Section X Financial Reporting
Report of the Auditors
Consolidated financial statements for the six months ended 30 June 2022 haven’t
been audited.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED BALANCE SHEET
As at 30 June 2022
(Expressed in Renminbi Yuan)
ASSETS Note V 30 June 2022 31 December 2021
Current assets
Cash and bank balances 1 5,573,558,436.74 5,126,159,080.94
Notes receivable 2 634,263,913.50 680,196,380.57
Accounts receivable 3 19,066,131,973.48 15,964,603,345.91
Receivable financing 4 632,101,362.15 1,027,226,940.21
Advances to suppliers 5 384,131,138.51 520,930,545.31
Other receivables 6 624,860,452.74 718,089,129.10
Inventories 7 7,905,185,600.35 7,621,541,595.08
Contract Assets 8 28,169,112.57 29,061,159.52
Other current assets 9 119,092,606.71 160,607,355.66
Total current assets 34,967,494,596.75 31,848,415,532.30
Non-current assets
Long-term equity investments 10 2,471,624,418.24 2,459,832,546.74
Other equity instrument investment 11 62,488,312.99 62,488,312.99
Other non-current financial 12
assets 135,974,908.51 135,974,908.51
Investment properties 13 111,752,949.23 113,981,497.23
Fixed assets 14 835,798,833.09 868,626,258.43
Construction in progress 15 34,400,409.22 49,849,506.70
Right-of-use assets 16 2,628,310,313.99 2,575,240,340.00
Intangible assets 17 681,603,209.30 669,926,562.82
Goodwill 18 2,775,645,585.32 2,775,645,585.32
Long-term prepaid expenses 19 603,905,628.79 633,975,441.76
Deferred tax assets 20 184,991,505.33 129,740,169.77
Other non-current assets 21 474,990,153.81 459,985,769.24
Total non-current assets 11,001,486,227.82 10,935,266,899.51
Total assets 45,968,980,824.57 42,783,682,431.81
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 2022
(Expressed in Renminbi Yuan)
LIABILITIES AND EQUITY Note V 30 June 2022 31 December 2021
Current liabilities
Short-term borrowings 22 3,099,020,701.18 1,930,467,146.38
Notes payable 23 6,390,557,494.64 7,660,216,823.68
Accounts payable 24 11,329,463,911.07 9,057,718,968.14
Receipts in advance 25 18,140,667.15 19,289,567.44
Contract liabilities 26 446,665,021.01 431,303,231.37
Employee benefits payable 27 240,990,407.92 340,197,125.33
Tax payable 28 361,610,782.83 337,164,080.19
Other payables 29 2,248,815,946.18 1,714,746,986.46
Non-current liabilities due within one year 30 858,086,989.55 848,328,648.14
Other current liabilities 31 35,657,330.08 39,585,469.65
Total current liabilities 25,029,009,251.61 22,379,018,046.78
Non-current liabilities
Long-term borrowings 32 62,633,794.44 71,637,173.89
Lease liabilities 33 1,391,474,612.88 1,375,427,877.28
Long-term payables 34 6,938,189.00 6,938,189.00
Long-term employee benefits payable 35 1,156,000.00 1,202,000.00
Deferred income 36 83,551,934.15 86,917,051.78
Deferred tax liabilities 20
168,518,914.25 175,948,328.93
Other non-current liabilities 37 695,542,286.70 664,381,065.65
Total non-current liabilities 2,409,815,731.42 2,382,451,686.53
Total liabilities 27,438,824,983.03 24,761,469,733.31
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 2022
(Expressed in Renminbi Yuan)
LIABILITIES AND EQUITY Note V 30 June 2022 31 December 2021
Equity
Share capital 38 428,126,983.00 428,126,983.00
Capital surplus 39 4,371,823,310.21 4,371,802,107.43
Other comprehensive income 40 21,870,425.19 21,874,198.36
Surplus reserve 41 214,063,491.50 214,063,491.50
Retained earnings 42 10,306,410,995.34 9,889,071,272.21
Total equity attributable to owners of
the parent
15,342,295,205.24 14,924,938,052.50
Non-controlling interests 3,187,860,636.30 3,097,274,646.00
Total equity 18,530,155,841.54 18,022,212,698.50
Total liabilities and equity
45,968,980,824.57 42,783,682,431.81
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 2022
(Expressed in Renminbi Yuan)
For the six months For the six months
Note V
ended 30 June 2022 ended 30 June 2021
Operating revenue 43 36,128,910,049.98 33,163,091,887.39
Less: Operating costs 43 31,939,019,815.60 29,216,837,201.07
Taxes and surcharges 44 95,897,105.33 75,989,854.58
Selling expenses 45 2,486,484,440.79 2,307,485,529.77
Administrative expenses 46 509,456,947.82 492,536,936.71
Finance costs 47 111,202,147.99 107,243,003.15
Incling: Interest expense 142,860,549.18 147,057,897.99
Interest income 34,626,066.94 38,758,729.78
Add: Other incomes 48 44,158,835.01 47,249,616.26
Investment income 49 48,938,159.28 156,587,066.32
Incling: Investment income from associates
98,868,662.09 157,696,397.81
Income from the derecognition of financial
assets measured at amortised cost
(49,930,502.81) (7,039,046.60)
Credit impairment losses 50
(44,249,830.99) (28,664,985.44)
Impairment losses 51
(6,498,659.33) (416,915.26)
Gain on disposal of assets 52 3,192,821.77 (588,799.55)
Operating profits 1,032,390,918.19 1,137,165,344.44
Add: Non-operating income 53 4,356,528.39 12,493,320.44
Less: Non-operating expenses 54 2,191,998.74 3,237,951.35
Total profit 1,034,555,447.84 1,146,420,713.53
Less: Income tax expenses 55 239,786,355.07 238,426,259.04
Net profit 794,769,092.77 907,994,454.49
Net Profit from continuing operations 794,769,092.77 907,994,454.49
Net profit attributable to owners of the parent 674,215,912.93 741,445,013.25
Profit or loss of non-controlling interests 120,553,179.84 166,549,441.24
4
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED INCOME STATEMENT (Continued)
For the six months ended 30 June 2022
(Expressed in Renminbi Yuan)
For the six months ended For the six months ended
Note V
30 June 2022 30 June 2021
Other comprehensive income, net of tax (3,773.17) 64,854.90
Other comprehensive income, net of tax,
attributable to owners of the parent (3,773.17) 64,854.90
Other comprehensive income that will be
reclassified to profit or loss (3,773.17) 64,854.90
Other comprehensive income using the equity
method that will be reclassified to profit or loss
(3,773.17) 64,854.90
Total comprehensive income 794,765,319.60 908,059,309.39
Incl: Total comprehensive income
attributable to owners of the parent 674,212,139.76 741,509,868.15
Total comprehensive income
attributable to non-controlling interests 120,553,179.84 166,549,441.24
Earnings per share
Basic earnings per share 1.57 1.73
Diluted earnings per share 1.57 1.73
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 2022
(Expressed in Renminbi Yuan)
Attributable to owners of the parent
For the six months ended 30 June 2022 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 4,371,802,107.43 21,874,198.36 214,063,491.50 9,889,071,272.21 14,924,938,052.50 3,097,274,646.00 18,022,212,698.50
II. Balance at beginning of year 428,126,983.00 4,371,802,107.43 21,874,198.36 214,063,491.50 9,889,071,272.21 14,924,938,052.50 3,097,274,646.00 18,022,212,698.50
III. Changes for the year - 21,202.78 (3,773.17) - 417,339,723.13 417,357,152.74 90,585,990.30 507,943,143.04
(1) Total comprehensive income - - (3,773.17) - 674,215,912.93 674,212,139.76 120,553,179.84 794,765,319.60
(2) Owners’ contributions and
reduction in capital - 21,202.78 - - - 21,202.78 2,700,000.00 2,721,202.78
1. Capital contributions by owners - - - - - 2,700,000.00 2,700,000.00
2. Others - 21,202.78 - - - 21,202.78 - 21,202.78
(3) Profit distribution - - - - (256,876,189.80) (256,876,189.80) (32,667,189.54) (289,543,379.34)
1.Distribution to equity owners - - - - (256,876,189.80) (256,876,189.80) (32,667,189.54) (289,543,379.34)
IV. Balance at end of year 428,126,983.00 4,371,823,310.21 21,870,425.19 214,063,491.50 10,306,410,995.34 15,342,295,205.24 3,187,860,636.30 18,530,155,841.54
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 2022
(Expressed in Renminbi Yuan)
Attributable to owners of the parent
For the six months ended 30 June 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
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
7
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY(Continued)
For the six months ended 30 June 2022
(Expressed in Renminbi Yuan)
Note V For the six months ended For the six months
30 June 2022 ended 30 June 2021
1.CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from sales of good and the
rendering of services 36,667,060,800.89 32,800,434,055.12
Receipts of taxes and surcharges refunds 7,086,718.77 9,380,253.27
Other cash receipts relating to operating activities 56 293,598,578.92 368,590,875.46
Total cash inflows from operating activities 36,967,746,098.58 33,178,405,183.85
Cash payments for goods and services 32,450,267,035.88 28,541,885,459.35
Cash payments to and on behalf of employees 1,814,169,897.07 1,708,255,657.44
Payments of all types of taxes and surcharges 950,560,063.59 766,110,586.13
Other cash payments relating to operating
56 711,085,042.87 932,780,197.36
activities
Total cash outflows from operating activities 35,926,082,039.41 31,949,031,900.28
Net cash flows from operating activities 57 1,041,664,059.17 1,229,373,283.57
2.CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments - 2,997,441.73
Cash receipts from returns on investments 70,380,000.00 22,643,935.31
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets 427,817.93 537,887.38
Other cash receipts relating to investing activities 56 - 54,984.60
Total cash inflows from investing activities
70,807,817.93 26,234,249.02
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 2022
(Expressed in Renminbi Yuan)
For the six months ended For the six months
Note V
30 June 2022 ended 30 June 2021
2.CASH FLOWS FROM INVESTING ACTIVITIES (Continued)
Cash payments to acquire fixed assets, intangible
assets and other long-term assets 145,135,483.28 145,820,319.98
Cash payments for investments 41,189,363.04 70,724,113.00
Net cash payments for acquisition of subsidiaries
and other business units - 100,950,637.41
Total cash outflows from investing activities 186,324,846.32 317,495,070.39
Net cash flows from investing activities (115,517,028.39) (291,260,821.37)
3.CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others 2,700,000.00 15,680,000.00
Incl: Cash receipts from capital contributions from
non-controlling interests of subsidiaries 2,700,000.00 15,680,000.00
Cash receipts from borrowings 1,241,724,044.08 915,684,894.52
Other cash receipts relating to financing activities 56 471,834,276.96 104,090,555.62
Total cash inflows from financing activities 1,716,258,321.04 1,035,455,450.14
Cash repayments for debts 965,274,913.52 511,076,477.58
Cash payments for distribution of dividends or
profit and interest expenses 420,470,285.22 492,345,229.08
Incl: Dividends or profit paid to non-controlling
shareholders of subsidiaries 32,667,189.54 22,846,959.82
Other cash payments relating to financing
56 710,226,995.71 838,045,248.87
activities
Total cash outflows from financing activities 2,095,972,194.45 1,841,466,955.53
Net cash flows from financing activities (379,713,873.41) (806,011,505.39)
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)
Note V For the six months For the six months
ended 30 June 2022 ended 30 June 2021
4.EFFECT OF FOREIGN EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS (1,195,457.09) 392,002.63
5.NET INCREASE/ DECREASE IN CASH AND CASH 57
EQUIVALENTS 545,237,700.28 132,492,959.44
Add: Cash and cash equivalents at beginning of the year 4,733,512,222.35 5,405,113,257.99
6.CASH AND CASH EQUIVALENTS AT END OF YEAR 57
5,278,749,922.63 5,537,606,217.43
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 2022
(Expressed in Renminbi Yuan)
ASSETS Note XIV 30 June 2022 31 December 2021
Current assets
Cash and bank balances 3,662,982,819.92 3,098,512,437.04
Notes receivable 21,616,001.28 12,015,516.75
Accounts receivable 1 548,802,561.84 592,400,308.87
Receivables financing 5,928,782.68 -
Advances to suppliers 4,017,222.47 11,762,344.40
Other receivables 2 4,612,252,981.71 5,003,805,208.01
Inventories 190,502,982.26 226,490,178.26
Contract Assets 180,503.66 139,021.45
Other current assets 39,482.38 39,482.38
Total current assets 9,046,323,338.20 8,945,164,497.16
Non-current assets
Long-term equity investments 3 8,058,344,778.15 8,044,896,142.86
Other non-current financial assets 135,974,908.51 135,974,908.51
Investment properties 948,332.68 951,035.32
Fixed assets 13,407,637.52 12,824,750.51
Right-of-use assets 3,448,407.64 4,010,087.19
Intangible assets 5,247,419.44 5,682,864.94
Long-term prepaid expenses
5,593,368.23 6,438,007.85
Deferred tax assets 10,284,646.53 10,017,097.43
Other non-current assets 46,221,235.75 26,652,335.10
Total non-current assets 8,279,470,734.45 8,247,447,229.71
Total assets 17,325,794,072.65 17,192,611,726.87
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 2022
(Expressed in Renminbi Yuan)
LIABILITIES AND SHAREHOLDERS’
30 June 2022 31 December 2021
EQUITY
Current liabilities
Short-term borrowings 633,314,095.64 555,138,734.59
Notes payable 472,816,227.54 596,268,853.45
Accounts payable 467,416,626.20 480,059,192.74
Contract liabilities 5,491,416.33 3,231,968.16
Employee benefits payable 33,160,269.44 36,339,296.20
Tax payables 16,372,068.06 14,768,716.45
Other payables 3,902,656,317.48 3,832,642,249.25
Non-current liabilities due within one year 1,194,517.59 1,112,137.32
Other current liabilities 993,932.14 837,570.27
Total current liabilities 5,533,415,470.42 5,520,398,718.43
Non-current liabilities
Long-term borrowings 31,633,794.44 31,637,173.89
Lease liabilities
2,715,432.43 3,343,830.66
Long-term payables 800,000.00 800,000.00
Deferred income 252,812.52 392,720.10
Other non-current liabilities 40,499,324.62 26,986,064.76
Total non-current liabilities 75,901,364.01 63,159,789.41
Total liabilities 5,609,316,834.43 5,583,558,507.84
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 2022
(Expressed in Renminbi Yuan)
LIABILITIES AND SHAREHOLDERS’
30 June 2022 31 December 2021
EQUITY
Shareholders’ equity
Share capital 428,126,983.00 428,126,983.00
Capital surplus 4,467,310,688.08 4,467,289,485.30
Other comprehensive income （90,613.57） （86,840.40）
Surplus reserve 214,063,491.50 214,063,491.50
Retained earnings 6,607,066,689.21 6,499,660,099.63
Total shareholders’ equity 11,716,477,238.22 11,609,053,219.03
Total liabilities and shareholders’ equity 17,325,794,072.65 17,192,611,726.87
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 2022
(Expressed in Renminbi Yuan)
For the six months For the six months
Note XIV
ended 30 June 2022 ended 30 June 2021
Operating revenue 4 1,980,514,298.33 2,078,370,123.36
