China National Accord Medicines Corporation Ltd. Full Text of First Quarterly Report for 2012
China National Accord Medicines Corporation Ltd.
The First Quarterly Report 2012
§1. Important Notes
1.1 Board of Directors and the Supervisory Committee of China National Accord Medicines
Corporation Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior
executives 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.
1.2 The First Quarterly Financial Report of 2012 has not been audited by CPAs.
1.3 All directors attended the voting meeting of the board of directors for examining the quarterly
report by communication.
1.4 Mr. Wei Yulin, Chairman of the Company; Mr. Yan Zhigang, Director General Manager; Mr.
Wei Pingxiao, CFO and Mr. Chi Guoguang, Financial Manager hereby confirm that the Financial
Report of the First Quarterly Report is true and complete.
§2. Company Profile
2.1 Main accounting highlights and financial indexes
Unit: RMB
At the period-end of the last year
At the end of the Changes of
Before
report period After adjustment increase/decrease (%)
adjustment
Total assets (RMB) 8,069,831,512.29 7,665,759,761.04 7,680,629,146.67 5.07%
Owners’ equity attributable to
shareholders of the listed company 1,467,647,406.10 1,350,093,276.86 8.71%
1,350,217,871.35
(RMB)
Total share capital (Share) 288,149,400.00 288,149,400.00 0.00%
288,149,400.00
Net asset per share attributable to
shareholders of listed company 5.093 4.686 4.685 8.71%
(RMB/Share)
The same period of last year
Changes of
In the report period Before
After adjustment increase/decrease (%)
adjustment
Total operating income (RMB) 4,274,691,013.50 3,526,818,451.42 3,534,426,881.47 20.94%
Net profit attributable to shareholders of
121,822,129.24 87,259,288.17 87,197,481.02 39.71%
the listed company (RMB)
Net cash flow arising from operating
-271,437,536.92 -316,947,045.11 -317,332,260.53 -14.46%
activities (RMB)
Net cash flow arising from operating
-0.942 -1.100 -1.101 -14.44%
activities per share (RMB/Share)
Basic earnings per share (RMB/Share) 0.423 0.303 0.303 39.60%
Diluted earnings per share (RMB/Share) 0.423 0.303 0.303 39.60%
Weighted average return on equity (%) 8.63% 7.96% 7.94% 0.69%
Weighted average return on equity after
deducting non-recurring gains and 8.58% 7.70% 7.69% 0.89%
losses (%)
Items of non-recurring gains and losses
√ Applicable □ Inapplicable
Unit: RMB
Items of non-recurring gains and losses Amount from Remarks (If
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China National Accord Medicines Corporation Ltd. Full Text of First Quarterly Report for 2012
year-begin to applicable)
period-end
Gains and losses from the disposal of non-current assets -35,049.59
Governmental subsidy reckoned into current gains and losses,
but closely relevant to the Company’s business except for the
1,284,500.28
governmental subsidy enjoyed in quota or ration according to
the national general standards
Current net gains/losses of subsidiary generated from
period-begin to consolidation date by enterprise merger under -175,050.36
same control
Impairment provision reversal on account receivable which
242,309.84
conducting impairment testing separately
Other non-operating income and expenditure except for the
199,552.20
above items
Influenced amount of minority shareholders’ equity -440,050.00
Influenced amount of income tax -268,622.84
Total 807,589.53 -
2.2 Total number of shareholders at the end of the report period and shares held by the top
ten shareholders with unrestricted conditions
Unit: Share
Total number of shareholders
18,481
at the end of report period
Particulars about the shares held by the top ten tradable shareholders with unrestricted conditions
Amount of tradable shares with
Full name of shareholder unrestricted conditions held at Type of shares
the end of report period
SINOPHARM GROUP CO., LTD. 110,459,748 RMB common share
ICBC－GUANGFA JUFENG
13,285,477 RMB common share
STOCK FUND
ICBC—HARVEST THEME NEW
10,290,292 RMB common share
POWER STOCK FUND
HTHK/CMG FSGUFP-CMG FIRST Domestically listed foreign
7,032,720
STATE CHINA GROWTH FD share
ABC—GREATWAL ANXIN
7,000,000 RMB common share
RETURN MEX STOCK FUND
ICBC—HARVEST STRATEGY
4,256,042 RMB common share
GROWTH MIXED STOCK FUND
ABC—JINSHUN GREATWALL
RESOURCES MONOPOLY 4,001,481 RMB common share
STOCK FUND (LOF)
ICBC- GD STRATEGY
SELECTED MIXED STOCK 3,996,486 RMB common share
FUND
ICBC – UNIVERSAL BALANCE
3,721,291 RMB common share
GWORTH STOCK FUND
CCB—GREATWALL CONSUMER
3,292,879 RMB common share
VALUE-ADDED STOCK FUND
§3. Significant Events
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China National Accord Medicines Corporation Ltd. Full Text of First Quarterly Report for 2012
3.1 Particulars about material changes in items of main accounting statement and financial
index, and explanations of reasons
√Applicable □Inapplicable
1. Account paid in advance at period-end increase 48.18 million yuan over that of period-begin with
rate of 73.15 percent up. Mainly because the projects and equipment amount paid in advance
increased from Zhijun Pharmaceutical, subsidiary of the Company; meanwhile, amount paid for good
purchasing in advance increased due to soaring sales.
