Section IX Financial Reporting
Report of the Auditors
Consolidated financial statements for the six months ended 30 June 2021 haven’t
been audited.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED BALANCE SHEET
As at 30 June 2021
(Expressed in Renminbi Yuan)
ASSETS Note V 30 June 2021 31 December 2020
Current a ssets
Cash and bank balances 1
5,876,638,427.56 5,998,204,295.87
Notes receivable 2 606,070,192.39 622,115,477.04
Accounts receivable 3
17,761,176,449.25 13,799,971,014.22
Receivable financing 4 345,906,887.55 1,404,987,700. 38
Advances to suppliers 5 615,602,916.31 480,313,574.71
Other receivables 6
662,274,841.26 535,228,747.69
Incl: Dividend receivable - -
Inventories 7 7,219,658,618.62 6,285,010,674.46
Cont ract Assets 8
17,066,105.53 15,177,731.64
Other current assets 9 101,585,930.05 121,082,863.45
Total current assets 33,205,980,368.52 29,262,092,079.46
Non-current a ssets
Long-term equity investments 10
2,427,605,792.21 2,287,019,627.99
Other equity instrument investment 11 99,488,340.28 99,488,340.28
Other non-current financial
12 117,974, 908.51 120,972,350.24
assets
Investment properties 13
123,389,130.71 127,444,379.94
Fixed assets 14 840,386,519.64 854,191,083.27
Construction in progress 15 64,636,735.93 46,631,190.23
Right -of-use assets 16
2,523,874,174.71 2,356,952,392.99
Intangible assets 17 751,492,524.18 734,345,179.40
Goodwill 18 2,932,001,316.63 2,747,375,281.11
Long-term prepaid expenses 19
523,192,988.98 457,705,276.09
Deferred tax assets 20 96,595,749.33 92,118,767.81
Other non-current assets 21 484,259,854.32 408,197,522.84
Total non-current assets 10,984,898,035.43 10,332,441,392.19
Total assets 44,190,878,403.95 39,594,533,471.65
The accompanying notes form an integral part of these financial statements
1
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED BALANCE SHEET (Continued)
As at 30 June 2021
(Expressed in Renminbi Yuan)
LIABILITIES AND EQUITY Note V 30 June 2021 31 December 2020
Current liabilities
Short-term borrowings 22 4,632,933,904.39 1,612,187,020. 12
Notes payable 23
6,780,425,089.17 7,520,165,274. 69
Accounts payable 24
9,642,504,836.50 7,697,451,142. 50
Receipts in advance 25 14,868,097.97 12,352,466.64
Cont ract liabilities 26
316,827,151. 78 368,600,357.14
Employee benefits payable 27
242,205,983. 09 357,212,047.10
Tax payable 28 298,201,588. 13 316,867,149. 16
Other payables 29
1,531,899,017.87 1,599,166,881.14
Non-current liabilities due within one year 30
798,170,618. 10 748,732,059.89
Other current liabilities 31 22,432,447.97 24,787, 078. 55
Total current liabilities 24,280,468,734.97 20,257,521,476.93
Non-current liabilities
Long-term borrowings 32
61,633,794.44 31,637,173.89
Lease liabilities 33 1,361,131,352.80 1,303,054,163.90
Long-term payables 34 6,938,189.00 6,938,189.00
Long-term employee benefits payable 35
1,262,000.00 1,319,000.00
Provisions 36 68,663,166.79 68,808, 166. 79
Deferred income 37 91,315,333.89 89,843, 583. 37
Deferred tax liabilities 20
200,498,143. 67 205,921,408.66
Other non-current liabilities 38 630,839,755. 01 740,862,989.59
Total non-current liabilities 2,422,281,735.60 2,448,384,675.20
Total liabilities 26,702,750,470.57 22,705,906,152.13
The accompanying notes form an integral part of these financial statements
2
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED BALANCE SHEET (Continued)
As at 30 June 2021
(Expressed in Renminbi Yuan)
LIABILITIES AND EQUITY Note V 30 June 2021 31 December 2020
Equity
Share capital 39
428,126,983.00 428,126,983.00
Capit al surplus 40 4,372,043,185.43 4,372,504,053.72
Other comprehensive inc ome 41 38,547,872.62 38,483,017.72
Surplus reserve 42
214,063,491.50 214,063,491.50
Retained earnings 43 9,294,088,533.24 8,895,145,106.39
Total equity attributable to owners of
the parent
14,346,870,065.79 13,948,322,652.33
Non-cont rolling interests 3,141,257,867.59 2,940,304,667.19
Total equity 17,488,127,933.38 16,888,627,319.52
Total liabilities and equity
44,190,878,403.95 39,594,533,471.65
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:
3
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED INCOME STATEMENT (Continued)
For the six months ended 30 June 2021
(Expressed in Renminbi Yuan)
For the six months For the six months
Note V
ended 30 June 2021 ended 30 June 2020
Operating revenue 44 33,163,091,887.39 27,169,940,188.52
Less: Operating costs 44 29,216,837,201.07 23,971,029,719.44
Taxes and surc harges 45 75,989,854.58 69,505,309.32
Selling expenses 46 2,307,485,529.77 1,728,738,818.60
Administrative expenses 47 492,536,936.71 443,287,144.92
Finance costs 48 107,243,003.15 65,313,829.62
Incling: Interest expense 147,057,897.99 133,350,510.68
Interest income 38,758,729.78 65,512,550.22
Add: Interest expense 49 47,249,616.26 35,855,298.32
Investment income 50 156,587,066.32 105,206,349.26
Incling: Investment income from associates
157,696,397.81 133,604,904.16
Income from the derecognition of financial
assets measured at amortised cost
(7,039,046.60) (33,507,102.64)
Credit impairment losses 51
(28,664,985.44) (21,580,231.52)
Impairment losses 52
(416,915.26) (1,743,888.30)
Gain on disposal of assets 53 (588,799.55) 4,305,324.80
Operating profits 1,137,165,344.44 1,014,108,219.18
Add: Non-operating income 54 12,493,320.44 5,219,980.22
Less: Non-operating expenses 55 3,237,951.35 3,008,892.52
Total profit 1,146,420,713.53 1,016,319,306.88
Less: Income tax expenses 56 238,426,259.04 210,106,764.35
Net profit 907,994,454.49 806,212,542.53
Net Profit from continuing operations 907,994,454.49 806,212,542.53
Net profit attributable to owners of the parent 741,445,013.25 643,451,580.59
Profit or loss of non-controlling interests 166,549,441.24 162,760,961.94
4
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED INCOME STATEMENT (Continued)
For the six months ended 30 June 2021
(Expressed in Renminbi Yuan)
For the six months ended For the six months ended
Note V
30 June 2021 30 June 2020
Other comprehensive inc ome, net of tax 64,854.90 122,186.89
Other comprehensive inc ome, net of tax,
attributable to owners of the parent 64,854.90 122,186.89
Other comprehensive inc ome that will be
reclassified to profit or loss 64,854.90 122,186.89
Other comprehensive inc ome using the equity
method that will be reclassified to profit or loss
64,854.90 122,186.89
Total comprehensive income 908,059,309.39 806,334,729,42
Incl: Total comprehensive income
attributable to owners of the parent 741,509,868.15 643,573,767.48
Total comprehensive income
attributable to non-c ontrolling interests 166,549,441.24 162,760,961.94
Earnings per share
Basic earnings per share 1.73 1.50
Diluted earnings per share 1.73 1.50
The accompanying notes form an integral part of these financial statements
5
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2021
(Expressed in Renminbi Yuan)
Attributable to owners of the parent
For the s ix months e nde d 30 J une 2021 Other
comprehensive Non-controlling
Share capital Capital surplus income Surplus reserves Retained earnings Subtotal interests Total equity
I. Balance at end of prior year 428,126,983.00 4,372,504,053.72 38,483,017.72 214,063,491.50 8,895,145,106.39 13,948,322,652.33 2,940,304,667.19 16,888,627,319.52
Add: Business combination involving
entities under common control - - -
II. Balance at beginning of year 428,126,983.00 4,372,504,053.72 38,483,017.72 214,063,491.50 8,895,145,106.39 13,948,322,652.33 2,940,304,667.19 16,888,627,319.52
III. Changes for the year - (460,868.29) 64,854.90 - 398,943,426.85 398,547,413.46 200,953,200.40 599,500,613.86
(1) Total comprehensive income - - 64,854.90 - 741,445,013.25 741,509,868.15 166,549,441.24 908,059,309.39
(2) Owners’ contributions and
reduction in capital - (460,868.29) - - (460,868.29) 58,773,146.38 58,312,278.09
1. Capital contributions by owners - - - - - - 15,680,000.00 15,680,000.00
2. Others - (460,868.29) - - (460,868.29) 43,093,146.38 42,632,278.09
(3) Profit distribution - - - (342,501, 586.40)- (342,501,586.40) (24,369,387.22) (366,870,973.62)
1.Distribution to equity owners - - - (342,501,586.40)- (342,501,586.40) (24,369,387.22) (366,870,973.62)
IV. Balance at end of year 428,126,983.00 4,372,043,185.43 38,547,872.62 214,063,491.50 9,294,088,533.24 14,346,870,065.79 3,141, 257, 867.59 17,488 ,127,933. 38
The accompanying notes form an integral part of these financial statements
6
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY(Continued)
For the six months ended 30 June 2021
(Expressed in Renminbi Yuan)
Attributable to owners of the parent
For the s ix months e nde d 30 J une 2020 Other
comprehensive Non-controlling
Share capital Capital surplus income Surplus reserves Retained earnings Subtotal interests Total equity
I. Balance at end of prior year 428,126,983.00 4,363,007,511.57 45,917,342.77 214,063,491.50 7,755,295,537.08 12,806,410,865.92 2,553,426,974.31 15,359,837,840.23
Add: Business combination involving
entities under common control - 107,759,447.87 - - (3,029,877.91) 104,729,569.96 109,412,866.52 214,142,436.48
II. Balance at beginning of year 428,126,983.00 4,470,766,959.44 45,917,342.77 214,063,491.50 7,752,265,659.17 12,911,140,435.88 2,662,839,840.83 15,573,980,276.71
III. Changes for the year - (97,854,894.55) 122,186.89 - 386,575,390.79 288,842,683.13 154,985,375.48 443,828,058.61
(1) Total comprehensive income - - 122,186.89 - 643,451,580.59 643,573,767.48 162,760,961.94 806,334,729.42
(2) Owners’ contributions and
reduction in capital - (97,854,894.55) - - (97,854,894.55) 10,931,276.73 (86,923,617.82)
1. Capital contributions by owners - - - - - -
2. Others - (97,854,894.55) - - (97,854,894.55) 10,931,276.73- (86,923,617.82)
(3) Profit distribution - - - - (256,876,189.80) (256,876,189.80) (18,706,863.19) (275,583,052.99)
1.Distribution to equity owners - - - - (256,876,189.80) (256,876,189.80) (18,706,863.19) (275,583,052.99)
IV. Balance at end of year 428,126,983.00 4,372,912,064.89 46,039,529.66 214,063,491.50 8,138,841,049.96 13,199,983,119.01 2,817,825,216.31 16,017,808,335.32
The accompanying notes form an integral part of these financial statements
7
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 June 2021
(Expressed in Renminbi Yuan)
For the six months ended For the six months
Note V
30 June 2021 ended 30 June 2020
1.CASH FLOWS FROM OPE RA TING A CTIV ITIES
Cash received from sales of good and the
rendering of services 32,800,434,055.12 27,735,103,033.02
Receipts of taxes and surcharges refunds 9,380,253.27 8,145,306.66
Other cash receipts relating to operating activities 57 368,590,875.46 707,202,110.00
Total cash inflows from operating activities 33,178,405,183.85 28,450,450,449.68
Cash payments for goods and services
28,541,885,459.35 24,305,374,637.56
Cash payments to and on behalf of employees
1,708,255,657.44 1,278,474,969.40
Payments of all types of taxes and surcharges 766,110,586.13 724,722,540.88
Other cash payments relating to operating
57
activities 932,780,197.36 703,674,258.49
Total cash outflows from operating activities 31,949,031,900.28 27,012,246,406.33
Net cash flows from operating activities 58 1,229,373,283.57 1,438,204,043.35
2.CASH FLOWS FROM INVES TING ACTIVITIES
Cash receipts from ret urns of investments
2,997,441.73 19,027,649.76
Cash receipts from ret urns on investments 22,643,935.31 84,166,102.10
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets 537,887.38 4,352,536.98
Other cash receipts relating to investing activities 57 54,984.60 22,040,000.00
Total cash inflows from investing activities
26,234,249.02 129,586,288.84
The accompanying notes form an integral part of these financial statements
8
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED CASH FLOW STATEMENT (Continued)
For the six months ended 30 June 2021
(Expressed in Renminbi Yuan)
For the six months ended For the six months
Note V
30 June 2021 ended 30 June 2020
2.CASH FLOWS FROM INVES TING ACTIVITIES (Continued)
Cash payments to acquire fixed assets, intangible
assets and other long-term assets 145,820,319.98 116,186,214.91
Cash payments for investments 70,724,113.00 20,545,399.15
Net cash payments for ac quisition of subsidiaries
and other business units 100,950,637.41 659,201,491.65
Other cash payments relating to investing activities - -
Total cash outflows from investing activities 317,495,070.39 795,933,105.71
Net cash flows from investing activities (291,260,821.37) (666,346,816.87)
3.CASH FLOWS FROM FINA NCING ACTIV ITIES
Cash proceeds from investments by others 15,680,000.00 -
Incl: Cash receipts from capital cont ributions from
non-controlling interests of subsidiaries 15,680,000.00 -
Cash receipts from borrowings 915,684,894.52 589,920,037.57
Other cash receipts relating to financing activities 57 104,090,555.62 334,349,840.06
Total cash inflows from financing activities 1,035,455,450.14 924,269,877.63
Cash repayments for debts
511,076,477.58 284,200,000.00
Cash payments for distribution of dividends or
profit and interest expenses 492,345,229.08 432,276,651.88
Incl: Dividends or profit paid to non-controlling
shareholders of subsidiaries 22,846,959.82 10,890,773.58
Other cash payments relating to financing
57 838,045,248.87 1,405,111,664.26
activities
Total cash outflows from financing activities 1,841,466,955.53 2,121,588,316.14
Net cash flows from financing activities (806,011,505.39) (1,197,318,438.51)
The accompanying notes form an integral part of these financial statements
9
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED CASH FLOW STATEMENT (Continued)
For the six months ended 30 June 2021
(Expressed in Renminbi Yuan)
For the six months For the six months
Note V
ended 30 June 2021 ended 30 June 2020
4.EFFECT OF FORE IGN E XCHA NGE RA TE CHA NGES
ON CAS H AND CASH EQUIVALENTS 392,002.63 (47,935.97)
5.NE T INCREASE/ DECREASE IN CAS H AND CASH 58
EQUIVALENTS 132,492,959.44 (425,509,148.00)
Add: Cash and cash equivalents at beginning of the year 5,405,113,257.99 8,426,071,170.16
6.CASH AND CAS H EQUIVALE NTS AT E ND OF YEAR 58
5,537,606,217.43 8,000,562,022.16
The accompanying notes form an integral part of these financial statements
10
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY BALANCE SHEET
As at 30 June 2021
(Expressed in Renminbi Yuan)
ASSETS Note XIV 30 June 2021 31 December 2020
Current assets
Cash and bank balances 3,365,069,497.52 3,020,909,473.71
Notes receivable
64,759, 826. 01 30,984,449.44
Accounts receivable 1 701,273,128.58 609,575,301.13
Receivables financing 2,436,398.01 30,248,631.32
Advances to suppliers
4,566,924.77 6,722,204.59
Other receivables 2 3,467,427,719.16 3,562,309,346.07
Inventories 189,783,318.68 172,275,777.63
Current Assets
103,944.56 139,154.54
Other current assets 39,482.38 39,482.38
Total current assets 7,795,460,239.67 7,433,203,820.81
Non-current assets
Long-term equity investments 3 8,014,254,485.09 7,873,668,245.16
Other non-current financial assets
117,974,908.51 120,972,350.24
Investment properties 1,436,098.78 1,452,132.04
Fixed assets
12,027,831. 98 13,279,902.76
Right -of-use assets
4,581,076.34 5,142,755.88
Intangible assets 5,801,168.94 4,622,268.00
Long-term prepaid expenses
4,189,589.43 4,335,802.92
Deferred tax assets
9,245,324.81 9,025,057.52
Other non-current assets 36,250,241.84 12,967,715.50
Total non-current assets 8,205,760,725.72 8,045,466,230.02
Total assets 16,001,220,965.39 15,478,670,050.83
The accompanying notes form an integral part of these financial statements
11
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY BALANCE SHEET (Continued)
As at 30 June 2021
(Expressed in Renminbi Yuan)
LIABILITIES AND SHAREHOLDERS’
30 June 2021 31 December 2020
EQUITY
Current liabilities
Short-term borrowings
878,608,520.99 157,892,942.24
Notes payable
393,434,370.38 756,364,719.49
Accounts payable 507,406,947.28 407,275,713.49
Cont ract liabilities
8,566,647.98 1,807,562.61
Employee benefits payable
34,107,984.22 36,672,344.48
Tax payables 16,253,302.56 13,975,905.04
Other payables
2,720,704,209.77 3,167,152,583.28
Non-current liabilities due within one year
1,078,862.94 1,056,120.58
Other current liabilities 1,434,414.00 636,200.63
Total current liabilities 4,561,595,260.12 4,542,834,091.84
Non-current liabilities
Long-term borrowings
31,633,794.44 31,637,173.89
Lease liabilities
3,909,950.01 4,455,967.97
Long-term payables 800,000.00 800,000.00
Deferred income
603,137.94 827,658.18
Other non-current liabilities 22,866,538.58 11,042.52
Total non-current liabilities 59,813,420.97 37,731,842.56
Total liabilities 4,621,408,681.09 4,580,565,934.40
The accompanying notes form an integral part of these financial statements
12
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY BALANCE SHEET (Continued)
As at 30 June 2021
(Expressed in Renminbi Yuan)
LIABILITIES AND SHAREHOLDERS’
30 June 2021 31 December 2020
EQUITY
Shareholders’ equity
Share capital
428,126,983.00 428,126,983.00
Capit al surplus
4,467,530,563.30 4,467,991,431.59
Other comprehensive inc ome (63,178.42) (128,033.32)
Surplus reserve
214,063,491.50 214,063,491.50
Retained earnings 6,270,154,424.92 5,788,050,243.66
Total shareholders’ equity 11,379,812,284.30 10,898,104,116.43
Total liabilities and shareholders’ equity 16,001,220,965.39 15,478,670,050.83
The accompanying notes form an integral part of these financial statements
13
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY INCOME STATEMENT
For the six months ended 30 June 2021
(Expressed in Renminbi Yuan)
For the six months For the six months
Note XIV
ended 30 June 2021 ended 30 June 2020
Operating revenue 4 2,078,370,123.36 1,772,487,363.56
Less: Operating costs 4 1,991,420,311.80 1,689,564,062.24
Taxes and surc harges 2,488,284.74 2,582,640.86
Selling expenses 35,959,501.73 31,376,377.04
Administrative expenses 46,619,035.09 43,060,479.75
Finance costs (55,486,414.78) (43,838,117.34)
Incl: Interest expense 27,864,903.28 21,928,061.34
Interest income 83,409,776.86 66,569,319.85
Add: Other incomes 1,931,159.58 629,921.47
Investment income 5 780,364,601.71 749,633,760.78
Incl: Investment income from associates 157,696,473.52 133,549,495.38
Income from the derecognition of financial
assets measured at amortised cost (221,815.32) (1,526,968.25)
Credit impairment losses (123,032.41) (976,022.96)
Impairment losses (281,770.77) (242,731.87)
Gain on disposal of assets 80,996.38 -
Operating profits 839,341,359.27 798,786,848.43
Add: Non-operating income 408,885.12 1,596.77
Less: Non-operating expenses - 52,122.72
Total profit 839,750,244.39 798,736,322.48
Less: Income tax expenses 15,144,476.73 9,645,280.09
Net profit 824,605,767.66 789,091,042.39
Profit or loss from continuing operations 824,605,767.66 789,091,042.39
Other comprehensive inc ome, net of tax 64,854.90 122,186.89
Other comprehensive inc ome that will be reclassified
to profit or loss 64,854.90 122,186.89
Other comprehensive inc ome using the equity
method that will be reclassified to profit or loss 64,854.90 122,186.89
Total comprehensive income 824,670,622.56 789,213,229.28
The accompanying notes form an integral part of these financial statements
14
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2021
(Expressed in Renminbi Yuan)
Other comprehensive
For the six months ended 30 June 2021 Share capital Capit al surplus Surplus reserve Retained earnings Total equity
income
I. Balance at end of prior year 428,126,983.00 4,467,991,431.59 (128,033.32) 214,063,491.50 5,788,050,243.66 10,898,104,116.43
II. Changes for the year - (460,868.29) 64,854.90 - 482,104,181.26 481,708,167.87
(1) Total comprehensive income - - 64,854.90 - 824,605,767.66 824,670,622.56
(2) Owners’ contributions and reduction in capital - (460,868.29) - - - (460,868.29)
1.Others - (460,868.29) - - - (460,868.29)
(3) Profit distribution - - - - (342,501,586.40) (342,501,586.40)
1. Distribution to owners - - - - (342,501,586.40) (342,501,586.40)
III. Balance at end of year 428,126,983.00 4,467,530,563.30 (63,178.42) 214,063,491.50 6,270,154,424.92 11,379,812,284.30
The accompanying notes form an integral part of these financial statements
15
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY STATEMENT OF CHANGES IN EQUITY (Continued)
For the six months ended 30 June 2021
(Expressed in Renminbi Yuan)
Other comprehensive
For the six months ended 30 June 2020 Share capital Capit al surplus Surplus reserve Retained earnings Total equity
income
I. Balance at end of prior year 428,126,983.00 4,468,385,307.32 (133,366.19) 214,063,491.50 4,996,184,257.34 10,106,626,672.97
II. Changes for the year - 14,135.44 122,186.89 - 532,214,852.59 532,351,174.92
(1) Total comprehensive income - - 122,186.89 - 789,091,042.39 789,213,229.28
(2) Owners’ contributions and reduction in capital - 14,135.44 - - - 14,135.44
1.Others - 14,135.44 - - - 14,135.44
(3) Profit distribution - - - - (256,876,189.80) (256,876,189.80)
1. Distribution to owners - - - - (256,876,189.80) (256,876,189.80)
III. Balance at end of year 428,126,983.00 4,468,399,442.76 (11,179.30) 214,063,491.50 5,528,399,109.93 10,638,977,847.89
The accompanying notes form an integral part of these financial statements
16
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY CASH FLOW STATEMENT
For the six months ended 30 June 2021
(Expressed in Renminbi Yuan)
For the six months For the six months
ended 30 June 2021 ended 30 June 2020
1.CASH FLOWS FROM OPE RA TING A CTIV ITIES
Cash received from sales of good and the
rendering of services 2,051,451,080.04 1,959,922,054.30
Other cash receipts relating to operating activities 31,548,087.03 56,400,693.21
Total cash inflows from operating activities 2,082,999,167.07 2,016,322,747.51
Cash payments for goods and services 1,882,952,590.62 1,808,113,785.36
Cash payments to and on behalf of employees 61,431, 053. 37 56,731,764.12
Payments of all types of taxes and surcharges 36,319, 473. 82 34,728,524.87
Other cash payments relating to operating
activities 11,443, 446. 22 36,411,653.42
Total cash outflows from operating activities 1,992,146,564.03 1,935,985,727.77
Net cash flows from operating activities 90,852,603.04 80,337,019.74
2. CASH FLOWS FROM INVES TING A CTIV ITIES
Cash receipts from ret urns of investments 2,997,441.73 32,664,096.76
Cash receipts from ret urns on investments 214,065,210.12 252,042,116.93
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets 339,163.00 -
Other cash receipts relating to investing activities 2,324,825,373.52 1,575,127,297.73
Total cash inflows from investing activities 2,542,227,188.37 1,859,833,511.42
Cash payments for acquisition of fixed assets,
intangible assets and other long-term assets 2,302,398.23 10,386,641.64
Other cash payments relating to investing
activities 2,155,040,000.00 1,309,671,874.11
Total cash outflows from investing activities 2,157,342,398.23 1,320,058,515.75
Net cash flows from investing activities 384,884,790.14 539,774,995.67
The accompanying notes form an integral part of these financial statements
17
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY CASH FLOW STATEMENT (Continued)
For the six months ended 30 June 2021
(Expressed in Renminbi Yuan)
For the six months For the six months
ended 30 June 2021 ended 30 June 2020
3. CASH FLOWS FROM FINA NCING ACTIV ITIES
Cash receipts from borrowings 280,000,000.00 32,264,821.52
Other cash receipts relating to financing activities 18,653,623,031.33 16,113,679,647.75
Total cash inflows from financing activities 18,933,623,031.33 16,145,944,469.27
Cash repayments for debts 30,164,821.52 43,700,000.00
Cash payments for distribution of dividends or
profit and interest expenses 363,151,913.01 272,655,694.83
Other cash receipts relating to financing activities 18,673,121,608.99 15,582,101,156.66
Total cash outflows from financing activities 19,066,438,343.52 15,898,456,851.49
Net cash flows from financing activities (132,815,312.19) 247,487,617.78
4.EFFECT OF FORE IGN E XCHA NGE RA TE
CHA NGES ON CASH A ND CASH
EQUIVALENTS 392,002.63 (47,935.97)
5. NET INCREASE IN CASH AND CAS H
EQUIVALENTS 343,314,083.62 867,551,697.22
Add: Cash and cash equivalents at beginning of
the year 3,020,909,473.71 2,894,333,956.38
6. CASH AND CASH EQUIVALENTS
AT END OF YEAR 3,364,223,557.33 3,761,885,653.60
The accompanying notes form an integral part of these financial statements
18
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2021
(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 Febr uary
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
RMB428.13 million as at 30 June 2021
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 asset 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 RMB1.00. The shares shall not be transferred within 36 months since the
issue day. The total number of shares of the Company was 362,631,943 since the date of issue.
19
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
I Profile of the Company (Continued)
(1) Historical development and basic information (Continued)
The Company acquired the companies under common control, including Sinopharm Holding Guoda
Drugstore Co., Ltd. (“Guoda Drugstore”), Foshan Nanhai Medicine Group Co., Ltd. (“Foshan Nanhai”),
Guangdong South Pharmaceutical Foreign Trade Co., Ltd. (“South Pharma & Trade”) and 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.
to acquire the non-controlling interest of South Pharma & Trade. The above transactions were
completed on 31 December 2016, and the relevant shares were successfully issued and lis ted on 5
January 2017. Afterwards, the total number of shares of the Company increased to 428,126,983.
As of 30 June 2021, the total share capital was RMB428.13 million.
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 RMB428.13 million. 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, biochemic al 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; trading 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 leasing 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; and limited projects has to be approved before operating).
20
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
I Profile of the Company (Continued)
(2) The Group’s parent and ultimate parent companies are Sinopharm Group and China National
Pharmaceutical Group Corporation (“CNPGC”) , respectively.
(3) These financial statements were authorized for issue by the board of directors of the Company
on 13 August 2021.
(4) Subsidiaries consolidated in the financial statements for the current period and change in the
consolidation scope are shown in Note VI.
II Basis of preparation
The financial statements were prepared in accordance with the Basic Standard and specific standards
of Accounting Standards for Business Enterprises issued by the Ministry of Finance and the specific
accounting standards, application guidance, interpretation and other relevant regulations issued or
amended thereafter (hereafter collectively referred to as “Accounting Standards for Business
Enterprises” or “CAS”).
These financial statements are prepared on a going concern basis. Except for certain financial
instruments, the financial statements have been prepared using the historical cost as the principle of
measurement. Where assets are impaired, provisions for asset impairment are made in accordance
with the relevant requirements.
21
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates
The Group determines the specific accounting policies and estimates based on its features of
production and operation, primarily comprising the methods of provision for expected credit losses on
receivables, valuation of inventories, depreciation of fixed assets and amortisation of intangible assets,
the measurement model of investment properties, recognition and measurement of revenue, etc.
(1) Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the year ended 30 June 2021 are in compliance with
Accounting Standards for Business Enterprises, and truly and completely present the financial position
of the Group and the Company as of 30 June 2021 and the operating results, cash flows and other
information for the six months ended 30 June 2021 of the Group and the Company.
(2) Accounting year
The Company’s accounting year begins on 1 January and ends on 31 December.
(3) Business cycle
The Company’s operating cycle is 12 months.
(4) Functional currency
The Group’s functional and presentation currency is Renminbi (RMB). The currency unit is RMB Yuan
unless otherwise stated.
(5) Business combinations
Business combinations are classified into business combinations involving enterprises under common
control and business combinations not involving enterprises under common control.
(a) Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business combination in which
all of the combining enterprises are ultimately controlled by the same party or parties both before and
after the combination, and that control is not transitory. In a business combination involving enterprises
under common control, the enterprise that, at the combination date, obtains control of another
combining enterprise is the absorbing enterprise, while that other combining enterprise is the enterprise
being absorbed. The combination date is the date on which the absorbing enterprise effectively obtains
control on the enterprise being absorbed.
The assets and liabilities (including goodwill arising from the ultimate controlling party’s acquisition of
the enterprise being absorbed) that are obtained by the absorbing enterprise in a business combination
involving enterprises under common control shall be measured on the basis of their carrying amounts in
the financial statements of the ultimate controlling party at the combination date. 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 capital premium under capital reserves and the balance transferred from capital reserves
under the old accounting system. If the capital premium is not sufficient to absorb the difference, any
excess shall be adjusted against retained earnings.
22
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(5) Business combinations (Continued)
(b) Business combinations involving enterprises not under common control
A business combination not involving enterprises under common control is a business combination in
which all of the combining enterprises are not ultimately controlled by the same party or parties both
before and after the combination. In a business combination not involving enterprises under common
control, the enterprise that, on the acquisition date, obtains control of another combining enterprise is
the acquirer, while that other combining enterprise is the acquiree. The acquisition date is the date on
which the acquirer effectively obtains control of the acquiree.
The acquirer shall measure the acquiree’s identifiable assets, liabilities and contingent liabilities
acquired in the business combination at their fair values on the acquisition date.
Goodwill is initially recognised and measured at cost, being the excess of the aggregate of the fair value
of the consideration transferred (or the fair value of the equity securities issued) and any fair value of
the Group’s previously held equity interest in the acquiree over the Group’s interest in the fair value of
the acquiree’s net identifiable assets. After initial recognition, goodwill is measured at cost less any
accumulated impairment losses. Where the aggregate of the fair value of the consideration transferred
(or the fair value of the equity securities issued) and any fair value of the Group’s previously held equity
interest in the acquiree is lower than the Group’s interest in the fair value of the acquiree’s net
identifiable assets, the Group reassesses the measurement of the fair value of the acquiree’s
identifiable assets, liabilities and contingent liabilities and the fair va lue of the consideration transferred
(or the fair value of the equity securities issued), together with the fair value of the Group’s previously
held equity interest in the acquiree. If after that reassessment, the aggregate of the fair value of the
consideration transferred (or the fair value of the equity securities issued) and the Group’s previously
held equity interest in the acquiree is still lower than the Group’s interest in the fair value of the
acquiree’s net identifiable assets, the Group recognises the remaining difference in profit or loss.
Where the business combination not involving enterprises under common control 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 the fair value and carrying amount recognised 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. For financial assets at fair value through OCI held before the acquisition date, changes in fair
value that were accumulated through OCI will transfer to retained earnings.
23
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(6) Preparation of consolidated financial statements
The scope of the consolidated financial statements, which include the financial statements of the
Company and all of its subsidiaries, is determined on the basis of control. A subsidiary is an entity that
is controlled by the Company (such as an enterprise, a deemed separate entity, or a structured entity
controlled by the Company).
In the preparation of the consolidated financial statements, the financial statements of subsidiaries are
prepared for the same accounting year as the Company, using consistent accounting policies. All intra-
group assets and liabilities, equity, income, expenses and cash flows relating to transactions between
members of the Group are eliminated in full on consolidation.
Where the loss for the current period attributable to non-controlling interests of a subsidiary exceeds the
non-controlling interests of the opening balance of equity of the subsidiary, the excess shall still be
allocated against the non-controlling interests.
For subsidiaries acquired through business combinations not involving entities under common control,
the financial performance and cash flows of the acquiree shall be consolidated from the date on which
the Group obtains control, and continue to be consolidated until the date such control ceases. While
preparing the consolidated financial statements, the Group shall adjust the subsidiary’s financial
statements, on the basis of the fair values of the identifiable assets, liabilities and contingent liabilities
recognised on the acquisition date.
For subsidiaries acquired through business combinations involving entities under common control, the
financial performance and cash flows of the entity being absorbed shall be consolidated from the
beginning of the period in which the combination occurs. While preparing the comparative financial
statements, adjustments are made to related items in the financial statements for the prior period as if
the reporting entity after the combination has been in existence since the date the ultimate controlling
party first obtained the control.
The Group reassesses whether or not it controls an investee if any change in facts and circumstances
indicates that there are changes to one or more of the three elements of control.
When the Group loses control of a subsidiary in multiple transactions in which it disposes of its long-
term equity investment in the subsidiary in stages, if each of the multiple transactions does not form part
of a bundled transaction, the transactions conducted before the loss of control of the subsidiary are
accounted for in accordance with the accounting policy for partial disposal of the equity investment in
subsidiaries where control is retained. If each of the multiple transactions forms part of a bundled
transaction which eventually results in the loss of control in the subsidiary, these multiple transactions
are accounted for as a single transaction. In the consolidated financial statements, the difference
between the consideration received and the corresponding proportion of the subsidiary’s net assets
(calculated continuously from the acquisition date) in each transaction prior to the loss of control shall
be recognised in other comprehensive income and transferred to profit or loss when the parent
eventually loses control of the subsidiary.
24
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(7) Cash and cash equivalents
Cash comprises the Group’s cash on hand and bank deposits that can be readily withdrawn on demand.
Cash equivalents are short-term, highly liquid investments that are readily convertible into known
amounts of cash, and are subject to an insignificant risk of changes in value.
(8) Foreign currency transactions and foreign currency translation
The Group translates foreign currency transactions into its functional currency.
At the balance sheet date, monetary items denominated in foreign currencies are translated into RMB
using the spot exchange rates on the balance sheet date. Exchange differences arising from these
translations are recognised in profit or loss for the current period, except for those attributable to foreign
currency borrowings that have been taken out specifically for the acquisition or construction of
qualifying assets, which are capitalized as part of the cost of those assets. Non-monetary items
denominated in foreign currencies that are measured at historical cost are translated at the balance
sheet date using the spot exchange rates at the dates of the transactions.
Foreign currency cash flows are translated using the spot exchange rates prevailing on the dates of
cash flows. The effect of exchange rate changes on cash is presented separately in the cash flow
statement.
(9) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
Recognition and derecognition
The Group recognises a financial asset or a financial liability when it becomes a party to the contractual
provisions of a financial instrument.
25
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(9) Financial instruments (Continued)
Recognition and derecognition (Continued)
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e., removed from the Group’s consolidated balance sheet) when:
(1) the rights to receive cash flows from the financial asset have expired; or
(2) the Group has transferred its rights to receive cash flows from the financial asset, or has
assumed an obligation to pay the received cash flows in full without material delay to a third
party under a “pass-through” arrangement; and either (i) has transferred substantially all the
risks and rewards of the financial asset, or (ii) has neither transferred nor retained substantially
all the risks and rewards of the asset, but has transferred control of the financial asset.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled, or
expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as a derecognition of the original liability and a recogniti on of a new
liability, and the difference between the respective carrying amounts is recognised in profit or loss.
Regular way purchases and sales of financial assets are recognised and derecognised using trade date
accounting. Regular way purchases or sales are purchases or sales of financial assets that require
delivery within the period generally established by regulation or convention in the marketplace. The
trade date is the date that the Group committed to purchase or sell a financial asset.
Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset’s contractual
cash flow characteristics and the Group’s business model for managing them: financial assets at f air
value through profit or loss, financial assets at amortised cost and financial assets at fair value through
other comprehensive income. All affected related financial assets will be reclassified only if the Group
changes its business model for managing financial assets.
Financial assets are measured at fair value on initial recognition, but accounts receivable or notes
receivable arising from the sale of goods or rendering of services that do not contain significant
financing components or for which the Group has applied the practical expedient of not adjusting the
effect of a significant financing component due within one year, are initially measured at the transaction
price.
For financial assets at fair value through profit or loss, relevant transac tion costs are directly recognised
in profit or loss, and transaction costs relating to other financial assets are included in the initial
recognition amounts.
26
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(9) Financial instruments (Continued)
Classification and measurement of financial assets (Continued)
The subsequent measurement of financial assets depends on their classification as follows:
Debt investments measured at amortised cost
The Group measures financial assets at amortised cost if both of the following conditions are met: the
financial asset is held within a business model with the objective to hold financial assets in order to
collect contractual cash flows; the contractual terms of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at amortised cost are subsequently measured using the effective interest method and
are subject to impairment. Gains and losses are recognised in profit or loss when the asset is
derecognised, modified or impaired.
Debt investments at fair value through other comprehensive income
The Group measures debt investments at fair value through other comprehensive income if both of the
following conditions are met: the financial asset is held within a business model with the objective of
both holding to collect contractual cash flows and selling; the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding. Interest income is recognised using the effective interest method. The
interest income, impairment losses and foreign exchange revaluation are recognised in profit or loss.
The remaining fair value changes are recognised in other comprehensive income. Upon derecognition,
the cumulative fair value change recognised in other comprehensive income is recycled to profit or loss.
Equity investments at fair value through other comprehensive income
The Group can elect to classify irrevocably its equity investments which are not held for trading as
equity investments designated at fair value through other comprehensive income. Only the relevant
dividend income (excluding the dividend income explicitly recovered as part of the investment cost) is
recognised in profit or loss. Subsequent changes in the fair value are included in other comprehensive
income, and no provision for impairment is made. When the financial asset is derecognised, the
accumulated gains or losses previously included in other comprehensive income are transferred from
other comprehensive income to retained earnings.
Financial assets at fair value through profit or loss
The financial assets other than the above financial assets measured at amortised cost and financial
assets at fair value through other comprehensive income are classified as financial assets at fair value
through profit or loss. Such financial assets are subsequently measured at fair value with net changes
in fair value recognised in profit or loss except for the derivatives designated as hedging instruments in
an effective hedge.
Only when an accounting mismatch is eliminated or significantly decreased, financial assets are
designated as financial assets at fair value through profit or loss at initial recognition.
27
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(9) Financial instruments (Continued)
Classification and measurement of financial assets (Continued)
When an enterprise initially designates a financial asset as a financial asset at fair value through profit
or loss, it cannot be reclassified to other financial assets; and other financial assets cannot be re-
designated after initial recognition as financial assets measured at fair value through profit or loss.
Classification and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into financial liabi lities at fair value
through profit or loss, other financial liabilities or derivatives designated as effective hedging
instruments. For financial liabilities at fair value through profit or loss, relevant transaction costs are
directly recognised in profit or loss, and transaction costs relating to other financial liabilities are
included in the initial recognition amounts.
The subsequent measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading (including
derivative instruments attributable to financial liabilities) and financial liabilities designated upon initial
recognition as at fair value through profit or loss. Financial liabilities held for trading (including
derivative instruments attributable to financial liabilities) are subsequently measured at fair value. All
changes in fair value of such financial liabilities are recognised in profit or loss except for the derivatives
designated as hedging instruments in an effective hedge. Financial liabilities designated at fair value
through profit or loss are subsequently measured at fair value and gains or losses are r ecognised in
profit or loss, except for the gains or losses arising from the Group’s own credit risk which are presented
in other comprehensive income. If gains or losses arising from the Group’s own credit risk which are
presented in other comprehensive income will lead to or expand accounting mismatch in profit or loss,
the Group will include all the changes in fair value (including the amount affected by changes in the
Group’s own credit risk) of such financial liabilities in profit or loss.
Only if one of the following conditions is met can financial liabilities be designated as financial liabilities
at fair value through profit or loss on initial recognition:
(1) It can eliminate or significantly reduce the accounting mismatch.
(2) The formal written document of the risk management or investment strategy has stated that the
portfolio of financial instruments is managed, evaluated and reported to key managers on the
basis of fair value.
(3) The financial liability is a hybrid instrument that contains one or more embedded derivatives,
unless the embedded derivatives have no significant change in the cash flows of the hybrid
instrument, or the embedded derivatives should obviously not be separated from the related
hybrid instruments.
(4) Mixed instruments contain embedded derivatives that need to be split but cannot be measured
separately at the time of acquisition or on subsequent balance sheet days.
When an enterprise designates a financial liability as a financial liability at fair value through profit or
loss, it cannot be reclassified as other financial liabilities; nor can other financial liabilities be re-
designated as financial liabilities at fair value through profit or loss after initial recognition.
28
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(9) Financial instruments (Continued)
Classification and measurement of financial liabilities (Continued)
Other financial liabilities
After initial recognition, such financial liabilities are measured at amortised cost using the effective
interest method.
Impairment of financial assets
Based on the expected credit losses (“ECLs”), the Group recognises an allowance for ECLs for the
financial assets measured at amortised cost, debt investments at fair value through other
comprehensive income, and contract assets.
For trade receivables and contract assets that do not contain a significant financing component, the
Group applies the simplified approach to recognise a loss allowance based on lifetime ECLs.
For trade receivables and contract assets that contain a significant financing component, the Group
chooses to adopt the simplified approach to recognise a loss allowance based on lifetime ECLs.
Except for financial assets which apply the simplified approach as mentioned above and other financial
assets, the Group assesses whether the credit risk has increased significantly since initial recognition at
each balance sheet date. If the credit risk has not increased significantly since initial recognition (stage
1), the loss allowance is measured at an amount equal to 12-month ECLs by the Group and the interest
income is calculated according to the carrying amount and the effective interest rate; if the credit risk
has increased significantly since initial recognition but are not credit-impaired (stage 2), the loss
allowance is measured at an amount equal to lifetime ECLs by the Group and the interest income is
calculated according to the carrying amount and the effective interest rate; if such financial assets are
credit-impaired after initial recognition (stage 3), the loss allowance is measured at an amount equal to
lifetime ECLs by the Group and the interest income is calculated according to the amortised cost and
the effective interest rate. If the credit risk of financial instruments is low at the balance sheet date, the
Group assumes that the credit risk has not increased significantly since initial rec ognition.
The Group evaluates the expected credit losses on financial instruments on a single and combined
basis. Taking into account the credit risk characteristics of different customers, the Group evaluates the
expected credit losses on accounts receivable based on the aging portfolio.
Refer to Note X (3) for the disclosure of the Group's criteria for judging the significant increase in credit
risk, the definition of assets with impaired credit losses, and the assumption of measuring expected
credit losses.
When the Group no longer reasonably expects to be able to recover all or part of the contract cash
flows of the financial assets, the Group directly writes down the carrying amount of the financial asset.
29
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(9) Financial instruments (Continued)
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset the recognised amounts; and there is an intention to
settle on a net basis, or to realise the assets and settle the liabilities simultaneously.
Transfer of financial assets
A financial asset is derecognised when the Group has transferred substantially all the risks and rewards
of the asset to the transferee. A financial asset is not derecognised when the Group retains
substantially all the risks and rewards of the financial asset.
When the Group has neither transferred nor retained substantially all the risks and rewards of the
financial asset, it either (i) derecognises the financial asset and recognises the assets and liabilities
created in the transfer when it has not retained control of the asset; or (ii) c ontinues to recognise the
transferred asset to the extent of the Group's continuing involvement, in which case, the Group also
recognises 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 financial asset and the guarantee amount.
The guarantee amount is the maximum amount of consideration that the Group could be required to
repay.
(10) Notes receivables
For details of the method for determining the expected credit loss of notes receivable, please refer to
Note V (9) “Financial instruments - Impairment of financial instruments”.
(11) Accounts receivables
For details of the method for determining the expected credit loss of accounts receivable, please refer
to Note V (9) “Financial instruments - Impairment of financial instruments”.
(12) Receivable financing
It includes notes receivable and accounts receivables designated at fair value through other
comprehensive income as at balance sheet date.
For details of the method for determining the expected credit loss of receivables financing, please refer
to Note V (9) “Financial instruments - Impairment of financial instruments”.
(13) Other receivables
For details of the method for determining the expected credit losses of other receivables, please refer to
Note V (9) “Financial instruments - Impairment of financial instruments”.
30
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(14) Inventories
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.
Inventories are initially carried at cost. Cost of inventories comprises all costs of purchase, costs of
conversion and other costs. Cost is determined on the weighted average basis. Turnover materials
include low value consumables and packing materials, which are on the immediate write-off basis.
The Group adopts the perpetual inventory system.
At the balance sheet date, inventories are stated at the lower of cost and net realisable value. The
inventories are written down below cost to net realisable value and the write-down is recognised in profit
or loss if the cost is higher than the net realisable value. When the circumstances that previously
caused the inventories to be written down below cost no longer exist, in which case the net realisable
value of inventories becomes higher than the carrying amount, the amount of the write-down is
reversed. The reversal is limited to the amount of the original write-down, and is recognised in profit or
loss.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated
costs of completion and the estimated costs necessary to make the sale and relevant taxes. Finished
goods are written down item by item.
(15) Contract assets
The Group presents contract assets or contract liabilities depending on the relationship between the
satisfaction of its performance obligations and the customer’s payment in the balance sheet. The
Group offsets the contract assets and contract liabilities under the same contract and presents the net
amount.
A contract asset is the right to consideration in exchange for goods or services that the Group has
transferred to a customer, and that right is conditioned on something other than the passage of time.
For details of how the Group measures and accounts for the ECLs of a contract asset, refer to Note V
(10) “Financial instruments - Impairment of financial instruments”.
(16) Assets relating to contract cost
The Group’s contract cost assets include the costs to obtain and fulfil a contract and are classified as
inventories, other current assets and other non-current assets by liquidity.
The Group recognises as an asset the incremental costs of obtaining a contract with a customer if the
Group expects to recover those costs, unless the amortisation period of the asset is one year or less.
31
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(16) Assets relating to contract cost (Continued)
Other than the costs which are capitalised as inventories, fixed assets and intangible assets, etc., costs
incurred to fulfil a contract with a customer are capitalised as an asset if all of the following criteria are
met:
(1) the costs relate directly to a contract or to an anticipated contrac t, including direct labour, direct
materials, overheads (or similar expenses), costs that are explicitly chargeable to the customer
and other costs that are incurred only because an entity entered into the contract;
(2) the costs generate or enhance resources of the Group that will be used in satisfying
performance obligations in the future; and
(3) the costs are expected to be recovered.
The contract cost asset is amortised and charged to profit or loss on a systematic basis that is
consistent with the pattern of the revenue to which the asset related is recognised.
The Group accrues provisions for impairment and recognises impairment losses to the extent that the
carrying amount of a contract cost asset exceeds:
(1) the remaining amount of consideration that the entity expects to receive in exchange for the
goods or services to which the asset relates; less
(2) the costs that are expected to be incurred to transfer those related goods or services.
The Group recognises in profit or loss a reversal of the impairment loss previously recognised to the
extent that the difference between (1) and (2) exceeds the carrying amount of the asset due to the
subsequent changes of the factors causing asset impairment in previous periods, but the carrying
amount after the reversal does not exceed the carrying amount of the asset at the reversal date if no
impairment loss is otherwise recognised.
(17) Long-term equity investments
Long-term equity investments include equity investments in subsidiaries, joint ventures and associates.
32
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(17) Long-term equity investments (Continued)
A long-term equity investment is initially measured at its initial investment cost on acquisition. For long-
term equity investments arising from business combination involving enterprises under common control,
the initial investment cost shall be the share of the carrying amount of equity of the acquiree in the
consolidated financial statements of the ultimate controlling party as at the combination date. The
difference between the initial investment cost and book value of consideration of combination is
adjusted to capital reserves, and to retained earnings if capital reserves is insufficient. Other
comprehensive income recognised before the combination date is accounted for on the same basis as
would have been required if the investee had directly disposed of the related assets or liabilities. Equity
previously recognised resulting from the investee’s equity changes other than profit or loss, other
comprehensive income and profit distribution is reclassified to profit or loss. Equity which still involves a
long-term investment after disposal is reclassified to profit or loss on a pro-rata basis and equity which
swiches to a financial instrument after disposal is fully reclassified to profit or loss. For long-term equity
investments arising from business combination involving enterprises not under common control, the
investment cost shall be the combination cost. (For a business combination achieved in stages, the
initial investment cost is determined as the sum of the carrying amount of equity of the acquiree and the
additional investment costs on the combination date.) The combination cost involves the assets paid by
the acquirer, liabilities incurred and the fair value of equity securities. Other comprehensive incomes
recognised using the equity method before the combination date is accounted for on the same basis as
would have been required if the investee had directly disposed of the related assets or liabilities. Equity
previously recognised resulting from the investee’s equity changes other than profit or loss, other
comprehensive income and profit distribution is reclassified to profit or loss. Equity whi ch still involves a
long-term investment after disposal is reclassified to profit or loss on a pro-rata basis and equity which
swiches to a financial instrument after disposal is fully reclassified to profit or loss. The accumulated
changes in the fair value of financial assets at fair value through other comprehensive income is
reclassified to retained earnings when adopting the cost method. Depending on the way of acquisition
of long-term equity investments, the initial investment cost is determined as follows: For long-term
equity investments acquired by way of cash payment, the initial investment cost includes all directly
associated expenses, applicable taxes and fees, and other necessary expenses. For long-term equity
investments acquired by way of issuing equity securities, the initial investment cost includes the fair
value of equity securities. For long-term equity investments acquired by way of the swap of non-
monetary assets, the initial investment cost shall be determined in accordance with “ASBE No. 7 —
Swap of Non-monetary Assets.” For long-term equity investments acquired by way of debt restructuring,
the initial investment cost shall be determined in accordance with “ASBE No. 12 — Debt Restructuring.”
For a long-term equity investment where the Company can exercise control over the investee, the long-
term investment is accounted for using the cost method in the Company’s individual financial
statements. Control is achieved when the Group is exposed, or has rights, to variable returns from its
involvement with the investee and has the ability to affect those returns through its power over the
investee.
Under the cost method, the long-term equity investment is measured at its initial investment cost.
When additional investment is made or the investment is recouped, the cost of long-term equity
investment is adjusted accordingly. Cash dividends or profit distributions declared by the investee are
recognised as investment income in profit or loss.
33
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(17) Long-term equity investments (Continued)
The equity method is adopted when the Group has joint control, or exercises significant influence over
the investee. Joint control is the contractually agreed sharing of control of an arrangement, which exists
only when decisions about the relevant activities require the unanimous consent of the parties sharing
control. Significant influence is the power to participate in the financial and operating policy decisions of
the investee, but is not control or joint control with other parties over those policies.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the
Group’s interest in the fair value of the investee’s identifiable net assets at the acquisition date, no
adjustment is made to the initial investment cost. Where the initial investment cost is less than the
Group’s interest in the fair values of the investee’s identifiable net assets at the acquisition date, the
difference is charged to profit or loss, and the cost of the long-term equity investment is adjusted
accordingly.
Under the equity method, after it has acquired a long-term equity investment, the Group recognises its
share of the investee’s profit or loss, as well as its share of the investee’s other comprehensive income,
as investment income or loss and other comprehensive income, and adjusts the carrying amount of the
investment accordingly. The Group recognises its share of the investee’s profit or loss after making
appropriate adjustments to the investee’s profit or loss based on the fair value of the investee’s
identifiable assets at the acquisition date, using the Group’s accounting policies and periods.
Unrealised profits and losses from transactions with its joint ventures and associates are eliminated to
the extent of the Group’s investments in the associates or joint ventures (except for assets that
constitute a business) (However, any loss arising from such transactions which are attributable to an
impairment loss shall be recognised at its entirety). The carrying amount of the investment is reduced
based on the Group’s share of any profit distributions or cash dividends declared by the investee. The
Group’s share of net losses of the investee is recognised to the extent that the carrying amount of the
investment together with any long-term interests that in substance form part of its net investment in the
investee is reduced to zero, except that the Group has the obligations to assume further losses. The
Group’s owner’s equity changes, other than those arising from the investee’s profit or loss, other
comprehensive income or profit distribution, is recognised in the Group’s equity, and the carrying
amount of the long-term equity investment is adjusted accordingly.