Less: Operating costs 4 1,910,062,248.84 1,991,420,311.80
Taxes and surcharges 2,313,767.23 2,488,284.74
Selling expenses 23,051,891.99 35,959,501.73
Administrative expenses 47,471,017.05 46,619,035.09
Finance costs (63,606,725.90) (55,486,414.78)
Incl: Interest expense 29,325,391.91 27,864,903.28
Interest income 94,834,264.79 83,409,776.86
Add: Other incomes 610,612.91 1,931,159.58
Investment income 5 317,124,556.93 780,364,601.71
Incl: Investment income from associates 100,525,425.88 157,696,473.52
Income from the derecognition of
financial assets measured at
amortised cost (1,781,142.79) (221,815.32)
Credit impairment losses 702,918.95 (123,032.41)
Impairment losses (1,174,444.77) (281,770.77)
Gain on disposal of assets 68,293.81 80,996.38
Operating profits 378,554,036.95 839,341,359.27
Add: Non-operating income 5,834.26 408,885.12
Less: Non-operating expenses 138,036.55 -
Total profit 378,421,834.66 839,750,244.39
Less: Income tax expenses 14,139,055.28 15,144,476.73
Net profit 364,282,779.38 824,605,767.66
Profit or loss from continuing operations 364,282,779.38 824,605,767.66
Other comprehensive income, net of tax (3,773.17) 64,854.90
Other comprehensive income that will be reclassified
to profit or loss (3,773.17) 64,854.90
Other comprehensive income using the equity
method that will be reclassified to profit or loss (3,773.17) 64,854.90
Total comprehensive income 364,279,006.21 824,670,622.56
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 2022
(Expressed in Renminbi Yuan)
Other comprehensive
For the six months ended 30 June 2022 Share capital Capital surplus Surplus reserve Retained earnings Total equity
income
I. Balance at end of prior year 428,126,983.00 4,467,289,485.30 (86,840.40) 214,063,491.50 6,499,660,099.63 11,609,053,219.03
II. Changes for the year - 21,202.78 (3,773.17) - 107,406,589.58 107,424,019.19
(1) Total comprehensive income - - (3,773.17) - 364,282,779.38 364,279,006.21
(2) Owners’ contributions and reduction in capital - 21,202.78 - - - 21,202.78
1.Others - 21,202.78 - - - 21,202.78
(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 4,467,310,688.08 (90,613.57) 214,063,491.50 6,607,066,689.21 11,716,477,238.22
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 2022
(Expressed in Renminbi Yuan)
Other comprehensive
For the six months ended 30 June 2021 Share capital Capital 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
16
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY CASH FLOW STATEMENT
For the six months ended 30 June 2022
(Expressed in Renminbi Yuan)
For the six months For the six months
ended 30 June 2022 ended 30 June 2021
1.CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from sales of good and the
rendering of services 2,175,090,561.10 2,051,451,080.04
Other cash receipts relating to operating activities 26,226,243.98 31,548,087.03
Total cash inflows from operating activities 2,201,316,805.08 2,082,999,167.07
Cash payments for goods and services 2,062,445,434.60 1,882,952,590.62
Cash payments to and on behalf of employees 59,034,810.39 61,431,053.37
Payments of all types of taxes and surcharges 33,509,806.69 36,319,473.82
Other cash payments relating to operating
activities 9,051,195.66 11,443,446.22
Total cash outflows from operating activities 2,164,041,247.34 1,992,146,564.03
Net cash flows from operating activities 37,275,557.74 90,852,603.04
2. CASH FLOWS FROM INVESTING ACTIVITIES
Cash receipts from returns of investments - 2,997,441.73
Cash receipts from returns on investments 135,273,790.51 214,065,210.12
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets 119,999.00 339,163.00
Other cash receipts relating to investing activities 1,658,673,796.47 2,324,825,373.52
Total cash inflows from investing activities 1,794,067,585.98 2,542,227,188.37
Cash payments for acquisition of fixed assets,
intangible assets and other long-term assets 1,961,637.93 2,302,398.23
Other cash payments relating to investing
activities 1,172,734,389.30 2,155,040,000.00
Total cash outflows from investing activities 1,174,696,027.23 2,157,342,398.23
Net cash flows from investing activities 619,371,558.75 384,884,790.14
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 2022
(Expressed in Renminbi Yuan)
For the six months For the six months
ended 30 June 2022 ended 30 June 2021
3. CASH FLOWS FROM FINANCING ACTIVITIES
Cash receipts from borrowings 253,374,494.30 280,000,000.00
Other cash receipts relating to financing activities 25,607,545,958.40 18,653,623,031.33
Total cash inflows from financing activities 25,860,920,452.70 18,933,623,031.33
Cash repayments for debts 280,000,000.00 30,164,821.52
Cash payments for distribution of dividends or
profit and interest expenses 283,891,846.04 363,151,913.01
Other cash receipts relating to financing activities 25,388,009,883.18 18,673,121,608.99
Total cash outflows from financing activities 25,951,901,729.22 19,066,438,343.52
Net cash flows from financing activities (90,981,276.52) (132,815,312.19)
4.EFFECT OF FOREIGN EXCHANGE RATE
CHANGES ON CASH AND CASH
EQUIVALENTS (1,195,457.09) 392,002.63
5. NET INCREASE IN CASH AND CASH
EQUIVALENTS 564,470,382.88 343,314,083.62
Add: Cash and cash equivalents at beginning of
the year 3,098,512,437.04 3,020,909,473.71
6. CASH AND CASH EQUIVALENTS
AT END OF YEAR 3,662,982,819.92 3,364,223,557.33
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 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
I Profile of the Company
(1) Historical development and basic information
As approved by the People’s Government of Shenzhen (SFBF (1993) No.356), China National Accord
Medicines Corporation Ltd. (hereinafter referred to as the “the Company”), formerly known as Shenzhen
Health Mineral Water Corp., Ltd., was registered as a joint stock liability limited company on 1 February
1993 through stock transformation. In March 1993, with the approval from the Shenzhen Branch of the
People’s Bank of China, the Company issued 30 million A shares (including 16.50 million public shares,
3.50 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 2022
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
For the six months ended 30 June 2022
(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 listed on 5
January 2017. Afterwards, the total number of shares of the Company increased to 428,126,983.
As of 30 June 2022, 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, biochemical drugs, biological products
(including vaccines and in vitro diagnostic reagents psychotropic drugs and preparations, narcotic drugs,
toxic drugs for medical use, protein assimilation preparation and peptide hormones; 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
For the six months ended 30 June 2022
(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 30 August 2022.
(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
For the six months ended 30 June 2022
(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 2022 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 2022 and the operating results, cash flows and other
information for the six months ended 30 June 2022 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
For the six months ended 30 June 2022
(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 value 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
For the six months ended 30 June 2022
(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
For the six months ended 30 June 2022
(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
For the six months ended 30 June 2022
(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 recognition 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 fair
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 transaction 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
For the six months ended 30 June 2022
(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
For the six months ended 30 June 2022
(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 liabilities 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 recognised 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
For the six months ended 30 June 2022
(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 recognition.
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.
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
For the six months ended 30 June 2022
(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) continues 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
For the six months ended 30 June 2022
(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
For the six months ended 30 June 2022
(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 contract, 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
For the six months ended 30 June 2022
(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 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. 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
For the six months ended 30 June 2022
(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
For the six months ended 30 June 2022
(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 0% 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
For the six months ended 30 June 2022
(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 20-35 years 3-5% 2.71-4.85%
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
For the six months ended 30 June 2022
(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 and constructions, machinery and
equipment, vehicles, office equipments and other assets such as land use rights.
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
For the six months ended 30 June 2022
(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
For the six months ended 30 June 2022
(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 procure
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.
Expenditure for investigation, evaluation and selection of production process and new drug researches
is recognised in profit or loss in the period in which it is incurred. Expenditure on the designation,
measurement of the final utilization of the production process and new drugs before mass production is
capitalised only if all of the following conditions are satisfied:
(1) development of the production process and new drugs has been fully demonstrated by the
technical team;
(2) management has approved the budget of drug production development and new drugs;
(3) market research analysis suggests that the products produced by the new production technology
are able to be promoted;
(4) adequate technical, financial and other resources to complete the development and the ability to use
or sell the intangible asset;
(5) the expenditure attributable to the intangible asset during its development phase can be reliably
measured.
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 for its intended
use.
39
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
(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.
40
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(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.
41
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(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 shall 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.
42
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(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.
43
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(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.
44
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(30) Share-based payments (Continued)
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 vesting 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.
45
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(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 customer 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.
46
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(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 warranty 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.
47
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(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.
48
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(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.
49
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(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.
50
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(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.
51
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(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) 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.
52
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(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 for
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.
53
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(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.
54
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(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 prepayment 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.
55
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(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. 13/14/15/16/17.
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.
56
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(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.
57
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(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 rate
based on its own circumstances, underlying assets, lease terms and amounts of lease liabilities to
determine the applicable incremental borrowing rate.
58
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(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) 0%, 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 2011, the Urumqi Head Office, Changji Branch and Karamay Branch of Sinopharm Holding
Xinjiang New & Special Medicines Chain Store Co., Ltd. (“Xinjiang New & Special Medicines”),
Ningxia Guoda Pharmacy Chain Co., Ltd. (“Guoda Ningxia”) and Sinopharm Holding Guoda
Drugstore Guangxi Chain Co., Ltd. (“Guoda Guangxi”), subsidiaries of the Company, were
approved to enjoy a tax concession for Western Development at a reduced CIT rate of 15%.
