Semi-Annual Report 2012
I Important Notice
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 assures that there are no false records, misleading statements or significant
omissions in this report, and it would shoulder any individual as well as joint responsibility
concerning to the authenticity, accuracy and completeness of the contents.
2. This report has been compiled in both Chinese and English. Should be any ambiguity arise about
the contents of the two versions, the Chinese version shall prevail.
3. No director, supervisor and senior executive would claim that he or she could not guarantee the
authenticity, accuracy or completeness of the semi-annual report’s contents or that he or she holds
different opinions.
4. Except for the follow directors, others are present the meeting of the Board for deliberating the
semi-annual report of the Company
Name of director not Title of director not
Reasons for absent Trustee
attended in person attended in person
Shi Jinming Director Due to business Ma Wanjun
He Zhiyi Independent Director Due to business Xiong Chuxiong
5. The Semi-Annual Financial Report of the Company has not been audited.
6. Chairman of the Company Mr. Wei Yulin, General Manager Mr. Yan Zhigang, Chief Financial
Officer Mr. Wei Pingxiao and Financial Manager Mr. Chi Guoguang hereby declare that they would
assure the authenticity and completeness of the Financial Accounting Report in this Semi-Annual
Report.
II. Company Profile
(I) Company information
Code for A-share 000028 Code for B-share 200028
Short form for A-share Sinopharm Accord Short form for B-share Accord B
Listing stock exchange Shenzhen Stock Exchange
Legal Chinese name of
国药集团一致药业股份有限公司
the Company
Abbr. of legal Chinese
国药一致
name of the Company
Legal English name of the
China National Accord Medicines Corporation Ltd.
Company
Abbr. of legal English
Sinopharm Accord
name of the Company
Legal Representative WeiYulin
Registered Add. Accord Pharm. Bldg., No. 15, Ba Gua Si Road, Futian District, Shenzhen Guangdong
Post Code of registered
518029
add.
Office Add. Accord Pharm. Bldg., No. 15, Ba Gua Si Road, Futian District, Shenzhen Guangdong
Post Code of office add. 518029
Internet website http://www.szaccord.com.cn
E-mail 0028@szaccord.com.cn
1
(II) Contact person and ways
Secretary of the Board
Name Chen Changbing
Bldg., No. 15, Ba Gua Si Road, Futian District, Shenzhen, Guangdong
Contact adds.
Province
Tel. +(86)755 25875195
Fax. +(86)755 25875147
E-mail 0028@szaccord.com.cn
(III) Information disclosure and place for preparation
Newspapers Designated for
Securities Times and Hong Kong Comercial Daily
indormation disclosure
Website desinated by CSRC for
http://www.szse.cn http://www.cninfo.com.cn
publishing semi-annual report
place for preparation of semi-annual
Secretariat of the Board
report
III. Major accounting data and business abstract
(I) Major accounting data and financial indexes
Whether retroactive adjusted on previous financial report or not
√Yes □No
Major accounting data
Increase/decrease in this report
Reporting period Same period of last year
Major accounting data period year-on-year (%)
(Jan. to June)
Before adjustment After adjustment After adjustment
Total business revenue(RMB) 8,803,252,346.20 7,195,372,417.76 7,209,655,400.57 22.10%
Business profit(RMB) 317,963,380.42 202,919,619.93 202,624,312.43 56.92%
Total profit(RMB) 307,158,294.83 217,717,835.44 217,422,527.94 41.27%
Net profit attributable to
shareholders of the listed company 240,033,990.64 165,136,443.84 164,842,022.26 45.61%
(RMB)
Net profit attributable to
shareholders of the listed company
248,307,662.79 151,667,708.17 151,668,594.09 63.72%
after deducting non-recurring gains
and losses(RMB)
Net cash flow arising from
138,909,868.17 107,677,081.76 106,647,292.46 30.25%
operating activities(RMB)
Increase/decrease in this
End of last period period-end over that of last
End of this period period-end (%)
Before adjustment After adjustment After adjustment
Total assets(RMB) 8,662,233,353.13 7,665,759,761.04 7,680,576,330.72 12.78%
Owners’ equity attributable to
shareholders of the listed 1,548,399,845.50 1,350,217,871.35 1,350,093,276.86 14.69%
company(RMB)
Share capital(Share) 288,149,400 288,149,400 288,149,400 0%
Major financial indexes
Increase/decrease in this
Same period of last year report period year-on-year
Reporting period (%)
Major financial indexes
(Jan. to June)
Before
After adjustment After adjustment
adjustment
Basic earnings per share
0.833 0.573 0.572 45.63%
(RMB/Share)
2
Diluted earnings per share
0.833 0.573 0.572 45.63%
(RMB/Share)
Basic EPS after deducting
non-recurring gains/losses 0.862 0.526 0.526 63.88%
(RMB/Share)
Fully diluted ROE (%) 15.50% 12.23% 12.21% 3.29%
Weighted average ROE (%) 16.35% 14.55% 14.5% 1.85%
Fully diluted ROE after
deducting non-recurring 16.04% 11.23% 11.23% 4.81%
gains/losses (%)
Weighted average ROE after
deducting non-recurring 16.92% 13.36% 13.34% 3.58%
gains/losses (%)
Net cash flow per share arising
from operating activities 0.482 0.374 0.370 30.27%
(RMB/Share)
Increase/decrease in this
period-end over same
End of last period
End of this period of last period-end
period (%)
Before
After adjustment After adjustment
adjustment
Net assets per share
attributable to shareholder of 5.374 4.686 4.685 14.71%
listed company (RMB/ Share)
Asset-liability ratio (%) 81.21% 81.39% 81.42% -0.21%
Explanation on accounting data and financial index at period-end (stating adjustment explanation if there has
retroactive adjustment)
Buy Sinopharm Group Wuzhou Co., Ltd. under the same control this year, thereinto affect the gross operating
income at merging layer of 14,282,982.81 Yuan from January to June, 2011, operating profits of -295,307.50
Yuan, total profits of -295,307.50 Yuan, net profits of -294,421.58 Yuan belonging to shareholders of the listed
company, and cash flow net amount of -1,029,789.3 Yuan generated by operating activities. According to the
owner's equity balance on 1 January 2011, the Group increases the capital reserve of 3,416,966.47 Yuan on 1
January 2011, decreases the undistributed profits of 1,557,687.89 Yuan on 1st, Jan, 2011, and increase the
minority stockholder's equity of 5,594.61 Yuan on 1 January 2011.
(II) Difference of accounting data under CAS and IAS
1. Difference of net profit and net assets disclosed in financial report based on IAS and CAS
□ Applicable √ Non-applicable
2. Difference of net profit and net assets disclosed in financial report based on foreign accounting standards
and CAS
□ Applicable √ Non-applicable
3. Detail items for major differences
Explanation on IAS
Items with major
Amount involved (RMB) Reasons for differences and(or) foreign accounting
differences
standards involved
N/A
4. Explanation on accounting data difference under the foreign/domestic accounting
standards
Nil
3
(III) Item and amount with non-recurring gains/losses deducted
√applicable □Non-applicable
Items Amount (RMB) Note
Losses from disposal of real estate amounting
as 8.83 million yuan mainly due to the
Gains and losses from disposal of non-current
-8,813,780.88 relocation for urban transformation for
assets Guangxi Sinopharm Logistic- subsidiary of
the Company
Tax refund or exemption out of authorization, with
absence of official approval document or
accidentally
Mainly including 11.77 million yuan
demolition compensation for aged urban
Governmental subsidy calculated into current gains transformation, subsidy of medicine reserve
and losses(while closely related with the normal 0.42 million yuan, subsidy of technology
business of the Company, excluding the 17,984,705.34 transformation for high-tech enterprise and
fixed-amount or fixed-proportion governmental rewards 2.3 million yuan, compensation of
subsidy according to the unified national standard) financial discount 3 million yuan as well as
enterprise financial contribution reward and
patent award 0.5 million yuan.
Fund occupation expenses received from
non-financial enterprises that reckon into current
gains/losses
Income occurred when investment cost paid by
enterprise for obtaining subsidiaries, associates and
joint ventures are lower than its share in fair
value of net realizable assets of invested units
Gains and losses from exchange of non-monetary
assets
Gains and losses from entrusted investment or
management assets
Various asset impairment reserve provided for force
majeure, such as natural disaster;
Gains/losses from debt reorganization
Reorganization expenses, such as expenditure for
allocation of employees and integration fee
Gains and losses from excess of transaction which
are conducted on a non-fair-valued basis over its
fair value
Current net gains and losses of subsidiaries Net profit from period-begin to consolidation
occurred from combination under the same control date (January- February) generated by
-240,695.14
commencing from period-begin to combination Sinopharm Wuzhou, under the same control,
date newly purchased
Gains and losses from contingent events which has
no relation with normal business of the Company
Gains and losses from change of fair values of
held-for-transaction financial assets and financial
liabilities except for the effective hedge business
related to normal business of the Company, and
investment income from disposal of transactional
financial assets and liabilities and financial assets
available for sale
Reversal of impairment reserve for account
receivable with separate impairment testing
gains/ losses from external entrustment loans
Gains and losses arising from change of fair value
of investment properties whose follow-up
4
measurement are at fair value
Affect upon current gains/losses arising from the
one-off adjustment in subject to requirement of
laws and rules in relation to taxation and
accounting
Income from entrusted custody operation
Compensation of termination of Chebei
project from Guangdong Huixin, subsidiary
of the Company 17.6 million yuan; vary
Other non-operating income and expenditure
-19,735,314.91 relocation expenditure 2.93 million yuan for
except the abovementioned urban transformation from Guangxi
Sinopharm Logistic- subsidiary of the
Company
Other item that satisfied the definition of
non-recurring gains and losses
Influenced amount of minority shareholders’ equity -490,633.3
Impact on income tax 3,022,046.74
Total -8,273,672.15 --
Explanation on “Other item that satisfied the definition of non-recurring gains and losses” and defined non-recurring gains and losses
as recurring gain/loss according to natures and characteristic of self-operation status
Amount involved
Item Note
(RMB)
N/A
IV. Changes in Share Capital and Particular about Shareholders
(I) Changes in share capital
1. Statement of changes in shares
√applicable □Non-applicable
Before the Changes Increase/Decrease in the Change (+, -) After the Changes
Public
Newly-
Proportion Bonus reserve-co Proportio
Amount issued Others Subtotal Amount
(%) shares nverted n (%)
shares
shares
I. Restricted shares 4,714 0% 0 0 0 -1,179 -1,179 3,535 0%
1. State-owned shares
2. State-owned legal
person’s shares
3. Other domestic shares
Including: Domestic legal
person’s shares
Domestic natural person’s
4,714 0% 0 0 0 -1,179 -1,179 3,535 0%
shares
4. Foreign shares
Including: Foreign legal
person’s shares
Foreign natural person’s
shares
5. Senior executives’
shares
288,144,6 288,145,8
II. Unrestricted shares 100% 0 0 0 1,179 1,179 100%
86 65
5
233,259,0 233,260,2
1. RMB Ordinary shares 80.95% 0 0 0 1,179 1,179 80.95%
86 65
2. Domestically listed 54,885,60 54,885,60
19.05% 0 0 0 0 0 19.05%
foreign shares 0 0
3. Overseas listed foreign
shares
4. Others
288,149,4 288,149,4
III. Total shares 100% 100%
00 00
Approval of changes in shares (if applicable)
Ownership transfer of changed shares
Influence on latest EPS, net assets per share and other financial index from changes in shares (if applicable)
Other information necessary to be disclosed by the Company or should be disclosed according to requirement of
securities regulators
2. Changes in restricted shares
√applicable □Non-applicable
Restricted
Restricted Restricted
Name of Shares unlock shares Reasons for Date for
shares at shares at
shareholder in this period increased in restricting unlock
period-begin period-end
this period
Shares held by
Chen Changbin 4,714 1,179 0 3,535 senior 20120101
executives
Total 4,714 1,179 0 3,535 -- --
(II) Security offering and listing
1. Security offering in previous three years
□applicable √Non-applicable
2. Changes of total shares and structures as well as outcome of asset-liability structures
□applicable √Non-applicable
3. Current shares held by internal staffs
□applicable √Non-applicable
(III) Shareholders and actual controller
1. Total shareholders at period-end
Shareholders at period-end amounting to 14,132
2. Shares held by top ten shareholders
Particulars about the shares held by the top ten shareholders
Amount of Shares pledged or frozen
Proportion of
Shareholders (full Nature of Total amount the
shares held
name) shareholders of shares held restricted Share status Amount
(%)
shares held
Sinopharm Group Co., State-owned No pledge or
38.33% 110,459,748 0 0
Ltd. shares frozen
ICBC － GUANGFA
JUFENG STOCK Other 4.61% 13,285,477 0 Un-know
FUND
HTHK/CMG
FSGUFP-CMG FIRST Foreign shar
2.44% 7,032,720 0 Un-know
STATE CHINA es
GROWTH FD
6
ABC－Greatwall Anxin
Other 2.26% 6,500,000 0 Un-know
Return Mixed Fund
ICBC － HARVEST
THEME NEW POWER Other 1.95% 5,627,292 0 Un-know
STOCK FUND
CCB-Greatwall
consumer growth stock Other 1.68% 4,840,817 0 Un-know
fund
ICBC—UBS SDIC
Core Enterprise Stock Other 1.64% 4,732,505 0 Un-know
Fund
Ping An Life Insurance
Co.,
Other 1.52% 4,369,662 0 Un-know
Ltd.—Dividend-individ
ual insurance
BOC-Taida Hongli
Industry Selected Stock Other 1.32% 3,796,594 0 Un-know
Fund
VALUE PARTNERS Foreign
1.14% 3,289,822 0 Un-know
CLASSIC FUND shares
Explanation on shareholders
Particulars about the shares held by the top ten unrestricted shareholders
√applicable □Non-applicable
Amount of Type/amount of shares
Shareholders unrestricted shares
held at period-end Type Amount
Sinopharm Group Co., Ltd. 110,459,748 A-share 110,459,748
ICBC － GUANGFA JUFENG STOCK 13,285,477 A-share 13,285,477
FUND
HTHK/CMG FSGUFP-CMG FIRST
7,032,720 B-share 7,032,720
STATE CHINA GROWTH FD
ABC － Greatwall Anxin Return 6,500,000 A-share 6,500,000
Mixed Fund
ICBC － HARVEST THEME NEW 5,627,292 A-share 5,627,292
POWER STOCK FUND
CCB-Greatwall consumer growth stock
4,840,817 A-share 4,840,817
fund
ICBC—UBS SDIC Core Enterprise Stock
4,732,505 A-share 4,732,505
Fund
Ping An Life Insurance Co.,
4,369,662 A-share 4,369,662
Ltd.—Dividend-individual insurance
BOC-Taida Hongli Industry Selected Stock
3,796,594 A-share 3,796,594
Fund
VALUE PARTNERS CLASSIC FUND 3,289,822 B-share 3,289,822
Explanation on associated relationship among the top ten shareholders or (and) consistent action
The fund manager of ABC－Greatwall Anxin Return Mixed Fund and CCB-Greatwall consumer growth stock
fund all refers to the Greatwall Fund Management Co., Ltd.; it is unknown that there exists no associated
relationship or belongs to the consistent actionist among the other tradable shareholders regulated by the
Management Measure of Information Disclosure on Change of Shareholding for Listed Companies.
7
3. Controlling shareholders and actual controller
(1) Changes of controlling shareholders and actual controller
□applicable √Non-applicable
(2) Introduction of controlling shareholders and actual controller
Whether has new actual controller or not
□Yes √No
Name of actual controller China National Pharmaceutical Group Corp.
Type of actual controller Other
Explanation
The controlling shareholder of the Company:
Name of the controlling shareholder: Sinopharm Group Co., Ltd.
Legal representative: Wei Yulin
Date of foundation: 8 January 2003
Registered capital: RMB 2,402,625,299
Nature of economic: Limited Liability Company (listed)
Business scope: industrial investment holding; management and assets reorganization entrusted by pharmaceutical
enterprise; Chinese medicine, Chinese medicine tablets, chemical medicine preparations, chemical raw materials,
antibiotics, biochemical drugs, biological products, narcotic drugs, psychotropic substances, toxic drugs for
medical use (compatible with the business scope), vaccines wholesale, categories III: injection puncture
instruments, hygienic materials & dressings, medical polymer materials and products, categories II: medical X-ray
ancillary equipment and components; food marketing management (non-physical way), and domestic trade (other
than special licensing), logistics and related consulting services, operating various types of goods and import and
export of technology (not attached directory of import and export commodities), but excluded the import and
export of goods and technology the State limits or prohibit the company. [In right of exequatur to run if refers to
permission operation]
Particulars about the actual controller:
Name of the actual controller: China National Pharmaceutical Group Corporation
Legal representative: She Lulin
Date of foundation: 26 November 1998
Registered capital: RMB 1,529,200,000
Nature of economic: ownership by the entire people
Business scope: entrusted management and assets reorganization of pharmaceutical enterprises, consultant service
of medicine industry investment project, holding exhibition and fair of surgical appliance, the wholesale of
Chinese medicine, Chinese patent medicines, Chinese medicine herb in pieces, chemical material medicine, a
chemical agent, antibiotics, biochemical, biological(operation period runs in right of exequatur).
V. The property and controlling relationship between the actual controller of the Company
and the Company is as follows:
(3) Block diagram of property rights and controlling relationship between the Company and actual
controller
8
The State-owned Assets Supervision & Administration Commission of the State Council
100%
National Council for Social
China National Pharmaceutical Security Fund &public
Shanghai Fosun Pharmaceutical Group Corporation shareholdser
(Group) Co., Ltd.
100%
Shanghai Qishen Investment Management Co., Ltd.
49% 51% 34.48%
Sinopharm Industry
Investment Co., Ltd.
0.11%
65.41%
Sinopharm Group Co., Ltd.
38.33%
China National Accord Medicines Corporation Ltd.
(4) Actual controller controlling the Company by means of entrust or other assets
management
□applicable √Non-applicable
4. Other legal person’s shareholders with over ten percent shares held
□applicable √Non-applicable
(IV) Convertible bonds
□applicable √Non-applicable
V. Directors, Supervisors and Senior Executives
9
(I) Changes of shares held by directors, supervisors and senior executive
Whether
Amount of received
Amount of Amount of
Shares held shares Including: remuneration
shares Shares held stock option
Office dated Office dated at increase in restricted Reasons for from
Name Title Sex Age decreased in at period-end held at
from ended period-begin( this shares held changes shareholders’
this period (Share) period-end
Share) period(Share (Share) unit or other
(Share) (Share)
) related unit
or not
Wei Yulin Chairman M 55 2011-11-18 2014-04-28 0 0 0 0 0 0 Yes
Shi Jinming Director M 45 2011-04-28 2014-04-28 0 0 0 0 0 0 Yes
Wu Ai’min Director M 43 2011-04-28 2012-08-17 0 0 0 0 0 0 Yes
Ma Wanjun Director M 43 2011-04-28 2014-04-28 0 0 0 0 0 0 Yes
Jiang
Director M 49 2011-04-28 2014-04-28 0 0 0 0 0 0 Yes
Xiuchang
Yan Zhigang GM, Director M 53 2011-04-28 2014-04-28 0 0 0 0 0 0 No
Cui Yiling Director F 47 2012-08-17 2014-04-28 0 0 0 0 0 0 Yes
Independent
He Zhiyi M 57 2011-04-28 2014-04-28 0 0 0 0 0 0 No
director
Xiong Independent
M 57 2011-04-28 2014-04-28 0 0 0 0 0 0 No
Chuxiong director
Xiao Independent
M 43 2011-04-28 2014-04-28 0 0 0 0 0 0 No
Shengfang director
Cui Yiling Supervisor F 47 2011-11-18 2012-08-17 0 0 0 0 0 0 Yes
Feng Yifeng Supervisor M 33 2012-08-17 2014-04-28 0 0 0 0 0 0 Yes
Guang Supervisor F 42 2011-04-28 2014-04-28 0 0 0 0 0 0 Yes
10
Xiaohui
Wang Huiqin Supervisor M 55 2011-04-28 2014-04-28 0 0 0 0 0 0 No
Lin
Deputy GM M 45 2011-04-28 2014-04-28 0 0 0 0 0 0 No
Zhaoxiong
Tan Guoshu Deputy GM M 58 2011-04-28 2014-04-28 0 0 0 0 0 0 No
Liu Jun Deputy GM F 55 2011-04-28 2014-04-28 0 0 0 0 0 0 No
Lin Min Deputy GM M 48 2011-04-28 2014-04-28 0 0 0 0 0 0 No
Lin Xinyang Deputy GM M 48 2011-04-28 2014-04-28 0 0 0 0 0 0 No
Deng Baojun Deputy GM M 51 2011-04-28 2014-04-28 0 0 0 0 0 0 No
Wei Pingxiao CFO M 49 2011-04-28 2014-04-28 0 0 0 0 0 0 No
Reducing
Chen Secretary of
M 45 2011-04-28 2014-04-28 4,714 0 -1,179 3,535 3,535 0 share-holdin No
Changbin the Board
g by rules
Total -- -- -- -- -- 4,714 0 -1,179 3,535 3,535 0 -- --
Directors, supervisor and senior executives who awarded equity incentive in report period
□applicable √Non-applicable
11
(II) Post holding
Post holding in shareholders’ unit
Units for post holding or Relationship with
Name the Company Position Office term
part-time job
Controlling
Wei Yulin Sinopharm Group Co., Ltd. Chairman Since December 2009
shareholder
Shi Controlling
Sinopharm Group Co., Ltd. Deputy chairman Since January 2009
Jinming shareholder
From November 2006
Deputy chairman,
Controlling to March 2012; From
Wu Aimin Sinopharm Group Co., Ltd. secretary of the
shareholder March 2008 to March
Board
2012;
Deputy chairman,
Since September 2010
Controlling secretary of the
Ma Wanjun Sinopharm Group Co., Ltd. Since March 2012
shareholder Board, chief
Since May 2011
attorney consulatant
Jiang Controlling
Sinopharm Group Co., Ltd. CFO Since June 2010
Xiuchang shareholder
Chief of Industry
Controlling
Cui Yiling Sinopharm Group Co., Ltd. development and Since March 2011
shareholder management center
Deputy director of
Feng Controlling
Sinopharm Group Co., Ltd. financial Since June 2010
Yifeng shareholder management dept.
Job holding in other unit
Relationship with the
Name Units for post holding or part-time job Company Position
Wei Yulin Sinopharm Group Hong Kong Co., Ltd. Affiliate company Chairman
12
Sinopharm Le-Ren-Tang Medicine Co., Ltd. Chairman
Sinopharm Chemical Reagent Co., Ltd. Chairman
Sinopharm South-West Medicine Co., Ltd. Chairman
Sinopharm Hubei Co., Ltd. Chairman
Sinopharm Group Fujian Co., Ltd. Director
Sinopharm Group Hong Kong Co., Ltd. Director
Sinopharm Hunan Co., Ltd. Chairman
Sinopharm Group Yunnan Co., Ltd. Chairman
Shi Jinming Affiliate company
Sinopharm Group Fuzhou Co., Ltd. Chairman
Sinopharm Hainan Co., Ltd. Chairman
Sinopharm Group Jiangxi Co., Ltd. Chairman
Sinopharm Group Guizhou Co., Ltd. Chairman
Sinopharm Distribution Center Co., Ltd. Executive Director
Sinopharm Group Chongqing Co., Ltd. Chairman
Guangdong Dongfang Uptodate & Special
Medicines Co., Chairman
Sinopharm Group Henan Co., Ltd. Chairman
Shanghai Romit Health Consultant Service
Co., Ltd Chairman
Ma Wanjun Sinopharm Le-Ren-Tang Medicine Co., Ltd. Affiliate company
Director
China National Medicines Corporation Ltd. Director
Yujia Medical Service Co., Ltd. Director
Sinopharm Nutraceticals (Shanghai) Co., Ltd. Chairman
Sinopharm Group Cuoda Pharmacy Co., Ltd. Supervisor
Jiang Xiuchang Affiliate company
Yujia Medical Service Co., Ltd. Supervisor
13
China National Medicines Corporation Ltd. Director
Sinopharm Le-Ren-Tang Medicine Co., Ltd. Director
Sinopharm Group Hong Kong Co., Ltd. Director
China National Finance Co., Ltd. Director
Sinopharm Distribution Center Co., Ltd. Supervisor
Sinopharm Beijing Co., Ltd. Supervisor
A-Think Pharmaceutical Co., Ltd. Chairman
Xingsha Medicines (Xiamen) Co., Ltd. Chairman
Cui Yiling Affiliate company
Wuhu Sanyi Pharmaceutical Co., ltd. Chairman
Wuhu Sanyi Xincheng Pharmaceutical Co., ltd. Chairman
Sinopharm Group Fujian Co., Ltd. Director
A-Think Pharmaceutical Co., Ltd. Director
Sinopharm Hainan Co., Ltd. Director
China National Chemical Reagent Co., Ltd. Supervisor
Feng Yifeng Affiliate company
Sinopharm Group Henan Co., Ltd. Supervisor
Sinopharm Group Changzhou Co., Ltd. Supervisor
Sinopharm Group Wuxi Co., Ltd. Supervisor
Sinopharm Group Gansu Co., Ltd. Supervisor
Wuhu Sanyi Pharmaceutical Co., ltd. Supervisor
Wuhu Sanyi Xincheng Pharmaceutical Co., ltd. Supervisor
Shanghai FOSUN Pharmaceutical (Group) Co., Shareholder of
Guan Xiaohui Ltd. Sinopharm Group Deputy CFO
Shenzhen Zhijun Pharmaceutical Co., Ltd Executive Director
Wholly-owned
Suzhou Zhijun Wanqing Pharmaceutical Co.,
Yan Zhigang subsidiary Chairman
Ltd
Shenzhen Main Luck Pharmaceuticals Inc. Stock jointly company Chairman
14
Sichuan Industrial Institute of Antibiotics
Director
(limited company) Affiliate company
A-Think Pharmaceutical Co., Ltd. Director
Antai College of Economics & Management,
He Zhiyi Shanghai Jiao Tong University No association Vice-dean
Xiong
Shenzhen University No association Professor
Chuxiong
Xiao
Guangdong Sino-Win Law Firm No association Director
Shengfang
(III) Remuneration of directors, supervisors and senior executives
Decision-Making Process
Of Compensation Of The annual compensation to directors, supervisors and senior management was paid according to the
Directors, Supervisors wage management system of the company and the assessment results of senior management.
And Senior Management
Decision Basis Of
The annual compensation to directors, supervisors and senior management was paid according to the
Compensation Of
wage management system of the company and the results of compensation evaluation method for senior
Directors, Supervisors
management.
And Senior Management
Actual payment of the There are twenty peoples of directors, supervisors and senior management during the reporting period
compensation of of the company, during which thirteen peoples were paid by the company. The total annual
Directors, Supervisors compensation amounts to RMB 2762.2 thousand Yuan (before tax), and the total allowance paid to the
And Senior Management independent directors by the company amounted to RMB 120thousand Yuan therefore (before tax).
(IV) Changes of directors, supervisors and senior executives
Duty Change Date of change Reasons for change
Name
Changed from
Cui Dieling Director Aug. 17, 2012 Recommend by the major shareholder
supervisor
Feng
Supervisor Newly-appointed Aug. 17, 2012 Recommend by the major shareholder
Yifeng
Wu Aimin No Renewed Aug. 7, 2012 Work change
(V) Staff of the Company
Person on-jobs 4,013
15
Retirement person whose charges undertake by the Company 287
Professional categories
Types of professional category Numbers of professional category
Production staff 1,173
Salesman 1,648
Technician 85
Financial staff 194
Administration staff 913
Education background
Type of education background Numbers (people)
Master 113
Undergraduate 1,074
Junior college 1,060
High school and below 1,766
VI. Report of the Board
(I) Management discussion and analysis
2012 is a key connecting link between the preceding and the following of the Twelfth Five-Year Plan, and a hard
period for new medical reformation. At the first half year, new medical reformation has accelerated its process,
and made various policies, the Company has focused on the annual operation theme of stabilizing the growth,
adjusting the structure, boosting the transformation and realizing the development targets of Twelfth Five-Year
Plan so as to deepen the construction of distribution supply chain, comprehensively advance the
internationalization strategy for industry, constantly improve two-stage management control mode of headquarters
and business units, the leading advantages and influences of the Company keep enlarging and lay a solid
foundation for accelerating the transformation and realizing scientific development during the Twelfth Five-Year
Plan
Work summary of the first half year
1. Management work summary of the Company
(1) Positively transform the role and position, constantly optimize the duty process, and the unique two-stage
management control mode gets better.
(2) Establish the direction and targets for management promotion, and rebuild the core competition advantages of
the Company.
(3) Strengthen the executive capacity for planning, innovate distribution and acquisition mode, and lead the future
development of the Company by planning investment.
(4) Intensify the internal control system building, improve the management mechanism of internal control, and
devote to the effective implementation of internal control.
(5) Take value as the guidance and profits as the core, work intensively, control the risks, and continue to promote
the financial management level.
(6) Strengthen the control and audit to human resource, boost the outsourcing of auxiliary type of work, and
constantly improve the professional value of human resource.
2. Work summary of distribution business division in the first half year of 2012
In the first half year, the distribution business division takes making intelligent supply chain as the principal line,
innovates the business model, deepens the organizational transformation, improves the operation platform of
Guangdong & Guangxi integration, and gets remarkable performance in boosting scale growth, structure
optimization, business transformation and management innovation
16
(1) The distribution business division grows stably
A. Accelerate the subsidence of distribution terminating network, consolidate the leading position, and promote
the working in distribution area.
B. Sinopharm Group Nanning Co., Ltd. renamed as Sinopharm Group Guangxi Co., Ltd., the area platform
construction has great breakthrough.
C. Constantly promote the collection variety and purchasing scale, improve the variety profitability, and
strengthen the overall competition advantages.
D. Clear up the variety with low gross profits, increase the efforts to development of the variety with high gross
profits, and improve the gross profit ratio of variety.
E. Positively adapt the new changes to medical reformation, increase the efforts to development of drug variety,
and gradually promote the sales contribution of drugs.
(2) Structure adjustment of the distribution business division
A. The effect of variety structure adjustment is remarkable, the percentage of domestic product in sales gradually
increases, and the gross profit ratio keeps rising.
B. Continue to optimize the structure of type of operation, constantly promote the percentage of type of operation
in direct selling, and strengthen the competitive advantages of distribution business.
C. The coverage rate of terminal customer increases comparing to last year, it is necessary to further increase the
development to terminal customers.
D. Keep increasing the development to the rising businesses such as vaccines and instruments, which provide new
profits growth for distribution.
(3) Urge the transformation for distribution business division
A. Increase the investment to software and hardware, implement refined logistics management, and push the
logistics to transform from cost center to profit center.
B. Constantly innovate the value-added services, and rapidly complete the strategy transformation from back
spread to value-added service provider.
(4) Distribution management innovation
A. Innovate the business model, build supply chain to integrate background resources, and the intelligent supply
chain construction reaches a new level.
B. Improve the control mode and strengthen the profitability of the subsidiaries, and consolidate the regional
competition advantages for distribution.
C. Innovate the management ideal, and use outstanding achievement management and capital peak management
to constantly promote the management effectiveness.
3. Work summary of pharmacy division for the first half year of 2012
In the first half year of 2012, pharmacy division boosts the structure transformation, promotes the coordinated
development of all enterprises by industry chain thinking, continues to improve the operation system of industry
integration, and gets remarkable achievements in boosting scale growth, structure optimization, business
transformation and management innovation.
(1) Pharmacy division grows stably
A. Integrate business division resources, and help Zhijun Wanqing, Shenzhen Zhongyao to reduce losses.
B. The sales revenue of key varieties such as cefixime and cefoxitin in Zhijun Pharmacy increases on year-on-year
basis, while others decrease. Sales increase rate of key varieties in Zhijun Wanqing is stable; affected by price fall
and raw material shortage, cefoxitin decreases on year-o-year base.
C. Pharmacy division takes various measures to improve the internal matching rate, the raw materials purchased
by Zhijun Pharmacy from Zhijun Wanqing increase by 36.8% year onyear.
D. Comprehensive base construction, new GMP reformation and sub-contract production can resolve the
bottleneck for production capacity
(2) Structure adjustment of pharmacy division
A. Zhijun Pharmacy overcomes the restriction of using antibiotics and capacity insufficient, gathers the resources,
increases the selling proportion of Dalifen, Daliding and Dalixin, and further optimizes the product structure;
Zhijun Wanqing works out the product structure, takes cefuroxime, cefamandole, cefathiamidine and cefoxitin as
the key varieties, meanwhile, strengthen the promotion for per os and solid variety of cefixime and cefprozil,
17
further optimizes the product structure, and improve the profitability; Shenzhen Zhongyao increases the sales
proportion of products with high gross profits, focuses on promoting the products such as Jianer Qingjie lotion,
Xiaoer Qingre, Bai’an lotion, etc. so as to make the product structure reasonable.
B. The sales revenue of Zhijun Pharmacy continues to focus on cephalosporin solid dosage form, and
powder-injection decreases year on year.
C. Implement item node management, quicken the products to come into the market, and drive the structure
transformation by developing new products.
(3) Pharmacy transformation
A. The developing of mainstream market makes breakthroughs and major projects boost successfully so as to
foster new profit growth for industry.
B. Drive the whole transformation of industrial chain via structural adjustment and internationalization strategy,
and improve the competitiveness of industrial chain.
(4) Pharmacy management innovation
A. Optimize the organizational reform, strengthen the resource integration and operation control, and continue to
tamp industry integration platform.
B. Constantly optimize the performance management system, strengthen the management output, and promote
coordinated development of all enterprises.
C. Innovate business management, and fully mobilize the positivity of all resources and staff to support the
business development.
Work arrangements for the next half year
1. Important work arrangements of headquarters function for the next half year
In the next half year, the headquarters function shall take management promotion as the principal line,
comprehensively promote the basic management level, continue to complete the operation of framework, and
constantly optimize the operation system of strengthening the headquarters and enlarging the business division.
(1) Improve the long-acting mechanism for management promotion, and make profits, ensure the increase and
advance the development via management.
(2) Intensify the guidance of planning, constantly explore new merger and acquisition style, and create a new
situation for planning investment.
(3) Integrate professional resources, promote management collaboration, and strengthen the planning, supervision
and resource allocation capabilities of capitals.
(4) Constantly improve the service level, strengthen the capabilities of resource integration and business assurance,
and reflect the value of strengthening headquarters.
(5) Develop the organization assurance, deepen the learning organization construction, and positively perform the
social responsibility.
2. Important work arrangements of distribution division for the next half year
Accomplish supply chain integration for distribution, truly realize the efficient collaboration among all links, and
quickly respond the customer demands; continue to accelerate the network topology, improve the area platform
function, rapidly advance the network sink, strengthen the area leading advantages of distribution business; last
the sale contributions of optimizing type of operation and breed structure and promoting vaccine and instrument.
In addition, continue to accelerate the logistics transformation, complete then hanging on tender for basic drugs
and non-basic drugs, and lay a solid foundation for completing the annual sales targets.
(1) Complete the operation under new framework, and establish new distribution competition benchmarking based
on supply chain.
(2) Innovate the network topology mode, continue to strengthen the efforts to merger and acquisition and
integration, and forge distribution network covering Guangdong and Guangxi.
(3) Improve the area platform operation, intensify the subsidiary management, and truly achieve integration
operation in Guangdong and Guangxi.
(4) Optimize variety and type of operation, rapidly advance the rising business, and realize the promotion for both
scale and profits.
(5) Accelerate the transformation to profits, forge modern logistic center, and support the increase for distribution
business.
3. Important work arrangements of pharmacy division for the next half year
Continue to deepen the structure adjustment for pharmacy, comprehensively advance the internationalization
strategy, and promote the coordinated development among all enterprises via industry chain. Improve the industry
integration operation system, fully integrate resources, boost the management output, and help Zhijun Wanqing
18
and Shenzhen Zhongyao to reduce losses as soon as possible, and practically solve the development imbalance.
Meanwhile, strengthen the development of new products, new fields and new markets, rapidly boost the strategy
transformation marketing, and research and development, work out bottleneck problems that restrict the industrial
development by base construction and lean manufacturing, and guarantee the accomplishment of annual tasks and
targets.
(1) Improve the control function to large industry platform, plan resources and management output, and promote
the balanced development among all enterprises.
(2) Accelerate research & development and marketing strategy transformation, strengthen the two core functions,
and forge dumbbell platform for pharmacy industry.
(3) Speed up the step for structure transformation, form sufficient product echelons, and improve the profitability
and capability to resist risks.
(4) Make overall plans, plan reasonably, find breakthrough for internal markets and large health markets, and form
new development.
(5) Take new GMP as a chance to accelerate the base construction, push the technical innovation for workshop,
and lay a foundation for future development.
Research and development investment and self-dependent innovation of the Company
1. Total investment to research and development
The subordinate industrial enterprise of Sinopharm Yizhi pharmacy division continues the technology investment
so as to improve the scientific innovation ability. It has invested 35 million Yuan in the first half year of 2012,
taking the proportion of 3.71% in the total sales revenues of pharmacy division.
2. Self-dependent innovation
(1) Management innovation: The Company convokes science and technology work meeting in every quarter,
strengthens the management to project approval, budgeting and scheduling, deepens the responsibility system of
projects, and strengthens the process management to research and development; carry out matrix and function
synergy for project management, classifies the risks of projects and adjusts along with the environmental changes
inside and outside, builds software platform for project management, effectively integrates the internal resources,
and unifies the control to remote project scheduling.
(2) New drug declaration: the three enterprises of business division takes full advantages of research and
development superiority, acquires 7 production approvals in the first half year of 2012, applies for 6 patents, and
obtains 3 patent licensing; subsidizes government projects for 340,000.00 Yuan; sets up the 14 new projects,
pushes forward the research and development fields from antibiotics to other fields, boosts the development of
health products, imports patented products at home and abroad; positively try to enter new fields by external
import, merger and acquisition.
(3) Technological innovation: Three industry enterprises take production cost as the guidance, introduce new
technology and the technical innovation goes smoothly. From January to June of 2012, 7 technical innovations
obtain important improvement, optimize the crafts, reduce production costs and enlarge the production capacity.
Meanwhile, the Company takes full advantages of industrial chain, combines research and development
superiority of Zhijun Pharmacy with the raw material research and development superiority of Wanqing, and
positively boosts the matching projects.
(4) New market development: The Company is rated as the international leading enterprises of the Chinese
pharmaceutical enterprises preparations in 2012. Based on the EU authentication, the Company comprehensively
promotes the internationalization, and positively develops EU markets. It makes breakthroughs in international
markets, and overseas sales have been substantially promoted. Chemical products are sold to England, Romania,
and chemical materials are sold to Russia. The Company obtains 15 overseas registration certificates in 2012, and
Dalixin injection wins the bidding in HK consecutively for 7 years.
(5) Energy saving and emission reduction: the Company has passed ISO14000 in April, 2012. Meanwhile, the
Company continues to standardize the management to energy-consuming equipments, launches much work for
energy saving and emission reduction such as transforming the lights on the factory walls to solar lamps so as to
reduce energy consumption, comprehensive energy consumption of production value drops by 4% year on year.
The difference between the actual operating results of the Company and the profit forecast or operation plan in
respect of this reporting period which have been disclosed publicly exceeds 20% (no matter lower or higher) or
not:
□Yes √No
Operation and results analysis for the main subsidiaries and holding companies of the Company
19
1. Shenzhen Zhijun Pharmaceutical Co., Ltd: it is the wholly-owned subsidiary of the company and its registered
capital was RMB200.00 Million Yuan. The company mainly conducted the manufacturing, research and
development as well as production and operation of chemical, giving priority to producing Respiratory system
medication and Anti-infective drug, and the main products included cough medicine for respiratory system and
series of Cephalosporins. The total assets were RMB 1,202,138,500 by the end of June 30, 2012, and the income
form main business was RMB746, 091,400 in the first half of year 2012, and the realized net profit was RMB154,
554,600.
2. Sinopharm Guangzhou Co., Ltd.: it was the wholly –owned subsidiary of the company, and its registered
capital was RMB 400 million, the company mainly operated Traditional Chinese Medicine, Chemical preparation,
anti-hydrolysis, biochemical drug, Biologic Products, Diagnosis drugs and biochemical drug for therapeutic
diagnosis. The total asset was RMB3, 732,171,000 by the end of June 30, 2012, and the income form main
business was RMB 4,767,145,200 in the first half of year 2012, and the realized net profit was RMB 56,500,000.
3. Sinopharm Medicine Holding Guangxi Co., Ltd: it was the wholly –owned subsidiary of the company, and its
registered capital was RMB 100 million, the company mainly conducted the import and export of Traditional
Chinese Medicine, Chemical preparation, Diagnosis drugs and biochemical drug for therapeutic diagnosis as well
as self-operating and acting kinds of commodities and technology as a deputy. The total asset was RMB1,
197,022,500 by the end of June 30, 2012, and the income form main business was RMB 1,006,168,300 in the first
half of year 2012,, and the realized net profit was RMB 19,070,500.
4. Shenzhen Main Luck Pharmaceuticals Inc.: it was the joint stock company, and its registered capital was RMB
120 Million Yuan, the company mainly conducted the development, research, production and operation of
anticancer drug preparation and Famotidine Injection etc. The total asset was RMB 632,489,500 by the end of
June 30, 2012, and income form main business was RMB 285,068,700 in the first half of year 2012, and the
realized net profit was RMB 50,570,400.
The risk factors which will have negative influence on the future development strategy and the achievement of
operating objectives:
VI. (I) The risk factors which will have negative influence on the future development strategy and the
achievement of operating objectives:
1.The threat from the change of Chinese medical industry policy, and the long boom will exist together with the
short-term pain.
2.“Poison capsule affair” will bring attention to the quality and safety of medicine again, which will push the high
operation cost of Pharmaceutical enterprise.
3. The continued influence from the policy of anti-hydrolysis limitation, and anti-hydrolysis industry will suffer
from repression in a long period of time, and trends to the polarization processing of industry segmentation.
4. Threat from financing pressure and fund chain.
5. Threat from the competitor
6. The deficiency of innovative ability will lead to the slow process of new operational type and new model.
20
1. Main business and operations
(1)Statement of main business classified according to industries and products
Unit: RMB
Increase or Increase or Increase or
Classified decrease of decrease of decrease of gross
according to Operating Gross profit ratio operating revenue operating cost profit ratio over
Operating cost
industries or revenue (%) over the last same over the last same the last same
products period of last year period of last year period of last year
(%) (%) (%)
According to industries
Medical
958,587,821.60 586,940,582.21 38.77% 3.55% -9.94% 9.17%
manufacture
Medical
7,732,883,805.68 7,305,030,960.94 5.53% 24.67% 25.26% -0.44%
wholesale
Medical retail 42,601,423.59 37,631,664 11.67% 27.94% 28.07% -0.1%
Logistics and
warehousing 13,418,721.21 8,388,634.09 37.49% 24.45% 5.71% 11.08%
services
Income from
lease and training 5,267,755.50 1,936,498.16 63.24% 2.45% 11.17% -2.89%
service
According to products
Cough medicine
for respiratory 119,971,315.43 30,955,097.16 74.20% -3.25% 8.65% -2.83%
system and
Series of
818,010,646.93 550,838,694.61 32.66% 2.19% -5.97% 5.84%
Cephalosporins
Others 7,814,777,565.22 7,358,134,547.63 5.84% 24.97% 24.53% 0.33%
Explanation on main business classified according to industries and products
Nil
Explanation on major changes of gross profit over same period of last year
Logistics and warehousing service: the income from logistics and warehousing service in this period increases compared with the
same period last year, and the increase degree exceeds that of cost, which leads to the increase of gross profit margin compared with
the same period last year.
(2) Main business classified according to areas
Unit: RMB
Increase/decrease in revenue from
Areas Operating revenue operations over the same period of
last year (%)
Domestic 8,745,190,813.43 22.16%
21
Overseas 7,568,714.15 60.01%
Explanation on main business according to areas
Nil
Explanation on main business institution
Nil
(3) Explanation on reasons of material changes in main operations and its structure
□Applicable √Non-applicable
(4) Explanation on reasons of material changes in profitability (gross profit ratio) of main
operations compared with that of last year
□Applicable √Non-applicable
(5) Analysis on reasons of material changes in profit structure compared with the previous
year
□Applicable √Non-applicable
2. Internal control mechanism related with fair-value measurement
□Applicable √Non-applicable
3. Foreign currency financial assets and financial liabilities held
□Applicable √Non-applicable
(II) Investment of the Company
1. General Application of the raised proceeds
□Applicable √Non-applicable
22
2. Commitments on projects of raised funds
□Applicable √Non-applicable
23
3. Changes of projects of raised funds
□Applicable √Non-applicable
4. Investment on major projects of non-raised funds
√Applicable □Non-applicable
Initial
Amount
notice
projects of Progress Earnings from the projects
disclosed
projects
date
Expansion of 2nd plant of Cephalosporin solid with
Phase II of
capacity of 1 billion pills/sheet increased annually;
Guanlan Base
2011-03-22 25,000.00 43% establish a new production line for sterile pituitary
of Zhijun
lutropin with capacity of 0.2 billion needles increased
Pharmaceutical
annually
The Phase I expected to approach 6 billion yuan
commodity price for operation after put into operating,
New Guangxi
reserve volume will reaches 150,000 pieces; Phase II will
Logistic 2010-03-20 15,466.76 99%
gains reserve capacity of 200,000 pieces after completion.
Center
A transit hub of modern logistic system will generate after
project completion.
After put into operation officially, the solvent recovery
treatment will reaches 85 tons/day, more 15 tons/day than
New solvent
2010-12-09 1,821.60 99% the aged plant; moreover, the recovery quality will
recovery plant
improve, over 8 million yuan cost will save annually
expected.
Cephalosporin sterile material drugs plan will generate
New sterile
2010-12-09 5,934.00 99% more annually capacity of 600 tons; solve the bottle-neck
material plant
issues for market needs satisfy.
The annual capacity of Cefoxitin acid raw material will
Plant increase to 50 tons from 25 tons; annual capacity of
transformation Cefpirome will increase to 15 tons from 6 tons; annual
2010-12-09 918.00 99%
of CXT capacity of Cefixime will increase to 50 tons from 20
Enzymes tons; breakthrough the capacity bottle-neck and
supporting the new plant totally.
New warehousing area 7000m2 increased; the new solvent
New Integrity tank gains a reserve capacity from 80 tons to 900 tons,
2010-12-09 1,152.00 99%
warehouse meanwhile, being reserve integrity and tube transit, risk of
solvent storage and transport are minimized
Sewage Actual treatment ability of sewage will higher to 850
transformation 2010-12-09 11,703.80 40% tons/day from 50 tons/day under circumstance of take
project over standards qualified
Total 61,996.16 -
24
(III) The modification of Board to the business plan for the second half of the year
□Applicable √Non-applicable
(IV) Prediction of business performance from January – September 2012
Estimation on accumulative net profit from the beginning of the year to the end of next report
period to be loss probably or the warning of its material change compared with the corresponding
period of the last year and explanation on reason
√Applicable □Non-applicable
Performance estimate: increases greatly.
Filled data type of performance estimate
□exact quantity √range data
The same
From the beginning to the end
period last Increase/decrease by(%)
of next reporting period
year
Predicted net profit
attributable to parent company
33,000 -- 36,900 24,623.8 √increase □decrease 34% -- 50%
accumulative (10 thousand
yuan)
Basic EPS (Yuan/share) 1.145 -- 1.281 0.855 √increase □decrease 34% -- 50%
The Company promote strategy implementation steadily, fully improve the management,
Notes to performance estimate
performance will getting more and more
(V) Explanation on “Qualified Opinion” from the Certified Public Accountants in the report
period by the Board of Directors
□Applicable √Non-applicable
(VI) Explanation of the Management on changes and disposal of the issues involved in
“Qualified Opinion” from the Certified Public Accountants in the last year by the Board of
Directors
□Applicable √Non-applicable
(VII)Stating the discussion results issued by the Board on changes in the Company’s
accounting policies and accounting estimates or reasons for material accounting error
correction and influences thereof
□ Applicable √ Non-applicable
(VIII) Determination and implementation of cash dividend policies of the Company
According to requirements of regulation department, the Company revised and perfected the Article of
Association on cash dividend, and formulated plan of returning shareholders in future 3 years. This plan was
approved and passed in extraordinary shareholders’ meeting in form of special decision. The revision on cash
dividend in Article of Association and plan of returning shareholders in future 3 years were in accordance with
relative rules and documents. Dividend standard and ratio was clear, decision procedure and mechanism was
complete. Independent directors could fully play their responsibility and roles. These offers chance for medium
and little shareholders to express opinion and claim. Interests of medium and little shareholders were totally
protected.
(IX) Plan of profit distribution or capital reserve capitalizing
□Applicable √Non-applicable
25
(X) Positive retained profit accumulated at end of 2011 without cash distribution carried out
□Applicable √Non-applicable
(XI) Establishment and implementation of registration mechanism for insiders
For intensifying management of internal information, protecting fairness of information disclosure, protecting
legal interests of majority shareholders, the 7th meeting of the 6th session of Board of Directors was held for
revising Administration System for Inside Information and Insiders. The revised one was more complete
including various aspects of inside information management. In real working, the Company strictly compiled with
Administration System for Inside Information and Insiders, making inside information report, confidentiality
management, external sending-off and insiders registration and other working. Meanwhile we conducted various
methods to implement specialized training and warning education, enhanced responsibility of insiders and
self-discipline awareness. Therefore insiders could damage from leaking inside information and using them for
internal trade as well as their responsibility for such behaviors. Thus we could prevent things like these from the
source.
Whether implemented self-examination and accountability on insiders who dealing with stock of the Company as
well as derivative products
□ Yes √ No
Whether custody measurement and administration punishment on listed company and related staff from regulatory
authorities in aspect of implementation of registration management mechanism of insiders or inside trading
involved or not
□Yes √No
(XII) Other events disclosed
Nil
(XIII) Liabilities, credit changes and cash arrangement for debt paying in later year (Only
applies to listed company with corporate convertible bonds offered)
□Applicable √Non-applicable
VII. Significant Event
(I)Corporate governance
The Company strictly compiled with requirements related to laws and regulations of Company Law, Securities
Law and Governing Rules of Listed Company. We consistently complete corporate governance structure,
normalizes operation, enhance information management, strive to construct modern corporation system. Presently
administration system is complete, operation is normal, corporate governance structure is complete, conforming to
requirements of Basic Norms to Inside Control issued by Five Departments Commission and requirements of
affiliated guidance. In reporting period, Sino-Pharm Accord actively solidified results of internal control
construction, consistently optimized internal control system and operation mechanism, constantly adjusted to
various change of the Company surrounding annual internal control goals. Therefore ration of design of internal
control system and validity of operation were guaranteed as follows.
