The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Huadong Medicine Co., Ltd.
The First Quarterly Report 2021
April 2021
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Section I Important Declaration
The Board of Directors, Board of Supervisors, directors, supervisors and senior
management of Huadong Medicine Co., Ltd. (hereinafter referred to as the
“Company”) hereby guarantee that the information presented in this report is
authentic, accurate and complete and free of any false records, misleading
statements or material omissions, and shall undertake individual and joint legal
liabilities.
All directors have attended the board of directors meeting to review this
quarterly report.
Lv Liang, the Company’s legal representative and the officer in charge of
accounting, and Qiu Renbo, head of accounting department (accounting
supervisor) hereby declare and guarantee that the financial statements in this
quarterly report are authentic, accurate and complete.
According to “Stock Listing Rules of the Shenzhen Stock Exchange”, if listed
companies have both Chinese or other language version of public notice, they
should ensure the content of both versions are the same. In the case of
discrepancy, the original version in Chinese shall prevail.
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Section II Company Profile
I. Key Accounting Data and Financial Indicators
Whether the Company needs to perform retroactive adjustment or restatement of previous accounting data
□ Yes √ No
Change of the current
The current reporting period Same period last year reporting period over the
same period last year
Operating revenue (yuan) 8,896,632,277.36 8,598,069,911.29 3.47%
Net profit attributable to shareholders of
758,380,756.56 1,147,278,457.64 -33.90%
listed companies (yuan)
Net profit attributable to shareholders of
listed companies after deducting 695,792,411.78 856,930,262.10 -18.80%
non-recurring gains/losses (yuan)
Net cash flow from operating activities
302,314,164.48 218,779,623.89 38.18%
(yuan)
Basic earnings per share (yuan/share) 0.4334 0.6557 -33.90%
Diluted earnings per share (yuan/share) 0.4334 0.6557 -33.90%
Weighted average return on equity (ROE) 5.04% 8.89% -3.85%
Change of the end of the
End of the current reporting
End of last year current reporting period
period
over the end of last year
Total assets (yuan) 26,096,806,585.74 24,201,348,154.75 7.83%
Net assets attributable to shareholders of
15,266,793,123.79 14,619,821,308.60 4.43%
listed companies (yuan)
Items and amounts of non-recurring gains/losses
√ Applicable □ N/A
Unit: RMB yuan
Amount (from the beginning
Item of the year to the end of the Note
reporting period)
Gains/losses on disposal of non-current assets (including the
15,675.63
written-off part of the accrued assets impairment reserve)
Government grants included in current gains/losses (excluding
those closely related to operating activities, or regular government 76,459,624.41
grants)
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Other non-operating income or expenditure -2,351,230.65
Less: Amount affected by income tax 11,433,797.38
Amount affected by minority interest (after tax) 101,927.23
Total 62,588,344.78 --
If the Company recognizes an item as a non-recurring gain/loss based on the “Interpretation Announcement on Information
Disclosure Criteria for Public Companies No. 1 – Non-Recurring Profit/Loss” or recognizes an item satisfying the definition of
non-recurring profit/loss in the announcement as a recurring profit/loss, reasons should be specified.
□ Applicable √ N/A
No such case during the reporting period.
II. Total numbe r of shareholders at the end of the reporting period and information of top 10
shareholders
1. Total number of shareholders of common shares and number of shareholders of preferred shares with
voting rights restored, as well as information about top 10 shareholders
Unit: share
Total number of shareholders of
Total number of shareholders of
preferred shares whose voting rights
common shares at the end of the 168,355 0
have been restored at the end of the
reporting period
reporting period (if any)
Information about top 10 shareholders
Number of shares Pledged or frozen
Shareholding Number of shares
Name Nature held with sale
ratio held Status Number
restrictions
Domestic
China Grand
non-state-owned 41.77% 730,938,157 0 Pledged 239,970,000
Enterprises, Inc.
legal person
Hangzhou
Huadong State-owned legal
15.69% 274,620,000 0
Medicine Group person
Co., Ltd.
Hong Kong
Securities Overseas legal
1.82% 31,905,503 0
Clearing person
Company Ltd.
China Securities
Other 1.27% 22,186,818 0
Finance Co., Ltd.
Huaxia Life
Insurance Co., Other 0.61% 10,713,280 0
Ltd. - own funds
National Social Other 0.45% 7,926,311 0
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Security Fund
Portfolio 602
National Social
Security Fund Other 0.34% 6,000,000 0
Portfolio 503
Basic
Endowment
Other 0.30% 5,253,350 0
Insurance Fund
Portfolio 15041
Domestic
#Yang Yushan 0.29% 5,000,000 0
individual
Domestic
#Chen Shaoming 0.22% 3,764,388 0
individual
Shares held by the top 10 shareholders of Non- restricted shares
Type of shares
Name Number of shares held without sale restrictions
Type Number
RMB common
China Grand Enterprises, Inc. 730,938,157 730,938,157
shares
Hangzhou Huadong Medicine RMB common
274,620,000 274,620,000
Group Co., Ltd. shares
Hong Kong Securities Clearing RMB common
31,905,503 31,905,503
Company Ltd. shares
RMB common
China Securities Finance Co., Ltd. 22,186,818 22,186,818
shares
Huaxia Life Insurance Co., Ltd. - RMB common
10,713,280 10,713,280
own funds shares
National Social Security Fund RMB common
7,926,311 7,926,311
Portfolio 602 shares
National Social Security Fund RMB common
6,000,000 6,000,000
Portfolio 503 shares
Basic Endowment Insurance Fund RMB common
5,253,350 5,253,350
Portfolio 15041 shares
RMB common
#Yang Yushan 5,000,000 5,000,000
shares
RMB common
#Chen Shaoming 3,764,388 3,764,388
shares
Notes on relations and concerted
The Company does not know whether the shareholders mentioned above are related parties
actions among the shareholders
with each other or whether they are acting-in-concert parties with each other.
mentioned above
Notes on financing and securities Hangzhou Huadong Medicine Group Co., Ltd., the second largest shareholder of the
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
loan conducted by top 10 Company, holds 288,000,000 shares of the Company, accounting for 16.46% of the total
shareholders (if any) capital stock of the Company. As of the end of the reporting period, 13,380,000 shares of the
Company have been transferred to China Securities Finance Corporation for loan.
At the end of the current reporting period, Yang Yushan, the ninth shareholder of the
Company, held 5,000,000 shares of the Company through financing and securities loan, Chen
Shaoming, the tenth shareholder of the Company, held 3,651,388 shares of the Company
through financing and securities loan.