According to the Circular of the Ministry of Finance, the State Administration of Taxation, the
General Administration of Customs on Issues Concerning Tax Policies for the Further
Development of the Western Regions (Cai shui [2011] No.58) and the Announcement on the
continuation of the income tax policy for the enterprise in Western Region Development (Cai
Zheng Bu [2020] No.23), enterprises could enjoy a reduced CIT rate of 15% from 1 January 2011
to 31 December 2030.
In 2014, the Company’s subsidiary, Sinopharm Guangxi, Sinopharm Holding Guangxi Logistics
Co., Ltd. (“Sinopharm Guangxi Logistics”), Sinopharm Holding Liuzhou Co., Ltd. (“Sinopharm
Liuzhou”) and Sinopharm Holding Beihai Co., Ltd. (“Sinopharm Beihai”) were approved to enjoy a
tax concession for Western Development at a reduced CIT rate of 15%. According to the Circular
of the Ministry of Finance, the State Administration of Taxation, the General Administration of
Customs on Issues Concerning Tax Policies for the Further Development of the Western Regions
(Cai shui [2011] No.58) and the Announcement on the continuation of the income tax policy for the
enterprise in Western Region Development (Cai Zheng Bu [2020] No.23), enterprises above could
enjoy a reduced CIT for Western Regions from 1 January 2014 to 31 December 2030.
59
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
IV Taxation (Continued)
2. Tax preferences(Continued)
In 2015, subsidiaries of the Company, including Sinopharm Holding Guilin Co., Ltd. (“Sinopharm
Guilin”), Sinopharm Holding Guigang Co., Ltd. (“Sinopharm Guigang”), Sinopharm Holding Yulin
Co., Ltd. (“Sinopharm Yulin”), Sinopharm Holding Baise Co., Ltd. (“Sinopharm Baise”) and
Sinopharm Holding Wuzhou Co., Ltd. (“Sinopharm Wuzhou”), were approved to enjoy a tax
concession for Western Development at a reduced CIT rate of 15%. According to the Circular of
the Ministry of Finance, the State Administration of Taxation, the General Administration of
Customs on Issues Concerning Tax Policies for the Further Development of the Western Regions
(Cai shui [2011] No.58) and the Announcement on the Continuation of the Income Tax Policy for
the Enterprise in Western Region Development (Cai Zheng Bu [2020] No.23), the applicable period
is from 1 January 2015 to 31 December 2030.
In 2017, according to Cai Shui [2011] No.58 and the Announcement on the Continuation of the
Income Tax Policy for the Enterprise in Western Region Development (Cai Zheng Bu [2020]
No.23), Sinopharm holding Guoda pharmacy Inner Mongolia Co., Ltd. (hereinafter referred to as
"Guoda Inner Mongolia"), Sinopharm holding Guoda pharmacy Hulunbeier Co., Ltd. (hereinafter
referred to as "Guoda Hulunbeier"), Sinopharm holding Guoda pharmacy Bayannaoer Co., Ltd.
(hereinafter referred to as "Guoda Bayannaoer"), Inner Mongolia Guoda Pharmaceutical Co., Ltd
could enjoy a reduced CIT rate of 15% from 1 January 2017 to 31 December 2030.
In 2019, according to Cai Shui [2011] No.58 and the Announcement on the Continuation of the
Income Tax Policy for the Enterprise in Western Region Development (Cai Zheng Bu [2020]
No.23), Sinopharm Holding Qinzhou Co., Ltd. (“Sinopharm Qinzhou”), Sinopharm Holding Hezhou
Co., Ltd. (“Sinopharm Hezhou”), Sinopharm Holding Hechi Co., Ltd. (“Sinopharm Hechi”), Guoda
Pharmacy (Pu’er) Songmao Co., Ltd. (“Guoda Pu’er”) could enjoy a reduced CIT rate of 15% from
1 January 2019 to 31 December 2030.
In 2021, according to Cai Shui [2011] No.58 and the Announcement on the Continuation of the
Income Tax Policy for the Enterprise in Western Region Development (Cai Zheng Bu [2020]
No.23), Yunnan Guoda Disheng Pharmacy Chain Co., Ltd. (“Disheng Pharmacy Chain”), Yunnan
Guoda Disheng Medicine Co., Ltd. ("Disheng Medicine"), Sinopharm Holding Medical Supply
Chain Service (Guangxi) Co., Ltd. could enjoy a reduced CIT rate of 15% from 1 January 2021 to
31 December 2030.
In 2022, according to Cai Shui [2011] No.58 and the Announcement on the Continuation of the
Income Tax Policy for the Enterprise in Western Region Development (Cai Zheng Bu [2020]
No.23), Inner Mongolia Chengda Fangyuan Pharmaceutical Co., Ltd. (hereinafter referred to as
"Inner Mongolia Chengda pharmaceutical"), Inner Mongolia Chengda Fangyuan pharmaceutical
chain Co., Ltd. (hereinafter referred to as "Inner Mongolia Chengda chain") could enjoy a reduced
CIT rate of 15% from 1 January 2022 to 31 December 2030.
60
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
IV Taxation (Continued)
2. Tax preferences(Continued)
In 2022, 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 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 Industrial and Commercial
Households ([2021] No.12), subsidiaries of the Company listed below qualified for the conditions of
small low-profit enterprises, which the 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 of 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 of 25%, 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 Sinopharm Holding Guigang Pharmacy Co., Ltd. (“Sinopharm Guigang Pharmacy”),
Shanghai Guoda Dongsheng Pharmacy Co., Ltd. (“Shanghai Dongsheng”), Shanghai Guoda
Ruijing Pharmacy Co., Ltd. (“Shanghai Ruijing”), Sinopharm Holding Guoda Pharmacy Ulanqab
Co., Ltd. (“Guoda Ulanqab”), Shanghai Guoda Dongxin Pharmacy Co., Ltd. (“Shanghai Dongxin”),
Shanghai Guoda Shanghong Qibao Pharmacy Co., Ltd. (“Shanghai Shanghong”), Shanghai
Guodong Traditional Chinese Medicine Clinic Co., Ltd. (“Shanghai Guodong”), Sinopharm Guoda
Yongsheng Pharmacy (Shanghai) Co., Ltd. (“Guoda Yongsheng”), Guoda Pharmacy Manchuria
Co., Ltd.(“Guoda Manchuria”), Zhejiang Sinopharm Pharmacy Dongshan Pharmacy Co., Ltd.
(“Zhejiang Dongshan”), Sinopharm Holding Guoda Pharmacy Guangzhou Chain Co., Ltd. (“Guoda
Guangzhou”), Taishan Sinopharm Holding Guoda Qunkang Pharmacy Chain Store Co., Ltd.
(“Guoda Taishan”), Guoda Pharmacy (Rizhao) Co., Ltd. (“Guoda Rizhao”), Sinopharm Holding
Guoda Pharmacy Hulun Buir Co., Ltd. (“Guoda Hulun Buir”), Sinopharm Holding Guoda Pharmacy
Bayannur Co., Ltd. (“Guoda Bayannur”), Sinopharm Holding Baiyi Pharmacy Guangxi Co., Ltd.
(“Baiyi Pharmacy”), Sinopharm Accord (Guangzhou) Medicine Co., Ltd.(“Guangzhou Medicine”),
Guangxi Guoda Pharmaceutical Consulting Chain Co., Ltd. (“Guangxi Consulting”), Liaoning
Guoda Health Pharmacy Co., Ltd. (“Liaoning Health Pharmacy”), Liaoning Huludao Guoda
Pharmacy Co., Ltd. (“Liaoning Huludao”), Changzhi Wanmin Drug Store Co., Ltd. (“Changzhi
Wanmin”), Shanxi Guoda Wanmin Chain Clinic Management Co., Ltd. (“Wanmin Chain”), Guoda
Wanmin Huimin Kangwei Pharmacy Lvliang Co., Ltd. (“Huimin Lvliang”), Shanghai Fumei Xuhui
Pharmacy Co., Ltd. (“Fumei Xuhui”), Shanghai Pudong Yanghetang Traditional Chinese Medicine
Clinic Co., Ltd. (“Pudong Yanghetang”), Yanji Xianghe Medicine Co., Ltd. (“Yanji Xianghe”), Hebei
Chengda Fangyuan Medicine Chain Co., Ltd. (“Hebei Chengda Fangyuan”), Shandong Chengda
Fangyuan Medicine Chain Co., Ltd. (“Shandong Chengda Fangyuan”), Liaoning Chengda
Fangyuan Technical Training School, and Dalian Zhengda Pharmaceutical Co., Ltd. (“Dalian
Zhengda”), etc.
61
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements
1. Cash and bank balances
30 June 2022 31 December 2021
Cash on hand
8,343,211.00 4,642,730.62
Cash at banks
5,270,406,711.63 4,728,869,491.73
Other monetary funds (Note 1) 294,808,514.11 392,646,858.59
5,573,558,436.74 5,126,159,080.94
Note 1: Other monetary funds at 30 June 2022 include: Deposits for bank acceptance bills RMB266,643,490.23 (31
December 2021: RMB351,801,571.62), Concessionary reserve funds (medical reserve funds) RMB68,893.25 (31
December 2021: RMB11,456,766.10), and other restricted deposits RMB28,096,130.63 (31 December 2021:
RMB29,388,520.87).
As at 30 June 2022 and 31 December 2021, the Group has no cash and bank balances deposited abroad.
Interest income is earned on bank demand deposits at the bank demand deposit rate. Short-term deposits are placed
for periods ranging from one to six months, depending on the Group's cash requirements, and earn interest income at
the corresponding bank term deposit rates.
2. Notes receivable
The notes receivable by category
30 June 2022 31 December 2021
Bank acceptance bills 16,250,599.96 32,490,612.49
Commercial acceptance bills 618,013,313.54 647,705,768.08
634,263,913.50 680,196,380.57
62
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
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 by
group 634,263,913.50 100.00% - - 634,263,913.50 680,196,380.57 100.00% - - 680,196,380.57
63
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
2. Notes receivable(Continued)
Receivables financing endorsed or discounted by the Group to other parties which were not yet due at 30 June 2022 are
as follows:
30 June 2022
Derecognised Not derecognised
Bank acceptance bills - 11,080,505.71
64
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
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 1,490,397,598.31 7.75% (80,841,093.80) 5.42% 1,409,556,504.51 1,154,059,084.62 7.17% (78,449,701.36) 6.80% 1,075,609,383.26
Items for which
provision for bad
debt is recognized
by group 17,747,741,730.74 92.25% (91,166,261.77) 0.51% 17,656,575,468.97 14,941,966,625.52 92.83% (52,972,662.87) 0.35% 14,888,993,962.65
19,238,139,329.05 100.00% (172,007,355.57) 0.89% 19,066,131,973.48 16,096,025,710.14 100.00% (131,422,364.23) 0.82% 15,964,603,345.91
65
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022
Bad debt
Carrying amount provision Proportion Assessment for impairment
Receivable of
medical The receivable of medical insurance has lower-
insurance 937,864,091.05 (7,467,129.48) 0.80% tier default risk.
Debtor had irregular operations of subject to
serious financial difficulties and related to
multiple lawsuits, is with lower-tier
Client A 49,805,927.06 (48,809,913.19) 98.00% recoverability.
Debtor had irregular operations of subject to
serious financial difficulties and related to
multiple lawsuits, is with lower-tier
Client B 11,559,178.29 (11,559,178.29) 100.00% recoverability.
Debtor 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 4,356,479.10 (4,356,479.10) 100.00% restructuring.
Part of the receivable takes longer than usual
Others 486,811,922.81 (8,648,393.74) 1.78% to recover, and has risk of recoverability.