1. We completed regulation over risk of internal control management and organization and 2011 Annual
Self-Estimation On Internal Control Report. Based on comprehensive conclusion of implementation of internal
control normalization, we formulated 2012 working plan for internal control normalization. The plan defined goal,
thinking way and plan of annual risk and internal control, including management organization, internal control
system and mechanism, self-estimation, internal control audit and information disclosure.
Regulation over risk and internal control management and organization mainly combined the change of corporate
structure, regulating the constitution and duty of the Company and members of working team for internal control
management in business department. Thus we ensure sustainable promotion of implementation of normalization
of internal control.
2. We revised and completed documental system of 2012 annual system procedure (internal control) and
self-estimation manual on internal control. With establishment of self-estimation standards for internal control by
26
subsidiary Sino-Pharm Group Shenzhen Chinese Medicine Co., Ltd, we realized overall cover among
self-estimation standards.
We organized specialized and systemic training on new version of system procedure, risk and internal control
knowledge, internal control appraisal, self-estimation manual and others.
3. We accomplished 2012 annual checking plan for internal control site and built check-working team for
compiling site points and making sure the chosen company. The plan would be implemented during July to
August. The Company conducted spot-check on management system and implementation situation through site
checking. Thus we surged them to constantly enhance self-management on internal control management system,
ensure implementation of strategy and operation goal. Thus overall implementation will be improved.
Constant perfection of internal control management mechanism and self-estimation mechanism improved anti-risk
ability and ensured a stable and effective operation quality of the Company.
(II) Implementation of profit distribution plan, capital reserve capitalizing or shares offering
that plan out previously and carry out in this reporting period
√Applicable □Non-applicable
2011 profit distribution scheme was passed through discussion in the Shareholders Meeting of 2011 held by the
company on Apr. 27, 2012, calculating based on 288,149,400 shares issued, the company paid RMB 1.3 (before
tax) of cash dividend per ten shares to all of the shareholders. The profit distribution finished on Jun. 21, 2012,
and the company paid RMB 37,684,032.18 of cash dividends actually.
27
(III) Material lawsuits and arbitrations
□Applicable √Non-applicable
No material lawsuits and arbitrations occurred in this period
28
(IV) Related event of bankruptcy reorganization
□Applicable √Non-applicable
(V) Equity of other listed company and stock jointly financial enterprise held by the Company
1. Security investment
□Applicable √Non-applicable
Explanation on security investment
2. Equity of other listed company held by the Company
□Applicable √Non-applicable
Explanation on equity of other listed company held by the Company
3. Equity of non-listed financial enterprise held by the Company
□Applicable √Non-applicable
Explanation on equity of non-listed financial enterprise held by the Company
4. Buying and selling shares of other listed company
□Applicable √Non-applicable
Explanation on shares dealing of other listed company
(VI) Assets transaction
29
1. Assets purchased or acquired
√Applicable □Non-applicable
Net profit
Net profit contribute The
contribute to the
to the listed Whether the proportion of Related relation
listed company Whether the
company between involving net profit of the with
Transaction between the Whether it asset Date for
Acquired or Transaction the purchase date to creditor’s asset contribute transaction
Counterparty Purchase beginning period to is related Asset pricing property disclosing first
swapped-in price the end of report right and debt to listed counterparty
or final date the end of transaction principle right is temporary
asset (’0000) period(’0000) (for are company (for circs of
controller report(’0000) (for or not completely announcement
the enterprise completed accounting for related
the enterprise transferred
merger under same transferred the total transaction)
merger under same
control) profit(%)
control)
Evaluating
Sinopharm
Purchase by book
Medicine
100% stake Jan. 9, value of
Holding 506 1.03 No Yes Yes 0.003% 2011-12-6
of the 2012 balance sheet
Zhaoqing Co.,
company date on 31
Ltd
August 2011
Evaluating
Sinopharm
Purchase by book
Medicine Under the same
99.7% stake value of
Holding 450 0.96 Yes Yes Yes 0.003% controlling 2011-12-06
of the Mar. 14, balance sheet
Wuzhou Co., 2012 shareholder
company date on 30
Ltd
June 2011
Sinopharm Purchase Evaluating
Apr.
Medicine 100% stake 5,600 128.49 No by book Yes Yes 0.418% 2012-03-31
23, 2012
Holding of the value of
30
Jiangmen company balance sheet
RenRen Co., date on 31
Ltd July 2011
Notes to assets purchase
From the beginning period to Jun. 30, 2012, the company has purchased three companies, during which Sinopharm Medicine Holding Zhaoqing Co., Ltd and Sinopharm Medicine Holding Jiangmen
RenRen Co., Ltd were purchased not under the same control, and Sinopharm Medicine Holding Wuzhou Co., Ltd was purchased under the same control.
2. Assets sold
□Applicable √Non-applicable
Explanation on assets sold
Nil
3. Assets replacement
□Applicable √Non-applicable
Explanation on assets replacement
Nil
31
4. Business combination
√Applicable □Non-applicable
Net (liability)/Assets dated Net profit from dated of combination to
30 June 2012 end of 30 June 2012
Business combination under same
control
Sinopharm Wuzhou -115,353.36 250,311.18
Business combination under different
control
Sinopharm Zhaoqing 2,475,950.25 10,291.78
Sinopharm Jiangmen 11,292,546.68 1,284,864.41
5. Progress of the events and their influence on the Company’s operating results and
financial status in the report period after the Report on Assets Restructure or Public Notice
on Acquisition and Sales of Assets being published
□Applicable √Non-applicable
(VII) Explanation on shareholding increase proposed or implemented by largest shareholder
of the Company and its persons acting in concert in reporting period
□Applicable √Non-applicable
(VIII) Implementation and its influence of equity incentive
□Applicable √Non-applicable
(XI) Significant related transaction
32
1. Related transaction related to daily operation
√Applicable □Non-applicable
Reasons of
major
Related Related Proportion in
Type of Content of Clearing form Influence of Market difference
Pricing transaction transaction similar
Related party Relationship related related for related profit of the price(10 between
principle price (10 amount (10 transactions
transaction transaction transaction Company thousand yuan) trading price
thousand yuan) thousand yuan) (%)
and market
reference price
Sinopharm
Same controlling Commodity Cash settlement
Group Hunan Medicine sales Market price 5,524.88 5,524.88 0.63% Note 1 5,524.88 N/A
shareholder sales etc.
Co., Ltd.
Jiangmen
Renren Control by key
Commodity Cash settlement
Medical supervisor of Medicine sales Market price 16.88 16.88 0.00% Note 1 16.88 N/A
sales etc.
Equipment Co., subsidiary
Ltd.
Foshan Nanhai
New Medicine
Same controlling Commodity Cash settlement
& Special Medicine sales Market price 5,104.1 5,104.1 0.58% Note 1 5,104.1 N/A
shareholder sales etc.
Medicine Co.,
Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Beijing Medicine sales Market price 4,260.17 4,260.17 0.49% Note 1 4,260.17 N/A
shareholder sales etc.
Co., Ltd.
Guangdong
Accord Same controlling Commodity Cash settlement
Medicine sales Market price 4,114.39 4,114.39 0.47% Note 1 4,114.39 N/A
Pharmacy Co., shareholder sales etc.
Ltd.
33
Sinopharm
Same controlling Commodity Cash settlement
Group Hubei Medicine sales Market price 4,221.1 4,221.1 0.48% Note 1 4,221.1 N/A
shareholder sales etc.
Co., Ltd.
China National
Sout-west Same controlling Commodity Cash settlement
Medicine sales Market price 4,196.39 4,196.39 0.48% Note 1 4,196.39 N/A
Medicine Co., shareholder sales etc.
Ltd.
Chongqing
Subsidiary of
Yaoyou Commodity Cash settlement
FOSUN Medicine sales Market price 4,012.31 4,012.31 0.46% Note 1 4,012.31 N/A
Pharmaceutical sales etc.
Medicines
Co., Ltd.
Sinopharm
Group (Tianjin)
Oriental Same controlling Commodity Cash settlement
Medicine sales Market price 2,431.56 2,431.56 0.28% Note 1 2,431.56 N/A
Bookcom shareholder sales etc.
Medicine Co.,
Ltd.
Sinopharm
Group Beijing Same controlling Commodity Cash settlement
Medicine sales Market price 2,363.66 2,363.66 0.27% Note 1 2,363.66 N/A
Huahong Co., shareholder sales etc.
Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Hainan Medicine sales Market price 2,150.16 2,150.16 0.25% Note 1 2,150.16 N/A
shareholder sales etc. etc.
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Medicine sales Market price 1,824.09 1,824.09 0.21% Note 1 1,824.09 N/A
shareholder sales etc.
Shenyang Co.,
34
Ltd.
Foshan Nanhai
Same controlling Commodity Cash settlement
Medicine CO., Medicine sales Market price 1,543.6 1,543.6 0.18% Note 1 1,543.6 N/A
shareholder sales etc.
Ltd.
Guangxi
Accord Same controlling Commodity Cash settlement
Medicine sales Market price 1,524.92 1,524.92 0.17% Note 1 1,524.92 N/A
Pharmacy shareholder sales etc.
Chain Co.,Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Ningxia Medicine sales Market price 1,526.55 1,526.55 0.17% Note 1 1,526.55 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Zhejiang Medicine sales Market price 1,434.26 1,434.26 0.16% Note 1 1,434.26 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Group Hebei Same controlling Commodity Cash settlement
Medicine sales Market price 1,420.59 1,420.59 0.16% Note 1 1,420.59 N/A
Medicine Co., shareholder sales etc.
Ltd.
Sinopharm
Group Xinjiang
New & Special Same controlling Commodity Cash settlement
Medicine sales Market price 1,420.46 1,420.46 0.16% Note 1 1,420.46 N/A
Western shareholder sales etc.
Medicine Co.,
Ltd.
Sinopharm Same controlling Commodity Cash settlement
Medicine sales Market price 1,351.38 1,351.38 0.15% Note 1 1,351.38 N/A
Group shareholder sales etc.
35
Distribution
Center Co.,
Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Tianjin Medicine sales Market price 1,305.3 1,305.3 0.15% Note 1 1,305.3 N/A
shareholder sales etc.
Co., Ltd
Sinopharm Controlling Commodity Cash settlement
Medicine sales Market price 1,245.75 1,245.75 0.14% Note 1 1,245.75 N/A
Group Co., Ltd. shareholder sales etc.
China National
Xinjiang New
& Special Same controlling Commodity Cash settlement
Medicine sales Market price 1,241.23 1,241.23 0.14% Note 1 1,241.23 N/A
Western shareholder sales etc.
Medicine Co.,
Ltd.
Sinopharm
Le-Ren-Tang Same controlling Commodity Cash settlement
Medicine sales Market price 1,240.94 1,240.94 0.14% Note 1 1,240.94 N/A
Medicine Co., shareholder sales etc.
Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Yunnan Medicine sales Market price 1,184.37 1,184.37 0.14% Note 1 1,184.37 N/A
shareholder sales etc.
Co., Ltd
Sinopharm
Group Same controlling Commodity Cash settlement
Medicine sales Market price 1,159.86 1,159.86 0.13% Note 1 1,159.86 N/A
Shandong Co., shareholder sales etc.
Ltd
Sinopharm Same controlling Commodity Medicine sales Market price 1,118.79 1,118.79 0.13% Cash settlement Note 1 1,118.79 N/A
36
Group Shanxi shareholder sales etc.
Co., Ltd
Sinopharm
Group Hainan Same controlling Commodity Cash settlement
Medicine sales Market price 1,045.83 1,045.83 0.12% Note 1 1,045.83 N/A
Hongyi Co., shareholder sales etc.
Ltd
Sinopharm
Same controlling Commodity Cash settlement
Group Gansu Medicine sales Market price 900.12 900.12 0.10% Note 1 900.12 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Nantong Medicine sales Market price 842.78 842.78 0.10% Note 1 842.78 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Group Same controlling Commodity Cash settlement
Medicine sales Market price 711.26 711.26 0.08% Note 1 711.26 N/A
Wenzhou Co., shareholder sales etc.
Ltd.
Guangdong
Dong Fang
Same controlling Commodity Cash settlement
Uptodate & Medicine sales Market price 686.29 686.29 0.08% Note 1 686.29 N/A
shareholder sales etc.
Special
Medicines Co.,
Sinopharm
Group Same controlling Commodity Cash settlement
Medicine sales Market price 672.75 672.75 0.08% Note 1 672.75 N/A
Chongqing Co., shareholder sales etc.
Ltd.
Sinopharm Same controlling Commodity Medicine sales Market price 622.8 622.8 0.07% Cash settlement Note 1 622.8 N/A
37
Group Fujian shareholder sales etc.
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Jiangsu Medicine sales Market price 589.2 589.2 0.07% Note 1 589.2 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Fuzhou Medicine sales Market price 561.17 561.17 0.06% Note 1 561.17 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Jinzhou Medicine sales Market price 545.92 545.92 0.06% Note 1 545.92 N/A
shareholder sales etc.
Co., Ltd.
China National
Medicines Same controlling Commodity Cash settlement
Medicine sales Market price 439.78 439.78 0.05% Note 1 530.13 N/A
Corporation shareholder sales etc.
Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Henan Medicine sales Market price 378.72 378.72 0.04% Note 1 378.72 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Shanxi Medicine sales Market price 297.52 297.52 0.03% Note 1 297.52 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Group Same controlling Commodity Cash settlement
Medicine sales Market price 263.64 263.64 0.03% Note 1 263.64 N/A
Heilongjiang shareholder sales etc.
Co., Ltd.
Sinopharm Same controlling Commodity Medicine sales Market price 254.26 254.26 0.03% Cash settlement Note 1 254.26 N/A
38
Group Jilin shareholder sales etc.
Co., Ltd.
Sinopharm
Group Inner Same controlling Commodity Cash settlement
Medicine sales Market price 207.85 207.85 0.02% Note 1 207.85 N/A
Mongolia Co., shareholder sales etc.
Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Anhui Medicine sales Market price 186.2 186.2 0.02% Note 1 186.2 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Xuzhou Medicine sales Market price 179.22 179.22 0.02% Note 1 179.22 N/A
shareholder sales etc.
Co., Ltd.
Shanghai
Subsidiary of
Zhaohui Commodity Cash settlement
FOSUN Medicine sales Market price 157.18 157.18 0.02% Note 1 157.18 N/A
Pharmaceutical sales etc.
Medicines
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Ningde Medicine sales Market price 155.43 155.43 0.02% Note 1 155.43 N/A
shareholder sales etc.
Co., Ltd.
Chinese-Wester
n Medicine
Branch of Same controlling Commodity Cash settlement
Medicine sales Market price 141.25 141.25 0.02% Note 1 141.25 N/A
Sinopharm shareholder sales etc.
Group Jiangsu
Co., Ltd.
Sichuan Hexin Subsidiary of Commodity Medicine sales Market price 137.51 137.51 0.02% Cash settlement Note 1 137.51 N/A
39
Medicines Co., FOSUN sales etc.
ltd. Medicines
Sinopharm
Same controlling Commodity Cash settlement
Group Longyan Medicine sales Market price 135.66 135.66 0.02% Note 1 135.66 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Guizhou Medicine sales Market price 128.81 128.81 0.01% Note 1 128.81 N/A
shareholder sales etc.
Co., Ltd.
Guangdong
Same ultimate
South Medicine Commodity Cash settlement
controlling Medicine sales Market price 121.77 121.77 0.01% Note 1 121.77 N/A
Foreign Trade sales etc.
shareholder
Co., ltd.
China National
Medicine Same controlling Commodity Cash settlement
Medicine sales Market price 121.68 121.68 0.01% Note 1 121.68 N/A
Corporation shareholder sales etc.
Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Suzhou Medicine sales Market price 118.11 118.11 0.01% Note 1 118.11 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Taizhou Medicine sales Market price 116.38 116.38 0.01% Note 1 116.38 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Group Tianjin Same controlling Commodity Cash settlement
Medicine sales Market price 104.6 104.6 0.01% Note 1 104.6 N/A
Northern shareholder sales etc.
Medicines Co.,
40
Ltd.
Sinopharm
Group Same controlling Commodity Cash settlement
Medicine sales Market price 92.51 92.51 0.01% Note 1 92.51 N/A
Yancheng Co., shareholder sales etc.
Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Wuxi Medicine sales Market price 92.42 92.42 0.01% Note 1 92.42 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Group Merro Same controlling Commodity Cash settlement
Medicine sales Market price 86.86 86.86 0.01% Note 1 86.86 N/A
(Dalian) Co., shareholder sales etc.
Ltd.
Sinopharm
Group Hunan
Same controlling Commodity Cash settlement
Deyuan Medicine sales Market price 83.51 83.51 0.01% Note 1 83.51 N/A
shareholder sales etc.
Medicines Co.,
Ltd.
Sinopharm
Group Same controlling Commodity Cash settlement
Medicine sales Market price 78.81 78.81 0.01% Note 1 78.81 N/A
NanjingCo., shareholder sales etc.
Ltd.
Sinopharm
Group Same controlling Commodity Cash settlement
Medicine sales Market price 78.26 78.26 0.01% Note 1 78.26 N/A
Zhangzhou shareholder sales etc.
Co., Ltd.
China National Same ultimate Commodity Medicine sales Market price 72.38 72.38 0.01% Cash settlement Note 1 72.38 N/A
41
Weiqida controlling sales etc.
Pharmaceutical shareholder
Co., Ltd.
Guangzhou
Accord Same controlling Commodity Cash settlement
Medicine sales Market price 37.74 37.74 0.00% Note 1 37.74 N/A
Pharmacy shareholder sales etc.
Chain Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Yantai Medicine sales Market price 35.1 35.1 0.00% Note 1 35.1 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Putian Medicine sales Market price 34.5 34.5 0.00% Note 1 34.5 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Jiangxi Medicine sales Market price 31.64 31.64 0.00% Note 1 31.64 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Wuhu Medicine sales Market price 27.29 27.29 0.00% Note 1 27.29 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Group Xinjiang
Uptodate & Same controlling Commodity Cash settlement
Medicine sales Market price 22.33 22.33 0.00% Note 1 22.33 N/A
Special Keshi shareholder sales etc.
Pharmaceutical
Co., Ltd.
Sinopharm Same controlling Commodity Medicine sales Market price 22.26 22.26 0.00% Cash settlement Note 1 22.26 N/A
42
Group shareholder sales etc.
Changzhou
Medicine
Logistics
Center Co.,
Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Jinan Medicine sales Market price 17.15 17.15 0.00% Note 1 17.15 N/A
shareholder sales etc.
Co., Ltd.
Dalian Branch
of Sinopharm
Same controlling Commodity Cash settlement
Group Medicine sales Market price 15.47 15.47 0.00% Note 1 15.47 N/A
shareholder sales etc.
Shenyang Co.,
Ltd.
China National
Shanghai
Same controlling Commodity Cash settlement
Likang Medicine sales Market price 12.67 12.67 0.00% Note 1 12.67 N/A
shareholder sales etc.
Pharmaceutical
Co., Ltd
Sinopharm
Same controlling Commodity Cash settlement
Group Anqing Medicine sales Market price 11.77 11.77 0.00% Note 1 11.77 N/A
shareholder sales etc.
Co., Ltd.
Heilongjiang
Sinopharm Same ultimate
Commodity Cash settlement
Crude controlling Medicine sales Market price 9.44 9.44 0.00% Note 1 9.44 N/A
sales etc.
Medicine Co., shareholder
Ltd.
43
Sinopharm
Group Same controlling Commodity Cash settlement
Medicine sales Market price 7.3 7.3 0.00% Note 1 7.3 N/A
Changzhou shareholder sales etc.
Co., Ltd.
Sinopharm
Group Xinjiang
Same controlling Commodity Cash settlement
Hami Medicine sales Market price 5.82 5.82 0.00% Note 1 5.82 N/A
shareholder sales etc.
Pharmaceutical
Co., ltd.
Sinopharm
Group Xinjiang
Uptodate &
Same controlling Commodity Cash settlement
Special Medicine sales Market price 5.79 5.79 0.00% Note 1 5.79 N/A
shareholder sales etc.
Ginseng
Pharmaceutical
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Sanming Medicine sales Market price 4.46 4.46 0.00% Note 1 4.46 N/A
shareholder sales etc.
Co., Ltd.
Zhongkeqi Imp
Same ultimate
& Exp Commodity Cash settlement
controlling Medicine sales Market price 4.44 4.44 0.00% Note 1 4.44 N/A
Shenzhen Co., sales etc.
shareholder
ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Lishui Medicine sales Market price 3.78 3.78 0.00% Note 1 3.78 N/A
shareholder sales etc.
Co., Ltd.
44
China National
Xinjiang
Uptodate &
Same controlling Commodity Cash settlement
Special Medicine sales Market price 3.27 3.27 0.00% Note 1 3.27 N/A
shareholder sales etc.
Karamay
Pharmaceutical
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Qujin Medicine sales Market price 1.91 1.91 0.00% Note 1 1.91 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Group Xinjiang
Same controlling Commodity Cash settlement
Yili Tongde Medicine sales Market price 1.71 1.71 0.00% Note 1 1.71 N/A
shareholder sales etc.
Pharmaceutical
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Qinghai Medicine sales Market price 0.98 0.98 0.00% Note 1 0.98 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Jinzhou Medicine sales Market price 0.83 0.83 0.00% Note 1 0.83 N/A
shareholder sales etc.
Co., Ltd.
Sinopharm
Xinjiang Korla Same controlling Commodity Cash settlement
Medicine sales Market price 0.3 0.3 0.00% Note 1 0.3 N/A
Pharmaceutical shareholder sales etc.
Co., ltd.
Taizhou Branch
Same controlling Commodity Medicine sales Market price 0.14 0.14 0.00% Cash settlement Note 1 0.14 N/A
of Sinopharm
45
Group Jiangsu shareholder sales etc.
Co., Ltd.
Sinopharm
Same controlling Commodity Cash settlement
Group Siping Medicine sales Market price 0.14 0.14 0.00% Note 1 0.14 N/A
shareholder sales etc.
Co., Ltd.
Distribution
Guangdong Distribution and
and
Accord Same controlling transportation Cash settlement
transportation Market price 20.68 20.68 0.00% Note 1 20.68 N/A
Pharmacy Co., shareholder service charge etc.
service charge
Ltd. received
received
Distribution
Guangdong Distribution and
and
Accord Same controlling transportation Cash settlement
transportation Market price 123.67 123.67 0.01% Note 1 123.67 N/A
Pharmacy Co., shareholder service charge etc.
service charge
Ltd. received
received
Distribution
China National Distribution and
and
Medicines Same controlling transportation Cash settlement
transportation Market price 511.05 511.05 0.06% Note 1 511.05 N/A
Corporation shareholder service charge etc.
service charge
Ltd. received
received
Distribution
China National Distribution and
and
Medicines Same controlling transportation Cash settlement
transportation Market price 90.35 90.35 0.01% Note 1 90.35 N/A
Corporation shareholder service charge etc.
service charge
Ltd. received
received
Shenzhen Main Affiliated Meeting Meeting Cash settlement
Market price 13.56 13.56 0.00% Note 1 13.56 N/A
Luck company training training service etc.
46
Pharmaceutical service income
s Inc. income
Guangxi
Accord Same controlling Income from Income from Cash settlement
Market price 56.63 56.63 8.94% Note 1 56.63 N/A
Pharmacy shareholder house leasing house leasing etc.
Chain Co.,Ltd.
Guangxi
Accord Same controlling Income from Income from Cash settlement
Market price 3.21 3.21 0.51% Note 1 3.21 N/A
Pharmacy shareholder house leasing house leasing etc.
Chain Co.,Ltd.
Shenzhen
Accord Same controlling Income from Income from Cash settlement
Market price 23.48 23.48 3.70% Note 1 23.48 N/A
Medicine shareholder house leasing house leasing etc.
Chain CO, ltd.
Shenzhen
Accord Same controlling Income from Income from Cash settlement
Market price 2.7 2.7 0.43% Note 1 2.7 N/A
Medicine shareholder house leasing house leasing etc.
Chain CO, ltd.
Guangzhou
Accord Same controlling Income from Income from Cash settlement
Market price 25.68 25.68 4.05% Note 1 25.68 N/A
Pharmacy shareholder house leasing house leasing etc.
Chain Co., Ltd.
China National
Shanghai Same ultimate
Income from Income from Cash settlement
Medical controlling Market price 9.64 9.64 1.52% Note 1 9.64 N/A
house leasing house leasing etc.
Divices Co., shareholder
Ltd
47
Guangxi
Accord Same controlling Income from Income from Cash settlement
Market price 13.98 13.98 2.21% Note 1 13.98 N/A
Pharmacy shareholder house leasing house leasing etc.
Chain Co.,Ltd.
Foshan Nanhai
New Medicine
Same controlling Commodity Medicine Cash settlement
& Special Market price 82.18 82.18 0.01% Note 1 82.18 N/A
shareholder purchased purchased etc.
Medicine Co.,
Ltd.
Foshan Nanhai
Same controlling Commodity Medicine Cash settlement
Medicine CO., Market price 15.79 15.79 0.00% Note 1 15.79 N/A
shareholder purchased purchased etc.
Ltd.
Guangdong
Dong Fang
Same controlling Commodity Medicine Cash settlement
Uptodate & Market price 222.69 222.69 0.03% Note 1 222.69 N/A
shareholder purchased purchased etc.
Special
Medicines Co.,
Guangdong
Same ultimate
South Medicine Commodity Medicine Cash settlement
controlling Market price 715.87 715.87 0.09% Note 1 715.87 N/A
Foreign Trade purchased purchased etc.
shareholder
Co., ltd.
Guangdong
Accord Same controlling Commodity Medicine Cash settlement
Market price 8.18 8.18 0.00% Note 1 8.18 N/A
Pharmacy Co., shareholder purchased purchased etc.
Ltd.
Guilin Subsidiary of
Commodity Medicine Market price 15.28 15.28 0.00% Cash settlement Note 1 15.28 N/A
Pharmaceutical FOSUN
48
Co., Ltd. Medicines purchased purchased etc.
China National
Medicines
Same controlling Commodity Medicine Cash settlement
Guorui Market price 1.24 1.24 0.00% Note 1 1.24 N/A
shareholder purchased purchased etc.
Pharmaceutical
Co., Ltd.
China National
Chemical
Same controlling Commodity Medicine Cash settlement
Reagent Market price 19.35 19.35 0.00% Note 1 19.35 N/A
shareholder purchased purchased etc.
Suchou Co.,
ltd.
China National
Chemical Same controlling Commodity Medicine Cash settlement
Market price 48.14 48.14 0.01% Note 1 48.14 N/A
Reagent Co., shareholder purchased purchased etc.
Ltd.
China National
Same ultimate
Union Medical Commodity Medicine Cash settlement
controlling Market price -0.36 -0.36 0.00% Note 1 -0.36 N/A
Devices Co., purchased purchased etc.
shareholder
ltd.
China National
Shanghai Same ultimate
Commodity Medicine Cash settlement
Medical controlling Market price 2.16 2.16 0.00% Note 1 2.16 N/A
purchased purchased etc.
Divices Co., shareholder
Ltd
China National Same ultimate
Commodity Medicine Cash settlement
Weiqida controlling Market price 672 672 0.09% Note 1 672 N/A
purchased purchased etc.
Pharmaceutical shareholder
49
Co., Ltd.
China National
Medicines Same controlling Commodity Medicine Cash settlement
Market price 10,912.7 10,912.7 1.42% Note 1 10,912.7 N/A
Corporation shareholder purchased purchased etc.
Ltd.
Sinopharm
Same controlling Commodity Medicine Cash settlement
Group Beijing Market price 244.05 244.05 0.03% Note 1 244.05 N/A
shareholder purchased purchased etc.
Co., Ltd.
Sinopharm
Group
Same controlling Commodity Medicine Cash settlement
Distribution Market price 42,918.64 42,918.64 5.57% Note 1 42,918.64 N/A
shareholder purchased purchased etc.
Center Co.,
Ltd.
Sinopharm
Same controlling Commodity Medicine Cash settlement
Group Fujian Market price 354.48 354.48 0.05% Note 1 354.48 N/A
shareholder purchased purchased etc.
Co., Ltd.
Sinopharm controlling Commodity Medicine Cash settlement
Market price 18,916.3 18,916.3 2.45% Note 1 18,916.3 N/A
Group Co., Ltd. shareholder purchased purchased etc.
Sinopharm
Same controlling Commodity Medicine Cash settlement
Group Guizhou Market price 578.15 578.15 0.07% Note 1 578.15 N/A
shareholder purchased purchased etc.
Co., Ltd.
Sinopharm
Same controlling Commodity Medicine Cash settlement
Group Hainan Market price 29.44 29.44 0.00% Note 1 29.44 N/A
shareholder purchased purchased etc.
Co., Ltd.
Sinopharm Same controlling Commodity Medicine Cash settlement
Market price 6.77 6.77 0.00% Note 1 6.77 N/A
Group Hunan shareholder purchased purchased etc.
50
Co., Ltd.
Sinopharm
Group Same controlling Commodity Medicine Cash settlement
Market price 0.35 0.35 0.00% Note 1 0.35 N/A
Zhangzhou shareholder purchased purchased etc.
Co., Ltd.
Has major
Qinghai
influence from Commodity Medicine Cash settlement
Pharmaceutical Market price 410.89 410.89 0.05% Note 1 410.89 N/A
controlling purchased purchased etc.
Co., ltd.
shareholder
Handan Moluo Subsidiary of
Commodity Medicine Cash settlement
Pharmaceutical FOSUN Market price 2.56 2.56 0.00% Note 1 2.56 N/A
purchased purchased etc.
Co., ltd. Medicines
Huarui
集团 Affiliated Commodity Medicine Cash settlement
Pharmaceutical Market price 3,939.17 3,939.17 0.51% Note 1 3,939.17 N/A
company purchased purchased etc.
Co., ltd.
Jiangsu
Wanban Subsidiary of
Commodity Medicine Cash settlement
Medicines FOSUN Market price 725.77 725.77 0.09% Note 1 725.77 N/A
purchased purchased etc.
Marketing Co., Medicines
ltd.
Lanzhou
Same ultimate
Bio-Tech Commodity Medicine Cash settlement
controlling Market price 26.51 26.51 0.00% Note 1 26.51 N/A
Development purchased purchased etc.
shareholder
Co., Ltd.
Shanghai Subsidiary of Commodity Medicine Cash settlement
Market price -0.11 -0.11 0.00% Note 1 -0.11 N/A
Zhaohui FOSUN purchased purchased etc.
51
Pharmaceutical Medicines
Co., Ltd.
Shanghai
Same ultimate
Modern Commodity Medicine Cash settlement
controlling Market price 29.97 29.97 0.00% Note 1 29.97 N/A
Pharmaceutical purchased purchased etc.
shareholder
Ltd.
Shenzhen
Accord Same controlling Commodity Medicine Cash settlement
Market price 1.19 1.19 0.00% Note 1 1.19 N/A
Medicine shareholder purchased purchased etc.
Chain CO, ltd.
Shenzhen Main
Luck Affiliated Commodity Medicine Cash settlement
Market price 1,951.11 1,951.11 0.25% Note 1 1,951.11 N/A
Pharmaceutical company purchased purchased etc.
s Inc.
Shenzhen
Wanwei Subsidiary of
Commodity Medicine Cash settlement
Medicines Affiliated Market price 407.92 407.92 0.05% Note 1 407.92 N/A
purchased purchased etc.
Trading Co., company
Ltd.
Shenyang
Subsidiary of
Hongqi Commodity Medicine Cash settlement
FOSUN Market price 2.7 2.7 0.00% Note 1 2.7 N/A
Pharmacy Co., purchased purchased etc.
Medicines
ltd
Sichuan
Same ultimate
Jiangyou ZBFZ Commodity Medicine Cash settlement
controlling Market price 2.08 2.08 0.00% Note 1 2.08 N/A
Technology purchased purchased etc.
shareholder
Development
52
Co., ltd.
Yichang
Humanwell 国控 Affiliated Commodity Medicine Cash settlement
Market price 3.31 3.31 0.00% Note 1 3.31 N/A
Pharmaceutical company purchased purchased etc.
Co., Ltd.
Yunnan Crude Same ultimate
Commodity Medicine Cash settlement
Medicine Co., controlling Market price 26.37 26.37 0.00% Note 1 26.37 N/A
purchased purchased etc.
Ltd. shareholder
China Otsuka Affiliated
Commodity Medicine Cash settlement
Pharmaceutical company of the Market price 9.73 9.73 0.00% Note 1 9.73 N/A
purchased purchased etc.
Co., ltd. Group
Chongqing
Subsidiary of
Haisiman Commodity Medicine Cash settlement
FOSUN Market price 508.17 508.17 0.07% Note 1 508.17 N/A
Pharmaceutical purchased purchased etc.
Medicines
LTD
Chongqing
Subsidiary of
Yaoyou Commodity Medicine Cash settlement
FOSUN Market price 494 494 0.06% Note 1 494 N/A
Pharmaceutical purchased purchased etc.
Medicines
Co., Ltd.
Sinopharm
Same controlling Commodity Medicine Cash settlement
Group Putian Market price 79.81 79.81 0.01% Note 1 79.81 N/A
shareholder purchased purchased etc.
Co., Ltd.
Sinopharm
Same controlling Commodity Medicine Cash settlement
Group Suzhou Market price 1.28 1.28 0.00% Note 1 1.28 N/A
shareholder purchased purchased etc.
Co., Ltd.
Sinopharm Same controlling Commodity Medicine Market price 12.53 12.53 0.00% Cash settlement Note 1 12.53 N/A
53
Group Yunnan shareholder purchased purchased etc.
Co., Ltd
Shanghai
Modern Hasen Same ultimate
Commodity Medicine Cash settlement
(Shangqiu) controlling Market price 8.04 8.04 0.00% Note 1 8.04 N/A
purchased purchased etc.
Pharmaceutical shareholder
Co., Ltd.
A-Think
Same controlling Commodity Medicine Cash settlement
Pharmaceutical Market price 12.23 12.23 0.00% Note 1 12.23 N/A
shareholder purchased purchased etc.
Co., Ltd.
Distributionad
China National Distributionadn
n
Medicines Same controlling transportation Cash settlement
transportatio Market price 74.62 74.62 0.01% Note 1 74.62 N/A
Corporation shareholder service charge etc.
n service
Ltd. paid
charge paid
Reed
Same ultimate
Sinopharm Exhibition Exhibition Cash settlement
controlling Market price 1.92 1.92 3.52% Note 1 1.92 N/A
Exhibitions charge paid charge paid etc.
shareholder
Co., LTD
China National
Medicines Same controlling House leasing House leasing Cash settlement
Market price 354 354 65.38% Note 1 354 N/A
Corporation shareholder charge paid charge paid etc.
Ltd.
China National
Medicines Same controlling Equipment Equipment Cash settlement
Market price 438.75 438.75 81.04% Note 1 438.75 N/A
Corporation shareholder leasing paid leasing paid etc.
Ltd.
54
Key supervisor House leasing House leasing Cash settlement
Peng Jianxiong Market price 3.12 3.12 0.00% Note 1 3.12 N/A
of subsidiary charge paid charge paid etc.
Minority
House leasing House leasing Cash settlement
Wang yang shareholder of Market price 19.8 19.8 3.66% Note 1 19.8 N/A
charge paid charge paid etc.
subsidiary
Sinopharm controlling Entrust loan Entrust loan Cash settlement
Market price 539.06 539.06 51.56% Note 1 539.06 N/A
Group Co., Ltd. shareholder interest paid interest paid etc.
Sinopharm controlling Entrust loan Entrust loan Cash settlement
Market price 456.09 456.09 43.62% Note 1 456.09 N/A
Group Co., Ltd. shareholder interest paid interest paid etc.
Sinopharm controlling Entrust loan Entrust loan Cash settlement
Market price 50.37 50.37 4.82% Note 1 50.37 N/A
Group Co., Ltd. shareholder interest paid interest paid etc.
Discount Discount
Sinopharm controlling Cash settlement
buy-paid of buy-paid of Market price 111.33 111.33 19.02% Note 1 111.33 N/A
Group Co., Ltd. shareholder etc.
note paid note paid
Sinopharm
Group Discount Discount
Same controlling Cash settlement
Distribution buy-paid of buy-paid of Market price 171.35 171.35 29.28% Note 1 171.35 N/A
shareholder etc.
Center Co., note paid note paid
Ltd.
Total -- -- 158,198.03 -- -- -- -- --
Details of major sold-goods return N/A
Necessity and sustainable of related transaction as well as reasons
There have been continuous related transaction between the company and each related company due to the need of production and
of related transaction with related parties(not with other marketing
operation, and it will exist in a longer period of time.
dealers)
Influence on independence of listed company from related No influence on the independence of listed company from the above related transactions.
55
transaction
Dependence on related parties by Company as well as relevant It is indispensable of the related transaction between the company and the above related company, and it is also necessary for the
solutions (If applicable)
normal production and operation, so it belongs to normal related transaction.
“Case discussion on the daily related transaction between the company and its subsidiaries and the related parties in 2012” was
Actual implementation of those amount that predicted in this
period by category for daily related transaction passed through discussion in the shareholders meeting on April 27, 2012, the sales and purchase of related parties accounted for
42.83% and 46.9% of its total estimated amount of the whole year respectively during the reporting period.
Explanation on related transactions N/A
Note1: no bad influence on profit of the Company from related transactions above mentioned
Related transactions concerned with routine operations
Commodity sales and labor service provided to related party Commodity purchased fromadn receiving labor service from related party
Related party Transaction amount (10 thousand Transaction amount (10 thousand
Proportion in similar transaction (%) Proportion in similar transaction (%)
yuan) yuan)
Jiangmen Renren Medical Equipment Co.,
16.88 0.00%
Ltd.
Foshan Nanhai New Medicine & Special
5,104.1 0.58% 82.18 0.01%
Medicine Co., Ltd.
Foshan Nanhai Medicine CO., Ltd. 1,543.6 0.18% 15.79 0.00%
Guangdong Dong Fang Uptodate & Special
686.29 0.08% 222.69 0.03%
Medicines Co.,
Guangdong South Medicine Foreign Trade
121.77 0.01% 715.87 0.09%
Co., ltd.
Guangdong Accord Pharmacy Co., Ltd. 4114.39 0.47% 8.18 0.00%
Guangdong Accord Pharmacy Co., Ltd. 20.68 0.00%
56
Guangdong Accord Pharmacy Co., Ltd. 123.67 0.01%
Guangxi Accord Pharmacy Chain Co.,Ltd. 1,524.92 0.17%
Guangzhou Accord Pharmacy Chain Co.,
37.74 0.00%
Ltd.
Qinghai Pharmaceutical Co., Ltd. 410.89 0.05%
Guilin Pharmaceutical CO., ltd. 15.28 0.00%
China National Medicines Guorui 0.00%
1.24
Pharmaceutical Co., Ltd.
China National Chemical Reagent Suchou
19.35 0.00%
Co., ltd.
China National Chemical Reagent Co., Ltd. 48.14 0.01%
China National Union Medical Devices Co.,
-0.36 0.00%
ltd.
China National Shanghai Likang
12.67 0.00%
Pharmaceutical Co., Ltd
China National Shanghai Medical Divices
2.16 0.00%
Co., Ltd
China National Weiqida Pharmaceutical Co.,
72.38 0.01% 672 0.09%
Ltd.
China National Sout-west Medicine Co., Ltd. 4,196.39 0.48% 0 0.00%
China National Xinjiang Uptodate & Special
3.27 0.00%
Karamay Pharmaceutical Co., Ltd.
China National Xinjiang New & Special
1,241.23 0.14%
Western Medicine Co., Ltd.
57
China National Medicines Corporation Ltd. 439.78 0.05%
China National Medicines Corporation Ltd. 90.35 0.01% 10,912.7 1.42%
China National Medicines Corporation Ltd. 511.05 0.06% 74.62 0.01%
Sinopharm Group (Tianjin) Oriental
2,431.56 0.28%
Bookcom Medicine Co., Ltd.
Sinopharm Group Anhui Co., Ltd. 186.2 0.02%
Sinopharm Group Anqing Co., Ltd. 11.77 0.00%
Sinopharm Group Beijing Huahong Co., Ltd. 2,363.66 0.27%
Sinopharm Group Beijing Co., Ltd. 4,260.17 0.49% 244.05 0.03%
Sinopharm Group Changzhou Medicine
22.26 0.00%
Logistics Center Co., Ltd.
Sinopharm Group Changzhou Co., Ltd. 7.3 0.00%
Sinopharm Group Distribution Center Co.,
1,351.38 0.15% 42,918.64 5.57%
Ltd.
Sinopharm Group Fujian Co., Ltd. 622.8 0.07% 354.48 0.05%
Sinopharm Group Fuzhou Co., Ltd. 561.17 0.06%
Sinopharm Group Gansu Co., Ltd. 900.12 0.10%
Sinopharm Group Co., Ltd. 1,245.75 0.14% 18,916.3 2.45%
Sinopharm Group Guizhou Co., Ltd. 128.81 0.01% 578.15 0.07%
China National Medicine Corporation Ltd. 121.68 0.01%
Sinopharm Group Hainan Hongyi Co., Ltd 1,045.83 0.12%
Sinopharm Group Hainan Co., Ltd. 2,150.16 0.25% 29.44 0.00%
Sinopharm Group Hebei Medicine Co., Ltd. 1,420.59 0.16%
58
Sinopharm Group Henan Co., Ltd. 378.72 0.04%
Sinopharm Group Heilongjiang Co., Ltd. 263.64 0.03%
Sinopharm Group Hubei Co., Ltd. 4,221.1 0.48%
Sinopharm Group Hunan Deyuan Medicines
83.51 0.01%
Co., Ltd.
Sinopharm Group Hunan Co., Ltd. 5,524.88 0.63% 6.77 0.00%
Sinopharm Group Jilin Co., Ltd. 254.26 0.03%
Sinopharm Group Jinan Co., Ltd. 17.15 0.00%
Sinopharm Group Jiangsu Co., Ltd. 589.2 0.07%
Taizhou Branch of Sinopharm Group Jiangsu
0.14 0.00%
Co., Ltd.
Chines-Wester Medicine Branch of
141.25 0.02%
Sinopharm Group Jiangsu Co., Ltd.
Sinopharm Group Jiangxi Co., Ltd. 31.64 0.00%
Sinopharm Group Jinzhou Co., Ltd. 545.92 0.06%
Sinopharm Group Jinzhou Co., Ltd. 0.83 0.00%
Sinopharm Group Lishui Co., Ltd. 3.78 0.00%
Sinopharm Group Longyan Co., Ltd. 135.66 0.02%
Sinopharm Group Merro (Dalian) Co., Ltd. 86.86 0.01%
Sinopharm Group Inner Mongolia Co., Ltd. 207.85 0.02%
Sinopharm Group NanjingCo., Ltd. 78.81 0.01%
Sinopharm Group Nantong Co., Ltd. 842.78 0.10%
Sinopharm Group Ningde Co., Ltd. 155.43 0.02%
59
Sinopharm Group Ningxia Co., Ltd. 1,526.55 0.17%
Sinopharm Group Putian Co., Ltd. 34.5 0.00% 79.81 0.01%
Sinopharm Group Qinghai Co., Ltd. 0.98 0.00%
Sinopharm Group Qujin Co., Ltd. 1.91 0.00%
Sinopharm Group Sanming Co., Ltd. 4.46 0.00%
Sinopharm Group Shandong Co., Ltd 1,159.86 0.13%
Sinopharm Group Shanxi Co., Ltd. 297.52 0.03%
Sinopharm Group Shanxi Co., Ltd 1,118.79 0.13%
Sinopharm Group Shenyang Co., Ltd. 1,824.09 0.21%
Dalian Branch of Sinopharm Group 0.00%
15.47
Shenyang Co., Ltd.
Sinopharm Group Siping Co., Ltd. 0.14 0.00%
Sinopharm Group Suzhou Co., Ltd. 118.11 0.01% 1.28 0.00%
Sinopharm Group Taizhou Co., Ltd. 116.38 0.01%
Sinopharm Group Tianjin Northern
104.6 0.01%
Medicines Co., Ltd.
Sinopharm Group Tianjin Co., Ltd 1,305.3 0.15%
Sinopharm Group Wenzhou Co., Ltd. 711.26 0.08%
Sinopharm Group Wuxi Co., Ltd. 92.42 0.01%
Sinopharm Group Wuhu Co., Ltd. 27.29 0.00%
Sinopharm Group Xinjiang Hami 0.00%
5.82
Pharmaceutical Co., ltd.
Sinopharm Group Xinjiang Uptodate & 5.79 0.00%
60
Special Ginseng Pharmaceutical Co., Ltd.
Sinopharm Group Xinjiang Uptodate & 0.00%
22.33
Special Keshi Pharmaceutical Co., Ltd.
Sinopharm Group Xinjiang New & Special
1,420.46 0.16%
Western Medicine Co., Ltd.
Sinopharm Group Xinjiang Yili Tongde 0.00%
1.71
Pharmaceutical Co., Ltd.
Sinopharm Group Xinyu Co., Ltd. 0.00%
Sinopharm Group Xuzhou Co., Ltd. 179.22 0.02%
Sinopharm Group Yantai Co., Ltd. 35.1 0.00%
Sinopharm Group Yancheng Co., Ltd. 92.51 0.01%
Sinopharm Group Yunnan Co., Ltd 1,184.37 0.14% 12.53 0.00%
Sinopharm Group Zhangzhou Co., Ltd. 78.26 0.01% 0.35 0.00%
Sinopharm Group Zhejiang Co., Ltd. 1,434.26 0.16%
Sinopharm Group Chongqing Co., Ltd. 672.75 0.08%
Sinopharm Le-Ren-Tang Medicine Co., Ltd. 1,240.94 0.14%
Reed Sinopharm Exhibitions Co., LTD 1.92 3.52%
Sinopharm Xinjiang Korla Pharmaceutical
0.3 0.00%
Co., ltd.
A-Think Pharmaceutical Co., Ltd. 12.23 0.00%
Handan Moluo Pharmaceutical Co., ltd. 2.56 0.00%
Heilongjiang Sinopharm Crude Medicine
9.44 0.00%
Co., Ltd.
61
Huarui Pharmaceutical Co., ltd. 3,939.17 0.51%
Jiangsu Wanban Medicines Marketing Co.,
725.77 0.09%
ltd.
Lanzhou Bio-Tech Development Co., Ltd. 26.51 0.00%
Shanghai Zhaohui Pharmaceutical Co., Ltd. 157.18 0.02% -0.11 0.00%
Shanghai Modern Hasen (Shangqiu) 0.00%
8.04
Pharmaceutical Co., Ltd.
Shanghai Modern Pharmaceutical Ltd. 29.97 0.00%
Shenzhen Accord Pharmacy Chain Co., ltd 1.19 0.00%
Shenzhen Main Luck Pharmaceuticals Inc. 13.56 0.00%
Shenzhen Main Luck Pharmaceuticals Inc. 1,951.11 0.25%
Shenzhen Wanwei Medicines Trading Co.,
407.92 0.05%
Ltd.
Shenyang Hongqi Pharmacy Co., ltd 2.7 0.00%
Sichuan Hexin Medicines Co., ltd. 137.51 0.02%
Sichuan Jiangyou ZBFZ Technology 0.00%
2.08
Development Co., ltd.
Yichang Humanwell Pharmaceutical Co., 0.00%
3.31
Ltd.
