
Carrying Bad debt
Accounts receivable(by company) amount provision Rate Assessment for impairment
Receivable of medical insurance Part of the medical insurance receivable
takes longer to collect, and has risk of
352,956,757.11 588,948.80 0.17% default
Receivable of E-Business other Receivable of E-Business with low risk of
suppliers 110,676,893.44 6,739,296.66 6.09% recoverability
Receivable of card settlement, Receivable of Franchises with no risk of
e-commerce and third-party 55,508,719.88 - 0.00% recoverability
Receivable of related party Receivable due from a related party with
47,567,694.11 - 0.00% low risk of recoverability
Daton Xin Jian Kang Hospital Receivable due from a fixed cooperative
hospital with no risk of recoverability
21,439,257.44 - 0.00%
Liuzhou Railway Central Hospital Both parties to the transaction have
differences in the amount of purchase
13,820,739.09 156,693.08 1.13% and sales and has risk of default
Hubei xianning Pharmaceutical A lawsuit has been filed against the
Co., Ltd., customer and has high risk of default
11,559,178.29 11,559,178.29 100.00%
Total 613,529,239.36 19,044,116.83 - -
Provision for bad debts of accounts receivable according to the general model of expected credit
loss:
30 June 2019
Expected credit loss in entire
Estimated default amount lifetime Expected credit loss rate
Within 1 year 11,186,234,127.33 25,495,025.53 0.23%
1 to 2 years 71,069,101.89 3,646,494.40 5.13%
2 to 3 years 1,616,063.02 194,281.68 12.02%
Over 3 years 3,292,343.88 920,225.45 27.95%
11,262,211,636.12 30,256,027.06
124
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
3. Accounts receivable (Continued)
The aging analysis of accounts receivables was as follows:
30 June 2019
Within 1 year 11,753,416,277.07
1 to 2 years 80,575,034.81
2 to 3 years 3,374,443.53
3 to 4 years 24,801,268.92
4 to 5 years 12,775,655.02
Over 5 years 798,196.13
Total 11,875,740,875.48
Bad debt provision for the current period as follows:
Written
Opening Reversal of write-off Increases in Reversal in Closing
off in the
balance in previous years the year the year balance
year
Bad debts 39,521,434.74 11,040.00 16,376,925.13 (6,609,255.98) - 49,300,143.89
total 39,521,434.74 11,040.00 16,376,925.13 (6,609,255.98) - 49,300,143.89
On 30 June 2019, the top five accounts receivable by customer are summarised
below:
% of the
total
Bad debt accounts
provision receivabl
Amount amount e
The top five accounts
receivable total 861,862,590.71 363,240.29 7.25%
On 30 June 2019, the Group's accounts receivable that were terminated due to the cooperation on
accounts receivable factoring with financial institutions without recourse were RMB
2,707,165,636.40.
125
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
4. Accounts receivable financing
30 June 2019 1 January 2019
Bank acceptance notes 325,439,580.18 567,775,275.40
325,439,580.18 567,775,275.40
5. Advances to suppliers
(a) The aging of advances to suppliers is analyzed below:
30 June 2019 1 January 2019
Amount % of total balance Amount % of total balance
Within 1 year 355,664,414.27 99.60% 416,103,769.08 99.20%
1 to 2 years 1,215,326.29 0.34% 873,351.85 0.21%
2 to 3 years 109,088.48 0.03% 2,466,823.90 0.59%
Above 3 years 89,990.60 0.03% - -
357,078,819.64 - 419,443,944.83 -
The prepayment aged for more than a year is mainly the advance equipment amounting to RMB1,414,405.37
(31 December 2018: RMB3,340,175.75) as the hospital equipment procurement is a large project which takes
a long time to complete.
(b) On 30 June 2019, the top five advances to suppliers by customer are summarized below:
Amount Proportion of total balance
Total amount of top five advances to suppliers 128,740,740.37 36.05%
126
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
6. Other receivables
30 June 2019 1 January 2019
Interest receivable 14,791,483.10 8,223,327.64
Other receivables 639,294,904.75 635,270,031.68
654,086,387.85 643,493,359.32
（1）Interest receivable
30 June 2019 1 January 2019
Fixed deposits 13,306,641.88 6,376,708.68
Entrusted Loans 1,484,841.22 1,846,618.96
14,791,483.10 8,223,327.64
（2）Other receivables
Category of other receivables by nature is as follows:
Nature 30 June 2019 1 January 2019
Deposits 257,903,552.46 278,455,623.30
Receivable due from related parties 10,414,842.49 8,119,399.79
Entrusted borrowings 44,000,000.00 44,000,000.00
Petty cash advance to employees 17,538,148.13 12,439,613.27
Receivable of equity transactions 8,980,000.00 8,980,000.00
Others 321,989,366.05 303,197,349.04
Total 660,825,909.13 655,191,985.40
127
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
6. Other receivables (Continued)
The changes in bad debt provision for other receivables based on the entire lifetime expected credit
losses are as follows:
Stage 1 Stage 2 Stage 3
Expected Entire lifetime Total
credit Entire lifetime expected credit
losses expected credit losses(Credit
Bad debt
over the losses(No credit impairment occurred)
next 12 impairment
months occurred)
Balance at 1 January 2019 - 19,921,953.72 - 19,921,953.72
Balance at 1 January 2019 during the period
Provisions during the period - 3,108,281.87 - 3,108,281.87
Reversal during the period - (1,441,849.89) - (1,441,849.89)
Write-back during the period - - - -
Write-off during the period - (57,381.32) - (57,381.32)
Other Changes - - - -
Balance at 30 June 2019 - 21,531,004.38 - 21,531,004.38
128
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
6. Other receivables (Continued)
The aging analysis of other receivables was as follows:
30 June 2019
Within 1 year 526,279,992.21
1 to 2 years 98,441,809.40
2 to 3 years 15,955,086.40
Over 3 years 20,149,021.12
Total 660,825,909.13
Bad debt provision of other receivables in 2019 was RMB3,108,281.87, with the recovered or
reversed amount of RMB1,441,849.89, and the written off amount of RMB 57,381.32.
As at 30 June 2019，the top 5 parties that owed the largest amounts of other receivable balances
are analyzed below:
Nature Amount Age % of total amount Provision of bad debt
Guangdong Pharmaceutical electronic Pharmaceutical trading platform Within 1
trading platform repayment not yet cleared 111,024,446.08 year 16.80%
Sinopharm Group Zhijun (Suzhou) Within 2
Pharmaceutical Co., Ltd. Entrusted borrowings 44,000,000.00 year 6.66%
TCM-Integrated Cancer Center of Deposit of logistics extension Within 2
Southern Medical University services project 30,082,900.00 year 4.55%
Shenyang Medical Insurance Within 1
Management Service Center Amount due from government 27,635,423.96 year 4.18%
Shenzhen Social Insurance Fund Within 1
Administration Amount due from government 18,714,610.23 year 2.83%
231,457,380.27 35.03% -
129
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
7. Inventories
(a) Inventories by category are analyzed below:
30 June 2019 1 January 2019
Book value Provision Net book value Book value Provision Net book value
Raw materials 362,562.93 - 362,562.93 1,410,012.28 - 1,410,012.28
Work in progress 5,344.32 - 5,344.32 1,011,007.23 - 1,011,007.23
Finished goods 4,883,623,033.69 7,772,292.62 4,875,850,741.07 4,392,144,746.88 8,313,195.29 4,383,831,551.59
Low cost consumables 6,454,967.95 - 6,454,967.95 3,083,371.09 - 3,083,371.09
4,890,445,908.89 7,772,292.62 4,882,673,616.27 4,397,649,137.48 8,313,195.29 4,389,335,942.19
(b) Provision for declines in value of inventories is analysed below:
Increases Decreases
1 January 2019 Reversal or 30 June 2019
charge Other Other
Written off
Finished goods 8,313,195.29 1,567,262.18 - 2,108,164.85 - 7,772,292.62
8,313,195.29 1,567,262.18 - 2,108,164.85 - 7,772,292.62
8. Other current assets
30 June 2019 1 January 2019
Input VAT to be credited 95,048,826.51 94,312,573.34
Corporate income tax to be deducted 2,041,094.25 723,000.46
Others 227,366.84 312,055.38
97,317,287.60 95,347,629.18
130
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
9. Long-term equity investments
Associates in 2019
Changes in the year
Provision for
Investee 1 January 2019 Cash dividend 30 June 2019
Additional Profit of loss under Other changes in Impairment impairment
declared by
Investment equity method equity provision
investee
Associates
Shenzhen Main Luck Pharmaceutical Inc. (“Main 265,316,653.68 - 33,592,995.70 - - - 298,909,649.38 -
Luck Pharmaceutical”).
Zhijun Medicine 355,353,196.15 - 58,536,101.74 - - - 413,889,297.89 -
Zhijun Trade 8,730,994.87 - 1,467,031.77 - - - 10,198,026.64 -
Zhijun Suzhou 23,379,018.92 - (11,390,538.03) - - - 11,988,480.89 -
Pingshan Medicine 86,292,927.33 - 22,425,900.45 - - - 108,718,827.78 -
Shyndec Pharmaceutical 1,098,566,852.51 - 65,258,503.45 42,424,747.00 (16,896,427.80) - 1,189,353,675.16 -
Shanghai Beiyi Guoda Pharmaceutical Co. Ltd. 11,029,918.10 - 247,588.49 - (1,052,999.99) - 10,224,506.60 -
Shanghai Liyi Pharmacy Co., Ltd. 955,428.23 - - - - - 955,428.23 -
Shanghai Renbei Pharmacy Co., Ltd - 1,800,000.00 - 1,800,000.00
Guangdong Jianhui Construction Investment
Management Co., Ltd. - 2,000,000.00 - 2,000,000.00
Sinopharm Jienuo Medical Treatment Service
Guangdong Co., Ltd. (“Guangdong Jie nuo”) 6,802,156.19 - (995,293.58) - - - 5,806,862.61 -
Shanghai Dingqun Management & Consulting
Co. , Ltd 23,966,640.12 - - - - - 23,966,640.12 -
Dongyuan Accord Pharmaceutical Chain Co.,
Ltd. 396,638.32 - - - - - 396,638.32 396,638.32
1,880,790,424.42 3,800,000.00 169,142,289.99 42,424,747.00 (17,949,427.79) - 2,078,208,033.62 396,638.32
131
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
10. Other equity instrument investment
30 June 2019 1 January 2019
Sinopharm Health Online Co., Ltd. 12,000,000.00 12,000,000.00
Sinopharm Guoda Hubei Co., Ltd. 1,000,000.00 1,000,000.00
Hunan Zhongbai Pharmaceutical
Investment Co., Ltd. 315,000.00 315,000.00
Shanghai Guoda Shuguang Pharmacy
Co., Ltd 270,760.00 270,760.00
Shanghai Guoren Pharmacy Co., Ltd. 100,000.00 100,000.00
13,685,760.00 13,685,760.00
11. Other non-current financial assets
30 June 2019 1 January 2019
Financial asset measured at fair value
through current profit or loss 140,000,000.00 140,000,000.00
140,000,000.00 140,000,000.00
On June 30, 2019, the balance of other non-current financial assets was the fair value of the share of the
Sinopharm CICC Medical Industry Fund (referred to as “the Industrial Fund”) subscribed by the Company. The
Group's 21st meeting of the 7th Board of Directors held on January 6, 2017 reviewed and approved the proposal of
the Company to subscribe for the industry fund and related party transactions. As a limited partner of the industry
fund, the company plans to invest RMB 200 million to subscribe for the share of the industrial fund, which will be
paid in three phases. The company paid the initial investment of RMB 60 million in 2017. As of December 31, 2017,
the fund did not complete the relevant licenses and approvals and did not start operations. Therefore, the
company's initial investment amounted to RMB 60 million. Included in other non-current assets. In 2018, the
company paid the second phase of the capital contribution of RMB 80 million. As of June 30, 2019, the company
had paid a total of RMB 140 million. The industry fund has obtained relevant approvals in 2018 and has started
operations. Since the cash flow obtained by the Company from the investment of the fund includes both the
contractual cash flow generated by the underlying assets during the investment period and the cash flow of the
disposal of the underlying assets, the contractual cash flow that does not satisfy the financial assets generated on
a specific date is only The payment of interest on the basis of the outstanding principal amount, therefore, the
Company classifies the investment of the industrial fund into financial assets measured at fair value through profit
or loss and presented as other non-current financial assets. .
132
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
12. Investment properties
Subsequent measurement under the cost model:
Construction in
2019 Buildings and progress
constructions Land use right Total
Original cost
Opening balance 242,555,189.91 22,719,102.03 265,274,291.94
Purchase - - -
Transfer to fixed assets 1,634,951.97 - 1,634,951.97
Closing balance 240,920,237.94 22,719,102.03 263,639,339.97
Accumulated
depreciation and
amortization
Opening balance 111,131,166.21 7,948,629.76 119,079,795.97
Provision 3,376,058.13 51,879.46 3,427,937.59
Transfer to fixed assets 487,533.59 - 487,533.59
Closing balance 114,019,690.75 8,000,509.22 122,020,199.97
Provision for
impairment
Opening balance 1,300,000.00 - 1,300,000.00
Closing balance 1,300,000.00 - 1,300,000.00
Carrying
amount
At end of the period 125,600,547.19 14,718,592.81 140,319,140.00
At beginning of the period 130,124,023.70 14,770,472.27 144,894,495.97
133
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
13. Fixed assets
2019
Fixed asset
Buildings Machinery Vehicles Other equipment Total
improvements
Original cost
Opening balance 489,661,268.82 185,444,104.09 89,613,300.13 294,575,902.89 54,661,564.43 1,113,956,140.36
Purchase 714,456.83 16,956,031.53 5,069,073.21 15,843,713.46 17,383,853.37 55,967,128.40
Transfer from construction in progress - 2,113,175.66 - 816,880.96 - 2,930,056.62
Business combination not involving enterprises under
- - - - - -
common control
Transfer from Investment properties 1,634,951.97 - - - - 1,634,951.97
Disposal or retirement - 1,487,621.64 5,499,822.63 7,281,743.77 10,306,628.70 24,575,816.74
Closing balance 492,010,677.62 203,025,689.64 89,182,550.71 303,954,753.54 61,738,789.10 1,149,912,460.61
Accumulated depreciation
Opening balance 164,477,441.12 85,085,741.31 59,523,264.14 172,436,749.05 38,364,970.83 519,888,166.45
Provision 7,866,027.60 14,213,255.59 3,843,870.06 12,354,113.52 10,639,915.07 48,917,181.84
Transfer from Investment properties 487,533.59 - - - - 487,533.59
Disposal or retirement - 1,107,179.83 3,813,515.96 4,549,800.50 3,462,405.97 12,932,902.26
Closing balance 172,831,002.31 98,191,817.07 59,553,618.24 180,241,062.07 45,542,479.93 556,359,979.62
134
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
13. Fixed assets (Continued)
2019(Continued)
Fixed asset
Buildings Machinery Vehicles Other equipment Total
improvements
Provision for impairment
Opening balance - - - - - -
Disposal of subsidiaries - - - - - -
Closing balance - - - - - -
Carrying amount
At end of period 319,179,675.31 104,833,872.57 29,628,932.47 123,713,691.47 16,196,309.17 593,552,480.99
At beginning of the period 325,183,827.70 100,358,362.78 30,090,035.99 122,139,153.84 16,296,593.60 594,067,973.91
135
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
13. Fixed assets (Continued)
Fixed assets without official property right certificates
Items Carrying amount Reason for outstanding property right certificates
Buildings 27,259,503.70 In the process
14. Construction in progress
30 June 2019 1 January 2019
Construction in progress 31,980,582.21 36,412,614.61
30 June 2019 1 January 2019
Carrying balance Impairment Carrying amount Carrying balance Impairment Carrying amount
Warehouse improvement project 862,479.40 - 862,479.40 806,272.40 - 806,272.40
New office building project 627,903.09 - 627,903.09 188,251.26 - 188,251.26
Supply chain extension project 15,025,013.15 - 15,025,013.15 12,617,953.89 - 12,617,953.89
Software project 5,544,210.47 - 5,544,210.47 12,930,498.53 - 12,930,498.53
Other projects 9,920,976.10 - 9,920,976.10 9,869,638.53 - 9,869,638.53
31,980,582.21 - 31,980,582.21 36,412,614.61 - 36,412,614.61
136
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
14. Construction in progress (Continued)
(a) Changes of significant construction in progress
Changes of significant construction in progress in 2019 are presented as follows:
Proportion of project
Source of
Decrease At end of year investment to progres
funds
At beginning of budget (%) s
Project name Budget Increase
the year Transferred
Transferred to to intangible Others
fixed assets assets
Warehouse
improvement
project 2,981,387.76 806,272.40 1,309,197.95 278,461.63 - 974,529.32 862,479.40 60.65% 60.65% Own funds
New office building
Project 627,903.08 188,251.26 439,651.83 - - - 627,903.09 100.00% 100.00% Own funds
Supply chain
extension project 33,412,417.24 12,617,953.89 5,137,275.29 2,606,162.49 - 124,053.54 15,025,013.15 53.80% 53.80% Own funds
Software project 12,949,580.19 12,930,498.53 5,563,292.13 45,432.50 - 12,904,147.69 5,544,210.47 43.20% 43.20% Own funds
Other construction
projects 206,249,966.06 9,869,638.53 83,546.40 - 32,208.83 9,920,976.10 4.84% 4.84% Own funds
256,221,254.33 36,412,614.61 12,532,963.60 2,930,056.62 14,034,939.38 31,980,582.21 - -
18
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
15．Right-of-use assets
Items Stores Office building Warehouse Others Total
Original cost
Opening balance 1,471,295,979.51 48,588,435.58 239,171,388.66 23,669,356.03 1,782,725,159.78
Increase 364,813,035.13 25,970,953.21 33,172,962.78 423,956,951.12
Closing balance 1,836,109,014.64 74,559,388.79 272,344,351.44 23,669,356.03 2,206,682,110.90
Accumulated depreciation
Opening balance - - - - -
Depreciation 261,325,528.91 8,926,444.74 22,855,535.44 2,593,404.18 295,700,913.27
Closing balance 261,325,528.91 8,926,444.74 22,855,535.44 2,593,404.18 295,700,913.27
Carrying amount
At end of the period 1,574,783,485.73 65,632,944.05 249,488,816.00 21,075,951.85 1,910,981,197.63
At beginning of the period 1,471,295,979.51 48,588,435.58 239,171,388.66 23,669,356.03 1,782,725,159.78
138
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
16. Intangible assets
2019 Land use right Software Trademarks Favorable lease Sales network Franchise Total
Original cost
Opening balance 62,083,143.97 142,108,155.42 65,977,850.00 93,242,000.00 112,117,142.86 710,000.00 476,238,292.25
Purchase - 3,733,823.60 - - - - 3,733,823.60
Transfer from construction in
progress - 12,904,147.69 - - - - 12,904,147.69
Disposal or retirement - - - - - - -
Closing balance 62,083,143.97 158,746,126.71 65,977,850.00 93,242,000.00 112,117,142.86 710,000.00 492,876,263.54
Accumulated amortization
Opening balance 27,889,638.96 68,273,563.72 196,850.16 19,782,823.36 40,692,333.33 710,000.00 157,545,209.53
Provision 474,270.36 9,058,311.54 - 2,472,852.94 2,802,928.58 - 14,808,363.42
Closing balance 28,363,909.32 77,331,875.26 196,850.16 22,255,676.30 43,495,261.91 710,000.00 172,353,572.95
Provision for impairment - - - - - - -
Opening balance - - - - - - -
Provision - - - - - - -
Closing balance - - - - - - -
Carrying amount
At end of the period 33,719,234.65 81,414,251.45 65,780,999.84 70,986,323.70 68,621,880.95 - 320,522,690.59
At beginning of the period 34,193,505.01 73,834,591.70 65,780,999.84 73,459,176.64 71,424,809.53 - 318,693,082.72
139
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
17. Goodwill
(1) Goodwill cost
30 June 2019 Opening balance Increase Decrease Closing balance
Sinopharm Holding(Jiangmen)
Medical Co., Ltd. (“Sinopharm
Jiangmen”) 27,392,317.73 - - 27,392,317.73
Sinopharm Holding Shenzhen
Yanfeng Co., Ltd. (“Sinopharm
Yanfeng”) 16,868,644.87 - - 16,868,644.87
Sinopharm Holding Zhaoqing Co., Ltd.
(“Sinopharm Zhaoqing”) 2,594,341.53 - - 2,594,341.53
Sinopharm Holding Shaoguan Co.,
Ltd. (“Sinopharm Shaoguan”) 1,686,496.80 - - 1,686,496.80
Sinopharm Holding Meizhou Co., Ltd.
(“Sinopharm Meizhou”) 1,610,819.66 - - 1,610,819.66
Sinopharm Holding Huizhou Co., Ltd.
(“Sinopharm Huizhou”) 923,184.67 - - 923,184.67
Sinopharm Holding Zhanjiang Co.,
Ltd. (“Sinopharm Zhanjiang”) 282,135.55 - - 282,135.55
Sinopharm Holding Dongguan Co.,
Ltd. (“Sinopharm Dongguan”) 1,499.02 - - 1,499.02
South Pharma & Trade 2,755,680.62 - - 2,755,680.62
Foshan Nanhai 88,877,850.51 - - 88,877,850.51
Sinopharm Holding Zhuhai
Co.,Ltd.(Sinopharm Zhuhai) 6,772,561.47 - - 6,772,561.47
Sinopharm Holding Maoming Co., Ltd.
(“Sinopharm Maoming”) 66,417.07 - - 66,417.07
Sinopharm Holding Guoda ForMe
Medicines (Shanghai) Co., Ltd.
( “ForMe Medicines”) 3,033,547.53 - - 3,033,547.53
Sinopharm Holding Guoda Henan
Pharmacy Chain Store Co., Ltd 22,666,179.77 - - 22,666,179.77
Sinopharm Holding Guoda Inner
Mongolia Co., Ltd. 70,485,777.00 - - 70,485,777.00
Sinopharm Hebei Lerentang
Pharmaceutical Chain Co., Ltd. 29,482,149.57 - - 29,482,149.57
Sinopharm Guoda Pharmacy
Jiangmen Chain Co., Ltd.. 77,350,000.00 - - 77,350,000.00
Sinopharm Holding Guoda Shanxi
Yiyuan Chain Co., Ltd. 9,080,100.00 - - 9,080,100.00
Taiyuan Tongxinli Guoda Pharmacy
Co., Ltd. 2,818,647.85 - - 2,818,647.85
Sinopharm Holding Guoda Shanghai
Pharmacy Chain Store Co., Ltd. 5,028,638.00 - - 5,028,638.00
Sinopharm Holding Guoda Yangzhou
Dadesheng Pharmacy Chain Store
Co., Ltd.. 7,979,000.00 - - 7,979,000.00
Zhejiang Guoda Pharmacy Co., Ltd. 3,045,183.85 - - 3,045,183.85
Shenzhen Guanganli Pharmacy Chain
Store Co., Ltd. store acquisition. 13,420,000.00 - - 13,420,000.00
Taishan Sinopharm Holding Guoda
Qunkang Pharmacy Chain Co., Ltd. 26,826,120.55 - - 26,826,120.55
Fujian Guoda Pharmacy Chain Store
Co., Ltd. 1,567,250.76 - - 1,567,250.76
140
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
17. Goodwill (Continued)
(1) Goodwill cost (Continued)
30 June 2019 (Continued) Opening balance Increasel Decrease Closing balance
Sinopharm Holding Guoda Shenyang
Pharmacy Chain Store Co., Ltd. 41,047,958.08 - - 41,047,958.08
Sinopharm Holding Guoda Nanjing
Pharmacy Chain Store Co., Ltd. 11,598,341.12 - - 11,598,341.12
Sinopharm Holding Guoda Shandong
Pharmacy Chain Store Co., Ltd. 29,110,409.46 - - 29,110,409.46
Quanzhou Guoda Pharmacy Chain
Store Co., Ltd. 41,298,622.59 - - 41,298,622.59
Sinopharm Holding Hunan Guoda
Minshengtang Pharmacy Chain
Co., Ltd. 41,165,574.64 - - 41,165,574.64
Shanxi Guoda Wanmin Pharmacy
Chain Store Co., Ltd. 65,025,000.00 - - 65,025,000.00
Xiaoyi Guoda Wanmin Baicaotang
Pharmacy Chain Store Co., Ltd. 15,866,680.00 - - 15,866,680.00
Liyang Guoda People Pharmacy
Chain Store Co., Ltd. 107,275,095.74 - - 107,275,095.74
Sinopharm Holding Guoda ForMe
Pharmacy Chain Store Co., Ltd. 19,405,450.23 - - 19,405,450.23
Beijing Golden Elephant Pharmacy
Medicine Chain Company Limited 64,140,124.36 - - 64,140,124.36
Sinopharm Holding Guoda
Bayannaoer Co., Ltd. - 13,494,000.00 - 13,494,000.00
858,547,800.60 13,494,000.00 - 872,041,800.60
141
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
17. Goodwill (Continued)
(2) Provision of impairment loss
Changes in provision for impairment of goodwill are presented as follows:
2019 Opening balance Increase Decrease Closing balance
Quanzhou Guoda Pharmacy
Chain Store Co., Ltd. 25,000,000.00 - - 25,000,000.00
The method of goodwill impairment testing process, parameter and recognition of impairment loss:
The recoverable amount of an asset group or a group of asset groups is determined on a financial
budget approved by management covering a five-year period. The cash flows beyond the five-year
period are extrapolated using the inflation rate.
The recoverable amount of the asset group and asset group combination is calculated using the cash
flow forecasting method based on the five-year budget approved by the management. Management
determines the budgetary gross margin based on historical experience and forecasts of market
development, and uses a pre-tax rate that reflects the specific risk of the relevant asset group and asset
group combination as the discount rate. The above assumptions are used to analyze the recoverable
amount of each asset group and asset group combination within the business segment.
18. Long-term prepaid expenses
2019 Opening balance Additions Amortization Other decrease Closing balance
Fixed asset improvement
expenditure 249,458,261.87 47,060,353.55 42,594,066.57 1,166,437.43 252,758,111.42
Acquisition expenditure to
obtain the right to operate 57,617,166.63 3,971,737.95 7,010,668.66 - 54,578,235.92
Others 4,253,277.96 760,218.61 1,002,537.39 35,524.55 3,975,434.63
311,328,706.46 51,792,310.11 50,607,272.62 1,201,961.98 311,311,781.97
142
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
19. Deferred tax assets/liabilities
(a) Deferred tax assets before offseting
30 June 2019 1 January 2019
Deductible temporary Deferred tax Deductible temporary Deferred tax
differences assets differences assets
Provision for
impairment of assets 79,547,128.04 18,378,950.01 68,153,222.07 15,676,020.10
Deductible tax loss 34,968,710.28 8,677,091.14 77,791,621.20 19,311,837.06
Deferred Income 25,565,030.92 6,387,445.17 30,188,142.13 7,547,758.26
Accrued payroll 13,435,720.26 2,963,493.05 64,598,625.74 15,656,015.32
Accrued expenses 132,416,395.94 32,742,594.34 94,108,769.33 22,301,617.95
Others 30,339,847.94 7,164,541.66 6,238,492.18 1,467,765.00
316,272,833.38 76,314,115.37 341,078,872.65 81,961,013.69
(b) Deferred tax liabilities before offseting
30 June 2019 1 January 2019
Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Fair value adjustment
for business
combination not
involving enterprises
under common
control 221,963,869.66 55,490,967.41 227,900,345.39 56,975,086.34
Changes in fair value 87,167,599.53 21,791,899.72 75,366,942.99 17,676,879.28
309,131,469.19 77,282,867.13 303,267,288.38 74,651,965.62
(c) Deferred tax assets and liabilities are presented after being offset against each other:
30 June 2019 1 January 2019
Deferred tax Temporary Deferred tax Temporary
assets/liabilities differences assets/liabilities - differences
-Net after set-off Net after set-off
Deferred tax assets 10,896,608.36 65,417,507.01 7,046,803.74 74,914,209.95
Deferred tax liabilities 10,896,608.36 66,386,258.77 7,046,803.74 67,605,161.88
143
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
19. Deferred tax assets/liabilities (Continued)
(d) The deductible temporary differences and deductible losses that were not recognized as
deferred tax assets are presented as follows:
30 June 2019 1 January 2019
Deductible temporary differences 932,951.17 1,480,000.00
Deductible loss (Note) 30,894,876.42 29,391,422.33
31,827,827.59 30,871,422.33
The aforesaid unrecognized deductible losses will due:
30 June 2019 1 January 2019
2019 6,106,580.00 2,864,062.85
2020 1,636,825.76 4,725,707.87
2021 8,256,680.69 2,563,056.08
2022 8,358,197.50 7,261,117.97
2023 6,536,592.47 11,977,477.56
30,894,876.42 29,391,422.33
(Note) As some subsidiaries are still at a loss and it’s uncertain that those subsidiaries can obtain
enough taxable income to offset against the loss in the future. So the Group do not recognise deferred
tax assets which came from the deductible loss of RMB 30,894,876.42 .