1,490,397,598.31 (80,841,093.80) -
Provision for bad debts by portfolio:
30 June 2022
Carrying amount Bad debt provision Accrual proportion
Combination by credit risk
characteristics 17,747,741,730.74 (91,166,261.77) 0.51%
Provision for bad debts of accounts receivable according to the general model of expected credit loss
30 June 2022
Estimated default amount Expected credit loss in entire Expected credit loss rate
lifetime
Within 1 year 17,105,157,672.43 (42,384,841.44) 0.25%
1 to 2 years 589,640,708.69 (35,101,869.57) 5.95%
2 to 3 years 43,427,304.96 (9,647,875.31) 22.22%
Over 3 years 9,516,044.66 (4,031,675.45) 42.37%
17,747,741,730.74 (91,166,261.77) 0.51%
66
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022
Within 1 year 18,562,621,528.82
1 to 2 years 594,968,275.47
2 to 3 years 45,526,410.01
Over 3 years 35,023,114.75
19,238,139,329.05
(2) Changes in bad debt provision, recovery or reverse
Bad debt provision for the current period
Amount changes in current period
Opening balance Increases in Closing balance
Increases Reversal write-off
merger
Accounts
receivable bad
debt provision (131,422,364.23) (52,207,303.59) 11,342,407.45 279,904.80 - (172,007,355.57)
67
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 279,904.80
(4) The top five accounts receivable analysed by customer
% of the total accounts
Amount receivable Bad debt provision amount
Top 1 Account receivable 283,938,368.98 1.48% (5,053,456.79)
Top 2 Account receivable 214,102,036.61 1.11% (3,257,775.75)
Top 3 Account receivable 146,911,017.75 0.76% (2,922,938.72)
Top 4 Account receivable 133,490,600.58 0.69% (1,278,035.22)
Top 5 Account receivable 131,400,843.37 0.68% (119,932.90)
909,842,867.29 4.72% (12,632,139.38)
(5) Accounts receivable derecognized due to the financial assets transferred
From January to June 2022, the Group factored a small portion of accounts receivable at amortised cost to financial
institutions. The amount of accounts receivable derecognised was RMB2,958,736,010.02(January to June 2021:
RMB1,045,150,904.52), and the amount of loss recognised through Investment income was RMB49,930,502.81 (January to
June 2021: RMB7,039,046.60).
4. Receivable financing
31 December 2021
30 June 2022
Bank acceptance bills 632,101,362.15 1,027,226,940.21
Receivable financing endorsed or discounted by the Group to other parties which were not yet due at 30 June 2022
30 June 2022
Derecognised Not Derecognised
Bank acceptance bills 2,284,256,411.05 -
68
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
5. Advances to suppliers
(1) The aging of advances to suppliers
30 June 2022 31 December 2021
Amount % of total balance Amount % of total balance
Within 1 year 377,004,053.34 98.14% 519,225,204.09 99.67%
1 to 2 years 7,127,085.17 1.86% 1,705,341.22 0.33%
384,131,138.51 100.00% 520,930,545.31 100.00%
The illustration of the reasons why advance payments with a more than 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 61,294,695.35 15.96%
6. Other receivables
30 June 2022 31 December 2021
Dividend receivables(Note1) 16,714,220.20 -
Other receivables 608,146,232.54 718,089,129.10
624,860,452.74 718,089,129.10
Category of Dividends receivable:
30 June 2022 31 December 2021
Shanghai Shyndec Pharmaceutical Co.,
Ltd. (Hereinafter referred to as Sinopharm
Shyndec) 16,714,220.20 -
69
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
6. Other receivables (Continued)
(1) Other receivables
(a) Category of other receivables by nature
30 June 2022 31 December 2021
Deposits 332,966,124.80 294,949,777.43
Receivable of price reduction compensation and
purchasing rebates 73,218,459.40 77,286,467.71
Entrusted borrowings 46,334,222.24 46,334,222.24
Receivable of the pharmaceutical electronic trading
platform 45,451,842.67 67,123,290.09
Petty cash advance to employees 43,844,397.58 20,107,746.36
Receivable of equity transactions 8,980,000.00 8,980,000.00
Receivable due from related parties 2,427,334.11 2,412,959.70
Pending refunds - 129,688,000.00
Others 126,644,861.73 139,751,461.64
679,867,242.53 786,633,925.17
(b) Changes in bad debt provision
Expected Entire lifetime Entire lifetime Total
credit losses expected credit expected credit
Bad debt over the next losses(No credit losses(Credit
12 months impairment impairment
occurred) occurred)
Balance at 1 January 2022
- 2,891,987.95 65,652,808.12 68,544,796.07
Balance at 1 January 2022 during the period
Provisions during the period
- 4,571,510.17 171,189.88 4,742,700.05
Reversal during the period
- (336,590.01) (1,156,175.19) (1,492,765.20)
Write-off during the period
- - (73,720.93) (73,720.93)
Balance at 30 June 2022 - 7,126,908.11 64,594,101.88 71,721,009.99
70
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022
Within 1 year 531,252,348.41
1 to 2 years 49,901,268.10
2 to 3 years 16,763,265.58
Over 3 years 81,950,360.44
679,867,242.53
(c) Changes in bad debt provision, recovery or reverse
Provision for bad debts in the current period as follows:
Current change amount
Opening balance Provision Reversal in the Write-off in the Other Closing balance
year year
Provision
for
impairme
nt of
other
receivabl
es (68,544,796.07) (4,742,700.05) 1,492,765.20 73,720.93 - (71,721,009.99)
(d) Actual write-off of other receivables during the period:
Write-off amount
Client A 73,720.93
71
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
6. Other receivables (Continued)
(e) 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 (Suzhou)
Pharmaceutical Co., Ltd. (Note1) Entrusted borrowings 46,334,222.24 Over 3 years 6.82% 46,334,222.24
Pharmaceutical trading
Guangdong Pharmaceutical electronic
platform repayment not yet
trading platform
cleared 40,032,801.71 Within 1 year 5.89% -
Shenzhen Administration of social
insurance fund Deposit 20,434,668.80 Within 1 year 3.01% -
TCM-Integrated Cancer Center of Deposit of logistics
Southern Medical University extension services project 20,000,000.00 Over 3 years 2.94% -
Guangdong Provincial Grain and Emergency special
Material Reserve Bureau reserve funds 12,722,553.40 Within 1 year 1.87% -
139,524,246.15 20.53% 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.
As at 31 December 2020, the amount of government grants receivable is analysed below:
Grants program Amount Age Estimated collection time, amount and basis
The amount of government grants receivable
Shanghai Pudong has been approved and expected to be
Finance Bureau Financial subsidy 3,364,000.00 Within 1 year fully received in 2022.
72
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
7. Inventories
(1) Inventories by category
30 June 2022 31 December 2021
Book value Provision for declines in value Net book value Book value Provision for declines in value Net book value
of inventories and impairment of inventories or impairment of
of contract performance costs contract performance costs
Raw materials 299,854.86 - 299,854.86 3,771,510.04 - 3,771,510.04
Finished goods 7,914,064,584.74 (15,630,957.12) 7,898,433,627.62 7,623,665,381.94 (11,100,942.38) 7,612,564,439.56
Work in progress 107,849.94 - 107,849.94 268,702.16 - 268,702.16
Low cost consumables 6,344,267.93 - 6,344,267.93 4,936,943.32 - 4,936,943.32
7,920,816,557.47 (15,630,957.12) 7,905,185,600.35 7,632,642,537.46 (11,100,942.38) 7,621,541,595.08
(2) Provision for declines in value of inventories and impairment of contract performance costs
Increases Decreases
31 December 2021 Addition due to 30 June 2022
Provision Reversal or write-off Others
combination
Finished goods （11,100,942.38） （7,345,063.47） - 1,060,366.90 1,754,681.83 （ 15,630,957.12）
Note: From January to June 2022, a provision of RMB713,561.33 was reversed for the recovery of value of some inventories and a provision of RMB346,805.57 was reversed for the write-down of
inventories due to the sale of inventory goods.
73
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
8. Contract assets
9. 30 June 2022 31 December 2021
Book Value Provision Net Book Value Book Value Provision Net Book Value
Medical devices
and equipment
guarantee funds 28,624,976.57 (455,864.00) 28,169,112.57 29,571,543.27 (510,383.75) 29,061,159.52
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 transfers part of the
contract consideration to receivables, and the other parts are formed as contract assets. After the equipment is installed
and the agreed warranty period ends, the contract assets will form an unconditional right of collection and be transferred
into receivables.
An aging analysis of contract assets with provision for impairment are as follows:
30 June 2022
Expected credit loss in entire
Estimated default amount lifetime Expected credit loss rate
Within 1 year 22,874,864.62 162,208.54 0.71%
1 to 2 years 5,750,111.95 293,655.46 5.11%
28,624,976.57 455,864.00 1.59%
Changes in provision for contract assets are presented as follows:
30 June 2022
Project Provision in current period Reversal in current period write offf Reason
Provision for
impairment of Provision for bad debts of contract
contract assets shall be made according to
assets 50,823.48 105,343.23 - expected credit losses
9. Other current assets
30 June 2022 31 December 2021
Input tax to be deducted 113,894,826.33 155,985,552.00
Prepaid corporate income tax 4,721,646.84 3,817,409.16
Others 476,133.54 804,394.50
119,092,606.71 160,607,355.66
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)
10. Long-term equity investments
Changes in current period
Investee 31 December 2021 Other comprehe 30 June 2022 Provision for impairment
Profit of loss under Other changes in Cash dividend
nsive income ad
equity method equity declared by investee
justment
Associates
Sinopharm Shyndec (a) 1,398,901,911.62 36,123,491.62 (3,773.17) 21,202.78 (16,714,220.20) 1,418,328,612.65 -
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical
Co., Ltd. (“Sinopharm Zhijun”)(a) 496,542,941.16 27,662,634.68 - - - 524,205,575.84 -
Sinopharm Group Zhijun (Shenzhen) PingShan
Pharmaceutical Co., Ltd. (“Zhijun Pingshan”) (a) 183,906,263.81 5,525,963.98 - - - 189,432,227.79 -
Shenzhen Zhijun Pharmaceutical Trade Co., Ltd.
(“Zhijun Trade”) (a) 10,377,417.89 220,557.56 - - - 10,597,975.45 -
Shenzhen Main Luck Pharmaceutical Inc. (“Main Luck
Pharmaceutical”)（b） 340,490,180.80 30,992,778.04 - - (70,380,000.00) 301,102,958.84 -
Shanghai Beiyi Guoda Pharmaceutical Co. Ltd.
(“Shanghai Beiyi”)(c) 11,285,238.87 (166,672.24) - - - 11,118,566.63 -
Guangdong Jianhui Construction Investment
Management Co., Ltd. (“Guangdong Jianhui”) (d) 8,000,000.00 - - - - 8,000,000.00 -
Sinopharm Jienuo Medical Treatment Service
Guangdong Co., Ltd. (“Guangdong Jienuo”)(e) 4,353,878.32 (645,876.71) - - - 3,708,001.61 -
Shanghai Renbei Pharmacy Co., Ltd. (“Shanghai
Renbei”)(f) 2,503,525.42 - - - - 2,503,525.42 -
Jialong (Hainan) Health Management Group Limited
("Jialong Hainan") (g) 2,390,105.28 (844,214.84) 1,545,890.44
Zhijun Suzhou(h) - - - - - - (1,857,279.52)
Shanghai Liyi Pharmacy Co., Ltd. (“Shanghai Liyi”) (i) 1,081,083.57 - - - - 1,081,083.57 -
Dongyuan Accord Pharmaceutical Chain Co., Ltd.
(“Dongyuan Accord”)(j) - - - - - - (396,638.32)
2,459,832,546.74 98,868,662.09 (3,773.17) 21,202.78 (87,094,220.20) 2,471,624,418.24 (2,253,917.84)
75
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
10. Long-term equity investments (Continued)
(a) 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 voting
rights. The Group has significant influence over Sinopharm Shyndec. The above three pharmaceutical
companies and Sinopharm Shyndec are considered as associates of the Group.
(b) 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 directors 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.
(c) 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.
(d) 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 RMB2 million. On 22 March 2019, the Group completed the
investment of RMB2 million. 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.
(e) 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
76
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
10. Long-term equity investments (Continued)
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,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.
(f) 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.
(g) On 9 August 2021, the Group and Hainan Yushan Changxing Health Management Company
Limited, jointly invested in the establishment of Jialong Hainan, with each party holding 25% and 75% of
the shares respectively, and the registered capital is RMB11,200,000. On January 12, 2022, the Group
completed the capital contribution of RMB2,800,000.According to the Articles of Association, the board
of directors of Jialong Hainan consists of three directors, one of whom is appointed by the Group,
accounting for 33.33% of the voting rights. The voting right of board resolutions is one person, one vote
and all board resolutions are passed by a majority of all directors. Therefore, the Group has significant
influence over Jialong Hainan, which is recognized as an associate of the Group.
(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) 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.