Yunnan Crude Medicine Co., Ltd. 26.37 0.00%
China Otsuka Pharmaceutical Co., ltd. 9.73 0.00%
Zhongkeqi Imp & Exp Shenzhen Co., ltd. 4.44 0.00%
Chongqing Haisiman PharmaceuticalLTD 508.17 0.07%
62
Chongqing Yaoyou Pharmaceutical Co., Ltd. 4,012.31 0.46% 494 0.06%
Total 71,423.67 8.09% 84,495.17 14.44%
Including: related transaction 666.435 million yuan generated from the commodity sales or labor service offering to controlling shareholder and its subsidiary from the Company
2. Related transaction incurred by purchase or sales of assets
√Applicable □Non-applicable
Major reasons
Evaluation
Book value of for difference
price of net Influence on
net assets for Purchasing between Earnings from
asset for Settlement operation
Type of Content of purchased price (10 transfer price assets transfer
Pricing
Related party Relationship related related purchased way for results and
principle company (10 thousand and book (10 thousand
transaction transaction
company (10 transactions fiancnial
thousand yuan) value or yuan)
thousand status
yuan) evaluation
yuan)
price
99.7% Net profit
equityof attributable to
Sinopharm shareholder of
Group listed
Guangdong
Wuzhou Co., Evaluation by company for
Dong Fang
Same Ltd. held book value of Sinopharm
Uptodate & Equity Cash
controlling byGuangdon balance sheet -20.54 451.33 450 N/A Wuzhou in 0
Special transactions settlement
shareholder g Dong Fang dated 30 June Jan. to June
Medicines
Uptodate & 2011 2012
Co.,
Special amounting to
Medicines 9,587.19
Co was yuan; owners’
purchased equity
63
attributable to
shareholder of
listed
company in
June 2012
amounting
to-115,007.3
yuan
Notes to the related transaction resulted from asset purchase and sales
N/A
3. Significant related transaction from jointly investment outside
□Applicable √Non-applicable
4. Current related liabilities and debts
√Applicable □Non-applicable
Fund offer to listed company from related party( 10 thousand
Fund offer to related party ( 10 thousand yuan)
yuan)
Related party Relationship
Balance at Amount Paymen Balance at Interest Interest Balance at Amount Paymen Balance at Interest Interest
period-begin occurred t period-end income cost period-begin occurred t period-end income cost
Account receivable:
Same controlling 6,144.8
Sinopharm Group Hunan Co., Ltd. 2,172.86 6,464.11 2,492.09
shareholder 8
Chongqing Yaoyou Pharmaceutical Co., Subsidiary of FOSUN
1,968 4,694.4 5,051.2 1,611.20
Ltd. Medicines
Same controlling 5,442.8
Sinopharm Group Beijing Co., Ltd. 1,686.26 4,984.39 1,227.82
shareholder 3
Sinopharm Group Hubei Co., Ltd. Same controlling 1,487.16 4,937.96 5,393.0 1,032.09
64
shareholder 3
China National Sout-west Medicine Co., Same controlling 4,826.2
1,387.1 4,909.78 1,470.60
Ltd. shareholder 8
Foshan Nanhai New Medicine & Special Same controlling 5,676.6
1,372.41 5,971.79 1,667.57
Medicine Co., Ltd. shareholder 3
2,220.6
Sinopharm Group Co., Ltd. 控股股东 1,334.11 1,457.27 570.72
6
Same controlling
Guangdong Accord Pharmacy Co., Ltd. 1,267.81 4,955.1 5,193.4 1,029.51
shareholder
Same controlling 2,321.2
Sinopharm Group Shenyang Co., Ltd. 1,209.68 2,068.89 957.34
shareholder 3
Same controlling 2,069.9
Guangxi Accord Pharmacy Chain Co.,Ltd. 911.43 1,779.55 621.00
shareholder 8
China National Xinjiang New & Special Same controlling 1,828.4
881.03 1,452.24 504.80
Western Medicine Co., Ltd. shareholder 7
Sinopharm Group Beijing Huahong Co., Same controlling 2,601.5
706.92 2,765.48 870.85
Ltd. shareholder 5
Same controlling 2,218.4
Sinopharm Group Hainan Co., Ltd. 698.13 2,515.64 995.32
shareholder 5
Sinopharm Le-Ren-Tang Medicine Co., Same controlling 1,864.1
684.93 1,451.9 272.69
Ltd. shareholder 4
Same controlling 1,736.2
Sinopharm Group Tianjin Co., Ltd 656.59 1,533.44 453.82
shareholder 1
Sinopharm Group (Tianjin) Oriental Same controlling 2,767.9
614.38 2,844.78 691.22
Bookcom Medicine Co., Ltd. shareholder 4
65
Same controlling
Sinopharm Group Fujian Co., Ltd 592.51 728.51 1,293.4 27.62
shareholder
Same controlling 1,750.2
Sinopharm Group Yunnan Co., Ltd 578.88 1,417.48 246.14
shareholder 2
Same controlling 1,670.0
Sinopharm Group Zhejiang Co., Ltd. 559.1 1,677.74 566.82
shareholder 2
Same controlling 1,210.1
Sinopharm Group Hainan Hongyi Co., Ltd 431.6 1,223.62 445.04
shareholder 8
Same controlling 1,723.5
Sinopharm Group Hebei Medicine Co., Ltd. 362.82 1,652.57 291.81
shareholder 8
Sinopharm Group Xinjiang New & Special Same controlling 1,614.7
355.3 1,661.94 402.47
Western Medicine Co., Ltd. shareholder 7
Guangdong Dong Fang Uptodate & Special Same controlling
315.04 802.96 869.3 248.70
Medicines Co., shareholder
Same controlling 1,730.3
Foshan Nanhai Medicine CO., Ltd. 275.87 1,802.76 348.28
shareholder 5
Same controlling 1,292.6
Sinopharm Group Shandong Co., Ltd 272.86 1,369.98 350.20
shareholder 4
Sinopharm Group Distribution Center Co., Same controlling 1,370.8
266.4 1,579.93 475.48
Ltd. shareholder 5
Same controlling
Sinopharm Group Jinzhou Co., Ltd. 215.72 634.46 763.17 87.01
shareholder
Same controlling
China National Medicines Corporation Ltd. 191.49 511.05 384.26 318.28
shareholder
Sinopharm Group Ningxia Co., Ltd. Same controlling 163.55 1,786.06 1,483.9 465.71
66
shareholder
Same controlling
Sinopharm Group Shanxi Co., Ltd. 147.98 346.8 413.06 81.72
shareholder
Same controlling
Sinopharm Group Wenzhou Co., Ltd. 131.42 828.42 746.36 213.48
shareholder
Same controlling
China National Medicine Corporation Ltd. 124.77 604.9 655.66 74.01
shareholder
Same controlling
Sinopharm Group Jiangsu Co., Ltd. 120.53 689.37 665.92 143.98
shareholder
Same controlling
China National Medicine Corporation Ltd. 89.85 139.09 145.94 83.00
shareholder
Same controlling
Sinopharm Group Shanxi Co., Ltd 84.84 1,272.79 907.08 450.55
shareholder
Sinopharm Group Tianjin Northern Same controlling
77.23 132.33 164.05 45.51
Medicines Co., Ltd. shareholder
Same controlling
Sinopharm Group Henan Co., Ltd. 76.74 443.1 456.93 62.91
shareholder
Same controlling
Sinopharm Group Fuzhou Co., Ltd. 73.17 654.39 664.21 63.35
shareholder
Same controlling
Sinopharm Group Inner Mongolia Co., Ltd. 61.14 243.19 233.22 71.11
shareholder
Same controlling
Sinopharm Group Gansu Co., Ltd. 54.73 1,053.13 959.69 148.17
shareholder
Same controlling
Sinopharm Group Jilin Co., Ltd. 51.15 297.48 263.27 85.36
shareholder
67
Subsidiary of FOSUN
Shanghai Zhaohui Pharmaceutical Co., Ltd. 47.98 183.9 174.1 57.78
Medicines
Same controlling
Sinopharm Group Longyan Co., Ltd. 45.07 158.23 183.03 20.27
shareholder
Same controlling
Sinopharm Group Chongqing Co., Ltd. 44.82 787.12 507.96 323.98
shareholder
Same ultimate
Guangdong South Medicine Foreign Trade
controlling 40.84 142.47 147 36.31
Co., ltd.
shareholder
Same controlling
Sinopharm Group Heilongjiang Co., Ltd. 37.76 308.46 217.04 129.18
shareholder
Same controlling
Sinopharm Group Suzhou Co., Ltd. 37.61 138.19 129.13 46.67
shareholder
Dalian Branch of Sinopharm Group Same controlling
36.9 18.1 45.95 9.05
Shenyang Co., Ltd. shareholder
Same controlling
Sinopharm Group Taizhou Co., Ltd. 28.95 135.21 127.74 36.42
shareholder
Same controlling
Sinopharm Group Guizhou Co., Ltd. 27.81 150.71 151.27 27.25
shareholder
Same controlling
Sinopharm Group Xuzhou Co., Ltd. 27.04 205.84 171.12 61.76
shareholder
Same controlling
Sinopharm Group Wuxi Co., Ltd. 25.12 106.2 109.11 22.21
shareholder
Guangzhou Accord Pharmacy Chain Co., Same controlling
23.03 44.15 52.28 14.90
Ltd. shareholder
68
Same controlling
Sinopharm Group Merro (Dalian) Co., Ltd. 21.96 101.62 84.39 39.19
shareholder
Same controlling
Sinopharm Group Zhangzhou Co., Ltd. 20 91.43 76.57 34.86
shareholder
Same controlling
Sinopharm Group NanjingCo., Ltd. 13.92 45.17 43.29 15.80
shareholder
Same controlling
Sinopharm Group Yancheng Co., Ltd. 9.53 108.1 95.2 22.43
shareholder
Same ultimate
China National Weiqida Pharmaceutical
controlling 8.61 93.29 8.61 93.29
Co., Ltd.
shareholder
Same controlling
Sinopharm Group Ningde Co., Ltd. 4.32 181.67 132.2 53.79
shareholder
Same controlling
Sinopharm Group Anshun Co., Ltd. 3.56 0.00 3.56 0.00
shareholder
Same controlling
Sinopharm Group Changzhou Co., Ltd. 3.4 8.54 5.47 6.47
shareholder
Sinopharm Group Changzhou Medicine Same controlling
2.88 25.35 21.07 7.16
Logistics Center Co., Ltd. shareholder
Same controlling
Sinopharm Group Lishui Co., Ltd. 1.49 4.29 3.8 1.98
shareholder
Same controlling
Sinopharm Group Jiangxi Co., Ltd. 0.95 36.83 32.37 5.41
shareholder
Same controlling
Sinopharm Group Sanming Co., Ltd. 0.26 5.22 5.48 0.00
shareholder
69
Same ultimate
Zhongkeqi Imp & Exp Shenzhen Co., ltd. controlling 0.24 5.2 5.44 0.00
shareholder
Same controlling
Sinopharm Group Qujin Co., Ltd. 0.03 2.23 2.26 0.00
shareholder
Same controlling
Sinopharm Group Nantong Co., Ltd. 0.00 986.05 729.85 256.20
shareholder
Same controlling
Sinopharm Group Anhui Co., Ltd. 0.00 217.86 197.06 20.80
shareholder
Chinese-Western Medicine Branch of Same controlling
0.00 165.26 58.5 106.76
Sinopharm Group Jiangsu Co., Ltd. shareholder
Subsidiary of FOSUN
Sichuan Hexin Medicines Co., ltd. 0.00 160.89 133.91 26.98
Medicines
Sinopharm Group Hunan Deyuan Same controlling
0.00 97.37 88.39 8.98
Medicines Co., Ltd. shareholder
Same controlling
Sinopharm Group Yantai Co., Ltd. 0.00 40.6 25.52 15.08
shareholder
Same controlling
Sinopharm Group Putian Co., Ltd. 0.00 40.36 30.38 9.98
shareholder
Same controlling
Sinopharm Group Wuhu Co., Ltd. 0.00 37.21 25.96 11.25
shareholder
Sinopharm Group Xinjiang Uptodate & Same controlling
0.00 26.13 22.12 4.01
Special Keshi Pharmaceutical Co., Ltd. shareholder
Same controlling
Sinopharm Group Jinan Co., Ltd. 0.00 20.07 20.07 0.00
shareholder
70
China National Shanghai Likang Same controlling
0.00 14.82 14.82
Pharmaceutical Co., Ltd shareholder
Same controlling
Sinopharm Group Anqing Co., Ltd. 0.00 13.77 9.47 4.30
shareholder
Sinopharm Group Xinjiang Hami Same controlling
0.00 6.81 0.8 6.01
Pharmaceutical Co., ltd. shareholder
China National Xinjiang Uptodate & Same controlling
0.00 3.83 3.83 0.00
Special Karamay Pharmaceutical Co., Ltd. shareholder
Sinopharm Group Xinjiang Uptodate & Same controlling
0.00 3.51 3.51 0.00
Special Ginseng Pharmaceutical Co., Ltd. shareholder
Same ultimate
Heilongjiang Sinopharm Crude Medicine
controlling 0.00 2.27 2.27 0.00
Co., Ltd.
shareholder
Sinopharm Group Xinjiang Yili Tongde Same controlling
0.00 2 2.00
Pharmaceutical Co., Ltd. shareholder
Same controlling
Sinopharm Group Qinghai Co., Ltd. 0.00 1.15 0.86 0.29
shareholder
Same controlling
Sinopharm Group Jinzhou Co., Ltd. 0.00 0.83 0.83 0.00
shareholder
Sinopharm Xinjiang Korla Pharmaceutical Same controlling
0.00 0.35 0.35 0.00
Co., ltd. shareholder
Taizhou Branch of Sinopharm Group Same controlling
0.00 0.17 0.17 0.00
Jiangsu Co., Ltd. shareholder
Same controlling
Sinopharm Group Siping Co., Ltd. 0.00 0.17 0.17 0.00
shareholder
71
Control by key
Jiangmen Renren Medical Equipment Co.,
supervisor of 0.00 19.76 21.95 -2.19
Ltd.
subsidiary
Other account receivable: 0.00
Same controlling
China National Medicines Corporation Ltd. 121.5 0.00 0.00 121.50
shareholder
Guangzhou Accord Pharmacy Chain Co., Same controlling
0.00 25.75 25.75 0.00
Ltd. shareholder
Shenzhen Main Luck Pharmaceuticals Inc. Affiliated company 0.00 13.56 13.56 0.00
Same ultimate
China National Shanghai Medical Divices
controlling 0.00 9.67 9.67 0.00
Co., Ltd
shareholder
Shenzhen Wanwei Medicines Trading Co., Subsidiary of
0.00 1.99 1.99 0.00
Ltd. Affiliated company
The company owned
by minority
Shenzhen Jiufeng Investment Co., ltd 0.00 18.17 18.17 0.00
shareholder of
subsidiary
Control by key
Jiangmen Renren Medical Equipment Co.,
supervisor of 0.00 968.46 968.46 0.00
Ltd.
subsidiary
Note receivable: 0.00
Chongqing Yaoyou Pharmaceutical Co., Subsidiary of FOSUN
2,164.8 2,952 3,645.6 1,471.20
Ltd. Medicines
Sinopharm Group Hunan Co., Ltd. Same controlling 670.2 6,145.35 6,597.2 218.34
72
shareholder 1
Same controlling
Sinopharm Group Tianjin Co., Ltd 474.74 423.65 739.48 158.91
shareholder
Same controlling 4,631.7
Sinopharm Group Hubei Co., Ltd. 256.62 4,573.69 198.53
shareholder 8
Same controlling 1,542.9
Sinopharm Group Hainan Co., Ltd. 203.57 1,608.6 269.20
shareholder 7
Same controlling 2,442.2
Guangdong Accord Pharmacy Co., Ltd. 185.41 2,678.06 421.25
shareholder 2
China National Sout-west Medicine Co., Same controlling
144.1 964.61 875.04 233.67
Ltd. shareholder
Same controlling
Guangxi Accord Pharmacy Chain Co.,Ltd. 47.46 370.02 355.03 62.45
shareholder
Same controlling
Sinopharm Group Chongqing Co., Ltd. 44.33 505.7 515.35 34.68
shareholder
Same controlling
Sinopharm Group Jiangsu Co., Ltd. 30 30 0.00
shareholder
Same controlling
Sinopharm Group Xuzhou Co., Ltd. 25.44 265.13 220.54 70.03
shareholder
Same controlling
Sinopharm Group Fuzhou Co., Ltd. 10.86 311.49 311.73 10.62
shareholder
Same controlling
Sinopharm Group Yancheng Co., Ltd. 10.09 6.67 16.76 0.00
shareholder
Sinopharm Group Guoda Pharmacy Same controlling
6.83 56.55 63.38 0.00
Shenyang Chain Co., Ltd. shareholder
73
Same controlling
Sinopharm Group Shenyang Co., Ltd. 4.02 207.4 155.42 56.00
shareholder
Same controlling
Sinopharm Group Yantai Co., Ltd. 2.28 21.4 23.68 0.00
shareholder
Subsidiary of FOSUN
Sichuan Hexin Medicines Co., ltd. 0.00 1,180.8 1,180.8 0.00
Medicines
Same controlling
Sinopharm Group Gansu Co., Ltd. 0.00 861.98 807.17 54.81
shareholder
Same controlling
Sinopharm Group Hebei Medicine Co., Ltd. 0.00 841.01 756.96 84.05
shareholder
Same controlling
Sinopharm Group Henan Co., Ltd. 0.00 351.3 351.3 0.00
shareholder
Same controlling
Sinopharm Group Shanxi Co., Ltd 0.00 307.02 150 157.02
shareholder
Same controlling
Sinopharm Group Anhui Co., Ltd. 0.00 197.06 197.06 0.00
shareholder
Same controlling
Sinopharm Group Fujian Co., Ltd. 0.00 143 143 0.00
shareholder
Same controlling
Sinopharm Group Longyan Co., Ltd. 0.00 95.58 95.58 0.00
shareholder
Same controlling
Sinopharm Guangzhou Co., Ltd. 0.00 81.7 81.7 0.00
shareholder
Sinopharm Group Hunan Deyuan Same controlling
0.00 79.63 78.63 1.00
Medicines Co., Ltd. shareholder
Sinopharm Group Zhangzhou Co., Ltd. Same controlling 0.00 74.35 20 54.35
74
shareholder
Same controlling
Sinopharm Group Taizhou Co., Ltd. 0.00 69.1 69.1 0.00
shareholder
China National Xinjiang New & Special Same controlling
0.00 65 65 0.00
Western Medicine Co., Ltd. shareholder
Chinese –Wester Medicine Branch of Same controlling
0.00 58.5 53.5 5.00
Sinopharm Group Jiangsu Co., Ltd. shareholder
Same controlling
Sinopharm Group NanjingCo., Ltd. 0.00 46.56 46.56 0.00
shareholder
Sinopharm Group Beijing Huahong Co., Same controlling
0.00 35.13 35.13
Ltd. shareholder
Same ultimate
China National Pharmaceutical Foreign
controlling 0.00 23.6 23.6 0.00
Trade Corp.
shareholder
Same controlling
China National Medicine Corporation Ltd. 0.00 20.9 20.90
shareholder
Same controlling
Sinopharm Group Jinan Co., Ltd. 0.00 20.22 20.22 0.00
shareholder
Same controlling
Sinopharm Group Wuhu Co., Ltd. 0.00 12.83 12.83
shareholder
Same controlling
Sinopharm Group Tongliao Co., Ltd. 0.00 10 10 0.00
shareholder
Same controlling
Sinopharm Group Jiangxi Co., Ltd. 0.00 2.02 2.02 0.00
shareholder
Sinopharm Group Anqing Co., Ltd. Same controlling 0.00 1.99 1.99 0.00
75
shareholder
Same controlling
Sinopharm Group Heilongjiang Co., Ltd. 0.00 1.12 1.12 0.00
shareholder
Account paid in advance: 0.00
Affiliated company of
Qinghai Pharmaceutical 305.36 410.75 397.89 318.22
Sinopharm Group
China National Pharmaceutical Group Ultimate controlling
5 0.00 0.00 5.00
Corp. shareholder
Subsidiary of FOSUN
Handan Moluo Pharmaceutical Co., ltd. 1.11 -1.11 0.00 0.00
Medicines
Same controlling
Sinopharm Group Suzhou Co., Ltd. 0.95 -0.95 0.00 0.00
shareholder
Same controlling
Shenzhen Accord Pharmacy Chain Co., ltd 0.58 0.72 1.3 0.00
shareholder
Same controlling
Sinopharm Group Zhangzhou Co., Ltd. 0.35 -0.35 0.00 0.00
shareholder
Yichang Humanwell Pharmaceutical Co., Affiliated company of
0.21 2.87 2.88 0.20
Ltd. Sinopharm Group
Affiliated company of
Huarui Pharmaceutical Co., ltd. 0.01 23.33 23.34 0.00
the Group
Chengde Fujingkang Pharmaceutical Group Subsidiary of FOSUN
0.00 59.2 59.2 0.00
Co., Ltd. Medicines
Same ultimate
Lanzhou Bio-Tech Development Co., Ltd. controlling 0.00 16.96 16.96 0.00
shareholder
76
Same ultimate
Shanghai Modern Hasen (Shangqiu)
controlling 0.00 12.01 11.38 0.63
Pharmaceutical Co., Ltd.
shareholder
Sinopharm Group Distribution Center Co., Same controlling
0.00 9.43 9.43 0.00
Ltd. shareholder
Subsidiary of FOSUN
Guilin Pharmaceutical Co., Ltd. 0.00 6.4 6.4 0.00
Medicines
China National Chemical Reagent Suchou Same controlling
0.00 5.75 0.00 5.75
Co., ltd. shareholder
Same controlling
Guangdong Accord Pharmacy Co., Ltd. 0.00 3.39 2 1.39
shareholder
Same ultimate
Reed Sinopharm Exhibitions Co., LTD controlling 0.00 1.92 1.92 0.00
shareholder
Controlling
Sinopharm Group Co., Ltd. 0.00 0.05 0.05 0.00
shareholder
Same ultimate
China National Union Medical Devices
controlling 0.00 0.03 0.00 0.03
Co., ltd.
shareholder
Account payable:
Sinopharm Group Distribution Center Co., Same controlling 103,665. 103,147
12,376.63 12,894.44
Ltd. shareholder 16 .35
Controlling 46,461.6 49,727.
Sinopharm Group Co., Ltd. 7,462.69 4,197.38
shareholder 9 00
China National Medicines Corporation Ltd. Same controlling 2,301.39 25,007.4 24,546. 2,762.07
77
shareholder 1 73
4,615.1
Shenzhen Main Luck Pharmaceuticals Inc. Affiliated company 594.08 4,546.51 525.43
6
Affiliated company of 8,101.7
Huarui Pharmaceutical Co., ltd. 507.24 8,852.09 1,257.56
the Group 7
Same ultimate
China National Weiqida Pharmaceutical
controlling 278.31 786.25 798.34 266.22
Co., Ltd.
shareholder
Jiangsu Wanban Medicines Marketing Co., Subsidiary of FOSUN 1,640.0
262.77 1,651.96 274.65
ltd. Medicines 8
Chongqing Yaoyou Pharmaceutical Co., Subsidiary of FOSUN
246.21 1,073.74 1,110.52 209.43
Ltd. Medicines
Shenzhen Wanwei Medicines Trading Co., Subsidiary of 1,010.2
209.06 978.46 177.29
Ltd. affiliated company 3
Subsidiary of FOSUN
Chongqing Haisiman PharmaceuticalLTD 188.45 1,084.50 999.25 273.70
Medicines
Same controlling 1,364.4
Sinopharm Group Guizhou Co., Ltd. 181.38 1,339.80 156.77
shareholder 1
Guangdong Dong Fang Uptodate & Special Same controlling
173.40 565.43 716.57 22.26
Medicines Co., shareholder
Same ultimate
Guangdong South Medicine Foreign Trade 1,240.5
controlling 153.63 1,454.51 367.58
Co., ltd. 6
shareholder
Same controlling
Sinopharm Group Beijing Co., Ltd. 53.63 543.17 585.65 11.15
shareholder
78
Same controlling
Guangdong Accord Pharmacy Co., Ltd. 43.35 77.22 120.57 0.00
shareholder
Same ultimate
Shanghai Modern Pharmaceutical Ltd. controlling 11.58 62.99 58.20 16.37
shareholder
Same ultimate
China National Corp. of Traditional &
controlling 20.10 0.00 20.10 0.00
Herbal Medicine
shareholder
Foshan Nanhai New Medicine & Special Same controlling
17.81 202.72 210.65 9.88
Medicine Co., Ltd. shareholder
Same controlling
China National Medicines Corporation Ltd. 12.88 74.62 69.12 18.38
shareholder
Same controlling
Foshan Nanhai Medicine CO., Ltd. 8.63 45.67 51.21 3.09
shareholder
Subsidiary of FOSUN
Guilin Pharmaceutical Co., Ltd. 7.75 28.52 28.01 8.26
Medicines
Same controlling
Sinopharm Group Fujian Co., Ltd. 5.24 831.74 621.71 215.27
shareholder
Subsidiary of FOSUN
Handan Moluo Pharmaceutical Co., ltd. 4.25 -1.42 1.25 1.58
Medicines
Same ultimate
China National Shanghai Medical Divices
controlling 4.06 7.49 9.89 1.66
Co., Ltd
shareholder
Subsidiary of FOSUN
Shenyang Hongqi Pharmacy Co., ltd 2.98 6.03 7.14 1.87
Medicines
79
Yichang Humanwell Pharmaceutical Co., Affiliated company of
2.62 5.98 6.16 2.44
Ltd. Sinopharm Group
Subsidiary of FOSUN
Shanghai Zhaohui Pharmaceutical Co., Ltd. 2.41 1.07 1.62 1.86
Medicines
China National Chemical Reagent Suchou Same controlling
2.32 22.64 20.50 4.46
Co., ltd. shareholder
Jiangsu Wanbang Bio-Chemical Subsidiary of FOSUN
1.49 0.00 0.00 1.49
Pharmaceutical Co., ltd. Medicines
Shanghai Serum Biological Technology Affiliated company of
1.07 0.00 0.00 1.07
Co., Ltd. the Group
Same ultimate
China National Beijing Medical Devices
controlling 0.88 0.00 0.00 0.88
Co., ltd.
shareholder
Affiliated company of
China Otsuka Pharmaceutical Co., ltd. 0.75 19.37 9.21 10.91
the Group
China National Medicines Guorui Same controlling
0.49 2.90 2.60 0.79
Pharmaceutical Co., Ltd. shareholder
Same ultimate
Shanghai Institution of Pharmaceutical
controlling 0.37 0.00 0.23 0.14
Industry
shareholder
Same ultimate
China National Medical Equipment and
controlling 0.35 0.00 0.00 0.35
Supplies Imp& Exp Shenzhen Corp.
shareholder
Sichuan Jiangyou ZBFZ Technology Same ultimate
0.21 2.05 2.22 0.04
Development Co., ltd. controlling
80
shareholder
Shanghai Fosun Long March Medical Subsidiary of FOSUN
0.18 0.00 0.00 0.18
Science Co., Ltd. Medicines
Same ultimate
China National Union Medical Devices
controlling 0.16 -0.53 -0.37 0.00
Co., ltd.
shareholder
Same ultimate
China National Pharmaceutical Foreign
controlling 0.09 0.00 0.00 0.09
Trade Corp.
shareholder
National Medicines Prospect Dentech 国控 Affiliated
0.01 0.00 0.00 0.01
(Beijing) Co., Ltd. company
Same controlling
Sinopharm Group Putian Co., Ltd. 0.00 186.75 186.75 0.00
shareholder
Same controlling
China National Chemical Reagent Co., Ltd. 0.00 68.70 46.55 22.15
shareholder
Same controlling
Sinopharm Group Hainan Co., Ltd. 0.00 66.92 44.92 22.00
shareholder
Same ultimate
Yunnan Crude Medicine Co., Ltd. controlling 0.00 29.80 29.80 0.00
shareholder
Same ultimate
Lanzhou Bio-Tech Development Co., Ltd. controlling 0.00 19.04 19.04 0.00
shareholder
Same controlling
A-Think Pharmaceutical Co., Ltd. 0.00 33.25 18.94 14.31
shareholder
81
Same ultimate
Shanghai Modern Hasen (Shangqiu)
controlling 0.00 14.04 14.04 0.00
Pharmaceutical Co., Ltd.
shareholder
Same controlling
Sinopharm Group Yunnan Co., Ltd 0.00 27.20 12.53 14.67
shareholder
Same controlling
Sinopharm Group Hunan Co., Ltd. 0.00 14.69 6.77 7.92
shareholder
Xiamen Xingsha Huaideju Medicine Co., Affiliated company of
0.00 0.11 0.00 0.11
Ltd. Sinopharm Group
Same controlling
Shenzhen Accord Pharmacy Chain Co., ltd 0.00 0.08 0.00 0.08
shareholder
Subsidiary of FOSUN
Shanghai Forsun Pharmaceutical Co., Ltd. 0.00 0.02 0.00 0.02
Medicines
Same controlling
Sinopharm Group Suzhou Co., Ltd. 0.00 -3.97 -3.97 0.00
shareholder
Note payable: 0.00 0.00 0.00 0.00
Controlling 10,779.0 18,017.
Sinopharm Group Co., Ltd. 10,615.09 3,376.68
shareholder 1 42
Sinopharm Group Distribution Center Co., Same controlling 19,099.6 2,772.5
2,772.58 19,099.65
Ltd. shareholder 5 8
Same controlling 1,635.1
China National Medicines Corporation Ltd. 1,635.15 0.00 0.00
shareholder 5
Jiangsu Wanban Medicines Marketing Co., Subsidiary of FOSUN
307.20 236.07 408.05 135.22
ltd. Medicines
Chongqing Haisiman PharmaceuticalLTD Subsidiary of FOSUN 171.34 366.78 353.58 184.54
82
Medicines
Same ultimate
China National Weiqida Pharmaceutical
controlling 150.00 678.60 150.00 678.60
Co., Ltd.
shareholder
Shenzhen Main Luck Pharmaceuticals Inc. Affiliated company 119.79 679.61 712.01 87.39
Chongqing Yaoyou Pharmaceutical Co., Subsidiary of FOSUN
89.55 170.12 212.59 47.08
Ltd. Medicines
China National Chemical Reagent Suchou Same controlling
33.26 20.50 33.26 20.50
Co., ltd. shareholder
Subsidiary of FOSUN
Guilin Pharmaceutical Co., Ltd. 11.22 0.00 11.22 0.00
Medicines
Same controlling
Sinopharm Group Fujian Co., Ltd. 6.20 0.00 6.20 0.00
shareholder
Same ultimate
Shanghai Modern Pharmaceutical Ltd. controlling 3.37 1.90 5.27 0.00
shareholder
Shenzhen Wanwei Medicines Trading Co., Subsidiary of
0.00 34.18 34.18 0.00
Ltd. affiliated company
Account received in advance 0.00 0.00 0.00 0.00
Same controlling
Sinopharm Group NanjingCo., Ltd. 0.78 0.00 0.00 0.78
shareholder
Same controlling
Sinopharm Group Hunan Co., Ltd. 0.04 0.04 0.09 -0.01
shareholder
Foshan Nanhai New Medicine & Special Same controlling 1,000.0
0.00 1,000.00 0.00
Medicine Co., Ltd. shareholder 0
83
Same ultimate
China National Weiqida Pharmaceutical
controlling 0.00 161.95 161.95 0.00
Co., Ltd.
shareholder
Same controlling
Guangxi Accord Pharmacy Chain Co.,Ltd. 0.00 13.98 13.98 0.00
shareholder
Sinopharm Group Xinjiang Uptodate & Same controlling
0.00 1.35 1.35 0.00
Special Ginseng Pharmaceutical Co., Ltd. shareholder
Same controlling
Sinopharm Group Hebei Medicine Co., Ltd. 0.00 27.89 0.00 27.89
shareholder
Same controlling
Sinopharm Group Taizhou Co., Ltd. 0.00 1.65 0.00 1.65
shareholder
Same controlling
Sinopharm Group Jinan Co., Ltd. 0.00 0.15 0.00 0.15
shareholder
Other payables: 0.00 0.00 0.00 0.00
Guangdong Dong Fang Uptodate & Special Same controlling
490.00 135.00 490.00 135.00
Medicines Co., shareholder
Controlling
Sinopharm Group Co., Ltd. 373.07 20.00 0.00 393.07
shareholder
China Naitonal Pharmaceutical Shanghai Same controlling
166.04 0.00 0.00 166.04
Co., shareholder
Same ultimate
China National Corp. of Traditional &
controlling 130.00 20.00 0.00 150.00
Herbal Medicine
shareholder
China National Corp. of Wuhan Medicine Same ultimate
60.00 0.00 44.00 16.00
Institution controlling
84
shareholder
China National Chemical Reagent Suchou Same controlling
16.00 0.30 16.30 0.00
Co., ltd. shareholder
Same ultimate
Zhongkeqi Imp & Exp Shenzhen Co., ltd. controlling 0.00 4.45 4.45 0.00
shareholder
Same controlling
Guangxi Accord Pharmacy Chain Co.,Ltd. 0.00 6.68 6.68 0.00
shareholder
Same controlling
China National Medicines Corporation Ltd. 0.00 354.00 354.00
shareholder
Sinopharm Group Distribution Center Co., Same controlling
20.00 0.00 20.00 0.00
Ltd. shareholder
Key supervisor of
Peng Jianxiong 0.00 9.35 0.00 9.35
subsidiary
Same ultimate
China National Shanghai Medical Divices
controlling 0.00 3.00 0.00 3.00
Co., Ltd
shareholder
Short-term loans: 0.00 0.00 0.00 0.00
Controlling 23,263.0 36,737.
Sinopharm Group Co., Ltd. 33,737.00 20,263.00
shareholder 0 00
Interest payable: 0.00 0.00 0.00 0.00
Controlling
Sinopharm Group Co., Ltd. 69.78 887.04 919.36 37.46
shareholder
Other non-current liability: 0.00 0.00 0.00 0.00
85
Controlling
Sinopharm Group Co., Ltd. 3,506.18 0.00 0.00 3,506.18
shareholder
110,548.2 112,592 257,832. 264,985
Subtotal 29,943.39 27,899.47 79,624.54 72,471.48 0 0
5 .17 62 .68
110,548.2 112,592 257,832. 264,985
Total 29,943.39 27,899.47 79,624.54 72,471.48 0 0
5 .17 62 .68
Funds offered to controlling shareholders and its subsidiary by the
99,545.46
Company in report period (RMB00’000)
Including: Non-operating amount (RMB00’000) 0
Balance of funds offered to controlling shareholders and its
24,280.86
subsidiary by the Company (RMB00’000)
Including:balance of Non-operating amount (RMB00’000) 0
Reasons of related liabilities and debts The creditor’s right and debt resulted from medicine purchase, entrusted loan, and shares purchase and medicine reserve fund.
Liquidation of related liabilities and debts Implemented by contracts
The Company has commitments with the related party in aspect of property leasing and guarantee, of which property rent-in
Commitments concerned with related liabilities and debts commitments of 207000 yuan, property rent-out commitments of 2.2198 million yuan while gurantee received from related party
(limit not used) 116.6244 million yuan
Influence on business performance and financial status of the The above creditor’s right and debt among the related parties belonged to normal operational business transaction, which has no
Company from related liabilities and debts negative influence on the operation results and financial state of the company
Including: in reporting period, 995.4546 million yuan were offered to controlling shareholders and its subsidiary by listed company, balance amounting to242.8086 million yuan
Fund occupation and progress of paying off
□Applicable √Non-applicable
Till end of reporting period, accountability plan proposed by the Board for completed no non-operational fund occupation from listed company
□Applicable √Non-applicable
86
5. Other significant related transaction
Nil
(X) Significant contracts and its implementation
1. Profits earned from trusteeship, contract and lease reached over 10% (10% included) of
total profit in this period
(1) Trusteeship
□Applicable √Non-applicable
(2) Contract
□Applicable √Non-applicable
(3) Lease
□Applicable √Non-applicable
2. Guarantees
√Applicable □Non-applicable
Unit: RMB0’000
Particulars about the external guarantee of the Company (Barring the guarantee for the controlling subsidiaries)
Guarante
Related Actual date of
Complete e for
Announcem happening
Name of the Guarantee Actual Guarantee Guarantee implemen related
ent (Date of
Company guaranteed limit guarantee limit type term tation or party
disclosure signing
not (Yes or
date agreement)
no)
China National
2011.9.29-20
Accord Medicines 2011-03-22 30,000 2011-09-29 12,056.41 Guarantee No Yes
12.9.28
Corporation Ltd.
China National
2012.3.22-20
Accord Medicines 2011-08-18 7,000 2012-03-22 5,955.37 Guarantee No Yes
13.3.22
Corporation Ltd.
China National
2012.3.8-201
Accord Medicines 2011-03-22 10,000 2012-03-08 8,134.63 Guarantee No Yes
3.3.8
Corporation Ltd.
China National
2012.6.8-201
Accord Medicines 2012-03-16 5,000 2012-06-08 Guarantee No Yes
3.3.8
Corporation Ltd.
China National
2011.6.2-201
Accord Medicines 2011-03-22 10,000 2011-06-02 3,059.19 Guarantee No Yes
2.6.1
Corporation Ltd.
China National
2011.12.6-20
Accord Medicines 2011-10-22 6,000 2011-12-06 893.37 Guarantee No Yes
12.12.6
Corporation Ltd.
China National
2012.5.18-20
Accord Medicines 2012-03-16 10,000 2012-05-18 1,132.89 Guarantee No Yes
13.5.13
Corporation Ltd.
Shenzhen Zhijun 2011-03-22 3,150 2011-10-13 1,030.3 Guarantee 2011.10.13-2 No Yes
87
Pharmaceutical 012.10.13
Trading Co., Ltd.
Total actual occurred external
Total approving external
32,000 guarantee in report period
guarantee in report period (A1) 44,792.25
(A2)
Total actual balance of
Total approved external guarantee
external guarantee at the end
at the end of report period ( A3) 81,150 32,262.16
of report period (A4)
Guarantee of the Company for the subsidiaries
Guarante
Related Actual date of
Complete e for
Announcem happening
Name of the Guarantee Actual Guarantee Guarantee implemen related
ent (Date of
Company guaranteed limit guarantee limit type term tation or party
disclosure signing
not (Yes or
date agreement)
no)
Sinopharm Group 2011.8.2-201
2011-03-22 5,000 2011-08-02 1,113.02 Guarantee No Yes
Zhanjiang Co., Ltd. 2.8.2
Sinopharm Group 2011.7.26-20
2011-03-22 20,000 2011-07-26 6,671.22 Guarantee No Yes
Guangzhou Co., Ltd. 12.7.26
Sinopharm Group 2011.10.17-2
2011-08-19 35,000 2011-10-17 31,017.89 Guarantee No Yes
Guangzhou Co., Ltd. 012.10.17
Sinopharm Group 2011.12.14-2
2011-08-19 8,000 2011-12-14 7,995.18 Guarantee No Yes
Guangzhou Co., Ltd. 012.11.13
Sinopharm Group 2011.11.24-2
2011-08-19 20,000 2011-11-24 Guarantee No Yes
Guangzhou Co., Ltd. 012.11.23
Sinopharm Group
2012.4.28-2
Guangdong Yuexing 2012-03-16 3,500 2012-04-28 1,849.21 Guarantee No Yes
013.4.28
Co., Ltd.
Sinopharm Group 2012.4.28-2
2012-03-16 32,500 2012-04-28 24,194.39 Guarantee No Yes
Guangzhou Co., Ltd. 013.4.28
Sinopharm Group 2012.5.21-2
2012-03-16 60,000 2012-05-21 12,056.14 Guarantee No Yes
Guangzhou Co., Ltd. 013.4.24
Sinopharm Group 2012.1.18-2
2011-08-18 15,000 2012-01-18 14,872.62 Guarantee No Yes
Guangzhou Co., Ltd. 013.1.18
Sinopharm Group 2012.2.10-2
2011-03-22 10,000 2012-02-10 9,816.21 Guarantee No Yes
Guangzhou Co., Ltd. 013.2.9
Sinopharm Group 2012.4.27-2
2012-03-16 10,000 2012-04-27 9,931.79 Guarantee No Yes
Guangzhou Co., Ltd. 013.4.12
Shenzhen Yanfeng
2012.2.28-2
Pharmaceutical Co., 2011-08-19 3,000 2012-02-28 1,951.66 Guarantee No Yes
013.2.27
Ltd.
Shenzhen Yanfeng 2011.12.14-2
2011-08-19 2,000 2011-12-14 1,760.37 Guarantee No Yes
Pharmaceutical Co., 012.11.13
88
Ltd.
Shenzhen Zhijun
2011.12.14-2
Pharmaceutical 2011-08-19 1,500 2011-12-14 1,190.13 Guarantee No Yes
012.11.13
Trading Co., Ltd.
Shenzhen Zhijun
2012.3.8-20
Pharmaceutical 2011-08-18 2,000 2012-03-08 485.35 Guarantee No Yes
13.3.8
Trading Co., Ltd.
Shenzhen Zhijun
2012.6.20-2
Pharmaceutical Co., 2012-03-16 20,000 2012-06-20 5,677.08 Guarantee No Yes
013.6.20
Ltd.
Shenzhen Zhijun
2011.12.13-2
Pharmaceutical Co., 2011-08-19 8,000 2011-12-13 2,037.63 Guarantee No Yes
012.11.13
Ltd.
Shenzhen Zhijun
2011.8.25-20
Pharmaceutical Co., 2011-08-18 17,500 2011-08-25 2,979.5 Guarantee No Yes
16.8.24
Ltd.
Shenzhen Zhijun
2012.3.22-2
Pharmaceutical Co., 2011-08-18 7,000 2012-03-22 1,011.17 Guarantee No Yes
013.3.22
Ltd.
Sinopharm Group 2011.12.14-2
2011-08-19 2,000 2011-12-14 1,500 Guarantee No Yes
Liuzhou Co., Ltd. 012.11.13
Sinopharm Group 2011.11.20-2
2011-03-22 5,000 2011-11-20 2,485.57 Guarantee No Yes
Liuzhou Co., Ltd. 012.11.20
Suzhou Zhijun
Wanqing 2012.6.28-2
2012-03-16 6,000 2012-06-28 3,990 Guarantee No Yes
Pharmaceutical Co., 013.6.27
Ltd.
Suzhou Zhijun
Wanqing 2010.8.1-20
2010-03-23 6,000 2010-08-01 3,000 Guarantee No Yes
Pharmaceutical Co., 13.8.1
Ltd.
Suzhou Zhijun
Wanqing 2012.1.17-2
2011-08-18 5,000 2012-01-17 4,978.92 Guarantee No Yes
Pharmaceutical Co., 013.1.5
Ltd.
Suzhou Zhijun
Wanqing 2012.5.7-20
2012-03-16 10,000 2012-05-07 6,812 Guarantee No Yes
Pharmaceutical Co., 13.5.6
Ltd.
Suzhou Zhijun 2011-08-19 4,000 2011-12-14 4,000 Guarantee 2011.12.14-2 No Yes
89
Wanqing 012.11.13
Pharmaceutical Co.,
Ltd.
Suzhou Zhijun
Wanqing 2012.6.14-2
2012-03-16 5,000 2012-06-14 4,471.82 Guarantee No Yes
Pharmaceutical Co., 013.6.14
Ltd.
Sinopharm Group
2011.1.17--2
Guangxi Logistic 2010-12-09 10,000 2011-01-17 6,690.85 Guarantee No Yes
014.1.17
Co., Ltd.
Sinopharm Group 2012.5.15-2
2012-03-16 10,000 2012-05-15 8,536.88 Guarantee No Yes
Guangxi Co., Ltd. 013.5.15
Sinopharm Group 2012.5.16-2
2012-03-16 10,000 2012-05-16 9,787.83 Guarantee No Yes
Guangxi Co., Ltd. 013.5.16
Sinopharm Group 2011.12.14-2
2011-08-19 8,000 2011-12-14 7,331.65 Guarantee No Yes
Guangxi Co., Ltd. 012.12.13
Sinopharm Group 2012.4.28-2
2012-03-16 4,000 2012-04-28 2,231.1 Guarantee No Yes
Guangxi Co., Ltd. 013.4.28
Total amount of actual
Total amount of approving
occurred guarantee for
guarantee for subsidiaries in 213,000 319,517.03
subsidiaries in report period
report period (B1)
(B2)
Total balance of actual
Total amount of approved
guarantee for subsidiaries at
guarantee for subsidiaries at the 365,000 202,427.17
the end of reporting period
end of reporting period (B3)
(B4)
Total amount of guarantee of the Company( total of two abovementioned guarantee)
Total amount of approving Total amount of actual
guarantee in report period occurred guarantee in report
(A1+B1) 245,000.00 period (A2+B2) 364,309.28
Total amount of approved Total balance of actual
guarantee at the end of report guarantee at the end of report
period (A3+B3) 446,150.00 period (A4+B4) 234,689.33
The proportion of the total amount of actually guarantee in the
144.23%
net assets of the Company(that is A4+ B4)
Including:
Amount of guarantee for shareholders, actual controller and its
0
related parties(C)
The debts guarantee amount provided for the guaranteed parties
188,040.07
whose assets-liability ratio exceed 70% directly or indirectly(D)
Proportion of total amount of guarantee in net assets of the
153,327.15
Company exceed 50%(E)
Total amount of the aforesaid three guarantees(C+D+E) 341,367.22
Explanations on possibly bearing joint and several liquidating
N/A
responsibilities for undue guarantees
Explanations on external guarantee against regulated
N/A
procedures
90
3. Trust financing
□Applicable √Non-applicable
91
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
4. Implementation of material contracts entered into during the normal operation
Nil
5. Other significant contract
□Applicable √Non-applicable
(XI) Explanation on corporate bonds offering
□Applicable √Non-applicable
(XII) Implementation of commitments
1. Commitments made by the Company or shareholders holding above 5% shares of the
Company in reporting period or extending to reporting period.
□Applicable √Non-applicable
2. Explanation on assets or projects that reached the original profit forecast as well as its
reasons while the reporting period still in forecast period, and there are profit forecast on
assets or projects of the Company
□Applicable √Non-applicable
(XIII) Items of other consolidated income
Unit: RMB
Items This period Last period
1. Gains(losses) from financial assets available for sales 0 0
Less: Income tax influences from financial assets available
0 0
for sales
Net amount reckoned into other consolidated income in
previous period but transferred into gains/losses in current 0 0
period
Subtotal 0 0
2. Shares in the other consolidated income of the investee
0 0
calculated based on equity method
Less: Income tax influences of shares in the other
consolidated income of the investee calculated based on 0 0
equity method
Net amount reckoned into other consolidated income in
previous period but transferred into gains/losses in current 0 0
period
Subtotal 0 0
3. Gains(losses) from cash flow hedge instrument 0 0
Less: Income tax influences from cash flow hedge 0 0
Net amount reckoned into other consolidated income in
previous period but transferred into gains/losses in current 0 0
period
Adjusted amount transferred to initial confirmed amount of
0 0
the arbitraged items
Subtotal 0 0
4. Differences from translating foreign currency financial
0 0
statements
Less: Net amount of disposing overseas business transferred
0 0
to current gains/losses
Subtotal 0 0
5. Others 0 0
Less: Income tax influences by others reckoned into other
0 0
consolidated income
92
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Net amount reckoned into other consolidated income in
previous period but transferred into gains/losses in current 0 0
period
Subtotal 0 0
Total 0 0
(XIV)Registration form of receiving research, communication and interview in the report
period
Content discussed and
Date Place Way Type Object
documents provided
Chongqing
Financial Research
Institute, CITIC
Visit the company, and
Building of building investment,
know the development of
Shenzhen Accord E Fund, Elegant
May 17, 2012 Field research Institution the company, no
Pharmaceutical Co., Investment, Guodu
information was
Ltd Securities, Zexi
provided.
Investment, Guodu
Securities, CITIC
Building Investment
Visit the company, and
Building of
know the development of
Shenzhen Accord
Jun. 1, 2012 Field research Institution JPMFC the company, no
Pharmaceutical Co.,
information was
Ltd
provided.
Visit the company, and
Building of Invesco Great Wall,
know the development of
Shenzhen Accord Guotai Junan
Jul. 5, 2012 Field research Institution the company, no
Pharmaceutical Co., Securities, Invesco
information was
Ltd Great Wall
provided.
(XV) Engagement and non-reappointment of CPA
Whether the semi-annual report was audited or not
□ Yes √ No
(XVI) Punishment and rectification for listed company and its directors, supervisor, senior
executives, shareholders of the Company, actual controller and purchasers
□Applicable √Non-applicable
(XVII) Explanation on other significant events
□Applicable √Non-applicable
(XVIII) Major changes of profitability of turn debt guarantor, assets status and credit
standings
(Only applies to listed company with corporate convertible bonds offered)
□Applicable √Non-applicable
93
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
(XIX) Index for information disclosure
Proceeding Published Magazine and layout Publishing date Website and searching route
Resolution of the 7th Meeting of
the 6th Session of Supervisory
Committee, Resolution of the 7th
Meeting of the 6th Session of the
Board of Directors, Summary of
Annual Report 2011, Annual
Report 2011, Work Report 2011 of
Independent Director, Auditing
Report 2011, Notice on the
Application of General Credit
Limit from the Bank and the
Arrangement of Guarantees
2012, Notice on Opinion of
Independent Directors, Self
Evaluation Report of Internal
Control 2011, Auditing Report on “Securities Times” D52, Hong Kong http://www.szse.cn
Internal Control, Notice on Commercial Daily A20、21 Mar. 16, 2012
http://www.cninfo.com.cn
Holding 2011 Shareholders’
General Meeting, Opinion on the
Self Evaluation of Internal
Control by Board of Supervisors,
Inside Information and Insider
Management System (Mac.
2012), Special Report on Fund
Occupation of Controlling
Shareholders and Other Related
Parties, Notice on Daily Related
Transactions 2012, Rules for the
Board of Directors (Mar. 2012),
Corporate Social
Responsibility Report 2011)
Notice on Purchasing 100%
Stake of Sinopharm Medicine “Securities Times” B22, “Hong http://www.szse.cn
Holding Jiangmen RenRen Co., Kong Commercial Daily” A9 Mar. 31, 2012 http://www.cninfo.com.cn
Ltd
The Summary and Text of 121ST “Securities Times” C49, “Hong Kong http://www.szse.cn
Apr. 23, 2012
Report Commercial Daily” A19 http://www.cninfo.com.cn
94
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Announcement of Resolution of
2011 shareholders’ Meeting, “Securities Times” B65, “Hong http://www.szse.cn
Apr. 28, 2012
Legal Opinion on 2011 Kong Commercial Daily” A8 http://www.cninfo.com.cn
Shareholders’ Meeting
Notice on the Compensation and
Arrangement for the House http://www.szse.cn
“Securities Times” D20, “Hong Kong
Removal of the Subordinate May 16, 2012
Commercial Daily” A14 http://www.cninfo.com.cn
Sinopharm Medicine Holding
Guangxi Logistics Co., Ltd”
Notice of Dividend Distribution “Securities Times” D20 “Hong Kong http://www.szse.cn
Jun. 13, 2012
for 2011 Commercial Daily” A11 http://www.cninfo.com.cn
Notice on the Payment of
Compensation for Chebei Project
Termination and the “Securities Times” D24, “Hong http://www.szse.cn
Jun. 21, 2012
Self-construction of Kong Commercial Daily” A9 http://www.cninfo.com.cn
Distribution
Headquarters building”
VIII. Financial Report
(I) Audit Report
Semi-Annual Report Audited or Not
□ Yes √ No
(II) Financial Statements
Consolidated Statements:
√ Yes □ No
All amounts are stated in Renminbi (“RMB”) unless otherwise stated
Notes to financial statements are stated in RMB
1. Consolidated balance sheet
Prepared by: China National Accord Medicines CO.,Ltd.