144
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
20. Other non-current assets
30 June 2019 1 January 2019
Carrying Carrying Carrying Carrying
balance Impairment amount balance Impairment amount
Physical assets
reserve specifically
authorized 44,621,093.48 - 44,621,093.48 47,576,273.75 - 47,576,273.75
Prepayment for
project and
equipment 22,323,493.28 - 22,323,493.28 10,592,645.36 - 10,592,645.36
66,944,586.76 - 66,944,586.76 58,168,919.11 - 58,168,919.11
21. Short-term borrowings
30 June 2019 1 January 2019
Credit borrowings 3,079,560,758.24 2,427,639,275.32
Discounted notes 211,316,836.99 170,013,427.11
3,290,877,595.23 2,597,652,702.43
As at 30 June 2019, the annual interest rate for the above borrowings was 4.55% (31 December
2018: 4.65%).
On June 30, 2019 and December 31 2018, the Group had no short-term loan that were due but
not yet repaid.
145
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
22. Notes payable
30 June 2019 1 January 2019
Commercial acceptance notes 23,896,465.30 13,843,479.73
Bank acceptance notes 3,515,198,797.04 3,402,912,202.07
3,539,095,262.34 3,416,755,681.80
At 30 June 2019，balance of notes payable at maturity was RMB0.00. (31 December 2018：RMB
0.00).
23. Accounts payable
30 June 2019 1 January 2019
Trade payables 8,088,697,602.94 6,468,535,961.17
At 30 June 2019, the total amount of accounts payable aged over one year was
RMB496,134,298.59(31 December 2018: RMB467,525,486.03 ).
24. Contract liabilities
30 June 2019 1 January 2019
Advances from customers - -
Contract liabilities 239,739,020.90 255,590,612.37
239,739,020.90 255,590,612.37
146
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
25. Employee benefits payable
2019 At beginning of the year Increase Decrease At end of the year
Short-term employee benefits (a) 226,152,409.27 927,118,638.71 1,001,730,616.89 151,540,431.09
Post-employment benefits
(defined contribution plan)(b) 5,248,146.99 93,025,372.36 88,529,751.61 9,743,767.74
Termination benefits (c) 465,851.14 841,185.81 872,153.00 434,883.95
231,866,407.40 1,020,985,196.88 1,091,132,521.50 161,719,082.78
(a) Short-term employee benefits
At beginning of
2019 year Increase Decrease At end of year
Salaries, bonuses, allowances
and grants 210,723,820.21 810,503,119.74 884,415,868.48 136,811,071.47
Staff welfare 1,750,750.89 23,556,598.47 24,295,552.24 1,011,797.12
Social security contribution 1,622,271.12 47,247,265.73 46,045,452.79 2,824,084.06
Incl: Medical insurance 1,362,150.59 42,318,821.55 41,333,544.10 2,347,428.04
Work injury insurance 30,755.69 1,427,211.06 1,394,836.56 63,130.19
Maternity insurance 229,364.84 3,501,233.12 3,317,072.13 413,525.83
Housing funds 1,063,993.02 30,889,248.28 30,946,436.95 1,006,804.35
Labor union funds and
employee education funds 9,956,772.12 13,593,217.16 15,024,466.50 8,525,522.78
Other short-term benefits 1,034,801.91 1,329,189.33 1,002,839.93 1,361,151.31
Total 226,152,409.27 927,118,638.71 1,001,730,616.89 151,540,431.09
(b) Defined contribution plan
2019 At beginning of year Increase Decrease At end of year
Basic pension
insurance 1,755,160.16 88,463,119.33 86,167,938.13 4,050,341.36
Unemployment
insurance 122,350.65 2,587,235.09 2,359,308.38 350,277.36
Contribution to
pension fund 3,370,636.18 1,975,017.94 2,505.10 5,343,149.02
5,248,146.99 93,025,372.36 88,529,751.61 9,743,767.74
Note ： For the half year of 2019, the Group provided other termination benefits for severing labor
relations of RMB153,286.50. For the half year of 2018, the Group provided other termination benefits for
severing labor relations of RMB69,075.00.
147
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
26. Tax payable
30 June 2019 1 January 2019
Value-added tax 61,484,212.40 90,356,534.09
Corporate Income taxes 121,174,058.74 115,226,820.39
Individual income tax payable 4,518,825.00 3,954,139.24
City maintenance and construction surtax 4,994,194.58 6,854,426.95
Educational surcharge payable 3,593,664.02 4,937,147.17
Water conservancy fund payable 5,523,161.32 5,421,280.43
Stamp duty 4,098,721.21 5,854,355.91
Property tax 1,407,180.81 1,123,276.37
Land use tax payable 241,952.24 209,179.29
Others 8,543,031.51 8,043,252.88
215,579,001.83 241,980,412.72
27. Other payables
30 June 2019 1 January 2019
Interest payable 29,012,444.93 21,906,660.63
Dividend payable 6,389,320.96 6,389,320.96
Other payables 1,439,124,932.54 1,511,140,990.34
1,474,526,698.43 1,539,436,971.93
（1） Interest payable
30 June 2019 1 January 2019
Long-term loans’ (With periodic payments of
principal and interest charges) interest 35,440.21 38,984.25
Interest on short-term borrowings 10,692,042.51 10,973,397.39
Trade receivables’ factoring interest 18,284,962.21 10,894,278.99
29,012,444.93 21,906,660.63
148
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
27. Other payables (Continued)
（2）Dividend payable
30 June 2019 1 January 2019
Shanghai Fosun Pharmaceutical (Group) Co., Ltd. 4,835,511.58 4,835,511.58
Zhenfang Zhang 1,389,639.31 1,389,639.31
Meiluo Pharmaceutical Co., Ltd. 164,170.07 164,170.07
6,389,320.96 6,389,320.96
As at 30 June 2019, the Group had no significant dividend aged more than one year and not yet paid
(31 December 2018: nil).
（3）Other payables
30 June 2019 1 January 2019
Payables for factoring programs 550,002,940.12 724,272,060.30
Deposit 389,299,163.12 334,821,325.72
Accrued selling and distribution expenses 174,163,680.40 131,493,977.43
Payables arising from acquisition of subsidiaries 77,082,980.00 78,702,980.00
Payables for construction in progress and
equipment 58,230,154.88 79,380,923.99
Payables for rentals 40,290,060.94 29,298,835.46
Payables to individuals 28,207,673.38 22,730,210.22
Temparary loan 15,800,000.00 15,800,000.00
Payables to related parties 15,581,702.81 5,436,532.76
Payables for land transfer payments 12,597,500.00 18,071,000.00
Equity subscription 10,000,000.00 10,000,000.00
Collection of others 9,067,830.66 7,525,379.59
Others 58,801,246.23 53,607,764.87
1,439,124,932.54 1,511,140,990.34
At 30 June 2019, significant other payables over 1 year are:
Amount payable Reason for outstanding
Non-controlling interests in South
Pharmaceutial Foreign Trade Fu Yuequn 54,722,980.00 Payment conditions not met
149
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
and other 11 natural persons
Shenzhen No.1 Construction Engineering
Co., Ltd. 8,605,625.20 Payment conditions not met
Liuzhou Shengli Pharmacy 5,986,288.12 Payment conditions not met
69,314,893.32
27. Other payables (Continued)
The amount arising from the acquisition of subsidiaries is mainly for the shares acquisition of minorities
of South Pharmaceutial Foreign Trade .
At 30 June 2019, other payables due within 1 year amounting to RMB 137,518,449.47(31 December
2018: RMB 136,286,760.04 ) are mainly consisted of construction cost payable, company borrowings
payable, deposits and etc.
28. Non-current liabilities due within 1 year
30 June 2019 1 January 2019
Long-term borrowings due within 1 year 31,600,000.00 -
Lease liabilities due within 1 year 526,696,784.75 495,132,751.96
558,296,784.75 495,132,751.96
29. Other current liabilities
30 June 2019 1 January 2019
Output VAT to be recognized 445,493.48 292,465.75
30. Long-term borrowings
30 June 2019 1 January 2019
Credit borrowings(a) - 31,600,000.00
- 31,600,000.00
(a) At 30 June 2019, the Group has no entrusted borrowings(31 December 2018:
150
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
RMB31,600,000.00). The Group's long-term borrowings are loans lent by the China National
Pharmaceutical Group Corporation. The borrowings due within one year have been reclassified to
non-current liabilities due within one year.
At 30 June 2019, the annual interest rate of above-mentioned borrowings was 4.04% (31
December 2018: 4.04%).
31．Lease liabilities
30 June 2019 1 January 2019
lease payables 1,713,157,908.71 1,599,733,049.76
Less:：lease payables due within 1 year (526,696,784.75) (495,132,751.96)
1,186,461,123.96 1,104,600,297.80
32. Long-term payables
30 June 2019 1 January 2019
Payable for specific projects 800,000.00 800,000.00
Payable for specific projects
At beginning of Reasons of
year Increase Decrease At end of year derred income
Special funds granted by Granted by the
government 800,000.00 - - 800,000.00 government
33. Long-term employee benefits payable
30 June 2019 1 January 2019
Early retirement benefits payable 1,915,000.00 2,050,000.00
151
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
34. Deferred income
Reasons of derred
2019 Opening balance Increase Decrease Closing balance income
Government
grants 91,491,170.40 79,184.44 2,847,536.66 88,722,818.18 Government grants
91,491,170.40 79,184.44 2,847,536.66 88,722,818.18
As at 30 June 2019, deferred income from government grants are as follow:
Government grants Opening Addition in Amount included Amount Closing balance Asset related/
program balance the year in non-operating included in income related
income in the other income in
year the year
Resettlement
Compensation (i) 75,555,441.17 - 1,349,204.28 - 74,206,236.89 Asset related
Guangxi Logistics Project 6,453,426.58 - - 230,346.06 6,223,080.52 Asset related
Guangzhou Logistics
standardization project 2,815,012.55 - - 273,123.42 2,541,889.13 Asset related
A comprehensive
experimental modern
service industry
subsidies 1,500,000.00 - - 150,000.00 1,350,000.00 Asset related
Shared Logistics Center 252,058.35 - - 9,400.20 242,658.15 Asset related
Asset/Income
Other projects 4,915,231.75 79,184.44 835,462.70 4,158,953.49 related
91,491,170.40 79,184.44 1,349,204.28 1498332.38 88,722,818.18
Due to the implementation of urban planning for old town reconstruction in Nanning, the operating center of
Guangxi Logistics which was located in Longteng Road District, Nanning City, was to be reconstructed in
another place. According to the agreement signed between Guangxi Logistics and the real estate developer,
Guangxi Logistics would obtain a compensation of RMB120,250,000.00, including cash of RMB50,000,000.00
and property in constructing equaling a value of RMB70,250,000.00. Cash compensation of RMB
50,000,000.00 was received in May 2012. In year 2015, construction properties with a value of
RMB70,250,000.00 were built and delivered, and had been recognized as investment properties (Note V (12)).
The compensation relating the capital expenditure in the reconstruction of the new logistic center in
another place, amounting to RMB93.32 million was recognized as deferred revenue,and would be
amortized and recognized in the income statement within the expected useful lives using the straight
line method (Note V(50)), and the other cash compensation.
152
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
35. Other non-current liabilities
30 June 2019 1 January 2019
Contract liabilities 53,375.33 -
Governmental medical reserve funds 45,427,343.31 45,427,343.31
Product promotion accumulative points 22,359,977.45 23,813,832.87
programme
67,840,696.09 69,241,176.18
Certain medical reserves funds were received by the Group from the PRC government and local
government for purchasing medical products (including medicines) required to respond to serious
disasters, epidemics and other emergencies.
36. Share capital
Movement during the current year
2019 At beginning of year Issue of new share Others Total At end of year
Shares 428,126,983.00 428,126,983.00
37. Capital surplus
2019 At beginning of year Increase Decrease At end of year
Share premium 2,118,174,787.27 - - 2,118,174,787.27
Significant reorganization 1,173,907,763.19 - - 1,173,907,763.19
Other changes in equity of invested
units under equity method
(94,032,514.34) 42,424,747.00 - (51,607,767.34)
Transfer of capital surplus
recognized under the previous
accounting system 2,650,322.00 - - 2,650,322.00
Business combination involving
enterprises under common control - - - -
Others 1,120,284,623.39 - - 1,120,284,623.39
4,320,984,981.51 42,424,747.00 - 4,363,409,728.51
Capital surplus-others increased by RMB 42,424,747.00 when other changes in equity of Modern
Pharmaceutical resulted in adjustment of long-term equity investment and an increase of capital
surplus by RMB 42,424,747.00 .
153
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
38. Surplus reserve
At beginning of year Increase Decrease At end of year
Surplus reserve 214,063,491.50 - - 214,063,491.50
214,063,491.50 - - 214,063,491.50
39. Retained earnings
30 June 2019 1 January 2019
Retained earnings at the end of the prior year 6,655,257,147.27 5,572,952,806.39
Retained earnings at beginning of year after
retrospective adjustment and restatement 6,655,257,147.27 5,572,952,806.39
Add: Net profit attributable to the parent 650,833,360.40 1,210,742,435.78
Cash dividends payable for ordinary shares 171,250,793.20 128,438,094.90
Others -Business combination involving enterprises under
common control - -
Retained earnings at end of year 7,134,839,714.47 6,655,257,147.27
40. Operating revenue and cost
For the six months ended For the six months ended
30 June 2019 30 June 2018
Revenue Cost Revenue Cost
Principal
operations 25,040,619,938.98 22,398,327,532.43 20,606,027,974.57 18,355,002,752.42
Other operations 187,527,438.45 17,192,420.44 172,397,627.65 12,640,971.42
25,228,147,377.43 22,415,519,952.87 20,778,425,602.22 18,367,643,723.84
154
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
40. Operating revenue and cost (Continued)
Classification Inter-segment
Headquarters Distribution Retail Total
offsets
By product
Include:
Medicines - 17,951,760,565.22 5,957,083,892.95 (361,359,523.83) 23,547,484,934.34
Medical appliance - 1,345,459,501.68 - - 1,345,459,501.68
Other 4,747,314.83 179,640,288.21 150,815,338.37 - 335,202,941.41
By area
Include:
Domestic sales 4,747,314.83 19,476,860,355.11 6,107,899,231.32 (361,359,523.83) 25,228,147,377.43
Overseas sales - - - - -
By contract
duration
Include:
Confirm revenue
at a certain point
in time - 19,297,220,066.90 5,957,083,892.95 (361,359,523.83) 24,892,944,436.02
Confirm revenue
at a certain time
period 4,747,314.83 179,640,288.21 150,815,338.37 - 335,202,941.41
Total 4,747,314.83 19,476,860,355.11 6,107,899,231.32 (361,359,523.83) 25,228,147,377.43
Information about the Group’s obligations is as follows:
The Group recognises revenue when goods are delivered, and will receive payment within 30-210 days.
The Group recognises revenue after providing services, and will receive payment within 30-210 days.
The expected revenue recognition time for the Group’s contract obligations above is in year 2019.
Information related to the sales price allocated to the remaining obligations:
The amount of income corresponding to the obligation that has been signed but has not been fulfilled or has
not yet fulfilled is 239,739,020.90 yuan, of which 239,739,020.90 yuan is expected to be recognized in 2019.
155
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
41. Tax and surcharges
For the six month ended For the six month ended
30 30
June 2019 June 2018
City maintenance and construction tax 24,015,771.70 22,352,680.77
Educational surcharge 17,051,137.40 16,112,625.97
Property tax 3,182,784.83 3,075,856.41
Land tax 310,374.16 245,070.74
Vehicle and vessel use tax 71,880.95 98,966.20
Stamp duty 17,406,047.59 14,200,426.96
Others 101,229.81 534,900.20
62,139,226.44 56,620,527.25
42. Selling expenses
For the six month ended For the six month ended
30 June 2019 30 June 2018
Employees payroll and welfare benefits 751,390,265.97 659,176,548.69
Rental expenses 85,603,520.94 322,805,173.33
Transportation charges 42,481,965.66 33,086,676.72
Depreciation expenses 313,982,576.03 26,125,384.59
Promotion and marketing expenses 21,130,375.63 18,454,328.54
Office allowances 19,914,617.62 16,283,197.98
Entertainment expenses 11,670,679.46 11,357,532.12
Storage expenses 15,216,365.97 14,866,861.14
Travel allowances 3,017,736.94 3,415,890.36
Market development fees 3,713,897.19 3,255,084.76
Conference expenses 1,196,924.88 1,654,991.62
Others 214,013,574.44 163,107,086.22
1,483,332,500.73 1,273,588,756.07
156
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
43. Administrative expenses
For the six month ended For the six month ended
30 June 2019 30 June 2018
Employees payroll and welfare benefits 265,705,706.25 248,803,724.84
Rental expenses 9,155,207.14 18,347,245.83
Depreciation expenses 16,813,385.90 12,732,380.45
Office allowances 11,183,599.31 11,877,499.56
Amortization of intangible assets 9,779,109.11 8,272,613.85
Entertainment expenses 5,822,240.83 6,428,775.38
Amortization of long-term deferred expenses 5,532,926.20 4,518,905.10
Vehicle management expenses 3,630,572.81 4,435,451.82
Travel allowances 3,801,532.99 4,323,679.13
Utilities 3,094,494.34 2,713,666.76
Taxations 1,847,691.62 2,241,415.79
Conference expenses 2,586,044.56 2,059,875.35
Repairing fees 2,507,057.40 1,624,550.73
Others 35,757,125.67 23,440,279.19
377,216,694.13 351,820,063.78
44. Finance costs
For the six month ended For the six month ended
30 June 2019 30 June 2018
Interest expenses 169,529,472.37 83,356,367.18
Less: Interest income (60,630,036.91) (23,082,233.56)
Cash discount (23,190,566.63) (21,542,580.44)
Exchanges loss/(gain) (389,882.62) 329,665.40
Others 18,776,268.03 18,480,325.74
104,095,254.24 57,541,544.32
157
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
45. Other incomes
For the six month ended For the six month ended
30 June 2019 30 June 2018
Government grants related to daily operating
activities 14,974,471.87 10,589,212.57
Taxation service charge refund 16,447.15 741,097.45
14,990,919.02 11,330,310.02
46. Investment income
For the six month ended For the six month ended
30 June 2019 30 June 2018
Investment income from long-term equity investments
under the equity method 169,142,289.99 162,662,271.35
Dividend income from other equity instruments invested
during the holding period - 31,500.00
169,142,289.99 162,693,771.35
47. Impairment loss on financial assets
For the six month ended For the six month ended
30 June 2019 30 June 2018
Impairment loss of trade receivables (1,666,431.98) (1,172,127.53)
Impairment loss of other receivables (9,767,669.15) 2,198,829.77
(11,434,101.13) 1,026,702.24
48. Impairment losses
158
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
For the six month ended For the six month ended
30 June 2019 30 June 2018
Inventory provision (125,554.34) (508,849.26)
(125,554.34) (508,849.26)
49. Gain on disposal of assets
For the six month ended For the six month ended
30 June 2019 30 June 2018
Gain on disposal of fixed assets (29,725.44) 389,144.70
Gain on disposal of intangible assets - 3,892,019.91
(29,725.44) 4,281,164.61
159
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
50. Non-operating income
For the six month For the six month Amount classified as
ended ended non-recurring profit or
30 June 2019 30 June 2018 loss
Government grants 1,349,204.28 1,349,204.28 1,349,204.28
Gain from writing off the unnecessary
payment 306,191.87 2,898,512.62 306,191.87
Gain on disposal of non-current assets 195,336.00 2,303.00 195,336.00
Others 1,816,438.10 1,248,931.21 1,816,438.10
3,667,170.25 5,498,951.11 3,667,170.25
Government grants included in current period profit or loss:
Project Name Government Reasons for Type Affects the Special For the six For the six Related to
Department Government profit or subsidy months ended months ended asset/income
grants loss of this
30 June 2019 30 June
year
2018
Resettlement Nanning Subsidy Subsidies from Yes No 1,349,204.28 1,349,204.28 Asset related
Compensation Economic & local government
of No. 7 Technological for support policies
Zhongyao Development such as attracting
Road Area investment
Management
Committee
All non-operating income was wholly classified as non-recurring profit or loss for the six month ended
51. Non-operating expenses
For the six month ended For the six month ended Amount
30 June 2019 30 June 2018 classified as
non-recurring
profit or loss
Donation expenses - 60,000.00 -
Penalty expenses 273,498.60 1,194,388.28 273,498.60
Loss on disposal of a
non-current asset 161,292.34 28,525.01 161,292.34
Others 1,283,474.62 514,379.51 1,283,474.62
1,718,265.56 1,797,292.80 1,718,265.56
160
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
52. Income taxes
For the six month ended For the six month ended
30 June 2019 30 June 2018
Current income tax 183,966,126.67 163,102,979.73
Deferred income tax 8,277,799.83 1,383,754.59
192,243,926.50 164,486,734.32
The reconciliation from income tax calculated based on applicable tax rates and total profit
presented in the consolidated financial statements to the income taxes is listed below:
For the six month ended
30 June 2019
Total profit 960,336,481.81
Income taxes calculated at applicable tax rates 240,084,120.45
Lower tax rates enacted by local authorities (13,265,455.52)
Adjustment of income tax expense of previous years (4,574,884.17)
Income not subject to tax (47,995,671.32)
Expenses not deductible for tax 17,747,992.12
Deductible loss on unconfirmed deferred tax assets at end of the
period 493,231.44
Impact of the temporary discrepancy on unconfirmed deductible
deferred tax assets at end of the period (255,667.65)
Impact of the temporary discrepancy on unconfirmed deductible
deferred tax assets of the pervious year 10,261.15
Income tax 192,243,926.50
161
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
53. Notes to items in the cash flow statement
Cash receipts related to other operating
(a)
activities
For the six months ended For the six months ended
30 June 2019 30 June 2018
Government grants except tax return 16,340,011.49 10,345,223.64
Rent income 37,910,253.81 37,793,728.50
Received operational restricted bank deposits 123,321,063.70 88,156,799.79
Interest income 60,227,651.15 22,642,258.30
Others 57,683,231.05 153,046,777.37
295,482,211.20 311,984,787.60
(b) Cash paid relating to other operating activities
For the six months ended For the six months ended
30 June 2019 30 June 2018
Rental expenses 94,758,728.08 341,152,419.16
Entertainment expenses 17,492,920.29 17,786,307.50
Transportation charges 42,481,965.66 33,086,676.72
Travel expenses 6,819,269.93 7,739,569.49
Storage expenses 15,216,365.97 14,866,861.14
Office expenses 31,098,216.93 28,160,697.54
Advertising expenses 21,130,375.63 18,454,328.54
Others 265,893,688.82 377,222,116.67
494,891,531.31 838,468,976.76
(c) Cash received relating to other investing activities
For the six months ended For the six months ended
30 June 2019 30 June 2018
Received entrusted loan payments 44,000,000.00
Received funds of acquiring Sinopharm
4,680,000.00
Huadu
Others 86,145.15
- 48,766,145.15
162
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
53. Notes to items in cash flow statement (Continued)
Cash paid relating to other investing
(d)
activities
For the six months ended For the six months ended
30 June 2019 30 June 2018
Entrusted borrowings paid to Zhijun Suzhou - 43,999,800.00
Others 1,093,125.00 -
1,093,125.00 43,999,800.00
Cash received relating to other
(e)
financing activities
For the six months ended For the six months ended
30 June 2019 30 June 2018
Financing restricted monetary funds
3,512,659.71 79,825,164.60
received
Others - 3,920,000.00
3,512,659.71 83,745,164.60
Cash payments relating to other
(f)
financing activities
For the six months ended For the six months ended
30 June 2019 30 June 2018
Bank factoring payable 174,269,120.18 64,002,739.23
Lease payment 299,173,550.25 -
Purchase of equity of minority shareholders - 54,722,980.00
Others 36,719,497.31 -
510,162,167.74 118,725,719.23
163
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
54. Supplementary information of cash flow statement
(a) Reconciliation of net profit to cash flows from operating activities
For the six month ended For the six month ended
30 June 2019 30 June 2018
Net profit 768,092,555.31 689,249,009.91
Adjustments: Provision for asset impairment 11,559,655.47 (506,814.18)
Depreciation of fixed assets and investment
properties 48,917,181.72 38,366,126.42
Amortization of intangible assets 14,808,363.43 11,832,914.62
Amortization of long-term prepaid expenses 50,607,272.62 41,638,297.62
Gains on disposal of fixed assets, and other
non-current assets 131,566.90 (4,254,942.60)
Finance costs 159,266,607.86 82,449,854.36
Investment income (169,142,289.99) (162,693,771.35)
Increase in deferred tax assets 5,674,224.55 3,402,744.73
(Increase)/decrease in deferred tax liabilities 2,603,575.28 (2,018,990.14)
(Increase)/decrease in inventories (492,796,771.41) (463,324,117.97)
Increase in operating receivables items (1,983,255,213.04) (1,298,602,834.11)
(Decrease)/increase in operating payable
items 2,463,112,034.51 1,170,553,090.12
Others 284,178,818.14 119,267,141.77
Net cash generated from operating activities 1,163,757,581.35 225,357,709.20
164
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
54. Supplementary information of cashflow statement (Continued)
(b) Movement of cash
For the six months ended For the six months ended
30 June 2019 30 June 2018
Cash at the end of the period 7,768,974,878.91 3,592,715,787.37
Less: Cash at the beginning of the period 7,632,117,020.77 3,673,498,691.48
Net increase in cash 136,857,858.14 (80,782,904.11)
(c) Cash
30 June 2019 31 December 2018
Cash 7,768,974,878.91 7,632,117,020.77
Incl: Cash on hand 3,415,085.25 5,587,191.18
Bank deposits on demand 7,765,559,793.66 7,626,529,829.59
Ending banlance cash and
cash equivalent 7,768,974,878.91 7,632,117,020.77
55. Notes to changes in shareholders’ equity
The current capital reserve -“Other” increased by RMB 42,424,747.00 when other changes in equity of
Shyndec Pharma resulted in adjustment of long-term equity investment and an increase of capital surplus
amounting to RMB 42,424,747.00.
165
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
56. Assets under restricted ownership or right of use
Book value Reasons
Deposits of bank acceptance notes,
Cash and cash equivalents 317,353,629.58 depostis for letter of credit and others.
notes receivable discounted but not
Notes receivables 211,316,836.99 due
528,670,466.57
Note 1: At 30 June 2019, the Group had deposits of bank acceptance notes and letter of credit deposit
amounting to RMB317,353,629.58 (31 December 2018: RMB457,664,283.79) (Note V(1)); the deposit of bank
acceptance bill is RMB317,047,823.58, the letter of credit deposit is RMB305,806.00.
Note 2: At 30 June 2019, the Group had notes receivable of RMB211,316,836.99, discounted but not due (31
December 2018: RMB170,013,427.11) (Note V (2)).
Note 3: At 30 June 2019, the Group had notes receivable of RMB 0, endorsed but not due (31 December 2018:
301,416.00) (Note V (2)).