(j) On 16 June 1999, the Group acquired 45% shares of Dongyuan Accord. According to the company's
articles of association, the board of directors of Dongyuan Accord consists of five directors, two of
whom are appointed by the Group, accounting for 40% of the voting rights. The voting rights for board
resolutions are one person, one vote, and all board resolutions are approved by more than half of all
directors. Therefore, the Group has significant influence on Dongyuan Accord, which is an associate of
the Group. 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.
77
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
11. Other equity instrument investment
30 June 2022 31 December 2021
Sinopharm Health Online Co., Ltd. 30,379,638.22 30,379,638.22
Sinopharm Guoda Hubei Co., Ltd. 18,799,104.17 18,799,104.17
Shanghai Chongde Pharmacy Co., Ltd. 8,319,270.22 8,319,270.22
Shanghai Guoren Pharmacy Co., Ltd. 4,720,895.53 4,720,895.53
Hunan Zhongbai Pharmaceutical Investment Co., Ltd. 269,404.85 269,404.85
62,488,312.99 62,488,312.99
Recognized Accumulated Accumulated Amount transferred Reasons designated to
dividend profits Loss from other be measured at fair value
income comprehensive with changes included in
income to retained other comprehensive
earnings income
Sinopharm Health Non tradable equity
Online Co., Ltd. - 18,379,638.22 - - instruments
Sinopharm Guoda Non tradable equity
Hubei Co., Ltd. - 17,799,104.17 - - instruments
Shanghai Chongde Non tradable equity
Pharmacy Co., Ltd. - 8,048,510.22 - - instruments
Shanghai Guoren Non tradable equity
Pharmacy Co., Ltd. - 4,620,895.53 - - instruments
Hunan Zhongbai Non tradable equity
Pharmaceutical instruments
Investment Co., Ltd. - - (45,595.15) -
- 48,848,148.14 (45,595.15) -
78
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
12. Other non-current financial assets
30 June 2022 31 December 2021
Financial asset measured at fair value 135,974,908.51 135,974,908.51
through current profit or loss
On June 30, 2022, 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”, Phase I 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
(Phase I Fund), the Company plans to invest RMB200 million to subscribe for the share of the Industrial Fund (Phase I
Fund), which will be paid in three installments.The Industrial Fund (Phase I 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 this project’s principal of RMB19,027,649.76 from Qirui
Port Investment Center LP of Ningbo Meishan Bonded Port. In January 2021,The Company received the withdraw fund
of this project’s principal of RMB2,997,441.73 from Qirui Port Investment Center LP of Ningbo Meishan Bonded Port.
At the first meeting of the ninth session of the Board of Directors of the Group held on 16 July 2021, the proposal of the
Group to invest in the subscription of the Industrial Fund (Phase II Fund) was considered and approved. The Group, as a
limited partner of the Industrial Fund (Phase II Fund), intends to invest RMB60 million to subscribe for the shares of the
Industrial Fund (Phase II Fund), which will be paid in three installments. The Group paid the first installment of RMB18
million in August 2021, and as at 30 June 2022, the Group had paid a total of RMB18 million in capital contribution. The
Industrial Fund (Phase II Fund) has obtained the relevant approval and commenced operation in 2021.
Since the cash flow obtained 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 presented as other
non-current financial assets.
.
79
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 206,212,210.76 20,963,728.02 227,175,938.78
Increase amount in current period 647,488.61 - 647,488.61
Purchase - - -
Transfer from inventories\fixed assets\construction in
progress 647,488.61 - 647,488.61
Decrease amount in current period (504,706.29) (37,635.64) (542,341.93)
Transfer to intangible assets - (37,635.64) (37,635.64)
Transfer to fixed assets (504,706.29) - (504,706.29)
Closing balance 206,354,993.08 20,926,092.38 227,281,085.46
Accumulated depreciation and amortization
Opening balance (103,742,730.15) (8,151,711.40) (111,894,441.55)
Increase amount in current period (2,635,774.60) (151,428.79) (2,787,203.39)
Provision (2,426,638.50) (151,428.79) (2,578,067.29)
Transfer from fixed assets (209,136.10) - (209,136.10)
Decrease amount in current period 446,835.91 6,672.80 453,508.71
Transfer to intangible assets - 6,672.80 6,672.80
Transfer to fixed assets 446,835.91 - 446,835.91
Closing balance (105,931,668.84) (8,296,467.39) (114,228,136.23)
Provision for impairment
Opening balance and Closing balance (1,300,000.00) - (1,300,000.00)
Carrying amount
At end of the period 99,123,324.24 12,629,624.99 111,752,949.23
At beginning of the period 101,169,480.61 12,812,016.62 113,981,497.23
80
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
14. Fixed assets
30 June 2022 31 December 2021
Fixed assets 835,798,833.09 868,626,258.43
(1) Condition of fixed assets
Buildings and Machinery and Motor vehicles Office equipments Electronic equipments Total
constructions equipment
Original cost
Opening balance 725,861,173.32 371,866,499.22 102,399,414.98 395,148,026.41 157,774,189.87 1,753,049,303.80
Increase amount in current period 3,949,407.97 36,056,191.05 824,217.81 10,822,316.68 3,126,222.99 54,778,356.50
Purchase - 30,370,031.62 824,217.81 10,822,316.68 3,126,222.99 45,142,789.10
Transfer from construction in progress 3,444,701.68 5,686,159.43 - - - 9,130,861.11
Transfer from Investment properties 504,706.29 - - - - 504,706.29
Business combinations - - - - - -
Decrease amount in current period (1,303,219.54) (1,429,813.20) (922,558.32) (1,909,512.24) (3,206,557.85) (8,771,661.15)
Transfer to investment properties (647,488.61) - - - - (647,488.61)
Disposal or retirement (655,730.93) (1,429,813.20) (922,558.32) (1,909,512.24) (3,206,557.85) (8,124,172.54)
Closing balance 728,507,361.75 406,492,877.07 102,301,074.47 404,060,830.85 157,693,855.01 1,799,055,999.15
81
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 (278,578,414.47) (203,467,575.81) (58,211,456.82) (240,594,219.57) (103,571,378.70) (884,423,045.37)
Increase amount in current period (14,497,637.09) (33,297,572.42) (5,048,144.47) (18,256,985.87) (14,650,876.27) (85,751,216.12)
Provision (14,050,801.18) (33,297,572.42) (5,048,144.47) (18,256,985.87) (14,650,876.27) (85,304,380.21)
Transfer from Investment properties (446,835.91) - - - - (446,835.91)
Decrease amount in current period 576,231.30 1,275,970.27 678,732.49 1,487,906.36 2,898,255.01 6,917,095.43
Disposal or retirement 367,095.20 1,275,970.27 678,732.49 1,487,906.36 2,898,255.01 6,707,959.33
Transfer to investment properties 209,136.10 - - - - 209,136.10
Closing balance (292,499,820.26) (235,489,177.96) (62,580,868.80) (257,363,299.08) (115,323,999.96) (963,257,166.06)
Carrying amount
At end of period 436,007,541.49 171,003,699.11 39,720,205.67 146,697,531.77 42,369,855.05 835,798,833.09
At beginning of the period 447,282,758.85 168,398,923.41 44,187,958.16 154,553,806.84 54,202,811.17 868,626,258.43
82
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Reason for not obtaining certification of title
As at 30 June 2022, the Group had not obtained the title deed of the office
building located at No. 53 Nan Shi Zhong Road, Tiexi District, Shenyang, and
Buildings and constructions 23,963,291.00
the transferor, Shenyang Tiexi District State-owned Assets Supervision Bureau,
was in the process and had issued the relevant certificate.
As at 30 June 2022, the Group had not obtained the title deed of the office
building located at No. 53 Nan Shi Zhong Road, Tiexi District, Shenyang, and
Buildings and constructions 37,637,064.10
the transferor, Shenyang Tiexi District State-owned Assets Supervision Bureau,
was in the process and had issued the relevant certificate.
As at 30 June 2022, the Group was unable to apply for the title deed of the
building located at No. 31 Yihe Road, Kaiyuan City, Tieling City, as the
Buildings and constructions 291,208.47 construction area was larger than the approved area, and the Kaiyuan City
Planning Bureau had issued a certificate of acceptance for the completion of
construction works.
On 30 June 2022, the Group constructed its own simple warehouse located at
Buildings and constructions 119,844.81 No. 2 Baiyu Road, Sujiatun District, Shenyang for its own storage needs. The
Group was unable to apply for the housing title certificate of the property..
15. Construction in progress
30 June 2022 31 December 2021
Construction in progress 34,400,409.22 49,849,506.70
(1) Condition of construction in progress
30 June 2022 31 December 2021
Carrying Impairment Carrying Carrying balance Impairment Carrying
balance amount amount
Supply chain extension
project 16,312,910.10 - 16,312,910.10 12,446,732.50 - 12,446,732.50
Warehouse improvement
project 7,577,026.92 - 7,577,026.92 3,182,704.49 - 3,182,704.49
Software project 1,199,851.08 - 1,199,851.08 24,794,281.62 - 24,794,281.62
Other construction projects 9,310,621.12 - 9,310,621.12 9,425,788.09 - 9,425,788.09
34,400,409.22 - 34,400,409.22 49,849,506.70 - 49,849,506.70
83
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Project name Budget Opening Increase Decrease Decrease Closing balance Proportion of Project Source of funds
balance Transferred to Transferred to Long- investment to progress
fixedOtherse assets term prepaid expenses budget
Software Own capital
project 111,131,415.93 24,794,281.62 8,678,559.65 - (32,272,990.19) 1,199,851.08 30.12% 30.12%
Supply chain Own capital
extension
project 46,048,810.28 12,446,732.50 14,383,452.72 (4,774,336.28) (5,742,938.84) 16,312,910.10 62.73% 62.73%
Warehouse Own capital
improvement
project 19,796,189.85 3,182,704.49 9,241,456.14 (4,312,522.81) (534,610.90) 7,577,026.92 63.09% 63.09%
Other Own capital
construction
projects 205,972,125.26 9,425,788.09 260,773.82 (44,002.02) (331,938.77) 9,310,621.12 4.69% 4.69%
382,948,541.32 49,849,506.70 32,564,242.33 (9,130,861.11) (38,882,478.70) 34,400,409.22
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)
16. Right-of-use assets
Buildings and Machinery, transport and
office equipment Others Total
constructions
Original cost
Opening balance 4,296,673,416.39 4,927,893.76 2,418,809.35 4,304,020,119.50
Increase amount in current period 652,819,420.11 - - 652,819,420.11
Decrease amount in current period (467,637,122.34) (3,671,052.86) - (471,308,175.20)
Disposal (467,637,122.34) (3,671,052.86) - (471,308,175.20)
Closing balance 4,481,855,714.16 1,256,840.90 2,418,809.35 4,485,531,364.41
Accumulated depreciation
Opening balance (1,724,656,730.78) (3,835,582.33) (287,466.39) (1,728,779,779.50)
Increase amount in current period (524,756,629.31) (378,142.64) (47,473.92) (525,182,245.87)
Provision (524,756,629.31) (378,142.64) (47,473.92) (525,182,245.87)
Decrease amount in current period 393,496,947.51 3,244,027.44 - 396,740,974.95
Disposal 393,496,947.51 3,244,027.44 - 396,740,974.95
Closing balance (1,855,916,412.58) (969,697.53) (334,940.31) (1,857,221,050.42)
Carrying amount
At end of the period 2,625,939,301.58 287,143.37 2,083,869.04 2,628,310,313.99
At beginning of the period 2,572,016,685.61 1,092,311.43 2,131,342.96 2,575,240,340.00
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)
17. Intangible assets
Trademarks and
Land use rights Software brands use rights Favorable leases Distribution network Franchise Total
Original cost
Opening balance 88,719,468.18 231,316,264.13 322,476,925.12 127,486,000.00 283,573,678.24 710,000.00 1,054,282,335.67
Increase amount in current period 37,635.64 44,667,059.40 11,000.00 - - - 44,715,695.04
Purchases - 6,605,281.31 11,000.00 - - - 6,616,281.31
Transfer from construction in progress - 38,061,778.09 - - - - 38,061,778.09
Transfer from investment properties 37,635.64 - - - - - 37,635.64
Decrease amount in current period - (127,963.16) - - - - (127,963.16)
Disposal - (127,963.16) - - - - (127,963.16)
-
Closing balance 88,757,103.82 275,855,360.37 322,487,925.12 127,486,000.00 283,573,678.24 710,000.00 1,098,870,067.55
-
Accumulated amortization
Opening balance (32,482,133.76) (136,724,139.35) (18,520,174.43) (44,964,482.67) (76,954,842.64) (710,000.00) (310,355,772.85)
Increase amount in current period (913,725.28) (14,881,930.03) (6,908,771.28) (3,542,977.94) (6,713,933.85) - (32,961,338.38)
Provision (907,052.48) (14,881,930.03) (6,908,771.28) (3,542,977.94) (6,713,933.85) - (32,954,665.58)
Transfer from investment properties (6,672.80) - - - - - (6,672.80)
Decrease amount in current period - 50,252.98 - - - - 50,252.98
Disposal - 50,252.98 - - - - 50,252.98
Closing balance (33,395,859.04) (151,555,816.40) (25,428,945.71) (48,507,460.61) (83,668,776.49) (710,000.00) (343,266,858.25)
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)
17. Intangible assets (Continued)
Trademarks and
Land use rights Software brands use rights Favorable leases Distribution network Franchise Total
Provision for impairment
Opening balance - - (43,000,000.00) - (31,000,000.00) - (74,000,000.00)
Closing balance - - (43,000,000.00) - (31,000,000.00) - (74,000,000.00)
Carrying amount
At end of the year 55,361,244.78 124,299,543.97 254,058,979.41 78,978,539.39 168,904,901.75 - 681,603,209.30
-
At beginning of the year 56,237,334.42 94,592,124.78 260,956,750.69 82,521,517.33 175,618,835.60 - 669,926,562.82
At the end of the period, the proportion of intangible assets formed through internal research and development of the company to the
balance of intangible assets was 12.53%.