2. Other account receivable at period-end increase 10.59 million yuan over that of period-begin with
rate of 36.96 percent up. Mainly because acquisition of subsidiary Sinopharm Zhaoqing in this period
and amount of office establishment of Sinopharm Guangxi, subsidiary of the Company pre-paid.
3. Other current assets at period-end decrease 5.16 million yuan over that of period-begin with rate of
-67.44 percent up. Mainly because excess payable VAT and income tax decreased.
4. Account paid in advance at period-end increase 29.61 million yuan over that of period-begin with
rate of 50.44 percent up. Mainly because Zhijun Pharmaceutical, subsidiary of the Company, shows
favorable condition in aspect of sales, amount for goods received in advance increased.
5. Wages payable at period-end decrease 43.8 million yuan over that of period-begin with rate of
-30.75 percent up. Mainly because some of the remuneration, accrual last year, have been paid in this
period.
6. Taxes payable at period-end increase 28.09 million yuan over that of period-begin with rate of
44.17 percent up. Mainly because vary taxes growth due to soaring sales and higher profitability.
7. Long-term loans at period-end increase 37.12 million yuan over that of period-begin with rate of
39.88 percent up. Mainly because the new loans for Sinopharm Guangxi Logistic Park project,
subsidiary of the Company, and phase II, Guanlan, Medicine R & D base of Zhijun Pharmaceutical,
subsidiary of the Company.
8. Capital reserve at period-end decrease 3.06 million yuan over that of period-begin with rate of
-35.52 percent up. Mainly because Sinopharm Wuzhou Company was merged by the Company under
same control, the make a retroactive adjustment on amount at year-begin.
9. Financial expense has a y-o-y growth of 19.29 million yuan with 73.78 percent up. Mainly because
on one hand, lending rates growth affected by monetary tightening policy of the State; on the other
hand, financing cost increased due to financing scale enlarged.
10. Loss of assets impairment has a y-o-y decrease of 5.17 million yuan with -95.92 percent up.
Mainly because strictly control in inventory management and rapid up turnover of the inventory, and
depreciation provision for inventory accrued decreased.
11. Non-operating income has a y-o-y decline of 0.95 million yuan with -33.57 percent up. Mainly
because government subsidy obtained in this period decreased over same period of last year.
12. Non-operating expenses have a y-o-y growth of 0.4 million yuan with 1,097.66 percent up.
Mainly because external donation and losses from disposal of non-current assets show an increase
over same period of last year.
13. Net profit has a y-o-y growth of 33.91 million yuan with 38.14 percent up. Mainly because sales
scale enlarged, and by controlling reasonable expenses and adjusted product’s structure for
subordinate subsidiaries of the Company, profitability gains a more room for growth.
14. Minority interest income has a y-o-y decline of 0.72 million yuan with -42.30 percent up. Mainly
because Zhijun Wanqing, subsidiary of the Company, has a lower net profit than same period of last
year.