Currency: RMB
Items Notes 30 June 2012 31 December 2011
Current assets:
95
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Cash at bank and on hand 895,026,548.58 952,950,167.56
Settlement provision 0 0
Outgoing call loan 0 0
Held-for-trading financial assets 0 0
Notes receivable 605,028,889.32 534,922,741.3
Accounts receivable 4,394,736,822.18 3,580,506,395.7
Advances to suppliers 58,074,632.94 65,857,961.31
Insurance receivable 0 0
Reinsurance receivable 0 0
Provisions of Reinsurance contracts 0 0
receivable
Interest receivable 0 0
Dividend receivable 0 0
Other receivables 52,858,405.59 28,656,020.58
Repurchasing of financial assets 0 0
Inventories 1,300,431,074.08 1,313,213,414.68
Current portion of non-current assets 0 0
Other current assets 4,063,215.43 7,653,736.21
Total current assets 7,310,219,588.12 6,483,760,437.34
Non-current assets:
Loans and payment on other’s behalf 0 0
disbursed
Disposable financial asset 0 0
Held-to-maturity investment 0 0
Long-term receivable 0 0
Long-term equity investments 98,295,325.71 95,799,627.42
Investment properties 85,681,940.62 86,164,929.7
Fixed assets 598,800,553.24 602,205,927.87
Construction in progress 141,003,444.17 131,042,772.59
Engineering material 0 0
Fixed asset disposal 0 0
Biological assets 0 0
Oil & Gas assets 0 0
Intangible assets 137,365,167.37 119,601,478.86
Development costs 4,366,503.52 3,998,433.69
96
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Goodwill 83,542,336.35 53,555,677.09
Long-term prepaid expenses 18,108,195.83 20,103,138.99
Deferred tax assets 48,594,167.03 44,070,064.25
Other non-current assets 136,256,131.17 40,273,842.92
Total non-current assets 1,352,013,765.01 1,196,815,893.38
TOTAL ASSETS 8,662,233,353.13 7,680,576,330.72
Current liabilities
Short-term borrowings 1,838,188,971.79 1,839,838,065.68
Loan from Central Bank 0 0
Deposit received and hold for others 0 0
Call loan received 0 0
Trade off financial liabilities 0 0
Notes payable 1,105,740,272.07 1,059,426,952.84
Accounts payable 3,048,521,150.09 2,496,755,405.3
Advances from customers 42,747,675.56 58,705,230.49
Selling of repurchased financial 0 0
assets
Fees and commissions payable 0 0
Employee benefits payable 140,151,502.39 142,414,446.06
Taxes payable 68,310,117.67 63,600,830.11
Interests payable 8,367,987.51 10,451,229.03
Dividend payable 0 0
Other payables 415,177,944.78 346,965,182.34
Reinsurance fee payable 0 0
Insurance contract provision 0 0
Entrusted trading of securities 0 0
Entrusted selling of securities 0 0
Current portion of non-current 14,928,000 23,960,000
liabilities
Other non-current liabilities 0 0
Total current liabilities 6,682,133,621.86 6,042,117,341.85
Non-current liabilities
Long-term borrowings 112,111,487.71 93,082,967.96
Bond payable 0 0
Long-term payables 32,915.4 35,536.2
97
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Payables for specific projects 4,287,000 4,519,000
Expected liabilities 0 0
Deferred tax liabilities 23,265,829.99 19,900,787.3
Other non-current liabilities 213,158,877.71 94,245,023.54
Total non-current liabilities 352,856,110.81 211,783,315
TOTAL Liabilities 7,034,989,732.67 6,253,900,656.85
OWNERS’ EQUITY
Paid-in capital 288,149,400 288,149,400
Capital surplus 5,550,338.57 8,735,305.04
Less:Shares in stock 0 0
Special reserves 0 0
Surplus reserve 63,480,745.16 63,480,745.16
General risk reserve 0 0
Undistributed profits 1,191,219,361.77 989,727,826.66
Different of foreign currency 0 0
translation
Total equity attributable to equity 1,548,399,845.5 1,350,093,276.86
holders of the Company
Minority interest 78,843,774.96 76,582,397.01
Total owners' equity 1,627,243,620.46 1,426,675,673.87
TOTAL LIABILITIES AND OWNERS’ 8,662,233,353.13 7,680,576,330.72
EQUITY
Legal representative: Wei Yulin
Principal in charge of accounting: Wei Pingxiao
Head of accounting department: Chi Guoguang
2, Balance Sheet of Parent Company
Currency: RMB
Items Notes 30 June 2012 31 December 2011
Current assets:
Cash at bank and on hand 144,950,816.05 164,840,499.86
Held-for-trading financial assets
Notes receivable 7,566,992.28 8,718,971.96
Accounts receivable 369,480,124.54 295,227,856.2
Advances to suppliers 413,707.37 3,148,580.55
98
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Interest receivable
Dividend receivable
Other receivables 753,111,280.96 704,287,016.32
Inventories 116,475,310.73 125,157,825.01
Current portion of non-current assets
Other current assets 39,482.38 39,482.38
Total current assets 1,392,037,714.31 1,301,420,232.28
Non-current assets
Disposable financial asset
Held-to-maturity investment
Long-term receivable
Long-term equity investments 1,391,094,820.09 1,332,527,041.51
Investment properties 8,027,050.5 8,841,071.5
Fixed assets 30,624,093.26 32,866,561.06
Construction in progress 253,886.24 253,886.24
Engineering material
Fixed asset disposal
Bearer biological assets
Oil and gas assets
Intangible assets 26,776,809.98 27,426,551.44
Development costs
Goodwill
Long-term prepaid expenses 8,461,170.47 9,030,726.77
Deferred tax assets 3,037,448.27 5,335,693.52
Other non-current assets 7,000,000 7,000,000
Total non-current assets 1,475,275,278.81 1,423,281,532.04
TOTAL ASSETS 2,867,312,993.12 2,724,701,764.32
Current liabilities:
Short-term borrowings 422,634,603.89 417,648,980.6
Trade off financial liabilities
Notes payable 206,188,500.68 120,293,155.72
Accounts payable 299,987,674.91 343,946,734.72
Advances from customers 208,520.83 249,535.25
Employee benefits payable 32,133,570 24,966,511.9
99
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Taxes payable 3,808,013.17 1,640,177.39
Interests payable 667,776.34 868,585.17
Dividend payable
Other payables 663,273,819.85 865,237,491.48
Current portion of long-term borrowings
Other current liability
Non-current liabilities 1,628,902,479.67 1,774,851,172.23
Non-current liabilities
Long-term borrowings
Bond payable
Long-term payables
Payables for specific projects 800,000 1,032,000
Expected liabilities
Deferred tax liabilities 3,773,319 3,773,319
Other non-current liabilities
Total non-current liabilities 4,573,319 4,805,319
TOTAL Liabilities 1,633,475,798.67 1,779,656,491.23
OWNERS’ EQUITY
Paid in capital 288,149,400 288,149,400
Capital surplus 14,348,726.93 14,116,726.93
Less: Shares in stock 0
Special reserves 0
Surplus reserve 63,480,745.16 63,480,745.16
Undistributed profits 867,858,322.36 579,298,401
Different of foreign currency translation 0
Total owners' equity 1,233,837,194.45 945,045,273.09
TOTAL LIABILITIES AND OWNERS’ EQUITY 2,867,312,993.12 2,724,701,764.32
Legal representative: Wei Yulin
Principal in charge of accounting: Wei Pingxiao
Head of accounting department: Chi Guoguang
3. Consolidated income statement
Currency: RMB
Items Notes Consolidated Consolidated
Six months ended 30 Six months ended 31
100
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
June 2012 December 2011
I. Total operating revenues 8,803,252,346.2 7,209,655,400.57
Including: Sales income 8,803,252,346.2 7,209,655,400.57
Interest income
Insurance fee earned
Fee and commission received
II. Total operating cost 8,501,305,125.54 7,019,841,377.44
Including: cost of sales 7,967,951,745.26 6,532,714,090.9
Interest expense
Fee and commission
Insurance discharge payment
Net claim amount paid
Net insurance contract reserves
Insurance policy dividend paid
Reinsurance expenses
Taxes and surcharges 26,649,659.87 15,622,190.52
Selling and distribution expenses 233,599,483.22 240,597,217.15
Administration expenses 176,226,562.15 163,398,128.69
Financial expenses – net 88,489,461.15 61,634,098.99
Asset impairment losses 8,388,213.89 5,875,651.19
Add: Gains from change of fair
value (“-”for loss)
Investment income(“-”for loss) 16,016,159.76 12,810,289.3
Including: Share of profits of 16,016,159.76 12,810,289.3
associates and joint venture
Gains from currency exchange
(“-”for loss)
Operating profit (“-”for loss) 317,963,380.42 202,624,312.43
Add: Non-operating income 19,109,166.93 15,015,410.03
Less: Non-operating expenses 29,914,252.52 217,194.52
Including: Loss on disposal of 8,985,832.5 70,253.22
non- current assets
III. Total profit (“-”for loss) 307,158,294.83 217,422,527.94
Less: Income taxes expenses 63,947,782.17 49,992,392.1
IV. Net profit (“-”for loss) 243,210,512.66 167,430,135.84
101
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Including: Net losses of the -240,695.14 -295,307.5
acquiree entity in a business
combination involving enterprises
under common control before the
combination date
Attributable to equity holders of 240,033,990.64 164,842,022.26
the Company
Minority interest 3,176,522.02 2,588,113.58
V. Earnings per share
Basic earnings per share 0.833 0.572
Diluted earnings per share 0.833 0.572
VI. Other comprehensive income
VII. Total comprehensive income 243,210,512.66 167,430,135.84
Attributable to equity holders of 240,033,990.64 164,842,022.26
the Company
Minority interest 3,176,522.02 2,588,113.58
Net losses of the acquiree entity in a business combination involving enterprises under common control
before the combination date is: RMB -240,695.14.
Legal representative: Wei Yulin
Principal in charge of accounting: Wei Pingxiao
Head of accounting department: Chi Guoguang
102
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
4. Income statement of the Parent Company
Currency: RMB
Six months ended 30 June Six months ended 31
Items Notes
2012 December 2011
I. Total operating revenues 1,061,913,880.58 946,753,432.44
Including: Sales income 1,009,526,559.83 901,521,599.01
Taxes and surcharges 2,561,289.79 1,912,151.45
Selling and distribution
23,790,432.21 24,588,975.59
expenses
Administration expenses 18,789,943.57 19,332,279.73
Financial expenses – net 12,150,824.5 16,818,820.34
Asset impairment losses -87,845.57 252,914.4
Add: Gains from change
of fair value (“-”for loss)
Investment income (“-”for
333,088,955.75 247,870,767.97
loss)
Including: Share of
profits of associates and 16,016,159.76 12,810,289.3
joint venture
II. Operating profit (“-”for
328,271,632 230,197,459.89
loss)
Add: Non-operating
316,515.21 2,582,378.11
income
Less: Non-operating
270,558.6
expenses
Including: Loss on disposal of
69,125.07
non-current assets
III. Total profit (“-”for loss) 328,317,588.61 232,779,838
Less: Income taxes
2,298,245.25 3,230,532.5
expenses
IV. Net profit(“-”for loss) 326,019,343.36 229,549,305.5
V. Earnings per share -- --
Basic earnings per share
Diluted earnings per
share
VI. Other comprehensive
103
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
income
VII. Total comprehensive
326,019,343.36 229,549,305.5
income
Legal representative: Wei Yulin
Principal in charge of accounting: Wei Pingxiao
Head of accounting department: Chi Guoguang
5,Consolidated cash flows statement
Unit : RMB
Consolidated Consolidated
Items Six months ended 30 June Six months ended 31
2012 December 2011
I. Cash flows from operating activities:
Cash received from sales of goods or
8,154,024,926.29 7,017,192,904.96
rendering of services
Net increase of customer deposits and capital
kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from other
financial bodies
Cash received against original insurance
contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Net increase of trade financial asset disposal
Cash received as interest, processing fee and
commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Refund of taxes and surcharges 1,635,046.52 738,150.65
Cash received relating to other operating
54,219,435.33 61,739,956.91
activities
Sub-total of cash inflows 8,209,879,408.14 7,079,671,012.52
Cash paid for goods and services 7,429,617,641.04 6,413,891,243.42
Net increase of client trade and advance
Net increase of savings in central bank and
brother company
104
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Cash paid for original contract claim
Cash paid for interest, processing fee and
commission
Cash paid for policy dividend
Cash paid to and on behalf of employees 237,818,197.76 221,130,722.37
Payments of taxes and surcharges 267,522,349.76 176,188,362.99
Cash paid relating to other operating activities 136,011,351.41 161,813,391.28
Sub-total of cash outflows 8,070,969,539.97 6,973,023,720.06
Net cash flows from operating activities 138,909,868.17 106,647,292.46
II. Cash flows from investing activities
Cash received from disposal of investments 1,830,000
Cash received from returns on investments 13,520,461.47 17,595,000
Net cash received from disposal of fixed
assets, intangible assets and other long-term 1,186,748.27 2,118,542.7
assets
Cash received from disposal of subsidiaries
0
and other business units
Cash received relating to other investing
50,000,000.00 2,095,500
activities
Sub-total of cash inflows 64,707,209.74 23,639,042.7
Cash paid to acquire fixed assets, intangible
100,816,136.04 83,999,605.07
assets and other long-term assets
Cash paid to acquire investments 3,151,909.31
Net increase of loan against pledge
Net cash paid to acquire subsidiaries and
24,618,888.24
other business units
Cash paid relating to other investing
9,698,496.42
activities
Sub-total of cash outflows 125,435,024.28 96,850,010.8
Net cash flows from investing activities -60,727,814.54 -73,210,968.1
III. Cash flows from financing activities
Cash received from capital contributions
Including: Cash received from capital
contributions by minority shareholders of
subsidiaries
Cash received from borrowings 542,234,155.37 577,822,900
105
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Cash received from bond placing
Cash received relating to other financing
379,293,299.15 253,512,730.06
activities
Sub-total of cash inflows 921,527,454.52 831,335,630.06
Cash repayments of borrowings 556,539,508.71 326,720,493.3
Cash payments for interest expenses and
115,134,064.07 72,291,396.35
distribution of dividends or profits
Including: Cash payments for dividends or
915,144.07 0
profit to minority shareholders of subsidiaries
Cash payments relating to other financing
367,370,000.00 258,540,393.07
activities
Sub-total of cash outflows 1,039,043,572.78 657,552,282.72
Net cash flows from financing activities -117,516,118.26 173,783,347.34
IV. Effect of foreign exchange rate changes on
8,041.09 -546.91
cash and cash equivalents
V. Net increase in cash and cash equivalents -39,326,023.55 207,219,124.79
Add: Cash and cash equivalents at beginning
907,884,162.14 684,764,869.84
of the period
VI. Cash and cash equivalent at end of the
868,558,138.59 891,983,994.63
period
Legal representative: Wei Yulin
Principal in charge of accounting: Wei Pingxiao
Head of accounting department: Chi Guoguang
6. Cash flow statement of the Parent Company
Currency: RMB
Six months ended Six months ended 31
Items
30 June 2012 December 2011
I. Cash flows from operating activities:
Cash received from sales of goods or rendering of
1,078,704,746.86 1,054,596,424.06
services
Refund of taxes and surcharges
Cash received relating to other operating activities 8,565,080.02 9,195,945.98
Sub-total of cash inflows 1,087,269,826.88 1,063,792,370.04
Cash paid for goods and services 986,191,531.05 1,039,422,432.86
Cash paid to and on behalf of employees 24,886,316.46 23,901,254.31
Payments of taxes and surcharges 12,845,563.17 14,283,145.46
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Cash paid relating to other operating activities 15,390,706.25 26,247,197.21
Sub-total of cash outflows 1,039,314,116.93 1,103,854,029.84
Net cash flows from operating activities 47,955,709.95 -40,061,659.8
II. Cash flows from investing activities
Cash received from disposal of investments 1,830,000
Cash received from returns on investments 113,015,614.75 88,424,879.2
Net cash received from disposal of fixed assets,
207,900 1,338,000
intangible assets and other long-term assets
Cash received from disposal of subsidiaries and
5,424,600
other business units
Cash received relating to other investing activities 184,483,271.97 171,500,000
Sub-total of cash inflows 303,131,386.72 263,092,879.2
Cash paid to acquire fixed assets, intangible assets
1,241,178 3,043,716.52
and other long-term assets
Cash paid to acquire investments 52,751,909.31
Net cash paid to acquire subsidiaries and other
44,442,000
business units
Cash paid relating to other investing activities 233,780,000 186,500,000
Sub-total of cash outflows 279,463,178 242,295,625.83
Net cash flows from investing activities 23,668,208.72 20,797,253.37
III. Cash flows from financing activities
Cash received from capital contributions
Cash received from borrowings 70,000,000 330,000,000
Cash received relating to other financing
480,563,612.79 520,373,122.79
activities
Sub-total of cash inflows 550,563,612.79 850,373,122.79
Cash repayments of borrowings 90,062,726.66 210,000,000
Cash payments for interest expenses and
66,347,376.19 63,353,770.36
distribution of dividends or profits
Cash payments relating to other financing
485,667,112.42 454,235,099.01
activities
Sub-total of cash outflows 642,077,215.27 727,588,869.37
Net cash flows from financing activities -91,513,602.48 122,784,253.42
IV. Effect of foreign exchange rate changes on cash
and cash equivalents
V. Net increase in cash and cash equivalents -19,889,683.81 103,519,846.99
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Add: Cash and cash equivalents at beginning of the
164,840,499.86 135,498,819.87
period
VI. Cash and cash equivalent at end of the period 144,950,816.05 239,018,666.86
Legal representative: Wei Yulin
Principal in charge of accounting: Wei Pingxiao
Head of accounting department: Chi Guoguang
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7,Consolidated statement of changes in owners’ equity
The current term
Currency: RMB
30 June 2012
Attributable to the shareholders of the Company
Items Less: General Total
Specialized Minority interest
Paid-in capital Capital surplus Shares Surplus reserve Risk Undistributed profits Other owners’ equity
reserve
In stock Reserve
I. Balance at 31
288,149,400 5,318,338.57 63,480,745.16 993,269,387.62 76,582,771.92 1,426,800,643.27
December 2011
Add: Changes in
accounting policies
Corrections of prior
period errors
Other 3,416,966.47 0 -3,541,560.96 -374.91 -124,969.4
II. Balance at 1
288,149,400 8,735,305.04 63,480,745.16 989,727,826.66 76,582,397.01 1,426,675,673.87
January 2012
III. Movements for the
period ended 30 June -3,184,966.47 0 0 201,491,535.11 2,261,377.95 200,567,946.59
2012
(I) Net profit 240,033,990.64 3,176,522.02 243,210,512.66
(II) Other
0
comprehensive income
Total of (I) and (II) 240,033,990.64 3,176,522.02 243,210,512.66
(III) Capital contribution 0 -3,184,966.47 0 0 0 0 -1,083,033.53 0 0 -4,268,000
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and withdrawal by
owners
1.Capital contribution
by owners
2. Amount of shares
paid and
accounted as owners’
equity
3. Others -3,184,966.47 -1,083,033.53 -4,268,000
(IV)Profit distribution 0 0 0 0 0 0 -37,459,422 0 -915,144.07 -38,374,566.07
1. Appropriation to
surplus reserves
2. Providing of common
risk
provisions
3. Profit distribution to
-37,459,422 -915,144.07 -38,374,566.07
equity owners
4. Others
(V) Transfer within
0 0 0 0 0 0 0 0 0 0
owners' equity
1.Transfer from capital
surplus to paid-in
capital
2. Transfer from
surplus reserves to
paid-in capital
3. Surplus reserves
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
used to offset
accumulated losses
4. Others
(VI) Special reserves 0 0 0 0 0 0 0 0 0
1. Provided this year 0
2. Used this term 0
(VII)Other 0 0 0 0 0 0 0 0 0 0
IV. Balance at 30 June
288,149,400 5,550,338.57 0 0 63,480,745.16 1,191,219,361.77 78,843,774.96 1,627,243,620.46
2012
The previous term
Unit:RMB
31 December 2011
Owner’s equity Attributable to the Parent Company
Paid-in capital Capital Less: Speciali Surplus Gener Attributable Other Minor
Items Total of owners’
reserves Share zed reserves al Risk profit shareholders’
equity
in reserve Reserv equity
stock e
I. Balance at 31 288,149,400 5,030,338.57 39,981,268.55 719,209,302.41 79,075,051.61 1,131,445,361.14
December 2010
Retroactive 3,416,966.47 -1,557,687.89 5,594.61 1,864,873.19
adjustment from
Business
combination
under common
control
Changes in
accounting
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policies
Corrections of prior
period errors
Other
II. Balance at 1 288,149,400 8,447,305.04 39,981,268.55 717,651,614.52 79,080,646.22 1,133,310,234.33
January 2011
III. Movements for the 0 288,000 0 0 23,499,476.61 0 272,076,212.14 0 -2,498,249.21 293,365,439.54
year ended 31
December 2011
(I) Net profit 328,323,616.75 -2,498,249.21 325,825,367.54
(II) Other
comprehensive
income
Total of (I) and (II) 0 0 0 0 0 0 328,323,616.75 0 -2,498,249.21 325,825,367.54
(III) Capital 0 288,000 0 0 0 0 1,830,000 0 0 2,118,000
contribution and
withdrawal by owners
1.Capital contribution
by owners
2. Amount of shares
paid and
accounted as owners’
equity
3. Others 288,000 1,830,000 2,118,000
(IV)Profit distribution 0 0 0 0 23,499,476.61 0 -58,077,404.61 0 0 -34,577,928
1. Appropriation to 23,499,476.61 -23,499,476.61 0
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
surplus reserves
2. Providing of
common risk
provisions
3. Profit distribution to -34,577,928 -34,577,928
equity owners
4. Others
(V) Transfer within 0 0 0 0 0 0 0 0 0 0
owners' equity
1.Transfer from
capital surplus to
paid-in capital
2. Transfer from
surplus reserves to
paid-in capital
3. Surplus reserves
used to offset
accumulated losses
4. Others
(VI) Special reserves
1. Provided this year
2. Used this term
(VII)Other
IV. Balance at 31 288,149,400 8,735,305.04 63,480,745.16 989,727,826.66 76,582,397.01 1,426,675,673.87
December 2011
Legal representative: Wei Yulin
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Principal in charge of accounting: Wei Pingxiao
Head of accounting department: Chi Guoguang
8. Statement of change in owner’s Equity of the Parent Company
Amount of the Current term
Unit:RMB
30 June 2012
Less:
Items Specialized General Risk Undistributed Total
Paid-in capital Capital surplus Shares in Surplus reserve
reserve Reserve profits owners’ equity
stock
I. Balance at 31 December 2011 288,149,400 14,116,726.93 63,480,745.16 579,298,401 945,045,273.09
Add:Changes in accounting
policies
Corrections of prior period
errors
Other
II. Balance at 1 January 2012 288,149,400 14,116,726.93 0 63,480,745.16 579,298,401 945,045,273.09
III. Movements for the period
232,000 288,559,921.36 288,791,921.36
ended 30 June 2012
(I) Net profit 326,019,343.36 326,019,343.36
(II) Other comprehensive income 985,088.36
Total of (I) and (II) 0 0 0 0 0 0 326,019,343.36 326,019,343.36
(III) Capital contribution and
0 232,000 0 0 0 0 0 232,000
withdrawal by owners
1.Capital contribution by owners
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2. Amount of shares paid and
accounted as owners’ equity
3. Others 232,000 232,000
(IV)Profit distribution 0 0 0 0 0 0 -37,459,422 -37,459,422
1. Appropriation to surplus
reserves
2. Providing of common risk
provisions
3. Profit distribution to equity
-37,459,422 -37,459,422
owners
4. Others
(V) Transfer within owners'
0 0 0 0 0 0 0 0
equity
1.Transfer from capital surplus to
paid-in capital
2. Transfer from surplus reserves
to paid-in capital
3. Surplus reserves used to
offset accumulated losses
4. Others
(VI) Special reserves
1. Provided this year
2. Used this term
(VII)Other 0
IV. Balance at 30 June 2012 288,149,400 14,348,726.93 0 63,480,745.16 0 867,858,322.36 1,233,837,194.4
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5
Amount of the previous term
Currency: RMB
31 December 2011.
Less:
Items Specialized Surplus General Risk Total of owners’
Paid-in capital Capital reserves Shares in Attributable profit
reserve reserves Reserve equity
stock
I. Balance at 31 December 2010 288,149,400 13,828,726.93 39,981,268.55 400,551,039.54 742,510,435.02
Changes in accounting policies
Corrections of prior period errors
Other
II. Balance at 1 January 2011 288,149,400 13,828,726.93 39,981,268.55 400,551,039.54 742,510,435.02
III. Movements for the period
288,000 23,499,476.61 178,747,361.46 202,534,838.07
ended 31 December 2011
(I) Net profit 234,994,766.07 234,994,766.07
(II) Other comprehensive income
Total of (I) and (II) 234,994,766.07 234,994,766.07
(III) Capital contribution and
0 288,000 0 0 0 0 1,830,000 2,118,000
withdrawal by owners
1.Capital contribution by owners
2. Amount of shares paid and
accounted as owners’ equity
3. Others 288,000 1,830,000 2,118,000
(IV)Profit distribution 0 0 0 0 23,499,476.61 0 -58,077,404.61 -34,577,928
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
1. Appropriation to surplus
23,499,476.61 -23,499,476.61 0
reserves
2. Providing of common risk
provisions
3. Profit distribution to equity
-34,577,928 -34,577,928
owners
4. Others
(V) Transfer within owners' equity 0 0 0 0 0 0 0 0
1.Transfer from capital surplus to
paid-in capital
2. Transfer from surplus reserves
to paid-in capital
3. Surplus reserves used to offset
accumulated losses
4. Others
(VI) Special reserves
1. Provided this year
2. Used this term
(VII)Other
IV. Balance at 31 December 2011 288,149,400 14,116,726.93 63,480,745.16 579,298,401 945,045,273.09
Legal representative: Wei Yulin
Principal in charge of accounting: Wei Pingxiao
Head of accounting department: Chi Guoguang
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(III) General information
China National Accord Medicines Co., Ltd. (‘the Company’), formerly known as Shenzhen Health Mineral
Water Co., Ltd., was approved by the People’s Government of Shenzhen with SFBF (1993) No.356
document to establish on February 1, 1993 through stock restructure as a company limited by shares. In
March 1993, with the approval from the Shenzhen Branch of the People’s Bank of China, the Company
issued 30 million A-shares (including 16.5 million public shares, 3.5 million employee shares and 10 million
corporation shares) and 20 million B-shares. After this issuance, the Company’s share capital was RMB105
million. Through transfer of capital surplus to share capital and bonus issues for years, the share capital of
the Company increased to RMB288,149,400 up to June 30, 2012. The employee shares, domestic public
shares and foreign public shares have all been listed on the Shenzhen Stock Exchange.
In November 2000, the Company entered into an Assets Exchange Agreement with Shenzhen Investment
Management Company, the original main shareholder of the Company, to exchange all the assets and
liabilities of the Company as of August 31, 2000 for Shenzhen Investment Management Company’s 100%
equity interests in 11 pharmaceutical companies and certain properties as well as 51% equity interests in
Shenzhen Tefa Modern Computer Co., Ltd. On December 29, 2000, the above assets exchange proposal
was approved by shareholder’s voting in the second extraordinary general meeting in 2000. The transaction
was completed on January 8, 2001. On June 18, 2001, the Company changed its name to Shenzhen Accord
Pharmaceutical Co., Ltd., and belongs to the pharmaceutical manufacturing industry.
On February 18, 2004, the Company’s original main shareholder, Shenzhen Investment Management
Company, entered into a Stock Transfer Agreement with Sinopharm Group Co., Ltd. (formerly known as
Sinopharm Group Medicine Holding Co., Ltd, hereinafter referred to as “Sinopharm Group”) to transfer its
43.33% shares in the Company to Sinopharm Group. The legal procedures of the above equity transfer were
completed on December 9, 2004. At the same time, as approved by GZCQ (2004) No.525 document from the
State-owned Assets Supervision and Administration Commission of the State Council and ZJGSZ (2004)
No.94 document from the China Securities Regulatory Commission, the nature of these shares was
transferred from state-owned stock to state-owned legal entity stock and Sinopharm Group became the top
shareholder of the Company.
On April 14, 2006, the Company’s proposal on reformation of segregated stocks was approved. To gain
liquidity for the restricted stocks of the Company, the holders of the restricted stocks of the Company agreed
to pay the following consideration: based on the stock registration as of April 27, 2006, the Company issued
bonus shares on April 28, 2006 at the ratio of 3 shares to every 10 A-shares to liquidated A-share holders
which went public on the same day. After this bonus issue, the total number of shares of the Company
remained unchanged with corresponding changes in the composition of share holdings. As at June 30, 2012,
there were 288,149,400 shares in total.
On December 22, 2011, the Company changed its name from “Shenzhen Accord Pharmaceutical Co.,Ltd ” to
“ China National Accord Medicines Co.,Ltd”.
The Company is registered with Shenzhen Administration for Industry & Commerce. Its business license
number is 440301103040048 and the serial number of the license is N24657. The operation period of the
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Company is from August 2, 1986 to August 2, 2036. The registered capital of the Company is RMB288,
149,400. The legal representative of the Company is Wei Yulin.
(IV) Summary of significant accounting policies and accounting estimates
1,Basis of preparation
The financial statements were prepared in accordance with the Basic Standard and 38 specific standards of
the Accounting Standards for Business Enterprises issued by the Ministry of Finance on 15 February 2006,
and the Application Guidance for Accounting Standards for Business Enterprises, Interpretations of
Accounting Standards for Business Enterprises and other relevant regulations issued thereafter (hereafter
collectively referred to as “the Accounting Standards for Business Enterprises” or “CAS”) and the disclosure
requirements in the Preparation Convention of Information Disclosure by Companies Offering Securities to
the Public No.15 – General Rules on Financial Reporting (2010 revised) issued by the China Securities
Regulatory Commission.
2,Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the period ended 30 June 2012 are in compliance with the
Accounting Standards for Business Enterprises, and truly and completely present the financial position as of
30 June 2012 and the operating results, cash flows and other information for the period then ended of the
Group and the Company.
3,Accounting year
The Company’s accounting year starts on 1 January and ends on 31 December. This financial report period
starts on 1 January and ends on 30 June.
4,Recording currency
The recording currency is Renminbi (RMB).
The recording currency of Foreign Subsidiaries: N/A
5,Business combinations
(1)Business combinations involving enterprises under common control
The consideration paid and net assets obtained by the absorbing party in a business combination are
measured at the carrying amount. The difference between the carrying amount of the net assets obtained
from the combination and the carrying amount of the consideration paid for the combination is treated as an
adjustment to capital surplus (share premium). If the capital surplus (share premium) is not sufficient to
absorb the difference, the remaining balance is adjusted against retained earnings. Costs directly attributable
to the combination are included in profit or loss in the period in which they are incurred. Transaction costs
associated with the issue of equity or debt securities for the business combination are included in the initially
recognised amounts of the equity or debt securities.
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(2)Business combinations involving enterprises not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business combination are
measured at fair value at the acquisition date. Where the cost of the combination exceeds the acquirer’s
interest in the fair value of the acquirer’s identifiable net assets, the difference is recognized as goodwill;
where the cost of combination is lower than the acquirer’s interest in the fair value of the acquirer’s
identifiable net assets, the difference is recognized in profit or loss for the current period. Costs directly
attributable to the combination are included in profit or loss in the period in which they are incurred.
Transaction costs associated with the issue of equity or debt securities for the business combination are
included in the initially recognized amounts of the equity or debt securities.
6,Preparation of consolidated financial statements
(1)Preparation of consolidated financial statements
A. The consolidated financial statements comprise the financial statements of the Company and all of its
subsidiaries.
B. Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated
from the date that such control ceases. For a subsidiary that is acquired in a business combination involving
enterprises under common control, it is included in the consolidated financial statements from the date when
it, together with the Company, comes under common control of the ultimate controlling party. The portion of
the net profits realized before the combination date is presented separately in the consolidated income
statement.
C. In preparing the consolidated financial statements, where the accounting policies and the accounting
periods of the Company and subsidiaries are inconsistent, the financial statements of the subsidiaries are
adjusted in accordance with the accounting policies and the accounting period of the Company. For
subsidiaries acquired from business combinations involving enterprises not under common control, the
individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net
assets at the acquisition date.
D. All significant inter-group balances, transactions and unrealized profits are eliminated in the consolidated
financial statements. The portion of a subsidiary’s equity and the portion of a subsidiary’s net profits and
losses for the period not attributable to Company are recognized as minority interests and presented
separately in the consolidated financial statements within equity and net profits respectively.
(2)Disclose the accounting treatment when in the two consecutive fiscal years, buying and then
sell, or selling to buy another for the same subsidiary.
N/A
7,Cash and cash equivalent recognition
Cash comprise cash on hand, deposits that can be readily drawn on demand, and short-term and highly liquid
investments that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value.
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8,Foreign currency translation
(1)Foreign currency translation
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the dates of the
transactions.
(2)Foreign currency translation
At the balance sheet date, monetary items denominated in foreign currencies are translated into RMB using
the spot exchange rates on the balance sheet date. Exchange differences arising from these translations are
recognised in profit or loss for the current period, except for those attributable to foreign currency borrowings
that have been taken out specifically for the acquisition or construction of qualifying assets, which are
capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies that are
measured at historical costs are translated at the balance sheet date using the spot exchange rates at the
date of the transactions. The effect of exchange rate changes on cash is presented separately in the cash
flow statement.
9,Financial Instruments
Please refer to next paragraphs
(1)Classification of financial assets
Financial assets are classified into the following categories at initial recognition: financial assets at fair value
through profit or loss, receivables, available-for-sale financial assets and held-to-maturity investments. The
classification of financial assets depends on the Group’s intention and ability to hold the financial assets. The
Group currently holds the financial assets including receivables. Receivables, including notes receivables,
accounts receivable and other receivables, are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market.
(2)Recognition and measurement
A. Financial assets are recognised at fair value on the balance sheet when the Group becomes a party to the
contractual provisions of the financial instrument. Receivables are measured at amortised cost using the
effective interest method.
B. Financial liabilities are classified into the following categories at initial recognition: financial liabilities at fair
value through profit or loss and other financial liabilities. The financial liabilities of the Group mainly comprise
other financial liabilities, including payables and borrowings:
a. Payables, including notes payable, accounts payable and other payables, are recognised initially at fair
value and subsequently measured at amortised cost using the effective interest method.
b. Borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently carried
at amortised costs using the effective interest method.
c. Other financial liabilities with maturities no more than one year are classified as current liabilities. Other
financial liabilities with maturities over one year but are due within one year at the balance sheet date are
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
classified as the current portion of non-current liabilities. Others are classified as non-current liabilities.
(3)Recognition and measurement basis of financial asset transposition
Recognition and measurement basis of financial asset transposition:
A. A financial asset is derecognised when any of the below criteria is met: (i) the contractual rights to receive
the cash flows from the financial asset expire; (ii) the financial asset has been transferred and the Group
transfers substantially all the risks and rewards of ownership of the financial asset to the transferee; or (iii) the
financial asset has been transferred and the Group has not retained control of the financial asset, although
the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset.
B. When commercial asset derecognized, the difference between carrying amount of the asset and
consideration received is recognized in profit and loss for the current period.
(4)Financial liability derecognised
A financial liability is derecognised or partly derecognised when the current obligation is discharged or partly
discharged. The difference between the carrying amount of the financial liability or the derecognised part of
the financial liability and the consideration paid is recognised in profit or loss.
(5)Recognition basis of financial assets and financial liabilities’ fair value
N/A
(6)Impairment of financial assets
N/A
(7)State the basis for the change of intention and ability when reclassification from
held-to-maturity investments to available-for-sale financial assets.
N/A
10. Receivables
(1)Receivables with amounts those are individually significant and subject to separate
assessment for provision for bad debts
The criterion for determing “individually significant” amounts Any individual amount is more than RMB 5 million.
The amount of the present value of the future cash flows
The method of providing for bad debts for those individually
expected to be derived from the receivable below its
significant amounts
carrying amount
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(2)Receivables that are subject to provision for bad debts on the grouping basis
provision for bad debts on
Grouping name Basis for the Groupings
the grouping basis
Receivables with amounts that are not individually
significant and those receivables that have been
individually assessed for impairment and have not been
found impaired are classified into certain groupings based
Based on the ageing of
Aging Groupings on their credit risk characteristics.The provision for bad
receivables
debts is determined based on the historical loss experience
for the groupings of receivables with similar credit risk
characteristics, taking into consideration of the current
circumstances.
In the Groupings, The adopting aging analysis method:
√ Applicable □ Not applicable
Provision ratios used for Provision ratios used for other receivables
Aging
accounts receivables (%) (%)
Within 1 year 0% 0%
1 to 2 years 5% 5%
2 to 3 years 10% 10%
More than 3 years 20% 20%
3 to 4 years 20% 20%
4 to 5 years 20% 20%
More than 5 years 20% 20%
In the groups，adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups，adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(3)Receivables with amounts those are not individually significant but subject to separate
assessment for provision for bad debts
The reason for making separate assessment for provision for bad debts:
there exists objective evidence that the Group will not be able to collect the amount under the original terms of
the receivable
The provision for bad debts:
based on the amount of the present value of the future cash flows expected to be derived from the receivable
below its carrying amount.
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11,Inventories
(1)Classification
Inventories include raw materials, work in progress, finished goods and turnover materials, and are measured
at the lower of cost and net realizable value.
(2)Costing of inventories
□First-in first-out method √ Weighted averages method □Specific identification method □ Others
Cost is determined on the weighted average method. The cost of finished goods and work in progress
comprises raw materials, direct labor and an allocation of systematically allocated overhead expenditures
incurred based on normal operating capacity.
(3)Basis for determining net realizable values of inventories and method for making provision for
decline in the value of inventories
Provisions for declines in the value of inventories are determined at the excess amount of the carrying value
of the inventories over their net realizable value. Net realizable value is determined based on the estimated
selling price in the ordinary course of business, less the estimated costs to completion and estimated costs
necessary to make the sale and related taxes.
(4)Inventory System:
√Perpetual inventory system □Periodic inventory system □ Others
The Group adopts the perpetual inventory system.
(5)Amortization methods of low value consumables and packaging materials
Turnover materials include low value consumables and packaging materials, which are expensed when
issued.
12,Long-term equity investments
(1)Determination of investment cost
For long-term equity investments acquired through a business combination: for long-term equity investments
acquired through a business combination involving enterprises under common control, the investment cost
shall be the absorbing party’s share of the carrying amount of owners’ equity of the party being absorbed at
the combination date; for long-term equity investment acquired through a business combination involving
enterprises not under common control, the investment cost shall be the combination cost.
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(2)Subsequent measurement and recognition of related profit and loss
A. For long-term equity investments accounted for using the cost method, they are measured at the initial
investment costs, and cash dividends or profit distribution declared by the investees are recognised as
investment income in profit or loss.
B. For long-term equity investments accounted for using the equity method, where the initial investment cost
of a long-term equity investment exceeds the Group’s share of the fair value of the investee’s identifiable net
assets at the acquisition date, the long-term equity investment is measured at the initial investment cost;
where the initial investment cost is less than the Group’s share of the fair value of the investee’s identifiable
net assets at the acquisition date, the difference is included in profit or loss and the cost of the long-term
equity investment is adjusted upwards accordingly.
C. For long-term equity investments accounted for using the equity method, the Group recognises the
investment income according to its share of net profit or loss of the investee. The Group discontinues
recognising its share of net losses of an investee after the carrying amount of the long-term equity investment
together with any long-term interests that, in substance, form part of the investor’s net investment in the
investee are reduced to zero. However, if the Group has obligations for additional losses and the criteria with
respect to recognition of provisions under the accounting standards on contingencies are satisfied, the Group
continues recognising the investment losses and the provisions. For changes in owners’ equity of the investee
other than those arising from its net profit or loss, the Group records its proportionate share directly into
capital surplus, provided that the Group’s proportion of shareholding in the investee remains unchanged. The
carrying amount of the investment is reduced by the Group’s share of the profit distribution or cash dividends
declared by an investee. The unrealised profits or losses arising from the intra-group transactions amongst
the Group and its investees are eliminated in proportion to the Group’s equity interest in the investees, and
then based on which the investment gains or losses are recognised. For the loss on the intra-group
transaction amongst the Group and its investees attributable to asset impairment, any unrealised loss is not
eliminated.
(3)Basis for determing existence of control, jointly control or significant influence over investees
A. Control is the power to determine the financial and operating policies of the investee, through what can
receive future economic benefits from the business.
B. Significant influence is the power to participate in the financial and operating policy decisions of the
investee, but is not control or joint control over those policies.
(4)Impairment of long-term equity investments
The carrying amount of long-term equity investments in subsidiaries and associates is reduced to the
recoverable amount when the recoverable amount is less than the carrying amount (Note II (20)).
13,Investment properties
A. Investment properties, including land use rights that have already been leased out, buildings that are held
for the purpose of leasing, and buildings that are being constructed or developed for the purpose of leasing in
future, are measured initially at cost. Subsequent expenditures incurred in relation to an investment property
are included in the cost of the investment property when it is probable that the associated economic benefits
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will flow to the Group and their costs can be reliably measured; otherwise, the expenditures are recognised in
profit or loss in the period in which they are incurred.
B. The Group adopts the cost model for subsequent measurement of investment properties. Buildings and
land use rights are depreciated or amortized to their estimated net residual values over their estimated useful
lives. The estimated useful lives, the estimated net residual values that are expressed as a percentage of cost
and the annual depreciation (amortization) rates of investment properties are as follows:
Estimated useful lives Estimated residual value Annual
depreciation (amortization) rates
Buildings 20-35 years 5% 2.71% to 4.75%
Land use rights 30-50 years - 2.00% to 3.33%
C. When an investment property is transferred to owner-occupied properties, it is reclassified as fixed asset or
intangible asset at the date of the transfer. When an owner-occupied property is transferred out for earning
rentals or for capital appreciation, the fixed asset or intangible asset is reclassified as investment properties at
its carrying amount at the date of the transfer.
D. The investment property’s estimated useful life, net residual value and depreciation (amortisation) method
applied are reviewed and adjusted as appropriate at each year-end.
E. An investment property is derecognised on disposal or when the investment property is permanently
withdrawn from use and no future economic benefits are expected from its disposal. The net amount of
proceeds from sale, transfer, retirement or damage of an investment property after its carrying amount and
related taxes and expenses is recognised in profit or loss for the current period.
F. The carrying amount of an investment property is reduced to the recoverable amount if the recoverable
amount is below the carrying amount.
14,Fixed assets
(1)Recognition and initial measurement of fixed assets
A. Fixed assets comprise buildings, machinery and equipment, motor vehicles, other equipment and
leasehold improvements.
B. Fixed assets are recognised when they are probable that the related economic benefits will flow to the
Group and the cost can be reliably measured. Fixed assets purchased or constructed are initially measured at
cost at the time of acquisition. The fixed assets contributed by the State shareholders at the reorganisation of
the Company into a corporation entity are recognised based on the revaluated amounts approved by the
state-owned assets administration department.
C. Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is
probable that the associated economic benefits will flow to the Group and the related cost can be reliably
measured. The carrying amount of the replaced part is derecognised. All the other subsequent expenditures
are recognised in profit or loss in the period in which they are incurred.
(2)Recognition and initial measurement of fixed assets from financing lease
N/A
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(3)Depreciation methods of fixed assets
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their
estimated residual values over their estimated useful lives. For the fixed assets that have been provided for
impairment loss, the related depreciation charge is prospectively determined based upon the adjusted
carrying amounts over their remaining useful lives.
Annual
items Estimated useful lives Estimated residual value
depreciation rates
Buildings 20-35 years 5% 2.71% to 4.75%
Machinery and equipment 10-14 years 5% 6.79% to 9.5%
electronic equipment
Motor vehicles 5-10 years 5% 9.5% to 19%
Fixed asset improvements Within 5 years 0 Above 20%
Other equipment 5-10 years 5% 9.5% to 19%
fixed assets from financing
-- -- --
lease:
Incl: Buildings
Machinery and equipment
electronic equipment
Motor vehicles
Other equipment
(4)Testing and provision method of impairment of fixed assets
When the recoverable amount of the asset is less than its carrying amount, a provision for impairment and an
impairment loss are recognized for the amount by which the asset’s carrying amount exceeds its recoverable
amount.
(5)Other explanation
A fixed asset is derecognized on disposal or when no future economic benefits are expected from its use or
disposal. The amount of proceeds from disposal on sale, transfer, retirement or damage of a fixed asset net of
its carrying amount and related taxes and expenses is recognized in profit or loss for the current period.
15,Construction in progress
(1)Classification of construction in progress
Construction in progress is measured by the construction project.
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(2)Timing of construction in progress transferred to fixed assets
Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and
depreciation begins from the following month.
(3)Testing and provison method of impairment of construction in progress
The carrying amount of construction in progress is reduced to the recoverable amount when the recoverable
amount is less than the carrying amount
16,Borrowing costs
(1)Confirmed basis for capitalization of borrowing costs
The borrowing costs that is directly attributable to the acquisition and construction of a fixed asset that needs
a substantially long period of time for its intended use. Borrowing costs ceases when the asset under
acquisition or construction becomes ready for its intended use and the borrowing costs incurred thereafter are
recognized in profit or loss for the current period
(2)Period for capitalization of borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction of a fixed asset that
needs a substantially long period of time for its intended use commence to be capitalized and recorded as
part of the cost of the asset when expenditures for the asset and borrowing costs have been incurred, and the
activities relating to the acquisition and construction that are necessary to prepare the asset for its intended
use have commenced. The capitalization of borrowing costs ceases when the asset under acquisition or
construction becomes ready for its intended use and the borrowing costs incurred thereafter are recognized in
profit or loss for the current period.
(3)Suspended period for capitalization of borrowing costs
Capitalization of borrowing costs is suspended during periods in which the acquisition or construction of a
fixed asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or
construction is resumed.
(4)Calculation of capitalization of borrowing costs
A. For the specific borrowings obtained for the acquisition or construction of a fixed asset qualifying for
capitalization, the amount of borrowing costs eligible for capitalization is determined by deducting any interest
income earned from depositing the unused specific borrowings in the banks or any investment income arising
on the temporary investment of those borrowings during the capitalization period.
B. For the general borrowings obtained for the acquisition or construction of a fixed asset qualifying for
capitalization, the amount of borrowing costs eligible for capitalization is determined by applying the weighted
average effective interest rate of general borrowings, to the weighted average of the excess amount of
cumulative expenditures on the asset over the amount of specific borrowings. The effective interest rate is the
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rate at which the estimated future cash flows during the period of expected duration of the borrowings or
applicable shorter period are discounted to the initial amount of the borrowings.
17, Bearer biological assets
N/A
18, Oil and gas assets
N/A
19, Intangible assets
(1)The valuation methods of intangible assets
Intangible assets include land use rights, computer softwares, technology patents and trademarks, which
initially recognised at cost. Intangible assets contributed by state-owned shareholders during the company
reorganisation were recorded based on the valuation amount approved by the state-owned assets
supervision and management department. Intangible assets (sales network) acquired in business
combinations under common control were recorded based on the fair value at the acquisition date
(2)Adjustment basis for intangible asset with a finite useful life
items Expected useful life Basis
Land use rights 30 to 50 years A land use right granted by government with a infinite
useful life would not be amortized. Other land use
rights are amortised on the straight-line basis over
their approved useful period of 30 to 50 years. If the
acquisition costs of land use rights and the buildings
located thereon cannot be reliably allocated between
the land use rights and the buildings, all of the
acquisition costs are recognised as fixed assets.
Computer softwares 3 to 5 years Computer softwares purchased by the Group are
initially measured at cost, which are amortised on the
straight-line basis over their approved useful period
of 3 to 5 years.
Trademarks 5 to10years over their effective useful lives
Technology Patents 5 years over their effective useful lives
Sales Network Amortization over Sales network includes client relationship and
expected beneficial distribution channels, amortization over expected
period beneficial period
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(3)Adjustment basis for intangible asset without a definite useful life
A. The intangible asset rights from the contractual or other legal, but no definite useful life provide.
B. We cannot determine the period of intangible assets to bring economic benefits for the company although
we integrated with the industry or related experts ‘discussion.
(4)Impairment of intangible assets
The carrying amount of intangible assets is reduced to the recoverable amount when the recoverable amount
is less than the carrying amount
(5)The classification basis of expenditure on the research phase and expenditure on the
development phase
The expenditure on an internal research and development project is classified into expenditure on the
research phase and expenditure on the development phase based on its nature and whether there is material
uncertainty that the research and development activities can form an intangible asset at end of the project.
Expenditure on the research phase is recognized in profit or loss in the period in which it is incurred.
Expenditure on the development phase is capitalized only if all of the following conditions are satisfied:
(1) It is technically feasible to complete the intangible asset so that it will be available for use;
(2) Management intends to complete the intangible asset, and use or sell it;
(3) It can be demonstrated how the intangible asset will generate economic benefits;
(4) Adequate technical, financial and other resources to complete the development and the ability to use or
sell the intangible asset; and the expenditure attributable to the intangible asset during its development phase
can be reliably measured.
(6)The calculation of expenditure on an internal research and development project
Other development expenditures that do not meet the conditions above are recognized in profit or loss in the
period in which they are incurred. Development costs previously recognized as expenses are not recognized
as an asset in a subsequent period. Capitalized expenditure on the development phase is presented as
development costs in the balance sheet and transferred to intangible assets at the date that the asset is ready
for its intended use.
20,Long-term prepaid expenses
Long-term prepaid expenses include the expenditure for improvements to fixed assets under operating leases,
and other expenditures that have been made but should be recognized as expenses over more than one year
in the current and subsequent periods. Long-term prepaid expenses are amortized on the straight-line basis
over the expected beneficial period and are presented at actual expenditure net of accumulated amortization.
21, Asset transfer with conditions of repurchasing
N/A
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22, Expected liabilities
(1)Recognition of expected liabilities
N/A
(2)Measurement of expected liabilities
N/A
23, Share-based payment and equity instruments
N/A
24, Repurchase of shares of the company
N/A
25, Revenue recognition
A. Revenue recognition of sale of goods
Revenue from the sale of goods is recognized when significant risks and rewards of ownership of the goods
are transferred to the buyer, the Company retains neither continuing managerial involvement to the degree
usually associated with ownership nor effective control over the goods sold, and it is probable that the
economic benefit associated with the transaction will flow to the Company and the relevant revenue and costs
can be measured reliably.
B. Revenue recognition of transfer of asset use rights
Revenue is recognized when the economic benefits associated with the transaction will flow to the Group, the
related revenue and cost can be reliably measured; the interest income is determined by using the effective
interest method, based on the length of time for which the Group’s cash is used by others. The income from
an operating lease is recognized on a straight-line basis over the period of the lease.
C. Recognition of contract completion status using percentage-of-completion method to
recognize the revenue of Service income and Construction contracts revenue.
N/A
26. Government grants
(1)Types
Government grants are transfers of monetary or non-monetary assets from the government to the Group at nil
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consideration, including refund of taxes and financial subsidies, etc.
(2)Accounting treatment method
1, A government grant is recognized when the conditions attached to it can be complied with and the
government grant can be received. For a government grant in the form of transfer of monetary assets, the
grant is measured at the amount received or receivable. For a government grant in the form of transfer of
non-monetary assets, it is measured at fair value; if the fair value is not reliably determinable; the grant is
measured at nominal amount.
2, A government grant related to an asset is recognized as deferred income, and evenly amortized to profit or
loss over the useful life of the related asset. Government grants measured at nominal amounts are
recognized immediately in profit or loss for the current period.
3, For government grants related to income, where the grant is a compensation for related expenses or losses
to be incurred by the Group in the subsequent periods, the grant is recognized as deferred income, and
included in profit or loss over the periods in which the related costs are recognized; where the grant is a
compensation for related expenses or losses already incurred by the Group, the grant is recognized
immediately in profit or loss for the current period.