Does any of the Company’s top 10 shareholders of common shares or top 10 shareholders without sale restrictions on common shares
conduct any agreed repurchase transaction during the reporting period?
□ Yes √ No
No such case during the reporting period.
2. Total number of shareholders of preferred shares and information about top 10 shareholders of
preferred shares
□ Applicable √ N/A
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Section III Substantial Matters
I. Changes in key financial data and financial indicators during the reporting period and their
causes
√ Applicable □ N/A
Unit: RMB yuan
Balance sheet item End of the period Beginning of the Change rate Notes on cause of changes
period
Accounts receivable financing 578,065,866.37 828,659,217.25 -30.24% Mainly due to the increase of notes collection in the
current period
Advance receipts 356,122,946.06 250,916,482.07 41.93% Mainly due to the increase of prepayment
Other receivables 116,804,796.17 83,073,823.45 40.60% Mainly due to the increase in provisional payments
receivable
Other current assets 51,201,382.80 85,654,691.58 -40.22% Mainly due to the decrease of input VAT to be
deducted at the end of the period
Other non current assets 931,645,777.92 712,069,194.08 30.84% Mainly due to the increase in the prepayment of
equipment purchase and intangible assets purchase
at the end of the period
Notes payable 981,406,149.63 554,336,058.71 77.04% Mainly due to the increase of bill payment in the
current period
Long term loan 209,937,945.01 151,611,367.86 38.47% Mainly due to the increase of long-term loans
obtained in the current period
Income statement item Amount of the Amount of the Change rate Notes on cause of changes
current period previous period
Management expenses 277,542,542.53 196,704,190.05 41.10% Mainly due to the low base in the same period of
last year and the increase of salary in the current
period
Financial expenses 8,531,468.21 15,759,648.63 -45.87% Mainly due to the increase of interest income and
the decrease of financing cost
Gains on assets disposal 304,336.80 306,269,024.44 -99.90% Mainly due to the transfer of market distribution
rights of related products in Western Europe by
Sinclair, a wholly owned subsidiary of the
Company in the UK
Mainly due to the disposal of the distribution rights
and interests in the Western European market of
related products of Sinclair, a British
wholly-owned subsidiary of the company, in the
same period of last year
investment income -26,664,999.81 -1,256,335.99 -2022.44% Mainly due to the increase of discount interest and
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
the decrease of net profit of joint ventures in the
current period
Other income 76,459,624.41 20,044,478.23 281.45% Mainly due to the increase of government subsidies
Net profit 774,473,984.45 1,153,425,789.92 -32.85% Mainly due the higher income from asset disposal
of subsidiaries in the same period of last year and
the decrease of gross profit of subsidiaries affected
by policies in the current period
Cash flow statement item Amount of the Amount of the Change rate Notes on cause of changes
current period previous period
Net cash flows from operating 302,314,164.48 218,779,623.89 38.18% Mainly due to the increase of the collection in the
activities current period
Net cash flows from investing -486,980,878.94 -21,112,417.22 -2206.1% Mainly due to the increase of equity investment
activities funds in the current period and the transfer of
distribution rights and interests of related products
in Western European market of Sinclair, a
wholly-owned subsidiary of the company in the
previous period
II. Progress and influence of significant events, and explanatory notes of corresponding solutions
□ Applicable √ N/A
Implementation progress of share repurchase
□ Applicable √ N/A
Progress in the implementation of reducing repurchased shares by centralized price bidding
□ Applicable √ N/A
III. Unfulfilled and overdue commitments from the related committed parties such as the
Company’s actual controller, shareholders, related parties, acquirer(s), and the Company
during the reporting period
□ Applicable √ N/A
No such case during the reporting period.
IV. Financial assets investment
1、Securities investment
√ Applicable □ N/A
Unit: RMB yuan
Account Book Profit Accumu Purchase Selling Gain/l Book
Stock Initial
Type of Stock ing value at and loss lative amount amount oss value at Account Capital
for investm
stock code measure the from fair in the in the during the end ing item source
short ent cost
ment beginni fair value current current the of the
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
model ng of value changes period period reporti period
the changes included ng
period in the in period
current equity
period
Other
Domestic Fair equity
and 20,207, value 23,582, 3,113,97 3,113,97 26,696, instrum Own
RAPT RAPT 0.00 0.00 0.00
overseas 400.00 measure 877.56 7.59 7.59 855.15 ents funds
stock ment investm
ent
20,207, 23,582, 3,113,97 3,113,97 26,696,
Total -- 0.00 0.00 0.00 -- --
400.00 877.56 7.59 7.59 855.15
Date of announcement of
the board of directors on
N/A
securities investment
approval
Date of announcement of
the board of shareholders
N/A
on securities investment
approval (if any)
Notes: In 2019, Huadong Medicine Investment Holding (Hong Kong) Co., Ltd., a subsidiary of the company, invested USD 3 million
to purchase 218102 series C-2 preferred shares of RAPT therapeutics, Inc. RAPT therapeutics, Inc was listed on Nasdaq Stock
Exchange on October 30, 2019 (Stock Code: RAPT). As of the end of the reporting period, Huadong Medicine Investment Holding
(Hong Kong) Co., Ltd. held 183002 shares, accounting for 0.74% of the total shares of RAPT therapeutics, Inc.
2、Derivatives investment
□ Applicable √ N/A
No derivative investment during the reporting period.
V. Progress of investment projects with raised funds
□ Applicable √ N/A
VI. Forecast of business performance from January to June in 2021
Warning and explanation of the reason that the accumulated net profit from the beginning of the year to the end of the next reporting
period may be a loss or a substantial change compared with the same period of the previous year
□ Applicable √ N/A
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
VII. Major contracts for daily operation
□ Applicable √ N/A
VIII. Entrusted financial manage ment
□ Applicable √ N/A
No entrusted financial management during the reporting period.
IX. Illegal external guarantee
□ Applicable √ N/A
No illegal external guarantee during the reporting period.
X. Non operating capital occupation of listed companies by controlling shareholders and their
related parties
□ Applicable √ N/A
No non operating capital occupation of listed companies by controlling shareholders and their related parties during the reporting
period.
Ⅺ. Registration form of receptions, including research, communication and interview,
undertaken during the reporting period
√ Applicable □ N/A
Main contents of
Index of basic
discussion and
Date Place Method Type of visitor Reception target information of the
materials
research
provided
Huadong
Please refer to the
Medicine's
"Record of Investor
self-immunity
Relations Activities on
innovative drug
February 18, 2021"
introduction and
published by the
February 18, Company Communication overseas medical
Institution CICC etc. company on the
2021 conference room by phone beauty energy
Shenzhen Stock
source company
Exchange Interactive
acquisition
Easy website and
investor
cninfo.com.cn for
exchange
details.
meeting
Haitong Please refer to the
Investor
February 25, Company Communication Pharmaceutical, "Record of Investor
Institution Exchange
2021 conference room by phone Huatai Relations Activities on
Meeting
Securities, etc. February 25, 2021"
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
published by the
company on the
Shenzhen Stock
Exchange Interactive
Easy website and
cninfo.com.cn for
details.