15. Taxes returned received have a y-o-y growth of 90,000 yuan with 116.38 percent up. Mainly
because Zhijun Medicine Trade Company, subsidiary of the Company, has a higher export return tax
than same period of last year.
16. Other cash received from operating activities have a y-o-y decline of 10.45 million yuan with
-36.99 percent up. Mainly because government subsidy and other items obtained in this period have
lower amount than same period of last year.
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China National Accord Medicines Corporation Ltd. Full Text of First Quarterly Report for 2012
17. Net cash received from disposal of fixed assets, intangible assets and other long-term assets have
a y-o-y decline of 0.3 million yuan with -58.85 percent up. Mainly because Zhijun Pharmaceutical,
subsidiary of the Company, disposed some of the vehicle at same period of last year while no such
business occurred in this period.
18. Other cash received from investment activities have a y-o-y decline of 1.91 million yuan with
-100 percent up. Mainly because Sinopharm Guangxi Logistic, subsidiary of the Company, obtained
supporting grant for logistic projects from Nanning Economy Development Zone at same period of
last year while no such business occurred in this period.
19. Acquisition of subsidiaries and other business units，net cash have a y-o-y growth of 5.09 million
yuan with 100 percent up. Mainly because Sinopharm Zhaoqing and Sinopharm Wuzhou were
acquired by the Company in this period whiles no such business occurred at same period of last year.
20. Other cash paid for investment activities have a y-o-y decline of 9.7 million yuan with -100
percent up. Mainly because Sinopharm Guangxi paid balance of business acquisition of Nanning
Medicine at same period of last year while no such business occurred in this period.
21. Other cash received from financing activities have a y-o-y growth of 326.42 million yuan with
1,732.72 percent up. Mainly because entrusted loans were increased and application of financing
instrument of supplying chains for purpose of supporting business development.
22. Cash paid for debt settlement have a y-o-y growth of 108.73 million yuan with 105.60 percent up.
Mainly because loans growth that debt payment correspondingly increased.
23. Cash paid for dividend and profit distribution or interest settlement have a y-o-y growth of 18.36
million yuan with 97.12 percent up. Mainly because financing cost increased due to financing scale
enlarged.
24. Other cash paid for financing activities have a y-o-y growth of 284.62 million yuan with 869.66
percent up. Mainly because entrusted loans were paid in this period and financing from supplying
chains increased over same period of last year.
25. influence on cash and cash equivalent from exchange rate movement has a y-o-y decline of 2,800
yuan with -1,528.95 percent up. Mainly because of the amount of foreign currency held increased.
3.2 Analysis and explanation of significant events and their influence and solutions
3.2.1 Particular about Qualified Opinion
□Applicable √Inapplicable
3.2.2 Particular about fund offered to shareholder or its related parties by the Company and
external guarantee with procedure violation
□Applicable √Inapplicable
3.2.3 Particular about the significant contract of routine operation signed and implemented
□Applicable √Inapplicable
3.2.4 Other
√Applicable □Inapplicable
The Company purchased Sinopharm Wuzhou Co., Ltd. under same control in March 2012, made
adjustment on comparison statements dated March 2011 in line with relevant regulations of
“Accounting Standards for Business Enterprises No. 20 –Business Combination”. Income from
January to March for year of 2011 increased 7.69 million yuan, net profit increased -60,000 yuan and
net cash flow arising from operating activities increased -390,000 yuan while combined Sinopharm
Wuzhou Co., Ltd.
3.3 Implementations of commitments by the Company, shareholders and actual controller
Commitments make within the report period or persisted to the period by listed company and its
director, supervisor and senior executives, shareholder with over 5 percent shares held and its actual
controller
□Applicable √Inapplicable
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China National Accord Medicines Corporation Ltd. Full Text of First Quarterly Report for 2012
3.4 Estimation of 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 of reason
□Applicable √Inapplicable
3.5 Other significant events which need explanations
3.5.1 Particulars about securities investment
□Applicable √Inapplicable
3.5.2 Registration form for receiving research, communication and interview in the report
period
No acceptation of research, communication and interview in this report period.