57. Government grants
Type Amount Account title
Included in current
period profit or loss:
2017 Key enterprise development award funds Other incomes
of Liwan District, Guangzhou 3,166,380.00 3,166,380.00
2018 Hundreds of enterprises reward funds of
310,824.00 Other incomes 310,824.00
Chancheng District, Foshan City
Third party drug modern logistics public
9,400.20 Other incomes 9,400.20
information platform
2013 Guangzhou subsidies for headquarters 264,841.74 Other incomes 264,841.74
Guangzhou special subsidy for the
construction of research and development 44,705.94 Other incomes 44,705.94
institutions
Guangzhou special subsidy for commerce and
241,440.44 Other incomes 241,440.44
trade circulation industry
166
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
57. Government grants (Continued)
Liwan District Sinopharm Supply Chain
Engineering Technology Research and 11,598.84 Other incomes 11,598.84
Development Center
Medical Smart Supply Chain E-commerce
21,884.52 Other incomes 21,884.52
Service Platform Technology Project
Input tax 10% deduction Other incomes/
406,083.20 369,265.69
Deferred income
Office rent subsidy 102,415.76 Other incomes 102,415.76
Centralized financial subsidy fund for
comprehensive pilot work of modern service 150,000.00 Other incomes 150,000.00
industry
Guangdong Provincial Science and
Technology Bureau's grant for the "Smart 17,011.65 Other incomes 17,011.65
Supply Chain Project"
Guangzhou Logistics Standardization Pilot
273,123.42 Other incomes 273,123.42
Project
Industrial application project of pharmaceutical
12,499.98 Other incomes 12,499.98
cold chain patent incubator
Key enterprises support rewards of Liwan
60,800.00 Other incomes 60,800.00
District, Guangzhou
Employment subsidy 619,679.48 Other incomes 619,679.48
Statistical work subsidy 10,000.00 Other incomes 10,000.00
Nanning logistics project construction support
93,203.22 Other incomes 93,203.22
fund
Business bureau award 50,000.00 Other incomes 50,000.00
Business enterprise support reward 300,000.00 Other incomes 300,000.00
Modern logistics cold chain integration
30,000.00 Other incomes 30,000.00
monitoring platform project
Medical warehousing center logistics
71,428.56 Other incomes 71,428.56
information platform project
Modern pharmaceutical logistics remote
35,714.28 Other incomes 35,714.28
location construction project
Industrial transformation and upgrading special
179,112.66 Other incomes 179,112.66
funds
167
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
57. Government grants (Continued)
Quarterly growth award for special funds for
150,000.00 Other incomes 150,000.00
industrial development
Subsidies for the employment of disabled
18,257.35 Other incomes 18,257.35
persons
Futian district modern service industry
300,000.00 Other incomes 300,000.00
quarterly growth award
Special funds for business development 50,000.00 Other incomes 50,000.00
2018 finance bureau subsidy of Putuo district 1,430,000.00 Other incomes 1,430,000.00
Key enterprises support funds of Putuo district 483,143.05 Other incomes 483,143.05
Futian District Industrial Development Special
700,000.00 Other incomes 700,000.00
Fund Award
Gulou District Tax Subsidy 130,000.00 Other incomes 130,000.00
Small-scale taxpayers are exempt from VAT 2,310,639.30 Other incomes 2,310,639.30
Tianjin Heping District Business Committee
5,600.00 Other incomes 5,600.00
Award
Shenyang City Service Development Special
2,000,000.00 Other incomes 2,000,000.00
Fund Subsidy
tax return form Dalian 682,221.79 Other incomes 682,221.79
Weidong District Tax Reward 100,000.00 Other incomes 100,000.00
Yangpu District SME Development Special
169,000.00 Other incomes 169,000.00
Fund
Tax system service fee refund 280.00 Other incomes 280.00
Subsidy of electric vehicle 39,619.95 Deferred income
Resettlement Compensation of No. 7 Zhongyu Non-operating
1,349,204.28 1,349,204.28
Road income
Shenzhen Futian District Development Service
Financial
Center District Industrial Development Special 133,300.00 133,300.00
expenses
Fund Loan Discount
168
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VI. Changes in scope of consolidation
1. Changes in scope of consolidation for other reasons
Establishment of subsidiaries:
For the six months ended 30
30 June 2019 June 2019
Net assets Net profits
Sinopharm Holding Guoda Bayannaoer Co., Ltd.(a) 20,071,010.09 71,010.09
Inner Mongolia Guoda Pharmaceutical Co., Ltd.(b) 19,435,858.10 (564,141.90)
Sinopharm Holding Guoda Yongxingtang Chain
(Chaoyang) Co., Ltd.(c) 21,362,985.84 162,985.84
a. On 18 November 2018, the Group and Hohhot Manshengyuan Trading Co., Ltd. set up Sinopharm
Holding Guoda Bayannaoer Co., Ltd. registered capital subscribed RMB 16,000,000.00 and
RMB 4,000,000.00 respctively. In January 2019, the Group and minority shareholders
completed the capital contribution.The Group holds 80% of its equity after the completion。
b. On 22 October 2018, The Group wholly-owned Inner Mongolia Guoda Pharmaceutical Co., Ltd.,
with a registered capital of RMB 20 million., and completed capital contribution in February 2019.
c. On 30 April 2019, the Group and Chaoyang Bowei Consulting Service Co., Ltd. set up Sinopharm
Holding Guoda Yongxingtang Chain (Chaoyang) Co., Ltd., registered capital subscribed RMB
19,380,000.00 and RMB 18,620,000.00 respctively. In June 2019, the Group and the minority
shareholders contributed RMB 6,528,000.00 and RMB 6,272,000.00 respectively. The Group
holds 51% of its equity after the completion。
169
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VII Interests in other entities
1． Interests in subsidiaries
(1) The composition of the Group:
Principal place of Place of Nature of Shareholding
Subsidiaries Ways of acquisition
business incorporation business Direct Indirect
Sinopharm Guilin Guilin Guilin Commercial - 100% Establishment
Sinopharm Baise Baise Baise Commercial - 100% Establishment
Sinopharm Holding
Zhongshan Co.,
Ltd.(hereafter
refered
as"Sinopharm
Zhongshan") Zhongshan Zhongshan Commercial - 100% Establishment
Sinopharm Guigang Guigang Guigang Commercial - 100% Establishment
Sinopharm Beihai Beihai Beihai Commercial - 100% Establishment
Sinopharm Holding
Guangzhou Medical
Treatment Guangzhou Guangzhou Commercial - 51% Establishment
Sinopharm Holding
Shenzhen Jianmin Business
Co., Ltd.(hereafter combinations
refered involving entities
as"Sinopharm under common
Jianmin") Shenzhen Shenzhen Commercial 100% - control
Sinopharm Holding
Shenzhen
Traditional & Herbal
Medicine Co., Ltd. Business
(hereafter referd as combinations
“Sinopharm involving entities
Traditional & Herbal under common
Medicine") Shenzhen Shenzhen Commercial 100% - control
Sinopharm Holding Business
Shenzhen Logistics combinations
Co., Ltd. (hereafter involving entities
refered as“Shenzhen under common
Logistics") Shenzhen Shenzhen Services 100% - control
Sinopharm Holding Business
Guangzhou Co., Ltd. combinations
(hereafter refered involving entities
as“Sinopharm under common
Guangzhou") Guangzhou Guangzhou Commercial 100% - control
Sinopharm Holding
Guangdong Business
Hengxing Co., Ltd. combinations
(hereafter refered involving entities
as“Sinopharm under common
Hengxing") Guangzhou Guangzhou Commercial - 100% control
Business
combinations
involving entities
under common
Sinopharm Yulin Yulin Yulin Commercial - 100% control
170
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VII Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Principal place Place of Shareholding
Subsidiaries Nature of business Ways of acquisition
of business incorporation
Direct Indirect
Business combinations
Sinopharm Liuzhou Liuzhou Liuzhou Commercial - 51% involving entities under
common control
Business combinations
Guangdong Huixin Investment Co., involving entities under
Ltd. (“Huixin Investment”) Guangzhou Guangzhou Service 100.00% common control
Business combinations
Sinopharm Holding Foshan Co., involving entities under
Ltd. (“Sinopharm Foshan") Foshan Foshan Commercial 100.00% common control
Sinopharm Holding Guangdong Business combinations
Yuexing Co., Ltd. (“Sinopharm involving entities under
Yuexing”) Guangzhou Guangzhou Commercial 100.00% common control
Sinopharm Holding Guangdong Business combinations
Logistics Co., Ltd. involving entities under
(“Guangdong Logistic”) Guangzhou Guangzhou Service 100.00% common control
Business combinations
involving entities under
Sinopharm Guangxi Nanning Nanning Commercial 100.00% common control
Business combinations
involving entities under
Guangxi Logistic Nanning Nanning Service 100.00% common control
Business combinations
involving entities under
Sinopharm Wuzhou Wuzhou Wuzhou Commercial 99.90% common control
Business combinations
involving entities under
Sinopharm Dongguan Dongguan Dongguan Commercial 100.00% common control
Business combinations
involving entities under
Sinopharm Zhanjiang Zhanjiang Zhanjiang Commercial 100.00% common control
Business combinations
involving entities under
Sinopharm Yanfeng Shenzhen Shenzhen Commercial 51.00% common control
Business combinations
involving entities under
Sinopharm Meizhou Meizhou Meizhou Commercial 100.00% common control
Business combinations
involving entities under
Sinopharm Huizhou Huizhou Huizhou Commercial 100.00% common control
Business combinations
involving entities not under
Sinopharm Zhaoqing Zhaoqing Zhaoqing Commercial - 100% common control
Business combinations
involving entities not under
Sinopharm Jiangmen（a） Jiangmen Jiangmen Commercial - 100% common control
Business combinations
involving entities not under
Sinopharm Shaoguan Shaoguan Shaoguan Commercial - 70% common control
Sinopharm Holding Shantou Co., Business combinations
Ltd.(hereafter refered involving entities not under
as"Sinopharm Shantou”) Shantou Shantou Commercial - 100% common control
Business combinations
involving entities under
Foshan Nanhai Medicine Co., Ltd. Foshan Foshan Commercial - 100% common control
Business combinations
Foshan Nanhai Uptodate & Special involving entities under
Medicines Co., Ltd. Foshan Foshan Commercial - 100% common control
Business combinations
involving entities under
Foshan Nanhai Medicine Co., Ltd. Foshan Foshan Commercial - 100% common control
171
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VII Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Principal place Place of
Shareholding
Subsidiaries Nature of business Ways of acquisition
of business incorporation
Direct Indirect
Business combinations
Guangdong Uptodate & Special involving entities under
Medicines Guangzhou Guangzhou Commercial - 100% common control
Business combinations
Guangdong South Pharmaceutical involving entities under
Foreign Trade Co., Ltd. Guangzhou Guangzhou Commercial - 100% common control
Sinopharm Holding Zhuhai Co., Business combinations
Ltd. ((hereafter referd as involving entities not under
“Sinopharm Zhuhai") Zhuhai Zhuhai Commercial - 100% common control
Sinopharm Holding Maoming Co., Business combinations
Ltd. ((hereafter referd as involving entities not under
“Sinopharm Maoming") Maoming Maoming Commercial - 100% common control
Sinopharm Holding GZ Medical
Technology Co., Ltd. Guangzhou Guangzhou Commercial - 51% Establishment
Sinopharm Holding GZ Medical
Supply Chain Service Co., Ltd. Guangzhou Guangzhou Commercial - 51% Establishment
Sinopharm Holding Heyuan Co., Business combinations
Ltd. ((hereafter referd as involving entities not under
“Sinopharm Heyuan") Heyuan Heyuan Commercial - 70% common control
Business combinations
Sinopharm Holding Guoda involving entities under
Pharmacy Co., Ltd. Shanghai Shanghai Commercial 60% - common control
Sinopharm Holding Guoda Business combinations
Pharmacy Chain Store involving entities under
Shanghai Co., Ltd. Shanghai Shanghai Commercial - 100% common control
Business combinations
Beijing Guoda Pharmacy Chain involving entities under
Store Co., Ltd. Beijing Beijing Commercial - 100% common control
Business combinations
Tianjin Guoda Pharmacy Chain involving entities under
Store Co., Ltd. Tianjin Tianjin Commercial - 80% common control
Guangxi Guoda Pharmacy Business combinations
Consulting Chain Store Co., involving entities under
Ltd. Nanning Nanning Commercial - 100% common control
Sinopharm Holding Guoda Business combinations
Pharmacy Guangdong Co., involving entities under
Ltd. Shenzhen Shenzhen Commercial - 100% common control
Business combinations
Sinopharm Guoda Pharmacy involving entities under
Guangxi Chain Co., Ltd. Liuzhou Liuzhou Commercial - 100% common control
Business combinations
Zhejiang Guoda Pharmacy Co., involving entities under
Ltd. Hangzhou Hangzhou Commercial - 100% common control
Sinopharm Holding Guoda
Yangzhou Dadesheng Business combinations
Pharmacy Chain Store Co., involving entities under
Ltd. Yangzhou Yangzhou Commercial - 93.68% common control
Business combinations
Ningxia Guoda Pharmacy Chain involving entities under
Store Co., Ltd. Yinchuan Yinchuan Commercial - 70% common control
Sinopharm Holding Guoda Nanjing Business combinations
Pharmacy Chain Store Co., involving entities under
Ltd. Nanjing Nanjing Commercial - 60% common control
Sinopharm Holding Guoda Business combinations
Shandong Pharmacy Chain involving entities under
Store Co., Ltd. Linyi Linyi Commercial - 55% common control
Sinopharm Holding Guoda Business combinations
Shenyang Pharmacy Chain involving entities under
Store Co., Ltd.(b) Shenyang Shenyang Commercial - 51% common control
Business combinations
Fujian Guoda Pharmacy Chain involving entities under
Store Co., Ltd.(c) Xiamen Xiamen Commercial - 100% common control
172
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VII Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Principal place Place of
Shareholding
Subsidiaries Nature of business Ways of acquisition
of business incorporation
Direct Indirect
Business combinations
Anhui Guoda Pharmacy Chain involving entities under
Store Co., Ltd. Hefei Hefei Commercial - 60% common control
Business combinations
Quanzhou Guoda Pharmacy Chain involving entities under
Store Co., Ltd. Quanzhou Quanzhou Commercial - 51% common control
Business combinations
Shanxi Guoda Wanmin Pharmacy involving entities under
Chain Store Co., Ltd. Taiyuan Taiyuan Commercial - 85% common control
Sinopharm Holding Hunan Guoda Business combinations
Minshengtang Pharmacy involving entities under
Chain Co., Ltd. Hengyang Hengyang Commercial - 51% common control
Business combinations
Liyang Guoda People Pharmacy involving entities under
Chain Store Co., Ltd. Liyang Liyang Commercial - 80% common control
Sinopharm Holding Guoda Henan Business combinations
Pharmacy Chain Store Co., involving entities under
Ltd. Pingdingshan Pingdingshan Commercial - 60% common control
Sinopharm Holding Guoda Inner Business combinations
Mengdia Pharmacy Chain involving entities under
Store Co., Ltd. Hohhot Hohhot Commercial - 96.7% common control
Sinopharm Hebei Lerentang Business combinations
Pharmacy Chain Store Co., involving entities under
Ltd. Shijiazhuang Shijiazhuang Commercial - 60% common control
Business combinations
Sinopharm Guoda Pharmacy involving entities under
Jiangmen Chain Co., Ltd. Jiangmen Jiangmen Commercial - 65% common control
Sinopharm Holding Guoda Shanxi Business combinations
Yiyuan Pharmacy Chain Store involving entities under
Co., Ltd. Taiyuan Taiyuan Commercial - 80% common control
Sinopharm Holding Xinjiang New & Business combinations
Special Medicines Chain Store involving entities under
Co., Ltd. Urumqi Urumqi Commercial - 51% common control
Business combinations
Sinopharm Holding Guoda ForMe involving entities under
Medicines (Shanghai) Co., Ltd. Shanghai Shanghai Commercial - 97% common control
Sinopharm Holding Guoda ForMe
Pharmacy Chain Store Co.,
Ltd. (Formerly “Shanghai Business combinations
ForMe YiXing Pharmacy Chain involving entities under
Store Co., Ltd.”) Shanghai Shanghai Commercial - 99.76% common control
Beijing Golden Elephant Pharmacy Business combinations
Medicine Chain Company involving entities under
Limited Beijing Beijing Commercial - 53.13% common control
Business combinations
Shanxi Tongfeng Pharmacy involving entities under
Logistics Co., Ltd. Taiyuan Taiyuan Commercial - 100% common control
Changzhi Guoda Wanmin Business combinations
Pharmacy Chain Store Co., involving entities under
Ltd. Changzhi Changzhi Commercial - 51% common control
Business combinations
Shanxi Guoda Wanmin Clinic involving entities under
Management Chain Co., Ltd. Taiyuan Taiyuan Medical services - 100% common control
Business combinations
Shanghai Guoda Shanghong involving entities under
Qibao Pharmacy Co., Ltd. Shanghai Shanghai Commercial - 51% common control
Business combinations
Zhejiang Intlmedicine Pharmacy involving entities under
Dongshan Co., Ltd. Hangzhou Hangzhou Commercial - 51% common control
Business combinations
Shanghai Guoda Dongsheng involving entities under
Pharmacy Co., Ltd. Shanghai Shanghai Commercial - 100% common control
173
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VII Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Principal place Place of
Shareholding
Subsidiaries Nature of business Ways of acquisition
of business incorporation
Direct Indirect
Business combinations
Sinopharm Guoda Drug Store involving entities under
(Shenzhen) Chain Co., Ltd. Shenzhen Shenzhen Commercial - 100% common control
Sinopharm Holding Guoda Business combinations
Pharmacy Guangzhou Chain involving entities under
Co., Ltd. Guangzhou Guangzhou Commercial - 100% common control
Shanghai Guodong Chinese Business combinations
Traditional Medicine Clinic Co., involving entities under
Ltd. Shanghai Shanghai Medical clinic - 100% common control
Shanghai Guoda Dongxin Business combinations
Pharmacy Chain Store Co., involving entities under
Ltd. Shanghai Shanghai Commercial - 100% common control
Shanghai Yutaitang Chinese Business combinations
Traditional Medicine Clinic Co., involving entities under
Ltd. Shanghai Shanghai Commercial - 100% common control
Business combinations
Sanhe Liyang Golden Elephant involving entities under
Pharmacy Co., Ltd. Langfang Langfang Commercial - 100% common control
Xiaoyi Guoda Wanmin Baicaotang Business combinations
Pharmacy Chain Store Co., involving entities under
Ltd. Xiaoyi Xiaoyi Commercial - 70% common control
Business combinations
Sinopharm Holding Guoda involving entities under
Pharmacy Hulun Buir Co., Ltd. Hulun Buir Hulun Buir Commercial - 51% common control
Business combinations
involving entities under
ForMe Xuhui Shanghai Shanghai Commercial - 100% common control
Sinopharm Holding Ulanqab Co.,
Ltd. Ulanqab Ulanqab Commercial - 60% Establishment
Business combinations
Sinopharm Guoda Pharmacy involving entities under
Qinhuangdao Chain Co., Ltd. Qinhuangdao Qinhuangdao Commercial - 51% common control
Taishan Sinopharm Holding Guoda Business combinations
Qunkang Pharmacy Chain involving entities under
Store Co., Ltd. Taishan Taishan Commercial - 70% common control
Business combinations
Beijing Golden Elephant Fuxing involving entities under
Technology Co., Ltd. Beijing Beijing Commercial - 80% common control
Business combinations
Sinopharm Lerentang involving entities under
Shijiazhuang Pharmaceutical Shijiazhuang Shijiazhuang Commercial - 100% common control
Sinopharm Holding Guoda Drug
Store Manchuria Co., Ltd. Manchuria Manchuria Commercial - 51% Establishment
Sinopharm Guoda Drug Store
Anshan Chain Co., Ltd. Anshan Anshan Commercial - 51% Establishment
Sinopharm Holding Guoda
Yongsheng Drug Store
（Shanghai） Co., Ltd. Shanghai Shanghai Commercial - 55% Establishment
Sanhe Lixin Golden Elephant
Drugstore Co., Ltd. Langfang Langfang Commercial - 100% Establishment
Sinopharm Holding Foshan
Medical Consumables Supply
Chain Co., Ltd. Foshan Foshan Commercial - 70% Establishment
Sinopharm Holding Medical Supply
Chain Service (Guangxi) Co.,
Ltd. Nanning Nanning Commercial - 30.06% Establishment
Shanghai Guoda Haohai
Pharmacy Co., Ltd. Shanghai Shanghai Commercial - 51% Establishment
Sinopharm Holding Baiyi
Pharmacy Guangxi Co., Ltd. Nanning Nanning Commercial - 51% Establishment
Sinopharm Holding Hezhou Co.,
Ltd. Hezhou Hezhou Commercial - 100% Establishment
174
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VII Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Principal place Place of
Shareholding
Subsidiaries Nature of business Ways of acquisition
of business incorporation
Direct Indirect
Sinopharm Holding National
Pharmacy Zhengzhou Chain
Co., Ltd. Zhengzhou Zhengzhou Commercial - 60% Establishment
Shanghai Guoda Ruijing Pharmacy
Co., Ltd. Shanghai Shanghai Commercial - 55% Establishment
Fujian Guoda Pharmaceutical Co.,
Ltd. Xiamen Xiamen Commercial - 100% Establishment
Sinopharm Holding Qinzhou Co.,
Ltd. Qinzhou Qinzhou Commercial - 100% Establishment
Sinopharm Holding Hechi Co., Ltd. Hechi Hechi Commercial - 100% Establishment
Business combinations
Sinopharm Holding Guangzhou involving entities not under
Huadu Co., Ltd. Guangzhou Guangzhou Commercial - 70% common control
Business combinations
Sinopharm Holding Guoda Shanxi involving entities not under
Pharmaceutical Co., Ltd.(d) Taiyuan Taiyuan Commercial - 100% common control
Business combinations
Taiyuan Tongxinli Guoda involving entities not under
Pharmacy Co., Ltd. Taiyuan Taiyuan Commercial - 100% common control
Sinopharm Holding Guoda
Bayannaoer Co., Ltd.(e) a Bayannaoer a Bayannaoer Commercial - 80% Establishment
Inner Mongolia Guoda
Pharmaceutical Co., Ltd.(f) Hohhot Hohhot Commercial - 100% Establishment
Sinopharm Holding Guoda
Yongxingtang Chain
(Chaoyang) Co., Ltd.(g) Chaoyang Chaoyang Commercial - 51% Establishment
VII Interests in other entities(Continued)
1． Interests in subsidiaries(Continued)
(1) The composition of the Group(Continued)
a. On 13 March 2019, Sinopharm Jiangmen was renamed as “Sinopharm Holding (Jiangmen) Co., Ltd.”.
b. Sinopharm Holding Guoda Shenyang Pharmacy Chain Store Co., Ltd increased the registered capital by
RMB32,000,000.00 with undistributed profits. After the capital increased, the registered capital of Shenyang
Guoda increased from RMB18,000,000.00 to RMB 50,000,000.00, and the shareholding ratio of the original
shareholders did not change.
c. On 17 April 2019, the shareholder of Fujian Guoda Pharmacy Chain Store Co., Ltd. Changed from Sinopharm
Holding Guoda Pharmacy Co., Ltd. to Fujian Guoda Pharmaceutical Co., Ltd. by internal transfer. The 100%
equity of Fujian Guoda Chain held by the original shareholder Sinopharm Holding Guoda Pharmacy Co., Ltd.
was transferred to Fujian Guoda Pharmaceutical Co., Ltd.
d. On 1 February 2019, Shanxi Zhongao Pharmaceutical Co., Ltd. was renamed as “Sinopharm Holding Guoda
Shanxi Pharmaceutical Co., Ltd.”.
e. On 5 November 2018, the Group and Hohhot Manshengyuan Trading Co., Ltd. set up Sinopharm Holding
Guoda Bayannaoer Co., Ltd. registered capital subscribed RMB 16,000,000.00 and RMB 4,000,000.00
respctively. In January 2019, the Group and minority shareholders completed the capital contribution.The
Group holds 80% of its equity after the completion.
f. On 22 October 2018, the Group wholly-owned Inner Mongolia Guoda Pharmaceutical Co., Ltd., with a
registered capital of RMB 20 million., and completed capital contribution in February 2019.
g. On 30 April 2019, the Group and Chaoyang Bowei Consulting Service Co., Ltd. set up Sinopharm Holding
Guoda Yongxingtang Chain (Chaoyang) Co., Ltd., registered capital subscribed RMB 19,380,000.00 and RMB
18,620,000.00 respctively. In June 2019, the Group and minority shareholders contributed RMB 6,528,000.00
and RMB 6,272,000.00 respectively. The Group holds 51% of its equity after the completion。
175
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VII. Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) Important non-wholly owned subsidiary
Subsidiaries Minority Profit or loss Dispatch of dividends Minority shareholders'
shareholding ratio attributable to minority to minority equity
shareholders in the shareholders in the
current period current period
Sinopharm Holding Guoda
Pharmacy Co., Ltd. 40.00% 60,082,149.76 1,743,715,207.60
(2) Key financial information of important non-wholly owned subsidiaries
30 June 2019 31 December 2018
Subsidiaries Non-current Current Non-current Non-current Current Non-current
Current assets Total assets Total liabilities Current assets Total assets Total liabilities
assets liabilities liabilities assets liabilities liabilities
Sinopharm Holding
Guoda Pharmacy 7,637,323,815.74 3,210,489,588.58 10,847,813,404.32 4,642,692,689.21 1,027,988,905.69 5,670,681,594.90 7,467,662,962.46 1,567,755,313.41 9,035,418,275.87 3,994,471,884.62 64,729,132.20 4,059,201,016.82
Co., Ltd.
For the six months ended 30 June 2019 For the six months ended 30 June 2018
Subsidiaries Total comprehensive Cash flow from Total comprehensive Cash flow from
Operating revenue Net profit Operating revenue Net profit
income operating activities income operating activities
Sinopharm Holding
Guoda Pharmacy Co., 6,107,899,231.32 186,189,865.75 186,189,865.75 545,455,740.77 5,143,601,636.87 172,985,004.03 172,985,004.03 77,797,706.43
Ltd.
176
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VII. Interests in other entities (Continued)
2. Interests in associates
Principal place Place of Nature of
Shareholding(%)
of business incorporation business Accounting
Direct Indirect
Associates
Shenzhen Main Luck
Pharmaceutical Co., Ltd.
(hereafter referd as"Main
Luck Pharmaceutical ") Shenzhen Shenzhen Manufacturing 35.19% - Equity
Sinopharm Group
Zhijun(Suzhou)
Pharmaceutical Co., Ltd. Suzhou Suzhou Manufacturing 33.00% - Equity
Sinopharm Group
Zhijun(Shenzhen)
Pharmaceutical Co., Ltd. Shenzhen Shenzhen Manufacturing 49.00% - Equity
Shenzhen Zhijun
Pharmaceutical Trade Co.,
Ltd. Shenzhen Shenzhen Commercial 49.00% - Equity
Sinopharm Group
Zhijun(Shenzhen) Pingshan
Pharmaceutical Co., Ltd. Shenzhen Shenzhen Manufacturing 49.00% - Equity
Shanghai Shyndec
Pharmaceutical Co., Ltd.
(hereafter referd as
“Shyndec Pharmaceutical”) Shanghai Shanghai Manufacturing 16.28% - Equity
Shanghai Dingqun Enterprise
Management Consulting
Co., Ltd.(hereafter refered Business service
as “Shanghai Dingqun”) Shanghai Shanghai industry 2.53% - Equity
Shanghai Beiyi Guoda
pharmaceutical Co. Ltd. Shanghai Shanghai Commercial - 26.00% Equity
Shanghai Liyi Pharmacy Co.,
Ltd Shanghai Shanghai Commercial - 35.00% Equity
Sinopharm Jienuo Medical
Treatment Service
Guangdong Co., Ltd. Guangzhou Guangzhou Commercial - 29.00% Equity
177
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VII. Interests in other entities (Continued)
2. Interests in associates (Continued)
Principal
place of Place of Nature of business Shareholding(%)
business incorporation Accounting
Direct Indirect
Associates
Dongyuan accord
pharmaceutical chain
Co., Ltd. Heyuan Heyuan Commercial - 45.00% Equity
Guangdong Jianhui
Construction
Investment
Management Co.,
Ltd.(hereafter refered
as “Guangdong
Jianhui”) Zhanjiang Zhanjiang Public-Private-Partnership - 10.00% Equity
Shanghai Renbei
Pharmacy Co., Ltd. Shanghai Shanghai Commercial - 30.00% Equity
Explication of the shareholding ratio of a joint venture differs from the proportion of voting rights:
The basis that holds less than 20% of the voting rights but has a significant impact, or holds 20% or more
of the voting rights but has no significant impact:
(1) The highest authority of Shanghai Dingqun is the shareholders' meeting, and the shareholders
exercise their voting rights according to the proportion of capital contribution. At the same time,
Shanghai Dingqun has set up a board of directors which is responsible for the shareholders'
meeting. The board consists of three members, of which the company has appointed one
director. The vote on the board's resolution is one vote per person, and all the board
resolutions should be passed by more than half of all directors.