27,Deferred tax assets and deferred tax liabilities
A. Basis for deferred tax assets recognized
a. Deferred tax assets and deferred tax liabilities are calculated and recognized based on the differences
arising between the tax bases of assets and liabilities and their carrying amounts (temporary differences).
b. Deferred tax asset is recognized for the deductible losses that can be carried forward to subsequent years
for deduction of the taxable profit in accordance with the tax laws.
c. No deferred tax asset or deferred tax liability is recognized for the temporary differences resulting from the
initial recognition of assets or liabilities due to a transaction other than a business combination, which affects
neither accounting profit nor taxable profit (or deductible loss).
d. When it is probable that the temporary differences arising from investments in subsidiaries and associates
will be reversed in the foreseeable future and that the taxable profit will be available in the future against
which the temporary differences can be utilized, the corresponding deferred tax assets are recognized.
e. Deferred tax assets are only recognized for deductible temporary differences, deductible losses and tax
credits to the extent that it is probable that taxable profit will be available in the future against which the
deductible temporary differences, deductible losses and tax credits can be utilized.
f. At the balance sheet date, deferred tax assets are measured at the tax rates that are expected to apply to
the period when the asset is realized or the liability is settled.
B. Basis for deferred tax liabilities recognized
a. Deferred tax assets and deferred tax liabilities are calculated and recognized based on the differences
arising between the tax bases of assets and liabilities and their carrying amounts (temporary differences).
b. No deferred tax liability is recognized for a temporary difference arising from the initial recognition of
goodwill.
c. No deferred tax asset or deferred tax liability is recognized for the temporary differences resulting from the
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initial recognition of assets or liabilities due to a transaction other than a business combination, which affects
neither accounting profit nor taxable profit (or deductible loss).
d. Deferred tax liabilities are recognized for temporary differences arising from investments in subsidiaries
and associates, except where the Group is able to control the timing of the reversal of the temporary
difference, and it is probable that the temporary difference will not reverse in the foreseeable future.
e. At the balance sheet date, deferred tax liabilities are measured at the tax rates that are expected to apply to
the period when the asset is realized or the liability is settled.
28,Operating leases, Financing leases
A. Operating leases
Leases where a significant portion of the risks and rewards of ownership are retained by the leaser are
classified as operating leases. Lease payments under an operating lease are recognised on a straight-line
basis over the period of the lease, and are either capitalised as part of the cost of related assets or charged as
an expense for the current period.
B. Accounting treatment for financing leases
N/A
29, Available-for-sale financial assets
A. Recognition basis for available for sale assets
N/A
B. Accounting treatment for available for sale assets
N/A
30,Asset securitization business
N/A
31,Hedge accounting
N/A
32, Changing of main accounting policies, accounting estimations
Changing of main accounting policies, accounting estimations for this period
□ Yes √ No
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A. Changing of main accounting policies
Changing of main accounting policies for this period
□ Yes √ No
B. Changing of main accounting estimations
Changing of main accounting estimations for this period
□ Yes √ No
33,Correcting of accounting errors in the prior period
Correcting of accounting errors in the prior period for this period
□ Yes √ No
A. Retrospective Restatement
Accounting errors in the prior period for this period using retrospective restatement
□ Yes √ No
B. Prospective Application
Accounting errors in the prior period for this period using Prospective Application
□ Yes √ No
34. Other main accounting policies, accounting estimations, and preparing financial Statements
methods
A. Governmental medical reserve funds and specially approved reserving materials
Appointed by the PRC Government, China National Pharmaceutical Group Corporation (“CNPGC") is
responsible for purchasing, allocating and providing the governmental medical reserves, which include the
medical products, traditional Chinese medicine and medical appliances for nation-wide emergency rescue
and disaster relief. Appointed by the Government of Guangxi Province, Sinopharm Medicine Holding Nanning
Co., Ltd. (“Sinopharm Nanning”), a subsidiary of the Group, is responsible for purchasing, allocating and
providing the medical reserves, which include the medical products needed for common disease and
emergencies triggered by major disasters, epidemics and other situations in Guangxi Province. In accordance
with the regulation of CNPGC, as being the enterprise who bears the obligation for specially approved
medical reserving materials, the medical reserve funds received from the PRC Government or local
government are recognised in other Non-current liabilities. The Group reserves the specially approved
medical reserving materials according to the reserve program (by category and by quantity), applies dynamic
management and recognises in other non-current assets.
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B. Impairment of long-term assets
1,Fixed assets, construction in progress, intangible assets with finite useful lives, Long-term prepaid
expenses and investment properties measured using the cost model and long-term equity investments in
subsidiaries, joint ventures and associates are tested for impairment if there is any indication that an asset
may be impaired at the balance date. If the result of the impairment test indicates that the recoverable amount
of the asset is less than its carrying amount, a provision for impairment and an impairment loss are
recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the future
cash flows expected to be derived from the asset. Provision for asset impairment is determined and
recognised on the individual asset basis. If it is not possible to estimate the recoverable amount of an
individual asset, the recoverable amount of a group of assets to which the asset belongs is determined. A
group of assets is the smallest group of assets that is able to generate independent cash inflows.
2. Goodwill that is separately presented in the financial statements and intangible assets with infinite useful
lives are tested at least annually for impairment, irrespective of whether there is any indication that it may be
impaired. In conducting the test, the carrying value of goodwill is allocated to the related asset groups or
groups of asset groups which are expected to benefit from the synergies of the business combination. If the
result of the test indicates that the recoverable amount of an asset group or group of asset groups, including
the goodwill allocated, is lower than its carrying amount, the corresponding impairment loss is recognized.
The impairment loss is first deducted from the carrying amount of goodwill that is allocated to the asset group
or group of asset groups, and then deducted from the carrying amounts of other assets within the asset
groups or groups of asset groups in proportion to the carrying amounts of other assets.
3. Once the above asset impairment loss is recognized, it will not be reversed for the value recovered in the
subsequent periods.
C. Employee benefits
Employee benefits mainly include wages or salaries, bonuses, allowances and subsidies, staff welfare,
annuity, social security contributions, housing funds, labour union funds, employee education funds and other
expenditures incurred in exchange for service rendered by employees
Where the Group terminates the employment relationship with employees before the end of the employment
contract or offers compensation for encouraging employees to accept voluntary redundancy, a provision for
termination benefits for the compensation arising from termination of the employment relationship with
employees is recognized, with a corresponding charge to profit or loss when the Group has made a formal
plan for termination of the employment relationship or an offer for voluntary redundancy which will be
implemented immediately and cannot be withdrawn by the Group unilaterally.
Except for compensation paid for termination of employment, employee benefits are recognised as salaries
and wages payable in the accounting period in which an employee has rendered service, as costs of assets
or expenses to whichever the employee service is attributable.
Certain subsidiaries have the defined benefit plans. The Group recognizes salaries, social insurance
premiums, etc., to be paid for the early retired employees, during the period from the date when the
employees stop rendering service to the normal retirement date, as employee benefits payable through
administrative expenses for the current period, when the above conditions for the recognition of termination
benefit plan are satisfied.
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The liability recognized in the balance sheet in respect of defined benefit plans is the present value of the
defined benefit obligation at the balance sheet date, together with adjustments for unrecognised actuarial
gains or losses and past service costs. The defined benefit t obligation is calculated annually by independent
actuaries using the projected unit credit method. The present value of the defined benefit obligation is
determined by discounting the estimated future cash outflows using interest rates of the RMB denominated
(the currency in which the benefits will be paid) PRC government bonds, and that have terms to maturity
approximating to the terms of the related pension liability.
D. Dividend distribution
Cash dividends distribution is recognised as a liability in the period in which it is approved by the annual
shareholders’ meeting.
E. Rendering of services
The Group provides freight service and storage service to external parties. The freights are recognized as
revenue right after the goods are transported to the place of delivery according to contracts or agreements,
received and confirmed by the purchasers. The storage charges are recognized as revenue on the basis of
services provided during the storage period. Other service revenue is ascertained from the providing of labor
services in accordance with the received or to-be-received price of the party that receives the labor services
as stipulated in the contract or agreement.
F. Customer Loyalty Programme
Shenzhen Zhijun Pharmaceutical Co., Ltd. (‘Zhijun Pharm’), a subsidiary of the group, offers loyalty points
programmes where points earned through the purchase of goods can only be redeemed for goods provided
by Zhijun Pharm or other free goods. The fair value of the consideration received or receivable in respect of
the initial sale is allocated between the award credits and the other components of the sale. Fair value of
award points is measured on the basis of the value of the awards (that is, goods or services) for which they
could be redeemed, the fair value of the award credits should take account of expected forfeitures as well as
the discounts or incentives that would otherwise be offered to customers who have not earned award credits
from an initial sale.
G. Segment information
The Group identifies operating segments based on the internal organisation structure, management
requirements and internal reporting system, and discloses segment information of reportable segments which
is determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (1) the
component is able to earn revenues and incur expenses from its ordinary activities; (2) whose operating
results are regularly reviewed by the Group’s management to make decisions about resources to be allocated
to the segment and to assess its performance, and (3) for which the information on financial position,
operating results and cash flows is available to the Group. If two or more operating segments have similar
economic characteristics and satisfy certain conditions, they are aggregated into one single operating
segment.
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H. Critical accounting estimates and judgments
The Group continually evaluates the critical accounting estimates and key judgments applied based on
historical experience and other factors, including expectations of future events that are believed to be
reasonable.
Critical accounting estimates and key assumptions
The critical accounting estimates and key assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next accounting year are outlined below:
(a) Accounting estimates on impairment of goodwill
The Group tests annually whether goodwill has suffered any impairment. The recoverable amount of asset
groups and groups of asset groups is the present value of the future cash flows expected to be derived from
them. These calculations require use of estimates.
If management revises the gross margin that is used in the calculation of the future cash flows of asset groups
and groups of asset groups, and the revised gross margin is lower than the one currently used, the Group
would need to recognise further impairment against goodwill and fixed assets.
If management revises the pre-tax discount rate applied to the discounted cash flows, and the revised pre-tax
discount rate is higher than the one currently applied, the Group would need to recognize further impairment
against goodwill and fixed assets.
If the actual gross margin/pre-tax discount rate is higher/lower than management’s estimates, the impairment
loss of goodwill previously provided for is not allowed to be reversed by the Group.
(b) Income taxes
The Group is subject to income taxes in numerous jurisdictions. There are many transactions and events for
which the ultimate tax determination is uncertain during the ordinary course of business. Significant judgment
is required from the Group in determining the provision for income taxes in each of these jurisdictions. The
Group recognizes income taxes in each jurisdiction based on estimates. Where the final tax outcome of these
matters is different from the amounts that were initially recorded, such differences will impact the income tax
and deferred tax provisions in the period in which such determination is made.
(c) Accounting estimates on impairment of accounts receivable
In accordance with the Group’s accounting policy of receivables (Note II (10)), the Group’s management tests
annually whether receivables have suffered any impairment, Impairment of receivables has been assessed
by taking into account the customers’ credit history and financial position together with the current market
conditions. Even if the Group’s management has made bad debt provision for the expected loss at its best
estimate, there is a possibility that changes in customers’ financial position or market conditions will alter the
result.
(d) Accounting estimates on impairment of inventories
In accordance with the Group’s accounting policy of provision for declined in value of inventories, the Group’s
management estimates the net realizable value of the inventory. Net realizable value is determined based on
the estimated selling price in the ordinary course of business, less the estimated costs to completion and
estimated costs necessary to make the sale and related taxes. Even if the Group’s management has made
stock provision for the expected impairment at its best estimate, there is a possibility that changes in market
conditions will alter the result.
(e) Accounting estimates on impairment of long-term assets
In accordance with the Group’s accounting policy of impairment of long-term assets, the Group’s
management tests annually whether long term assets with an indication of impairment have suffered any
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impairment, including fixed assets, construction in progress, intangible assets with finite useful lives,
Long-term prepaid expenses and investment properties measured using the cost model and long-term equity
investments in subsidiaries and associates. The calculation of present value of projection cash flows of these
long-term assets requires the use of accounting estimate which is similar to the impairment test of goodwill.
It is reasonably possible that outcomes based on current experience within the next financial year would be
significantly different, which will result in a significant impact on the carrying amount of those long-term assets
described above.
(f) Useful lives and residual values of property, plant and equipment
The Group determines the estimated useful lives and residual values and consequently the related
depreciation charges for its property, plant and equipment. This estimate is based on the historical experience
of the actual useful lives of property, plant and equipment of similar nature and functions.
Management will period review estimated useful lives and estimated residual values of fix assets. Periodic
review could result in a change in depreciable lives and residual values, and therefore depreciation expense
in the future years, when foreseeable economic lives or foreseeable residual values differ from estimated
useful lives or estimated residual values.
(g) Useful lives of sales network
The Group determines the estimated useful lives and consequently the related amortization charges for its
sales network. These estimates are based on the historical experience of the actual useful lives of sales
network of similar nature and functions and considering the current market environment in PRC and
estimations of future changes. Management will increase the amortization charges where useful lives are less
than previously estimated lives, it will write-off or write-down technically obsolete or non-strategic assets that
have been abandoned or sold. Actual economic lives may differ from estimated useful lives. Periodic review
could result in a change in amortizable lives and therefore amortization expenses in future years.
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(V)Taxation
1. The types and rates of taxes applicable to the Group are set out below:
Type Taxable base Tax rate
Taxable value added amount (Tax
payable is calculated using the
Value added tax (“VAT”) taxable sales amount multiplied by 0%,6%,3%,13% or 17%
the effective tax rate less deductible
VAT input of current period)
consumption tax N/A
Rental income, storage income and
Business tax 3%，5%
Freight income etc.
City maintenance and
VAT and business tax 7%
construction tax
Enterprise income tax(“EIT”) Taxable income 15%,20% or 25%
Education surcharge VAT and business tax 3%
Local Education Surcharge VAT and business tax 2%
Income tax rate for per Subsidiaries
1. Explanation for different income tax rate for the Subsidiaries
①15%: Shenzhen Zhijun Pharmaceutical Co., Ltd., Suzhou Zhijun Wanqing Pharmaceutical Co., Ltd. and Sinopharm
Medicine Holding Shenzhen Herbal Co., Ltd., subsidiaries of the Company, are New Technology Enterprises, and the
applicable tax rates are 15%.
②20%: Sinopharm Medicine Holding Guangxi Herbal Sliced Co., Ltd. is a small low-profit enterprise and the income tax
rate is 20%.
③25%:Other Subsidiaries are all 25%.
2. Explanation for different VAT for the Subsidiaries
①13% Applicable for herbal sales;
②6% For Sinopharm Medicne Holding Shenzhen Yanfeng Co., Ltd, biological products sales;
③0% For the Contraception products sales.
2,Tax preferences
In 2011, Shenzhen Zhijun Pharmaceutical Co., Ltd. and Suzhou Zhijun Wanqing Pharmaceutical Co., Ltd.,
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
subsidiaries of the Company, separately obtained the certificate of High and New Technology Enterprises
with effective period of 3 years. In 2009, Sinopharm Medicine Holding Shenzhen Herbal Co., Ltd. obtained the
certificate of High and New Technology Enterprises with effective period of 3 years. In 2011, Sinophram
Medicine Holding Shenzhen Herbal Co., Ltd. summited application with Shenzhen Baoshui Local Taxation
Bureau concerning tax exemption and reduction of high-tech enterprise. Under the relevant regulations of
article 28 of the Corporate Income Tax Law, the applicable tax rates for Shenzhen Zhijun Pharmaceutical Co.,
Ltd., Suzhou Zhijun Wanqing Pharmaceutical Co., Ltd. and Sinopharm Medicine Holding Shenzhen Herbal
Co., Ltd. are 15% (2011: 15%).
3, Others.
N/A
(VI)Business combinations and consolidated financial statements
Business combinations and consolidated financial statements conclusion:
China National Accord Medicines CO., LTD. has 30 subsidiaries, including 24 second subsidiaries and 6 third
subsidiaries.
1,Subsidiaries
China National Accord Medicines CO., LTD. has 30 subsidiaries, including:
24 secondary subsidiaries: China National Accord Medicines CO., LTD., Sinopharm Medicine Holding
Guangzhou Co., Ltd. (’Sinopharm Guangzhou’), Sinopharm Guangdong Accord Hengxing Pharmaceutical
Co., Ltd. (‘Sinipharm Hengxing'),Guangdong Huixin Investment Co., Ltd. (’Huixin Investment’),Sinopharm
Medicine Holding Foshan Co., Ltd. (’Sinopharm Foshan’),Sinopharm Medicine Holding Huizhou Co., Ltd.
(’Sinopharm Huizhou’),Sinopharm Medicine Holding Zhaoqing Co., Ltd.(“Sinopharm Zhaoqing”),Sinopharm
Medicine Holding Jiangmen Renren Co., Ltd.(“Sinopharm Jiangmen”), Sinopharm Medicine Holding
Guangdong Logistics Co., Ltd. (’Guangdong Logistics’),Sinopharm Medicine Holding Dongguan Co., Ltd. (’
Sinopharm Dongguan’), Sinopharm Medicine Holding Yuexing Co., Ltd. (‘Sinopharm Yuexing’),Sinopharm
Medicine Holding Zhanjiang Co., Ltd. (’Sinopharm Zhanjiang’),Sinopharm Medicine Holding Meizhou Co., Ltd.
(’Sinopharm Meizhou’),Sinopharm Medicine Holding Shenzhen Logistics Co., Ltd.(“Shenzhen
Logistics”),Sinopharm Medicine Holding Shenzhen Jianmin Co., Ltd.(“Sinopharm Jianmin”),Sinopharm
Medicine Holding Shenzhen Yanfeng Co., Ltd. (“Sinopharm Yanfeng”),Sinopharm Medicine Holding
Shenzhen Material Co., Ltd.(“Sinopharm Material”),Guangdong Accord Pharmaceutical Vocational Skills
Training Center (’Training Center’), Sinopharm Medicine Holding Shenzhen Herbal Co., Ltd. (“Shenzhen
Herbal”),Shenzhen Zhijun Pharmaceutical Co., Ltd.(“Zhijun Pharm”),Shenzhen Zhijun Trade Co.,
Ltd.(“Zhijun Trade”),Suzhou Zhijun Wanqing Pharmaceutical Co., Ltd. (“Suzhou Wanqing”),Sinopharm
Medicine Holding Liuzhou Co., Ltd. (’Sinopharm Liuzhou’),Sinopharm Medicine Holding Guangxi Co., Ltd. (’
Sinopharm Guangxi’), Shenzhen Medicine Trade Co., Ltd.
6 third subsidiaries: Sinopharm Medicine Holding Guangxi Herbal Sliced Co., Ltd.(“Guangxi
Herbal”).,Sinopharm Medicine Holding Wuzhou Co., Ltd.(“Sinopharm Wuzhou”),Sinopharm Medicine Holding
Guangxi Logistics Co., Ltd. (‘Guangxi Logistics’),Sinopharm Medicine Holding Yulin Co., Ltd.(“Sinopharm
Yulin”),Sinopharm Medicine Holding Baise Co., Ltd.(“Sinopharm Baise”), Sinopharm Medicine Holding Guilin
Co., Ltd.(“ Sinopharm Guilin Co., Ltd.”)。
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(1)Subsidiaries acquired under set up or the means such as investment
Newly setup subsidiaries Sinopharm Baise and Sinopharm Guilin.
Currency: RMB
Subsidiari Subsidi Place Nature of Registered Currency Principal activities Year-End Other Equity Votin Cons Minor Loss The balance
es Name aries of business capital balance of assets interest g olidat ity shared between current
type regist investment constitut held rights ed or intere by losses assumed
ration e (%) held not sts minorit by minority
investme (%) y shareholders’
nt in interest deducted from
substanc s owners’ equity
e belongs to parent
company and the
minority
shareholders’
attributable share
of owners’ equity
at the opening
balance
Sinophar Wholly Baise Commerci 10,000,00 CNY Chinese herbs, 10,000,00 0 100% 100 Yes 0 0 0
m Baise owned al 0 medicine, Chinese 0 %
subsidi Herbal Medicine,
ary chemical raw materials
and their preparations,
antibiotics, biochemical
medicines, biological
items (except
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vaccines),
psychotropic
substances, the
Narcotic Drugs
Sinophar Wholly Guili Commerci 10,000,00 CNY Chinese herbs, 10,000,00 0 100% 100 Yes 0 0 0
m guilin owned n al 0 medicine, Chinese 0 %
subsidi Herbal Medicine,
ary chemical raw materials
and their preparations,
antibiotics, biochemical
medicines, biological
items (except
vaccines), the second
class of psychotropic
drugs, medical toxic
drugs, etc.
Other explanation for subsidiaries acquired under set up or the means such as investment
N/A
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(2)Subsidiaries acquired under common control
Zhijun Pharm, Sinopharm Jianmin, Shenzhen Medicine Trade Co., Ltd. (‘Shenzhen Trade’) (i), Sinopharm
Material, Zhijun Trade, Shenzhen logistics, Training Center, Sinopharm Hengxing, Sinopharm Yulin(Note
2), Sinopharm Liuzhou, Guangxi Herbal, Huixin Investment, Sinopharm Foshan, Sinopharm
Yuexing,Guangdong Logistics, Sinopharm Guangxi, Guangxi Logistics, Shenzhen Herbal, Sinopharm
Wuzhou.
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Unit:RMB
Subsi Subsidiar Place of Nature of Regist Currency Principal Year Other Equit Voti Consoli Mino Loss The balance
diarie ies type registrati business ered activities -End assets y ng dated rity share between current
s on capital bala constitu inter right or not inter d by losses assumed
name nce te est s ests minori by minority
( RMB
of investm held held ty shareholders’
’0000)
inve ent in (%) (%) intere deducted from
stme substan sts owners’ equity
nt ce belongs to parent
company and the
minority
shareholders’
attributable share
of owners’ equity
at the opening
balance
Zhijun Wholly Shenzhe Manufact 200,0 CNY Original chemical 237, 0 100 100 Yes 0 0 0
Phar owned n uring 00,00 medicine 062, % %
m subsidiary 0 manufacture, 000
Chinese patent
medicine
processing,
chemical raw
material of
medicine, the
imports and
exports business
which transacted
according to
examined and
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approved
certificate
Sinop Wholly Shenzhe Commerci 5,000, CNY Wholesale of 53,4 0 100 100 Yes 0 0 0
harm owned n al 000 chemical agent, 83,0 % %
Jianm subsidiary antibiotics agent, 00
in chemical and
biological agent,
blood products,
raw material of
chemical product,
Chinese
medicine and
diagnosis
products
Shen Wholly Shenzhe Commerci 1,880, CNY Wholesale and 8,47 0 100 100 Yes 0 0 0
zhen owned n al 000 retail of drugs 9,00 % %
Medic subsidiary and textiles 0
ine
Trade
Co.,
Ltd.
(‘She
nzhen
Trade’
) (i)
Sinop Wholly Shenzhe Commerci 6,000, CNY Chinese patent 8,16 0 100 100 Yes 0 0 0
harm owned n al 000 medicine, 7,00 % %
Materi subsidiary western 0
al medicine,
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD
medicine
treatment
apparatus
Zhijun Wholly Shenzhe Commerci 1,890, CNY Purchase and 3,73 0 100 100 Yes 0 0 0
Trade owned n al 000 sale of Chinese 4,00 % %
subsidiary traditional 0
medicinal
materials,
Chinese patent
medicine,
chemical raw
material for
medical
treatment,
antibiotic
preparation,
chemical
medicine
preparation etc.
Shen Wholly Shenzhe Service 1,000, CNY Storage service, 1,01 0 100 100 Yes 0 0 0
zhen owned n 000 convey, 9,00 % %
logisti subsidiary liquidation of 0
cs cargo external
package and
common
transportation of
road
Traini Wholly Shenzhe Service 30,00 CNY Training service 30,0 0 100 100 Yes 0 0 0
ng owned n 0 00 % %
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD
Ce subsidiary
nte
r
Sinop Wholly Guangzh Commerci 400,0 CNY Chinese patent 483, 0 100 100 Yes 0 0 0
harm owned ou al 00,00 medicine, 888, % %
Guan subsidiary 0 chemical 000
gzhou medicine
preparation,
antibiotics,
biochemical
medicine,
biological
products,
diagnosis
medicine,
treatment
diagnosis
biological
products,
finalized packing
food, chemical
products,
self-support and
surrogate the
imports and
exports of various
merchandise and
skills.
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Sinop Wholly Guangzh Commerci 40,00 CNY Drugs, medical 37,1 0 100 100 Yes 0 0 0
harm owned ou al 0,000 apparatus sales 42,0 % %
Heng subsidiary 00
xing
Sinop Wholly Yulin Commerci 5,000, CNY Drug sales 0 0 100 100 Yes 0 0 0
harm owned al 000 % %
Yulin subsidiary
Sinop Wholly Liuzhou Commerci 20,53 CNY Chinese 22,2 0 51% 51 Yes 31,2 0 0
harm owned al 0,600 traditional 06,0 % 55,6
Liuzh subsidiary medicinal 00 61.6
ou materials, 9
Chinese patent
medicine,
Chinese
traditional
medicine in
pieces, chemical
raw material,
chemical
medicine
preparation,
antibiotics,
biochemical
drugs,
psychotropic
drugs, chemical
raw material drug
and its
preparation. (that
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involving specific
examination and
approve should
be operated
based on the
scope that
checked and
ratified by the
license)
Guan Share Liuzhou Manufact 2,000, CNY Manufacturing 0 51% 100 Yes 0 0 0
gxi holding uring 000 and sales of %
Herba subsidiar Chinese herbal
l y pieces
Huixin Wholly Guangzh Service 5,000, CNY Project 64,4 0 100 100 Yes 0 0 0
Invest owned ou 000 investment, 17,0 % %
ment subsidiary property 00
management and
leasing, medical
information
consultancy, car
park
management
Sinop Wholly Foshan Commerci 10,00 CNY Drug sales 14,9 0 100 100 Yes
harm owned al 0,000 95,0 % %
Fosha subsidiary 00
n
Sinop Wholly Guangzh Commerci 30,00 CNY Sales of medicine 43,4 0 100 100 Yes 0 0 0
harm owned ou al 0,000 and medical 59,0 % %
Yuexi subsidiary treatment 00
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD
ng apparatus
Guan Wholly Guangzh Service 5,000, CNY Storage loading 5,59 0 100 100 Yes 0 0 0
gdong owned ou 000 and unloading 6,00 % %
Logist subsidiary 0
ics
Sinop Wholly Nanning Commerci 100,0 CNY Drug sales 104, 0 100 100 Yes 0 0 0
harm owned al 00,00 049, % %
Guan subsidiary 0 000
gxi
Guan Wholly Nanning Service 7,100, CNY Storage loading 0 100 100 Yes 0 0 0
gxi owned 706.8 and unloading, % %
Logist subsidiary 8 consultation
ics service
Shen Wholly Shenzhe Manufact 50,00 CNY Manufacturing of 48,0 0 100 100 Yes 0 0 0
zhen owned n uring 0,000 granules, lotion, 81,0 % %
Herba subsidiary tablet, capsule, 00
l oral liquid and
mixture, and
syrup;
manufacturing
and sale of hair
products, bath
foam and
cosmetics, and
detergent
(antibiosis
washing liquid);
manufacturing of
plastic bottle;
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manufacturing
and sale of health
food.
Sinop Share Wuzhou Commerci 3,300, CNY Chinese herbs, 3,15 0 99.7 100 Yes -346. 0 0
harm holding al 000 medicine, 0,00 % % 07
Wuzh subsidiar Chinese Herbal 0
ou y Medicine,
chemicals and
their
preparations,
antibiotics,
biochemical
medicines,
biological
products, medical
toxic drugs,
anabolic agents
and peptide
hormones
medicines
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Other explanation for subsidiaries acquired under common control:
Note1: Shenzhen Trade ceased its operation in 2003.
Note2:Sinopharm Yulin, a former wholly owned subsidiary of the Company, became wholly owned of Sinopharm Guangxi on January 1st,2012, is indirextly
held of 100%in equity by the Company.
Note3:Guangxi Herbal, a wholly owned subsidiary of Sinopharm Liuzhou, is indirectly held of 51% in equity by the Company.
Note4:Guangxi Logistics, a wholly owned subsidiary of Sinopharm Guangxi, is indirectly held of 100% in equity by the Company.
(3)Subsidiaries acquired not under common control
Suzhou Wanqing, Sinopharm Dongguan. Sinopharm Zhanjiang,Sinopharm Yanfeng, Sinopharm Meizhou, Sinopharm Huizhou, Sinopharm Zhaoqing,
Sinopharm Jiangmen.
Currency: RMB
The balanc
current loss
assumed by
Other
shareholde
assets
Loss deducted fr
constitut Voting
Registered Year-End Equity shared owners’ equ
Subsidiari Subsidiary Place of Nature of e rights Consolidat Minority
capital Currency Principal activities balance of interest by belongs to
es name Type registration business investme held ed or not interests
investment held (%) minority company a
nt in (%)
interests minority sha
substanc
attributable
e
share of ow
equity at th
opening
Suzhou Share Suzhou Manufa 80,000,000 CNY Production and sales of 134,250,00 0 75% 75% Yes 22,961 0
Wanqin holding cturing general raw materials of 0 ,028.5
g subsidi medicine, raw medicine 5
ary and preparation of
cephalosporin; do export
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business of production and
technology of the Company
Sinopha Wholly Dongguan Comme 10,000,000 CNY Wholesales of Chinese 9,942,000 0 100% 100% Yes 0 0
rm owned rcial traditional medicinal
Donggu subsidia materials, Chinese patent
an ry medicine, Chinese
traditional medicine in
pieces, chemical raw
material; sales of daily
general merchandise and
heath protection food
Sinopha Wholly Zhanjiang Comme 15,000,000 CNY Wholesale of medicine 15,769,900 0 100% 100% Yes 0 0
rm owned rcial
Zhanjia subsidia
ng ry
Sinopha Share Shenzhen Comme 30,000,000 CNY Wholesale of medicine 38,207,800 0 51% 51% Yes 24,627 0
rm holding rcial ,430.7
Yanfeng subsidi 9
ary
Sinopha Wholly Meizhou Comme 1,200,000 CNY Wholesale of medicine 4,481,900 0 100% 100% Yes 0 0
rm owned rcial
Meizho subsidia
u ry
Sinopha Wholly Huizhou Comme 7,000,000 CNY Wholesale of medicine 5,644,200 0 100% 100% Yes 0 0
rm owned rcial
Huizhou subsidia
ry
Sinopha Wholly Zhaoqing Comme 2,000,000 CNY Chinese herbs, medicine, 3,542,000 0 100% 100% Yes 0 0
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD
rm owned rcial Chinese Herbal Medicine,
zhaoqin subsidia chemicals and their
g ry preparations, antibiotics,
biochemical medicines,
biological products (except
vaccines), psychotropic
drugs, narcotic drugs,
medicinal toxic drugs,
anabolic agents and
peptide hormones, drugs,
etc.
Sinopha Wholly Jiangmen Comme 10,000,000 CNY Chinese herbs, medicine, 40,900,000 0 100% 100% Yes 0 0
rm owned rcial Chinese Herbal Medicine,
Jiangm subsidia chemicals and their
en ry preparations, antibiotics,
biochemical medicines,
biological products (except
vaccines), psychotropic
drugs, narcotic drugs,
medicinal toxic drugs,
anabolic agents and
peptide hormones, drugs,
etc.
Other explanation of subsidiaries acquired not under common control
N/A
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2,Special purpose entities, or the operating entity foster the control power through entrusted
with the operation or lessee
□ Applicable √ Not applicable
Other explanation for special purpose entities, or the operating entity foster the control power through
entrusted with the operation or lessee
N/A
3,Explantion for change of scope of consolidation
Explantion for change of scope of consolidation:
New acquisition subsidiaries for this period:Sinopharm Zhaoqing,Sinopharm Jiangmen,Sinopharm Wuzhou
New set-up subsidiaries:Sinopharm Baise,Sinopharm Guilin
√ Applicable □ Not applicable
There are 5 more subsidiaries for consolidation compared with last period because:
For the realization of the Twelve Five-Year Strategic Development Plan, expand market share, and vigorously
promote the epitaxial expansion mode.
There are no subsidiaries for consolidation reduce compared with last period because:
N/A
4, Newly incorporated into the main body of the scope of consolidation and no longer included in
the main body of the scope of consolidation during the reporting period
Newly incorporated into the main body of the scope of consolidation:Sinopharm Zhaoqing, Sinopharm
Jiangmen Sinopharm Wuzhou,Sinopharm Baise,Sinopharm Jiangmen, Sinopharm Guilin
Subsidiaries for newly incorporated into the main body of the scope of consolidation,special purpose entities,
or the operating entity foster the control power through entrusted with the operation or lessee
Currency: RMB
Name Net asset in the period-end Net profit for this peirod
Sinopharm Zhaoqing 2,475,950.25 10,291.78
Sinopharm Jiangmen 11,292,546.68 1,138,843.24
Sinopharm Wuzhou -115,353.36 9,616.04
Sinopharm Baise 10,000,211.89 211.89
Sinopharm Guilin 10,001,386.84 1,386.84
Subsidiaries no longer included in the main body of the scope of consolidation, special purpose entities, or the
operating entity foster the control power through entrusted with the operation or lessee during the reporting
period
N/A
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD
5,Business combinations under common control for this period
Currency: RMB
Judgement Cash flow from
Basis for Revenue from Net profit from operating
The actual
Business period-beginning period-beginning activities from
The merged party controller under
combinations to consolidation to consolidation period-beginning
common control
under common date date to consolidation
control date
under common
control China China National
Sinopharm
National Medicines 7,055,650.23 -240,695.14 -1,367,454.11
Wuzhou
Medicines Co.,Ltd.
Co.,Ltd.
Other explanation for business combinations under common control:
N/A
6,Business combinations not under common control for this period
Currency: RMB
The merged party Goodwill amount Goodwill calculation method
combination cost 5,060,000.00RMB - the
acquiree's identifiable net assets at fair
Sinopharm Zhaoqing 2,594,341.53
value on combination date 2,465,658.47
=Goodwill 2,594,341.53.
combination cost 56,000,000.00 - the
acquiree's identifiable net assets at fair
Sinopharm Jiangmen 21,192,317.73
value on combination date
34,807,682.27=Goodwill 21,192,317.73
Other explanation for business combinations not under common control for this period:
N/A
7, Subsidiaries reduced by selling equities without control right during the reporting period
N/A
8, The counter purchases in the reporting period
N/A
9, Mergers in the reporting period
N/A
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD
10, Exchange rates of major items in financial statements for foreign entities
N/A
VII Notes to the consolidated financial statements
1. Cash at bank and on hand
30 June 2012 31 December 2011
Item Foreign Exchange Foreign Exchange
RMB RMB
currency rate currency rate
Cash on hand: -- -- 67,571.77 -- -- 48,381.59
RMB -- -- 67,571.77 -- -- 48,381.59
Cash at bank： -- -- 868,490,566.82 -- -- 907,835,780.55
RMB -- -- 868,490,541.75 -- -- 907,835,721.38
HKD 30.75 0.82 25.07
USD 9.17 6.453 59.17
Other cash balances： -- -- 26,468,409.99 -- -- 45,066,005.42
RMB -- -- 26,468,409.99 -- -- 45,066,005.42
Total -- -- 895,026,548.58 -- -- 952,950,167.56
As at 30 June 2012, except a deposit of HKD which was equivalent to RMB25.07 (31 December 2011: USD deposit
equivalent to RMB59.17), all other cash at bank and on hand are in RMB. Other cash balances represent
RMB26,468,409.99 of deposits for the purpose of applying for bank acceptance notes (31 December 2011:
RMB25,066,005.42 of deposits for the purpose of applying for bank acceptance notes and RMB20,000,000.00 of the
tem por ar y c ap ital depos ites of Sino pharm Nan ni ng for the es tablis hmen ts of ne w subsi dia ries ).
2. Financial assets held for trading
(1) Financial assets held for trading
□Applicable √Not applicable
(2) Financial assets held for trading with limited use
□Applicable √Not applicable
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD
(3) Hedging instruments and notes to relevant hedging transaction
□Applicable √Not applicable
3. Notes receivable
(1) The notes receivable by category are analysed below:
Categories 30 June 2012 31 December 2011
Bank acceptance notes 272,877,889.51 252,793,459.39
Trade acceptance notes 332,150,999.81 282,129,281.91
Total 605,028,889.32 534,922,741.3
(2) Notes receivable which have been pledged as security at the end of the period:
□Applicable √Not applicable
(3) Notes receivable reclassified to accounts receivable due to the drawers' inability to settle the
note on maturity, and notes endorsed by the Company to other parties which are not yet due at
the end of the period:
Notes receivable reclassified to accounts receivable due to the drawers' inability to settle the note on maturity
□Applicable √Not applicable
The top five notes receivable are analysed as below.
Issue date Expiry date Amount Remark
General Hospital of Guangzhou
Military Command of PLA 6 June 2012 6 September 2012 14,768,782.62 Trade acceptance notes
Guangdong Provincial People's
Hospital 14 June 2012 14 October2012 5,486,233.58 Trade acceptance notes
General Hospital of Guangzhou
Military Command of PLA 26 June 2012 26 September 2012 4,996,767.11 Trade acceptance notes
Guangdong Provincial People's
Hospital 10 May 2012 10 September 2012 4,307,560.8 Trade acceptance notes
Guangdong Yinhe
Pharmaceutical Co., Ltd. 28 May 2012 28 November 2012 3,000,000 Bank acceptance notes
Total -- -- 32,559,344.11 --
Note:
The top five note receivable are 32,559,344.11, 5.38% of total note receivable.
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD
Note to discounted undue notes receivable:
As at 30 June 2012, notes receivable including undue trade acceptance notes of RMB148,162,109.72 (31 December
2011: RMB154,597,987.59), and undue bank acceptance notes of RMB282,652,468.19 (31 December 2011:
RMB80,801,595.56) have been discounted.
4. Dividends receivable
□Applicable √Not applicable
5. Interest receivable
(1) Interest receivable
□Applicable √Not applicable
(2) Overdue interest
□Applicable √Not applicable
(3) Notes to interest receivable
□Applicable √Not applicable
6. Accounts receivable
(1) The accounts receivable and related provision for bad debts by category are analysed below:
30 June 2012 31 December 2011
Carrying amount Bad debt provision Carrying amount Bad debt provision
% of total % of total % of total % of total
Amount Amount Amount Amount
balance balance balance balance
individually significant
are subject to separate
40,107,637.53 0.91% 19,174,686.68 47.81% 34,637,925.19 0.96% 16,677,034.14 48.15%
impairment
assessment
receivable accounts within similar credit risk group
Aging 4,353,734,542.08 98.5% 460,028.09 0.01% 3,553,033,667.61 98.62% 212,211 0.01%
0%
Subtotal 4,353,734,542.08 98.5% 460,028.09 0.01% 3,553,033,667.61 98.62% 212,211 0.01%
Individually not
26,280,748.65 0.59% 5,751,391.31 21.88% 15,046,840.16 0.42% 5,322,792.12 35.37%
significant but
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD
individually
evaluated for
impairment
Total 4,420,122,928.26 -- 25,386,106.08 -- 3,602,718,432.96 -- 22,212,037.26 --
Notes to category of accounts receivable:
(1) Accounts receivables with amounts that are individually significant: Period end balance is great than 500 million.
(2) Accounts receivables that are subject to provision for bad debts on the grouping basis:
Accounts receivables with amounts that are not individually significant and those receivables that have been individually
assessed for impairment and have not been found impaired are classified into certain groupings based on their credit risk
characteristics. The provision for bad debts is determined based on the historical loss experience for the groupings of
receivables with similar credit risk characteristics, taking into consideration of the current circumstances.
A provision for impairment of accounts receivables is made based on the ageing of receivables at the following
percentage:
Provision ratios used for
accounts receivables
Within 1 year -
1 to 2 years 5%
2 to 3 years 10%
More than 3 years 20%
(3) Accounts receivables with amounts that are not individually significant but subject to separate assessment for
provision for bad debts: there exists objective evidence that the Group will not be able to collect the amount under the
original terms of the receivable.
As at 30 June 2012, impairment provision for accounts receivable individually significant are analysed as below:
√ Applicable □ Inapplicable
Carrying
Bad debt provsion Rate Assessment for impairment
amount
Disputed receivable with higher risk of
15,686,460.93 15,686,460.93 100%
Guangdong Liyuan Pharmaceutical Co. Ltd. recoverability.
Disputed receivable with higher risk of
7,348,181.43 779,734.43 10.61%
NanNing Second People's Hospital recoverability.
Disputed receivable with higher risk of
10,590,547.63 210,838.78 1.99%
LiuZhou LiuTie Central Hospital recoverability.
Beijing Shirentang Pharmaceutical Co., Ltd. 6,482,447.54 2,497,652.54 38.53% Disputed receivable
Total 40,107,637.53 19,174,686.68 --
Provisions for impairment of the receivables which have a similar risk group by using an ageing analysis are analysed
below:
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√ Applicable □ Inapplicable
30 June 2012 31 December 2011
Carrying amount Carrying amount
Bad debt
% of total Bad debt provision % of total
amount amount provision
balance balance
Within 1 year
-- -- -- -- -- --
4,347,493,017.59 99.86% 0 3,549,990,947.87 99.92% 0
Subtotal 4,347,493,017.59 99.86% 0 3,549,990,947.87 99.92% 0
1 to 2 years 4,058,806.94 0.09% 211,559.04 1,841,219.74 0.05% 92,061
2 to 3 years 1,880,742.64 0.04% 188,074.26 1,201,500 0.03% 120,150
Over 3 years 301,974.91 0.01% 60,394.79
Total 4,353,734,542.08 -- 460,028.09 3,553,033,667.61 -- 212,211
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision:
□Applicable √Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision
□Applicable √Not applicable
As at 30 June 2012, accounts receivable individually not significant but individually evaluated for impairment are analysed
below :
Carrying amount Bad debt provision Rate Assessment for
impairment
4,739,471.54 333,620.92 7.04% Uncertainty in
Longgang Central Hospital of recoverability under
Shenzhen legal process
4,456,371.28 670,476.15 15.05% Lawsuit progressing,
Peking University Shenzhen but probably cannot
Hospital recover the bad debt
4,657,006.34 1,434,789.46 30.81% Uncertainty in
The Second People's Hospital of recoverability under
Shenzhen legal process
3,742,512.44 150,786.50 4.03% Uncertainty in
recoverability under
The Third People’s Hospital legal process
1,366,392.40 7,177.72 0.53% Disputed receivable
with some risk of
The First People’s Hospital of Hechi recoverability
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997,915.83 11,688.32 1.17% Disputed receivable
with some risk of
The Red Cross Hospital of Wuzhou recoverability
829,149.55 12,682.17 1.53% Disputed receivable
with some risk of
The Red Cross Hospital of Liuzhou recoverability
773,956.27 773,956.27 100.00 Uncertainty in
Guangzhou Da Shenlin Medicine % recoverability under
Co., Ltd legal process
686,959.39 69,646.03 10.14% Uncertainty in
Shatang Centeral Health Center of recoverability under
Liuzhou legal process
4,031,013.61 2,286,567.77 56.72% Uncertainty in
recoverability under
Others legal process
Total 26,280,748.65 5,751,391.31 21.88% --
(2) Accounts receivable reversed or collected in the reporting period
√Applicable □Not applicable
Currency: RMB
provision for bad debts
Accounts receivable Receive or reverse
Basis for provision before received and Amount
type reason
reversed
Payment Receivable recover Aging 368,610.79 316,056.31
Total -- -- 368,610.79 --
As at 30 June 2012, accounts receivable individually significant or not significant but individually evaluated for impairment
are analysed below
Accounts receivable
Carrying amount Bad debts provision Reason
type
Guangxi zhuang Ageing of this account
autonomous region 46,065.66 46,065.66 100% receivable is over 3
medicines co years
The customer suffer
Wuxuan zhenjia pharm 61,064.32 61,064.32 100% bankrupt, unable repay
of receivable.
Total 107,129.98 107,129.98 -- --
(3) Accounts receivable written off in the period
□Applicable √Not applicable
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(4) Accounts receivable due from shareholders with more than 5% (including 5%) of the
Company’s equity interest are analysed as below:
√ Applicable □ Inapplicable
30 June 2012 31 December 2011
Carrying amount Bad debt provision Carrying amount Bad debt provision
Sinopharm Group 5,707,245.6 0 13,341,144.9 0
Total 5,707,245.6 0 13,341,144.9 0
(5) As at 30 June 2012, the top five accounts receivable by customer are analysed as below:
% of the total
Relationship with accounts
the Group Amount Ageing receivable
Center for Disease Control and Prevention of Guangdong
Province Third party 136,428,786.00 Within 1 year 3.09%
The Third Affiliated Hospital of ZhongShan University Third party 67,061,477.35 Within 1 year 1.52%
The First Affiliated Hospital of GuangXi Medical University Third party 63,793,560.29 Within 1 year 1.45%
Zhujiang Hospital of Southern Medical University Third party 47,483,249.06 Within 1 year 1.08%
GuangDong Province People's Hospital Third party 43,974,559.17 Within 1 year 1.00%
Total -- 358,741,631.87 -- 8.14%
(6) Accounts receivable due from related party
% of total
Relationship with the Company Amount accounts
receivable
Accounts receivable due from related party Related parties 238,168,565.18 5.39%
Total -- 238,168,565.18 5.39%
(7) Derecognized accounts receivable
Derecognized amount Profit or loss related to derecognition
Irrevocable factoring contracts 393,967,878.74 0
Total 393,967,878.74 0
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(8) Description of securitization on the accounts receivables
□Applicable √Not applicable
7. Other Receivables
(1) Other receivables and related provision for bad debts by category are analysed below:
30 June 2012 31 December 2011
Carrying amount Bad debt provision Carrying amount Bad debt provision
% of
% of total % of total % of total
Amount total Amount Amount Amount
amount amount amount
amount
Individually significant are
subject to separate 8,980,000 13.59% 8,980,000 100% 8,980,000 21.87% 8,980,000 100%
impairment assessment
Receivable accounts within similar credit risk group
Aging 48,770,440.75 73.78% 188,085.88 0.39% 24,168,535.85 58.85% 74,161.25 0.31%
Subtotal 48,770,440.75 73.78% 188,085.88 0.39% 24,168,535.85 58.85% 74,161.25 0.31%
Individually not significant
but individually evaluated 8,347,463.78 12.63% 4,071,413.06 48.77% 7,915,439.63 19.28% 3,353,793.65 42.37%
for impairment
Total 66,097,904.53 -- 13,239,498.94 -- 41,063,975.48 -- 12,407,954.9 --
Note: Note: The nature of other receivables including:
(1) Other receivables with amounts that are individually significant: Period end balance is great than 500
million.
(2) Other receivables that are subject to provision for bad debts on the grouping basis:
Other receivables with amounts that are not individually significant and those receivables that have been
individually assessed for impairment and have not been found impaired are classified into certain groupings
based on their credit risk characteristics. The provision for bad debts is determined based on the historical
loss experience for the groupings of receivables with similar credit risk characteristics, taking into
consideration of the current circumstances.
A provision for impairment of other receivables is made based on the ageing of receivables at the following
percentage:
Provision ratios used
for other receivables
Within 1 year -
1 to 2 years 5%
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2 to 3 years 10%
More than 3 years 20%
(3) Other receivables with amounts that are not individually significant but subject to separate assessment for
provision for bad debts: there exists objective evidence that the Group will not be able to collect the amount
under the original terms of the receivable.
.As at 30 June 2012, impairment provision for other receivables individually significant are analysed as below:
√ Applicable □ Not applicable
Bad debt Assessment for
Amount Rate
provision impairment
Uncertainty in
Shenzhen Yinghai Technology investment Co., Ltd. 8,980,000 8,980,000 100%
recoverability
Total 8,980,000 8,980,000 -- --
Provisions for impairment of the receivables which have a similar risk group by using an ageing analysis are analysed
below:
√ Applicable □ Not applicable
30 June 2012 31 December 2011
Carrying amount Carrying amount
Bad debt Bad debt
% of total % of total
amount provision amount provision
amount amount
Within 1 year
43,649,901.26 89.5% 0 20,723,468.05 85.75% 0
Subtotal 43,649,901.26 89.5% 0 20,723,468.05 85.75% 0
1 to 2 years 4,647,258.66 9.53% 140,757.79 3,439,603.8 14.23% 73,068.45
2 to 3 years 473,280.83 0.97% 47,328.09
Over 3 years 5,464 0.02% 1,092.8
Total 48,770,440.75 -- 188,085.88 24,168,535.85 -- 74,161.25
In the group, other accounts receivable that provisions for bad debts by balance percentage:
□Applicable √Not applicable
In the group, other accounts receivable that provisions for bad debts by other methods:
□Applicable √Not applicable
As at 30 June 2012, other receivables individually not significant but individually evaluated for impairment are analysed
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below:
√ Applicable □ Not applicable
Assessment for
Amount Bad debt provision Rate
impairment
Uncertainty in
1,157,860 1,157,860 100%
ShenZhen Health Food I&E Co. Ltd. recoverability
Uncertainty in
7,189,603.78 2,913,553.06 40.52%
Service fee etc. recoverability
Total 8,347,463.78 4,071,413.06 48.77% --
(2) Reversals and collections during the period
√Applicable □Not applicable
Currency: RMB
provision for bad debts
basis of provision for
Other Receivable content Receive or Reverse before received and Amount
bad debts
reversed
Deposit, bonds, etc Receive According to aging 210,338.25 15,699.81
Total -- -- 210,338.25 --
(3) Other receivables written off in the period
□Applicable √Not applicable
(4) Accounts receivable due from shareholders with more than 5% (including 5%) of the
Company’s equity interest are analysed as below
□Applicable √Not applicable
(5) Nature of other receivables with significant amount
% of the total
Amount Nature
other receivable
Receivable of equity
8,980,000 13.59%
ShenZhenShi YingHai Technology&Investment Co. Ltd. transaction
Guangdong Huize Investment Co., Ltd. 4,980,000 Compensation to be clearing 7.53%
GuangXi Autonomous Region Housing system
1,901,707.85 Payment made on behalf 2.88%
Reformed Department
Liuzhou Housing Fund Management Centre 1,708,508.47 Housing fund 2.58%
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Shanghai Novartis Trading Co., Ltd. 1,490,073.54 Service fee 2.25%
Total 19,060,289.86 -- 28.84%
Note: N/A
(6) As at 30 June 2012, the top five other receivables by customer are analysed below:
Relationship with % of the total other
Amount Ageing
the Group receivable
ShenZhenShi YingHai
Third party 8,980,000 13.59%
Technology&Investment Co. Ltd. Over 5 years
Guangdong Huize Investment Co., Ltd. Third party 4,980,000 Within 1 year 7.53%
GuangXi Autonomous Region Housing
Third party 1,901,707.85 2.88%
system Reformed Department Over 5 years
Liuzhou Housing Fund Management Centre Third party 1,708,508.47 Over 5 years 2.58%
Shanghai Novartis Trading Co., Ltd. Third party 1,490,073.54 Within 1 year 2.25%
Total -- 19,060,289.86 -- 28.84%
(7) Other receivables due from related party
Relationship with the company Amount % of the total other receivable
Sinopharm Group Medicine
Controlled by Sinopharm Group 1,215,000 1.84%
Logistic Co., Ltd.