Please refer to the
"Record of Investor
Relations Activities on
March 3, 2021"
Industrial
Investor published by the
Company Communication Securities,
March 3, 2021 Institution Exchange company on the
conference room by phone Huatai
Meeting Shenzhen Stock
Securities, etc.
Exchange Interactive
Easy website and
cninfo.com.cn for
details.
Ⅻ. Overview of the Company's operations in the first quarter of 2021
（1）Overview of operations
During the reporting period, the Company achieved an operating revenue of 8.897 billion yuan,
with a year-on-year increase of 3.47%; The net profit attributable to shareholders of listed
companies was 758 million yuan with a year-on-year decrease of 33.9%; The net profit attributable
to shareholders of listed companies after deducting non recurring profit and loss was 696 million
yuan with a year-on-year decrease of 18.80%; The core subsidiary, Zhongmei Huadong, had a
stable overall operation. Affected by the price reduction of some products, it realized an operating
revenue of 3.092 billion yuan with a year-on-year decrease of 14.58% and a month on month
increase of 38.61%; The net profit was 730 million yuan with a year-on-year decrease of 14.60%
and a month on month increase of 85.30%; Both the pharmaceutical business and domestic medical
aesthetics business showed recovery growth over the same period. The operating income of the
pharmaceutical business during the reporting period increased by 16.0% year-on-year. The income
from the holding subsidiary Huadong Ningbo medical aesthetics business increased by 63.3%.
Although the overseas new crown epidemic has not ended, the British Sinclair company’s operating
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
income still showed a recovery trend, with a year-on-year increase of 12.7%.
During the reporting period, the Company accelerated R&D work and continued to increase
R&D investment. The pharmaceutical industry R&D investment totaled 283 million yuan with a
year-on-year increase of 2.3%.
The main reasons for the year-on-year decrease in the Company’s net profit during the
reporting period were as follows: (1) The revenue and gross profit of Acarbose Tablets, the main
product of Zhongmei Huadong, both decreased significantly compared with those before the
implementation of the national centralized procurement in the previous reporting period (Acarbose
Tablets began to fully implement national centralized procurement in April last year, and will not be
affected by centralized procurement in the first quarter of 2020); (2) After the successful negotiation
of the price reduction of the National Medical Insurance contract in December 2020, the adjusted
price of Bailing Capsule (price reduction 33.8%) began to be officially implemented nationwide on
March 1, 2021; (3) The company's non-recurring gains and losses in the first quarter of 2020 were
290 million yuan, including the transfer of product regional distribution rights by the British
subsidiary Sinclair to Galderma, which obtained a net income of 30.65 million pounds and greatly
increased the Company's overall income during the reporting period. No such matters occurred
during the reporting period, and other non-recurring gains and losses totaled 63 million yuan,
resulting in a further increase in the year-on-year decrease in net profit attributable to shareholders
of listed companies.
With the normalization of centralized procurement and the promotion of internal and external
sales models, the Company will further deepen innovation and international transformation work
and strategy implementation, and accelerate the transformation of internal business units from cost
centers to profit centers. Based on the advantages of the Company's various business segments,
while comprehensively improving profitability, it also enhances its own comprehensive
competitiveness and strives to achieve the goal of full-year profit growth in 2021.
（2）Overview of main work
1. Pharmaceutical industry
Up to the release of the report, the Company's innovative drug business has ushered in a number
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
of major milestones. Clinical trial application for class 1 new drug IMGN853 (Mirvetuximab
Soravtansine, a new antibody coupled drug for the treatment of ovarian cancer) was approved by the
National Medical Products Administration (NMPA), which planned to carry out an international
multicenter phase III study and a phase I study to evaluate the safety, tolerance and pharmacokinetics
in Chinese adult patients in the second quarter; Clinical trial application for class 1 new drug MB-102
injection, a fluorescent tracer used to measure glomerular filtration rate, was accepted; Reached an
exclusive clinical development and commercialization agreement with Provention Bio and obtained
exclusive clinical development and commercialization rights for two clinical indications of the
bispecific antibody PRV-3279 in Greater China. One is a phase I study in the US for the treatment
of systemic lupus erythematosus, and the other is a preclinical study in the US for the prevention or
reduction of immunogenicity of gene therapy.
The Company and Fuguang Hongxin Pharmaceutical Industry Fund jointly invested 35 million
yuan to make equity investment in Novacyte Therapeutics, a drug research and development
platform company focusing on ADC technology. According to the agreement, the Company has the
right to enjoy the preferential transfer right of its products in development before 2026. The
company acquired a total of 75% equity of DoerBio at 487.5 million yuan and became its
controlling shareholder. DoerBio is a platform-based R&D enterprise engaged in the development
of innovative biomacromolecule antibody drugs with independent intellectual property rights in
China, and has global rights and interests in all products under research. Among them, one drug
candidate for the treatment of gastric cancer and two drug candidates for the treatment of metabolic
diseases such as type 2 diabetes and NASH (non-alcoholic fatty liver) are planned to submit clinical
trial applications in China in 2021.
Since 2019, Huadong Medicine has successively invested, controlled, and incubated a number
of domestic biotechnology companies with leading technology, including investment in peptide
technology platform company Peg-Bio, antibody company Qyuns Biotech which focuses on
immune diseases, Novacyte Therapeutics which has ADC linker and coupling technology, Huida
Biotech which has developed a full product line of ADC drug toxin raw materials, and the
multi-antibody platform company DoerBio. Through a series of investment and mergers, Huadong
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Medicine R&D ecosystem is gradually formed. The company will integrate and make full use of the
comprehensive research and development strength of the above platform, continuously develop new
antibodies and peptides based on the superior targets and the specific clinical needs of the
company's core therapeutic fields, and do a good job in the international layout.
2. Pharmaceutical business
During the reporting period, the pharmaceutical business of the Company accelerated the
channel reform of "intra-hospital transfer to out-hospital, offline transfer to online", repositioned the
retail market, focused on the development of DTP, in-hospital side-store and featured outpatient
department, realized the double dip of variety and management, and created a new development
pattern of "online and offline interaction". Through the self-built platform and entered the online
public platform, actively expand the Internet marketing business. It has also established the first
Internet hospital in Huadong Medicine, officially entering the new field of medical services of
"Internet + chronic disease management". It will integrate hospital resources through the Internet
platform, manage patients inside and outside the hospital, and actively explore a new mode of
health management marketing service oriented to the whole life cycle.