Upon disposal of a long-term equity investment, the difference between the proceeds actually received
and the carrying amount is recognised in profit or loss. For a long-term equity investment accounted for
using the equity method, when the Group discontinues using the equity method due to disposal, all
amounts previously recognised in other comprehensive income are accounted for on the same basis as
would have been required if the investee had directly disposed of the related assets or liabilities. Equity
previously recognised resulting from the owner’s equity changes other than profit or loss, other
comprehensive income and profit distribution is reclassified to profit or loss in its entirety. When the
Group continues to use the equity method, the amounts previously recognised in other comprehensive
income are accounted for on the same basis as would have been required if the investee had directly
disposed of the related assets or liabilities and reclassified to profit or loss on a pro-rata basis. Equity
previously recognised resulting from the investee’s equity changes other than profit or loss, other
comprehensive income and profit distribution is reclassified to profit or loss on a pro-rata basis.
34
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(18) Investment properties
Investment properties are properties held to earn rental income and/or for capital appreciation.
Investment properties include land use rights leased out, land use rights held for transfer upon capital
appreciation, and buildings leased out.
An investment property is measured initially at cost. If the economic benefits relating to an investment
property will probably flow in and the cost can be reliably measured, subsequent costs incurred for the
property are included in the cost of the investment property. Otherwise, subsequent costs are
recognised in profit or loss as incurred.
The Group adopts the cost model for subsequent measurement of investment properties. Buildings and
land use rights are depreciated or amortized to their estimated net residual values over their estimated
useful lives. The estimated useful lives, the estimated net residual values that are expressed as a
percentage of cost and the annual depreciation (amortization) rates of investment properties are as
follows:
Estimated useful lives Estimated residual value Annual depreciation
(amortization) rates
Buildings and 5-35 years 0-5% 2.71-19.00%
Constructions
Land use rights 40-50 years or No fixed - 2.00-2.50%
useful life
When an investment property is transferred to owner-occupied property, it is reclassified as a fixed
asset or intangible asset at the date of 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 transfer.
The investment properties’ useful life, net residual value and depreciation (amortization) method applied
are reviewed and adjusted as appropriate at the end of each year.
(19) Fixed assets
Recognition criteria
A fixed asset is recognised only when the economic benefits associated with the asset will probably
flow into the Group and the cost of the asset can be measured reliably. Subsequent expenditures
incurred for a fixed asset that meets the recognition criteria shall be included in the cost of the fixed
asset, and the carrying amount of the component of the fixed asset that is replaced shall be
derecognised. Otherwise, such expenditures are recognised in profit or loss as incurred. Fixed assets
are initially measured at cost, by taking into account the effect of any asset retirement obligations. The
cost of a purchased fixed asset comprises the purchase price, relevant taxes and any directly
attributable expenditure for bringing the asset to working condition for its intended use. The Group
reviews the useful life and estimated net residual value of a fixed asset and the depreciation method
applied at least at each year end, and make adjustments if necessary.
35
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(19) Fixed assets (Continued)
Depreciation method
Estimated useful lives Estimated residual value Annual depreciation
rates
Buildings and constructtions 10-40 years 3-5% 2.38-9.70%
Machinery and
equipment 5-14 years 3-5% 6.79-19.40%
Motor vehicles 3-10 years 5% 9.50-31.67%
Office equipments 3-10 years 5% 9.50-31.67%
Electronic equipments 3-10 years 0-5% 9.50-33.33%
(20) Construction in progress
The cost of construction in progress is determined according to the actual expenditures incurred for the
construction, including all necessary construction expenditures incurred during the construction period,
borrowing costs that shall be capitalised before the construction is ready for its intended use, and other
relevant expenditures.
An item of construction in progress is transferred to fixed assets when the asset is ready for its intended
use.
(21) Borrowing costs
Borrowing costs are interest and other costs incurred by the Group in connection with the borrowing of
the funds. Borrowing costs include interest, amortisation of discounts or premiums related to
borrowings, ancillary costs incurred in connection with the arrangement of borrowings, and exchange
differences arising from foreign currency borrowings.
The borrowing costs that are directly attributable to the acquisition, construction or production of a
qualifying asset are capitalised. The amounts of other borrowing costs incurred are recognised as an
expense in the period in which they are incurred. Qualifying assets are assets (fixed assets, investment
properties, inventories, etc.) that necessarily take a substantial period of time of acquisition,
construction or production to get ready for their intended use or sale.
The capitalisation of borrowing costs commences only when all of the following conditions are satisfied:
(1) expenditures for the asset have been incurred;
(2) borrowing costs have been incurred; and
(3) activities that are necessary to acquire, construct or produce the asset for its intended use or
sale have been undertaken.
Capitalisation of borrowing costs ceases when the qualifying asset being acquired, constructed or
produced gets ready for its intended use or sale. Any borrowing costs subsequently incurred are
recognised in profit or loss.
36
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(21) Borrowing costs (Continued)
During the capitalisation period, the amount of interest eligible for capitalisation for each accounting
period shall be determined as follows:
(1) where funds are borrowed specifically for the purpose of obtaining a qualifying asset, the
amount of interest eligible for capitalisation is the actual interest costs incurred on that
borrowing for the period less any bank interest earned from depositing the borrowed funds
before being used on the asset or any investment income on the temporary investment of those
funds; or
(2) where funds are borrowed generally for the purpose of obtaining a qualifying asset, the amount
of interest eligible for capitalisation is determined by applying a weighted average interest rate
on the general borrowings to the weighted average of the excess of the cumulative
expenditures on the asset over the expenditures on the asset funded by the specific
borrowings.
Capitalisation of borrowing costs is suspended during periods in which the acquisition, construction or
production of a qualifying asset is suspended abnormally by activities other than those necessary to get
the asset ready for its intended use or sale, when the suspension is for a continuous period of more
than 3 months. Borrowing costs incurred during these periods are recognised as an expense in profit or
loss until the acquisition, construction or production is resumed.
(22) Right-of-use assets
The right-of-use assets of the Group mainly include buildings, machinery, vehicles, office equipments
and other equipments (such as land use right).
At the commencement date of the lease, the Group recognises a right-of-use asset. The cost of the
right-of-use asset comprises: (i) the amount of the initial measurement of the lease liability; (ii) any
lease payments made at or before the commencement date of the lease less any lease incentives
received; (iii) any initial direct cost incurred; and (iv) an estimate of costs incurred by the lessee in
dismantling and removing the underlying asset, restoring the site on which it is located or restoring the
underlying asset to the condition required by the terms and conditions of the lease. The right-of-use
assets are depreciated on a straight-line basis subsequently by the Group. If the Group is reasonably
certain that the ownership of the underlying asset will be transferred to the Group at the end of the
lease term, the Group depreciates the asset from the commencement date to the end of the useful life
of the asset. Otherwise, the Group depreciates the assets from the commencement date to the earlier
of the end of the useful life of the asset or the end of the lease term.
The Group remeasures the lease liability at the present value of the changed lease payments and
adjusts the carrying amount of the right-of-use assets accordingly, when the carrying amount of the
right-of-use asset is reduced to zero, and there is a further reduction in the measurement of the lease
liability, the Group recognises the remaining amount of the remeasurement in profit or loss.
37
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(23) Intangible assets
An intangible asset shall be recognised only when it is probable that the economic benefits associated
with the asset will flow to the Group and the cost of the asset can be measured reliably. Intangible
assets are measured initially at cost. However, intangible assets acquired in a business combination
not involving entities under common control with a fair value that can be measured reliably are
recognised separately as intangible assets and initially measured at the fair value at the date of
acquisition.
The useful life of an intangible asset is determined according to the period over which it is expected to
generate economic benefits for the Group. An intangible asset is regarded as having an indefinite
useful life when there is no foreseeable limit to the period over which the asset is expected to generate
economic benefits for the Group.
The useful lives of the intangible assets are as follows:
Categories Useful lives
Land use rights Between the approved useful period and the
Company’s operating period
Software 3-10 years
Trademarks and 10 years or No fixed life
Brand use rights
Distribution network 10-20 years
Franchising rights 10 years
Favorable leases 16-20 years
Land use rights that are purchased by the Group are accounted for as intangible assets. Buildings, such
as plants that are developed and constructed by the Group, and relevant land use rights are accounted
for as fixed assets and intangible assets, respectively. Payments for the land and buildings purchased
are allocated between the land use rights and the buildings; they are accounted for as fixed assets if
they cannot be reasonably allocated.
An intangible asset with a finite useful life is amortised using the straight-line method over its useful life.
For an intangible asset with a finite useful life, the Group reviews the useful life and amortisation
method at least at each year end and makes adjustment if necessary.
Land use rights allocated by the State are regarded as an intangible asset with an indefinite useful life
due to an uncertain useful life. The impairment test should be conducted for the intangible assets with
the indefinite service life every year to determine whether the impairment exists. The intangible assets
with the indefinite service life shall not be amortized, and the Company shall make the review of the
service life of the intangible assets during every accounting period. If evidence prove that useful lives
are finite, the Group accounts for the intangible assets in accordance with intangible assets with a finite
useful life.
38
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(23) Intangible assets (Continued)
Internal research and development project
The Group classifies the expenses for internal research and development as research costs and
development costs. All research costs are charged to the current profit or loss as incurred. Expenditure
incurred on projects to develop new products is capitalised and deferred only when the Group can
demonstrate the technical feasibility of completing the intangible asset so that it will be available for use
or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future
economic benefits (including demonstration that the product derived from the intangible asset or the
intangible asset itself will be marketable or, in the case of internal use, the usefulness of the intangible
asset as such), the availability of technical and financial resources to complete the project and pr ocure
the use or sale of the intangible asset, and the ability to measure reliably the expenditure during the
development. Product development expenditure which does not meet these criteria is expensed when
incurred.
Development costs previously recognised as expenses are not recognised 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 f or its intended
use.
(24) Impairment of long-term assets
The Group determines the impairment of assets, other than the impairment of inventories, investment
properties measured using the fair value model, deferred tax assets, financial assets and assets
classified as held for sale, using the following methods:
The Group assesses at the balance sheet date whether there is any indication that an asset may be
impaired. If any indication exists that an asset may be impaired, the Group estimates the recoverable
amount of the asset and performs impairment testing. Goodwill arising from a business combination
and an intangible asset with an indefinite useful life are tested for impairment at least at each year end,
irrespective of whether there is any indication that the asset may be impaired. Intangible assets that
have not been ready for their intended use are tested for impairment each year.
The recoverable amount of an asset is the higher of its fair value less costs to sell and the present value
of the future cash flows expected to be derived from the asset. The Group estimates the recoverable
amount on an individual basis unless it is not possible to estimate the recoverable amount of the
individual asset, in which case the recoverable amount is determined for the asset group to which the
asset belongs. Identification of an asset group is based on whether major cash inflows generated by
the asset group are largely independent of the cash inflows from other assets or asset groups.
When the recoverable amount of an asset or asset group is less than its carrying amount, the carrying
amount is reduced to the recoverable amount by the Group. The reduction in the carrying amount is
treated as an impairment loss and recognised in profit or loss. A provision for impairment loss of the
asset is recognised accordingly.
39
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(24) Impairment of long-term assets (Continued)
For the purpose of impairment testing, the carrying amount of goodwill acquired in a business
combination is allocated from the acquisition date on a reasonable basis, to each of the related asset
groups unless it is impossible to allocate to the related asset groups, in which case it is allocated to
each of the related sets of asset groups. Each of the related asset groups or sets of asset groups is an
asset group or a set of asset groups that is expected to benefit from the synergies of the business
combination and shall not be larger than a reportable segment determined by the Group.
When testing an asset group (a set of asset groups) to which goodwill has been allocated for
impairment, if there is any indication of impairment, the Group firstly tests the asset group (set of asset
groups), excluding the amount of goodwill allocated, for impairment, i.e., the Group determines and
compares the recoverable amount with the related carrying amount and recognises any impairment
loss. After that, the Group tests the asset group (set of asset groups), including goodwill, for
impairment, the carrying amount of the related asset group (set of asset groups) is compared to its
recoverable amount. If the carrying amount of the asset group (set of asset groups) is higher than its
recoverable amount, the amount of the impairment loss is firstly used to reduce the carrying amount of
the goodwill allocated to the asset group (set of asset groups), and then used to reduce the carrying
amount of other assets (other than the goodwill) within the asset group (set of asset groups), on a pro-
rata basis of the carrying amount of each asset.
Once the above impairment loss is recognised, it cannot be reversed in subsequent accounting periods.
(25) 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 recognised 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.
(26) Contract liabilities
The Group presents contract assets or contract liabilities depending on the relationship between the
satisfaction of its performance obligations and the customer’s payment in the balance sheet. The
Group offsets the contract assets and contract liabilities under the same contract and presents the net
amount.
A contract liability is the obligation to transfer goods or services to a customer for which the Group has
received consideration or an amount of consideration is due from the customer, such as an amount of
consideration that an entity has received before the transfer of the promised goods or services.
40
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(27) Employee benefits
Employee benefits refer to all forms of consideration or compensation other than share-based
payments given by the Group in exchange for services rendered by employees or for termination of
employment. Employee benefits include short-term employee benefits, post-employment benefits,
termination benefits and other long-term employee benefits. Benefits given by the Group to an
employee’s spouse, children and dependents.
Short-term employee benefits
The actual occurred short-term employee benefits are recognized as liabilities during 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.
Post-employment benefits (defined contribution plans)
The employees of the Group participate in a pension scheme and unemployment insurance managed
by the local government, and an enterprise pension fund, the corresponding expenses sha ll be included
in the cost of related assets or profit or loss.
Post-employment benefits (defined benefit plans)
The Group operates a defined benefit pension plan which requires contributions to be made to a
separately administered fund. The benefits are unfunded. The cost of providing benefits under the
defined benefit plan is determined using the projected unit credit method.
Remeasurements arising from the defined benefit pension plan, comprising actuarial gains and losses,
the effect of the asset ceiling (excluding amounts included in net interest on the net defined benefit
liability) and the return on plan assets (excluding amounts included in net interest on the net defined
benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to
equity through other comprehensive income in the period in which they occur. Remeasurements are
not reclassified to profit or loss in subsequent periods.
Past service costs are recognised in profit or loss at the earlier of the date of the plan amendment and
the date that the Group recognises restructuring-related costs or termination benefits.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The
Group recognises the following changes in the net defined benefit obligation under administrative
expenses and finance expenses in the income statement: service costs comprising current service
costs, past service costs, gains and losses on settlements; net interest comprising interest income on
plan assets, interest costs on the defined benefit obligation and interest on the effect of the asset
ceiling.
41
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(27) Employee benefits (Continued)
Termination benefits
The Group provides termination benefits to employees and recognises an employee benefits liability for
termination benefits, with a corresponding charge to profit or loss, at the earlier of when the Group can
no longer withdraw the offer of those benefits resulting from an employment termination plan or a
curtailment proposal and when the Group recognise costs involving the payment of termination benefits.
The Group offers termination benefits to the employees who accept internal retirement arrangements.
Termination benefits refers to salaries and social securities paid to the employees who voluntarily retire
and approved by the management before the legal retirement age. The Group pays termination benefits
from the date of the starting of internal retirement arrangements to legal retirement age. When meeting
the recognition criteria, termination benefits are recognised as liabilities from the date on which the
employees stop offering services to the legal retirement date and recognised in profit or loss as
incurred. The change of termination benefits’ actuarial assumptions and difference incurred by the
adjustment of welfare standards are recognised in profit or loss as incurred.
The termination benefits expected to be settled within one year since the balance sheet date are
classified as current liabilities.
Other long term employee benefits
Other long-term employee’ benefits provided to employees shall be recognised and measured as net
liabilities or net assets where provisions regarding post-employment benefits are applicable, provided
that changes shall be included in the current profit and loss or related asset costs.
(28) Lease liability
At the commencement date of the lease, the Group measures the lease liability at the present value of
the lease payments that are not paid at that date, except for short-term leases and leases of low-value
assets. In calculating the present value of the lease payments, the Group uses the interest rate implicit
in the lease as the discount rate. If that rate cannot be readily determined, the Group uses the lessee’s
incremental borrowing rate. The Group calculates the interest expenses of the lease liability in each
period during the lease term using the constant periodic rate of interest, and recognises such interest
expenses in profit or loss, except those in the costs of the related asset as required. Variable lease
payments that are not included in the measurement of the lease liabilities are recognised in profit or
loss as incurred, except those in the costs of the related asset as required.
After the commencement date of the lease, the Group remeasures lease liabilities with changed present
value of the lease payments when fixed payment, expected unguaranteed residual value payable, the
interest rate implicit in the lease as the discount rate, purchase options, options to extend the lease or
determination of the lease term change.
42
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(29) Provisions
An obligation related to a contingency shall be recognised by the Group as a provision when all of the
following conditions are satisfied, except for contingent considerations and contingent liabilities
assumed in a business combination not involving entities 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) a reliable estimate can be made of the amount of the obligation.
A provision is 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. Provisions are reviewed at each 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.
A contingent liability recognised in a business combination not involving entities under common control
is initially measured at fair value. Subsequently, it is measured at the higher of: (i) the amount that
would be recognised in accordance with the general policy for provisions above; and (ii) the amount
initially recognised less cumulative amortisation recognised in accordance with the policy for revenue
recognition.
(30) Share-based payments
A share-based payment is classified as either an equity-settled share-based payment or a cash-settled
share-based payment. An equity-settled share-based payment is a transaction in which the Group
receives services and uses shares or other equity instruments as consideration for settlement.
An equity-settled share-based payment in exchange for services received from employees is measured
at the fair value of the equity instruments granted to the employees. If such equity -settled share-based
payment could vest immediately, related costs or expenses at an amount equal to the fair value on the
grant date are recognised, with a corresponding increase in capital reserves; if such equity -settled
share-based payment could not vest until the completion of services for a vesting period, or until the
achievement of a specified performance condition, the Group at each balance sheet date during the
vesting period recognises the services received for the current period as related costs and expenses,
with a corresponding increase in capital reserves, at an amount equal to the fair value of the equity
instruments at the grant date, based on the best estimate of the number of equity instruments expected
to vest, which is made on the basis of the latest available information such as the changes in the
number of covered employees and whether specified performance conditions have been met. The fair
value is determined using the binomial model.
43
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(30) Share-based payments (Continued)
The cost of equity-settled transactions is recognised, together with a corresponding increase in capital
reserves, over the period in which the specified performance or service conditions are fulfilled. The
cumulative expense recognised for equity-settled transactions at each balance sheet date until the
vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of
the number of equity instruments that will ultimately vest.
For awards that do not ultimately vest because non-market performance and/or service conditions have
not been met, no expense is recognised. Where awards include a market or non-vesting condition, the
transactions are treated as vesting irrespective of whether the market or non-vesting condition is
satisfied, provided that all other performance and/or service conditions are satisfied.
Where the terms of an equity-settled share-based award are modified, as a minimum an expense is
recognised as if the terms had not been modified. In addition, an expense is recognised for any
modification that increases the total fair value of the share-based payments, or is otherwise beneficial to
the employee as measured at the date of modification.
Where an equity-settled share-based award is cancelled, it is treated as if it had vested on the date of
cancellation, and any expense not yet recognised for the award is recognised immediately. This
includes any award where non-vesting conditions within the control of either the Group or the employee
are not met. However, if a new award is substituted for the cancelled award, and is designated as a
replacement on the date that it is granted, the cancelled and new awards are treated as if they were a
modification of the original award.
The cost of cash-settled transactions is measured at the fair value of the liability which is determined on
the basis of shares or other equity instruments of the Group. It is initially recognised at the fair value on
the grant date using binomial model together with the consideration of terms and conditions on which
the equity instruments are granted. If the rights under a cash-settled share-based payment could vest
immediately, related costs or expenses at an amount equal to the fair value on the grant date are
recognised, with a corresponding increase in liability. If the rights under a cash-settled share-based
payment could not vest until the completion of services for a vesting period, or until achievement of a
specified performance condition, the Group at each balance sheet date during the vesti ng period
recognises the services received for the current period as related costs and expenses, with a
corresponding increase in liability, at an amount equal to the fair value of the liability based on the best
estimate of the outcome of vesting. The liability is measured at each balance sheet date up to and
including the settlement date, with changes in fair value recognised in profit or loss.
44
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(31) Revenue recognition
Revenue from contracts with customers is recognised when the Group has fulfilled its performance
obligations in the contracts, that is, when the customer obtains control of relevant goods or services.
Control of relevant goods or services refers to the ability to direct the use of the goods, or the provision
of the services, and obtain substantially all of the remaining benefits from the goods or services.
Contracts for sale of goods
The contracts for the sale of goods between the Group and its custo mer usually only contain the
performance obligations for the transfer of goods. The Group generally recognizes revenue at the point
of transferring the control of goods on the basis of a combination of the following factors: the current
right to collect the goods, the transfer of major risks and benefits in the ownership of the goods, and the
transfer of the legal ownership of the goods, the transfer of physical assets of the goods and that the
customers have accepted the goods.
Service Contracts
The service contracts between the Group and its customers usually consist of performance obligations
such as storage and logistics and so on. As the Group's performance of contracts is at the same time
when the customer obtains and consumes the economic benefits of the performance of the Group, and
the Group has the right to collect receivables from the performance of contacts that has been
completed to date, the Group regards it as a contract obligation over a period of time, except that the
progress of performance cannot be reasonably determined. The Group determines the progress of the
performance of contracts in accordance with the input method. If the progress of performance of
contracts cannot be reasonably determined and the cost incurred by the Group is expected to be
compensated, the revenue is recognised on the basis of the incurred costs until the progress of
performance of contacts can be reasonably measured.
Variable consideration
Some of the Group's contracts with customers including arrangements of sales rebates (list items in
accordance with the customer’s actual conditions, such as early completion awards or others) result in
variable consideration. The Group determines the best estimate of variable consideration by using the
expected value method or the most likely amount method. However, the transaction price including
variable consideration is only to the extent that it is highly probable that a significant reversal in the
amount of cumulative revenue recognised will not occur when the uncertainty associated with the
variable consideration is subsequently resolved.
Consideration payable to customers
Where consideration is payable by the Group to a customer, such consideration payable shall be
deducted against the transaction price, and against current revenue upon the recognition of revenue or
the payment of (or the commitment to pay) the consideration to the customer (whichever is later), save
for consideration payable to the customer for the purpose of acquiring from the customer other clearly
separable products.
45
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(31) Revenue recognition (Continued)
Return clauses
In connection with sales with a return clause, revenue is recognised according to the amount of
consideration it expects to be entitled to for the transfer to a customer when the customer acquires
control of the relevant products. Amounts expected to be refunded for the return of sales are recognised
as liabilities. At the same time, the balance of the carrying value of the product expected to be returned
upon transfer less expected costs for the recall of such product (including an impairment loss of the
recalled product) shall be recognised as an asset (i.e. cost of return receivables), and the net amount of
the carrying value of the transferred product upon the transfer less the aforesaid asset cost shall be
transferred to cost. At each balance sheet date, the Group reassesses the future return of sales and
remeasures the above assets and liabilities.
Significant financing component
Where a contract contains a significant financing component, the Group determines transaction prices
based on amounts payable assumed to be settled in cash by customers immediately upon the
acquisition of control over the products. The difference between such transaction price and contract
consideration is amortised over the contract period using the effective interest rate method based on a
ratio that discounts the nominal contractual consideration to the current selling price of the products.
The Group shall not give consideration to any significant financing component in a contract if the gap
between the customer’s acquisition of control over the products and payment of consideration is
expected to be less than 1 year.
Warranty clauses
The Group provides quality assurance for products sold and assets built in accordance with contract
terms and laws and regulations. The accounting treatment of quality assurance in the form of warranty
assuring customers products sold are in compliance with required standards is set out in Note V.36.
Where the Group provides a service warranty for a standalone service in addition to the assurance of
compliance of products with required standards, such warranty is treated as a stand-alone contractual
performance obligation, and a portion of the transaction price shall be allocated to the service warranty
based on a percentage of the stand-alone price for the provision of the product and service warranty.
When assessing whether a warranty is rendering a stand-alone service in addition to providing
guarantee to customers that all sold goods are in compliance with required standards, the Group will
consider whether or not such warranty is a statutory requirement, the term of the war ranty and the
nature of the Group’s undertaking to perform its obligations.
Reward points program
The Group grants reward points to customers when selling goods. Customers can use reward points to
redeem free or discounted goods provided by the Group. This reward points program provides
significant rights to customers, and the Group considers it as an individual performance obligation, and
apportions part of the transaction prices to reward points based on pricing of goods or services with
warranty clauses. Revenue is recognised when customers obtain goods redeemed or when reward
points expire.
46
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(31) Revenue recognition (Continued)
Principal responsible person/proxy
For goods or other assets obtained from a third party which were transferred later to customers, the
Group has the right to decide, independently, the pricing of goods. This means that the Group has
obtained control over related goods before transferring to customers. Therefore, the Group is the
principal responsible person, and revenue is recognised based on the total amount of consideration
received or receivable. Otherwise, the Group is proxy, and revenue is recognised based on expected
commission. This amount should be the total amount of consideration received or receivable net of the
amount payable to other parties, or based on the fixed amount or percentage.
(32) Government grants
Government grants are recognised when all attaching conditions will be complied with and the grants
will be received. If a government grant is in the form of a transfer of a monetary asset, it is measured at
the amount received or receivable. If a government grant is in the form of a transfer of a non-monetary
asset, it is measured at fair value; if fair value is not reliably determinable, it is measured at a nominal
amount.
Government grants related to assets refer to government assets which are granted to enterprises for
the long-term assets formed by acquisition, construction or in other manners. Government grants
related to income refer to government grants other than those related to assets.
A government grant related to income is accounted for as follows: (i) if the grant is a compensation for
related expenses or losses to be incurred in subsequent periods, the grant is recognised as deferred
income, and released in profit or loss or offset against related expenses over the periods in which the
related costs are recognised; or (ii) if the grant is a compensation for related expenses or losses already
incurred, it is recognised immediately in profit or loss or offset against relevant expenses.
A government grant relating to an asset shall be offset against the carrying amounts of relevant assets,
or recognised as deferred income and amortised in profit or loss over the useful life of the related asset
by annual instalments in a systematic and rational way (however, a government grant measured at a
nominal amount is recognised directly in profit or loss). Where the assets are sold, transferred, retired
or damaged before the end of their useful lives, the rest of the remaining deferred income is released to
profit or loss for the period in which the relevant assets are disposed of.
(33) Income tax
Income tax comprises current and deferred tax. Income tax is recognised as income or expense in
profit or loss, or recognised directly in equity if it arises from a business combination or relates to a
transaction or event which is recognised directly in equity.
Current tax liabilities or assets arising from the current and prior periods at the amount expected to be
paid by the Group or returned by the tax authority calculated according to related tax laws.
Deferred tax is provided using the balance sheet liability method, on all temporary differences at the
balance sheet date between the tax bases of assets and liabilities and their carrying amounts, and
temporary differences between the tax bases and the carrying amounts of the items, which have a tax
base according to related tax laws but are not recognised as assets and liabilities.
47
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(33) Income tax (Continued)
Deferred tax liabilities are recognised for all taxable temporary differences, except:
(1) when the taxable temporary difference arises from the initial recognition of goodwill, or an asset
or liability in a transaction that is not a business combination and, at the time of transaction,
affects neither accounting profit nor taxable profit or loss; and
(2) in respect of taxable temporary differences associated with investments in subsidiaries,
associates and joint ventures, when the timing of the reversal of the temporary differences can
be controlled and it is probable that the temporary differences will not be reversed in the
foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, and the carryforward of
unused tax losses and any unused tax credits. Deferred tax assets are recognised to the extent that it
is probable that taxable profit will be available against which the deductible temporary differences, the
carryforward of unused tax losses and unused tax credits can be utilised, except:
(1) when the deductible temporary difference arises from the initial recognition of an asset or
liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; and
(2) in respect of the deductible temporary differences associated with investments in subsidiaries,
associates and joint ventures, deferred tax assets are only recognised to the extent that it is
probable that the temporary differences will be reversed in the foreseeable future and taxable
profit will be available against which the temporary differences can be utilised in the future.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that are
expected to apply to the period when the asset is realised or the liability is settled, in accordance with
the requirements of tax laws. The measurement of deferred tax assets and deferred tax liabilities
reflects the tax consequences that would follow from the manner in which the Group expects, at the
balance sheet date, to recover the assets or settle the liabilities.
The carrying amount of deferred tax assets is reviewed at the balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available in future periods to allow
the deferred tax assets to be utilised. Unrecognised deferred tax assets are reassessed at the balance
sheet date and are recognised to the extent that it has become probable that sufficient taxable profit will
be available to allow all or part of the deferred tax asset to be recovered.
Deferred tax assets and deferred tax liabilities are offset if and only if the Group has a legally
enforceable right to set off current tax assets and current tax liabilities, and the deferred tax assets and
deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same
taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on
a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in
which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
48
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(34) Lease
Identification of leases
At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract
is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration. To assess whether a contract conveys the right to control
the use of an identified asset for a period of time, the Group assesses whether, throughout the period of
use, the customer has both of the right to obtain substantially all of the economic benefits from use of
the identified asset and the right to direct the use of the identified asset.
Identification of separate lease components
For a contract that contains multiple separate lease components, the Group separates the components
of the contract and accounts for each separate lease component. The right to use an underlying asset
is a separate lease component if both:
(1) the lessee can benefit from use of the underlying asset either on its own or together with other
resources that are readily available to the lessee; and
(2) the underlying asset is neither highly dependent on, nor highly interrelated with, the other
underlying assets in the contract.
Separating lease components and non-lease components
For a contract that contains lease components and non-lease components, the Group accounts for
lease components and non-lease components separately as a lessor or a lessee.
Assessment of the lease term
The lease term is the non-cancellable period of a lease for which the Group has the right to use an
underlying asset. If the Group has an option to extend the lease, that is, the Group has the right to
extend the lease, and is reasonably certain to exercise that option, the lease term also includes periods
covered by an option to extend the lease. If the Group has an option to terminate the lease, that is, the
Group has the right to terminate the lease, but is reasonably certain not to exercise that option, the
lease term includes periods covered by an option to terminate the lease. The Group reassesses
whether it is reasonably certain to exercise an extension option, purchase option, or not to exercise a
termination option, upon the occurrence of either a significant event or a significant change in the
circumstances that is within the control of the Group and affects whether the Group is reasonably
certain to exercise an option not previously included in its determination of the lease term.
As leasee
The accounting treatment of the Group as lease please refer to Note.III.22 and Note III.28.
49
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(34) Leases(Continued)
Lease modifications
Lease modification is a change in the scope of a lease, or the consideration for a lease, that was not
part of the original terms and conditions of the lease, for example, adding or terminating the right to use
one or more underlying assets, or extending or shortening the contractual lease term.
The Group accounts for a lease modification as a separate lease if both:
(1) the modification increases the scope of the lease by adding the right to use one or more
underlying assets; and
(2) the consideration for the lease increases by an amount commensurate with the stand-alone
price for the increase in scope and any appropriate adjustments to that stand-alone price to
reflect the circumstances of the particular contract.
For a lease modification that is not accounted for as a separate lease, at the effective date of the lease
modification the Group remeasures the lease liability by discounting the revised lease payments using a
revised discount rate. The revised discount rate is determined as the interest rate implicit in the lease
for the remainder of the lease term, or the lessee’s incremental borrowing rate at the effective date of
the modification, if the interest rate implicit in the lease cannot be readily determined.
For a lease modification that is not accounted for as a separate lease, the Group accounts for the
remeasurement of the lease liability by:
(1) decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination
of the lease for lease modifications that decrease the scope of the lease, and recognising the
gain or loss relating to the partial or full termination of the lease in profit or loss; or
(2) making a corresponding adjustment to the right-of-use asset for all other lease modifications.
Short-term leases and leases of low-value assets
The Group considers a lease that, at the commencement date of the lease, has a lease term of 12
months or less, and does not contains any purchase option as a short-term lease; and a lease for which
the value of the individual underlying asset is not more than RMB40,000 when it is new as a lease of
low-value assets. If the Group subleases an asset, or expects to sublease an asset, the head lease
does not qualify as a lease of a low-value asset. The Group does not recognise the right-of-use assets
and lease liabilities for short-term leases and low-value assets. The Group recognises lease payments
on short-term leases and leases of low-value assets in the costs of the related asset or profit or loss on
a straight-line basis over the lease term.
50
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(34) Leases(Continued)
Rent concessions under COVID-19
For rent reductions, such as rent reductions, deferred payments, etc., directly caused by the COVID-19
epidemic, the Group and the lessor have reached an existing lease contract, and meet the following
conditions at the same time, the Group adopts a simplified method for leases:
(1) The lease consideration after the concession is reduced or basically unchanged from that before the
concession;
(2) The concession is only for the amount of lease payments payable before June 30, 2022;
(3) After comprehensively considering qualitative and quantitative factors, it is determined that there are
no major changes in other terms and conditions of the lease.
The Group does not evaluate whether there is a lease change, and continues to calculate the interest
expense of the lease liability based on the same discount rate as before the reduction and included in
the current profit and loss, and continues to depreciate the right-of-use asset in the same way as before
the reduction. For rent reduction or exemption, the Group regards the reduced rent as a variable lease
payment. When a concession agreement is reached to release the original rent payment obligation, the
undiscounted cash amount will be used to offset the relevant asset costs or expenses, and the lease
liability will be adjusted accordingly ; For the delayed payment of rent, the Group will offset the lease
liability confirmed in the previous period when the actual payment is made.
As lessor
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to
ownership of an underlying asset, except that a lease is classified as an operating lease at the inception
date. The Group, as an intermediate lessor, classifies the sublease by reference to the right-of-use
asset arising from the head lease.
As lessor of an operating lease
Rent income under an operating lease is recognised on a straight-line basis over the lease term,
through profit or loss. Variable lease payments that are not included in the measurement of lease
receivables are charged to profit or loss as incurred.
The Group accounts for a modification to an operating lease as a new lease from the effective date of
the modification, considering any prepaid or accrued lease payments relating to the original lease as
part of the lease payments for the new lease.
51
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(35) Other significant accounting policies and accounting estimates
1) Medical reserve funds and specially approved reserving materials
Medical reserve funds refer to the funds appropriated by the State for the reserve of materials
for specified purposes to cope with major disasters, epidemic situations, first aid and other
emergencies, etc. Specially approved reserving materials refer to the medical commodities
required by the government to deal with emergencies such as epidemic situations, first aid and
local common diseases. According to the regulations of CNPGC, the Group, as an enterprise
undertaking the task of specially approved reserving materials reserve, obtains the medical
reserve funds provided by the PRC government, which appropriated to the local government
and CNPGC. The medical reserve funds received via those parties are recognised as other
non-current liabilities. In the meantime, the Government of Guangdong Province and Guangxi
Province designated Sinopharm Holding Guangzhou Co., Ltd. (“Sinopharm Guangzhou”) and
its subsidiaries, Sinopharm Holding Guangxi Co., Ltd. (“Sinopharm Guangxi”) and its
subsidiaries to undertake the storage, allocation and supply of pharmaceutical commodities
required by major disasters, epidemic situations, first aid and other emergencies as well as
local common diseases in Guangdong and Guangxi Zhuang Autonomous Region. According to
the reserve plan (variety and quantity) of the local government and CNPGC, the Group
reserves the corresponding specially approved reserving materials, implements dynamic
management and recognises them as other non-current assets.
2) Dividend distribution
Cash dividend distribution is recognised as a liability in the period in which it is approved by
shareholders at the annual shareholders’ meeting.
3) Fair value measurement
At each balance sheet date, the Group measures the fair value of equity instrument investments. Fair
value means the price receivable from the disposal of an asset or required to be paid for the transfer of
a liability in an orderly transaction incurred by market participants on the measurement date. The Group
measures assets or liabilities at fair value with the assumption that the orderly transaction of asset
disposal or the transfer of liabilities takes place in the major market for the relevant assets or liabilities.
Where there is no major market, the Group assumes that such transaction takes place in the most
favourable market for the relevant assets or liabilities. The major market (or most favourable market) is
a trading market which the Group has access to on the measurement date. The Group adopts
assumptions used by market participants when they price the asset or liability with the aim of
maximising its economic benefits.
The measurement of non-financial assets measured at fair value should take into account the ability of
market participants to utilise the asset in the best way for generating economic benefits, or the ability to
dispose of such asset to other market participants who are able to utilise the asset in the best way f or
generating economic benefits.
The Group adopts valuation techniques that are appropriate in the current circumstances and supported
by sufficient usable data and other information. Observable input will be used first and foremost.
Unobservable input will only be used when it is not possible or practicable to obtain observable input.
52
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(35) Other significant accounting policies and accounting estimates (Continued)
3) Fair value measurement (Continued)
The fair value hierarchy in which an asset or liability is measured or disclosed in the financial
statements at fair value will be determined on the basis of the lowest level of input which is significant
for the fair value measurement as a whole. Input at the first level represents unadjusted quoted prices in
an active market for the acquisition of the same asset or liability on the measurement date. Input at the
second level represents directly or indirectly observable assets or liabilities apart from input at the first
level. Input at the third level represents unobservable input for the asset or liability.
At each balance sheet date, the Group reassesses assets and liabilities measured at fair value on an
ongoing basis recognised in the financial statements to determine whether the level of fair value
measurement should be changed.
4) 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) the component’s
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.
5) Significant accounting judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenue, expenses, assets and liabilities, and their
accompanying disclosures, and the disclosure of contingent liabilities at the balance sheet date.
Uncertainty about these assumptions and estimates could result in outcomes that could require a
material adjustment to the carrying amounts of the assets or liabilities affected in the future.
Judgements
In the process of applying the Group's accounting policies, management has made the following
judgements which have a significant effect on the amounts recognised in the financial statements:
Operating leases - the Group as lessor
The Group has entered into lease agreements on its investment property portfolio. The Group has
determined these leases to be operating leases, based on an evaluation of the terms and conditions of
the agreements, that it retains substantially all the significant risks and rewards of ownership of these
properties.
53
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(35) Other significant accounting policies and accounting estimates (Continued)
5) Significant accounting judgements and estimates(Continued)
Judgements (Continued)
Business models
The classification of financial assets at initial recognition depends on the Group's business model for
managing financial assets. When determining the business model, the Group considers the methods to
include evaluation and report financial asset performance to key management, the risks affecting the
performance of financial assets and the risk management, and the manner in which the relevant
management receives remuneration. When assessing whether the objective is to collect contractual
cash flows, the Group needs to analyse and judge the reason, timing, frequency and value of the sale
before the maturity date of the financial assets.
Contractual cash flow characteristics
The classification of financial assets at initial recognition depends on the financial asset’s contractual
cash flow characteristics, and the judgements on whether the contractual cash flows are solely
payments of principal and interest on the principal amount outstanding, including when assessing the
modification of the time value of money, the judgement on whether there is any significant difference
from the benchmark cash flow and whether the fair value of the prepay ment features is insignificant for
financial assets with prepayment features, etc.
Estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the
balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the future accounting periods, are described below.
Impairment of financial instruments
The Group uses the expected credit loss model to assess the impairment of financial. The Group is
required to perform significant judgement and estimation and take into account all reasonable and
supportable information, including forward-looking information. When making such judgements and
estimates, the Group infers the expected changes in the debtor's credit risk based on historical
repayment data combined with economic policies, macroeconomic indicators, industry risks and other
factors. The different estimates may impact the impairment assessment, and the provision for
impairment may also not be representative of the actual impairment loss in the future.
54
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(34) Other significant accounting policies and accounting estimates (Continued)
5) Significant accounting judgements and estimates(Continued)
Estimation uncertainty (Continued)
Impairment of non-current assets other than financial assets (other than goodwill)
The Group assesses whether there are any indications of impairment for all non-current assets other
than financial assets at the balance sheet date. Intangible assets with indefinite useful lives are tested
for impairment annually and at other times when such an indication exists. Other non-current assets
other than financial assets are tested for impairment when there are indications that the carrying
amounts may not be recoverable. An impairment exists when the carrying amount of an asset or asset
group exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and the
present value of the future cash flows expected to be derived from it. The calculation of the fair value
less costs of disposal based on available data from binding sales transactions in an arm’s length
transaction of similar assets or observable market prices less incremental costs for disposing of the
assets. When the calculations of the present value of the future cash flows expected to be derived from
an asset or asset group are undertaken, management must estimate the expected future cash flows
from the asset or asset group and choose a suitable discount rate in order to calculate the present
value of those cash flows. Further details are included in Note V.12/13/14/15/16.
Impairment of goodwill
The Group determines whether goodwill is impaired at least on an annual basis. This requires an
estimation of the present value of the future cash flows expected to be derived from the asset groups
(sets of asset groups) to which the goodwill is allocated. Estimating the present value requires the
Group to make an estimate of the expected future cash flows from the asset groups (sets of asset
groups) and also to choose a suitable discount rate in order to calculate the present value of those cash
flows. Further details are included in Note V.18.
Deferred tax assets
Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable
profit will be available against which the losses can be utilised. Significant management judgement is
required to determine the amount of deferred tax assets that can be recognised, based upon the likely
timing and level of future taxable profits together with future tax planning strategies.
Fair value of unlisted equity investments
The unlisted equity investments have been valued based on the expected cash flows discounted at
current rates applicable for items with similar terms and risk characteristics. This valuation requires the
Group to make estimates about expected future cash flows, credit risk, volatility and discount rates, and
hence they are subject to uncertainty.
55
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(34) Other significant accounting policies and accounting estimates (Continued)
5) Significant accounting judgements and estimates(Continued)
Estimation uncertainty (Continued)
Loyalty points
The Group makes reasonable estimate of the stand-alone selling price of the loyalty points by taking
into account all relevant information, such as the stand-alone selling prices for the customer to acquire
additional free goods or services or the discounts enjoyed by the customer using the loyalty points and
the possibility for the customer to exercise the redemption right. The Group considers the likelihood for
the customer to exercise the redemption right based on the historical data of point redemption, the
current point redemption and the future changes for the customer, the future trend of the market and
other factors. The Group re-evaluates the stand-alone selling price of loyalty points at least on each
balance sheet date and determines the transaction price to be allocated to the loyalty points based on
the stand-alone selling price of the re-evaluated loyalty points.
Sales with a right of return
The Group makes reasonable estimate of a group of contracts with similar characteristics according to
the sales return historical data, the current sales return situation, as well as customer changes, market
changes and other relevant information. Estimates of the expected return rate may not be
representative of the actual returns in the future. The Group re-evaluates the return rate at least on
each balance sheet date and updates the measurement of the refund liabilities and the right-of-return
assets based on the re-evaluated return rate.
Warranties
The Group makes reasonable estimate of the warranty rate of a group of contracts with similar
characteristics based on historical warranty data, current warranty, as well as all relevant information
such as product improvements, market changes, etc. Estimates of the expected warranty rate may not
be representative of the actual warranty rate in the future. The Group re-evaluates the warranty rate at
least on each balance sheet date and updates the measurement of the provisions based on the re-
evaluated warranty rate.
56
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(34) Other significant accounting policies and accounting estimates (Continued)
5) Significant accounting judgements and estimates(Continued)
Estimation uncertainty (Continued)
Assessment of constrains on variable consideration
The Group estimates, within a reasonable quantity, the amount of variable consideration that may occur
and the likelihood by taking into account all reasonably available information, including historical
information, current information, and predictive information. The Group includes in the transaction price
some or all of an amount of variable consideration estimated only to the extent that it is highly probable
that a significant reversal in the amount of cumulative revenue recognised will not occur when the
uncertainty associated with the variable consideration is subsequently resolved. In assessing whether it
is highly probable that a significant reversal in the amount of cumulative revenue recognised will not
occur once the uncertainty related to the variable consideration is subsequently resolved, the Group
considers both the likelihood and the magnitude of the revenue reversal. On each balance sheet date,
the Group updates the estimated transaction price (including updating its assessment of whether an
estimate of variable consideration is constrained) to reflect the circumstances present at the end of the
reporting period and the changes in circumstances during the reporting period.
Lessee’s incremental borrowing rate
If the interest rate implicit in the lease cannot be readily determined, the Group measures the lease
liability at the present value of the lease payments discounted using the lessee’s incremental borrowing
rate. According to the economic environment, the Group takes the observable interest rate as the
reference basis for determining the incremental borrowing rate, then adjusts the observable interest r ate
based on its own circumstances, underlying assets, lease terms and amounts of lease liabilities to
determine the applicable incremental borrowing rate.
57
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
IV Taxation
1. Main categories and rates of taxes:
Categories Tax base Tax rate
Taxable value added amount (Tax
payable is calculated by using the
taxable sales amount multiplied by
Value added tax the effective tax rate less deductible
(“VAT”) VAT input of the current period) 1%, 3%, 5%, 6%, 9%, 13%
City maintenance and
construction tax Amount of VAT 5% or 7%
Corporate income tax
(“CIT”) Taxable income 15%, 20% or 25%
Educational surcharge Amount of VAT 3%
Local educational
surcharge Amount of VAT 2%
2. Tax preferences
In 2021, according to the "Announcement of the Ministry of Finance and the State Administration of
Taxation and the National Development and Reform Commission on the Continuation of the
Enterprise Income Tax Policy for the Western Development" (Announcemen t No. 23, 2020 of the
Ministry of Finance and the State Administration of Taxation and the National Development and
Reform Commission) and the "Announcement on the Continuation of the Enterprise Income Tax
Policy for the Western Development" (Ministry of Finance Announcement No. 23 of 2020), the
company’s subsidiaries that can enjoy the preferential corporate income tax rate of 15% for the
encouraged industries in the western region include: Sinopharm Holding Guangxi Co.,
Ltd.( Sinopharm Guangxi), Sinopharm Holding Guangxi Logistics Co., Ltd. (“Sinopharm Guangxi
Logistics”), 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”), Sinopharm Holding
Wuzhou Co., Ltd. (“Sinopharm Wuzhou”), Sinopharm Holding Qinzhou Co., Ltd. (“Sinopharm
Qinzhou”), Sinopharm Holding Hezhou Co., Ltd. (“Sinopharm Hezhou”), Sinopharm Holding
Guangxi Medical Supply Chain Service Co., Ltd.(“Sinopharm Guangxi Supply Chain”), Sinopharm
Holding Xinjiang New & Special Medicines Chain Store Co., Ltd. (“Xinjiang New & Special
Medicines”), Sinopharm Holding Guoda Inner Mongolia Pharmacy Chain Store Co., Ltd.(“ Inner
Mongolia Guoda”), Sinopharm Holding Guoda Hulun Buir Pharmacy Chain Store Co., Ltd.(“Inner
Mongolia Hulun Buir Guoda”), Inner Mongolia Guoda Medicine Co., Ltd.(“Inner Mongolia Guoda
Medicine”), Ningxia Guoda Pharmacy Chain Store Co., Ltd.(“Ningxia Guoda”), Sinopharm Holding
Guoda Guangxi Pharmacy Chain Store Co., Ltd.(“Guangxi Guoda”), Guoda Pharmacy (Pu’er)
Songmao Co., Ltd.(“Guoda Pu’er Songmao”) and Sinopharm Holding Guoda Drug Store
Manchuria Co., Ltd.(“Manchuria Guoda”).
58
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
IV Taxation (Continued)
2. Tax preferences (Continued)
Tax preferences(Continued)
In 2021, according to the “Notice on the Implementation of Inclusive Tax Reduction and Exemption
Policies for Small and Micro Enterprises” (Cai Shui [2019] No.13) and the “Announcement of the
Ministry of Finance and the State Administration of Taxation on the Implementation of Preferential
Income Tax Policies for Small and Micro Enterprises and Individual Business" ( Announcement No.
12 of 2021 of the Ministry of Finance and the State Administration of Taxation), subsidiaries of the
Company listed below qualified for the conditions of small low-profit enterprises, which the
monomer taxable income of these subsidiaries does not exceed RMB3 million. Hence, for the
portion of annual taxable income not exceeding RMB1 million, it shall be included in the taxable
income by 12.5%, and enterprise income tax shall be paid at the rate of 20%; for the portion of
annual taxable income exceeding RMB1 million but not exceeding RMB3 million, it shall be
included in the taxable income by 50%, and enterprise income tax shall be paid at the rate of 20%.
The Company’s subsidiaries which qualified for the conditions of small low-profit enterprises
including Shanghai Guoda Dongsheng Pharmacy Co., Ltd.(“Shanghai Dongsheng Guoda”),
Shanghai Guoda Haohai Pharmacy Co., Ltd.(“Shanghai Haohai Guoda”), Shanghai Guoda Ruijing
Pharmacy Co., Ltd.(Shanghai Ruijing Guoda”), Shanghai Guoda Dongxin Pharmacy Co.,
Ltd.(“Shanghai Dongxin Guoda”), Sinopharm Guoda Yongsheng Pharmacy (Shanghai) Co.,
Ltd.(Shanghai Yongsheng Guoda”), Zhejiang Sinopharm Pharmacy Dongshan Pharmacy Co.,
Ltd.(“Zhejiang Dongshan Guoda”), Sinopharm Holding Guoda Pharmacy Guangzhou Chain Co.,
Ltd.(“Guoda Guangzhou Chain”), Taishan Sinopharm Holding Guoda Qunkang Pharmacy Chain
Store Co., Ltd. (“Taishan Qunkang”), Sinopharm Holding Guoda Pharmacy Yongxingtang Chain
Store (Chaoyang) Co., Ltd.(”Guoda Yongxingtang”), Liaoning Guoda Medicine Co., Ltd. (“Liaoning
Medicine”), Changzhi Guoda Wanmin Pharmacy Chain Store Co., Ltd.(“Changzhi Wanmin”),
Sinopharm Holding Guoda Pharmacy Bayannur Co., Ltd. (“Bayannur”), Sinopharm Holding Guoda
Pharmacy Ulanqab Co., Ltd.(“Inner Mongolia Wulan Guoda”), Sinopharm Holding Baiyi Pharmacy
Guangxi Co., Ltd.(“Sinopharm Baiyi Pharmacy”), Sinopharm Accord (Guangzhou) Medicine Co.,
Ltd.(“Guangzhou Medicine”), Shanghai ForMe Xuhui Pharmacy Co., Ltd.(“ForMe Xuhui”), Beijing
Golden Elephant Guoxing Pharmaceutical Co., Ltd.(“Golden Elephant Guoxing”), Jilin Yihe Drug
Store Co., Ltd.(“Jilin Yihe”), Guangxi Guoda Pharmaceutical Consulting Chain Co., Ltd.(“Guangxi
Consulting”), Liaoning Guoda Health Pharmacy Co., Ltd.(“Liaoning Health Pharmacy”), Liaoning
Guoda Pharmacy Chain Co., Ltd.(“Liaoning Guoda Pharmacy”), Yanji Xianghe Medicine Co.,
Ltd.(“Yanji Xianghe”), Inner Mongolia Chengda Fangyuan Medicine Co., Ltd.(“Inner Mongolia
Chengda Fangyuan Medicine”) and Jilin Chengda Fangyuan Medicine Co., Ltd.(“Jilin Chengda
Fangyuan Medicine”).
59
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements
1. Cash and bank balances
30 June 2021 31 December 2020
Cash on hand
4,898,795.54 6,707,125.90
Cash at banks
5,533,553,362.08 5,398,406,132.09
Cash and cash equivalent 5,532,707,421.89 5,398,406,132.09
Undue interest receivable(Note 1) 845,940.19 -
Other monetary funds (Note 2) 338,186,269.94 593,091,037.88
5,876,638,427.56 5,998,204,295.87
Note 1: Current deposits earn interest at the rate based on current deposit interest rates. Maturities of short -term time
deposits range from 1 month to 6 mont hs depending on the fund arrangements of the Group, and the deposits earn
interest at the respective deposit rates. The maturities of bank notice deposits are 7 days depending on t he fund
arrangement of the Group, and the deposits earn interest at the respective deposit rates.
Note 2: Other monetary funds at 30 June 2021 include: Deposits for bank acceptance bills RMB236,042,026.02 (3 1
December 2020: RMB 492, 734, 978.75), freezing of funds RMB 67,280,993.60 (December 31, 2020:
RMB66, 956,993.60), Medical reserve funds RMB 27,515,383.35 (December 31, 2020: RMB27,465,331.50), fixed
deposit RMB3,193,851.81 (December 31,2020:RMB3,167,718.14), and ot her deposits RMB4, 154, 015.16 (December
31,2020: RMB 2,766,015. 89).
