Section X. Financial Report
I.Report of the Auditors
Consolidated financial statements for the six months ended 30 June 2017 haven’t been audited.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED BALANCE SHEET
As at 30 June 2017
(Expressed in Renminbi Yuan)
ASSETS Note V 30 June 2017 31 December 2016
Current assets
Cash and bank balances 1 3,361,328,847.44 3,519,961,564.93
Notes receivable 2 1,044,457,065.20 1,504,000,909.21
Accounts receivable 3 9,122,573,508.17 7,654,225,510.89
Advances to suppliers 4 356,732,828.43 424,867,581.80
Interest receivable 5 55,855.56 450,722.67
Other receivables 6 471,096,771.67 478,573,423.62
Inventories 7 3,936,541,833.92 4,049,482,529.71
Other current assets 8 90,246,738.10 57,209,263.04
Total current assets 18,383,033,448.49 17,688,771,505.87
Non-current assets
Financial assets available-for-sale 9 13,685,760.00 13,685,760.00
Long-term equity investments 10 1,500,744,612.15 1,413,034,165.56
Investment properties 11 162,773,623.12 166,715,848.80
Fixed assets 12 524,469,811.81 487,009,600.10
Construction in progress 13 29,542,882.91 47,063,868.49
Intangible assets 14 333,998,871.41 320,435,400.89
Goodwill 15 827,963,369.44 823,890,174.21
Long-term prepaid expenses 16 212,763,843.93 188,377,725.64
Deferred tax assets 17 74,555,861.41 72,914,722.30
Other non-current assets 18 136,242,905.64 94,649,476.09
Total non-current assets 3,816,741,541.82 3,627,776,742.08
Total assets 22,199,774,990.31 21,316,548,247.95
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED BALANCE SHEET (Continued)
As at 30 June 2017
(Expressed in Renminbi Yuan)
LIABILITIES Note V 30 June 2017 31 December 2016
Current liabilities
Short-term borrowings 19 1,600,656,482.46 1,512,713,629.95
Notes payable 20 2,188,044,512.96 2,406,642,582.86
Accounts payable 21 7,374,938,495.12 6,701,558,514.10
Advances from customers 22 167,151,483.39 163,450,365.92
Employee benefits payable 23 135,450,663.42 195,138,079.85
Tax payable 24 171,890,118.32 187,043,717.52
Interest payable 25 5,880,795.47 6,956,463.02
Dividends payable 26 9,036,964.22 8,483,370.21
Other payables 27 903,536,646.94 917,193,911.34
Non-current liabilities due within one year 28 5,038,700.43 36,411,339.96
Other current liabilities 29 76,143.06 123,294.77
Total current liabilities 12,561,701,005.79 12,135,715,269.50
Non-current liabilities
Long-term borrowings 30 31,600,000.00 -
Long-term payables 31 12,104,897.06 14,616,598.34
Payable for specific projects 32 800,000.00 800,000.00
Deferred income 33 121,946,453.35 123,953,462.81
Long-term employee benefits payable 34 2,078,999.89 1,722,599.89
Deferred tax liabilities 17 73,869,023.27 76,535,704.01
Other non-current liabilities 35 45,427,343.31 45,427,343.31
Total non-current liabilities 287,826,716.88 263,055,708.36
Total liabilities 12,849,527,722.67 12,398,770,977.86
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED BALANCE SHEET (Continued)
As at 30 June 2017
(Expressed in Renminbi Yuan)
SHAREHOLDERS’ EQUITY Note V 30 June 2017 31 December 2016
Shareholders’ equity
Share capital 36 428,126,983.00 362,631,943.00
Capital surplus 37 3,151,532,012.50 3,152,718,024.92
Other equity instruments 38 - 65,495,040.00
Surplus reserve 39 181,315,971.50 181,315,971.50
Retained earnings 40 5,103,480,119.90 4,690,265,884.10
Shareholders’ equity attributable
to shareholders of the parent 8,864,455,086.90 8,452,426,863.52
Non-controlling interests 485,792,180.74 465,350,406.57
Total shareholders’ equity 9,350,247,267.64 8,917,777,270.09
Total liabilities and shareholders’ 22,199,774,990.31 21,316,548,247.95
equity
The accompanying notes form an integral part of these financial statements
The financial statements have been signed by:
Legal representative: Financial controller: Head of Accounting
Department:
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED INCOME STATEMENT
For the six months ended 30 June 2017
(Expressed in Renminbi Yuan)
Note V For the six months ended For the six months ended
30 June 2017 30 June 2016
Operating revenue 41 20,524,807,669.57 20,562,402,047.82
Less: Operating costs 41 18,364,034,450.83 18,246,890,063.69
Tax and surcharge 42 63,185,620.86 57,846,885.62
Selling expenses 43 1,110,446,938.17 1,066,501,100.15
Administrative expenses 44 340,636,051.11 431,344,673.41
Finance costs 45 44,498,778.76 50,721,403.21
Impairment loss 46 96,757.16 1,150,573.63
Add: Investment income 47 146,726,039.90 149,361,622.38
Incl: Investment income from
146,676,039.90 27,607,440.12
associates
Miscellaneous incomes 48 7,958,493.67 -
Operating profits 756,593,606.25 857,308,970.49
Add: Non-operating income 49 6,634,437.62 17,757,829.29
Incl: Gain from disposal of non-current 579,658.49 4,017,585.64
assets
Less: Non-operating expenses 50 3,653,197.22 1,640,538.33
Incl: Loss from disposal of non-current 377,352.06 591,341.17
assets
Total profit 759,574,846.65 873,426,261.45
Less: Income taxes 51 160,041,107.63 161,784,127.76
Net profit 599,533,739.02 711,642,133.69
Incl: Net profit of acquiree before business
combinations involving enterprises under
-1,096.00 -102,530.12
common control
Net profit attributable to shareholders of the parent 556,125,318.19 659,078,223.36
Profit or loss of non-controlling interests 43,408,420.83 52,563,910.33
Total comprehensive income 599,533,739.02 711,642,133.69
Incl: Total comprehensive income for the year
556,125,318.19 659,078,223.36
attributable to owners of the parent
Total comprehensive income for the year
43,408,420.83 52,563,910.33
attributable to non-controlling interests
Earnings per share
Basic earnings per share 1.299 1.558
Diluted earnings per share 1.299 1.558
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
For the six months ended 30 June 2017
(Expressed in Renminbi Yuan)
2017 Shareholders’ equity attributable to shareholders of the parent Non-controlling Total equity
Other equity interests
Share capital instrument Capital surplus Surplus reserve Retained earnings Subtotal
Closing balance of the preceding year 362,631,943.00 65,495,040.00 3,151,518,024.92 181,315,971.50 4,689,189,642.51 8,450,150,621.93 463,832,912.18 8,913,983,534.11
Business combination involving
enterprises under common control - - 1,200,000.00 - 1,076,241.59 2,276,241.59 1,517,494.39 3,793,735.98
Opening balance of the current year 362,631,943.00 65,495,040.00 3,152,718,024.92 181,315,971.50 4,690,265,884.10 8,452,426,863.52 465,350,406.57 8,917,777,270.09
Movements in the current year 65,495,040.00 (65,495,040.00) (1,186,012.42) - 413,214,235.80 412,028,223.38 20,441,774.17 432,469,997.55
(1) Total comprehensive income - - - - 556,125,318.19 556,125,318.19 43,408,420.83 599,533,739.02
(2) Capital paid and reduced by
65,495,040.00 (65,495,040.00) (1,186,012.42) - (1,075,583.99) (2,261,596.41) 7,557,944.01 5,296,347.60
owners
1.Capital injection by owners 65,495,040.00 (65,495,040.00) - - - - 9,075,000.00 9,075,000.00
2.Business combination involving
enterprises under common control - - (1,200,000.00) - (1,075,583.99) (2,275,583.99) (1,517,055.99) (3,792,639.98)
3.Others - - 13,987.58 - - 13,987.58 - 13,987.58
(3) Profit distribution - - - - (141,835,498.40) (141,835,498.40) (30,524,590.67) (172,360,089.07)
1.Distribution to equity owners - - - - (141,281,904.39) (141,281,904.39) (30,524,590.67) (171,806,495.06)
2.Others - - - - (553,594.01) (553,594.01) - (553,594.01)
Closing balance of the current year 428,126,983.00 - 3,151,532,012.50 181,315,971.50 5,103,480,119.90 8,864,455,086.90 485,792,180.74 9,350,247,267.64
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
For the year ended 31 December 2016
(Expressed in Renminbi Yuan)
2016 Shareholders’ equity attributable to shareholders of the parent Non-controlling Total equity
interests
Share capital Other equity instrument Capital surplus Surplus reserve Retained earnings Subtotal
Closing balance of the preceding year 362,631,943.00 - 1,863,894,533.34 181,315,971.50 3,045,551,246.71 5,453,393,694.55 113,081,262.72 5,566,474,957.27
Business combination involving enterprises
under common control - - 1,334,904,770.31 - 592,834,676.01 1,927,739,446.32 424,511,166.59 2,352,250,612.91
Opening balance of the current year 362,631,943.00 3,198,799,303.65 181,315,971.50 3,638,385,922.72 7,381,133,140.87 537,592,429.31 7,918,725,570.18
Movements in the current year - 65,495,040.00 (46,081,278.73) - 1,051,879,961.38 1,071,293,722.65 (72,242,022.74) 999,051,699.91
(1) Total comprehensive income - - - - 1,186,539,201.93 1,186,539,201.93 95,236,608.98 1,281,775,810.91
(2) Capital paid and reduced by owners - 65,495,040.00 (46,081,278.73) - - 19,413,761.27 (117,965,822.18) (98,552,060.91)
1.Capital injection by owners - 5,114,297.00 263,030,592.50 - - 268,144,889.50 - 268,144,889.50
2.Significant reorganization - 60,380,743.00 (156,366,978.12) - - (95,986,235.12) - (95,986,235.12)
3. Acquisition of non-controlling interests - - (152,385,126.76) - - (152,385,126.76) (124,729,773.24) (277,114,900.00)
4.Others - - (359,766.35) - - (359,766.35) 6,763,951.06 6,404,184.71
(3) Profit distribution - - - - (134,659,240.55) (134,659,240.55) (49,512,809.54) (184,172,050.09)
1.Distribution to owners - - - - (108,789,582.90) (108,789,582.90) (32,266,371.11) (141,055,954.01)
2.Others - - - - (25,869,657.65) (25,869,657.65) (17,246,438.43) (43,116,096.08)
Closing balance of the current year 362,631,943.00 65,495,040.00 3,152,718,024.92 181,315,971.50 4,690,265,884.10 8,452,426,863.52 465,350,406.57 8,917,777,270.09
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 June 2017
(Expressed in Renminbi Yuan)
Note V For the six months ended For the six months ended
30 June 2017 30 June 2016
1.CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from sales of good or rendering of 21,970,884,180.09 21,470,945,636.40
services
Tax refunds 5,740,675.89 13,046,803.80
Cash receipts related to other operating activities 52 98,022,828.67 138,828,103.59
Sub-total of cash inflows from operating activities 22,074,647,684.65 21,622,820,543.79
Cash paid for goods and services 19,734,413,196.28 18,624,902,770.08
Cash paid to and on behalf of employees 864,562,267.50 917,184,961.14
Cash paid for all types of taxes 601,078,629.47 605,595,102.51
Cash payments related to other operating activities 52 646,256,160.00 645,554,776.72
Sub-total of cash outflows from operating activities 21,846,310,253.25 20,793,237,610.45
Net cash flows from operating activities 53 228,337,431.40 829,582,933.34
2.CASH FLOWS FROM INVESTING ACTIVITIES
Cash received from recovery of investments - -
Cash received from returns on investments 58,647,191.65 36,639,004.96
Net cash received from disposal of fixed
assets, intangible assets and other long-term 171,059.95 21,570,184.64
assets
Net cash received from disposal of
subsidiaries and other business units - 128,845,881.13
Cash receipts related to other investing activities 52 87,027,340.19 1,563,344,224.08
Sub-total of cash inflows from investing activities 145,845,591.79 1,750,399,294.81
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED CASH FLOW STATEMENT (Continued)
For the six months ended 30 June 2017
(Expressed in Renminbi Yuan)
For the six months For the six
Note V ended 30 June months ended 30
2017 June 2016
2.CASH FLOWS FROM INVESTING ACTIVITIES(Continued)
Cash paid for acquisition of fixed assets,
82,123,615.39 120,577,396.73
intangible assets and other long-term assets
Cash paid for acquisition of investments 71,120,000.00 -
Net cash paid for acquisition of subsidiaries and
53 14,706,789.56 11,639,196.11
other business units
Net cash paid from disposal of subsidiaries and other
53 - -
business units
Cash payments related to other investing activities 52 70,175,078.90 1,204,967,817.12
Sub-total of cash outflows from investing activities 238,125,483.85 1,337,184,409.96
Net cash flows from investing activities (92,279,892.06) 413,214,884.85
3.CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others 9,075,000.00 1,470,000.00
Incl: Cash received from capital contributions from
9,075,000.00 1,470,000.00
non-controlling shareholders of subsidiaries
Cash received from borrowings 233,533,871.46 310,379,970.40
Cash receipts related to other financing activities 52 90,932,396.75 307,483,727.11
Sub-total of cash inflows from financing activities 333,541,268.21 619,333,697.51
Cash repayments for debts 201,503,745.30 534,184,361.10
Cash payments for distribution of dividends or profit and
215,828,281.10 187,230,050.83
interest expenses
Incl: Profit and dividends paid to non-controlling
30,408,202.08 23,782,595.33
shareholders of subsidiaries
Cash payments related to other financing activities 52 178,991,574.67 255,810,743.79
Sub-total of cash outflows from financing activities 596,323,601.07 977,225,155.72
Net cash flows from financing activities (262,782,332.86) (357,891,458.21)
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED CASH FLOW STATEMENT (Continued)
For the six months ended 30 June 2017
(Expressed in Renminbi Yuan)
Note V For the six months For the six months
ended 30 June 2017 ended 30 June 2016
4.EFFECT OF FOREIGN EXCHANGE RATE CHANGES - (129,064.34)
ON CASH AND CASH EQUIVALENTS
5.NET INCREASE IN CASH AND CASH EQUIVALENTS 53 (126,724,793.52) 884,777,295.64
Add: Cash and cash equivalents at beginning of the year 3,150,915,425.49 2,164,444,441.33
6.CASH AND CASH EQUIVALENTS AT END OF YEAR 53 3,024,190,631.97 3,049,221,736.97
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY BALANCE SHEET
As at 30 June 2017
(Expressed in Renminbi Yuan)
ASSETS Note XIV 30 June 2017 31 December 2016
Current assets
Cash and bank balances 1,088,457,038.55 1,342,041,409.86
Notes receivable 82,583,407.82 79,868,867.49
Accounts receivable 1 555,764,168.38 397,351,577.24
Advances to suppliers 375,688.15 2,135,439.82
Interest receivable 1,191,624.39 2,029,125.06
Dividends receivable 1,291,719.37 -
Other receivables 2 1,063,684,257.88 1,801,567,851.50
Inventories 199,983,065.42 184,708,273.76
Other current assets 22,800,815.46 6,937,946.90
Total current assets 3,016,131,785.42 3,816,640,491.63
Non-current assets
Long-term equity investments 3 6,989,135,018.18 5,914,542,602.10
Investment properties 3,167,820.65 3,571,809.38
Fixed assets 15,269,320.98 16,555,996.92
Construction in progress - -
Intangible assets 1,706,425.77 1,534,730.15
Long-term deferred expenses 6,126,344.77 6,645,211.13
Deferred tax assets 2,817,431.42 2,869,931.88
Other non-current assets 69,859,840.00 9,859,840.00
Total non-current assets 7,088,082,201.77 5,955,580,121.56
Total assets 10,104,213,987.19 9,772,220,613.19
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY BALANCE SHEET (Continued)
As at 30 June 2017
(Expressed in Renminbi Yuan)
LIABILITIES 30 June 2017 31 December 2016
Current liabilities
Short-term borrowings 153,000,000.00 50,000,000.00
Notes payable 344,585,820.47 334,383,191.54
Accounts payable 471,108,632.14 391,726,381.93
Advances from customers 16,404,170.49 2,997,964.16
Employee benefits payable 18,505,598.69 30,618,183.84
Tax payables 12,385,501.35 3,308,582.29
Interest payable 136,752.17 37,801.50
Other payables 838,299,508.82 1,100,143,593.55
Non-current liabilities due within one year - 31,600,000.00
Other current liabilities 3,687,520.27 123,294.77
Total current liabilities 1,858,113,504.40 1,944,938,993.58
Non-current liabilities
Long-term borrowings 31,600,000.00 -
Payables for specific projects 800,000.00 800,000.00
Deferred income 1,570,000.00 1,570,000.00
Long-term employee benefits payable 3,000.00 26,000.00
Deferred tax liabilities 3,773,319.00 3,773,319.00
Total non-current liabilities 37,746,319.00 6,169,319.00
Total liabilities 1,895,859,823.40 1,951,108,312.58
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY BALANCE SHEET (Continued)
As at 30 June 2017
(Expressed in Renminbi Yuan)
SHAREHOLDERS’ EQUITY 30 June 2017 31 December 2016
Shareholders’ equity
Share capital 428,126,983.00 362,631,943.00
Capital surplus 4,381,845,619.03 4,381,845,619.03
Surplus reserves 181,315,971.50 181,315,971.50
Other equity instruments - 65,495,040.00
Retained earnings 3,217,065,590.26 2,829,823,727.08
Total shareholders’ equity 8,208,354,163.79 7,821,112,300.61
Total liabilities and shareholders’ equity 10,104,213,987.19 9,772,220,613.19
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY INCOME STATEMENT
For the six months ended 30 June 2017
(Expressed in Renminbi Yuan)
Note XIV For the six months For the six months
ended 30 June 2017 ended 30 June 2016
Operating revenue 4 1,658,600,818.96 1,552,341,588.24
Less: Operating costs 4 1,600,647,589.46 1,493,968,402.10
Tax and surcharge 5,062,317.16 2,731,916.50
Selling expenses 22,844,614.29 21,954,941.85
Administrative expenses 24,917,988.21 27,037,698.40
Finance costs (37,042,967.55) (30,420,731.23)
Impairment loss (32,604.71) 162,410.56
Add: Investment income 5 508,360,741.85 619,060,351.75
Incl: Investment income from 155,838,740.45 24,377,006.76
associates
Miscellaneous incomees 641,300.00 -
Operating profits 551,205,923.95 655,967,301.81
Add: Non-operating income 185,619.34 2,235,966.07
Incl: Gain from disposal of
non-current assets 1,087.38 -
Less: Non-operating expenses 1,011,760.15 253,886.24
Incl: Loss from disposal of
non-current assets - 253,886.24
Total profit 550,379,783.14 657,949,381.64
Less: Income taxes 21,856,015.57 6,795,489.16
Net profit 528,523,767.57 651,153,892.48
Total comprehensive income 528,523,767.57 651,153,892.48
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
For the six months ended 30 June 2017
(Expressed in Renminbi Yuan)
Other equity
2017 Share capital Capital surplus Surplus reserve Retained earnings Total equity
instruments
Closing balance of the preceding
year 362,631,943.00 65,495,040.00 4,381,845,619.03 181,315,971.50 2,829,823,727.08 7,821,112,300.61
Others - - - - - -
Opening balance of the current
year 362,631,943.00 65,495,040.00 4,381,845,619.03 181,315,971.50 2,829,823,727.08 7,821,112,300.61
Movements in the current year 65,495,040.00 (65,495,040.00) - - 387,241,863.18 387,241,863.18
(1) Total comprehensive income - - - - 528,523,767.57 528,523,767.57
(2) Capital paid and reduced by
owners 65,495,040.00 (65,495,040.00) - - - -
1. Capital injection by owners 65,495,040.00 (65,495,040.00) - - - -
2. Significant reorganization - - - - - -
3. Others - - - - - -
(3) Profit distribution - - - - (141,281,904.39) (141,281,904.39)
1. Distribution to owners - - - - (141,281,904.39) (141,281,904.39)
Closing balance of the current
year 428,126,983.00 - 4,381,845,619.03 181,315,971.50 3,217,065,590.26 8,208,354,163.79
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (Continued)
For the Year ended 31 December 2016
(Expressed in Renminbi Yuan)
Other equity
2016 Share capital Capital surplus Surplus reserve Retained earnings Total equity
instruments
Closing balance of the preceding year 362,631,943.00 - 1,869,692,921.70 181,315,971.50 2,160,557,903.68 4,574,198,739.88
Others - - - - 138,820,739.37 138,820,739.37
Opening balance of the current year 362,631,943.00 - 1,869,692,921.70 181,315,971.50 2,299,378,643.05 4,713,019,479.25
Movements in the current year - 65,495,040.00 2,512,152,697.33 - 530,445,084.03 3,108,092,821.36
(1) Total comprehensive income - - - - 639,234,666.93 639,234,666.93
(2) Capital paid and reduced by owners - 65,495,040.00 2,512,152,697.33 - - 2,577,647,737.33
1. Capital injection by owners - 5,114,297.00 263,030,592.50 - - 268,144,889.50
2. Significant reorganization - 60,380,743.00 2,249,481,871.18 - - 2,309,862,614.18-
3. Others - - (359,766.35) - - (359,766.35)
(3) Profit distribution - - - - (108,789,582.90) (108,789,582.90)
1. Distribution to owners - - - - (108,789,582.90) (108,789,582.90)
Closing balance of the current year 362,631,943.00 65,495,040.00 4,381,845,619.03 181,315,971.50 2,829,823,727.08 7,821,112,300.61
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY CASH FLOW STATEMENT
For the six months ended 30 June 2017
(Expressed in Renminbi Yuan)
For the six months For the six months
ended 30 June 2017 ended 30 June 2016
1.CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from sales of good or rendering of
services 1,691,499,935.88 1,576,646,019.42
Cash receipts related to other operating activities 16,864,750.56 22,616,621.43
Sub-total of cash inflows from operating activities 1,708,364,686.44 1,599,262,640.85
Cash paid for goods and services 1,590,317,986.60 1,475,945,895.68
Cash paid to and on behalf of employees 40,727,189.33 35,409,274.67
Cash paid for all types of taxes 28,888,466.38 27,421,192.97
Cash payments related to other operating
activities 17,091,927.42 11,418,997.25
Sub-total of cash outflows from operating
activities 1,677,025,569.73 1,550,195,360.57
Net cash flows from operating activities 31,339,116.71 49,067,280.28
2. CASH FLOWS FROM INVESTING ACTIVITIES
Cash received from returns of investments 202,011,829.53 163,130,121.71
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets - -
Net cash received from disposal of subsidiaries
and other business - 156,111,000.00
Cash receipts related to other investing activities 1,979,269,200.00 1,172,470,415.00
Sub-total of cash inflows from investing activities 2,181,281,029.53 1,491,711,536.71
Cash paid for acquisition of fixed assets,
intangible assets and other long-term assets 3,921,020.07 26,667,196.89
Cash paid for investment 1,019,000,000.00 -
Net cash paid for purchasing subsidiaries and
other business 16,840,000.00 1,267,000.00
Cash payments related to other investing activities 1,424,861,720.90 1,188,252,457.00
Sub-total of cash outflows from investing activities 2,464,622,740.97 1,216,186,653.89
Net cash flows from investing activities (283,341,711.44) 275,524,882.82
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY CASH FLOW STATEMENT (Continued)
For the six months ended 30 June 2017
(Expressed in Renminbi Yuan)
For the six months For the six months
ended 30 June 2017 ended 30 June 2016
3. CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others -
Cash received from borrowings 41,600,000.00 80,100,000.00
Cash receipts related to other financing activities 7,272,687,714.06 3,791,553,620.54
Sub-total of cash inflows from financing activities 7,314,287,714.06 3,871,653,620.54
Cash repayments for debts 41,600,000.00 190,995,172.30
Cash payments for distribution of dividends or
143,087,008.08 113,348,821.62
profit and interest expenses
Cash payments related to other financing activities 7,131,182,482.56 3,483,341,340.39
Sub-total cash outflows from financing activities 7,315,869,490.64 3,787,685,334.31
Net cash flows from financing activities (1,581,776.58) 83,968,286.23
4. NET INCREASE IN CASH AND CASH
(253,584,371.31) 408,560,449.33
EQUIVALENTS
Add: Cash and cash equivalents at beginning of the 1,342,041,409.86 429,437,078.35
year
5. CASH AND CASH EQUIVALENTS
1,088,457,038.55 837,997,527.68
AT END OF YEAR
The accompanying notes form an integral part of these financial statements
19
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
I Profile of the Company
(1) Historical development and basic information
As approved by the People’s Government of Shenzhen (SFBF (1993) No.356), China National Accord
Medicines Corporation Ltd. (hereinafter referred to as the “the Company”), formerly known as Shenzhen
Health Mineral Water Corp., Ltd., was registered as a joint stock liability limited company on 1 February
1993 through stock transformation. In March 1993, with the approval from the Shenzhen Branch of the
People’s Bank of China, the Company issued 30 million A shares (including 16.5 million public shares, 3.5
million employee shares and 10 million corporation shares) and 20 million B shares. After this issuance,
the Company’s share capital was RMB105 million. Through convert capital surplus into share capital,
bonus issues and issuance of shares for years, the share capital of the Company increased to
RMB428,126,983 as at 30 June 2017.
In November 2000, the Company entered into an Assets Exchange Agreement with Shenzhen
Investment Management Company, the original major shareholder of the Company, to exchange all the
assets and liabilities of the Company as of 31 August 2000 for Shenzhen Investment Management
Company’s 100% equity interests in 11 pharmaceutical companies and certain properties as well as 51%
equity interests in Shenzhen Tefa Modern Computer Co., Ltd. The above assets exchange proposal was
approved by shareholders in the Second Extraordinary General Meeting on December 29, 2000. The
transaction was completed on 8 January 2001.
On 18 February 2004, the Company’s original major shareholder, Shenzhen Investment Management
Company, entered into a Stock Transfer Agreement with Sinopharm Group Co., Ltd. (hereinafter referred
to as “Sinopharm Group”) to transfer its 43.33% shares in the Company to Sinopharm Group. The legal
procedures of the above equity transfer were completed on 9 December 2004. At the same time, as
approved by the State-owned Assets Supervision and Administration Commission of the State Council
(GZCQ (2004) No.525) and the China Securities Regulatory Commission (ZJGSZ (2004) No.94), the
nature of these shares was changed from state-owned stock to state-owned legal entity stock and
Sinopharm Group became the largest shareholder of the Company.
On 14 April 2006, the Company’s proposal on reformation of segregated stocks was approved. To gain
liquidity for the restricted stocks of the Company, the holders of the restricted stocks of the Company
agreed to pay the following consideration: based on the stock registration as of 27 April 2006, the
Company issued bonus shares on 28 April 2006 at the ratio of 3 shares to every 10 A shares to liquidated
A-shareholders which went public on the same day. After this bonus issue, the total number of shares of
the Company remained unchanged with corresponding changes in the composition of shareholdings.
On March 14 2014, the company issued 74,482,543 ordinary shares (A shares) through the non-public
offering. Par value per share is RMB1 yuan. The shares shall not be transferred within 36 months since
the issued day. The total number of shares of the Company was 362,631,943 since the date of issue.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
I Profile of the Company (Continued)
(1) Historical development and basic information (Continued)
As of 31 October 2016, the company issued RMB65,495,040.00 ordinary shares (A shares) through the
non-public offering. Par value per share is RMB1 yuan. Through the non-public offering, the Company
acquired the companies under common control, including Sinopharm Holding Guoda Pharmacy Co., Ltd.
(“Guoda Pharmacy”), Foshan Nanhai Medicine Group Co., Ltd.(“Foshan Nanhai”),Guangdong South
Pharmaceutical Foreign Trade Co., Ltd. (“South Pharma & Trade), Guangdong Dong Fang Uptodate &
Special Medicines Co., Ltd. (“ Guangdong Uptodate & Special Medicines”) by issuing shares and raised
supporting funds by issuing shares to Ping An Asset Management Co., Ltd.(“Ping An Asset Management”)
to acquire non-controlling interest of South Pharma & Trade. The relevant shares were successfully
issued and listed on 5 January 2017.
As of 30 June 2017, the total share capital was RMB428,126,983.
The Company is registered with Shenzhen Administration for Industry & Commerce. Its Uniform Social
Credit Code is 91440300192186267U. The operation period of the Company is from 2 August 1986 to the
long term. The registered capital of the Company is RMB428,126,983. The legal representative of the
Company is Lin Zhaoxiong.
The approved scope of business of the Company and its subsidiaries (together “the Group”) includes: the
wholesale of traditional Chinese medicine preparations, bulk pharmaceutical drugs, chemical
preparations, bulk antibiotic drugs, antibiotic preparations, biochemical drugs, biological products
(including vaccines and in vitro diagnostic reagents psychotropic drugs and preparations, narcotic drugs,
toxic drugs for medical use, protein assimilation preparation and peptide hormones; trade of dietary
supplement; research, development and consultation services of pharmaceutical packaging materials
and pharmaceutical industry products; industrial investment holding; domestic trade; material supply and
marketing industry (other than special licensing); sale of ambulances; trade of second-class and third-
class medical equipment; project investment; property management and lease of self-owned properties;
pharmacovigilance and medical information consulting; parking operation; logistics and related services;
package agency business; logistic design; import and export services (excluding projects that are
prohibited by the country; limited projects has to be approved before operating).
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
I Profile of the Company (Continued)
(2) The Group’s parent and ultimate parent company is Sinopharm Group and China National
Pharmaceutical Group Corporation respectively.
(3) These financial statements were authorized for issue by the board of directors of the Company on
24 August 2017.
II Basis of preparation
The financial statements were prepared in accordance with the Basic Standard and specific standards of
the Accounting Standards for Business Enterprises issued by the Ministry of Finance on 15 February
2006 and the specific accounting standards and the relevant regulations issued thereafter (hereafter
collectively referred to as the “Accounting Standards for Business Enterprises” or “CAS”), and the
disclosure requirements in the Preparation Convention of Information Disclosure by Companies Offering
Securities to the Public No.15 – General Rules on Financial Reporting issued by the China Securities
Regulatory Commission.
These financial statements are prepared on a going concern basis.
Except for certain financial instruments, the financial statements have been prepared using historical cost
as the principle of measurement. Where assets are impaired, provisions for asset impairment are made in
accordance with the relevant requirements.
The Group has made accounting policies and accounting estimates according to its own operation and
production characteristics, which are mainly reflected in the bad debt provision for account receivables
(Note Ⅲ (10)), inventory costing methods (Note Ⅲ (11)), depreciation methods for fixed assets and
amortization method for intangible assets (NoteⅢ(15),Note III(18)), judgement basis for capitalization of
development costs (NoteⅢ(18)) , impairment of long-term assets (NoteⅢ(21)), revenue recognition (Note
Ⅲ(25)).
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates
(1) Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the period ended 30 June 2017 are in compliance with the
Accounting Standards for Business Enterprises, and truly and completely present the financial position of
the Group and the Company as of 30 June 2017 and the operating results, cash flows and other
information of the Group and the Company for the year then ended.
(2) Accounting year
The Company’s accounting year starts on 1 January and ends on 31 December.
(3) Functional currency
The functional currency is Renminbi (RMB).
(4) Business combinations
(a) Business combinations involving entities under common control
Assets and liabilities (including goodwill arising from ultimate controlling shareholder’s acquisition of the
party being absorbed) that are obtained by the absorbing party in a business combination shall be
measured at their carrying amounts at the combination date as recorded by the party being absorbed.
The difference between the carrying amount of the net assets obtained and the carrying amount of the
consideration paid for the combination (or the aggregate face value of shares issued as consideration)
shall be adjusted to share premium under capital surplus. If the capital surplus is not sufficient to absorb
the difference, any excess shall be adjusted against retained earnings. The transaction costs of issuing
equity securities or debt securities for business combination are recognized at the initial recognition
amount of equity securities or debt securities.