3.6 Particulars about derivatives investment
□Applicable √Inapplicable
3.6.1 Particulars about derivatives investment held at the end of report period
□Applicable √Inapplicable
§4. Appendix
4.1 Balance sheet
Prepared by China National Accord Medicines Corporation Ltd. March 31, 2012 Unit: RMB
Balance at period-end Balance at year-begin
Items
Consolidation Parent Company Consolidation Parent Company
Current assets:
Monetary funds 769,068,141.00 123,315,486.70 952,950,167.56 164,840,499.86
Settlement provisions
Capital lent
Transaction finance
asset
Notes receivable 645,659,095.89 16,583,240.02 534,922,741.30 8,718,971.96
Accounts receivable 4,089,854,384.91 383,292,855.69 3,580,559,211.65 295,227,856.20
Accounts paid in
114,035,437.98 8,264,618.77 65,857,961.31 3,148,580.55
advance
Insurance receivable
Reinsurance receivables
Contract reserve of
reinsurance receivable
Interest receivable
Dividend receivable
Other receivables 624,957,803.73 28,656,020.58 704,287,016.32
Purchase restituted
finance asset
Inventories 1,225,868,343.47 91,141,533.79 1,313,213,414.68 125,157,825.01
Non-current asset due
within one year
Other current assets 2,492,195.25 7,653,736.21 39,482.38
Total current assets 6,886,224,450.23 1,247,555,538.70 6,483,813,253.29 1,301,420,232.28
Non-current assets:
Granted loans and
advances
Finance asset available
for sales
Held-to-maturity
investment
Long-term account
receivable
Long-term equity 102,932,656.93 1,339,732,151.31 95,799,627.42 1,332,527,041.51
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China National Accord Medicines Corporation Ltd. Full Text of First Quarterly Report for 2012
investment
Investment property 94,558,835.15 8,344,418.51 86,164,929.70 8,841,071.50
Fixed assets 593,160,565.88 31,957,371.72 602,205,927.87 32,866,561.06
Construction in progress 116,447,937.53 253,886.24 131,042,772.59 253,886.24
Engineering material
Disposal of fixed asset
Productive biological
asset
Oil and gas asset
Intangible assets 112,376,817.02 27,202,516.25 119,601,478.86 27,426,551.44
Expense on Research
4,183,565.99 3,998,433.69
and Development
Goodwill 56,150,018.62 53,555,677.09
Long-term expenses to
19,203,366.41 8,745,948.62 20,103,138.99 9,030,726.77
be apportioned
Deferred income tax
44,676,068.39 5,335,693.52 44,070,064.25 5,335,693.52
asset
Other non-current asset 39,917,230.14 7,000,000.00 40,273,842.92 7,000,000.00
Total non-current asset 1,183,607,062.06 1,428,571,986.17 1,196,815,893.38 1,423,281,532.04
Total assets 8,069,831,512.29 2,676,127,524.87 7,680,629,146.67 2,724,701,764.32
Current liabilities:
Short-term loans 1,951,710,994.95 510,000,000.00 1,839,838,065.68 417,648,980.60
Loan from central bank
Absorbing deposit and
interbank deposit
Capital borrowed
Transaction financial
liabilities
Notes payable 878,933,610.43 91,038,325.49 1,059,426,952.84 120,293,155.72
Accounts payable 2,764,184,066.16 305,762,959.62 2,496,808,221.25 343,946,734.72
Accounts received in
88,314,508.58 54,746.65 58,705,230.49 249,535.25
advance
Selling financial asset of
repurchase
Commission charge and
commission payable
Wage payable 98,619,809.69 21,715,165.04 142,414,446.06 24,966,511.90
Taxes payable 91,693,793.46 3,237,625.01 63,600,830.11 1,640,177.39
Interest payable 10,340,819.33 355,514.19 10,451,229.03 868,585.17
Dividend payable
Other accounts payable 358,519,769.29 786,569,133.38 346,965,182.34 865,237,491.48
Reinsurance payables
Insurance contract
reserve
Security trading of
agency
Security sales of agency
Non-current liabilities
21,500,000.00 23,960,000.00
due within 1 year
Other current liabilities
Total current liabilities 6,263,817,371.89 1,718,733,469.38 6,042,170,157.80 1,774,851,172.23
Non-current liabilities:
Long-term loans 130,203,295.31 93,082,967.96
Bonds payable
Long-term account 34,225.80 35,536.20
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China National Accord Medicines Corporation Ltd. Full Text of First Quarterly Report for 2012
payable
Special accounts
4,287,000.00 800,000.00 4,519,000.00 1,032,000.00
payable
Projected liabilities
Deferred income tax
19,551,637.48 3,773,319.00 19,900,787.30 3,773,319.00