Pharmaceutical business continued to increase innovation business. Huadong Pharmaceutical
Supply Chain Management (Hangzhou) Co., Ltd., a wholly-owned subsidiary of the company, has
obtained the first express business license of pharmaceutical cold chain enterprise in Zhejiang
Province issued by Zhejiang Postal Administration, and obtained the third-party storage and
transportation vaccine service qualification from Zhejiang Center for Disease Control and
Prevention, which is the exclusive service in Zhejiang Province.
3. Aesthetic medicine business
As of the end of the reporting period, Sinclair, the global operation center of the Company's
aesthetic medicine, has completed all acquisitions of Spanish energy source equipment company
High Tech. This is the Company's first overseas merger in the same industry and an important
milestone in the implementation of Company's globalization strategy. In April this year, the
Company's global exclusive collagen stimulant long-acting microsphere Ellanse was approved by
the NMPA and will officially enter the Chinese mainland market in the second half of the year.
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
The Company continues to accelerate the progress of the clinical registration of other core
aesthetic medicine products in China. On February 10th, the absorbable embedding product
Silhouette Instalift from Sinclair for the lifting of mid-face tissues, successfully passed the record
of the Ministry of Science and Technology Department of Genetics, and officially entered the
registration clinical research stage. At present, the enrollment of subjects is progressing smoothly.
This product was certified by the U.S. FDA in 2015 and is currently the only absorbable embedding
product approved by the U.S. FDA for lifting mid-face tissue.
The new high-end lidocaine-containing hyaluronic acid filler MaiLi series products using
OXIFREE patented technology and process have been registered in the Chinese market and will
be launched in the European market in the first half of 2021. Sinclair’s newly acquired Spanish
High Tech company’s cold-fat-melting product Cooltech Define has obtained the EU CE
certification, and the registration in the Chinese market is under active preparations. Titania, an
innovative RF product under development for skin tightening and body shaping, plans to obtain the
European Union CE certification in the fourth quarter of this year, and will continue to be marketed
globally after approval.
Glacial Spa (F0), a cold-touch beauty instrument from R2 Company, is actively preparing for
sales in China; Glacial Rx (F1), a frozen freckle medical device, is proceeding in an orderly
manner in registration in China; F0 and F1 have launched the Asia-Pacific market Registration work:
F0 has been approved for listing in Korea and has submitted a listing application in Taiwan, which
is expected to obtain permission in 2021; F1 is preparing to submit listing applications for
Singapore, Indonesia, and Malaysia.
The Company is paying close attention to the latest policy issued by the National Development
and Reform Commission on supporting the development of high-end medical beauty industry in
Hainan. The policy proposed that "Aesthetic medical institutions in the Lecheng Pioneer Zone can
use the medical aesthetics products listed in the United States, the European Union, Japan and other
countries or regions in batches”. The Company currently has a number of non-invasive and
minimally invasive medical products listed in mainstream markets or regions such as the United
States, the European Union, and other areas that meet the direction encouraged by the policy. The
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
above new policy will help the Company's international advanced products quickly enter the
country. The Company is formulating the registration work plan for medical aesthetics products that
meet the policy encouragement in Hainan, and will actively promote the implementation work
according to the latest national policy, with a view to realizing the listing and sales in Hainan Pilot
Zone as soon as possible.
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Section IV Financial Statements
I. Financial Statements
1. Consolidated balance sheet
Prepared by Huadong Medicine Co., Ltd.
March 31, 2021
Unit: RMB yuan
Item March 31, 2021 December 31, 2020
Current assets:
Monetary funds 3,129,717,110.39 3,198,080,997.82
Settlement reserve
Lending to other banks and other
financial institutions
Financial assets for trade
Derivative financial assets
Notes receivable
Accounts receivable 7,729,847,991.24 6,137,675,568.82
Accounts receivable financing 578,065,866.37 828,659,217.25
Advance payments 356,122,946.06 250,916,482.07
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve
receivable
Other receivables 121,000,462.54 87,269,489.82
Including: Interests receivable
Dividends receivable 4,195,666.37 4,195,666.37
Financial assets purchased for
resale
Inventories 4,184,900,223.81 4,067,635,254.80
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 51,201,382.80 85,654,691.58
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Total current assets 16,150,855,983.21 14,655,891,702.16
Non-current assets:
Loans and prepayments issuance
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 944,226,232.95 850,072,053.02
Other equity instrument
228,567,097.64 225,453,120.05
investments
Other non-current financial assets
Real estate properties for
17,530,616.51 17,792,735.95
investment
Fixed assets 2,606,236,889.11 2,420,366,582.92
Constructions in progress 2,015,024,914.70 2,240,201,926.65
Biological assets for production
Oil & gas assets
Right-of-use assets 152,763,198.46
Intangible assets 1,434,653,824.20 1,463,242,463.99
Development expenditures
Goodwill 1,469,617,262.10 1,469,617,262.10
Long-term unamortized expenses 7,855,014.54 8,811,339.43
Deferred income tax assets 137,829,774.40 137,829,774.40
Other non-current assets 931,645,777.92 712,069,194.08
Total non-current assets 9,945,950,602.53 9,545,456,452.59
Total assets 26,096,806,585.74 24,201,348,154.75
Current liabilities:
Short-term borrowing 1,487,602,162.22 1,416,932,884.87
Borrowing from the Central bank
Borrowing from other banks and
other financial institutions
Financial liabilities for trade
Derivative financial liabilities
Notes payable 981,406,149.63 554,336,058.71
Accounts payable 4,028,559,295.74 3,947,044,331.68
Advance receipts 684,383.46 951,926.56
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Contract liabilities 165,135,518.26 94,384,629.77
Financial assets sold for
repurchase
Absorbing deposits and due from
banks
Receipts for buying and selling
securities as proxy