At 30 June 2022, there were no intangible assets with unfinished title certificates (at 31 December 2021: none).
87
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
18. Goodwill
(1) Original Book Value of goodwill
Increase during this period
Merger of Business Decrease
Names of the investee or matters of forming holdings combinations during this Closing
Opening balance
goodwill not under not under period balance
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
88
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Increase during this period period
Names of the investee or matters of Opening Business Closing
forming goodwill balance Merger of combinations balance
holdings not not under
under common common
control 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 - 2,818,647.85 - 11,898,747.85
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”) 158,492,204.21 - - - 158,492,204.21
China Pharmaceutical Holdings Nantong
Puji Pharmacy Chain Co., Ltd. store
acquisition 11,498,100.00 - - - 11,498,100.00
Shanxi Huimin Kangwei Big Pharmacy
Chain Co., Ltd. store acquisition 20,970,000.00 - - - 20,970,000.00
2,963,335,585.32 - 2,818,647.85 2,818,647.85 2,963,335,585.32
89
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
18. Goodwill (Continued)
As at 27 January 2022, Taiyuan Tongxinli has completed the business cancellation and the relevant assets were merged into the
parent company, Shanxi Guoda Yiyuan, so the carrying value of goodwill was merged into the parent company, Shanxi Guoda
Yiyuan. See Note VI.2 for its cancellation information.
(2) Provision of impairment loss
Names of the investee or matters of
forming goodwill Opening balance Increase Decrease Closing balance
Shanghai Dingqun 162,690,000.00 - - 162,690,000.00
Quanzhou Guoda 25,000,000.00 - - 25,000,000.00
187,690,000.00 - - 187,690,000.00
Information about the asset group or combination of asset groups in which the goodwill is located
Goodwill acquired in a business combination has been allocated to the operating asset group of the relevant subsidiary's main
business for goodwill impairment testing. These asset groups are consistent with the asset groups recognized in the goodwill
impairment test at the date of purchase and in previous years.The recoverable amount is determined as the present value of the
estimated future cash flows from the operating asset group of the principal business of each subsidiary for which goodwill exists.
Management estimates future cash flows based on a detailed forecast period of five years and subsequent forecast periods. The
projected future cash flows for the detailed forecast period are determined based on the business plan developed by
management. The projected future cash flows for the subsequent forecast period are determined based on the level of the last
year of the detailed forecast period, taking into account the Group's business plan, industry trends and other factors.
The recoverable amounts of asset groups and asset group combinations are based on budgets approved by management for a
five-year period using a cash flow projection methodology, with cash flows beyond that five-year period extrapolated to take into
account inflation rates.
The key assumptions made by the Group in determining the cash flow projections for goodwill impairment testing:
(1)Assuming that the appraised entity continues to operate and there are no significant changes from the current situation in key
aspects affecting production and operation, such as the scope of operation, sales model and channels, and management.
(2)Assuming that no significant changes occur in the socio-economic environment in which the appraised entity is located and
that there are no significant changes from the current situation in relevant laws and regulations, etc. in the region in which the
company is located.
(3)Assuming that the appraised entity will continue to improve and perfect its business scope, business methods and
management model on the basis of maintaining consistency, and that it will be able to make timely adjustments and innovations
in line with economic development.
(4)Assuming that interest rates and tax rates, within the prescribed normal range, do not change significantly, etc. The following
illustrates the key assumptions made by management in determining cash flow projections for the purpose of goodwill impairment
testing.
Revenue growth rate: The Group determines the revenue growth rate for the forecasted annual period based on the business
plans of each subsidiary, historical experience and forecasts of market developments.
Budgeted gross margin: The basis of determination is based on the average gross margin achieved in the year prior to the budget
year, which is appropriately projected based on expected efficiency improvements and expected market development.
Discount rate: The discount rate used is a pre-tax discount rate that reflects the specific risk of the relevant asset group or
combination of asset groups.
90
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
18. Goodwill (Continued)
Assumptions were used to calculate the present value of the expected future cash flows of the
pharmaceutical distribution business, the pharmaceutical retail business asset group and the asset
group portfolio as at 30 June 2022. The key assumptions made by the Group in determining the cash
flow projections when performing the goodwill impairment test are as follows:
Pharmaceutical
Pharmaceutical retail
distribution
Revenue growth rate in the budget period 2.49%-17.00% -2.25%-14.03%
Sustainable growth rate 3.00% 3.00%
Gross margin 3.34%-6.20% 12.36%-52.00%
Discount rate 12.40%-15.00% 12.58%-15.00%
The Group determines budgeted gross margins and weighted average growth rates based on historical
experience and forecasts of market developments, and uses pre-tax rates that reflect the specific risks
of the relevant asset groups and asset group combinations as discount rates. The above assumptions
are used to analyze the recoverable amounts of the various asset groups and asset group combinations
within this business segment.
19. Long-term prepaid expenses
Opening balance Additions Amortization Other decrease Closing balance
Fixed asset improvement
expenditure 447,915,250.45 51,293,777.88 (65,562,268.99) (4,460,540.72) 429,186,218.62
Acquisition expenditure to
obtain the right to operate 166,013,845.54 11,615,844.52 (17,279,213.79) (180,000.00) 160,170,476.27
Others 20,046,345.77 284,186.15 (5,781,598.02) - 14,548,933.90
633,975,441.76 63,193,808.55 (88,623,080.80) (4,640,540.72) 603,905,628.79
91
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Deductible temporary Deferred tax Deductible temporary Deferred tax
differences assets differences assets
Provision for impairment of
assets 240,866,603.05 57,740,261.96 204,535,469.12 49,334,631.28
Deductible tax loss 247,304,456.76 61,822,956.66 156,999,428.65 39,093,138.09
Impact of lease criteria 121,725,466.63 28,643,999.31 126,166,577.96 29,685,521.43
Accrued expenses 190,689,243.32 46,475,910.83 109,319,247.99 25,802,416.16
Member bonus points 66,314,447.80 15,565,464.51 56,953,502.72 13,804,027.96
Accrued payroll 48,322,321.21 11,593,390.11 59,779,846.77 14,472,633.63
Others 45,278,602.70 10,634,926.40 15,774,146.45 3,884,627.84
960,501,141.47 232,476,909.78 729,528,219.66 176,076,996.39
(2) Deferred tax liabilities before offseting
30 June 2022 31 December 2021
Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Fair value adjustment for
business combination not
involving enterprises under
common control 616,370,769.96 154,092,692.50 636,489,820.31 159,122,455.09
One-time deduction for fixed
assets under five million
yuan 165,372,016.75 41,080,779.44 168,175,688.17 41,874,528.38
Changes in fair value of
financial assets through
other comprehensive income 48,802,552.97 12,200,638.25 48,802,552.99 12,200,638.25
Division restructuring assets
to assess value-added
differences 13,780,567.64 3,445,141.91 14,911,259.12 3,727,814.78
Others 24,629,691.32 5,185,066.60 25,604,493.16 5,359,719.05
868,955,598.64 216,004,318.70 893,983,813.75 222,285,155.55
92
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Deferred tax Temporary Deferred tax Temporary
assets/liabilities - differences assets/liabilities - differences
Net after set-off Net after set-off
Deferred tax assets 47,485,404.45 184,991,505.33 46,336,826.62 129,740,169.77
Deferred tax liabilities 47,485,404.45 168,518,914.25 46,336,826.62 175,948,328.93
(4) The deductible temporary differences and deductible losses that were not recognized as deferred
tax assets are presented as follows:
30 June 2022 31 December 2021
Deductible temporary differences 23,200,390.80 11,238,147.54
Deductible loss (Note) 57,788,327.59 59,698,786.44
80,988,718.39 70,936,933.98
Note: Considering that individual subsidiaries of the Group are still in a loss position and it is
highly uncertain whether sufficient taxable income will be available to offset the deductible losses
in future periods, the Group has not recognized deferred income tax assets for the accumulated
losses of these subsidiaries of RMB 57,788,327.59 that are deductible from taxable income.
(5) The aforesaid unrecognized deductible losses will due:
30 June 2022 31 December 2021
2022 6,641,123.64 6,641,123.64
2023 7,168,712.20 8,298,591.45
2024 22,902,212.15 23,628,477.37
2025 8,413,580.52 8,439,382.18
2026 12,662,699.08 12,691,211.80
57,788,327.59 59,698,786.44
93
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
21. Other non-current assets
30 June 2022 31 December 2021
Carrying
Carrying balance Impairment amount Carrying balance Impairment Carrying amount
Physical assets reserve
specifically
authorized 309,205,366.54 (12,592.92) 309,192,773.62 296,930,381.81 (72,444.32) 296,857,937.49
Guarantees 101,512,031.50 (367,467.00) 101,144,564.50 102,026,609.50 (232,467.00) 101,794,142.50
Prepayment for project
and equipment 36,856,205.52 - 36,856,205.52 39,854,590.30 - 39,854,590.30
Contract assets 20,159,281.27 (137,829.41) 20,021,451.86 16,743,986.71 (156,301.07) 16,587,685.64
Other 7,775,158.31 - 7,775,158.31 4,891,413.31 - 4,891,413.31
475,508,043.14 (517,889.33) 474,990,153.81 460,446,981.63 (461,212.39) 459,985,769.24
22. Short-term borrowings
30 June 2022 31 December 2021
Credit borrowings 2,927,031,189.96 1,930,467,146.38
Pledged borrowings 171,989,511.22 -
3,099,020,701.18 1,930,467,146.38
Intra-group bills receivable that have been discounted and not yet due are reverted to short-term borrowings at the consolidated
level
At 30 June 2022, the annual interest rate for the above borrowings was 1.80%-4.50%(31 December 2021：0.44%-4.50%).
At 30 June 2022 and 31 December 2021, there were no short-term borrowings of the Group that were overdue but not yet paid.
23. Notes payable
30 June 2022 31 December 2021
Commercial acceptance bills 78,748,228.70 73,700,292.69
Bank acceptance bills 6,311,809,265.94 7,586,516,530.99
6,390,557,494.64 7,660,216,823.68
At 30 June 2022, the total amount of notes payable that were due but not yet paid was nil (31 December 2021：nil).