(2) The highest authority of Guangdong Jianhui is the shareholders' meeting, and the shareholders
exercise their voting rights according to the proportion of the capital contribution. At the same
time, Guangdong Jianhui set up a board of directors which is responsible for the shareholders'
meeting. The board consists of five members, of which the company has appointed one director.
The vote on the resolution of the board of directors is one vote per person.
178
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VII. Interests in other entities (Continued)
3. Summarised financial information of significant associate
30 June 2019/ For the six months 1 January 2019/ For the six months
ended 30 June 2019 ended 30 June 2018
Shanghai Shyndec Shanghai Shyndec Pharmaceutical
Pharmaceutical Co., Ltd. Co., Ltd.
Current assets 10,502,009,120.54 8,470,191,403.19
Non-current assets 7,879,885,410.94 7,993,673,189.70
Total assets 18,381,894,531.48 16,463,864,592.89
Current liabilities 7,111,735,949.12 6,568,480,863.79
Non-current liabilities 2,323,172,902.37 1,452,099,931.65
Total liabilities 9,434,908,851.49 8,020,580,795.44
Non-controlling interests 1,616,396,132.89 1,637,029,480.44
Shareholders’ equity attributable to
7,330,589,547.10 6,806,254,317.01
shareholders of the parent
Portion of net assets calculated by
1,189,353,675.16 1,098,566,852.51
shareholding ratio
Carrying value of equity investment in
1,189,353,675.16 1,098,566,852.51
joint ventures
Operating revenue 6,255,380,073.90 5,853,255,169.05
Net profit 525,814,658.05 575,258,204.58
Total comprehensive income 525,814,658.05 575,258,204.58
Dividends received from joint ventures
16,896,427.80 8,641,853.20
this period
30 June 2019/ For the six months 1 January 2019/ For the six months
ended 30 June 2019 ended 30 June 2018
Sinopharm Group
Zhijun(Shenzhen) Pharmaceutical Sinopharm Group Zhijun(Shenzhen)
Co., Ltd. Pharmaceutical Co., Ltd.
Current assets 1,288,625,706.65 1,111,485,098.64
Non-current assets 302,186,939.74 298,610,691.12
Total assets 1,590,812,646.39 1,410,095,789.76
Current liabilities 725,207,812.63 659,931,220.07
Non-current liabilities 20,932,797.22 24,953,965.28
Total liabilities 746,140,609.85 684,885,185.35
Non-controlling interests - -
Shareholders’ equity attributable to
shareholders of the parent 844,672,036.54 725,210,604.41
Portion of net assets calculated by
shareholding ratio 413,889,297.90 355,353,196.15
Carrying value of equity investment in
joint ventures 413,889,297.90 355,353,196.15
Operating revenue 1,060,889,164.97 979,292,309.92
Net profit 119,461,432.13 125,252,164.85
Total comprehensive income 119,461,432.13 125,252,164.85
Dividends received from joint ventures
this period - 58,111,254.57
179
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VIIl. Risks related to financial instruments
1. Classification of financial instruments
The carrying amounts of each category of financial instruments as at the date of financial position are as follows:
30 June 2019
Financial assets at fair value Financial assets at Financial assets at fair value through other Total
Financial assets through profit or loss amortised cost comprehensive income
Mandatorily required Mandatorily Designation
required
Cash and bank balances - 8,086,328,508.49 - - 8,086,328,508.49
Notes receivable - 790,664,828.26 - - 790,664,828.26
Accounts receivable - 11,826,440,731.59 - - 11,826,440,731.59
Receivable financing - - 325,439,580.18 - 325,439,580.18
Other receivables - 654,086,387.85 - - 654,086,387.85
Other non-current financial
assets 140,000,000.00 - - - 140,000,000.00
Investment in other equity
instrument - - - 13,685,760.00 13,685,760.00
140,000,000.00 21,357,520,456.19 325,439,580.18 13,685,760.00 21,836,645,796.37
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VIIl. Risks related to financial instruments (Continued)
1. Classification of financial instruments (Continued)
30 June 2019
Financial liabilities Financial liabilities at amortised cost
Short-term borrowings 3,290,877,595.23
Notes payable 3,539,095,262.34
Accounts payable 8,088,697,602.94
Other payables 1,474,526,698.43
Non-current liabilities due within one year 558,296,784.75
16,951,493,943.69
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VIIl. Risks related to financial instruments (Continued)
1. Classification of financial instruments (Continued)
The carrying amounts of each category of financial instruments as at the date of financial position are as follows:
1 January 2019
Financial assets at fair value Financial assets at Financial assets at fair value through other Total
Financial assets through profit or loss amortised cost comprehensive income
Mandatorily required Mandatorily Designation
required
Cash and cash equivalents - 8,089,781,304.56 - - 8,089,781,304.56
Notes receivable - 789,536,654.23 - - 789,536,654.23
Accounts receivable - 9,336,861,647.92 - - 9,336,861,647.92
Receivable financing - - 567,775,275.40 567,775,275.40
Other receivables - 643,493,359.32 - - 643,493,359.32
Other non-current financial
assets 140,000,000.00 - - - 140,000,000.00
Investment in other equity
instrument - - - 13,685,760.00 13,685,760.00
140,000,000.00 18,859,672,966.03 567,775,275.40 13,685,760.00 19,581,134,001.43
182
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VIIl. Risks related to financial instruments (Continued)
1. Classification of financial instruments (Continued)
1 January 2019
Financial liabilities Financial liabilities at amortised cost
Short-term borrowings 2,597,652,702.43
Notes payable 3,416,755,681.80
Accounts payable 6,468,535,961.17
Other payables 1,539,436,971.93
Non-current liabilities due within one year 5,861,324.37
Long-term borrowings 31,600,000.00
Long-term payables 3,763,978.52
14,063,606,620.22
2. Transfer of financial assets
Transferred financial assets that are not derecognized in their entirety
As at 30 June 2019, the Group had endorsed commercial bills receivable (the "Endorsed Bills") to certain
of its suppliers in order to settle trade payables due to such suppliers of RMB5,000,000.00 (31
December 2018: RMB 301,416.00). During the year, the Group operated a number of discounting
business through several banks in China. At 30 June 2019, the carrying value thereof was
RMB211,316,836.99 (31 December 2018: RMB170,013,427.11). In the opinion of the directors, the
Group has retained the substantial risks and rewards, which include default risks relating to such
Endorsed Bills, and accordingly, it continued to recognize the full carrying amounts of the Endorsed Bills
and the associated trade payables settled. Subsequent to the Endorsement, the Group did not retain any
rights of the use of the Endorsed Bills, including the sales, transfer or pledge of the Endorsed Bills to any
other third parties. As at 30 June 2019, the carrying value of trade payables settled by the Group totalled
RMB216,316,836.99 (31 December 2018: RMB170,314,843.11).
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VIIl. Risks related to financial instruments (Continued)
2. Transfer of financial assets (Continued)
Transferred financial assets that are derecognized in their entirety in which continuing involvement exists
As at 30 June 2019, the Group had endorsed commercial bills receivable (the "Endorsed Bills") to certain
of its suppliers in order to settle trade payables due to such suppliers of RMB665,479,757.50 (31
December 2018: RMB568,118,674.84). During the year, the Group operated a number of discounting
business through several banks in China. At 30 June 2019, the carrying value thereof was
RMB879,092,916.00 (31 December 2018: RMB705,143,849.35). The derecognized bills had a maturity
of 1 to 12 months at the end of the reporting period. In accordance with the Law of Negotiable
Instruments, the holders of the derecognized bills have a right of recourse against the Group if the
accepting banks default (the “Continuing Involvement”). In the opinion of the directors, the Group has
transferred substantially all risks and rewards relating to the derecognized bills. Accordingly, it has
derecognized the full carrying amounts of the derecognized bills and the associated trade payables. The
maximum exposure to loss from the Group's Continuing Involvement in the derecognized bills and the
undiscounted cash flows to repurchase these derecognized bills is equal to their carrying amounts. In
the opinion of the directors, the fair values of the Group’s Continuing Involvement in the derecognized
bills are not significant.
During the six months ended 30 June 2019, the Group has not recognized any gain or loss on the date of
transfer. No gain or loss was recognized from derecognized financial assets in which the Continuing
Involvement exists, both during the year or cumulatively.
During the six months ended 30 June 2019, the Group has not recognized any gain or loss on the date of
transfer of the derecognized bills. No gains or losses were recognized from the Continuing Involvement,
both during the year or cumulatively.
As part of its normal business, the Group entered into an trade receivable factoring arrangement (the
“Arrangement”) without recourse and transferred certain trade receivables to a bank. In the opinion of
the directors, the Group has transferred substantially all risks and rewards under the arrangement.
Accordingly, it has derecognized the full carrying amounts of the associated trade receivables. The
original carrying value of the derecognized trade receivables transferred under the Arrangement that
have not been settled as at 30 June 2019 amounted to RMB1,299,923,031.76 (31 December 2018:
RMB827,745,640.19).
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VIIl. Risks related to financial instruments (Continued)
3. Risks of financial instruments
The Group's principal financial instruments comprise bank borrowings and cash and short term deposits.
The main purpose of these financial instruments is to raise finance for the Group's operations. The
Group has various other financial assets and liabilities such as trade receivables and trade payables,
which arise directly from its operations.
The Company’s board of directors are responsible for planning and establishing the risk management
framework of the Group, formulating risk management policies and related guidelines of the Group and
supervising the implementation of risk management measures. The Group has already developed risk
management policies to identify and analyse the risks faced by the Group, which have clearly identified
specific risks, covering a lot of aspects such as market risk, credit risk and liquidity risk management.
The Group regularly assesses the market environment and changes in the Group’s business activities to
determine whether or not to update the risk management policies and systems. The risk management of
the Group shall be conducted by the operations and management department according to the policy
approved by the Company’s management. The operations and management department identifies,
evaluates and avoids related risks by means of close cooperation with other business units of the Group.
To avoid the risk concentrating on a single industry, a specific area or a specific counterparty, the Group
spreads financial instruments risk with diversified investments and business portfolio.
Credit risk
The Group only trades with recognised and creditworthy third parties. It is the Group’s policy that all
customers who wish to trade on credit terms are subject to credit verification procedures. In addition,
receivable balances are monitored on an ongoing basis and the Group’s exposure to bad debts is not
significant. For transactions that are not denominated in the functional currency of the relevant operating
unit, the Group does not offer credit terms without the special approval of the credit control department of
the Group.
Since cash and bank balances, bank acceptance bills receivable and derivative financial instruments are
placed in the well-established banks with high credit ratings, the credit risk of these financial instruments
is lower.
The other financial instruments of the Group include cash and bank and other receivables. The credit
risk of these financial assets result from default of counterparty. The maximum credit exposure equals to
the book value of these instruments.
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VIIl. Risks related to financial instruments (Continued)
3. Risks of financial instruments (Continued)
Credit risk (Continued)
The Group applies standard credit clause for sale of goods to customers, at the same time purchase
other goods from some of the major customers. Disclosures regarding maximum credit exposure on
trade receivables are as follows:
30 June 2019 1 January 2019
Trade receivable book value 12,991,845,283.92 10,733,695,012.29
Less: Bad debt provision (49,300,143.89) (39,521,434.74)
Carrying value 12,942,545,140.03 10,694,173,577.55
Amount payable to customer
The Group has agreement with customers stating that only in the circumstances of default in payment
from the customer, can the Group use the payable balance of the same customer to offset receivables.
Therefore, at every balance sheet date, the maximum credit risk exposure of the Group is the total
amount of trade receivables less bad debt provision. Since payables cannot be offset within the balance
sheet, the maximum credit risk exposure is without deducting the customer payable balance.
Since the Group trades only with recognised and creditworthy third parties, there is no requirement for
collateral. Credit risks are managed by customer/counterparty, by geographical region and by industry
sector. There are no significant concentrations of credit risk within the Group as the customer bases of
the Group’s trade receivables are widely dispersed in different sectors and industries. The Group does
not hold any collateral or other credit enhancements over its trade receivable balances.
Determination of significant increase in credit risk
At each reporting date, the group determines whether the credit risk of a financial asset has increased
significantly since initial recognition. When determining whether the credit risk of a financial asset has
increased significantly since initial recognition, the Group considers reasonable and supportable
information that is relevant and available without undue cost or effort. This includes both quantitative and
qualitative information analysis, based on the Group’s historical experience and informed credit
assessment and including forward-looking information. In order to determine the change of expected
default risk during the financial instrument’s entire lifetime, the Group compares the default risk of
financial instrument on the balance sheet date and on the initial recognition date base on a single
financial instrument or financial instrument portfolio with similar default risk.
186
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VIIl. Risks related to financial instruments (Continued)
3. Risks of financial instruments (Continued)
Credit risk (Continued)
The Group determines that the credit risk tof financial assets has significantly increased when one or
more quantitative or qualitative criteria are met:
- quantitative criteria are mainly probability of default increasing more than a given % since initial
recognition;
- qualitative criteria are mainly significant detrimental changes in the borrower’s operating or
financial conditions and early warning customer lists.
- The upper criteria is 30 days the borrowers default.
Definition of credit-impaired financial assets
In assessing whether a financial asset is credit-impaired, the Group considers both quantitative and
qualitative information in line with internal credit risk management. The Group assesses whether a
financial asset is credit-impaired by considering the following factors:
- significant financial difficulty of the borrower or issuer;
- a breach of contract such as a default or past due event;
- the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s
financial difficulty, having granted to the borrower concession(s) that the lender(s) would not
otherwise consider;
- it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation;
- the disappearance of an active market for security because of financial difficulties;
- financial assets purchased or sourced at large discounts indicating that credit losses have
occurred.
The impairment of financial assets may not be necessarily due to a single disparate event. The
combined effects of multiple events may result in financial assets being credit-impaired.
Parameter of the expected credit loss model
Based on whether there is a significant increase in credit risk and whether the financial assets are
credit-impaired, the Group recognizes impairment allowance for different assets using either 12-month
expected credit losses or lifetime expected credit losses. The measurement of the ECL model is a
function of the probability of default, the loss given default (i.e. the magnitude of the loss if there is a
default) and the exposure at default. The Group establishes the model by considering the quantitative
analysis of historical statistics such as counterparty rating, the guarantee method, collateral category,
repayment method, and also forward-looking information.
187
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VIIl. Risks related to financial instruments (Continued)
3. Risks of financial instruments (Continued)
Credit risk (Continued)
Definitions:
- The probability of default is the probability that the debtor will not be able to meet its repayment
obligations within the following 12 months or throughout the remaining duration. To reflect the
macro-economic environment conditions, the Group’s assessment of the probability of
default is based on the calculation of the ECL model adjusted by forward-looking information.
- The loss given default (i.e. the magnitude of the loss if there is a default) refers to the Group's
expectation of the extent of the loss of default risk exposure. The loss given default varies
depending on the type of counterparty, the way and priority of recourse, and the type of
collateral. The loss given default is the percentage of the risk exposure loss at the time of
default, calculated on the basis of the next 12 months or the entire duration.
- The exposure at default refers to the amount that the Group should be repaid in the event of
default in the next 12 months or throughout the remaining period.
Forward-looking information
The assessment of a significant increase in credit risk and the calculation of the ECL both involve
forward-looking information. The Group recognizes key economic ratios that influence credit risk and
ECL by historical data analysis.
As at 30 June 2019, there was no evidence of significant increase in credit risk (31 December 2018: nil).
Currency risk
The Group’s major operational activities are carried out in Mainland China and a majority of
thetransactions are denominated in RMB. The Group is exposed to foreign exchange risk arising from
the recognized assets and liabilities, and future transactions denominated in foreign currencies, primarily
with respect to United States dollars and Hong Kong dollars. The Group’s finance department at its
headquarters is responsible for monitoring the amounts of assets and liabilities, and transactions
denominated in foreign currencies. The Group may consider entering into forward exchange contracts or
currency swap contracts to mitigate the foreign exchange risk.
188
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
VIIl. Risks related to financial instruments (Continued)
4. Capital management
The Company’s primary objective for managing capital is to ensure that it maintains a strong credit rating
and healthy capital ratio in order to support its business, maximize shareholders’ value and benefit
related parties. Management also aims to maintain a capital structure that ensures the lowest cost of
capital available to the entity.
Management adjusts the capital structure through adjusting dividend payments to shareholders,
returning capital to shareholders, issuing new shares or selling assets to reduce debts.
The Group’s total capital is the total shareholders’ equity in the balance sheet. The Group does not adopt
an asset ratio as a compulsory factor to govern capital investment.
The gearing ratios of the Group as at 30 June 2019 and 1 January 2019 were as follows:
30 June 2019 1 January 2019
Gearing ratio 56.59% 54.44%
189
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
IX. Disclosure of fair value
1. Assets and liabilities at fair value
30 June 2019:
Input applied in the measurement of fair value
Quoted Significant Significant Total
prices in observable unobservable
active inputs inputs
markets
Level 1 Level 2 Level 3
Receivable financing - 325,439,580.18 - 325,439,580.18
Investment in other equity
instrument - - 13,685,760.00 - 13,685,760.00
Other non-current financial
assets - - 140,000,000.00 140,000,000.00
- 339,125,340.18 140,000,000.00 479,125,340.18
1 January 2019:
Input applied in the measurement of fair value
Quoted Significant Significant Total
prices in observable unobservable
active inputs inputs
markets
Level 1 Level 2 Level 3
Receivable financing - 567,775,275.40 - 567,775,275.40
Investment in other equity
instrument - - 13,685,760.00 - 13,685,760.00
Other non-current
financial assets - - 140,000,000.00 140,000,000.00
- 581,461,035.40 140,000,000.00 721,461,035.40
190
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
IX. Disclosure of fair value
2. Assets and liabilities disclosed at fair value
1 January 2019:
Input applied in the measurement of fair value
Quoted Significant Significant Total
prices in observable unobservable
active inputs inputs
markets
Level 1 Level 2 Level 3
Long-term borrowings - 31,600,000.00 - 31,600,000.00
3. Estimation of fair value
The following are book value and fair value of financial instruments of the Group excluding those that has immaterial
different in book value and fair value:
30 June 2019 1 January 2019 31 December 2018
Book value Fair value Book value Fair value Book value Fair value
Financial liabilities
Long-term borrowings - - 31,600,000.00 31,600,000.00 31,600,000.00 31,600,000.00
Management has assessed that the fair values of cash and cash equivalents, notes receivable, trade receivables,
other receivables, short-term borrowings, notes payable, trade payables, other payables, non-current liabilities due
within one year and other current assets and liabilities, and current liabilities approximate to their carrying amounts
largely due to the short remaining maturities of these instruments.
The financial controller of the Group takes the responsibility to formulate policies and procedures related to financial
instrument fair value measurements and directly reports to the CFO and the audit committee. On each balance
sheet date, the financial department analyses the variation of the fair vule of financial instruments and determines
the inputs applicable to valuation. The valuation is required to be approved by the CFO.
The fair values of financial assets and liabilities are the amount at which the instrument could be exchanged or debts
could be settled in an arm’s length transaction between knowledgeable and willing parties, other than in a forced or
liquidation sale. The following methods and assumptions were used to estimate the fair values.
The fair values of short-term and long-term borrowings, and long-term payables have been calculated by
discounting the expected future cash flows using market rates of return currently available for other financial
instruments with similar terms, credit risk and remaining maturities. As at 30 June 2019, the Group’s own
non-performance risk for short-term and long-term borrowings was assessed to be insignificant.
For an equity instrument of listed entities, the market price is used to determine fair value. For an equity instrument
of non-listed entities, the market comparable company model is used to estimate fair value. The Group believes that
estimated fair value by the valuation method is rational, and also the most sufficient value at the balance sheet date.
191
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
IX. Disclosure of fair value
4. Unobservable inputs
A financial instrument that is measured at fair value with measurement of level 3 is insensitive to reasonable
fluctuation of the unobservable inputs.
5. Transfers between levels of fair value measurement
At 30 June 2019 and 1 January 2019, there were no transfers of fair value measurements between Level
1 and Level 2.
192
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
1. Parent
Share capital Proportion of ownership Proportion of voting power
Registered address Nature of business (RMB’0,000) interest in the Company in the Company
Industrial investment holding, trustee of a pharmaceutical
Sinopharm enterprise, assets reorganization, distribution and retail of
Group Shanghai medicines and pharmaceutical products, etc. 297,165.62 56.06% 56.06%
The ultimate controlling party of the Company is CNPGC.
2. Subsidiaries
Refer to Note VII (1) for details of subsidiaries.
193
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
3. Associates
Refer to Note VII (2) for details of associates.