Receipts for underwriting
securities as proxy
Employee benefits payable 122,357,260.82 152,106,819.91
Taxes and fees payable 693,879,850.88 571,792,475.80
Other payables 2,108,650,934.60 1,817,529,820.99
Including: Interests payable
Dividends payable 224,219.60 224,219.60
Handling fees and commissions
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within
51,156,977.60 67,813,886.68
one year
Other current liabilities 20,343,897.23 10,786,034.37
Total current liabilities 9,659,776,430.44 8,633,678,869.34
Non-current liabilities:
Insurance contract reserve
Long-term borrowing 209,937,945.01 151,611,367.86
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 142,315,707.93
Long-term payables 26,084,710.58 26,812,354.90
Long-term employee benefits
payable
Provision 38,416,223.54 39,467,829.23
Deferred gains 89,060,824.26 81,628,032.54
Deferred income tax liabilities 88,738,187.41 88,738,187.41
Other non-current liabilities
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Total non-current liabilities 594,553,598.73 388,257,771.94
Total liabilities 10,254,330,029.17 9,021,936,641.28
Ownership interest:
Share capital 1,749,809,548.00 1,749,809,548.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 2,158,080,661.07 2,158,080,661.07
Less: Treasury shares
Other comprehensive income -121,155,906.94 -2,191,069.45
Special reserve
Surplus reserve 861,680,578.42 861,680,578.42
General risk reserve
Undistributed profit 10,618,378,243.24 9,852,441,590.56
Total ownership interest attributable to
15,266,793,123.79 14,619,821,308.60
the parent company
Minority interest 575,683,432.78 559,590,204.87
Total ownership interest 15,842,476,556.57 15,179,411,513.47
Total liabilities & ownership interest 26,096,806,585.74 24,201,348,154.75
Legal representative: Lv Liang
Officer in charge of accounting: Lv Liang
Head of accounting department : Qiu Renbo
2. Balance sheet of the parent company
Unit: RMB yuan
Item March 31, 2021 December 31, 2020
Current assets:
Monetary funds 1,927,952,018.47 1,889,264,142.30
Financial assets for trade
Derivative financial assets
Notes receivable
Accounts receivable 4,605,456,017.98 3,287,882,027.51
Accounts receivable financing 140,562,428.19 214,871,707.01
Advance payments 151,868,978.67 121,268,106.62
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Other receivables 831,426,696.13 798,152,353.96
Including: Interests receivable
Dividends receivable 3,363,380.00 3,363,380.00
Inventories 2,048,980,648.83 1,845,977,070.46
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 178,925.49
Total current assets 9,706,425,713.76 8,157,415,407.86
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 4,926,372,288.65 4,847,172,288.65
Other equity instrument
94,312,742.49 94,312,742.49
investments
Other non-current financial assets
Real estate properties for
8,009,018.38 8,125,576.54
investment
Fixed assets 160,483,855.83 159,486,234.04
Constructions in progress 1,675,593.95 342,161.41
Biological assets for production
Oil & gas assets
Right-of-use assets 17,789,020.23
Intangible assets 55,280,981.38 56,448,575.54
Development expenditures
Goodwill
Long-term unamortized expenses 570,028.87 645,902.07
Deferred income tax assets 45,918,388.57 45,918,388.57
Other non-current assets 32,979,221.51 96,882,664.08
Total non-current assets 5,343,391,139.86 5,309,334,533.39
Total assets 15,049,816,853.62 13,466,749,941.25
Current liabilities:
Short-term borrowing 890,894,904.44 930,813,369.36
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Financial liabilities for trade
Derivative financial liabilities
Notes payable 375,592,591.45 180,042,270.63
Accounts payable 2,501,142,155.61 2,421,476,904.57
Advance receipts
Contract liabilities 77,103,416.11 32,577,236.92
Employee benefits payable 3,626,281.84 8,530,961.48
Taxes and fees payable 84,310,788.28 154,676,067.87
Other payables 1,801,418,576.73 518,390,330.44
Including: Interests payable
Dividends payable 224,219.60 224,219.60
Liabilities held for sale
Non-current liabilities due within
one year
Other current liabilities 9,938,658.37 4,273,258.99
Total current liabilities 5,744,027,372.83 4,250,780,400.26
Non-current liabilities:
Long-term borrowing
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 16,349,880.61
Long-term payables
Long-term employee
compensation payable
Estimated liabilities
Deferred gains 40,057,442.22 40,698,910.95
Deferred income tax liabilities 10,888,106.00 10,888,106.00
Other non-current liabilities
Total non-current liabilities 67,295,428.83 51,587,016.95
Total liabilities 5,811,322,801.66 4,302,367,417.21
Ownership interest:
Share capital 1,749,809,548.00 1,749,809,548.00
Other equity instruments
Including: Preferred shares
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Perpetual bonds
Capital reserve 2,168,451,528.01 2,168,451,528.01
Less: Treasury shares
Other comprehensive income 3,051,311.29 3,051,311.29
Special reserve
Surplus reserve 939,536,337.86 939,536,337.86
Undistributed profit 4,377,645,326.80 4,303,533,798.88
Total ownership interest 9,238,494,051.96 9,164,382,524.04
Total liabilities & ownership interest 15,049,816,853.62 13,466,749,941.25
3. Consolidated income statement
Unit: RMB yuan
Item Amount incurred during the current period Amount incurred during the previous period
I. Total operating income 8,896,632,277.36 8,598,069,911.29
Including: Operating income 8,896,632,277.36 8,598,069,911.29
Interests received
Premiums earned
Handling fees and
commissions received
II. Total operating cost 8,007,420,920.98 7,564,443,071.57
Including: Operating cost 5,805,133,494.78 5,120,894,107.30
Interests paid
Handling fees and
commissions paid
Surrender value
Net payment of insurance
claims
Net appropriation of policy
reserve
Policy dividends paid
Reinsurance expenses
Taxes and surcharges 47,690,370.04 56,323,252.14
Selling expenses 1,648,517,354.06 1,911,431,524.11
Administrative expenses 277,542,542.53 196,704,190.05
R&D expenses 220,005,691.36 263,330,349.34
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Financial expenses 8,531,468.21 15,759,648.63
Including: Interests paid 21,152,531.52 26,067,525.96
Interests received 19,057,526.99 13,915,252.93
Add: Other gains 76,459,624.41 20,044,478.23
Investment gains (Losses are
-26,664,999.81 -1,256,335.99
indicated by “-”)
Including: Investment gains
-11,551,820.09 2,349,891.83
from associates and joint ventures
Gains from the
derecognition of financial assets
measured at amortized cost
Gains on exchange (Losses are
indicated by “-”)
Gains on net exposure hedging
(Losses are indicated by “-”)
Gains on changes in fair value
(Losses are indicated by “-”)
Credit impairment loss (Losses
are indicated by “-”)
Assets impairment loss (Losses