liabilities
Other non-current
106,727,577.56 94,245,023.54
liabilities
Total non-current liabilities 260,803,736.15 4,573,319.00 211,783,315.00 4,805,319.00
Total liabilities 6,524,621,108.04 1,723,306,788.38 6,253,953,472.80 1,779,656,491.23
Owner’s equity (or
shareholders’ equity):
Paid-in capital (or share
288,149,400.00 288,149,400.00 288,149,400.00 288,149,400.00
capital)
Capital public reserve 5,550,338.57 14,348,726.93 8,608,438.57 14,116,726.93
Less: Inventory shares
Reasonable reserve
Surplus public reserve 63,480,745.16 63,480,745.16 63,607,611.63 63,480,745.16
Provision of general risk
Retained profit 1,110,466,922.37 586,841,864.40 989,727,826.66 579,298,401.00
Balance difference of
foreign currency translation
Total owner’s equity
attributable to parent 1,467,647,406.10 952,820,736.49 1,350,093,276.86 945,045,273.09
company
Minority interests 77,562,998.15 76,582,397.01
Total owner’s equity 1,545,210,404.25 952,820,736.49 1,426,675,673.87 945,045,273.09
Total liabilities and owner’s
8,069,831,512.29 2,676,127,524.87 7,680,629,146.67 2,724,701,764.32
equity
4.2 Profit statement
Prepared by China National Accord Medicines Corporation Ltd. Jan.-Mar. 2012 Unit: RMB
Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
I. Total operating income 4,274,691,013.50 525,423,059.94 3,534,426,881.47 453,841,194.44
Including: Operating income 4,274,691,013.50 525,423,059.94 3,534,426,881.47 453,841,194.44
Interest income
Insurance gained
Commission charge and
commission income
II. Total operating cost 4,128,175,649.52 525,426,697.28 3,428,078,335.11 464,486,312.67
Including: Operating cost 3,880,365,134.83 498,089,934.80 3,190,422,022.92 433,808,415.71
Interest expense
Commission charge and
commission expense
Cash surrender value
Net amount of expense
of compensation
Net amount of
withdrawal of insurance
contract reserve
Bonus expense of
guarantee slip
Reinsurance expense
Operating tax and extras 10,249,357.93 1,330,854.18 8,177,784.52 911,988.51
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China National Accord Medicines Corporation Ltd. Full Text of First Quarterly Report for 2012
Sales expenses 115,542,181.90 9,591,216.16 117,886,305.85 7,538,568.30
Administration
76,371,797.88 9,925,545.34 80,064,449.15 15,490,744.57
expenses
Financial expenses 45,427,279.11 6,891,875.19 26,140,058.40 7,050,860.61
Losses of devaluation of
219,897.87 -402,728.39 5,387,714.27 -314,265.03
asset
Add: Changing income
of fair value(Loss is listed
with “-”)
Investment income
7,133,029.51 7,569,709.80 6,273,433.12 6,273,433.12
(Loss is listed with “-”)
Including: Investment
income on affiliated 7,133,029.51 7,133,029.51 6,273,433.12 6,273,433.12
company and joint venture
Exchange income (Loss
is listed with “-”)
III. Operating profit (Loss
153,648,393.49 7,566,072.46 112,621,979.48 -4,371,685.11
is listed with “-”)
Add: Non-operating
1,880,398.82 246,516.01 2,830,817.22 -7.85
income
Less: Non-operating
431,395.93 269,125.07 36,019.88
expense
Including: Disposal loss
81,021.97 69,125.07 8,067.76
of non-current asset
IV. Total Profit (Loss is
155,097,396.38 7,543,463.40 115,416,776.82 -4,371,692.96
listed with “-”)
Less: Income tax 32,294,666.00 26,519,899.57 1,635,778.25
V. Net profit (Net loss is
122,802,730.38 7,543,463.40 88,896,877.25 -6,007,471.21
listed with “-”)
Net profit attributable to
owner’s equity of parent 121,822,129.24 7,543,463.40 87,197,481.02 -6,007,471.21
company
Minority shareholders’
980,601.14 1,699,396.23
gains and losses
VI. Earnings per share
i. Basic earnings per share 0.423 0.303
ii. Diluted earnings per share 0.423 0.303
VII. Other consolidated
income
VIII. Total consolidated
122,802,730.38 7,543,463.40 88,896,877.25 -6,007,471.21
income
Total consolidated income
attributable to owners of 121,822,129.24 7,543,463.40 87,197,481.02 -6,007,471.21
parent company
Total consolidated income
attributable to minority 980,601.14 1,699,396.23
shareholders
Concerning the enterprise consolidation under common control occurred in the period; the mergered
party realized net profit before consolidation amounting to -240,695.14 yuan.