(b) Business combinations involving enterprises not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business combination
are measured at fair value at the acquisition date. Where the cost of the combination exceeds the
acquirer’s interest in the fair value of the acquirer’s identifiable net assets, the difference is recognized as
goodwill; where the cost of combination is lower than the acquirer’s interest in the fair value of the
acquirer’s identifiable net assets, the difference is recognized in profit or loss for the current period. Costs
directly attributable to the combination are included in profit or loss in the period in which they are incurred.
Transaction costs associated with the issue of equity or debt securities for the business combination are
included in the initially recognized amounts of the equity or debt securities.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(4) Business combinations (Continued)
Where the business combination not involving enterprises under common control which is achieved in
stages, the acquirer’s previously held equity interests in the acquiree are remeasured at the fair value on
the acquisition date, with the difference between fair value and carrying amount recognized as investment
income for the current period. If the acquirer’s previously held equity interests of the acquiree involve
other comprehensive income (“OCI”) under the equity method, the accounting treatment is conducted on
the same basis as would have been required if the investee had directly disposed of the related assets or
liabilities, and the changes in shareholders’ equity other than net profit or loss, OCI and profit distributions
are charged to profit or loss for the current period on the acquisition date.
(5) Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all of its
subsidiaries.
Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated
from the date that such control ceases. For a subsidiary that is acquired in a business combination
involving enterprises under common control, it is included in the consolidated financial statements from
the date when it, together with the Company, comes under common control of the ultimate controlling
party. The portion of the net profits realized before the combination date is presented separately in the
consolidated income statement.
In preparing the consolidated financial statements, where the accounting policies and the accounting
periods of the Company and subsidiaries are inconsistent, the financial statements of the subsidiaries are
adjusted in accordance with the accounting policies and the accounting period of the Company. For
subsidiaries acquired from business combinations involving enterprises not under common control, the
individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable
net assets at the acquisition date.
All significant intra-group balances, transactions and unrealized profits are eliminated in the consolidated
financial statements. The portion of a subsidiary’s equity and the portion of a subsidiary’s net profits,
losses and comprehensive income for the period not attributable to the Company are recognized as
non-controlling interests and presented separately in the consolidated financial statements within equity,
net profits and total comprehensive income respectively. Unrealized gain or loss from selling assets to
subsidiaries fully offsets the net income attributable to equity holders of the company. Unrealized gain or
loss from purchasing assets from subsidiaries offsets the net income attributable to equity holders of the
company and attributable to the non-controlling interest by the distribution proportion regarding the
Company and the subsidiary. Unrealized gain or loss from transaction between subsidiaries offsets the
net income attributable to equity holders of the company and attributable to the non-controlling interest by
the distribution proportion regarding the Company and the selling side of the subsidiaries. If different
recognition perspectives for the same transaction arise within different accounting identities setup, there
is an adjustment for the transaction from the Group’s perspective.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(6) Acquisition of non-controlling interests in controlled subsidiaries
The Company acquires equity from the minority shareholders after taking control of the subsidiary, in the
consolidated financial statements, the subsidiary’s assets, liabilities should be measured from the
combination or acquisition date. The difference between the carrying amount of acquisition of
non-controlling interest and the net assets proportion calculated by the original share percentage since
the acquisition date should be recognized in capital surplus. If the capital surplus is insufficient to dilute,
the retained earnings shall be adjusted.
(7) Cash and cash equivalents
Cash and cash equivalent comprise cash on hand, deposits that can be readily drawn on demand, and
short-term and highly liquid investments that are readily convertible to known amounts of cash and are
subject to an insignificant risk of changes in value.
(8) Foreign currency translation
Foreign currency transact translated into RMB using the exchange rates prevailing at the dates of the
transactions.
At the balance sheet date, monetary items denominated in foreign currencies are translated into RMB
using the spot exchange rates on the balance sheet date. Exchange differences arising from these
translations are recognized in profit or loss for the current period, except for those attributable to foreign
currency borrowings that have been taken out specifically for the acquisition or construction of qualifying
assets, which are capitalized as part of the cost of those assets. Non-monetary items denominated in
foreign currencies that are measured at historical 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
(a) Financial assets
(i) 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 and
available-for-sale financial assets. 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. Available-for-sale financial assets are those non-derivative financial assets
that are designated as available for sale at initial recognition or are not classified as financial assets at fair
value through profit or loss, held-to-maturity investments or borrowings and receivables.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(9) Financial instruments (Continued)
(a) Financial assets (Continued)
(ii) Recognition and measurement
Financial assets are recognized at fair value on the balance sheet when the Group becomes a party to
the contractual provisions of the financial instrument. The transaction expenses are included in
receivables’ original book value, which is measured at amortized cost using the effective interest method.
After initial recognition, financial assets available-for-sale are measured at fair value.
The premium/discount is amortized using the effective interest method and recognized as interest income
or expense. A gain or loss arising from a change in the fair value of an available-for-sale financial asset is
recognized as other comprehensive income, except for impairment losses and foreign exchange gains
and losses resulted from monetary financial assets which are recognized in profit or loss, until the
financial asset is derecognized or determined to be impaired, at which time the accumulated gain or loss
previously recognized is transferred to profit or loss of the current period. Interests and dividends relating
to an available-for-sale financial asset are recognized in profit or loss of the current period. Investments in
equity instruments, which do not have quoted prices in an active market and whose fair values cannot be
reliably measured, are measured at cost.
(iii) Impairment of financial assets
The Group assesses the carrying amounts of receivables other than those at fair value through profit or
loss at each balance sheet date. If there is objective evidence that a financial asset is impaired, an
impairment loss is provided for.
Objective evidence refers to matters that occur after the financial assets have been recognized, affect the
estimated future cash flow and could be measured accurately by the Group.
When an impairment loss on a financial asset carried at amortized cost has occurred, the amount of loss
is provided for at the difference between the asset’s carrying amount and the present value of its
estimated future cash flows (excluding future credit losses that have not been incurred). If there is
objective evidence that the value of the financial asset recovered and the recovery is related objectively to
an event occurring after the impairment was recognized, the previously recognized impairment loss is
reversed and the amount of reversal is recognized in profit or loss.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(9) Financial instruments (Continued)
(a) Financial assets (Continued)
(iii) Impairment of financial assets (Continued)
Where there is objective evidence of impairment of available for sale financial assets, the cumulative loss
which results from a decline in fair value and is previously recognized in other comprehensive income is
removed from other comprehensive income and recognized in profit or loss. The cumulative loss
removed is measured as the difference between the acquisition cost and the current fair value, less any
retrieved costs, amortization and impairment loss previously recognized in profit or loss. In the case of
equity investments classified as available for sale, objective evidence of impairment would include a
significant or prolonged decline in the fair value of an investment below its cost. “Significant” is
evaluated against the original cost of the investment and “prolonged” against the period in which the fair
value has been below its original cost. Where there is evidence of impairment, the cumulative loss
removed is measured as the difference between the acquisition cost and the current fair value, less any
impairment loss on that investment previously recognized in profit or loss. Impairment losses on equity
instruments classified as available for sale are not reversed through profit or loss. Increases in their fair
value after impairment are recognized directly in other comprehensive income.
The determination of what is “significant” or “prolonged” requires judgement. In making this judgement,
the Group evaluates, among other factors, the duration or extent to which the fair value of an investment
is less than its cost.
(iv) Derecognition of financial assets
A financial asset is derecognized when any of the following 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.
On derecognition of a financial asset, the difference between the carrying amount and the sum of the
consideration received and the cumulative changes in fair value that had been recognized directly in
equity is recognized in profit or loss.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(9) Financial instruments (Continued)
(b) Financial liabilities
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
Payables, including notes payable, accounts payable and other payables, are recognized initially at fair
value and subsequently measured at amortized cost using the effective interest method.
Borrowings are recognized initially at fair value, net of transaction costs incurred, and subsequently
carried at amortized costs using the effective interest method.
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
classified as the current portion of non-current liabilities. Others are classified as non-current liabilities.
A financial liability is derecognized or partly derecognized when the current obligation is discharged or
partly discharged. The difference between the carrying amount of the financial liability or the
derecognized part of the financial liability and the consideration paid is recognized in profit or loss.
(c) Offset of financial instruments
A financial asset and a financial liability shall be offset and the net amount presented in the balance sheet
when both of the following conditions are satisfied: 1) the enterprise has a legal right to set off the
recognized amounts and the legal right is currently enforceable; 2) the enterprise intends either to settle
on a net basis or to realize the financial asset and settle the financial liability simultaneously.
(d) Transfer of financial assets
A financial asset is derecognized when the Group has transferred substantially all the risks and rewards
of the asset to the referee. A financial asset is not derecognized when the Group retains substantially all
the risks and rewards of the asset.
When the Group has neither transferred nor retained substantially all the risks and rewards of the asset, it
either i) derecognizes the transferred asset when it has transferred control of the asset; or ii) continues to
recognize the transferred asset to the extent of the Group's continuing involvement, in which case, the
Group also recognizes an associated liability.
Continuing involvement that takes the form of a guarantee over the transferred financial asset is
measured at the lower of the original carrying amount of the asset and the guarantee amount. The
guarantee amount is the maximum amount of consideration that the Group could be required to repay.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(10) Receivables
Receivables comprise notes receivable, accounts receivable and other receivables. Accounts receivable
arising from the sale of goods or rendering of services are initially recognized at fair value of the
contractual payments from the buyers or service recipients.
(a) Receivables with amounts that are individually significant and subject to separate assessment for
provision for bad debts
Receivables with amounts that are individually significant are subject to assessment for impairment
on the individual basis. If there exists objective evidence that the Group will not be able to collect
the amount under the original terms, a provision for impairment of that receivable is made.
The criterion for determining individually significant amounts is that any individual amount is more
than RMB5 million.
The method of providing for bad debts for those individually significant amounts is as follows: the
amount of the present value of the future cash flows expected to be derived from the receivable
below its carrying amount.
(b) Receivables that are subject to provision for bad debts on 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 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 the receivables is made based on the ageing of receivables at the
following percentage:
Provision ratios used for accounts Provision ratios used for
receivable other receivables
Within 1 year 0-5% 0-5%
1 to 2 years 5-10% 5-10%
2 to 3 years 10-30% 10-30%
3 to 4 years 20-50% 20-50%
4 to 5 years 20-80% 20-80%
More than 5 years 20-100% 20-100%
(c) Receivables with amounts that are not individually significant but subject to separate assessment
for provision for bad debts
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
The reason for making separate assessment for provision for bad debts is that 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 is determined based on the amount of the present value of the future
cash flows expected to be derived from the receivable below its carrying amount.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(10) Receivables (Continued)
(d) When the Group transfers the accounts receivable to the financial institutions without recourse,
the difference between the proceeds received from the transaction and their carrying amounts
and the related taxes is recognized in profit or loss for the current period.
(11) Inventories
(a) Classification
Inventories include raw materials, work in progress, finished goods, delegate processing supplies
and turnover materials, and are measured at the lower of cost and net realizable value.
(b) Costing of inventories
Cost is determined on the weighted average method. The cost of finished goods and work in
progress comprises raw materials, direct labor and an allocation of systematically allocated
overhead expenditures incurred based on the normal operating capacity.
(c) Basis for determining net realizable values of inventories and method for making provisions 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.
(d) The Group adopts the perpetual inventory system.
(e) Amortization methods of low value consumables and packaging materials
Turnover materials include low value consumables and packaging materials, which are expensed
when issued.
(12) Assets classified as held for sale
Non-current assets or disposal group satisfying the following conditions will be classified as assets held
for sale: (i) the non-current assets or disposal group are instantly ready for sale under the custom terms;
(ii)the resolution regarding the disposal of the non-current assets or disposal group has been
appropriately approved. (iii)Company has signed an irrevocable agreement. (iv)The disposal will be
accomplished within 1 year.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(12) Assets classified as held for sale (Continued)
Non-current assets which meet the conditions of assets classified as held for sale, excluding financial
assets, investment properties measured by the fair value method, and deferred income tax assets could
be appraised as the lower number of the book value and fair value minus disposal cost. The difference
between the fair value minus disposal cost and the book value should be recognized as an Impairment
loss.
Assets and liabilities among the non-current assets or disposal group that are classified as assets
classified as held for sale should be classified as current assets and current liabilities respectively, and
should be individually presented on the balance sheet.
(13) Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries
and the Group’s long-term equity investments in its associates.
Subsidiaries are the investees over which the Company is able to exercise control. Associates are the
investees that the Group has significant influence on their financial and operating policies.
Investments in subsidiaries are measured using the cost method in the Company’s financial statements,
and adjusted by using the equity method when preparing the consolidated financial statements. Interests
in associates are accounted for using the equity method.
(a) Determination of investment cost
For long-term equity investments acquired through a business combination: for long-term equity
investments acquired through a business combination involving enterprises under common control, the
investment cost shall be the absorbing party’s share of the carrying amount of shareholders’ equity of the
party being absorbed at the combination date; for long-term equity investments acquired through a
business combination involving enterprises not under common control, the investment cost shall be the
combination cost.
(b) Subsequent measurement and recognition of related profit or loss
For long-term equity investments accounted for using the cost method, they are measured at the initial
investment costs, and cash dividends or profit distribution declared by the investees are recognized as
investment income in profit or loss.
For long-term equity investments accounted for using the equity method, where the initial investment cost
of a long-term equity investment exceeds the Group’s share of the fair value of the investee’s identifiable
net assets at the acquisition date, the long-term equity investment is measured at the initial investment
cost; where the initial investment cost is less than the Group’s share of the fair value of the investee’s
identifiable net assets at the acquisition date, the difference is included in profit or loss and the cost of the
long-term equity investment is adjusted upwards accordingly.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(13) Long-term equity investments (Continued)
For long-term equity investments accounted for using the equity method, the Group recognizes the
investment income according to its share of net profit or loss of the investee. The Group discontinues
recognizing 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 recognizing the investment losses and the provisions.
For changes in shareholders’ equity of the investee other than those arising from its net profit or loss,
other comprehensive income, and profit distribution, the Group adjusts the book value of the investment
and records capital surplus accordingly. The carrying amount of the investment is reduced by the Group’s
share of the profit distribution or cash dividends declared by an investee.
The unrealized profits or losses arising from the intra-group transactions amongst the Group and its
investees are eliminated in proportion to the Group’s equity interest in the investees, and then based on
which the investment gains or losses are recognized. For the loss on the intra-group transaction amongst
the Group and its investees attributable to asset impairment, any unrealized loss is not eliminated.
(c) Basis for determining existence of control, joint control or significant influence over investees
Control is the power to govern the financial and operating policies of the investee so as to obtain benefits
from its operating activities. In determining whether the Company is able to exercise control over the
investee, the effect of potential voting rights over the investee is considered, such as convertible debts
and warrants currently exercisable.
Significant influence is the power to participate in the financial and operating policy decisions of the
investee, but is not control or joint control over those policies.
(d) Impairment of long-term equity investments
The carrying amount of long-term equity investments in subsidiaries and associates is reduced to the
recoverable amount when the recoverable amount is less than the carrying amount (Note III (21)).
(14) Investment properties
Investment properties, including land use rights that have already been leased out, buildings that are held
for the purpose of leasing, and buildings that are being constructed or developed for the purpose of
leasing in future, are measured initially at cost. Subsequent expenditures incurred in relation to an
Investment properties are included in the cost of the Investment properties when it is probable that the
associated economic benefits will flow to the Group and their costs can be reliably measured; otherwise,
the expenditures are recognized in profit or loss in the period in which they are incurred.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(14) Investment properties (Continued)
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 life Estimated residual value Annual depreciation
(amortization) rates
Buildings 12-35 years 0-5% 2.71-7.92%
Land use rights 30-50 years - 2.00-3.33%
When an Investment properties is transferred to owner-occupied properties, it is reclassified as a 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 an
investment property at its carrying amount at the date of the transfer.
The Investment properties’ estimated useful life, net residual value and depreciation (amortization)
method applied are reviewed and adjusted as appropriate at each end of year.
An Investment properties is derecognized on disposal or when the Investment properties 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 properties after its carrying amount
and related taxes and expenses is recognized in profit or loss for the current period.
The carrying amount of an Investment properties is reduced to the recoverable amount if the recoverable
amount is below the carrying amount (Note III (21)).
(15) Fixed assets
(a) Recognition and initial measurement of fixed assets
Fixed assets comprise buildings, machinery and equipment, motor vehicles, other equipment and
leasehold improvements.
Fixed assets are recognized when it is probable that the related economic benefits will flow to the Group
and the costs can be reliably measured. Fixed assets purchased or constructed by the Group are initially
measured at cost at the acquisition date. The fixed assets contributed by the State shareholders at the
reorganization of the Company into a corporation entity are recognized based on the revaluated amounts
approved by the State-owned Assets Administration Department.
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
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
measured. The carrying amount of the replaced part is derecognized. All the other subsequent
expenditures are recognized in profit or loss in the period in which they are incurred.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(15) Fixed assets (Continued)
(b) 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.
The estimated useful lives, the estimated residual values expressed as a percentage of cost and the
annual depreciation rates are as follows:
Estimated useful lives Estimated residual value Annual
depreciation rates
Buildings 20-35 years 0-5% 2.71-5.00%
Machinery and equipment 5-14 years 3-6% 6.79-19.40%
Motor vehicles 3-10 years 0-5% 9.50-33.33%
Other equipment 3-10 years 0-5% 9.50-33.33%
Leasehold improvements within 5 years 0% 20% and above
The estimated useful life, the estimated net residual value of a fixed asset and the depreciation method
applied to the asset are reviewed, and adjusted as appropriate at least at each end of year.
(c) The carrying amount of fixed assets is reduced to the recoverable amount when the recoverable
amount is less than the carrying amount (Note III (21)).
(d) Recognition basis and measurement method for financing leased fixed assets.
Finance leases are leases with the whole risks and rewards related to the asset substantially transferred.
Fixed assets leased under finance lease are recognized with at smaller value of the fair value and
minimum lease payments. The difference between the book value and the minimum lease payments
should be recognized as unrecognized financing charges (Note III (28) (b)).
Fixed assets leased under finance lease are depreciated using the same policy as that those fixed assets
owned by the company. For those leased assets that the ownership of the assets can be ascertained by
the expiration date, the assets should be depreciated within estimated useful lives. Otherwise, the assets
should be depreciated within the shorter period of the leasing period and estimated useful lives.
(e) Disposal of fixed assets
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.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(16) Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction costs, installation
costs, borrowing costs that are eligible for capitalization and other costs necessary to bring the fixed
assets ready for their intended use. Construction in progress is transferred to fixed assets when the
assets are ready for their intended use, and depreciation begins from the following month. The carrying
amount of construction in progress is reduced to the recoverable amount when the recoverable amount is
less than the carrying amount (Note III (21)).
(17) 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. 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.
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.
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 rate at which the estimated future cash flows during the period of expected duration of
the borrowings or an applicable shorter period are discounted to the initial amount of the borrowings.
(18) Intangible assets
Intangible assets include land use rights, computer software, technology patents, trademarks and
distribution network, which are initially recognized at cost. Intangible assets contributed by state-owned
shareholders during the Company reorganization were recorded based on the valuation amount
approved by the State-owned Assets Supervision and Management Department.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(18) Intangible assets (Continued)
Categories Useful lives
Land use rights Between the approved useful period and the Company’s
operating period
Software 3-5 years
Trademarks 5-10 years
Technology patents 5 years
Distribution network 20 years
Franchising rights 10 years
Favorable leases 17-20 years
A land use right granted by government with an infinite useful life would not be amortized. Other land use
rights are amortized on the straight-line basis over their approved useful period. If the acquisition costs of
land use rights and the buildings located thereon cannot be reliably allocated between the land use rights
and the buildings, all of the acquisition costs are recognized as fixed assets.
For an intangible asset with a finite useful life, review of its useful life and amortization method is
performed at each end of year, with adjustments made as appropriate. For an intangible asset without a
definite useful life, review of its useful life is performed at each end of year.
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 for investigation, evaluation and selection of production process and new drugs researches
is recognized in profit or loss in the period in which it is incurred. Expenditure on the designation,
measurement of the final utilization of the production process and new drugs before mass production, is
capitalized only if all of the following conditions are satisfied:
development of the production process and new drugs has been fully demonstrated by the
technical team;
management has approved the budget of drug production development and new drugs;
market research analysis suggests that the products produced by the new production technology
are able to be promoted;
adequate technical, financial and other resources to complete the development and the ability to
use or sell the intangible asset;
the expenditure attributable to the intangible asset during its development phase can be reliably
measured.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(18) Intangible assets (Continued)
Other development costs that do not meet the conditions above are recognized in profit or loss in the
period in which they are incurred. Development costs previously recognized as expenses are not
recognized as an asset in a subsequent period. Capitalized expenditure on the development phase is
presented as development costs in the balance sheet and transferred to intangible assets at the date that
the asset is ready for its intended use.
The carrying amount of intangible assets is reduced to the recoverable amount when the recoverable
amount is less than the carrying amount (Note III (21)).
(19) 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.
(20) Governmental medical reserve funds and specially approved reserving materials
Appointed by the PRC Government, 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 Guangxi Co., Ltd. (“Sinopharm Guangxi”), a
subsidiary of the Company, is responsible for purchasing, allocating and providing the medical reserves,
which include the medical products needed for serious disasters, epidemics and other emergencies as
well as endemic diseases 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 recognized as 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 recognizes as
other non-current assets.
(21) Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives, long-term prepaid
expenses and investment properties measured using the cost model and long-term equity investments in
subsidiaries and associates are tested for impairment if there is any indication that an asset may be
impaired at the balance sheet date. If the result of the impairment test indicates that the recoverable
amount of the asset is less than its carrying amount, a provision for impairment and an impairment loss
are recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the
future cash flows expected to be derived from the asset. Provision for asset impairment is determined and
recognized on the individual asset basis. If it is not possible to estimate the recoverable amount of an
individual asset, the recoverable amount of a group of assets to which the asset belongs is determined. A
group of assets is the smallest group of assets that is able to generate independent cash inflows.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(21) Impairment of long-term assets (Continued)
Goodwill that is separately presented in the financial statements，intangible assets with infinite useful lives
and capitalized development costs are tested at least annually for impairment, irrespective of whether
there is any indication that it may be impaired. In conducting the test, the carrying value of goodwill is
allocated to the related asset groups or groups of asset groups which are expected to benefit from the
synergies of the business combination. If the result of the test indicates that the recoverable amount of an
asset group or group of asset groups, including the goodwill allocated, is lower than its carrying amount,
the corresponding impairment loss is recognized. The impairment loss is first deducted from the carrying
amount of goodwill that is allocated to the asset group or group of asset groups, and then deducted from
the carrying amount of other assets within the asset groups or groups of asset groups in proportion to the
carrying amount of other assets.
Once the above Impairment loss is recognized, it will not be reversed for the value recovered in the
subsequent periods.
(22) Employee benefits
Employee benefits mainly include short-term employee benefits, post-employment benefits, termination
benefits and other long-term employee benefits incurred in exchange for service rendered by employees
or various forms of rewards or compensation due to severance of labor relation.
(a) Short-term employee benefits
Short-term employee benefits include wages or salaries, bonuses, allowances and subsidies, staff
welfare, medical insurance, work injury insurance, maternity insurance, housing funds, and labor union
funds and employee education funds. The employee benefits are recognized in the accounting period in
which the service has been rendered by the employees, and as costs of assets or expenses to whichever
the employee service is attributable.
(b) Post-employment benefits (defined contribution plans)
The Company classifies post-employment benefit plans into either defined contribution plans or defined
benefit plans. Defined contribution plans are post-employment benefit plans under which the Company
pays fixed contributions into a separate fund and will have no obligation to pay further contributions; and
defined benefit plans are post-employment benefit plans other than defined contribution plans. During the
reporting period, the Company's post-employment benefits mainly include basic pensions, unemployment
insurance and enterprise annuity, both of which belong to the defined contribution plans.
Basic pensions
The Company’s employees participate in the defined basic pension insurance plan set up and
administered by local labor and social protection authorities. Basic pensions are provided monthly
according to stipulated bases and proportions to local labor and social security contribution. When
employees retire, local labor and social security institutions have a duty to pay the basic pension
insurance to them. The amounts payable are recognized as liabilities based on the above provisions in
the accounting period in which the service has been rendered by the employees, and as costs of assets
or expenses to whichever the employee service is attributable.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(22) Employee benefits (Continued)
(c) Termination benefits
The Group recognizes the debt and the gain or loss, when offering compensation for terminating the labor
contract before the due date, or encouraging the staff to resign voluntarily, at the earlier of when the
Group cannot unilaterally withdraw the labor relation plan and when the Group recognizes the cost
relating to recombinant involving the payment of termination benefits.
(d) Retirement benefits
The Group provides retirement benefits to employees who accept the internal retirement arrangements.
Retirement benefits refer to the salary and social security contribution provided to those staff who
voluntarily quit the job with approval from the management team, before the retirement age.
The group offers retirement benefits from the date when the arrangement begins, to the date when the
staff reaches the retirement age. The liability including salary and security contribution funds is
recognized when conditions for recognition are meet, regarding to the period from the staff leaves the
position to the normal retirement date. Difference arising from the changes in actuarial assumptions for
retirement benefits and adjustments in welfare standard, will be accounted for in the current profits and
losses.
Retirement benefits that are expected to be paid within one year from the balance sheet date are
disclosed as current liabilities.
(23) Provisions
An obligation related to a contingency shall be recognized by the Group as a provision when all of the
following conditions are satisfied, except contingent considerations and contingent liabilities assumed in a
business combination not involving enterprises under common control:
(1) The obligation is a present obligation of the Group;
(2) It is probable that an outflow of economic benefits from the Group will be required to settle the
obligation; and
(3) The amount of the obligation can be measured reliably.
The provisions are initially measured at the best estimate of the expenditure required to settle the related
present obligation, taking into account factors pertaining to a contingency such as the risks, uncertainties
and time value of money as a whole. The carrying amount of provisions is reviewed at the balance sheet
date. Where there is clear evidence that the carrying amount of a provision does not reflect the current
best estimate, the carrying amount is adjusted to the current best estimate.
Contingent liabilities of the acquiree obtained in a business combination shall be measured at fair value in
initial recognition. After initial recognition, subsequent measurement is conducted using the higher of the
amount recognized by provisions and the amount of initial recognition deducting the accumulated
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
amortization amount determined by the principles of revenue recognition.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(24) Dividend distribution
Cash dividend distribution is recognized as a liability in the period in which it is approved by shareholder
at the annual shareholders’ meeting.
(25) Revenue recognition
The amount of revenue is determined in accordance with the fair value of the consideration received or
receivable for the sale of goods and services in the ordinary course of the Group’s activities. Revenue is
shown net of discounts and returns.
Revenue can be recognized on condition that the transaction-related economic interest is expected to be
satisfied, the amount is able to reliably measured, and the following recognition conditions are met:
(a) 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) Rendering of services
The Group provides freight, storage and other services 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. Other revenue is determined in accordance with
the amount provided in the service period stipulated in the contract.
(c) Customer loyalty programme
The Group, offers a customer loyalty programme where points earned through the purchase of goods can
only be redeemed for goods provided by Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd.
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.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(26) Government grants
Government grants are transfers of monetary or non-monetary assets from the government to the Group
at nil consideration, including refund of taxes and financial subsidies, etc.
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.
A government grant related to an asset is a grant received aimed to create a long-term asset by
contracting or other methods. A government grant related to income is any grant other than government
grants related to assets.
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.
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.
A government grant related to daily operating activities is recognized as Miscellaneous incomes. If the
grant is not related to daily operating activities that is recognized as none-operating income. The Bureau
of Finance appropriates finance discount to the group directly, then the group write off the related cost of
loan。
(27) Income tax
Income tax comprises current and deferred tax. Income tax is recognized as income or an expense in
profit or loss of the current period, or recognized directly in shareholders’ equity if it arises from a business
combination or relates to a transaction or event which is recognized directly in shareholders’ equity.
The Group measures a current tax asset or liability arising from the current and prior period based on the
amount of income tax expected to be paid by the Group or returned by tax authority calculated according
to related tax laws.
Deferred tax assets and deferred tax liabilities are calculated and recognized based on the differences
arising between the tax bases of assets and liabilities and their carrying amounts (temporary differences).
Deferred tax asset is recognized for the deductible losses that can be carried forward to subsequent
years for deduction of the taxable profit in accordance with the tax laws. No deferred tax liability is
recognized for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset
or deferred tax liability is recognized for the temporary differences resulting from the initial recognition of
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
assets or liabilities due to a transaction other than a business combination, which affects neither
accounting profit nor taxable profit (or deductible loss). At the balance sheet date, deferred tax assets and
deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the
asset is realized or the liability is settled.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(27) Income tax（Continued）
Deferred tax assets are only recognized for deductible temporary differences, deductible losses and tax
credits to the extent that it is probable that taxable profit will be available in the future against which the
deductible temporary differences, deductible losses and tax credits can be utilized.
Deferred tax assets and liabilities are offset when:
the deferred taxes are related to the same tax payer within the Group and the same taxation
authority; and,
that tax payer has a legally enforceable right to offset current tax assets against current tax liabilities.
Deferred tax liabilities are recognized for temporary differences arising from investments in subsidiaries
and associates, except where the Group is able to control the timing of the reversal of the temporary
difference, and it is probable that the temporary difference will not reverse in the foreseeable future. When
it is probable that the temporary differences arising from investments in subsidiaries, and associates will
be reversed in the foreseeable future and that the taxable profit will be available in the future against
which the temporary differences can be utilized, the corresponding deferred tax assets are recognized.
(28) Leases
Finance leases are leases with the whole risks and rewards related to the asset substantially transferred.
The other kinds of leases are nominated operating leases.
(a) Operating leases
Lease payments under an operating lease are recognized on a straight-line basis over the period of the
lease, and are either capitalized as part of the cost of related assets or charged as an expense for the
current period.
Lease income under an operating lease is recognized on a straight-line basis over the period of the lease.
(b) Finance leases
Fixed assets leased under finance leases are recognized at the smaller value of the fair value and
present value of the minimum lease payments. The difference between the book value and the minimum
lease payments should be recognized as unrecognized financing charges, and amortized within the
leasing period. The minimum lease payments net off the unrecognized financing charges should be
classified as long-term payables.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(29) Discontinued operations
A discontinued operation is a component of an enterprise that either has been disposed of or is classified
as held for sale, and is separately identifiable operationally and for financial reporting purpose, and
satisfies one of the following conditions:
(1) Represents a separate major line of business or geographical area of operations;
(2) Is part of a single coordinated plan to dispose of a separate major line of business or geographical
area of operation;
(3) Is a subsidiary acquired exclusively with a view to resale.
(30) Segment information
The Group identifies operating segments based on the internal organization 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.
(31) Critical accounting estimates
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.
(a) 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:
(i) 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 the use of estimates (Note V (16)).
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 recognize further impairment against goodwill and fixed assets.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(a) Critical accounting estimates and key assumptions (Continued)
(i) Accounting estimates on impairment of goodwill (Continued)
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.
(ii) Accounting estimates on impairment of accounts receivable
In accordance with the Group’s accounting policy (Note III (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.
(iii) Accounting estimates on impairment of inventories
In accordance with the Group’s accounting policy (Note III (11) (c)), 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.
V Changes of significant accounting policies
Pursuant to regulations of accounting for Enterprises NO.16- Government grants（Accounting (2017)
NO.15,Since January 1st 2017, government grant related to daily operating activities is recognized as
Miscellaneous incomes. If the grant is not related to daily operating activities that is recognized as
none-operating income. The Bureau of Finance appropriates finance discount to the group directly, then
the group write off the related cost of loan. During the current reporting period,the group recognized RMB
7,958,493.67 miscellaneous income. The Bureau of Finance appropriates finance discount to the group
directly, then the group write off the related cost of loan.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
IV Taxation
1. Main categories and rates of taxes:
Categories Tax base Tax rate
Corporate income tax (“CIT”) Taxable income 15%,20% or 25%
Taxable value added amount (Tax payable is calculated
using the taxable sales amount multiplied by the effective tax
Value added tax (“VAT”) rate less deductible VAT input of the current period) 0%,3%,5%,6%,11%,13% or 17%
City maintenance and
construction tax Amount of VAT and business tax paid 5% or 7%
Educational surcharge Amount of VAT and business tax paid 3%
Local educational surcharge Amount of VAT and business tax paid 2%
2. Tax preferences
(a) In 2014, the Group’s subsidiary Sinopharm Holding Guangxi Logistics Co., Ltd. (“Sinopharm
Guangxi Logistics”) was approved by the Guangxi Local Tax Bureau to enjoy a tax discount
applicable to corporations in the region of Western Development to pay income tax at a tax rate of
15%. In 2016，due to the real estate relocation income, the operating revenue’s proportion is below
70%, which does not meet the requirements of the preferential tax rate, so Sinopharm Guangxi
Logistics was subject to a corporate income tax rate of 25% during the year.