2. Notes receivable
The not es receivable by category
30 June 2021 31 December 2020
Commercial acceptance bills 606,070,192.39 622,115,477.04
60
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
2. Notes receivable(Continued)
The carrying amount of notes receivable that affected the changes in provision this year is as follows:
30 June 2021 31 December 2020
Carrying amount Bad debt provisions Book Value Carrying amount Bad debt provisions Book Value
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Items for which provision for
bad debts is recognised
individually 10,301,666.47 1.70% 585,955.98 5.69% 9,715,710.49 27,634,855.48 4.43% 1,479,520.32 5.35% 26,155,335.16
Items for which provision for
bad debts is recognised by
group (credit risk
characteristics) 596,354,481.90 98.30% - - 596,354,481.90 595,960,141.88 95.57% - - 595,960,141.88
606,656,148.37 100.00% 585,955.98 0.10% 606,070,192.39 623,594,997.36 100.00% 1,479,520.32 0.24% 622,115,477.04
61
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
2. Notes receivable(Continued)
On 30 June 2021, not es receivable that are individually assessed for provisions are as follows:
Expected
Carrying amount Bad debt provision Assessment for impairment
credit loss rate
The drawer has historical credit defaults; the notes
receivable are expected to be at risk of
Client A 723,189.59 2,972.46 0.41%
collection.
The drawer has historical credit defaults; the notes
9,578,476.88 582,983.52 receivable are expected to be at risk of
Client B 6.09%
collection.
10,301,666.47 585,955.98
Provision for bad debts in the current period as follows:
Current change amount
Opening balance Provision Reversal in Write-off in Others Closing balance
the year the year
Individual provision
for bad debts 1,479,520.32 - (893,564.34) - - 585,955.98
1,479,520.32 - (893,564.34) - - 585,955.98
Receivables financing endors ed or discounted by the Group to other parties which were not yet due at 30 June 2021 are
as follows:
30 June 2021
Derecognised Not derecognised
Commercial acceptance bills - 125,089.80
At the end of the period, the company transferred the acceptanc e notes to accounts receivable due to the drawer's failure
to perform the contract:
Amount transferred to
accounts receivable
at the end of the period
Commercial acceptance bills 2,090,087.17
62
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
3. Accounts receivable
(1) The accounts receivable by category
30 June 2021 31 December 2020
Gross carrying amount Provision for bad debt Gross carrying Gross carrying amount Provision for bad debt Gross carrying
value value
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Items for which
provision for bad
debt is recognized
separately 1,017,692,611.96 5.69% (29,993,339.31) 2.95% 987,699,272.65 674,370,776.75 4.85% (29,223,931.45) 4.33% 645,146,845.30
Inculdes：
Items for which
provision for bad
debt is recognized
by group 16,864,163,256.21 94.31% (90,686,079.61) 0.54% 16,773,477,176.60 13,218,113,690.60 95.15% (63,289,521.68) 0.48% 13,154,824,168.92
Includes:
17,881,855,868.17 100.00% (120,679,418.92) 0.67% 17,761,176,449.25 13,892,484,467.35 100.00% (92,513,453.13) 0.67% 13,799,971,014.22
63
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
3. Accounts receivable (Continued)
(1) The accounts receivable by category
Accounts receivable that are individually assessed for provisions
30 June 2021
Bad debt
Carrying amount provision Proportion Assessment for impairment
Receivable of
medical The receivable of medical insurance has lower -
insurance 514,818,583.40 (6,606,210.91) 1.28% tier default risk.
Debt or had irregular operations of subject to
serious financial difficulties and related to
multiple lawsuits, is with lower-tier
Client A 11,559,178.29 (11,559,178.29) 100.00% recoverability.
Debt or had irregular operations of subject to
serious financial difficulties, and has been
placed on a national list of defaulters, with
highly risk of going bankruptcy or financial
Client B 2,447,976.74 (2,447,976.74) 100.00% restructuring.
Debt or had irregular operations of subject to
serious financial difficulties, and has been
placed on a national list of defaulters, with
highly risk of going bankruptcy or financial
Client C 2,365,253.03 (2,365,253.03) 100.00% restructuring.
Part of the receivable takes longer than usual
Others 486,501,620.50 (7,014,720.34) 1.44% to recover, and has risk of recoverability.
1,017,692,611.96 (29,993,339.31) -
Provision for bad debts by portfolio:
30 June 2021
Carrying amount Bad debt provision Accrual proportion
Combination by credit risk
characteristics 16,864,163,256.21 90,686,079.61 0.54%
Provision for bad debts of accounts receivable according to the general model of expected credit loss
30 June 2021
Estimated default amount Expected credit loss in entire Expected credit loss rate
lifetime
Within 1 year 16,312,880,752.43 (40,974,307.84) 0.25%
1 to 2 years 511,922,099.65 (34,341,536.99) 6.71%
2 to 3 years 27,850,847.18 (7,831,498.28) 28.12%
Over 3 years 11,509,556.95 (7,538,736.50) 65.50%
16,864,163,256.21 (90,686,079.61) 0.54%
64
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
3. Accounts receivable (Continued)
(1) The accounts receivable by category (Continued)
The aging analysis of accounts receivables
30 June 2021
Within 1 year 17,299,413,843.64
1 to 2 years 515,740,902.78
2 to 3 years 36,094,871.65
Over 3 years 30,606,250.10
17,881,855,868.17
(2) Changes in bad debt provision, recovery or reverse
Bad debt provision for the current period
Amount changes in current period
Opening balance Closing balance
Increases Reversal write-off Increases in merger
Accounts
receivable bad
debt provision 92,513,453.13 38,699,564.83 (10,675,833.06) (35,935.36) 178,169.38 120,679,418.92
Important recovered or reversed items of provision for individually assessed bad debts from January to June 2021 are listed
below:
Recovered or reversed amount Method of recovery or reversion
Client A 62,252.15 Payment collection
Client B 25,278.00 Payment collection
Client C 19,152.28 Payment collection
106,682. 43
65
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
3. Accounts receivable (Continued)
(3)Accounts receivable actually written off in the current period
Project Write off amount
Client A 35,935.36
35,935.36
(4) The top five accounts receivable analysed by customer
% of the total accounts
Amount receivable Bad debt provision amount
Top 1 Account rec eivable 250,098,236.84 1.40% (920,455.72)
Top 2 Account rec eivable 248,454,363.20 1.39% (1,958,560.00)
Top 3 Account rec eivable 209,855,263.24 1.17% (1,432,489.42)
Top 4 Account rec eivable 184,205,023.09 1.03% (1,592,971.29)
Top 5 Account rec eivable 161,208,692.82 0.90% (426,533.84)
1,053,821,579.19 5.89% (6,331,010.27)
(5) Accounts receivable derecognized due to the financial assets transferred
From January to June 2021, the Group factored a small portion of accounts receivable at amortised cost to financial
institutions. The amount of accounts receivable derecognised was RMB 1,045,150,904.52 (January to June 2020:
RMB2,756,648,565.22), and the amount of loss recognised through Investment income was RMB 7,039,046. 60 (January to
June 2020: RMB 33,507,102.64).
66
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
4. Receivable financing
30 June 2021 31 December 2020
Bank acceptance bills 345,906,887.55 1,404,987,700.38
Receivable financing endorsed or discount ed by the Group to other parties which were not yet due at 30 June 202 1
30 June 2021
Derecognised Not Derecognised
Bank acceptance bills 1,841,760,515.56 20,070,999.69
5. Advances to suppliers
(1) The aging of advances to suppliers
30 June 2021 31 December 2020
Amount % of total balance Amount % of total balance
Within 1 year 611,349,475.09 99.31% 480,215,111.42 99.98%
1 to 2 years 4,253,441.22 0.69% 42,225. 29 0.01%
2 to 3 years - - 56,238. 00 0.01%
615,602,916.31 100.00% 480,313,574.71 100.00%
The illustration of the reasons why advance payments with a more t han one -year aging while the amounts are significant
not settled in time:
Nil.
(2) The top five advances to suppliers by customer on 30 June 2021
Amount Proportion of total balance
Total amount of top five advances to suppliers 217,538,246.13 35.34%
67
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
6. Other receivables
30 June 2021 31 December 2020
Other receivables 662,274,841.26 535,228,747.69
(1) Other receivables
(a) Category of other receivables by nat ure
30 June 2021 31 December 2020
Deposits
294,986,764.47 287,130,364.44
Receivable of price reduction compensation and
purchasing rebates 141,495,787.02 85,263, 225. 16
Receivable of the pharmaceutical electronic trading
platform 49,995, 673. 20 60,267, 511. 03
Entrusted borrowings 46,334, 222. 24 46,334, 222. 24
Petty cash advance to employees
52,673, 098. 70 22,994,684.93
Receivable of equity transactions
8,980,000.00 8,980,000.00
Receivable due from related parties 23,094, 951. 86 2,867,594.20
Others 115,368,379.05 90,580,362.96
732,928,876.54 604,417,964.96
(b) Changes in bad debt provision
Stage 1 Stage 2 Stage 3
Expected Entire lifetime Entire lifetime Total
credit losses expected credit expected credit
Bad debt over the next losses(No credit losses(Credit
12 mont hs impairment impairment
occurred) occurred)
Balance at 1 January 2021
- 7,305,149.90 61,884, 067. 37 69,189, 217. 27
Balance at 1 January 2021 during the period
Provisions during the period
- 2,441,341.87 171,144.99 2,612,486.86
Reversal during the period
- (1,146, 204. 24) (1,464. 61) (1,147, 668. 85)
Balance at 30 June 2021 - 8,600,287.53 62,053, 747. 75 70,654, 035. 28
68
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
6. Other receivables (Continued)
The aging analysis of other receivables was as follows:
30 June 2021
Within 1 year 592,791,636.86
1 to 2 years 57,692, 718. 34
2 to 3 years 11,332, 912. 33
Over 3 years 71,111, 609. 01
732,928,876.54
(c) Changes in bad debt provision, recovery or revers e
Provision for bad debts in the current period as follows:
Current change amount
Opening balance Provision Reversal in the year Write-off in the year Other Closing balance
Provision for
impairment
of other 69,189,217.27 2,612,486.86 (1,147,668.85) - - 70,654,035.28
receivables
69,189,217.27 2,612,486.86 (1,147,668.85) - - 70,654,035.28
(d) The top 5 parties that owed the largest amounts of other receivable balances
% of
Provision of bad
Nature Amount Age total
debt
amount
Sinopharm Group Zhijun (S uzhou) Entrusted borrowings
Pharmaceutical Co., Ltd. (Note1) 46,334, 222. 24 Over 3 years 6.32% 46,334, 222. 24
Pharmaceutical trading
Guangdong Pharmaceutical electronic
platform repayment not yet
trading platform
cleared 36,837, 497. 58 Within 1 year 5.03% -
Shenzhen Administration of social
insurance fund Deposit 20,029, 963. 00 Within 1 year 2.73% -
TCM-Integrated Cancer Center of Deposit of logistics
Southern Medical University extension services project 20,000, 000. 00 Over 3 years 2.73% -
Purchase rebates
Bayer Healthcare Co.Ltd. receivable and price
reduction compensation 16,117, 671. 62 Within 1 year 2.20% -
139,319,354.44 19.01% 46,334, 222. 24
Note1：Due to the poor management of Zhijun Suzhou, the solvency decreased and the credit risk increased. Based on the
principle of prudence, the group fully accrued the bad debt provision for the entrusted loan of RMB 46,334,222.24.
69
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
7. Inventories
(1) Inventories by category
30 June 2021 31 December 2020
Book value Provision for declines in value of Net book value Book value Provision for declines in value Net book value
inventories and impairment of of inventories or impairment of
contract performance costs contract performance costs
Raw materials 890,219.51 - 890,219.51 1,959,948.73 - 1,959,948.73
Work in progress 133,216.20 - 133,216.20 244,341.19 - 244,341.19
Finished goods 7,228,118,772.03 (12,979,519.90) 7,215,139,252. 13 6,292,866,195.61 (12,997,334.35) 6,279,868,861.26
Low cost consumables 3,495,930.78 - 3,495,930.78 2,937,523.28 - 2,937,523.28
7,232,638,138.52 (12,979,519.90) 7,219,658,618.62 6,298,008,008.81 (12,997,334.35) 6,285,010,674.46
(2) Provision for declines in value of inventories and impairment of contract performance costs
Increases Decreases
31 December 2020 Addition due to 30 June 2021
Provision Reversal or write-off Others
combination
Finished goods 12,997,334.35 5,022,800.14 314,857.50 (4,704,443.43) (651,028.66) 12,979, 519. 90
In 2021, due to the recovery of the value of some inventories, the provision for falling price was RMB 4,704,443.43 (2020: RMB 1,975,512.44), and the provision for falling price of inventories was RMB
651,028.66 (2020: RMB 1,458,197.19).
70
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
8. Contract assets
9. 31 December 2021 31 December 2020
Book Value Provision Net Book Value Book Value Provision Net Book Value
Medical devices
and equipment
guarantee funds 17,144,247.25 78,141.72 17,066,105.53 15,195,530.95- 17,799.31 15,177,731.64-
The Group sells medical devices and equipment to customers and provides relevant installation services, which constitutes
a single performance obligation. After the delivery of medical devices and equipment by the Group and acceptance by
customers, the control rights of goods are transferred. The Group recognises the relevant income and trans fers part of the
contract consideration to receivables, and the other parts are formed as contract assets. After the equipment is i nstalled
and the agreed warranty period ends, the contract assets will form an unconditional right of collection and be trans ferred
into receivables.
An aging analysis of contract assets with provision for impairment are as follows:
30 June 2021
Expected credit loss in entire
Estimated default amount lifetime Expected credit loss rate
Within 1 year 17,144,247.25 78,141.72 0.46%
Changes in provision for contract assets are present ed as follows:
30 June 2021
Project Provision in current period Reversal in current period write offf Reason
Provision for Provision for bad debts of contract
impairment of assets shall be made according to
contract assets 60,622.700 (280.29) - expected credit losses
9. Other current assets
30 June 2021 31 December 2020
Input VAT to be credited 95,822, 907. 79 114,251,111.76
Corporate income tax to be deducted 5,264,487.90 5,981,268.15
Others 498,534.36 850,483.54
101,585,930.05 121,082,863.45
71
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
10. Long-term equity investments
Changes in current period
Investee 31 December 2020 Prof it of loss under Ot her comprehensive Ot her changes in Cash dividend 30 June 2021 Provision f or impairment
equity met hod income adjustment equity declared by investee
Associates
Shenzhen Main Luck Pharmaceutical Inc. (“Main Luck
Pharmaceutical”)（a） 322,696,745.87 34,596,706.61 - - - 357,293,452.48 -
Shanghai Beiyi Guoda Pharmaceutical Co. Ltd. (“Shanghai Beiyi”)(b) 11,190,188.07 749,788.76 - - - 11,939,976.83 -
Shanghai Liyi Pharmacy Co., Ltd. (“Shanghai Liyi”) (c) 1,147,948.30 - - - - 1,147,948.30 -
Shanghai Renbei Pharmacy Co., Ltd. (“Shanghai Renbei”)(d) 2,465,103.92 - - - - 2,465,103.92 -
Dongyuan Accord Pharmaceutical Chain Co., Ltd. (“Dongyuan
Accord”)(e) - - - - - 396,638.32
Sinopharm Jienuo Medical Treatment Service Guangdong Co., Ltd.
(“Guangdong Jienuo”)(f) 5,225,570.12 (749,864.47) - - - 4,475,705.65 -
Guangdong Jianhui Construction Investment Management Co., Ltd.
(“Guangdong Jianhui”) (g) 8,000,000.00 - - - - 8,000,000.00 -
Zhijun Suzhou(h) - - - - - 1,857,279.52
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co., Ltd.
(“Sinopharm Zhijun”)(i) 425,557,825.11 28,056,303.69 - - - 453,614,128.80 -
Shenzhen Zhijun Pharmaceutical Trade Co., Ltd. (“Zhijun Trade”) (i) 10,408,675.18 64,801.68 - - - 10,473,476.86 -
Sinopharm Group Zhijun (Shenzhen) PingShan Pharmaceutical Co.,
Ltd. (“Zhijun Pingshan”) (i) 176,566,795.90 25,603,869.60 - - - 202,170,665.50 -
Shanghai Shyndec Pharmaceutical Co.,Ltd, (“Sinopharm Shyndec”) (i) 1,323,760,775.52 69,374,791.94 64,854.90 (460,868.29) (16,714,220.20) 1,376,025,333.87 -
2,287,019,627.99 157,696,397.81 64,854.90 (460,868.29) (16,714,220.20) 2,427,605,792.21 2,253,917.84
72
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
10. Long-term equity investments (Continued)
(a) On 4 July 1990, the Group jointly established Main Luck Pharmaceutical with Mercian
Kabushiki Kaisha and Main Life Co., Ltd., subscribing 35.19%, 34.15% and 30.66% of shareholdings,
respectively. According to the Articles of Association, the board of direc tors of Main Luck
Pharmaceutical consisted of six directors, of which two were appointed by the Group, accounting for
33.33% of voting rights. Therefore, the Group had significant influence over Main Luck Pharmaceutical,
and thus, it was considered as an associate of the Group.
(b) On 26 July 1994, the Group jointly established Shanghai Beiyi with Shanghai Beiyi (Group) Co.,
Ltd. and eight natural persons including Fuchun Zhu, with the share percentages being 26%, 26% and
48%, respectively. According to the Articles of Association, the board of directors of Shanghai Beiyi
consisted of seven directors, of which two were appointed by the Group, accounting for 28.57% of
voting rights. Therefore, the Group had significant influence over Shanghai Beiyi, and thus, it was
considered as an associate of the Group.
(c) On 25 November 2003, the Group jointly established Shanghai Liyi with Shanghai Pudong
District Central Hospital and Shanghai Liyi, with the share percentages being 35%, 35% and 30%,
respectively. According to the Articles of Association, the board of directors of Shanghai Liyi consisted
of five directors, of which two were appointed by the Group, accounting for 40.00% of voting rights.
Therefore, the Group had significant influence over Shanghai Liyi, and thus, it was considered as an
associate of the Group.
(d) On 5 March 2019, the Group acquired 30% shares of Shanghai Renbei. According to the
Articles of Association, the board of directors of Shanghai Renbei was composed of three directors, one
of whom was appointed by the Group, accounting for 33.33% of voting rights. Therefore, the Group has
significant influence over Shanghai Renbei, and thus, it is considered as an associate of the Group.
(e) In 2007, Dongyuan Accord, an associate of the Group, operated in poor conditions and its
future operation would be significantly uncertain, so the Group made a full provision for impairment of
the long-term equity investment on it.
(f) On 23 February 2016, the Group jointly established Guangdong Jienuo with Sinopharm Jienuo
Medical Treatment Service Co., Ltd. and Guangzhou Jinluo Investment Development Co., Ltd., with the
share percentages being 29%, 51% and 20%, respectively. According to the Articles of Association, the
board of directors of Guangdong Jienuo was composed of five directors, one of whom was appointed
by the Group, accounting for 20% of voting rights. Therefore, the Group has significant influence over
Guangdong Jienuo, and thus, it is considered as an associate of the Group. On 25 July 2019, the
Group, together with the current shareholders, Sinopharm Jienuo Medical Treatment Service Co., Ltd.
and Foshan Jiejianchengfeng Medical Equipment Co., Ltd., increased the capital of Guangdong Jienuo
by 29%, 51% and 20% according to the shareholding ratio respectively, and the total amount of the
increased capital was RMB6 million.
73
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
10. Long-term equity investments (Continued)
(g) On 23 November 2018, the Group jointly established Guangdong Jianhui with Guangdong
Construction Engineering Group Co., Ltd., Suixi People's Hospital and Guangdong Jianke Architectural
Design Institute Co., Ltd., with the share percentages being 10%, 79.90%, 10% and 0.10%, respectively.
The registered capital of the company was RMB20,000 thousand. On 22 March 2019, the Group
completed the investment of RMB2,000 thousand. According to the Articles of Association, the board of
directors of Guangdong Jianhui was composed of five directors, one of whom was appointed by the
Group, accounting for 20% of voting rights. Therefore, the Group has significant influence over
Guangdong Jianhui, and thus, it is considered as an associate of the Group. On 30 March 2020, the
Group made an additional investment of RMB6 million in Guangdong Jianhui according to the
shareholding ratio.
(h) The Group disposed of its 67% equity interest of Zhijun Suzhou in April 2016. After the disposal,
the Group held a 33% equity interest of Zhijun Suzhou. According to the Articles of Association, the
board of directors of Zhijun Suzhou was composed of five directors, one of whom was appointed by the
Group, accounting for 20% of voting rights. As a result, the Group has significant influence over Zhijun
Suzhou, and thus, it is considered as an associate of the Group. In 2019, on account of
mismanagement, there was significant uncertainty in the future operation of the Group's affiliated
enterprise, Zhijun Suzhou. Thus, the Group made full provision for impairment of the long-term equity
investment in Zhijun Suzhou.
(i) The Group subscribed 15.56% of new issued shares of Sinopharm Shyndec, a related party, by
transferring the productive assets in Pingshan base and its 51% equity interest of three pharmaceutical
companies (Sinopharm Zhijun, Zhijun Trade, Zhijun Pingshan) of the Group in 2016, respectively. After
the completion of the reorganization, Shyndec Pharma holds a 51% equity interest of each of the three
pharmaceutical companies, and the Group holds a 49% equity interest of each of the three
pharmaceutical companies, and they have significant influence over the three pharmaceutical
companies.
At the same time, after the completion of the reorganization, the Group holds a 15.56% equity interest
of Sinopharm Shyndec. Since Sinopharm Shyndec acquired the shares of subsidiaries with share-
based payment in previous years, as at 30 June 2021, the Group held a 16.28% equity interest of
Sinopharm Shyndec. Sinopharm Shyndec set up a board of directors that was responsible for the
shareholders' meeting, with a total of nine members, among which, one was appointed by the Group.
Each director shall represent one vote for resolutions of the board, accounting for 11.11% of the vo ting
rights. The Group has significant influence over Sinopharm Shyndec. The above three pharmaceutical
companies and Sinopharm Shyndec are considered as associates of the Group.
74
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
11. Other equity instrument investment
30 June 2021 31 December 2020
Sinopharm Health Online Co., Ltd. 67,056,227.40 67,056,227.40
Sinopharm Guoda Hubei Co., Ltd. 18,279,788.59 18,279,788.59
Shanghai Guoda Shuguang Pharmacy Co., Ltd. 8,242,076.02 8,242,076.02
Shanghai Guoren Pharmacy Co., Ltd. 5,493,260.45 5,493,260.45
Hunan Zhongbai Pharmaceutical Investment Co., Ltd. 416,987.82 416,987.82
99,488,340.28 99,488,340.28
单位：元
Recognized Accumulated Accumulated Amount Reas ons Reas ons for
dividend profits Loss transferred designated to transfer of
income from other be meas ured at other
comprehensive fair value with comprehensive
income to changes income to
retained included in retained
earnings other earnings
comprehensive
income
Sinopharm Non tradable
Healt h Online equity
Co., Ltd. - 55,056,227.40 - - instruments
Sinopharm Non tradable
Guoda Hubei equity
Co., Ltd. 2,280,159.50 17,279,788.59 - - instruments
Shanghai Non tradable
Guoda equity
Shuguang instruments
Pharmacy Co.,
Ltd. 50,000.00 7,971,316.02 - -
Shanghai Non tradable
Guoren equity
Pharmacy Co., instruments
Ltd. - 5,393,260.45 - -
Hunan Non tradable
Zhongbai equity
Pharmaceutical instruments
Investment Co.,
Ltd. - 101,987.82 - -
2,330,159.50 85,802,580.28 - -
75
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
12. Other non-current financial assets
30 June 2021 31 December 2020
Financial asset measured at fair value 117,974,908.51 120,972,350.24
through current profit or loss
On June 30, 2021, the balance of other non -current financial assets was the fair value of the share of Sinopharm CICC
Medical Industry Fund (referred to as “the Industry Fund”) subscribed by the Company. The Group's 21st meeting of
the 7th Board of Directors held on January 6, 2017 reviewed and approved the proposal of the Company to subscribe
for the industry fund and related party transactions. As a limited partner of the Industry Fund, the Company plans to
invest RMB 200 million to subscribe for the share of the Industrial Fund, which will be paid in three phases.The
Industrial Fund obtained the relevant licenses as well as approvals and started operating in 2018. As of December 31,
2019, the Company had paid a total of RMB 140 million. In June 2020, The Company received the withdraw fund of t his
project’s principal of RMB19, 027, 649.76 from Qirui P ort Investment Center LP of Ningbo Meishan Bonded Port. In
January 2021, The Company received the withdraw fund of this project’s principal o f RMB2,997,441.73 from Qirui Port
Investment Center LP of Ningbo Meishan Bonded Port. Since the cash flow obt ained by the Company from the
investment of the Industry Fund includes both the contractual cash flow generated by the underlying assets during the
investment period and the cash flow of the disposal of the underlying assets, the contractual cash flow that does not
satisfy the financial assets generated on a specific date is only the payment of interest on the basis of the outstanding
principal amount, therefore, the Company classifies the investment of the Industry Fund into financial assets measured
at fair value through profit or loss and present ed as other non-current financial assets.
.
76
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
13. Investment properties
Subsequent measurement under the cost model:
Buildings and Land use right Total
constructions
Original cost
Opening balance 225,645,845.78 20,988,818.44 246,634,664.22
Increase amount in current period 1,137,337.42 - 1,137,337.42
Purchase - - -
Trans fer from inventories\ fixed assets\construction in
progress 1,137,337.42 - 1,137,337.42
Decrease amount in current period (3,881,175.93) (841,319.61) (4,722,495.54)
Trans fer to intangible assets - (841,319.61) (841,319.61)
Trans fer to fixed assets (3,881,175.93) - (3,881,175.93)
Closing balance 222,902,007.27 20,147,498.83 243,049,506.10
Accumulated depreciation and amortization
Opening balance (109,976,379.20) 7,913,905.08 (117,890,284.28)
Increase amount in current period (3,206,808.84) (88,519.70) (3,295,328.54)
Provision (2,810,737.39) (88,519.70) (2,899,257.09)
Trans fer from fixed assets (396,071.45) - (396,071.45)
Decrease amount in current period 2,589,746.83 235,490.60 2,825,237.43
Trans fer to intangible assets - 235,490.60 235,490.60
Trans fer to fixed assets 2,589,746.83 - 2,589,746.83
Closing balance (110,593,441.21) 7,766,934.18 (118,360,375.39)
Provi sion for impairment
Opening balance and Closing balance (1,300,000.00) - (1,300,000.00)
Carrying amount
At end of the period 111,008,566.06 12,380,564.65 123,389,130.71
At beginning of the period 114,369,466.58 13,074,913.36 127,444,379.94
77
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
14. Fixed assets
30 June 2021 31 December 2020
Fixed assets 840,386,519.64 854,191,083.27
(1) Condition of fixed assets
Buildings and constructions Machinery and Motor vehicles Office equipments Electronic equipments Total
equipment
Original cost
Opening balance 704,639,396.43 305,450,662.64 96,751, 717. 47 365,642,213.00 121,068,984.00 1,593,552,973.54
Increase amount in current period 4,138,624.70 14,781,603.50 10,636,685.33 16,626,307.17 25,827,199.04 72,010,419.74
Purchase 257,448.77 12,411, 677. 50 9,041,665.55 14,689, 654. 35 23,670, 703. 55 60,071, 149. 72
Trans fer from construction in progress - 2,194,159.00 - - - 2,194,159.00
Trans fer from Investment properties 3,881,175.93 - - - - 3,881,175.93
Business combinations - 175,767.00 1,595,019.78 1,936,652.82 2,156,495.49 5,863,935.09
Decrease amount in current period (1,371,000.42) (568,600.21) (2,932,878.73) (2,953,830.43) (4,389,640.59) (12,215,950.38)
Trans fer to investment properties (1,137, 337. 42) - - - - (1,137, 337. 42)
Disposal or retirement (233,663.00) (568,600.21) (2,932, 878. 73) (2,953, 830. 43) (4,389, 640. 59) (11,078,612.96)
Closing balance 707,407,020.71 319,663,665.93 104,455,524.07 379,314,689.74 142,506,542.45 1,653,347,442.90
78
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
14. Fixed assets (Continued)
(1) Condition of fixed assets (Continued)
Buildings Machinery and Motor vehicles Office equipments Electronic equipments Total
equipment
Accumulated depreciation
Opening balance (238,423,991.05) (148,242,155.24) (58,335,271.31) (216,568,139.60) (77,792,333.07) (739,361,890.27)
Increase amount in current period (16,424,080.50) (26,413,396.62) (4,758,056.66) (16,722,112.14) (16,673,703.93) (80,991,349.85)
Provision (13,834,333.67) (26,413,396.62) (4,758, 056. 66) (16,722,112.14) (16,673,703.93) (78,401,603.02)
Trans fer from Investment properties (2,589, 746. 83) - - - - (2,589, 746. 83)
Decrease amount in current period 418,887.13 427,677.74 2,364,303.93 1,555,286.72 2,626,161.34 7,392,316.86
Disposal or retirement 22,815.68 427,677.74 2,364,303.93 1,555,286.72 2,626,161.34 6,996,245.41
Trans fer to investment properties 396,071.45 - - - - 396,071.45
Closing balance (254,429,184.42) (174,227,874.12) (60,729,024.04) (231,734,965.02) (91,839,875.66) (812,960,923.26
Carrying amount
At end of period 452,977,836.29 145,435,791.81 43,726, 500. 03 147,579,724.72 50,666, 666. 79 840,386,519.64
At beginning of the period 466,215,405.38 157,208,507.40 38,416, 446. 16 149,074,073.40 43,276, 650. 93 854,191,083.27
79
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
14. Fixed assets (Continued)
(2) Condition of Fixed assets falling to accomplish certification of title
Book value Reas on for not obtaining certification of title
As at 30 June 2021, the Company has not yet obtained the certification of title
for No.13 Jingxing North Street, Tiexi District, Shenyang. The t rans feror, the
Buildings and constructions 25,199,513.22
State-owned Assets Supervision and Administration Commission, was still
processing the case and had provided a relevant notification.
As at 30 June 2021, the Company has not yet obtained the certification of title
for No.53 Nanshizhong Street, Tiexi District, Shenyang. The trans feror, the
Buildings and constructions 40,072,822.06
State-owned Assets Supervision and Administration Commission, was still
processing the case and had provided a relevant notification.
As at 30 June 2021, the construction area is greater than the approved area,
the Group can not handle the housing property right certificate located at 31
Buildings and constructions 536,550.04
Yihe Street, Kaiyuan in Tieling City, Kaiyuan City Planning Bureau had provided
a construction project completion planning acceptance certificat e.
On 30 June 2021, due to the need for self-use storage, the Group has built its
own simple warehouse located at 2 Baiyu Road, Sujiatun District, Shenyang. The
Buildings and constructions 119,844.81
Group is unable to obt ain a home title certificate for the property there.
.
15. Construction in progress
30 June 2021 31 December 2020
Construction in progress 64,636,735.93 46,631,190.23
(1) Condition of construction in progress
30 June 2021 31 December 2020
Carrying Impairment Carrying Carrying balance Impairment Carrying
balance amount amount
Warehouse improvement
project 6,015,123.20 - 6,015,123.20 2,357,739.84 - 2,357,739.84
New office building project 2,449,885.09 - 2,449,885.09 2,654,403.71 - 2,654,403.71
Supply chain extension
project 14,289,469.53 - 14,289,469.53 12,248,729.81 - 12,248,729.81
Software project 28,344,537.25 - 28,344,537.25 19,443,779.83 - 19,443,779.83
Other construction projects 13,537,720.86 - 13,537,720.86 9,926,537.04 - 9,926,537.04
64,636,735.93 - 64,636,735.93 46,631,190.23 - 46,631,190.23
80
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
15. Construction in progress (Continued)
(2) Changes of significant construction in progress in current period
Proportion of
Source of
Decrease Closing balance investment to
funds
budget
Project name Budget Opening balance Increase
Trans ferred to
Trans ferred to Long-term prepaid
fixed assets expenses
Warehouse
improvement project 13,241, 063. 70 2,357,739.84 9,311,593.33 2,194,159.00 3,460,050.97 6,015,123.20 93.08% Own capital
New office building
Project 3,600,282.07 2,654,403.71 - - 204,518.62 2,449,885.09 10.54% Own capital
Supply chain extension
project 24,311, 152. 00 12,248, 729. 81 2,040,739.72 - - 14,289, 469. 53 58.22% Own capital
Software project 113,000,000.00 19,443, 779. 83 8,900,757.42 - - 28,344, 537. 25 25.08% Own capital
Other construction
projects 225,408,891.74 9,926,537.04 20,559, 244. 54 - 16,948, 060. 72 13,537, 720. 86 13.17% Own capital
379,561,389.51 46,631, 190. 23 40,812, 335. 01 2,194,159.00 20,612, 630. 31 64,636, 735. 93
81
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
16. Right-of-use assets
Buildings and Machinery, transport and
Others Total
constructions office equipment
Original cost
Opening balance 3,642,726,568.57 6,617,052.55 2,418,809.35 3,651,762,430.47
Increase amount in current period 722,812,718.72 255,241.57 - 723,067,960.29
Incl: Business combinations not
under common control 41,709, 665. 65 - - 41,709, 665. 65
Decrease amount in current period (269,712,235.31) (1,389,315.12) - (271,101,550.43)
Disposal
(269,712,235.31) (1,389, 315. 12) - (271,101,550.43)
Closing balance 4,095,827,051.98 5,482,979.00 2,418,809.35 4,103,728,840.33
Accumulated depreciation
Opening balance 1,289,526,014.83 5,092,290.96 191,731.69 1,294,810,037.48
Increase amount in current period 493,418,631.21 166,716.16 47,473.92 493,632,821.29
Provision 493,418,631.21 166,716.16 47,473.92 493,632,821.29
Decrease amount in current period (207,845,002.04) (743,191.11) - (208,588,193.15)
Disposal (207,845,002.04) (743,191.11) - (208,588,193.15)
Closing balance 1,575,099,644.00 4,515,816.01 239,205.61 1,579,854,665.62
Carrying amount
At end of the period 2,520,727,407.98 967,162.99 2,179,603.74 2,523,874,174.71
At beginning of the period 2,353,200,553.74 1,524,761.59 2,227,077.66 2,356,952,392.99
82
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
17. Intangible assets
Trademarks and
Land use rights Software brands use rights Favorable leases Distribution network Franchise Total
Original cost
Opening balance 88,694, 377. 76 198,298,230.20 282,036,925.12 127,486,000.00 283,573,678.24 710,000.00 980,799,211.32
Increase amount in current period 841,319.61 6,604,973.46 40,440,000.00 - - - 47,886,293.07
Purchases - 6,383,557.95 - - - - 6,383,557.95
Business combinations not under common
control - 221,415.51 40,440, 000. 00 - - - 40,661, 415. 51
Transfer from investment properties 841,319.61 - - - - - 841,319.61
-
Closing balance 89,535, 697. 37 204,903,203.66 322,476,925.12 127,486,000.00 283,573,678.24 710,000.00 1,028,685,504.39
-
Accumulated amortization
Opening balance (30,664,860.97) (111,160,831.01) (5,060, 783. 81) (37,878,526.79) (60,979,029.34) (710,000.00) (246,454,031.92)
Increase amount in current period (1,129,159.45) (11,528,055.72) (6,550,848.51) (3,542,977.94) (7,987,906.67) - (30,738,948.29)
Provision (893,668.85) (11,528,055.72) (6,550, 848. 51) (3,542, 977. 94) (7,987, 906. 67) - (30,503,457.69)
Transfer from investment properties (235,490.60) - - - - - (235,490.60)
Closing balance (31,794,020.42) (122,688,886.73) (11,611,632.32) (41,421,504.73) (68,966,936.01) (710,000.00) (277,192,980.21)
83
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
17. Intangible assets (Continued)
Trademarks and
Land use rights Software brands use rights Favorable leases Distribution network Franchise Total
Provision for impairment
Opening balance - - - - - - -
Closing balance - - - - - - -
Carrying amount
At end of the year 57,741, 676. 95 82,214, 316. 93 310,865,292.80 86,064, 495. 27 214,606,742.23 - 751,492,524.18
-
At beginning of the year 58,029, 516. 79 87,137, 399. 19 276,976,141.31 89,607, 473. 21 222,594,648.90 - 734,345,179.40
84
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
18. Goodwill
(1) Original Book Value of goodwill
Decrease
during this
Increase during this period period
Names of the investee or matters of forming Merger of Business Closing
Opening balance
goodwill holdings combinations balance
not under not under
common common
control control
Sinopharm Holding (Jiangmen) 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”) 6,772,561.47 6,772,561.47
Sinopharm Holding Maoming Co., Ltd.(“Sinopharm
Maoming”) 66,417.07 - - - 66,417.07
Sinopharm Holding Guoda ForMe Medicines
(Shanghai) Co., Ltd. (“ForMe Medicines’’) 3,033,547.53 - - - 3,033,547.53
Sinopharm Hebei Lerentang Pharmacy Chain Store
Co., Ltd.(“Hebei Lerentang”) 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. (“Shanxi Guoda Wanmin”) 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.(“Shanghai Guoda”) 5,028,638.00 - - - 5,028,638.00
Sinopharm Holding Guoda Yangzhou Dadesheng
Pharmacy Chain Store Co., Ltd.(“Yangzhou
Guoda”) 7,979,000.00 - - - 7,979,000.00
Zhejiang Guoda Pharmacy Co., Ltd.(“Zhejiang
Guoda”) 3,045,183.85 - - - 3,045,183.85
Sinopharm Holding Guoda Nanjing Pharmacy
Chain Store Co., Ltd.(“Nanjing Guoda”) 11,598,341.12 - - - 11,598,341.12
Fujian Guoda Pharmacy Chain Store Co.,
Ltd.(“Fujian Chain”) 1,567,250.76 - - - 1,567,250.76
Sinopharm Holding Guoda Shandong Pharmacy
Chain Store Co., Ltd.(“Shandong Guoda”) 29,110,409.46 - - - 29,110,409.46
Sinopharm Holding Guoda Shenyang Pharmacy
Chain Store Co., Ltd. (“Shenyang Guoda”) 41,047,958.08 - - - 41,047,958.08
Liyang Guoda People Pharmacy Chain Store Co.,
Ltd.(“Liyang Guoda”) 107,275,095.74 - - - 107,275,095.74
85
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
18. Goodwill (Continued)
(1) Original Book Value of goodwill (Continued)
Decrease
during
this
Names of the investee or matters of Opening Increase during this period period Closing
forming goodwill balance Merger of Business balance
holdings not combinations
under common not under
control common control
Sinopharm Holding Hunan Guoda
Minshengtang Pharmacy Chain Co.,
Ltd.(“Hunan Guoda”) 41,165,574.64 - - - 41,165,574.64
Quanzhou Guoda Pharmacy Chain Store
Co., Ltd. (“Quanzhou Guoda”) 41,298,622.59 - - - 41,298,622.59
Sinopharm Holding Guoda Henan
Pharmacy Chain Store Co., Ltd.(“Henan
Guoda”) 22,666,179.77 - - - 22,666,179.77
Guoda Neimenggu 70,485,777.00 - - - 70,485,777.00
Sinopharm Guoda Pharmacy Jiangmen
Chain Co., Ltd.(“Jiangmen Guoda”) 77,350,000.00 - - - 77,350,000.00
Sinopharm Holding Guoda Shanxi Yiyuan
Pharmacy Chain Store Co., Ltd.(“Shanxi
Guoda Yiyuan”) 9,080,100.00 - - - 9,080,100.00
Shenzhen Guanganli Pharmacy Chain
Store Co., Ltd. ‘s Store Acquisition 13,420,000.00 - - - 13,420,000.00
Beijing Golden Elephant Pharmacy
Medicine Chain Company
Limited(“Beijing Golden Elephant”) 64,140,124.36 - - - 64,140,124.36
Guoda Taishan 26,826,120.55 - - - 26,826,120.55
Taiyuan Tongxinli Pharmacy Co., Ltd.
(“Taiyuan Tongxinli”) 2,818,647.85 - - - 2,818,647.85
Sinopharm Holding Guoda Yongxingtang
Pharmacy Chain Store (Chaoyang) Co.,
Ltd (“Chaoyang Yongxingtang”) 25,973,399.17 - - - 25,973,399.17
Neimenggu Tongren Big Pharmacy Chain
Co., Ltd. store acquisition. 13,494,000.00 - - - 13,494,000.00
Guoda Pu’er 71,064,684.79 - - - 71,064,684.79
Shanghai Pudong New Area
Pharmaceuticals Co., Ltd.(“Pudong
Pharmaceuticals”) 65,978,042.61 65,978,042.61
Shanghai Dingqun Enterprise
Management Consulting Co., Ltd. 520,836,246.17 - - - 520,836,246.17
Cheng Dafang Pharmaceutical Group Co.,
Ltd 1,182,443,676.11 - - - 1,182,443,676.11
Liaoning Xianzhen Pharmaceutical Chain
Co., Ltd. 34,037,431.66 - - - 34,037,431.66
Yunnan Guoda Disheng pharmacy chain
Co., Ltd (“Disheng Chain”)(Note 1) - 152,157,935.52 - - 152,157,935.52
China Pharmaceutical Holdings Nantong
Puji Pharmacy Chain Co., Ltd. store
acquisition (Note 2) - - 11,498,100.00 - 11,498,100.00
Shanxi Huimin Kangwei Big Pharmacy
Chain Co., Ltd. store acquisition (Note 3) - - 20,970,000.00 - 20,970,000.00
2,772,375,281.11 152,157,935.52 32,468,100.00 2,957,001,316.63
86
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
18. Goodwill (Continued)
(2) Provision of impairment loss
Names of the investee or matters of
forming goodwill Opening balance Increase Decrease Closing balance
Guoda Quanzhou 25,000,000.00 - - 25,000,000.00
Relevant information of asset group or combination of asset groups in which goodwill is located
Explain the process of goodwill impairment test, key parameters (such as the growth rate in the forecast period, the growt h r ate in
the stable period, the profit rate, the discount rate, the forecast period, etc.) and the recognition method of goodwill impairment
loss:
The carrying value of goodwill is apportioned according to the proportion of each asset group or combination of asset groups at
fair value of the total amount of goodwill at fair value. It is shown as follows:
30 June 2021 31 December 2020
Pharmaceutical distribution 152,865,497.03 152,865,497.03
Pharmaceutical ret ail 2,779,135,819.60 2,594,509,784.08
2,932,001,316.63 2,747,375,281.11
The recoverable amount of asset group and combination of asset groups is calculated based on the five-year period budget
approved by the management while using the cash flow forec ast method. The cash flows beyond the five-year period are
extrapolated using the inflation rate.
Key assumptions were used for the calculation of the present values of future cash flow projections of asset group and
combination of asset groups consisting of pharmaceutical distribution and pharmaceutical retail as of 30 June 2021. Key
assumptions made by management on projections of cash flows used in impairment testing are described as follows:
Pharmaceutical distribution Pharmaceutical ret ail
Revenue growth rate in the budget period 1.79%-16.00% 2.67%-16.43%
Sustainable growth rate 3.00% 3.00%
Gross margin 3.56%-6.40% 12.40% -50. 58%
Discount rat e 12.40% -15. 00% 13.00% -15. 00%
87
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
18. Goodwill (Continued)
The budgeted gross margin and the revenue growth rate in the budget period are determined based on
the past performance and expectation for market development. The discount rates used are pre-tax
discount rates after reflecting specific risks of the relevant asset groups. The recoverable amount of the
asset group consisting of pharmaceutical distribution and pharmaceutical retail was determined
according to the key assumptions.
Impact of goodwill impairment test
Other declarations
Note 1:The Group acquired a 70% stake in Yunnan Guoda Disheng Pharmaceutical Chain Co., Ltd. in
March 2021, and after the acquisition, it formed goodwill of RMB152,157,935.52, the calculation
process of which is detailed in Notes VI-1.
Note 2:The Group acquired 15 direct stores of Nantong Puji Pharmacy Chain Co., Ltd. in March 2021,
and after the acquisition, it formed goodwill of RMB11,498,100.00, the calculation process of which is
detailed in Notes VI-1.
Note 3:The Group acquired 32 direct stores of Shanxi Huimin Kangwei Pharmaceutical Chain Co., Ltd.
in February 2021, and after the acquisition was completed, it formed goodwill of RMB20,970,000.00,
the calculation process of which is detailed in Notes VI-1
19. Long-term prepaid expenses
Opening balance Additions Amortization Other decrease Closing balance
Fixed asset improvement
expenditure 336,895,157.13 73,939, 831. 45 63,049, 121. 27 1,789,848.54 345,996,018.77
Acquisition expenditure to
obtain the right to operate 95,802, 321. 95 70,780, 659. 86 10,579, 442. 60 - 156,003,539.21
Others 25,007, 797. 01 1,655,150.46 5,469,516.47 - 21,193, 431. 00
457,705,276.09 146,375,641.77 79,098, 080. 34 1,789,848.54 523,192,988.98
88
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
20. Deferred tax assets/liabilities
(1) Deferred tax assets before offseting
30 June 2021 31 December 2020
Deductible temporary Deferred tax assets Deductible temporary Deferred tax
differenc es differenc es assets
Provision for
impairment of
assets 196,487,679.43 46,536,628.81 170,577,875.56 40,697,280.41
Deductible tax
loss 32,245,677.79 8,061,419.46 30,798,485.93 7,699,621.49
Impact of lease
criteria 109,849,225.12 27,234, 338. 93 93,685,083.09 22,420,179.23
Accrued
expenses 108,024,144.57 25,409,713.77 113,445,282.36 26,095,709.73
Member bonus
points 61,049,011.99 14,722,901.75 59,179,220.98 14,575,814.61
Accrued pay roll 45,855,424.22 10,861,893.44 47,280,390.08 11,210,512.95
Others 20,119,732.62 4,832,303.97 21,096,550.78 4,641,850.41
573,630,895.74 137,659,200.13 536,062,888.78 127,340,968.83
(2) Deferred tax liabilities before offseting
30 June 2021 31 December 2020
Taxable temporary Deferred tax Taxable temporary Deferred tax
differenc es liabilities differenc es liabilities
Fair value adjustment
for business
combination not
involving ent erprises
under common
control 716,667,762.07 179,197,391.85 713,703,864.68 178,425,966.17
Changes in fair value
of financial assets
through other
comprehensive
income 85,802, 580. 28 21,450, 645. 07 85,802,580.28 21,450,645.07
One-time deduction for
fixed assets under
five million yuan 123,264,042.43 30,816, 010. 64 126,722,799.31 31,679, 099. 86
Division restructuring
assets to assess
value-added
differenc es 16,029, 854. 96 4,007,463.74 17,160, 546. 40 4,290,136.60
Others 28,333, 035. 97 6,090,083.17 25,205, 927. 86 5,297,761.98
970,097,275.71 241,561,594.47 968,595,718.53 241,143,609.68
89
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
20. Deferred tax assets/liabilities (Continued)
(3) Deferred tax assets and liabilities are presented after being offset against each other:
30 June 2021 31 December 2020-
Deferred tax Temporary Deferred tax Temporary
assets/liabilities - differences assets/liabilities - differences
Net after set-off Net after set-off
Deferred tax assets 41,063,450.80 96,595,749.33 35,222,201.02 92,118,767.81
Deferred tax liabilities 41,063, 450. 80 200,498,143.67 35,222,201.02 205,921,408.66
(4) The deductible temporary differences and deductible losses that were not recognized as deferred
tax assets are presented as follows:
30 June 2021 31 December 2020
Deductible temporary differences 11,920, 797. 79 9,435,555.39
Deductible loss 61,373,403.25 61,373,403.25
73,294,201.04 70,808,958.64
(5) The aforesaid unrecognized deductible losses will due:
30 June 2021 31 December 2020
2021 2,563,056.08 2,563,056.08
2022 7,261,117.97 7,261,117.97
2023 11,977, 477. 56 11,977,477.56
2024 22,579, 176. 44 22,579,176.44
2025 16,992, 575. 20 16,992,575.20
61,373, 403. 25 61,373,403.25
90
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
21. Other non-current assets
30 June 2021 31 December 2020
Carrying
Carrying balance Impair ment amount Carrying balance Impair ment Carrying amount
Physical assets reserve
specif ically
authorized 331,870,456.97 - 331,870,456.97 260,590,932.98 - 260,590,932.98
Security deposit 100,326,250.00 (70,000.00) 100,256,250.00 114,186,431.57 - 114,186,431.57
Prepayment for project
and equipment 40,757,628.00 - 40,757,628.00 24,809,091.30 - 24,809,091.30
Contract assets 8,238,308.92 (120,404.87) 8,117,904.05 7,081,263.45 (82,188.73) 6,999,074.72
Other 3,257,615.30 - 3,257,615.30 1,611,992.27 - 1,611,992.27
484,450,259.19 (190,404.87) 484,259,854.32 408,279,711.57 (82,188.73) 408,197,522.84
22. Short-term borrowings
30 June 2021 31 December 2020
Credit borrowings 4,632,933,904.39 1,612,187,020.12
At 30 June 2021, the annual interest rate for the above borrowings was 2.28% ( (31 December 2020：3.49% )).
At 30 June 2021 and 31 December 2020, there were no short-term borrowings of the Group that were overdue but not yet
paid.
23. Notes payable
30 June 2021 31 December 2020
Commercial acceptance bills 93,061,594.94 56,360,197.69
Bank acceptance bills 6,687,363,494.23 7,463,805,077.00
6,780,425,089.17 7,520,165,274.69
At 30 June 2021, the total amount of not es payable that were due but not yet paid was nil (31 December 2020：nil).
91
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
24. Accounts payable
30 June 2021 31 December 2020
Payment for goods 9,642,504,836.50 7,697,451,142.50
At 30 June 2021, significant accounts payable aged over one year was analyzed below:
Amount Reas on
Payment for goods 429,971,551.39 Has not been settled
At 30 June 2021, accounts payable aged over one year, mainly the unsettled payment for goods, was RMB429,971,551.39 (31
December 2020: RMB398,772,102.49).
25. Receipts in advance
30 June 2021 31 December 2020
Advanced lease payment 14,868,097.97 12,352,466.64
26. Contract liabilities
30 June 2021 31 December 2020
Cont ract liabilities 316,827,151.78 368,600,357.14
The ending balance of contract liabilities is the advance payments received by the Group. A fter the Group receives the advanc e
payments by the c ustomer for the s ales of goods, it will generally perform the performance obligation and recognise the revenue
within about 6 months.
27. Employee benefits payable
31 December 2020 Increase Decrease 30 June 2021
Short-term employee benefits (1) 347,602,975.86 1,442,005,710.81 1,554,869,193.60 234,739,493.07
Post-employment benefits
(defined contribution plan) (2) 9,216,204.49 135,235,733.49 137,243,137.06 7,208,800.92
Termination benefits 392,866.75 560,719.50 695,897.15 257,689.10
357,212,047.10 1,577,802,163.80 1,692,808,227.81 242,205,983.09
92
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
27. Employee benefits payable(Continued)
(1) Short-term employee benefits
31 December
Increase Decrease 30 June 2021
2020
Salaries, bonuses, allowances and grants 330,233,181.61 1,259,235,407.05 1,376,555,529.89 212,913,058.77
Staff welfare 1,469,381.07 32,807,596.67 33,096,433.74 1,180,544.00
Social security contribution 2,194,328.52 74,031,911.08 74,006,336.50 2,219,903.10
Incl: Medical insuranc e 1,531,693.95 68,900,758.25 68,513,264.14 1,919,188.06
Work injury insurance 84,285.35 2,846,079.32 2,857,214.97 73,149.70
Maternity insurance 578,349.22 2,285,073.51 2,635,857.39 227,565.34
Housing funds 1,650,393.19 52,281,928.06 52,197,609.56 1,734,711.69
Labor union funds and employee
education funds 11,183,869.70 22,386,728.92 20,702,330.34 12,868,268.28
Other short-term benefits 871,821.77 1,262,139.03 (1,689,046.43) 3,823,007.23
347,602,975.86 1,442,005,710.81 1,554,869,193.60 234,739,493.07
(2) Defined contribution plan
31 December 2020 Increase Decrease 30 June 2021
Basic pension
insurance 3,593,380.27 128,854,477.21 127,826,836.98 4,621,020.50
Unemployment
insurance 106,718.12 3,965,369.33 3,905,028.02 167,059.43
Cont ribution to
pension fund 5,516,106.10 2,415,886.95 5,511,272.06 2,420,720.99
9,216,204.49 135,235,733.49 137,243,137.06 7,208,800.92
Note：For the half year of 2021, the Group provided other termination benefits for severing labor relations of RMB406,814.34.