4.3 Cash flow statement
Prepared by China National Accord Medicines Corporation Ltd. Jan.-Mar. 2012 Unit: RMB
Amount in this period Amount in last period
Items
Consolidation Parent Company Consolidation Parent Company
I. Cash flows arising from
operating activities:
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China National Accord Medicines Corporation Ltd. Full Text of First Quarterly Report for 2012
Cash received from
selling commodities and 3,779,498,907.42 484,645,217.07 3,421,356,628.79 512,728,220.34
providing labor services
Net increase of
customer deposit and
interbank deposit
Net increase of loan
from central bank
Net increase of capital
borrowed from other
financial institution
Cash received from
original insurance contract
fee
Net cash received from
reinsurance business
Net increase of insured
savings and investment
Net increase of disposal
of transaction financial asset
Cash received from
interest, commission charge
and commission
Net increase of capital
borrowed
Net increase of returned
business capital
Write-back of tax
163,222.89 75,431.82
received
Other cash received
concerning operating 17,797,483.61 3,557,267.61 28,247,629.33 10,330,297.16
activities
Subtotal of cash inflow
arising from operating 3,797,459,613.92 488,202,484.68 3,449,679,689.94 523,058,517.50
activities
Cash paid for
purchasing commodities and 3,725,221,147.10 479,168,053.99 3,439,887,798.75 603,678,760.41
receiving labor service
Net increase of
customer loans and advances
Net increase of deposits
in central bank and interbank
Cash paid for original
insurance contract
compensation
Cash paid for interest,
commission charge and
commission
Cash paid for bonus of
guarantee slip
Cash paid to/for staff
139,233,755.22 15,761,713.23 137,875,108.11 15,146,125.23
and workers
Taxes paid 103,980,345.49 5,045,537.47 84,541,630.69 6,592,520.64
Other cash paid
concerning operating 100,461,903.03 27,322,022.51 104,707,412.92 15,948,200.18
activities
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China National Accord Medicines Corporation Ltd. Full Text of First Quarterly Report for 2012
Subtotal of cash outflow
arising from operating 4,068,897,150.84 527,297,327.20 3,767,011,950.47 641,365,606.46
activities
Net cash flows arising
-271,437,536.92 -39,094,842.52 -317,332,260.53 -118,307,088.96
from operating activities
II. Cash flows arising from
investing activities:
Cash received from
recovering investment
Cash received from
9,752,052.28
investment income
Net cash received from
disposal of fixed, intangible 207,915.00 207,900.00 505,236.40
and other long-term assets
Net cash received from
disposal of subsidiaries and 5,424,600.00
other units
Other cash received
concerning investing 125,500,000.00 1,908,000.00
activities
Subtotal of cash inflow
207,915.00 140,884,552.28 2,413,236.40
from investing activities
Cash paid for
purchasing fixed, intangible 45,372,897.36 942,800.00 41,755,033.01 1,613,807.64
and other long-term assets
Cash paid for
49,600,000.00
investment
Net increase of
mortgaged loans
Acquisition of
subsidiaries and other 5,085,907.61 3,542,000.00
business units，net cash
Other cash paid
concerning investing 48,880,000.00 9,698,496.42
activities
Subtotal of cash outflow
50,458,804.97 53,364,800.00 51,453,529.43 51,213,807.64
from investing activities
Net cash flows arising
-50,250,889.97 87,519,752.28 -49,040,293.03 -51,213,807.64
from investing activities
III. Cash flows arising from
financing activities
Cash received from
absorbing investment
Including: Cash
received from absorbing
minority shareholders’
investment by subsidiaries
Cash received from
356,403,865.78 70,000,000.00 474,340,000.00 280,000,000.00
loans
Cash received from
issuing bonds
Other cash received
concerning financing 345,255,690.18 228,648,356.64 18,838,396.82 211,336,940.75
activities
Subtotal of cash inflow
701,659,555.96 298,648,356.64 493,178,396.82 491,336,940.75
from financing activities