From May to December of 2015, eight subsidiaries in Guangxi Province of the Group, including
Sinopharm Guangxi, Sinopharm Holding Liuzhou Co., Ltd. (“Sinopharm Liuzhou”) , Sinopharm
Holding Beihai Co., Ltd (“Sinopharm Beihai”), Sinopharm Holding Guilin Co., Ltd. (“Sinopharm
Guilin”), Sinopharm Holding Guigang Co., Ltd. (“Sinopharm Guigang”), Sinopharm Holding Yulin Co.,
Ltd. (“Sinopharm Yulin”), Sinopharm Holding Baise Co., Ltd (“Sinopharm Baise”)and Sinopharm
Holding Wuzhou Co., Ltd. (“Sinopharm Wuzhou”) were all approved by the Guangxi Local Tax
Bureau to enjoy a tax concession of Western Development at a preferential CIT rate of 15%. The
applicable period for Sinopharm Guangxi, Sinopharm Liuzhou and Sinopharm Beihai is 1 January
2014 to 31 December 2020, and that for the other 5 subsidiaries is 1 January 2015 to 31 December
2020.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
IV Taxation (Continued)
2. Tax preferences (Continued)
(b) The Urumqi Head Office, Changji Branch and Karamay Branch of Sinopharm Holding Xinjiang New
& Special Medicines Chain Store Co., Ltd. (“Xinjiang New & Special Medicines”), a subsidiary of the
Group, shall pay tax at a rate of 15% by jurisdictions According to the Circular of the Ministry of
Finance, the State Administration of Taxation, the General Administration of Customs on Issues
Concerning Tax Policies for the Further Development of the Western Regions (Cai shui [2011]
No.58), enterprises from encouraged industries in the Western Regions, could enjoy a reduced CIT
rate of 15% from 1 January 2011 to 31 December 2020. According to the reply to Registration Form
for Items Enjoying Preferential Treatments in Corporate Income Tax by local tax authorities, in 2016
and 2017, the Urumqi Head Office, Changji Branch and Karamay Branch of Xinjiang New & Special
Medicines were subject to a reduced CIT rate of 15%.
According to Ning cai (shui) fa [2012] No.957, Ningxia Guoda Pharmacy Chain Store Co., Ltd., a
subsidiary of the Group, was qualified for the enterprise from encouraged industries of Western
Development. Therefore, in 2016 and 2017, the company was exempt from the local retained portion
of the corporate income tax (40%), and therefore subject to a CIT rate of 15%.
According to Cai shui [2011] No.58 and Notices on Tax Reduction and Exemption (Hu shi hui guo
shui deng zi [2014] No. 37), Sinopharm Holding Guoda Neimenggu Pharmacy Chain Store Co., Ltd.,
a subsidiary of the Group, was entitled to the preferential tax rate for the further development of the
Western Regions. Therefore the company is entitled to a preferential CIT rate of 15%.
According to the tax reduction and exemption conditions under the Circular of Local Taxation Bureau
of the Autonomous Region on Printing and Distributing the Administration and Implementation
Measures for Preferential Corporate Income Tax (Gui di shui fa [2009] No. 150), Sinopharm Holding
Guoda Guangxi Pharmacy Chain Store Co., Ltd., received the Written Decision on Approval and
Confirmation of Preferential Tax from local taxation bureau of Liuzhou city on 21 May 2015, which
approved that the company was subject to a CIT rate of 15% in 2016 and 2017.
(c) The Corporate Income Tax Law of the People's Republic of China stipulates in Article 28 that, small
low-profit enterprises are subject to corporate income tax at a rate of 20%. The Implementation
Rules for the Corporate Income Tax Law of the People's Republic of China stipulate in Article 92 that,
small low-profit enterprises refer to enterprises operating in industries not restricted or prohibited by
the State and satisfying following conditions: 1. For industrial enterprises, the annual taxable income
does not exceed RMB300,000; the number of employees does not exceed 100 and the total assets
does not exceed RMB30 million; 2. for other industries, the annual taxable income does not exceed
RMB300,000; the number of employees does not exceed 80 and the total assets does not exceed
RMB10 million.
In addition, according to the Circular on Issues Concerning the Preferential Policies for Corporate
Income Tax for Small Low-profit Enterprises (Cai shui [2015] No. 34), Announcement of the State
Administration of Taxation on Issues concerning the Implementation of the Further Expansion of the
Scope of Small Low-profit Enterprises (Cai shui [2015] No.99), small low-profit enterprises with
annual taxable income of RMB300,000 or less enjoy a tax reduction of 50% of the income and pays
income tax at a rate of 20%. That is, the applicable corporate income tax rate is 10%.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements
1. Cash and bank balances
30 June 2017 31 December 2016
Cash on hand 2,352,467.38 6,164,382.85
Cash at banks 3,021,838,164.59 3,144,751,042.64
Other cash balances 337,138,215.47 369,046,139.44
- deposits for letters of credit 258,800.00 58,800.00
- deposits for bank acceptance
notes 329,893,872.10 333,961,620.45
- Cash deposit for pledged loan - 31,255,582.91
- Term deposits longer than 3
6,985,543.37 3,770,136.08
months
3,361,328,847.44 3,519,961,564.93
2. Notes receivable
30 June 2017 31 December 2016
Trade acceptance notes 642,961,849.94 594,546,810.36
Bank acceptance notes 401,495,215.26 909,454,098.85
1,044,457,065.20 1,504,000,909.21
At 30 June 2017 and 31 December 2016, there were no notes receivable that were pledged
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
2. Notes receivable (Continued)
Notes receivable endorsed or discounted by the Group to other parties which were not yet due at 30
June 2017 are as follows:
30 June 2017
Derecognized Not derecognized
Trade acceptance notes - 5,242,378.62
Bank acceptance notes 1,075,857,770.01 -
1,075,857,770.01 5,242,378.62
As at 30 June 2017 and 31 December 2016, notes that were converted into accounts receivable due to
the drawer’s inability to settle the note on maturity date are as follows:
30 June 2017
Trade acceptance notes 3,434,399.98
3. Accounts receivable
30 June 2017 31 December 2016
Accounts receivable 9,173,691,063.26 7,703,120,162.25
Less: provision for bad debt (51,117,555.09) (48,894,651.36)
9,122,573,508.17 7,654,225,510.89
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
3. Accounts receivable (Continued)
The accounts receivable by category are analyzed below:
30 June 2017 31 December 2016
Gross carrying amount Provision for bad debt Gross carrying amount Provision for bad debt
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Individually
significant
items for
which
provision for
bad debt is
recognized
separately 484,964,949.60 5.29% (11,559,178.29) 2.38% 445,672,816.82 5.79% (11,559,178.29) 2.59%
Items for
which
provision for
bad debt is
recognized by
group 8,672,588,544.28 94.54% (31,108,015.89) 0.36% 7,236,776,975.66 93.95% (27,546,435.58) 0.38%
Not
individually
significant
Items for
which
provision for
bad debt is
recognized
separately 16,137,569.38 0.17% (8,450,360.91) 52.36% 20,670,369.77 0.26% (9,789,037.49) 47.36%
9,173,691,063.26 100.00% (51,117,555.09) 0.56% 7,703,120,162.25 100.00% (48,894,651.36) 0.63%
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
3. Accounts receivable (Continued)
At 30 June 2017, accounts receivable that are individually significant and individually assessed for
provisions are as follows:
Carrying Bad debt
amount provision Rate Assessment for impairment
Receivable of medical Receivable of medical insurance
insurance 354,567,313.29 - - with no risk of recoverability
Receivable of Franchises within 1
Receivable of Franchises 49,409,908.28 - - year with no risk of recoverability
Receivable of E-Business with no
Receivable of E-Business 30,388,582.67 - - risk of recoverability
Sinopharm Health Online Receivable due from a related party
Co., Ltd. 16,695,069.39 - - with no risk of recoverability
Receivable of Credit cards with no
Receivable of credit card 15,059,755.54 - - risk of recoverability
Disputed receivable with higher risk
Hubei Xianning 100.00 of recoverability which is related to
Pharmaceutical Co., Ltd. 11,559,178.29 11,559,178.29 % a lawsuit
Sinopharm Holding Receivable due from a related party
Hulunbuir Co., Ltd. 4,463,112.54 - - with no risk of recoverability
Receivable due from a related party
Sinopharm Group Co., Ltd. 2,822,029.60 - - with no risk of recoverability
Total 484,964,949.60 11,559,178.29
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
3. Accounts receivable (Continued)
The accounts receivable for which the Group recognized provision for bad debt using the aging
analysis method are presented as follows
30 June 2017
Carrying amount Bad debt provision
Amount Amount Proportion
Within 1 year 8,645,188,111.59 (28,310,998.07) 0.33%
1 to 2 years 21,606,310.52 (1,434,050.12) 6.64%
2 to 3 years 4,781,838.39 (688,294.90) 14.39%
Over 3 years 1,012,283.78 (674,672.80) 66.65%
8,672,588,544.28 (31,108,015.89) 0.36%
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
3. Accounts receivable (Continued)
The provision for bad debt was RMB3,379,381.84 in 30 June 2017, including
RMB1,935,876.77recovered or reversed. Important recovered or reversed bad debt items are listed
below:
Reason for
recoverability or Original assessment for Recovered or Way of
reversal providing impairment reversed amount recovery
Amount
Guangdong Guanghong Medicine Co., Ltd. Amount received Uncertainty in recovery 957,838.00 received
Health Centre of Guangzhou City Conghua District Amount
Chengjiao Street Amount received Uncertainty in recovery 158,647.79 received
Amount
Health Centre of Enping City Juntang Town Amount received Uncertainty in recovery 108,667.90 received
Amount
Health Centre of Luoding City Jialuo Town Amount received Uncertainty in recovery 41,827.10 received
Health Centre of Guangzhou City Zengcheng
District Licheng Street (The Hospital of Guangzhou Amount
City Zengcheng District Licheng Street) Amount received Uncertainty in recovery 934.68 received
1,267,915.47
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
3. Accounts receivable (Continued)
Accounts receivable written off in 30 June 2017 are analysed below:
Nature of the Related party transaction
receivable Amount Reason or not
Amount received after wrtten off
Receivables for recoverability in significant
Guangxi Lingshan Medicine Co., Ltd. of goods sold 11,000.00 doubt due to long age. No
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
3. Accounts receivable (Continued)
(i) They were written off in the current year after being approved by the board of directors.
As at 30 June 2017, the top five accounts receivable by customer are summarised below:
Bad debt provision % of the total accounts
Amount amount receivable
Top 1 Account receivable 178,720,779.86 (1,461,522.62) 1.95%
Top 2 Account receivable 129,732,940.73 (453,009.27) 1.41%
Top 3 Account receivable 128,425,578.61 - 1.40%
Top 4 Account receivable 104,563,931.39 - 1.14%
Top 5 Account receivable 103,634,729.44 (874,496.05) 1.13%
645,077,960.03 (2,789,027.74) 7.03%
In 30 June 2017, accounts receivable of RMB1,121,332,496.26 have been factored to a financial institute
(2016:RMB1,687,263,359.73).
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
4. Advances to suppliers
(a) The aging of advances to suppliers is analyzed below:
30 June 2017 31 December 2016
Amount % of total balance Amount % of total balance
Within 1 year 346,218,255.15 97.05% 411,644,193.52 96.88%
1 to 2 years 7,974,841.88 2.24% 11,793,388.28 2.78%
2 to 3 years 2,539,731.40 0.71% 800,000.00 0.19%
Above 3 years - - 630,000.00 0.15%
356,732,828.43 100.00% 424,867,581.80 100.00%
The prepayment aged for more than a year is mainly the advance made by South Pharma & Trade to
suppliers for equipment to be resold to the hospitals amounting to RMB10,015,568.84 (31 December 2016:
RMB12,927,024.58) as the hospital equipment procurement is a large project and takes a long time to
complete.
(b) As at 30 June 2017, the top five advances to suppliers by customer are summarized below:
Amount Proportion of total balance
Total amount of top five advances to suppliers 70,451,215.37 19.75%
5. Interest receivable
30 June 2017 31 December 2016
Fixed deposits - 450,722.67
Entrusted Loans 55 ,855.56 -
55,855.56 450,722.67
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
6. Other receivables
30 June 2017 31 December 2016
Deposits 171,761,925.12 192,975,588.52
Receivable of equity transactions 8,980,000.00 8,980,000.00
Petty cash advance to employees 20,280,521.80 14,926,087.80
Receivable due from related parties 116,485,640.83 145,308,980.82
Others 172,609,240.84 135,585,385.78
490,117,328.59 497,776,042.92
Less: provision for bad debts (19,020,556.92) (19,202,619.30)
471,096,771.67 478,573,423.62
(a) The ageing of other receivables is analyzed below:
30 June 2017 31 December 2016
Within 1 year 447,313,915.96 449,973,669.71
1 to 2 years 18,882,168.89 15,346,020.98
2 to 3 years 4,133,155.96 6,037,372.86
Above 3 years 19,788,087.78 26,418,979.37
490,117,328.59 497,776,042.92
(b) Changes of related provision for bad debts are analyzed below:
Balance at the
Increases in Reversal in Balance at the end
beginning of Written off in Decreased in
the year the year of the year
the year the year reorganization
2017 19,202,619.30 747,448.78 (929,511.16) - - 19,020,556.92
2016 19,117,084.21 181,998.77 (57,164.51) (3,692.31) (35,606.86) 19,202,619.30
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
6. Other receivables (Continued)
(c) Other receivables and related provision for bad debts by category are analyzed below:
30 June 2017 31 December 2016
Carrying amount Bad debt provision Carrying amount Bad debt provision
Amount % Amount % Amount % Amount %
Individually
significant and
subject to
separate
impairment
assessment 151,446,451.48 30.90% (9,510,078.71) 6.28% 184,418,573.80 37.05% (9,315,472.11) 5.05%
Receivable
accounts with
similar credit
risk 313,933,848.12 64.05% (2,455,351.03) 0.78% 286,923,888.75 57.64% (2,655,875.78) 0.93%
Individually not
significant but
individually
evaluated for
impairment 24,737,028.99 5.05% (7,055,127.18) 28.52% 26,433,580.37 5.31% (7,231,271.41) 27.36%
(19,202,619.30
490,117,328.59 100.00% (19,020,556.92) 3.88% 497,776,042.92 100.00% ) 3.86%
(d) As at 30 June 2017, impairment provision for other receivables individually significant are
analyzed as below:
Bad debt
Amount provision Rate Assessment for impairment
Cash deposit, no risk of recoverable, no
Deposit
134,608,277.20 - - provision
Shenzhen YinghaiTechnology
Investment Co., Ltd. 8,980,000.00 (8,980,000.00) 100.00% Uncertainty in recoverability
Staff temporary borrowings, partially
Staff temporary borrowings 7,858,174.28 (530,078.71) 6.75% unrecoverable
151,446,451.48 (9,510,078.71) 6.28%
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
6. Other receivables (Continued)
(e) Provisions for impairment of the receivables which are within a similar risk group are analyzed
below:
30 June 2017
Carrying amount Bad debt provision
amount Amount Rate
Within 1 year 309,570,541.75 (1,861,710.38) 0.60%
1 to 2 years 3,414,989.23 (292,845.10) 8.58%
2 to 3 years 415,164.36 (41,516.44) 10.00%
Above 3 years 533,152.78 (259,279.11) 48.63%
313,933,848.12 (2,455,351.03) 0.78%
(h) As at 30 June 2017，the top 5 parties that owed the largest amounts of other receivable balances are
analyzed below:
Nature Amount Age % of total amount Provision of bad debt
Guangdong Pharmaceutical Pharmaceutical trading platform Within 1
electronic trading platform payments not yet cleared 92,328,384.43 year 18.84% -
Shanghai Shyndec Pharmaceutical Pingshan engineering project Within 1
Co., Ltd. funds 64,949,258.90 year 13.25% -
Within 1
Zhijun Suzhou Associated company borrowing 44,000,000.00 year 8.98% -
Shanxi Medical Insurance Within 1
Management Center Medical insurance deposit 23,231,333.70 year 4.74% -
Shenzhen Social Security Within 1
Administration Medical insurance deposit 9,427,293.57 year 1.92% -
233,936,270.60 47.73% -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
7. Inventories
(a) Inventories by category are analyzed below:
30 June 2017 31 December 2016
Book value Provision Net book value Book value Provision Net book value
Raw materials 903,408.07 - 903,408.07 463,493.71 - 463,493.71
Finished goods 3,944,981,985.48 (13,274,944.95) 3,931,707,040.53 4,061,265,347.64 (14,930,813.47) 4,046,334,534.17
Work in progress 195,959.12 - 195,959.12 277,528.67 - 277,528.67
Low cost consumables 3,735,426.20 - 3,735,426.20 2,406,973.16 - 2,406,973.16
3,949,816,778.87 (13,274,944.95) 3,936,541,833.92 4,064,413,343.18 (14,930,813.47) 4,049,482,529.71
(b) Provision for declines in value of inventories is analysed below:
Increases in Decreases
1 January 2017 merge 30 June 2017
Increases Reversal Written off
Finished goods 14,930,813.47 825,145.97 36,589.81 2,517,604.30 - 13,274,944.95
14,930,813.47 825,145.97 36,589.81 2,517,604.30 - 13,274,944.95
(c) Provision of inventories is determined according to the gap between the net realizable value and
the inventory book value.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
8. Other current assets
30 June 2017 31 December 2016
Input VAT to be credited 61,612,448.41 54,643,824.07
Corporate income tax to be deducted 6,076,566.66 2,044,674.94
Others 22,557,723.03 520,764.03
90,246,738.10 57,209,263.04
9. Financial assets available-for-sale
30 June 2017 31 December 2016
Available-for-sale equity instruments
- M
easured at cost - 13,865,760.00 13,865,760.00
Impairment provision (180,000.00) (180,000.00)
13,685,760.00 13,685,760.00
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
9. Available-for-sale financial assets (Continued)
2017：
Carrying amount Impairment provision
Investee Shareholdin received for the y
Opening Increase Decrease Closing Opening Increase Decrease Closing g (%) ear
Sinopharm Health Online Co.,
Ltd. 12,000,000.00 - - 12,000,000.00 - - - - 10.00% -
Sinopharm Holding Hubei
Guoda Pharmacy Co., Ltd. 1,000,000.00 - - 1,000,000.00 - - - - 10.00% -
Sinopharm Guoda Taishan
Qunkang Pharmacy Chain
Store Co., Ltd. (“Guoda
Taishan”) - - - - - - - - - -
Hunan Zhongbai
pharmaceutical investment
Co., Ltd. 315,000.00 - - 315,000.00 - - - - 7.00% -
Shanghai Guoda Shuguang
270,760.00 270,760.00
Pharmacy Co., Ltd. - - - - - - 25.00% -
Xinxiang Golden Elephant. 180,000.00 - - 180,000.00 (180,000.00) - - (180,000.00) 18.00% -
Shanghai Guoren Pharmacy
Co., Ltd. 100,000.00 - - 100,000.00 - - - - 10.00% -
13,865,760.00 - - 13,865,760.00 (180,000.00) - - (180,000.00) - -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
9. Available-for-sale financial assets (Continued)
Classification of available for sale financial assets Available-for-sale equity instruments
Opening blance of provision for impairment 180,000.00
Closing blance of provision for impairment 180,000.00
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
10. Long-term equity investments
Associates in 2017
Changes in the year
Provisio
Cash
1 January n for
Investee Additional Profit of loss Other dividend 30 June 2017
2017 impairm
Investme under equity changes declared Other
ent
nt method in equity by
investee
Associates
Shenzhen Main Luck 207,259,086 - 27,151,517.0 - (35,190,0 - 199,220,603 -
Pharmaceutical Inc. (“Main Luck .90 6 00.00) .96
Pharmaceutical”). (a) Zhuhai Co., 1,420,13
- - - -
(1,420,1
- -
Ltd (“Sinopharm Zhuhai”)”.(b) 9.96 39.96)
Shanghai Beiyi Guoda 8,980,08 9,971,870.1
- 991,783.70 - - - -
Pharmaceutical Co. Ltd. (c) 6.48 8
Shanghai Liyi Pharmacy Co., Ltd. 642,479
- 59,874.12 - - - 702,353.81 -
(d) .69
Dongyuan Accord
396,638 396,6
Pharmaceutical Chain Co., Ltd. - - - - - 396,638.32
.32 38.32
(f)
Sinopharm Jienuo Medical
Treatment Service Guangdong 9,442,7 (403,428.80 9,039,312.8
- - - - -
Co., Ltd. (“Guangdong Jie 41.61 ) 1
nuo”) (g)
69,642, (9,711,552.17 59,931,433.
Zhijun Suzhou (h) - - - - -
985.98 ) 81
174,820 57,389,488.1 232,209,900
Zhijun Medicine. (i) - - - - -
,412.07 5 .22
6,198,8 7,047,943.5
Zhijun Trade. (i) - 849,123.12 - - - -
20.40 2
47,087, 14,858,166. 61,946,124.
Pingshan Medicine (i) - - - - -
958.31 26 57
Shanghai Shyndec 887,539,45 55,590,445.8 (22,468,8 920,675,069
- 13,987.58 - -
Pharmaceutical Co., Ltd. 4.16 5 18.32) .27
- -
1,413,430,80 - 146,775,417.2 13,987.58 (57,658,8 (1,420,13 1,1,501,141,250 396,6
3.88 9 18.32) 9.96) .47 38.32
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
11. Investment properties
Subsequent measurement under the cost model:
2017 Buildings and
constructions Land use right Total
Original cost
Opening balance 245,258,727.03 23,833,990.27 269,092,717.30
Transfer from fixed assets 11,593,729.85 - 11,593,729.85
Transfer from intangible assets - 302,035.37 302,035.37
Disposal of subsidiaries - - -
Transfer to intangible assets - - -
Transfer to fixed assets - - -
Disposal and retirement (3,480,329.35) (764,259.54) (4,244,588.89)
Closing balance 253,372,127.53 23,371,766.10 276,743,893.63
Accumulated
depreciation and
amortization
Opening balance (93,028,655.88) (8,048,212.62) (101,076,868.50)
Provision (3,988,205.68) (386,140.84) (4,374,346.52)
Transfer from fixed assets (9,576,586.76) - (9,576,586.76)
Transfer from intangible assets - (43,391.68 ) (43,391.68)
Disposal of subsidiaries - - -
Transfer to intangible assets - - -
Transfer to fixed assets - - -
Disposal or retirement 2,251,296.46 149,626.49 2,400,922.95
Closing balance (104,342,151.86) (8,328,118.65) (112,670,270.51)
Provision for
impairment
Opening balance (1,300,000.00) - (1,300,000.00)
Closing balance (1,300,000.00) - (1,300,000.00)
Carrying amount
At end of year 147,729,975.67 15,043,647.45 162,773,623.12
At beginning of the year 150,930,071.15 15,785,777.65 166,715,848.80
(a) Fixed assets without official property right certificates
Items Carrying amount Reason for outstanding property right
certificates
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Guangxi old town reconstruction 67,232,205.84 In the process
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
12. Fixed assets
Fixed asset
2017 Buildings Machinery Vehicles Other equipment Total
improvements
Original cost
Opening balance 416,870,234.54 136,667,853.08 90,713,467.96 240,527,711.61 22,373,714.89 907,152,982.08
Purchase 29,071,000.00 25,309,413.95 2,346,534.84 11,010,714.13 5,539,205.82 73,276,868.74
Transfer from construction in progress - 1,056,016.47 - 631,255.64 - 1,687,272.11
Transfer from Investment properties 3,480,329.35 - - - - 3,480,329.35
Business combination not involving enterprises under
- 85,536.45 345,119.91 11,299.12 108,297.67 550,253.15
common control
Transfer to Investment properties (11,558,969.35) - - - - (11,558,969.35)
Disposal of subsidiaries - - - - - -
Disposal or retirement - (572,893.19) (3,961,648.11) (5,886,493.20 ) (3,546,468.45) (13,967,502.95)
Closing balance 437,862,594.54 162,545,926.76 89,443,474.60 246,294,487.30 24,474,749.93 960,621,233.13
Accumulated depreciation
Opening balance (139,954,250.07) (57,610,772.80) (59,136,773.31) (142,597,466.20) (20,844,119.60) (420,143,381.98)
Provision (6,763,965.48) (7,395,676.21) (4,286,580.46) (10,200,464.21) (6,575,618.32) (35,222,304.68)
Transfer from Investment properties (2,251,296.46) - - - - (2,251,296.46)
Transfer to Investment properties 9,576,586.76 - - - - 9,576,586.76
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Disposal of subsidiaries - - - - - -
Disposal or retirement - 446,746.15 3,311,446.20 4,984,576.03 3,146,206.66 11,888,975.04
Closing balance (139,392,925.25) (64,559,702.86) (60,111,907.57) (147,813,354.38) (24,273,531.26) (436,151,421.32)
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
12. Fixed assets (Continued)
2017(Continued)
Fixed asset
Buildings Machinery Vehicles Other equipment Total
improvements
Provision for impairment
Opening balance - - - - - -
Disposal of subsidiaries - - - - - -
Closing balance - - - - - -
Carrying amount
At end of year 298,469,669.29 97,986,223.90 29,331,567.03 98,481,132.92 201,218.67 524,469,811.81
At beginning of the year 276,915,984.47 79,057,080.28 31,576,694.65 97,930,245.41 1,529,595.29 487,009,600.10
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
12. Fixed assets (Continued)
(a) Fixed assets held under finance leases are presented as follows:
2017
Accumulated Provision for
Original cost Carrying amount
depreciation impairment
Machinery 24,727,118.29 4,954,963.05 - 19,772,155.24
(b)Fixed assets without official property right certificates
Items Carrying amount Reason for outstanding property
right certificates
Buildings 29,071,000.00 In the process
(c) As at 30 June 2017, there were no fixed assets that were leased under operating leases.
(d) During the semi year of 2017, fixed assets are accumulated depreciation as blow:
For the six month ended For the six month ended
30 June 2017 30 June 2016
Operating cost 1,353,951.51 3,379,289.25
Selling expenses 21,860,957.80 17,367,421.52
Administrative expenses 14,130,107.15 24,142,228.81
Manufacturing expenses 128,584.68 103,213.44
37,473,601.14 44,992,153.01
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
13. Construction in progress
30 June 2017 31 December 2016
Provision for Carrying Carrying Provision for Carrying
Carrying balance impairment amount balance impairment amount
Warehouse improvement 14,044,783.6
project 289,698.61 - 289,698.61 8 - 14,044,783.68
New office building project 8,237,719.60 - 8,237,719.60 7,979,356.35 - 7,979,356.35
Supply chain extension
project 9,717,627.82 - 9,717,627.82 5,209,203.43 - 5,209,203.43
10,889,391.6
Software project 779,888.49 - 779,888.49 7 - 10,889,391.67
Pingshan pharmaceutical
research & development
manufacturing base - - - - - -
Zhijun production workshop
technological transformation
project - - - - - -
Zhijun(Suzhou) production
workshop technological
transformation project - - - - - -
Other projects 10,517,948.39 - 10,517,948.39 8,941,133.36 - 8,941,133.36
47,063,868.4
29,542,882.91 - 29,542,882.91 9 - 47,063,868.49
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
13. Construction in progress (Continued)
(a) Changes of significant construction in progress
Changes of significant construction in progress in 2017 are presented as follows:
Decrease
Proportion of
At beginning of Transfer to long Source of
Project name Budget Increase Disposal of At end of year investment to
the year funds
Transferred to fixed Transferred to term prepaid Others budget (%)
assets intangible assets expense subsidiaries
Warehouse improvement Working capital
project 17,208,255.52 14,044,783.68 970,183.59 - (14,725,268.66) - - 289,698.61 99.22
New office building Project 38,182,660.00 7,979,356.35 380,363.25 (122,000.00) - - - 8,237,719.60 Working capital 21.69
Supply chain extension project 18,761,555.11 5,209,203.43 6,116,687.64 (1,269,801.71) (338,461.54) - - 9,717,627.82 Working capital 75.72
Software project 15,592,801.89 10,889,391.67 4,703,410.22 (14,812,913.40) - - 779,888.49 Working capital 99.00
Other construction projects 207,336,158.27 8,941,133.36 2,137,449.09 (295,470.40) (265,163.66) - - 10,517,948.39 Working capital 5.04
297,081,430.79 47,063,868.49 14,308,093.79 (1,687,272.11) (30,141,807.26 ) - - 29,542,882.91
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
13. Construction in progress (Continued)
(a) Changes of significant construction in progress（Continued）
Incl: interest
Accumulated amount of Capitalization
Project name Budget Progress（%） capitalized in
interest capitalized rate (%)
current year
Warehouse improvement project 17,208,255.52 80.00
New office building project 38,182,660.00 90.00
Supply chain extension project 18,761,555.11 77.00
Software project 15,592,801.89 95.00
Other construction projects 207,336,158.27
297,081,430.79 -
(b) As of 30 June 2017,there are no finance leases in construction in progress (31 December 2016: RMB1,924,502.57 ).
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 31 December 2016
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
14. Intangible assets
2017 Land use right Software Patent Trademarks Sales network Franchise Total
Original cost
Opening balance 56,018,083.73 100,602,877.73 - 159,219,850.00 112,117,142.86 710,000.00 428,667,954.32
Purchase 4,000,000.00 6,834,388.84 - - - - 10,834,388.84
Transfer from construction in
progress - 15,395,443.32 - - - - 15,395,443.32
Transfer from investment properties 764,259.54 - - - - - 764,259.54
Disposal of subsidiaries - - - - - - -
Transfer to investment properties (302,035.37) - - - - - (302,035.37)
Transfer to long term prepaid expense - (944,000.00) - - - - (944,000.00)
Disposal or retirement - - - - - - -
Closing balance 60,480,307.90 121,888,709.89 - 159,219,850.00 112,117,142.86 710,000.00 454,416,010.65
Accumulated amortization
Opening balance (23,161,818.46) (44,791,854.17) - (10,088,261.76) (29,480,619.04) (710,000.00) (108,232,553.43)
Provision (403,832.25) (5,185,150.96) - (2,472,852.98) (4,211,873.15) - (12,273,709.34)
Transfer from investment properties (149,626.49) - - - - - (149,626.49)
Disposal of subsidiaries - - - - - - -
Transfer to investment properties 43,391.68 - - - - - 43,391.68
77
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
2017 Land use right Software Patent Trademarks Sales network Franchise Total
Transfer to long term prepaid expense - 195,358.34 - - - - 195,358.34
Disposal or retirement - - - - - - -
Closing balance (23,671,885.52) (49,781,646.79) - (12,561,114.74) (33,692,492.19) (710,000.00) (120,417,139.24)
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
14. Intangible assets (Continued)
2017 (Continued) Land use right Software Patent Trademarks Sales network Franchise Total
Provision for impairment
Opening balance - - - - - - -
Disposal of subsidiaries - - - - - - -
Closing balance - - - - - - -
Carrying amount
At end of the year 36,808,422.38 72,107,063.10 - 146,658,735.26 78,424,650.67 - 333,998,871.41
At beginning of the year 32,856,265.27 55,811,023.56 - 149,131,588.24 82,636,523.82 - 320,435,400.89
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
14. Intangible assets (Continued)
As at 30 June 2017, there were no intangible assets arising from internal research and development (30 June 2016: none)
As at30 June 2017, intangible assets without the right certificates as below,
Items Carrying amount Reason for outstanding property right certificates
Land use right 4,000,000.00 In the process
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
15. Goodwill
(1) Goodwill cost
Increase Decrease
30 June 2017 Opening balance Business combination not Closing balance
involving enterprises under
common control Disposal
Jiangmen Renren Medical Co., Ltd.