For the half year of 2020, the Group provided other termination benefits for severing labor relations of RMB 155,676.56.Other
termination benefits that were reversed for there was no need to pay for se vering labor relations were nil.
93
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
28. Tax payable
30 June 2021 31 December 2020
Value-added tax 75,280,000.02 102,586,862.95
Corporate Income taxes 182,236,074.48 173,016,908.47
Individual income tax 7,083,305.63 6,790,402.61
City maintenance and construction surtax 6,333,456.10 6,993,947.17
Stamp duty 7,697,463.21 8,243,076.57
Water conservancy fund 5,572,222.75 5,586,926.64
Educational surcharge 5,131,997.40 5,254,608.43
Property tax 1,300,695.62 664,697.78
Land use tax 148,696.04 54,028.60
Others 7,417,676.88 7,675,689.94
298,201,588.13 316,867,149.16
29. Other payables
30 June 2021 31 December 2020
Interest payable 16,255,309.75 35,572,620.82
Dividend payable 7,911,748.36 6,389,320.96
Other payables 1,507,731,959.76 1,557,204,939.36
1,531,899,017.87 1,599,166,881.14
(1) Interest payable
30 June 2021 31 December 2020
Factoring interest on accounts receivable 16,255,309.75 35,572,620.82
94
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
29. Other payables(Continued)
(2) Dividend payable
30 June 2021 31 December 2020
Shanghai Fosun Pharmaceutical (Group) Co.,
Ltd. 4,835,511.58 4,835,511.58
Dividend payable to Zhang Zhenfang 1,389,639.31 1,389,639.31
Meiluo Pharmaceutical Co., Ltd. 164,170.07 164,170.07
Longfeng Du 526,506.14 -
Dong Wang 336,202.71 -
Haiming Liu 177,616.53 -
Guozhu Tang 69,777.92 -
Xiancheng Liu 88,808.27 -
Shaojun Yan 44,404.13 -
Haiyu Liu 38,060.69 -
Qinghua Wang 126,868.95 -
Zhancheng Liang 114,182.06 -
7,911,748.36 6,389,320.96
At 30 June 2021 and 31 December 2020, the Group had no significant dividend aged more than one year and not yet paid.
(3) Other payables
30 June 2021 31 December 2020
Deposit 484,838,817.90 472,800,624.92
Payables for factoring programs 325,153,045.22 576,523,284.81
Accrued expenses 210,959,892.77 213,950,722.34
Equity payables 207,199,828.25 38,702,372.01
Payables for rentals 95,120,391.91 68,417,303.16
Payables for construction in progress and equipment 44,723,287.89 40,898,589.59
Payables to individuals 26,098,245.60 25,869,320.67
Collection of ot hers 20,055,565.05 19,119,286.19
Payables for land transfer payments 12,597,500.00 12,597,500.00
Temporary loans 11,198,533.00 11,017,981.51
Payables to related parties 5,138,862.34 5,093,263.36
Others 64,647,989.83 72,214,690.80
1,507,731,959.76 1,557,204,939.36
95
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
29. Other payables(Continued)
At 30 June 2021, significant other payables over 1 year are:
Amount pay able Reas on for outstanding
Equity payable 36,000,000.00 Payment conditions not met
Deposits 37,744,837.63 Payment conditions not met
Accrued expenses 6,223,452.82 Payment conditions not met
Payables for land transfer payments 12,597,500.00 Payment conditions not met
92,565,790.45
30. Non-current liabilities due within 1 year
30 June 2021 31 December 2020
Lease liabilities due within 1 year 798,170,618.10 748,732,059.89
31. Other current liabilities
30 June 2021 31 December 2020
Pre-collected VAT 20,997, 225. 61 24,142, 106. 09
Output VA T to be recognized 1,435,222.36 644,972.46
22,432, 447. 97 24,787,078.55
32. Long-term borrowings
31 December 2021 31 December 2020
Credit loan 30,000,000.00 -
Entrusted loans 31,633,794.44 31,637,173.89-
61,633,794.44 31,637,173.89
At 30 June 2021, the total amount of remaining ent rusted loans was RMB 31,633,794.44 (31 December 2020:
RMB31, 637,173.89)., which was the loan from Sinopharm Group Finance Co., Ltd entrusted by CNP GC to the group, the
weighted average annual interest rate of the entrusted loans was 3.34%(31 December 2020: 3.41%).
At 30 June 2021, the balance of credit borrowings was RMB30, 000,000.00 (31 December 2020: None). The annual interest
rate on this credit loan is 4.05% (31 December 2020 : None).
96
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
33. Lease liabilities
30 June 2021 31 December 2020
Lease payment 2,159,301,970.90 2,051,786,223.79
Less: Lease liabilities due within 1 year 798,170,618.10 748,732,059.89
1,361,131,352.80 1,303,054,163.90
34. Long-term payables
30 June 2021 31 December 2020
Payables for specific projects 6,938,189.00 6,938,189.00
Payables for specific projects:
31 December 2020 Increase Decrease 30 June 2021 Reasons of derred
income
Special funds granted by - - Funds grant ed by
government (1) 800,000.00 800,000.00 government
Medical reserve funds (2) 6,138,189.00 - - 6,138,189.00
6,938,189.00 - - 6,938,189.00
(1) The specific payables are research funds alloc ated by government departments and are accounted for the specific payable
account at the time of allocation.
(2)The medical res erve funds were allocat ed by the Liaoning Province Department of Finance to Liaoning Chengda Fangyuan
pharmaceutical chain Co., Ltd which was incorporated into the consolidation in 2020.
35. Long-term employee benefits payable
30 June 2021 31 December 2020
Early retirement benefits payable 1,262,000.00 1,319,000.00
36. Provisions
30 June 2021 31 December 2020
Pending litigation or arbitration (1) 68,663,166.79 68,808,166.79
(1) Four companies with Zhang Peng as the actual controller signed several contracts with Shenyang Branch of Bank of
Dalian Co., Ltd. (“the Bank”) in previous years, which agreed that the above companies would t rans fer their c reditor's rights
of accounts receivable of Liaoning Chengda Fangyuan Pharmaceutical Co., Ltd. to the Bank, and the Bank would conduct
factoring business for the above companies in accordance with the agreement. As the four companies failed to pay the
relevant amount to the Bank, the Bank filed a lawsuit to the People’s Court, requesting Liaoning Chengda Fangyuan
Pharmaceutical Co., Ltd. and its parent company, CDFY, to assume the corresponding legal responsibilities. Liaoning
Chengda Fangy uan P harmaceutical Co., Ltd. confirmed its estimated liabilities based on the progress of the case before
being included in the scope of consolidation of Sinopharm Group Accord Pharmaceutical Co., Ltd.
97
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
37. Deferred income
Opening balance Increase Decrease Closing balance Reas ons of
deferred income
Government grants 89,610,262.61 7,520,212.93 5,962,539.84 91,167,935.70 Government grant
VAT Additional VAT additional de
deduction 233,320.76 835,816.61 921,739.18 147,398.19 duction
89,843,583.37 8,356,029.54 6,884,279.02 91,315,333.89
As at 30 June 2021, deferred income from government grants are as follows:
Government grants Opening Addition Amount Amount Offset cost Closing Asset related/
program balance included in included in amount in balance income
non-operating other income current related
income period
Resettlement
Compensation
(Note) 70,158, 624. 05 - 1,349,204.28 - - 68,809,419.77 Asset related
Funds for the
construction of a
modern supply chain
system in the central
circulation field in
2018 4,353,019.54 7,450,000.00 - 2,143,819.53 - 9,659,200.01- Asset related
Logistics project
Nanning Economic
Development Zone
construction support
fund 4,846,565.87 - - 93,203. 22 - 4,753,362.65 Asset related
Guangzhou logistics
standardization pilot
project 1,722,518.87 - - 273,123.42 - 1,449,395.45 Asset related
Shenyang Tiexi
Government
housing subsidies 1,325,001.32 - - 40,561. 32 - 1,284,440.00 Asset related
Asset/Income
Other projects 7,204,532.96 70,212. 93 - 2,037,129.45 25,498.62 5,212,117.82 related
Note:
Due to t he 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 in May 2012, Guangxi Logistics would
obtain a compensation of RMB120,250,000.00, including cash of RMB50,000,000.00 and a property in construction equal
to value of RMB70, 250,000.00. Cash compensation of RMB50,000,000.00 was received in May 2012. In 20 15,
construction properties with a value of RMB70,250,000.00 were built and delivered, and had been recognised as
investment properties.
The compensation relating to the capital expenditure in the reconstruction of the new logistic center in another plac e,
amounting to RMB93, 320, 000.00, was recognised as deferred revenue, and would be amortized and recognised in the
income statement within the expected us eful lives using the straight -line method, and the other cash compensation, of
which the amount approximat es to RMB26,930,000.00, was recognised in the income statement in 2012.
98
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
38. Other non-current liabilities
30 June 2021 31 December 2020
Governmental medical reserve funds (1) 600,009,111.26 711,029,182.37
Product promotion accumulative points
programme (2) 30,824, 503. 22 29,815,911.17
Other 6,140.53 17,896.05
630,839,755.01 740,862,989.59
(1) Governmental medical reserve funds are the funds received from the national and local governments for purchasing
reserve medical supplies.
(2) The Product promotion accumulative points programme refers to those product -originated accumulative points that
remain more than one year surplus before the expiration dat e.
39. Share capital
Movement during the current year
31 December 2020 Issue of new share Others Subtotal 30 June 2021
Shares 428,126,983.00 - - - 428,126,983.00
40. Capital surplus
31 December 2020 Increase Decrease 30 June 2021
Share premium 2,118,174,787.27 - - 2,118,174,787.27
Other capital surplus 2,254,329,266.45 - (460,868.29) 2,253,868,398.16
4,372,504,053.72 - (460,868.29) 4,372,043,185.43
Changes in other equity of Shyndec Pharma, an associate of the group, reduce the book value of long-term equity
investment and include it in the capital res erve of RMB -460,868.29.
99
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
41. Other comprehensive income
Amounts changes in current period
31 December 2020 Occurrence amount Attributable to shareholders 30 June 2021
before tax of owners of the parent
Other comprehensive inc ome items 38,611,051.04 - - 38,611,051.04
which will not be reclassified
subsequently to profit or loss
Incl: Change in the fair value of other 38,611,051.04 - - 38,611,051.04
equity investments
Other comprehensive inc ome that (128,033.32) 64,854.90 64,854.90 (63,178.42)
may be reclassified to profit or loss
Incl: Other comprehensive income (128,033.32) 64,854.90 64,854.90 (63,178.42)
using the equity method that may
be reclassified to profit or loss
38,483,017.72 64,854.90 64,854.90 38,547,872.62
42. Surplus reserve
31 December 2020 Increase Decrease 30 June 2021
Statutory surplus reserves 214,063,491.50 - - 214,063,491.50
43. Retained earnings
30 June 2021 31 December 2020
Retained earnings at beginning of year before
retrospective adjustment and restatement 8,895,145,106.39 7,755,295,537.08
The retrospective adjustment and restatement - (3,029,877.91)
Retained earnings at beginning of year after
retrospective adjustment and restatement 8,895,145,106.39 7,752,265,659.17
Add: Net profit attributable to the parent 741,445,013.25 1,401,892,593.23
Less: Dividend payable on common stock 342,501,586.40 256,876,189.80
Other - 2,136,956.21
Retained earnings on June 30, 2020 9,294,088,533.24 8,895,145,106.39
Adjust the details of undistributed profits at the beginning of the period:
1) . due to the retroactive adjustment of the accounting standards for business enterprises and its relevant new provisions, the
undistributed profit at the beginning of the period was affected by 0.00 yuan.
2) . due to the change of accounting policy, the undistributed profit at the beginning of the period is 0.00 yuan.
3) . due to the correction of major accounting errors, the undistribut ed profit at the beginning of the period was affected b y 0.00
yuan.
4) . the change of consolidation scope caused by the same control affects the undistributed profit at the beginning of the period by
0.00 yuan.
5) . the total of other adjustments affects the undistributed profit at the beginning of the period by 0.0
V Notes to the consolidated financial statements (Continued)
100
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
44. Operating revenue and cost
For the six months ended For the six months ended
30 June 2021 30 June 2020
Revenue Cost Revenue Cost
Principal operations 32,841,264,479.56 29,156,249,513.96 26,944,450,698.03 23,953,267,481.54
Other operations 321,827,407.83 60,587,687.11 225,489,490.49 17,762,237.90
33,163,091,887.39 29,216,837,201.07 27,169,940,188.52 23,971,029,719.44
Classification Head Office Pharmaceutical Pharmaceutical retail Elimination Total
distribution between segments
By product
Incl:
Pharmaceuticals
- 19,828,394,853.85 10,676,855,504.22 (499,204,175.96) 30,006,046,182.11
Medical devices and
disposables
- 2,076,206,193.67 134,724,521.61 - 2,210,930,715.28
Diagnostic reagents
- 515,191,908.40 - - 515,191,908.40
Medical equipments
- 278,181,437.86 - - 278,181,437.86
Others 4,532,508.37 111,779,259.15 - (5,938,298.55) 110,373,468.97
By area
Incl:
China 4,532,508.37 22,809,753,652.93 10,811,580,025.83 (505,142,474.51) 33,120,723,712.62
By types of activity
Incl:
Pharmaceutical
distribution
- 21,697,696,043.60 1,958,602,731.53 (499,204,175.96) 23,157,094,599.17
Retail pharmacy
- 1,000,278,350.18 8,852,977,294.30 - 9,853,255,644.48
Others 4,532,508.37 111,779,259.15 - (5,938,298.55) 110,373,468.97
By contract duration
Incl:
At a point in time
- 22,697,974,393.78 10,811,580,025.83 (499,204,175.96) 33,010,350,243.65
Over time 4,532,508.37 111,779,259.15 - (5,938,298.55) 110,373,468.97
4,532,508.37 22,809,753,652.93 10,811,580,025.83 (505,142,474.51) 33,120,723,712.62
101
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
44. Operating revenue and cost (Continued)
Information about the Group’s performance obligations is summarised below:
(1) Revenue is recognised when cont rol of the goods has trans ferred and payment is generally due within 30 to 210 days
from delivery;
(2) Revenue is recognised in the service duration and the payment is generally due wit hin 30 to 210 days since the service is
completed.
Information related to the sales price allocated to the remaining obligations:
The amount of income corresponding to the obligation that has been signed but has not been fulfilled or has not yet fulfilled
is RMB316,827,151.78, which is expected to be recognized within 1 year.
Revenue is as follows:
For the six month ended For the six month ended
30 June 2021 30 June 2020
Revenue from contracts with customers 33,120,723,712.62 27,139,718,273.17
Rent als 42,368,174.77 30,221,915.35
33,163,091,887.39 27,169,940,188.52
45. Tax and surcharges
For the six month ended For the six month ended
30 June 2021 30 June 2020
City maintenance and construction tax 27,877,507.46 28,121,494.67
Educational surcharge 20,257,170.15 20,311,577.25
Property tax 4,224,163.72 2,492,284.79
Land tax 768,836.09 317,162.91
Vehicle and vessel use tax 85,991.96 72,575.73
Stamp duty 21,497,447.37 17,140,178.76
Others 1,278,737.83 1,050,035.21
75,989,854.58 69,505,309.32
102
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
46. Selling expenses
For the six month ended For the six month ended 30
30 June 2021 June 2020
Employees pay roll and welfare benefits 1,197,067,119.97 904,925,594.87
Depreciation expenses of right-of-us e assets 479,540,503.22 387,380,924.52
Rent al expenses 117,046,188.52 60,573,717.68
Technical service fee 84,303,596.21 45,620,729.98
Amortization of long-term deferred expenses 69,802,526.37 52,138,560.36
Depreciation expenses 56,762,708.30 43,808,801.59
Transportation charges 52,564,735.76 51,095,840.37
Utilities 39,863,463.73 34,081,779.59
Office allowances 35,013,829.00 27,895,774.76
Storage expenses 25,614,256.09 18,300,237.30
Promotion and marketing expenses 18,804,920.99 15,399,693.56
Property management fee 16,975,156.97 15,659,321.63
Entertainment expenses 14,061,877.53 9,358,003.62
Market development fee 8,168,582.42 4,517,975.19
Repairing fees 7,118,061.32 7,147,598.96
Travel allowances 2,939,453.78 1,845,288.42
Conference expenses 525,946.12 292,483.51
Others 81,312,603.47 48,696,492.69
2,307,485,529.77 1,728,738,818.60
47. Administrative expenses
For the six month ended For the six month ended
30 June 2021 30 June 2020
Employees pay roll and welfare benefits 360,049,901.79 325,153,640.16
Depreciation expenses 17,675, 510. 90 16,351,496.61
Rent al expenses 16,196, 265. 77 5,390,672.79
Office allowances 14,281, 405. 19 12,677,148.40
Depreciation expenses of right-of-us e assets 12,957, 819. 94 10,925,364.40
Amortization of intangible assets 11,402, 009. 79 8,991,474.97
Amortization of long-term deferred expenses 8,283,676.96 6,808,445.06
Entertainment expenses 7,342,000.00 4,596,522.19
Technical service fee 6,691,393.49 11,527,561.19
Property management fee 4,749,071.86 3,089,556.70
Vehicle management expenses 3,659,483.25 3,169,051.19
Travel allowances 3,444,399.91 1,822,634.84
Utilities 3,107,684.09 1,919,161.42
Repairing fees 2,852,529.46 2,898,331.91
Agency service fee 2,841,366.73 3,411,279.41
Promotion and marketing expenses 304,402.82 2,180,552.03
Others 16,698, 014. 76 22,374,251.65
492,536,936.71 443,287,144.92
103
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
48. Finance costs
For the six month ended For the six month ended
30 June 2021 30 June 2020
Interest expens es 147,057,897.99 133,350,510.68
Less: Interest income 38,758,729.78 65,512,550.22
Cash discount 18,968,417.81 20,153,456.44
Exchanges gain/(loss) (415,927.10) 47,935.97
Others 18,328,179.85 17,581,389.63
107,243,003.15 65,313,829.62
A breakdown for interest income is as follows:
For the six month ended For the six month ended
30 June 2021 30 June 2020
Cash 38,758,729.78 65,512,550.22
49. Other incomes
For the six month ended For the six month ended
30 June 2021 30 June 2020
Government grants related to daily operating activities 33,966, 095. 01 25,786,877.95
VAT reduction for small-scale taxpayers 11,566, 085. 35 8,383,678.31
VAT additional deduction 929,058.98 864,634.59
Taxation service charge refund 788,376.92 820,107.47
47,249,616.26 35,855,298.32
50. Investment income
For the six month ended For the six month ended
30 June 2021 30 June 2020
Long-term equity investment income under the
equity method 157,696,397.81 133,604,904.16
Dividend income from other equity investments that are still
held 2,330,159.50 -
Investment income from financial assets at fair value through
profit or loss 3,599,555.61 4,109,881.90
Investment income from the derecognition of financial assets
measured at amortised cost (7,039, 046. 60) (33,507,102.64)
Others 998,665.84
156,587,066.32 105,206,349.26
104
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
51. Credit impairment losses
For the six month ended For the six month ended
30 June 2021 30 June 2020
Impairment loss of other receivables (1,464,818.01) (1,401,731.20)
Impairment loss of accounts receivable (28,023,731.77) (20,178,500.32)
Impairment loss of not es receivables 893,564.34 -
Impairment loss of other non-current financial assets (70,000.00) -
(28,664,985.44) (21,580,231.52)
52. Impairment losses
For the six month ended For the six month ended
30 June 2021 30 June 2020
Loss from write-down of inventories (318,356.71) (1,743,888.30)
Loss from impairment of contract assets ( 60,342.41) -
Loss from impairment of other non-current assets ( 38,216.14) -
( 416,915.26) (1,743,888.30)
53. Gain on disposal of assets
For the six month ended For the six month ended
30 June 2021 30 June 2020
Gain on disposal of right-of-use assets (505,084.56) 3,971,813.20
Gain on disposal of fixed assets (83,714.99) 333,511.60
(588,799.55) 4,305,324.80
54. Non-operating income
For the six month For the six month Amount classified as
ended ended non-recurring profit or
30 June 2021 30 June 2020 loss
Government grants 1,349,204.28 1,349,204.28 1,349,204.28
Gain on disposal of non-c urrent assets 60,184. 80 2,171.01 60,184.80
Gain from writing off the unnecessary payment 7,298,605.35 199,266.47 7,298,605.35
Others 3,785,326.01 3,669,338.46 3,789,726.01
12,493, 320. 44 5,219,980.22 12,493, 320. 44
105
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
54. Non-operating income(Continued)
Government grants included in current period profit or loss:
Project Name Government Reasons for Type Affects the Special For the six For the six Related to
Department Government profit or subsidy months months asset/income
grants loss of this ended ended
year 30 June 30 June 2020
2021
Resettlement Nanning Subsidy Subsidies from Yes No 1,349,204.28 1,349,204.28 Asset related
Compensation Economic & local government
of No. 7 Technological for support policies
Zhongyao Development such as attracting
Road Area investment
Management
Committee
55. Non-operating expenses
For the six month For the six month Amount classified
ended ended as non-recurring
30 June 2021 30 June 2020 profit or loss
Donation ex penses 158,990.50 527,677.41 158,990.50
Losses arising from damage and obsolescenc e
of non-current assets 273,414.36 373,790.44 273,414.36
Penalty expens es 1,220,928.37 467,582.50 1,220,928.37
Others 1,584,618.12 1,639,842.17 1,584,618.12
3,237,951.35 3,008,892.52 3,237,951.35
56. Income tax expenses
For the six month ended For the six month ended
30 June 2021 30 June 2020
Current income tax 248,326,505.55 213,477,221.94
Deferred income tax (9,900,246.51) (3,370,457.59)
238,426,259.04 210,106,764.35
The rec onciliation 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 20 21
Profit before income tax 1,146,420,713.53
Tax at the applicable tax rate 286,605,178.38
Effect of different tax rates for some subsidiaries (27,341,828.05)
Adjustments in respect of current tax of previous periods 9,250,796.99
Income not subject to tax (39,424,099.45)
Expenses not deductible for tax 5,188,447.29
Unrecognised deductible temporary differences and tax losses 4,147,763.88
Income tax 238,426,259.04
106
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
57. Notes to items in the cashflow statement
(1) Other cash receipts relating to operating activities
For the six months For the six months
ended ended
30 June 2021 30 June 2020
Received the special emergency reserve fund - 330,000,000.00
Rent income 42,368,174.77 30,221,915.35
Interest income 38,758,729.78 65,499,031.75
Received other government grants except tax refund 35,612,619.03 28,018,379.40
Others 251,851,351.88 253,462,783.50
368,590,875.46 707,202,110.00
(2) Other cash payments relating to operating activities
For the six months For the six months
ended ended
30 June 2021 30 June 2020
Rent al expenses 133,233,956.70 65,964,390.47
Transportation charges 52,564, 735. 76 51,095,840.37
Office expenses 49,295, 234. 19 40,572,923.16
Utilities 42,971, 147. 82 36,000,941.01
Storage expenses 25,614, 256. 09 18,300,237.30
Entertainment expenses 21,403,877.53 13,954,525.81
Advertising expenses 19,109,323.81 17,580,245.59
Travel expenses 6,383,853.69 3,667,923.26
Others 582,203,811.77 456,537,231.52
932,780,197.36 703,674,258.49
(3) Other cash receipts relating to investing activities
For the six months ended For the six months ended
30 June 2021 30 June 2020
Received from capital pool(1) - 22,000,000.00
Others 54,984.60 40,000.00
54,984.60 22,040,000.00
(1) Pudong Pharmaceuticals, a subsidiary of the merger of enterprises under the common control of Guoda Pharmacy in
2020, and recovered the funds originally collected to the cash pool in the same period in 2020.
107
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
57. Notes to items in cash flow statement (Continued)
(4) Other cash receipts relating to financing activities
For the six months ended For the six months ended
30 June 2021 30 June 2020
Received loan provided by minority shareholders 69,150, 000. 00 149,900,000.00
Financing restricted monetary funds rec eived 34,940, 555. 62 128,449,840.06
Received loan provided by Sinmpharm - 56,000,000.00
104,090,555.62 334,349,840.06
(5) Other cash payments relating to financing activities
For the six months ended For the six months ended
30 June 2021 30 June 2020
Lease payment 536,275,009.28 466,492,796.45
Bank factoring payable 251,370,239.59 281,994,828.44
Repayment of the loan provided by minority
shareholders 50,400, 000. 00 304,000,000.00
Investment fund of Shanghai Pudong
Pharmaceuticals - 163,115,049.98
Repayment of the loan provided by Sinmpharm - 114,000,000.00
Purchase of equity of minority shareholders - 52,309,117.11
Others - 23,199,872.28
838,045,248.87 1,405,111,664.26
108
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
58. Supplementary information of cashflow statement
(1) Reconciliation of net profit to cash flows from operating activities
For the six month For the six month
ended ended
30 June 2021 30 June 2020
Net profit 907,994,454.49 806,212,542.53
Add: Provisions for asset impairment 29,081,900.70 23,324,119.82
Depreciation of fixed assets 78,401,603.02 61,147,847.16
Depreciation of right-of-use assets 493,632,821.29 388,208,804.99
Amortization of intangible assets 30,503,457.69 22,955,311.98
Amortization of long-term prepaid expenses 79,098,080.34 51,031,038.60
Gains/(losses) on disposal of fixed assets, intangible assets and other
long-term assets 588,799.55 (4,658,628.06)
Losse from obs olescence of non-current assets 213,229.56 371,619.43
Finance expens es 126,395,365.24 124,862,298.31
Investment losses (156,587,066.32) (105,206,349.26)
(Increas e)/decreas e in deferred tax assets (10,036,816.58) (1,027,041.92)
(Dec rease)/increase in deferred tax liabilities 417,984.79 (2,343,415.67)
Decrease in inventories (868,988,935.78) (85,043,215.49)
Increase in operating receivables items (3,060,847,945.57) (2,023,296,252.84)
(Dec rease)/increase in operating payable items 3,561,205,596.30 (133,395,115.40)
Others 18,300,754.85 2,315,060,479.17
Net cash generated from operating activities 1,229,373,283.57 1,438,204,043.35
109
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
58. Supplementary information of cashflow statement (Continued)
(2) Movement of cash
For the six months ended For the six months ended
30 June 2021 30 June 2020
Cash at the end of the period 5,537,606,217.43 8,000,562,022.16
Less: Cash at the beginning of the period 5,405,113,257.99 8,426,071,170.16
Net increase in cash 132,492,959.44 (425,509,148.00)
(3)
For the six months ended
30 June 2021
Cash and cash equivalents paid for acquisitions of subsidiaries and ot her
operating units 129,668,139.12
Incl: Yunnan Guoda Disheng Pharmaceutical Co., Ltd.(“Disheng Pharmaceutical) 14,130,000.00
Disheng Chain. 71,400,000.00
32 directly-operat ed stores of Shanxi Huimingkangwei Pharmaceutical Chain Co.,
Ltd. 30,000,000.00
15 directly-operated stores of Sinopharm Holding Nantong Puji Pharmacy Chain
Co., Ltd. 14,138,139.12
Less: Cash and cash equivalents held by subsidiaries and other operating units at the
acquisition date 28,717,501.71
Incl: Disheng Pharmaceutical 7,723,702.95
Disheng Chain Co., Ltd. 20,993,798.76
Net cash out flow/(inflow) on acquisition of the subsidiaries and other operating units 100,950,637.41
(4) Cash and cash equivalent
30 June 2021 31 December 2020
Cash 5,537,606,217.43 5,405,113,257.99
Inclue: Cash on hand 4,898,795.54 6,707,125.90
Bank deposits on demand 5,532,707,421.89 5,398,406,132.09
Ending banlance cash and cash equivalent 5,537,606,217.43 5,405,113,257.99
110
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
59. Assets under restricted ownership or right of use
Book value Reas ons
Cash and cash equivalents 338,186,269.94 Note 1
Endorsed notes receivable and receivable
financing 20,196,089.49 Note 2
358,382,359.43
Note 1: As at 30 June 2021, the the Group’s cash and c ash equivalents with a book value of RMB 338,186,269.94
(Dec ember 31, 2020: RMB 593,091,037.88) are mainly deposits for bank acceptanc e bills, freezing of funds and medic al
reserve funds, etc.
Note 2: As at 30 June 2021, the Group had receivables financing of RMB 20,070,999.69 and notes receivable of
RMB125,089.80, endorsed but not due (31 Dec ember 2020: rec eivables financing of RMB 23,843,867.66 and notes
receivable of RMB 4,095,283.92)
60. Government grants
The amount recorded
Items of financial into profit or loss for
Type Amount statements the current period
Tax return 12,016,071.91 Other income 12,016,071.91
Other income/
Stabilitation allowances 11,572,570.54 Deferred income 11,572,570.54
Construction fund of t he modern supply chain Other income/
system in the central circulation field in 2018 2,143,819.51 Deferred income 2,143,819.51
Subsidies from food and strategic reserves
administration of Guangdong province 1,946,573.87 Other income 1,946,573.87
Medical Reserve Subsidies from Shenzhen
municipal health commission 1,437,149.37 Other income 1,437,149.37
Government support fund 1,361,117.00 Other income 1,361,117.00
Resettlement Compensation of No. 7 Zhongyu Non-operating income
Road 1,349,204.28 /Deferred income 1,349,204.28
Other income
Enterprise Economic Reward 733,317.46 /Deferred income 733,317.46
Government grants for COV ID-19 422,595.35 Other income 422,595.35
VAT reduction or exemption for self-
employment retired soldiers 300,870.00 Other income 300,870.00
Guangzhou logistics standardization pilot Other income
project allowance 273,123.42 /Deferred income 273,123.42
111
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
60 Government grants (Continued)
The amount recorded
Items of financial into profit or loss for
Type Amount statements the current period
Special funds for industrial transformation and Other income
upgrading in dualized integration projects 224,520.24 /Deferred income 224,520.24
Rent subsidy from Guangzhou High-tech
Industrial Development Zone 216,700.85 Other income 216,700.85
Service Industry Enterprise Market
Development Subsidy Project in Nanning 200,000.00 Other income 200,000.00
Subsidy fund for medicine reserve in Foshan 150,000.00 Other income 150,000.00
Comprehensive ex perimental modern service Other income
industry subsidies 150,000.00 /Deferred income 150,000.00
Logistics project construction support fund
from Nanning economic development Other income
committee 93,203. 22 /Deferred income 93,203. 22
Funds for the logistics information platform Other income
project of the pharmaceutical storage cent re 71,428.56 /Deferred income 71,428. 56
Guangzhou special subsidy for commerce and Other income
trade circulation industry 50,000. 04 /Deferred income 50,000. 04
Special Fund for the construction of Enterprise
Research and development Institutions in Other income
Guangzhou 44,705.94 /Deferred income 44,705.94
Hous e purchase subsidy from the government Other income
of Tiexi District, Shenyang 40,561.32 /Deferred income 40,561.32
Subsidy for industrialization application project
of pharmaceutical cold chain patent Other income
incubator from Guangzhou liwan district 12,499.98 /Deferred income 12,499.98
Medical intelligent supply chain e -commerce
service platform technology project subsidy Other income
from Guangzhou liwan district 9,861.24 /Deferred income 9,861.24
Other income/Finance
costs/Administrative
/Selling expenses
Other government grants 543,447.58 /Deferred income 543,447.58
112
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VI. Changes in scope of consolidation
1. Business combination not involving enterprises under common control
1.1 Acquiring Disheng Pharmaceutical. And Disheng chain
Acquiree The dat e of Acquistion cost of Proportion of Methods of Acquisition date The basis for Income earned from the Net profit earned from
acquiring the the right rights owned by acquisition determining the acquisition date to the acquisition date to
right the Group the right date of purchase 30 June 2021 30 June 2021
The purchaser
actually acquires
Disheng control over the
Pharmaceutical acquired
(a) 15 Marc h 2021 14,130,000.00 70.00% Acquisition 15 Marc h 2021 company 88,507,060.89 964,797.79
The purchaser
actually acquires
control over the
Disheng chain acquired
Co., Ltd. (b) 15 Marc h 2021 238,000,000.00 70.00% Acquisition 15 Marc h 2021 company 116,656,427.71 12,161,419.65
Additional clarification：
(a) Guoda Pharmacy, a subsidiary of the Company, acquired 70% shares of Disheng Pharmac eutical from Xishuangbanna Disheng Pharmaceutical Co., Ltd by RMB14,130,000.00. The acquisition was
completed on 15 March 2021.
(b) Guoda Pharmacy, a subsidiary of the Company, acquired 70% shares of Disheng chain from Xishuangbanna Disheng Pharmaceutical Co., Ltd by RMB 238,000,000.00. The acquisition was
completed on 15 March 2021.
113
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VI. Changes in scope of consolidation(Continued)
1. Business combinations not involving enterprises under common control (Continued)
1.2 Acquisition costs and goodwill arising from acquisition
Acquisition costs Disheng Pharmaceutical Disheng chain
Cash 14,130,000.00 238,000,000.00
Acquisition costs 14,130,000.00 238,000,000.00
Less: the fair values of ac quired identifiable net assets 14,708,610.41 85,842,064.48
Goodwill arising from acquisition/Acquisition costs exceeding the fair
values of ac quired identifiable net assets (578,610.41) 152,157,935.52
The fair value of the cost of acquisition is recognized according to the price actually paid.
114
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VI. Changes in scope of consolidation (Continued)
1. Business combinations not involving enterprises under common control (Continued)
1.3 The fair values of acquired identifiable assets and liabilities on the acquisition date
Disheng Pharmaceutical Disheng chain
Fair value Carrying amount Fair value Carrying amount
Cash and bank balances 7,723,702.95 7,723,702.95 20,993,798.76 20,993,798.76
Accounts receivable 30,471,781.24 30,471,781.24 23,414,107.18 23,414,107.18
Inventories 19,829,957.32 19,829,957.32 45,829,051.06 45,829,051.06
Fixed assets 1,335,373.90 1,335,373.90 2,000,261.19 2,000,261.19
Intangible assets - - 40,661,415.51 221,415.51
Advances to suppliers 2,318,717.10 2,318,717.10 91,212.94 91,212.94
Other receivables 2,129,844.69 2,129,844.69 3,414,254.84 3,414,254.84
Other current assets 5,329,820.93 5,329,820.93 4,627,358.05 4,627,358.05
Long-term prepaid expenses 724,925.12 724,925.12 7,783,811.55 7,783,811.55
Right -of-use assets - - 41,047,873.29 41,047,873.29
Deferred tax assets 31,947.59 31,947.59 249,467.13 249,467.13
Accounts payable 47,041,828.70 47,041,828.70 13,321,430.50 13,321,430.50
Deferred tax liabilities - - 6,066,000.00 -
Cont ract liabilities 123,430.92 123,430.92 1,818,156.15 1,818,156.15
Employee benefits payable 490,428.65 490,428.65 5,316,750.15 5,316,750.15
Tax payable 408,921.64 408,921.64 5,707,308.60 5,707,308.60
Other payables 819,160.34 819,160.34 7,477,165.09 7,477,165.09
Non-current liabilities due
within one year - - 15,482,505.32 15,482,505.32
Lease liabilities - - 12,291,775.00 12,291,775.00
Net assets 21,012,300.59 21,012,300.59 122,631,520.69 88,257,520.69
Less: equity of minority
shareholders 6,303,690.18 6,303,690.18 36,789,456.21 26,477,256.21
Net assets acquired 14,708,610.41 14,708,610.41 85,842,064.48 61,780,264.48
Methods for determining the fair value of identifiable assets and liabilities:
It is recognized according to the appraisal.
VI. Changes in scope of consolidation (Continued)
115
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
2. Others
2.1 Acquisition of the management right of 15 directly-managed stores of Sinopharm holding
Nantong Puji pharmacy chain Co., Ltd.( hereafter referd as “Nantong Puji”)
Yangzhou Guoda, a subsidiary of the Company, obtained 15 directly-managed stores of Nantong Puji with cash of RMB
14,138,139.12. The acquisition date is determined as 2 March 2021. A fter the acquisition, goodwill of RMB 11,498,100.00 was
formed.
The fair values and carrying amounts of identifiable assets and liabilities of 15 directly -managed stores of Nantong P uji on the
acquisition date are presented as follows:
Nant ong Puji 2 March 2021 2 March 2021
Fair value Carrying amount
Fixed assets 788,300.00 788,300.00
Inventories 1,751,439.12 1,751,439.12
Long-term prepaid expenses 100,300.00 100,300.00
Total 2,640,039.12 2,640,039.12
Price paid 14,138,139.12 14,138,139.12
Goodwill arising from acquisition 11,498,100.00 11,498,100.00
Operating results and cash flows of 15 directly-managed stores of Nantong Puji for the period from the acquisition date to the end
of the June are presented as follows:
2 March 2021 to 30 June 2021
Operating revenue 7,016,410.53
Net profit 303,795.13
cash flows from operating activities 871,784.36
116
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VI. Changes in scope of consolidation (Continued)
2. Others (Continued)
2.2 Acquisition of the management right of 32 directly-managed stores of Shanxi Huimin Kangwei
pharmacy chain Co., Ltd.( hereafter referd as “Shanxi Huimin Kangwei pharmacy”)
Guoda Wanmin Huimin Kangwei pharmacy Luliang Co., Ltd.(hereafter referd as “Huimin Lvliang”), a subsidiary of the Company,
obtained 32 directly-managed stores of Shanxi Huimin Kangwei pharmacy with cash of RMB 30,000,000.00. The acquisition date
is determined as 8 February 2021. After the acquisition, goodwill of RMB 20,970,000.00 was formed.
The fair values and carrying amounts of identifiable assets and liabilities of 32 directly -managed stores of Shanxi Huimin Kangwei
pharmacy on the acquisition dat e are presented as follows:
Shanxi Huimin Kangwei pharmacy 8 February 2021 8 February 2021
Fair value Carrying amount
Fixed assets
1,740,000.00 1,740,000.00
Inventories
7,290,000.00 7,290,000.00
Total
9,030,000.00 9,030,000.00
Price paid 30,000,000.00 30,000,000.00
Goodwill arising from acquisition
20,970,000.00 20,970,000.00
Operating results and cash flows of 32 directly-managed stores of Shanxi Huimin Kangwei pharmacy for the period from the
acquisition date to the end of the June are presented as follows:
8 February 2021 to 30 June 2021
Operating revenue 15,240,595.69
Net profit 292,600.01
cash flows from operating activities 209,519.17
117
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VII Interests in other entities
1. Interests in in subsidiaries
(1) The composition of the Group:
Principal place of Place of Nature of Shareholding
Subsidiaries Ways of acquis ition
business incorporation business Direct Indirect
Sinopharm Guilin Guilin Guilin Commercial - 100.00% Establishment
Sinopharm Baise Baise Baise Commercial - 100.00% Establishment
Sinopharm Holding
Zhongshan Co., Ltd. Zhongshan Zhongshan Commercial - 100.00% Establishment
Sinopharm Guigang Guigang Guigang Commercial - 100.00% Establishment
Sinopharm Beihai Beihai Beihai Commercial - 100.00% Establishment
Sinopharm Holding
Guangzhou Medical
Treatment Guangzhou Guangzhou Commercial - 51.00% Establishment
Sinopharm Holding
Shenzhen Jianmin Business
Co., Ltd.(hereafter combinations
refered involving entities
as"Sinopharm under common
Shenzhen Jianmin") Shenzhen Shenzhen Commercial 100.00% - control
Sinopharm Holding
Shenzhen
Traditional & Herbal
Medicine Co., Ltd. Business
(hereafter referd as combinations
“Sinopharm involving entities
Traditional & Herbal under common
Medicine") Shenzhen Shenzhen Commercial 100.00% - control
Sinopharm Holding
Shenzhen Logistics
Co., Ltd. (hereafter Business
refered combinations
as“Sinopharm involving entities
Shenzhen under common
Logistics") Shenzhen Shenzhen Services 100.00% - control
Business
combinations
involving entities
under common
Sinopharm Guangzhou Guangzhou Guangzhou Commercial 100.00% - control
Business
combinations
Sinopharm Holding involving entities
Guangdong under common
Hengxing Co., Ltd. Guangzhou Guangzhou Commercial - 100.00% control
Business
combinations
involving entities
under common
Sinopharm Yulin Yulin Yulin Commercial - 100.00% control
118
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 place Place of Nature of Shareholding
Subsidiaries Ways of acquisition
of business incorporation business Direct Indirect
Business combinations
Sinopharm Liuzhou involving entities under
Liuzhou Liuzhou Commercial - 51.00% common control
Business combinations
Guangdong Huixin Investment involving entities under
Co., Ltd. Guangzhou Guangzhou Service 100.00% common control
Business combinations
Sinopharm Holding Foshan Co., involving entities under
Ltd. Foshan Foshan Commercial 100.00% common control
Sinopharm Holding Guangdong
Yuexing Co., Ltd. (hereafter Business combinations
refered as “Sinopharm involving entities under
Guangdong Yuexing”) Guangzhou Guangzhou Commercial 100.00% common control
Business combinations
Sinopharm Holding Guangdong involving entities under
Logistics Co., Ltd. Guangzhou Guangzhou Service 100.00% common control
Business combinations
involving entities under
Sinopharm Guangxi Nanning Nanning Commercial 100.00% common control
Business combinations
involving entities under
Guangxi Logistic Nanning Nanning Service 100.00% common control
Business combinations
involving entities under
Sinopharm Wuzhou Wuzhou Wuzhou Commercial 99.90% common control
Business combinations
involving entities not under
Sinopharm Dongguan Dongguan Dongguan Commercial 100.00% common control
Business combinations
involving entities not under
Sinopharm Zhanjiang Zhanjiang Zhanjiang Commercial 100.00% common control
Business combinations
involving entities not under
Sinopharm Yanfeng Shenzhen Shenzhen Commercial 51.00% common control
Business combinations
involving entities not under
Sinopharm Meizhou Meizhou Meizhou Commercial 100.00% common control
Business combinations
involving entities not under
Sinopharm Huizhou Huizhou Huizhou Commercial 100.00% common control
Business combinations
involving entities not under
Sinopharm Zhaoqing Zhaoqing Zhaoqing Commercial - 100.00% common control
Business combinations
involving entities not under
Sinopharm Jiangmen Jiangmen Jiangmen Commercial - 100.00% common control
Business combinations
involving entities not under
Sinopharm Shaoguan Shaoguan Shaoguan Commercial - 70.00% common control
Business combinations
Sinopharm Holding Shantou Co., involving entities not under
Ltd Shantou Shantou Commercial - 100.00% common control
Business combinations
involving entities under
Foshan Nanhai Foshan Foshan Commercial - 100.00% common control
Business combinations
Foshan Nanhai Uptodate & involving entities under
Special Medicines Co., Ltd. Foshan Foshan Commercial - 100.00% common control
Business combinations
involving entities under
Foshan Nanhai Medicine Co., Ltd. Foshan Foshan Commercial - 100.00% common control
Sinopharm Holding Guangdong Business combinations
Dong Fang Uptodate & Special involving entities under
Medicines Co., Ltd. (a) Guangzhou Guangzhou Commercial - 100.00% common control
Business combinations
involving entities under
South Pharma & Trade Guangzhou Guangzhou Commercial - 100.00% common control
Business combinations
involving entities not under
Sinopharm Zhuhai Zhuhai Zhuhai Commercial - 100.00% common control
Business combinations
involving entities not under
Sinopharm Maoming Maoming Maoming Commercial - 100.00% common control
119
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 place Place of Nature of Shareholding
Subsidiaries Ways of acquisition
of business incorporation business Direct Indirect
Sinopharm Holding GZ Medical
Technology Co., Ltd. Guangzhou Guangzhou Commercial - 51.00% Establishment
Sinopharm Holding GZ Medical
Supply Chain Service Co., Ltd. Guangzhou Guangzhou Commercial - 51.00% Establishment
Business combinations
Sinopharm Holding Heyuan Co., involving entities not under
Ltd. Heyuan Heyuan Commercial - 70.00% common control
Business combinations
involving entities under
Guoda Pharmacy Shanghai Shanghai Commercial 60.00% - common control
Business combinations
involving entities under
Shanghai Guoda. Shanghai Shanghai Commercial - 100.00% common control
Business combinations
Beijing Guoda Pharmacy Chain involving entities under
Store Co., Ltd. Beijing Beijing Commercial - 100.00% common control
Business combinations
Tianjin Guoda Pharmacy Chain involving entities under
Store Co., Ltd. Tianjin Tianjin Commercial - 80.00% common control
Business combinations
involving entities under
Guangxi Consulting Nanning Nanning Commercial - 100.00% common control
Sinopharm Holding Guoda Business combinations
Pharmacy Guangdong Co., involving entities under
Ltd. Shenzhen Shenzhen Commercial - 100.00% common control
Business combinations
involving entities under
Guangxi Guoda Liuzhou Liuzhou Commercial - 100.00% common control
Business combinations
involving entities under
Zhejiang Guoda Hangzhou Hangzhou Commercial - 100.00% common control
Business combinations
involving entities under
Yangzhou Guoda Yangzhou Yangzhou Commercial - 93.68% common control
Business combinations
involving entities under
Ningxia Guoda Yinchuan Yinchuan Commercial - 70.00% common control
Business combinations
involving entities under
Nanjing Guoda Nanjing Nanjing Commercial - 60.00% common control
Business combinations
involving entities under
Shandong Guoda Linyi Linyi Commercial - 55.00% common control
Business combinations
involving entities under
Shenyang Guoda Shenyang Shenyang Commercial - 51.00% common control
Business combinations
involving entities under
Fujian Chain Xiamen Xiamen Commercial - 100.00% common control
Business combinations
Anhui Guoda Pharmacy Chain involving entities under
Store Co., Ltd. Hefei Hefei Commercial - 60.00% common control
Business combinations
involving entities under
Quanzhou Guoda Quanzhou Quanzhou Commercial - 51.00% common control
Business combinations
involving entities under
Shanxi Guoda Wanmin Taiyuan Taiyuan Commercial - 85.00% common control
Business combinations
involving entities under
Hunan Guoda Hengyang Hengyang Commercial - 51.00% common control
Business combinations
involving entities under
Liyang Guoda Liyang Liyang Commercial - 80.00% common control
Business combinations
involving entities under
Henan Guoda Pingdingshan Pingdingshan Commercial - 60.00% common control
Business combinations
involving entities under
Inner Mongolia Guoda Hohhot Hohhot Commercial - 96.70% common control
Business combinations
involving entities under
Hebei Lerentang Shijiazhuang Shijiazhuang Commercial - 60.00% common control
120
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 place Place of Nature of Shareholding
Subsidiaries Ways of acquisition
of business incorporation business Direct Indirect
Business combinations
involving entities under
Jiangmen Guoda Jiangmen Jiangmen Commercial - 65.00% common control
Business combinations
involving entities under
Shanxi Guoda Yiyuan Taiyuan Taiyuan Commercial - 80.00% common control
Business combinations
involving entities under
Xinjiang Guoda Urumqi Urumqi Commercial - 51.00% common control
Business combinations
involving entities under
ForMe Medicines Shanghai Shanghai Commercial - 97.00% common control
Business combinations
Shanghai ForMe YiXing Pharmacy involving entities under
Chain Store Co., Ltd. Shanghai Shanghai Commercial - 99.76% common control
Business combinations
involving entities under
Beijing Golden Elephant Beijing Beijing Commercial - 53.13% common control
Business combinations
Shanxi Tongfeng Pharmacy involving entities under
Logistics Co., Ltd. Taiyuan Taiyuan Commercial - 100.00% common control
Business combinations
involving entities under
Changzhi Wanmin Changzhi Changzhi Commercial - 51.00% common control
Business combinations
Shanxi Guoda Wanmin Clinic involving entities under
Management Chain Co., Ltd. Taiyuan Taiyuan Medical services - 100.00% common control
Business combinations
Shanghai Guoda Shanghong involving entities under
Qibao Pharmacy Co., Ltd. Shanghai Shanghai Commercial - 51.00% common control
Business combinations
Zhejiang Intlmedicine Pharmacy involving entities under
Dongshan Co., Ltd. Hangzhou Hangzhou Commercial - 51.00% common control
Business combinations
involving entities under
Shanghai Dongsheng Guoda Shanghai Shanghai Commercial - 100.00% common control
Business combinations
Sinopharm Guoda Drug Store involving entities under
(Shenzhen) Chain Co., Ltd. Shenzhen Shenzhen Commercial - 100.00% common control
Business combinations
involving entities under
Guoda Guangzhou Chain Guangzhou Guangzhou Commercial - 100.00% common control
Shanghai Guodong Chinese Business combinations
Traditional Medicine Clinic Co., involving entities under
Ltd. Shanghai Shanghai Medical clinic - 100.00% common control
Shanghai Guoda Dongxin Business combinations
Pharmacy Chain Store Co., involving entities under
Ltd. Shanghai Shanghai Commercial - 100.00% common control
Shanghai Yutaitang Chinese Business combinations
Traditional Medicine Clinic Co., involving entities under
Ltd. Shanghai Shanghai Commercial - 100.00% common control
Business combinations
Sanhe Liyang Golden Elephant involving entities under
Pharmacy Co., Ltd. Langfang Langfang Commercial - 100.00% common control
Business combinations
involving entities under
Xiaoyi Wanmin Xiaoyi Xiaoyi Commercial - 70.00% common control
Business combinations
involving entities under
Inner Mongolia Hulun Buir Guoda Hulun Buir Hulun Buir Commercial - 51.00% common control
Business combinations
involving entities under
ForMe Xuhui Shanghai Shanghai Commercial - 100.00% common control
Inner Mongolia Ulanqab Guoda. Ulanqab Ulanqab Commercial - 60.00% Establishment
Business combinations
involving entities under
Taishan Guoda Taishan Taishan Commercial - 70.00% common control
Business combinations
Sinopharm Lerentang involving entities under
Shijiazhuang Pharmaceutical Shijiazhuang Shijiazhuang Commercial - 100.00% common control
Manchuria Guoda Manchuria Manchuria Commercial - 51.00% Establishment
Sinopharm Guoda Drug Store
Anshan Chain Co., Ltd. Anshan Anshan Commercial - 51.00% Establishment
121
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 place Place of Nature of Shareholding
Subsidiaries Ways of acquisition
of business incorporation business Direct Indirect
Sinopharm Holding Guoda
Yongsheng Drug Store
（Shanghai） Co., Ltd. Shanghai Shanghai Commercial - 55.00% Establishment
Sinopharm Holding Foshan
Medical Consumables Supply
Chain Co., Ltd. Foshan Foshan Commercial - 70.00% Establishment
Sinopharm Guangxi Supply Chain Nanning Nanning Commercial - 30.60% Establishment
Shanghai Haohai Guoda Shanghai Shanghai Commercial - 51.00% Establishment
Sinopharm Baiyi Pharmacy Nanning Nanning Commercial - 51.00% Establishment
Sinopharm Hezhou Hezhou Hezhou Commercial - 100.00% Establishment
Sinopharm Holding National
Pharmacy Zhengzhou Chain
Co., Ltd. Zhengzhou Zhengzhou Commercial - 60.00% Establishment
Shanghai Ruijing Guoda Shanghai Shanghai Commercial - 55.00% Establishment
Fujian Guoda Pharmaceutical Co.,
Ltd. Xiamen Xiamen Commercial - 100.00% Establishment
Sinopharm Qinzhou Qinzhou Qinzhou Commercial - 100.00% Establishment
Sinopharm Hechi Hechi Hechi Commercial - 100.00% Establishment
Business combinations
Sinopharm Holding Guangzhou involving entities not under
Huadu Co., Ltd. Guangzhou Guangzhou Commercial - 70.00% common control
Business combinations
Sinopharm Holding Guoda Shanxi involving entities not under
Pharmaceutical Co., Ltd. Taiyuan Taiyuan Commercial - 100.00% common control
Business combinations
Taiyuan Tongxinli Guoda involving entities not under
Pharmacy Co., Ltd. Taiyuan Taiyuan Commercial - 100.00% common control
Bayannaoer Bayannaoer Bayannaoer Commercial - 80.00% Establishment
Guoda Inner Mongolia
Pharmaceutical Hohhot Hohhot Commercial - 100.00% Establishment
Sinopharm Holding Guoda
Yongxingtang Chain
(Chaoyang) Co., Ltd. Chaoyang Chaoyang Commercial - 51.00% Establishment
Sinopharm Accord Medical
Devices (Shenzhen) Co.,
Ltd(b)(“Accord Devices”) Shenzhen Shenzhen Commercial 60.00% Establishment
Sinopharm Holding Guozhi
Pharmacy (Heyuan) Co., Ltd. Heyuan Heyuan Commercial 70.00% Establishment
Liaoning Guoda Pharmaceutical
Co., Ltd. Shenyang Shenyang Commercial 100.00% Establishment
Sinopharm Holding Guangyi
Health Management
(Zhanjiang) Co., Ltd. Zhanjiang Zhanjiang Commercial 60.00% Establishment
Business combinations
Guangzhou Medicine involving entities not under
Guangzhou Guangzhou Commercial 70.00% common control
Business combinations
Guoda pharmacy(Chaoyang)
involving entities not under
Renai Co., Ltd.