94
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
24. Accounts payable
30 June 2022 31 December 2021
Payment for goods 11,329,463,911.07 9,057,718,968.14
At 30 June 2022, significant accounts payable aged over one year was analyzed below:
Amount Reason
Payment for goods 613,075,167.06 Has not been settled
25. Receipts in advance
30 June 2022 31 December 2021
Advanced lease payment 18,140,667.15 19,289,567.44
26. Contract liabilities
30 June 2022 31 December 2021
Contract liabilities 446,665,021.01 431,303,231.37
27. Employee benefits payable
31 December 2021 Increase Decrease 30 June 2022
Short-term employee benefits (1) 332,740,724.86 1,552,861,040.78 (1,655,917,366.02) 229,684,399.62
Post-employment benefits
(defined contribution plan) (2) 7,263,643.68 161,560,598.74 (157,706,923.22) 11,117,319.20
Termination benefits 192,756.79 185,799.87 (189,867.56) 188,689.10
340,197,125.33 1,714,607,439.39 (1,813,814,156.80) 240,990,407.92
95
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022
2021
Salaries, bonuses, allowances and grants 310,756,231.93 1,349,773,699.68 (1,452,477,822.63) 208,052,108.98
Staff welfare 1,896,079.97 33,725,170.87 (33,305,445.16) 2,315,805.68
Social security contribution 4,668,816.25 88,455,751.60 (90,245,316.02) 2,879,251.83
Incl: Medical insurance 4,556,753.76 83,076,013.05 (84,894,890.20) 2,737,876.61
Work injury insurance 92,574.46 3,495,144.35 (3,451,920.98) 135,797.83
Maternity insurance 19,488.03 1,884,594.20 (1,898,504.84) 5,577.39
Housing funds 1,974,638.71 57,510,906.40 (57,041,543.77) 2,444,001.34
Labor union funds and employee
education funds 12,573,136.23 21,959,876.47 (21,411,602.68) 13,121,410.02
Other short-term benefits 871,821.77 1,435,635.76 (1,435,635.76) 871,821.77
332,740,724.86 1,552,861,040.78 (1,655,917,366.02) 229,684,399.62
(2) Defined contribution plan
31 December 2021 Increase Decrease 30 June 2022
Basic pension
insurance 2,268,338.29 154,103,723.59 (148,555,950.60) 7,816,111.28
Unemployment
insurance 142,603.69 4,712,271.46 (4,460,904.95) 393,970.20
Contribution to
pension fund 4,852,701.70 2,744,603.69 (4,690,067.67) 2,907,237.72
7,263,643.68 161,560,598.74 (157,706,923.22) 11,117,319.20
Note：For the half year of 2022, the Group provided other termination benefits for severing labor relations of RMB149,212.00.
For the half year of 2021, the Group provided other termination benefits for severing labor relations of RMB406,814.34.Other
termination benefits that were reversed for there was no need to pay for severing labor relations were nil.
96
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
28. Tax payable
30 June 2022 31 December 2021
Corporate Income taxes 204,963,847.78 178,870,986.61
Value-added tax 115,851,465.78 116,033,746.26
Stamp duty 9,811,058.50 9,920,803.28
Individual income tax 8,094,662.21 7,421,770.17
City maintenance and construction surtax 7,453,512.42 8,285,798.93
Educational surcharge 5,949,470.18 6,128,676.48
Water conservancy fund 1,299,726.77 1,904,421.45
Property tax 1,150,452.87 1,166,484.81
Land use tax 85,943.48 63,985.06
Others 6,950,642.84 7,367,407.14
361,610,782.83 337,164,080.19
29. Other payables
30 June 2022 31 December 2021
Interest payable 54,630,796.23 31,587,062.03
Dividend payable 29,976,446.26 30,140,616.33
Other payables 2,164,208,703.69 1,653,019,308.10
2,248,815,946.18 1,714,746,986.46
(1) Interest payable
30 June 2022 31 December 2021
Factoring interest on accounts receivable 54,630,796.23 31,587,062.03
97
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Jilin Yihe Investment Consulting Co., Ltd 22,635,133.81 22,635,133.81
Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun Pharm”) 4,835,511.58 4,835,511.58
Dividend payable to Zhang Zhenfang 2,505,800.87 2,505,800.87
Meiluo Pharmaceutical Co., Ltd. - 164,170.07
29,976,446.26 30,140,616.33
At 30 June 2022 and 31 December 2021, the Group had no significant dividend aged more than one year and not yet paid.
(3) Other payables
30 June 2022 31 December 2021
Payables for factoring programs 940,993,604.43 549,837,612.90
Deposit 459,938,698.92 449,660,261.02
Accrued expenses 223,088,290.60 230,547,704.07
Payables for rentals 144,562,565.13 95,330,986.78
Equity payables 122,200,000.00 125,000,000.00
Payables for construction in progress and equipment 42,068,719.87 53,913,827.67
Collection of others 40,821,359.82 28,674,847.66
Payables to individuals 14,288,250.02 17,809,022.64
Temporary loans 10,000,500.00 9,984,512.61
Payables for land transfer payments 7,486,500.00 7,486,500.00
Payables to related parties 294,282.33 596,258.19
Others 158,465,932.57 84,177,774.56
2,164,208,703.69 1,653,019,308.10
98
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
29. Other payables(Continued)
At 30 June 2022, significant other payables over 1 year are:
Amount payable Reason for outstanding
Deposits 11,183,321.05 Payment conditions not met
Temporary loans 9,800,000.00 Payment conditions not met
Payables for land transfer payments 7,486,500.00 Payment conditions not met
28,469,821.05
30. Non-current liabilities due within 1 year
30 June 2022 31 December 2021
Lease liabilities due within 1 year 852,086,989.55 848,328,648.14
Long-term loans due within 1 year 6,000,000.00 -
858,086,989.55 848,328,648.14
31. Other current liabilities
30 June 2022 31 December 2021
Pre-collected VAT 24,266,555.72 27,078,191.86
Output VAT to be recognized 280,714.64 418,081.05
Other 11,110,059.72 12,089,196.74
35,657,330.08 39,585,469.65
32. Long-term borrowings
30 June 2022 31 December 2021
Entrusted loans（1） 31,633,794.44 31,637,173.89
Credit loan（2） 31,000,000.00 40,000,000.00
62,633,794.44 71,637,173.89
（ 1 ） At 30 June 2022, the total amount of remaining entrusted loans was RMB31,633,794.44 (31 December 2021:
RMB31,637,173.89)., which was the loan from Sinopharm Group Finance Co., Ltd entrusted by CNPGC to the group, the
weighted average annual interest rate of the entrusted loans was 3.85%(31 December 2021: 3.85%).
（2）At 30 June 2022, the balance of credit borrowings was RMB31,000,000.00 (31 December 2021: RMB 40,000,000.00)
from Everbright Bank. The annual interest rate on this credit loan is 4.05% (31 December 2021 : 4.05%).
99
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
33. Lease liabilities
30 June 2022 31 December 2021
Lease payment 2,243,561,602.43 2,223,756,525.42
Less: Lease liabilities due within 1 year 852,086,989.55 848,328,648.14
1,391,474,612.88 1,375,427,877.28
34. Long-term payables
30 June 2022 31 December 2021
Payables for specific projects 6,938,189.00 6,938,189.00
Payables for specific projects:
31 December 2021 Increase Decrease 30 June 2022 Reasons of derred
income
Special funds granted by Funds granted 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 allocated by government departments and are accounted for the specific payable
account at the time of allocation.
(2) The medical reserve funds were allocated 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 2022 31 December 2021
Early retirement benefits payable 1,156,000.00 1,202,000.00
100
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
36. Deferred income
Opening balance Increase Decrease Closing balance Reasons of
deferred income
Government grants 86,402,219.54 200,701.00 3,382,345.72 83,220,574.82 Government grant
VAT Additional VAT additional de
deduction 514,832.24 1,073,499.36 1,256,972.27 331,359.33 duction
86,917,051.78 1,274,200.36 4,639,317.99 83,551,934.15
As at 30 June 2022, deferred income from government grants are as follows:
Government grants Opening balance Addition Amount included in Amount included in Closing balance Asset related/ income
program non-operating other income related
income
Resettlement
Compensation (Note) 67,460,215.49 - 1,349,204.28 - 66,111,011.21 Asset related
Construction fund of the
modern supply chain
system in the central
circulation field in 2018 6,760,654.80 - - 809,950.26 5,950,704.54 Asset related
Logistics project of
Nanning Economic
Development Zone
construction support
funds 4,660,159.43 - - 93,203.22 4,566,956.21 Asset related
Subsidies for
pharmaceutical supply
chain projects 1,910,004.37 - - 178,590.60 1,731,413.77 Asset related
Guangzhou logistics
standardisation pilot
project 1,176,272.03 - - 273,123.42 903,148.61 Asset related
Funds for the logistics
information platform
project of the
pharmaceutical storage
centre 666,666.87 - - 71,428.56 595,238.31 Asset related
Comprehensive
experimental modern
service industry
subsidies 600,000.00 - - 150,000.00 450,000.00 Asset related
Special funds for industrial
transformation and
upgrading in dualised
integration projects 392,720.10 - - 139,907.58 252,812.52 Asset related
Asset related/ income
Other projects 2,775,526.45 200,701.00 - 316,937.80 2,659,289.65 related
Note:Due to the implementation of urban planning for old town reconstruction in Nanning, the operating center of Guangxi
Logistics which was located in Longteng Road District, Nanning City, was to be reconstructed in another place. According to
the agreement signed between Guangxi Logistics and the real estate developer 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 2015, 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 place,
amounting to RMB93,320,000.00, was recognised as deferred revenue, and would be amortized and recognised in the
income statement within the expected useful lives using the straight-line method, and the other cash compensation, of
which the amount approximates to RMB26,930,000.00, was recognised in the income statement in 2012.
101
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
37. Other non-current liabilities
30 June 2022 31 December 2021
Governmental medical reserve funds (1) 593,063,888.27 560,495,462.17
Equity payable 71,400,000.00 71,400,000.00
Product promotion accumulative points
programme (2) 31,072,257.90 32,479,462.95
Other 6,140.53 6,140.53
695,542,286.70 664,381,065.65
(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 date.
38. Share capital
Movement during the current year
31 December 2021 Issue of new share Others Subtotal 30 June 2022
Shares 428,126,983.00 - - - 428,126,983.00
39. Capital surplus
31 December 2021 Increase Decrease 30 June 2022
Share premium 2,118,174,787.27 - - 2,118,174,787.27
Other capital surplus 2,253,627,320.16 21,202.78 - 2,253,648,522.94
4,371,802,107.43 21,202.78 - 4,371,823,310.21
Changes in other equity of Shyndec Pharma, an associate of the group, add the book value of long-term equity
investment and include it in the capital reserve of RMB 21,202.78.