(“Sinopharm Jiangmen”) 27,392,317.73 - - 27,392,317.73
Sinopharm Holding Shenzhen
Yanfeng Co., Ltd. (“Sinopharm
Yanfeng”) 16,868,644.87 - - 16,868,644.87
Sinopharm Holding Zhaoqing Co., Ltd.
(“Sinopharm Zhaoqing”) 2,594,341.53 - - 2,594,341.53
Sinopharm Holding Shaoguan Co.,
Ltd. (“Sinopharm Shaoguan”) 1,686,496.80 - - 1,686,496.80
Sinopharm Holding Meizhou Co., Ltd.
(“Sinopharm Meizhou”) 1,610,819.66 - - 1,610,819.66
Sinopharm Holding Huizhou Co., Ltd.
(“Sinopharm Huizhou”) 923,184.67 - - 923,184.67
Sinopharm Holding Zhanjiang Co.,
Ltd. (“Sinopharm Zhanjiang”) 282,135.55 - - 282,135.55
Sinopharm Holding Dongguan Co.,
Ltd. (“Sinopharm Dongguan”) 1,499.02 - - 1,499.02
South Pharma & Trade 2,755,680.62 - - 2,755,680.62
Foshan Nanhai 88,877,850.51 - - 88,877,850.51
Sinopharm Holding Zhuhai
Co.,Ltd.(Sinopharm Zhuhai) - 4,073,195.23 - 4,073,195.23
Sinopharm Holding Guoda ForMe
Medicines (Shanghai) Co., Ltd.
( “ForMe Medicines”) 3,033,547.53 - - 3,033,547.53
Shijiazhuang Lerentang Yikang
Pharmacy Chain Store Co., Ltd.
(“Hebei Yikang”) 29,482,149.57 - - 29,482,149.57
Xiaoyi Guoda Wanmin Baicaotang
Pharmacy Chain Store Co., Ltd.
(“Xiaoyi Wanmin”) 15,866,680.00 - - 15,866,680.00
Shanxi Guoda Wanmin Pharmacy
Chain Store Co., Ltd. 65,025,000.00 - - 65,025,000.00
Sinopharm Holding Guoda ForMe
Pharmacy Chain Store Co., Ltd.
(“ForMe Pharmacy Chain Store”) 19,405,450.23 - - 19,405,450.23
Sinopharm Holding Guoda Pharmacy
Chain Store Shanghai Co., Ltd. 5,028,638.00 - - 5,028,638.00
Sinopharm Holding Guoda Yangzhou
Dadesheng Pharmacy Chain Store
Co., Ltd. 7,979,000.00 - - 7,979,000.00
Zhejiang Guoda Pharmacy Co., Ltd. 3,045,183.85 - - 3,045,183.85
Guoda Shenyang Tianyitang
Pharmacy Chain 1,687,942.92 - - 1,687,942.92
81
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Increase Decrease
30 June 2017 Opening balance Business combination not Closing balance
involving enterprises under
common control Disposal
Sinopharm Holding Guoda Nanjing
Pharmacy Chain Store Co., Ltd. 11,598,341.12 - - 11,598,341.12
Fujian Guoda Pharmacy Chain Store
Co., Ltd. 1,567,250.76 - - 1,567,250.76
Sinopharm Holding Guoda Shandong
Pharmacy Chain Store Co., Ltd. 29,110,409.46 - - 29,110,409.46
Sinopharm Holding Guoda Shenyang
Pharmacy Chain Store Co., Ltd. 39,360,015.16 - - 39,360,015.16
Liyang Guoda People Pharmacy Chain
Store Co., Ltd. 107,275,095.74 - - 107,275,095.74
Sinopharm Holding Hunan Guoda
Minshengtang Pharmacy Chain Co.,
Ltd. 41,165,574.64 - - 41,165,574.64
Quanzhou Guoda Pharmacy Chain
Store Co., Ltd. 41,298,622.59 - - 41,298,622.59
Sinopharm Holding Guoda Henan
Pharmacy Chain Store Co., Ltd. 22,666,179.77 - - 22,666,179.77
Sinopharm Holding Guoda Neimenggu
Pharmacy Chain Store Co., Ltd. 70,485,777.00 - - 70,485,777.00
Sinopharm Guoda Pharmacy
Jiangmen Chain Co., Ltd. 77,350,000.00 - - 77,350,000.00
Sinopharm Holding Guoda Shanxi
Yiyuan Pharmacy Chain Store Co.,
Ltd. 9,080,100.00 - - 9,080,100.00
Shenzhen Guanganli Pharmacy Chain
Store Co., Ltd. store acquisition 13,420,000.00 - - 13,420,000.00
Beijing Golden Elephant Pharmacy
Medicine Chain Company Limited
(“Beijing Golden Elephant”) 63,546,507.81 - - 63,546,507.81
Beijing Yangqiao Rongzhi Golden
Elephant Pharmacy Company
Limited 593,616.55 - - 593,616.55
Guoda Taishan 26,826,120.55 - - 26,826,120.55
848,890,174.21 4,073,195.23 - 852,963,369.44
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
15. Goodwill (Continued)
(2) Provision of impairment loss
Changes in provision for impairment of goodwill are presented as follows:
2017 Opening balance Increase Decrease Closing balance
Provision Disposal
Quanzhou Guoda Pharmacy
Chain Store Co., Ltd. 25,000,000.00 - - 25,000,000.00
The method of goodwill impairment testing process, parameter and recognition of impairment loss:
The recoverable amount of asset groups and groups of asset groups is calculated by using the
estimated cash flows according to the five-year budget approved by management. Management
determines budgeted gross margin based on historical experience and forecast on market development.
The discount rates determined by management are the pre-tax interest rates which reflect the risks
specific to the related asset groups and groups of asset groups. The above assumptions are used to
assess the recoverable amount of each asset group and group of asset groups within the corresponding
operating segment.
16. Long-term prepaid expenses
2017 Opening balance Additions Amortization Other decrease Closing balance
Fixed asset improvement
expenditure 158,483,260.94 48,704,866.85 (26,821,863.38) - 180,366,264.41
Acquisition expenditure to
obtain the right to operate 28,493,593.63 5,697,437.95 (4,107,222.47) - 30,083,809.11
Others 1,400,871.07 1,358,336.63 (445,437.29) - 2,313,770.41
188,377,725.64 55,760,641.43 (31,374,523.14) - 212,763,843.93
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
17. Deferred tax assets/liabilities
(a) Deferred tax assets before offseting
30 June 2017 31 December 2016
Deductible temporary Deductible temporary
Deferred tax assets differences Deferred tax assets differences
Provision for
impairment of assets 18,924,053.88 82,183,379.30 19,118,314.97 83,604,722.45
Deductible tax loss 22,144,103.00 88,809,460.60 21,393,844.91 85,575,379.60
Accrued payroll 18,158,094.98 74,322,136.82 11,524,213.88 48,767,983.92
Employee benefits
payable 8,600,423.61 36,117,454.63 14,668,802.63 60,272,948.20
Deferred revenue 5,727,325.55 23,819,800.26 6,196,507.49 25,425,419.68
Others 1,001,860.39 4,388,198.38 445,778.06 2,065,022.05
74,555,861.41 309,640,429.99 73,347,461.94 305,711,475.90
(b) Deferred tax liabilities before offseting
30 June 2017 31 December 2016
Deferred tax Taxable temporary Taxable temporary
liabilities differences Deferred tax liabilities differences
Fair value adjustment
for business
combination not
involving enterprises
under common
control 61,720,973.26 271,956,988.31 63,557,328.29 254,229,313.19
Changes in fair value 8,374,731.01 33,826,462.15 8,734,282.98 35,313,052.96
Others 3,773,319.00 15,093,276.00 4,676,832.38 18,707,329.48
73,869,023.27 320,876,726.46 76,968,443.65 308,249,695.63
(c) The deductible temporary differences and deductible losses that were not recognized as
deferred tax assets are presented as follows:
30 June 2017 31 December 2016
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Deductible temporary differences 3,106,315.98 1,300,000.00
Deductible loss 22,385,879.19 20,729,807.46
25,492,195.17 22,029,807.46
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
17. Deferred tax assets/liabilities (Continued)
The aforesaid unrecognized deductible losses will due:
30 June 2017 31 December 2016
2017 6,047,670.28 6,047,670.28
2018 6,102,981.86 5,630,816.89
2019 4,187,138.75 3,324,752.13
2020 4,397,395.68 4,075,875.54
2021 1,650,692.62 1,650,692.62
22,385,879.19 20,729,807.46
Deferred tax assets and liabilities are presented after being offset against each other:
30 June 2017 31 December 2016
Deferred tax Temporary Deferred tax Temporary
assets/liabilities differences assets/liabilities - differences
-Net after set-off Net after set-off
Deferred tax assets 74,555,861.41 309,640,429.99 72,914,722.30 303,980,517.34
Deferred tax liabilities 73,869,023.27 320,876,726.46 76,535,704.01 306,518,737.07
(note) As some subsidiaries are still making loss, and it’s uncertainty that the loss-making subsidiarie
can obtain enough taxable income to offset against the loss in the future.So the group do not recognised
deferred tax assets which came from the deductible loss of RMB 22,385,879.19 .
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
18. Other non-current assets
30 June 2017 31 December 2016
Medical reserve fund 44,905,302.61 43,605,016.10
Prepayment for project and equipment 12,056,482.37 27,155,022.78
Prepayment for a rental fee (Note) 19,281,120.66 17,021,937.21
Prepayment for apartments - 6,867,500.00
Investment deposit 60,000,000.00 -
136,242,905.64 94,649,476.09
Note: The prepayment for a rental fee which is over one year is recognized at other non-current
assets for the Group.
19. Short-term borrowings
30 June 2017 31 December 2016
Credit borrowings (Note a) 1,522,372,886.70 1,276,073,615.32
Guaranteed borrowings (Note b) 73,041,217.14 50,915,736.83
Discounted notes (Note c) 5,242,378.62 154,468,694.89
Pledged borrowings - 31,255,582.91
1,600,656,482.46 1,512,713,629.95
(a) As at 30 June 2017, credit borrowings of RMB1,192,142,348.83were guaranteed by the
Company and its subsidiaries (31 December 2016: credit borrowings of RMB832,710,742.83
were guaranteed by the Company and its subsidiaries.).
(b) As at 30 June 2017, guaranteed borrowings of RMB73,041,217.14 (31 December 2016:
RMB50,915,736.83) were guaranteed by Sinopharm Group.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
(c) As at 30 June 2017, commercial acceptance bills that were discounted but not decognized
amounted to RMB5,242,378.62 (2016: RMB154,468,694.89).
(d) As at 30 June 2017, the annual interest rate for the above borrowings was 4.22% (31
December 2016: 4.13%).
(e) As at 30 June 2017 and at 31 December 2016, there were no short-term borrowings of the
group that were overdue but not yet paid.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
20. Notes payable
30 June 2017 31 December 2016
Commercial acceptance notes 79,649,424.54 117,104,256.84
Bank acceptance notes 2,108,395,088.42 2,289,538,326.02
2,188,044,512.96 2,406,642,582.86
21. Accounts payable
30 June 2017 31 December 2016
Trade payables 7,374,938,495.12 6,701,558,514.10
At 30 June 2017, the total amount of accounts payable aged over one year was
RMB279,540,793.92(31 December 2016: RMB263,362,685.91 ), and the payment has not yet been
cleared.
22. Advances from customers
30 June 2017 31 December 2016
Sales received in advance 167,151,483.39 163,450,365.92
At 30 June 2017, the total amount of accounts payable aged over one year was
RMB9,345,822.77(31 December 2016: RMB10,366,456.25 ).
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
23. Employee benefits payable
At beginning of At end of the
2017 the year Increase Decrease year
Short-term employee
benefits (a) 191,157,671.41 747,272,197.36 (814,261,819.14) 124,168,049.63
Post-employment
benefits (defined
contribution plan)(b) 2,686,932.17 75,860,822.60 (68,630,363.54) 9,917,391.23
Termination benefits (c) 1,293,476.27 630,209.04 (558,462.75) 1,365,222.56
195,138,079.85 823,763,229.00 (883,450,645.43) 135,450,663.42
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
23. Employee benefits payable (Continued)
(a) Short-term employee benefits
At beginning of
2017 year Increase Decrease At end of year
Salaries, bonuses, allowances
and grants 175,148,646.81 654,303,444.47 (720,611,188.68) 108,840,902.60
Staff welfare 1,477,025.98 19,142,370.78 (20,267,467.38) 351,929.38
Social security contribution 1,570,365.14 36,096,439.55 (35,393,659.61) 2,273,145.08
Incl: Medical insurance 1,329,989.27 31,741,459.74 (31,673,756.99) 1,397,692.02
Work injury insurance 20,708.23 1,828,368.53 (1,750,927.66) 98,149.10
Maternity insurance 219,667.64 2,526,611.28 (1,968,974.96) 777,303.96
Housing funds 327,217.21 25,018,429.38 (24,588,659.00) 756,987.59
Labor union funds and
employee education funds 11,765,134.16 11,871,393.13 (12,460,698.60) 11,175,828.69
Other short-term benefits 869,282.11 840,120.05 (940,145.87) 769,256.29
191,157,671.41 747,272,197.36 (814,261,819.14) 124,168,049.63
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
23. Employee benefits payable (Continued)
(b) Defined contribution plan
At beginning of
2017 year Increase Decrease At end of year
Basic pension
insurance 619,514.34 72,149,465.49 (66,287,370.91) 6,481,608.92
Contribution to
pension fund 1,961,232.61 1,011,324.60 (25,464.62) 2,947,092.59
Unemployment
insurance 106,185.22 2,700,032.51 (2,317,528.01) 488,689.72
2,686,932.17 75,860,822.60 (68,630,363.54) 9,917,391.23
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
23. Employee benefits payable (Continued)
(c) Termination benefits
At beginning of
2017 year At end of year
Retirement
benefits payable
– within 1 year
(Note V(35)) 1,093,992.97 1,206,035.84
Other termination
benefits (i) 199,483.30 159,186.72
1,293,476.27 1,365,222.56
(i) The Group provided other termination benefits for severing labor relations of RMB117,149.03,
as at 30 June 2017. (2016: Other termination benefits for severing labor relations of RMB
RMB960,188.89).
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
24. Tax payable
30 June 2017 31 December 2016
Corporate Income taxes 90,524,245.18 90,177,731.06
Value-added tax 45,688,581.72 61,767,738.60
Land appreciation tax - 6,600,717.72
Stamp duty 2,445,433.61 5,449,224.41
Individual income tax payable 9,126,838.06 5,028,775.01
Water conservancy fund payable 8,393,653.54 4,880,965.03
City maintenance and construction surtax 4,427,834.30 4,844,305.96
Educational surcharge payable 3,266,457.23 3,499,732.78
Property tax 764,022.69 1,102,254.64
Land use tax payable 227,270.73 341,494.13
Others 7,025,781.26 3,350,778.18
171,890,118.32 187,043,717.52
25. Interest payable
30 June 2017 31 December 2016
Interest payable
- interest on short-term borrowings 5,845,355.20 6,918,661.52
- interest on long-term borrowings 35,440.27 37,801.50
5,880,795.47 6,956,463.02
26. Dividend payable
30 June 2017 31 December 2016
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Shanghai Fosun Pharmaceutical (Group) Co., Ltd. 4,835,511.58 4,835,511.58
Haiping Qiao 2,094,049.25 2,094,049.25
Zhenfang Zhang 1,389,639.31 1,389,639.31
Meiluo Pharmaceutical Co., Ltd. 164,170.07 164,170.07
Xiaobing Zhang 553,594.01 -
9,036,964.22 8,483,370.21
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
27. Other payables
30 June 2017 31 December 2016
Payables arising from acquisition of
subsidiaries 171,808,258.00 273,914,900.00
Payables for factoring programs 250,456,844.49 146,008,376.21
Payables for construction in progress and
equipment 130,265,643.39 99,860,228.96
Accrued selling and distribution expenses 99,225,575.59 82,576,148.19
Deposit 72,002,429.94 56,640,346.01
Payables to related parties 20,388,724.72 33,804,087.79
Payables for rentals 18,857,005.97 25,866,767.64
Payables to individuals 29,488,195.33 19,297,062.31
Temparary loan 15,800,000.00 19,230,000.00
Collection of others 32,717,129.91 16,980,734.50
Others 62,526,839.60 143,015,259.73
903,536,646.94 917,193,911.34
At 30 June 2017, other payables due within 1 year amounted to RMB 230,290,495.14(31 December
2016: RMB 123,866,395.59 ). It is mainly consisted of construction cost payable, company borrowings
payable, deposits and etc.
28. Non-current liabilities due within 1 year
30 June 2017 31 December 2016
Long-term borrowings due within 1 year - 31,600,000.00
Finance lease payables 5,038,700.43 4,811,339.96
5,038,700.43 36,411,339.96
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
29. Other current liabilities
30 June 2017 31 December 2016
Output VAT to be recognized 76,143.06 123,294.77
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
30. Long-term borrowings
30 June 2017 31 December 2016
Credit borrowings 31,600,000.00 -
Entrusted borrowings (a) - -
31,600,000.00 -
(a) At 30 June 2017, the entrusted borrowings of RMB31,600,000.00 were provided by Sinopharm Group
through Group Financial Co.
At 30 June 2017, the annual interest rate of above-mentioned borrowings was 4.04% (31 December
2016: 4.82%).
31. Long-term payables
30 June 2017 31 December 2016
Finance lease payables 17,143,597.49 19,427,938.30
Less: due within one year (5,038,700.43) (4,811,339.96)
12,104,897.06 14,616,598.34
32. Payable for specific projects
2017
At beginning of year Increase Decrease At end of year
Special funds granted by
government 800,000.00 - - 800,000.00
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
33. Deferred income
2017 Opening balance Increase Decrease Closing balance
Government grants 101,563,380.85 (2,386,979.73) 99,176,401.12
Promotion Rewards Program 22,390,081.96 3,418,345.56 (3,038,375.29) 22,770,052.23
123,953,462.81 3,418,345.56 (5,425,355.02) 121,946,453.35
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
33. Deferred income (Continued)
As at 30 June 2017, deferred income from government grants are as follow:
Government grants Opening Addition in Amount included in Disposal of Closing balance Asset related/
program balance the year non-operating subsidiaries income related
income in the year
Resettlement
Compensation (i) 80,952,258.29 - (1,349,204.28) - 79,603,054.01 Asset related
Guangxi Logistics Project 7,446,239.38 - (248,203.20) - 7,198,036.18 Asset related
Logistics standardization
project 3,907,506.23 - (273,123.42) - 3,634,382.81 Asset related
A comprehensive
experimental modern
service industry
subsidies 2,100,000.00 - (150,000.00) - 1,950,000.00 Asset related
Shared Logistics Center
(completed) 289,659.15 - (9,400.20) - 280,258.95 Asset related
Economic reward of
Sinopharm Guangzhou 2,950,437.77 - (265,108.43) - 2,685,329.34 Asset related
Special funds for industry
transformation and
upgrading of special
funds of integration
project 1,570,000.00 - - 1,570,000.00 Asset related
Special funds for the
construction of R&D
institutions in
Guangzhou 1,000,000.00 - - 1,000,000.00 Asset related
Asset/income
Other projects 1,347,280.03 - (91,940.20) - 1,255,339.83 related
101,563,380.85 - (2,386,979.73) 99,176,401.12
Due to the implementation of urban planning for old town reconstruction in Nanning, the operating center
of Guangxi Logistics which was located in Longteng Road District, Nanning City, was to be
reconstructed in another place. According to the agreement signed between Guangxi Logistics and the
real estate developer, Guangxi Logistics would obtain a compensation of RMB120,250,000.00, including
cash of RMB50,000,000.00 and property in constructing equaling a value of RMB70,250,000.00. Cash
compensation of RMB 50,000,000.00 was received in May 2012. In year 2015, construction properties
with a value of RMB70,250,000.00 were built and delivered, and had been recognized as investment
properties (Note V (11)).
The compensation relating the capital expenditure in the reconstruction of the new logistic center in
another place, amounting to RMB93.32 million was recognized as deferred revenue, and would be
amortized and recognized in the income statement within the expected useful lives using the straight
line method (Note V(49)), and the other cash compensation, which amount approximates to RMB26.93
million, was recognized in the income statement in 2012.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
34. Long-term employee benefits payable
30 June 2017 31 December 2016
Early retirement benefits payable 3,285,035.73 2,816,592.86
Less: Retirement benefits payable –
(1,206,035.84) (1,093,992.97)
within 1 year (Note V (24)(c))
2,078,999.89 1,722,599.89
35. Other non-current liabilities
30 June 2017 31 December 2016
Governmental medical reserve
funds 45,427,343.31 45,427,343.31
Certain medical reserves funds were received by the Group from the PRC government and local
government for purchasing medical products (including medicines) required to respond to serious
disasters, epidemics and other emergencies.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
36. Share capital
30 June 2017 31 December 2016
Listed shares without restriction of trading:
-A shares, listed 307,744,355.00 233,261,812.00
-B shares, listed 54,885,600.00 54,885,600.00
Listed shares with restriction of trading:
-State owned legal person shares 60,380,743 74,482,543.00
-Private Company owned legal person
5,114,297.00 -
shares
-Natural person shares 1,988.00 1,988.00
428,126,983.00 362,631,943.00
37. Capital surplus
2017 At beginning of year Increase Decrease At end of year
Share premium (a) 2,118,174,787.27 - - 2,118,174,787.27
Others (d) 1,034,543,237.65 13,987.58 (1,200,000.00) 1,033,357,225.23
3,152,718,024.92 13,987.58 (1,200,000.00) 3,151,532,012.50
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
38. Other equity instruments
At beginning of year Increase Decrease At end of year
Shares Amounts Shares Amounts Shares Amounts Shares Amounts
Unlisted 65,495,040.00 65,495,040.00 - - (65,495,040.00 ) 65,495,040.00 - -
shares
39. Surplus reserve
30 June 2017 31 December 2016
Surplus reserve 181,315,971.50 181,315,971.50
40. Retained earnings
30 June 2017 31 December 2016
Retained earnings at the end of the prior year 4,689,189,642.51 3,045,551,246.71
A business combination involving enterprises under
common control 1,076,241.59 592,834,676.01
Retained earnings at beginning of year after
retrospective adjustment and restatement 4,690,265,884.10 3,638,385,922.72
Add: Net profit attributable to the parent 556,125,318.19 1,186,539,201.93
Deduct: Ordinary share cash dividends payable (141,835,498.40) (134,659,240.55)
Others(a) (1,075,583.99) -
Retained earnings at end of year 5,103,480,119.90 4,690,265,884.10
(a) On 10 March 2017, the Company acquired 100% equity interest of Sinopharm Lerentang
Shijiazhuang Pharmaceutical Co., Ltd. (“Sinopharm Lerentang”) from Sinopharm Le -Ren-Tang
Medicine Co., Ltd. for RMB3,792,639.98 to constitute business combination involving enterprises
under common control and retained earning decreased by RMB1,076,241.59.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
41. Operating revenue and cost
For the six months ended For the six months ended
30 June 2017 30 June 2016
Revenue of main operations 20,372,097,755.35 20,423,590,439.55
Other operating income 152,709,914.22 138,811,608.27
20,524,807,669.57 20,562,402,047.82
For the six months ended For the six months ended
30 June 2017 30 June 2016
Cost of main operations 18,352,591,276.82 18,231,366,449.67
Other operating expenses 11,443,174.01 15,523,614.02
18,364,034,450.83 18,246,890,063.69
42. Tax and surcharges
For the six month ended For the six month ended
30 June 30 June
2017 2016
City maintenance and construction tax 24,931,171.70 26,057,977.33
Educational surcharge 18,243,233.02 18,739,158.19
Stamp duty 14,569,034.12 3,538,047.91
Property tax 3,345,273.43 846,920.53
Business tax - 4,509,210.19
Water conservancy fund 163,301.89 1,893,324.60
Land tax 172,937.56 444,007.52
Vehicle and vessel use tax 98,180.93 24,284.97
Others 1,662,488.21 1,793,954.38
63,185,620.86 57,846,885.62
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
43. Selling expenses
For the six month ended For the six month ended 30 June
30 June 2017 2016
Employees payroll and welfare benefits 582,798,944.53 547,003,567.49
Rental expenses 285,053,247.11 247,600,562.35
Transportation charges 29,416,679.32 45,064,185.12
Promotion and marketing expenses 16,881,877.36 13,803,639.71
Storage expenses 23,155,581.32 26,220,502.83
Depreciation expenses 21,860,957.80 17,367,421.52
Office allowances 15,153,489.34 16,859,404.59
Entertainment expenses 11,158,406.02 13,239,897.33
Travel allowances 3,425,411.69 8,877,501.94
Conference expenses 2,800,521.29 3,499,137.62
Market development fees 250,938.26 13,836,356.13
Others 118,490,884.13 113,128,923.52
1,110,446,938.17 1,066,501,100.15
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
44. Administrative expenses
For the six month ended For the six month ended
30 June 2017 30 June 2016
Employees payroll and welfare benefits 237,320,475.09 265,004,563.14
Research and development expenses - 25,988,200.63
Depreciation expenses 14,130,107.15 24,142,228.81
Agency service fees -
Rental expenses 17,030,347.32 16,692,169.51
Office allowances 13,498,455.92 13,196,730.02
Amortization of intangible assets 7,873,617.35 10,339,232.85
Taxations 4,087,147.80 11,172,658.42
Entertainment expenses 5,878,571.05 5,115,630.99
Travel allowances 3,538,432.83 3,741,536.93
Conference expenses 718,993.59 1,033,266.87
Utilities 3,714,057.62 4,324,952.70
Amortization of long-term deferred
expenses 4,478,646.05 3,503,748.24
Vehicle management expenses 4,100,271.65 4,156,926.61
Promotion and marketing expenses - -
Repairing fees 1,665,071.14 1,990,453.51
Others 22,601,856.55 40,942,374.18
340,636,051.11 431,344,673.41
45. Finance costs
For the six month ended For the six month ended
30 June 2017 30 June 2016
Interest expenses 59,569,071.77 65,329,780.98
Less: Interest income (17,460,371.42) (10,872,574.52)
Cash discount (13,655,314.59) (19,385,115.98)
Exchanges loss/(gain) (283,622.22) 70,037.19
Others 16,329,015.22 15,579,275.54
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
44,498,778.76 50,721,403.21
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
46. Impairment loss
For the six month ended For the six month ended
30 June 2017 30 June 2016
Inventories provision (836,741.23) 5,268,863.04
Bad debt allowance 933,498.39 (4,118,289.41)
Impairment in fixed assets - -
Impairment in goodwill - -
96,757.16 1,150,573.63
47. Investment income
For the six month ended For the six month ended
30 June 2017 30 June 2016
Investment income from long-term equity investments
146,775,417.29 27,607,440.12
under the equity method
Investment income from disposal of subsidiaries - 86,674,065.35
Gain from remeasurement of fair value of remaining
equity interest upon loss of control - 35,080,116.91
Investment income from available-for-sale financial -
50,000.00
assets
Remeasurement loss of fair value when achieved
(99,377.39) -
subsidary in stages
146,726,039.90 149,361,622.38
48. Miscellaneous incomes
For the six month ended For the six month ended
30 June 2017 30 June 2016
Government grants related to 7,958,493.67 -
daily activities
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
49. Non-operating income
For the six month ended For the six month ended
30 June 2017 30 June 2016
Government grants (Note a) 1,349,204.28 8,256,111.78
Gain on disposal of non-current assets 579,658.49 4,017,585.64
Incl: Gain on disposal of fixed assets 577,424.04 4,012,613.89
Gain from writing off the unnecessary payment 2,249,156.84 1,000,000.00
Gain arising from donation -
Others 2,456,418.01 4,484,131.87
6,634,437.62 17,757,829.29
All non-operating income was wholly classified as non-recurring profit or loss for the six month
ended.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
49. Non-operating income (Continued)
(a) Government grants
For the six month For the six month Note
ended ended
30 June 2017 30 June 2016
- Government grants related to assets
Resettlement Compensation of Guangxi Transfer from the
Logistics amortization of deferred
1,349,204.28 1,353,604.28 income
Transfer from other deferred amortization Transfer from the
income amortization of deferred
- 5,732,580.73 income
1,349,204.28 7,086,185.01
- Government grants related to income
Tax return - 200,000.00
Others Subsidy for
- 969,926.77 contribution, etc.
- 1,169,926.77
1,349,204.28 8,256,111.78
50. Non-operating expenses
For the six month ended For the six month ended
30 June 2017 30 June 2016
Penalty expenses 1,925,449.66 234,406.45
Losses on disposal of non-current assets 377,352.06 591,341.17
Incl: Losses on disposal of fixed assets 307,374.47 569,803.03
Donation expenses 59,900.00 -
Others 1,290,495.50 814,790.71
3,653,197.22 1,640,538.33
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Non-operating cost was wholly classified as non-recurring profit or loss for the six month ended
30 June 2017.
51. Income taxes
For the six month ended For the six month ended
30 June 2017 30 June 2016
Current income tax 162,853,639.57 156,998,560.59
Deferred income tax (2,812,531.94) 4,785,567.17
160,041,107.63 161,784,127.76
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
51. Income taxes (Continued)
The reconciliation from income tax calculated based on applicable tax rates and total profit
presented in the consolidated financial statements to the income taxes is listed below:
For the six month ended
30 June 2017
Total profit 759,574,846.65
Income taxes calculated at applicable tax rates 189,893,711.66
Lower tax rates enacted by local authorities (10,864,678.73)
Income not subject to tax (35,606,523.97)
Expenses not deductible for tax 4,005,987.60
Tax losses not recognized 2,152,362.42
Utilization of previously unrecognized tax losses -
Additional deduction for development cost 11,437,117.34
Gain on deferred tax of beginning of the year from the
changes of tax rate
Adjustment of income tax expense of previous year (976,868.69)
Income tax 160,041,107.63
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
52. Notes to items in the cash flow statement
(a) Cash receipts related to other operating activities
2017 2016
Government grants except tax return 1,349,204.28 1,694,661.05
Rent income 28,140,527.98 24,364,072.97
Operational restricted bank deposits received 4,067,748.35 6,338,067.32
Interest income 17,412,415.01 10,654,439.57
Others 47,052,933.05 95,776,862.68
98,022,828.67 138,828,103.59
(b) Cash paid relating to other operating activities
2017 2016
Rental expenses 302,083,594.43 274,949,115.95
Entertainment expenses 17,036,977.07 18,672,440.52
Shipping expenses 29,416,679.32 45,064,185.12
Travel expenses 6,963,844.52 12,619,038.87
Storage expenses 23,155,581.32 26,220,502.83
Office expenses 28,651,945.26 27,471,574.82
Advertising expenses 16,881,877.36 17,799,105.33
Others 222,065,660.72 222,758,813.28
646,256,160.00 645,554,776.72
(c) Cash received relating to other investing activities
2017 2016
Received funds pool money returned by
- 1,476,143,809.08
Sinopharm
Received deposits returned by Shyndec 75,259,200.00 -
Received Entrusted loan payments from
- 84,000,000.00
Zhijun Suzhou
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Others 11,768,140.19 3,200,415.00
87,027,340.19 1,563,344,224.08
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
52. Notes to items in cash flow statement (Continued)
(d) Cash paid relating to other investing activities
2017 2016
Deposit money in funds pool of Sinopharm - 1,179,277,272.40
Purchased of equity sincerity Margin - 20,000,000.00
Entrusted loan payments to Zhijun Suzhou 44,000,000.00 -
Others 26,175,078.90 5,690,544.72
70,175,078.90 1,204,967,817.12
(e) Cash received relating to other financing activities
2017 2016
Received borrowings from Sinopharm Group - 94,000,000.00
Received bank factoring money 59,676,813.84 67,788,435.41
Received security deposit of pledged borrowings 31,255,582.91 100,695,291.70
Others - 45,000,000.00
90,932,396.75 307,483,727.11
(f) Cash payments relating to other financing activities
2017 2016
Repayment of entrusted borrowings provided by
13,415,363.07 243,731,500.00
Sinopharm Group
Cash paid for acquisition of non-controlling interests 158,996,642.00 7,359,800.00
Others 6,579,569.60 4,719,443.79
178,991,574.67 255,810,743.79
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
53. Supplementary information of cash flow statement (Continued)
(a) Reconciliation of net profit to cash flows from operating activities
For the six month ended For the six month ended
30 June 2017 30 June 2016
Net profit 599,533,739.02 711,642,133.69
Adjustments: Provision for asset impairment 422,321.11 6,574,093.17
Depreciation of fixed assets and investment
35,222,304.68 70,509,167.81
properties
Amortization of intangible assets 12,273,709.34 10,127,735.19
Amortization of long-term prepaid expenses 31,374,523.14 24,932,947.50
Gains on disposal of fixed assets, and other
(202,306.43) (11,176,526.34)
non-current assets
Financial expenses 28,528,443.16 65,527,178.60
Investment income (146,726,039.90) (149,361,622.31)
Decrease/(increase) of deferred tax assets (1,641,139.11) 41,900,688.25
Decrease of deferred tax liabilities (2,666,680.74) (3,992,100.48)
Decrease/(increase) of inventory 113,733,297.36 86,444,370.26
(Increase)/decrease in operating receivables
(1,127,697,064.94) (939,208,797.81)
items
Increase/(decrease) in operating payables
596,195,867.27 760,398,329.25
items
Others 89,986,457.44 155,265,336.56
Net cash generated from operating activities 228,337,431.40 829,582,933.34
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
53. Supplementary information of cashflow statement (Continued)
(c) Movement of cash
For the six month ended For the six month ended
30 June 2017 30 June 2016
Cash at end of year 3,024,190,631.97 3,049,221,736.97
Less: cash at beginning of year (3,150,915,425.49) (2,164,444,441.33)
Net increase in cash (126,724,793.52) 884,777,295.64
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
53. Supplementary information of cashflow statement (Continued)
(d) Acquisition of subsidiaries and operating units
For the six month ended
30 June 2017
Cash and cash equivalents paid for acquisitions of
subsidiaries and other business units 16,640,000.00 -
Incl: Sinopharm Zhuhai 10,000,000.00 -
Maoming Yongsheng Medicines Co., Ltd. -
（Maoming Yongsheng） 6,640,000.00
Less: Cash held by subsidiaries at the acquisition
date 1,933,210.44
Incl: Sinopharm Zhuhai 1,624,035.74 -
Maoming Yongsheng 309,174.70 -
Net cash outflow on acquisition of the subsidiaries
and business units 14,706,789.56
(e) Cash
30 June 2017 31 December 2016
Cash on hand 2,352,467.38 6,164,382.85
Bank deposits on demand 3,021,838,164.59 3,144,751,042.64
Cash 3,024,190,631.97 3,150,915,425.49
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
54. Assets under restricted ownership or right to use
2017 Reasons
Deposits of bank acceptance notes,
depostis for letter of credit and
Cash and cash equivalents 337,138,215.47 deposits of pledged borrowings.