Company name Related party relationships
Shenzhen Main Luck Pharmaceutical Co., Ltd. Associate
Sinopharm Group Zhijun(Shenzhen) Pharmaceutical Co., Ltd. Associate
Shenzhen Zhijun Pharmaceutical Trade Co., Ltd. Associate
Sinopharm Group Zhijun(Shenzhen) Pingshan Pharmaceutical Co., Ltd. Associate
Shyndec Pharmaceutical Associate
Sinopharm Group Zhijun(Suzhou) Pharmaceutical Co., Ltd. Associate
Shanghai Dingqun Enterprise Management Consulting Co., Ltd. Associate
Sinopharm Jienuo Medical Treatment Sevice Guangdong Co., Ltd. Associate
Shanghai Beiyi Guoda pharmaceutical Co. Ltd. Associate
Shanghai Liyi Drug Store Co.,Ltd Associate
Dongyuan accord pharmaceutical chain Co., Ltd. Associate
Shanghai Renbei Pharmacy Co., Ltd. Associate
Guangdong Jianhui Construction Investment Management Co., Ltd. Associate
4. Other related parties
Company name Related party relationships
Sinopharm Holding Shanxi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Southwest Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tianjin Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Biopharmaceutical (Tianjin) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shenyang Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Dalian Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jinzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Shanxi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hubei Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Jincheng Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Mingdikang Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Zhidekang Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Medicine Logistic Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hunan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yongzhou Co., Ltd. Controlled by Sinopharm Group
China National Medicines Co., Ltd. Controlled by Sinopharm Group
194
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
Company name Related party relationships
Sinopharm Group Guorui Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Prospect Dentech (Beijing) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Beijing Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd. Controlled by Sinopharm Group
Sinopharm holdings Beijing huahong co., Ltd Controlled by Sinopharm Group
Sinopharm Holding Zhejiang Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Sub Marketing Center Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Henan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Pingdingshan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Anhui Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Fuzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shandong Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Lunan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Rizhao Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jinan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Dezhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Liaocheng Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hainan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Fujian Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Putian Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Quanzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xiamen Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Fuzhou Medical Devices Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Ningxia Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinyu Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Inner Mongolia Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tongliao Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Ulanqab Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Bayannaoer Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hulun Buir Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Ordos Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Xinte Karamay Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jilin Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Chongqing Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jiangsu Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yangzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yangzhou Biological Products Co., Ltd. Controlled by Sinopharm Group
195
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
Company name Related party relationships
Sinopharm Holding Taizhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yangzhou Medical Treatment Equipment Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Suzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Wuxi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Lianyungang Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Nanjing Wende Pharmaceutical Co.,Ltd. Controlled by Sinopharm Group
Sinopharm Holding Changzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Changzhou Medical Logistics Center Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yancheng Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Heilongjiang Co., Ltd. Controlled by Sinopharm Group
Sinopharm Le-Ren-Tang Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Lerentang Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Shijiazhuang Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd. Controlled by Sinopharm Group
Shanghai Merro Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Huaideju Pharmaceutical (Xiamen) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zhangzhou Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Dalian Hecheng Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Changsha Co., Ltd. Controlled by Sinopharm Group
Pudong New Area of Shanghai Pharmaceutical Medicine Ltd. Controlled by Sinopharm Group
Sinopharm Group Anhui Medical Devices Co., Ltd. Controlled by Sinopharm Group
China Medical Equipment Shandong Co., Ltd. Controlled by Sinopharm Group
Sinopharm Liaoning Medical Equipment Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Shanxi Medical Devices Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Shanghai Medicine Device Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hunan Pharmaceutical Development Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Instrument Branch Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tianjin Distribution Center Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zhangzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Sichuan Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Gansu Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jiangxi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Chengdu Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Guangdong Medicine Device Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company Limited Controlled by Sinopharm Group
Sinopharm Xinxiang Chain Store Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yunnan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Nantong Co., Ltd. Controlled by Sinopharm Group
Sinopharm Medical Instrument Guizhou Qiannan Co., Ltd. Controlled by Sinopharm Group
196
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
Company name Related party relationships
Sinopharm Zhuhai Medical Instrument Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Huaian Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Shanghai Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tianjin Binhai Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
China National Pharmaceutical Logistics Co., Ltd. Controlled by Sinopharm Group
Xinjiang Baitong Property Service Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Medicine Logistic Co., Ltd. Guangzhou Branch Controlled by Sinopharm Group
China National Scientific Instruments & Materials Imp/Exp Shenzhen Co., Ltd. Controlled by Sinopharm Group
Guorun Medical Supply Chain Service (Shanghai) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding (Hubei) Base Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Lvliang Co., Ltd. Controlled by Sinopharm Group
Guoyao Lerentang Hebei Medical Device Supply Chain Management Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Qinhuangdao Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Guizhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Tangshan Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Nanping Newforce Co., Ltd. Controlled by Sinopharm Group
Sinopharm Hebei Medical Instrument Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jinhua Co., Ltd. Controlled by Sinopharm Group
Shanghai Tongyu Information Technology Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tianjin North Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding (Hubei) Hankou Pharmacy Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hubei Hongyuan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jiaozuo Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Wuhu Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Honghe Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Chuxiong Co., Ltd. Controlled by Sinopharm Group
Yuxi Sinopharm Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hainan Hongyi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Guanai Yuankang Pharmacy (Haikou) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Longyan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Ningde Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Anshun Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tongren Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zunyi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Guizhou Medical Equiment Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jilin Chain Store Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Siping Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Wenzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xuzhou Co., Ltd. Controlled by Sinopharm Group
Guoyao Lerentang Shijiazhuang Medical Management Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Qinghai Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Chongqing Taimin Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
197
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
Company name Related party relationships
Sinopharm Holding Deyang Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hongrun Medical Business Service (Shanghai) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Guangdong Medical Examination Co., Ltd. Controlled by Sinopharm Group
Sinopharm Medical Instrument Foshan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Nanping Medical Instrument Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Guangxi Medical Equipment Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Anhui Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Suzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Lu'an Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Nanchang Chain Store Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinxiang Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Huangshi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jining Co., Ltd. Controlled by Sinopharm Group
Fujian Sinopharm Medical Instrument Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Baoding Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Hengshui Medicine Co., Ltd. Controlled by Sinopharm Group
Beijing Sinopharm Tianyuan Real Estate & Property Management Co., Ltd. Controlled by Sinopharm Group
Sinopharm Xinjiang Korla Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Shantou Jinshi Pharmaceutical Co., Ltd. Controlled by CNPGC
Huayi Pharmaceutical Co., Ltd. Controlled by CNPGC
Beijing Huamiao Pharmaceutical Co., Ltd. Controlled by CNPGC
Guizhou Tongjitang Pharmaceutical Co., Ltd. Controlled by CNPGC
Anhui Jingfang Pharmaceutical Co., Ltd. Controlled by CNPGC
Guangdong Medi-World Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Fengliaoxing (Foshan) Medicines Co., Ltd. Controlled by CNPGC
Shandong Lu Ya Pharmaceutical Co., Ltd. Controlled by CNPGC
Foshan Fengliaoxing Pharmaceutical Co., Ltd. Controlled by CNPGC
Winteam Pharmaceutical Group Ltd. Controlled by CNPGC
Foshan Dezhong Pharmaceutical Co., Ltd. Controlled by CNPGC
Chengdu Rongsheng Pharmacy Co., Ltd. Controlled by CNPGC
Lanzhou Biotechnology Development Co., Ltd. Controlled by CNPGC
Beijing Huasheng Pharmaceutical Biotechnology Development Co., Ltd. Controlled by CNPGC
Shantou Jinshi Powder Injection Co., Ltd. Controlled by CNPGC
Chengdu Institute of Biological Products Co.,Ltd. Controlled by CNPGC
China National Pharmaceutical Industry Co., Ltd. Controlled by CNPGC
Sinopharm Xinjiang Pharmaceutical Co., Ltd. Controlled by CNPGC
Shanghai Modern Hasen (Shangqiu) Pharmaceutical Co., Ltd. Controlled by CNPGC
Shanghai Shyndec Pharmaceutical Marketing Co., Ltd. Controlled by CNPGC
Sinopharm Group Rongsheng Pharmaceutical Co., Ltd. Controlled by CNPGC
Wuhan Zhonglian Pharmaceutical Group Co., Ltd. Controlled by CNPGC
The Fourth Pharmaceutical Co., Ltd. of Zhonglian Group Controlled by CNPGC
Sinopharm Chuan Kang Pharmaceutical Co., Ltd. Controlled by CNPGC
198
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
Company name Related party relationships
China National Pharmaceutical Foreign Trade Corporation Controlled by CNPGC
Sinopharm Group Yibin Pharmaceuticals Co., Ltd. Controlled by CNPGC
Sinopharm Yixin Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Holding Sanyi Medicine (Wuhu) Co., Ltd. Controlled by CNPGC
Guizhou Tongjitang Pharmacy Chain Co., Ltd. Controlled by CNPGC
Sichuan Jiangyouzhongbafuzi Technology Development Co., Ltd. Controlled by CNPGC
Lanzhou Institute of Biological Products Co., Ltd. Controlled by CNPGC
Sinopharm Wuhan blood products Co., Ltd. Controlled by CNPGC
Fujian Chentian Jinling Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Group Guizhou Blood Products Co., Ltd. Controlled by CNPGC
China National of Traditional&Herbal Medicine Co., Ltd. Controlled by CNPGC
Sinopharm Chongqing Pharmaceutical and Medical Industry Design Institute Controlled by CNPGC
Group Financial Co. Controlled by CNPGC
Shanghai Shangsheng Biological Products Co., Ltd. Controlled by CNPGC
Sinopharm Group Chengdu Xinlibang Biological Products Co., Ltd. Controlled by CNPGC
Sinopharm Weiqida Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Fengliaoxing Medical Hospital Co., Ltd. Controlled by CNPGC
Sinopharm Group Fengliaoxing Traditional Chinese Medical Center Foshan
Nanhai Co., Ltd. Controlled by CNPGC
Sinopharm Group Fengliaoxing Pharmacy (Foshan) Co., Ltd. Controlled by CNPGC
Yichang Humanwell Pharmaceutical Co., Ltd. Associate of Sinopharm Group
Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co., Ltd. Associate of Sinopharm Group
Sinopharm Health Online Co., Ltd. Associate of Sinopharm Group
Sinopharm Holding Financing Lease Co., Ltd. Associate of Sinopharm Group
Shanghai Guoda Lingyun Pharmacy Co., Ltd. Associate of Sinopharm Group
Nanchang Sinopharm Holding Guoyaotang Pharmacy Co., Ltd. Associate of Sinopharm Group
Changchun Changsheng Gene Pharmaceutical Co., Ltd. Associate of CNPGC
China Otsuka Pharmaceutical Co., Ltd. Associate of CNPGC
Fresenius Kabi Huarui Pharmaceuticals Co., Ltd. Associate of CNPGC
Sinopharm ShanXi Ruifulai Pharmaceutical Co., Ltd. Associate of CNPGC
Chongqing Yaoyou Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Sichuan Hexin Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Guilin South pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Shanghai Chaohui Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Tibet Yaoyou Medicines Co.,Ltd. Subsidiary of Fosun Pharm
Shenyang Hongqi Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Shanghai Transfusion Technology Co., Ltd. Subsidiary of Fosun Pharm
Jiangsu Wanbang Pharmacy Marketing Co., Ltd. Subsidiary of Fosun Pharm
Chongqing Haisiman Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Jinzhou AoHong Pharmaceuticals Co., Ltd. Subsidiary of Fosun Pharm
Hunan Dongting Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Jiangsu Huanghe Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
199
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
Company name Related party relationships
Suzhou Erye Pharmaceutical Limited Company Subsidiary of Fosun Pharm
Jiangsu Fuxing Pharmaceutical Trading Co., Ltd Subsidiary of Fosun Pharm
Jiangxi Erye Medicine Marketing Co., Ltd. Subsidiary of Fosun Pharm
Shanghai Compound Technology Medical Devices Co., Ltd. Subsidiary of Fosun Pharm
Foshan Chancheng District Central Hospital Subsidiary of Fosun Pharm
Foshan Chanyixing Medicine Development Co Ltd. Subsidiary of Fosun Pharm
Foshan Chancheng Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Shenzhen Qianda Medical Beauty Clinic Subsidiary of Fosun Pharm
Shenzhen Heng Sheng Hosital Subsidiary of Fosun Pharm
Subsidiary of Main Luck
Shenzhen Wanwei Medicine Trading Co., Ltd. Pharmaceutical
Linyi Medical Group Co., Ltd. Non-controlling interest of a subsidiary
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. Non-controlling interest of a subsidiary
Henan Wanxitang Pharmacy Co., Ltd. Non-controlling interest of a subsidiary
Heyuan Mairui Trading Co., Ltd. Non-controlling interest of a subsidiary
Shenyang Pharmaceutical Co., Ltd. Non-controlling interest of a subsidiary
Zhang Zhenfang Non-controlling interest of a subsidiary
Pingdingshan Pusheng Pharmaceutical Co., Ltd. Non-controlling interest of a subsidiary
Lerentang Investment Group Co., Ltd. Non-controlling interest of a subsidiary
Shenzhen Jiufeng Investment Co., Ltd. Non-controlling interest of a subsidiary
Hunan Minshengtang Investment Co., Ltd. Non-controlling interest of a subsidiary
Taishan Qunkang Pharmacy Co., Ltd. Non-controlling interest of a subsidiary
Gu Haiqun Non-controlling interest of a subsidiary
Guangdong Jiyuantang Development Co., Ltd. Non-controlling interest of a subsidiary
Hangzhou Xihu Business Group Corporation Non-controlling interest of a subsidiary
Controlled by non-controlling interest of
Nanjing Yuanguang Trading Co., Ltd. a subsidiary
Controlled by non-controlling interest of
Taishan Xiangranhui Trade Co., Ltd a subsidiary
Controlled by non-controlling interest of
Shaoguan Wujiang District Muyang Medicine Information Consultant Co., Ltd. a subsidiary
Family member of the non-controlling
Gu Jinhua shareholder of a subsidiary
Controller of non-controlling interest of
Wang Yang a subsidiary
200
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties
(1) Related party transactions –goods and services
Purchase of goods and receiving of services from related parties
For the six months For the six months
Related party Type of transaction ended 30 June 2019 ended 30 June 2018
Sinopharm Holding Sub Marketing Center Co.,
Ltd. Purchase of goods 583,923,608.63 515,167,083.81
China National Medicines Co., Ltd. Purchase of goods 263,718,638.49 237,636,101.58
Sinopharm Holding Shanxi Co., Ltd. Purchase of goods 165,125,264.60 156,466,334.83
Sinopharm Holding Shanxi Co., Ltd. Purchase of goods 117,012,541.61 83,517,976.15
Sinopharm Group Purchase of goods 92,577,206.95 95,150,353.69
Jiangsu Wanbang Pharmacy Marketing Co., Ltd. Purchase of goods 84,007,944.24 33,623,739.18
Sinopharm Holding Shenyang Co., Ltd. Purchase of goods 63,745,181.47 63,689,297.73
Sinopharm Le-Ren-Tang Medicine Co., Ltd. Purchase of goods 58,690,396.26 79,259,083.01
Lanzhou Biotechnology Development Co., Ltd. Purchase of goods 55,500,000.00 -
Fresenius Kabi Huarui Pharmaceuticals Co., Ltd. Purchase of goods 54,227,928.18 90,145,795.30
Sinopharm Group Xinjiang Special Drugs National Purchase of goods 46,674,234.45 39,872,567.55
Pharmaceutical Co., Ltd.
Sinopharm Lingyun Biopharmaceutical Purchase of goods 45,672,377.13 127,271,627.94
(Shanghai) Co., Ltd.
Sinopharm Holding Inner Mongolia Co., Ltd. Purchase of goods 34,523,083.38 18,984,953.29
Sinopharm Holding Lunan Co., Ltd. Purchase of goods 32,561,603.45 39,298,409.81
Sinopharm Holding Yangzhou Co., Ltd. Purchase of goods 29,671,574.81 23,005,232.97
Jinzhou AoHong Pharmaceuticals Co., Ltd. Purchase of goods 28,182,818.68 23,749,213.17
Chongqing Yaoyou Pharmaceutical Co., Ltd. Purchase of goods 27,810,842.74 21,508,305.23
Tibet Yaoyou Medicines Co.,Ltd. Purchase of goods 22,100,470.84 2,761,512.07
Sinopharm Holding Beijing Co., Ltd. Purchase of goods 20,533,829.97 23,822,442.41
Shenzhen Main Luck Pharmaceutical Co., Ltd. Purchase of goods 19,919,483.19 14,173,934.35
Winteam Pharmaceutical Group Ltd. Purchase of goods 19,827,909.28 15,331,219.12
Jiangxi Erye Medicine Marketing Co., Ltd. Purchase of goods 17,959,707.56 -
Sinopharm Holding Fujian Co., Ltd. Purchase of goods 16,041,870.46 9,171,420.33
Sinopharm Holding Lerentang Pharmaceutical
Co., Ltd. Purchase of goods 15,458,862.78 16,967,826.05
Sinopharm Group Zhijun(Shenzhen) Pingshan
Purchase of goods 14,856,080.60 5,519,530.03
Pharmaceutical Co., Ltd.
201
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. party transactions –goods and services related parties (Continued)
(1) RelatedMajor transactions between the Group and its(Continued)
Purchase of goods and receiving of services from related parties
For the six months For the six months
Related party Type of ransaction ended 30 June 2019 ended 30 June 2018
Sinopharm Holding Pingdingshan Co., Ltd. Purchase of goods 14,429,720.75 14,446,097.55
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co., Ltd. Purchase of goods 14,255,875.26 4,670,243.13
Chengdu Rongsheng Pharmacy Co., Ltd. Purchase of goods 13,746,664.10 8,958,139.00
Sinopharm Holding Jiangsu Co., Ltd. Purchase of goods 12,867,682.99 12,276,533.11
Sinopharm Holding Henan Co., Ltd. Purchase of goods 12,814,208.20 6,575,293.46
Shenzhen Wanwei Medicine Trading Co., Ltd. Purchase of goods 10,936,219.06 10,428,796.93
Sinopharm Holding Xiamen Co., Ltd. Purchase of goods 10,273,616.32 9,246,131.91
Sinopharm Holding Xinjiang Special Drugs
Western Pharmaceutical Co., Ltd. Purchase of goods 10,193,725.00 3,614,733.64
Sinopharm Holding Hubei Co., Ltd. Purchase of goods 9,071,305.78 -
Sinopharm Lerentang Shijiazhuang Medicine
Co., Ltd. Purchase of goods 8,677,802.26 10,465,965.70
Sinopharm Holding Shandong Co., Ltd. Purchase of goods 7,306,060.58 718,163.95
Sinopharm Holding Ningxia Co., Ltd. Purchase of goods 7,213,084.95 6,113,483.50
Sinopharm Xingsha Pharmaceuticals (Xiamen)
Co., Ltd. Purchase of goods 7,161,067.43 3,676,515.83
Yichang Humanwell Pharmaceutical Co., Ltd. Purchase of goods 6,711,635.43 4,513,583.78
Sinopharm Holding Changzhou Co., Ltd. Purchase of goods 6,705,005.60 2,900,395.11
China Otsuka Pharmaceutical Co., Ltd. Purchase of goods 6,697,508.52 241,236.29
Shanghai Modern Pharmaceutical Co., Ltd.
(Modern Pharmaceutical) Purchase of goods 6,577,712.26 142,521.39
Sinopharm Yixin Pharmaceutical Co., Ltd. Purchase of goods 6,463,202.79 -
Sinopharm Holding Hunan Co., Ltd. Purchase of goods 5,496,202.17 22,435,971.65
Sichuan Hexin Pharmaceutical Co., Ltd. Purchase of goods 5,339,761.19 1,094,458.11
Sinopharm Holding Shanghai Likang
Pharmaceutical Co., Ltd. Purchase of goods 5,189,668.17 2,003,690.59
Suzhou Erye Pharmaceutical Limited Company Purchase of goods 4,729,210.71 9,554,764.03
Beijing Huasheng Pharmaceutical Biotechnology
Development Co., Ltd. Purchase of goods 4,541,480.00 -
Sinopharm Chuan Kang Pharmaceutical Co., Ltd. Purchase of goods 4,521,905.90 5,794,907.91
Sinopharm Holding Shanxi Lvliang Co., Ltd. Purchase of goods 4,369,021.12 -
Sinopharm Holding Changzhou Medical Logistics
Center Co., Ltd. Purchase of goods 3,824,818.27 4,530,675.45
202
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. party transactions –goods and services related parties (Continued)
(1) RelatedMajor transactions between the Group and its(Continued)
Purchase of goods and receiving of services from related parties
For the six months For the six months
Related party Type of ransaction ended 30 June 2019 ended 30 June 2018
Sinopharm Group Guorui Medicine Co., Ltd. Purchase of goods 3,219,200.90 3,735,052.72
Sinopharm Group Rongsheng Pharmaceutical
Co., Ltd. Purchase of goods 3,158,018.27 1,574,958.10
Sinopharm Holding Jinan Co., Ltd. Purchase of goods 3,031,490.28 3,621,583.69
Sinopharm Holding Tongliao Co., Ltd. Purchase of goods 2,906,482.17 584,726.70
Sinopharm Holding Fuzhou Co., Ltd. Purchase of goods 2,676,398.89 4,703,935.11
Pudong New Area of Shanghai Pharmaceutical
Medicine Ltd. Purchase of goods 2,652,028.86 2,298,554.23
Sinopharm Holding Heilongjiang Co., Ltd. Purchase of goods 2,603,286.79 -
Shanghai Shangsheng Biological Products Co.,
Ltd. Purchase of goods 2,478,155.34 -
Sinopharm Holding Wuxi Co., Ltd. Purchase of goods 2,456,981.90 2,453,393.36
Sinopharm Lerentang Hebei Medical Instrument
Trade Co., Ltd. Purchase of goods 2,326,076.00 1,889,376.44
Sinopharm holdings Beijing huahong co., Ltd Purchase of goods 2,143,025.16 3,550,261.18
Sinopharm Holding Jinzhou Co., Ltd. Purchase of goods 2,050,823.42 2,249,516.98
Shanghai Chaohui Pharmaceutical Co., Ltd. Purchase of goods 1,967,905.09 330,363.62
Guizhou Tongjitang Pharmaceutical Co., Ltd. Purchase of goods 1,947,122.98 1,536,282.82
Beijing Golden Elephant Fosun Pharmaceutical
Co., Ltd. Purchase of goods 1,673,805.68 1,799,439.15
Sinopharm Holding Beijing Kangchen
Bio-Pharmaceutical Co., Ltd. Purchase of goods 1,672,471.40 2,240,460.54
Jiangsu Fuxing Pharmaceutical Trading Co., Ltd Purchase of goods 1,647,132.50 -
Sinopharm Holding Xinjiang Xinte Karamay
Pharmaceutical Co., Ltd. Purchase of goods 1,634,592.42 1,451,522.48
Sinopharm Holding Donghong Medical
(Shanghai) Co., Ltd. Purchase of goods 1,634,371.49 615,989.84
Shantou Jinshi Powder Injection Co., Ltd. Purchase of goods 1,575,114.81 330,119.93
Sinopharm Weiqida Pharmaceutical Co., Ltd. Purchase of goods 1,396,321.58 31,965.52
Shenyang Hongqi Pharmaceutical Co., Ltd. Purchase of goods 1,395,942.72 1,058,670.33
Sinopharm Holding Zhihuiminsheng (Tianjin)
Pharmaceutical Co., Ltd. Purchase of goods 1,374,403.26 80,410.58
China National Pharmaceutical Industry Co., Ltd. Purchase of goods 1,237,603.17 188,275.39
Hunan Dongting Pharmaceutical Co., Ltd. Purchase of goods 1,221,714.73 340,441.92
Sinopharm Holding Yancheng Co., Ltd. Purchase of goods 1,174,557.52 1,402,672.48
Sinopharm Holding Changsha Co., Ltd. Purchase of goods 1,166,442.94 414,897.11
203
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. party transactions –goods and services related parties (Continued)
(1) RelatedMajor transactions between the Group and its(Continued)
Purchase of goods and receiving of services from related parties
For the six months For the six months
Related party Type of ransaction ended 30 June 2019 ended 30 June 2018
Sinopharm Group (Tianjin) Eastern Bokang
Pharmaceutical Co., Ltd. Purchase of goods 1,115,619.67 921,863.31
Sinopharm Fengliaoxing (Foshan) Medicines Co.,
Ltd. Purchase of goods 1,047,564.70 -
Sinopharm Group Southwest Medicine Co., Ltd. Purchase of goods 942,169.90 153,389.66
Sinopharm Holding Xinjiang Special Drugs
Kashgar Pharmaceutical Co., Ltd. Purchase of goods 904,775.75 400,421.76
Shanghai Modern Hasen (Shangqiu)
Pharmaceutical Co., Ltd. Purchase of goods 853,055.98 200,544.82
Sinopharm Group Yibin Pharmaceuticals Co.,
Ltd. Purchase of goods 825,452.16 121,618.26
Sinopharm Holding Suzhou Co., Ltd. Purchase of goods 821,818.78 6,247,553.79
Chengdu Institute of Biological Products Co.,Ltd. Purchase of goods 821,518.40 -
Sinopharm Holding Lianyungang Co., Ltd. Purchase of goods 815,620.38 153,111.27
Sinopharm Holding Hulun Buir Co., Ltd. Purchase of goods 813,318.59 713,341.49
Guangdong Medi-World Pharmaceutical Co., Ltd. Purchase of goods 778,815.71 584,223.16
Sinopharm Holding Dalian Co., Ltd. Purchase of goods 708,136.87 769,041.46
Sinopharm Holding Tianjin Co., Ltd. Purchase of goods 706,163.71 1,598,345.37
Sinopharm Holding Biopharmaceutical (Tianjin)
Co., Ltd. Purchase of goods 627,257.64 63,648.72
Sinopharm Holding Putian Co., Ltd. Purchase of goods 602,182.39 895,532.89
Sinopharm Holding Anhui Co., Ltd. Purchase of goods 558,299.15 539,726.50
Sinopharm Holding Hainan Co., Ltd. Purchase of goods 556,396.59 97,450.60
Hutchison Whampoa Sinopharm
Pharmaceuticals (Shanghai) Co., Ltd. Purchase of goods 551,162.81 763,625.20
Anhui Jingfang Pharmaceutical Co., Ltd. Purchase of goods 537,444.48 (13,269.30)
Sinopharm Group Guizhou Blood Products Co.,
Ltd. Purchase of goods 536,000.00 -
Shanghai Merro Pharmaceutical Co., Ltd. Purchase of goods 513,712.42 2,016,321.47
Sinopharm Holding Quanzhou Co., Ltd. Purchase of goods 509,096.37 509,662.25
Guilin South pharmaceutical Co., Ltd. Purchase of goods 491,705.68 -
Shanghai Transfusion Technology Co., Ltd. Purchase of goods 444,825.76 -
Sinopharm Holding Yangzhou Medical Treatment
Equipment Co., Ltd. Purchase of goods 434,284.50 -
Sinopharm Holding Zhejiang Co., Ltd. Purchase of goods 383,036.87 289,516.54
Wuhan Zhonglian Pharmaceutical Group Co.,
Ltd. Purchase of goods 357,980.82 435,887.39
204
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. party transactions –goods and services related parties (Continued)
(1) RelatedMajor transactions between the Group and its(Continued)
Purchase of goods and receiving of services from related parties
For the six months For the six months
Related party Type of ransaction ended 30 June 2019 ended 30 June 2018
Fujian Chentian Jinling Pharmaceutical Co., Ltd. Purchase of goods 328,557.99 -
Sinopharm Shantou Jinshi Pharmaceutical Co.,
Ltd. Purchase of goods 257,629.73 109,039.96
Sinopharm Wuhan blood products Co., Ltd. Purchase of goods 248,000.00 -
Sinopharm Holding Shanxi Zhidekang Medicine
Co., Ltd. Purchase of goods 189,064.65 -
Sinopharm Holding Dalian Hecheng Co., Ltd. Purchase of goods 175,327.42 262,027.99
Sinopharm Holding Yangzhou Biological Products
Co., Ltd. Purchase of goods 166,268.35 444,000.00
Foshan Fengliaoxing Pharmaceutical Co., Ltd. Purchase of goods 160,792.59 2,015,702.90
Sinopharm Holding (Hubei) Base Pharmaceutical
Co., Ltd. Purchase of goods 152,076.28 -
Sinopharm Holding Dezhou Co., Ltd. Purchase of goods 148,796.05 228,731.52
Sinopharm Holding Hunan Pharmaceutical
Development Co., Ltd. Purchase of goods 142,539.15 -
Jiangsu Huanghe Pharmaceutical Co., Ltd. Purchase of goods 133,968.48 -
Sinopharm Holding Bayannaoer Co., Ltd. Purchase of goods 120,003.15 -
China Medical Equipment Shandong Co., Ltd. Purchase of goods 116,013.65 -
Sinopharm Group Shanxi Co., Ltd. Purchase of goods 111,864.77 87,596.90
Foshan Dezhong Pharmaceutical Co., Ltd. Purchase of goods 95,965.53 -
Sinopharm Liaoning Medical Equipment Co., Ltd. Purchase of goods 90,783.71 -
Sinopharm Xinjiang Pharmaceutical Co., Ltd. Purchase of goods 73,542.96 12.82