Total -- 1,215,000 1.84%
(8) Derecognized of other receivables
□Applicable √Not applicable
(9) Description of securitization on the other receivables
□Applicable √Not applicable
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8. Advances to suppliers
(1) The ageing of advances to suppliers is analysed below:
30 June 2012 31 December 2011
Amount % of total balance Amount % of total balance
Within 1 year 55,887,027.34 96.23% 61,704,597.49 93.69%
1 to 2 years 1,862,742.23 3.21% 623,928.87 0.95%
2 to 3 years 127,331.01 0.22% 0 0%
Over 3 years 197,532.36 0.34% 3,529,434.95 5.36%
Total 58,074,632.94 -- 65,857,961.31 --
The illustration for the ageing of advances to suppliers:
As at 30 June 2012, the balance of advances to suppliers that ageing over one year is RMB2,187,605.60,
which is mainly deposits for patent Research and Development.
(2) As at 30 June 2012, the top five advances to suppliers by customer are analysed below:
Relationship with Reason for
Amount Date
the group unsettlement
Advances for
NCPC Hebei Huamin Pharmaceutical Co., Third party 4,050,969.6 27 April 2012
procurement
LTD
Guang dong South National Pharmaceutical Advances for
Related party 3,370,000 1 March 2012
Foreign Trade Co.,Ltd. procurement
Advances for
Qinghai Pharmaceutical factory Co., Ltd Related party 3,182,179 28 April 2012
procurement
Advances for
Sunflower Group Pharmaceutical Co., LTD Third party 2,604,470.5 21 June 2012
procurement
17 January Advances for
GLAXOSMITHKLINE LIMITED Third party 2,070,547.25
2012 procurement
Total -- 15,278,166.35 -- --
(3) Advances to suppliers due from shareholders with more than 5% (including 5%) of the
Company’s equity interest are analysed as below
□Applicable √Not applicable
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(4) Notes to advances to suppliers
Advances to suppliers are mainly related taxes and purchase.
9. Inventories
(1) Inventories by category are analysed as below:
30 June 2012 31 December 2011
Book value Provision Net book value Book value Provision Net book value
Raw materials 101,876,103.83 6,558,397.11 95,317,706.72 128,933,630.01 8,749,136.38 120,184,493.63
Work in progress 32,297,407.44 32,297,407.44 32,594,856.82 32,594,856.82
Finished goods 1,146,855,856.69 11,473,610.19 1,135,382,246.5 1,130,907,025.1 14,444,602.02 1,116,462,423.08
Turnover materials
Consumptive
biological assets
Consigned
1,605,877.04 1,605,877.04 2,379,345.2 2,379,345.2
processing material
Goods in transition 34,032,748.32 298,360.03 33,734,388.29 40,099,925.25 157,915.73 39,942,009.52
Low cost
1,387,627.71 1,387,627.71 857,373.23 857,373.23
consumable
Packaging materials 712,421.43 6,601.05 705,820.38 792,913.2 792,913.2
Total 1,318,768,042.46 18,336,968.38 1,300,431,074.08 1,336,565,068.81 23,351,654.13 1,313,213,414.68
(2) Provision for declines in value of inventories is analysed as below:
Decrease
31 December 2011 Increase 30 June 2012
Reversal Write-off
Raw materials 8,749,136.38 14,492.9 2,205,232.17 6,558,397.11
Work in progress
Finished goods 14,444,602.02 9,644,224.2 1,316,075.56 11,299,140.47 11,473,610.19
Turnover materials
Consumptive
biological assets
Consigned
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processing material
Goods in transition 157,915.73 298,360.03 157,915.73 298,360.03
Low cost
consumable
Packaging materials 18,413.58 11,812.53 6,601.05
Total 23,351,654.13 9,975,490.71 3,521,307.73 11,468,868.73 18,336,968.38
(3) Provision for decline in value of inventories
Reasons for reversal of
Reasons for provision Reversal of total inventories
provision
Cost higher than net Rising net realisable value of
Raw materials 2.16%
realisable value inventories higher than cost
Cost higher than net Rising net realisable value of
Work in progress 0.11%
realisable value inventories higher than cost
Finished goods 0%
Turnover materials 0%
Consumptive biological
0%
assets
Consigned processing Cost higher than net
0%
material realisable value
Cost higher than net
Goods in transition 0%
realisable value
Note to inventories: N/A
10. Other current assets
30 June 2012 31 December 2011
Corporate income tax to be deducted 39,482.38 1,785,503.23
VAT to be deducted 4,023,733.05 5,868,232.98
Total 4,063,215.43 7,653,736.21
Note to other current assets: N/A
11. Available-for-sale financial assets
(1) Available-for-sale financial assets
□Applicable √Not applicable
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(2) Available-for-sale equity instruments
□Applicable √Not applicable
12. Held-to-maturity investments
(1) Held-to-maturity investments
□Applicable √Not applicable
(2) Sales amounts of undue held-to-maturity investments during the period
□Applicable √Not applicable
13. Long-term receivables
□Applicable √Not applicable
14. Investment in joint venture and associates
Total
Total Total
net
Legal assets liabilitie
Registr Share Voting assets
repres Busine Curr Shari at s at Reven Net
Investee Type ation capita share( at
entativ ss ency ng(%) balanc balanc ue profit
place l %) balanc
e e sheet e sheet
e sheet
date date
date
I.Joint venture
II. Associate
Shenzhen Wanle sino-for
Pharmaceutical eign Yan 359,57 272,91 285,06
Shenz Manuf 19,54 35.19 33.33 632,48 50,570,
Co., Ltd. joint Zhigan USD 0,438.9 9,091.9 8,709.7
hen aturing 4,550 % % 9,530.9 426.44
venture g 8 2 8
s
Note: N/A
15. Long-term equity investments
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(1) Associates
Explanation for
the
Original inconsistence Accrual of
Accounting 31 December Increases/ Equity interest Voting rights Current cash
investment 30 June 2012 between equity Provision provision in
method 2011 (Decreases) held (%) held (%) dividend
cost interest held current year
and voting
rights held
Board of the
directors is the
highest decision
making
organization,
which is formed
Shenzhen
by 3
Wanle
Equity method 4,457,400 95,799,627.42 2,495,698.29 98,295,325.71 35.19% 33.33% shareholders 0 0 13,520,461.47
Pharmaceutic
of Wanle
al Co., Ltd.
Medical evenly,
each
shareholder
appoints 2
directors set up
the borad
Total -- 4,457,400 95,799,627.42 2,495,698.29 98,295,325.71 -- -- -- 0 0 13,520,461.47
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(2) Information of the limitation on the capability to transfer capital to investee
□Applicable √Not applicable
16. Investment properties
(1) Investment properties measured by cost
Increase in current Decrease in current
31 December 2011 30 June 2012
year year
A. Cost 172,885,351.28 4,269,156.45 682,657.05 176,471,850.68
1.Buildings 152,728,757.27 4,269,156.45 682,657.05 156,315,256.67
2.Land use rights 20,156,594.01 0 0 20,156,594.01
B. Accumulated
depreciation/ 85,420,421.58 4,724,047.78 654,559.3 89,489,910.06
amortisation
1.Buildings 83,682,458.72 4,527,372.09 654,559.3 87,555,271.51
2.Land use rights 1,737,962.86 196,675.69 0 1,934,638.55
C. Net book value 87,464,929.7 0 0 86,981,940.62
1.Buildings 69,046,298.55 0 0 68,759,985.16
2.Land use rights 18,418,631.15 0 0 18,221,955.46
D. Provision for
1,300,000 0 0 1,300,000
impairment loss
1.Buildings 1,300,000 0 0 1,300,000
2.Land use rights 0 0
F. Carrying amount 86,164,929.7 0 0 85,681,940.62
1.Buildings 67,746,298.55 0 0 67,459,985.16
2.Land use rights 18,418,631.15 0 0 18,221,955.46
January to June, 2012
Amount of depreciation and amortization 3,220,900.39
Amount of provision for impairment loss 0
(2) Investment properties measured by fair value
N/A
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17. Fixed assets
(1) Fixed assets
31 December Decrease in
Increase in current year 30 June 2012
2011 current year
A. Cost 945,127,066.76 40,528,309.05 27,362,936.1 958,292,439.71
Buildings 423,670,934.61 8,531,909.72 19,410,291.59 412,792,552.74
Machinery and equipment 321,122,580.44 23,340,427.88 3,656,107.31 340,806,901.01
Motor vehicles 54,663,635.74 962,562.29 1,630,024.2 53,996,173.83
Other 130,056,178.02 7,147,409.16 2,666,513 134,537,074.18
Leasehold improvements 15,613,737.95 546,000 16,159,737.95
31 December Increase in Accural in current Decrease in
-- 30 June 2012
2011 current year year current year
B. Accumulated depreciation 342,921,138.89 328,155.21 36,867,919.01 20,625,326.64 359,491,886.47
Buildings 97,277,640.3 8,178,822.07 13,514,330.95 91,942,131.42
Machinery and equipment 128,933,323.69 15,158,696.56 3,220,475.45 140,871,544.8
Motor vehicles 23,122,665.5 127,200.66 3,084,824.76 1,345,180.88 24,989,510.04
Other 83,325,003.85 200,954.55 9,679,682.86 2,545,339.36 90,660,301.9
Leasehold improvements 10,262,505.55 765,892.76 11,028,398.31
31 December
-- -- 30 June 2012
2011
C. Net book value 602,205,927.87 -- 598,800,553.24
Buildings 326,393,294.31 -- 320,850,421.32
Machinery and equipment 192,189,256.52 -- 199,935,356.21
Motor vehicles 31,540,970.24 -- 29,006,663.79
Other 46,731,174.4 -- 43,876,772.28
Leasehold improvements 5,351,232.4 -- 5,131,339.64
D. Provision 0 -- 0
Buildings 0 -- 0
Machinery and equipment 0 -- 0
Motor vehicles 0 -- 0
Other 0 -- 0
Leasehold improvements 0 -- 0
E. Carrying amount 602,205,927.87 -- 598,800,553.24
Buildings 326,393,294.31 -- 320,850,421.32
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Machinery and equipment 192,189,256.52 -- 199,935,356.21
Motor vehicles 31,540,970.24 -- 29,006,663.79
Other 46,731,174.4 -- 43,876,772.28
Leasehold improvements 5,351,232.4 -- 5,131,339.64
The depreciation chared in Six months ended 30 June 2012 are RMB36,867,919.01; In Six months ended 30 June 2012,
fixed assets transferred from construction in progress are RMB24,820,831.01.
(2) Idle fixed assets
□Applicable √Not applicable
(3) Fixed assets leased out under operating leases
□Applicable √Not applicable
(4) Fixed assets leased out under operating leases.
□Applicable √Not applicable
(5)Held-for-sale fixed asset
□Applicable √Not applicable
(6) Fixed assets of which certificates of title have not been obtained
□Applicable √Not applicable
18. Construction in progress
(1)
30 June 2012 31 December 2011
Book value Provisio Net book value Book value Provis Net book
n ion value
Zhijun Pharm Guanlan 56,362,027.08 56,362,027.08 34,454,871.59 34,454,871.59
Stage II Project
Guangxi Logistics Center 25,338,725.42 25,338,725.42 22,481,720.32 22,481,720.32
Project
Menstruum Recycling 14,832,852.18 14,832,852.18 15,141,346.09 15,141,346.09
Plant Project
Asepsis Materials Plant 14,830,665.89 14,830,665.89
Project
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD
Peinan Project 11,946,120.84 11,946,120.84 11,311,813.32 11,311,813.32
Chebei Project 8,515,595.20 8,515,595.2 7,515,595.20 7,515,595.20
Cefoxitin Plant 6,358,080.42 6,358,080.42 6,189,414.31 6,189,414.31
Improvement Project
Multifunctional 1,785,174.70 1,785,174.70 1,253,509.03 1,253,509.03
Warehouse Project
Reconstruction of 15,610,982.09 15,610,982.09 17,133,027.52 17,133,027.52
Wastewater Treatment
Project and others
Other projects 253,886.24 253,886.24 730,809.32 730,809.32
Total 141,003,444.1 0 141,003,444.17 131,042,773.5 0 131,042,772.5
7 9 9
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(2) Significant changes of construction in progress in Six months ended 30 June 2012 are below:
Borrowing
Cost up
Transfer to Accumulated cost Weighted
Current to date
Budget of 31 December Current year fixed assets Construction capitalized capitalized average Financed 30 June
year out of
project 2011 additions during currnet progress (%) borrowing in Six months interest rate by 2012
decreases budget
year cost ended 30 June (%)
(%)
2012
Asepsis Working
Materials Plant 59,340,000 14,830,665.89 1,545,360.81 16,376,026.7 0 100% 99% 1,509,020.73 1,357,663.87 5.99% capital and 0
Project borrowings
Nanning Working
Logistics 154,667,633 22,481,720.32 5,170,423.89 2,120,256.40 193,162.39 82% 99% 5,739,988.86 252,779.33 6.71% capital and 25,338,725.42
Center Project borrowings
Menstruum
Working
Recycling 18,216,000 15,141,346.09 0 308,493.91 0 100% 99% 1,376,457.93 0 14,832,852.18
capital
Plant Project
Cefoxitin Plant Working
Improvement 9,180,000 6,189,414.31 168,666.11 0 0 100% 99% 75,510.7 75,510.7 5.99% capital and 6,358,080.42
Project borrowings
Chebei Working
11,810,000 7,515,595.2 1,000,000 0 0 72% 72% 0 0 8,515,595.2
Project capital
Multifunction Working
al 11,520,000 1,253,509.03 570,127.21 38,461.54 0 98% 99% 255,242.18 255,242.18 5.99% capital and 1,785,174.7
Warehouse borrowings
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Project
Working
Peinan
40,000,000 11,311,813.32 634,307.52 0 0 99% 99% 283,975.28 283,975.28 5.99% capital and 11,946,120.84
Project
borrowings
Zhijun Zhiyao
Working
Guanglan
250,000,000 34,454,871.59 22,191,237.55 284,082.06 0 43% 43% 233,898.64 233,898.64 7.16% capital and 56,362,027.08
Stage II
borrowings
Project
Wastewater
Working
Treatment
117,038,000 17,133,027.52 3,641,550.44 5,163,595.87 0 40% 40% 1,367,996.46 27,363.96 5.99% capital and 15,610,982.09
Project and
borrowings
others
Working
Other
0 730,809.32 52,991.45 529,914.53 0 23,723.92 23,723.92 5.99% capital and 253,886.24
projects
borrowings
Total 671,771,633 131,042,772.59 34,974,664.98 24,820,831.01 193,162.39 -- -- 10,865,814.7 2,510,157.89 -- -- 141,003,444.17
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(3) Provision
□Applicable √Not applicable
(4) Construction on progress
Construction on progress Remark
Asepsis Materials Plant Project 99%
Guangxi Logistics Center Project 99%
Menstruum Recycling Plant Project 99%
Cefoxitin Plant Improvement Project 99%
Multifunctional Warehouse Project 99%
Zhijun Zhiyao Guanglan Stage II
43%
Project
Reconstruction of Wastewater
40%
Treatment Project and others
(5) Notes to construction in progress
□Applicable √Not applicable
19. Construction material
□Applicable √Not applicable
20. Disposal of fixed assets
□Applicable √Not applicable
21. Biological assets
□Applicable √Not applicable
22. Oil and gas assets
□Applicable √Not applicable
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23. Intangible assets
(1) Intangible assets
31 December 2011 Current year additions Current year decreases 30 June 2012
A. Cost 204,789,616.11 27,836,352.37 6,000,831 226,625,137.48
Computer software 13,200,777.11 2,119,213.18 15,319,990.29
Land use rights 138,308,055.67 917,139.19 6,000,831 133,224,363.86
Trademarks 196,850 196,850
Proprietary 53,083,933.33 53,083,933.33
Sales Network 24,800,000 24,800,000
B. Accumulated
82,188,137.25 4,071,832.86 0 86,259,970.11
amortization
Computer software 10,023,615.71 909,517.39 10,933,133.1
Land use rights 27,791,450.58 1,483,757.09 29,275,207.67
Trademarks 174,916.66 16,117.54 191,034.2
Proprietary 44,198,154.3 1,662,440.84 45,860,595.14
Sales Network
C. Net book value 122,601,478.86 0 0 140,365,167.37
Computer software 3,177,161.4 4,386,857.19
Land use rights 110,516,605.09 103,949,156.19
Trademarks 21,933.34 5,815.8
Proprietary 8,885,779.03 7,223,338.19
Sales Network 24,800,000
D. Provision for
3,000,000 0 0 3,000,000
impairment loss
Computer software
Land use rights
Trademarks
Proprietary 3,000,000 3,000,000
Sales Network
E. Carrying amount 119,601,478.86 0 0 137,365,167.37
Computer software 3,177,161.4 4,386,857.19
Land use rights 110,516,605.09 103,949,156.19
Trademarks 21,933.34 5,815.8
Proprietary 5,885,779.03 4,223,338.19
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Sales Network 24,800,000
In Six months ended 30 June 2012, amortisation of intangible assets that are recognized in profit or loss for the current
period amount to RMB 4,071,832.86.
(2) Expenditures on research and development incurred in . are listed as below:
Current year decreases
Current year
31 December 2011 Current profit or Recognized 30 June 2012
additions
loss intangible asset
Expenditures on
research and 3,998,433.69 368,069.83 0 0 4,366,503.52
development
Total 3,998,433.69 368,069.83 0 0 4,366,503.52
The percentage of expenditures on research and development in Six months ended 30 June 2012 of total expenditures on
research and development is 1.01%.
The percentage of recognized intangible asset of total intangible assets is 0%.
(3) Intangible asset of which certificates of title have not been obtained
□Applicable √Not applicable
(4) Others
In May 2012, the Company received Shen Gui Tu Ping Han[2012]293 issued by the Bureau of Planning, Land and Resources of Shenzhen
Municipality, which said the Company is exempted from vacant land fee approved by the municipal
government. As a result, the Company reversed the liability of RMB 9,190,000 and the project on Ping Shan
of Longgang district would be launched in year end.
24. Goodwill
30 December
Increases Decreases 30 June 2012 Provision
2011
Sinopharm Yanfeng 16,868,644.87 16,868,644.87
Sinopharm Meizhou 1,610,819.66 1,610,819.66
Sinopharm Huizhou 923,184.67 923,184.67
Sinopharm Zhanjiang 282,135.55 282,135.55
Sinopharm Dongguan 1,499.02 1,499.02
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Suzhou Wanqing 33,869,393.32 33,869,393.32
Sinopharm Zhaoqing 2,594,341.53 2,594,341.53
Sinopharm Jiangmen 27,392,317.73 27,392,317.73
Total 53,555,677.09 29,986,659.26 0 83,542,336.35 0
Note: The illustration of goodwill impairment testing method and the method of provision for goodwill impairment is as
below:
Goodwill that is separately presented in the financial statements is tested at least annually for impairment, irrespective of
whether there is any indication that it may be impaired. In conducting the test, the carrying value of goodwill is allocated to
the related asset groups or groups of asset groups which are expected to benefit from the synergies of the business
combination. If the result of the test indicates that the recoverable amount of an asset group or group of asset groups,
including the allocated goodwill, is lower than its carrying amount, the corresponding impairment loss is recognised. The
impairment loss is first deducted from the carrying amount of goodwill that is allocated to the asset group or group of asset
groups, and then deducted from the carrying amounts of other assets within the asset groups or groups of asset groups in
proportion to the carrying amounts of assets other than goodwill.
25. Long-term prepaid expenses
31 December Current year Current year Current year Assessment for
30 June 2012
2011 additions amortisation other decreases other decreases
Leasehold
19,019,005.23 314,352.72 2,158,908.05 17,174,449.9 N/A
improvements
Others 1,084,133.76 77,306.86 227,694.69 933,745.93 N/A
Total 20,103,138.99 391,659.58 2,386,602.74 0 18,108,195.83 --
Note:N/A
26. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets/liabilities and relevant deductible and taxable temporary difference after
offsetting:
30 June 2012 31 December 2011
Deferred tax assets:
Provision for assets impairment 12,178,300.29 12,251,957.13
Establishment charge 0 0
Deductible losses 9,005,882.06 5,707,702.49
Accrued expenses 9,970,659.41 5,903,465.72
Accrued payroll 7,802,988.37 9,558,094.14
Deferred revenue 7,397,319.86 7,064,337.65
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Others 2,239,017.04 3,584,507.12
Subtotal 48,594,167.03 44,070,064.25
Deferred tax liabilities:
Valuation of financial instruments held for
0 0
trading and derivatives
Accumulated changes in fair value of
available-for-sale financial assets to other 0 0
comprehensive income
Business combination involving entities not
8,719,201.28 2,761,423.21
under common control
Changes in fair value from assets revaluation 10,598,993.53 13,179,149.48
Others 3,947,635.18 3,960,214.61
Subtotal 23,265,829.99 19,900,787.3
Details of unrecognized deferred tax assets
30 June 2012 31 December 2011
Deductible losses 0 3,975,000
Other deductible temporary differences 38,213,685.61 24,516,268.65
Total 38,213,685.61 28,491,268.65
The deductible losses which are not recognized as deferred tax assets will expire in following years.
30 June 2012 31 December 2011 Remark
2013 0 0
2014 0 0
2015 13,657,521.99 9,748,417.56
2016 14,767,851.09 14,767,851.09
2017 9,788,312.53 0
Total 38,213,685.61 24,516,268.65 --
Details of taxable differences and deductible differences items
Temporary difference
30 June 2012 31 December 2011
Taxable differences items
Assets evaluation difference of corporation
42,395,974.12 52,716,597.93
restruction
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Acquisition under non-common control 41,594,675.18 18,409,488.08
Other 16,255,383.85 16,339,246.79
Subtotal 100,246,033.15 87,465,332.8
Deductible differences items
Provison of accounts receivable 25,315,110.51 22,077,157.93
Provision of other receivables 13,019,861.35 12,187,579.91
Provision for decline in value of inventories 18,245,498.33 23,212,083.12
Provision for long-term equity investments 0 0
Provision for impairment of investment
657,609.76 671,168.73
properties
Accrued selling expense 65,492,333.33 37,652,168.18
Employee benefit payable 38,934,016.52 46,916,608.47
Accrued payments to retiree 0 0
Deferred income 48,782,132.4 46,562,251.05
Deductible losses 48,716,529.09 35,323,416.95
Accrued liabilities 0
Other 10,846,902.96 17,691,687.07
Subtotal 270,009,994.25 242,294,121.41
(2) Deferred tax assets and liabilities are listed as the net value after offset
□Applicable √Not applicable
27. Provision for asset impairment
31 December Decreases
Increases 30 June 2012
2011 Reversal Written off
Provision for receivables 34,619,992.16 4,337,368.98 331,756.12 38,625,605.02
Provision for declines in
23,351,654.13 9,975,490.71 3,521,307.73 11,468,868.73 18,336,968.38
value of inventories
Provision for impairment of
available-for-sale financial
assets
Provision for impairment of
held-to-maturity investment
Provision for impairment of
long-term equity 0 0
investments
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Provision for investment
1,300,000 0 1,300,000
property impairment
Provision for impairment of
0 0
fixed assets
Provision for impairment of
construction project
materials
Provision for impairment of
0 0 0
construction in progress
Provision for impairment of
bearer biological assets
Including: Provision for
impairment of mature
bearer biological assets
Provision for impairment of
0 0 0
oil and gas assets
Provision for intangible
3,000,000 0 3,000,000
assets impairment
Provision for impairment of
0
goodwill
Other
Total 62,271,646.29 14,312,859.69 3,853,063.85 11,468,868.73 61,262,573.4
Note: N/A
28. Other non-current assets
30 June 2012 31 December 2011
Medical reserve fund 38,836,485.73 37,163,948.02
Prepayment for equipment 27,169,645.44 3,109,894.9
Compensation in goods from demolition 70,250,000 0
Total 136,256,131.17 40,273,842.92
Note: The subsidiary Guangxi Logistics obtained RMB120.25mIlions compensation for the demolition carried
out by the government; As at 30 June,2012, the company has received cash compensation amounted
RMB50million and another physical compensation amounted RMB70.25million would be received in year
2015 when completion.
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29. Short-term borrowings
(1) Category
30 June 2012 31 December 2011
Pledge borrowings 29,246,624.78 0
Secured borrowings 0 0
Guaranteed borrowings 358,884,666.23 146,054,097.48
Unsecured borrowings 1,099,265,571.06 1,201,815,980.61
Entrusted borrowings 202,630,000 337,370,000
Discounted notes 148,162,109.72 154,597,987.59
Total 1,838,188,971.79 1,839,838,065.68
Note: As at 30 June 2012, pledged loans represented the account receivable in irrevocable factoring
contracts agreed with financial institute are not derecognized; guaranteed borrowings are RMB
358,884,666.23 (2011: 146,054,097.48). Unsecured borrowings are RMB1,099,265,571.06 (2011:
1,201,815,980.61), guaranteed between the company and its subsidies.
(2) Short-term borrowings overdue but not yet repaid
□Applicable √Not applicable
30. Held-for-trading financial liabilities
□Applicable √Not applicable
31. Notes payable
30 June 2012 31 December 2011
Trade acceptance notes 178,435,156.6 182,966,615.77
Bank acceptance notes 927,305,115.47 876,460,337.07
Total 1,105,740,272.07 1,059,426,952.84
As at 30 June 2012, notes receivable of RMB1,105,740,272.07would be expired within 1 year (31 December 2011:
RMB1,059,426,952.84).
32. Accounts payable
(1)
30 June 2012 31 December 2011
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Accounts payable for purchases 3,048,521,150.09 2,496,755,405.3
Total 3,048,521,150.09 2,496,755,405.3
(2) Accounts payable due from shareholders with more than 5% (including 5%) of the Company’s
equity interest are analysed as below:
30 June 2012 31 December 2011
Sinopharm Group 41,973,797.04 74,626,867.68
Total 41,973,797.04 74,626,867.68
Notes to accounts payable aged over 1 year:
As at 30 June 2012, accounts payable of RMB72,816,707.69 (31 December 2011: RMB44,732,970.31) were aged over 1
year, which were mainly for quality deposit. Before the financial statement is approved, no such long aged accounts
payable have been settled.
33. Advances from customers
(1)
30 June 2012 31 December 2011
Advances from customers 42,747,675.56 58,705,230.49
Total 42,747,675.56 58,705,230.49
(2) Advances from customers due from shareholders with more than 5% (including 5%) of the
Company’s equity interest are analysed as below:
□Applicable √Not applicable
Notes to advances from customers aged over 1 year:
As at 30 June 2012, advances from customers of RMB1,468,389.74, were aged over 1 year. Before the financial
statement is approved, no such long aged advances have been settled.
34. Employee benefits payable
31 December 2011 Current year additions Current year reductions 30 June 2012
Wages and
114,611,695.4 187,353,067.58 187,843,090.61 114,121,672.37
salaries bonuses
Staff welfare 354,584.16 12,547,104.09 12,773,828.25 127,860
Social security
767,833.16 19,881,556.23 19,126,612.37 1,522,777.02
contributions
Including:
113,984.87 5,780,144.9 5,662,822.14 231,307.63
Medical insurance
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Basic pensions 550,795.78 12,164,784.51 11,605,408.91 1,110,171.38
Unemployement
84,413.64 927,093.34 902,459.06 109,047.92
insurance
Work injury
3,037.29 558,041.67 527,549.5 33,529.46
insurance
Maternity
15,601.58 451,491.81 428,372.76 38,720.63
insurance
Housing funds 497,601.75 6,232,688.47 6,034,497.78 695,792.44
Supplemental
10,647,031.09 1,323,517.76 1,949,257.95 10,021,290.9
pensions
Others 15,535,700.5 8,258,278.38 10,131,869.22 13,662,109.66
Including:
Supplemental 2,998,247.13 1,392,710.56 3,127,251.18 1,263,706.51
pensions
Labor union funds
and employee 10,638,569.27 6,725,103.13 6,048,254.73 11,315,417.67
education funds
Others 1,898,884.1 140,464.69 956,363.31 1,082,985.48
Total 142,414,446.06 235,596,212.51 237,859,156.18 140,151,502.39
As at 30 June 2012, there are no payroll payables in arrears.
As at 30 June 2012, labor union funds and employee education funds paid are 6,048,254.73 and there is no non-monetary
welfare. The compensation for employee dismission are 1,097,167.38.
Employee benefits payable will be settled at the year end.
35. Taxes payable
30 June 2012 31 December 2011
Value-added-tax payable 18,298,428.82 21,194,777.26
Consumption tax payable 0
Business tax payable 1,403,309.56 1,714,936.36
Enterprise income tax payable 39,010,068.72 30,342,766.82
Individual income tax payable 2,696,782.75 869,908.61
City maintenance and construction tax payable 1,212,310.39 1,875,216.54
Real estate tax payable 687,455.41 1,042,234.4
Stamp duty tax payable 520,414.82 1,368,858.31
Land use rights 1,364.2 286,607.27
Educational surcharge payable 909,545.39 1,283,779.92
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Rivers management fee 2,681,814.33 2,813,891.79
Anti-flood fund 334,373.24 552,568.54
Others 554,250.04 255,284.29
Total 68,310,117.67 63,600,830.11
Note: N/A
36. Interests payable
30 June 2012 31 December 2011
Long-term borrowings with periodic payment of
106,231.58 0
interest
Debenture interest
Interest payable for short-term borrowings 8,261,755.93 10,451,229.03
Total 8,367,987.51 10,451,229.03
Note: N/A
37. Dividend payable
□Applicable √Not applicable
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38. Other payables
(1)
30 June 2012 31 December 2011
Accrued selling expenses 197,974,304.76 156,473,454
Payables for construction in progress and
40,353,619.63 51,532,375.56
equipment
Amount collected on behalf of third party 19,498,033.24 36,761,462.92
Deposit 19,229,217.21 12,555,627.33
Investment consideration payble 17,968,000 0
Compensation expense 17,600,000
Others 102,554,769.94 89,642,262.53
Total 415,177,944.78 346,965,182.34
(2) Other payables due to shareholders with more than 5% (including 5%) of the Company’s equity
interest are analysed as below:
30 June 2012 31 December 2011
Sinopharm Group 3,930,696.87 3,730,696.87
Total 3,930,696.87 3,730,696.87
(3) Explanation of large amounts of other payables aged over 1 year:
As at 30 June 2012, other payables aged over 1 year are RMB82,844,706.44, which are accrued selling expenses,
payment for equipment and deposit mainly.
(4) Significant amount of other payables
Amount Ageing Remark
Peng Jianxiong, Liu Mengzhou, Wu 15,100,000.00 Within 1 year Equity trasaction payable
yong
Liuzhou Antai construction Co., 9,222,017.47 1 to 2 years Compensation
Ltd.
Wyeth Pharmaceutical Co., Ltd. 12,409,433.72 Within 1 year Payable of transaction
Guangdong Huize Investment Co., 17,600,000.00 Within 1 year Compensation
Ltd.
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39. Accrued liabilities
□Applicable √Not applicable
40,Current portion of non-current liabilities
(1)
30 June 2012 31 December 2011
Currnet portion of long term borrowings 10,000,000 15,000,000
Long term loans due within one year
Promotion rewards program – due within
4,928,000 8,960,000
one year
Total 14,928,000 23,960,000
(2) Current portion of long term borrowings
Current portion of long term borrowings
30 June 2012 31 December 2011
Pledge borrowings
Secured borrowings
Guaranteed borrowings
Unsecured borrowings 10,000,000 15,000,000
Total 10,000,000 15,000,000
Overdue borrowings of long-term borrowings due within one year are RMB 0.
The top five current portion of long term borrowings are analysed as below:
30 June 2012 31 December 2011
Lender Begin with Due to Currency Interest (%) Original Original
RMB RMB
currency currency
Bank of China
19 January 2012 28 March 2013 CNY 7.25% 3,351,400
Longhua Branch
Bank of China
19 January 2012 28 June 2013 CNY 7.25% 2,908,600
Longhua Branch
Bank of China
9 March 2012 28 June 2013 CNY 7.25% 2,091,400
Longhua Branch
Bank of China
12 January 2012 28 March 2013 CNY 7.25% 1,648,600
Longhua Branch
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Agricultural
28 January 2011 26 June 2012 CNY 5.99% 10,000,000
Bank of China
Agricultural
31 March 2011 18 May 2012 CNY 6.65% 5,000,000
Bank of China
Total -- -- -- -- -- 10,000,000 -- 15,000,000
Overdue borrowings of long-term borrowings due within one year are RMB 0.
(3) Bond payable due within one year
□Applicable √Not applicable
(4) Long-term payable due within one year
□Applicable √Not applicable
41. Other current liabilities
□Applicable √Not applicable
42. Long-term borrowings
(1) Categories of long-term borrowings
30 June 2012 31 December 2011
Pledge borrowings
Secured borrowings
Guaranteed borrowings
Unsecured borrowings 112,111,487.71 93,082,967.96
Total 112,111,487.71 93,082,967.96
Notes to categories of long-term borrowings：
As at 30 June 2012, Bank unsecured borrowings of RMB30,000,000.00 (31 December 2011: 30,000,000.00) are
guaranteed by Suzhou Wanqing, a subsidiary of the Company. Interest is paid every month and the principal is due for
repayment on 5 September 2013; Bank unsecured borrowings of RMB 66,908,487.71 (31 December 2011: 63,082,967.96)
borrowed by Guangxi Logistic, a subsidiary of the Company are guaranteed by the Company. Interest is paid every month
and the principal is due for repayment on 20 December 2015. Bank unsecured borrowings of RMB 15,203,000.00(31
December 2011:0) borrowed by Zhijun Pharm, a subsidiary of the Company are guaranteed by the Company, Interest is
paid every month and the principal will be paid 5 million every quarter since 28 September 2013.
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(2) The top five long-term borrowings are analysed as below:
30 June 2012 31 December 2011
Lender Begin with Due to Currency Interest(%) Original Original
RMB RMB
currency currency
6 5
Agricultural Bank of
September September CNY 5.985% 10,000,000 10,000,000
China
2010 2013
5
Agricultural Bank of 13 October
September CNY 5.985% 10,000,000 10,000,000
China 2010
2013
16 5
Agricultural Bank of
December September CNY 5.985% 10,000,000 10,000,000
China
2010 2013
Bank of 28 20
Communications February December CNY 7.31% 9,889,765 0
Guangxi Branch 2012 2013
Bank of 20
31 March
Communications December CNY 6.9% 7,000,000 7,000,000
2011
Guangxi Branch 2015
Total -- -- -- -- -- 46,889,765 -- 37,000,000
Note: Illustration of long-term debt:
N/A
43. Bond payable
□Applicable √Not applicable
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44. Long-term payable
(1)Top five long-term payable
31 December
Interest(%) Interest payable 30 June 2012 Condition
2011
Compensation January 2004 to
7,193,731 0% 0 32,915.4 N/A
for employees August 2012
(2) Details of financing lease payble
□Applicable √Not applicable
45. Payables for specific projects
31 December
Increases Decreases 30 June 2012 Remark
2011
Special Funds granted by
852,000 852,000
Government
Government grants for ERP
667,000 232,000 435,000
system construction
Industrial technology funds 3,000,000 3,000,000
Total 4,519,000 0 232,000 4,287,000 --
Note:N/A
46. Other non-current liabilities
30 June 2012 31 December 2011
Medical reserve funds 45,427,343.31 45,427,343.31
Deferred income 167,731,534.4 48,817,680.23
Total 213,158,877.71 94,245,023.54
Note: It contains the government grants related to income or assets.
Deferred income
30 June 2012 31 December 2011
Government grants related to
assets
R&D library (in progress) 5,000,000.00 5,000,000.00
Medical R&D center II (in 5,000,000.00 5,000,000.00
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
progress)
Medication for Stomach disease 5,000,000.00 5,000,000.00
R&D project
New Cephalosporin R&D Project 2,745,627.70 3,000,000.00
Guangxi Logistics Project 6,400,398.36 3,908,000.00
Cefpirome Sulfate R&D Project 3,008,309.53 1,594,835.02
Shared logistics 3,152,868.40 3,275,514.96
center(completed)
Compensation from demolition 108,490,364.32 -
project
Other projects 5,252,461.42 5,739,825.58
Subtotal 144,050,029.73 32,518,175.56
Promotion rewards program 23,681,504.67 16,299,504.67
Total 167,731,534.40 48,817,680.23
47. Share capital
Additions/Reversals (shares)
31 December Capitalisation
New issue of 30 June 2012
2011 Bonus issue of surplus Others Subtotal
share
reserve
Total shares 288,149,400 0 0 0 0 0 288,149,400
Note: N/A
48. Shares in stock
□Applicable √Not applicable
49. Special reserves
□Applicable √Not applicable
50. Capital surplus
Current year
31 December 2011 Current year addition 30 June 2012
deduction
Share premium 3,416,966.47 0 3,416,966.47 0
Other capital surplus 5,318,338.57 232,000 0 5,550,338.57
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Total 8,735,305.04 232,000 3,416,966.47 5,550,338.57
Note:N/A
51. Surplus reserve
31 December 2011 Addition Decrease 30 June 2012
Statutory surplus reserve 63,480,745.16 63,480,745.16
Discretionary surplus reseve
Reserve fund
Enterprise development fund
Others
Total 63,480,745.16 0 0 63,480,745.16
Note: Illustration of surplus reserve:
N/A
52. General risk reserve
□Applicable √Not applicable
53. Undistributed profits
30 June 2012 31.December 2011
Appropriatiton Appropriatiton
Amount Amount
rate rate
Opening balance of
retained earnings(before 993,269,387.62 -- 719,209,302.41 --
adjusted)
Adjustment - Business
combination under -3,541,560.96 -- -1,557,687.89 --
common control (a)
Opening balance of
retained earnings(after 989,727,826.66 -- 717,651,614.52 --
adjusted)
Add:net profit attributable
to the shareholders of the 240,033,990.64 -- 328,323,616.76 --
company
Less:appropriation of
23,499,476.61 10%
statutory surplus reserve
Appropriation of
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discretionary surplus
reserve
Ending balance of
retained earnings
Dividends 37,459,422 34,577,928
Ordinary dividends
converted into share
capital
Other outflow -1,083,033.53
Others 1,830,000
Ending balance of
1,191,219,361.77 -- 989,727,826.66 --
retained earnings
Note:
1) RMB0.00 opening retained profits was affected by retrospective adjustment conducted according to
the Accounting Standards for Business Enterprises and relevant new regulations.
2) RMB0.00 opening retained profits was affected by changes on accounting policies.
3) RMB0.00 opening retained profits was affected by correction of significant accounting errors.
4) RMB -3,541,560.96 opening retained profits was affected by changes in combination scope arising
from common control.
5) RMB0.00 opening retained profits was affected totally by other adjustments.
Notes: as for IPO companies, if the accumulated profits were enjoyed by new and original shareholders
according to the resolutions made at the shareholders’ general meeting before public offering, the
Company shall explain clearly; if the accumulated profits were distributed before public offering and
enjoyed by the original shareholders according to the resolutions made at the shareholders’ general
meeting, the Company shall clearly disclose the audited profits of dividends payable enjoyed by the
original shareholders.
A. The impact under common control represented the impact from acquisition of Sinopharm Wuzhou in
year 2012. The acquisition is defined as business combination involving entities under common control.
Thus, difference between the carrying amount of the net assets obtained by the combining party and the
carrying amount of the consideration paid by it, shall be adjusted against the owners’ equity. As the
account capital surplus is not sufficient to be offset, the retained earnings have been adjusted.
B. Pursuant to the resolution of shareholders of the company on 27 April 2012, cash dividends of
RMB37,459,422.00 (RMB1.3 per 10 shares) was proposed based on the issued shares of 288,149,400,
RMB37,459,422.00 total.
54. Sales and cost of sales
(1) Revenue and cost of main operations
Six months ended 30 June 2012 Six months ended 30 June 2011
Revenue of main operations 8,752,759,527.58 7,177,726,706
Other operating income 50,492,818.62 31,928,694.57
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Cost of sales 7,967,951,745.26 6,532,714,090.9
(2) Revenue and cost of main operations analysed by industries are set out below:
Six months ended 30 June 2012 Six months ended 30 June 2011
Revenue of Cost of main Revenue of Cost of main
main operations operations main operations operations
Pharmaceutical manufacturing 958,587,821.6 586,940,582.21 925,760,135.84 651,752,176.74
Pharmaceutical distribution 7,732,883,805.68 7,305,030,960.94 6,202,743,225.42 5,832,034,727.05
Retail pharmacy 42,601,423.59 37,631,664 33,299,118.36 29,382,536.04
Logistics and freights 13,418,721.21 8,388,634.09 10,782,275.27 7,935,256.43
Rental and training income 5,267,755.5 1,936,498.16 5,141,951.11 1,741,882.39
Total 8,752,759,527.58 7,939,928,339.4 7,177,726,706 6,522,846,578.65
(3) Revenue and cost of main operations analysed by products are set out below:
Six months ended 30 June 2012 Six months ended 30 June 2011
Revenue of Cost of main Revenue of Cost of main
main operations operations main operations operations
Cough mixtures 119,971,315.43 30,955,097.16 124,000,525.36 28,491,668.48
Cephalosporin products 818,010,646.93 550,838,694.61 800,488,365.71 585,799,888.19
Other 7,814,777,565.22 7,358,134,547.63 6,253,237,814.93 5,908,555,021.98
Total 8,752,759,527.58 7,939,928,339.4 7,177,726,706 6,522,846,578.65
(4) Revenue and cost of main operations analyzed by regions are set out below:
Six months ended 30 June 2012 Six months ended 30 June 2011
Revenue of Cost of main Revenue of Cost of main
main operations operations main operations operations
Domestic sales 8,745,190,813.43 7,934,652,320.86 7,172,996,548.72 6,520,346,160.5
Oversea sales 7,568,714.15 5,276,018.54 4,730,157.28 2,500,418.15
Total 8,752,759,527.58 7,939,928,339.4 7,177,726,706 6,522,846,578.65
(5) Top five companies according to sales
Sales % of total sales of the group
GuangDong Province People's
133,948,293.8 1.53%
Hospital
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Nanfang Hospital of Southern
92,626,161.83 1.06%
Medical University
Center for Disease Control and
Prevention of 91,538,611.86 1.05%
Guangdong Province
The First Affiliated Hospital of
73,596,191.61 0.84%
Sun Yat-Sen University
The Third Affiliated Hospital of
66,691,951.1 0.76%
Sun Yat-Sen University
Total 458,401,210.2 5.24%
Note: N/A
55. Contractual revenue
□Applicable √Not applicable
56. Tax and surcharges
Six months ended 30 Six months ended 30
June 2012 June 2011
Consumption tax
Gains from rents, storage, interest
and service providing times 5%;
Business tax 6,025,659.72 4,419,817.81
Gains from transportation, freight
times 3%.
City maintenance and Aggregate payment of value added
11,284,952.83 7,211,916.23
construction tax tax and business tax times 7%.
Aggregate payment of value added
Educational surcharge 7,966,077.69 3,677,904.4
tax and business tax times 5%.
Resource tax
Embankment protection fee:
different standard of various cities.
Property tax: Property tax of
owner-occupied properties is
Other 1,372,969.63 312,552.08 calculated by the base upon cost of
the property deducted 10%-30%;
For lease property, property tax is
calculated by rents times 12%.
Land holding tax: Calculated by
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
actual squares of land dominant
times applicable tax rate
Total 26,649,659.87 15,622,190.52 --
Note: The increase in turnover tax is in the line with revenue, including sales income and rental income, which leads rising
educational surcharge, city maintenance and construction tax, rivers management fee and real estate tax.
1. The increase in taxes and surcharges is in the line with sales compare to the same period previous year, value added
tax also raised, which results in educational surcharge, city maintenance and construction tax etc. increase.
2. Other taxes and surcharges increase is in the line with revenue compare to the same period previous year, including
sales income and rental income, which leads rising embankment protection fee and property tax.
57. Gains from changes in fair value
□Applicable √Not applicable
58. Investment income
(1) Details of investment income
Six months ended 30 June 2012 Six months ended 30 June 2011
Gains/losses recognized under cost method 0 0
Gains/losses recognized under equity method 16,016,159.76 12,810,289.3
Gains/losses on disposal of long-term equity
investments
Gains from holding of held-for-trading financial
assets
Gains from holding of held-to-maturity
investments
Gains from holding of available –for-sale
financial assets
Gains/losses on disposal of held-for-trading
financial assets
Gains/losses on held-to-maturtiy investment
Gains/losses on available-for-sale financial
assets
Others
Total 16,016,159.76 12,810,289.3
(2) Gains/losses recognized under cost method
N/A
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(3) Gains/losses recognized under equity method
Six months ended 30 Six months ended
Investee Reason for changes
June 2012 30 June 2011
Shenzhen Wanle Pharmaceutical
16,016,159.76 12,810,289.3 Profitability rises
Co., Ltd.
Total 16,016,159.76 12,810,289.3 --
Note: N/A
59. Asset impairment
Six months ended 30 June
Six months ended 30 June 2011
2012
Provision for bad debts 2,065,816.3 2,330,699.15
Provision for inventory write-down 6,322,397.59 3,544,952.04
Provision for impairment of available-for-sale
financial assets
Provision for impairment of held-to-maturity
investments
Provision for impairment of long-term equity
investments
Provision for impairment of investment properties
Provision for impairment of fixed assets
Provision for impairment of construction project
materials
Provision for impairment of construction in progress
Provision for impairment of bearer biological assets
Provision for impairment of oil and gas assets
Provision for impairment of intangible assets
Provision for impairment of goodwill
Others
Total 8,388,213.89 5,875,651.19
60. Non-operating income
(1)
Six months ended 30 June
Six months ended 30 June 2011
2012
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Gains on disposal of non-current assets 172,051.62 702,412.18
Including: Gains on disposal of intangible assets 172,051.62 702,412.18
Gains on disposal of fixed assets
Gains on debt restructuring
Gains on exchange of non-monetary assets
Donations received
Government grants 17,984,705.34 7,391,233.49
Others 952,409.97 6,921,764.36
Total 19,109,166.93 15,015,410.03
(2) Details of government grants
Six months ended 30 Six months ended 30
Items Explanation
June 2012 June 2011
Compensation from Compensation from reconstruction
11,771,909.83
government’s demolition project project
Government grants for medicine Subsidy for medical reserve
419,146.56 406,909.68
reserve expenses
Government grants for technical Subsidy for technical improvement
improvement 2,296,845.49 1,521,000 of high and new technology
enterprises
Government grants for R&D Subsidy for R&D expenditure for
expenses 0 4,750,000 enterprises located in Bao An
district Shenzhen
Financial discount policy Compensation from financial
3,000,000
discount policy
Others Cash reward for contribution to
496,803.46 713,323.81
taxation and patent
Total 17,984,705.34 7,391,233.49 --
Note: N/A
61. Non-operating expenses
Six months ended 30 June Six months ended 30 June
2012 2011.
Losses on disposal of non-current assets 8,985,832.5 70,253.22
Including: disposal of fixed assets 2,985,001.5 70,253.22
disposal of intangible assets 6,000,831
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Losses on debt restructurings
Non-monetary asset exchange losses
Donations 202,000
Compensation payment for suspension of chebei project
17,600,000
co-operation
Others 3,126,420.02 146,941.3
Total 29,914,252.52 217,194.52
Note: N/A.
62. Income taxes expenses
Six months ended 30 June Six months ended 30 June
2012 2011
Current income tax calculated with Taxation Law and
71,306,851.26 46,961,974.63
related rules
Deferred income tax -7,359,069.09 3,030,417.47
Total 63,947,782.17 49,992,392.1
63. Basic earnings per share and diluted earnings per share
1. Basic earnings per share equals consolidated net profit attributable to shareholders of the Company
(RMB240,033,990.64) dividing by the weighted average number of ordinary shares in issue(288,149,400).
2. Diluted earnings per share is calculated by dividing the consolidated net profit attributable to shareholders
of the Company by the weighted average number of ordinary shares in issue, which both should be adjusted
for the effects of all potential dilutive factors. The Company has no potential outstanding ordinary shares in
Six months ended 30 June 2012, the diluted earnings per share equals the basic earnings per share, is RMB
0.833 per share.