Notes receivable endorsed but not
due, notes receivable discounted but
Notes receivables 1,075,857,770.01 not due.
1,412,995,985.48
55. Foreign monetary items
30 June 2017
Original currency Exchange rate Equivalent to RMB
Short-term borrowings
US dollar 2,431,642.14 6.7744 16,472,916.49
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
VI. Changes in the scope of consolidation
1. Business combination not involving enterprises under common control
1.1 Acquired Sinopharm Zhuhai.
On 3 March 2015, the Group acquired a 10% equity interest of Sinopharm Zhuhai.
In 2017, the Company acquired the rest 90% equity interest of Sinopharm Zhuhai. from Li Xiang
Jiang for RMB10,000,000 to constitute business combination involving enterprises not under
common control. The acquisition was completed on 10 January 2017and included in the
consolidation scope of the Company.
The 10% equity’s book value is RMB1,283,613.91, and the revalued value is RMB 1,113,720.00,
a remeasurement loss of fair value of RMB169,893.91 was recorded
The fair value and carrying amount of identifiable assets and liabilities and contingent liabilities
of Sinopharm Zhuhai on acquisition date are presented as follows:
31 January 2017 31 January 2017
Fair value Carrying amount
Cash and bank balances 1,624,035.74 1,624,035.74
Accounts receivable 45,089,047.61 45,089,047.61
Advances to suppliers 685,409.69 685,409.69
Inventories 7,168,900.86 7,168,900.86
Fixed assets 220,990.39 220,990.39
Deferred tax assets 80,569.45 80,569.45
Short-term borrowings 5,000,000.00 5,000,000.00
Accounts payable 40,668,336.31 40,668,336.31
Advance from customers 2,890.29 2,890.29
Employee benefits payable 432,562.41 432,562.41
Tax payables 385,477.18 385,477.18
Interest payable 19,717.04 19,717.04
Dividends payable 2,070,425.74 2,070,425.74
Net assets 6,289,544.77 6,289,544.77
Less: Non-controlling interests -
Net assets obtained 6,289,544.77
Consideration 10,362,740.00
Goodwill arising from acquisition 4,073,195.23
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
VI. Changes in scope of consolidation (Continued)
1.2 Acquired Maoming Yongsheng
On 31 May 2017, the Company acquired 100% equity interest of Maoming Yongsheng from Bai
Ganyin、Bai Fuyou and Lai Hongmei for RMB7,823,457.43 to constitute business combination
involving enterprises not under common control. The acquisition was completed on 31 May
2017and included in the consolidation scope of the Company.
The fair value and carrying amount of identifiable assets and liabilities and contingent liabilities
of Maoming Yongsheng on acquisition date are presented as follows:
31 January 2017 31 January 2017
Fair value Carrying amount
Cash and bank balances 309,174.70 309,174.70
Accounts receivable 24,212,454.90 24,212,454.90
Advances to suppliers 187,299.70 187,299.70
Inventories 4,591,053.97 4,591,053.97
Fixed assets 70,993.59 70,993.59
Deferred tax assets 275,185.44 275,185.44
Accounts payable 21,592,415.65 21,592,415.65
Employee benefits payable 1.49 1.49
Tax payables 230,287.73 230,287.73
Net assets 7,823,457.43 7,823,457.43
Less: Non-controlling interests -
Net assets obtained 7,823,457.43
Consideration 7,823,457.43
Goodwill arising from acquisition -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
VI. Changes in scope of consolidation (Continued)
2. Business combination involving enterprises under common control
On 10 March 2017, the Company acquired 100% equity interest of Sinopharm Lerentang
Shijiazhuang Pharmaceutical Co., Ltd. (“Sinopharm Lerentang”) from Sinopharm Le -Ren-Tang
Medicine Co., Ltd. for RMB3,792,639.98 to constitute business combination involving enterprises
under common control. The acquisition was completed on 10 March 2017and included in the
consolidation scope of the Company.
The carrying amounts of assets and liabilities of Sinopharm Lerentang at the
combination date and at the balance sheet date of the last accounting period are
presented as follows:
28 February 2017 31 December 2016
Cash and bank balances 4,903.95 5,999.95
Accounts receivable 3,785,780.34 3,785,780.34
Other current assets 1,955.69 1,955.69
3,792,639.98 3,793,735.98
Less: Non-controlling interests - -
Net assets obtained 3,792,639.98 3,793,735.98
3. Establishment of subsidiaries
30 June 2017 30 June 2017
Net assets Net revenue Remarks
GuoDa Drugstore Manzhouli Co.,
Ltd. 500,000.00 - Establishment
Sinopharm Holding Guangzhou
Medical Treatment Technology
Co., Ltd. 681,008.39 (318,991.61) Establishment
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
VII Interests in other entities
1． Interests in subsidiaries
(1) The composition of the Group:
Registered Shareholding
Principal
Place of Nature of capital Voting Ways of
Subsidiaries place of
incorporation business (RMB Direct Indirect proportion acquisition
business
0.000)
Sinopharm Guilin Guilin Guilin Commercial 1,000 - 100.00% 100.00% Establishment
Sinopharm Baise Baise Baise Commercial 1,000 - 100.00% 100.00% Establishment
Sinopharm Holding
Zhongshan Co.,
Ltd. (“Sinopharm
Zhongshan") Zhongshan Zhongshan Commercial 1,000 100.00% - 100.00% Establishment
Sinopharm Guigang Guigang Guigang Commercial 1,000 - 100.00% 100.00% Establishment
Sinopharm Beihai Beihai Beihai Commercial 500 - 100.00% 100.00% Establishment
Guangzhou Medical
Treatment Guangzhou Guangzhou Commercial 2,000 - 51.00% 51.00% Establishment
Business
Shenzhen Jianmin combinations
Pharmaceutical involving
Co., Ltd. entities under
(“Sinopharm common
Jianmin") Shenzhen Shenzhen Commercial 2,000 100.00% - 100.00% control
Sinopharm Holding
Shenzhen
Traditional & Business
Herbal Medicine combinations
Co., Ltd. involving
(“Sinopharm entities under
Traditional & common
Herbal Medicine") Shenzhen Shenzhen Commercial 1,500 100.00% - 100.00% control
Business
Sinopharm Holding combinations
Shenzhen involving
Logistics Co., Ltd. entities under
(“Shenzhen common
Logistics") Shenzhen Shenzhen Services 500 100.00% - 100.00% control
Business
combinations
Sinopharm Holding involving
Guangzhou Co., entities under
Ltd. (“Sinopharm common
Guangzhou") Guangzhou Guangzhou Commercial 153,000 100.00% - 100.00% control
Business
Sinopharm Holding combinations
Guangdong involving
Hengxing Co., entities under
Ltd. (“Sinopharm common
Hengxing") Guangzhou Guangzhou Commercial 5,000 100.00% - 100.00% control
Business
combinations
involving
entities under
common
Sinopharm Yulin Yulin Yulin Commercial 500 - 100.00% 100.00% control
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
VII Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Principal Registered Shareholding Voting
Place of Nature of
Subsidiaries place of capital(RM proportio Ways of acquisition
incorporation business
business B 0.000) Direct Indirect n
Business combinations
involving entities under
Sinopharm Liuzhou Liuzhou Liuzhou Commercial 2,053.06 51.00% - 51.00% common control
Guangdong Huixin Business combinations
Investment Co., Ltd. involving entities under
(“Huixin Investment”) Guangzhou Guangzhou Service 500 100.00% - 100.00% common control
Sinopharm Holding Foshan Business combinations
Co., Ltd. (“Sinopharm involving entities under
Foshan") Foshan Foshan Commercial 1,500 100.00% - 100.00% common control
Sinopharm Holding
Guangdong Yuexing Business combinations
Co., Ltd. (“Sinopharm involving entities under
Yuexing”) Guangzhou Guangzhou Commercial 10,000 100.00% - 100.00% common control
Sinopharm Holding
Guangdong Logistics Business combinations
Co., Ltd. (“Guangdong involving entities under
Logistic”) Guangzhou Guangzhou Service 1,000 100.00% - 100.00% common control
Business combinations
involving entities under
Sinopharm Guangxi Nanning Nanning Commercial 50,000 100.00% - 100.00% common control
Business combinations
involving entities under
Guangxi Logistic Nanning Nanning Service 710.07 - 100.00% 100.00% common control
Business combinations
involving entities under
Sinopharm Wuzhou Wuzhou Wuzhou Commercial 1,000 - 99.90% 99.90% common control
Sinopharm Holding
Dongguan Co., Ltd. Business combinations
(“Sinopharm involving entities not
Dongguan") Dongguan Dongguan Commercial 1,800 100.00% - 100.00% under common control
Sinopharm Holding Business combinations
Zhanjiang Co., Ltd. involving entities not
(“Sinopharm Zhanjiang") Zhanjiang Zhanjiang Commercial 7,000 100.00% - 100.00% under common control
Sinopharm Holding Yanfeng Business combinations
Co., Ltd. (“Sinopharm involving entities not
Yanfeng ") Shenzhen Shenzhen Commercial 3,000 51.00% - 51.00% under common control
Sinopharm Holding Meizhou Business combinations
Co., Ltd. (“Sinopharm involving entities not
Meizhou") Meizhou Meizhou Commercial 1,800 100.00% - 100.00% under common control
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
VII Interests in other entities (Continued)
1． Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Registered Shareholding
Voting
Principal place Place of Nature of capital
Subsidiaries proportio Ways of acquisition
of business incorporation business (RMB Direct Indirect n
0.000)
Sinopharm Holding
Huizhou Co., Business combinations
Ltd.("Sinophar involving entities not
m Huizhou") Huizhou Huizhou Commercial 1,800 100.00% - 100.00% under common control
Sinopharm Holding
Zhaoqing Co., Business combinations
Ltd.("Sinophar involving entities not
m Zhaoqing") Zhaoqing Zhaoqing Commercial 1,500 100.00% - 100.00% under common control
Sinopharm Holding
Jiangmeng
Renren Medical
Co., Business combinations
Ltd.(“Sinopharm involving entities not
Jiangmen”) Jiangmen Jiangmen Commercial 6,000 100.00% - 100.00% under common control
Sinopharm Holding
Shaoguan Co., Business combinations
Ltd.("Sinophar involving entities not
m Shaoguan") Shaoguan Shaoguan Commercial 360 70.00% - 70.00% under common control
Business combinations
involving entities not
Sinopharm Shantou Shantou Shantou Commercial 800 100.00% - 100.00% under common control
Foshan Nanhai Business combinations
Medicine Co., involving entities under
Ltd. Foshan Foshan Commercial 7,000 100.00% - 100.00% common control
Foshan Nanhai
Uptodate &
Special Business combinations
Medicines Co., involving entities under
Ltd. Foshan Foshan Commercial 4,000 - 100.00% 100.00% common control
Foshan Nanhai Business combinations
Medicine Co., involving entities under
Ltd. Foshan Foshan Commercial 4,000 - 100.00% 100.00% common control
Guangdong
Uptodate & Business combinations
Special involving entities under
Medicines Guangzhou Guangzhou Commercial 5,000 100.00% - 100.00% common control
Guangdong South
Pharmaceutical Business combinations
Foreign Trade involving entities under
Co., Ltd. Guangzhou Guangzhou Commercial 3,000 100.00% - 100.00% common control
Business combination
Sinopharm not involving enterprises
Zhuhai(i) Zhuhai Zhuahai Commercial 310 100.00% - 100.00% under common control
Business combination
Maoming not involving enterprises
Yongsheng(ii) Maoming Maoming Commercial 200 100.00% - 100.00% under common control
Sinopharm Holding
Guangzhou
Medical
Treatment
Technology Co.,
Ltd.(iii) Guangzhou Guangzhou Commercial 100 51% - 51% Establishment l
Sinopharm Holding
Guoda Business combinations
Pharmacy Co., involving entities under
Ltd. Shanghai Shanghai Commercial 101,000 100.00% - 100.00% common control
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Sinopharm Holding
Guoda
Pharmacy
Chain Store Business combinations
Shanghai Co., involving entities under
Ltd. Shanghai Shanghai Commercial 3,000 - 100.00% 100.00% common control
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
VII. Interests in other entities (Continued)
1． Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued)
Subsidiaries Principal Place of Nature of Registered Shareholding Voting Ways of acquisition
place of incorporation business capital proportion
business (RMB‘0,000 Direct Indirect
)
Beijing Guoda Business combinations
Pharmacy Chain involving entities under
Store Co., Ltd. Beijing Beijing Commercial 1,000 - 100.00% 100.00% common control
Tianjin Guoda Business combinations
Pharmacy Chain involving entities under
Store Co., Ltd. Tianjin Tianjin Commercial 1,000 - 80.00% 80.00% common control
Guangxi Guoda
Pharmacy Business combinations
Consulting Chain involving entities under
Store Co., Ltd. Nanning Nanning Commercial 300 - 100.00% 100.00% common control
Sinopharm Holding
Guoda Pharmacy Business combinations
Guangdong Co., involving entities under
Ltd. Shenzhen Shenzhen Commercial 5,000 - 100.00% 100.00% common control
Sinopharm Guoda
Pharmacy Business combinations
Guangxi Chain involving entities under
Co., Ltd. Liuzhou Liuzhou Commercial 200 - 100.00% 100.00% common control
Zhejiang Guoda Business combinations
Pharmacy Co., involving entities under
Ltd. Hangzhou Hangzhou Commercial 1,500 - 100.00% 100.00% common control
Sinopharm Holding
Guoda Yangzhou
Dadesheng Business combinations
Pharmacy Chain involving entities under
Store Co., Ltd. Yangzhou Yangzhou Commercial 4,400 - 93.68% 93.68% common control
Guoda Shenyang Business combinations
Tianyitang involving entities under
Pharmacy Chain Shenyang Shenyang Commercial 1,000 - 51.00% 51.00% common control
Ningxia Guoda Business combinations
Pharmacy Chain involving entities under
Store Co., Ltd. Yinchuan Yinchuan Commercial 7,000 - 70.00% 70.00% common control
Sinopharm Holding
Guoda Nanjing Business combinations
Pharmacy Chain involving entities under
Store Co., Ltd. Nanjing Nanjing Commercial 800 - 60.00% 60.00% common control
Sinopharm Holding
Guoda Shandong Business combinations
Pharmacy Chain involving entities under
Store Co., Ltd. Linyi Linyi Commercial 2,900 - 55.00% 55.00% common control
Sinopharm Holding
Guoda Shenyang Business combinations
Pharmacy Chain involving entities under
Store Co., Ltd. Shenyang Shenyang Commercial 800 - 51.00% 51.00% common control
Fujian Guoda Business combinations
Pharmacy Chain involving entities under
Store Co., Ltd. Shamen Shamen Commercial 3,750 - 100.00% 100.00% common control
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
VII. Interests in other entities (Continued)
1． Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued)
Subsidiaries Principal Place of Nature of Registered Shareholding Voting Ways of acquisition
place of incorporation business capital proportion
business (RMB‘0,000
Direct Indirect
)
Business combinations
Anhui Guoda Pharmacy involving entities under
Chain Store Co., Ltd. Hefei Hefei Commercial 1,000 - 60.00% 60.00% common control
Quanzhou Guoda Business combinations
Pharmacy Chain Store involving entities under
Co., Ltd. Quanzhou Quanzhou Commercial 2,000 - 51.00% 51.00% common control
Shanxi Guoda Wanmin Business combinations
Pharmacy Chain Store involving entities under
Co., Ltd. Taiyuan Taiyuan Commercial 2,000 - 85.00% 85.00% common control
Sinopharm Holding Hunan
Guoda Minshengtang Business combinations
Pharmacy Chain Co., involving entities under
Ltd. Hengyang Hengyang Commercial 2,000 - 51.00% 51.00% common control
Liyang Guoda People Business combinations
Pharmacy Chain Store involving entities under
Co., Ltd. Liyang Liyang Commercial 2,500 - 80.00% 80.00% common control
Sinopharm Holding Guoda Business combinations
Henan Pharmacy Chain Pingdingsh involving entities under
Store Co., Ltd. an Pingdingshan Commercial 1,500 - 60.00% 60.00% common control
Sinopharm Holding Guoda Business combinations
Neimenggu Pharmacy involving entities under
Chain Store Co., Ltd. Hohhot Hohhot Commercial 2,000 - 96.70% 96.70% common control
Sinopharm Hebei Business combinations
Lerentang Pharmacy Shijiazhuan involving entities under
Chain Store Co., Ltd. g Shijiazhuang Commercial 3,500 - 60.00% 60.00% common control
Sinopharm Guoda Business combinations
Pharmacy Jiangmen involving entities under
Chain Co., Ltd. Jiangmen Jiangmen Commercial 2,400 - 65.00% 65.00% common control
Sinopharm Holding Guoda
Shanxi Yiyuan Business combinations
Pharmacy Chain Store involving entities under
Co., Ltd. Taiyuan Taiyuan Commercial 1,000 - 80.00% 80.00% common control
Sinopharm Holding Xinjiang
New & Special Business combinations
Medicines Chain Store involving entities under
Co., Ltd. Urumqi Urumqi Commercial 612.24 - 51.00% 51.00% common control
Sinopharm Holding Guoda Business combinations
ForMe Medicines involving entities under
(Shanghai) Co., Ltd. Shanghai Shanghai Commercial 6,655 - 97.00% 97.00% common control
Sinopharm Holding Guoda
ForMe Pharmacy Chain
Store Co., Ltd.
(Formerly “Shanghai
ForMe YiXing Business combinations
Pharmacy Chain Store involving entities under
Co., Ltd.”) Shanghai Shanghai Commercial 5,000 - 99.76% 99.76% common control
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
VII. Interests in other entities (Continued)
1． Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued)
Subsidiaries Principal Place of Nature of Registered Shareholding Voting Ways of acquisition
place of incorporati business capital proportion
business on (RMB‘0,00 Direct Indirect
0)
Beijing Golden
Elephant Pharmacy Business combinations
Medicine Chain involving entities under
Company Limited Beijing Beijing Commercial 4,222.22 - 53.13% 53.13% common control
Shanxi Tongfeng Business combinations
Pharmacy Logistics involving entities under
Co., Ltd. Taiyuan Taiyuan Commercial 500 - 100.00% 100.00% common control
Datong Guoda
Wanmin Pharmacy Business combinations
Chain Store Co., involving entities under
Ltd. Datong Datong Commercial 615 - 100.00% 100.00% common control
Changzhi Guoda
Wanmin Pharmacy Business combinations
Chain Store Co., involving entities under
Ltd. Changzhi Changzhi Commercial 320 - 51.00% 51.00% common control
Shanxi Guoda Wanmin Business combinations
Clinic Management Medical involving entities under
Chain Co., Ltd. Taiyuan Taiyuan services 120 - 100.00% 100.00% common control
Shanghai Guoda Business combinations
Shanghong Qibao involving entities under
Pharmacy Co., Ltd. Shanghai Shanghai Commercial 100 - 51.00% 51.00% common control
Zhejiang Intlmedicine Business combinations
Pharmacy involving entities under
Dongshan Co., Ltd. Hangzhou Hangzhou Commercial 50 - 51.00% 51.00% common control
Shanghai Guoda Business combinations
Dongsheng involving entities under
Pharmacy Co., Ltd. Shanghai Shanghai Commercial 50 - 100.00% 100.00% common control
Sinopharm Guoda
Drug Store Business combinations
(Shenzhen) Chain involving entities under
Co., Ltd. Shenzhen Shenzhen Commercial 1,080 - 100.00% 100.00% common control
Sinopharm Holding
Guoda Pharmacy Business combinations
Guangzhou Chain involving entities under
Co., Ltd. Guangzhou Guangzhou Commercial 200 - 100.00% 100.00% common control
Shanghai Guoda Business combinations
Changxin involving entities under
Pharmacy Co., Ltd. Shanghai Shanghai Commercial 30 - 100.00% 100.00% common control
Shanghai Guodong
Chinese Traditional Business combinations
Medicine Clinic Co., involving entities under
Ltd. Shanghai Shanghai Medical clinic 20 - 100.00% 100.00% common control
Shanghai Guoda
Dongxin Pharmacy Business combinations
Chain Store Co., involving entities under
Ltd. Shanghai Shanghai Commercial 30 - 100.00% 100.00% common control
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
VII. Interests in other entities (Continued)
1． Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued)
Subsidiaries Principal place Place of Nature of Registered Shareholding Voting Ways of acquisition
of business incorporation business capital(RMB proportion
‘0,000) Direct Indirect
Business
Shanghai Yutaitang combinations
Chinese Traditional involving entities
Medicine Clinic under common
Co., Ltd. Shanghai Shanghai Commercial 100 - 100.00% 100.00% control
Beijing Yangqiao Business
Rongzhi Golden combinations
Elephant involving entities
Pharmacy under common
Company Limited Beijing Beijing Commercial 126 - 50.79% 50.79% control
Business
combinations
Sanhe Liyang Golden involving entities
Elephant under common
Pharmacy Co., Ltd. Langfang Langfang Commercial 1 - 100.00% 100.00% control
Business
Xiaoyi Guoda Wanmin combinations
Baicaotang involving entities
Pharmacy Chain under common
Store Co., Ltd. Xiaoyi Xiaoyi Commercial 6,22.22 - 70.00% 70.00% control
Business
combinations
Sinopharm Holding involving entities
Guoda Pharmacy under common
Hulun Buir Co., Ltd. Hulun Buir Hulun Buir Commercial 300 - 51.00% 51.00% control
Business
Shijiazhuang combinations
Lerentang Yikang involving entities
Pharmacy Chain under common
Store Co., Ltd. Shijiazhuang Shijiazhuang Commercial 500 - 100.00% 100.00% control
Business
Sinopharm Tangshan combinations
Lerentang involving entities
Pharmacy Chain under common
Store Co., Ltd. Tangshan Tangshan Commercial 300 - 100.00% 100.00% control
Business
combinations
involving entities
Shanghai ForMe under common
Pharmacy Co., Ltd. Shanghai Shanghai Commercial 25 - 100.00% 100.00% control
Sinopharm Holding
Ulanqab Co., Ltd. Ulanqab Ulanqab Commercial 500 - 60.00% 60.00% Establishment
Business
Sinopharm Guoda combinations
Pharmacy involving entities
Qinhuangdao under common
Chain Co., Ltd. Qinhuangdao Qinhuangdao Commercial 300 - 51.00% 51.00% control
Taishan Sinopharm Business
Holding Guoda combinations
Qunkang involving entities
Pharmacy Chain under common
Store Co., Ltd. Taishan Taishan Commercial 990 - 70.00% 70.00% control
Business
Beijing Golden combinations
Elephant Fuxing involving entities
Technology Co., under common
Ltd. Beijing Beijing Commercial 100 - 80.00% 80.00% control
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
mbinations involving
Sinopharm entities under
Lerentang(iV) Shijiazhuang Shijiazhuang Commercia 200 - 100% 100% common control
GuoDa Drugstore
Manzhouli Co.,
Ltd.(v) Manzhouli Manzhouli Commercial 50 51% 51% Establishment
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
VII. Interests in other entities (Continued)
1． Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued)
i． In February 2015, the Group acquired a 10% equity interest of Sinopharm Zhuhai.
In 2017, the Company acquired the rest 90% equity interest of Sinopharm Zhuhai. from Li
Xiang Jiang for RMB10,000,000 to constitute business combination involving enterprises not
under common control. The acquisition was completed on 10 January 2017and included in the
consolidation scope of the Company.
ii. On 31 May 2017, the Company acquired 100% equity interest of Maoming Yongsheng from
Bai Ganyin 、 Bai Fuyou and Lai Hongmei for RMB7,823,457.43 to constitute business
combination involving enterprises not under common control. The acquisition was completed
on 31 May 2017 and included in the consolidation scope of the Company.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
VII. Interests in other entities (Continued)
2. Interests in associates
Principal place of Place of Nature of
Shareholding(%)
business incorporation business Accounting
Direct Indirect
Associate
s
Shenzhen Main
Luck
Pharmaceutical
Co., Ltd. ("Main
Luck Manufacturin
Pharmaceutical ") Shenzhen Shenzhen g 35.19 - Equity
Sinopharm Holding
Zhuhai Co., Ltd.
("Sinopharm
Zhuhai") Zhuhai Zhuhai Commercial 10.00 - Equity
Sinopharm Group
Zhijun(Suzhou)
Pharmaceutical Manufacturin
Co., Ltd. Suzhou Suzhou g 33.00 - Equity
Sinopharm Group
Zhijun(Shenzhen)
Pharmaceutical Co., Manufacturin
Ltd. Shenzhen Shenzhen g 49.00 - Equity
Shenzhen Zhijun
Pharmaceutical
Trade Co., Ltd. Shenzhen Shenzhen Commercial 49.00 - Equity
Sinopharm Group
Zhijun(Shenzhen)
Pingshan
Pharmaceutical Co., Manufacturin
Ltd. Shenzhen Shenzhen g 49.00 - Equity
Shanghai Shyndec
Pharmaceutical
Co., Ltd.
(“Shyndec Manufacturin
Pharmaceutical”) Shanghai Shanghai g 15.56 - Equity
Shanghai Beiyi
Guoda
pharmaceutical
Co. Ltd. Shanghai Shanghai Commercial - 26.00 Equity
Shanghai Liyi
Pharmacy Co., Ltd Shanghai Shanghai Commercial - 35.00 Equity
Sinopharm Jienuo
Medical
Treatment Service
Guangdong Co., Guangzho Guangzho
Ltd. (g) u u Commercial - 29.00 Equity
Dongyuan accord
pharmaceutical
chain Co., Ltd. (f) Heyuan Heyuan Commercial - 45.00 Equity
Shyndec Pharmaceutical is an important associate as it is a strategic partner of the Group and is
engaged in the production and sale of pharmaceutical product, and the Group adopted equity
method of accounting.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
VII. Interests in other entities (Continued)
2. Interests in associates (Continued)
The following table illustrated the summariesd financial information in respect of Shyndec
Pharmaceutical:
2017 2016
Current assets 6,716,087,446.88 6,337,023,883.28
Non-current assets 8,432,895,743.16 8,678,049,960.17
Total assets 15,148,983,190.04 15,015,073,843.45
Current liabilities 5,148,687,659.08 4,711,258,061.30
Non-current liabilities 2,735,701,130.78 3,365,333,778.30
Total liabilities 7,884,388,789.86 8,076,591,839.60
Non-controlling interests 1,347,618,022.33 1,234,500,935.98
Shareholders’ equity attributable to
shareholders of the parent
company 5,916,976,377.85 5,703,981,067.87
Group’s share of net assets by
proportion of ownership interests 920,681,524.39 887,539,454.16
Carrying amount of the investment 920,675,069.27 887,539,454.16
Operating revenue 4,579,660,856.59 4,581,792,821.21
Net profit 524,753,028.55 489,326,260.51
Total comprehensive income 524,753,028.55 489,326,260.51
Dividend received 22,468,818.32 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
IX Disclosure of fair value
The results of fair value measurement are categorized within the fair value hierarchy, described as
follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair
value are observable, either directly or indirectly; and
Level 3: techniques which use inputs which have a significant effect on the recorded fair value that
are not based on observable market data.
(1) Assets that are measured at fair value on a recurring basis
The Group has no assets that are measured at fair value on a recurring basis.
(2) Assets that are measured at fair value on a non-recurring basis
The Group has no assets that are measured at fair value on a non-recurring basis.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
1. Parent
Proportion of Proportion of
ownership voting power
Registered Share capital interest in the in the
address Nature of business (RMB’0,000) Company Company
Industrial investment holding, trustee of a
pharmaceutical enterprise, assets
Sinopharm reorganization, distribution and retail of
Group Shanghai medicines and pharmaceutical products, etc. 276,709.51 56.06% 56.06%
The ultimate controlling party of the Company is CNPGC.
2. Subsidiaries
Refer to Note VII (1) for details of subsidiaries.