Chaoyang Chaoyang Commercial 51.00% common control
Business combinations
Guoda Pu’er Songmao involving entities not under
Puer Puer Commercial 60.00% common control
Business combinations
Shanghai Dingqun involving entities not under
Shanghai Shanghai Medical services 100.00% common control
Business combinations
Sinopharm Holding Tianhe Jilin
involving entities not under
Pharmaceutical Co., Ltd.
Changchun Changchun Commercial 85.00% common control
Business combinations
Jilin Yihe involving entities not under
Changchun Changchun Commercial 100.00% common control
Business combinations
Jilin Donglong Medical Logistis
involving entities not under
distribution Co., Ltd.
Changchun Changchun Commercial 100.00% common control
Business combinations
Yushu Dinghe Medical Technology involving entities not under
Co., Ltd. Changchun Changchun Commercial 51.00% common control
122
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 place Place of Nature of Shareholding
Subsidiaries Ways of acquisition
of business incorporation business Direct Indirect
Business combinations
Guoda pharmacy Jilin Co., Ltd. (c) involving entities not under
Changchun Changchun Commercial 100.00% common control
Business combinations
Yanji Xianghe Medical Co., Ltd. involving entities not under
Yanji Yanji Commercial 51.00% common control
Business combinations
Pudong Pharmaceuticals involving entities under
Shanghai Shanghai Commercial 75.00% common control
Shanghai Yanghetang Business combinations
Pharmaceutical Chain involving entities under
Management Co., Ltd. Shanghai Shanghai Commercial 100.00% common control
Business combinations
Shanghai Pudong Yanghetang
involving entities under
TCM Clinic Co., Ltd. Shanghai Shanghai Commercial 100.00% common control
Guoda Pharmacy (Rizhao) Co.,
Ltd. Rizhao Rizhao Commercial 100.00% Establishment
Liaoning Health Pharmacy Shenyang Shenyang Commercial 100.00% Establishment
Business combinations
Beijing Jinxiang Guoxing
involving entities not under
pharmaceutical chain Co., Ltd.
Beijing Beijing Commercial 100.00% common control
Business combinations
Sinopharm Accord (Yangjiang) involving entities not under
Medicine Co., Ltd.
Yangjiang Yangjiang Commercial 70.00% common control
Liaoning Guoda pharmacy Dalian Dalian Commercial 100.00% Establishment
Liaoning Huludao Guoda
pharmacy Co., Ltd(d) Huludao Huludao Commercial 100.00% Establishment
Jinzhong Yuci Guoda Wanmin
clinic Co., Ltd Jinzhong Jinzhong Commercial 100.00% Establishment
Guoda Jianfeng (Jiangmen)
pharmaceutical chain Co., Ltd Jiangmen Jiangmen Commercial 51.00% Establishment
Business combinations
Chengda Fangyuan
involving entities not under
Pharmaceutical Group Co., Ltd
Shenyang Shenyang Commercial 100.00% common control
Business combinations
Shandong Chengda Fangyuan
involving entities not under
pharmaceutical chain Co., Ltd
Qingdao Qingdao Commercial 100.00% common control
Business combinations
Liaoning Chengda Fangyuan
involving entities not under
pharmaceutical chain Co., Ltd
Shenyang Shenyang Commercial 100.00% common control
Business combinations
Liaoning Zhicheng Xingda
involving entities not under
advertising media Co., Ltd
Benxi Benxi Medical services 100.00% common control
Chengda Fangyuan (Liaoning) Business combinations
new drug special drug chain involving entities not under
Co., Ltd Shenyang Shenyang Commercial 80.00% common control
Liaoning Chengda Fangyuan Business combinations
vocational and technical involving entities not under
training school Shenyang Shenyang Medical services 100.00% common control
123
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 place of Place of Nature of Shareholding
Subsidiaries Ways of acquisition
business incorporation business Direct Indirect
Business combinations
Liaoning Chengda Fangyuan involving entities not under
Pharmaceutical Co., Ltd
Shenyang Shenyang Commercial 100.00% common control
Business combinations
Dalian Zhengda Pharmaceutical involving entities not under
Co., Ltd Dalian Dalian Commercial 100.00% common control
Business combinations
Hebei Chengda Fangyuan involving entities not under
pharmaceutical chain Co., Ltd Qnghuangdao Qnghuangdao Commercial 100.00% common control
Liaoning Chengda Fangyuan Business combinations
Pharmaceutical Logistics Co., Medical involving entities not under
Ltd Shenyang Shenyang services 100.00% common control
Business combinations
Liaoning Chengda Fangyuan Medical involving entities not under
Logistics Co., Ltd Shenyang Shenyang services 100.00% common control
Business combinations
Jilin Chengda Fangyuan involving entities not under
Pharmaceutical Co., Ltd Changchun Changchun Commercial 80.00% common contro
Business combinations
Jilin Chengda Fangyuan involving entities not under
pharmaceutical chain Co., Ltd Changchun Changchun Commercial 99.00% common contro
Business combinations
Inner Mongolia Chengda involving entities not under
Fangyuan Medicine Chifeng Chifeng Commercial 70.00% common contro
Inner Mongolia Chengda Business combinations
Fangyuan pharmaceutical involving entities not under
chain Co., Ltd Chifeng Chifeng Commercial 99.00% common contro
Huimin Luliang (e) Lvliang Lvliang Commercial 51.00% Establishment
Business combinations
involving entities not under
Disheng Pharmaceutical (f) Xishuangbanna Xishuangbanna Commercial 70.00% common contro
Business combinations
involving entities not under
Disheng chain (g) Xishuangbanna Xishuangbanna Commercial 70.00% common contro
124
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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):
Description of shareholding ratio in subsidiaries different from voting ratio:
On January 4, 2018, the group, Guorun medical supply chain service (Shanghai) Co., Ltd. (hereafter referred to as "Guorun
medical") and Guangxi deyiyuan Medical Investment Center (limited partnership) jointly funded the establishment of Sinopharm
holding medical supply chain service (Guangxi) Co., Ltd., with contributions of RMB 6.12 million, RMB 5. 88 million and RMB 8
million respectively. Guorun medical entrusts its voting right to the company, and the company holds 60% of the voting right of
Sinopharm holding medical supply chain services (Guangxi) Co., Ltd.
a. On 20 April 2021, Guangdong Dong Fang Uptodate & Special Medicines Co., Ltd. was renamed as Sinopharm Holding
Guangdong Dong Fang Uptodate & Special Medicines Co., Ltd.
b. On 12 July 2021, Sinopharm Accord Medical Supply Chain (S henzhen) Co., Ltd. was renamed as Sinopharm Accord
Medical Devices (Shenzhen) Co., Ltd.
c. On 5 July 2021, Guoda pharmacy Jilin Co., Ltd. has completed the industrial and commercial cancellation, and the
cancellation announcement period is from June 10, 2021 to June 30, 2021.
d. On 14 December 2020, the Group invested RMB1, 000. 00 thousand to set up Liaoning Huludao Guoda pharmacy Co., Ltd.
As at 30 June 2021, RMB500.00 thousand was paid.
e. On 28 Dec ember 2020, the Group and Wenshui Weikang Trading Co., Ltd. invested RMB16,320.00 thousand and
RMB15, 680.00 thous and to set up Guoda Wanmin Huimin Kangwei pharmacy Luliang Co., Ltd, the group holds 51% of its
equity. As at 30 June 2021, payment has been completed.
f. On 15 March 2021, the Group acquired 70% equity in Disheng Pharmaceutica from Xishuangbanna Disheng Pharmaceutical
Co., Ltd. for RMB14, 130.00 thousand, which formed a business combination not involving enterprises under common control.
The acquisition was completed on 15 March 2021 and was included in the scope of consolidation.
g. On 15 March 2021, the Group acquired 70% equity in Disheng chain from Xishuangbanna Disheng Pharmaceutical Co.,Ltd.
for RMB 238, 000. 00 thousand, which formed a business combination not involving enterprises under common control. The
acquisition was completed on 15 March 2021 and was included in the scope of consolidation.
125
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VII Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(2) Important non-wholly owned subsidiary
Subsidiaries Minority Profit or loss Dispatch of dividends Minority shareholders'
shareholding ratio attributable to minority to minority equity
shareholders in the shareholders in the
current period current period
Guoda Pharmacy 40.00% 79,549,416.99 - 2,028,470,458.01
(3) Key financial information of important non -wholly owned subsidiaries
30 June 2021 31 December 2020
Subsidiaries
Non-current Non-current
Current assets Non-current assets Total assets Current liabilities Total liabilities Current assets Non-current assets Total assets Current liabilities Total liabilities
liabilities liabilities
Guoda Pharmacy 9,335,400,322.92 7,008,855,001.21 16,344,255,324.13 9,037,608,731.16 1,459,822,617.08 10,497,431,348.24 8,886,545,970.79 6,570,327,751.04 15,456,873,721.83 8,541,421,518.15 1,375,989,559.14 9,917,411,077.29
For the six months ended 30 June 2021 For the six months ended 30 June 2020
Subsidiaries
Cash flow from operating Cash flow from operating
Operating revenue Net profit Total comprehensive income Operating revenue Net profit Total comprehensive income
activities activities
Guoda Pharmacy
10,841,326,194.08 263,262,365.37 263,262,365.37 786,526,215.87 8,613,020,309.15 248,037,573.90 248,037,573.90 470,794,143.55
126
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VII. Interests in other entities (Continued)
2. Interests in associates
Principal
Nature of
place of Place of Shareholding(%)
business
business incorporation Accounting
Direct Indirect
Associates
Main Luck Pharmaceutical Shenzhen Shenzhen Manufacturing 35.19% - Equity
Zhijun Suzhou Suzhou Suzhou Manufacturing 33.00% - Equity
Sinopharm Zhijun Shenzhen Shenzhen Manufacturing 49.00% - Equity
Zhijun Trade Shenzhen Shenzhen Commercial 49.00% - Equity
Zhijun Pingshan Shenzhen Shenzhen Manufacturing 49.00% - Equity
Business service
Sinopharm Shyndec Shanghai Shanghai industry 16.28% - Equity
Shanghai Beiyi Shanghai Shanghai Commercial - 26.00% Equity
Shanghai Liyi Shanghai Shanghai Commercial - 35.00% Equity
Guangdong Jienuo Guangzhou Guangzhou Commercial - 29.00% Equity
Dongyuan accord Heyuan Heyuan Commercial - 45.00% Equity
Shanghai Renbei Shanghai Shanghai Commercial - 30.00% Equity
Guangdong Jianhui Public-Private-
Zhanjiang Zhanjiang Partnership - 10.00% Equity
Explication of the shareholding ratio of a joint vent ure differs from the proportion of voting rights:
According to the articles of association of Guangdong Jianhui company, the board of directors is composed of five directors,
one of whom is appointed by the company, accounting for 20% of the voting rights. Therefore, the group has a significant
impact on Guangdong Jianhui, which is an associate of the group.
Basis for holding less than 20% of the voting rights but having significant influence, or holding 20% or more of the voting
rights but not having significant influence:
Sinopharm Shyndec has established a board of directors, which is responsible to the shareholders' meeting. It has nine
members, of which the group appoints one director. The resolution of the board of directors is one person, one vote,
accounting for 11.11% of its voting rights. The Group has a significant influence on Sino pharm Shyndec.
127
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VII. Interests in other entities (Continued)
2. Interests in associates (Continued)
Main financial information of important associates：
30 June 2021/ For the six months ended 1 January 2020/ For the six months ended
30 June 2021 30 June 2020
Main Luck Main Luck
Sinopharm Sh Sinopharm S Zhijun
Zhijun Medicine Pharmaceutica Pharmaceutica
yndec hyndec Medicine
l l
Current assets 11,543,472,621.58 1,310,424,165.50 1,150,192,274.24 10,162,475,190.65 1,176,812,039.37 1,076,146,345.00
Non-current
assets 8,262,496,257.36 241,317,313.08 120,177,914.28 8,087,979,595.07 238,613,242.87 124,495,504.04
Total assets 19,805,968,878.94 1,551,741,478.58 1,270,370,188.52 18,250,454,785.72 1,415,425,282.24 1,200,641,849.04
Current
liabilities 7,742,313,859.56 621,599,563.08 246,923,526.16 6,194,362,158.11 541,117,019.88 275,509,215.17
Non-current
liabilities 1,879,414,378.30 4,398,795.45 8,120,000.00 2,236,726,740.99 5,822,904.95 8,120,000.00
Total liabilities 9,621,728,237.86 625,998,358.53 255,043,526.16 8,431,088,899.10 546,939,924.83 283,629,215.17
Non-cont rolling
interests 1,731,996,575.52 - - 1,688,157,191.81 - -
Shareholders’
equity
attributable
to
shareholder
s of the
parent 8,452,244,065.56 925,743,120.05 1,015,326,662.36 8,131,208,694.81 868,485,357.41 917,012,633.87
Portion of net
assets
calculated
by
shareholding
ratio 1,376,025,333.87 453,614,128.80 357,293,452.48 1,323,760,775.52 425,557,825.11 322,696,745.87
Carrying value
of equity
investment
in joint
vent ures 1,376,025,333.87 453,614,128.80 357,293,452.48 1,323,760,775.52 425,557,825.11 322,696,745.87
Operating
revenue 7,632,136,688.61 746,410,222.02 476,292,028.69 6,211,855,587.54 659,730,341.51 475,122,136.41
Net profit 541,049,057.92 57,257,762.64 98,308,111.37 427,914,866.04 35,512,234.88 98,199,603.82
Total
comprehensi
ve income 541,447,429.53 57,257,762.64 98,308,111.37 428,665,399.75 35,512,234.88 98,199,603.82
Dividends
received
from joint
vent ures this
period 16,714,220.20 - - 16,714,220.20 - 63,342,000.00
128
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VII. Interests in other entities (Continued)
2. Interests in associates (Continued)
Summary financial information of unimportant joint ventures and associated enterprises ：
30 June 2021/ For the six months 1 January 2020/ For the six months ended
ended 30 June 2021 30 June 2020
associated
enterprises：
Carrying value of
equity investment 240,672,877.06 215,004,281.49
Net profit 25,668,595.57 28,478,625.69
Total comprehensive
income 25,668,595.57 28,478,625.69
Excess losses incurred by joint vent ures or associates:
Accumulated unrec ognized Unrecognized loss in the current Accumulated
losses in the previous period period (or net profit shared in unrecognized losses at
the current period) the end of the period
Sinopharm Group
Zhijun(Suzhou)
Pharmaceutical Co.,
Ltd (11,193,619.06) - (11,193,619.06)
On 11 May 2021, the court ruled that Sinopharm Group Zhijun(Suzhou) Pharmaceutical Co., Ltd. was bankrupt and
designated the local government as the bankruptcy administrator. At present, it is in the stage of creditor's right
declaration.
129
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VIII Risks related to financial instruments
1. Classification of financial instruments
30 June 2021:
Financial assets at fair
Financial
value through profit Financial assets at Financial assets at fair value through
assets or loss other comprehensive income
amortised cost Total
Mandatorily required Mandatorily
Designated
required
Cash and bank
balances - 5,876,638,427.56 - - 5,876,638,427.56
Notes
receivable - 606,070,192.39 - - 606,070,192.39
Accounts
receivable - 17,761,176,449.25 - - 17,761,176,449.25
Receivable
financing - - 345,906,887.55 - 345,906,887.55
Other
receivables - 661,339,404.62 - - 661,339,404.62
Other non-
current
financial
assets 117,974,908.51 - - - 117,974,908.51
Other equity
instrument
investment - - - 99,488,340.28 99,488,340.28
117,974,908.51 24,905,224,473.82 345,906,887.55 99,488,340.28 25,468,594,610.16
Financial liabilities Financial liabilities at amortised cost
Short-term borrowings 4,632,933,904.39
Notes payable 6,780,425,089.17
Accounts payable 9,642,504,836.50
Other payables 1,530,963,581.23
Non-current liabilities due within 1 year 798,170,618.10
Lease liabilities 1,361,131,352.80
Long-term borrowings 61,633,794.44
24,807,763,176.63
130
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VIII Risks related to financial instruments (Continued)
1. Classification of financial instruments (Continued)
31 December 2021:
Financial assets at
Financial fair value
assets through profit or Financial assets at Financial assets at fair value through
loss amortised cost other comprehensive income Total
Mandatorily Mandatorily
Designated
required required
Cash and bank
balances - 5,998,204,295.87 - - 5,998,204,295.87
Notes
receivable - 622,115,477.04 - - 622,115,477.04
Accounts
receivable - 13,799, 971, 014.22 - - 13,799, 971, 014.22
Receivable
-
financing - - 1,404,987,700.38 1,404,987,700.38
Other
receivables - 535,228,747.69 - - 535,228,747.69
Other non-
current
financial
assets 120,972,350.24 - - - 120,972,350.24
Other equity
instrument
investment - - - 99,488, 340. 28 99,488, 340. 28
120,972,350.24 20,955, 519, 534.82 1,404,987,700.38 99,488, 340. 28 22,580, 967, 925.72
Financial liabilities Financial liabilities at amortised cost
Short-term borrowings 1,612,187,020.12
Notes payable 7,520,165,274.69
Accounts payable 7,697,451,142.50
Other payables 1,599,166,881.14
Non-current liabilities due within 1 year 748,732,059.89
Lease liabilities 1,303,054,163.90
Long-term borrowings 31,637, 173. 89
20,512, 393, 716.13
131
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VIII Risks related to financial instruments (Continued)
2. Transfer of financial assets
Transferred financial assets that are not derecognised in their entirety
As at 30 June 2021, the Group had endorsed commercial acceptance bills (the "Endorsed Bills")
with a carrying amount of RMB125,089.80 (30 June 2020: 4,095,283.92) to certain of its
suppliers to settle accounts payable due to such suppliers and the Group had endorsed bank
acceptance bills with a carrying amount of RMB20,070,999.69 (30 June 2020: 23,843,867.66)
to certain of its suppliers to settle accounts payable due to such suppliers. In the opinion of the
Group, the Group has retained substantially all the risks and rewards, which include default
risks relating to such Endorsed Bills and Discounted Bills. Accordingly, it continued to recognise
the full carrying amounts of those Bills and the associated accounts payable settled.
Subsequent to the Endorsement and Discount, the Group did not retain any rights on the use of
those Bills, including the sale, transfer or pledge of those Bills to any other third parties.
As at 30 June 2021, the total carrying value of accounts payable settled by the Group was
RMB20,196,089.49 (31 December 2020: RMB27,939,151.58).
132
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VIII Risks related to financial instruments (Continued)
2. Transfer of financial assets (Continued)
Transferred financial assets that are derecognised in their entirety in which continuing
involvement exists
As at 30 June 2021, the Group had endorsed bank acceptance bills (the "Endorsed Bills") with
a carrying amount of RMB754,753,155.51 (31 December 2020: RMB1,283,369,787.75) to
certain of its suppliers to settle accounts payable due to such suppliers. As at 30 June 2021,
the Group had discounted bank acceptance bills (the "Discounted Bills") with a carrying amount
of RMB1,067,286,554.94 (31 December 2020: RMB330,472,883.05) to banks. As at 30 June
2021, those Bills had a maturity of 1 to 12 months at the end of the reporting period. In
accordance with the Law of Negotiable Instruments, the holders of the derecognised bills have
a right of recourse against the Group if the accepting banks default (the "Continuing
Involvement"). In the opinion of the Group, the Group has transferred substantially all risks and
rewards relating to those Bills. Accordingly, it has derecognised the full carrying amounts of
those Bills and the associated accounts payable. The maximum exposure to loss from the
Group's Continuing Involvement in the derecognised bills and the undiscounted cash flows to
repurchase these derecognised bills is equal to their carrying amounts. In the opinion of the
Group, the fair values of the Group’s Continuing Involvement in the derecognised bills are not
significant.
During 2021, the Group has not recognised any gain or loss on the date of transfer. No gain or
loss was recognised from derecognised financial assets in which the Continuing Involvement
exists, both during the year or cumulatively.
During 2021, the Group has not recognised any gain or loss on the date of transfer of the
derecognised bills. No gains or losses were recognised from the Continuing Involvement, both
during the year or cumulatively.
As part of its normal business, the Group entered into an accounts receivable factoring without
recourse with banks and transferred certain accounts receivable to banks. In the opinion of the
directors, the Group has transferred substantially all risks and rewards under the arrangement.
Accordingly, it has derecognised the full carrying amounts of the associated accounts
receivable. The original carrying value of the derecognised accounts receivable transferred
under the Arrangement that have not been settled as at 30 June 2021 amounted to
RMB695,181,891.24 (31 December 2020: RMB1,409,768,709.18).
133
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VIII Risks related to financial instruments (Continued)
3. Risks of financial instruments
The main risks arising from the Group's financial instruments are credit risk, liquidity risk and
market risk (including currency risk and interest rate risk). The Group's principal financial
instruments comprise cash and bank balances, equity investments, debt investments,
borrowings, notes receivable, accounts receivable, notes payable and accounts payable. Risks
that related to these financial instruments and the Group's risk management strategies for
reducing these risks are as follows.
The Company’s board of directors is responsible for planning and establishing the risk
management framework of the Group, formulating risk management policies and related
guidelines of the Group and supervising the implementation of risk management measures. The
Group has already developed risk management policies to identify and analyse the risks faced
by the Group, which have clearly identified specific risks, covering a lot of aspects such as
market risk, credit risk and liquidity risk management. The Group regularly assesses the market
environment and changes in the Group’s business activities to determine whether or not to
update the risk management policies and systems. The risk management of the Group shall be
conducted by the operation and management department according to the policy approved by
the Company’s management. The operation and management department identifies, evaluates
and avoids related risks by means of close cooperation with other business units of the Group.
To avoid the risk concentrating on a single industry, a specific area or a specific counterparty, the
Group spreads financial instruments risk with diversified investments and business portfolio.
Credit risk
The Group only trades with recognised and creditworthy third parties. It is the Group’s policy that
all customers who wish to trade on credit terms are subject to credit verification pr ocedures. In
addition, receivable balances are monitored on an ongoing basis and the Group’s exposure to
bad debts is not significant. For transactions that are not denominated in the functional currency
of the relevant operating unit, the Group does not offer credit terms without the special approval
of the credit control department of the Group.
Since cash and bank balances, bank acceptance bills receivable and derivative financial
instruments are placed in the well-established banks with high credit ratings, the credit risk of
these financial instruments is lower.
The other financial instruments of the Group include cash and bank balances and other
receivables. The credit risk of these financial assets results from default of counterparty. The
maximum credit exposure equals to the book value of these instruments.
The maximum exposure to credit risk of the Group at each balance sheet date is the total
amount charged to the customers less the amount of the impairment provision.
134
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VIII Risks related to financial instruments (Continued)
3. Risks of financial instruments (Continued)
Credit risk (Continued)
Since the Group trades only with recognised and creditworthy third parties, there is no
requirement for collateral. Credit risks are managed by customer/counterparty, by geographical
region and by industry sector. There are no significant concentrations of credit risk within the
Group as the customer bases of the Group’s accounts receivable are widely dispersed in
different sectors and industries. The Group does not hold any collateral or other credit
enhancements over its accounts receivable balances
Determination of significant increase in credit risk
At each reporting date, the Group determines whether the credit risk of a financial asset has
increased significantly since initial recognition. When determining whether the credit risk of a
financial asset has increased significantly since initial recognition, the Group considers
reasonable and supportable information that is relevant and available without undue cost or
effort. This includes both quantitative and qualitative information analysis, based on the Group’s
historical experience and informed credit assessment and including forward-looking information.
In order to determine the change of expected default risk during the financial instrument’s entire
lifetime, the Group compares the default risk of financial instrument on the balance sheet date
and on the initial recognition date based on single financial instrument or financial instrument
portfolio with similar default risk.
The Group determines that the credit risk of financial assets has significantly increased when one
or more quantitative or qualitative criteria are met:
(1) Quantitative criteria are mainly probability of default increasing more than a given % since
initial recognition;
(2) Qualitative criteria are mainly significant detrimental changes in the borrower’s operating or
financial conditions and early warning customer lists.
(3) The upper criterion is above 30 days of the borrowers default (including principal and
interests).
Definition of credit-impaired financial assets
In assessing whether a financial asset is credit-impaired, the Group considers both quantitative
and qualitative information in line with internal credit risk management. The Group assesses
whether a financial asset is credit-impaired by considering the following factors:
(1) Significant financial difficulty of the borrower or issuer;
(2) A breach of contract such as a default or past due event;
(3) The lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s
financial difficulty, having granted to the borrower concession(s) that the lender(s) would not
otherwise consider;
(4) It is becoming probable that the borrower will enter bankruptcy or other financial
reorganisation;
(5) The disappearance of an active market for security because of financial difficulties; and
(6) Financial assets purchased or sourced at large discounts indicating that credit losses have
occurred.
135
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VIII Risks related to financial instruments (Continued)
3. Risks of financial instruments (Continued)
Credit risk (Continued)
The impairment of financial assets may not be necessarily due to a single disparate event. The
combined effects of multiple events may result in financial assets being credit-impaired.
Parameter of the expected credit loss model
Based on whether there is a significant increase in credit risk and whether the financial assets
are credit-impaired, the Group recognizes impairment allowance for different assets using either
12-month expected credit losses or lifetime expected credit losses. The measurement of the ECL
model is a function of the probability of default, the loss given default (i.e. the magnitude of the
loss if there is a default) and the exposure at default. The Group establishes the model by
considering the quantitative analysis of historical statistics such as the counterparty rating, the
guarantee method, the collateral category, the repayment method, and also forward-looking
information.
Definitions:
(1) The probability of default is the probability that the debtor will not be able to meet its
repayment obligations within the following 12 months or throughout the remaining
duration. To reflect the macro-economic environment conditions, the Group’s assessment
of the probability of default is based on the calculation of the ECL model adjusted by
forward-looking information.
(2) The loss given default (i.e. the magnitude of the loss if there is a default) refers to the
Group's expectation of the extent of the loss of default risk exposure. The loss given
default varies depending on the type of counterparty, the way and priority of recourse,
and the type of collateral. The loss given default is the percentage of the risk exposure
loss at the time of default, calculated on the basis of the next 12 months or the entire
duration.
(3) The exposure at default refers to the amount that the Group should repay in the event of
default in the next 12 months or throughout the remaining period.
Both the assessment of a significant increase in credit risk and the calculation of the ECL involve
forward-looking information. The Group recognises key economic ratios that influence credit risk
and the ECL by historical data analysis.
As at 30 June 2021, there was no evidence of a significant increase in credit risk.
136
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VIII Risks related to financial instruments (Continued)
3. Risks of financial instruments (Continued)
Liquidity risk
The maturity analysis of the Group's financial liabilities as at the end of the reporting period, based on the contractual undiscounted cash flows, is as follows:
30 June 2021
Within 1 year 1 to 2 years 2 to 5 years Above 5 years Total
Short-term borrowings 4,709,466,709.01 - - - 4,709,466,709.01
Long-term borrowings - 2,431,600.00 62,818,460.27 - 65,250,060.27
Notes payable 6,780,425,089.17 - - - 6,780,425,089.17
Accounts payable 9,642,504,836.50 - - - 9,642,504,836.50
Other payables 1,530,963,581.23 - - - 1,530,963,581.23
Non-current liabilities due within 1 year 875,756,920.06 - - - 875,756,920.06
Lease liabilities - 647,956,518.10 715,415,984.31 96,740,307.76 1,460,112,810.17
23,539,117,135.97 650,388,118.10 778,234,444.58 96,740,307.76 25,064,480,006.41
137
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VIII Risks related to financial instruments (Continued)
3. Risks of financial instruments (Continued)
Liquidity risk (Continued)
The maturity analysis of the Group's financial liabilities as at the end of the reporting period, based on the contractual undiscounted cash flows, is as
follows:
31 December 2020
Within 1 year 1 to 2 years 2 to 5 years Above 5 years Total
Short-term borrowings 1,630,237,831.47 - - - 1,630,237,831.47
Long-term borrowings - 1,216,600.00 32,313,062.78 - 33,529,662.78
Notes payable 7,520,165,274.69 - - - 7,520,165,274.69
Accounts payable 7,697,451,142.50 - - - 7,697,451,142.50
Other payables 1,599,166,881.14 - - - 1,599,166,881.14
Non-current liabilities due within 1 year 866,553,230.12 - - - 866,553,230.12
Lease liabilities - 607,074,838.58 682,420,061.05 86,860,654.77 1,376,355,554.40
19,313,574,359.92 608,291,438.58 714,733,123.83 86,860,654.77 20,723,459,577.10
138
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VIII Risks related to financial instruments (Continued)
3. Risks of financial instruments (Continued)
Market risk
Interest rate risk
The Group's interest rate risk arises from long-term borrowings from banks. Financial liabilities
issued at floating rates expose the Group to cash flow interest rate risk. Financial liabilities issued
at fixed rates expose the Group to fair value interest rate risk. The Group determines the relative
proportions of its fixed rate and floating rate contracts depending on the prevailing market
conditions. As at 30 June 2021, if the floating interest rates of the long-term interest-bearing
borrowings increased or decreased by 50 base points, while other factors did not change, the
Group’s net income would decrease or increase by RMB59,087.67 (31 December 2020: if the
floating interest rates of the long-term interest-bearing borrowings increased or decreased by 50
base points, while other factors did not change, the Group’s net income would increase or
decrease by RMB97,072.60).
The Group’s finance department at its headquarters continuously monitors the interest rate
position of the Group. Increases in interest rates will increase the cost of new borrowings and the
interest expenses with respect to the Group’s outstanding floating rate borrowings and, therefore,
could have a material adverse effect on the Group’s financial position. The Group’s management
layer would make adjustments with reference to the latest market conditions which are interest
rate swap agreements to mitigate its exposure to interest rate risk. During 2021 and 2020, the
Group had not entered into any interest rate swap agreements.
For the year ended 30 June 2021, the Group has long-term interest-bearing borrowings with
floating interest rates amounting to RMB31,600,000.00 (31 December 2020: RMB31,600,000.00).
And long-term interest-bearing borrowings with fixed interest rates amounting to
RMB30,000,000.00 (31 December 2020: nil).
Currency risk
The Group’s major operational activities are carried out in Mainland China and a majority of the
transactions are denominated in RMB. The Group is exposed to foreign exchange risk arising from
the recognised assets and liabilities as well as future transactions (denominated in foreign
currencies, primarily with respect to United States dollars and Hong Kong dollars). The Group’s
finance department at its headquarters is responsible for monitoring th e amounts of assets and
liabilities, and transactions denominated in foreign currencies aim at mitigating the potential
foreign exchange risk to a large extent.
139
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
VIII Risks related to financial instruments (Continued)
4. Capital management
The Company’s primary objective for managing capital is to ensure that it maintains a strong credit
rating and a healthy capital ratio in order to support its business, bring shareholders investing returns
and benefit related parties. Management also aims to maintain a capital structure that ensures that
the lowest cost of capital is available to the entity.
Management adjusts the capital structure through adjusting dividend payments to shareholders,
returning capital to shareholders, issuing new shares or selling assets to reduce debts.
The Group’s total capital is the total shareholders’ equity in the balance sheet. The Group does not
adopt an asset ratio as a compulsory factor to govern capital investment.
The gearing ratios of the Group as at the end of the reporting periods are as follows:
30 June 2021 31 December 2020
Gearing ratio 60.43% 57.35%
140
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
IX. Disclosure of fair value
1. Assets and liabilities at fair value
30 June 2021:
Input applied in the measurement of fair value
Quoted Significant Significant Total
prices in observable unobservable
active inputs inputs
markets
Level 1 Level 2 Level 3
Continuous measurement of
fair value
Receivable financing - 345,906,887.55 - 345,906,887.55
Other investment in equity
instruments - 99,488,340.28 - 99,488,340.28
Other non-current financial
assets - - 117,974,908.51 117,974,908.51
- 445,395,227.83 117,974,908.51 563,370,136.34
31 December 2020
Input applied in the measurement of fair value
Quoted Significant Significant Total
prices in observable unobservable
active inputs inputs
markets
Level 1 Level 2 Level 3
Continuous measurement of
fair value
Receivable financing - 1,404,987,700.38 - 1,404,987,700.38
Other investment in equity
instruments - 99,488,340.28 - 99,488,340.28
Other non-current financial
assets - - 120,972,350.24 120,972,350.24
- 1,504,476,040.66 120,972,350.24 1,625,448,390.90
141
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
IX. Disclosure of fair value(Continued)
2. Assets and liabilities disclosed at fair value
30 June 2021:
Input applied in the measurement of fair value
Quoted Significant Significant Total
prices in observable unobservable
active inputs inputs
markets
Level 1 Level 2 Level 3
Long-term borrowings - 61,633,794.44 - 61,633,794.44
3. Estimation of fair value
The following are the book value and fair value of financial instruments of the Group, excluding those that have
immaterial difference in book value and fair value:
Carrying amount Fair value
30 June 2021 31 December 2020 30 June 2021 31 December 2020
Financial liabilities - - - -
Long-term borrowings 61,633,794.44 31,637,173.89 61,633,794.44 31,637,173.89
Management has assessed that the fair values of cash and cash equivalents, trade receivables, receivable
financing, other receivables, short-term borrowings, notes payable, trade payables, other payables, non-current
liabilities due within 1 year as well as other short-term financial assets and liabilities. Due to the short remaining
maturities of these instruments, the fair value approximated to the carrying amount.
The financial controller of the Group takes the responsibility to formulate policies and procedures related to
financial instrument fair value measurements and directly reports to the CFO and the audit committee. On each
balance sheet date, the financial department analyses the variation of the fair value of financial instruments and
determines the inputs applicable to valuation. The valuation is required to be approved by the CFO.
The fair values of financial assets and liabilities are the amounts at which the instrument could be exchanged or
debts could be settled in an arm’s length transaction between knowledgeable and willing parties, other than in a
forced or liquidation sale. The following methods and assumptions were used to estimate the fair values.
The fair values of short-term and long-term borrowings, and long-term payables have been calculated by
discounting the expected future cash flows using market rates of return currently available for other financial
instruments with similar terms, credit risk and remaining maturities. As at 30 June 2021, the Group’s own non-
performance risk for short-term and long-term borrowings was assessed to be insignificant.
For an equity instrument of listed entities, the market price is used to determine fair value. For an equity instrument
of non-listed entities, the recent equity transaction consideration or the market comparable company model is used
to estimate fair value. The Group believes that the estimated fair value by the valuation method is rational, and also
the most sufficient value at the balance sheet date.
142
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
IX. Disclosure of fair value(Continued)
4. Unobservable inputs
Other non-current financial assets were the fund shares of Qirui Port Investment Center LP of Ningbo Meishan
Bonded Port subscribed by the Group. For the determination of the fair value of the investment, after referring to
the net assets of Qirui Port Investment Center LP of Ningbo Meishan Bonded Port on 30 June 2021, which has
implemented the new financial instrument standards, the result was calculated and determined according to the
fund share proportion owned by the company.
A financial instrument that is measured at fair value with measurement of level 3 is insensitive to reasonable
fluctuation of the unobservable inputs.
5. Transfers between levels of fair value measurement
At 30 June 2021 and 31 December 2020, there were no transfers of fair value measurements between Level 1 and
Level 2.
143
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions
1. Parent
Parent’s name Registered address Nature of business Share capital Proportion of ownership Proportion of voting power
interest in the Company in the Company
Industrial investment holding, trustee of a pharmaceutical
Sinopharm enterprise, assets reorganization, distribution and retail of
Group Co., Ltd. Shanghai medicines and pharmaceutical products, etc. 3,120,656,191.00 56.06% 56.06%
The ultimate controlling party of the Company is CNPGC.
2. Subsidiaries
Refer to Note VII 1 for details of subsidiaries.
144
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
3. Associates
Refer to Note VII 2 for details of associates.
The situation of other joint ventures or associates that have related party transactions with the
company during the current period or the balance of the related party transactions with the company
in the previous period is as follows:
Please refer to Note X 5 for details.
4. Other related parties
Company name Related party relationships
Lanzhou Biotechnology Development Co., Ltd. Cont rolled by CNP GC
Shanghai Shyndec Pharmaceutical Marketing Co., Ltd. Cont rolled by CNP GC
China National Pharmaceutical Foreign Trade Corporation Cont rolled by CNP GC
Sinopharm Yixin Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Foshan Winteam Pharmaceutical Group Ltd. Cont rolled by CNP GC
Southwest Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Chengdu Rongsheng Pharmacy Co., Ltd. Cont rolled by CNP GC
Taiji Group Chongqing Fuling Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Beijing Huasheng Pharmaceutical Biotechnology Development Co., Ltd. Cont rolled by CNP GC
Taiji Group Chongqing Tongjunge Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Sinopharm Fengliaoxing (Fos han) Pharmaceutical Drugs Co., Ltd. Cont rolled by CNP GC
Shanghai Shangsheng Biological Products Co., Ltd. Cont rolled by CNP GC
Sinopharm Group Rongsheng Pharmac eutical Co., Ltd. Cont rolled by CNP GC
Sinopharm Zhonglian Pharmaceutical Group Co., Ltd. Cont rolled by CNP GC
China National Pharmaceutical Industry Co., Ltd. Cont rolled by CNP GC
Shanghai Modern Hasen (Shangqiu) Pharmaceutical Co., Ltd. Cont rolled by CNP GC
145
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name Related party relationships
Sinopharm Luya (S handong) Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Sinopharm Tongjitang (Guizhou) Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Sinopharm ChuanK ang Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Huayi Pharmac eutical Co., Ltd. Cont rolled by CNP GC
Sinopharm Shantou Jinshi Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Sinopharm Weiqida Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Chengdu Institute of Biological Products Co., Ltd. Cont rolled by CNP GC
Sinopharm Group Yibin Pharmaceuticals Co., Ltd. Cont rolled by CNP GC
Yunnan Tianjiang Yifang Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Wuhan Zhongsheng Yujin Biological Medicine Co., Ltd. Cont rolled by CNP GC
Shantou Jinshi Powder Injection Co., Ltd. Cont rolled by CNP GC
Sinopharm Xinjiang Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Sinopharm Wuhan Blood Products Co., Ltd. Cont rolled by CNP GC
Taiji Group Cont rolled by CNP GC
Sichuan Jiangyou Zhongba Aconiti Science and Technology Development Cont rolled by CNP GC
Co., Ltd.
Sinopharm Wuhan Zhonglian Siyao Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Taiji Group Zhejiang Dongfang Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Taiji Group Sichuan Mianyang Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Sinopharm Sanyi Medicine (Wuhu) Co., Ltd. Cont rolled by CNP GC
Sinopharm (Anhui) Jingfang Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Taiji Group Sichuan Nanchong Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Shanghai Zeno Biotec hnology Co., Ltd. Cont rolled by CNP GC
Sinopharm Guangdong Global Pharmac eutical Co., Ltd. Cont rolled by CNP GC
Fujian Chentian Jinling Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Sinopharm Dezhong (Foshan) Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Sinopharm Foreign Trade (Beijing) Co., Ltd. Cont rolled by CNP GC
Foshan Chengnan Fengliaoxing Medical Hospital Co., Ltd. Cont rolled by CNP GC
Sinopharm Fengliaoxing Medical Hospital Co., Ltd. Cont rolled by CNP GC
Chongqing Tongjunge Co., Ltd. Cont rolled by CNP GC
Sichuan Taiji Pharmacy Chain Co., Ltd. Cont rolled by CNP GC
Sinopharm Group Fengliaoxing Medical Hospital (Foshan Nanhai) Co., Ltd. Cont rolled by CNP GC
China Sinopharm International Corporation Cont rolled by CNP GC
Guangdong Yifang Pharmaceutical Co., Ltd. Cont rolled by CNP GC
146
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name Relat ed party relationships
Sinopharm Fengliaoxing (Fos han) Medicines Co., Ltd. Cont rolled by CNP GC
Sinopharm Group Fengliaoxing Pharmacy (Foshan) Co., Ltd. Cont rolled by CNP GC
Guangxi Yifang Tianjiang Pharmaceutical Co., Ltd. Cont rolled by CNP GC
Sinopharm Group Financial Co., Ltd. Cont rolled by CNP GC
Innostar Biotechnology Nantong Co., Ltd Cont rolled by CNP GC
Hubei Sinopharm Zhonglian Medicine Co., Ltd. Cont rolled by CNP GC
Taiji Group Gansu Tianshui Xihuang Ejiao Co., Ltd. Cont rolled by CNP GC
Sinopharm Beijing Huamiao Pharmaceutical Co., Ltd. Cont rolled by CNP GC
China National of Traditional & Herbal Medicine Co., Ltd. Cont rolled by CNP GC
Sinopharm Holding Sub Mark eting Center Co., Ltd. Cont rolled by Sinopharm Group
China National Medicines Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shanxi Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shenyang Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shanxi Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Yangzhou Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Lunan Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Inner Mongolia Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Jilin Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Fujian Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Henan Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shandong Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Group Guangdong Medicine Device Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Beijing Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Xinjiang Xint e Shenrong Pharmac eutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Jiangsu Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Tongliao Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Group Guorui Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Hebei Medical Instrument Trade Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Hunan Co., Ltd. Cont rolled by Sinopharm Group
147
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name Relat ed party relationships
Sinopharm Holding Pingdingshan Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Xiamen Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Changzhou Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Shijiaz huang Medicine Co., Ltd. Cont rolled by Sinopharm Group
Yunnan Sinopharm Holding Dongchang Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Jinzhou Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Ningxia Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Anshan Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Group Shanxi Medical Devices Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shanxi Zhongjian Medical Device Chain Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Jinan Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shanxi Dajiuzhou Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Jiankun (B eijing) Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Donghong Medical (S hanghai) Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Advanced (Shanghai) Medical Device Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shanghai Lik ang Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Shanghai International Pharmaceutical Trade Co., Ltd. Cont rolled by Sinopharm Group
China National Medical Device Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Heilongjiang Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Huaideju (Xiamen) Pharmacy Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Wuxi Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Hulun Buir Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Beijing Kangchen Bio-P harmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Group Southwest Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Tianjin Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Linfen Ningle Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Xinjiang Xint e Karamay Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Dalian Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Liaoning Medical Equipment Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Yancheng Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Qinhuangdao Pharmaceutical Trading Co., Ltd. Cont rolled by Sinopharm Group
148
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name Relat ed party relationships
Sinopharm Holding Fuzhou Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lingyun Biopharmaceutical (S hanghai) Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Yunnan Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Anhui Huaning Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Xinjiang Special Drugs Kashgar P harmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Huixinqinyuan (Beijing) Technology Development Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Nantong Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Biopharmaceutical (Tianjin) Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Quanzhou Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Special Drugs Shihezi Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Benxi Co., Ltd. Cont rolled by Sinopharm Group
Shanghai Merro Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Hubei Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holdings Beijing Huahong co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shanghai Biomedicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Yangzhou Medical Treatment Equipment Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Chifeng Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Zhejiang Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Pu’er Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Hubei Likang Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Hainan Hongyi Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Putian Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Sichuan Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Bayannur Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Anhui Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Hunan Pharmaceutical Development Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shanxi Mingdikang Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Nanping Newforce Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Xinye (Hubei) Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Changsha Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Xinjiang Special Drugs Yili Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Kunming Co., Ltd. Cont rolled by Sinopharm Group
149
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name Relat ed party relationships
Sinopharm Holding Changde Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Ordos Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Inner Mongolia Medical Equipment Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Dalian Hecheng Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Hainan Co., Ltd. Cont rolled by Sinopharm Group
China National Medical Device (Hui Zhou) Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Group Medicine Logistic Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Changsha Gaoxin Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Nanjing Wende Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Group Linfen Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Device (Guangdong) Medical Technology Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Liaoning Medical Equipment Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Zhangzhou Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Yangzhou Biological Products Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Shenzhen Medicine Device Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Hubei Guoda Pharmacy Co., Ltd. Cont rolled by Sinopharm Group
China National Scientific Instruments & Materials I&E Shenzhen Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Chongqing Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Medical Instrument (Hainan) Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Wuhan Hongshen Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm (Dalian) Medical Device Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Linyi Medical Devic e Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Hebei Medical Instrument Co., Ltd. Cont rolled by Sinopharm Group
Liaoning Pilot Free Trade Zone China Medical Device Technology Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shanxi Ji nzhong Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shanxi Runhe Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Group Med-Tech Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Rizhao Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Jiangxi Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Chengdu Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shiyan Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Ulanqab Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shanxi Jincheng Co., Ltd. Cont rolled by Sinopharm Group
150
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name Relat ed party relationships
Sinopharm Holding Lianyungang Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Changzhou Medical Logistics Center Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Baotou Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Group Shanghai Medicine Device Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Dezhou Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Taizhou Co., Ltd. Cont rolled by Sinopharm Group
China Medical Equipment Shandong Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Guang’an Co., Ltd.. Cont rolled by Sinopharm Group
Shanghai Tongyu Information Technology Co., Ltd. Cont rolled by Sinopharm Group
Guorun Medical Supply Chain Service (S hanghai) Co., Ltd. Cont rolled by Sinopharm Group
Xinjiang Bait ong Property Servic e Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Pharmaceutical Logistics Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Logistics Beijing Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Wenz hou Co., Ltd. Cont rolled by Sinopharm Group
Handan Sinopharm Lerentang Pharmacy Chain Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang (Langfang) Pharmaceutical Trade Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Tangshan Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Xingtai Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Guizhou Medical Device Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Baoding Trading Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Baoding Hongkang Pharmaceutical Chain Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shanxi Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Hengshui Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding (Hubei) Hankou Pharmacy Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Anhui Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Xuzhou Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shangqiu Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Gansu Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Guizhou Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Chongqing Taimin Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Anshun Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Tongren Co., Ltd. Cont rolled by Sinopharm Group
151
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name Relat ed party relationships
Sinopharm Holding Guizhou (Zunyi) Medical Equipment Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Zunyi Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Wuhu Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Cangzhou Medicine Co., Ltd. Cont rolled by Sinopharm Group
Shanghai Shengxin Pharmacy Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Qinhuangdao Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Tangshan Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Baise Device Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shanxi Pharmacy Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Qinghai Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Honghe Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Xingtai Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Jiaozuo Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Anhui Pharmaceutical Chain Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Chuxiong Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Shijiaz huang Medical Management Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Tianjin Nort h Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Cangzhou Pharmaceutical Trading Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Guangdong Medical Examination Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Chengde Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Group Guangxi Medical Device Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Zhangjiakou Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Langfang Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Longyan Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Hubei Hongy uan Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Medical Instrument Guizhou Qiannan Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Handan Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Wuhan Guoda Pharmacy Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Baoding Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Zhangjiakou Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Professional Pharmacy (Hainan) Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Healthcare Shijiazhuang Pharmacy Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Hongrun Medical Business Service (Shanghai) Co., Ltd. Cont rolled by Sinopharm Group
152
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name Relat ed party relationships
Sinopharm Holding Zhuanye Pharmacy (Dongfang) Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company Cont rolled by Sinopharm Group
Limited
Sinopharm Holding Ningde Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Changxing Professional Pharmacy (Haikou) Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Pharmacy (Shanghai) Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Guanai Yuankang Pharmacy (Haikou) Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Dalian Special Drugs Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shanxi Medical Devices Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding (S handong) Medicine Device Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Professional Pharmacy Songyuan Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Medical Instrument (Jiangmen) Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Xinyu Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Suzhou Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Zhuhai Medical Instrument Co., Ltd. Cont rolled by Sinopharm Group
Yuxi Sinopharm Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Hunan Prov. Medical Equipment Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Qianxi’nan Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Fuzhou Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Kunming Pharmacy Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Guanai Jikun Pharmacy (Haikou) Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Lerentang Langfang Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Zhenjiang Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Guizhou Medical Chain Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shanxi Hejin Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Jilin Chain Store Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Guangdong Medicine Device Supply Chain Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Medical Instrument Guangxi Medical Technology Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Medical Instrument (Fos han) Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Device (Guangdong) Medical Technology Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Group Shanghai Co., Ltd. Cont rolled by Sinopharm Group
Beijing Sinopharm Tianyuan Real Estate & Property Management Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Guizhou Yitong Medicine Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Shanxi Linfen Co., Ltd. Cont rolled by Sinopharm Group
153
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name Relat ed party relationships
Sinopharm Holding Huaideju Pharmaceutical (Xiamen) Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Liaocheng Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Jilin Medicine Devic e Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding (Tianjin Binhai) Pharmaceutical Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Chemical Reagent Co., Ltd. Cont rolled by Sinopharm Group
Sinopharm Holding Huaian Co., Ltd. Cont rolled by Sinopharm Group
Fresenius Kabi Huarui Pharmaceuticals Co., Ltd. Associate of CNPGC
China Otsuka Pharmaceutical Co., Ltd. Associate of CNPGC
Sinopharm Group Shanxi Ruifulai Co., Ltd. Associate of CNPGC
SINO-TCM Shanghai Medicine & Medicinal Materials Co., Ltd. Associate of CNPGC
Changchun Changsheng Gene Pharmaceutical Co., Ltd. Associate of CNPGC
Yichang Humanwell Pharmaceutical Co., Ltd. Associate of Sinopharm Group
Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co., Ltd. Associate of Sinopharm Group
Sinopharm Holding Chuangke Medical Technology (Guangxi) Co., Ltd. Associate of Sinopharm Group
Sinopharm Holding Chuangke Yuanzhe Medical Technology (Shanghai) Co., Associate of Sinopharm Group
Ltd.