Sinopharm Holding Fuzhou Medical Devices Co.,
Ltd. Purchase of goods 40,707.96 -
Sinopharm Holding Sanyi Medicine (Wuhu) Co.,
Ltd. Purchase of goods 39,203.47 58,952.78
The Fourth Pharmaceutical Co., Ltd. of Zhonglian
Group Purchase of goods 35,353.29 24,295.86
Sinopharm Holding Taizhou Co., Ltd. Purchase of goods 34,438.88 73,304.23
Sichuan Jiangyouzhongbafuzi Technology
Development Co., Ltd. Purchase of goods 29,090.91 49,297.30
Sinopharm Holding Rizhao Co., Ltd. Purchase of goods 19,834.99 586,905.03
Sinopharm Holding Nanjing Wende
Pharmaceutical Co.,Ltd. Purchase of goods 19,401.89 27,310.34
Guoyao Lerentang Hebei Medical Device Supply
Chain Management Co., Ltd. Purchase of goods 17,131.04 -
Sinopharm Holding Ulanqab Co., Ltd. Purchase of goods 17,027.43 308,191.79
Sinopharm Holding Shanxi Mingdikang Medicine
Co., Ltd. Purchase of goods 14,185.41 -
205
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. party transactions –goods and services related parties (Continued)
(1) RelatedMajor transactions between the Group and its(Continued)
Purchase of goods and receiving of services from related parties
For the six months For the six months
Related party Type of ransaction ended 30 June 2019 ended 30 June 2018
Sinopharm Holding Jilin Co., Ltd. Purchase of goods 13,152.13 -
Sinopharm Group Medicine Logistic Co., Ltd. Purchase of goods 10,445.10 -
Sinopharm Holding Zhangzhou Pharmaceutical
Co., Ltd. Purchase of goods 10,137.93 -
Sinopharm Holding Shanxi Jincheng Co., Ltd. Purchase of goods 8,408.74 11,481.46
Sinopharm Holding Beijing Tianxing Puxin
Biological Medical Co., Ltd. Purchase of goods 6,891.48 335,484.62
Lanzhou Institute of Biological Products Co., Ltd. Purchase of goods - 52,860,000.00
China National Pharmaceutical Foreign Trade
Corporation Purchase of goods - 13,645,110.09
Sinopharm Holding Shanxi Instrument Branch
Co., Ltd. Purchase of goods - 7,410,730.23
Shanghai Shyndec Pharmaceutical Marketing
Co., Ltd. Purchase of goods - 995,510.64
Sinopharm Lerentang Qinhuangdao Medicine
Co., Ltd. Purchase of goods - 193,277.45
Sinopharm Group Zhijun(Suzhou)
Pharmaceutical Co., Ltd. Purchase of goods - 173,484.94
Sinopharm Holding Guizhou Co., Ltd. Purchase of goods - 73,729.75
Chongqing Haisiman Pharmaceutical Co., Ltd. Purchase of goods - 33,895.38
Sinopharm Lerentang Tangshan Medicine Co.,
Ltd. Purchase of goods - 20,598.94
Sinopharm Holding Nanping Newforce Co., Ltd. Purchase of goods - 15,315.32
Sinopharm Zhuhai Medical Instrument Co., Ltd. Purchase of goods - 9,564.95
Sinopharm Hebei Medical Instrument Co., Ltd. Purchase of goods - 6,533.84
Beijing Huamiao Pharmaceutical Co., Ltd. Purchase of goods - 2,649.79
Sinopharm Group Guangdong Medicine Device
Co., Ltd. Purchase of goods - 1,770.86
Sinopharm Holding Jinhua Co., Ltd. Purchase of goods - 38.80
Sinopharm Holding Ordos Co., Ltd. Purchase of goods - (10,667.01)
Sinopharm Holding Yongzhou Co., Ltd. Purchase of goods (49.36) 38,141.67
Sinopharm Prospect Dentech (Beijing) Co., Ltd. Purchase of goods (63.80) 4,073.48
Sinopharm Group Chengdu Xinlibang Biological
Products Co., Ltd. Purchase of goods (9,500.00) -
Shandong Lu Ya Pharmaceutical Co., Ltd. Purchase of goods (23,551.03) 2,909,280.05
Huayi Pharmaceutical Co., Ltd. Purchase of goods (191,940.52) 695,732.52
Storage and
Sinopharm Group Medicine Logistic Co., Ltd. transport 7,275,965.45 6,666,668.71
206
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. party transactions –goods and services related parties (Continued)
(1) RelatedMajor transactions between the Group and its(Continued)
Purchase of goods and receiving of services from related parties
For the six months For the six months
Related party Type of ransaction ended 30 June 2019 ended 30 June 2018
Consulting service
Sinopharm Health Online Co., Ltd. fee 6,298,404.97 6,085,895.22
Consulting service
Shanghai Beiyi Guoda pharmaceutical Co. Ltd. fee 1,229,716.93 1,263,962.22
Shanghai Tongyu Information Technology Co., Information
Ltd. system access fee 142,764.15 98,113.21
Pingdingshan Pusheng Pharmaceutical Co., Ltd. Others 109,458.10 -
Storage and
China National Pharmaceutical Logistics Co., Ltd. transport cost 54,651.59 44,030.65
Sinopharm Holding Tianjin Binhai Pharmaceutical Information
Co., Ltd. system access fee - 7,075.47
207
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(1) Related party transactions –goods and services (Continued)
Sale of goods and rendering of services
Type of For the six months ended 30 For the six months
Related party transaction June 2019 ended 30 June 2018
Sinopharm Group Sale of goods 113,329,103.30 54,514,170.65
Foshan Chancheng Pharmaceutical Co., Ltd. Sale of goods 59,004,606.02 42,375,781.14
Shanghai Beiyi Guoda pharmaceutical Co. Ltd. Sale of goods 55,645,701.04 49,727,338.63
Sinopharm Holding Hainan Co., Ltd. Sale of goods 48,570,645.00 29,338,160.25
Sinopharm Holding Hainan Hongyi Co., Ltd. Sale of goods 17,357,873.16 24,127,524.50
Sinopharm Holding Wenzhou Co., Ltd. Sale of goods 14,754,017.76 10,830,194.79
Sinopharm holdings Beijing huahong co., Ltd Sale of goods 13,727,246.49 4,816,641.92
Sinopharm Lingyun Biopharmaceutical
7,489,471.75
(Shanghai) Co., Ltd. Sale of goods 12,079,800.79
Sinopharm Holding Sub Marketing Center Co.,
8,970,804.72
Ltd. Sale of goods 12,022,683.32
Beijing Golden Elephant Fosun Pharmaceutical
9,738,902.57
Co., Ltd. Sale of goods 11,241,528.41
Sinopharm Holding Beijing Co., Ltd. Sale of goods 10,806,898.05 5,770,691.44
Shenzhen Heng Sheng Hosital Sale of goods 10,482,252.70 8,215,885.93
Sinopharm Le-Ren-Tang Medicine Co., Ltd. Sale of goods 9,207,801.66 7,728,482.84
Pudong New Area of Shanghai Pharmaceutical
10,524,551.98
Medicine Ltd. Sale of goods 9,123,984.75
Sinopharm Holding Henan Co., Ltd. Sale of goods 8,408,084.97 8,736,054.45
Sinopharm Sichuan Pharmaceutical Co., Ltd. Sale of goods 7,749,468.18 9,061,104.38
Sinopharm Holding Nantong Co., Ltd. Sale of goods 7,649,412.43 8,717,338.95
Sinopharm Holding Shandong Co., Ltd. Sale of goods 7,547,654.37 4,577,546.05
Sinopharm Group (Tianjin) Eastern Bokang
Pharmaceutical Co., Ltd. Sale of goods 7,346,892.05 6,837,559.00
Foshan Chancheng District Central Hospital Sale of goods 5,456,346.95 4,504,644.96
Sinopharm Holding Hubei Co., Ltd. Sale of goods 5,366,299.13 3,772,162.27
Sinopharm Holding Shanxi Co., Ltd. Sale of goods 5,246,365.87 917,123.69
Sinopharm Holding Shanghai Likang
Pharmaceutical Co., Ltd. Sale of goods 4,369,980.09 673,847.93
Sinopharm Holding Yangzhou Co., Ltd. Sale of goods 4,293,371.83 5,144,530.81
Shanghai Merro Pharmaceutical Co., Ltd. Sale of goods 4,068,584.00 1,223,626.19
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co., Ltd. Sale of goods 3,423,834.39 17,376,808.71
208
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. party transactions –goods and services related parties (Continued)
(1) RelatedMajor transactions between the Group and its(Continued)
Sale of goods and rendering of services
For the six months For the six months
Related party Type of ransaction ended 30 June 2019 ended 30 June 2018
Sinopharm Holding Yunnan Co., Ltd. Sale of goods 3,291,886.51 5,713,012.18
Foshan Chanyixing Medicine Development Co
Ltd. Sale of goods 3,252,324.63 1,450,198.02
Sinopharm Holding Anhui Co., Ltd. Sale of goods 2,691,014.38 1,168,187.29
Sinopharm Holding Jinzhou Co., Ltd. Sale of goods 2,509,334.67 -
Sinopharm Holding Xuzhou Co., Ltd. Sale of goods 2,496,791.90 -
Sinopharm Holding Tianjin Co., Ltd. Sale of goods 2,043,046.86 1,029,758.40
China National Medicines Co., Ltd. Sale of goods 1,932,350.56 1,740,716.75
Sinopharm Holding Shanxi Co., Ltd. Sale of goods 1,927,565.82 2,577,305.96
Sinopharm Holding Jilin Co., Ltd. Sale of goods 1,861,781.97 1,172,196.27
Sinopharm Holding Dalian Co., Ltd. Sale of goods 1,833,913.00 1,263,047.36
Sinopharm Holding Xinjiang Special Drugs
Western Pharmaceutical Co., Ltd. Sale of goods 1,828,562.25 4,409,528.78
Sinopharm Holding Fujian Co., Ltd. Sale of goods 1,731,691.96 979,220.98
Sinopharm Group Southwest Medicine Co., Ltd. Sale of goods 1,580,662.42 1,006,172.43
Sinopharm Holding Hunan Co., Ltd. Sale of goods 1,476,158.08 1,308,950.82
Sinopharm Holding Anhui Pharmaceutical Co.,
Ltd. Sale of goods 1,436,139.10 -
Shanghai Liyi Drug Store Co.,Ltd Sale of goods 1,432,059.22 -
Hutchison Whampoa Sinopharm
Pharmaceuticals (Shanghai) Co., Ltd. Sale of goods 1,283,881.89 -
Yuxi Sinopharm Medicine Co., Ltd. Sale of goods 956,668.77 625,927.21
Sinopharm Holding Ningxia Co., Ltd. Sale of goods 772,293.60 240,539.93
Sinopharm Holding Dalian Hecheng Co., Ltd. Sale of goods 743,390.17 301,982.46
Sinopharm Holding Shenyang Co., Ltd. Sale of goods 608,363.96 103,846.57
Sinopharm Holding Gansu Co., Ltd. Sale of goods 505,887.62 1,353,030.00
Sinopharm Holding Wuxi Co., Ltd. Sale of goods 484,790.17 349,203.27
Shanghai Guoda Lingyun Pharmacy Co., Ltd. Sale of goods 425,714.65 540,476.78
Sinopharm Holding Wuhu Co., Ltd. Sale of goods 419,826.51 127,195.59
Sinopharm Holding Jiaozuo Co., Ltd. Sale of goods 406,784.27 -
209
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. party transactions –goods and services related parties (Continued)
(1) RelatedMajor transactions between the Group and its(Continued)
Sale of goods and rendering of services
For the six months For the six months
Related party Type of ransaction ended 30 June 2019 ended 30 June 2018
Sinopharm Holding Yancheng Co., Ltd. Sale of goods 382,851.04 -
Sinopharm Holding Honghe Co., Ltd. Sale of goods 377,186.11 9,595.25
Sinopharm Holding Tianjin North Medicine Co.,
Ltd. Sale of goods 363,748.93 58,775.86
Sinopharm Holding Inner Mongolia Co., Ltd. Sale of goods 326,327.82 239,130.68
Sinopharm Group Guangdong Medicine Device
Co., Ltd. Sale of goods 296,825.53 -
Sinopharm Group Shanxi Co., Ltd. Sale of goods 266,895.84 486,510.78
Sinopharm Holding Chengdu Co., Ltd. Sale of goods 252,754.20 215,685.18
Sinopharm Holding Qinghai Co., Ltd. Sale of goods 250,674.21 168,653.68
Sinopharm Holding Donghong Medical
(Shanghai) Co., Ltd. Sale of goods 225,250.43 448,887.64
Sinopharm Holding Tongren Co., Ltd. Sale of goods 197,968.78 21,011.20
Sinopharm Holding (Hubei) Hankou Pharmacy
Co., Ltd. Sale of goods 195,295.22 -
Nanchang Sinopharm Holding Guoyaotang
Pharmacy Co., Ltd. Sale of goods 173,403.11 -
Sinopharm Holding Guizhou Co., Ltd. Sale of goods 158,213.27 1,042,466.52
Sinopharm Holding Chongqing Taimin
Pharmaceutical Co., Ltd. Sale of goods 155,771.69 -
Sinopharm Holding Zunyi Co., Ltd. Sale of goods 146,542.78 35,054.94
Sinopharm Holding Taizhou Co., Ltd. Sale of goods 141,236.61 -
Shenzhen Qianda Medical Beauty Clinic Sale of goods 140,970.86 -
Sinopharm Holding Chongqing Co., Ltd. Sale of goods 138,748.70 145,147.69
Sinopharm Holding Hubei Hongyuan Co., Ltd. Sale of goods 132,556.02 97,162.40
Sinopharm Holding Fuzhou Co., Ltd. Sale of goods 131,753.26 6,927.14
Sinopharm Group Fengliaoxing Pharmacy
(Foshan) Co., Ltd. Sale of goods 128,687.69 -
Sinopharm Holding Jiangxi Co., Ltd. Sale of goods 123,135.25 371,671.87
Sinopharm Medical Instrument Guizhou Qiannan
Co., Ltd. Sale of goods 114,833.43 12,712.58
Sinopharm Fengliaoxing Medical Hospital Co.,
Ltd. Sale of goods 101,588.59 16,804.60
Sinopharm Holding Changzhou Medical Logistics
Center Co., Ltd. Sale of goods 86,668.69 175,352.41
Sinopharm Holding Jiangsu Co., Ltd. Sale of goods 76,013.68 -
Sinopharm Guangdong Medical Examination Co.,
Ltd. Sale of goods 73,203.54 -
210
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. party transactions –goods and services related parties (Continued)
(1) RelatedMajor transactions between the Group and its(Continued)
Sale of goods and rendering of services
For the six months For the six months
Related party Type of ransaction ended 30 June 2019 ended 30 June 2018
Sinopharm Holding Guizhou Medical Equiment
Co., Ltd. Sale of goods 70,073.94 133,404.19
Sinopharm Group Guangxi Medical Equipment
Co., Ltd. Sale of goods 66,013.12 -
Shanghai Compound Technology Medical
Devices Co., Ltd. Sale of goods 59,482.76 -
Sinopharm Medical Instrument Foshan Co., Ltd. Sale of goods 58,330.19 -
Sinopharm Guanai Yuankang Pharmacy (Haikou)
Co., Ltd. Sale of goods 55,763.79 -
Sinopharm Holding Changzhou Co., Ltd. Sale of goods 50,185.70 435,840.01
Sinopharm Holding Ulanqab Co., Ltd. Sale of goods 47,434.77 175,775.17
Sinopharm Holding Longyan Co., Ltd. Sale of goods 44,963.97 58,172.99
Sinopharm Holding Chuxiong Co., Ltd. Sale of goods 41,712.99 -
Sinopharm Holding Jilin Chain Store Co., Ltd. Sale of goods 38,234.48 91,435.98
Sinopharm Holding Deyang Co., Ltd. Sale of goods 36,771.21 -
Dongyuan accord pharmaceutical chain Co., Ltd. Sale of goods 30,868.27 39,393.65
Sinopharm Holding Anshun Co., Ltd. Sale of goods 21,688.95 -
Sinopharm Nanping Medical Instrument Co., Ltd. Sale of goods 19,993.91 -
Sinopharm Holding Ningde Co., Ltd. Sale of goods 19,818.67 23,864.90
Sinopharm Holding Liaocheng Co., Ltd. Sale of goods 15,779.79 15,596.82
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co., Ltd. Sale of goods 14,949.89 7,617.49
Sinopharm Zhuhai Medical Instrument Co., Ltd. Sale of goods 13,939.15 9,119.70
Sinopharm Holding Shanxi Jincheng Co., Ltd. Sale of goods 11,204.59 -
Sinopharm Holding Siping Co., Ltd. Sale of goods 9,998.28 26,548.13
Sinopharm Holding Hongrun Medical Business
Service (Shanghai) Co., Ltd. Sale of goods 9,884.46 19,240.32
China National Scientific Instruments & Materials
Imp/Exp Shenzhen Co., Ltd. Sale of goods 6,320.71 -
Sinopharm Group Fengliaoxing Traditional
Chinese Medical Center Foshan Nanhai Co., Ltd. Sale of goods 6,233.90 -
Sinopharm Jienuo Medical Treatment Sevice
Guangdong Co., Ltd. Sale of goods 3,590.16 -
Guoyao Lerentang Shijiazhuang Medical
Management Co., Ltd. Sale of goods 2,663.79 -
Sinopharm Holding Zhejiang Co., Ltd. Sale of goods - 921,282.05
Hubei Pharmaceutical Group Co., Ltd. Sale of goods - 853,130.68
211
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. party transactions –goods and services related parties (Continued)
(1) RelatedMajor transactions between the Group and its(Continued)
Sale of goods and rendering of services
For the six months For the six months
Related party Type of ransaction ended 30 June 2019 ended 30 June 2018
Sinopharm Holding Heilongjiang Co., Ltd. Sale of goods - 324,789.98
Sinopharm Holding Yongzhou Co., Ltd. Sale of goods - 203,544.77
Sinopharm Holding Huaian Co., Ltd. Sale of goods - 128,653.00
Sinopharm Holding Suzhou Co., Ltd. Sale of goods - 103,840.63
Sinopharm Group Zhijun(Shenzhen) Pingshan
Pharmaceutical Co., Ltd. Sale of goods - 79,279.28
Sinopharm Holding Lu'an Co., Ltd. Sale of goods - 66,987.18
Sinopharm Holding Nanchang Chain Store Co.,
Ltd. Sale of goods - 54,017.59
Sinopharm Holding Xinxiang Co., Ltd. Sale of goods - 34,164.62
Sinopharm Holding Huangshi Co., Ltd. Sale of goods - 34,025.78
Sinopharm Holding Jining Co., Ltd. Sale of goods - 19,035.54
Fujian Sinopharm Medical Instrument Co., Ltd. Sale of goods - 13,988.00
Sinopharm Lerentang Baoding Medicine Co., Ltd. Sale of goods - 12,991.45
Sinopharm Lerentang Hengshui Medicine Co.,
Ltd. Sale of goods - 12,108.38
Sinopharm Holding Hulun Buir Co., Ltd. Sale of goods - 4,570.00
Sinopharm Holding Putian Co., Ltd. Sale of goods (33,809.91) 64,610.68
Sinopharm Holding Quanzhou Co., Ltd. Sale of goods (87,055.63) -
Transport and
China National Medicines Co., Ltd. storage income 4,430,727.40 3,580,698.30
Transport and
Sinopharm Group Medicine Logistic Co., Ltd. storage income 401,376.93 294,804.62
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co., Ltd. Meal fee 308,882.00 294,180.00
Sinopharm Group Zhijun(Shenzhen) Pingshan Transport and
Pharmaceutical Co., Ltd. storage income 123,995.03 122,242.00
Transport and
Sinopharm Group Southwest Medicine Co., Ltd. storage income 82,001.72 -
Sinopharm Holding Biopharmaceutical (Tianjin) Consulting service
Co., Ltd. income 2,792.45 -
Consulting service
Sinopharm Holding Shanxi Co., Ltd. income 1,688.12 9,433.96
Consulting service
Guizhou Tongjitang Pharmaceutical Co., Ltd. income - 8,285.71
Consulting service
Winteam Pharmaceutical Group Ltd. income - 2,023.58
Sinopharm Holding Shanxi Instrument Branch
Co., Ltd. Other income - 1,132.08
212
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. party transactions –goods and services related parties (Continued)
(1) RelatedMajor transactions between the Group and its(Continued)
Sale of goods and rendering of services
For the six months For the six months
Related party Type of ransaction ended 30 June 2019 ended 30 June 2018
213
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(2) Related party transactions - leases
(a) As the lessor
Income from leases Income from leases
Type of assets
For the six months For the six months
under leases
ended 30 June 2019 ended 30 June 2018
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co., Ltd. Building 957,142.86 351,428.58
Shenzhen Zhijun Pharmaceutical Trade Co.,
Ltd. Building 285,714.30 285,714.30
China National Medicines Co., Ltd. Building 24,000.00 45,714.29
(b) As the lessee
Expense from leases Expense from leases
Type of assets
For the six months For the six months
under leases
ended 30 June 2019 ended 30 June 2018
Beijing Golden Elephant Fosun Pharmaceutical Building 6,670,660.92 5,461,904.76
Co., Ltd.
Sinopharm Group Medicine Logistic Co., Ltd. Equipment 3,750,000.00 3,750,000.00
Sinopharm Group Shanghai Co., Ltd. Building 3,721,698.57 3,790,426.48
Sinopharm Group Medicine Logistic Co., Ltd. Building 3,539,999.98 3,539,999.98
Lerentang Investment Group Co., Ltd. Building 3,354,162.22 2,277,892.99
Pingdingshan Pusheng Pharmaceutical Co., Building 2,405,696.37 1,277,732.57
Ltd.
Sinopharm Group Xinjiang Special Drugs Building 2,234,982.50 3,914,124.76
National Pharmaceutical Co., Ltd.
Sinopharm Holding Yangzhou Co., Ltd. Building 1,902,091.52 1,862,857.14
Hunan Minshengtang Investment Co., Ltd. Building 1,838,716.70 2,027,673.99
Linyi Medical Group Co., Ltd. Building 1,482,764.04 2,036,376.45
Guangdong Jiyuantang Development Co., Building 1,088,752.31 1,192,864.11
Ltd.
Nanjing Yuanguang Trading Co., Ltd. Building 855,468.84 866,794.89
Shaoguan Wujiang District Muyang Medicine Building 476,713.98 470,161.86
Information Consultant Co., Ltd.
Taishan Xiangranhui Trade Co., Ltd Building 456,054.17 451,963.88
Sinopharm Holding Xinjiang Xinte Karamay Building 277,303.54 184,253.18
Pharmaceutical Co., Ltd.
Sinopharm Group Building 267,553.06 259,915.02
214
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
Wang Yang Building 262,857.12 262,857.12
Sinopharm Holding Beijing Co., Ltd. Building 260,870.74 235,714.29
Shenyang Pharmaceutical Co., Ltd. Building 253,564.15 3,548,219.75
Zhang Zhenfang Building 214,062.49 402,499.98
215
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(2) Related party transactions – leases (Continued)
(b) As the lessee (continued)
Expense from leases Expense from leases
Type of assets For the six months For the six months
under leases ended 30 June 2019 ended 30 June 2018
Gu Jinhua Building 207,084.48 178,800.00
Beijing Sinopharm Tianyuan Real Estate &
Property Management Co., Ltd. Building 173,068.27 173,523.81
Hangzhou Xihu Business Group Corporation Building 145,986.38 132,823.81
China National Medicines Co., Ltd. Building 145,865.91 153,750.00
Sinopharm Xinjiang Pharmaceutical Co., Ltd. Building 136,369.86 130,208.30
Gu Haiqun Building 108,277.61 0.00
Shenzhen Jiufeng Investment Co., Ltd. Building 100,414.19 89,260.15
Taishan Qunkang Pharmacy Co., Ltd. Building 70,864.95 74,170.32
Sinopharm Holding Xinjiang Special Drugs
Kashgar Pharmaceutical Co., Ltd. Building 47,990.56 236,051.50
Sinopharm Holding Fujian Co., Ltd. Building 6,571.39 6,571.38
Sinopharm Holding Shanxi Co., Ltd. Building 0.00 234,017.16
Xinjiang Baitong Property Service Co., Ltd. Building 0.00 44,581.16
Sinopharm Group Zhijun(Shenzhen)
Pingshan Pharmaceutical Co., Ltd. Park 0.00 35,428.57
216
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(3) Related party transactions – Financing
Related party Amount Inception Maturity Note
Borrowed from
Discount on commercial
Group Financial Co. 43,428,873.45 22 April 2019 31 May 2019 acceptance notes
Group Financial Co. 40,197,120.84 17 April 2019 17 July 2019 Short-term borrowings
Discount on commercial
Group Financial Co. 38,384,946.67 24 January 2019 28 February 2019 acceptance notes
Group Financial Co. 37,311,327.27 22 May 2019 22 August 2019 Short-term borrowings
Discount on commercial
Group Financial Co. 33,815,106.08 18 March 2019 30 April 2019 acceptance notes
CNPGC 31,600,000.00 24 May 2017 24 May 2020 Long-term borrowings
Discount on commercial
Group Financial Co. 27,852,641.75 30 January 2019 30 April 2019 acceptance notes
Discount on commercial
Group Financial Co. 27,408,812.83 21 May 2019 30 June 2019 acceptance notes
Discount on commercial
Group Financial Co. 23,148,716.55 18 March 2019 25 May 2019 acceptance notes
Discount on commercial
Group Financial Co. 21,601,820.90 18 March 2019 31 May 2019 acceptance notes
Discount on commercial
Group Financial Co. 20,902,069.23 30 January 2019 28 March 2019 acceptance notes
Discount on commercial
Group Financial Co. 18,680,669.14 21 May 2019 31 July 2019 acceptance notes
Discount on commercial
Group Financial Co. 18,309,493.19 30 January 2019 29 March 2019 acceptance notes
Discount on commercial
Group Financial Co. 14,997,301.99 30 January 2019 09 May 2019 acceptance notes
Discount on commercial
Group Financial Co. 14,442,689.98 30 January 2019 25 March 2019 acceptance notes
Discount on commercial
Group Financial Co. 11,932,011.37 30 January 2019 26 April 2019 acceptance notes
Discount on commercial
Group Financial Co. 9,827,139.59 22 April 2019 09 August 2019 acceptance notes
Discount on commercial
Group Financial Co. 9,776,155.18 22 April 2019 25 June 2019 acceptance notes
Discount on commercial
Group Financial Co. 2,227,866.60 30 January 2019 28 June 2019 acceptance notes
26 September Discount on commercial
Group Financial Co. 2,115,440.26 22 April 2019 2019 acceptance notes
Discount on commercial
Group Financial Co. 2,037,126.50 30 January 2019 28 May 2019 acceptance notes
Group Financial Co. 1,628,019.46 18 March 2019 27 August 2019 Discount on commercial
217
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
Related party Amount Inception Maturity Note
Borrowed from
acceptance notes
Discount on commercial
Group Financial Co. 1,188,450.22 30 January 2019 26 June 2019 acceptance notes
Group Financial Co. 859,454.60 21 May 2019 26 August 2019 Discount on commercial
acceptance notes
Group Financial Co. 798,997.80 22 April 2019 26 July 2019 Discount on commercial
acceptance notes
Group Financial Co. 729,054.60 18 March 2019 26 June 2019 Discount on commercial
acceptance notes
218
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(4) Related party asset transfer
For the six months For the six months
Type of transaction
ended 30 June 2019 ended 30 June 2018
Sinopharm Holding Tianjin Binhai Pharmaceutical Co., Purchase of
Ltd. construction in progress - 21,794.87
(5) Other related party transactions
For the six months For the six months
ended 30 June 2019 ended 30 June 2018
(a) Remuneration for key management personnel 3,843,750.00 2,981,250.00
(b) Interest expense
For the six months For the six months
Related party Category ended 30 June 2019 ended 30 June 2018
Payment of notes discount
Group Financial Co. interest 2,615,234.17 3,411,652.84
China National Pharmaceutical Group Payment of entrusted loan
Corporation interest 641,469.02 641,469.02
Group Financial Co. Payment of loan interest 473,516.87 -
Sinopharm Holding Financing Lease Payment of financing
Co., Ltd. lease interest 177,850.56 623,402.17
Payment of non-recourse
Sinopharm Holding Financing Lease receivable factored
Co., Ltd. interest expense 63,750.00 -
Guorun Medical Supply Chain Services Payment of related parties
(Shanghai) Co., Ltd. loan interest - 1,778.67
3,971,820.62 4,678,302.70
(c) Interest income
For the six months For the six months
Related party Category ended 30 June 2019 ended 30 June 2018
Sinopharm Group Zhijun (Suzhou)
Pharmaceutical Co., Ltd. Entrusted loan interest 1,669,601.71 1,549,650.99
Group Financial Co. Deposit interest 145,659.27 387,479.46
1,815,260.98 1,937,130.45
219
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from related parties
Accounts receivable 30 June 2019 1 January 2019
Gross carrying Provision for Gross carrying Provision for
Related party amount bad debt amount bad debt
Foshan Chancheng Pharmaceutical Co.,
Ltd. 45,958,521.41 276,165.34 39,888,094.43 235,040.74
Sinopharm Group 40,401,102.06 - 32,263,115.51 -
Sinopharm Holding Hainan Co., Ltd. 9,869,915.19 - 6,607,589.69 -
Shanghai Beiyi Guoda pharmaceutical Co.
Ltd. 9,772,467.43 - 11,966,548.05 -
Sinopharm Health Online Co., Ltd. 7,991,221.08 - 6,543,624.21 -
Sinopharm Holding Sub Marketing Center
Co., Ltd. 4,943,166.98 - - -
Sinopharm holdings Beijing huahong co.,
Ltd 4,491,263.20 - 4,009,562.41 -
Shenzhen Heng Sheng Hosital 4,350,627.94 - 2,674,948.35 -
Beijing Golden Elephant Fosun
Pharmaceutical Co., Ltd. 4,350,308.37 - 5,372,873.84 -
Pudong New Area of Shanghai
Pharmaceutical Medicine Ltd. 4,175,729.23 - 3,839,268.45 -
Sinopharm Le-Ren-Tang Medicine Co., Ltd. 4,123,874.57 - 3,143,231.13 -
Sinopharm Lingyun Biopharmaceutical
(Shanghai) Co., Ltd. 4,092,864.80 - 3,986,543.21 -
Sinopharm Holding Beijing Co., Ltd. 3,345,842.50 - 888,815.16 -
Sinopharm Holding Hainan Hongyi Co., Ltd. 3,314,718.28 - 5,370,089.88 -
Foshan Chancheng District Central Hospital 3,160,081.13 44,928.58 2,440,447.52 12,753.61
Sinopharm Group (Tianjin) Eastern Bokang
Pharmaceutical Co., Ltd. 2,539,969.75 - 986,526.05 -
Sinopharm Holding Henan Co., Ltd. 2,447,128.74 - 1,036,327.62 -
Sinopharm Holding Shanghai Likang
Pharmaceutical Co., Ltd. 2,196,272.00 - 1,178,605.80 -
Sinopharm Holding Shandong Co., Ltd. 2,037,494.51 - 210,969.36 -
Foshan Chanyixing Medicine Development
Co Ltd. 1,865,947.36 6,667.32 1,743,775.57 9,377.72
Sinopharm Holding Wenzhou Co., Ltd. 1,710,031.20 - 1,261,643.94 -
China National Medicines Co., Ltd. 1,604,941.84 - 1,454,237.32 -
Sinopharm Sichuan Pharmaceutical Co.,
Ltd. 1,424,513.17 - 1,081,909.20 -
Sinopharm Holding Yangzhou Co., Ltd. 1,366,338.68 - 540,349.73 -
Shanghai Merro Pharmaceutical Co., Ltd. 1,348,428.86 - 884,486.53 -
Sinopharm Holding Xuzhou Co., Ltd. 1,272,626.48 - 34,941.30 -
220
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
Accounts receivable 30 June 2019 1 January 2019
Sinopharm Holding Anhui Pharmaceutical
Co., Ltd. 1,095,210.16 - - -
Sinopharm Holding Shanxi Co., Ltd. 1,044,424.48 - 1,028,660.04 -
Sinopharm Holding Yunnan Co., Ltd. 852,406.76 - 27,737.44 -
221
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from related parties (Continued)
Accounts receivable (Continued) 30 June 2019 1 January 2019
Gross carrying Provision for Gross carrying Provision for
Related party amount bad debt amount bad debt
Sinopharm Holding Tianjin Co., Ltd. 736,401.04 - 200,407.20 -
Sinopharm Holding Jilin Co., Ltd. 638,937.96 - 1,499,742.50 -
Sinopharm Holding Nantong Co., Ltd. 637,245.24 - 66,541.32 -
Sinopharm Holding Fujian Co., Ltd. 602,589.12 - - -
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co., Ltd. 599,179.84 - 772,488.31 -
Sinopharm Holding Donghong Medical
(Shanghai) Co., Ltd. 596,543.86 - 164,566.12 -
Sinopharm Holding Anhui Co., Ltd. 583,647.00 - 221,425.72 -
Sinopharm Holding Xinjiang Special Drugs
Western Pharmaceutical Co., Ltd. 552,496.16 - 1,704,316.57 -
Sinopharm Holding Hunan Co., Ltd. 537,470.30 - 569,264.26 -
Sinopharm Holding Hubei Co., Ltd. 457,991.94 - 68,314.16 -
Sinopharm Holding Shanxi Co., Ltd. 368,536.28 - 68,361.75 -
Yuxi Sinopharm Medicine Co., Ltd. 365,065.92 - 182,532.96 -
Sinopharm Holding Dalian Co., Ltd. 357,662.16 - 144,334.03 -
Shanghai Guoda Lingyun Pharmacy Co.,
Ltd. 357,524.59 - 17,535.13 -
Sinopharm Holding Dalian Hecheng Co.,
Ltd. 286,270.00 - 126,684.00 -
Sinopharm Holding Chengdu Co., Ltd. 280,800.00 - - -
Sinopharm Group Southwest Medicine Co.,
Ltd. 248,554.12 - 5,090,863.70 -
Sinopharm Group Medicine Logistic Co.,
Ltd. 209,724.91 - 139,697.93 -
Sinopharm Holding (Hubei) Hankou
Pharmacy Co., Ltd. 201,154.08 - - -
Sinopharm Jienuo Medical Treatment
Sevice Guangdong Co., Ltd. 124,568.18 - 120,403.60 -
Sinopharm Holding Qinghai Co., Ltd. 110,520.40 - 96,319.48 -
Sinopharm Holding Yancheng Co., Ltd. 108,561.80 - - -
Sinopharm Holding Ningxia Co., Ltd. 100,896.00 - - -
Sinopharm Holding Gansu Co., Ltd. 94,147.34 - 176,910.34 -
Sinopharm Holding Shenyang Co., Ltd. 84,504.52 - 123,126.34 -
Sinopharm Holding Tianjin North Medicine
Co., Ltd. 78,465.54 - 91,390.41 -
Sinopharm Group Fengliaoxing Pharmacy
(Foshan) Co., Ltd. 69,005.33 453.65 - -
Sinopharm Holding Inner Mongolia Co., Ltd. 63,160.96 - 90,159.36 -
222
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from related parties (Continued)
Accounts receivable (Continued) 30 June 2019 1 January 2019
Gross carrying Provision for Gross carrying Provision for
Related party amount bad debt amount bad debt
Sinopharm Group Zhijun(Shenzhen)
Pingshan Pharmaceutical Co., Ltd. 59,076.00 - 39,618.00 -
Sinopharm Holding Honghe Co., Ltd. 58,831.14 - - -
Sinopharm Holding Heilongjiang Co., Ltd. 50,000.00 50,000.00 50,000.00 -
Sinopharm Guangdong Medical
Examination Co., Ltd. 41,360.00 - - -
Sinopharm Holding Jiangxi Co., Ltd. 22,606.08 - - -
Shanghai Liyi Drug Store Co.,Ltd 19,278.81 - 76,366.48 -
Sinopharm Holding Zunyi Co., Ltd. 18,358.20 - - -
Sinopharm Holding Changzhou Co., Ltd. 15,557.40 - - -
Sinopharm Holding Fuzhou Co., Ltd. 15,195.60 - - -
Sinopharm Holding Chuxiong Co., Ltd. 13,132.80 - - -
Sinopharm Fengliaoxing Medical Hospital
Co., Ltd. 12,020.26 74.54 16,836.25 136.35
Nanchang Sinopharm Holding Guoyaotang
Pharmacy Co., Ltd. 11,448.00 - - -
Sinopharm Holding Guizhou Co., Ltd. 8,307.00 - 16,026.00 -
Sinopharm Holding Wuxi Co., Ltd. 6,818.00 - 157,614.80 -
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co., Ltd. 6,669.00 - 1,070.60 -
Sinopharm Holding Hongrun Medical
Business Service (Shanghai) Co., Ltd. 5,900.96 - 1,300.54 -
Sinopharm Holding Ulanqab Co., Ltd. 3,933.10 - - -
Sinopharm Guanai Yuankang Pharmacy
(Haikou) Co., Ltd. 3,366.10 - 1,488.00 -
Sinopharm Group Fengliaoxing Traditional
Chinese Medical Center Foshan Nanhai
Co., Ltd. 1,526.02 4.78 695.70 0.94
Sinopharm Group Shanxi Co., Ltd. 1.60 - 58,518.00 -
Sinopharm Xinxiang Chain Store Co., Ltd. - - 2,064.20 -
Sinopharm Holding Changzhou Medical - - 144,600.00 -
Logistics Center Co., Ltd.