are indicated by “-”)
Gains on assets disposal
304,336.80 306,269,024.44
(Losses are indicated by “-”)
III. Operating profit (Losses are indicated
939,310,317.78 1,358,684,006.40
by “-”)
Add: Non-operating income 338,562.61 3,389,386.17
Less: Non-operating expenditure 3,024,042.00 8,912,738.92
IV. Total profit (Total losses are
936,624,838.39 1,353,160,653.65
indicated by “-”)
Less: Income tax expenses 162,150,853.94 199,734,863.73
V. Net profit (Net losses are indicated by
774,473,984.45 1,153,425,789.92
“-”)
(I) Categorized by the continuity of
operations
1. Net profit from continued
operations (Net deficit is indicated by 774,473,984.45 1,153,425,789.92
“-”)
2. Net profit from discontinued
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
operations (Net deficit is indicated by
“-”)
(II) Categorized by attribution of the
ownership
1. Net profit attributable to owners
758,380,756.56 1,147,278,457.64
of the parent company
2. Gains/losses of minority
16,093,227.89 6,147,332.28
shareholders
VI. Net amount after tax of other
118,964,837.49 25,505,735.47
comprehensive income
Net amount after tax of other
comprehensive income attributable to 118,964,837.49 25,505,735.47
owners of the parent company
(I) Other comprehensive income that
3,113,977.59 -1,372,747.73
cannot be reclassified into gains/losses
1. Changes in
remeasurement on the defined benefit
plan
2. Other comprehensive
income that cannot be reclassified into
gains/losses under equity method
3. Changes in fair value of
3,113,977.59 -1,372,747.73
other equity instrument investments
4. Changes in fair value of
credit risk of the enterprise
5. Others
(II) Other comprehensive income to
115,850,859.90 26,878,483.20
be reclassified into gains/losses
1. Other comprehensive
income that can be reclassified into
gains/losses under equity method
2. Changes in fair value of
other debt investments
3. Amount of financial assets
reclassified into other comprehensive
income
4. Credit impairment reserve
of other debt investments
5. Cash flow hedging reserve
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
6. Exchange differences arise
from translation of foreign currency 115,850,859.90 26,878,483.20
financial statements
7. Others
Net amount after tax of other
comprehensive income attributable to
minority shareholders
VII. Total comprehensive income 893,438,821.94 1,178,931,525.39
Total comprehensive income
attributable to owners of the parent 877,345,594.05 1,172,784,193.11
company
Total comprehensive income
16,093,227.89 6,147,332.28
attributable to minority shareholders
VIII. Earnings per share (EPS):
(I) Basic EPS 0.4334 0.6557
(II) Diluted EPS 0.4334 0.6557
As for enterprise merger under the same control in the current period, the net profit generated by the merged party before the merger
is 0 yuan, and that generated during the previous period is 0 yuan.
Legal representative : Lv Liang
Officer in charge of accounting: Lv Liang
Head of accounting department : Qiu Renbo
4. Income statement of the parent company
Unit: RMB yuan
Item Amount incurred during the current period Amount incurred during the previous period
I. Operating income 4,411,190,493.22 3,694,664,751.43
Less: Operating cost 4,169,998,953.67 3,503,394,474.09
Taxes and surcharges 2,157,678.68 1,742,409.45
Selling expenses 100,670,963.76 85,694,504.17
Administrative expenses 44,818,463.76 34,825,269.77
R&D expenses
Financial expenses 3,573,509.34 14,360,429.84
Including: Interests paid 15,131,329.65 21,895,125.22
Interests received 11,912,012.50 5,644,762.49
Add: Other gains 2,727,556.12 5,462,052.44
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Investment gains (Losses are
6,273,981.02 1,132,672,992.82
indicated by “-”)
Including: Investment gains
from associates and joint ventures
Income from the
derecognition of financial assets
measured at amortized cost (Losses are
indicated by “-”)
Gains on net exposure
hedging (Losses are indicated by “-”)
Gains on changes in fair value
(Losses are indicated by “-”)
Credit impairment loss
(Losses are indicated by “-”)
Assets impairment loss
(Losses are indicated by “-”)
Gains on assets disposal
-19,470.99 -7,754.30
(Losses are indicated by “-”)
II. Operating profit (Losses are
98,952,990.16 1,192,774,955.04
indicated by “-”)
Add: Non-operating income 1,823.74 2,525,818.53
Less: Non-operating expenditure 224,624.78 2,532,343.76
III. Total profit (Total losses are
98,730,189.12 1,192,768,429.81
indicated by “-”)
Less: Income tax expenses 24,621,857.52 16,817,107.45
IV. Net profit (Net losses are indicated
74,108,331.60 1,175,951,322.36
by “-”)
(I) Net profit from continued
operations (Net losses are indicated by 74,108,331.60 1,175,951,322.36
“-”)
(II) Net profit from discontinued
operations (Net deficit is indicated by
“-”)
V. Net amount after tax of other
comprehensive income
(I) Other comprehensive income
that cannot be reclassified into
gains/losses
1. Changes in
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
remeasurement on the defined benefit
plan
2. Other comprehensive
income that cannot be reclassified into
gains/losses under equity method
3. Changes in fair value of
other equity instrument investments
4. Changes in fair value of
credit risk of the enterprise
5. Others
(II) Other comprehensive income
to be reclassified into gains/losses
1. Other comprehensive
income that can be reclassified into
gains/losses under equity method
2. Changes in fair value of
other debt investments
3. Amount of financial
assets reclassified into other
comprehensive income
4. Credit impairment
reserve of other debt investments
5. Cash flow hedging
reserve
6. Exchange differences
arise from translation of foreign
currency financial statements
7. Others
VI. Total comprehensive income 74,108,331.60 1,175,951,322.36
VII. Earnings per share (EPS):
(I) Basic EPS
(II) Diluted EPS
5. Consolidated cash flow statement
Unit: RMB yuan
Item Amount incurred during the current period Amount incurred during the previous period
28
The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
I. Cash flows from operating activities:
Cash from the sale of goods and
8,756,095,736.42 7,665,300,254.21
provision of services
Net increase in customer deposits
and due from banks
Net increase in borrowing from the
central bank
Net increase in borrowing from
other financial institutions
Cash from the premium of the
original insurance policy
Net cash from reinsurance
Net increase in deposits and
investment of the insured
Cash from interests, handling fees
and commissions
Net increase in borrowing from
other banks and other financial
institutions
Net increase in funds for
repurchase
Net cash received for buying and
selling securities as proxy
Tax refund received 625,547.43 1,138,819.80