Sinopharm Health Online Co., Ltd. Associate of Sinopharm Group
Shanghai Guoda Lingyun Pharmacy Co., Ltd. Associate of Sinopharm Group
Sinopharm Holding (China) Financing Lease Co., Ltd. Associate of Sinopharm Group
Sinopharm Nutraceuticals (Shanghai) Co., Ltd. Associate of Sinopharm Group
Sinopharm Anhui Great Healt h Industry Co., Ltd. Associate of Sinopharm Group
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. Minority shareholders of a subsidiary
Jiangmen Xinhui District Jianfeng Pharmac eutical Co., Ltd. Minority shareholders of a subsidiary
Lerentang Investment Group Co., Ltd. Minority shareholders of a subsidiary
Shenyang Pharmaceutical Co., Ltd. Minority shareholders of a subsidiary
Hunan Mins hengtang Biotechnology Co., Ltd. Minority shareholders of a subsidiary
Guangdong Jiyuantang Development Co., Ltd. Minority shareholders of a subsidiary
Xishuangbanna Disheng Pharmaceutical Co., Ltd. Minority shareholders of a subsidiary
Beijing Huafang Investment Co., Ltd. Minority shareholders of a subsidiary
Gu Haiqun Minority shareholders of a subsidiary
Shenzhen Jiufeng Investment Co., Ltd. Minority shareholders of a subsidiary
Zhang Haiyan Minority shareholders of a subsidiary
Taishan Qunkang Pharmacy Co., Ltd. Minority shareholders of a subsidiary
Pu'er Songmao Medicine Group Co., Ltd. Minority shareholders of a subsidiary
154
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
4. Other related parties (Continued)
Company name Relat ed party relationships
Hangzhou Xihu District Commercial Co., Ltd. Minority shareholders of a subsidiary
Jilin Provinc e Yihe Investment Consulting Co., Ltd. Minority shareholders of a subsidiary
Du Longfeng Minority shareholders of a subsidiary
Li Huichun Minority shareholders of a subsidiary
Zhang Zhenfang Minority shareholders of a subsidiary
Pingdingshan Pusheng Pharmac eutical Co., Ltd. Minority shareholders of a subsidiary
Xiong Xinyuan Minority shareholders of a subsidiary
Shenyang Shengdiou Trading Co., Ltd. Minority shareholders of a subsidiary
Shanghai Baizhong Business Development (Group) Co., Ltd. Minority shareholders of a subsidiary
Zhang Yechuan Family members of the actual
controller of minority shareholders of a
subsidiary
Wang Yang Family members of the actual
controller of minority shareholders of a
subsidiary
Li Fang The actual cont roller of minority
shareholders of a subsidiary
Gu Jinhua The actual cont roller of minority
shareholders of a subsidiary
Nanjing Yuanguang Trading Co., Ltd. Companies owned by minority
shareholders of a subsidiary
Shaoguan Wujiang District Muyang Medicine Information Consultant Co., Ltd. Companies owned by minority
shareholders of a subsidiary
Taishan Xiangranhui Trade Co., Ltd. Companies owned by minority
shareholders of a subsidiary
Southeast (Quanzhou) Biotechnology Pharmaceutical Co., Ltd. Companies owned by minority
shareholders of a subsidiary
Shenzhen Wanwei Medicine Trading Co., Ltd. Subsidiary of Main Luck
Pharmaceutical
Jiangsu Wanbang Pharmacy Marketing Co., Ltd. Subsidiary of Fosun Pharm
Chongqing Yaoyou Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Shanghai Henlius Biopharmaceuticals Co., Ltd. Subsidiary of Fosun Pharm
Tibet Yaoyou Medicines Co., Ltd. Subsidiary of Fosun Pharm
Jinzhou A vanc Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Shanghai Chaohui Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Jiangxi Erye Medicine Marketing Co., Ltd. Subsidiary of Fosun Pharm
Fosun Pharmaceutical Distribution Jiangsu Co., Ltd. Subsidiary of Fosun Pharm
Sichuan Hexin Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Suzhou Erye Pharmaceutical Limited Company Subsidiary of Fosun Pharm
Hunan Dongting Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
155
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
5. Other related parties (Continued)
Company name Relat ed party relationships
GlaxoSmithKline Pharmaceuticals (Suzhou) Co., Ltd. Subsidiary of Fosun Pharm
Shanghai Trans fusion Technology Co., Ltd. Subsidiary of Fosun Pharm
Shenyang Hongqi Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Guilin Pharmac eutical Co., Ltd. Subsidiary of Fosun Pharm
Jinzhou A vanc Medicine Co., Ltd. Subsidiary of Fosun Pharm
Jiangsu Huanghe Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Hunan Yaoyou Medicines Co., Ltd. Subsidiary of Fosun Pharm
Suzhou Laishi Transfusion Equipment Subsidiary of Fosun Pharm
Chengdu List Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Chongqing Haisiman Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Foshan Chancheng Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Shenzhen Hengsheng Hospital Subsidiary of Fosun Pharm
Foshan Chancheng Cent ral Hospital Co., Ltd. Subsidiary of Fosun Pharm
Foshan Chanyixing Medicine Development Co., Ltd. Subsidiary of Fosun Pharm
Shenzhen Chindex Medical Beauty Clinic Subsidiary of Fosun Pharm
Lecong Supply and Market Group Shunketang Medicine Co., Ltd. Subsidiary of Fosun Pharm
Chindex Shanghai International Trading Co., Ltd. Subsidiary of Fosun Pharm
Dalian Yalifeng Biopharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Chindex Shanghai International Trading Co., Ltd. Subsidiary of Fosun Pharm
Naton Biotechnology (Beijing) Co., Ltd. Subsidiary of Fosun Naton
156
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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
Relat ed party Type of For the six Approved trading quot a whet her the For the six months
transaction months ended transaction ended 30 June
30 June 2021 limit is 2020
exceeded
Sinopharm Holding Sub Purchase
Marketing Center Co., Ltd. of goods 567,957,995.48 NO 548,051,256.56
China National Medicines Purchase
Co., Ltd. of goods 378,976,943.17 NO 309,588,426.46
Sinopharm Holding Shanxi Purchase
Co., Ltd. of goods 291,169,816.86 NO 302,659,086.81
Sinopharm Holding Purchase
Shenyang Co., Ltd. of goods 218,687,438.90 NO 91,252, 243. 44
Sinopharm Lerentang Purchase
Medicine Co., Ltd. of goods 212,774,916.08 NO 144,033,107.71
Sinopharm Holding Shanxi Purchase
Co., Ltd. of goods 204,598,556.55 NO 168,218,597.08
Sinopharm Group Xinjiang
Special Drugs National Purchase
Pharmaceutical Co., Ltd. of goods 132,068,068.87 NO 76,699, 225. 00
Purchase
Sinopharm Group Co., Ltd. of goods 130,357,912.20 NO 101,625,946.62
Fresenius Kabi Huarui Purchase
Pharmaceuticals Co., Ltd. of goods 83,397, 212. 70 NO 60,511, 824. 27
Jiangsu Wanbang
Pharmacy Marketing Co., Purchase
Ltd. of goods 80,954, 984. 16 NO 97,184, 029. 57
Lanzhou Biotechnology Purchase 8,910,000,000.00
Development Co., Ltd. of goods 68,090, 371. 68 NO 48,840, 600. 00
Sinopharm Holding Purchase
Yangzhou Co., Ltd. of goods 51,592, 777. 55 NO 38,126, 655. 70
Sinopharm Holding
Xinjiang Special Drugs
Western Pharmaceutical Purchase
Co., Ltd. of goods 45,696, 541. 00 NO 34,152, 784. 08
Sinopharm Holding Lunan Purchase
Co., Ltd. of goods 40,999, 864. 55 NO 26,448, 807. 82
Sinopharm Holding Inner Purchase
Mongolia Co., Ltd. of goods 40,632, 946. 46 NO 35,570, 487. 58
Chongqing Yaoyou Purchase
Pharmaceutical Co., Ltd. of goods 37,011, 667. 64 NO 26,949, 678. 43
Shanghai Shyndec
Pharmaceutical Marketing Purchase
Co., Ltd. of goods 36,421, 939. 26 NO 82,302. 92
China National
Pharmaceutical Foreign Purchase
Trade Corporation of goods 31,428, 461. 51 NO 8,156,658.48
Sinopharm Holding Jilin Purchase
Co., Ltd. of goods 30,157, 192. 13 NO 11,181, 666. 83
Sinopharm Yixin Purchase of
Pharmaceutical Co., Ltd. goods 28,345, 022. 18 NO 8,249,563.42
157
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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)
Relat ed party Type of For the six Approved trading quot a whet her the For the six months
transaction months ended transaction ended 30 June
30 June 2021 limit is 2020
exceeded
Shanghai Henlius
Biopharmac euticals Co., Purchase of
Ltd. goods 26,663, 502. 35 NO -
Sinopharm Holding Fujian Purchase of
Co., Ltd. goods 26,242, 880. 93 NO 21,032, 808. 12
Purchase of
Main Luck Pharmaceutical goods 25,917, 861. 73 NO 16,716, 318. 29
Foshan Winteam Purchase of
Pharmaceutical Group Ltd. goods 23,659, 412. 81 NO 11,624, 754. 37
Sinopharm Holding Henan Purchase of
Co., Ltd. goods 22,693, 352. 04 NO 22,896, 338. 50
Sinopharm Holding Purchase of
Shandong Co., Ltd. goods 22,619, 090. 27 NO 9,870,222.38
Sinopharm Holding
Lerentang Pharmaceutical Purchase of
Co., Ltd. goods 19,472, 073. 81 NO 16,213, 399. 66
Sinopharm Group
Guangdong Medicine Purchase of
Device Co., Ltd. goods 19,340, 530. 98 NO -
Southwest Pharmaceutical Purchase of
Co., Ltd. goods 17,542, 194. 64 NO -
8,910,000,000.00
Sinopharm Holding Beijing Purchase of
Co., Ltd. goods 17,360, 821. 15 NO 32,520, 572. 80
Sinopharm Holding Xinjiang
Xinte Shenrong Purchase of
Pharmaceutical Co., Ltd. goods 17,310, 598. 75 NO -
Sinopharm Holding Jiangsu Purchase of
Co., Ltd. goods 16,730, 745. 30 NO 10,137, 097. 99
Sinopharm Holding Purchase of
Tongliao Co., Ltd. goods 16,039, 594. 19 NO 5,810,230.35
Purchase of
Sinopharm Zhijun goods 15,931, 558. 84 NO 12,126, 208. 66
Sinopharm Group Guorui Purchase of
Medicine Co., Ltd. goods 15,180, 518. 65 NO 2,675,445.41
Sinopharm Lerentang
Hebei Medical Instrument Purchase of
Trade Co., Ltd. goods 14,889, 163. 04 NO 4,168,839.16
Chengdu Rongsheng Purchase of
Pharmacy Co., Ltd. goods 14,584, 099. 03 NO 8,518,290.00
Tibet Yaoyou Medicines Purchase of
Co.,Ltd. goods 14,011, 950. 98 NO 10,576, 537. 72
Sinopharm Holding Hunan Purchase of
Co., Ltd. goods 13,204, 231. 22 NO 8,970,281.71
158
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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)
Relat ed party Type of For the six Approved trading quota whet her the For the six months
transaction months ended transaction ended 30 June
30 June 2021 limit is 2020
exceeded
Shenzhen Wanwei Purchase of
Medicine Trading Co., Ltd. goods 13,151, 952. 24 NO 11,467, 474. 49
Yichang Humanwell Purchase of
Pharmaceutical Co., Ltd. goods 12,457, 905. 62 NO 7,649,748.62
Sinopharm
Pharmaceuticals Purchase of
(Shanghai) Co., Ltd. goods 12,051, 455. 59 NO 3,507,017.31
Sinopharm Holding Purchase of
Pingdingshan Co., Ltd. goods 11,979, 529. 78 NO 15,984, 508. 75
Sinopharm Holding Xiamen Purchase of
Co., Ltd. goods 11,957, 608. 14 NO 8,217,598.96
Jinzhou A vanc Purchase of
Pharmaceutical Co., Ltd. goods 11,829, 570. 34 NO 7,185,929.54
China Otsuka Purchase of
Pharmaceutical Co., Ltd. goods 11,763, 554. 47 NO 6,256,674.56
Purchase of
Zhijun Pingshan goods 10,838, 947. 13 NO 11,851, 634. 26
Sinopharm Holding Purchase of
Changzhou Co., Ltd. goods 10,160, 654. 93 NO 11,126, 503. 85
Sinopharm Xingsha
Pharmaceuticals (Xiamen) Purchase of
8,910,000,000.00
Co., Ltd. goods 9,851,650.37 NO 5,872,922.23
Sinopharm Lerentang
Shijiazhuang Medicine Co., Purchase of
Ltd. goods 9,697,409.23 NO 7,471,038.17
Yunnan Sinopharm
Holding Dongchang Purchase of
Medicine Co., Ltd. goods 9,191,104.74 NO 989,799.95
Sinopharm Holding Purchase of
Jinzhou Co., Ltd. goods 8,931,064.40 NO 3,117,332.78
Shanghai Chaohui Purchase of
Pharmaceutical Co., Ltd. goods 7,770,056.47 NO 3,912,114.41
Sinopharm Holding Ningxia Purchase of
Co., Ltd. goods 7,527,437.99 NO 12,243, 904. 08
Sinopharm Holding Anshan Purchase of
Co., Ltd. goods 7,386,999.04 NO 584,206.98
Sinopharm Group Shanxi Purchase of
Medical Devices Co., Ltd. goods 6,568,011.43 NO 4,980,871.81
Jiangxi Erye Medicine Purchase of
Marketing Co., Ltd. goods 6,315,288.30 NO 6,456,636.49
Sinopharm Holding Shanxi
Zhongjian Medicial Devic e Purchase of
Chain Co., Ltd. goods 6,180,889.71 NO 7,522,898.44
159
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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)
Relat ed party Type of For the six Approved trading quota whet her the For the six months
transaction months ended transaction ended 30 June
30 June 2021 limit is 2020
exceeded
Fosun Pharmaceutical
Distribution Jiangsu Co., Purchase of
Ltd. goods 5,932,515.36 NO 2,481,349.10
Sinopharm Holding Jinan Purchase of
Co., Ltd. goods 5,593,031.01 NO 3,208,390.44
Sinopharm Holding Shanxi
Dajiuzhou Medicine Co., Purchase of
Ltd. goods 5,438,916.55 NO 4,606,542.22
Taiji Group Chongqing
Fuling Pharmaceutical Purchase of
Co., Ltd. goods 5,323,305.69 NO -
Sinopharm Jiankun Purchase of
(Beijing) Medicine Co., Ltd. goods 4,529,929.13 NO 1,444,828.32
Sinopharm Holding
Donghong Medical Purchase of
(Shanghai) Co., Ltd. goods 4,477,305.68 NO 1,124,358.11
Sinopharm Advanced
(Shanghai) Medicine Purchase of
Device Co., Ltd. goods 4,359,697.01 NO 649,215.02
Beijing Huasheng
Pharmaceutical
Biotechnology Purchase of
8,910,000,000.00
Development Co., Ltd. goods 4,230,984.00 NO 1,450,504.18
Sinopharm Holding
Shanghai Likang Purchase of
Pharmaceutical Co., Ltd. goods 4,051,307.75 NO 2,283,462.26
Taiji Group Chongqing
Tongjunge Pharmaceutical Purchase of
Co., Ltd. goods 3,955,453.47 NO -
Sinopharm Fengliaoxing
(Foshan) Pharmaceutical Purchase of
Drugs Co., Ltd. goods 3,765,974.30 NO 2,745,736.27
Shanghai Shangsheng
Biological Products Co., Purchase of
Ltd. goods 3,748,316.28 NO 1,506,116.50
Sinopharm Holding
Chuangke Medicial
Technology (Guangxi) Co., Purchase of
Ltd. goods 3,741,777.16 NO 796,460.19
Shanghai International
Pharmaceutical Trade Co., Purchase of
Ltd. goods 3,215,831.81 NO 3,897,527.05
Sinopharm Group
Rongsheng Purchase of
Pharmaceutical Co., Ltd. goods 2,917,177.22 NO 1,911,884.91
160
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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)
Relat ed party Type of For the six Approved trading quota whet her the For the six months
transaction months ended transaction ended 30 June
30 June 2021 limit is 2020
exceeded
China National Medical Purchase of
Device Co., Ltd. goods 2,866,958.60 NO 26,548. 67
Sinopharm Holding Purchase of
Heilongjiang Co., Ltd. goods 2,700,433.59 NO 2,533,432.31
Sinopharm Holding
Huaideju Pharmaceutical Purchase of
(Xiamen) Co., Ltd. goods 2,654,950.93 NO -
Sichuan Hexin Purchase of
Pharmaceutical Co., Ltd. goods 3,903,635.62 NO 2,257,987.38
Sinopharm Holding Wuxi Purchase of
Co., Ltd. goods 2,439,252.13 NO 8,550,202.41
Sinopharm Holding Hulun Purchase of
Buir Co., Ltd. goods 2,425,267.22 NO 1,564,568.11
Sinopharm Zhonglian
Pharmaceutical Group Co., Purchase of
Ltd. goods 2,350,922.70 NO 907,465.81
Sinopharm Holding Beijing
Kangchen Bio- Purchase of
Pharmaceutical Co., Ltd. goods 2,321,886.33 NO (550,607.22)
Sinopharm Group
Southwest Medicine Co., Purchase of
Ltd. goods 2,313,721.29 NO 372,966.72
8,910,000,000.00
Sinopharm Holding Tianjin Purchase of
Co., Ltd. goods 2,113,934.18 NO 2,168,770.41
Suzhou Erye
Pharmaceutical Limited Purchase of
Company goods 1,942,102.86 NO 1,489,545.90
Sinopharm Holding Linfen
Ningle Pharmaceutical Co., Purchase of
Ltd. goods 1,922,967.49 NO 160,565.02
Sinopharm Holding
Xinjiang Special Drugs
Karamay Pharmaceutical Purchase of
Co., Ltd. goods 1,801,633.72 NO 2,704,084.84
Hunan Dongting Purchase of
Pharmaceutical Co., Ltd. goods 1,673,060.75 NO 1,885,047.92
China National
Pharmaceutical Industry Purchase of
Co., Ltd. goods 1,658,893.69 NO 1,509,682.80
Sinopharm Holding Dalian Purchase of
Co., Ltd. goods 1,618,603.64 NO 1,450,198.00
Sinopharm Liaoning
Medical Equipment Co., Purchase of
Ltd. goods 1,610,762.20 NO 3,970,884.24
161
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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)
Relat ed party Type of For the six Approved trading quota whet her the For the six months
transaction months ended transaction ended 30 June
30 June 2021 limit is 2020
exceeded
Sinopharm Holding Beijing
Tianxing Puxin Biological Purchase of
Medical Co., Ltd. goods 1,591,292.21 NO 34,820, 929. 08
Shanghai Modern Hasen
(Shangqiu) Pharmaceutical Purchase of
Co., Ltd. goods 1,553,305.70 NO 506,283.18
Sinopharm Luya
(Shandong) Purchase of
Pharmaceutical Co., Ltd. goods 1,537,349.20 NO 2,381,688.57
Sinopharm Holding Purchase of
Yancheng Co., Ltd. goods 1,355,193.79 NO 1,623,042.70
Sinopharm Tongjitang
(Guizhou) Pharmaceutical Purchase of
Co., Ltd. goods 1,342,043.34 NO 2,616,939.67
Glaxosmithkline
Pharmaceuticals (Suzhou) Purchase of
Co., Ltd. goods 1,312,782.80 NO 6,570,287.55
Sinopharm Chuank ang Purchase of
Pharmaceutical Co., Ltd. goods 1,292,333.10 NO 1,699,176.97
Huayi Pharmac eutical Co., Purchase of
Ltd. goods 1,266,831.84 NO 176,144.72
Sinopharm Lerentang 8,910,000,000.00
Qinhuangdao
Pharmaceutical Trading Purchase of
Co., Ltd goods 1,156,691.29 NO -
Sinopharm Holding Fuzhou Purchase of
Co., Ltd. goods 1,152,589.16 NO 2,117,865.83
Sinopharm Lingyun
Biopharmac eutical Purchase of
(Shanghai) Co., Ltd. goods 1,017,142.82 NO 1,717,968.13
Beijing Golden Elephant
Fosun Pharmaceutical Co., Purchase of
Ltd. goods 984,816.68 NO 2,391,565.82
Sinopharm Holding Yunnan Purchase of
Co., Ltd. goods 805,065.42 NO 143,973.45
Sinopharm Shantou Jinshi Purchase of
Pharmaceutical Co., Ltd. goods 781,581.70 NO 1,077,980.94
Sinopharm Holding Anhui Purchase of
Huaning Medicine Co., Ltd. goods 781,575.58 NO 1,434,252.18
Sinopharm Holding
Xinjiang Special Drugs
Kashgar Pharmaceutical Purchase of
Co., Ltd. goods 773,057.14 NO 627,174.03
162
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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)
Relat ed party Type of For the six Approved trading quota whet her the For the six months
transaction months ended transaction ended 30 June
30 June 2021 limit is 2020
exceeded
Sinopharm Huixinqinyuan
(Beijing) Technology Purchase of
Development Co., Ltd. goods 753,274.35 NO 1,300,658.82
Sinopharm Holding Purchase of
Nant ong Co., Ltd. goods 697,002.20 NO -
Sinopharm Weiqida Purchase of
Pharmaceutical Co., Ltd. goods 690,157.52 NO 668,790.52
Sinopharm Holding
Biopharmac eutical (Tianjin) Purchase of
Co., Ltd. goods 682,560.86 NO 414,430.28
Shanghai Trans fusion Purchase of
Technology Co., Ltd. goods 667,699.12 NO 712,212.39
Sinopharm Holding Purchase of
Quanzhou Co., Ltd. goods 662,423.54 NO 880,856.56
Shenyang Hongqi Purchase of
Pharmaceutical Co., Ltd. goods 653,104.18 NO 359,010.73
Sinopharm Holding Special
Drugs Shihezi Purchase of
Pharmaceutical Co., Ltd. goods 607,344.52 NO 132,136.11
Chengdu Institute of
Biological Products Purchase of
Co.,Ltd. goods 562,767.00 NO 475,738.80
Sinopharm Holding Benxi Purchase of 8,910,000,000.00
Co., Ltd. goods 559,188.59 NO -
Shanghai Merro Purchase of
Pharmaceutical Co., Ltd. goods 542,162.94 NO 749,178.23
Sinopharm Group Yibin Purchase of
Pharmaceuticals Co., Ltd. goods 536,821.03 NO 433,524.84
Sinopharm holdings Hubei Purchase of
Co., Ltd. goods 531,440.87 NO 58,060, 607. 87
Yunnan Tianjiang Yifang Purchase of
Pharmaceutical Co., Ltd. goods 497,209.07 NO -
Guilin Pharmac eutical Co., Purchase of
Ltd. goods 491,568.15 NO 351,228.30
Sinopharm holdings Beijing Purchase of
Huahong Co., Ltd. goods 471,946.23 NO 2,856,735.70
Sinopharm Holding
Shanghai Biomedicine Co., Purchase of
Ltd. goods 408,296.15 NO 282,209.74
Sinopharm Group Shanxi Purchase of
Ruifulai Co., Ltd. goods 404,922.04 NO -
Sinopharm Holding
Yangzhou Medical
Treatment Equipment Co., Purchase of
Ltd. goods 371,264.92 NO 1,209,038.66
163
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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)
Relat ed party Type of For the six Approved trading quota whet her the For the six months
transaction months ended transaction ended 30 June
30 June 2021 limit is 2010
exceeded
Wuhan Zhongsheng Yujin
Biological Medicine Co., Purchase of
Ltd. goods 354,016.00 NO -
Shantou Jinshi Powder Purchase of
Injection Co., Ltd. goods 351,589.74 NO 300,803.34
Sinopharm Holding Chifeng Purchase of
Co., Ltd. goods 347,527.93 NO -
Sinopharm Xinjiang Purchase of
Pharmaceutical Co., Ltd. goods 341,818.02 NO 368,206.57
Sinopharm Holding Purchase of
Zhejiang Co., Ltd. goods 317,534.11 NO 194,238.02
Sinopharm Holding Puer Purchase of
Co., Ltd. goods 296,085.02 NO 446,396.77
Sinopharm Holding
Zhihuiminsheng (Tianjin) Purchase of
Pharmaceutical Co., Ltd. goods 295,539.81 NO 2,181,662.15
Sinopharm Wuhan Blood Purchase of
Products Co., Ltd. goods 281,200.00 NO 24,800. 00
Jinzhou A vanc Medicine Purchase of
Co., Ltd. goods 265,412.37 NO 2,780,545.99
Sinopharm Holding Hubei
Likang Pharmaceutical Co., Purchase of 8,910,000,000.00
Ltd. goods 260,747.00 NO -
Sinopharm Holding Hainan Purchase of
Hongyi Co., Ltd. goods 258,280.38 NO 17,043. 48
Sinopharm Holding Putian Purchase of
Co., Ltd. goods 257,643.78 NO 466,764.43
Sinopharm Sichuan Purchase of
Pharmaceutical Co., Ltd. goods 253,894.16 NO 144,648.00
Sinopharm Holding Purchase of
Bayannur Co., Ltd. goods 234,878.49 NO 667,045.83
Sinopharm Holding Anhui Purchase of
Co., Ltd. goods 180,725.82 NO 2,398,623.06
Taiji Group Purchase of
goods 166,678.24 NO -
Jiangsu Huanghe Purchase of
Pharmaceutical Co., Ltd. goods 162,782.30 NO -
Sichuan Jiangyou Zhongba
Aconiti Science and
Technology Development Purchase of
Co., Ltd. goods 142,201.82 NO -
Sinopharm Holding Hunan
Pharmaceutical Purchase of
Development Co., Ltd. goods 136,860.13 NO 157,222.35
164
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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)
Relat ed party Type of For the six Approved trading quota whet her the For the six months
transaction months ended transaction ended 30 June
30 June 2021 limit is 2020
exceeded
The Fourth Pharmaceutical
Co., Ltd. of Zhonglian Purchase of
Group goods 124,447.86 NO (1,875.00)
Hunan Yaoyou Medicines Purchase of
Co., Ltd. goods 121,513.28 NO -
Sinopharm Holding Shanxi
Mingdikang Medicine Co., Purchase of
Ltd. goods 110,206.77 NO 42,957. 42
Sinopharm Holding Purchase of
Nanping Newforce Co., Ltd goods 105,027.03 NO 122,980.30
Sinopharm Holding Xinye Purchase of
(Hubei) Medicine Co., Ltd. goods 101,222.21 NO 56,646. 03
Sinopharm Holding Purchase of
Changsha Co., Ltd. goods 84,558. 36 NO 1,783,867.44
Taiji Group Zhejiang
Dongfang Pharmaceutical Purchase of
Co., Ltd. goods 79,709. 72 NO -
Sinopharm Holding
Xinjiang Special Drugs Yili Purchase of
Pharmaceutical Co., Ltd. goods 68,861. 47 NO -
Sinopharm Holding Purchase of
Kunming Co., Ltd. goods 58,396. 46 8,910,000,000.00 NO -
Taiji Group Sichuan
Mianyang Pharmaceutical Purchase of
Co., Ltd. goods 48,842. 47 NO -
Sinopharm Holding Purchase of
Changde Co., Ltd. goods 48,318. 59 NO -
Sinopharm Holding Sanyi Purchase of
Medicine (Wuhu) Co., Ltd. goods 37,095. 80 NO 46,347. 42
Sinopharm Shyndec Purchase of
goods 36,180. 53 NO 9,493,936.28
Sinopharm Holding Ordos Purchase of
Co., Ltd. goods 35,001. 77 NO -
Sinopharm Inner Mongolia
Medical Equipment Co., Purchase of
Ltd. goods 35,000. 88 NO -
Sinopharm Jingfang
(Anhui) Pharmaceutical Purchase of
Co., Ltd. goods 20,306. 19 NO 766,468.52
Taiji Group Sichuan
Nanc hong Pharmaceutical Purchase of
Co., Ltd. goods 18,751. 86 NO -
Sinopharm Holding Dalian Purchase of
Hecheng Co., Ltd. goods 17,404. 47 NO 48,749. 02
165
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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)
Relat ed party Type of For the six Approved trading quota whet her the For the six months
transaction months ended transaction ended 30 June
30 June 2021 limit is 2020
exceeded
Sinopharm Holding Hainan Purchase of
Co., Ltd. goods 13,042. 99 NO 111,398.23
Sinopharm Medical
Instrument (Huizhou) Co., Purchase of
Ltd. goods 10,618. 77 NO -
Sinopharm Group Medicine Purchase of
Logistic Co., Ltd. goods 9,450.54 NO 11,161. 53
Sinopharm Holding
Changsha Gaoxin Purchase of
Medicine Co., Ltd. goods 9,380.53 NO 32,964. 60
Sinopharm Holding Nanjing
Wende Pharmaceutical Purchase of
Co.,Ltd. goods 9,026.54 NO 9,026.54
Sinopharm Group Linfen Purchase of
Co., Ltd. goods 8,257.25 NO 107,014.36
Sinopharm Device
(Guangdong) Medical Purchase of
Technology Co., Ltd. goods 6,578.33 NO 52,672. 56
Sinopharm Liaoning
Medical Equipment Co., Purchase of
Ltd. goods 4,424.78 NO -
8,910,000,000.00
Sinopharm Holding Purchase of
Zhangzhou Co., Ltd. goods 2,835.40 NO 73,228. 32
Sinopharm Holding
Yangzhou Biological Purchase of
Products Co., Ltd. goods 1,850.00 NO 49,400. 00
Suzhou Laishi Transfusion Purchase of
Equipment goods 1,019.47 NO -
Naton Biotechnology Purchase of
(Beijing) Co., Ltd. goods 63.72 NO -
Sinopharm Shenzhen Purchase of
Medicine Device Co., Ltd. goods - NO 4,689,458.43
Shanghai Zeno Purchase of
Biotechnology Co., Ltd. goods - NO 4,424,779.00
Sinopharm Holding Hubei Purchase of
Guoda Pharmacy Co., Ltd. goods - NO 3,749,173.52
China National Scientific
Instruments & Materials Purchase of
I&E Shenzhen Co., Ltd. goods - NO 3,716,814.16
Sinopharm Holding Purchase of
Chongqing Co., Ltd. goods - NO 3,106,188.00
Sinopharm Medical Purchase of
Instrument Hainan Co., Ltd. goods - NO 2,109,734.51
166
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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)
Relat ed party Type of For the six Approved trading quota whet her the For the six months
transaction months ended transaction ended 30 June
30 June 2021 limit is 2020
exceeded
Sinopharm Holding Wuhan
Hongshen Medicine Co., Purchase of
Ltd. goods - NO 1,415,929.21
Sinopharm (Dalian) Purchase of
Medicial Device Co., Ltd. goods - NO 928,255.76
Sinopharm Holding
Chuangke Yuanzhe
Medicial Technology Purchase of
(Shanghai) Co., Ltd. goods - NO 672,566.40
Sinopharm Holding Linyi Purchase of
Medicial Device Co., Ltd. goods - NO 633,769.93
Sinopharm Hebei Medical Purchase of
Instrument Co., Ltd. goods - NO 607,424.77
Sinopharm Guangdong
Global Pharmaceutical Co., Purchase of
Ltd. goods - NO 581,499.90
Liaoning Pilot Free Trade
Zone China Medical Device Purchase of
Technology Co., Ltd. goods - NO 260,176.99
Chengdu List Purchase of
Pharmaceutical Co.,Ltd. goods - NO 204,849.56
8,910,000,000.00
Fujian Chentian Jinling Purchase of
Pharmaceutical Co., Ltd. goods - NO 138,669.72
Sinopharm Holding Shanxi Purchase of
Jinzhong Co., Ltd. goods - NO 119,470.72
Sinopharm Holding Shanxi Purchase of
Runhe Medicine Co., Ltd. goods - NO 93,171. 55
Sinopharm Group Med- Purchase of
Tech Co., Ltd. goods - NO 92,920. 35
Sinopharm Dezhong
(Foshan) Pharmaceutical Purchase of
Co., Ltd. goods - NO 53,734. 51
Sinopharm Holding Rizhao Purchase of
Co., Ltd. goods - NO 34,498. 69
Sinopharm Holding Jiangxi Purchase of
Co., Ltd. goods - NO 28,244. 60
Sinopharm Holding
Chengdu Pharmac eutical Purchase of
Co., Ltd. goods - NO 11,307. 62
Sinopharm Holding Shiyan Purchase of
Co., Ltd. goods - NO 2,088.50
Sinopharm Holding Purchase of
Ulanqab Co., Ltd. goods - NO 2,043.91
167
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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)
Relat ed party Type of For the six Approved trading quota whet her the For the six months
transaction months ended transaction ended 30 June
30 June 2021 limit is 2020
exceeded
Sinopharm Holding Shanxi Purchase of
Jincheng Co., Ltd. goods - NO 171.81
Sinopharm Holding Purchase of
Lianyungang Co., Ltd. goods - NO (478.47)
Chongqing Haisiman Purchase of
Pharmaceutical Co., Ltd. goods - NO (3,514.34)
SINO-TCM Shanghai
Medicine&Medicinal Purchase of
Materials Co., Ltd. goods - NO (10,888.69)
Sinopharm Holding
Changzhou Medical Purchase of
Logistics Center Co., Ltd. goods - NO (191,787.19)
8,910,000,000.00
Sinopharm Holding Baotou Purchase of
Co., Ltd. goods (88.50) NO 126,066.66
Sinopharm Group
Shanghai Medicine Device Purchase of
Co., Ltd. goods (209.96) NO 308,584.08
Sinopharm Holding Dezhou Purchase of
Co., Ltd. goods (223.18) NO 108,484.59
Sinopharm Holding Taizhou Purchase of
Co., Ltd. goods (350.45) NO 81,224. 26
China Medical Equipment Purchase of
Shandong Co., Ltd. goods (2,177.00) NO 14,427. 65
Sinopharm Holding Purchase of
Guang’an Co., Ltd. goods (6,594.69) NO -
Storage and
transport
cost,
information
Sinopharm Group Medicine system
Logistic Co., Ltd. access fee 9,631,686.33 NO 8,264,849.06
Cons ulting
Sinopharm Group service fee 2,269,577.44 NO -
Sinopharm Huixinqinyuan
(Beijing) Technology Cons ulting
Development Co., Ltd. service fee 658,831.86 80,000,000.00 NO -
Storage and
transport
Sinopharm Holding cost;
Zhihuiminsheng (Tianjin) Cons ulting
Pharmaceutical Co., Ltd. service fee 518,400.00 NO -
Cons ulting
service fee,
Shanghai Tongyu information
Information Technology system
Co., Ltd. access fee 476,169.82 NO 187,905.67
168
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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)
Relat ed party Type of For the six Approved trading quota whet her the For the six months
transaction months ended transaction ended 30 June
30 June 2021 limit is 2020
exceeded
Equipment
Sinopharm Foreign maintenance
Trade(B eijing) Co., Ltd. fee 141,592.92 NO -
Sinopharm Holding Henan Cons ulting
Co., Ltd. service fee 106,046.95 NO -
China National Equipment
Pharmaceutical Foreign maintenance
Trade Corporation fee 68,938. 05 NO -
Guorun Medical Supply Information
Chain Service (Shanghai) system
Co., Ltd. access fee 49,056. 60 NO 12,264. 15
Sinopharm Group
Guangdong Medicine Operation
Device Co., Ltd. service fee 34,651. 32 NO -
Xinjiang Bait ong Property
Service Co., Ltd. Property fee 1,150.44 NO -
80,000,000.00
Sinopharm Holding Jilin Cons ulting
Co., Ltd. service fee 109.23 NO -
Sinopharm Health Online Cons ulting
Co., Ltd. service fee - NO 7,008,590.59
Shanghai Beiyi Guoda Cons ulting
Pharmaceutical Co. Ltd. service fee - NO 1,492,677.11
Storage and
transport
cost;
Sinopharm Pharmaceutical Cons ulting
Logistics Co., Ltd. service fee - NO 93,635. 83
Storage and
transport
cost;
Sinopharm Logistics Beijing Cons ulting
Co., Ltd. service fee - NO 54,060. 78
169
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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
For the six months For the six months
Relat ed Party Type of transaction
ended 30 June 2021 ended 30 June 2020
Sinopharm Group Sale of goods 139,234,971.54 110,426,213.05
Foshan Chancheng Pharmaceutical Co., Ltd. Sale of goods 68,883, 280. 00 49,079, 098. 20
Sinopharm Holding Hainan Co., Ltd. Sale of goods 56,647, 385. 55 60,158, 578. 46
Shanghai Beiyi Guoda Pharmaceutical Co. Ltd. Sale of goods 51,633, 689. 10 61,896, 587. 65
Sinopharm Lerentang Medicine Co., Ltd. Sale of goods 30,299, 085. 61 22,566, 166. 73
Sinopharm Holding Beijing Co., Ltd. Sale of goods 20,211, 375. 98 12,909, 717. 52
Sinopharm Holding Hainan Hongyi Co., Ltd. Sale of goods 19,732, 331. 43 13,367, 342. 74
Sinopharm Holding Wenz hou Co., Ltd. Sale of goods 16,294, 606. 34 14,794, 703. 17
Sinopharm Lingyun Biopharmaceutical (S hanghai)
Co., Ltd. Sale of goods 15,169, 815. 63 10,455, 648. 05
Sinopharm Holding Shandong Co., Ltd. Sale of goods 14,001, 108. 69 6,925,017.46
Handan Sinopharm Lerentang Pharmacy Chain
Co., Ltd. Sale of goods 13,521, 643. 14 1,075,458.43
Shenzhen Hengsheng Hospital Sale of goods 13,376, 757. 25 10,629, 421. 43
Sinopharm Holding Henan Co., Ltd. Sale of goods 12,870, 576. 33 9,642,957.94
Foshan Chancheng Cent ral Hospital Co., Ltd. Sale of goods 12,092, 528. 87 7,665,327.44
Beijing Golden Elephant Fosun Pharmaceutical
Co., Ltd. Sale of goods 10,239, 238. 49 10,679, 779. 77
Sinopharm holdings Beijing Huahong Co., Ltd. Sale of goods 10,138, 011. 45 5,763,714.05
Sinopharm Group Xinjiang Special Drugs National
Pharmaceutical Co., Ltd. Sale of goods 8,887,736.05 1,587,426.88
Sinopharm Holding Nantong Co., Ltd. Sale of goods 8,373,035.18 7,861,952.62
Sinopharm Holding Jinzhou Co., Ltd. Sale of goods 7,182,756.92 72,477. 87
Sinopharm Holding Sub Mark eting Center Co., Ltd. Sale of goods 6,713,774.05 5,584,808.87
Sinopharm Holding Donghong Medical (S hanghai)
Co., Ltd. Sale of goods 6,709,036.12 784,084.53
Sinopharm Holding Shanxi Co., Ltd. Sale of goods 6,114,523.08 2,812,873.37
170
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 (Continued)
For the six months For the six months
Relat ed Party Type of transaction
ended 30 June 2021 ended 30 June 2020
Sinopharm Group (Tianjin) Eastern Bokang
Pharmaceutical Co., Ltd. Sale of goods 5,801,373.68 4,803,387.32
Sinopharm Holding Hubei Co., Ltd. Sale of goods 5,725,139.41 18,913, 611. 09
Sinopharm Holding Yangzhou Co., Ltd. Sale of goods 5,243,275.79 3,233,686.62
Sinopharm Lerentang (Langfang) Pharmaceutical
Trade Co., Ltd. Sale of goods 4,540,492.31 18,101. 77
Foshan Chanyixing Medicine Development Co Ltd. Sale of goods 4,356,266.82 3,705,867.85
Sinopharm Lerentang Tangshan Medicine Co., Ltd. Sale of goods 3,561,044.84 661,960.55
Sinopharm Lerentang Xingtai Pharmaceutical Co.,
Ltd. Sale of goods 3,311,038.77 -
Sinopharm Lerentang Hebei Medical Instrument
Trade Co., Ltd. Sale of goods 3,187,482.23 492,572.13
Sinopharm Holding Shanghai Lik ang
Pharmaceutical Co., Ltd. Sale of goods 2,986,283.70 3,680,499.78
Sinopharm Holding Jilin Co., Ltd. Sale of goods 2,942,030.47 1,599,917.79
Sinopharm Holding Tianjin Co., Ltd. Sale of goods 2,941,625.35 1,822,107.93
Shanghai Merro Pharmaceutical Co., Ltd. Sale of goods 2,858,507.18 3,312,398.44
Sinopharm Lerentang Qinhuangdao
Pharmaceutical Trading Co., Ltd Sale of goods 2,637,455.35 16,467. 26
Sinopharm Holding Shanxi Co., Ltd. Sale of goods 2,569,451.46 3,053,010.35
Sinopharm Holding Guizhou Medical Device Co.,
Ltd. Sale of goods 2,506,974.27 255,175.71
Sinopharm Lerentang Baoding Trading Co., Ltd. Sale of goods 2,386,692.15 -
Sinopharm Lerentang Baoding Hongkang
Pharmaceutical Chain Co., Ltd. Sale of goods 2,371,766.36 1,716,599.10
Hutchison Whampoa Sinopharm Pharmaceuticals
(Shanghai) Co., Ltd. Sale of goods 2,280,410.62 1,724,205.31
Sinopharm Sichuan Pharmaceutical Co., Ltd. Sale of goods 2,270,896.31 5,574,204.53
Sinopharm Holding Yunnan Co., Ltd. Sale of goods 2,197,412.02 1,875,892.22
Sinopharm Holding Hunan Co., Ltd. Sale of goods 2,170,058.36 1,594,378.72
171
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 (Continued)
For the six months For the six months
Relat ed Party Type of transaction
ended 30 June 2021 ended 30 June 2020
Sinopharm Holding Shanxi Co., Ltd. Sale of goods 1,759,444.55 190,595.28
Sinopharm Holding Xinjiang Special Drugs
Western Pharmaceutical Co., Ltd. Sale of goods 1,732,284.48 2,349,651.28
Sinopharm Holding Anhui Co., Ltd. Sale of goods 1,714,909.94 3,490,356.70
Sinopharm Group Southwest Medicine Co., Ltd. Sale of goods 1,686,783.92 1,891,076.22
Sinopharm Lerentang Hengshui Medicine Co., Ltd. Sale of goods 1,541,096.39 158,792.13
Sinopharm Holding Dalian Co., Ltd. Sale of goods 1,505,999.43 1,320,364.57
Shanghai Guoda Lingyun Pharmacy Co., Ltd. Sale of goods 1,444,193.49 786,887.13
Sinopharm Holding Anshan Co., Ltd. Sale of goods 1,410,135.08 -
China National Medicines Co., Ltd. Sale of goods 1,269,341.13 2,178,096.79
Sinopharm Holding Jiangxi Co., Ltd. Sale of goods 1,230,819.17 499,633.43
Sinopharm Holding (Hubei) Hankou Pharmacy Co.,
Ltd. Sale of goods 1,164,258.24 -
Sinopharm Holding Anhui Pharmaceutical Co., Ltd. Sale of goods 1,152,047.45 693,361.90
Sinopharm Holding Xuzhou Co., Ltd. Sale of goods 1,108,631.54 1,271,612.79
Shanghai Liyi Pharmacy Co.,Ltd Sale of goods 1,102,980.44 690,837.84
Sinopharm Holding Shangqiu Co., Ltd. Sale of goods 1,039,646.02 -
Sinopharm Holding Fujian Co., Ltd. Sale of goods 992,070.43 51,109, 674. 50
Sinopharm Holding Gansu Co., Ltd. Sale of goods 863,189.43 662,808.94
Sinopharm Holding Guizhou Co., Ltd. Sale of goods 836,038.24 749,381.57
Sinopharm Holding Ningxia Co., Ltd. Sale of goods 766,385.82 607,397.50
Sinopharm Holding Chongqing Taimin
Pharmaceutical Co., Ltd. Sale of goods 675,555.69 174,838.95
Sinopharm Holding Wuxi Co., Ltd. Sale of goods 651,490.72 545,114.34
Sinopharm Holding Anshun Co., Ltd. Sale of goods 637,336.24 626,960.18
Sinopharm Holding Tongren Co., Ltd. Sale of goods 608,054.18 347,824.70
172
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 (Continued)
For the six months For the six months
Relat ed Party Type of transaction
ended 30 June 2021 ended 30 June 2020
Sinopharm Holding Lerentang Hebei
Pharmaceutical Co., Ltd. Sale of goods 585,023.94 477,391.38
Sinopharm Holding Guizhou (Zunyi) Medical
Equiment Co., Ltd. Sale of goods 551,323.97 722,382.88
Sinopharm Holding Jiangsu Co., Ltd. Sale of goods 526,573.72 578,180.26
Sinopharm Holding Zunyi Co., Ltd. Sale of goods 497,385.52 1,078,617.62
Sinopharm Holding Wuhu Co., Ltd. Sale of goods 483,333.34 421,019.02
Sinopharm Lerentang Cangzhou Medicine Co.,
Ltd. Sale of goods 441,107.97 27,143. 36
Sinopharm Holding Dalian Hecheng Co., Ltd. Sale of goods 440,610.07 39,122. 93
Shenzhen Chindex Medical Beauty Clinic Sale of goods 388,613.67 97,277. 83
Sinopharm Holding Shanghai Biomedicine Co.,
Ltd. Sale of goods 367,752.21 282,212.28
Shanghai Shengxin Pharmacy Co., Ltd. Sale of goods 352,446.68 -
Sinopharm Lerentang Qinhuangdao Medicine Co.,
Ltd. Sale of goods 352,417.43 107,256.67
Sinopharm Lerentang Tangshan Medicine Co., Ltd. Sale of goods 330,239.40 -
Sinopharm Baise Device Co., Ltd. Sale of goods 328,663.72 102,654.87
Sinopharm Holding Shanxi Pharmacy Co., Ltd. Sale of goods 274,021.65 -
Sinopharm Holding Qinghai Co., Ltd. Sale of goods 262,068.06 253,282.77
Jiangmen Xinhui District Jianfeng Pharmac eutical
Co., Ltd. Sale of goods 253,856.26 -
Sinopharm Holding Honghe Co., Ltd. Sale of goods 233,627.39 411,978.99
Sinopharm Lerentang Xingtai Medicine Co., Ltd. Sale of goods 224,344.53 178,966.16
Sinopharm Holding Jiaozuo Co., Ltd. Sale of goods 220,106.10 183,421.75
Sinopharm Holding Anhui Pharmaceutical Chain
Co., Ltd. Sale of goods 190,577.18 -
Sinopharm Holding Chuxiong Co., Ltd. Sale of goods 185,415.94 83,585. 92
Sinopharm Holding Nanjing Wende
Pharmaceutical Co.,Ltd. Sale of goods 175,046.02 79,064. 60
173
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 (Continued)
For the six months For the six months
Relat ed Party Type of transaction
ended 30 June 2021 ended 30 June 2020
Guoyao Lerent ang Shijiazhuang Medical
Management Co., Ltd. Sale of goods 169,490.24 55,743. 09
Sinopharm Holding Tianjin Nort h Medicine Co.,
Ltd. Sale of goods 165,577.13 237,608.84
Sinopharm Holding Chongqing Co., Ltd. Sale of goods 157,390.71 98,396. 45
Sinopharm Holding Inner Mongolia Co., Ltd. Sale of goods 150,193.67 159,586.47
Sinopharm Lerentang Cangzhou Pharmaceutical
Trading Co., Ltd. Sale of goods 143,767.71 -
Sinopharm Lerentang Shijiaz huang Medicine Co.,
Ltd. Sale of goods 135,104.03 8,730.28
Sinopharm Guangdong Medical Examination Co.,
Ltd. Sale of goods 134,910.79 163,965.18
Foshan Chengnan Fengliaoxing Medicial Hospital
Co., Ltd. Sale of goods 134,895.13 87,322. 13
Sinopharm Holding Benxi Co., Ltd. Sale of goods 134,235.92 -
Sinopharm Lerentang Chengde Medicine Co., Ltd. Sale of goods 129,707.75 63,193. 63
Sinopharm Fengliaoxing Medical Hospital Co., Ltd. Sale of goods 123,210.38 75,159. 98
Sinopharm Holding Pingdingshan Co., Ltd. Sale of goods 121,061.94 -
Sinopharm Group Guangxi Medical Device Co.,
Ltd. Sale of goods 110,309.74 113,097.35
Sinopharm Lerentang Zhangjiakou Medicine Co.,
Ltd. Sale of goods 107,351.54 -
Sinopharm Advanced (Shanghai) Medical Device
Co., Ltd. Sale of goods 107,011.95 -
Sinopharm Holding Fuzhou Co., Ltd. Sale of goods 93,210. 07 131,345.42
Sinopharm Lerentang Langfang Pharmaceutical
Co., Ltd. Sale of goods 88,799. 03 55,538. 93
Sinopharm Holding Longyan Co., Ltd. Sale of goods 87,410. 63 57,138. 07
Sinopharm Holding Hubei Hongy uan Co., Ltd. Sale of goods 74,265. 48 133,587.47
Sinopharm Medical Instrument Guizhou Qiannan
Co., Ltd. Sale of goods 70,346. 37 16,276. 77
174
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 (Continued)
For the six months For the six months
Relat ed Party Type of transaction
ended 30 June 2021 ended 30 June 2020
Sinopharm Lerentang Handan Medicine Co., Ltd. Sale of goods 69,991. 28 18,101. 77
Sinopharm Holding Wuhan Guoda Pharmacy Co.,
Ltd. Sale of goods 66,101. 95 -
Sinopharm Lerentang Baoding Medicine Co., Ltd. Sale of goods 57,943. 93 32,999. 89
Sinopharm Lerentang Zhangjiakou Medicine Co.,
Ltd. Sale of goods 55,499. 70 84,353. 70
Sinopharm Zhijun Sale of goods 54,493. 27 3,922.08
Sinopharm Group Guangdong Medicine Device
Co., Ltd. Sale of goods 48,348. 50 8,494.51
Sinopharm Holding Professional Pharmacy
(Hainan) Co., Ltd. Sale of goods 40,146. 37 -
Sinopharm Lerentang Healthcare Shijiazhuang
Pharmacy Co., Ltd. Sale of goods 35,758. 14 41,262. 69
Sinopharm Holding Putian Co., Ltd. Sale of goods 26,888. 49 53,777. 00
Sinopharm Holding Yancheng Co., Ltd. Sale of goods 25,340. 97 556,583.59
China National Scientific Instruments & Materials
I&E Shenzhen Co., Ltd. Sale of goods 25,022. 45 11,412. 30
Sinopharm Holding Changzhou Co., Ltd. Sale of goods 21,218. 05 110,397.17
Chongqing Tongjunge Co., Ltd. Sale of goods 19,289. 52 -
Sichuan Taiji Pharmacy Chain Co., Ltd. Sale of goods 18,141. 59 -
Sinopharm Holding Hongrun Medical Business
Service (Shanghai) Co., Ltd. Sale of goods 16,629. 61 5,383.97
Sinopharm Holding Zhuanye Pharmacy
(Dongfang) Co., Ltd. Sale of goods 14,607. 52 8,438.69
Sinopharm Holding Hunan Weian Pharmacy
Medicine Chain Company Limited Sale of goods 13,825. 24 -
Sinopharm Holding Ningde Co., Ltd. Sale of goods 10,083. 19 30,249. 56
Sinopharm Holding Changxing Professional
Pharmacy (Haikou) Co., Ltd. Sale of goods 6,978.32 12,993. 87
Sinopharm Holding Taizhou Co., Ltd. Sale of goods 5,834.87 68,810. 53
175
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 (Continued)
For the six months For the six months
Relat ed Party Type of transaction
ended 30 June 2021 ended 30 June 2020
Sinopharm Holding Pharmacy (Shanghai) Co., Ltd. Sale of goods 4,862.18 -
Sinopharm Group Fengliaoxing Medical Hospital
(Foshan Nanhai) Co., Ltd. Sale of goods 3,939.20 2,261.97
Sinopharm Guanai Yuankang Pharmacy (Haikou)
Co., Ltd. Sale of goods 2,902.65 34,988. 29
Sinopharm Holding Dalian Special Drugs
Pharmaceutical Co., Ltd. Sale of goods 2,831.86 -
Sinopharm Group Shanxi Medical Devices Co.,
Ltd. Sale of goods 2,795.57 -
Sinopharm Holding (S handong) Medicine Device
Co., Ltd. Sale of goods 2,492.03 -
Sinopharm Holding Professional Pharmacy
Songyuan Co., Ltd. Sale of goods 1,231.86 -
Sinopharm Medical Instrument (Jiangmen) Co.,
Ltd. Sale of goods 884.96 -
Sinopharm Holding Shenyang Co., Ltd. Sale of goods 839.65 92,078. 76
Sinopharm Holding Xinyu Co., Ltd. Sale of goods 632.94 -
Lecong Supply and Market Group Shunketang
Medicine Co., Ltd. Sale of goods 58.41 -
Sinopharm Holding Tongliao Co., Ltd. Sale of goods 45.14 -
Sinopharm Holding Suzhou Co., Ltd. Sale of goods 3.54 -
Sinopharm Zhuhai Medical Instrument Co., Ltd. Sale of goods - 7,446,238.57
Chindex International Trading (Shanghai) Co., Ltd. Sale of goods - 3,037,167.60
China Sinopharm International Corporation Sale of goods - 2,988,690.22
Sinopharm Holding Quanzhou Co., Ltd. Sale of goods - 1,628,615.99
Zhijun Pingshan Sale of goods - 297,706.43
Dongyuan Accord Sale of goods - 230,559.29
Yuxi Sinopharm Medicine Co., Ltd. Sale of goods - 226,147.04
Foshan Chancheng District Shiwan Town Sale of goods
Chengnan Community Health Service Center - 207,388.60
176
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 (Continued)
For the six months For the six months
Relat ed Party Type of transaction
ended 30 June 2021 ended 30 June 2020
Sinopharm Hunan Prov. Medical Equipment Co.,
Ltd. Sale of goods - 142,300.88
Fresenius Kabi Huarui Pharmaceuticals Co., Ltd. Sale of goods - 84,955. 75
Sinopharm Holding Qianxi’nan Co., Ltd. Sale of goods - 47,058. 57
Sinopharm Holding Fuzhou Co., Ltd. Sale of goods - 36,927. 44
Guangdong Yifang Pharmaceutical Co., Ltd. Sale of goods - 27,079. 65
Sinopharm Holding Kunming Pharmacy Co., Ltd. Sale of goods - 26,664. 78
Sinopharm Holding Beijing Tianxing Puxin
Biological Medical Co., Ltd. Sale of goods - 25,300. 89
Sinopharm Guanai Jikun Pharmacy (Haikou) Co.,
Ltd. Sale of goods - 17,838. 67
Sinopharm Fengliaoxing (Fos han) Medicines Co.,
Ltd. Sale of goods - 12,682. 56
Sinopharm Lerentang Langfang Medicine Co., Ltd. Sale of goods - 7,323.36
Main Luck Pharmaceutical Sale of goods - 6,610.62
Sinopharm Holding Xiamen Co., Ltd. Sale of goods - 5,889.38
Sinopharm Holding Zhenjiang Co., Ltd. Sale of goods - 5,614.16
Guangdong Jienuo Sale of goods - 2,657.08
Sinopharm Medical Instrument (Hainan) Co., Ltd. Sale of goods - 1,805.31
Sinopharm Holding Guizhou Medicial Chain Co.,
Ltd. Sale of goods - 1,340.53
Sinopharm Holding Shanxi Hejin Pharmaceutical
Co., Ltd. Sale of goods - 1,187.61
Sinopharm Holding Ulanqab Co., Ltd. Sale of goods - (555.14)
Sinopharm Holding Jilin Chain Store Co., Ltd. Sale of goods - (16,556.17)
Sinopharm Group Fengliaoxing Pharmacy
(Foshan) Co., Ltd. Sale of goods - (26,464.91)
Sinopharm Holding Chengdu Co., Ltd. Sale of goods (20,800.88) 238,592.93
177
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 (Continued)
For the six months For the six months
Relat ed Party Type of transaction
ended 30 June 2021 ended 30 June 2020
Transport and storage
Sinopharm Group Medicine Logistic Co., Ltd. income 4,729,519.50 3,176,727.67
Sublease income, transport
China National Medicines Co., Ltd. and storage inc ome 1,658,616.64 3,116,205.52
Sublease income, canteen
Sinopharm Zhijun income 1,299,722.86 1,250,273.36
Sinopharm Guangdong Medicine Device
Supply Chain Co., Ltd. Cons ulting service income 498,556.31 82,325. 73
Sinopharm Holding Sub Mark eting Center
Co., Ltd. Cons ulting service income 404,513.64 1,253,573.97
Transport and storage
Guangdong Jienuo income 252,229.35 -
Zhijun Trade Sublease income 157,142.88 285,714.30
Sinopharm Medical Instrument Guangxi
Medical Technology Co., Ltd. SPD service income 135,813.29 -
Sinopharm Baise Device Co., Ltd. SPD service income 104,923.15 -
Sinopharm Holding Hunan Weian Pharmacy
Medicine Chain Company Limited Sublease income 102,102.49 97,240. 50
Sinopharm Medical Instrument (Fos han) Co.,
Ltd. SPD service income 89,941. 38 -
Transport and storage
Zhijun Pingshan income 83,186. 24 129,797.90
Sinopharm Group Southwest Medicine Co., Transport and storage
Ltd. income 79,480. 00 -
Sinopharm Holding Shanxi Zhongjian
Medical Device Chain Co., Lt Business promotion income 51,415. 10 -
Sinopharm Holding Lerentang Hebei
Pharmaceutical Co., Ltd. Business promotion income 50,471. 71 -
Sinopharm Holding Shanxi Co., Ltd. Business promotion income 31,886. 79 1,886.79
178
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 (Continued)
For the six months For the six months
Relat ed Party Type of transaction
ended 30 June 2021 ended 30 June 2020
Transport and storage
Sinopharm Holding Jilin Co., Ltd. income 26,000. 00 -
Sinopharm Group Guangxi Medical Device
Co., Ltd. SPD service income 25,173. 94 -
Sinopharm Device (Guangdong) Medical
Technology Co., Ltd. SPD service income 19,777. 54 -
Sinopharm Holding Shanxi Dajiuzhou
Medicine Co., Ltd. Business promotion income 15,377. 36 -
Sinopharm Holding Shenyang Co., Ltd. Cons ulting service income 2,452.83 -
Sinopharm Group Guangdong Medicine
Device Co., Ltd. Cons ulting service income 1,523.21 -
Sinopharm Medical Instrument (Huizhou)
Co., Ltd. Cons ulting service income 173.96 -
Transport and storage
Sinopharm Holding Hubei Co., Ltd. income - 81,773. 22
Sinopharm Huixinqinyuan (Beijing)
Technology Development Co., Ltd. Cons ulting service income - 17,169. 81
China National Scientific Instruments &
Materials I&E Shenzhen Co., Ltd. Cons ulting service income - 2.64
179
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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
(a) As the lessor
Income from leases Income from leases
Type of assets
For the six months For the six months
under leases
ended 30 June 2021 ended 30 June 2020
Sinopharm Zhijun Building 957,142.86 957,142.86
Zhijun Trade Building 157,142.88 285,714.30
Sinopharm Holding Hunan Weian Pharmacy
Medicine Chain Company Limited Building 102,102.49 97,240.50
Beijing Golden Elephant Fosun Pharmaceutical
Co., Ltd. Building 66,666.66 -
China National Medicines Co., Ltd. Building 52,554.86 52,554.86
(b) As the lessee
Expense from leases Expense from leases
Type of assets
For the six months For the six months
under leases
ended 30 June 2021 ended 30 June 2020
Hunan Mins hengtang Biotechnology Co., Ltd. Building 7,317,209.70 -
Sinopharm Group Building 5,406,057.00 -
Sinopharm Group Medicine Logistic Co., Ltd. Equipment 3,749,999.99 3,750,000.00
Sinopharm Group Medicine Logistic Co., Ltd. Building 3,539,999.99 3,540,000.00
Beijing Golden Elephant Fosun Pharmaceutical
Co., Ltd. Building 5,536,320.75 5,296,226.44
Lerentang Investment Group Co., Ltd. Building 4,361,467.88 3,224,047.60
Shenyang Pharmaceutical Co., Ltd. Building 3,543,964.78 3,571,428.61
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co., Ltd. Building 2,748,595.47 3,786,173.34
Sinopharm Holding Yangzhou Co., Ltd. Building 1,866,023.82 -
Nanjing Yuanguang Trading Co., Ltd. Building 1,077,247.29 1,923,809.52
Guangdong Jiyuantang Development Co., Ltd. Building 921,180.26 978,504.36
Sinopharm Holding Shanxi Jincheng Co., Ltd. Building 600,000.00 -
Sinopharm Group Shanghai Co., Ltd. Building 586,365.00 2,031,905.96
Shaoguan Wujiang District Muyang Medicine
Information Consultant Co., Ltd. Building 508,827.42 478,984.74
Xishuangbanna Disheng Pharmaceutical Co.,
Ltd. Building 405,799.98 -
Sinopharm Holding (China) Financing Lease
Co., Ltd. Building 360,000.00 -
Taishan Xiangranhui Trade Co., Ltd. Equipment 462,670.01 389,625.00
180
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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)
(b) As the lessee(Continued)
Expense from leases Expense from leases
Type of assets
For the six months For the six months
under leases
ended 30 June 2021 ended 30 June 2020
Zhang Yechuan Building 333,046.64 -
Wang Yang Building 312,305.70 295,868.56
Li Fang Building 269,047.62 254,761.90
Sinopharm Holding Beijing Co., Ltd. Building 272,400.00 -
Guangxi Yifang Tianjiang Pharmaceutical Co., Building
257,389.00 -
Ltd.