Sinopharm Medical Instrument Foshan Co., - - 11,904.00 -
Ltd.
Hubei Pharmaceutical Group Co., Ltd. - - 61,959.91 -
223
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from related parties (Continued)
Notes receivable 30 June 2019 1 January 2019
Gross carrying Provision for Gross carrying Provision for bad
Related party amount bad debt amount debt
Sinopharm Holding Financing Lease Co.,
Ltd. 13,210,232.00 - 202,456,075.93 -
Sinopharm Holding Hainan Co., Ltd. 3,896,828.51 - 12,035,409.02 -
Sinopharm Le-Ren-Tang Medicine Co.,
Ltd. 2,500,000.00 - 1,148,409.56 -
Sinopharm Holding Hainan Hongyi Co.,
Ltd. 1,528,421.30 - 10,234,483.82 -
Sinopharm Holding Hubei Co., Ltd. 1,008,876.24 - - -
Sinopharm Holding Nantong Co., Ltd. 750,000.00 - - -
Sinopharm Holding Xinjiang Special Drugs
Western Pharmaceutical Co., Ltd. 472,387.20 - - -
Sinopharm Holding Gansu Co., Ltd. 239,670.00 - 163,198.80 -
Sinopharm Holding Shanxi Co., Ltd. - - 1,077,861.97 -
Sinopharm Holding Shenyang Co., Ltd. - - 422,520.00 -
Sinopharm Holding Shanxi Co., Ltd. - - 359,459.04 -
Sinopharm Holding Sub Marketing Center
Co., Ltd. - - 3,144,392.00 -
Sinopharm Holding Henan Co., Ltd. - - 1,032,584.76 -
Sinopharm Holding Anhui Co., Ltd. - - 390,062.21 -
Sinopharm Holding Shandong Co., Ltd. - - 1,241,661.12 -
Sinopharm Holding Fujian Co., Ltd. - - 400,000.00 -
Sinopharm Holding Ningxia Co., Ltd. - - 176,568.00 -
Sinopharm Holding Jilin Co., Ltd. - - 274,058.00 -
Sinopharm Holding Chengdu Co., Ltd. - - 201,332.00 -
Other receivables 30 June 2019 1 January 2019
Gross carrying Provision for Gross carrying Provision for bad
Related party amount bad debt amount debt
Sinopharm Group Zhijun(Suzhou)
Pharmaceutical Co., Ltd. 44,000,000.00 2,200,000.00 44,000,000.00 -
Sinopharm Group Medicine Logistic Co.,
Ltd. 6,226,734.36 - 2,494,174.31 -
Shyndec Pharmaceutical 5,624,940.00 - 7,913,430.00 -
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co., Ltd. 385,381.65 - 100,000.00 -
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co., Ltd. 234,693.89 600.00 109,774.26 600.00
Sinopharm Lerentang Hebei Medical
Instrument Trade Co., Ltd. 48,493.16 - 48,493.16 -
224
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
Sinopharm Holding Tianjin Co., Ltd. 41,100.00 - - -
Sinopharm Group 13,416.00 - - -
225
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from related parties (Continued)
Other receivables (Continued) 30 June 2019 1 January 2019
Gross carrying Provision for Gross carrying Provision for bad
Related party amount bad debt amount debt
Sinopharm Holding Sub Marketing Center
Co., Ltd. 10,990.00 - - -
Wuhan Zhonglian Pharmaceutical Group
Co., Ltd. 5,000.00 1,000.00 5,000.00 1,000.00
Sinopharm Holding Fujian Co., Ltd. 3,476.39 - 5,476.34 -
Sinopharm Holding Jiaozuo Co., Ltd. - - 30,171.00 -
Henan Wanxitang Pharmacy Co., Ltd. - - 1,098,981.30 -
Sinopharm Health Online Co., Ltd. - - 81,755.36 -
Sinopharm Group Medicine Logistic Co.,
Ltd. Guangzhou Branch - - 18,650.00 -
Advances to suppliers 30 June 2019 1 January 2019
Gross carrying Provision for Gross carrying Provision for bad
Related party amount bad debt amount debt
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co., Ltd. 1,628,396.28 - 1,643,251.42 -
Chongqing Yaoyou Pharmaceutical Co.,
Ltd. 1,097,717.47 - 931,286.48 -
Sinopharm Group 760,415.14 - 2,308,319.33 -
Guizhou Tongjitang Pharmaceutical Co.,
Ltd. 446,109.64 - 227,175.58 -
Sinopharm Holding Xinjiang Special Drugs
Kashgar Pharmaceutical Co., Ltd. 242,701.50 - - -
Sinopharm Holding Xinjiang Xinte
Karamay Pharmaceutical Co., Ltd. 230,666.79 - - -
Sichuan Hexin Pharmaceutical Co., Ltd. 174,960.00 - - -
Anhui Jingfang Pharmaceutical Co., Ltd. 146,744.67 - 45,611.47 -
Sinopharm Weiqida Pharmaceutical Co.,
Ltd. 140,382.00 - - -
Chengdu Rongsheng Pharmacy Co., Ltd. 122,000.00 - 1,416,622.63 -
Beijing Sinopharm Tianyuan Real Estate &
Property Management Co., Ltd. 82,800.00 - 78,857.14 -
Sinopharm Yixin Pharmaceutical Co., Ltd. 81,152.00 - - -
China National Medicines Co., Ltd. 78,750.00 - 78,750.00 -
Chengdu Institute of Biological Products
Co.,Ltd. 64,979.60 - 48,734.70 -
Sinopharm Group Guorui Medicine Co.,
Ltd. 63,310.27 - - -
Shyndec Pharmaceutical 56,281.48 - 57,838.35 -
Shenzhen Wanwei Medicine Trading Co.,
Ltd. 50,658.00 - - -
Jinzhou AoHong Pharmaceuticals Co., 33,040.00 - 16,520.00 -
226
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
Ltd.
Sinopharm Group Yibin Pharmaceuticals
Co., Ltd. 27,085.38 - 15,655.31 -
X. Related party relationships and transactions (Continued)
6. Amounts due from related parties (Continued)
Advances to suppliers(Continued) 30 June 2019 1 January 2019
Gross carrying Provision for Gross carrying Provision for bad
Related party amount bad debt amount debt
Guilin South pharmaceutical Co., Ltd. 26,524.88 - 10,989.56 -
Shanghai Chaohui Pharmaceutical Co., 21,646.80 - - -
Ltd.
Sinopharm Xinjiang Korla Pharmaceutical 20,279.70 - 282,467.38 -
Co., Ltd.
Jiangxi Erye Medicine Marketing Co., Ltd. 16,726.80 - 729,789.16 -
Shantou Jinshi Powder Injection Co., Ltd. 14,889.93 - - -
Sinopharm Holding Sub Marketing Center 14,885.06 - - -
Co., Ltd.
Taishan Qunkang Pharmacy Co., Ltd. 13,150.07 - - -
Shandong Lu Ya Pharmaceutical Co., Ltd. 11,436.42 - 1,412.52 -
Sinopharm Xingsha Pharmaceuticals 9,560.00 - 1,846.55 -
(Xiamen) Co., Ltd.
Suzhou Erye Pharmaceutical Limited 9,242.76 - - -
Company
Winteam Pharmaceutical Group Ltd. 8,877.09 - 9,346.82 -
Sinopharm Group Zhijun(Shenzhen) 5,812.50 - 139,392.00 -
Pharmaceutical Co., Ltd.
Sinopharm Holding Jilin Co., Ltd. 4,267.77 - - -
Sinopharm Group Zhijun(Shenzhen) 778.62 - - -
Pingshan Pharmaceutical Co., Ltd.
Jiangsu Fuxing Pharmaceutical Trading 81.08 - 81.08 -
Co., Ltd
Sinopharm Holding Shanxi Co., Ltd. - - 3,890,993.71 -
Sinopharm Holding Shanxi Co., Ltd. - - 3,330,287.42 -
Sinopharm Holding Shanxi Lvliang Co., - - 660,000.00 -
Ltd.
Sinopharm Holding Beijing Co., Ltd. - - 123,809.52 -
Sinopharm Holding Fujian Co., Ltd. - - 225.81 -
Xinjiang Baitong Property Service Co., Ltd. - - 16,856.89 -
Sinopharm Group Guizhou Blood Products - - 536,000.00 -
Co., Ltd.
Sinopharm Xinjiang Pharmaceutical Co., - - 45,432.69 -
Ltd.
Shanghai Modern Hasen (Shangqiu) - - 103,503.41 -
Pharmaceutical Co., Ltd.
Shanghai Shyndec Pharmaceutical - - 609,418.22 -
Marketing Co., Ltd.
Sinopharm Chuan Kang Pharmaceutical - - 346,772.59 -
227
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from related parties (Continued)
Advances to suppliers(Continued) 30 June 2019 1 January 2019
Gross carrying Provision for Gross carrying Provision for bad
Related party amount bad debt amount debt
Co., Ltd.
Fresenius Kabi Huarui Pharmaceuticals - - 1,231.58 -
Co., Ltd.
Shenyang Hongqi Pharmaceutical Co., - - 237,150.00 -
Ltd.
Linyi Medical Group Co., Ltd. - - 775,396.82 -
Hunan Minshengtang Investment Co., Ltd. - - 3,349,268.77 -
Taishan Xiangranhui Trade Co., Ltd - - 39,450.05 -
Nanjing Yuanguang Trading Co., Ltd. - - 169,697.02 -
6. Amounts due to related parties
Related party 30 June 2019 1 January 2019
Accounts payable
Sinopharm Holding Sub Marketing Center 195,937,772.42 104,262,822.63
Co., Ltd.
China National Medicines Co., Ltd. 62,209,906.16 48,352,935.82
Sinopharm Holding Shanxi Co., Ltd. 51,758,102.97 945,054.21
Sinopharm Holding Shanxi Co., Ltd. 31,832,547.24 -
Sinopharm Group Xinjiang Special Drugs 28,675,206.92 18,259,929.53
National Pharmaceutical Co., Ltd.
Fresenius Kabi Huarui Pharmaceuticals 24,077,737.27 10,470,003.68
Co., Ltd.
Sinopharm Le-Ren-Tang Medicine Co., 21,572,062.09 -
Ltd.
Sinopharm Group 21,374,852.12 13,732,261.69
Jiangsu Wanbang Pharmacy Marketing 21,363,008.26 15,038,618.86
Co., Ltd.
Lanzhou Biotechnology Development Co., 20,100,000.00 -
Ltd.
Sinopharm Holding Lunan Co., Ltd. 16,885,035.59 71,599.97
Sinopharm Holding Shenyang Co., Ltd. 11,151,742.57 4,015,953.59
Sinopharm Holding Inner Mongolia Co., 10,342,153.14 2,225,947.78
Ltd.
Shenzhen Main Luck Pharmaceutical Co., 9,804,573.26 8,565,744.21
Ltd.
Sinopharm Holding Yangzhou Co., Ltd. 9,362,416.32 7,630,403.88
Sinopharm Holding Lerentang 8,517,232.26 8,402,288.43
Pharmaceutical Co., Ltd.
Tibet Yaoyou Medicines Co.,Ltd. 8,066,785.64 8,346,619.80
Sinopharm Holding Hubei Co., Ltd. 7,380,255.63 -
Jinzhou AoHong Pharmaceuticals Co., 7,121,913.42 2,422,868.00
228
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from related parties (Continued)
Advances to suppliers(Continued) 30 June 2019 1 January 2019
Gross carrying Provision for Gross carrying Provision for bad
Related party amount bad debt amount debt
Ltd.
Sinopharm Holding Beijing Co., Ltd. 6,747,587.35 7,478,006.36
Sinopharm Lerentang Shijiazhuang 6,179,335.72 183,737.13
Medicine Co., Ltd.
Winteam Pharmaceutical Group Ltd. 6,143,556.76 6,294,519.81
Sinopharm Holding Fujian Co., Ltd. 5,942,354.78 4,484,641.23
229
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Accounts payable (Continued)
Sinopharm Group Zhijun(Shenzhen) 5,480,684.06 3,550,454.25
Pingshan Pharmaceutical Co., Ltd.
Sinopharm Group Zhijun(Shenzhen) 4,903,616.19 2,922,052.73
Pharmaceutical Co., Ltd.
Sinopharm Holding Jiangsu Co., Ltd. 4,884,948.33 6,745,253.51
Shenzhen Wanwei Medicine Trading Co., 4,704,357.80 4,219,138.81
Ltd.
Chongqing Yaoyou Pharmaceutical Co., 4,440,477.23 3,506,823.08
Ltd.
Sinopharm Holding Shandong Co., Ltd. 3,795,662.54 10,865.00
Sinopharm Holding Pingdingshan Co., Ltd. 3,638,807.19 3,603,335.66
Sinopharm Holding Xinjiang Special Drugs 3,182,288.62 795,448.03
Western Pharmaceutical Co., Ltd.
Yichang Humanwell Pharmaceutical Co., 3,022,607.79 1,936,090.54
Ltd.
Sinopharm Holding Xiamen Co., Ltd. 2,812,274.62 1,710,756.72
Sinopharm Holding Changzhou Co., Ltd. 2,732,668.55 1,484,634.49
Beijing Huasheng Pharmaceutical 2,630,700.01 637.01
Biotechnology Development Co., Ltd.
Sinopharm Holding Shanghai Likang 2,493,666.00 1,755,209.60
Pharmaceutical Co., Ltd.
Sinopharm Holding Ningxia Co., Ltd. 2,423,060.64 3,007,737.39
Sinopharm Lerentang Hebei Medical 2,265,517.01 1,519,045.91
Instrument Trade Co., Ltd.
Sinopharm Xingsha Pharmaceuticals 2,257,975.91 966,925.12
(Xiamen) Co., Ltd.
Henan Wanxitang Pharmacy Co., Ltd. 2,041,958.50 2,053,637.44
China Otsuka Pharmaceutical Co., Ltd. 1,959,904.38 1,571,696.86
Sinopharm Holding Tongliao Co., Ltd. 1,758,793.98 872,644.61
Sichuan Hexin Pharmaceutical Co., Ltd. 1,685,255.64 454,536.00
Jiangxi Erye Medicine Marketing Co., Ltd. 1,673,658.34 262,590.49
Sinopharm Holding Heilongjiang Co., Ltd. 1,478,359.09 922,059.45
Sinopharm holdings Beijing huahong co., 1,373,387.43 1,498,601.00
Ltd
Sinopharm Yixin Pharmaceutical Co., Ltd. 1,339,719.99 175,855.31
Jiangsu Fuxing Pharmaceutical Trading 1,274,138.60 549,104.40
Co., Ltd
Sinopharm Holding Henan Co., Ltd. 1,265,401.40 1,441,223.83
Sinopharm Holding Jinan Co., Ltd. 1,251,027.35 189,250.47
Sinopharm Group Rongsheng 1,225,702.70 398,911.58
Pharmaceutical Co., Ltd.
Shenyang Hongqi Pharmaceutical Co., 1,162,650.62 1,191,792.10
Ltd.
230
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Accounts payable (Continued)
Sinopharm Holding Wuxi Co., Ltd. 971,301.75 492,702.04
Sinopharm Holding Fuzhou Co., Ltd. 955,698.95 328,729.69
Sinopharm Holding Beijing Kangchen 926,405.95 917,154.80
Bio-Pharmaceutical Co., Ltd.
Beijing Golden Elephant Fosun 891,429.22 1,050,690.44
Pharmaceutical Co., Ltd.
Sinopharm Holding Changzhou Medical 853,893.17 3,080,381.47
Logistics Center Co., Ltd.
Hunan Dongting Pharmaceutical Co., Ltd. 795,952.06 265,365.25
Shyndec Pharmaceutical 696,904.24 511,528.32
Shanghai Chaohui Pharmaceutical Co., 694,598.86 311,797.36
Ltd.
Sinopharm Holding Hulun Buir Co., Ltd. 661,633.04 364,441.22
Chengdu Rongsheng Pharmacy Co., Ltd. 657,794.89 1,947,271.88
Chengdu Institute of Biological Products 655,200.00 370,800.00
Co.,Ltd.
Sinopharm Holding Suzhou Co., Ltd. 644,244.31 1,871,807.98
Sinopharm Holding Xinjiang Xinte 611,742.48 1,133,803.05
Karamay Pharmaceutical Co., Ltd.
China National Pharmaceutical Industry 588,962.54 363,778.78
Co., Ltd.
Sinopharm Holding Hainan Co., Ltd. 558,876.10 72,738.00
Guizhou Tongjitang Pharmaceutical Co., 558,859.22 342,846.28
Ltd.
Sinopharm Holding Donghong Medical 498,790.10 213,020.90
(Shanghai) Co., Ltd.
Sinopharm Holding Changsha Co., Ltd. 481,119.66 -
Huayi Pharmaceutical Co., Ltd. 473,024.00 961,440.00
Suzhou Erye Pharmaceutical Limited 446,987.01 278,341.97
Company
Sinopharm Holding Xinjiang Special Drugs 445,108.34 350,668.16
Kashgar Pharmaceutical Co., Ltd.
Sinopharm Group Yibin Pharmaceuticals 431,253.60 150,034.94
Co., Ltd.
Foshan Fengliaoxing Pharmaceutical Co., 424,687.33 1,254,306.67
Ltd.
Sinopharm Group Southwest Medicine 401,710.17 194,982.00
Co., Ltd.
Wuhan Zhonglian Pharmaceutical Group 385,312.50 560,483.58
Co., Ltd.
Sinopharm Holding Hunan Co., Ltd. 362,310.86 7,718.24
Sinopharm Holding Lianyungang Co., Ltd. 353,590.00 276,118.64
Sinopharm Fengliaoxing (Foshan) 326,508.24 149.02
Medicines Co., Ltd.
Sinopharm Lingyun Biopharmaceutical 318,353.90 165,476.77
231
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Accounts payable (Continued)
(Shanghai) Co., Ltd.
Shanghai Transfusion Technology Co., 311,860.00 352,100.00
Ltd.
Sinopharm Chuan Kang Pharmaceutical 310,881.30 472,481.64
Co., Ltd.
Sinopharm Holding Jinzhou Co., Ltd. 304,289.19 530,995.29
Jiangsu Huanghe Pharmaceutical Co., Ltd. 284,275.55 261,207.05
Sinopharm Holding Yangzhou Medical 282,295.93 55,877.68
Treatment Equipment Co., Ltd.
Sinopharm Holding Putian Co., Ltd. 274,267.65 7,144.64
Sinopharm Group Medicine Logistic Co., 267,956.64 -
Ltd.
Sinopharm Holding Zhihuiminsheng 266,517.35 -
(Tianjin) Pharmaceutical Co., Ltd.
Sinopharm Holding Dezhou Co., Ltd. 251,966.42 233,602.84
Sinopharm Group Guorui Medicine Co., 241,407.19 1,057,129.20
Ltd.
Sinopharm Holding Tianjin Co., Ltd. 233,292.17 15,615.31
Sinopharm Group (Tianjin) Eastern 231,523.37 -
Bokang Pharmaceutical Co., Ltd.
Sinopharm Holding Yancheng Co., Ltd. 201,484.85 190,168.37
Sinopharm Holding Shanxi Zhidekang 165,906.67 139,969.67
Medicine Co., Ltd.
Shanghai Merro Pharmaceutical Co., Ltd. 161,072.33 90,275.31
Sinopharm Holding Hunan Pharmaceutical 160,457.71 -
Development Co., Ltd.
Anhui Jingfang Pharmaceutical Co., Ltd. 148,041.15 165,171.12
Sinopharm Holding Anhui Co., Ltd. 139,702.67 18,589.18
Foshan Dezhong Pharmaceutical Co., Ltd. 139,274.51 98,835.01
Sinopharm Holding Dalian Co., Ltd. 136,272.27 182,516.75
Sinopharm Holding Bayannaoer Co., Ltd. 131,992.42 -
China National Pharmaceutical Foreign 122,930.63 122,930.63
Trade Corporation
Sinopharm Shantou Jinshi Pharmaceutical 120,579.21 102,693.04
Co., Ltd.
Sinopharm Holding Biopharmaceutical 108,541.17 20,509.50
(Tianjin) Co., Ltd.
Pudong New Area of Shanghai 106,921.13 91,493.10
Pharmaceutical Medicine Ltd.
China Medical Equipment Shandong Co., 106,382.80 -
Ltd.
Sinopharm Liaoning Medical Equipment 102,585.59 -
Co., Ltd.
The Fourth Pharmaceutical Co., Ltd. of 92,151.64 97,099.70
Zhonglian Group
232
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Accounts payable (Continued)
Sinopharm Holding Taizhou Co., Ltd. 76,424.00 99,508.00
Sinopharm Group Shanxi Medical Devices 75,016.66 -
Co., Ltd.
Sinopharm Holding Zhejiang Co., Ltd. 72,393.66 58,508.35
Shanghai Modern Hasen (Shangqiu) 67,745.54 57,148.85
Pharmaceutical Co., Ltd.
Sinopharm Holding Yangzhou Biological 64,687.73 50,162.16
Products Co., Ltd.
Shandong Lu Ya Pharmaceutical Co., Ltd. 52,819.07 52,819.07
Sinopharm Xinjiang Pharmaceutical Co., 49,772.38 9,720.00
Ltd.
Sinopharm Holding Fuzhou Medical 46,000.00 -
Devices Co., Ltd.
Sinopharm Holding Nanjing Wende 44,682.80 102,437.80
Pharmaceutical Co.,Ltd.
Sinopharm Holding Ulanqab Co., Ltd. 44,330.00 61,246.80
Shantou Jinshi Powder Injection Co., Ltd. 39,838.05 245,352.00
Sinopharm Holding Sanyi Medicine 33,085.44 25,483.57
(Wuhu) Co., Ltd.
Sinopharm Holding Rizhao Co., Ltd. 32,873.67 10,236.15
Beijing Huamiao Pharmaceutical Co., Ltd. 29,912.02 372,103.86
Sinopharm Holding Dalian Hecheng Co., 28,687.56 -
Ltd.
Guangdong Medi-World Pharmaceutical 27,719.91 297,576.35
Co., Ltd.
Sinopharm Holding Quanzhou Co., Ltd. 26,085.88 62,947.60
Sinopharm Holding Shanxi Mingdikang 24,871.11 27,215.64
Medicine Co., Ltd.
Sinopharm Group Zhijun(Suzhou) 22,800.00 -
Pharmaceutical Co., Ltd.
Sinopharm Holding Yongzhou Co., Ltd. 19,809.36 19,858.72
Sinopharm Group Shanghai Medicine 16,603.02 16,603.02
Device Co., Ltd.
Sinopharm Holding Liaocheng Co., Ltd. 16,197.93 16,197.93
Sinopharm Holding Beijing Tianxing Puxin 13,891.78 84,524.54
Biological Medical Co., Ltd.
Sinopharm Holding Zhangzhou 11,760.00 -
Pharmaceutical Co., Ltd.
Sinopharm Group Shanxi Co., Ltd. 10,144.80 -
Sinopharm Group Anhui Medical Devices 5,200.00 -
Co., Ltd.
Changchun Changsheng Gene 3,017.20 1,492.91
Pharmaceutical Co., Ltd.
Sinopharm Holding Ordos Co., Ltd. 1,771.20 1,771.20
Sinopharm Holding Shanxi Jincheng Co., 1,659.94 3,846.13
233
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Accounts payable (Continued)
Ltd.
Sinopharm Prospect Dentech (Beijing) 1,461.99 1,536.00
Co., Ltd.
Guilin South pharmaceutical Co., Ltd. 1,210.43 1,210.80
Sinopharm Holding Huaideju 1,113.85 1,113.85
Pharmaceutical (Xiamen) Co., Ltd.
Guizhou Tongjitang Pharmacy Chain Co., 991.50 -
Ltd.
Shenzhen Zhijun Pharmaceutical Trade 534.20 534.20
Co., Ltd.
Shanghai Shyndec Pharmaceutical 106.76 106.76
Marketing Co., Ltd.
Chongqing Haisiman Pharmaceutical Co., 101.91 101.91
Ltd.
Sinopharm Holding Chongqing Co., Ltd. 45.00 45.00
Linyi Medical Group Co., Ltd. 10.47 10.47
Sinopharm Holding Xinyu Co., Ltd. 0.01 0.01
Sinopharm Holding Jilin Co., Ltd. - -
Sinopharm Holding Shanxi Instrument - 6,309,208.47
Branch Co., Ltd.
Sinopharm Holding Tianjin Distribution - 35.32
Center Co., Ltd.
Sinopharm Holding Zhangzhou Co., Ltd. - 5,472.50
Sinopharm Sichuan Pharmaceutical Co., - 2,741.40
Ltd.
Sichuan Jiangyouzhongbafuzi Technology - 80,000.00
Development Co., Ltd.
Lanzhou Institute of Biological Products - 180,000.00
Co., Ltd.
Sinopharm Wuhan blood products Co., - 170,387.93
Ltd.
Hutchison Whampoa Sinopharm - 255,089.90
Pharmaceuticals (Shanghai) Co., Ltd.
Sinopharm ShanXi Ruifulai - 63,081.60
Pharmaceutical Co., Ltd.
Jiangsu Lianhuan Pharmaceutical Co., - 1,321,298.26
Ltd.
Qinghai Pharmaceutical Factory Co., Ltd. - 32,970.00
Jingfukang Pharmaceutical Group Co., - 184,438.44
Ltd.