Other cash receipts in relation to
196,821,042.17 362,756,808.71
operating activities
Total cash inflows from operating
8,953,542,326.02 8,029,195,882.72
activities
Cash payments for goods and
6,125,835,203.59 5,198,144,232.17
services
Net increase in customer loans and
prepayments
Net increase in deposits of central
bank and due from banks
Cash for payment of original
insurance claims
Net increase in lending to other
banks and other financial institutions
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Cash for payment of interests,
handling fees and commissions
Cash for payment of policy
dividends
Cash payments to and for
653,692,760.67 579,438,808.77
employees
Payment of taxes and fees 456,958,349.66 453,422,088.98
Other cash payments in relation to
1,414,741,847.62 1,579,411,128.91
operating activities
Total cash outflows for operating
8,651,228,161.54 7,810,416,258.83
activities
Net cash flows from operating activities 302,314,164.48 218,779,623.89
II. Cash flows from investing activities
Cash from recovery of investments
Cash from investment gains
Net cash from disposal of fixed
assets, intangible assets and other 50,504.23 345,902,424.29
long-term assets
Net cash from disposal of
subsidiaries and other business units
Other cash receipts in relation to
investing activities
Total cash inflows from investing
50,504.23 345,902,424.29
activities
Cash payments for purchase and
construction of fixed assets, intangible 302,645,383.17 267,014,841.51
assets and other long-term assets
Cash payments for investment 105,706,000.00 100,000,000.00
Net increase in pledge loans
Net cash paid for acquisition of
subsidiaries and other business units
Other cash payments in relation to
78,680,000.00
investing activities
Total cash outflows for investing
487,031,383.17 367,014,841.51
activities
Net cash flows from investing activities -486,980,878.94 -21,112,417.22
III. Cash flows from financing
activities:
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Cash from absorbing investments
Including: Cash from absorption of
minority shareholders’ investments by
subsidiaries
Cash from borrowing 852,692,161.43 684,996,551.61
Other cash receipts in relation to
financing activities
Total cash inflows from financing
852,692,161.43 684,996,551.61
activities
Cash for repayment of debt 710,289,400.95 536,798,734.58
Cash payments for dividends,
28,945,045.60 34,425,592.85
profits or interests
Including: Payment of dividends
and profits by subsidiaries to minority 24,500,000.00
shareholders
Other cash payments in relation to
261,000.00 2,794,710.80
financing activities
Total cash outflows for financing
739,495,446.55 574,019,038.23
activities
Net cash flows from financing activities 113,196,714.88 110,977,513.38
IV. Influence of exchange rate
fluctuations on cash and cash -2,854,862.94 7,174,858.69
equivalents
V. Net increase in cash and cash
-74,324,862.52 315,819,578.74
equivalents
Add: Balance of cash and cash
equivalents at the beginning of the 3,157,407,073.26 2,231,771,546.50
period
VI. Balance of cash and cash
3,083,082,210.74 2,547,591,125.24
equivalents at the end of the period
6. Cash flow statement of the parent company
Unit: RMB yuan
Item Amount incurred during the current period Amount incurred during the previous period
I. Cash flow from operating activities:
Cash from the sale of goods and 3,715,003,658.99 3,511,097,388.40
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
provision of services
Tax refunds received
Other cash receipts in relation to
224,182,830.38 222,397,124.86
operating activities
Total cash inflows from operating
3,939,186,489.37 3,733,494,513.26
activities
Cash payments for goods and
4,567,115,197.95 3,836,435,683.47
services
Cash payments to and for
93,582,035.23 74,881,392.11
employees
Payment of taxes and fees 111,813,964.47 31,131,815.13
Other cash payments in relation to
64,607,824.15 93,412,588.78
operating activities
Total cash outflow under operating
4,837,119,021.80 4,035,861,479.49
activities
Net cash flow from operating activities -897,932,532.43 -302,366,966.23
II. Cash flows from investing activities:
Cash from recovery of investments
Cash from investment gains 175,500,000.00
Net cash from disposal of fixed
assets, intangible assets and other 35,000.00
long-term assets
Net cash from disposal of
subsidiaries and other business units
Other cash receipts in relation to
193,931,036.10 217,902,741.44
investing activities
Total cash inflows from investing
193,931,036.10 393,437,741.44
activities
Cash payments for purchase and
construction of fixed assets, intangible 15,093,382.34 3,423,339.18
assets and other long-term assets
Cash payments for investment 79,200,000.00 2,530,810.80
Net cash paid for acquisition of
subsidiaries and other business units
Other cash payments in relation to
234,751,290.00 160,000,000.00
investing activities
Total cash outflows for investing
329,044,672.34 165,954,149.98
activities
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Net cash flows from investing activities -135,113,636.24 227,483,591.46
III. Cash flows from financing
activities:
Cash from absorbing investments
Cash from borrowing 359,345,278.50 310,202,546.78
Other cash receipts in relation to
1,239,000,000.00 218,391,068.03
financing activities
Total cash inflows from financing
1,598,345,278.50 528,593,614.81
activities
Cash for repayment of debt 399,995,396.12 115,202,547.58
Cash payments for dividends,
25,255,460.89 3,495,155.18
profits or interest
Other cash payments in relation to
101,360,376.65 67,321,291.66
financing activities
Total cash outflows for financing
526,611,233.66 186,018,994.42
activities
Net cash flows from financing activities 1,071,734,044.84 342,574,620.39
IV. Influence of exchange rate
fluctuations on cash and cash 1,987,917.74
equivalents
V. Net increase in cash and cash
38,687,876.17 269,679,163.36
equivalents
Add: Balance of cash and cash
equivalents at the beginning of the 1,889,254,142.30 893,929,724.56
period
VI. Balance of cash and cash
1,927,942,018.47 1,163,608,887.92
equivalents at the end of the period
II. Notes on adjustments of financial statements
1、Adjustments to financial statement items at the beginning of the year of the first implementation of the new
accounting standards governing leases which have been implemented since 2021
√ Applicable □N/A
Whether any balance sheet items at the beginning of the year requires adjustment
√Yes □ No
Consolidated balance sheet
33
The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Unit: RMB yuan
Item December 31, 2020 January 1, 2021 Adjustment
Current assets:
Cahs and bank balances 3,198,080,997.82 3,198,080,997.82
Accounts receivable 6,137,675,568.82 6,137,675,568.82
Accounts receivable for