3. Associates
Refer to Note VII (2) for details of associates.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties
Company name Related party relationships
Sino-Swed Pharmaceutical Corp.Ltd. Associate of CNPGC
Wuhan Zhonglian Pharmaceutical Group Co., Ltd. Associate of CNPGC
Changchun Changsheng Gene Pharmaceutical Co., Ltd. Associate of CNPGC
China Otsuka Pharmaceutical Co., Ltd. Associate of CNPGC
Subsidiary of Main Luck
Shenzhen Wanwei Medicine trading Co., Ltd. Pharmaceutical
Sinopharm Holding Huangshan Health Industry Co., Ltd. Associate of Sinopharm Group
Sinopharm Health Online Co.,Ltd. Associate of Sinopharm Group
Hutchison Whampoa Sinopharm Pharmaceuticals(Shanghai) Co.,Ltd Associate of Sinopharm Group
Shanghai Guoda Lingyun Drug Store Co.,Ltd Associate of Sinopharm Group
Shanghai Guoren Drug Store Co.,Ltd Associate of Sinopharm Group
Sichuan Kang Daxin Pharmaceutical Co., Ltd Associate of Sinopharm Group
Yichang Humanwell Pharmaceutical Co., Ltd. Associate of Sinopharm Group
Shareholder who has significant
Shanghai Fosun Pharmaceutical (Group) Co., Ltd.("Fosun Pharm") influence over Sinopharm Group
Foshan Chancheng Pharmaceutical Co., Ltd Subsidiary of Fosun Pharm
Foshan Chancheng District Central Hospital Subsidiary of Fosun Pharm
Foshan Chanyixing Medicine Development Co Ltd Subsidiary of Fosun Pharm
Guilin South pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Hunan Dongting Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Jiangsu Huanghe Pharmaceutical Co., Ltd Subsidiary of Fosun Pharm
Jiangsu Wanbang Pharmacy Marketing Co., Ltd. Subsidiary of Fosun Pharm
Shanghai Chaohui Pharmecurical Co., Ltd. Subsidiary of Fosun Pharm
Shenyang Hongqi Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Sichuan Hexin Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Suzhou Erye Pharmaceutical Limited Company Subsidiary of Fosun Pharm
Chongqing Haisiman Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Chongqing Yaoyou Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Beijing Fusheng Tiandi Property Management Ltd. Controlled by CNPGC
Beijing Huamiao Pharmecurical Co., Ltd. Controlled by CNPGC
Beijing Huasheng Pharmaceutical Biotechnology Development Co., Ltd. Controlled by CNPGC
Beijing Tiantan Biological Products Co., Ltd. Controlled by CNPGC
Chengdu Rongsheng Pharmacy Co., Ltd. Controlled by CNPGC
Winteam Pharmaceutical Group Ltd. Controlled by CNPGC
Sinopharm（Tianjin）Northern Meidical Equipment Co.,Ltd Controlled by CNPGC
Sinopharm Group Finance Co., Ltd. Controlled by CNPGC
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Company name Related party relationships
Foshan Dezhong Pharmaceutical Co., Ltd. Controlled by CNPGC
Foshan Fengliaoxing Pharmaceutical Co., Ltd. Controlled by CNPGC
Foshan Fengliaoxing Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Fengliaoxing Medical Hospital Co.,Ltd. Controlled by CNPGC
Sinopharm Fujian Medical Experiment Co., Ltd. Controlled by CNPGC
China National Pharmaceutical Industry Co., Ltd. Controlled by CNPGC
Guangdong Medi-World Pharmacertical Co., Ltd. Controlled by CNPGC
Sinopharm Group Guangdong Medicine Device Co., Ltd. Controlled by CNPGC
Sinopharm Guangdong Medical Examination Co., Ltd. Controlled by CNPGC
Sinopharm Hebei Medical Instrument Co., Ltd. Controlled by CNPGC
Anhui Jingfang Pharmaceutical Co., Ltd. Controlled by CNPGC
Guizhou Longlife Pharmacertical Co., Ltd. Controlled by CNPGC
Sinopharm Holding (Liaoning Province) Medical Instruments Co., Ltd. Controlled by CNPGC
Shandong Lu Ya Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Group Rongsheng Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Holding Sanyi Medicine(Wuhu) Co., Ltd. Controlled by CNPGC
Sinopharm ShanXi Ruifulai Pharmaceutical Co., Ltd Controlled by CNPGC
Sinopharm Shantou Jinshi Pharmaceutical Co., Ltd Controlled by CNPGC
Sinopharm Group Shanghai Medicine Device Co., Ltd. Controlled by CNPGC
Guizhou Tongjitang Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Group Weiqida Medicine Co., Ltd. Controlled by CNPGC
Wuhan Zhonglian Pharmaceutical Group Co., Ltd. Controlled by CNPGC
Sinopharm Xinjiang Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm YiBin Pharmaceuticals Co., Ltd. Controlled by CNPGC
China National Scientific Instruments & Materials Imp/Exp Shenzhen Co., Ltd Controlled by CNPGC
Wuhan Zhonglian Pharmaceutical Group Co., Ltd. Controlled by CNPGC
Sinopharm Jiayuan International Trading Co., Ltd. Controlled by CNPGC
Reed Sinopharm Exhibitions Co., Ltd. Controlled by CNPGC
Heilongjiang Sinopharm Medical Herbs Co., Ltd. Controlled by CNPGC
Lanzhou Institute of Biological Products Co., Ltd. Controlled by CNPGC
Shanghai Modern Hasen (Shangqiu) Pharmacertical Co., Ltd. Controlled by CNPGC
Shanghai Shyndec Pharmaceutical Marketing Co., Ltd Controlled by CNPGC
Shanghai Institute of Pharmaceutical Industry Controlled by CNPGC
Sichuan Jiangyouzhongbafuzi Technology Development Co., Ltd Controlled by CNPGC
Wuhan Institute of Biological Products Co., Ltd. Controlled by CNPGC
China Sinopharm International Corporation Controlled by CNPGC
China National Pharmaceutical Foreign Trade Co., Ltd. Controlled by CNPGC
Sinopharm United Engineering Corporation Controlled by CNPGC
Sinopharm Chongqing Pharmaceutical and Medical Industry Design Institute Controlled by CNPGC
China National Pharmaceutical Group Corporation Controlled by CNPGC
China Medical Investment Co., Ltd. Controlled by CNPGC
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Company name Related party relationships
China Traditional Chinese Medicine Co. Controlled by CNPGC
Beijing Sinopharm Tianyuan Real Estate & Property Management Co., Ltd. Controlled by Sinopharm Group
Beijing Tongyu Information Technology Co., Ltd Controlled by Sinopharm Group
Sinopharm Group Guorui Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Chemical Reagent Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Instrument Branch Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Southwest Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Xinte Karamay Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Xinjiang Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
China National Medicines Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Medicine Logistic Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding (Shanghai) Imported Goods Direct Sales Center Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tianjin Binhai Pharmaceutical Co., Ltd Controlled by Sinopharm Group
Sinopharm Holding Financing Lease Co., Ltd Controlled by Sinopharm Group
Sinopharm Holding Anhui Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Anqing Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Beijing Huahong Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Beijing Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Changde Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Changzhou Medical logistics center Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Changzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Benzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Chengdu Co., Ltd Controlled by Sinopharm Group
Sinopharm Holding Dalian Hecheng Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Dalian Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Dezhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Erdos Co.,Ltd. Controlled by Sinopharm Group
Sinopharm Holding Sub Marketing Center Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Fujian Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Fuzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Gansu Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Guizhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hainan Hongyi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hainan Co., Ltd. Controlled by Sinopharm Group
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Company name Related party relationships
Sinopharm Holding Henan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Heilongjiang Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hulun Buir Co.,Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hubei Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hunan Weian Drugstore Co.,Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hunan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Huaideju Pharmaceutical (Xiamen)Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Huaian Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Huangshi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jilin Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jinan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jiling Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jiangsu Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jiangxi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jiaozuo Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jinhua Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jinzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Liaocheng Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Linqu Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Longyan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Lunan Co., Ltd. Controlled by Sinopharm Group
Shanghai Meitai Medical Instruments Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Nanping Newforce Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Nantong Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Inner Mongolia Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Ningde Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Ningxia Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Pingdingshan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Putian Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Puyang Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Qianxinan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Qingdao Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Qinghai Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Quanzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Rizhao Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Sanming Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xiamen Co.,Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shandong Co., Ltd. Controlled by Sinopharm Group
China National Pharmaceutical Group Shanxi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Drugstore Co., Ltd. Controlled by Sinopharm Group
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Company name Related party relationships
Sinopharm GroupShanxi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shangqiu Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shenyang Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Biopharmaceutical(Tianjin)Co.,Ltd. Controlled by Sinopharm Group
Sinopharm Sichuan Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Suzhou Kangmin Pharmaceutical Co., Ltd Controlled by Sinopharm Group
Sinopharm Holding Suzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Taizhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tianjin North Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tianjin Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tianjin Distribution Center Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tongliao Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Wenzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Ulanqab Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Wuxi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Wuhu Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tibet Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xiangtan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xiangxi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xiangyang Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Kashi New&Special Drugs Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinyu Co., Ltd. Controlled by Sinopharm Group
Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xuzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yantai Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yancheng Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yangzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yongzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yunnan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zhangzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zhejiang Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Chongqing Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zhoukou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zunyi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Lerentang Pharmaceutical Co., Ltd Controlled by Sinopharm Group
Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Qinhuangdao Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Shijiazhuang Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Tangshan Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Le -Ren-Tang Medicine Co., Ltd. Controlled by Sinopharm Group
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Company name Related party relationships
Sinopharm Prospect Dentech (Beijing) Co., Ltd. Controlled by Sinopharm Group
China National Pharmaceutical Logistics Co., Ltd. Controlled by Sinopharm Group
Sinopharm Xinjiang Korla Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Xinxiang Chain Store Co., Ltd. Controlled by Sinopharm Group
Huzhou Muhanzhuai Pharmacy Chain Store Co., Ltd. Controlled by Sinopharm Group
Shanghai Merro Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Shanghai Tongyu Information Technology Co., Ltd. Controlled by Sinopharm Group
Xinjiang Baitong Property Service Co., Ltd. Controlled by Sinopharm Group
Yangzhou Weikang Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
China National Pharmaceutical Group Shanghai Co., Ltd. Controlled by Sinopharm Group
Non-controlling interest of a
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. subsidiary
Non-controlling interest of a
Beijing Electromechanical Device Group Corporation subsidiary
Non-controlling interest of a
Guangdong Jiyuantang Development Co., Ltd. subsidiary
Non-controlling interest of a
Guangdong Jiyuantang Pharmecurical Co., Ltd. subsidiary
Non-controlling interest of a
Guangdong Overseas Chinese Medical Investment Co., Ltd. subsidiary
Non-controlling interest of a
Hangzhou Xihu Business Group Corporation subsidiary
Non-controlling interest of a
Hunan Minshengtang Investment Co., Ltd. subsidiary
Non-controlling interest of a
Lijin Huang subsidiary
Non-controlling interest of a
Lerentang Investment Group Co., Ltd. subsidiary
Non-controlling interest of a
Linyi Medical Group Co., Ltd. subsidiary
Non-controlling interest of a
Pingdingshan Pusheng Pharmecurical Co., Ltd. subsidiary
Non-controlling interest of a
Quanzhou Xintai Biotech Co., Ltd. subsidiary
Non-controlling interest of a
Shenyang Pharmaceutical Co., Ltd. subsidiary
Non-controlling interest of a
Taishan Qunkang Drugstore Co.,Ltd. subsidiary
Non-controlling interest of a
Xiaoyi Baicaotang Pharmacy Chain Store Co., Ltd. subsidiary
Non-controlling interest of a
Zhenfang Zhang subsidiary
Family member of the
non-controlling shareholder of a
Wang Yang subsidiary
Controller of non-controlling interest
Jinhua Gu of a subsidiary
Controlled by subsidiary's key
Jiang Meng Renren Medical instrument Co., Ltd. management
Controlled by non-controlling interest
Shaoguan Wujiang District Muyang Medicine Information Consultant Co., Ltd. of a subsidiary
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Company name Related party relationships
Controlled by non-controlling interest
Shenzhen Jiufeng Investment Co., Ltd. of a subsidiary
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties
(1) Related party transactions –goods and services
Purchase of goods and receiving of services from related parties
2017 2016
(RMB’0,000) (RMB’0,000)
Sinopharm Holding Sub Marketing Center Co., Ltd. 50,364.72 66,565.32
Sinopharm Group Co., Ltd. 24,622.89 23,911.67
China National Medicines Co., Ltd. 19,232.84 21,928.11
Sinopharm Holding Shanxi Co., Ltd. 10,508.07 5,339.08
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd. 10,052.33 9,512.82
Sino-Swed Pharmaceutical Corporation Ltd. 8,620.40 8,659.40
Sinopharm Le -Ren-Tang Medicine Co., Ltd. 7,972.06 6,655.30
China National Pharmaceutical Group Shanxi Co., Ltd. 7,592.12 3,247.61
Sinopharm Holding Shenyang Co., Ltd. 4,865.94 4,493.62
Jiangsu Wanbang Pharmacy Marketing Co., Ltd. 3,462.99 2,999.32
Sinopharm Group Xinjiang Province New & Special National 3,154.80 3,571.38
Pharmaceutical Co., Ltd.
Lanzhou Institute of Biological Products Co., Ltd. 3,060.00 1,691.54
Sinopharm Holding Yangzhou Co., Ltd. 2,525.21 1,929.13
Sinopharm Holding Lunan Co., Ltd. 2,266.30 1,349.22
Chongqing Haisiman Pharmaceutical Co., Ltd. 2,205.59 176.25
Sinopharm Holding Beijing Co., Ltd. 2,109.46 1,969.22
Sinopharm Holding Hulun Buir Co.,Ltd. 1,839.71 1,496.27
Shenzhen Main Luck Pharmaceutical Co., Ltd. 1,816.37 2,284.97
Sinopharm Holding Inner Mongolia Co., Ltd. 1,791.19 1,237.61
Sinopharm Holding Pingdingshan Co., Ltd. 1,762.97 1,705.81
Chongqing Yaoyou Pharmaceutical Co., Ltd. 1,635.67 1,597.31
Sinopharm Lerentang Hebei Medical Co., Ltd. 1,455.30 1,323.68
Sinopharm Lerentang Shijiazhuang Medicine Co., Ltd. 1,414.10 1,382.49
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(1) Related party transactions –goods and services (Continued)
Purchase of goods and receiving of services from related parties (Continued)
2017 2016
(RMB’0,000) (RMB’0,000)
Sinopharm Holding Jiangsu Co., Ltd. 1,372.10 1,490.84
Shenzhen Wanwei Medicine trading Co., Ltd. 1,241.13 1,336.18
Sinopharm Holding Fujian Co., Ltd. 1,182.23 779.45
Chengdu Rongsheng Pharmaceutical Co., Ltd. 1,016.31 827.01
Sinopharm Holding Hunan Co., Ltd. 950.34 881.03
Sinopharm Holding Xiamen Co.,Ltd. 925.80 2,185.00
Sinopharm Holding Suzhou Co., Ltd. 882.85 811.01
Shanghai Meiluo Medical Co., Ltd. 868.17 855.20
Sinopharm Holding Changzhou Pharmacy Logistics Center Co., Ltd. 731.79 517.97
Sinopharm Holding Changzhou Co., Ltd. 705.18 390.50
Sinopharm Holding Ningxia Co., Ltd. 569.18 845.94
Sinopharm Holding Xinjiang Province New & Special West Pharmaceutical
Co., Ltd. 454.44 496.00
Sinopharm Group Zhijun(Shenzhen) Pingshan Pharmaceutical Co., Ltd. 425.11 -
Yichang Humanwell Pharmaceutical Co., Ltd. 410.98 80.72
Foshan Winteam Pharmaceutical Co., Ltd. 409.57 411.49
Sinopharm Holding Shanxi Instrument Branch Co., Ltd. 389.58 403.94
Sinopharm Holding Beijing Huahong Co., Ltd. 384.32 220.27
Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co., Ltd. 317.94 343.88
Sinopharm Holding Fuzhou Co., Ltd. 300.32 116.71
China Otsuka Pharmaceutical Co., Ltd. 281.15 66.64
Sinopharm Holding Wuxi Co., Ltd. 273.61 68.47
Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd. 244.64 207.69
Sinopharm Holding Henan Co., Ltd. 239.49 110.64
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd. 222.24 -
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. 220.37 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(1) Related party transactions –goods and services (Continued)
Purchase of goods and receiving of services from related parties (Continued)
2017 2016
(RMB’0,000) (RMB’0,000)
China National Pharmaceutical Foreign Trade Co., Ltd. 207.43 64.39
Sinopharm Holding Dalian Co., Ltd. 193.31 288.68
Sinopharm Holding Jinan Co., Ltd. 183.22 -
Sinopharm Holding Tianjin Co., Ltd. 153.10 -
Sinopharm Holding Tianjin Distribution Center Co., Ltd. 145.24 375.56
Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd. 139.84 132.26
Sinopharm Holding Yancheng Co., Ltd. 132.15 96.72
Sinopharm Holding Jinzhou Co., Ltd. 119.90 130.19
Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co., Ltd. 111.74 256.57
Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd. 111.12 46.27
Sinopharm Holding Rizhao Co., Ltd. 107.05 -
Sinopharm Holding Putian Co., Ltd. 106.02 138.93
Shanghai Shyndec Pharmaceutical Marketing Co., Ltd 101.98 178.51
Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd. 93.37 57.57
Sinopharm Holding Xinjiang Xinte Karamay Pharmaceutical Co., Ltd. 86.63 84.53
Sinopharm GroupShanxi Co., Ltd. 86.28 153.87
Sinopharm Holding Chengdu Pharmaceutical Co., Ltd. 80.97 55.04
GuiZhou Tongjitang Pharmaceutical Co., Ltd. 78.34 136.22
Sinopharm Holding Quanzhou Co., Ltd. 69.38 24.95
Sinopharm Fujian Medical Experiment Co., Ltd. 68.04 -
Sinopharm Vanda Pharmaceutical Co., Ltd. 58.37 74.73
Shenyang Hongqi Pharmaceutical Co., Ltd. 50.99 7.68
Sinopharm Holding Kashi New&Special Drugs Co., Ltd. 48.81 87.50
Anhui Jingfang Pharmaceutical Co., Ltd. 46.05 38.62
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(1) Related party transactions –goods and services (Continued)
Purchase of goods and receiving of services from related parties (Continued)
2017 2016
(RMB’0,000) (RMB’0,000)
Sinopharm Group Rongsheng Pharmaceutical Co., Ltd. 36.71 49.09
Hutchison Whampoa Sinopharm Pharmatceuticals (Shanghai) Co., Ltd. 32.11 47.75
Foshan Fengliaoxing Pharmaceutical Co., Ltd. 32.08 28.68
Sinopharm Holding Anhui Co., Ltd. 25.14 7.91
Sinopharm Holding Dezhou Co., Ltd. 22.81 15.17
Beijing Huasheng Pharmaceutical Biotechnology Development Co., Ltd. 21.94 -
Guizhou Longlife Pharmaceutical Co., Ltd. 18.87 -
Beijing Tongyu Information Technology Co., Ltd 17.54 -
Sinopharm Holding Ulanqab Co., Ltd. 14.21 -
Sinopharm Holding Hubei Co., Ltd. 13.76 5.12
Hunan Dongting Pharmaceutical Co., Ltd. 13.57 23.40
Sinopharm Lerentang Qinhuangdao Pharmaceutical Co., Ltd. 11.61 12.91
Sinopharm Wuhan ZhongLianSiYao Pharmaceutical Co., Ltd. 11.21 30.96
Sinopharm Sanyi (Wuhu) Pharmaceutical Co., Ltd. 10.29 30.11
China National Pharmaceutical Industry Co., Ltd. 8.08 14.65
Sinopharm Holding Tongliao Co., Ltd. 7.46 -
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd. 7.25 13.64
Sinopharm Holding Jiangxi Co., Ltd. 6.99 -
Sinopharm Group Guorui Medicine Co., Ltd. 6.58 17.05
Sinopharm Shantou Jinshi Pharmaceutical Co., Ltd 5.53 0.58
China National Pharmaceutical Group Chemical Reagent Co., Ltd. 4.62 35.63
Sinopharm Holding Erdos Co.,Ltd. 3.58 -
Sinopharm Hebei Medical Instrument Co., Ltd. 2.95 4.90
Sinopharm Holding Tianjin North Pharmaceutical Co., Ltd. 2.31 -
Sinopharm Holding Yongzhou Co., Ltd. 2.27 -
Sichuan Jiang You Zhong Ba Science and Technology Development 2.23 6.37
Co., Ltd.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(1) Related party transactions –goods and services (Continued)
Purchase of goods and receiving of services from related parties (Continued)
2017 2016
(RMB’0,000) (RMB’0,000)
Sinopharm Holding Jinhua Co., Ltd. 0.42
1.56
Sinopharm Lerentang Tangshan Medicine Co., Ltd. 1.49 -
Sinopharm Holding Chongqing Co., Ltd. 0.92 -
Sinopharm YiBin Pharmaceuticals Co., Ltd. 0.47 -
Sinopharm Fengliaoxing（Foshan） Medicines Co.,Ltd. 0.23 -
Sinopharm Prospect Dentech (Beijing) Co., Ltd. 0.21 1.24
Sinopharm Group Zhijun(Shenzhen) Pharmaceutical Co., Ltd. 0.09 5,163.45
Wuhan Institute of Biological Products Co., Ltd. 49.32
-
Sinopharm Holding Zhuhai Co., Ltd. 20.02
-
Sinopharm Holding Guizhou Co., Ltd. 17.72
-
Beijing Huamiao Pharmecurical Co., Ltd. 12.44
-
Sinopharm Holding Zhejiang Co., Ltd. 9.27
-
Sinopharm Holding Hainan Co., Ltd. 7.38
-
Sinopharm Holding Zhangzhou Co., Ltd. 6.86
-
Sinopharm Holding (Shanghai) Imported Goods Direct Sales Center Co., Ltd. 5.30
-
Sinopharm Holding Huangshan Health Industry Co., Ltd. 4.95
-
Yangzhou Weikang Pharmaceutical Co., Ltd. 1.84
-
Guilin South pharmaceutical Co., Ltd. 1.26
-
Sinopharm Holding (Liaoning Province) Medical Instruments Co., Ltd. 0.85
-
Shanghai Modern Hasen (Shangqiu) Pharmaceutical Co., Ltd -0.01
-
Suzhou Erye Pharmaceutical Limited Company -0.01
-
Shanghai Shyndec Pharmaceutical Co., Ltd. -0.13
-
Sichuan Hexin Pharmaceutical Co., Ltd. (0.03) 566.50
Sinopharm Holding Biopharmaceutical(Tianjin)Co.,Ltd. (0.11) -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
2017 2016
China National Scientific Instruments & Materials Shenzhen Co., Ltd. (159.86) 627.88
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(1) Related party transactions –goods and services (Continued)
Purchase of goods and receiving of services from related parties (Continued)
2017 2016
(RMB’0,000) (RMB’0,000)
Sinopharm Pharmaceutical Logistics Co., Ltd 739.54 731.99
Sinopharm Health Online Co.,Ltd. 307.16 -
Shanghai Beiyi Guoda pharmaceutical Co. Ltd. 58.94 121.40
Shanghai Tongyu Information Technology Co., Ltd. 9.81 5.18
China National Pharmaceutical Logistics Co., Ltd. 2.89 2.10
Sinopharm Group Co., Ltd. 0.60 -
Sinopharm Chongqing Pharmaceutical and Medical Industry Design Institute - 790.57
Sinopharm Holding Tianjin Binhai Pharmaceutical Co., Ltd - 18.21
Shanghai Institute of Pharmaceutical Industry - 5.85
Reed Sinopharm Exhibitions Co., Ltd. - 2.83
193,234.81 199,421.08
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(1) Related party transactions –goods and services (Continued)
Sale of goods and rendering of services
2017 2016
(RMB’0,000) (RMB’0,000)
Sinopharm Holding Shandong Co., Ltd. 5,460.94 5,233.35
Shanghai Beiyi Guoda pharmaceutical Co. Ltd. 5,148.35 4,821.20
Sinopharm Holding Beijing Co., Ltd. 4,633.07 3,579.80
Sinopharm Sichuan Pharmaceutical Co., Ltd. 3,714.54 5,033.39
Sinopharm Holding Hubei Co., Ltd. 3,672.86 3,781.42
Sinopharm Holding Hainan Co., Ltd. 3,638.54 3,055.68
Foshan Chancheng Pharmaceutical Co., Ltd 3,301.11 3,527.03
Sinopharm Le -Ren-Tang Medicine Co., Ltd. 2,970.03 3,214.00
Sinopharm Holding (Tianjin) Orient Bookcom Pharmaceutical Trade Co., Ltd. 2,822.23 3,618.12
Sinopharm Holding Hainan Hongyi Co., Ltd. 2,562.85 2,120.25
Sinopharm Holding Beijing Huahong Co., Ltd. 1,880.90 1,593.60
Sinopharm Holding Wenzhou Co., Ltd. 1,614.48 1,673.03
Sinopharm Holding Henan Co., Ltd. 1,592.04 1,177.26
Sinopharm Group Southwest Medicine Co., Ltd. 1,559.19 1,517.13
Sinopharm Holding Yunnan Co., Ltd. 1,388.25 1,156.43
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd. 1,306.02 2,935.24
Sinopharm Holding Sub Marketing Center Co., Ltd. 1,212.43 2,468.71
Sinopharm Holding Nantong Co., Ltd. 1,066.83 1,424.30
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. 956.60 -
Sinopharm Holding Tianjin Co., Ltd. 882.56 1,274.08
Sinopharm Holding Zhejiang Co., Ltd. 682.94 532.57
Sinopharm Holding Ningxia Co., Ltd. 630.35 1,044.44
China National Pharmaceutical Group Shanxi Co., Ltd. 629.95 536.65
Sinopharm Holding Fuzhou Co., Ltd. 607.33 360.13
Sinopharm Holding Fujian Co., Ltd. 604.85 1,358.86
Sinopharm Holding Guizhou Co., Ltd. 597.28 623.31
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(1) Related party transactions –goods and services (Continued)
Sale of goods and rendering of services
2017 2016
(RMB’0,000) (RMB’0,000)
Sinopharm Holding Hulun Buir Co.,Ltd. 595.56 313.14
Sinopharm Group Co., Ltd. 559.37 1,065.95
Sinopharm Holding Hunan Co., Ltd. 502.01 6,921.75
Sinopharm Holding Yangzhou Co., Ltd. 498.32 491.33
Hunan Minshengtang Investment Co., Ltd. 437.85 -
Foshan Chancheng District Central Hospital 415.26 290.09
Sinopharm Holding Shenyang Co., Ltd. 390.74 1,030.46
Shanghai Merro Pharmaceutical Co., Ltd. 323.49 666.32
Sinopharm Holding Jilin Co., Ltd. 300.98 316.42
Sinopharm Holding Gansu Co., Ltd. 288.49 336.21
Sinopharm Holding Heilongjiang Co., Ltd. 272.05 289.90
Sinopharm Holding Xinjiang Special Drugs Western
Pharmaceutical Co., Ltd. 231.54 1,259.91
Sinopharm Holding Quanzhou Co., Ltd. 230.03 399.76
China National Medicines Co., Ltd. 206.36 193.30
Sinopharm Holding Qinghai Co., Ltd. 175.96 165.39
Foshan Chanyixing Medicine Development Co Ltd 140.59 124.06
Sinopharm Holding Shanxi Co., Ltd. 134.71 508.16
Sinopharm Holding Chengdu Co., Ltd 122.78 121.33
Sinopharm Holding Lunan Co., Ltd. 100.46 178.55
Sinopharm GroupShanxi Co., Ltd. 84.46 45.79
Sinopharm Holding Zhangzhou Co., Ltd. 75.05 180.13
Shanghai Guoda Lingyun Drug Store Co.,Ltd 71.39 96.68
Sinopharm Holding Jiangxi Co., Ltd. 64.75 27.60
Sinopharm Holding Putian Co., Ltd. 63.74 157.78
Sinopharm Holding Ningde Co., Ltd. 60.31 157.77
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co.,
Ltd. 59.82 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(1) Related party transactions –goods and services (Continued)
Sale of goods and rendering of services
2017 2016
(RMB’0,000) (RMB’0,000)
Sinopharm Group Guangdong Medicine Device Co., Ltd. 55.73 53.08
Sinopharm Holding Dalian Co., Ltd. 48.61 202.74
Sinopharm Holding Huaian Co., Ltd. 44.01 27.24
Hutchison Whampoa Sinopharm Pharmaceuticals(Shanghai) Co.,Ltd 40.92 25.56
Sinopharm Holding Dalian Hecheng Co., Ltd. 36.70 -
Sinopharm Holding Inner Mongolia Co., Ltd. 36.65 42.14
Sinopharm Holding Anhui Co., Ltd. 36.61 0.11
Sinopharm Holding Changzhou Medical logistics center Co., Ltd. 29.19 52.82
Sinopharm Holding Wuxi Co., Ltd. 21.50 103.54
Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd. 20.19 73.75
China Otsuka Pharmaceutical Co., Ltd. 15.38 -
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd. 13.76 -
Sinopharm Holding Chongqing Co., Ltd. 12.59 81.81
China National Scientific Instruments & Materials Imp/Exp Shenzhen Co., Ltd 12.18 16.25