64. Other comprehensive income
□Applicable √Not applicable
65. Notes for cash flow statement
(1) Cash received relating to other operating activities
Items Amount
Government Grant 9,266,182.51
Intereset income 2,112,748.84
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Others 42,840,503.98
Total 54,219,435.33
Note:N/A
(2) Cash paid relating to other operating activities
Items Amount
Entertainment expenses 12,651,427.09
Rental expenses 5,414,283.78
Advertising expenses 5,462,304.88
Bank charges 7,967,890
R&D expenses 36,054,514.95
Other expenses and current balance 68,460,930.71
Total 136,011,351.41
Note:N/A
(3) Cash received relating to other investing activities
□Applicable √Not applicable
Currency: RMB
Item Amount
Government demolition grant 50,000,000.00
Total 50,000,000.00
Cash received relating to other investing activities:
The subsidiary Guangxi Logistics get the government grants due to the Government to implement the
city the old districts alterations and relocation of reconstruction
(4) Cash paid relating to other investing activities
□Applicable √Not applicable
(5) Cash received relating to other financing activities
Item Amount
Entrusted borrowings borrowed from Sinopharm Group 232,630,000
Others 146,663,299.15
Total 379,293,299.15
Note:N/A
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(6) Cash paid relating to other financing activities
Item Amount
Repayment of entrusted borrowings lent by Sinopharm Group 367,370,000
Total 367,370,000
Note:N/A
66. Supplementary information of cash flow statements
(1) Supplementary information of cash flow statements
Six months ended 30 June
Supplementary information Six months ended 30 June 2011
2012
1. Adjusting net profit to net cash flow in operating
-- --
activities:
Net profit 243,210,512.66 167,430,135.84
Add: Provision for assets impairment 8,388,213.89 5,875,651.19
Depreciation of fixed assets and investment
40,088,819.4 37,142,491.37
properties
Amortisation of intangible assets 4,071,832.86 8,406,252.01
Amortisation of long-term prepaid
2,386,602.74 3,283,779.61
Expenses
Gains on disposal of fixed assets, intangible assets
8,813,780.88 -2,048,289.48
and other non-current assets
Loss from scrapping of fixed assets 0 0
Loss from fair change 0 0
Financial expenses 82,634,319.99 32,690,661.36
Investment income -16,016,159.76 -12,810,289.3
Increase of deferred tax assets -4,050,396.74 -1,903,625.93
Decrease of deferred tax liabilities -2,834,957.31 -1,126,791.54
Decrease/(increase) of inventory 24,862,393.79 -32,777,045.79
Increase in operating receivables -751,703,629.02 -429,302,367.94
Increase in operating payables 480,460,939.36 331,786,731.06
Others 18,597,595.43
Net cash flow from operating activities 138,909,868.17 106,647,292.46
2. Net increase of cash and cash equivalent -- --
Transferring debts to capital
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Convertible corporate bond to mature within one year
Leasing fixed assets through financing
3. Movement of cash -- --
Cash at period end 868,558,138.59 891,983,994.63
Less: cash at beginning of year 907,884,162.14 684,764,869.84
Add: cash equivalent at the end of the period
Less: cash equivalent at the beginning of the period
Net increase in cash -39,326,023.55 207,219,124.79
(2) Acquisition or disposal of subsidiaries or other operating units
Six months ended 30 June
Supplement information Six months ended 30 June 2011
2012
I. Acquire of subsidiaries or other operating units: -- --
1. Price for acquire of subsidiaries or other
65,560,000 0
operating units
2. Cash or cash equivalent for acquire of
47,592,000
subsidiaries or other operating units
Less: cash and cash equivalent held by
22,973,111.76
subsidiaries or other operating units
3. Net cash received from acquire of
24,618,888.24
subsidiaries or other operating units
4. Acquire of subsidiaries net assets 12,473,340.74 0
Current assets 209,109,746.1
Non-current assets 661,710.01
Current liabilities 197,298,115.37
Non-current liabilities
II. Disposal of subsidiaries or other operating units: -- --
1. Price for Disposal of subsidiaries or other
operating units
2. Cash or cash equivalent for disposal of
subsidiaries or other operating units
Less: cash and cash equivalent held by
subsidiaries or other operating units
3. Net cash received from disposal of
0
subsidiaries or other operating units
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4. Disposal of subsidiaries net assets 0
Current assets
Non-current assets
Current liabilities
Non-current liabilities
(3)Cash and cash equivalents
Item 30 June 2012 31 December 2011
I. Cash 868,558,138.59 907,599,239.81
Including: cash in hand 67,571.77 48,381.59
Call deposits with banks 868,490,566.82 907,550,858.22
Other cash
Central Bank deposit on demand
Due from banks
Call loan to banks
II. Cash equivalents
Including: bond investment due within 3 months
III. Cash and cash equivalents at period end 868,558,138.59 907,599,239.81
Note:N/A
67. Notes to equity movement
Note:
The Group acquired Sinopharm Wuzhou under common control in this period, raised period beginning capital surplus
balance by RMB3,416,966.47, eliminated undistributed profits by RMB3,541,560.96, eliminated equity of minority interest
by RMB374.91.
VIII Accounting treatment of asset securitization
1, Notes of main trade arrangement and its accounting treatment of assets securitization
business as well as articles of bankruptcy remote
2, Main information about the special purpose entities in which the Company has no control right
but bears relevant risks
□Applicable √Not applicable
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(IX)Related party relationships and related party transactions
1.General information of the parent company
Currency: RMB
Name of Relationship Enterprise Type Place of Legal Principal Register Curren % interest % voting Company’s Organisation
the parent registration representative business capital cy held rights ultimate code
company controlling equity
holder
Sinopharm Majority Company limited Shanghai She Lulin Commercial 2,402,625,299 CNY 38.33% 38.33% China National 746184344
Group Co., shareholder by shares(Listed Pharmaceutical
Ltd. company) Group
(“Sinophar Corporation
m Group”) (“CNPGC”)
2.General information of the subsidiaries
Currency: RMB
Full name of Type of subsidiary Enterprise Type Place of registration Legal Principal Register Curren % % Organisati
subsidiaries representative business capital cy interest voting on code
held rights
Zhijun Wholly owned Limited company (sole Shenzhen Yan Zhigang Manufacturing 200,000,000 CNY 100% 100% 192190290
pharm subsidiary proprietorship of legal
person)
Sinopharm Wholly owned Limited company (sole Shenzhen Lin Xinyang Commercial 5,000,000 CNY 100% 100% 192194224
Jianmin subsidiary proprietorship of legal
person)
Sinopharm Wholly owned Limited company (sole Shenzhen Jiao Qi Commercial 6,000,000 CNY 100% 100% 192193205
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Material subsidiary proprietorship of legal
person)
Zhijun trade Wholly owned Limited company (sole Shenzhen Deng Baojun Commercial 1,890,000 CNY 100% 100% 192190303
subsidiary proprietorship of legal
person)
Shenzhen Wholly owned Limited company (sole Shenzhen Lin Min Service 1,000,000 CNY 100% 100% 779873509
logistics subsidiary proprietorship of legal
person)
Training Wholly owned The private Shenzhen Tan Guoshu Service 30,000 CNY 100% 100% 738593893
Center subsidiary non-enterprise units
(sole proprietorship of
legal person)
Sinopharm Wholly owned Limited company (sole Guangzhou Commercial 400,000,000 CNY 100% 100% 753491772
Guangzhou subsidiary proprietorship of legal Shi Jinming
person)
Huixin Wholly owned Limited company (sole Guangzhou Shi Jinming Service 5,000,000 CNY 100% 100% 190335492
Investment subsidiary proprietorship of legal
person)
Sinopharm Wholly owned Limited company (sole Guangzhou Luo Qin Commercial 30,000,000 CNY 100% 100% 190369967
Yuexing subsidiary proprietorship of legal
person)
Sinopharm Wholly owned Limited company (sole Guangzhou Lin Zhaoxiong Commercial 40,000,000 CNY 100% 100% 770157530
Hengxing subsidiary proprietorship of legal
person)
Sinopharm Wholly owned Limited company (sole Foshan Lin Xinyang Commercial 10,000,000 CNY 100% 100% 190335978
Foshan subsidiary proprietorship of legal
person)
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Guangdong Wholly owned Limited company (sole Guangzhou Lin Min Service 5,000,000 CNY 100% 100% 190365958
Logistics subsidiary proprietorship of legal
person)
Sinopharm Wholly owned Limited company (sole Dongguan Lin Xinyang Commercial 10,000,000 CNY 100% 100% 732144309
Dongguan subsidiary proprietorship of legal
person)
Sinopharm Wholly owned Limited company (sole Zhanjiang Lin Xinyang Commercial 15,000,000 CNY 100% 100% 194379580
Zhanjiang subsidiary proprietorship of legal
person)
Sinopharm Wholly owned Limited company (sole Nanning Lin Zhaoxiong Commercial 100,000,000 CNY 100% 100% 75975844
Guangxi subsidiary proprietorship of legal X
person)
Guangxi Controlled by wholly Limited company (sole Nanning Lin Zhaoxiong Service 7,100,706.88 CNY 100% 100% 198222724
Logistics owned subsidiary proprietorship of legal
person)
Sinopharm Controlled by wholly Limited company (sole Yulin Zhou Ruili Commercial 5,000,000 CNY 100% 100% 708731730
Yulin owned subsidiary proprietorship of legal
person)
Sinopharm Share holding Limited company Wuzhou Zhou Ruili Commercial 3,300,000 CNY 99.7% 99.7 199125299
Wuzhou subsidiary %
Sinopharm Controlled by wholly Limited company (sole Guilin Zhou Ruili Commercial 10,000,000 CNY 100% 100% 595145427
Guilin owned subsidiary proprietorship of legal
person)
Sinopharm Controlled by wholly Limited company (sole Baise Zhou Ruili Commercial 10,000,000 CNY 100% 100% 595135915
Baise owned subsidiary proprietorship of legal
person)
Sinopharm Share holding Limited company Liuzhou Lin Zhaoxiong Commercial 20,530,600 CNY 51% 51% 198591263
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Liuzhou subsidiary
Guangxi Controlled by wholly Limited company (sole Liuzhou Lei Chaotian Manufacturing 2,000,000 CNY 51% 51% 662132598
Herbal owned subsidiary proprietorship of legal
person)
Suzhou Share holding Limited company Jiangsu Taicang Huang Kai Manufacturing 80,000,000 CNY 75% 75% 747314606
Wanqing subsidiary
Sinopharm Share holding Limited company Shenzhen Lin Zhaoxiong Commercial 30,000,000 CNY 51% 51% 279302101
Yanfeng subsidiary
Sinopharm Wholly owned Limited company (sole Meizhou Yangyan Commercial 1,200,000 CNY 100% 100% 721170640
Meizhou subsidiary proprietorship of legal
person)
Shenzhen Wholly owned Limited company (sole Shenzhen Deng Baojun Manufacturing 50,000,000 CNY 100% 100% 192194304
Herbal subsidiary proprietorship of legal
person)
Sinopharm Wholly owned Limited company (sole Huizhou Yangyan Commercial 7,000,000 CNY 100% 100% 761583845
Huizhou subsidiary proprietorship of legal
person)
Sinopharm Wholly owned Limited company (sole Zhaoqing Yangyan Commercial 2,000,000 CNY 100% 100% 71238345
Zhaoqing subsidiary proprietorship of legal X
person)
Sinopharm Wholly owned Limited company (sole Jiangmen Yangyan Commercial 10,000,000 CNY 100% 100% 752068307
Jiangmen subsidiary proprietorship of legal
person)
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3.General information of the Joint venture and associates
Currency: USD
Name of Enterpri Place of Legal Princip Regi Curre % % voting Total Total Net asset Operating Profit of the Relationshi Organisati
entity se Type Registrat Represe al ster ncy interes rights asset at liability at at the end income of period p on code
invested ion ntative busine capit t the end of the end of of the the period
ss al held the period the period period
1. Joint -- -- -- -- -- -- -- -- -- -- -- -- -- --
venture
Nil
2. -- -- -- -- -- -- -- -- -- -- -- -- -- --
Associate
Shenzhen Foreign Shenzhe Yan Medici USD USD 35.19 33.33% 632,489,5 359,570,4 272,919,0 285,068,7 50,570,426 Associate 618861849
Wanle capital n Zhigang ne 19,5 % 30.9 38.98 91.92 09.78 .44
Pharmace manuf 44,5
utical Co., acture 50.0
Ltd. 0
213
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
4,Other related parties of the Company
Name of other related party Relationship Organisation code
China National Medicines Co.,Ltd. Controlled by Sinopharm Group 710925737
Sino-Swed Pharmaceutical Corp.Ltd. Significant influence by CNPGC 607912321
Shenzhen Wanle Pharmaceutical Co., Ltd. Associate 618861849
Jiangsu Wanbang Pharmacy Marketing Co., Ltd. Subsidiary of Fosun Pharm 678970887
Guang dong South National Pharmaceutical Foreign Trade
Co.,Ltd. Controlled by CNPGC 190374694
Sinopharm Group Wei qida Medicine Co., Ltd Controlled by CNPGC 734026330
Sinopharm Holding Guizhou Co., Ltd. Controlled by Sinopharm Group 551920145
Chongqing Haisiman Pharmaceutical Co.,Ltd. Subsidiary of Fosun Pharm 66355774X
Chongqing Yaoyou Pharmaceutical Co.,Ltd. Subsidiary of Fosun Pharm 202851807
Shenzhen Wanwei Medicine trading Co., Ltd Associate of Sinopharm Group 792583311
Sinopharm Holding Fujian Co., Ltd. Controlled by Sinopharm Group 699902760
Sinopharm Holding Beijing Co., Ltd. Controlled by Sinopharm Group 756042307
Guangdong East Uptodate & Special Medicines Co.,Ltd. Controlled by Sinopharm Group 190370941
Foshan Nanhai Uptodate & Special Medicines Co.,Ltd. Controlled by Sinopharm Group 893521152
Sinopharm Holding Putian Co., Ltd. Controlled by Sinopharm Group 768592007
Sinopharm Group Medicine Logistic Co., Ltd. Controlled by Sinopharm Group 74563928X
Sinopharm Group Chemical Reagent Co., Ltd. Controlled by Sinopharm Group 755715856
Shanghai Shyndec Pharmaceutical Co., Ltd. Controlled by CNPGC 630459924
Sinopharm Holding Hainan Co., Ltd. Controlled by Sinopharm Group 721236689
Lanzhou Biological Technology R&D Co.,Ltd. Controlled by CNPGC 296583830
Yunnan Medical Herbs Co., Ltd Controlled by CNPGC 727297466
Sinopharm Group Chemical Reagent Suzhou Co., Ltd. Controlled by Sinopharm Group 76514709X
Foshan Nanhai Medicine Co.,Ltd. Controlled by Sinopharm Group 193533599
Guilin South pharmaceutical Co., Ltd Subsidiary of Fosun Pharm 729742527
Sinopharm Holding Yunnan Co., Ltd. Controlled by Sinopharm Group 216548323
Sinopharm Yixin Medicine Co.,Ltd. Controlled by Sinopharm Group 244063809
China Otsuka Pharmaceutical Co.,Ltd. Significant influence by CNPGC 600550022
Guangdong Accord Drug Store Co., Ltd. Controlled by Sinopharm Group 764954314
Harson Shanghai Modern Pharmaceutical (Shangqiu) Co., Ltd. Controlled by CNPGC 716735619
Sinopharm Holding Hunan Co., Ltd. Controlled by Sinopharm Group 727983896
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Yichang Humanwell Pharmaceutical Co.,Ltd. Significant influence by CNPGC 730843405
Shenyang Hongqi Pharmaceutical Co.,Ltd. Subsidiary of Fosun Pharm 117872427
Handan Pharmaceutical Co.,Ltd Subsidiary of Fosun Pharm 713115924
Sinopharm Group Shanghai Medicine Device Co., Ltd. Controlled by CNPGC 132293917
Sichuan Jiang You Zhong Ba Science and Technology
Development Co.,Ltd. Controlled by CNPGC 723229466
Sinopharm Holding Suzhou Co., Ltd. Controlled by Sinopharm Group 137762671
Sinopharm Group Guorui Medicine Co.,Ltd. Controlled by Sinopharm Group 72334670X
Shenzhen Accord Pharmaceutical Chain Co., Ltd Controlled by Sinopharm Group 192190047
Sinopharm Holding Zhangzhou Co., Ltd. Controlled by Sinopharm Group 550962343
Chengdu Rongsheng Pharmacy Co., Ltd. Controlled by CNPGC 633122307
Qinghai Pharmaceutical factory Co., Ltd Significant influence by CNPGC 710403023
Sinopharm Holding Anhui Co., Ltd. Controlled by Sinopharm Group 683617690
Sinopharm Holding Meiluo (Dalian) Co., Ltd Controlled by Sinopharm Group 550636695
Shanghai Sailun Biological Technology Co.,Ltd. Significant influence by CNPGC 631521822
China National Pharmaceutical Foreign Trade Corporation Controlled by CNPGC 100000315
Shanghai Medicine Hospital Medical Co., Ltd. Controlled by CNPGC 132836790
Sinopharm Holding Jiangsu Co., Ltd. Controlled by Sinopharm Group 140735017
Sinopharm Holding Beijing Huahong Co., Ltd. Controlled by Sinopharm Group 634303054
Shanghai Chaohui Pharmecurical Co., Ltd. Subsidiary of Fosun Pharm 133232446
Sinopharm Group United Medical Equipment Co.,Ltd Controlled by CNPGC 717852139
Sinopharm Group Southwest Medicine Co., Ltd Controlled by Sinopharm Group 201885298
Sinopharm Holding Tianjin Co., Ltd. Controlled by Sinopharm Group 754836883
Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical
Co., Ltd. Controlled by Sinopharm Group 239672271
Sinopharm Holding Tianjin North Medicine Co., Ltd. Controlled by Sinopharm Group 103190601
Sinopharm Holding Shengyang Co., Ltd. Controlled by Sinopharm Group 755766207
Sinopharm Holding Shenyang Co., Ltd. Dalian Branch Controlled by Sinopharm Group 755784309
Sinopharm Holding Meiluo (Dalian) Co., Ltd Controlled by Sinopharm Group 550636695
Sinopharm Holding Jinzhou Co., Ltd. Controlled by Sinopharm Group 564630956
Sinopharm Holding Shanxi Co., Ltd. Controlled by Sinopharm Group 727365182
Sinopharm Holding Hubei Co., Ltd. Controlled by Sinopharm Group 72612386X
Sinopharm Holding Jingzhou Co., Ltd. Controlled by Sinopharm Group 559724317
Sinopharm Holding Shanxi Co., Ltd. Controlled by Sinopharm Group 757272243
Sinopharm Holding Guoda Pharmacy Co.,Ltd Controlled by Sinopharm Group 760569195
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Guangzhou Accord Pharm Chain Co., Ltd. Controlled by Sinopharm Group 732155681
Guangxi Accord Pharm Chain Co., Ltd. Controlled by Sinopharm Group 735145382
Sinopharm Holding (Jiangsu) Chinese Western Medicine
Branch Company Controlled by Sinopharm Group 840719974
Sinopharm Holding Jiangsu Co., Ltd. Taizhou Branch Controlled by Sinopharm Group 75390782X
Sinopharm Holding Hunan Deyuan Medicine Co., Ltd. Controlled by Sinopharm Group 580900979
Sinopharm Holding Zhejiang Co., Ltd. Controlled by Sinopharm Group 704305945
Sinopharm Holding Lishui Co., Ltd Controlled by Sinopharm Group 148909819
Sinopharm Holding Taizhou Co., Ltd. Controlled by Sinopharm Group 720046242
Sinopharm Holding Sub Marketing Center Co., Ltd. Controlled by Sinopharm Group 736202721
Sinopharm Holding Henan Co., Ltd. Controlled by Sinopharm Group 796766860
Sinopharm Holding Anqing Co., Ltd. Controlled by Sinopharm Group 551801410
Sinopharm Holding Wuhu Co., Ltd. Controlled by Sinopharm Group 580120147
Sinopharm Holding Fuzhou Co., Ltd. Controlled by Sinopharm Group 154439104
Sinopharm Holding Shandong Co., Ltd. Controlled by Sinopharm Group 78719109X
Sinopharm Holding Yantai Co., Ltd Controlled by Sinopharm Group 790381556
Sinopharm Holding Jinan Co., Ltd. Controlled by Sinopharm Group 728624078
Sinopharm Holding Qujing Co., Ltd. Controlled by Sinopharm Group 560075959
Sinopharm Holding Hainan Hongyi Co., Ltd. Controlled by Sinopharm Group 562407873
Sinopharm Holding Gansu Co., Ltd. Controlled by Sinopharm Group 695642113
Sinopharm Holding Longyan Co., Ltd. Controlled by Sinopharm Group 749066714
Sinopharm Holding Sanming Co., Ltd Controlled by Sinopharm Group 733636241
Sinopharm Holding Ningde Co., Ltd. Controlled by Sinopharm Group 770698599
Sinopharm Holding Ningxia Co., Ltd. Controlled by Sinopharm Group 670440734
Sinopharm Holding Jiangxi Co., Ltd. Controlled by Sinopharm Group 696051171
Sinopharm Holding Inner Mongolia Co., Ltd. Controlled by Sinopharm Group 555460203
Sinopharm Group Xinjiang Special Drugs National
Pharmaceutical Co.,Ltd. Controlled by Sinopharm Group 228670174
Sinopharm Group Xinjiang Special Drugs Karamay
Pharmaceutical Co.,Ltd. Controlled by Sinopharm Group 228900400
Sinopharm Holding Xinjiang Special Drugs Kaxqar
Pharmaceutical Co.,Ltd. Controlled by Sinopharm Group 751667746
Sinopharm Holding Xinjiang Special Drugs Western
Pharmaceutical Co.,Ltd. Controlled by Sinopharm Group 928597916
Sinopharm Holding Xinjiang Special Ginsheng and Pilose
Pharmaceutical Co.,Ltd. Controlled by Sinopharm Group 712966022
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Sinopharm Xinjing Korla Medicine Co., Ltd. Controlled by Sinopharm Group 229499006
Sinopharm Holding Xinjiang Kumul Pharmaceutical Co.,Ltd. Controlled by Sinopharm Group 229100085
Sinopharm Holding Xinjiang Iliense Tongde Pharmaceutical
Co.,Ltd. Controlled by Sinopharm Group 710843598
Sinopharm Group Shanghai Likang Medicine Stock Co.,Ltd. Controlled by Sinopharm Group 631289090
Sinopharm Holding Jilin Co., Ltd. Controlled by Sinopharm Group 82394386X
Sinopharm Holding Siping Co., Ltd. Controlled by Sinopharm Group 569950772
Sinopharm Holding Wenzhou Co., Ltd. Controlled by Sinopharm Group 145049964
Sinopharm Holding Chongqing Co., Ltd. Controlled by Sinopharm Group 554093173
Sinopharm Holding Nanjing Co., Ltd. Controlled by Sinopharm Group 730570291
Sinopharm Holding Wuxi Co., Ltd. Controlled by Sinopharm Group 733303105
Sinopharm Holding Changzhou Co., Ltd. Controlled by Sinopharm Group 778039651
Sinopharm Holding Changzhou Medical logistics center Co.,
Ltd. Controlled by Sinopharm Group 723500551
Sinopharm Holding Xuzhou Co., Ltd. Controlled by Sinopharm Group 753237643
Sinopharm Holding Yancheng Co., Ltd. Controlled by Sinopharm Group 781299067
Sinopharm Holding Heilongjiang Co., Ltd. Controlled by Sinopharm Group 560630879
Sinopharm Le -Ren-Tang Medicine Co., Ltd. Controlled by Sinopharm Group 695852364
Sinopharm Holding Hebei Medcine Co., Ltd. Controlled by Sinopharm Group 104320228
Sinopharm Holding Qinghai Co., Ltd. Controlled by Sinopharm Group 710525311
Sinopharm Holding Nantong Co., Ltd. Controlled by Sinopharm Group 251879443
China National Scientific Instruments & Materials Corporation Controlled by CNPGC 19218478X
Heilongjiang Sinopharm Medical Herbs Co.,Ltd. Controlled by CNPGC 68141657X
Sichuan Hexin Pharmaceutical Co.,Ltd. Subsidiary of Fosun Pharm 743617685
Sinopharm Holding Xinyu Co., Ltd. Controlled by Sinopharm Group 727761679
Sinopharm Holding Tianjin Co.,Ltd. Tangshan Branch Controlled by Sinopharm Group 784061636
Sinopharm Holding Linyi Co., Ltd Controlled by Sinopharm Group 168730189
Sinopharm Holding Suzhou Boai Co., Ltd. Controlled by Sinopharm Group 137715509
Sinopharm Holding Anshun Co., Ltd. Controlled by Sinopharm Group 215650449
China National Medical Equipment & Supplies I/E (Shenzhen)
Co.,Ltd. Controlled by CNPGC 192191402
Sinopharm Group Beijing Medical equipment Co.,Ltd Controlled by CNPGC 710924937
Jiangsu Wanbang Bio-Chemical Medicine Co., Ltd. Subsidiary of Fosun Pharm 714139872
Shanghai Fosun Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm 132951385
Shanghai Fosun Long March Medical Science Co., Ltd. Subsidiary of Fosun Pharm 607209011
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Significant influence by
Sinoparm Qianjing Stomatological Technology (Beijing) Co.,Ltd Sinopharm Group 766289610
Significant influence by
Xiamen XingShahuaide Pharmaceutical Co.,Ltd. Sinopharm Group 154983628
Sinopharm Holding Guoda Pharmacy Store Shenyang Chain
Co.,Ltd Controlled by Sinopharm Group 001591869
China National Pharmaceutical Group Shanghai Co.,Ltd Controlled by Sinopharm Group 132203651
China National Corporation of Traditional & Hebal Medical Controlled by CNPGC 100005992
National Pharmaceutical Group Wuhan Pharmaceutical
Industry Design Institute Controlled by CNPGC 177588428
Family member of actual holder
Wangyang of subsidiary minority interest N/A
Reed Sinopharm Exhibitions Co., Ltd. Controlled by CNPGC 710929017
Shanghai Pharmaceutial Industry Research Institute Controlled by CNPGC 425002562
Shanghai Fosun Pharmaceutical (Group) Co., Ltd. Associate of CNPGC 133060541
Controlled by key management of
Jiangmen RenRen Medical equipment Co.,Ltd subsidiary 794614898
Peng JianXiong Key Management of Subsidiary N/A
Shenzhen Jiufeng investment Co., Ltd. Minority interest of subsidiary 565715669
The illustration of other related parties is as below:
Nil
5. Related party transactions
(1)Purchase of goods and other services
Currency: RMB
Entity Transaction Pricing Current year transaction previous year transaction
Type policies Amount % of same Amount % of same
transaction transaction
Sinopharm Holding Purchase of Market price 429,186,432.72 5.57% 44,704,255.95 0.71%
Sub Marketing Center goods
Co., Ltd.
Sinopharm Group Purchase of Market price 189,162,974.49 2.45% 482,405,743 7.66%
goods
China National Purchase of Market price 109,126,979.62 1.42% 85,103,173.12 1.35%
Medicines Co.,Ltd. goods
Sino-Swed Purchase of Market price 39,391,683.63 0.51% 32,848,388.57 0.52%
Pharmaceutical
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Corp.Ltd. goods
Shenzhen Wanle Purchase of Market price 19,511,130.88 0.25% 16,929,822.33 0.27%
Pharmaceutical Co., goods
Ltd.
Jiangsu Wanbang Purchase of Market price 7,257,728.02 0.09% 6,577,760.52 0.1%
Pharmacy Marketing goods
Co., Ltd.
Guang dong South Purchase of Market price 7,158,703.82 0.09% 12,431,866.06 0.2%
National goods
Pharmaceutical
Foreign Trade Co.,Ltd.
Sinopharm Group Wei Purchase of Market price 6,720,034.2 0.09% 10,059,829.05 0.16%
qida Medicine Co., Ltd goods
Sinopharm Holding Purchase of Market price 5,781,496.33 0.07% 1,712,877.82 0.03%
Guizhou Co., Ltd. goods
Chongqing Haisiman Purchase of Market price 5,081,718.52 0.07% 2,871,577.04 0.05%
Pharmaceutical goods
Co.,Ltd.
Chongqing Yaoyou Purchase of Market price 4,939,960.19 0.06% 2,035,925.47 0.03%
Pharmaceutical goods
Co.,Ltd.
Shenzhen Wanwei Purchase of Market price 4,079,158.04 0.05% 0%
Medicine trading Co., goods
Ltd
Sinopharm Holding Purchase of Market price 3,544,824.12 0.05% 1,013,784.92 0.02%
Fujian Co., Ltd. goods
Sinopharm Holding Purchase of Market price 2,440,546.99 0.03% 1,988,649.55 0.03%
Beijing Co., Ltd. goods
Guangdong East Purchase of Market price 2,226,860.84 0.03% 822,378.11 0.01%
Uptodate & Special goods
Medicines Co.,Ltd.
Foshan Nanhai Purchase of Market price 821,817.22 0.01% 7,678,827.22 0.12%
Uptodate & Special goods
Medicines Co.,Ltd.
Sinopharm Holding Purchase of Market price 798,076.9 0.01% 0%
Putian Co., Ltd. goods
Sinopharm Group Transfer cost Market price 746,184.31 0.01% 493,143.14 0.01%
Medicine Logistic Co.,
Ltd.
Sinopharm Group Purchase of Market price 481,441.65 0.01% 201,043.42 0%
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Chemical Reagent goods
Co., Ltd.
Shanghai Shyndec Purchase of Market price 299,666.04 0% 93,090.96 0%
Pharmaceutical Co., goods
Ltd.
Sinopharm Holding Purchase of Market price 294,361.99 0% 40,361.56 0%
Hainan Co., Ltd. goods
Lanzhou Biological Purchase of Market price 265,051.27 0% 0%
Technology R&D goods
Co.,Ltd.
Yunnan Medical Herbs Purchase of Market price 263,716.81 0% 382,300.88 0.01%
Co., Ltd goods
Sinopharm Group Purchase of Market price 193,531.19 0% 246,401.71 0%
Chemical Reagent goods
Suzhou Co., Ltd.
Foshan Nanhai Purchase of Market price 157,891.08 0% 21,290.36 0%
Medicine Co.,Ltd. goods
Guilin South Purchase of Market price 152,806.82 0% 361,945.48 0.01%
pharmaceutical Co., goods
Ltd
Sinopharm Holding Purchase of Market price 125,333.33 0% 0%
Yunnan Co., Ltd. goods
Sinopharm Yixin Purchase of Market price 122,337.6 0% 0%
Medicine Co.,Ltd. goods
China Otsuka Purchase of Market price 97,326.51 0% 14,112.83 0%
Pharmaceutical goods
Co.,Ltd.
Guangdong Accord Purchase of Market price 81,807.69 0% -420.51 0%
Drug Store Co., Ltd. goods
Harson Shanghai Purchase of Market price 80,438.05 0% 0%
Modern goods
Pharmaceutical
(Shangqiu) Co., Ltd.
Sinopharm Holding Purchase of Market price 67,716.92 0% 4,358.97 0%
Hunan Co., Ltd. goods
Yichang Humanwell Purchase of Market price 33,144.9 0% 9,398.29 0%
Pharmaceutical goods
Co.,Ltd.
Shenyang Hongqi Purchase of Market price 26,956.82 0% 19,371.37 0%
Pharmaceutical goods
220
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Co.,Ltd.
Handan Purchase of Market price 25,624.01 0% 100,366.66 0%
Pharmaceutical goods
Co.,Ltd
Sinopharm Group Purchase of Market price 21,571.2 0% 14,973.85 0%
Shanghai Medicine goods
Device Co., Ltd.
Sichuan Jiang You Purchase of Market price 20,831.86 0% 9,371.68 0%
Zhong Ba Science and goods
Technology
Development Co.,Ltd.
Sinopharm Holding Purchase of Market price 12,767.18 0% 0%
Suzhou Co., Ltd. goods
Sinopharm Group Purchase of Market price 12,410.25 0% 4,717.96 0%
Guorui Medicine goods
Co.,Ltd.
Shenzhen Accord Purchase of Market price 11,884.41 0% 0%
Pharmaceutical Chain goods
Co., Ltd
Sinopharm Holding Purchase of Market price 3,469.23 0% 150,769.24 0%
Zhangzhou Co., Ltd. goods
Chengdu Rongsheng Purchase of Market price 0% 6,165,564.15 0.1%
Pharmacy Co., Ltd. goods
Sinopharm Holding Purchase of Market price 0% 970,025.22 0.02%
Anhui Co., Ltd. goods
Sinopharm Holding Purchase of Market price 0% -9,241.23 0%
Beijing Huahong Co., goods
Ltd.
Sinopharm Holding Purchase of Market price 0% -3,661.53 0%
Jiangsu Co., Ltd. goods
Shanghai Sailun Purchase of Market price 0% 139,957.41 0%
Biological Technology goods
Co.,Ltd.
Shanghai Medicine Purchase of Market price 0% 2,564.1 0%
Hospital Medical Co., goods
Ltd.
China National Purchase of Market price 0% 9,241.23 0%
Pharmaceutical goods
Foreign Trade
Corporation
221
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Qinghai Purchase of Market price 4,108,923.06 0.05% 6,075,384.62 0.1%
Pharmaceutical goods
factory Co., Ltd
Sinopharm Holding Purchase of Market price 0% 219,469.22 0%
Meiluo (Dalian) Co., goods
Ltd
Shanghai Chaohui Purchase of Market price -1,061.53 0% 570,811 0.01%
Pharmecurical Co., goods
Ltd.
Sinopharm Group Purchase of Market price -3,551.91 0% 3,320,995.53 0.05%
United Medical goods
Equipment Co.,Ltd
Reed Sinopharm Exhibition Market price 19,200 3.52% 16,000 3.18%
Exhibitions Co., Ltd. charges
Shanghai Testing Market price 0 0% 10,000 100%
Pharmaceutial charges
Industry Research
Institute
Sales of goods and rendering of service
Currency: RMB
Entity Transaction Pricing Current year transaction previous year transaction
Type policies
Amount % of same Amount % of same
transaction transaction
Sinopharm Holding Hunan Sales of Market 55,248,823.85 0.63% 50,878,689.48 0.71%
Co., Ltd. goods price
Foshan Nanhai Uptodate & Sales of Market 51,040,955.56 0.58% 32,371,341.13 0.45%
Special Medicines Co.,Ltd. goods price
Sinopharm Holding Beijing Sales of Market 42,601,658.91 0.49% 37,163,184.52 0.52%
Co., Ltd. goods price
Guangdong Accord Drug Sales of Market 41,143,865.47 0.47% 43,181,782.6 0.6%
Store Co., Ltd. goods price
Sinopharm Holding Hubei Sales of Market 42,211,035.26 0.48% 45,530,710.17 0.63%
Co., Ltd. goods price
Sinopharm Group Sales of Market 41,963,939.79 0.48% 31,872,690.08 0.44%
Southwest Medicine Co., Ltd goods price
Chongqing Yaoyou Sales of Market 40,123,076.88 0.46% 43,459,829.31 0.61%
Pharmaceutical Co.,Ltd. goods price
Sinopharm Group (Tianjin) Sales of Market 24,315,570.13 0.28% 29,392,545.35 0.41%
Eastern Bokang goods price
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Pharmaceutical Co., Ltd.
Sinopharm Holding Beijing Sales of Market 23,636,605.56 0.27% 21,242,420.68 0.3%
Huahong Co., Ltd. goods price
Sinopharm Holding Hainan Sales of Market 21,501,585.17 0.25% 14,573,642.2 0.2%
Co., Ltd. goods price
Sinopharm Holding Sales of Market 18,240,892.25 0.21% 31,119,263.02 0.43%
Shengyang Co., Ltd. goods price
Foshan Nanhai Medicine Sales of Market 15,435,981.47 0.18% 13,885,143.27 0.19%
Co.,Ltd. goods price
Guangxi Accord Pharm Sales of Market 15,249,175.14 0.17% 21,509,468.96 0.3%
Chain Co., Ltd. goods price
Sinopharm Holding Ningxia Sales of Market 15,265,463.14 0.17% 10,159,836.64 0.14%
Co., Ltd. goods price
Sinopharm Holding Zhejiang Sales of Market 14,342,607.57 0.16% 12,279,765.03 0.17%
Co., Ltd. goods price
Sinopharm Holding Hebei Sales of Market 14,205,931.7 0.16% 22,796,569.41 0.32%
Medcine Co., Ltd. goods price
Sinopharm Holding Xinjiang Sales of Market 14,204,647.28 0.16% 12,222,576.15 0.17%
Special Drugs Western goods price
Pharmaceutical Co.,Ltd.
Sinopharm Holding Sub Sales of Market 13,513,766.43 0.15% 0%
Marketing Center Co., Ltd. goods price
Sinopharm Holding Tianjin Sales of Market 13,052,985.97 0.15% 27,550,346.55 0.38%
Co., Ltd. goods price
Sinopharm Group Sales of Market 12,457,454.09 0.14% 25,671,318.45 0.36%
goods price
Sinopharm Group Xinjiang Sales of Market 12,412,336.15 0.14% 16,107,057.43 0.22%
Special Drugs National goods price
Pharmaceutical Co.,Ltd.
Sinopharm Le -Ren-Tang Sales of Market 12,409,428.06 0.14% 609,978.82 0.01%
Medicine Co., Ltd. goods price
Sinopharm Holding Yunnan Sales of Market 11,843,692.72 0.14% 13,666,728.6 0.19%
Co., Ltd. goods price
Sinopharm Holding Sales of Market 11,598,587.98 0.13% 4,574,001.01 0.06%
Shandong Co., Ltd. goods price
Sinopharm Holding Shanxi Sales of Market 11,187,921.12 0.13% 5,883,448.75 0.08%
Co., Ltd. goods price
Sinopharm Holding Hainan Sales of Market 10,458,325.4 0.12% 0%
Hongyi Co., Ltd. goods price
223
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Sinopharm Holding Gansu Sales of Market 9,001,150.67 0.1% 6,790,236.57 0.09%
Co., Ltd. goods price
Sinopharm Holding Nantong Sales of Market 8,427,781.84 0.1% 0%
Co., Ltd. goods price
Sinopharm Holding Sales of Market 7,112,592.04 0.08% 4,749,817.53 0.07%
Wenzhou Co., Ltd. goods price
Guangdong East Uptodate Sales of Market 6,862,934.45 0.08% 9,552,984.65 0.13%
& Special Medicines Co.,Ltd. goods price
Sinopharm Holding Sales of Market 6,727,493.88 0.08% 3,133,951.05 0.04%
Chongqing Co., Ltd. goods price
Sinopharm Holding Fujian Sales of Market 6,228,036.27 0.07% 7,036,241.86 0.1%
Co., Ltd. goods price
Sinopharm Holding Jiangsu Sales of Market 5,892,015.78 0.07% 8,617,821.93 0.12%
Co., Ltd. goods price
Sinopharm Holding Fuzhou Sales of Market 5,611,681.15 0.06% 2,314,222.39 0.03%
Co., Ltd. goods price
Sinopharm Holding Jinzhou Sales of Market 5,459,179.44 0.06% 2,295,682.66 0.03%
Co., Ltd. goods price
China National Medicines Sales of Market 4,397,822.13 0.05% 2,281,895.47 0.03%
Co.,Ltd. goods price
Sinopharm Holding Henan Sales of Market 3,787,174.26 0.04% 8,457,904.34 0.12%
Co., Ltd. goods price
Sinopharm Holding Shanxi Sales of Market 2,975,245.17 0.03% 6,550,615.82 0.09%
Co., Ltd. goods price
Sinopharm Holding Sales of Market 2,636,447.11 0.03% 1,096,112.21 0.02%
Heilongjiang Co., Ltd. goods price
Sinopharm Holding Jilin Co., Sales of Market 2,542,553.22 0.03% 2,119,265.94 0.03%
Ltd. goods price
Sinopharm Holding Inner Sales of Market 2,078,548.07 0.02% 2,400,974.22 0.03%
Mongolia Co., Ltd. goods price
Sinopharm Holding Anhui Sales of Market 1,862,026.57 0.02% 450,586.51 0.01%
Co., Ltd. goods price
Sinopharm Holding Xuzhou Sales of Market 1,792,195.44 0.02% 1,515,730.05 0.02%
Co., Ltd. goods price
Shanghai Chaohui Sales of Market 1,571,794.86 0.02% 453,846.15 0.01%
Pharmecurical Co., Ltd. goods price
Sinopharm Holding Ningde Sales of Market 1,554,315.79 0.02% 0%
Co., Ltd. goods price
224
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Sinopharm Holding Sales of Market 1,412,494.04 0.02% 1,102,883.74 0.02%
(Jiangsu) Chinese Western goods price
Medicine Branch Company
Sichuan Hexin Sales of Market 1,375,145.3 0.02% 2,492,731.63 0.03%
Pharmaceutical Co.,Ltd. goods price
Sinopharm Holding Longyan Sales of Market 1,356,643.44 0.02% 120,546.39 0%
Co., Ltd. goods price
Sinopharm Holding Guizhou Sales of Market 1,288,133.65 0.01% 6,007,586.31 0.08%
Co., Ltd. goods price
Guang dong South National Sales of Market 1,217,723.12 0.01% 1,145,944.66 0.02%
Pharmaceutical Foreign goods price
Trade Co.,Ltd.
Sinopharm Holding Guoda Sales of Market 1,216,832.25 0.01% 1,597,271.88 0.02%
Pharmacy Co.,Ltd goods price
Sinopharm Holding Suzhou Sales of Market 1,181,109.75 0.01% 1,370,447.69 0.02%
Co., Ltd. goods price
Sinopharm Holding Taizhou Sales of Market 1,163,792.05 0.01% 340,002.46 0%
Co., Ltd. goods price
Sinopharm Holding Tianjin Sales of Market 1,046,006.01 0.01% 855,842.8 0.01%
North Medicine Co., Ltd. goods price
Sinopharm Holding Sales of Market 925,057.08 0.01% 139,829.06 0%
Yancheng Co., Ltd. goods price
Sinopharm Holding Wuxi Sales of Market 924,220.74 0.01% 1,104,686 0.02%
Co., Ltd. goods price
Sinopharm Holding Meiluo Sales of Market 868,575.67 0.01% 545,335.51 0.01%
(Dalian) Co., Ltd goods price
Sinopharm Holding Hunan Sales of Market 835,051.29 0.01% 0%
Deyuan Medicine Co., Ltd. goods price
Sinopharm Holding Nanjing Sales of Market 788,118.16 0.01% 288,944.65 0%
Co., Ltd. goods price
Sinopharm Holding Sales of Market 782,560 0.01% 1,000,504.05 0.01%
Zhangzhou Co., Ltd. goods price
Sinopharm Group Wei qida Sales of Market 723,803.43 0.01% 4,306,666.67 0.06%
Medicine Co., Ltd goods price
Guangzhou Accord Pharm Sales of Market 377,376.59 0% 4,743,001.07 0.07%
Chain Co., Ltd. goods price
Sinopharm Holding Yantai Sales of Market 350,953.82 0% 8,617.95 0%
Co., Ltd goods price
Sinopharm Holding Putian Sales of Market 344,951.84 0% 43,954.07 0%
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Co., Ltd. goods price
Sinopharm Holding Jiangxi Sales of Market 316,358.13 0% 749,689.48 0.01%
Co., Ltd. goods price
Sinopharm Holding Wuhu Sales of Market 272,896.54 0% 0%
Co., Ltd. goods price
Sinopharm Holding Xinjiang Sales of Market 223,309.39 0% 0%
Special Drugs Kaxqar goods price
Pharmaceutical Co.,Ltd.
Sinopharm Holding Sales of Market 222,607.7 0% 0%
Changzhou Medical logistics goods price
center Co., Ltd.
Sinopharm Holding Jinan Sales of Market 171,535.9 0% 0%
Co., Ltd. goods price
Sinopharm Holding Sales of Market 154,700.86 0% 304,504.27 0%
Shenyang Co., Ltd. Dalian goods price
Branch
Sinopharm Group Shanghai Sales of Market 126,666.67 0% 0%
Likang Medicine Stock goods price
Co.,Ltd.
Sinopharm Holding Anqing Sales of Market 117,651.25 0% 29,804.95 0%
Co., Ltd. goods price
Heilongjiang Sinopharm Sales of Market 94,410.25 0% 0%
Medical Herbs Co.,Ltd. goods price
Sinopharm Holding Sales of Market 72,962.4 0% 0%
Changzhou Co., Ltd. goods price
Sinopharm Holding Xinjiang Sales of Market 58,166.15 0% 0%
Kumul Pharmaceutical goods price
Co.,Ltd.
Sinopharm Holding Xinjiang Sales of Market 57,948.71 0% 0%
Special Ginsheng and Pilose goods price
Pharmaceutical Co.,Ltd.
Sinopharm Holding Sanming Sales of Market 44,589.75 0% 53,101.54 0%
Co., Ltd goods price
China National Scientific Sales of Market 44,423.08 0% 0%
Instruments & Materials goods price
Corporation
Sinopharm Holding Lishui Sales of Market 37,846.14 0% 36,883.98 0%
Co., Ltd goods price
Sinopharm Group Xinjiang Sales of Market 32,741.02 0% 0%
Special Drugs Karamay
226
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Pharmaceutical Co.,Ltd. goods price
Sinopharm Holding Qujing Sales of Market 19,082.22 0% 0%
Co., Ltd. goods price
Sinopharm Holding Xinjiang Sales of Market 17,107.69 0% 0%
Iliense Tongde goods price
Pharmaceutical Co.,Ltd.
Sinopharm Holding Qinghai Sales of Market 9,812.99 0% 0%
Co., Ltd. goods price
Sinopharm Holding Sales of Market 8,256.41 0% 2,358.98 0%
Jingzhou Co., Ltd. goods price
Sinopharm Xinjing Korla Sales of Market 3,010 0% 0%
Medicine Co., Ltd. goods price
Sinopharm Holding Jiangsu Sales of Market 1,435.9 0% 0%
Co., Ltd. Taizhou Branch goods price
Sinopharm Holding Siping Sales of Market 1,435.9 0% 0%
Co., Ltd. goods price
Sinopharm Holding Suzhou Sales of Market 0% 5,487.18 0%
Boai Co., Ltd. goods price
Sinopharm Holding Linyi Sales of Market 0% 134,974.36 0%
Co., Ltd goods price
Sinopharm Holding Xinyu Sales of Market 0% 354,523.08 0%
Co., Ltd. goods price
Sinopharm Holding Tianjin Sales of Market 0% 146,504.49 0%
Co.,Ltd. Tangshan Branch goods price
Jiangmen RenRen Medical Sales of Market 168,849.23 0%
equipment Co.,Ltd goods price
Guangdong Accord Drug Dispatching Market 206,755.54 1.54% 301,229.06 2.79%
Store Co., Ltd. and price
transportation
charges
Guangdong Accord Drug Dispatching Market 1,236,700 9.22% 1,294,300 12%
Store Co., Ltd. and price
transportation
charges
Sinopharm Group Medicine Dispatching Market 5,110,500 38.09% 3,328,800 30.87%
Logistic Co., Ltd. and price
transportation
charges
China National Medicines Dispatching Market 903,500 6.73% 681,400 6.32%
and
227
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Co.,Ltd. transportation price
charges
Guangzhou Accord Pharm Dispatching Market 0 231,600 2.15%
Chain Co., Ltd. and price
transportation
charges
Shenzhen Wanle Conference Market 135,600 0.00% 0
Pharmaceutical Co., Ltd. and Training price
charges
(2) Information of related party trust / contract
Nil
228
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
(3)Lease
As lessor:
Currency: RMB
Lessor Leasee Type of Status of Value of Contract Contract Price policy Rental Influence by
assets use asset leased leased asset beginning terminated income of lease income to
for date date report period the company
Sinopharm Guangxi Accord Pharm Building In good 2,002,540.83 1 July 2009 31 December Market price 566,283.3 No.
Liuzhou Chain Co., Ltd. condition 2012
Sinopharm Guangxi Accord Pharm Building In good 437,313.81 10 March 31 December Market price 32,086.02 No.
Liuzhou Chain Co., Ltd. condition 2011 2012
The company Shenzhen Accord Building In good 1,137,599.42 1 June 2009 31 December Market price 234,780 No.
Pharmaceutical Chain Co., condition 2012
Ltd
Sinopharm Shenzhen Accord Building In good 327,350.23 1 January 30 June 2012 Market price 27,000 No.
Material Pharmaceutical Chain Co., condition 2012
Ltd
Huixin Guangzhou Accord Building In good 2,333,107.46 1 January 31 December Market price 256,806 No.
Investment Pharmaceutical Chain Co., condition 2012 2012
Ltd
Huixin Sinopharm Group United Building In good 1,158,443.61 1 January 31 December Market price 96,372 No.
Investment Medical Equipment condition 2012 2012
Co.,Ltd
Guangxi Guangxi Accord Building In good 1,367,765.89 1 July 2009 31 December Market price 139,846.5 No.
Logistics Pharmaceutical Chain Co., condition 2012
Ltd
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
As leasee:
Currency: RMB
Leasor Leasee Type of Status of Value of Contract Contract Price policy Rental Influence by
assets use asset leased leased asset beginning terminated income of lease income to
for date date report period the company
Sinopharm Group Building In good Market price 3,540,000 No.
Medicine Logistic Sinopharm condition 1 January
Co., Ltd. Guangzhou 2012 30 June 2012
Sinopharm Group Equipment In good Market price 4,387,500 No.
Medicine Logistic Sinopharm condition 1 January
Co., Ltd. Guangzhou 2012 30 June 2012
Peng JianXiong Sinopharm Building In good 1 January 31 December Market price 31,168 No.
Jiangmen condition 2012 2012
Wangyang Sinopharm Yanfeng Building In good 31 December Market price 198,000 No.
condition 1 July 2009 2012
The illustration of lease from/to related parties is as below:
Nil
(4)Guarantees provided
Currency: RMB
Guarantor Guarantee Amount Beginning date of Maturity date of Guarantee
guarantee contract guarantee contract obligation
expired
Sinopharm Guangzhou, Zhijun Pharm The company 120,564,054.49 29 September 2011 28 September 2012 No
Zhijun Pharm The company 59,553,711.58 22 March 2012 22 March 2013 No
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Sinopharm Group The company 60,000,000 18 November 2011 31 October 2012 No
Zhijun Pharm The company 81,346,260.69 08 March 2012 08 March 2013 No
Zhijun Pharm The company 30,591,928.22 02 June 2011 01 June 2012 No
Zhijun Pharm The company 8,933,710.49 06 December 2011 06 December 2012 No
Zhijun Pharm The company 11,328,891.94 18 May 2012 13 May 2013 No
Zhijun Pharm Zhijun Trade 10,303,020 13 October 2011 13 October 2012 No
The Company Sinopharm Zhanjiang 11,130,238.37 02 August 2011 02 August 2012 No
The Company Sinopharm Guangzhou 66,712,162.97 26 July 2011 26 July 2012 No
The Company Sinopharm Guangzhou 310,178,898.77 17 October 2011 17 October 2012 No
The Company Sinopharm Guangzhou 79,951,751.04 14 December 2011 13 November 2012 No
The Company Sinopharm Yuexing 18,492,051.29 28 April 2012 28 April 2013 No
The Company Sinopharm Guangzhou 241,943,913.68 28 April 2012 28 April 2013 No
The Company Sinopharm Guangzhou 120,561,447.44 21 May 2012 24 April 2013 No
The Company Sinopharm Guangzhou 148,726,230.9 18 January 2012 18 January 2013 No
The Company Sinopharm Guangzhou 98,162,109.72 10 February 2012 09 February 2013 No
The Company Sinopharm Guangzhou 99,317,856.05 27 April 2012 12 April 2013 No
The Company Sinopharm Yanfeng 19,516,551.08 28 February 2012 27 February 2013 No
The Company Sinopharm Yanfeng 17,603,716.32 14 December 2011 13 November 2012 No
The Company Zhijun Trade 11,901,330 14 December 2011 13 November 2012 No
The Company Zhijun Trade 4,853,520 08 March 2012 08 March 2013 No
The Company Zhijun Pharm 56,770,780.11 20 June 2012 20 June 2013 No
The Company Zhijun Pharm 20,376,265.15 13 December 2011 13 November 2012 No
The Company Zhijun Pharm 29,795,000 25 August 2011 24 August 2016 No
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
The Company Zhijun Pharm 10,111,698.65 22 March 2012 22 March 2013 No
The Company Sinopharm Liuzhou 15,000,000 14 December 2011 13 November 2012 No
The Company Sinopharm Liuzhou 24,855,673.43 20 November 2011 20 November 2012 No
The Company Wanqing Suzhou 39,900,000 28 June 2012 27 June 2013 No
The Company Suzhou Wanqing 30,000,000 01 August 2010 01 August 2013 No
The Company Suzhou Wanqing 49,789,168.92 17 January 2012 05 January 2013 No
The Company Suzhou Wanqing 68,120,018.46 07 May 2012 06 May 2013 No
The Company Suzhou Wanqing 40,000,000 14 December 2011 13 November 2012 No
The Company Suzhou Wanqing 44,718,152.43 14 June 2012 14 June 2013 No
The Company Guangxi Logistics 66,908,487.71 17 January 2011 17 January 2014 No
The Company Sinopharm Guangxi 85,368,810 15 May 2012 15 May 2013 No
The Company Sinopharm Guangxi 97,878,310 16 May 2012 16 May 2013 No
The Company Sinopharm Guangxi 73,316,487.56 14 December 2011 13 December 2012 No
The Company Sinopharm Guangxi 22,311,021.66 28 April 2012 28 April 2013 No
Sinopharm Group Sinopharm Guangzhou 84,490,886.38 17 September 2011 28 September 2012 No
Sinopharm Group Sinopharm Guangzhou 298,884,666.23 12 August 2011 12 August 2012 No
The illustration of guarantee provided to related parties is as below:
Nil
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
(5)Financing
Currency: RMB
Entity Amount Effective date Maturity date Instruction
Borrowed from-
Sinopharm Group 42,630,000 09 January 2012 08 July 2012
Sinopharm Group 50,000,000 08 March 2012 06 September 2012
Sinopharm Group 40,000,000 14 March 2012 13 September 2012
Sinopharm Group 50,000,000 12 January 2012 28 June 2012
Sinopharm Group 8,010,000 22 May 2012 21 November 2012
Sinopharm Group 41,990,000 22 May 2012 21 November 2012
Lend to-
(6)Information about assets transfer, debt reorganization of related parties
N/A
(7)Other related party transactions
Entity Related party Type of transaction Six months ended Six months ended
30 June 2012 30 June 2011
The Sinopharm Group Interest paid for the entrusted loans 5,390,597.65 4,770,475.00
Company
Sinopharm Sinopharm Group Interest paid for the entrusted loans 4,560,912.16 4,091,034.71
Guangzhou
Sinopharm Sinopharm Holding Sub Charges of discounted notes 1,713,450.07 723,564.37
Guangzhou Marketing Center Co., payable
Ltd.