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China National Accord Medicines Corporation Ltd. Full Text of First Quarterly Report for 2012
Cash paid for settling
211,686,102.18 90,062,726.66 102,958,420.88 40,000,000.00
debts
Cash paid for dividend
and profit distributing or 37,264,660.38 16,534,200.84 18,904,425.68 14,210,318.24
interest paying
Including: Dividend and
profit of minority
shareholder paid by
subsidiaries
Other cash paid
concerning financing 317,345,129.32 282,001,352.06 32,727,621.72 204,722,807.48
activities
Subtotal of cash outflow
566,295,891.88 388,598,279.56 154,590,468.28 258,933,125.72
from financing activities
Net cash flows arising
135,363,664.08 -89,949,922.92 338,587,928.54 232,403,815.03
from financing activities
IV. Influence on cash and
cash equivalents due to -2,940.42 -180.51
fluctuation in exchange rate
V. Net increase of cash and
-186,327,703.23 -41,525,013.16 -27,784,805.53 62,882,918.43
cash equivalents
Add: Balance of cash
and cash equivalents at the 907,884,162.14 164,840,499.86 684,764,869.84 135,498,819.87
period -begin
VI. Balance of cash and cash
721,556,458.91 123,315,486.70 656,980,064.31 198,381,738.30
equivalents at the period -end
4.4 Auditor’ report
Auditor’s opinions: Un-audited
4.5 Other events
Progress of establishment of internal control for first quarterly of 2012 under the name of National
Accord
Under requirement of “Basic Norms of Internal Control for Enterprises” and relevant regulations
and document requirements of “Notice of Standard Pilot for Internal Control of Listed Companies
in Shenzhen issued by Shenzhen Security Regulatory Bureau”, National Accord, in first quarterly of
2012, has its internal control construction as:
I. Particular about progress based on establishment of internal control
1. Organizing and completed self-assessment on internal control dated 31 December 2011,
coordinate with PwC for auditing on internal control of the Company.
2. The annual self-assessment report of internal control, without major defect of internal control
been found, which have concerned with financial report and non-financial report, for year of 2011,
has been issued outside by the Company. PwC carried out an auditing report for financial report
internal control for year of 2011, in all major aspect of the Company, relevant notice has released
externally.
3. Combining with adjustment of structure and functions of the Company, organizing and
completed the amendment of manual for system procedures for year of 2012 and self-assessment of
internal control.
4. Compiled and completed the working plans of risk control and process management for year of
2012, more details are:
a. improved risk management system, standardized risk evaluation and analysis mechanism,
well-defined and implemented integrity solution plan for major risks, renewal and perfected library
of risk events and upgrade ability of risk prevention;
b. continuous to optimized and improved system process (internal control) mechanism in
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China National Accord Medicines Corporation Ltd. Full Text of First Quarterly Report for 2012
headquarters and vary business division, achieving full coverage of standards of self-assessment of
internal control and compacting fundamental management;
c. established and perfected internal control inspection and self-evaluation mechanism, completed
self-assessment of internal control within the year and upgrade entirety execution.
d. analysis and evaluated the feasibility of introduction of information technology means for
internal control mechanism.
II. Comparison, reasons of differences and solutions with progress in working plan
Being compared with plans involved in “implementation of ‘Basic Norms of Internal Control for
Enterprises’”, the Company completed relevant works by strictly in line with the planning.
Chairman: Wei Yulin
China National Accord Medicines Corporation Ltd.
23 April 2012
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