Sinopharm Holding Longyan Co., Ltd. 11.48 66.81
Sinopharm Holding Xiangyang Co., Ltd. 10.95 9.99
Sinopharm Holding Ulanqab Co., Ltd. 9.29 3.54
Sinopharm Holding Huangshi Co., Ltd. 8.79 -
Sinopharm Xinxiang Chain Store Co., Ltd. 6.64 4.79
Sichuan Kang Daxin Pharmaceutical Co., Ltd 3.32 2.91
Beijing Tiantan Biological Products Co., Ltd. 0.77 6.07
Sinopharm Holding Qianxinan Co., Ltd. 0.75 1.40
Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd. 0.42 19.34
Sinopharm Fengliaoxing Medical Hospital Co.,Ltd. 0.22 -
Sinopharm Guangdong Medical Examination Co., Ltd. 0.08 3.84
Sinopharm Holding Jinzhou Co., Ltd. - 880.71
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(1) Related party transactions –goods and services (Continued)
Sale of goods and rendering of services
2017 2016
(RMB’0,000) (RMB’0,000)
Sinopharm Holding Taizhou Co., Ltd. - 165.65
Sinopharm Holding Yancheng Co., Ltd. - 130.25
Sinopharm Holding Zhuhai Co., Ltd. - 95.87
Sinopharm Holding Xuzhou Co., Ltd. - 85.80
Sinopharm Holding Suzhou Kangmin Pharmaceutical Co., Ltd - 54.46
Sinopharm Holding Sanming Co., Ltd. - 52.34
Sinopharm Lerentang Tangshan Medicine Co., Ltd. - 37.43
Sinopharm Holding Linqu Co., Ltd. - 28.89
Sinopharm Holding Tianjin Distribution Center Co., Ltd. - 27.11
Jiang Meng Renren Medical instrument Co., Ltd. - 16.80
Sinopharm Holding Tibet Pharmaceutical Co., Ltd. - 11.08
Sinopharm Holding Anqing Co., Ltd. - 8.88
Sinopharm Holding Suzhou Co., Ltd. - 8.19
Sinopharm Holding Yantai Co., Ltd. - 7.18
Sinopharm Holding Wuhu Co., Ltd. - 5.13
Sinopharm Holding Jiangsu Co., Ltd. - 4.72
China Sinopharm International Corporation - 4.49
Sinopharm Holding Jiling Co., Ltd. - 4.08
Sinopharm Holding Puyang Co., Ltd. - 3.20
Beijing Fusheng Tiandi Property Management Ltd. - 2.75
Sinopharm Holding Shanxi Drugstore Co., Ltd. - 1.59
Huzhou Muhanzhuai Pharmacy Chain Store Co., Ltd. - 1.43
Sinopharm Holding Qingdao Co., Ltd. - 1.42
Sinopharm Holding Changde Co., Ltd. - 0.95
China National Pharmaceutical Foreign Trade Co., Ltd. - 0.81
Heilongjiang Sinopharm Medical Herbs Co., Ltd. - 0.64
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(1) Related party transactions –goods and services (Continued)
Sale of goods and rendering of services
2017 2016
(RMB’0,000) (RMB’0,000)
Sinopharm Holding Zhoukou Co., Ltd. - 0.62
Sinopharm Lerentang Qinhuangdao Medicine Co., Ltd. - 0.59
Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co., Ltd. - 0.57
Sinopharm Holding Xiangxi Co., Ltd. - 0.49
Sinopharm Holding Tianjin North Medicine Co., Ltd. - 0.34
Sinopharm Holding Benzhou Co., Ltd. - 0.30
Sinopharm Holding Shangqiu Co., Ltd. - 0.22
Sinopharm United Engineering Corporation - 0.18
Sinopharm Holding Nanping Newforce Co., Ltd. - 0.15
Sinopharm Holding Xiangtan Co., Ltd. - 0.05
Sinopharm Holding Zunyi Co., Ltd. - -1.22
China National Medicines Co., Ltd. 378.51 326.24
Sinopharm Group Medicine Logistic Co., Ltd. 113.31 118.15
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd. 26.64 -
Sinopharm Group Zhijun (Shenzhen) PingShan Pharmaceutical Co.,
Ltd. 11.04 -
Sinopharm Holding Sub Marketing Center Co., Ltd. 5.14 -
Shenzhen Wanwei Medicine trading Co., Ltd. 3.88 17.81
Sinopharm Holding Shanxi Co., Ltd. 2.83 11.00
Sinopharm Holding Shanxi Instrument Branch Co., Ltd. 2.28 3.64
China National Pharmaceutical Group Shanxi Co., Ltd. 1.94 1.00
Shenzhen Main Luck Pharmaceutical Co., Ltd. 1.83 1.53
Shenzhen Zhijun Pharmaceutical Trade Co., Ltd. 1.75 -
Sinopharm Holding (Tianjin) Orient Bookcom Pharmaceutical Trade Co.,
Ltd. 1.37 3.95
Sinopharm Health Online Co.,Ltd. 1.07 -
Winteam Pharmaceutical Group Ltd. 0.66 0.58
Sinopharm Group Co., Ltd. - 23.58
China National Pharmaceutical Foreign Trade Co., Ltd. - 11.79
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Sinopharm Group Southwest Medicine Co., Ltd. - 10.63
62,571.57 75,969.53
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(2) Related party transactions - leases
(a) As the lessor
Type of assets Income from leases in Income from leases in
under leases 2017 (RMB‘0,000) 2016 (RMB‘0,000)
Sinopharm Group Zhijun (Shenzhen) Building
Pharmaceutical Co., Ltd. 63.71 -
China National Medicines Co., Ltd. Building 4.57 4.32
Sinopharm Holding Sub Marketing Center Co., Building
Ltd. 2.29 2.11
Building
Foshan Fengliaoxing Pharmaceutical Co., Ltd. - 6.12
70.57 12.55
(b) As the lessee
Type of assets Expenses from leases Expenses from leases
under leases in 2017 (RMB‘0,000) in 2016 (RMB‘0,000)
Beijing Golden Elephant Fosun Pharmaceutical Building
Co., Ltd. 478.00 439.74
Sinopharm Group Xinjiang Special Drugs Building
National Pharmaceutical Co., Ltd. 423.96 410.11
Sinopharm Group Medicine Logistic Co., Ltd. Equipment 375.00 375.00
China National Pharmaceutical Group Shanghai
Building
Co., Ltd. 357.41 316.81
Sinopharm Group Medicine Logistic Co., Ltd. Building 354.00 371.70
Shenyang Pharmaceutical Co., Ltd. Building 326.38 334.00
Lerentang Investment Group Co., Ltd. Building 270.00 270.00
Pingdingshan Pusheng Pharmaceutical Co., Ltd. Building 240.30 199.44
Linyi Medical Group Co., Ltd. Building 201.05 221.09
Sinopharm Holding Yangzhou Co., Ltd. Building 186.29 195.60
Hunan Minshengtang Investment Co., Ltd. Building 154.84 117.40
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Huang Lijin Building 81.91 58.47
Guangdong Jiyuantang Pharmaceutical Co., Ltd. Building 61.14 60.65
Gu Jinhua Building 59.67 17.88
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(2) Related party transactions – leases (Continued)
(a) As the lessee (continued)
Expenses from Expenses from
Type of assets leases in 2017 leases in 2016
under leases (RMB‘0,000) (RMB‘0,000)
Building
Shaoguan Wujiang District Muyang Medicine
Information Consultant Co., Ltd. Building 47.02 48.58
Zhang Zhenfang Building 40.25 35.00
Sinopharm Holding Shanxi Co., Ltd. Building 29.77 32.90
Wang Yang Building 26.29 27.60
Beijing Sinopharm Tianyuan Real Estate &
Property Management Co., Ltd. Building 25.99 -
Sinopharm Group Co., Ltd. Building 25.45 24.40
Sinopharm Holding Beijing Co., Ltd. Building 22.19 22.50
Sinopharm Holding Kashi New & Special
Drugs Co., Ltd. Building 21.22 23.27
China National Medicines Co., Ltd. Building 19.96 15.00
Sinopharm Holding Xinjiang Xinte Karamay
Pharmaceutical Co., Ltd. Building 18.43 17.84
Hangzhou Xihu Business Group Corporation Building 12.65 12.65
Sinopharm Xinjiang Pharmaceutical Co., Ltd. Building 12.50 7.50
Taishan Qunkang Pharmacy Co., Ltd. Building 8.13 8.24
Xinjiang Baitong Property Service Co., Ltd. Building 3.46 3.06
Sinopharm Group Xinjiang Pharmaceutical
Co., Ltd. Building 2.70 12.88
Sinopharm Holding Fujian Co., Ltd. Building 0.20 0.21
3,886.13 3,679.51
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(3) Related party transactions - guarantees
Guarantees received from related parties
Amount of
guarantee Termination of Whether the guarantee is
2017 Inception of guarantee
guarantee fulfilled
（RMB‘0,000）
Sinopharm Group Co., Ltd. 2,586.00 18 October 2016 30 October 2017 No
Sinopharm Group Co., Ltd. 4,239.30 24 July 2016 23 July 2017 No
Sinopharm Group Co., Ltd. 3,064.83 24 July 2016 24 July 2017 No
(4) Related party transactions – Financing
Amount
2017 Category （RMB‘0,000） Inception Maturity
Borrowed from
Group Financial Co. Discount on bank 23 January 2017 11 May 2017
acceptance notes 156.00
Group Financial Co. Discount on bank 23 January 2017 28 May 2017
acceptance notes 200.00
Group Financial Co. Discount on bank 23 January 2017 6 March 2017
acceptance notes 200.00
Group Financial Co. Discount on bank 23 January 2017 14 March 2017
acceptance notes 516.73
Group Financial Co. Discount on bank 23 January 2017 20 March 2017
acceptance notes 410.00
Group Financial Co. Discount on bank 23 January 2017 7June2017
acceptance notes 225.04
Group Financial Co. Discount on bank 24 January2017 19 June 2017
acceptance notes 200.00
Group Financial Co. Discount on bank 23 January 2017 20 March 2017
acceptance notes 188.35
Group Financial Co. Discount on bank 23 January 2017 22 March 2017
acceptance notes 185.03
Group Financial Co. Discount on bank 23 January 2017 19 March 2017
acceptance notes 131.27
Group Financial Co. Discount on bank 23 January 2017 20 March 2017
acceptance notes 125.36
Group Financial Co. Discount on bank 23 January 2017 23 March 2017
acceptance notes 346.35
Group Financial Co. Discount on bank 270.87 23 January 2017 23 March 2017
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Amount
2017 Category （RMB‘0,000） Inception Maturity
Borrowed from
acceptance notes
Group Financial Co. Discount on bank 23 January 2017 23 March 2017
acceptance notes 355.73
Group Financial Co. Discount on bank 23 January 2017 20 March 2017
acceptance notes 120.49
Group Financial Co. Discount on bank 23 January 2017 20 April 2017
acceptance notes 116.17
Group Financial Co. Discount on bank 24 January 2017 12 June 2017
acceptance notes 200.00
Group Financial Co. Discount on bank 23 January 2017 28 March 2017
acceptance notes 167.11
Group Financial Co. Discount on bank 23 January 2017 28 March 2017
acceptance notes 200.00
Group Financial Co. Discount on bank 23 January 2017 23 March 2017
acceptance notes 290.00
Group Financial Co. Discount on bank 23 January 2017 26 March 2017
acceptance notes 684.99
Group Financial Co. Discount on bank 24 January 2017 26 June 2017
acceptance notes 100.00
Group Financial Co. Discount on bank 24 January 2017 26 June 2017
acceptance notes 100.00
Group Financial Co. Discount on bank 24 January 2017 26 June 2017
acceptance notes 100.00
Group Financial Co. Discount on bank 24 January 2017 9 June 2017
acceptance notes 500.00
Group Financial Co. Discount on bank 24 January 2017 9 June 2017
acceptance notes 500.00
Group Financial Co. Discount on bank 24 January 2017 9 June 2017
acceptance notes 500.00
Group Financial Co. Discount on bank 24 January 2017 26 March 2017
acceptance notes 127.26
Group Financial Co. Discount on bank 23 January 2017 27 March 2017
acceptance notes 290.00
Group Financial Co. Discount on bank 23 January 2017 27 March 2017
acceptance notes 290.00
Group Financial Co. Discount on bank 23 January 2017 27 March 2017
acceptance notes 290.00
Group Financial Co. Discount on bank 23January 2017 27 March 2017
acceptance notes 290.00
Group Financial Co. Discount on bank 23 January 2017 27 March 2017
acceptance notes 290.00
Group Financial Co. Discount on bank 23 January 2017 27 March 2017
acceptance notes 119.75
Group Financial Co. Discount on bank 23 January 2017 27 March 2017
acceptance notes 290.00
Group Financial Co. Discount on bank 23 January 2017 27 March 2017
acceptance notes 290.00
Group Financial Co. Discount on bank 23 January 2017 27 March 2017
acceptance notes 290.00
Group Financial Co. Discount on bank 23 January 2017 27 March 2017
acceptance notes 145.61
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Amount
2017 Category （RMB‘0,000） Inception Maturity
Borrowed from
Group Financial Co. Discount on bank 23 January 2017 30 June 2017
acceptance notes 153.91
Group Financial Co. Discount on bank 23 January 2017 30 March 2017
acceptance notes 244.32
Group Financial Co. Discount on bank 23 January 2017 30 March 2017
acceptance notes 290.00
Group Financial Co. Discount on bank 24 January 2017 29 March 2017
acceptance notes 332.37
Group Financial Co. Discount on bank 23 January 2017 22 March 2017
acceptance notes 116.49
Group Financial Co. Discount on commercial 19 January 2017 31 March 2017
acceptance notes 257.01
Group Financial Co. Discount on commercial 19 January 2017 8 April 2017
acceptance notes 957.45
Group Financial Co. Discount on commercial 23 February 2017 31 March 2017
acceptance notes 177.21
Group Financial Co. Discount on commercial 23 February 2017 28 March 2017
acceptance notes 512.53
Group Financial Co. Discount on commercial 19 January 2017 28 April 2017
acceptance notes 398.87
Group Financial Co. Discount on commercial 19 January 2017 31 May 2017
acceptance notes 319.95
Group Financial Co. Discount on commercial 19 January 2017 25 March 2017
acceptance notes 1,344.74
Group Financial Co. Discount on commercial 24 February 2017 25 April 2017
acceptance notes 418.63
Group Financial Co. Discount on commercial 19 January 2017 25 March 2017
acceptance notes 985.73
Group Financial Co. Discount on commercial 19 January 2017 28 April 2017
acceptance notes 268.63
Group Financial Co. Discount on commercial 19 January 2017 31 March 2017
acceptance notes 2,416.32
Group Financial Co. Discount on commercial 19 January 2017 30 April 2017
acceptance notes 1,587.59
Group Financial Co. Discount on commercial 19 January 2017 29 March 2017
acceptance notes 1,469.72
Group Financial Co. Discount on commercial 23 February 2017 8 May 2017
acceptance notes 112.54
Group Financial Co. Discount on commercial 24 February 2017 2 June 2017
acceptance notes 1,318.80
Group Financial Co. Discount on commercial 23 February 2017 25 May 2017
acceptance notes 178.95
Group Financial Co. Discount on commercial 23 February 2017 31 March 2017
acceptance notes 826.49
Group Financial Co. Discount on commercial 23 February 2017 29 March 2017
acceptance notes 187.53
Group Financial Co. Discount on bank 6 October 2017
22 June 2017
acceptance notes 128.00
Group Financial Co. Discount on bank 22 June 2017 27 October 2017
acceptance notes 200.00
Group Financial Co. Discount on bank 300.00 22 June 2017 27 October 2017
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Amount
2017 Category （RMB‘0,000） Inception Maturity
Borrowed from
acceptance notes
Group Financial Co. Discount on bank 22 June 2017 24 August 2017
acceptance notes 100.00
Group Financial Co. Discount on bank 22 June 2017 24 August 2017
acceptance notes 100.00
Group Financial Co. Discount on bank 22 June 2017 24 August 2017
acceptance notes 100.00
Group Financial Co. Discount on bank 22 June 2017 24 August 2017
acceptance notes 100.00
Group Financial Co. Discount on bank 22 June 2017 24 August 2017
acceptance notes 100.00
Group Financial Co. Discount on bank 22 June 2017 24 August 2017
acceptance notes 100.00
Group Financial Co. Discount on bank 22 June 2017 24 August 2017
acceptance notes 100.00
Group Financial Co. Discount on bank 22 June 2017 24 August 2017
acceptance notes 100.00
Group Financial Co. Discount on bank 22 June 2017 24 August 2017
acceptance notes 100.00
Group Financial Co. Discount on bank 22 June 2017 27 November 2017
acceptance notes 200.00
Group Financial Co. Discount on bank 22 June 2017 27 November 2017
acceptance notes 300.00
Group Financial Co. Discount on bank 22 June 2017 27 November 2017
acceptance notes 210.19
Discount on bank 22 June 2017 27 November 2017
Group Financial Co. acceptance notes 198.22
Group Financial Co. Discount on bank 22 June 2017 27 November 2017
acceptance notes 300.00
Group Financial Co. Discount on bank 22 June 2017 27 August 2017
acceptance notes 205.77
China National
Pharmaceutical Group Long-term borrowings 24 May 2017 24 May2020
Corporation 3,160.00
30,780.07
Amount
2017 Category （RMB‘0,000） Inception Maturity
Lend to
Sinopharm Group
Zhijun(Shenzhen) 4 January 2017 4 January 2018
Pharmaceutical Co., Ltd. Entrusted loan 4,400.00
(5) Related party asset transfer
2017 2016
Type of transaction
(RMB‘0,000) (RMB‘0,000)
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Purchase of intangible
Shanghai Tongyu Information Technology Co., Ltd. asset 4.62 -
Purchase of construction in
Sinopharm Group Chemical Reagent Co., Ltd. progress - 196.03
Purchase of construction in
Sinopharm Holding (China) Financial Leasing Co., Ltd. progress - 379.01
Sinopharm Group Co., Ltd. Sale fixed asset - 186.90
Sinopharm Holding Ningxia Co., Ltd. Sale fixed asset - 34.00
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(6) Other related party transactions
2017 2016
(RMB‘0,000) (RMB‘0,000)
(a) Remuneration for key management personnel 250.75 254.13
(b) Interest expense
2017 2016
Related party Category RMB‘0,000 RMB‘0,000
Sinopharm Group Finance Co., Ltd. Payment of notes discount
interest 315.08 64.56
Sinopharm Holding (China) Financial Payment of financing
Leasing Co., Ltd. lease interest 83.71 52.70
Sinopharm Group Finance Co., Ltd. Payment of loan interest 68.86 146.78
China National Pharmaceutical Group Payment of entrusted loan
Corporation interest 13.47 73.79
Sinopharm Group Co., Ltd. Payment of interest on
borrowings to related
parties - 507.67
China National Pharmaceutical Payment of interest on
Foreign Trade Co., Ltd. borrowings to related
parties - 141.88
Sinopharm Holding Sub Marketing Payment of buyer notes
Center Co., Ltd. discount interest - 51.72
481.12 1,039.10
(c) Interest income
2017 2016
Related party Category RMB‘0,000 RMB‘0,000
Sinopharm Group Zhijun (Suzhou) Entrusted loan interest
Pharmaceutical Co., Ltd. 93.80 132.24
Sinopharm Group Finance Co., Ltd. Deposit interest 12.97 24.87
Shanghai Shyndec Pharmaceutical Other interest
Co., Ltd. 4.76 -
111.53 157.11
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Commitments between the Group and related parties
2017 2016
RMB‘0,000 RMB‘0,000
Leases
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. 3,727.00 -
Pingdingshan Pusheng Pharmecurical Co., Ltd. 2,014.85 2,749.92
Sinopharm Holding Yangzhou Co., Ltd. 1,369.20 1,564.80
Linyi Medical Group Co., Ltd. 1,329.99 -
Lerentang Investment Group Co., Ltd. 1,080.00 1,180.00
Hunan Minshengtang Investment Co., Ltd. 1,039.28 -
Jinhua Gu 780.98 324.82
Sinopharm Group Medicine Logistic Co., Ltd. 746.70 -
Shenyang Pharmaceutical Co., Ltd. 698.00 1,044.00
China National Pharmaceutical Group Shanghai Co., Ltd. 601.63 676.9
Sinopharm Group Xinjiang Special Drugs National
Pharmaceutical Co., Ltd. 425.67 1,044.00
Shaoguan Wujiang District Muyang Medicine Information
Consultant Co., Ltd. 311.74 360.38
Sinopharm Group Co., Ltd. 199.27 -
Wang Yang 138.00 157.71
Hangzhou Xihu Business Group Corporation 100.59 -
Sinopharm Xinjiang Pharmaceutical Co., Ltd. 78.81 -
Taishan Qunkang Drugstore Co.,Ltd. 68.15 77.66
Lijin Huang 31.81 -
Beijing Sinopharm Tianyuan Real Estate & Property
Management Co., Ltd. 25.87 100.53
Sinopharm Holding Beijing Co., Ltd. 23.50 -
China National Medicines Co., Ltd. 15.75 -
Sinopharm Group Zhijun (Shenzhen) PingShan
Pharmaceutical Co., Ltd. 14.88 -
Sinopharm Xinjiang Korla Pharmaceutical Co., Ltd. - 105.74
Shenzhen Jiufeng Investment Co., Ltd. - 91.00
Guangdong Jiyuantang Pharmecurical Co., Ltd. - 69.58
Sinopharm Holding Shanxi Co., Ltd. - 69.58
14,821.67 9,611.04
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
2017 2016
RMB‘0,000 RMB‘0,000
Lease out
Sinopharm Holding Sub Marketing Center Co., Ltd. 2.40 -
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd. - 63.71
2.40 63.71
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Amounts due from related parties
2017 2016
RMB‘0,000 RMB‘0,000
Accounts receivable
Foshan Chancheng Pharmaceutical Co., Ltd 2,595.90 2,666.51
Sinopharm Health Online Co.,Ltd. 1,720.19 1,553.42
Sinopharm Le -Ren-Tang Medicine Co., Ltd. 1,675.18 627.65
Sinopharm Holding (Tianjin) Orient Bookcom
Pharmaceutical Trade Co., Ltd. 1,409.17 74.85
Sinopharm Holding Beijing Co., Ltd. 1,328.22 345.39
Sinopharm Holding Hainan Co., Ltd. 1,067.78 575.18
Sinopharm Holding Hubei Co., Ltd. 939.30 583.72
Sinopharm Holding Hainan Hongyi Co., Ltd. 882.94 551.04
Sinopharm Holding Shandong Co., Ltd. 639.89 1,205.91
Sinopharm Sichuan Pharmaceutical Co., Ltd. 619.85 1,365.97
Shanghai Beiyi Guoda pharmaceutical Co. Ltd. 618.48 2,715.69
Hunan Minshengtang Investment Co., Ltd. 481.94 -
Sinopharm Holding Beijing Huahong Co., Ltd. 478.49 328.88
Sinopharm Holding Henan Co., Ltd. 453.82 -
Sinopharm Holding Hulun Buir Co.,Ltd. 446.31 637.39
Sinopharm Group Xinjiang Special Drugs National
Pharmaceutical Co., Ltd. 405.48 429.34
Beijing Golden Elephant Fosun Pharmaceutical Co.,
Ltd. 395.96 30.86
Sinopharm Holding Nantong Co., Ltd. 395.00 10.63
Sinopharm Holding Wenzhou Co., Ltd. 370.37 213.63
Sinopharm Holding Tianjin Co., Ltd. 341.67 226.12
Sinopharm Holding Yunnan Co., Ltd. 333.42 233.12
Sinopharm Group Co., Ltd. 300.85 567.26
Foshan Chancheng District Central Hospital 259.64 324.83
Sinopharm Holding Sub Marketing Center Co., Ltd. 223.84 363.61
China National Medicines Co., Ltd. 215.38 301.74
Sinopharm Holding Guizhou Co., Ltd. 211.75 229.65
Sinopharm Holding Ningxia Co., Ltd. 202.11 108.67
Sinopharm Holding Zhejiang Co., Ltd. 181.60 72.64
Sinopharm Group Southwest Medicine Co., Ltd. 180.70 921.60
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Amounts due from related parties (Continued)
2017 2016
RMB‘0,000 RMB‘0,000
Accounts receivable (continued)
Sinopharm Holding Hunan Co., Ltd. 169.88 1,597.64
China National Pharmaceutical Group Shanxi Co., Ltd. 142.09 99.34
Sinopharm Holding Jilin Co., Ltd. 117.64 0.41
Sinopharm Holding Shenyang Co., Ltd. 114.70 -
Sinopharm Holding Yangzhou Co., Ltd. 107.69 96.27
Foshan Chanyixing Medicine Development Co Ltd 100.82 80.55
Shanghai Merro Pharmaceutical Co., Ltd. 97.81 93.18
Sinopharm Holding Fuzhou Co., Ltd. 94.25 -
Sinopharm Holding Gansu Co., Ltd. 62.20 -
Sinopharm Holding Qinghai Co., Ltd. 57.38 47.18
Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co.,
Ltd. 55.60 351.97
Sinopharm Holding Heilongjiang Co., Ltd. 51.97 2,246.68
Sinopharm Holding Dalian Co., Ltd. 46.87 1.88
Sinopharm Holding Fujian Co., Ltd. 44.91 99.87
Sinopharm Holding Shanxi Co., Ltd. 35.24 190.66
Sinopharm Group Medicine Logistic Co., Ltd. 34.50 87.33
Sinopharm Holding Chengdu Co., Ltd 30.28 7.59
Hutchison Whampoa Sinopharm Pharmaceuticals(Shanghai) Co.,Ltd 25.01 12.49
Sinopharm Holding Jiangxi Co., Ltd. 24.14 14.60
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd. 20.74 18.14
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd. 16.10 -
Sinopharm GroupShanxi Co., Ltd. 14.95 16.09
Sinopharm Holding Anhui Co., Ltd. 14.94 -
Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd. 12.18 12.25
Sinopharm Group Zhijun (Shenzhen) PingShan Pharmaceutical Co., Ltd. 12.03 -
Sinopharm Holding Dalian Hecheng Co., Ltd. 11.73 10.35
Sinopharm Holding Huaian Co., Ltd. 11.50 11.85
Sinopharm Holding Huangshi Co., Ltd. 10.26 -
Sinopharm Holding Wuxi Co., Ltd. 8.51 3.72
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Amounts due from related parties (Continued)
2017 2016
RMB‘0,000 RMB‘0,000
Accounts receivable (continued)
Sinopharm Holding Changzhou Medical logistics center Co., Ltd. 7.72 14.80
Sinopharm Holding Inner Mongolia Co., Ltd. 5.48 18.16
Sinopharm Holding Quanzhou Co., Ltd. 4.44 -
Shanghai Guoda Lingyun Drug Store Co.,Ltd 2.94 46.61
Sinopharm Xinxiang Chain Store Co., Ltd. 1.78 4.65
Sinopharm Holding Xiangyang Co., Ltd. 1.03 2.95
China National Pharmaceutical Foreign Trade Co., Ltd. 0.50 0.50
Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd. 0.50 0.50
Sinopharm Fengliaoxing Medical Hospital Co.,Ltd. 0.23 -
Sinopharm Holding Lunan Co., Ltd. - 42.74
Beijing Tiantan Biological Products Co., Ltd. - 7.10
Sinopharm Guangdong Medical Examination Co., Ltd. - 3.25
Sinopharm Holding Zhuhai Co., Ltd. - 3.06
China National Pharmaceutical Group Corporation - 1.78
Shenyang Pharmaceutical Co., Ltd. - 0.30
20,945.77 22,511.74
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Amounts due from related parties (Continued)
2017 2016
RMB‘0,000 RMB‘0,000
Notes receivable
Sinopharm Holding Heilongjiang Co., Ltd. 1,087.73 89.20
Sinopharm Holding Hubei Co., Ltd. 539.21 394.82
Sinopharm Sichuan Pharmaceutical Co., Ltd. 278.12 1,688.99
Sinopharm Holding Hainan Co., Ltd. 254.97 3.47
Sinopharm Holding Hunan Co., Ltd. 120.00 886.78
Sinopharm Holding Shandong Co., Ltd. - 2,193.52
Sinopharm Holding Beijing Co., Ltd. - 684.99
Sinopharm Holding Henan Co., Ltd. - 473.43
Sinopharm Holding Nantong Co., Ltd. - 416.00
Sinopharm Holding (Tianjin) Orient Bookcom
Pharmaceutical Trade Co., Ltd. - 413.80
Sinopharm Holding Fujian Co., Ltd. - 369.33
Sinopharm Holding Yunnan Co., Ltd. - 258.53
China National Pharmaceutical Group Shanxi Co., Ltd. - 225.04
Sinopharm Holding Zhejiang Co., Ltd. - 210.66
Sinopharm Holding Ningxia Co., Ltd. - 200.53
Sinopharm Holding Shenyang Co., Ltd. - 154.64
Sinopharm Holding Sub Marketing Center Co., Ltd. - 139.47
Sinopharm Holding Gansu Co., Ltd. - 129.48
Sinopharm Holding Quanzhou Co., Ltd. - 121.92
Sinopharm Holding Fuzhou Co., Ltd. - 109.16
Sinopharm Holding Beijing Huahong Co., Ltd. - 100.00
Sinopharm Holding Jilin Co., Ltd. - 38.16
Sinopharm Holding Inner Mongolia Co., Ltd. - 9.00
2,280.03 9,310.92
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Amounts due from related parties (Continued)
2017 2016
RMB‘0,000 RMB‘0,000
Other receivables
Shanghai Shyndec Pharmaceutical Co., Ltd. 6,494.93 13,719.11
Sinopharm Group Zhijun(Shenzhen) Pharmaceutical Co., Ltd. 4,400.00 -
Sinopharm Group Medicine Logistic Co., Ltd. 712.12 315.87
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd. 20.75 5.64
Sinopharm Group Xinjiang Special Drugs National
Pharmaceutical Co., Ltd. 10.00 10.00
Sinopharm Holding Shanxi Co., Ltd. 10.00 10.00
Sinopharm Holding Henan Co., Ltd. 7.25 1.01
Sinopharm Holding Sub Marketing Center Co., Ltd. 5.45 -
Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd. 4.85 4.85
Sinopharm Holding Jiaozuo Co., Ltd. 1.67 -
Wuhan Zhonglian Pharmaceutical Group Co., Ltd. 0.50 -
Sinopharm Group Co., Ltd. 0.40 0.40
China National Medicines Co., Ltd. 0.05 -
Sinopharm Health Online Co.,Ltd. - 68.30
Sinopharm Holding Fuzhou Co., Ltd. - 7.26
Shanghai Guoren Drug Store Co.,Ltd - 3.78
Beijing Electromechanical Device Group Corporation - 3.00
Shenzhen Zhijun Pharmaceutical Trade Co., Ltd. - 2.15
Sinopharm Holding Huangshan Health Industry Co., Ltd. - 0.94
11,667.97 14,152.32
2017 2016
RMB‘0,000 RMB‘0,000
Advances to suppliers
Hunan Minshengtang Investment Co., Ltd. 295.46 1,194.11
Sinopharm Group Xinjiang Special Drugs National
Pharmaceutical Co., Ltd. 189.65 193.46
China National Scientific Instruments & Materials Imp/Exp
Shenzhen Co., Ltd 127.11 -
Lijin Huang 31.81 -
Sinopharm Holding Sub Marketing Center Co., Ltd. 29.15 -
Sinopharm Holding Kashi New&Special Drugs Co., Ltd. 29.04 2.52
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Amounts due from related parties (Continued)
2017 2016
RMB‘0,000 RMB‘0,000
Advances to suppliers (continued)
Sinopharm Holding Xinjiang Xinte Karamay Pharmaceutical
Co., Ltd. 21.36 -
China National Medicines Co., Ltd. 12.81 4.94
Sinopharm Holding Beijing Co., Ltd. 11.75 9.66
Beijing Sinopharm Tianyuan Real Estate & Property
Management Co., Ltd. 5.18 -
Xinjiang Baitong Property Service Co., Ltd. 5.00 0.63
Sinopharm Xinjiang Pharmaceutical Co., Ltd. 4.17 4.17
Jinhua Gu 1.28 -
Sinopharm Holding Suzhou Co., Ltd. 1.03 0.37
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co.,
Ltd. 0.99 -
Winteam Pharmaceutical Group Ltd. 0.46 0.46
Sinopharm Holding Hunan Co., Ltd. 0.31 -
Wuhan Zhonglian Pharmaceutical Group Co., Ltd. 0.08 -
Chengdu Rongsheng Pharmacy Co., Ltd. 0.03 44.83
Sinopharm Group Zhijun (Shenzhen) PingShan
Pharmaceutical Co., Ltd. 0.02 0.02
Sinopharm Holding Shanxi Co., Ltd. - 302.78
Sinopharm Chongqing Pharmaceutical and Medical Industry
Design Institute - 265.22
China National Pharmaceutical Group Shanxi Co., Ltd. - 195.91
Shanghai Meitai Medical Instruments Co., Ltd. - 28.29
Shenzhen Jiufeng Investment Co., Ltd. - 15.00
Hangzhou Xihu Business Group Corporation - 12.65
Sinopharm Group Co., Ltd. - 11.72
Beijing Tongyu Information Technology Co., Ltd - 4.04
Xiaoyi Baicaotang Pharmacy Chain Store Co., Ltd. - 3.50
Sinopharm Group Xinjiang Pharmaceutical Co., Ltd. - 0.34
Sichuan Hexin Pharmaceutical Co., Ltd. - 0.20
Jiangsu Wanbang Pharmacy Marketing Co., Ltd. - 0.02
Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd. - -
Sinopharm Holding Chengdu Co., Ltd - -
766.69 2,294.84
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Amounts due from related parties were interest-free and unsecured, with no fixed terms of
repayment.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties
2017 2016
RMB‘0,000 RMB‘0,000
Accounts payable
Sinopharm Holding Sub Marketing Center Co., Ltd. 12,694.58 11,346.16
Sinopharm Group Co., Ltd. 8,931.55 6,936.35
Sinopharm Holding Shanxi Co., Ltd. 3,580.95 423.72
China National Medicines Co., Ltd. 3,580.44 3,523.37
Sino-Swed Pharmaceutical Corp.Ltd. 3,055.44 1,317.92
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd. 2,814.74 1,834.62
Sinopharm Le -Ren-Tang Medicine Co., Ltd. 2,701.00 2,676.36
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd. 1,981.23 1,905.41
Sinopharm Holding Lunan Co., Ltd. 1,347.05 -
Jiangsu Wanbang Pharmacy Marketing Co., Ltd. 1,071.08 1,119.81
Lanzhou Institute of Biological Products Co., Ltd. 1,068.00 678.00
China National Pharmaceutical Group Shanxi Co., Ltd. 972.62 1.75
Sinopharm Holding Pingdingshan Co., Ltd. 913.76 732.91
Shenzhen Main Luck Pharmaceutical Co., Ltd. 875.56 580.79
Sinopharm Holding Hulun Buir Co.,Ltd. 827.54 629.33
Sinopharm Holding Lerentang Pharmaceutical Co., Ltd 705.60 839.01
Sinopharm Holding Shenyang Co., Ltd. 680.64 631.15
Chongqing Yaoyou Pharmaceutical Co., Ltd. 654.44 770.08