Sinopharm Sinopharm Group Charges of discounted notes 1,113,332.61 4,677,816.74
Guangzhou payable
Sinopharm Sinopharm Group Interest paid for the entrusted loans 503,661.67 0
Liuzhou
Sinopharm Sinopharm Group Interest pay for the upstream 0 1,223,377.02
Guangzhou factoring
6. Accounts receivable from and payables to related parties
Receivables from related parties:
Currency: RMB
233
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Account name Related party Ending Opening
balance balance
Accounts receivable Sinopharm Holding Hunan Co., Ltd. 24,920,892.15 21,728,617.94
Accounts receivable Chongqing Yaoyou Pharmaceutical Co.,Ltd. 16,112,000 19,680,000
Accounts receivable Sinopharm Holding Beijing Co., Ltd. 12,278,220.47 16,862,605.55
Accounts receivable Sinopharm Holding Hubei Co., Ltd. 10,320,940.7 14,871,593.35
Accounts receivable Sinopharm Group Southwest Medicine Co., Ltd 14,705,972.16 13,870,986.69
Accounts receivable Foshan Nanhai Uptodate & Special Medicines Co.,Ltd. 16,675,738 13,724,106.87
Accounts receivable Sinopharm Group 5,707,245.6 13,341,144.9
Accounts receivable Guangdong Accord Drug Store Co., Ltd. 10,295,107.58 12,678,081.03
Accounts receivable Sinopharm Holding Shengyang Co., Ltd. 9,573,436.2 12,096,831.46
Accounts receivable Guangxi Accord Pharm Chain Co., Ltd. 6,210,009.23 9,114,338.57
Accounts receivable Sinopharm Group Xinjiang Special Drugs National 5,048,060.27 8,810,320.11
Pharmaceutical Co.,Ltd.
Accounts receivable Sinopharm Holding Beijing Huahong Co., Ltd. 8,708,543.4 7,069,197.48
Accounts receivable Sinopharm Holding Hainan Co., Ltd. 9,953,220.8 6,981,348.17
Accounts receivable Sinopharm Le -Ren-Tang Medicine Co., Ltd. 2,726,926.7 6,849,253.91
Accounts receivable Sinopharm Holding Tianjin Co., Ltd. 4,538,274.06 6,565,949.08
Accounts receivable Sinopharm Group (Tianjin) Eastern Bokang 6,912,251.6 6,143,790.4
Pharmaceutical Co., Ltd.
Accounts receivable Sinopharm Holding Fujian Co., Ltd. 276,221.35 5,925,114.49
Accounts receivable Sinopharm Holding Yunnan Co., Ltd. 2,461,355.35 5,788,788.13
Accounts receivable Sinopharm Holding Zhejiang Co., Ltd. 5,668,312.1 5,591,038.8
Accounts receivable Sinopharm Holding Hainan Hongyi Co., Ltd. 4,450,446.81 4,316,031.04
Accounts receivable Sinopharm Holding Hebei Medcine Co., Ltd. 2,918,142.12 3,628,184.4
Accounts receivable Sinopharm Holding Xinjiang Special Drugs Western 4,024,737.71 3,553,021.64
Pharmaceutical Co.,Ltd.
Accounts receivable Guangdong East Uptodate & Special Medicines Co.,Ltd. 2,487,114.31 3,150,435.77
Accounts receivable Foshan Nanhai Medicine Co.,Ltd. 3,482,910.44 2,758,739.01
Accounts receivable Sinopharm Holding Shandong Co., Ltd. 3,501,935.19 2,728,583.94
Accounts receivable Sinopharm Holding Sub Marketing Center Co., Ltd. 4,754,869.6 2,664,042.1
Accounts receivable Sinopharm Holding Jinzhou Co., Ltd. 870,143.76 2,157,238.28
Accounts receivable Sinopharm Group Medicine Logistic Co., Ltd. 3,182,860.03 1,914,898.65
Accounts receivable Sinopharm Holding Ningxia Co., Ltd. 4,657,171.88 1,635,547.72
Accounts receivable Sinopharm Holding Shanxi Co., Ltd. 817,166.96 1,479,776.58
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Accounts receivable Sinopharm Holding Wenzhou Co., Ltd. 2,134,742.51 1,314,190.2
Accounts receivable China National Medicines Co.,Ltd. 740,077.4 1,247,692.04
Accounts receivable Sinopharm Holding Jiangsu Co., Ltd. 1,439,815.92 1,205,326.99
Accounts receivable Sinopharm Holding Guoda Pharmacy Co.,Ltd 829,995.18 898,459.41
Accounts receivable Sinopharm Holding Shanxi Co., Ltd. 4,505,489.29 848,442.92
Accounts receivable Sinopharm Holding Tianjin North Medicine Co., Ltd. 455,040 772,312.82
Accounts receivable Sinopharm Holding Henan Co., Ltd. 629,078.06 767,371.91
Accounts receivable Sinopharm Holding Fuzhou Co., Ltd. 633,504 731,732
Accounts receivable Sinopharm Holding Inner Mongolia Co., Ltd. 711,133.2 611,446.26
Accounts receivable Sinopharm Holding Gansu Co., Ltd. 1,481,660.52 547,254.55
Accounts receivable Sinopharm Holding Jilin Co., Ltd. 853,527.3 511,469.28
Accounts receivable Shanghai Chaohui Pharmecurical Co., Ltd. 577,848.74 479,842.84
Accounts receivable Sinopharm Holding Longyan Co., Ltd. 202,676 450,684
Accounts receivable Sinopharm Holding Chongqing Co., Ltd. 3,239,788.6 448,242.32
Accounts receivable Guang dong South National Pharmaceutical Foreign 363,168 408,424.32
Trade Co.,Ltd.
Accounts receivable Sinopharm Holding Heilongjiang Co., Ltd. 1,291,896.32 377,608.04
Accounts receivable Sinopharm Holding Suzhou Co., Ltd. 466,703.4 376,056
Accounts receivable Sinopharm Holding Shenyang Co., Ltd. Dalian Branch 90,500 368,970
Accounts receivable Sinopharm Holding Taizhou Co., Ltd. 364,194.4 289,541.69
Accounts receivable Sinopharm Holding Guizhou Co., Ltd. 272,530.4 278,098
Accounts receivable Sinopharm Holding Xuzhou Co., Ltd. 617,568.61 270,367.47
Accounts receivable Sinopharm Holding Wuxi Co., Ltd. 222,041.81 251,225.8
Accounts receivable Guangzhou Accord Pharm Chain Co., Ltd. 149,021.81 230,271.27
Accounts receivable Sinopharm Holding Meiluo (Dalian) Co., Ltd 391,886 219,559.66
Accounts receivable Sinopharm Holding Zhangzhou Co., Ltd. 348,613.44 200,000
Accounts receivable Sinopharm Holding Nanjing Co., Ltd. 157,950 139,160
Accounts receivable Sinopharm Holding Yancheng Co., Ltd. 224,337 95,290
Accounts receivable Sinopharm Group Wei qida Medicine Co., Ltd 932,920 86,070
Accounts receivable Sinopharm Holding Ningde Co., Ltd. 537,926.24 43,224
Accounts receivable Sinopharm Holding Anshun Co., Ltd. 35,600
Accounts receivable Sinopharm Holding Changzhou Co., Ltd. 64,632 33,984
Accounts receivable Sinopharm Holding Changzhou Medical logistics center 71,517 28,770
Co., Ltd.
Accounts receivable Sinopharm Holding Lishui Co., Ltd 19,860 14,940
235
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Accounts receivable Sinopharm Holding Jiangxi Co., Ltd. 54,221 9,540
Accounts receivable Sinopharm Holding Sanming Co., Ltd 2,610
Accounts receivable China National Scientific Instruments & Materials 2,376
Corporation
Accounts receivable Sinopharm Holding Qujing Co., Ltd. 280
Accounts receivable Sinopharm Holding Nantong Co., Ltd. 2,562,040.7
Accounts receivable Sinopharm Holding Anhui Co., Ltd. 207,931
Accounts receivable Sinopharm Holding (Jiangsu) Chinese Western 1,067,570
Medicine Branch Company
Accounts receivable Sichuan Hexin Pharmaceutical Co.,Ltd. 269,800
Accounts receivable Sinopharm Holding Hunan Deyuan Medicine Co., Ltd. 89,800
Accounts receivable Sinopharm Holding Yantai Co., Ltd 150,861.6
Accounts receivable Sinopharm Holding Putian Co., Ltd. 99,842.6
Accounts receivable Sinopharm Holding Wuhu Co., Ltd. 112,491
Accounts receivable Sinopharm Holding Xinjiang Special Drugs Kaxqar 40,032
Pharmaceutical Co.,Ltd.
Accounts receivable Sinopharm Group Shanghai Likang Medicine Stock 148,200
Co.,Ltd.
Accounts receivable Sinopharm Holding Anqing Co., Ltd. 42,960
Accounts receivable Sinopharm Holding Xinjiang Kumul Pharmaceutical 60,048
Co.,Ltd.
Accounts receivable Sinopharm Holding Xinjiang Iliense Tongde 20,016
Pharmaceutical Co.,Ltd.
Accounts receivable Sinopharm Holding Qinghai Co., Ltd. 2,832
Accounts receivable Jiangmen RenRen Medical equipment Co.,Ltd -21.950.40
Other receivables Sinopharm Group Medicine Logistic Co., Ltd. 1,215,000 1,215,000
Notes receivable Chongqing Yaoyou Pharmaceutical Co.,Ltd. 14,712,000 21,648,000
Notes receivable Sinopharm Holding Hunan Co., Ltd. 2,183,376.96 6,701,980.4
Notes receivable Sinopharm Holding Tianjin Co., Ltd. 1,589,116 4,747,358
Notes receivable Sinopharm Holding Hubei Co., Ltd. 1,985,352.82 2,566,237.92
Notes receivable Sinopharm Holding Hainan Co., Ltd. 2,692,007.02 2,035,726.34
Notes receivable Guangdong Accord Drug Store Co., Ltd. 4,212,488.44 1,854,083.26
Notes receivable Sinopharm Group Southwest Medicine Co., Ltd 2,336,797.24 1,441,019.38
Notes receivable Guangxi Accord Pharm Chain Co., Ltd. 624,439.15 474,582.55
Notes receivable Sinopharm Holding Chongqing Co., Ltd. 346,772 443,273.4
Notes receivable Sinopharm Holding Jiangsu Co., Ltd. 300,000
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Notes receivable Sinopharm Holding Xuzhou Co., Ltd. 700,350 254,442
Notes receivable Sinopharm Holding Fuzhou Co., Ltd. 106,207.2 108,576
Notes receivable Sinopharm Holding Yancheng Co., Ltd. 100,860
Notes receivable Sinopharm Holding Guoda Pharmacy Store Shenyang 68,299.4
Chain Co.,Ltd
Notes receivable Sinopharm Holding Shengyang Co., Ltd. 560,040 40,227
Notes receivable Sinopharm Holding Yantai Co., Ltd 22,752
Notes receivable Sinopharm Holding Gansu Co., Ltd. 548,060
Notes receivable Sinopharm Holding Hebei Medcine Co., Ltd. 840,471.84
Notes receivable Sinopharm Holding Henan Co., Ltd.
Notes receivable Sinopharm Holding Shanxi Co., Ltd. 1,570,177
Notes receivable Sinopharm Holding Hunan Deyuan Medicine Co., Ltd. 10,000
Notes receivable Sinopharm Holding Zhangzhou Co., Ltd. 543,464.76
Notes receivable Sinopharm Holding (Jiangsu) Chinese Western 50,000
Medicine Branch Company
Notes receivable Sinopharm Holding Beijing Huahong Co., Ltd. 351,254
Notes receivable Sinopharm Holding Guoda Pharmacy Co.,Ltd 208,952
Notes receivable Sinopharm Holding Wuhu Co., Ltd. 128,331
Advances to suppliers Qinghai Pharmaceutical factory Co., Ltd 3,182,179 3,053,637.46
Advances to suppliers Company’s ultimate controlling equity holder 50,000 50,000
Advances to suppliers Handan Pharmaceutical Co.,Ltd 11,111.19
Advances to suppliers Sinopharm Holding Suzhou Co., Ltd. 9,515.8
Advances to suppliers Shenzhen Accord Pharmaceutical Chain Co., Ltd 5,800
Advances to suppliers Sinopharm Holding Zhangzhou Co., Ltd. 3,469.23
Advances to suppliers Yichang Humanwell Pharmaceutical Co.,Ltd. 2,087.21 2,138
Advances to suppliers Sino-Swed Pharmaceutical Corp.Ltd. 38.21 101.69
Advances to suppliers Harson Shanghai Modern Pharmaceutical (Shangqiu) 6,291.58
Co., Ltd.
Advances to suppliers Sinopharm Group Chemical Reagent Suzhou Co., Ltd. 57,500
Advances to suppliers Guangdong Accord Drug Store Co., Ltd. 13,907.31
Advances to suppliers Sinopharm Group United Medical Equipment Co.,Ltd 278.92
Payables to related parties:
Currency: RMB
Account name Related party Ending balance Opening
balance
237
2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Accounts payable Sinopharm Holding Sub Marketing Center Co., Ltd. 128,944,353.8 123,766,255.86
Accounts payable Sinopharm Group 41,973,797.04 74,626,867.68
Accounts payable China National Medicines Co.,Ltd. 27,620,614.98 23,013,857.35
Accounts payable Shenzhen Wanle Pharmaceutical Co., Ltd. 5,254,353.1 5,940,814.16
Accounts payable Sino-Swed Pharmaceutical Corp.Ltd. 12,575,600.39 5,072,420.31
Accounts payable Sinopharm Group Wei qida Medicine Co., Ltd 2,662,086.33 2,783,057.4
Accounts payable Jiangsu Wanbang Pharmacy Marketing Co., Ltd. 2,746,484.43 2,627,673.78
Accounts payable Chongqing Yaoyou Pharmaceutical Co.,Ltd. 2,094,402.89 2,462,129.34
Accounts payable Shenzhen Wanwei Medicine trading Co., Ltd 1,772,854.1 2,090,570.05
Accounts payable Chongqing Haisiman Pharmaceutical Co.,Ltd. 2,737,005.15 1,884,450.37
Accounts payable Sinopharm Holding Guizhou Co., Ltd. 1,567,660.48 1,813,752.86
Accounts payable Guangdong East Uptodate & Special Medicines Co.,Ltd. 212,547.01 1,734,004.4
Accounts payable Guang dong South National Pharmaceutical Foreign Trade 3,675,795.74 1,536,301.67
Co.,Ltd.
Accounts payable Sinopharm Holding Beijing Co., Ltd. 111,479 536,279
Accounts payable Guangdong Accord Drug Store Co., Ltd. 433,456.4
Accounts payable Shanghai Shyndec Pharmaceutical Co., Ltd. 163,733.81 115,786.71
Accounts payable China National Corporation of Traditional & Hebal Medical 201,022.5
Accounts payable Foshan Nanhai Uptodate & Special Medicines Co.,Ltd. 98,873.68 178,143.35
Accounts payable Sinopharm Group Medicine Logistic Co., Ltd. 183,845.92 128,845.92
Accounts payable Foshan Nanhai Medicine Co.,Ltd. 30,812.17 86,263.8
Accounts payable Guilin South pharmaceutical Co., Ltd 82,573.81 77,480.48
Accounts payable Sinopharm Holding Fujian Co., Ltd. 2,152,778 52,439.34
Accounts payable Handan Pharmaceutical Co.,Ltd 15,746.41 42,450
Accounts payable Sinopharm Group Shanghai Medicine Device Co., Ltd. 16,603.02 40,615.74
Accounts payable Shenyang Hongqi Pharmaceutical Co.,Ltd. 18,719.74 29,786.5
Accounts payable Yichang Humanwell Pharmaceutical Co.,Ltd. 24,387.02 26,214.85
Accounts payable Shanghai Chaohui Pharmecurical Co., Ltd. 18,551.36 24,069.49
Accounts payable Sinopharm Group Chemical Reagent Suzhou Co., Ltd. 44,677.67 23,217.12
Accounts payable Jiangsu Wanbang Bio-Chemical Medicine Co., Ltd. 14,906.71 14,906.71
Accounts payable Shanghai Sailun Biological Technology Co.,Ltd. 10,671.57 10,671.57
Accounts payable Sinopharm Group Beijing Medical equipment Co.,Ltd 8,827.77 8,827.77
Accounts payable China Otsuka Pharmaceutical Co.,Ltd. 109,117.85 7,519.35
Accounts payable Sinopharm Group Guorui Medicine Co.,Ltd. 7,996.92 4,920
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Accounts payable Shanghai Medicine Hospital Medical Co., Ltd. 1,361.96 3,681.96
Accounts payable China National Medical Equipment & Supplies I/E 3,519.19 3,519.19
(Shenzhen) Co.,Ltd.
Accounts payable Sichuan Jiang You Zhong Ba Science and Technology 360 2,110
Development Co.,Ltd.
Accounts payable Shanghai Fosun Long March Medical Science Co., Ltd. 1,751.39 1,751.39
Accounts payable Sinopharm Group United Medical Equipment Co.,Ltd 1,551.3
Accounts payable China National Pharmaceutical Foreign Trade Corporation 929.12 929.12
Accounts payable Sinoparm Qianjing Stomatological Technology (Beijing) 109.4 109.4
Co.,Ltd
Accounts payable Sinopharm Group Chemical Reagent Co., Ltd. 221,553.04
Accounts payable Sinopharm Holding Hainan Co., Ltd. 220,057.27
Accounts payable Sinopharm Yixin Medicine Co.,Ltd. 143,130
Accounts payable Sinopharm Holding Yunnan Co., Ltd. 146,640
Accounts payable Sinopharm Holding Hunan Co., Ltd. 79,228.8
Accounts payable Xiamen XingShahuaide Pharmaceutical Co.,Ltd. 1,113.85
Accounts payable Shenzhen Accord Pharmaceutical Chain Co., Ltd 773.3
Accounts payable Shanghai Fosun Pharmaceutical Co., Ltd. 189.71
Notes payable Sinopharm Group 33,766,814.21 106,150,930.62
Notes payable Sinopharm Holding Sub Marketing Center Co., Ltd. 190,996,505.07 27,725,806.59
Notes payable China National Medicines Co.,Ltd. 16,351,542.29
Notes payable Jiangsu Wanbang Pharmacy Marketing Co., Ltd. 1,352,200 3,072,000
Notes payable Chongqing Haisiman Pharmaceutical Co.,Ltd. 1,845,400 1,713,387
Notes payable Sinopharm Group Wei qida Medicine Co., Ltd 6,785,958 1,500,000
Notes payable Shenzhen Wanle Pharmaceutical Co., Ltd. 873,870 1,197,872.4
Notes payable Chongqing Yaoyou Pharmaceutical Co.,Ltd. 470,872 895,540
Notes payable Sinopharm Group Chemical Reagent Suzhou Co., Ltd. 204,970.92 332,561.31
Notes payable Guilin South pharmaceutical Co., Ltd 112,246
Notes payable Sinopharm Holding Fujian Co., Ltd. 61,965
Notes payable Shanghai Shyndec Pharmaceutical Co., Ltd. 33,674.8
Advances from 7,750 7,750
customer Sinopharm Holding Nanjing Co., Ltd.
Advances from 442
customer Sinopharm Holding Hunan Co., Ltd.
Advances from 278,906.08
customer Sinopharm Holding Hebei Medcine Co., Ltd.
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Advances from 16,547.66
customer Sinopharm Holding Taizhou Co., Ltd.
Advances from 1,471.73
customer Sinopharm Holding Jinan Co., Ltd.
Other payables Guangdong East Uptodate & Special Medicines Co.,Ltd. 1,350,000 4,900,000
Other payables Sinopharm Group 3,930,696.87 3,730,696.87
Other payables China National Pharmaceutical Group Shanghai Co.,Ltd 1,660,431.38 1,660,431.38
Other payables China National Corporation of Traditional & Hebal Medical 1,500,000 1,300,000
Other payables National Pharmaceutical Group Wuhan Pharmaceutical 160,000 600,000
Industry Design Institute
Other payables Sinopharm Group Chemical Reagent Suzhou Co., Ltd. 160,000
Other payables Sinopharm Group Medicine Logistic Co., Ltd. 3,540,000
Other payables Sinopharm Group Shanghai Medicine Device Co., Ltd. 30,000
Other payables Sinopharm Holding Sub Marketing Center Co., Ltd. 0 200,000
Other payables Peng JianXiong 93,504 0
Entrusted loans Sinopharm Group 202,630,000 337,370,000
Interest payable Sinopharm Group 374,692.26 697,845.63
Other non-current 35,061,800 35,061,800
liabilities Sinopharm Group
(X)Share-base payment
1. General information of Share-base payment
Nil
2,General information of Share-base payment in equity method
Nil
3. Information of Share-base payment in cash
Nil
4,Share-base payment on behalf of employees
Nil
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5,Information of share-base payment amendment and termination
Nil
(XI) Contingency
1. Contingent liabilities and its financial effect arising from unsettled litigation or arbitration
N/A
2. Contingent liabilities and its financial effect arising from loan guarantee offered to other
companies
N/A
Other contingent liabilities and its financial effect:
N/A
(XII) Commitments
1. Significant commitments
(1) Capital expenditure commitments
Commitments signed but hasn’t been recognized in financial statements
(Unit:RMB0,000)
Item June 30,2012 December 31,2011
Property, Premise and Equipment 1,897.95 6,310.25
(2) Operating lease commitments
The Group's future minimum rent to be paid is as follows according to the
non-cancellable operating lease contract: (Unit:RMB0,000)
Duration June 30,2012 December 31,2011
Within 1 year 1,119.01 2,632.81
1 to 2 years 995.45 1,015.44
2 to 3 years 955.77 952.76
3 years above 8,646.92 8,666.20
Total 11,717.15 13,267.21
2. Fulfillment of prior commitments
The Group had fulfilled its’ Capital expenditure commitments and Operating lease commitments
for December 31, 2011.
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(XIII)Events after the Balance Sheet Date
1. Notes of significant events after the Balance Sheet Date
N/A
2. Notes of profit distribution after Balance Sheet Date
N/A
3. Notes of other events after Balance Sheet Date
Other subsequent events after the balance sheet date
I. Business combinations after the balance sheet date
1. According to the 11th meeting minutes of sixth board of directors, the Company purchased 25% minority
shareholder of subsidiary Suzhou Wanqing with the consideration of Rmb31.65 million.
2. According to the 11th meeting minutes of sixth board of directors, the Company purchased 70%
shareholder of Shaoguan zhongqian medicine Co,Ltd with the consideration of Rmb15.38 million.
3. According to the 11th meeting minutes of sixth board of directors, the Company set up new subsidiary in
Guangdong zhongshan with registered capital of Rmb10 million.
II. Short-term financing bond issue after balance sheet date
On 22 October 2011, the Company announced to issue short-term financing bond with the amount no more
than Rmb400 million. Up to date, the Company has got the approval from China interbank market and on 9
August 2012, it raised Rmb400 million's short term financial bond with par annual interest rate of 4.03%, due
from 10 August 2012 to 10 August 2013, and repayment the capital and interest when expired.
(XIV)Notes of other significant events
1. Exchange of non-monetary assets
N/A
2. Debt reorganization
N/A
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3. Business combination
N/A
4. Lease
N/A
5. Closing financial instruments that externally issued and convertible into shares
N/A
6. Main content and significant changes of annuity plan
The Company established enterprise annuity plan according to and in
January 2011. The company has sustained profitability and payment ability to establish the annuity plan. Up
to June 2012, there are twelve subsidiaries, nearly 764 staff joining the annuity plan. Enterprise annuity plan
is paid by both company and staff. The company paid the expense through relevant regulation and also
withhold the part of staff. The rate of company does not exceed 3% of wages in previous year and the rate of
staff is not less than a quarter of the company. And also expense base is no larger than 5 time's average
monthly wages and also no larger than the group standards.
7. Other significant events
N/A
（XV）Notes to the main items of financial statement of the Company
1、Account receivables
（1）Account recievables
category 2012/06/30 2011/12/31
Carrying amount Bad debt provision Carrying amount Bad debt provision
Amount % of Amount % of Amount % of Amount % of
total total total total
balanc balanc balanc balanc
e e e e
Individually 0 0 0 0% 0 0%
significant
are subject
to
impairment
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assessmen
t
Receivable accounts within similar credit risk group
Aging 369,480,124.5 99.68% 0 295,227,856.2 99.61% 0 0%
4
subtotal 369,480,124.5 99.68% 0 0% 295,227,856.2 99.61% 0 0%
4
Individually 1,169,085.93 0.32% 1,169,085.9 100% 1,169,085.93 0.39% 1,169,085.9 100%
not 3 3
significant
but
individually
evaluated
for
impairment
Total 370,649,210.4 -- 1,169,085.9 -- 296,396,942.1 -- 1,169,085.9 --
7 3 3 3
Individually significant are subject to impairment assessment
N/A
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The ageing of account receivables is analyzed as follows：
√ applicable
2012/06/30 2011/12/31
Carrying amount Carrying amount
Aging Bad debt Bad debt
% of total % of total
Amount provision Amount provision
balance balance
Within 1 year
-- -- -- -- -- --
369,480,124.54 100% 295,227,856.2 100% 0
Within 1
369,480,124.54 100% 0 295,227,856.2 100% 0
year
Total 369,480,124.54 -- 0 295,227,856.2 -- 0
In the company, accounts receivable adopting balance percentage method to withdraw bad debt provision:
□Applicable √Not applicable
In the company, accounts receivable adopting other methods to withdraw bad debt provision
□Applicable √Not applicable
Accounts receivable individually not significant but individually evaluated for impairment are analyzed below:
√ applicable
Per book Bad debt provision % of provision Reason
Guangdong Liyuan Disputed receivables with
1,169,085.93 1,169,085.93 100%
Pharmaceutical Co., Ltd. uncertainty in recoverability
Total 1,169,085.93 1,169,085.93 100% --
(2) Reversals and collections during the period
□Applicable √Not applicable
(3) Accounts receivable written off in the period
□Applicable √Not applicable
(4) Accounts receivable due from shareholders with more than 5% (including 5%) of the
Company’s equity interest are analyzed as below:
□Applicable √Not applicable
(5) Nature or content of account receivables with significant amount.
□Applicable √Not applicable
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（6）The top five accounts receivable by customer are analysed as below:
Relationship with % of the total accounts
Customer name Amount Aging
the company receivable
Shenzhen Second People’s
The third party 24,999,106.4 Within 1 year 6.74%
Hospital
Peking University Shenzhen The third party Within 1 year
18,896,529.29 5.1%
Hospital
Shenzhen Nanshan Center The third party Within 1 year
15,402,465.43 4.16%
People’s Hospital
Shenzhen institute of The third party Within 1 year
15,083,201.68 4.07%
traditional Chinese medicine
Shenzhen People’s Hospital The third party 13,265,836.73 Within 1 year 3.58%
Total -- 87,647,139.53 -- 23.65%
（7）Accounts receivable due from related party
Relationship with the % of the total accounts
Company name Amount
company receivable
Sinopharm Jianmin Subsidiary 14,515,231.56 3.92%
Sinopharm Yanfeng Subsidiary 160,468.2 0.04%
Sinopharm Guangzhou Subsidiary 2,885,285.42 0.78%
Sinopharm Liuzhou Subsidiary 68,342.4 0.02%
Sinopharm hengxing Subsidiary 2,093,929.53 0.56%
Sinopharm Guangxi Subsidiary 34,995.12 0.01%
Sinopharm Foshan Subsidiary 57,272.75 0.02%
Sinopharm Dongguan Subsidiary 127,912.9 0.03%
Sinopharm Zhanjiang Subsidiary 224,099.47 0.06%
Sinopharm Meizhou Subsidiary 86,280.23 0.02%
Sinopharm Huizhou Subsidiary 38,609.8 0.01%
Sinopharm Yuexing Subsidiary -571.17 0%
Guangdong Accord Drug Controlled by Sinopharm
4,717,621.41 1.27%
Store Co.,Ltd. Group
Foshan Nanhai Uptodate & Controlled by Sinopharm
652,698.37 0.18%
Special Medicines Co.,Ltd. Group
Foshan Nanhai Medicine Controlled by Sinopharm
1,741,953.5 0.47%
Co.,Ltd. Group
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Total -- 27,404,129.49 7.39%
(8) Derecognition of accounts receivable
□Applicable √Not applicable
(9) Description of securitization on the accounts receivables
□Applicable √Not applicable
2、Other receivables
（1）Other receivables
category 2012/06/30 2011/12/31
Carrying amount Bad debt provision Carrying amount Bad debt provision
Amount % of Amount % of Amount % of Amount % of
total total total total
balanc balanc balanc balanc
e e e e
Individually 8,980,000 1.18% 8,980,000 100% 8,980,000 1.26% 8,980,000 100%
significant
are subject
to
impairment
assessment
Receivable accounts within similar credit risk group
Aging 751,308,538.8 98.42% 350.65 0% 704,287,366.9 98.57% 350.65 0%
2 7
Aging 751,308,538.8 98.42% 350.65 0% 704,287,366.9 98.57% 350.65 0%
subtota 2 7
l
Individually 3,030,906.74 0.4% 1,227,813.9 40.51% 1,227,813.95 0.17% 1,227,813.9 100%
not 5 5
significant
but
individually
evaluated
for
impairment
Total 763,319,445.5 -- 10,208,164. -- 714,495,180.9 -- 10,208,164. --
6 6 2 6
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Impairment provision for other receivables individually significant.
√ Applicable
Amount Bad debt provision Rate reason
Shenzhen Yinghai Technology Uncertainty in
8,980,000 8,980,000 100%
Investment Co., Ltd. recoverability
Total 8,980,000 8,980,000 -- --
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Provisions for impairment of the receivables which have a similar risk group
√ Applicable
2012/06/30 2011/12/31
Carrying amount Carrying amount
Aging Bad debt Bad debt
% of total % of total
Amount provision Amount provision
balance balance
Within 1 year
-- -- -- -- -- --
751,305,032.34 100% 0 704,280,353.95 100% 0
Within 1 year 751,305,032.34 100% 0 704,280,353.95 100% 0
1 to 2 years 0 7,013.02 0% 350.65
2 to 3 years 3,506.48 0% 350.65
Total 751,308,538.82 -- 350.65 704,287,366.97 -- 350.65
In the company, other receivable adopting balance percentage method to withdraw bad debt provision:
□Applicable √Not applicable
In the company, other receivable adopting other methods to withdraw bad debt provision
□Applicable √Not applicable
Other receivables individually not significant but individually evaluated for impairment
√ Applicable
Assessment for
Amount Bad debt provision Rate
impairment
Shenzhen Health Food Uncertainty in
1,157,860 1,157,860 100%
I&E Co. Ltd. recoverability
Uncertainty in
Others 1,873,046.74 69,953.95 3.73%
recoverability
Total 3,030,906.74 1,227,813.95 40.51% --
(2) Reversals and collections during the period
□Applicable √Not applicable
(3) Other receivables written off in the period
□Applicable √Not applicable
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(4) Accounts receivable due from shareholders with more than 5% (including 5%) of the
Company’s equity interest are analysed as below
□Applicable √Not applicable
（5）Nature of other receivables with larger amount
Item Amount
Amounts due from subsidiaries
749,127,262.30
Receivable from equity
transaction 8,980,000.00
Borrowings due from employees 1,452,668.48
Others 3,759,514.78
（6）The top five other receivables by customer are analysed below:
Relationship % of the total
Company Name Amount Aging
with the Company other receivable
Sinopharm guangxi Subsidiary 184,781,026 Within 1 year 24.21%
Sinopharm Yuexing Subsidiary 154,961,520.36 Within 1 year 20.30%
Sinopharm Zhanjiang Subsidiary 104,112,125.00 Within 1 year 13.64%
Sinopharm Hengxing Subsidiary 75,386,311.40 Within 1 year 9.88%
Sinopharm Foshan Subsidiary 46,055,412.50 Within 1 year 6.03%
Total -- 565,296,395.26 -- 74.06%
（7）Other receivables due from related parties
Relationship with the % of the total
Company name Amount
Company other receivable
Sinopharm Guangxi Subsidiary 184,781,025.85 24.21%
Sinopharm Yuexing Subsidiary 154,961,520.36 20.3%
Sinopharm Zhanjiang Subsidiary 104,112,125 13.64%
Sinopharm Hengxing Subsidiary 75,386,311.4 9.88%
Sinopharm Foshan Subsidiary 46,055,412.5 6.03%
Sinopharm Dongguan Subsidiary 38,348,587.5 5.02%
Huixin Investment Subsidiary 28,025,467.5 3.67%
Sinopharm Meizhou Subsidiary 27,535,587.5 3.61%
Sinopharm Jianmin Subsidiary 24,941,084.56 3.27%
Sinopharm Huizhou Subsidiary 20,521,937.5 2.69%
Guangxi Logistics Subsidiary 14,223,075 1.86%
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2012 Semi-annual Report of China National Accord Medicines CO.,LTD.
Guangdong Logistics Subsidiary 10,416,250 1.36%
Sinopharm material Subsidiary 6,500,000 0.85%
Sinipharm Jiangmen Subsidiary 5,008,125 0.66%
Shenzhen Logistics Subsidiary 7,395,842.8 0.97%
Sinopharm Zhaoqing Subsidiary 500,812.5 0.07%
Zhijun Pharm Subsidiary 214,097.33 0.03%
Suzhou Wanqing Subsidiary 200,000 0.03%
Total -- 749,127,262.3 98.14%
(8) Derecognition of other receivables
□Applicable √Not applicable
(9) Description of securitization on the other receivables
□Applicable √Not applicable
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3、Long-term equity investments
Company Accounting Original 2011/12/31 Increase/dec 2012/06/30 Equit Votin Explanation for the impairment Impair Cash
Name method investment rease y g inconsistence ment dividen
cost intere rights between equity this d
st held interest held and period
held (%) voting rights held
(%)
Zhijun Cost 73,903,284.87 204,903,284.8 204,903,284.87 100% 100%
Pharm method 7
Sinopharm Cost 45,054,911.04 45,054,911.04 45,054,911.04 100% 100%
Jianmin method
Sinopharm Cost 5,400,000 6,450,875.93 6,450,875.93 100% 100%
Material method
Shenzhen Cost 900,000 1,019,062.68 1,019,062.68 100% 100%
Logistics method
Sinopharm Cost 58,283,114.68 435,440,323.6 435,440,323.63 100% 100%
Guangzho method 3
u
Zhijun Cost 3,006,866.42 3,006,866.42 3,006,866.42 100% 100%
Trade method
Sinopharm Cost 8,421,544.08 35,763,288 35,763,288 100% 100%
Hengxing method
Training Cost 30,000 30,000 30,000 100% 100%
center method
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Sinopharm Cost 4,987,919.71 4,987,919.71 -4,987,919.7 0% 0%
Yulin method 1
Sinopharm Cost 21,407,965.79 21,407,965.79 21,407,965.79 51% 51%
Liuzhou method
Sinopharm Cost 2,742,000 9,942,000 9,942,000 100% 100%
dongguan method
Huixin Cost 109,416,937.7 64,416,937.72 64,416,937.72 100% 100%
Investment method 2
Guangzho Cost 1,269,502.3 5,596,006.21 5,596,006.21 100% 100%
u Logistics method
Sinopharm Cost 16,459,326.27 43,459,326.27 43,459,326.27 100% 100%
Yuexing method
Sinopharm Cost 6,995,065.51 14,995,065.51 14,995,065.51 100% 100%
Foshan method
Suzhou Cost 134,250,000 134,250,000 134,250,000 75% 75%
Wanqing method
Sinopharm Cost 33,048,985.28 104,048,985.2 104,048,985.28 100% 100%
Guangxi method 8
Sinopharm Cost 1,369,864.65 15,769,864.65 15,769,864.65 100% 100%
zhanjiang method
Sinopharm Cost 38,207,800 38,207,800 38,207,800 51% 51%
Yanfeng method
Sinopharm Cost 4,481,900 4,481,900 4,481,900 100% 100%
Meizhou method
Shenzhen Cost 37,850,830.38 37,850,830.38 37,850,830.38 100% 100%
Medicine method
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Sinopharm Cost 20,939,177.19 5,644,200 5,644,200 100% 100%
Huizhou method
Shenzhen Cost 7,689,226.69 7,689,226.69 7,689,226.69 100% 100% 7,689,226.
Trade method 69
Sinopharm Cost 5,060,000 5,060,000 5,060,000 100% 100%
zhaoqing method
Sinopharm Cost 56,000,000 56,000,000 56,000,000 100% 100%
Jiangmen method
Shenzhen 95,799,627.42 2,495,698.29 98,295,325.71 35.19 33.33 13,520,
Wanle % % 461.47
Equity
Pharmace 4,457,400
method
utical Co.,
Ltd.
Total -- 701,633,622.5 1,340,216,268 58,567,778.5 1,398,784,046.7 -- -- -- 7,689,226. 0 13,520,
8 .2 8 8 69 461.47
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4、Sales and cost of sales
（1） Sales, cost of sales
Item 2012 half year 2011 half year
Revenue of main operations 1,058,403,057.36 943,364,252.68
Other operating income 3,510,823.22 3,389,179.76
Cost of sales 1,009,526,559.83 901,521,599.01
Total
（2）Revenue and cost of main operations analyzed by industries are set out below:
2012 half year 2011 half year
Revenue of Cost of main Revenue of Cost of main
main operations operations main operations operations
Pharmaceutical distribution 1,058,403,057.36 1,008,100,639.25 943,364,252.68 900,549,886.73
Total 1,058,403,057.36 1,008,100,639.25 943,364,252.68 900,549,886.73
（3）Revenue and cost of main operations analyzed by products are set out below:
□Applicable √Not applicable
（4）Revenue and cost of main operations analyzed by regions are set out below:
□Applicable √Not applicable
（5）Top five companies according to sales
Sales % of total
sales of the
group
Shenzhen People Hospital (Hospital department) 59,339,367.53 5.61%
Shenzhen Second People's Hospital 54,435,974.69 5.14%
Peking University Shenzhen Hospital 50,147,820.99 4.74%
Shenzhen People's Hospital of Nanshan District, 35,990,043.02 3.4%
Shenzhen Hospital of Traditional Chinese Medicine (two outpatient western 25,965,633.19 2.45%
library)
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国药集团一致药业股份有限公司 2012 年半年度报告全文
Total 225,878,839.42 21.34%
Note: N/A
5 Investment income
（1）Details of investment income
Six months ended 30 June
Six months ended 30 June 2012
2011
Gains/losses recognized under cost method 316,636,115.7 235,060,478.67
Gains/losses recognized under equity method 16,016,159.76 12,810,289.3
Gains/losses on disposal of long-term equity
436,680.29
investments
Gains from holding of held-for-trading financial assets
Gains from holding of held-to-maturity investments
Gains from holding of available –for-sale financial assets
Gains/losses on disposal of held-for-trading financial
assets
Gains/losses on held-to-maturity investment
Gains/losses on available-for-sale financial assets
Others
Gains/losses recognized under cost method 333,088,955.75 247,870,767.97
（2）Gains/losses recognized under cost method
Six months ended Six months ended
Investee Reason for changes
30 June 2012 30 June 2011
Zhijun Pharm 170,527,785.07 112,085,162.99 Profitability rises
Sinopharm guangzhou 99,439,823.03 81,249,558.61 Profitability rises
Sinopharm guangxi 30,121,638.83 25,801,204.12 Profitability rises
Sinopharm yuexing 4,704,136.15 5,900,495.08 Profitability rises
Sinopharm material 2,552,710.73 2,423,326.99 Profitability rises
Other 9,290,021.89 7,600,730.88 Profitability rises
Total 316,636,115.7 235,060,478.67 --
（3）Gains/losses recognized under equity method
Six months ended Six months ended
Investee Reason for changes
30 June 2012 30 June 2011
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国药集团一致药业股份有限公司 2012 年半年度报告全文
Shenzhen Wanle Pharmaceutical Co.,
16,016,159.76 12,810,289.3 Profitability rises
Ltd.
Total 16,016,159.76 12,810,289.3 --
Note: N/A
6. Supplementary information of cash flow statements
Six months ended 30 June Six months ended 30 June
Supplementary information
2012 2011
1．Adjusting net profit to net cash flow in operating activities: -- --
Net profit 326,019,343.36 229,549,305.5
Add: Provision for assets impairment -87,845.57 252,914.4
Depreciation of fixed assets and investment properties 3,762,686.67 3,651,348.56
Amortisation of intangible assets 844,228.64 877,635.24
Amortisation of long-term prepaid
569,556.3 424,564.89
Expenses
Gains on disposal of fixed assets, intangible assets and other
23,154.69 250,055.35
non-current assets
Loss from scrapping of fixed assets 0
Loss from fair change 0
Financial expenses 11,725,700.6 16,818,820.34
Investment income -333,088,955.75 -247,870,767.97
Increase of deferred tax assets 2,298,245.25 -334,917.79
Decrease of deferred tax liabilities
Decrease/(increase) of inventory 8,682,514.28 337,532.8
Increase in operating receivables -72,592,952.09 6,266,631.47
Increase in operating payables 99,800,033.57 -50,284,782.59
Others
Net cash flow from operating activities 47,955,709.95 -40,061,659.8
2. Net increase of cash and cash equivalent -- --
Transferring debts to capital
Convertible corporate bond to mature within one year
Leasing fixed assets through financing
3. Movement of cash -- --
Cash at period end 144,950,816.05 239,018,666.86
Less: cash at beginning of year 164,840,499.86 135,498,819.87
Add: cash equivalent at the end of the period
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国药集团一致药业股份有限公司 2012 年半年度报告全文
Less: cash equivalent at the beginning of the period
Net increase in cash -19,889,683.81 103,519,846.99
7、Information of assets and liabilities recognized by evaluation value from the counter purchase
√Not applicable
(XVI)Supplementary
1. Return on equity and earnings per share
Currency: RMB
Profit of report period Weighted Average Earnings per share
return on equity(%)
Basic earnings per Diluted earnings per
share share
Consolidated net profit attributable to the 16.35% 0.833 0.833
shareholders of the Company
Consolidated net profit attributable to the 16.92% 0.862 0.862
shareholders of the Company, excluding
non-routine items
2. Notes for significant fluctuation of major accounts in financial statements
1. Other receivables: Increase by RMB24.2 million compares to opening balance, growth rate is
84.46%, mainly due to staff borrowing, reserve fund and other income increased.
2. Other current assets: Decrease by RMB3.59 million compares to opening balance, growth rate
is -46.91%, the mainly reason is deductable valued added tax decreased corporate income tax
decreased.
3. Goodwill: Increase by RMB29.99 million compares to opening balance, growth rate is 55.99%,
the mainly reason is the Company takeover two companies Sinopharm zhaoqing and Sinopharm
jiangmen under non common control during this period, results in increasing goodwill.
4. Other non-current assets: Increase by RMB95.98 million compares to opening balance, growth
rate is 238.32%, the mainly reason is the subsidiary of the Company Guangxi Logistics received
compensation from demolition and the advanced to suppliers for purchasing equipment increase.
5. Current portion of non-current liabilities: Decrease by RMB9.03 million compares to opening
balance, growth rate is -37.70%, the mainly reason is current portion of long-term borrowing
decreased and the subsidiary zhijun pharm’s promotion rewards program decreased.
6. Other non-current liabilities: Increase by RMB118.91 million compares to opening balance,
growth rate is 126.18%, the mainly reason is the subsidiaries of the Company Guangxi Logistics
retrieved compensation from demolition.
7. Capital surplus: Decrease by RMB3.19 million compares to opening balance, growth rate is
-36.46%, the mainly reason is the Company takeover Sinopharm Wuzhou under common control
in this period, retroactive adjusted opening balance of the period.
8. Taxes and surcharges: Increase by RMB11.03 million compare to the same period of previous
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国药集团一致药业股份有限公司 2012 年半年度报告全文
year, growth rate is 70.59%, the mainly reason is sales increased, city maintenance and
construction and local surcharge for Education tax rate increased.
9. Finance expense: Increase by RMB26.86 million compare to the same period of previous year,
growth rate is 43.57%, the mainly reason is influence by national monetary policy, bank loan
interest rate raised, the cost of financing increased because of financing scales expansion in the
other hand.
10. Asset impairment losses: Increase by RMB2.51 million compare to the same period of
previous year, growth rate is 42.76%, the mainly reason is inventory provision increased.
11. Non-operating expense: Increase by RMB29.69 million compare to the same period of
previous year, growth rate is 13,673.02%, the mainly reason is the subsidiary Guangxi Logistics
demolition expense and another subsidiary Huixin Investment paid for project termination
reimbursement.
12. Operating Profit, Gross profit, net profit: operating profit, gross profit and net profit increased
by RMB115.34 million, RMB89.74 million and RMB75.78million compare to the same period of
previous year seperately, the mainly reason is sales increased.
13.Refund of taxes and surcharges: Increase by RMB0.9 million compare to the same period of
previous year, growth rate is 121.51%, the mainly reason is the subsidiaries of the Company
received income tax overpaid last year.
14.Payment of taxes and surcharges: Increase by RMB91.33 million compare to the same period
of previous year, growth rate is 51.84%, the mainly reason is the sales increased and some tax
rate increased.
15.Cash received from returns on investments: Decrease by RMB1.83 million compare to the
same period of previous year, growth rate is -100%, the mainly reason is the Company received
the compensation of the transitional period losses of Shenzhen Medicine.
16.Net cash received from disposal of fixed assets, intangible assets and other long-term assets:
decreased by RMB0.93 million compare to the same period of previous year, growth rate is
-43.98%, the mainly reason is less fixed assets disposed this period.
17.Cash received relating to other investing activities: increased by RMB47.90 million compare to
the same period of previous year, growth rate is 2286.07%, the mainly reason is the subsidiary of
the Company retrieved cash compensation due to the demolition.
18.Cash pay to acquire investment: Decrease by RMB3.15 million compare to the same period of
previous year, growth rate is -100%, the mainly reason is cash payment for takeover subsidiaries
Yanfeng Medicine and Sinopharm Huizhou the same period of previous year.
19.Net cash paid to acquire subsidiaries and other business units: Increase by RMB24.62 million
compare to the same period of previous year, growth rate is 100%, the mainly reason is cash paid
to acquire three companies, Sinopharm Zhaoqing, Sinopharm Wuzhou, Sinopharm Jiangmen, but
no similar transaction the same period of previous year.
20.Cash paid relating to other investing activities: decrease by RMB9.7million compare to the sa
me period of previous year, growth rate is -100%,the mainly reason is the subsidiary of the Comp
any, Sinopharm Guangxi madefinal payment for acquiring Nanning Medicine Co., Ltd. the same
period ofprevious year.
21. Cash received relating to other financing activities: Increase by RMB125.78 million compare
to the same period of previous year, growth rate is 49.62%, the mainly reason is to maintain
business development, the Company increase unsecured borrowings, and widespread supply
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国药集团一致药业股份有限公司 2012 年半年度报告全文
chain financing.
22.Cash repayments of borrowings: Increase by RMB229.82 million compare to the same period
of previous year, growth rate is 70.34%, the mainly reason is the borrowing scale raised, so
repayment of borrowing also increase.
23.Cash payments for dividends or profit to minority shareholders of subsidiaries: Increase by
RMB42.84 million compare to the same period of previous year, growth rate is 59.26%, the mainly
reason is borrowing scale raised, result in financing expenses increased, and payments for
dividends increased
24.Cash payment relating to other financing activities: Increase by RMB108.83 million compare to
the same period of previous year, growth rate is 42.09%, the mainly reason is repayment for
unsecured borrowings, and supply chain financing is increase.
IX. Documents Available for Reference
Documents Available for Reference
I. Semi-annual Report of 2012 carried with the personnel signature of Legal Representative; II. Accounting
Statements carried with the signature and seals of the person in charge of the Company, accounting principle and
person in charge of accounting institution; III. All the original Company’s documents and public notices
disclosed in desinate periodic by CSRC Securities Times, and Hong Kong Commercial Daily designated by
CSRC; IV. Other relevant files
Chairman of the Board: Wei Yulin
Approval date by the Board: 17 August 2012
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