China National Accord Medicines Corporation Ltd. The First Quarterly Report for 2012
Stock Code: 000028, 200028 Notice No.: 2012-08
Short Form of the Stock: Sinopharm Accord, Accord-B
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 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
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China National Accord Medicines Corporation Ltd. The First Quarterly Report for 2012
Amount from
Remarks (If
Items of non-recurring gains and losses 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
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China National Accord Medicines Corporation Ltd. The First Quarterly Report for 2012
§3. Significant Events
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
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China National Accord Medicines Corporation Ltd. The First Quarterly Report for 2012
lower amount than same period of last year.
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. The 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
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