828,659,217.25 828,659,217.25
financing
Prepayments 250,916,482.07 250,916,482.07
Other receivables 87,269,489.82 87,269,489.82
Dividends receivable 4,195,666.37 4,195,666.37
Inventories 4,067,635,254.80 4,067,635,254.80
Other current assets 85,654,691.58 85,654,691.58
Total current assets 14,655,891,702.16 14,655,891,702.16
Non-current assets:
Long-term equity
850,072,053.02 850,072,053.02
investments
Other equity instrument
225,453,120.05 225,453,120.05
investments
Real estate properties
17,792,735.95 17,792,735.95
for investment
Fixed assets 2,420,366,582.92 2,420,366,582.92
Constructions in
2,240,201,926.65 2,240,201,926.65
progress
Right-of-use assets 170,756,580.56 170,756,580.56
Intangible assets 1,463,242,463.99 1,463,242,463.99
Goodwill 1,469,617,262.10 1,469,617,262.10
Long-term unamortized
8,811,339.43 8,811,339.43
expenses
Deferred tax assets 137,829,774.40 137,829,774.40
Other non-current assets 712,069,194.08 712,069,194.08
Total non-current assets 9,545,456,452.59 9,716,213,033.15 170,756,580.56
Total assets 24,201,348,154.75 24,372,104,735.20 170,756,580.56
Current liabilities:
Short-term borrowing 1,416,932,884.87 1,416,932,884.87
Notes payable 554,336,058.71 554,336,058.71
Accounts payable 3,947,044,331.68 3,947,044,331.68
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Receipts in Advance 951,926.56 951,926.56
Contract liabilities 94,384,629.77 94,384,629.77
Payroll payable 152,106,819.91 152,106,819.91
Taxes payable 571,792,475.80 571,792,475.80
Other payables 1,817,529,820.99 1,817,529,820.99
Dividends payable 224,219.60 224,219.60
Non-current liabilities
67,813,886.68 67,813,886.68
due within one year
Other current liabilities 10,786,034.37 10,786,034.37
Total current liabilities 8,633,678,869.34 8,633,678,869.34
Non-current liabilities:
Long-term borrowing 151,611,367.86 151,611,367.86
Lease liabilities 169,732,063.50 169,732,063.50
Long-term payables 26,812,354.90 26,812,354.90
Provisions 39,467,829.23 39,467,829.23
Deferred income 81,628,032.54 81,628,032.54
Deferred tax liabilities 88,738,187.41 88,738,187.41
Total non-current liabilities 388,257,771.94 557,989,835.44 169,732,063.50
Total liabilities 9,021,936,641.28 9,191,668,704.78 169,732,063.50
Owners’ Equity:
Share capital 1,749,809,548.00 1,749,809,548.00
Capital reserves 2,158,080,661.07 2,158,080,661.07
Other comprehensive
-2,191,069.45 -2,191,069.45
income
Surplus reserves 861,680,578.42 861,680,578.42
Retained earnings 9,852,441,590.56 9,853,466,107.62 1,024,517.06
Total owners’ equity
attributable to owner of the 14,619,821,308.60 14,620,845,825.66 1,024,517.06
Company
Minority interest 559,590,204.87 559,590,204.87
Total owners’ equity 15,179,411,513.47 15,180,436,030.43 1,024,517.06
Total liabilities & owners’
24,201,348,154.75 24,372,104,735.10 170,756,580.56
equity
Adjustment description
The company will implement the new lease standard from January 1, 2021. According to the cumulative impact of
the first implementation of the standard, the amount of retained earnings and other related items in the financial
35
The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
statements at the beginning of the year when the standard is first implemented will be adjusted, and the
information of the comparable period will not be adjusted.
Balance sheet of the parent company
Unit: RMB yuan
Item December 31, 2020 January 1, 2021 Adjustment
Current assets:
Cash and bank balances 1,889,264,142.30 1,889,264,142.30
Accounts receivable 3,287,882,027.51 3,287,882,027.51
Accounts receivable for
214,871,707.01 214,871,707.01
financing
Prepayments 121,268,106.62 121,268,106.62
Other receivables 798,152,353.96 798,152,353.96
Dividends receivable 3,363,380.00 3,363,380.00
Inventories 1,845,977,070.46 1,845,977,070.46
Total current assets 8,157,415,407.86 8,157,415,407.86
Non-current assets:
Long-term equity
4,847,172,288.65 4,847,172,288.65
investments
Other equity instrument
94,312,742.49 94,312,742.49
investments
Real estate properties
8,125,576.54 8,125,576.54
for investment
Fixed assets 159,486,234.04 159,486,234.04
Constructions in
342,161.41 342,161.41
progress
Right-of-use assets 19,610,573.47 19,610,573.47
Intangible assets 56,448,575.54 56,448,575.54
Long-term unamortized
645,902.07 645,902.07
expenses
Deferred tax assets 45,918,388.57 45,918,388.57
Other non-current assets 96,882,664.08 96,882,664.08
Total non-current assets 5,309,334,533.39 5,328,945,106.86
Total assets 13,466,749,941.25 13,486,360,514.72 19,610,573.47
Current liabilities:
Short-term borrowing 930,813,369.36 930,813,369.36
Notes payable 180,042,270.63 180,042,270.63
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
Accounts payable 2,421,476,904.57 2,421,476,904.57
Contract liabilities 32,577,236.92 32,577,236.92
Payroll payable 8,530,961.48 8,530,961.48
Taxes payable 154,676,067.87 154,676,067.87
Other payables 518,390,330.44 518,390,330.44
Dividends payable 224,219.60 224,219.60
Other current liabilities 4,273,258.99 4,273,258.99
Total current liabilities 4,250,780,400.26 4,250,780,400.26
Non-current liabilities:
Lease liabilities 19,607,377.15 19,607,377.15
Deferred income 40,698,910.95 40,698,910.95
Deferred tax liabilities 10,888,106.00 10,888,106.00
Total non-current liabilities 51,587,016.95 51,587,016.95
Total liabilities 4,302,367,417.21 4,321,974,794.36 19,607,377.15
Owners’ Equity:
Share capital 1,749,809,548.00 1,749,809,548.00
Capital reserves 2,168,451,528.01 2,168,451,528.01
Other comprehensive
3,051,311.29 3,051,311.29
income
Surplus reserves 939,536,337.86 939,536,337.86
Retained earnings 4,303,533,798.88 4,303,536,995.20 3,196.32
Total owners’ equity 9,164,382,524.04 9,164,385,720.36 3,196.32
Total liabilities & owners’
13,466,749,941.25 13,466,753,137.72 19,610,573.47
equity
Adjustment description
The company will implement the new lease standard from January 1, 2021. According to the cumulative impact of
the first implementation of the standard, the amount of retained earnings and other related items in the financial
statements at the beginning of the year when the standard is first implemented will be adjusted, and the
information of the comparable period will not be adjusted.
2、Retrospective adjustments to comparative data of the previous period due to the first implementation of the new
accounting standards leases since 2021
□ Applicable √ N/A
III. Audit report
Has the first quarterly report been audited?
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The First Quarterly Report 2021 of Huadong Medicine Co., Ltd.
□ Yes √ No
The first quarterly report has not been audited.
Huadong Medicine Co., Ltd.
Chairman of the Board: Lv Liang
April 28, 2021
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