Sinopharm Holding Jiangsu Co., Ltd. 647.33 485.92
Shanghai Merro Pharmaceutical Co., Ltd. 641.78 489.59
Shenzhen Wanwei Medicine trading Co., Ltd. 597.22 563.83
Sinopharm Lerentang Shijiazhuang Medicine Co., Ltd. 467.68 4.28
Sinopharm Holding Fujian Co., Ltd. 465.98 326.26
Chongqing Haisiman Pharmaceutical Co., Ltd. 465.81 530.35
Sinopharm Holding Xiamen Co.,Ltd. 429.71 511.63
Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd. 371.06 63.23
Sinopharm Holding Shanxi Instrument Branch Co., Ltd. 355.88 308.99
Sinopharm Holding Changzhou Medical logistics center Co., Ltd. 340.56 112.02
Sinopharm Holding Inner Mongolia Co., Ltd. 331.70 80.40
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
2017 2016
RMB‘0,000 RMB‘0,000
Accounts payable (Continued)
Sinopharm Holding Beijing Co., Ltd. 323.15 279.32
Sinopharm Holding Hunan Co., Ltd. 251.43 -
Sinopharm Holding Ningxia Co., Ltd. 236.72 357.99
Yichang Humanwell Pharmaceutical Co., Ltd. 235.06 195.74
Winteam Pharmaceutical Group Ltd. 201.17 208.77
Sinopharm Holding Changzhou Co., Ltd. 191.94 166.70
Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co., Ltd. 176.01 113.68
China Otsuka Pharmaceutical Co., Ltd. 168.72 43.80
China National Pharmaceutical Foreign Trade Co., Ltd. 165.23 165.12
Sinopharm Holding Beijing Huahong Co., Ltd. 155.16 105.54
Sinopharm Group Zhijun (Shenzhen) PingShan Pharmaceutical Co., Ltd. 151.76 35.11
Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co.,
Ltd. 138.99 48.62
Sinopharm Holding Suzhou Co., Ltd. 126.92 419.86
Sinopharm Holding Henan Co., Ltd. 89.45 1.64
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. 80.87 6.80
Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd. 71.47 -
Sinopharm Holding Jinan Co., Ltd. 63.88 19.37
Sinopharm Holding Xinjiang Xinte Karamay Pharmaceutical Co., Ltd. 62.83 40.35
Sinopharm Holding Dalian Co., Ltd. 58.75 8.36
Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd. 56.11 30.14
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd. 51.39 23.76
Sinopharm Holding Tianjin Co., Ltd. 47.37 0.89
Sinopharm Holding Wuxi Co., Ltd. 46.74 9.76
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd. 44.47 -
Sinopharm Holding Rizhao Co., Ltd. 42.58 -
Beijing Huamiao Pharmecurical Co., Ltd. 35.67 35.27
Wuhan Zhonglian Pharmaceutical Group Co., Ltd. 35.00 45.13
GuiZhou Tongjitang Pharmaceutical Co., Ltd. 33.86 12.54
Foshan Fengliaoxing Pharmaceutical Co., Ltd. 31.31 35.70
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
2017 2016
RMB‘0,000 RMB‘0,000
Accounts payable (Continued)
Shenyang Hongqi Pharmaceutical Co., Ltd. 30.62 15.06
Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co., Ltd. 28.02 -
Shanghai Shyndec Pharmaceutical Marketing Co., Ltd 27.45 69.67
Sinopharm Holding Kashi New&Special Drugs Co., Ltd. 26.97 22.37
Sinopharm Group Rongsheng Pharmaceutical Co., Ltd. 26.69 15.39
Sinopharm Holding Putian Co., Ltd. 25.89 6.67
Wuhan Zhonglian Pharmaceutical Group Co., Ltd. 25.73 0.88
Sinopharm Holding Yangzhou Co., Ltd. 24.42 15.36
Sinopharm Sanyi (Wuhu) Pharmaceutical Co., Ltd. 23.96 14.99
Beijing Huasheng Pharmaceutical Biotechnology Development Co., Ltd. 22.00 0.06
Sinopharm Holding Dezhou Co., Ltd. 21.13 15.82
Sinopharm Holding Jinzhou Co., Ltd. 17.02 23.40
Beijing Tongyu Information Technology Co., Ltd 16.30 -
Sinopharm Holding Chengdu Co., Ltd 16.24 -
Guizhou Longlife Pharmaceutical Co., Ltd. 14.48 -
Anhui Jingfang Pharmaceutical Co., Ltd. 14.25 20.11
Sinopharm Holding Anhui Co., Ltd. 11.45 -
Sinopharm Holding Quanzhou Co., Ltd. 11.31 10.02
Hutchison Whampoa Sinopharm Pharmaceuticals(Shanghai) Co.,Ltd 11.03 7.97
China National Pharmaceutical Industry Co., Ltd. 7.99 2.35
Sinopharm Holding Tongliao Co., Ltd. 7.07 -
Sinopharm YiBin Pharmaceuticals Co., Ltd. 6.47 6.49
Hunan Dongting Pharmaceutical Co., Ltd. 6.39 6.09
Sinopharm DeZhong (FoShan) Pharmaceutical Co., Ltd 5.83 5.83
Sinopharm Shantou Jinshi Pharmaceutical Co., Ltd 5.42 7.84
Jiangsu Huanghe Pharmaceutical Co., Ltd 5.40 5.47
Shangdong Lu Ya Pharmaceutical Co., Ltd. 5.28 5.28
Sinopharm GroupShanxi Co., Ltd. 4.41 70.74
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
2017 2016
RMB‘0,000 RMB‘0,000
Accounts payable (Continued)
Sinopharm Lerentang Qinhuangdao Medicine Co., Ltd. 4.21 3.94
Sinopharm Holding Erdos Co.,Ltd. 4.19 -
Sinopharm Holding Ulanqab Co., Ltd. 3.49 0.95
Sinopharm Holding Jiangxi Co., Ltd. 3.28 -
Sinopharm Group Guorui Medicine Co., Ltd. 3.10 4.54
Shanghai Modern Hasen (Shangqiu) Pharmaceutical Co., Ltd 3.09 3.09
Sinopharm Group Medicine Logistic Co., Ltd. 2.88 69.48
Sinopharm Group Chemical Reagent Co., Ltd. 2.70 -
Guangdong Medi-World Pharmacertical Co., Ltd. 2.66 2.66
Sichuan Jiangyouzhongbafuzi Technology Development Co., Ltd 2.52 -
Sinopharm Holding (Liaoning Province) Medical Instruments Co., Ltd. 2.47 2.49
Sinopharm Holding Biopharmaceutical(Tianjin)Co.,Ltd. 2.39 2.52
Sinopharm Holding Yongzhou Co., Ltd. 2.32 -
Sinopharm Holding Tianjin North Medicine Co., Ltd. 1.87 -
Sinopharm Group Shanghai Medicine Device Co., Ltd. 1.66 1.66
Sinopharm Holding Liaocheng Co., Ltd. 1.62 1.62
Shanghai Shyndec Pharmaceutical Co., Ltd. 1.28 1.42
Guilin South pharmaceutical Co., Ltd. 1.17 1.17
Sinopharm Holding Hubei Co., Ltd. 1.15 3.02
Sinopharm Holding Fuzhou Co., Ltd. 0.99 8.11
Sinopharm Holding Chongqing Co., Ltd. 0.92 -
Sinopharm Holding Xingsha Pharmaceutical (Xiamen) Co., Ltd. 0.87 1.68
Shanghai Chaohui Pharmecurical Co., Ltd. 0.81 0.89
Sinopharm Jiayuan International Trading Co., Ltd. 0.40 0.40
Changchun Changsheng Gene Pharmaceutical Co., Ltd. 0.30 1.42
Sinopharm Fengliaoxing（Foshan） Medicines Co.,Ltd. 0.28 0.01
Sinopharm Prospect Dentech (Beijing) Co., Ltd. 0.25 0.34
Wuhan Zhonglian Pharmaceutical Group Co., Ltd. 0.14 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
2017 2016
RMB‘0,000 RMB‘0,000
Accounts payable (Continued)
Sinopharm Holding Huaideju Pharmaceutical (Xiamen)Co., Ltd. 0.11 0.11
Sinopharm Group Zhijun(Shenzhen) Pharmaceutical Co., Ltd. 0.11 -
Yangzhou Weikang Pharmaceutical Co., Ltd. 0.08 2.33
Chengdu Rongsheng Pharmacy Co., Ltd. 0.08 44.88
Shenzhen Zhijun Pharmaceutical Trade Co., Ltd. 0.05 0.05
Sinopharm（Tianjin）Northern Meidical Equipment Co.,Ltd - 234.02
China National Scientific Instruments & Materials Imp/Exp Shenzhen
Co., Ltd - 59.93
Sinopharm Holding Huangshan Health Industry Co., Ltd. - 6.19
Sinopharm Holding Zhuhai Co., Ltd. - 5.02
Sinopharm ShanXi Ruifulai Pharmaceutical Co., Ltd - 1.59
China Medical Investment Co., Ltd. - 0.01
Sinopharm Holding Tianjin Distribution Center Co., Ltd. (2.44) 23.31
57,445.16 42,669.91
2017 2016
RMB‘0,000 RMB‘0,000
Notes payable
Sinopharm Holding Shanxi Co., Ltd. 5,503.09 7,569.51
China National Pharmaceutical Group Shanxi Co., Ltd. 2,148.97 2,098.17
China National Medicines Co., Ltd. 1,379.02 2,051.22
Sinopharm Holding Sub Marketing Center Co., Ltd. 1,001.06 26,806.54
Sinopharm Holding Fujian Co., Ltd. 891.54 375.57
Lanzhou Institute of Biological Products Co., Ltd. 660.00 360.00
Sinopharm Holding Xiamen Co.,Ltd. 656.28 994.40
Sinopharm Group Co., Ltd. 534.96 3,978.13
Chongqing Yaoyou Pharmaceutical Co., Ltd. 349.78 119.98
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
2017 2016
RMB‘0,000 RMB‘0,000
Notes payable (Continued)
Chongqing Haisiman Pharmaceutical Co., Ltd. 338.22 551.75
Sinopharm Lerentang Shijiazhuang Medicine Co., Ltd. 239.58 413.05
Sinopharm Holding Ningxia Co., Ltd. 170.00 150.00
Jiangsu Wanbang Pharmacy Marketing Co., Ltd. 154.34 -
Sinopharm Holding Shanxi Instrument Branch Co., Ltd. 135.30 102.52
Shenzhen Wanwei Medicine trading Co., Ltd. 124.35 116.40
Sinopharm Holding Lerentang Pharmaceutical Co., Ltd 102.96 126.88
Sinopharm Holding Putian Co., Ltd. 84.26 102.75
GuiZhou Tongjitang Pharmaceutical Co., Ltd. 61.05 31.61
Sinopharm Holding Quanzhou Co., Ltd. 58.75 -
Shanghai Shyndec Pharmaceutical Marketing Co., Ltd 50.94 46.93
Sinopharm Holding Chengdu Co., Ltd 39.25 -
Anhui Jingfang Pharmaceutical Co., Ltd. 38.68 5.61
Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd. 30.00 -
Shenyang Hongqi Pharmaceutical Co., Ltd. 23.70 21.71
Winteam Pharmaceutical Group Ltd. 21.11 39.03
Sinopharm Holding Tianjin Co., Ltd. 16.09 -
Sinopharm Group Rongsheng Pharmaceutical Co., Ltd. 12.93 22.87
Sinopharm Group Zhijun (Shenzhen) PingShan Pharmaceutical Co., Ltd. 10.99 45.59
Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co., Ltd. 9.99 236.33
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd. 6.90 42.71
Sinopharm Holding Tianjin North Medicine Co., Ltd. 0.83 -
China National Pharmaceutical Foreign Trade Co., Ltd. - 484.50
Sinopharm Holding Tianjin Distribution Center Co., Ltd. - 326.37
Sinopharm Holding Hunan Co., Ltd. - 220.51
Shenzhen Main Luck Pharmaceutical Co., Ltd. - 146.70
Sinopharm Holding Pingdingshan Co., Ltd. - 129.87
14,854.92 47,717.21
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
2017 2016
RMB‘0,000 RMB‘0,000
Other payables
China National Pharmaceutical Foreign Trade Co., Ltd. 1,250.54 3,058.32
Sinopharm Group Medicine Logistic Co., Ltd. 704.45 271.14
Shenyang Pharmaceutical Co., Ltd. 385.75 511.25
Sinopharm Group Co., Ltd. 259.69 262.22
China National Pharmaceutical Group Shanghai Co., Ltd. 188.32 166.04
Zhenfang Zhang 174.22 133.97
China Traditional Chinese Medicine Co. 130.00 130.00
Hunan Minshengtang Investment Co., Ltd. 127.81 -
Shanghai Beiyi Guoda pharmaceutical Co. Ltd. 86.74 49.66
Linyi Medical Group Co., Ltd. 66.92 -
Sinopharm Holding Tianjin Binhai Pharmaceutical Co., Ltd 17.23 17.23
Shanghai Tongyu Information Technology Co., Ltd. 13.20 -
Sinopharm Health Online Co.,Ltd. 12.36 514.42
Sinopharm Group Xinjiang Special Drugs National
Pharmaceutical Co., Ltd. 5.33 2.40
Sinopharm Holding Hunan Weian Drugstore Co.,Ltd. 5.10 -
Sinopharm Holding Sub Marketing Center Co., Ltd. 3.78 3.78
China National Scientific Instruments & Materials Imp/Exp
Shenzhen Co., Ltd 3.75 3.75
China National Pharmaceutical Logistics Co., Ltd. 0.52 0.52
China National Medicines Co., Ltd. 0.04 0.04
Sinopharm Holding Lunan Co., Ltd. - 500.00
Guangdong Overseas Chinese Medical Investment Co., Ltd. - 343.00
Pingdingshan Pusheng Pharmecurical Co., Ltd. - 123.78
Lerentang Investment Group Co., Ltd. - 100.00
Sinopharm Le -Ren-Tang Medicine Co., Ltd. - 73.99
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. - 23.80
Quanzhou Xintai Biotech Co., Ltd. - 3.56
Xinjiang Baitong Property Service Co., Ltd. - 1.45
Beijing Tongyu Information Technology Co., Ltd - 0.44
Sinopharm Holding Fujian Co., Ltd. (0.03) -
Sinopharm Holding Shanxi Co., Ltd. (23.18) -
3,412.54 6,294.76
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
2017 2016
RMB‘0,000 RMB‘0,000
Advances from customers
Sinopharm Holding Hainan Hongyi Co., Ltd. 24.68 -
Sinopharm Holding Zhangzhou Co., Ltd. 12.69 -
Sinopharm Holding Longyan Co., Ltd. 2.97 -
Sinopharm Holding Ningde Co., Ltd. 2.87 -
Sinopharm Holding Hunan Co., Ltd. 1.68 -
Sinopharm Holding Putian Co., Ltd. 1.65 -
Foshan Chancheng District Central Hospital 0.30 -
Sinopharm Holding Chengdu Co., Ltd 0.13 0.21
Sinopharm Holding Chongqing Co., Ltd. 0.08 0.08
Sinopharm Holding Gansu Co., Ltd. - 15.38
Sinopharm Holding Tibet Pharmaceutical Co., Ltd. - 15.05
Sinopharm Holding Shenyang Co., Ltd. - 5.42
Sinopharm Guangdong Medical Examination Co., Ltd. - 3.41
Sinopharm Holding Heilongjiang Co., Ltd. - 1.51
Shanghai Merro Pharmaceutical Co., Ltd. - 0.83
Sinopharm Holding Zhuhai Co., Ltd. - 0.33
Sinopharm Sichuan Pharmaceutical Co., Ltd. - 0.01
47.05 42.23
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
2017 2016
RMB‘0,000 RMB‘0,000
Interest payable
China National Pharmaceutical Group Corporation 3.54 3.78
Entrusted borrowings
China National Pharmaceutical Group Corporation 3,160.00 3,160.00
Short-term borrowings
Group Financial Co. - 10,866.35
Other non-current liabilities
Sinopharm Group 3,506.17 3,506.17
Current portion of long-term borrowings
Sinopharm Holding Financing Lease Co., Ltd. 503.87 481.13
Long-term payables
Sinopharm Holding Financing Lease Co., Ltd. 1,210.49 1,461.66
Other non-current assets
Hunan Minshengtang Investment Co., Ltd. 743.82 -
Amounts due to related parties were interest-free and unsecured, with no fixed terms of
repayment.
9. Cash deposit at related parties
2016 2015
RMB‘0,000 RMB‘0,000
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
Group Financial Co. 877.83 3,782.94
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
XI Commitments and contingencies
1. Commitments
(1) Capital commitments
Capital expenditures contracted for at the balance sheet date but not recognized in balance sheet
are analyzed as follows:
30 June 2017 31December 2016
RMB‘0,000 RMB‘0,000
Buildings, machinery and equipment 23.37 23.37
(2) Operating lease commitments
The future minimum lease payments due under the signed irrevocable operating leases contracts
are summarized as follows:
30 June 2017 31 December 2016
RMB‘0,000 RMB‘0,000
Within one year 38,992.44 43,114.45
Between 1 and 2 years 36,919.53 32,506.44
Between 2 and 3 years 29,609.94 28,045.89
Over 3 years 51,501.69 53,853.64
157,023.60 157,520.42
2. Contingencies
As of the balance sheet date, there were no contingencies that the Group was required to
disclose.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2017
(All amounts in Renminbi “RMB” unless otherwise stated)
XII Other significant events
1. Segment reporting
Operating segments
For management purpose, the Group is organized into business units based on its
product and service and has four reportable operating segments as follows:
a) The Head Office, which is mainly engaged in investing and managing business;
b) Pharmaceutical distribution segment, which is mainly engaged in the distribution
of medicine and pharmaceutical products to customers;
c) Retail pharmacy segment, which is the managing the operation of Guoda
Pharmacy;
Management monitors the results of the Group’s operating segments separately for the
purpose of making decisions about resource allocation and performance assessment.
Segment performance is evaluated based on reportable segment profit, which is a
measure of adjusted profit before tax. The adjusted profit before tax is measured
consistently with the Group’s profit before tax except that finance costs, dividend
income, non-operating income, non-operating expense, investment income, as well as
head office and corporate expenses are excluded from such measurement.
Inter-segment sales and transfers are transacted with reference to the selling prices
used in the transactions carried out with third parties at the then prevailing market
prices.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 31 December 2016
(All amounts in Renminbi “RMB” unless otherwise stated)
XII Other significant events (Continued)
2. Segment reporting (Continued)
Operating segments (Continued)
Operating segment information as at and for the semi year ended
Elimination between
Head Office Pharmaceutical distribution Retail Total
segments
Revenue of main operations 15,718,644,655.88 4,765,175,718.04 (111,722,618.57) 20,372,097,755.35
Cost of main operations (14,866,438,724.81) (3,596,037,992.26) 109,885,440.25 (18,352,591,276.82)
Investment income 146,027,810.88 (403,428.80) 1,051,657.82 - 146,676,039.90
Net profit 507,396,310.43 316,813,989.96 131,326,227.19 (356,002,788.56) 599,533,739.02
Total assets 9,373,030,718.70 15,108,811,562.44 5,026,099,732.47 (7,308,167,023.30) 22,199,774,990.31
Total liabilities (1,184,535,298.36) (10,485,307,888.25) (3,185,447,150.37) 2,005,762,614.31 (12,849,527,722.67)
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 31 December 2016
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements
1. Accounts receivable
30 June 2017 31 December 2016
Accounts receivable 555,881,489.08 397,468,897.94
Less: Bad debt provision (117,320.70) (117,320.70)
555,764,168.38 397,351,577.24
(a) The aging of accounts receivable and the related provision for bad debts is analyzed below:
30 June 2017 31 December 2016
Amount Provision for bad debts Amount Provision for bad debts
Within 1 year 555,764,168.38 - 397,351,577.24 -
1 to 2 years 116,855.40 (116,855.40) 117,320.70 (117,320.70)
2 to 3 years 465.30 (465.30) - -
555,881,489.08 (117,320.70) 397,468,897.94 (117,320.70)
(b) There were no increase, no reversal and no write-off of provision for bad for the six month ended
30 June 2017.
(c) The accounts receivable and related provision for bad debts by category are analyzed below:
30 June 2017 31 December 2016
Amount Provision for bad debts Amount Provision for bad debts
% of total % of total
amount rate amount rate
amount balance balance amount
Accounts
receivable with
similar credit
risk 555,764,168.38 99.98% - - 397,351,577.24 99.97% - -
individually not
significant but
individually
evaluated for
impairment 117,320.70 0.02% (117,320.70) 100.00% 117,320.70 0.03% (117,320.70) 100.00%
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 31 December 2016
(All amounts in Renminbi “RMB” unless otherwise stated)
555,881,489.08 100.00% (117,320.70) 0.02% 397,468,897.94 100.00% (117,320.70) 0.03%
As at 30 June 2017，there were no accounts receivable which were individually significant and for which the provision for bad debt was
separately recognized.
As at 30 June 2017, the top five accounts receivable by customer are summarised below:
Amount Bad debt provision amount % of the total accounts
receivable
The top five accounts receivable total 90,972,755.46 - 16.37
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 31 December 2016
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
2. Other receivables
(a) The other receivables by category are listed below:
30 June 2017 31 December 2016
Amounts due from subsidiaries and
related party 994,922,860.21 1,648,231,739.31
Receivable from equity transaction 8,980,000.00 8,980,000.00
Deposit 3,072,621.28 76,622,091.41
Others 66,843,818.84 77,865,449.94
1,073,819,300.33 1,811,699,280.66
Less: provision for bad debts (10,135,042.45) (10,131,429.16)
1,063,684,257.88 1,801,567,851.50
(b) The ageing of other receivables and related provision for bad debts is analyzed below:
30 June 2017 31 December 2016
Within 1 year 1,062,844,141.17 1,800,748,688.50
1 to 2 years 210,096.25 977,989.25
2 to 3 years 41,741.00 2,978.96
Over 3 years 10,723,321.91 9,969,623.95
1,073,819,300.33 1,811,699,280.66
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 31 December 2016
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
2. Other receivables (Continued)
(d) Other receivables and related provision for bad debts by category are analyzed below:
30 June 2017 31 December 2016
Carrying amount Bad debt provision Carrying amount Bad debt provision
% of % of
total total
amount amount amount rate amount amount amount rate
Individually
significant and
subject to
separate
impairment
assessment 8,980,000.00 0.84% (8,980,000.00) 100.00% 8,980,000.00 0.50% (8,980,000.00) 100.00%
Receivable
accounts with
similar credit
risk 1,063,849,676.38 99.07% (165,418.50) 0.02% 1,800,978,937.71 99.40% (11,661.41) -
Individually not
significant but
individually
evaluated for
impairment 989,623.95 0.09% (989,623.95) 100.00% 1,740,342.95 0.10% (1,139,767.75) 65.49%
1,073,819,300.33 100.00% (10,135,042.45) 0.94% 1,811,699,280.66 100.00% (10,131,429.16) 0.56%
(e) As at 30 June 2017, impairment provision for other receivables individually significant is analyzed as follows:
Assessment for
Amount Bad debt provision Rate impairment
Shenzhen Yinghai Technology Uncertainty in
Investment Co., Ltd. 8,980,000.00 (8,980,000.00) 100.00% recoverability
As at 31 December 2016, impairment provision for other receivables individually significant is analyzed as follows:
Assessment for
Amount Bad debt provision Rate impairment
Shenzhen Yinghai Technology Uncertainty in
Investment Co., Ltd. 8,980,000.00 (8,980,000.00) 100.00% recoverability
(f) Provisions for impairment of the receivables which has similar credit risk are analyzed below:
30 June 2017 31 December 2016
Carrying amount Bad debt provision Carrying amount Bad debt provision
Amount Amount Rate Amount Amount Rate
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 31 December 2016
(All amounts in Renminbi “RMB” unless otherwise stated)
Within 1
year 1,062,844,141.17 - - 1,800,748,688.50 - -
1 to 2
years 210,096.25 10,504.81 5.00% 227,270.25 (11,363.51) 5.00%
2 to 3
years 41,741.00 4,174.10 10.00% 2,978.96 (297.90) 10.00%
Over 3
years 753,697.96 150,739.59 20.00% - - -
1,063,849,676.38 165,418.50 0.02% 1,800,978,937.71 (11,661.41) -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 31 December 2016
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
2. Other receivables (Continued)
(g) As at 30 June 2017, the accumulated top five other receivables by customer are analysed below:
% of the total Bad debt
Nature Amount Aging other receivable provision
Entrusted Within 1 year
Sinopharm Yuexing borrowings 122,700,000.00 11.43% -
Dong Fang Uptodate & Entrusted Within 1 year
Special Medicines Co., borrowings
Ltd. 105,200,000.00 9.80% -
Entrusted Within 1 year
Suzhou Zhanjiang borrowings 97,000,000.00 9.03% -
Entrusted Within 1 year
Sinopharm Jiangmen borrowings 72,600,000.00 6.76% -
Entrusted Within 1 year
South Pharm & Trade borrowings 70,000,000.00 6.52% -
467,500,000.00 -
3. Long-term equity investments
30 June 2017 31 December 2016
Investments in subsidiaries (a) 5,568,049,364.21 4,590,216,730.30
Investments in associates (b) 1,461,015,653.97 1,364,255,871.80
7,029,065,018.18 5,954,472,602.10
Less: provision for impairment of long
-term equity investments (39,930,000.00) (39,930,000.00)
6,989,135,018.18 5,914,542,602.10
The long-term equity investments of the Company are not subject to restriction on conversion into cash.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 31 December 2016
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
3. Long-term equity investments (Continued)
(a) Subsidiaries
Original investment Increases
cost 31 December 2016 in investment cost 30 June 2017
Sinopharm Jianming 45,054,911.04 60,054,911.04 - 60,054,911.04
Sinopharm Shenzhen
5,400,000.00 15,450,875.93 - 15,450,875.93
Material
Shenzhen Logistics 900,000.00 5,019,062.68 - 5,019,062.68
Sinopharm Guangzhou 58,283,114.68 1,035,440,323.63 530,000,000.00 1,565,440,323.63
Sinopharm Hengxing 8,421,544.08 45,763,288.00 46,000,000.00 91,763,288.00
Sinopharm Liuzhou 21,407,965.79 21,407,965.79 - 21,407,965.79
Sinopharm Dongguan 2,742,000.00 17,942,000.00 55,000,000.00 72,942,000.00
Huixin Investment 109,416,937.72 64,416,937.72 - 64,416,937.72
Guangdong Logistics 1,269,502.30 10,596,006.21 3,000,000.00 13,596,006.21
Sinopharm Yuexing 16,459,326.27 113,459,326.27 130,000,000.00 243,459,326.27
Sinopharm Foshan 6,995,065.51 19,995,065.51 26,000,000.00 45,995,065.51
Sinopharm Guangxi 33,048,985.28 504,048,985.28 - 504,048,985.28
Sinopharm Zhanjiang 1,369,864.65 70,769,864.65 61,000,000.00 131,769,864.65
Sinopharm Yanfeng 38,207,800.00 38,207,800.00 - 38,207,800.00
Sinopharm Meizhou 4,481,900.00 21,281,900.00 30,000,000.00 51,281,900.00
Sinopharm Huizhou 20,939,177.19 16,644,200.00 20,000,000.00 36,644,200.00
Sinopharm Zhaoqing 5,060,000.00 18,060,000.00 25,000,000.00 43,060,000.00
Sinopharm Jiangmen 56,000,000.00 106,000,000.00 - 106,000,000.00
Sinopharm Zhongshan 10,000,000.00 10,000,000.00 20,000,000.00 30,000,000.00
Sinopharm Shaoguan 13,580,000.00 13,580,000.00 - 13,580,000.00
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 31 December 2016
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
3. Long-term equity investments (Continued)
(a) Subsidiaries (Continued)
Increases
Original investment cost 31 December 2016 in investment cost 30 June 2017
Sinopharm Shantou 7,490,000.00 10,990,000.00 13,000,000.00 23,990,000.00
Guangdong South
Pharmaceutical Foreign
Trade Co., Ltd.(i) 401,922,976.68 401,922,987.18 401,922,987.18
Guangdong Uptodate &
Special Medicines(i) 144,682,822.34 144,682,822.34 144,682,822.34
Guoda Pharmacy(i) 1,361,800,110.06 1,361,800,110.06 1,361,800,110.06
Foshan Nanhai Medicine Co.,
Ltd.(i) 462,682,298.01 462,682,298.01 462,682,298.01
Sinopharm Zhuhai 10,532,633.91 10,532,633.91 10,532,633.91
Maoming Yogshen 8,300,000.00 8,300,000.00 8,300,000.00
4,590,216,730.30 977,832,633.91 5,568,049,364.21
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 31 December 2016
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
3. Long-term equity investments (Continued)
(b) Associates
Movement
31 December Profit or loss under Provision of
2016 Investment the equity method Dividend declared Other 30 June 2017 impairment
(Note XIV(3)(b))
Main Luck
Pharmaceutical 207,259,086.90 27,151,517.06 (35,190,000.00) 199,220,603.96 - -
Sinopharm Zhuhai
(i) 1,420,139.96 - - (1,420,139.96) - -
Zhijun Suzhou (ii) 39,930,000.00 - - - 39,930,000.00 39,930,000.00
Zhijun Medicine(iii) 174,820,412.07 57,389,488.15 - - 232,209,900.22 -
Zhijun Trade (iii) 6,198,820.40 849,123.12 - - 7,047,943.52 -
Pingshan Medicine 47,087,958.31 14,858,166.27 - - 61,946,124.58 -
Shanghai Shyndec
Pharmaceutical
Co., Ltd. 887,539,454.16 55,590,445.85 (22,468,818.32) - 920,661,081.69 -
1,364,255,871.8
0 - 155,838,740.45 (57,658,818.32) (1,420,139.96) 1,461,015,653.97 39,930,000.00
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 31 December 2016
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
4. Sales and cost of sales
For the six month ended For the six month ended
30 June 2017 30 June 2016
Revenue of main operations 1,652,563,177.90 1,538,249,329.90
Other operating income 6,037,641.06 14,092,258.34
1,658,600,818.96 1,552,341,588.24
For the six month ended For the six month ended
30 June 2017 30 June 2016
Cost of main operations 1,597,779,406.09 1,482,565,579.59
Other operating expenses 2,868,183.37 11,402,822.51
1,600,647,589.46 1,493,968,402.10
5. Investment income
For the six month ended For the six month ended
30 June 2017 30 June 2016
Gain on long-term equity investment
under cost method 352,522,001.40 531,332,344.99
Gain on long-term equity investment
under equity method (Note
XIV(3)(b)) 155,838,740.45 24,377,006.76
Investment income from disposal of
other long-term equity investments - 63,351,000.00
508,360,741.85 619,060,351.75
196
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 31 December 2016
(All amounts in Renminbi “RMB” unless otherwise stated)
Supplementary information to financial statements
1. Schedule of non-recurring profit or loss
Amount for 30 June 2017
Gains and losses from disposal of non-current assets
including write off of accrued asset impairment 202,306.43
Government grants recognized in income statement for the current year, except for those closely
related to the ordinary operation of the Company which the Group enjoyed constantly according
to the allotment standards or quantitative criteria of the country 9,487,261.15
Net profit and loss arising from the subsidiaries acquired in the business combinations involving
enterprises under common control for the period from the beginning of the reporting period to the
combination date (1,096.00)
Reversal of bad debt provision for accounts receivable that were tested for
impairment individually 1,267,915.47
Profit or loss from outward entrusted borrowings 937,951.77
Income from entrusted management services 1,429,866.49
Impact on income tax 2,781,507.52
Impact on non-controlling interests after tax 670,769.60
9,871,928.19
Basis for preparation of detailed list of non-recurring profit or loss items:
Under the requirements in Explanatory announcement No. 1 on information disclosure by companies
offering securities to the public – non-recurring profit or loss (2008) (“Explanatory announcement No.1”)
from CSRC, nonrecurring profit or loss refer to those arising from transactions and events that are not
directly relevant to ordinary business, or that are relevant to ordinary business, but are so extraordinary that
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 31 December 2016
(All amounts in Renminbi “RMB” unless otherwise stated)
would have an influence on users of financial statements making proper judgments on the performance and
profitability of an enterprise.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 31 December 2016
(All amounts in Renminbi “RMB” unless otherwise stated)
Supplementary information to financial statements (Continued)
2. Return on equity (“ROE”) and earnings per share (“EPS”)
Weighted
average ROE Basic EPS (RMB)
(%)
Basic (Note 1)
2017
Net profit attributable to ordinary shareholders of the parent 6.41 1.299
Net profit after deducting non-recurring profit or loss attributable to 6.29 1.276
the Company’s ordinary shareholders of the parent
The above-mentioned return on net assets and earnings per share were calculated according to the
Information Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.9 –
Calculation and Disclosure of Return on Net Assets and Earnings Per Share (revision 2010) issued by the
CSRC.
Note 1: There were no potential dilutive ordinary shares for the six months ended 30 June 2017 hence no
presentation of diluted EPS were provided.