Beijing Sinopharm Tianyuan Real Estate & Building
242,857.14 181,428.58
Property Management Co., Ltd.
Sinopharm Holding Xinjiang Special Drugs Building
216,191.74 -
Kashgar Pharmaceutical Co., Ltd.
Sinopharm Holding Xinjiang Xint e Karamay Building
215,968.52 -
Pharmaceutical Co., Ltd.
Gu Jinhua Building 187,740.00 178,800.00
Sinopharm Xinjiang Pharmaceutical Co., Ltd. Building 177,233.88 -
Beijing Huafang Investment Co., Ltd. Building 119,004.08 120,934.28
Southeast (Quanzhou) Biotechnology Building
118,025.28 -
Pharmaceutical Co., Ltd.
Gu Haiqun Building 104,099.04 99,143.81
Shenzhen Jiufeng Investment Co., Ltd. Building 92,279.59 -
Zhang Haiyan Building 85,714.26 -
Zhijun Pingshan Building 50,917.44 -
Zhang Guitang Building 49,714.26
Taishan Qunkang Pharmacy Co., Ltd. Equipment 11,258.41 -
Sinopharm Holding (China) Financing Lease
Building - 2,971,727.14
Co., Ltd.
Pu'er Songmao Medicine Group Co., Ltd. Building - 1,984,761.90
Sinopharm Holding Rizhao Co., Ltd. Building - 436,785.87
Hangzhou Xihu District Commercial Co., Ltd. Building - 146,438.10
China National Medicines Co., Ltd. Building - 142,857.14
Taishan Qunkang Pharmacy Co., Ltd. Building - 70,850.46
181
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 - Financing
Relat ed Party Amount Inception Date Maturity Date Note
Borrow from
Sinopharm Group Finance Co., Ltd. 71,629,923.57 25 February 2021 25 August 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 54,707,698.10 25 February 2021 25 May 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 94,787,926.58 6 May 2021 6 August 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 50,462,024.83 17 May 2021 17 August 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 48,621,724.23 26 February 2021 26 May 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 47,123,809.11 30 April 2021 30 October 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 30,698,840.96 29 January 2021 29 July 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 13,237,656.55 29 January 2021 29 April 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 41,035,658.40 5 February 2021 5 May 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 36,462,587.66 10 May 2021 30 June 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 19,867,578.99 19 May 2021 19 August 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 15,663,049.52 19 May 2021 19 September 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 34,614,169.13 30 June 2021 30 December 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 33,675,870.87 26 May 2021 26 August 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 26,570,964.00 10 February 2021 10 May 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 19,998,663.88 20 May 2021 20 August 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 5,650,549.88 20 May 2021 27 August 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 25,471,272.13 31 May 2021 31 August 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 25,123,710.36 3 June 2021 3 September 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 24,991,580.40 23 June 2021 23 September 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 24,272,643.76 8 February 2021 8 May 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 22,224,875.91 28 January 2021 28 April 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 20,712,214.94 7 May 2021 7 August 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 20,341,265.01 4 February 2021 4 May 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 19,215,568.92 24 February 2021 24 May 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 18,756,773.39 22 February 2021 22 May 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 17,331,983.85 15 April 2021 30 June 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 9,569,134.14 17 June 2021 29 October 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 6,424,446.52 17 June 2021 8 October 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 15,853,329.24 25 May 2021 27 August 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 12,201,711.11 1 April 2021 30 June 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 11,497,531.01 12 May 2021 12 August 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 8,830,838.40 09 June 2021 08 October 2021 Short-term borrowings
182
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 - Financing (Continued)
Relat ed Party Amount Inception Date Maturity Date Note
Borrow from
Sinopharm Group Finance Co., Ltd. 8,222,169.28 7 February 2021 7 May 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 5,876,451.19 27 April 2021 30 June 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 5,042,535.17 25 June 2021 25 December 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 4,283,314.86 10 June 2021 10 September 2021 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 4,060,815.23 18 June 2021 26 October 2021 Short-term borrowings
Discount on bank
Sinopharm Group Finance Co., Ltd. 44,296,134.90 20 January 2021 29 April 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 36,495,375.70 20 January 2021 29 Marc h 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 20,957,120.78 20 January 2021 5 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 13,865,920.44 20 January 2021 23 February 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 12,428,990.00 20 January 2021 17 May 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 10,882,062.53 20 January 2021 23 Marc h 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 10,214,229.97 20 January 2021 24 Marc h 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 10,000,000.00 20 January 2021 6 May 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 9,565,723.90 20 January 2021 30 Marc h 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 7,799,879.19 20 January 2021 7 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 7,590,732.63 20 January 2021 16 Marc h 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 7,042,747.95 20 January 2021 7 April 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 6,537,002.78 20 January 2021 12 February 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 6,026,702.20 20 January 2021 14 July 2021 acceptance bill
183
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 - Financing (Continued)
Relat ed Party Amount Inception Date Maturity Date Note
Borrow from
Discount on bank
Sinopharm Group Finance Co., Ltd. 4,926,793.36 20 January 2021 26 February 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 4,907,195.62 20 January 2021 30 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 4,506,000.00 20 January 2021 27 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 3,888,241.63 20 January 2021 25 February 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 3,398,007.79 20 January 2021 30 September 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 3,058,953.56 20 January 2021 28 Marc h 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,740,000.00 20 January 2021 3 April 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,396,451.40 20 January 2021 27 February 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,200,000.00 20 January 2021 28 April 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,000,000.00 20 January 2021 6 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,822,498.07 20 January 2021 31 Marc h 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,448,834.11 20 January 2021 23 April 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,157,784.94 20 January 2021 30 April 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,108,342.37 20 January 2021 14 April 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,017,440.00 20 January 2021 4 March 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,000,000.00 20 January 2021 9 February 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 54,801,891.65 13 January 2021 28 May 2021 acceptance bill
184
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 - Financing (Continued)
Relat ed Party Amount Inception Date Maturity Date Note
Borrow from
Discount on bank
Sinopharm Group Finance Co., Ltd. 38,986,447.03 13 January 2021 30 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 30,000,000.00 13 January 2021 27 August 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 22,265,381.78 13 January 2021 23 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 19,674,402.16 13 January 2021 25 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 6,835,167.48 13 January 2021 29 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 4,783,483.59 13 January 2021 21 Marc h 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 4,519,239.80 13 January 2021 19 November 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 4,471,900.80 13 January 2021 11 May 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 4,164,873.99 13 January 2021 5 May 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 3,858,045.62 13 January 2021 8 September 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,000,000.00 13 January 2021 28 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,523,993.34 13 January 2021 7 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,500,000.00 13 January 2021 19 May 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,292,152.37 13 January 2021 12 August 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 18,680,231.59 17 May 2021 26 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 15,883,376.88 17 May 2021 27 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 14,286,605.28 17 May 2021 28 July 2021 acceptance bill
185
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 - Financing (Continued)
Relat ed Party Amount Inception Date Maturity Date Note
Borrow from
Discount on bank
Sinopharm Group Finance Co., Ltd. 13,480,000.00 17 May 2021 25 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 6,796,478.52 17 May 2021 10 August 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 6,273,537.35 17 May 2021 30 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 3,378,924.20 17 May 2021 30 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,960,609.75 17 May 2021 23 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,703,388.49 17 May 2021 22 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,595,598.82 17 May 2021 29 October 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,182,401.59 17 May 2021 3 August 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,008,800.00 17 May 2021 11 November 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,700,944.91 17 May 2021 29 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,488,466.57 17 May 2021 7 August 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,361,657.30 17 May 2021 8 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,038,005.12 17 May 2021 10 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,035,276.72 17 May 2021 2 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 997,255.88 17 May 2021 16 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 616,725.82 17 May 2021 22 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 561,672.80 17 May 2021 14 July 2021 acceptance bill
186
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 - Financing (Continued)
Relat ed Party Amount Inception Date Maturity Date Note
Borrow from
Discount on bank
Sinopharm Group Finance Co., Ltd. 10,459,326.96 9 February 2021 25 April 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 9,152,110.07 9 February 2021 27 April 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 7,677,033.25 9 February 2021 29 April 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 6,880,000.00 9 February 2021 26 April 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 3,659,793.42 9 February 2021 28 Marc h 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 3,000,000.00 9 February 2021 22 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,262,169.90 9 February 2021 24 Marc h 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,168,433.40 9 February 2021 30 April 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,000,000.00 9 February 2021 21 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,000,000.00 9 February 2021 20 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,958,612.59 9 February 2021 22 April 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,741,698.80 9 February 2021 30 Marc h 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,602,467.58 9 February 2021 24 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,065,088.90 9 February 2021 28 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 900,094.07 9 February 2021 25 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 848,393.16 9 February 2021 2 March 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 753,663.52 9 February 2021 4 March 2021 acceptance bill
187
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 - Financing (Continued)
Relat ed Party Amount Inception Date Maturity Date Note
Borrow from
Discount on bank
Sinopharm Group Finance Co., Ltd. 710,000.00 9 February 2021 11 Marc h 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 637,104.40 9 February 2021 25 Marc h 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 564,197.26 9 February 2021 14 April 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 500,000.00 9 February 2021 13 April 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 500,000.00 9 February 2021 16 April 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 25,075,659.76 20 February 2021 25 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 8,060,000.00 20 February 2021 26 April 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 6,309,241.36 20 February 2021 27 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 5,467,954.90 20 February 2021 27 April 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 3,358,800.90 20 February 2021 30 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,873,122.00 20 February 2021 5 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,500,000.00 20 February 2021 28 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 18,000,000.00 22 February 2021 22 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 17,139,076.55 22 February 2021 28 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,013,193.00 22 February 2021 25 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,337,172.57 22 February 2021 24 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,211,874.00 22 February 2021 5 July 2021 acceptance bill
188
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 - Financing (Continued)
Relat ed Party Amount Inception Date Maturity Date Note
Borrow from
Discount on bank
Sinopharm Group Finance Co., Ltd. 14,670,958.74 4 March 2021 22 August 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 5,617,316.39 4 March 2021 29 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 5,321,515.08 4 March 2021 25 May 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 4,147,744.22 4 March 2021 26 August 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 4,044,614.59 4 March 2021 28 August 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,900,000.00 4 March 2021 24 August 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,189,149.82 4 March 2021 23 May 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 371,529.55 4 March 2021 24 May 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 13,008,065.85 5 March 2021 27 November 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 4,593,633.89 5 March 2021 31 May 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 3,274,404.52 5 March 2021 27 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 3,000,000.00 5 March 2021 30 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,275,132.93 5 March 2021 26 August 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,812,568.88 5 March 2021 20 May 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,642,356.60 5 March 2021 18 May 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,638,360.00 5 March 2021 25 January 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,379,729.57 5 March 2021 23 July 2021 acceptance bill
189
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 - Financing (Continued)
Relat ed Party Amount Inception Date Maturity Date Note
Borrow from
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,000,000.00 5 March 2021 26 May 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 883,068.00 5 March 2021 5 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 751,251.30 5 March 2021 9 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 10,000,000.00 20 April 2021 24 September 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 9,055,204.07 20 April 2021 22 August 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 5,819,577.00 20 April 2021 24 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 5,000,000.00 20 April 2021 13 October 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,000,000.00 20 April 2021 30 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,370,000.00 20 April 2021 26 June 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 23,539,009.32 29 April 2021 27 July 2021 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,000,000.00 29 April 2021 21 July 2021 acceptance bill
Jilin Province Yihe Investment
Cons ulting Co., Ltd. 33,000,000.00 22 April 2021 21 April 2022 Short-term borrowings
Jilin Province Yihe Investment
Cons ulting Co., Ltd. 1,500,000.00 22 April 2021 20 August 2021 Short-term borrowings
Jilin Province Yihe Investment
Cons ulting Co., Ltd. 1,500,000.00 22 April 2021 21 October 2021 Short-term borrowings
Jilin Province Yihe Investment
Cons ulting Co., Ltd. 9,900,000.00 14 May 2021 13 May 2022 Short-term borrowings
Jilin Province Yihe Investment
Cons ulting Co., Ltd. 4,500,000.00 30 Marc h 2021 29 Marc h 2022 Short-term borrowings
Jilin Province Yihe Investment
Cons ulting Co., Ltd. 1,500,000.00 30 Marc h 2021 29 September 2021 Short-term borrowings
190
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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 - Financing (Continued)
Relat ed Party Amount Inception Date Maturity Date Note
Borrow from
Jilin Province Yihe Investment
Cons ulting Co., Ltd. 4,500,000.00 21 June 2021 20 June 2022 Short-term borrowings
Jilin Province Yihe Investment
Cons ulting Co., Ltd. 4,500,000.00 19 April 2021 18 June 2021 Short-term borrowings
Jilin Province Yihe Investment
Cons ulting Co., Ltd. 4,500,000.00 15 January 2021 14 April 2022 Short-term borrowings
Jilin Province Yihe Investment
Cons ulting Co., Ltd. 3,750,000.00 18 May 2021 17 May 2022 Short-term borrowings
(4) Related party asset transfer
Relat ed party Types of transaction For the six months For the six months
ended 30 June 2021 ended 30 June 2020
Shanghai Tongyu Information Technology Co., Purchase of an intangible
Ltd. asset 161,045.25 -
Shanghai Tongyu Information Technology Co., Purchase of a construction
Ltd. in progress 103,797.89 -
(5) Remuneration for key management personnel
For the six months For the six months
ended 30 June 2021 ended 30 June 2020
Remuneration for key management personnel 3,729,169.00 4,375,318.00
191
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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
Interest expense
Relat ed party Types of transactions For the six months For the six months
ended 30 June 2021 ended 30 June 2020
Payment of notes discount
Sinopharm Group Finance Co., Ltd. interest 8,036,560.44 3,199,207.88
Payment of finance
Sinopharm Group Finance Co., Ltd. companies loan int erest 5,933,752.64 1,882,094.57
Payment of entrusted loan
Jilin Yihe Investment Consulting Co., Ltd interest 1,289,047.50 -
Payment of entrusted loan
China Pharmaceutical Group Co., Ltd interest 611,679.44 513,884.11
Payment of related parties
Sinopharm Group Finance Co., Ltd. loan interest - 1,311,742.70
Payment of entrusted loan
Sinopharm Holding Co., Ltd interest - 1,035,984.12
Sinopharm Holding (China) Financing Lease Payment of related parties
Co., Ltd. loan interest - 44,007. 71
15,871, 040. 02 7,986,921.09
Interest income
Types of transactions For the six months For the six months
Relat ed party ended 30 June 2021 ended 30 June 2020
Deposit interest
Sinopharm Group Finance Co., Ltd. 190,537.17 17,036.24
190,537.17 17,036. 24
192
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties
(1). Accounts Receivable
30 June 2021 31 December 2020
Item Relat ed Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Accounts receivable Sinopharm Group 59,684, 699. 84 - 51,044, 738. 77 -
Accounts receivable Foshan Chancheng Pharmaceutical
Co., Ltd. 55,897, 388. 44 382,518.20 50,457, 076. 93 331,221.14
Accounts receivable Sinopharm Lerentang Medicine Co.,
Ltd. 17,212, 247. 23 - 11,339, 926. 55 -
Accounts receivable Sinopharm Health Online Co., Ltd. 16,591, 484. 79 - 5,961,622.28 -
Accounts receivable Sinopharm Holding Hainan Co., Ltd. 16,079, 241. 71 - 9,263,188.55 -
Accounts receivable Shanghai Beiyi 12,620, 973. 07 - 26,066, 542. 88 -
Accounts receivable Handan Sinopharm Lerentang
Pharmacy Chain Co., Ltd. 9,594,611.38 - 832,391.06 -
Accounts receivable Sinopharm Holding Beijing Co., Ltd. 8,097,092.09 - 9,329,174.72 -
Accounts receivable Foshan Chancheng Cent ral Hospital
Co., Ltd. 7,747,869.21 50,335. 53 6,199,898.17 38,953. 63
Accounts receivable Sinopharm Holding Hainan Hongyi
Co., Ltd. 6,678,714.03 - 5,347,075.47 -
Accounts receivable Shenzhen Hengsheng Hospital 6,589,721.27 - 5,376,978.17 -
Accounts receivable Sinopharm Lingyun
Biopharmac eutical (Shanghai) Co.,
Ltd. 4,880,354.02 - 4,380,633.00 -
Accounts receivable Sinopharm Lerentang Baoding
Hongkang Pharmaceutical Chain
Co., Ltd. 4,540,010.19 - 3,464,166.50 -
Accounts receivable Beijing Golden Elephant Fosun
Pharmaceutical Co., Ltd. 4,289,053.68 - 4,397,286.71 -
Accounts receivable Sinopharm Holding Henan Co., Ltd. 4,139,688.62 - 2,144,155.36 -
Accounts receivable Sinopharm Holding Wenz hou Co.,
Ltd. 4,048,268.69 - 3,142,596.82 -
Accounts receivable Sinopharm Holding Donghong
Medical (Shanghai) Co., Ltd. 3,834,188.90 - 2,049,971.85 -
Accounts receivable Sinopharm Holdings Beijing Huahong
co., Ltd. 3,673,535.53 - 1,811,083.32 -
Accounts receivable Sinopharm Holding Shandong Co.,
Ltd. 2,831,043.88 - 76,095. 93 -
Accounts receivable Sinopharm Holding Shanxi Co., Ltd. 2,816,264.17 - 771,816.12 -
193
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(1). Accounts Receivable (Continued)
30 June 2021 31 December 2020
Item Relat ed Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Accounts receivable Sinopharm Holding Jilin Co., Ltd. 2,528,223.55 - 208,589.40 -
Accounts receivable Foshan Chanyixing Medicine
Development Co., Ltd. 2,509,939.17 13,136. 36 3,445,722.95 17,975. 48
Accounts receivable Sinopharm Holding Sub Mark eting
Cent er Co., Ltd. 2,432,642.59 - 2,237,094.40 -
Accounts receivable Sinopharm Holding Nantong Co., Ltd. 2,304,018.16 - 62,224. 62 -
Accounts receivable Sinopharm Lerentang Baoding
Trading Co., Ltd. 2,035,819.17 - 1,645,313.00 -
Accounts receivable Sinopharm Group (Tianjin) Eastern
Bokang Pharmaceutical Co., Ltd. 1,997,891.99 - 943,539.89 -
Accounts receivable Sinopharm Lerentang Qinhuangdao
Pharmaceutical Trading Co., Ltd. 1,889,841.32 - 1,067,964.98 -
Accounts receivable Sinopharm Lerentang Tangshan
Medicine Co., Ltd. 1,860,045.69 - 997,312.62 -
Accounts receivable Sinopharm Holding Shanxi Co., Ltd. 1,846,421.01 - 94,929. 87 -
Accounts receivable Sinopharm Holding Hubei Co., Ltd. 1,554,241.15 - 1,252,860.26 -
Accounts receivable Sinopharm Holding Yangzhou Co.,
Ltd. 1,462,063.19 - 1,092,414.55 -
Accounts receivable Sinopharm Lerentang (Langfang)
Pharmaceutical Trade Co., Ltd. 1,401,228.87 - 1,294,279.54 -
Accounts receivable Hutchison Whampoa Sinopharm
Pharmaceuticals (Shanghai) Co., Ltd. 1,348,814.00 - 1,814,506.00 -
Accounts receivable Sinopharm Holding Dalian Co., Ltd. 1,183,889.64 - 657,906.20 -
Accounts receivable Shanghai Merro Pharmaceutical Co.,
Ltd. 1,127,455.20 - 1,648,042.00 -
Accounts receivable Sinopharm Holding Shanghai Lik ang
Pharmaceutical Co., Ltd. 1,125,141.84 - 1,337,124.28 -
Accounts receivable Sinopharm Holding Shanxi Co., Ltd. 1,009,330.58 - 63,447. 29 -
Accounts receivable Sinopharm Holding Tianjin Co., Ltd. 837,878.00 - 568,733.37 -
Accounts receivable Shanghai Guoda Lingyun Pharmacy
Co., Ltd. 824,587.38 - 664,836.26 -
Accounts receivable Sinopharm Holding Anhui
Pharmaceutical Co., Ltd. 790,661.48 - 225,394.20 -
194
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(1). Accounts Receivable (Continued)
30 June 2021 31 December 2020
Item Relat ed Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Accounts receivable Sinopharm Holding Hunan Co., Ltd. 665,593.65 - 476,299.62 -
Accounts receivable Sinopharm Holding Wuxi Co., Ltd. 648,747.00 - 129,862.00 -
Accounts receivable Sinopharm Lerentang Hengshui
Medicine Co., Ltd. 627,902.87 - 1,197,573.36 -
Accounts receivable Sinopharm Holding Xinjiang Special
Drugs Western Pharmaceutical Co.,
Ltd. 623,234.72 - 1,385,097.14 -
Accounts receivable Sinopharm Lerentang Xingtai
Pharmaceutical Co., Ltd. 577,711.40 - 82,171. 75 -
Accounts receivable Sinopharm Sichuan Pharmaceutical
Co., Ltd. 510,242.85 - 1,437,709.48 -
Accounts receivable Sinopharm Holding Xuzhou Co., Ltd. 483,736.52 - 227,353.60 -
Accounts receivable Sinopharm Group Xinjiang Special
Drugs National Pharmaceutical Co.,
Ltd. 482,610.48 - 1,257,499.80 -
Accounts receivable Sinopharm Holding Yunnan Co., Ltd. 425,758.31 - 139,122.62 -
Accounts receivable China National Medicines Co., Ltd. 409,622.43 - 333,566.22 -
Accounts receivable Sinopharm Holding Gansu Co., Ltd. 396,351.02 - 14,543. 96 -
Accounts receivable Sinopharm Holding Anhui Co., Ltd. 387,196.36 - 74,455. 49 -
Accounts receivable Sinopharm Holding Jinzhou Co., Ltd. 376,206.03 - 587,192.90 -
Accounts receivable Sinopharm Holding Anshan Co., Ltd. 341,765.32 - 81,120. 00 -
Accounts receivable Sinopharm Group Southwest
Medicine Co., Ltd. 339,980.82 - 192,876.72 -
Accounts receivable Sinopharm Holding Jiangxi Co., Ltd. 327,835.60 - 114,697.32 -
Accounts receivable Sinopharm Holding Ningxia Co., Ltd. 240,560.00 - 50,448. 00 -
Accounts receivable Sinopharm Lerentang Hebei Medical
Instrument Trade Co., Ltd. 237,868.93 - 921,543.58 -
Accounts receivable Sinopharm Holding Shanghai
Biomedicine Co., Ltd. 207,780.00 - 169,080.04 -
Accounts receivable Sinopharm Holding Lerentang Hebei 200,134.47 -
Pharmaceutical Co., Ltd. 120,058.61 -
Accounts receivable Sinopharm Holding Shanxi Pharmacy
Co., Ltd. 161,494.00 - - -
Accounts receivable Sinopharm Holding Guizhou Co., Ltd. 145,406.38 - 79,571. 94 -
195
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(1). Accounts Receivable (Continued)
30 June 2021 31 December 2020
Item Relat ed Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Accounts receivable Sinopharm Lerentang Shijiaz huang
Medicine Co., Ltd. 140,111.40 - 62,413. 00 -
Accounts receivable Sinopharm Lerentang Qinhuangdao
Medicine Co., Ltd. 139,548.04 - 10,333. 92 -
Accounts receivable Sinopharm Holding (Hubei) Hankou
Pharmacy Co., Ltd. 130,741.00 - - -
Accounts receivable Sinopharm Holding Jiangsu Co., Ltd. 122,527.35 - 138,015.90 -
Accounts receivable Sinopharm Lerentang Tangshan
Medicine Co., Ltd. 112,190.04 - - -
Accounts receivable Sinopharm Holding Fujian Co., Ltd. 106,344.00 - 258,264.00 -
Accounts receivable Shanghai Liyi 106,314.44 - 237,727.36 -
Accounts receivable Sinopharm Lerentang Langfang
Pharmaceutical Co., Ltd. 100,342.90 - 102,413.00 -
Accounts receivable Sinopharm Holding Dalian Hecheng
Co., Ltd. 99,164. 02 - 16,766. 22 -
Accounts receivable Sinopharm Medical Instrument
(Foshan) Co., Ltd. 95,337. 86 - - -
Accounts receivable Sinopharm Holding Qinghai Co., Ltd. 83,207. 22 - 57,312. 76 -
Accounts receivable Sinopharm Lerentang Zhangjiakou
Medicine Co., Ltd. 71,875. 21 - - -
Accounts receivable Sinopharm Holding Wuhan Guoda
Pharmacy Co., Ltd. 68,085. 00 - - -
Accounts receivable Sinopharm Lerentang Chengde
Medicine Co., Ltd. 65,785. 14 - - -
Accounts receivable Sinopharm Holding Chuxiong Co.,
Ltd. 61,759. 70 - - -
Accounts receivable Sinopharm Holding Honghe Co., Ltd. 55,179. 48 - - -
Accounts receivable Sinopharm Holding Benxi Co., Ltd. 52,679. 28 - - -
Accounts receivable Sinopharm Zhijun 50,503. 75 - 41,533. 50 -
Sinopharm Holding Professional
Accounts receivable
Pharmacy (Hainan) Co., Ltd. 45,365. 40 - - -
Accounts receivable Sinopharm Holding Inner Mongolia
Co., Ltd. 45,137. 28 - 16.00 -
Accounts receivable Shanghai Shengxin Pharmacy Co.,
Ltd. 42,289. 16 - 217,507.20 -
196
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(1). Accounts Receivable (Continued)
30 June 2021 31 December 2020
Item Relat ed Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Accounts receivable Sinopharm Medical Instrument
Guangxi Medical Technology Co.,
Ltd. 42,276. 91 - - -
Accounts receivable Sinopharm Lerentang Zhangjiakou
Medicine Co., Ltd. 40,042. 75 - - -
Accounts receivable Sinopharm Lerentang Shijiaz huang
Medical Management Co., Ltd. 38,872. 60 - 74,424. 44 -
Accounts receivable Sinopharm Lerentang Handan
Medicine Co., Ltd. 37,771. 71 - 11,012. 40 -
Accounts receivable Sinopharm Lerentang Cangzhou
Pharmaceutical Trading Co., Ltd. 37,491. 28 - 470,726.50 -
Accounts receivable Sinopharm Holding Anshun Co., Ltd. 37,206. 55 - 20,656. 00 -
Accounts receivable Sinopharm Lerentang Baoding
Medicine Co., Ltd. 35,216. 00 - 13,056. 35 -
Accounts receivable Sinopharm Lerentang Cangzhou
Medicine Co., Ltd. 30,282. 41 - 39,136. 40 -
Accounts receivable Foshan Chengnan Fengliaoxing
Medical Hospital Co., Ltd. 28,152. 70 3.53 37,151. 74 10.36
Accounts receivable Sinopharm Group Guangxi Medical
Device Co., Ltd. 26,684. 38 - - -
Accounts receivable Sinopharm Holding Tianjin Nort h
Medicine Co., Ltd. 25,316. 96 - 68,180. 00 -
Accounts receivable Sinopharm Holding Fuzhou Co., Ltd. 24,627. 20 - 88.00 -
Accounts receivable Sinopharm Fengliaoxing Medical
Hospital Co., Ltd. 18,658. 86 164.15 15,505. 90 131.93
Accounts receivable Sinopharm Holding Zunyi Co., Ltd. 17,159. 10 - - -
Accounts receivable Sinopharm Lerentang Xintai Medicine
Co., Ltd. 12,579. 33 - 34,154. 44 -
Accounts receivable Sinopharm Holding Zhuanye
Pharmacy (Dongfang) Co., Ltd. 11,282. 50 - 3,560.10 -
Accounts receivable Sinopharm Holding Chengdu Co.,
Ltd. 10,563. 41 - 34,068. 41 -
Accounts receivable Sinopharm Holding Changxing
Professional Pharmacy (Haikou) Co.,
Ltd. 6,667.50 - - -
197
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(1). Accounts Receivable (Continued)
30 June 2021 31 December 2020
Item Relat ed Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Accounts receivable Sinopharm Lerentang Healthcare
Shijiazhuang Pharmacy Co., Ltd. 4,415.33 - 1,491.33 -
Accounts receivable Sinopharm Group Shanxi Medical
Devices Co., Ltd. 3,159.00 - - -
Accounts receivable Sinopharm Holding Hongrun Medical
Business Service (S hanghai) Co.,
Ltd. 3,081.60 - 5,602.42 -
Accounts receivable Shanghai Henlius
Biopharmac euticals Co., Ltd. 1,798.00 - - -
Accounts receivable Sinopharm Medical Instrument
(Jiangmen) Co., Ltd. 1,000.00 - - -
Accounts receivable Sinopharm Holding Pharmacy
(Shanghai) Co., Ltd. 768.70 - - -
Accounts receivable Sinopharm Group Fengliaoxing
Medical Hospital (Fos han Nanhai)
Co., Ltd. 56.74 0.57 916.62 9.17
Accounts receivable Sinopharm Holding Tongliao Co., Ltd.
9.60 - - -
Accounts receivable China National Pharmaceutical
Foreign Trade Corporation - - 299,402.99 -
Accounts receivable Foshan Chancheng District Shiwan
Town Chengnan Community Health
Service Center - - 160,285.82 396.20
Accounts receivable Sinopharm Holding Yancheng Co.,
Ltd. - - 65,635. 20 -
Accounts receivable Sinopharm Holding Changzhou Co.,
Ltd. - - 14,975. 52 -
Accounts receivable Jiangmen Xinhui District Jianfeng
Pharmaceutical Co., Ltd. - - 3,652.00 -
Accounts receivable Sinopharm Fengliaoxing (Fos han)
Pharmaceutical Drugs Co., Ltd. - - 3,456.00 -
Accounts receivable Sinopharm Guanai Yuankang
Pharmacy (Haikou) Co., Ltd. - - 2,301.60 -
Accounts receivable Sinopharm Holding Shenyang Co.,
Ltd. - - 440.00 -
198
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(1). Accounts Receivable (Continued)
30 June 2021 31 December 2020
Item Relat ed Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Note receivable Sinopharm Holding Hainan Co.,
Ltd. 7,790,377.25 - 48,549,280.19 -
Note receivable Sinopharm Holding Hainan Hongyi
Co., Ltd. 3,648,399.46 - 9,445,722.78 -
Note receivable Sinopharm Holding Beijing Co.,
Ltd. 2,752,320.00 - 2,795,361.96 -
Note receivable Sinopharm Holding Shanxi Co.,
Ltd. 927,668.77 - 650,373.76 -
Note receivable Innostar Biotechnology Nantong
Co., Ltd 15,550.30 - - -
Note receivable Sinopharm Holding Shandong Co.,
Ltd. - - 1,355,084.16 -
Note receivable Sinopharm Lerentang Medicine
Co., Ltd. - - 909,517.66 -
Note receivable Sinopharm Holding Zunyi Co., Ltd. - - 803,004.11 -
Note receivable Sinopharm Holding Guizhou Yitong
Medicine Co., Ltd. - - 357,540.60 -
Note receivable Sinopharm Holding Anshan Co.,
Ltd. - - 313,535.20 -
Note receivable Sinopharm Holding Jinzhou Co.,
Ltd. - - 300,000.00 -
Note receivable
Sinopharm Holding Gansu Co., Ltd. - - 175,281.40 -
Note receivable Sinopharm Holding Guizhou Co.,
Ltd. - - 158,268.10 -
Note receivable Sinopharm Holding Anhui Co., Ltd. - - 140,856.05 -
199
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(1). Accounts Receivable (Continued)
30 June 2021 31 December 2020
Item Relat ed Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Other receivable Zhijun Suzhou
46,334, 222. 24 46,334, 222. 24 46,334, 222. 24 Zhijun Suzhou
Other receivable Xishuangbanna Disheng
Pharmaceutical Co., Ltd. 16,046, 032. 95 - - -
Other receivable Sinopharm Group Medicine
Logistic Co., Ltd. 3,662,451.54 - 2,559,772.89 -
Other receivable Jiangsu Wanbang Pharmacy
Marketing Co., Ltd. 1,106,077.40 - 220,000.00 -
Other receivable Sinopharm Shyndec
983,940.00 - 983,940.00 -
Other receivable Sinopharm Holding (China)
Financing Lease Co., Ltd. 938,513.78 - 570,000.00 -
Other receivable Sinopharm Holding Fujian Co.,
Ltd. 753,015.80 - 1,158,302.52 -
Other receivable Sinopharm Zhijun 421,976.49 - 204,351.29 -
Other receivable Sinopharm Holding Sub Mark eting
Cent er Co., Ltd. 414,904.45 - - -
Other receivable Sinopharm Holding Shanghai
Biomedicine Co., Ltd. 400,000.00 - 400,000.00 -
Other receivable Sinopharm Group Xinjiang
Special Drugs National
Pharmaceutical Co., Ltd. 398,842.11 - - -
Other receivable Guangdong Jienuo
274,930.00 - - -
Other receivable Dalian Yalifeng Biopharmaceutical
Co., Ltd. 180,900.74 - 1.00 -
Other receivable Sinopharm Holding Xinjiang
Special Drugs Kashgar
Pharmaceutical Co., Ltd. 170,025.29 - 7,174.98 -
Other receivable Sinopharm Holding Inner
Mongolia Co., Ltd. 142,500.00 - 256,500.00 -
Other receivable Sinopharm Holding Xinjiang Xint e
Karamay Pharmaceutical Co., Ltd. 58,582. 65 - - -
200
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(1). Accounts Receivable (Continued)
30 June 2021 31 December 2020
Item Related Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Other receivable Zhijun Pingshan
41,684. 00 - 18,500. 00 -
Other receivable Zhijun Trade
31,573. 40 - 10,779. 42 -
Other receivable Zhang Haiyan
30,000. 00 - 30,000. 00 -
Other receivable Innostar Biotechnology Nantong Co., Ltd
15,550. 30 - - -
Other receivable Sinopharm Medical Instrument Guangxi
Medical Technology Co., Ltd. 12,276. 81 - - -
Other receivable China National Scientific Instruments &
Materials I&E Shenzhen Co., Ltd. 10,036. 80 - - -
Other receivable Sinopharm Group Guangxi Medical
Device Co., Ltd. 3,060.93 - - -
Other receivable Sinopharm Group Guangdong Medicine
Device Co., Ltd. 1,000.00 - 60.00 -
Other receivable China National Medical Device (Hui Zhou)
Co., Ltd. 184.40 - - -
Other receivable Du Longfeng
- - 2,057,281.04 -
Other receivable Li Huichun
- - 2,057,281.04 -
Other receivable Sinopharm Lerentang Hebei Medical
Instrument Trade Co., Ltd. - - 48,493. 16 -
Other receivable Sinopharm Guangdong Medicine Device
Supply Chain Co., Ltd. - - 17,397. 44 -
Other receivable Sinopharm Zhonglian Pharmaceutical
Group Co., Ltd. - - 5,000.00 1,000.00
Other receivable Xinjiang Bait ong Property Servic e Co.,
Ltd. - - 1,300.00 -
201
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(1). Accounts Receivable (Continued)
30 June 2021 31 December 2020
Item Relat ed Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Advances to suppliers Southwest Pharmaceutical Co., Ltd. 2,675,229.26 - - -
Advances to suppliers Nanjing Yuanguang Trading Co., Ltd. 1,170,978.86 - - -
Advances to suppliers Sichuan Hexin Pharmaceutical Co.,
Ltd. 710,539.19 - - -
Advances to suppliers Shanghai Shyndec Pharmaceutical
Marketing Co., Ltd. 440,791.78 - 475,673.07 -
Advances to suppliers Sinopharm Group Guorui Medicine
Co., Ltd. 264,040.41 - 307,838.82 -
Advances to suppliers Taiji Group Chongqing Fuling
Pharmaceutical Co., Ltd. 249,048.67 - - -
Advances to suppliers Hunan Dongting Pharmaceutical Co.,
Ltd. 166,924.76 - 176,257.86 -
Advances to suppliers China National Pharmaceutical
Industry Co., Ltd. 149,990.40 - - -
Advances to suppliers Shanghai Tongyu Information
Technology Co., Ltd. 132,743.36 - - -
Advances to suppliers Sinopharm Holding Hubei Co., Ltd. 127,076.65 - - -
Advances to suppliers Sinopharm Holdings Beijing
Huahong co., Ltd. 104,156.85 - 10,984. 33 -
Advances to suppliers Suzhou Erye Pharmaceutical Limited
Company 91,135. 03 - 121,669.23 -
Advances to suppliers Sinopharm Weiqida Pharmaceutical
Co., Ltd. 81,416. 71 - - -
Advances to suppliers Chongqing Yaoyou Pharmaceutical
Co., Ltd. 55,637. 49 - 408,984.97 -
Advances to suppliers Sinopharm Holding Sub Mark eting
Cent er Co., Ltd. 45,683. 18 - 44,662. 50 -
Advances to suppliers Sinopharm Group Xinjiang Special
Drugs National Pharmaceutical Co.,
Ltd. 34,469. 49 - - -
Advances to suppliers Hunan Yaoyou Medicines Co., Ltd. 26,721. 82 - - -
Advances to suppliers Sinopharm Xingsha Pharmaceuticals
(Xiamen) Co., Ltd. 21,057. 70 - 137,280.00 -
Advances to suppliers Sinopharm Yixin Pharmaceutical Co.,
Ltd. 20,757. 00 - - -
202
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(1). Accounts Receivable (Continued)
30 June 2021 31 December 2020
Item Relat ed Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Advances to suppliers Taiji Group Chongqing Tongjunge
Pharmaceutical Co., Ltd. 14,901. 57 - - -
Advances to suppliers Foshan Winteam Pharmaceutical
Group Ltd. 13,972. 00 - - -
Advances to suppliers Taiji Group Gansu Tianshui
Xihuang Ejiao Co., Ltd. 13,648.00 - - -
Advances to suppliers Hubei Sinopharm Zhonglian
Medicine Co., Ltd. 13,529. 23 - 13,529. 23 -
Advances to suppliers Taishan Xiangranhui Trade Co.,
Ltd. 13,150. 03 - - -
Advances to suppliers Sinopharm Tongjitang (Guizhou)
Pharmaceutical Co., Ltd. 8,956.01 - 8,956.01 -
Advances to suppliers Sinopharm Guangdong Global
Pharmaceutical Co., Ltd. 4,708.38 - - -
Advances to suppliers Sinopharm Group Rongsheng
Pharmaceutical Co., Ltd. 2,833.81 - 12,393. 12 -
Advances to suppliers Sinopharm Holding Dalian Hecheng
Co., Ltd. 2,444.10 - - -
Advances to suppliers Sinopharm Holding Shanxi
Jincheng Co., Ltd. 1,837.72 - - -
Advances to suppliers Zhang haiyan 714.29 - - -
Advances to suppliers Sinopharm Group 594.95 - 59,577. 44 -
Advances to suppliers Shanghai Modern Hasen
(Shangqiu) Pharmaceutical Co.,
Ltd. 457.48 - - -
Advances to suppliers Sinopharm Shyndec 61.20 - 84.97 -
Advances to suppliers Sinopharm Holding Hubei Likang
Pharmaceutical Co., Ltd. 35.08 - - -
Advances to suppliers Sinopharm Lerentang Hebei
Medicine Co., Ltd. 0.01 - 0.01 -
Advances to suppliers Sinopharm Holding Shanxi Co., Ltd. - - 17,747,100.00 -
Advances to suppliers Sinopharm Group Guangxi Medical
Device Co., Ltd. - - 1,850,000.00 -
203
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(1). Accounts Receivable (Continued)
30 June 2021 31 December 2020
Item Relat ed Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Advances to suppliers Fresenius Kabi Huarui
Pharmaceuticals Co., Ltd. - - 260,846.15 -
Advances to suppliers Chengdu Rongsheng Pharmacy
Co., Ltd. - - 217,055.13 -
Advances to suppliers Lanzhou Biotechnology
Development Co., Ltd. - - 180,000.00 -
Advances to suppliers Sinopharm Shantou Jinshi
Pharmaceutical Co., Ltd. - - 79,332. 33 -
Advances to suppliers Guilin Pharmac eutical Co., Ltd.
- - 74,560. 00 -
Advances to suppliers Sinopharm Zhijun
- - 41,928. 00 -
Advances to suppliers Jiangsu Wanbang Pharmacy
Marketing Co., Ltd. - - 28,796. 22 -
Advances to suppliers Sinopharm Holding Beijing Co., Ltd.