Shanghai Sinopharm Pharmaceutical Co., - 92,610.00
Ltd.
Fujian Chentian Jinling Pharmaceutical - 505,555.00
Co., Ltd.
234
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Accounts payable (Continued)
Related party 30 June 2019 1 January 2019
Notes payable
Sinopharm Holding Sub Marketing Center 116,044,638.24 230,067,443.17
Co., Ltd.
Sinopharm Holding Shenyang Co., Ltd. 65,065,373.01 76,894,045.21
Sinopharm Holding Inner Mongolia Co., 25,122,678.38 20,459,755.01
Ltd.
Sinopharm Group Xinjiang Special Drugs 18,119,677.13 13,887,657.53
National Pharmaceutical Co., Ltd.
Sinopharm Holding Shanxi Co., Ltd. 7,725,000.00 67,926,610.30
235
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Notes payable (Continued)
Sinopharm Holding Fujian Co., Ltd. 7,114,576.43 7,011,034.30
Sinopharm Holding Lerentang 6,824,078.95 14,650,495.82
Pharmaceutical Co., Ltd.
Chongqing Yaoyou Pharmaceutical Co., 6,503,471.90 5,538,258.30
Ltd.
China National Medicines Co., Ltd. 5,851,346.28 26,654,608.10
Sinopharm Holding Xiamen Co., Ltd. 5,423,216.11 5,361,959.66
Chengdu Rongsheng Pharmacy Co., Ltd. 5,041,000.00 2,673,500.00
Lanzhou Biotechnology Development Co., 4,860,000.00 3,000,000.00
Ltd.
Sinopharm Lerentang Shijiazhuang 4,185,619.88 8,148,267.06
Medicine Co., Ltd.
Sinopharm Holding Jinzhou Co., Ltd. 2,493,839.62 1,611,340.65
Jiangsu Wanbang Pharmacy Marketing 2,439,745.89 4,817,408.42
Co., Ltd.
Sinopharm Holding Shanxi Co., Ltd. 2,082,000.00 18,340,013.80
Sinopharm Holding Hunan Co., Ltd. 2,043,558.46 3,114,143.15
Sinopharm Group Zhijun(Shenzhen) 1,856,344.00 325,741.92
Pharmaceutical Co., Ltd.
Shenzhen Wanwei Medicine Trading Co., 1,802,808.00 2,402,393.40
Ltd.
Shenzhen Main Luck Pharmaceutical Co., 1,769,052.60 2,877,350.00
Ltd.
Sinopharm Holding Ningxia Co., Ltd. 1,538,808.00 1,413,847.22
Sinopharm Holding Jinan Co., Ltd. 1,240,000.00 1,880,000.00
Sinopharm Xingsha Pharmaceuticals 1,145,486.98 356,554.16
(Xiamen) Co., Ltd.
Sinopharm Group Shanxi Medical Devices 949,700.00 -
Co., Ltd.
Sinopharm Holding Dalian Co., Ltd. 857,791.87 950,169.80
Guangdong Medi-World Pharmaceutical 755,306.20 -
Co., Ltd.
Guizhou Tongjitang Pharmaceutical Co., 632,834.40 -
Ltd.
Sinopharm Holding Changsha Co., Ltd. 632,325.90 -
Anhui Jingfang Pharmaceutical Co., Ltd. 409,923.80 -
Sinopharm Holding Changzhou Medical 400,000.00 1,000,000.00
Logistics Center Co., Ltd.
Shanghai Transfusion Technology Co., 301,800.00 503,000.00
Ltd.
Sinopharm Group Zhijun(Shenzhen) 262,800.00 -
Pingshan Pharmaceutical Co., Ltd.
236
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Notes payable (Continued)
Shyndec Pharmaceutical 255,516.40 475,780.40
Sinopharm Group Rongsheng 213,037.00 223,333.00
Pharmaceutical Co., Ltd.
Sinopharm Holding Quanzhou Co., Ltd. 205,791.15 170,891.70
Sinopharm Holding Putian Co., Ltd. 160,980.86 614,504.48
Sinopharm Holding Yancheng Co., Ltd. 160,000.00 -
Winteam Pharmaceutical Group Ltd. 154,417.60 111,322.50
Sinopharm Yixin Pharmaceutical Co., Ltd. 107,472.00 394,064.00
Sinopharm Group - 1,183,604.16
Sinopharm Holding Shanxi Instrument - 1,981,189.60
Branch Co., Ltd.
Sinopharm Holding Lunan Co., Ltd. - 8,596,290.47
Sinopharm Holding Yangzhou Co., Ltd. - 626,534.40
Sinopharm Holding Heilongjiang Co., Ltd. - 31,320.00
Sinopharm Le-Ren-Tang Medicine Co., - 22,076,249.59
Ltd.
Foshan Fengliaoxing Pharmaceutical Co., - 320,310.10
Ltd.
Sinopharm Group Guizhou Blood Products - 536,000.00
Co., Ltd.
Lanzhou Institute of Biological Products - 6,236,153.40
Co., Ltd.
Shenyang Hongqi Pharmaceutical Co., - 602,172.00
Ltd.
Chongqing Haisiman Pharmaceutical Co., - 275,652.00
Ltd.
China Otsuka Pharmaceutical Co., Ltd. - 1,793,583.51
Jiangsu Lianhuan Pharmaceutical Co., - 522,071.08
Ltd.
Jingfukang Pharmaceutical Group Co., - 151,120.00
Ltd.
Fujian Chentian Jinling Pharmaceutical - 100,600.00
Co., Ltd.
237
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Other payables
Sinopharm Group Medicine Logistic Co., 11,518,140.63 2,278,301.79
Ltd.
Shanghai Dingqun Enterprise 10,000,000.00 10,000,000.00
Management Consulting Co., Ltd.
Sinopharm Chongqing Pharmaceutical 5,173,229.10 5,943,030.80
and Medical Industry Design Institute
Sinopharm Group 3,842,067.59 3,706,406.59
Sinopharm Group Shanghai Co., Ltd. 1,690,992.16 1,660,431.38
China National of Traditional&Herbal 1,300,000.00 1,300,000.00
Medicine Co., Ltd.
Sinopharm Holding Tianjin Binhai 387,617.70 339,760.00
Pharmaceutical Co., Ltd.
Shyndec Pharmaceutical 327,973.63 327,973.63
Shanghai Beiyi Guoda pharmaceutical Co. 195,898.04 566,180.09
Ltd.
Sinopharm Holding Hunan Weian 97,305.00 30,000.00
Pharmacy Medicine Chain Company
Limited
Sinopharm Group Xinjiang Special Drugs 76,540.19 41,794.27
National Pharmaceutical Co., Ltd.
Sinopharm Holding Sub Marketing Center 37,782.33 37,782.33
Co., Ltd.
Xinjiang Baitong Property Service Co., Ltd. 33,713.74 -
China National Pharmaceutical Logistics 10,349.70 10,349.70
Co., Ltd.
Sinopharm Group Medicine Logistic Co., - 18,650.00
Ltd. Guangzhou Branch
Sinopharm Holding Financing Lease Co., - 4,424,970.21
Ltd.
Heyuan Mairui Trading Co., Ltd. - 672,396.36
Shenyang Pharmaceutical Co., Ltd. - 4,419,166.69
Linyi Medical Group Co., Ltd. - 51,398.45
Zhang Zhenfang - 2,309,999.96
Pingdingshan Pusheng Pharmaceutical - 1,246,412.02
Co., Ltd.
238
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Contract liability
Sinopharm Holding Quanzhou Co., Ltd. 111,943.09 10,088.00
Sinopharm Holding Inner Mongolia Co., 23,021.80 23,021.80
Ltd.
Sinopharm Holding Jiangxi Co., Ltd. 22,924.91 34,334.51
Sinopharm Holding Gansu Co., Ltd. 21,960.00 -
China Otsuka Pharmaceutical Co., Ltd. 20,475.00 -
China National Pharmaceutical Foreign 2,727.23 1,495.33
Trade Corporation
Sinopharm Holding Chengdu Co., Ltd. 851.59 851.59
Sinopharm Holding Chongqing Co., Ltd. 755.62 755.62
Sinopharm Group Guangdong Medicine 639.92 1,599.80
Device Co., Ltd.
Sinopharm Holding Taizhou Co., Ltd. 24.80 -
Sinopharm Holding Jinzhou Co., Ltd. 0.19 -
Sinopharm Holding Hunan Co., Ltd. - 87,764.97
Sinopharm Holding Hunan Weian - 67,305.00
Pharmacy Medicine Chain Company
Limited
Sinopharm Xinxiang Chain Store Co., Ltd. - 0.01
Sinopharm Holding Yunnan Co., Ltd. - 11,900.19
Sinopharm Holding Nantong Co., Ltd. - 143,177.12
Sinopharm Sichuan Pharmaceutical Co., - 1,123,087.93
Ltd.
Sinopharm Medical Instrument Guizhou - 93.60
Qiannan Co., Ltd.
Sinopharm Zhuhai Medical Instrument Co., - 3,719.00
Ltd.
Sinopharm Health Online Co., Ltd. - 416,056.44
Sinopharm Holding Hulun Buir Co., Ltd. - 21,177.25
Sinopharm Holding Huaian Co., Ltd. - 19.40
239
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Interest receivable
Sinopharm Group Zhijun(Suzhou) Pharmaceutical Co., Ltd. 1,484,841.22 1,846,618.96
Interest payable
Group Financial Co. 98,338.84 -
CNPGC 35,440.21 38,984.25
Other non-current assets
Hunan Minshengtang Investment Co., Ltd. - 3,519,217.54
Lease liability
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. 51,477,662.49 -
Lerentang Investment Group Co., Ltd. 15,361,691.91 -
Linyi Medical Group Co., Ltd. 7,333,666.98 2,214,094.34
Sinopharm Holding Financing Lease Co., Ltd. 6,824,613.01 9,625,302.89
Guangdong Jiyuantang Development Co., Ltd. 5,895,887.17 6,679,233.35
Sinopharm Holding Yangzhou Co., Ltd. 5,440,115.48 7,178,262.00
Taishan Xiangranhui Trade Co., Ltd 2,506,316.51 2,834,391.56
Gu Jinhua 2,091,695.72 2,224,810.30
Nanjing Yuanguang Trading Co., Ltd. 1,979,076.07 2,675,365.64
Shenyang Pharmaceutical Co., Ltd. 1,685,513.08 1,885,957.03
Shaoguan Wujiang District Muyang Medicine Information
Consultant Co., Ltd. 996,884.75 1,441,844.49
Sinopharm Group 917,838.40 1,156,090.31
Sinopharm Holding Beijing Co., Ltd. 866,374.99 1,094,397.22
Gu Haiqun 686,419.59 766,279.30
Beijing Sinopharm Tianyuan Real Estate & Property
Management Co., Ltd. 506,243.41 652,436.66
Hangzhou Xihu Business Group Corporation 422,980.77 553,514.61
China National Medicines Co., Ltd. 417,186.76 550,480.20
Shenzhen Jiufeng Investment Co., Ltd. 385,892.93 377,758.33
240
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
Related party 30 June 2019 1 January 2019
Entrusted loan
CNPGC - 31,600,000.00
Other non-current liabilities
Sinopharm Group - 35,061,743.31
short-term loan
Group Financial Co. 111,418,168.96 122,426,393.33
Long-term payables
Sinopharm Holding Financing Lease Co., Ltd. - 3,763,978.52
Non-current liabilities due within one year
CNPGC 31,600,000.00 -
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. 9,673,454.33 9,206,427.16
Lerentang Investment Group Co., Ltd. 8,032,346.40 5,822,550.02
Sinopharm Holding Financing Lease Co., Ltd. 6,157,645.87 5,861,324.37
Sinopharm Holding Yangzhou Co., Ltd. 3,587,508.60 3,512,206.10
Guangdong Jiyuantang Development Co., Ltd. 1,752,116.60 1,649,377.54
Linyi Medical Group Co., Ltd. 1,450,117.00 1,549,099.93
Nanjing Yuanguang Trading Co., Ltd. 1,407,714.78 1,163,845.57
Shaoguan Wujiang District Muyang Medicine Information
Consultant Co., Ltd. 918,533.66 899,216.52
Taishan Xiangranhui Trade Co., Ltd 657,171.76 660,453.69
Sinopharm Group 491,639.09 481,344.63
Sinopharm Holding Beijing Co., Ltd. 477,779.78 460,701.48
Shenyang Pharmaceutical Co., Ltd. 428,258.20 404,634.11
Beijing Sinopharm Tianyuan Real Estate & Property
Management Co., Ltd. 325,813.14 295,389.79
Hangzhou Xihu Business Group Corporation 276,559.91 263,776.29
China National Medicines Co., Ltd. 275,115.69 269,340.95
Gu Jinhua 273,920.39 268,369.48
Shenzhen Jiufeng Investment Co., Ltd. 188,790.90 184,833.91
Gu Haiqun 168,618.03 161,206.64
Cash deposite with a related party
Group Financial Co. 11,759,504.84 2,125,351.39
241
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
XI Commitments and contingencies
1. Commitments
(1) Capital commitments
Capital expenditures contracted for at the balance sheet date but not recognized in balance sheet
are analyzed as follows:
30 June 2019 31 December 2018
RMB‘0,000 RMB‘0,000
Buildings, machinery and equipment 2,196.50 42.16
Investment commitments (Note) 6,000.00 6,000.00
8,196.50 6,042.16
Note: The Group subscribed to Sinopharm Zhongjin medical industry fund as its limited partner,and the
total investment amounted to RMB200 million. The investors contribute year by year in batch. The fund
manager will send out payment notification to investors according to the actual progress of the project
and the investors will commit to complete the payment in 3 year. The investors have paid 30% of the
amount of contribution during 2017, namely RMB60 million, and 40% in 2018, amounting to RMB80
million. The remaining payment amount is RMB60 million. .
2. Contingencies
As of the balance sheet date, there were no contingencies that the Group was required to disclose.
242
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
XII Other significant events
1. Segment reporting
Operating segments
For management purpose, the Group is organized into business units based on its
product and service and has four reportable operating segments as follows:
a) The Head Office, which is mainly engaged in investing and managing business;
b) Pharmaceutical distribution segment, which is mainly engaged in the distribution
of medicine and pharmaceutical products to customers;
c) Retail pharmacy segment, which is the managing the operation of Guoda
Pharmacy;
Management monitors the results of the Group’s operating segments separately for the
purpose of making decisions about resource allocation and performance assessment.
Segment performance is evaluated based on reportable segment profit, which is a
measure of adjusted profit before tax. The adjusted profit before tax is measured
consistently with the Group’s profit before tax except that finance costs, dividend
income, non-operating income, non-operating expense, investment income, as well as
head office and corporate expenses are excluded from such measurement.
Inter-segment sales and transfers are transacted with reference to the selling prices
used in the transactions carried out with third parties at the then prevailing market
prices.
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
XII Other significant events (Continued)
2. Segment reporting (Continued)
Operating segments (Continued)
Operating segment information as at and for the semi year ended
Pharmaceutical Elimination between
Head Office Retail Total
distribution segments
Revenue of main operations - 19,442,945,442.54 5,957,083,892.95 (359,409,396.51) 25,040,619,938.98
Cost of main operations - (18,238,282,841.05) (4,518,680,260.83) 358,635,569.45 (22,398,327,532.43)
Investment income 169,889,995.08 (995,293.58) 247,588.49 - 169,142,289.99
Net profit 607,413,658.42 403,231,513.97 186,189,865.75 (428,742,482.83) 768,092,555.31
Total assets 11,863,959,776.81 20,784,963,352.57 10,847,813,404.32 (9,957,137,850.76) 33,539,598,682.94
Total liabilities (2,406,658,554.25) (15,349,630,522.38) (5,670,681,594.90) 4,445,868,231.85 (18,981,102,439.68)
244
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements
1. Accounts receivable
The accounts receivable by category are analyzed below:
30 June 2019 1 January 2019
Gross carrying amount Provision for bad debt Gross carrying amount Provision for bad debt
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Items for which
provision for bad
debt is recognised
separately 19,207,761.36 3.15% 161,522.25 0.84% 17,846,941.30 2.83% - -
Items for which
provision for bad
debt is recognized
by the company
(credit risk
characteristics) 591,029,383.80 96.85% - - 613,389,652.64 97.17% - -
610,237,145.16 100.00% 161,522.25 0.03% 631,236,593.94 100.00% - -
At 30 June 2019, accounts receivable that are individually significant and individually assessed for provisions are as follows:
Accounts receivable(by Bad debt
company) Carrying amount provision Rate Assessment for impairment
Receivable due from a related party
Receivable of related party 18,884,716.86 - 0.00% with low risk of recoverability
The customer has poor manageme
Shenzhen Dongtai nt and bad financial situation wit
Pharmaceutical Co., Ltd. 323,044.50 161,522.25 50.00% h high risk of recoverability
Total 19,207,761.36 161,522.25
Provision for bad debts of accounts receivable according to the general model of expected credit
loss:
30 June 2019
Expected credit loss in entire
Estimated default amount lifetime Expected credit loss rate
Within 1 year 591,029,383.80 - -
591,029,383.80 - -
18
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
1. Accounts receivable (Continued)
The aging analysis of accounts receivables was as follows:
30 June 2019
Within 1 year 610,237,145.16
Total
610,237,145.16
Bad debt provision for the current period as follows:
Opening Reversal of write-off Reversal in the Written off Closing
Increases in the year
balance in previous years year in the year balance
Bad debts - - 161,522.25 - - 161,522.25
Total - - 161,522.25 - - 161,522.25
On 30 June 2019, the top five accounts receivable by customer are summarised below:
Bad debt provision % of the total accounts
Amount amount receivable
The top five accounts
receivable total 117,550,911.53 - 19.26%
On 30 June 2019, the Company's accounts receivable that were terminated due to the cooperation
on accounts receivable factoring with financial institutions without recourse were RMB
183,988,184.79.
246
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
2. Other receivables
30 June 2019 1 January 2019
Interest receivable 14,926,690.76 7,550,877.07
Dividend receivable 106,074,898.00 -
Other receivables 1,737,482,983.84 1,534,430,006.43
1,858,484,572.60 1,541,980,883.50
（1）Interest receivable
30 June 2019 1 January 2019
Fixed deposits 11,411,000.00 3,697,083.33
Entrusted Loans 3,515,690.76 3,853,793.74
14,926,690.76 7,550,877.07
（2）Dividend receivable
30 June 2019 1 January 2019
Sinopharm Holding Shenzhen Logistics
Co., Ltd. 1,332,303.75 -
Sinopharm Holding Shenzhen Traditional
& Herbal Medicine Co., Ltd 245,732.05 -
Shenzhen Jianmin Pharmaceutical Co.,
Ltd. 2,260,593.51 -
Sinopharm Holding Guangzhou Co., Ltd 71,642,571.23 -
Sinopharm Holding Guangxi Co., Ltd 30,593,697.46 -
106,074,898.00 -
247
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
（3）Other receivables
Category of other receivables by nature is as follows:
Nature 30 June 2019 1 January 2019
Receivable due from related parties 1,721,317,102.80 1,469,192,387.91
Receivable of equity transactions 8,980,000.00 8,980,000.00
Deposits 436,311.09 1,449,978.94
Others 17,964,114.36 63,817,941.16
Total 1,748,697,528.25 1,543,440,308.01
XIII Notes to key items of the company financial statements (Continued)
2. Other receivables (Continued)
The changes in bad debt provision for other receivables based on the entire lifetime expected credit
losses are as follows:
Stage 1 Stage 2 Stage 3
Bad debt Expected credit Entire lifetime Entire lifetime expected Total
losses over the expected credit credit losses(Credit
next 12 months losses(No credit impairment occurred)
impairment occurred)
Balance at 1 January 2019 - 9,010,301.58 - 9,010,301.58
Balance at 1 January 2019
during the period
Provisions during the period - 2,204,412.83 - 2,204,412.83
Reversal during the period - (170.00) - (170.00)
Balance at 30 June 2019 - 11,214,544.41 - 11,214,544.41
The aging analysis of other receivables was as follows:
30 June 2019
Within 1 year 1,689,730,979.74
1 to 2 years 49,856,902.50
248
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
2 to 3 years 29,829.20
Over 3 years 9,079,816.81
Total 1,748,697,528.25
Bad debt provision of other receivables in 2019 was RMB2,204,412.83, with the recovered or reversed
amount of RMB170.00.
249
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
2. Other receivables (Continued)
As at 30 June 2019，the top 5 parties that owed the largest amounts of other receivable balances are
analyzed below:
% of total Provision of bad
Nature Amount Age
amount debt
Sinopharm Guangxi Entrusted borrowings 343,000,000.00 Within 1 year 19.61%
Sinopharm Yuexing Entrusted borrowings 190,700,000.00 Within 1 year 10.91%
Sinopharm Holding
Dongguan Co., Ltd. Entrusted borrowings 161,000,000.00 Within 1 year 9.21%
Sinopharm Holdings
Zhanjiang Co., Ltd. Entrusted borrowings 117,000,000.00 Within 1 year 6.69%
Sinopharm Holding
Meizhou Co., Ltd. Entrusted borrowings 76,700,000.00 Within 1 year 4.39%
888,400,000.00 50.81%
3. Long-term equity investments
30 June 2019 1 January 2019
Bad debt Bad debt
Original value provision Carrying amount Original value provision Carrying amount
Investments
in
subsidiaries 5,594,679,427.58 - 5,594,679,427.58 5,594,679,427.58 - 5,594,679,427.58
Investments
in
associates 2,084,966,116.97 39,930,000.00 2,045,036,116.97 1,878,157,264.66 39,930,000.00 1,838,227,264.66
7,679,645,544.55 39,930,000.00 7,639,715,544.55 7,472,836,692.24 39,930,000.00 7,432,906,692.24
250
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
3. Long-term equity investments (Continued)
(a) Subsidiaries
Provision for Ending value of
impairment in the impairment
1 January 2019 Increases decrease 30 June 2019 current period provision
Sinopharm Jianming 60,054,911.04 - - 60,054,911.04 - -
Sinopharm Traditional &
- -
Herbal Medicine 15,450,875.93 - - 15,450,875.93
Shenzhen Logistics 5,019,062.68 - - 5,019,062.68 - -
Sinopharm Guangzhou 3,588,689,716.80 - - 3,588,689,716.80 - -
Sinopharm Guangxi 525,456,951.07 - - 525,456,951.07 - -
Sinopharm Yanfeng 38,207,800.00 - - 38,207,800.00 - -
Sinopharm Holding
Guoda Pharmacy Co.,
Ltd. 1,361,800,110.06 - - 1,361,800,110.06 - -
5,594,679,427.58 - - 5,594,679,427.58 - -
(b) Associates
Movement
Profit or loss under Other changes in Provision of
1 January 2019 Investment the equity method equity Dividend declared Other 30 June 2019 impairment
Sinopharm Group Zhijun (Suzhou)
Pharmaceutical Co., Ltd. 39,930,000.00 - - - - - 39,930,000.00 39,930,000.00
Shenzhen Main Luck Pharmaceutical
Co., Ltd 265,316,653.68 - 33,592,995.70 - - - 298,909,649.38
Sinopharm Group Zhijun (Shenzhen)
Pharmaceutical Co., Ltd. 355,353,196.15 - 58,536,101.74 - - - 413,889,297.89 -
Shenzhen Zhijun Pharmaceutical
Trade Co., Ltd. 8,730,994.87 - 1,467,031.77 - - - 10,198,026.64 -
Sinopharm Group Zhijun(Shenzhen)
Pingshan Pharmaceutical Co., Ltd. 86,292,927.33 - 22,425,900.45 - - - 108,718,827.78 -
Shanghai Shyndec Pharmaceutical
Co., Ltd. 1,098,566,852.51 - 65,258,503.45 42,424,747.00 (16,896,427.80) - 1,189,353,675.16 -
Shanghai Dingqun Enterprise
Management Consulting Co., Ltd. 23,966,640.12 - - - - - 23,966,640.12 -
1,878,157,264.66 - 181,280,533.11 42,424,747.00 (16,896,427.80 ) - 2,084,966,116.97 39,930,000.00
251
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
4. Sales and cost of sales
For the six months ended For the six months ended
30 June 2019 30 June 2018
Revenue Cost Revenue Cost
Principal
operations 1,997,575,365.19 1,915,240,571.14 1,681,220,169.43 1,612,710,688.13
Other
operations 10,429,198.11 6,031,823.62 6,401,186.40 2,006,785.78
2,008,004,563.30 1,921,272,394.76 1,687,621,355.83 1,614,717,473.91
Classification For the six months ended
30 June 2019
By product
Include:
Medicines 1,919,165,623.70
Medical appliance 78,409,741.49
Other 10,429,198.11
By area
Include:
Domestic 2,008,004,563.30
Overseas
By contract duration
Include:
Confirm revenue at a certain point in time 1,997,575,365.19
Confirm revenue at a certain time period
10,429,198.11
Total 2,008,004,563.30
Information about the Company’s obligations is as follows:
The Company recognises revenue when goods are delivered, and will receive payment within 30-210 days.
The Company recognises revenue after providing services, and will receive payment within 30-210 days.
The expected revenue recognition time for the Company’s contract obligations above is in year 2019.
Information related to the sales price allocated to the remaining obligations:
The amount of income corresponding to the obligation that has been signed but has not been fulfilled or has not
yet fulfilled is9,058,538.51 yuan, of which 9,058,538.51 yuan is expected to be recognized in 2019.
252
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
5. Investment income
For the six months ended For the six months ended
30 June 2019 30 June 2018
Long-term equity investment
income calculated by cost method 427,007,887.36 361,514,454.32
Long-term equity investment income
calculated by equity method 181,280,533.11 173,326,290.14
608,288,420.47 534,840,744.46
253
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
XIV Supplementary information to financial statements
1. Schedule of non-recurring profit or loss
Amount for 30 June 2019 Illustration
Gains and losses from disposal of non-current assets,
including write off of accrued asset impairment 4,318.22 .
Government grants recognized in income statement for the current Mainly contains tax subsidies
year, except for those closely related to the ordinary operation of the and financial incentives
Company which the Group enjoyed constantly according to the received during current
allotment standards or quantitative criteria of the country 16,456,976.15 period
Reversal of bad debt provision for accounts receivable that were
tested for impairment individually 1,076,222.62
The interest income from the
entrusted loan provided to
Sinopharm Group Zhijun
(Suzhou) Pharmaceutical
Profit or loss from outward entrusted borrowings 1,715,338.06 Co., Ltd.
Non-operating income and expenses other than the aforesaid items 519,920.40
Other 16,447.15
Less:Impact on income tax 4,668,084.55
Impact on non-controlling interests after tax 3,988,225.60
11,132,912.45
Basis for preparation of detailed list of non-recurring profit or loss items:
Under the requirements in Explanatory announcement No. 1 on information disclosure by companies
offering securities to the public – non-recurring profit or loss (2008) (“Explanatory announcement No.1”)
from CSRC, nonrecurring profit or loss refer to those arising from transactions and events that are not
directly relevant to ordinary business, or that are relevant to ordinary business, but are so extraordinary that
would have an influence on users of financial statements making proper judgments on the performance and
profitability of an enterprise.
254
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
XIV Supplementary information to financial statements (Continued)
2. Return on equity (“ROE”) and earnings per share (“EPS”)
Weighted Basic EPS (RMB/Share)
average
ROE (%) Basic Diluted
EPS(RMB/Share) EPS(RMB/Share)
Net profit attributable to ordinary shareholders
of the parent 5.44% 1.52 1.52
Net profit after deducting non-recurring profit
or loss attributable to the Company’s
ordinary shareholders of the parent 5.35% 1.49 1.49
255
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2019
(All amounts in Renminbi “RMB” unless otherwise stated)
Section XV. Documents Available for Reference
1. Accounting Statements carried with the signature and seals of legal representative, chief financial officer and
person in charge of accounting;
2. Original text of all documents of the Company as well as manuscript of the announcement disclosed in
reporting period on Securities Times, China Securities Journal and Hong Kong Commercial Daily appointed by
the CSRC;
3. The Place Where the document placed: Office of Secretariat of the Board of Directors, Accord Pharm Bldg., No.
15, Ba Gua Si Road, Futian District, Shenzhen
China National Accord Medicines Corporation Ltd.
Legal representative: Lin Zhaoxiong
24 August 2019
256