- - 14,878. 90 -
Advances to suppliers Jinzhou A vanc Pharmaceutical Co.,
Ltd. - - 8,351.85 -
Advances to suppliers Sinopharm Holding Changsha Co.,
Ltd. - - 4,476.56 -
Advances to suppliers Sinopharm Device (Guangdong)
Medical Technology Co., Ltd. - - 4,021.05 -
Advances to suppliers Sinopharm Group Yibin
Pharmaceuticals Co., Ltd. - - 1,377.08 -
Advances to suppliers Sinopharm Holding Yancheng Co.,
Ltd. - - 703.62 -
Advances to suppliers Fosun Pharmaceutical Distribution
Jiangsu Co., Ltd. - - 81.08 -
Advances to suppliers Sinopharm Holding Nanping
Newforce Co., Ltd - - 20.46 -
Advances to suppliers Sinopharm Holding Xinye (Hubei)
Medicine Co., Ltd. - - 3.40 -
204
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(2). Accounts Payable
Item Relat ed Party 30 June 2021 31 December 2020
Accounts Payable Sinopharm Holding Sub Mark eting
Cent er Co., Ltd. 136,420,774.52 100,597,889.85
Accounts Payable China National Medicines Co., Ltd. 94,328, 048. 04 53,510, 089. 86
Accounts Payable Sinopharm Lerentang Medicine Co.,
Ltd. 92,347, 900. 63 -
Accounts Payable Sinopharm Holding Shanxi Co., Ltd. 79,515, 178. 71 8,706,339.43
Accounts Payable Sinopharm Holding Shanxi Co., Ltd. 50,047, 053. 30 698,931.88
Accounts Payable Sinopharm Group Xinjiang Special
Drugs National Pharmaceutical Co., Ltd. 46,826, 354. 95 44,967, 413. 32
Accounts Payable Fresenius Kabi Huarui Pharmaceuticals
Co., Ltd. 46,680, 139. 27 31,372, 881. 57
Accounts Payable Sinopharm Holding Shenyang Co., Ltd. 42,512, 516. 24 17,044, 758. 52
Accounts Payable Sinopharm Group Co., Ltd. 38,594, 822. 49 30,169, 144. 90
Accounts Payable Jiangsu Wanbang Pharmacy Marketing
Co., Ltd. 23,252, 792. 65 14,299, 613. 79
Accounts Payable Lanzhou Biotechnology Development
Co., Ltd. 17,238, 914. 69 -
Accounts Payable Sinopharm Holding Xinjiang Special
Drugs Western Pharmaceutical Co., Ltd. 15,460, 751. 55 6,926,143.50
Accounts Payable Sinopharm Lerentang Hebei Medical
Instrument Trade Co., Ltd. 15,071, 393. 38 13,211, 593. 60
Accounts Payable Sinopharm Yixin Pharmaceutical Co.,
Ltd. 12,922, 894. 16 5,223,703.27
Accounts payable Sinopharm Holding Lerentang Hebei
Pharmaceutical Co., Ltd. 12,538, 440. 66 11,917, 795. 97
Accounts Payable Sinopharm Holding Jilin Co., Ltd. 12,238, 802. 76 4,774,676.38
Accounts Payable Sinopharm Holding Lunan Co., Ltd. 10,975, 399. 71 -
Accounts Payable Chongqing Yaoyou Pharmaceutical Co.,
Ltd. 10,259, 242. 11 3,319,845.70
Accounts Payable Sinopharm Holding Tongliao Co., Ltd. 9,464,045.96 802,269.56
Accounts Payable Shanghai Henlius Biopharmaceuticals
Co., Ltd. 9,349,231.90 3,489,402.52
Accounts Payable Sinopharm Holding Yangzhou Co., Ltd. 9,270,870.65 6,056,767.80
Accounts Payable Sinopharm Holding Fujian Co., Ltd. 8,787,141.12 5,306,468.57
Accounts Payable Main Luck Pharmaceutical 8,563,894.25 5,586,186.27
205
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(2). Accounts Payable (Continued)
Item Relat ed Party 30 June 2021 31 December 2020
Accounts Payable Sinopharm Holding Shanxi Zhongjian
Medical Device Chain Co., Ltd. 8,116,781.92 4,873,657.16
Accounts Payable Sinopharm Holding Inner Mongolia
Co., Ltd. 7,811,861.15 2,761,321.64
Accounts Payable Sinopharm Lerentang Shijiazhuang
Medicine Co., Ltd. 7,687,260.65 3,588,817.09
Accounts Payable Sinopharm Holding Xinjiang Xint e
Shenrong Pharmaceutical Co., Ltd. 7,418,455.79 3,753,212.37
Accounts Payable Sinopharm Holding Jiangsu Co., Ltd. 6,986,215.82 6,211,219.22
Accounts Payable Sinopharm Group Shanxi Medical
Devices Co., Ltd. 6,366,021.31 6,105,947.86
Accounts Payable Sinopharm Holding Shandong Co.,
Ltd. 6,124,476.27 793,417.76
Accounts Payable Yunnan Sinopharm Holding
Dongchang Medicine Co., Ltd. 5,922,302.36 1,660,475.22
Accounts Payable Foshan Winteam Pharmaceutical
Group Ltd. 5,488,616.17 5,032,327.78
Accounts Payable Sinopharm Holding Hunan Co., Ltd. 4,923,319.80 407,092.81
Accounts Payable Shenzhen Wanwei Medicine Trading
Co., Ltd. 4,869,268.33 883,982.13
Accounts Payable Sinopharm Holding Beijing Co., Ltd. 4,868,848.38 2,391,873.73
Accounts Payable Hutchison Whampoa Sinopharm
Pharmaceuticals (Shanghai) Co., Ltd. 4,559,628.22 626,104.94
Accounts Payable Yichang Humanwell Pharmaceutical
Co., Ltd. 4,470,996.08 702,352.60
Accounts Payable Jinzhou A vanc Pharmaceutical Co.,
Ltd. 4,411,339.82 4,977,249.88
Accounts Payable Sinopharm Holding Henan Co., Ltd. 4,396,344.31 3,206,888.96
Accounts Payable Zhijun Pingshan 4,272,258.25 3,854,209.10
Accounts Payable China Otsuka Pharmaceutical Co., Ltd. 3,739,214.15 2,677,852.24
Accounts Payable Sinopharm Holding Xiamen Co., Ltd. 3,388,026.93 551,570.55
Accounts Payable China National Pharmaceutical
Foreign Trade Corporation 3,183,468.89 1,264,206.58
Accounts Payable Sinopharm Holding Ningxia Co., Ltd. 3,139,723.50 2,414,511.01
Accounts Payable Sinopharm Holding Jinzhou Co., Ltd. 3,002,980.96 1,176,931.82
Accounts Payable Sinopharm Holding Changzhou Co.,
Ltd. 2,986,094.33 4,061,240.62
206
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(2). Accounts Payable (Continued)
Item Relat ed Party 30 June 2021 31 December 2020
Accounts Payable Tibet Yaoyou Medicines Co., Ltd. 2,766,861.56 5,599,734.54
Accounts Payable Sinopharm Zhijun 2,752,553.26 2,204,850.71
Accounts Payable Taiji Group Chongqing Lingling
Pharmaceutical Factory Co., Ltd 2,678,260.95 -
Accounts Payable Sinopharm Fengliaoxing (Fos han)
Pharmaceutical Drugs Co., Ltd. 2,635,957.97 2,029,331.09
Accounts Payable Sinopharm Holding Shanxi Dajiuzhou
Medicine Co., Ltd. 2,503,237.00 206,174.46
Accounts Payable Sinopharm Holding Pingdingshan Co.,
Ltd. 2,334,135.94 3,110,222.71
Accounts Payable Sinopharm Holding Beijing Kangchen
Bio-Pharmaceutical Co., Ltd. 2,297,132.34 1,402,636.20
Accounts Payable Shanghai International
Pharmaceutical Trade Co., Ltd. 2,268,132.84 2,140,826.76
Accounts Payable Taiji Group Chongqing Junge
Pharmaceutical Co., Ltd 2,209,845.30 -
Accounts Payable Sinopharm Xingsha Pharmaceuticals
(Xiamen) Co., Ltd. 2,169,689.83 1,345,750.22
Accounts Payable Sinopharm Advanced (Shanghai)
Medical Device Co., Ltd. 2,018,301.45 474.35
Accounts Payable Sinopharm Holding Anshan Co., Ltd. 1,921,040.94 210,514.52
Accounts Payable Sinopharm Holding Hulun Buir Co.,
Ltd. 1,723,560.47 862,728.46
Accounts Payable Sinopharm Holding Shanghai Lik ang
Pharmaceutical Co., Ltd. 1,664,002.07 1,179,431.76
Accounts Payable Sinopharm Jiankun (B eijing) Medicine
Co., Ltd. 1,558,885.49 236,040.00
Accounts Payable Sinopharm Zhonglian Pharmaceutical
Group Co., Ltd. 1,528,102.51 450,506.71
Accounts Payable Sinopharm Holding Wuxi Co., Ltd. 1,475,312.09 839,716.25
Accounts Payable Sinopharm Huixinqinyuan (Beijing)
Technology Development Co., Ltd. 1,406,460.00 1,315,880.00
Accounts Payable Fosun Pharmaceutical Distribution
Jiangsu Co., Ltd. 1,396,404.21 1,404,453.04
207
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(2). Accounts Payable (Continued)
Item Relat ed Party 30 June 2021 31 December 2020
Accounts Payable Sinopharm Holding Jinan Co., Ltd. 1,378,772.68 5,044.24
Accounts Payable Sinopharm Liaoning Medical
Equipment Co., Ltd. 1,332,215.59 801,190.96
Accounts Payable Beijing Huasheng Pharmaceutical
Biotechnology Development Co., Ltd. 1,210,637.01 275,637.01
Accounts Payable Sinopharm Holding Donghong
Medical (Shanghai) Co., Ltd. 1,191,544.83 189,625.02
Accounts Payable Shanghai Shyndec Pharmaceutical
Marketing Co., Ltd. 1,120,294.14 1,198,963.22
Accounts Payable Sinopharm Group, Southwest
Pharmaceutical Co., Ltd. 889,435.22 -
Accounts Payable Sinopharm Holding Beijing Tianxing
Puxin Biological Medical Co., Ltd. 878,317.60 1,495,702.47
Accounts Payable Sinopharm Group Guorui Medicine
Co., Ltd. 847,231.99 1,029,635.96
Accounts Payable Jinzhou A vanc Medicine Co., Ltd. 774,228.85 2,251,486.36
Accounts Payable Sinopharm Luya (S handong)
Pharmaceutical Co., Ltd. 717,286.31 1,728,265.11
Accounts Payable Sinopharm Holding Heilongjiang Co.,
Ltd. 709,357.70 811,310.59
Accounts Payable Sinopharm Holding Linfen Ningle
Pharmaceutical Co., Ltd. 702,647.45 7,414.31
Accounts Payable Sinopharm Tongjitang (Guizhou)
Pharmaceutical Co., Ltd. 661,183.36 560,063.40
Accounts Payable Sinopharm Holding Xinjiang Special
Drugs Karamay Pharmaceutical Co.,
Ltd. 651,582.93 659,567.18
Accounts Payable Beijing Golden Elephant Fosun
Pharmaceutical Co., Ltd. 641,043.63 714,642.68
Accounts Payable Fujian Chentian Jinling
Pharmaceutical Co., Ltd. 639,896.10 639,896.10
Accounts Payable Huayi Pharmac eutical Co., Ltd. 622,400.00 110,159.29
Accounts Payable China National Pharmaceutical
Industry Co., Ltd. 563,196.30 614,940.77
208
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(2). Accounts Payable (Continued)
Item Relat ed Party 30 June 2021 31 December 2020
Accounts Payable Southwest Pharmaceutical Co., Ltd 498,114.40 -
Accounts Payable Sinopharm Holding Zhihuiminsheng
(Tianjin) Pharmaceutical Co., Ltd. 483,577.38 763,894.30
Accounts Payable Sinopharm ChuanK ang
Pharmaceutical Co., Ltd. 483,468.40 228,071.04
Accounts Payable Yunnan Tianjiang Yifang
Pharmaceutical Co., Ltd. 475,579.30 792,663.67
Accounts Payable Shanghai Trans fusion Technology
Co., Ltd. 452,700.00 301,800.00
Accounts Payable Sinopharm Lingyun
Biopharmac eutical (Shanghai) Co.,
Ltd. 451,033.67 553,653.19
Accounts Payable Jiangxi Erye Medicine Marketing Co.,
Ltd. 437,250.19 134,268.38
Accounts Payable Sichuan Hexin Pharmaceutical Co.,
Ltd. 414,600.00 1,164,727.22
Accounts Payable Sinopharm Holdings Chuangke
Medical Technology (Guangxi) Co.,
Ltd 405,660.80 -
Accounts Payable Sinopharm Holdings Benxi Co., LTD 356,397.10 -
Accounts Payable Sinopharm Holding Tianjin Co., Ltd. 352,357.23 95,084. 93
Accounts Payable Sinopharm Holding Yancheng Co.,
Ltd. 344,929.57 -
Accounts Payable Sinopharm Holding Xinjiang Special
Drugs Kashgar Pharmaceutical Co.,
Ltd. 338,359.74 390,349.10
Accounts Payable Sinopharm Holding Special Drugs
Shihezi Pharmaceutical Co., Ltd. 337,497.87 126,985.40
Accounts Payable Hunan Dongting Pharmaceutical Co.,
Ltd. 335,196.57 667,433.56
Accounts Payable Jiangsu Huanghe Pharmaceutical
Co., Ltd. 334,470.96 229,932.46
Accounts Payable Suzhou Erye Pharmaceutical Limited
Company 332,911.50 350,413.20
Accounts Payable Sinopharm Lerentang Qinhuangdao
Pharmaceutical Trading Co., Ltd. 325,253.73 355,710.50
Accounts Payable Sinopharm Holding Hubei Co., Ltd. 325,147.65 706,495.38
209
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(2). Accounts Payable (Continued)
Item Relat ed Party 30 June 2021 31 December 2020
Accounts Payable Sinopharm Holding Fuzhou Co., Ltd. 294,318.62 655,028.77
Accounts Payable Sinopharm Holding Anhui Huaning
Medicine Co., Ltd. 292,609.10 248,701.04
Accounts Payable GlaxoSmithKline Pharmaceuticals
(Suzhou) Co., Ltd. 286,776.33 156,960.48
Accounts Payable Taiji Group Sichuan Mianyang
Pharmaceutical Co., Ltd 284,788.67 -
Accounts Payable Sinopharm Group Yibin
Pharmaceuticals Co., Ltd. 281,130.03 286,441.67
Accounts Payable Sinopharm Holding Yangzhou Medical
Treatment Equipment Co., Ltd. 280,247.31 347,738.10
Accounts Payable Sinopharm Holding Pu’er Co., Ltd. 267,364.71 126,457.83
Accounts Payable Sinopharm Holding Dalian Co., Ltd. 260,998.30 372,970.88
Accounts Payable Sinopharm Group Rongsheng
Pharmaceutical Co., Ltd. 246,191.00 412,372.07
Accounts Payable Shanghai Merro Pharmaceutical Co.,
Ltd. 243,184.50 196,678.40
Accounts Payable Sinopharm Holding Yunnan Co., Ltd. 239,684.27 128,094.48
Accounts Payable Sinopharm Holding Shanghai
Biomedicine Co., Ltd. 198,359.00 182,202.00
Accounts Payable Sinopharm Xinjiang Pharmaceutical
Co., Ltd. 191,183.73 94,780. 05
Accounts Payable Sinopharm Shanxi ruifulai
Pharmaceutical Co., Ltd 163,015.43 -
Accounts Payable Sinopharm Holding Putian Co., Ltd. 160,656.67 224,611.58
Accounts Payable Shanghai Shangsheng Biological
Products Co., Ltd. 153,756.00 194,400.00
Accounts Payable Sichuan Jiangyou Zhongba Fuzi
Technology Development Co., Ltd 148,143.06 -
Accounts Payable Chengdu Institute of Biological
Products Co., Ltd. 140,400.00 374,400.00
Accounts Payable Sinopharm Holdings Beijing Huahong
co., Ltd. 139,337.70 68,274. 07
210
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(2). Accounts Payable (Continued)
Item Relat ed Party 30 June 2021 31 December 2020
Accounts Payable Sinopharm Holding Hunan
Pharmaceutical Development Co.,
Ltd. 136,890.18 105,438.07
Accounts Payable Sinopharm Holding Shanxi
Mingdikang Medicine Co., Ltd. 113,139.81 47,953. 27
Accounts Payable Sinopharm Holding Biopharmaceutical
(Tianjin) Co., Ltd. 106,718.02 106,918.61
Accounts Payable Chengdu Rongsheng Pharmacy Co.,
Ltd. 100,794.89 100,000.02
Accounts Payable Sinopharm Holding Zhejiang Co., Ltd. 100,418.02 30,316. 89
Accounts Payable Sinopharm Holding Bayannur Co.,
Ltd. 96,966. 40 69,930. 10
Accounts Payable Wuhan Zhongsheng Yujin biomedical
Co., Ltd 88,504. 00 -
Accounts Payable Sinopharm Shantou Jinshi
Pharmaceutical Co., Ltd. 88,254. 41 135,961.28
Accounts Payable Sinopharm Holding Quanzhou Co.,
Ltd. 81,315. 39 203,348.93
Accounts Payable Shanghai Chaohui Pharmaceutical
Co., Ltd. 77,054. 61 1,020,709.97
Accounts Payable Sinopharm Holding Huaideju
(Xiamen) Pharmacy Co., Ltd. 76,448. 34 84.48
Accounts Payable Sinopharm holding Xinte Yili
Pharmaceutical Co., Ltd 68,861. 47 -
Accounts Payable Shenyang Hongqi Pharmaceutical
Co., Ltd. 65,372. 23 165,983.07
Accounts Payable Sinopharm Holding Nantong Co., Ltd 61,946. 90 -
Accounts Payable Shantou Jinshi Powder Injection Co.,
Ltd. 61,662. 00 72,590. 24
Accounts Payable Sinopharm Device (Guangdong)
Medical Technology Co., Ltd. 58,450. 50 76,078. 94
Accounts Payable Taiji Group Ltd 47,123. 91 -
Accounts Payable Sinopharm Holding Chifeng Co., Ltd 46,663. 80 -
211
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(2). Accounts Payable (Continued)
Item Relat ed Party 30 June 2021 31 December 2020
Accounts Payable Sinopharm Inner Mongolia Medical
Instrument Co., Ltd 39,551. 00 -
Accounts Payable Sinopharm Holding Nanping New
Power Co., Ltd 38,961. 61 -
Accounts Payable Sinopharm Holding Dezhou Co., Ltd. 37,534. 02 45,750. 41
Accounts Payable Sinopharm Sanyi Medicine (Wuhu)
Co., Ltd. 35,199. 94 26,646. 40
Accounts Payable Sinopharm Holding Anhui Co., Ltd. 34,219. 90 -
Accounts Payable Sinopharm Holding Changzhou
Medical Logistics Center Co., Ltd. 32,872. 49 32,872. 49
Accounts Payable Sinopharm (Anhui) Jingfang
Pharmaceutical Co., Ltd. 32,814. 69 59,773. 89
Accounts Payable Sinopharm holding Shanxi Linfen Co.,
Ltd 31,242. 18 -
Accounts Payable Shanghai Modern Hasen (Shangqiu)
Pharmaceutical Co., Ltd. 30,432. 28 31,024. 85
Accounts Payable Sinopharm Holding Changsha Co.,
Ltd. 30,339. 75 -
Accounts Payable Taiji Group Zhejiang Dongfang
Pharmaceutical Co., Ltd 30,277. 66 -
Accounts Payable Sinopharm Beijing Huamiao
Pharmaceutical Co., Ltd. 26,862. 15 131,751.68
Accounts Payable Sinopharm Guangdong Global
Pharmaceutical Co., Ltd. 25,018. 25 28,464. 87
Accounts Payable Sinopharm Wuhan Zhonglian Siyao
Pharmaceutical Co., Ltd. 19,500. 56 147,224.95
Accounts Payable Chongqing Haisiman Pharmaceutical
Co., Ltd. 18,488. 82 18,488. 82
Accounts Payable Sinopharm Holding Ulanqab Co., Ltd. 16,092. 20 36,092. 20
Accounts Payable Sinopharm Holding Nanjing Wende
Pharmaceutical Co., Ltd. 15,958. 84 10,858. 84
Accounts Payable Sinopharm Holding Taizhou Co., Ltd. 11,239. 87 17,598. 01
212
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(2). Accounts Payable (Continued)
Item Relat ed Party 30 June 2021 31 December 2020
Accounts Payable China National Medical Device (Hui
Zhou) Co., Ltd. 8,950.00 805.31
Accounts Payable China Medical Equipment Shandong
Co., Ltd. 7,303.36 29,843. 36
Accounts Payable Sinopharm Holding Changsha Gaoxin
Medicine Co., Ltd. 5,825.00 12,900. 00
Accounts Payable Sinopharm holding Hainan Hongyi
Co., Ltd 4,960.00 -
Accounts Payable Changchun Changsheng Gene
Pharmaceutical Co., Ltd. 3,017.25 3,807.25
Accounts Payable Sinopharm Holding Yangzhou
Biological Products Co., Ltd. 2,378.07 149,183.90
Accounts Payable Sinopharm holding Xinye (Hubei)
Pharmaceutical Co., Ltd 2,170.00 -
Accounts Payable Sinopharm Holding Ordos Co., Ltd. 1,771.20 1,771.20
Accounts Payable Sinopharm Nutraceuticals (Shanghai)
Co., Ltd. 1,461.55 1,461.56
Accounts Payable Sinopharm Dezhong (Foshan)
Pharmaceutical Co., Ltd. 1,244.76 5,453.55
Accounts Payable Sinopharm Holding Huaideju
Pharmaceutical (Xiamen) Co., Ltd. 1,113.85 2,229.36
Accounts Payable Sinopharm holding Guang'an Co., Ltd 857.31 -
Accounts Payable Guilin Pharmac eutical Co., Ltd. 627.25 627.25
Accounts Payable Sinopharm Anhui Great Healt h
Industry Co., Ltd 504.00 -
Accounts Payable Sinopharm Holding Zhangzhou Co.,
Ltd. 468.00 2,119.78
Accounts Payable Sinopharm Holding Liaocheng Co.,
Ltd. 174.00 174.00
Accounts Payable Sinopharm Fengliaoxing (Fos han)
Medicines Co., Ltd. 127.72 127.72
Accounts Payable Chengdu List Pharmaceutical Co.,
Ltd. 72.89 1,756.39
Accounts Payable Natong Biotechnology (Beijing) Co.,
Ltd 63.72 -
213
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(2). Accounts Payable (Continued)
Item Relat ed Party 30 June 2021 31 December 2020
Accounts Payable Sinopharm holding Jilin Medical
Instrument Co., Ltd 47.50 47.50
Accounts Payable Sinopharm holding Chongqing Co.,
Ltd 45.00 -
Accounts Payable Sinopharm Shyndec 15.61 612.78
Accounts Payable Sinopharm Holding Suzhou Co., Ltd. 13.09 13.09
Accounts Payable Sinopharm Holding Linfen Co., Ltd 5.00 5.30
Accounts Payable Sinopharm Holding Xinyu Co., Ltd 0.01 0.01
Accounts Payable Sinopharm Group Guangxi Medical
Device Co., Ltd. - 1,637,168.14
Accounts Payable Sinopharm Holding Shanxi Jinzhong
Co., Ltd. - 304,455.20
Accounts Payable Sinopharm Holding Baotou Co., Ltd. - 16,443.00
Accounts Payable Sinopharm Holding Dalian Hecheng
Co., Ltd. - 3,169.55
Accounts Payable Sinopharm Holding Shanxi Jincheng
Co., Ltd. - 2,233.33
Accounts Payable Sinopharm Group Shanghai Medicine
Device Co., Ltd. - 209.96
214
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(2). Accounts Payable (Continued)
Item Relat ed Party 30 June 2021 31 December 2020
Notes Payable Sinopharm Lerentang Medicine Co.,
Ltd. 178,726,114.00 133,513,118.91
Notes Payable Sinopharm Holding Sub Mark eting
Cent er Co., Ltd. 98,532, 398. 98 145,007,748.49
Notes Payable Sinopharm Group Xinjiang Special
Drugs National Pharmaceutical Co.,
Ltd. 86,581, 666. 40 34,904, 620. 08
Notes Payable China National Medicines Co., Ltd. 46,854, 819. 69 21,240, 547. 39
Notes Payable Sinopharm Holding Shanxi Co., Ltd. 37,255, 237. 87 96,475, 832. 70
Notes Payable Sinopharm Holding Shanxi Co., Ltd. 29,956, 295. 04 147,484,839.36
Notes Payable Sinopharm Holding Shenyang Co.,
Ltd. 27,343, 806. 55 23,666, 333. 81
Notes Payable Jiangsu Wanbang Pharmacy
Marketing Co., Ltd. 19,093, 642. 80 42,481, 785. 07
Notes Payable Sinopharm Holding Lunan Co., Ltd. 15,322, 762. 00 4,500,000.00
Notes Payable Sinopharm Holding Yangzhou Co.,
Ltd. 13,766, 896. 93 4,300,000.00
Notes Payable Chengdu Rongsheng Pharmacy Co.,
Ltd. 12,003, 000. 00 10,368, 750. 00
Notes Payable Sinopharm Holding Inner Mongolia
Co., Ltd. 11,789, 525. 01 20,429, 758. 48
Notes Payable Sinopharm Holding Fujian Co., Ltd. 9,086,169.43 15,606, 964. 31
Notes Payable Sinopharm Holding Tongliao Co., Ltd. 8,146,891.51 -
Notes Payable Sinopharm Holding Jilin Co., Ltd. 7,870,548.03 430,080.28
Notes Payable Sinopharm Lerentang Hebei Medical
Instrument Trade Co., Ltd. 7,734,939.35 5,681,012.75
215
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(2). Accounts Payable (Continued)
Item Relat ed Party 30 June 2021 31 December 2020
Notes Payable Lanzhou Biotechnology Development
Co., Ltd 6,720,000.00 34,920, 000. 00
Notes Payable Sinopharm Holding Xiamen Co., Ltd. 6,189,287.86 3,173,200.37
Notes Payable Chongqing Yaoyou Pharmaceutical
Co., Ltd. 5,683,557.40 2,693,445.70
Notes Payable Sinopharm Holding Pingdingshan Co.,
Ltd. 5,644,930.05 3,000,000.00
Notes Payable Sinopharm Xingsha Pharmaceuticals
(Xiamen) Co., Ltd. 5,339,586.09 1,978,218.04
Notes Payable Sinopharm Holding Henan Co., Ltd. 4,804,061.33 -
Notes Payable Sinopharm Holding Xinjiang Special
Drugs Western Pharmaceutical Co.,
Ltd. 4,226,969.98 2,840,425.46
Notes Payable Sinopharm Group 3,360,257.39 15,665, 754. 04
Notes Payable Sinopharm Holding Hunan Co., Ltd. 3,296,556.25 769,724.44
Notes Payable Foshan Winteam Pharmaceutical
Group Ltd. 2,988,970.44 1,047,709.72
Notes Payable Main Luck Pharmaceutical 2,505,357.14 1,274,104.80
Notes Payable Sinopharm Holding Huaideju
(Xiamen) Pharmacy Co., Ltd. 2,400,044.48 4,755,780.00
Notes Payable China Otsuka Pharmaceutical Co.,
Ltd. 1,571,497.60 2,321,674.00
Notes Payable Sinopharm Holding Hulun Buir Co.,
Ltd. 1,278,836.38 -
Notes Payable Sinopharm Holding Ningxia Co., Ltd. 1,268,500.30 2,139,620.00
Notes Payable Sinopharm Jiankun (B eijing) Medicine
Co., Ltd. 1,213,920.00 1,911,680.00
Notes Payable Sinopharm Holding Dalian Co., Ltd. 1,180,305.76 1,269,329.00
216
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(2). Accounts Payable (Continued)
Item Relat ed Party 30 June 2021 31 December 2020
Notes Payable Sinopharm Holding Jinan Co., Ltd. 1,107,000.00 650,000.00
Notes Payable Sinopharm Holding Heilongjiang Co.,
Ltd. 1,031,283.29 -
Notes Payable Sinopharm Holding Lerentang Hebei
Pharmaceutical Co., Ltd. 913,177.02 1,777,689.35
Notes Payable Sinopharm Fengliaoxing (Fos han)
Pharmaceutical Drugs Co., Ltd. 865,606.40 715,196.92
Notes Payable Shanghai Shyndec Pharmaceutical
Marketing Co., Ltd. 743,698.80 267,514.80
Notes Payable Fosun Pharmaceutical Distribution
Jiangsu Co., Ltd. 740,537.68 754,075.83
Notes Payable Jinzhou A vanc Medicine Co., Ltd. 609,930.00 655,110.00
Notes Payable Sinopharm Holding Yancheng Co.,
Ltd. 563,801.29 967,264.56
Notes Payable Shenzhen Wanwei Medicine Trading
Co., Ltd. 521,432.00 597,769.76
Notes Payable Sinopharm Zhijun 471,834.29 636,206.80
Notes Payable Taiji Group Chongqing Lingling
Pharmaceutical Factory Co., Ltd 427,400.50 -
Notes Payable Shanghai Trans fusion Technology
Co., Ltd. 402,400.00 251,500.00
Notes Payable Sinopharm Zhonglian Pharmaceutical
Group Co., Ltd. 330,347.20 116,747.00
Notes Payable Sinopharm Wuhan Blood Products
Co., Ltd. 281,200.00 420,000.00
Notes Payable Wuhan Zhongsheng Jin
Biopharmac eutical Co., Ltd 265,512.00 -
Notes Payable Sinopharm Holding Bayannur Co.,
Ltd. 221,930.30 -
217
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(2). Accounts Payable (Continued)
Item Relat ed Party 30 June 2021 31 December 2020
Notes Payable Sinopharm Holding Quanzhou Co.,
Ltd. 212,549.38 1,347,279.74
Notes Payable Sinopharm Holding Anshan Co., Ltd. 199,777.75 63,415. 75
Notes Payable Sinopharm Group Rongsheng
Pharmaceutical Co., Ltd. 112,420.00 278,588.10
Notes Payable Sinopharm Holding Nanping New
Power Co., Ltd 97,439. 62 100,557.27
Notes Payable Sinopharm Wuhan Zhonglian Siyao
Pharmaceutical Co., Ltd. 50,000. 00 -
Notes Payable Sinopharm Holding Changsha Co.,
Ltd. 46,237. 84 29,765. 60
Notes Payable Sinopharm Yixin Pharmaceutical Co.,
Ltd. - 14,416, 290. 57
Notes Payable Sinopharm Lerentang Shijiaz huang
Medicine Co., Ltd. - 2,946,186.04
Notes Payable Sinopharm Holding Tianjin Co., Ltd. - 2,365,453.12
Notes Payable China Medical Devices Co., Ltd - 1,743,360.00
Notes Payable Sinopharm Group Shanxi Medical
Devices Co., Ltd. - 1,431,000.00
Notes Payable Sinopharm Holding Jinzhou Co., Ltd. - 1,222,139.83
Notes Payable Sinopharm Holding Linfen Ningle
Pharmaceutical Co., Ltd. - 564,116.00
Notes Payable Sinopharm Holding Shanxi Dajiuzhou
Medicine Co., Ltd. - 537,224.53
Notes Payable Sinopharm Holding Shanxi Jinzhong
Co., Ltd. - 102,211.00
Notes Payable Fujian Chentian Jinling
Pharmaceutical Co., Ltd. - 71,204. 00
218
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(2). Accounts Payable (Continued)
Item Relat ed Party 30 June 2021 31 December 2020
Other Payable Sinopharm Group 5,313,664.01 4,146,496.53
Other Payable National Pharmaceutical Group
Pharmaceutical Logistics Co., Ltd 4,715,402.44 2,825,718.21
Other Payable Zhenfang Zhang 4,322,499.97 3,919,999.95
Other Payable China Pharmaceutical Group
Shanghai Co., Ltd 1,660,431.38 3,619,450.06
Other Payable China Traditional Chinese Medicine
Co., Ltd 1,300,000.00 1,300,000.00
Other Payable Sinopharm Holding Zhihuiminsheng
(Tianjin) Pharmaceutical Co., Ltd. 518,400.00 165,906.00
Other Payable National Pharmaceutical Health
Online Co., Ltd 414,492.64 185,980.18
Other Payable Shanghai North Wing Guoda
Pharmaceutical Co., Ltd 286,498.20 364,905.28
Other Payable Sinopharm Holdings (Tianjin Binhai)
Pharmaceutical Co., Ltd 241,760.00 -
Other Payable Shanghai Tongyu Information
Technology Co., Ltd 180,338.49 249,892.49
Other Payable Sinopharm holding Hunan Wei'an
pharmacy chain Co., Ltd 104,625.76 104,626.65
Other Payable Sinopharm Holdings Beijing
Huahong co., Ltd. 104,156.84 -
Other Payable Sinopharm Holding Sub Mark eting
Cent er Co., Ltd. 37,817. 38 37,871. 38
Other Payable Zhijun Pingshan 25,458. 72 -
Other Payable Foshan Winteam Pharmaceutical
Group Ltd. 7,280.00 -
219
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(2). Accounts Payable (Continued)
Item Relat ed Party 30 June 2021 31 December 2020
Other Payable Sinopharm Group Chemical Reagent
Co., Ltd 6,980.00 -
Other Payable Jiangsu Wanbang Pharmacy
Marketing Co., Ltd. 2,800.00 -
Other Payable Fresenius Kabi Huarui
Pharmaceuticals Co., Ltd. 6.28 6.28
Other Payable Pingdingshan Pusheng
Pharmaceutical Co., Ltd - 515,857.96
Other Payable Sinopharm Holding Yangzhou Co.,
Ltd. - 372,571.40
Other Payable Fujian Chentian Jinling
Pharmaceutical Co., Ltd. - 50,000. 00
Other Payable Sinopharm Group Xinjiang Special
Drugs National Pharmaceutical Co.,
Ltd. 22,401.28
Other Payable Haiyan Zhang - 1,422.03
Other Payable Chengdu Institute of Biological
Products Co., Ltd. - 327.60
Other Payable Sinopharm Guangdong Global
Pharmaceutical Co., Ltd. - 126.63
Other Payable Shenzhen Wanwei Medicine Trading
Co., Ltd. - 123.46
220
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(2). Accounts Payable (Continued)
Item Relat ed Party 30 June 2021 31 December 2020
Cont ract liability Sinopharm lerentang Qinhuangdao
Pharmaceutical Co., Ltd 72,666. 90 97,625. 80
Cont ract liability Sinopharm Holding Shenyang Co.,
Ltd. 64,281. 72 64,395. 72
Cont ract liability Sinopharm Holding Yunnan Co., Ltd. 64,039. 40 186,666.45
Cont ract liability Sinopharm Group Xinjiang Special
Drugs National Pharmaceutical Co.,
Ltd. 50,924. 30 -
Cont ract liability Sinopharm Holding Qianxinan Co.,
Ltd 30,905. 31 -
Cont ract liability Sinopharm Holding Wuhu Co., Ltd 30,384. 00 30,384. 00
Cont ract liability Sinopharm lerentang Cangzhou
Pharmaceutical Co., Ltd 25,691. 00 25,691. 00
Cont ract liability Sinopharm Holding Hulun Buir Co.,
Ltd. 21,177. 25 21,177. 25
Cont ract liability Sinopharm Holding Gansu Co., Ltd 21,960. 00 21,960. 00
Cont ract liability Sinopharm Group Guizhou (Zunyi)
Medical Instrument Co., Ltd 5,743.36 -
Cont ract liability Sinopharm lerentang Shijiazhuang
medical management Co., Ltd 5,134.40 -
Cont ract liability Sinopharm Holding Guizhou medical
devic e Co., Ltd 2,929.38 1,140.71
Cont ract liability Sinopharm lerentang Tangshan
Pharmaceutical Co., Ltd 1,734.36 -
Cont ract liability Jiangmen Xinhui Jianfeng
Pharmaceutical Co., Ltd 1,368.00 -
Cont ract liability Sinopharm Holding Chongqing Co.,
Ltd 755.62 3,523.35
Cont ract liability Sinopharm Instrument Guizhou
Qiannan Co., Ltd 524.51 -
221
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
6. Amounts due from/to related parties (Continued)
(2). Accounts Payable (Continued)
Item Relat ed Party 30 June 2021 31 December 2020
Cont ract liability Sinopharm Holding Tongren Co., Ltd 438.00 -
Cont ract liability Sinopharm Holding Inner Mongolia
Co., Ltd. 83.60 83.60
Cont ract liability Sinopharm holding (S handong)
medical device Co., Ltd 64.00 -
Cont ract liability Sinopharm Holding Huai'an Co., Ltd 19.40 19.40
Cont ract liability Sinopharm Holding Nantong Co., Ltd - 1,074,470.38
Cont ract liability Qianda international trade (Shanghai)
Co., Ltd - 783,640.00
Cont ract liability Sinopharm Holding Anhui Co., Ltd. - 154,870.80
Cont ract liability Sinopharm Holding Nanjing Wende
Pharmaceutical Co., Ltd. - 98,901. 00
Cont ract liability Sinopharm Lerentang Medicine Co.,
Ltd. - 40,366. 72
Cont ract liability Sinopharm Holding Jilin Co., Ltd. - 23,017. 49
Cont ract liability Sinopharm Holding Shaanxi Co., Ltd - 14,791. 76
Cont ract liability Sinopharm lerentang Chengde
Pharmaceutical Co., Ltd - 10,976. 96
Cont ract liability Sinopharm lerentang Hengshui
Pharmaceutical Co., Ltd - 10,276. 41
Cont ract liability Sinopharm Holding Taizhou Co., Ltd. - 6,593.40
Cont ract liability Dongyuan Accord - 855.00
Cont ract liability Sinopharm Holding Jiangxi Co., Ltd. - 190.98
222
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Commitments of Related Party
Lease commitment
Rent-out
Relat ed Party 30 June 2021 31 December 2020
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd.
199,999.99 266,666.66
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company
Limited 85,085.99 187,187.99
Rent-in
Relat ed Party 30 June 2021 31 December 2020
Sinopharm Holding Yangzhou Co., Ltd. 16,794, 214. 38 19,560, 000. 00
Zhang Yechuan 8,910,988.61 5,777,181.67
Sinopharm Group Medicine Logistic Co., Ltd. 7,290,000.00 -
Shaoguan Wujiang District Muyang Medicine Information Consultant Co.,
Ltd. 7,208,388.45 7,717,215.87
Shenyang Pharmaceutical Co., Ltd. 7,142,857.14 2,976,190.55
Sinopharm Group 6,631,429.92 -
Lerentang Investment Group Co., Ltd. 5,617,201.82 10,178,669.70
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co.,
Ltd. 2,748,595.47 -
Guangxi Yifang Tianjiang Pharmaceutical Co., Ltd. 2,723,965.98 3,974,949.26
Xiong xinyuan 2,582,102.83 -
Guangdong Jiyuantang Development Co., Ltd. 1,990,209.48 3,180,113.86
Li Fang 1,906,800.00 2,179,200.00
Sinopharm Holding Beijing Co., Ltd. 1,557,142.84 123,809.52
Shenyang Shengdiou Trading Co., Ltd. 1,499,269.22 -
Beijing Sinopharm Tianyuan Real Estate & Property Management Co., Ltd. 1,385,714.26 1,628,571.40
Sinopharm Holding Shanxi Jincheng Co., Ltd 1,200,000.00 -
Wang Yang 936,917.10 -
Zhang Zhenfang 805,000.00 805,000.00
Nanjing Yuanguang Trading Co., Ltd. 750,000.00 571,488.75
223
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Commitments of Related Party (Continued)
Lease commitment (Continued)
Rent-in (Continued)
Relat ed Party 30 June 2021 31 December 2020
Taishan Xiangranhui Trade Co., Ltd. 479,468.57 843,949.00
Zhang Haiyan 451,530.48 537,244.90
Sinopharm Holding (China) Financing Lease Co., Ltd. 415,363.22 870,588.42
Sinopharm Xinjiang Pharmaceutical Co., Ltd. 388,571.43 777,142.86
Gu Jinhua 344,190.00 378,609.00
Gu Haiqun 342,774.31 446,873.35
Zhijun Pingshan 313,990.88 364,908.32
Zhang Guitang 240,285.59 -
Sinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co.,
Ltd. 216,191.74 -
Sinopharm Holding Xinjiang Xint e Karamay Pharmaceutical Co., Ltd. 215,968.52 -
Shanghai Baizhong Business Development (Group) Co., Ltd. 151,568.54 -
Southeast (Quanzhou) Biotechnology Pharmaceutical Co., Ltd. 118,025.28 -
Beijing Huafang Investment Co., Ltd. 91,428. 57 345,908.56
Hunan Mins hengtang Investment Co., Ltd. - 1,097,581.46
Shenzhen Jiufeng Investment Co., Ltd. - 166,666.67
Pu'er Songmao Medicine Group Co., Ltd. - 37,335.24
Taishan Qunkang Pharmacy Co., Ltd. - 11,258.41
224
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Others
Relat ed Party 30 June 2021 31 December 2020
Short-term Borrowing
Sinopharm Group Finance Co., Ltd. 581,796,571.46 14,338,732.53
Entrusted loan
CNP GC (1) 31,633,794.44 31,637,173.89
Jilin Provinc e Yihe Investment Consulting Co., Ltd. (2) 75,450,000.00 56,700,000.00
(1) CNPGC entrusted Sinopharm Group Finance Co., Ltd. with this borrowing to the Group. The entrusted borrowing includes
the principal of RMB31,600.00 thousand and the outstanding interest receivable of RMB33. 79 thousand.
(2) The loan is a bank loan entrusted by Jilin Yihe Investment Consulting Co., Ltd. to the group.
Other non-current liabilities
Sinopharm Group Co., Ltd. 35,061,743.31 35,061,743.31
Cash deposite within a related party
Sinopharm Group Finance Co., Ltd. 1,636,830.68 101,779,861.57
For the six months ended 30 June 2021, the annual interest rates of the above deposits are 0.35% to 1. 15%. (In year 2020,
the annual interest rates of the above deposits are 0. 35% to 1.89%.)
Lease liability
Sinopharm Holding Yangzhou Co., Ltd. 15,391,588.00
Shaoguan Wujiang District Muyang Medicine Information Consultant 6,252,122.18 6,628,838.10
Co., Ltd.
Lerentang Investment Group Co., Ltd. 5,489,599.52 6,112,542.74
Zhang Yechuan 4,527,961.17 5,201,907.68
Guangxi Yifang Tianjiang Pharmaceutical Co., Ltd. 3,243,616.53 3,434,525.25
Xiong Xinyuan 2,582,102.83 2,873,340.76
Guangdong Jiyuantang Development Co., Ltd. 1,743,569.88 3,085,854.50
Shenyang Shengdiou Trading Co., Ltd. 1,499,269.22 1,468,641.78
Sinopharm Holding Beijing Co., Ltd. 1,494,302.29 130,936.97
Beijing Sinopharm Tianyuan Real Estate & Property Management Co., 1,313,142.67
Ltd.
Li Fang 1,293,405.86
Wang Yang 936,917.10
Sinopharm Holding Shanxi Jincheng Co., Ltd. 587,475.03
Zhang Haiyan 427,589.17 503,526.40
Sinopharm Xinjiang Pharmaceutical Co., Ltd. 387,110.55 378,950.29
225
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Others (Continued)
Relat ed Party 30 June 2021 31 December 2020
Lease liability(Continued)
Gu Haiqun 331,772.12 427,942.87
Zhijun Pingshan 294,545.87 338,800.77
Zhang Guitang 228,947.93
Beijing Huafang Investment Co., Ltd. 216,830.68 336,640.65
Shanghai Baizhong Business
151,568.54 300,058.00
Development (Group) Co., Ltd.
Southeast (Quanzhou) Biotechnology 116,951.13
Pharmaceutical Co., Ltd.
Sinopharm Holding (China) Financing
91,512.93 388,839.95
Lease Co., Ltd.
Sinopharm Group 172,342.31
Pu'er Songmao Medicine Group Co.,
37,330.98
Ltd.
Total 48,601,901.20 31,821,020.00
226
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
XI Commitments and contingencies
1. Commitments
(1) Capital commitments
Capit al expenditures contracted for at the balance sheet date but not recognized in balance sheet are analyzed as
follows:
30 June 2021 31 December 2020
RMB‘0,000 RMB‘0,000
Buildings, machinery and equipment 42.16 42.16
2. Contingencies
As of the balance sheet date, there were no contingencies that the Group was required to disclose.
XII Other significant events
1. Segment reporting
Operating segments
For management purposes, the Group is organized into business units based on its products and services and has
three reportable operating segments as follows:
(1) The Head Office, whic h is mainly engaged in the investment and management of businesses;
(2) P harmaceutical distribution segment, which is mainly engaged in the distribution of medicine and pharmaceutical
products to customers;
(3) Retail pharmacy segment, which is the management of the operation of Guoda Pharmacy.
Management monitors the results of the Group’s operating segments separately for the purpose of mak ing decisions
about resource allocation and performance assessment. Segment performance is evaluated based on reportable
segment profit, which is measured consistently with the Group’s profit before tax.
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 pric es.
227
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
XII Other significant events (Continued)
1. Segment reporting (Continued)
Operating segments (Continued)
Operating segment information as at and for the semi year ended
Elimination between
Head Office Pharmaceutical distribution Pharmaceutical ret ail Total
segments
Principal operations income - 22,714,878,520.83 10,625,590,134.69 (499,204,175.96) 32,841,264,479.56
Principal cost of sales - (21,415,481,154.82) (8,237,771,652.36) 497,003,293.22 (29,156,249,513.96)
Income from investments in associates 157,696,473.52 (749,864.47) 749,788.76 - 157,696,397.81
Net profit 804,194,136.76 462,450,144.61 263,262,365.37 (621,912,192.25) 907,994,454.49
Total assets 14,935,672,415.11 25,483,335,796.44 16,344,255,324.13 (12,572,385,131.73) 44,190,878,403.95
Total liabilities (3,580,219,319.14) (19,600,657,390.32) (10,497,431,348.24) 6,975,557,587.13 (26,702,750,470.57)
228
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements
1. Accounts receivable
The accounts receivable by category are analyzed below:
30 June 2021 31 December 2020
Gross carrying amount Provision for bad debt Book value Gross carrying amount Provision for bad debt Book value
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Items for which provision for
bad debt is recognised
separately 25,150,432.16 3.58% (334,294.70) 1.33% 24,816,137.46 18,549,524.82 3.04% (334,294.70) 1.80% 18,215,230.12
Items for which provision for
bad debt is recognized by
group (credit risk
characteristics) 676,458,655.12 96.42% (1,664.00) - 676,456,991.12 591,360,071.01 96.96% - - 591,360,071.01
701,609,087.28 100.00% (335,958.70) 0.05% 701,273,128.58 609,909,595.83 100.00% (334,294.70) 0.05% 609,575,301.13
229
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements(Continued)
1. Accounts receivable (Continued)
At 30 June 2021, accounts receivable that are individually assessed for provisions are as follows:
Bad debt
Debt or’s name Carrying amount provision Rate Assessment for impairment
Receivables from subsidiaries Internal related parties, with lower-
of the Group 24,816,137.46 - - tier recovery risk
Debt or had mismanagement, subject
to serious financial difficulties, and
Client A
the expected recoverability is
323,044.50 (323,044.50) 100.00% very low
Debt or had mismanagement, subject
to serious financial difficulties, and
Client B
the expected recoverability is
11,250.20 (11,250.20) 100.00% very low
25,150,432.16 (334,294.70)
Provision for bad debts of accounts receivable according to the general model of expected credit loss:
30 June 2021
Estimated default Expected credit loss in
amount entire lifetime Expected credit loss rate
Within 1 year 676,425,237.12 - -
1 to 2 years 33,418.00 (1,664.00) 4.98%
676,458,655.12 (1,664.00) -
The accounts receivable for whic h the Company recognised provision for bad debts using the aging analysis method are
presented as follows:
30 June 2021
Within 1 year 701,241,374.58
1 to 2 years 33,418.00
2 to 3 years - - 334,294.70
- 701,609,087.28
230
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements(Continued)
1. Accounts receivable (Continued)
Bad debt provision for the current period as follows:
Increases Reversal
Write-off during Closing
Opening balance during the during the Other
the period balance
period period
Bad debt provision 334,294.70 1,664.00 - - - 335,958.70
As at 30 June 2021, the top five accounts receivable by customer are as follows:
% of the total accounts Bad debt provision
Amount receivable amount
Top 1 Account rec eivable 75,221,487.68 10.72% -
Top 2 Account rec eivable 40,139,214.96 5.72% -
Top 3 Account rec eivable 39,234,570.32 5.59% -
Top 4 Account rec eivable 24,895,974.53 3.55% -
Top 5 Account rec eivable 24,378,296.97 3.47% -
203,869,544.46 29.05% -
Accounts receivable derecognised due to trans fer of financial assets was as follows:
From January to June 2021, the Company factored a small portion of accounts receivable at amortised cost to financial
institutions. The amount of accounts receivable derecognised was RMB 26,097,254.38 (from January to June 2020:
RMB156,689,648.43), and the amount of loss recognised through Investment income was RMB 221,815.32 (from January
to June 2020: RMB 1,526, 968. 25).
231
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
2. Other receivables
30 June 2021 31 December 2020
Other receivables 3,467,427,719.16 3,562,309,346.07
Category of other receivables by nat ure is as follows:
Nature 30 June 2021 31 December 2020
Amounts due from subsidiaries 3,442,240,233.02 3,539,822,609.73
Receivable of equity transactions 8,980,000.00 8,980,000.00
Deposit 331,867.02 343,834.42
Others 71,367, 604. 27 68,533, 518. 66
3,522,919,704.31 3,617,679,962.81
Changes in bad debt provision for the 12-month expected credit losses and lifetime expected credit losses on other
receivables are as follows:
Stage 1 Stage 2 Stage 3
Bad debt Expected credit Entire lifetime expected Entire lifetime expected Total
losses over the credit losses(No credit credit losses(Credit
next 12 months impairment occurred) impairment occurred)
Balance at 1 January 2021
- 56,394.50 55,314,222.24 55,370,616.74
Balance at 1 January 2021
during the period
Provisions during the period
- 4,709.88 127,901.60 132,611.48
Reversal during the period - (11,243.07) - (11,243.07)
Balance at 30 June 2021 - 49,861.31 55,442,123.84 55,491,985.15
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
2. Other receivables (Continued)
The aging analysis of other receivables was as follows:
30 June 2021
Within 1 year 3,465,946,636.42
1 to 2 years 2,490,521.42
2 to 3 years 436,281.36
Over 3 years 54,046,265.11
Total 3,522,919,704.31
Bad debt provision for the current period as follows:
Increases Write-off
Opening Reversal during
during the during the Other Closing balance
balance the period
peried period
Bad debt
provision 55,370,616.74 132,611.48 (11,243.07) - - 55,491,985.15
As at 30 June 2021，the accumulat ed top five other receivables are analysed below:
% of total Bad debt
Nature Amount Age
amount provision
Sinopharm Guangzhou Entrusted borrowings 950,965,833.42 Within 1 year 26.99% -
Sinopharm Guangxi Entrusted borrowings 566,090,705.45 Within 1 year 16.07% -
South Pharma & Trade Entrusted borrowings 200,193,333.25 Within 1 year 5.68% -
Sinopharm Guangdong
Yuexing Entrusted borrowings 173,834,848.77 Within 1 year 4.93% -
Sinopharm Dongguan Entrusted borrowings 161,153,558.44 Within 1 year 4.57% -
2,052,238,279.33 58.24% -
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
3. Long-term equity investments
30 June 2021 31 December 2020
Bad debt Bad debt
Original value provision Carrying amount Original value provision Carrying amount
Investments in
subsidiaries
5,614,677,427.58 - 5,614,677,427.58 5,614,677,427.58 - 5,614,677,427.58
Investments in
associates 2,439,507,057.51 39,930,000.00 2,399,577,057.51 2,298,920,817.58 39,930,000.00 2,258,990,817.58
8,054,184,485.09 39,930,000.00 8,014,254,485.09 7,913,598,245.16 39,930,000.00 7,873,668,245.16
(1) Subsidiaries
Amount of provision
31 December 2020 Increases Decrease 30 June 2021 for impairment
Sinopharm Shenzhen
Jianmin 60,054,911.04 - - 60,054,911.04 -
Sinopharm Shenzhen
Material 15,450,875.93 - - 15,450,875.93 -
Sinopharm Shenzhen
Logistics 5,019,062.68 - - 5,019,062.68 -
Sinopharm Guangzhou 3,588,689,716.80 - - 3,588,689,716.80 -
Sinopharm Guangxi 525,456,951.07 - - 525,456,951.07 -
Sinopharm Yanfeng 38,207,800.00 - - 38,207,800.00 -
Guoda Pharmacy 1,361,800,110.06 - - 1,361,800,110.06 -
Accord Devices - - -
19,998,000.00 19,998,000.00
- -
5,614,677,427.58 - - 5,614,677,427.58 -
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(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)
(2) Associates
Changes in the period
Opening balance Profit or loss under the Adjustment in other Other changes in equity Cash dividend Closing balance Provision of
equity method comprehensive income or profits declared impairment
Main Luck Pharmaceutical 322,696,745.87 34,596,706.61 - - - 357,293,452.48 -
Zhijun Suzhou - - - - - - 39,930,000.00
Sinopharm Zhijun 425,557,825.11 28,056,303.69 - - - 453,614,128.80 -
Zhijun Trade 10,408,675.18 64,801.68 - - - 10,473,476.86 -
Zhijun Pingshan 176,566,795.90 25,603,869.60 - - - 202,170,665.50 -
Sinopharm Shy ndec 1,323,760,775.52 69,374,791.94 64,854.90 (460,868.29) (16,714,220.20) 1,376,025,333.87 -
2,258,990,817.58 157,696,473.52 64,854.90 (460,868.29) (16,714,220.20) 2,399,577,057.51 39,930,000.00
235
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
4. Operating revenue and cost
For the six months ended For the six months ended
30 June 2021 30 June 2020
Revenue Cost Revenue Cost
Principal
operations 2,062,334,204.15 1,982,274,379.60 1,750,454,957.66 1,679,162,910.91
Other
operations 16,035,919.21 9,145,932.20 22,032,405.90 10,401,151.33
2,078,370,123.36 1,991,420,311.80 1,772,487,363.56 1,689,564,062.24
For the six months ended
Classification 30 June 2021
By product
Include:
Pharmaceuticals 1,971,490,771.22
Medical devices and disposables 86,143,203.37
Diagnostic reagents 4,700,229.56
Other 11,402,530.41
By area
Include:
China 2,073,736,734.56
By major activities
Include:
Pharmaceutical distribution 2,062,334,204.15
Others 11,402,530.41
By contract duration
Include:
At a point in time 2,062,334,204.15
Overtime 11,402,530.41
2,073,736,734.56
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
4. Operating revenue and cost (Continued)
Information about the Company’s obligations is as follows:
(1) Revenue is recognised when control of the goods has transferred and payment is generally due within 30 to 210 days
from delivery;
(2) Revenue is recognised in the service duration and the payment is generally due within 30 to 210 days since the service
is completed.
Information related to the sales price allocated to the remaining obligations:
The amount of income corresponding to the obligation that has been signed but has not been fulfilled or has not yet fulfilled is
RMB 8,566,647.98, which is expected to be recognized within 1 year.
Revenue is as follows:
30 June 2021 30 June 2020
Revenue from contracts with customers 2,073,736,734.56 1,768,294,423.43
Rent als 4,633,388.80 4,192,940.13
2,078,370,123.36 1,772,487,363.56
5. Investment income
For the six months ended For the six months ended
30 June 2021 30 June 2020
Gain on long-term equity investments under the
cost method 619,290,387.90 612,502,685.91
Gain on long-term equity investments under the
equity method 157,696,473.52 133,549,495.38
Income from the derecognition of financial assets
measured at amortised cost measured at
amortised cost (221,815.32) (1,526,968.25)
Dividends from other financial assets 3,599,555.61 4,109,881.90
Others - 998,665.84
780,364,601.71 749,633,760.78
237
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Supplementary information to financial statements
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
XIV Supplementary information to financial statements
1. Schedule of non-recurring profit or loss
Amount for 30 June 2021 Illustration
Mainly probability of gain and
Gains and losses from disposal of non-current assets (802,029.11) losses from the end of lease
Government grants recognized in income statement for the
current year, except for those closely related to the ordinary Mainly probability of
operation of the Company which the Group enjoyed exemption and other
constantly according to the allotment standards or government grants for special
quantitative criteria of the country 35,363,341.68 purpose and finance Discount
The investment cost of an enterprise to acquire a subsidiary,
an associate and a joint venture, which is less than profits
derived from the fair value of the identifiable net assets of
the invested unit when investing 578,610.41
Reversal of bad debt provision for accounts receivable and
contract assets that were tested for impairment individually 88,994.76
Mainly probability of the non
operating income generat ed
from the write off of funds that
Non-operating income and expenses other than the aforesaid do not need to be paid in the
items 7,540,783.96 current period
Other 1,717,435.90
Less:Impact of income tax 12,962,326.01
Impact of non-controlling interests after tax 11,034,206.56
20,490,605.03
Basis for preparation of detailed list of non-recurring profit or loss items:
The Group's recognition of non-recurring profit or loss items is in accordance wit h the provisions of Explanatory
announc ement No. 1 on information disclosure by companies offering securities to the public - non-recurring profit or
loss.
238
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Appendix(Continued)
For the six months ended 30 June 2021
(All amounts in Renminbi “RMB” unless otherwise stated)
XIV Supplementary information to financial statements (Continued)
2. Return on equity (“ROE”) and earnings per share (“EPS”)
Basic EPS (RMB/Share)
Weighted
average
ROE (%)
Basic EPS Diluted EPS
(RMB/Share) (RMB/Share)
Net profit attributable to ordinary
shareholders of the parent 5.22% 1.73 1.73
Net profit after deducting non-recurring
profit or loss attributable to the
Company’s ordinary shareholders of
the parent 5.08% 1.68 1.68
239