102
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
40. Other comprehensive income
Amounts changes in current period
31 December 2021 Occurrence amount Attributable to shareholders 30 June 2022
before tax of owners of the parent
Other comprehensive income items
which will not be reclassified
subsequently to profit or loss 21,961,038.76 - - 21,961,038.76
Incl: Change in the fair value of other
equity investments 21,961,038.76 - - 21,961,038.76
Other comprehensive income that
may be reclassified to profit or loss (86,840.40) (3,773.17) (3,773.17) (90,613.57)
Incl: Other comprehensive income
using the equity method that may
be reclassified to profit or loss (86,840.40) (3,773.17) (3,773.17) (90,613.57)
21,874,198.36 (3,773.17) (3,773.17) 21,870,425.19
41. Surplus reserve
31 December 2021 Increase Decrease 30 June 2022
Statutory surplus reserves 214,063,491.50 - - 214,063,491.50
42. Retained earnings
30 June 2022 31 December 2021
Retained earnings at beginning of year before
retrospective adjustment and restatement 9,889,071,272.21 8,895,145,106.39
The retrospective adjustment and restatement - -
Retained earnings at beginning of year after
retrospective adjustment and restatement 9,889,071,272.21 8,895,145,106.39
Add: Net profit attributable to the parent 674,215,912.93 1,336,427,752.22
Less: Dividend payable on common stock 256,876,189.80 342,501,586.40
Retained earnings on June 30, 2020 10,306,410,995.34 9,889,071,272.21
103
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
43. Operating revenue and cost
For the six months ended For the six months ended
30 June 2022 30 June 2021
Revenue Cost Revenue Cost
Principal operations 35,768,781,930.34 31,831,173,699.03 32,841,264,479.56 29,156,249,513.96
Other operations 360,128,119.64 107,846,116.57 321,827,407.83 60,587,687.11
36,128,910,049.98 31,939,019,815.60 33,163,091,887.39 29,216,837,201.07
Classification Head Office Pharmaceutical Pharmaceutical retail Elimination Total
distribution between segments
By product
Incl:
Pharmaceuticals
- 20,658,106,818.64 10,518,104,050.65 (477,730,068.50) 30,698,480,800.79
Medical devices and
disposables
- 3,889,963,499.47 590,413,492.64 - 4,480,376,992.11
Diagnostic reagents
- 595,036,742.79 - - 595,036,742.79
Medical equipments
- 131,576,141.49 - - 131,576,141.49
Others 213,770.00 174,573,822.26 - (1,336,897.05) 173,450,695.21
By area
Incl:
China 213,770.00 25,449,257,024.65 11,108,517,543.29 (479,066,965.55) 36,078,921,372.39
By types of activity
Incl:
Pharmaceutical
distribution
- 24,045,828,999.99 1,659,820,863.49 (477,730,068.50) 25,227,919,794.98
Retail pharmacy
- 1,228,854,202.40 9,448,696,679.80 - 10,677,550,882.20
Others 213,770.00 174,573,822.26 - (1,336,897.05) 173,450,695.21
By contract duration
Incl:
At a point in time
- 25,274,683,202.39 11,108,517,543.29 (477,730,068.50) 35,905,470,677.18
Over time 213,770.00 174,573,822.26 - (1,336,897.05) 173,450,695.21
213,770.00 25,449,257,024.65 11,108,517,543.29 (479,066,965.55) 36,078,921,372.39
104
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
43. Operating revenue and cost (Continued)
Information about the Group’s performance obligations is summarised below:
(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 RMB446,665,021.01, 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 2022 30 June 2021
Revenue from contracts with customers 36,078,921,372.39 33,120,723,712.62
Rentals 49,988,677.59 42,368,174.77
36,128,910,049.98 33,163,091,887.39
44. Tax and surcharges
For the six month ended For the six month ended
30 June 2022 30 June 2021
City maintenance and construction tax 36,545,739.89 27,877,507.46
Educational surcharge 26,507,011.37 20,257,170.15
Stamp duty 26,135,378.84 21,497,447.37
Property tax 3,982,142.71 4,224,163.72
Land tax 555,653.98 768,836.09
Vehicle and vessel use tax 77,425.33 85,991.96
Others 2,093,753.21 1,278,737.83
95,897,105.33 75,989,854.58
105
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
45. Selling expenses
For the six month ended For the six month ended 30
30 June 2022 June 2021
Employees payroll and welfare benefits 1,278,925,403.75 1,197,067,119.97
Depreciation expenses of right-of-use assets 493,729,067.18 479,540,503.22
Technical service fee 128,438,118.24 84,303,596.21
Rentals not included in the measurement of lease
liabilities 126,072,784.84 117,046,188.52
Amortization of long-term deferred expenses 76,029,815.38 69,802,526.37
Depreciation expenses 59,591,381.77 56,762,708.30
Utilities 41,148,967.59 39,863,463.73
Office allowances 35,845,328.50 35,013,829.00
Storage expenses 31,793,439.93 25,614,256.09
Promotion and marketing expenses 19,717,109.56 18,804,920.99
Property management fee 18,969,784.07 16,975,156.97
Amortization of intangible assets 17,996,286.89 18,592,881.19
Entertainment expenses 11,743,734.81 14,061,877.53
Repairing fees 8,109,401.16 7,118,061.32
Market development fee 4,432,280.06 8,168,582.42
Travel allowances 1,949,747.55 2,939,453.78
Conference expenses 678,377.12 525,946.12
Others 131,313,412.39 115,284,458.04
2,486,484,440.79 2,307,485,529.77
46. Administrative expenses
For the six month ended For the six month ended
30 June 2022 30 June 2021
Employees payroll and welfare benefits 380,834,502.76 360,049,901.79
Depreciation expenses 16,984,679.24 17,675,510.90
Office allowances 15,786,794.21 14,281,405.19
Amortization of intangible assets 13,718,107.83 11,402,009.79
Rental expenses 11,610,468.24 16,196,265.77
Depreciation expenses of right-of-use assets 10,566,294.26 12,957,819.94
Amortization of long-term deferred expenses 8,545,345.17 8,283,676.96
Technical service fee 6,861,241.80 6,691,393.49
Entertainment expenses 6,289,130.61 7,342,000.00
Property management fee 6,086,330.72 4,749,071.86
Agency service fee 3,512,785.97 2,841,366.73
Utilities 2,791,313.58 3,107,684.09
Vehicle management expenses 2,540,121.79 3,659,483.25
Repairing fees 2,118,463.79 2,852,529.46
Travel allowances 1,545,821.46 3,444,399.91
Others 19,665,546.39 17,002,417.58
509,456,947.82 492,536,936.71
106
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
47. Finance costs
For the six month ended For the six month ended
30 June 2022 30 June 2021
Interest expenses 142,860,549.18 147,057,897.99
Less: Interest income 34,626,066.94 38,758,729.78
Cash discount 19,130,477.97 18,968,417.81
Exchanges gain/(loss) 3,248,502.79 (415,927.10)
Others 18,849,640.93 18,328,179.85
111,202,147.99 107,243,003.15
A breakdown for interest income is as follows:
For the six month ended For the six month ended
30 June 2022 30 June 2021
Cash 34,626,066.94 38,758,729.78
48. Other incomes
For the six month ended For the six month ended
30 June 2022 30 June 2021
Government grants related to daily operating activities 32,008,641.31 33,665,225.01
VAT reduction for small-scale taxpayers 9,575,400.10 11,566,085.35
VAT additional deduction 1,278,627.33 929,058.98
Taxation service charge refund 1,008,401.70 788,376.92
Self-employed retired soldiers tax benefits 287,764.57 300,870.00
44,158,835.01 47,249,616.26
49. Investment income
For the six month ended For the six month ended
30 June 2022 30 June 2021
Long-term equity investment income under the
equity method 98,868,662.09 157,696,397.81
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
Investment income from the derecognition of financial
assets measured at amortised cost (49,930,502.81) (7,039,046.60)
48,938,159.28 156,587,066.32
107
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
50. Credit impairment losses
For the six month ended For the six month ended
30 June 2022 30 June 2021
Impairment loss of accounts receivable (40,864,896.14) (28,023,731.77)
Impairment loss of other receivables (3,249,934.85) (1,464,818.01)
Impairment loss of notes receivables - 893,564.34
Other non-current assets (135,000.00) (70,000.00)
(44,249,830.99) (28,664,985.44)
51. Impairment losses
For the six month ended For the six month ended
30 June 2022 30 June 2021
Loss from write-down of inventories (6,631,502.14) (318,356.71)
Loss from impairment of contract assets 54,519.75 ( 60,342.41)
Loss from impairment of other non-current assets 78,323.06 ( 38,216.14)
(6,498,659.33) ( 416,915.26)
52. Gain on disposal of assets
For the six month ended For the six month ended
30 June 2022 30 June 2021
Gain on disposal of right-of-use assets 3,297,235.48 (505,084.56)
Gain on disposal of fixed assets (104,413.71) (83,714.99)
3,192,821.77 (588,799.55)
53. Non-operating income
For the six month For the six month Amount classified as
ended ended non-recurring profit or
30 June 2022 30 June 2021 loss
Gain from writing off the unnecessary payment 1,427,644.86 7,298,605.35 1,427,644.86
Government grants 1,349,204.28 1,349,204.28 1,349,204.28
Gain on disposal of non-current assets 56,872.95 60,184.80 56,872.95
Others 1,522,806.30 3,785,326.01 1,522,806.30
4,356,528.39 12,493,320.44 4,356,528.39
108
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
53. 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 2021
2022
Nanning
Resettlement Economic & Subsidies from
Compensation Technological local government
of No. 7 Development Subsidy for support policies Yes No 1,349,204.28 1,349,204.28 Asset related
Zhongyao Area such as attracting
Road Management investment
Committee
54. Non-operating expenses
For the six month For the six month Amount classified
ended ended as non-recurring
30 June 2022 30 June 2021 profit or loss
Losses arising from damage and obsolescence
of non-current assets 677,435.02 273,414.36 677,435.02
Penalty expenses 448,700.72 1,220,928.37 448,700.72
Donation expenses 137,688.00 158,990.50 137,688.00
Others 928,175.00 1,584,618.12 928,175.00
2,191,998.74 3,237,951.35 2,191,998.74
55. Income tax expenses
For the six month ended For the six month ended
30 June 2022 30 June 2021
Current income tax 302,467,105.31 248,326,505.55
Deferred income tax (62,680,750.24) (9,900,246.51)
239,786,355.07 238,426,259.04
The reconciliation from income tax calculated based on applicable tax rates and total profit presented in the consolidated
financial statements to the income taxes is listed below:
For the six month ended 30 June 2022
Profit before income tax 1,034,555,447.84
Tax at the applicable tax rate 258,638,861.96
Effect of different tax rates for some subsidiaries (14,716,366.91)
Adjustments in respect of current tax of previous periods 18,244,499.91
Income not subject to tax (24,004,868.19)
Expenses not deductible for tax 1,691,854.32
Use of prior years' unrecognized tax losses (741,527.42)
Unrecognised deductible temporary differences and tax losses 673,901.40
Income tax 239,786,355.07
109
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
56. Notes to items in the cashflow statement
(1) Other cash receipts relating to operating activities
For the six months ended For the six months ended
30 June 2022 30 June 2021
Rent income 44,133,350.15 42,368,174.77
Interest income 39,718,910.53 38,758,729.78
Received other government grants except tax refund 14,734,893.65 35,612,619.03
Received emergency medical supplies reserve 18,938,298.44 48,642,430.00
Others 176,073,126.15 203,208,921.88
293,598,578.92 368,590,875.46
(2) Other cash payments relating to operating activities
For the six months ended For the six months
30 June 2022 ended
30 June 2021
Rental expenses 128,090,072.24 133,233,956.70
Office expenses 55,332,748.84 49,295,234.19
Advertising expenses 23,126,119.78 19,109,323.81
Entertainment expenses 17,350,415.36 21,403,877.53
Bank expenses 15,317,062.81 17,472,673.47
Travel expenses 4,008,620.55 6,383,853.69
Others 467,860,003.29 685,881,277.97
711,085,042.87 932,780,197.36
(3) Other cash receipts relating to investing activities
For the six months ended For the six months
30 June 2022 ended
30 June 2021
Others - 54,984.60
110
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
56. 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 2022 30 June 2021
Payment of financing restricted monetary funds 392,205,448.15 -
Financing restricted monetary funds received 79,628,828.81 34,940,555.62
Received loan provided by minority shareholders - 69,150,000.00
471,834,276.96 104,090,555.62
(5) Other cash payments relating to financing activities
For the six months ended For the six months ended
30 June 2022 30 June 2021
Lease payment 579,615,796.49 536,275,009.28
Payment of financing restricted monetary funds 84,111,199.22 -
Repayment of loans to minority shareholders 46,500,000.00 50,400,000.00
Bank factoring payable - 251,370,239.59
710,226,995.71 838,045,248.87
111
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
57. 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 2022 30 June 2021
Net profit 794,769,092.77 907,994,454.49
Add: Provisions for asset impairment 50,748,490.32 29,081,900.70
Depreciation of fixed assets 85,304,380.21 78,401,603.02
Depreciation of right-of-use assets 525,182,245.87 493,632,821.29
Amortization of intangible assets 32,954,665.58 30,503,457.69
Amortization of long-term prepaid expenses 88,623,080.80 79,098,080.34
Gains/(losses) on disposal of fixed assets, intangible assets and other
long-term assets (3,192,821.77) 588,799.55
Gains/(losses) on scrapping of fixed assets 620,562.07 213,229.56
Finance expenses 122,427,202.14 126,395,365.24
Investment losses (48,938,159.28) (156,587,066.32)
(Increase)/decrease in deferred tax assets (56,399,913.39) (10,036,816.58)
(Decrease)/increase in deferred tax liabilities (6,280,836.85) 417,984.79
Decrease in inventories (286,419,338.18) (868,988,935.78)
Increase in operating receivables items (2,403,154,727.73) (3,060,847,945.57)
(Decrease)/increase in operating payable items 2,236,198,043.39 3,561,205,596.30
Others (90,777,906.78) 18,300,754.85
Net cash generated from operating activities 1,041,664,059.17 1,229,373,283.57
112
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
57. Supplementary information of cashflow statement (Continued)
(2) Movement of cash
For the six months ended For the six months ended
30 June 2022 30 June 2021
Cash at the end of the period 5,278,749,922.63 5,537,606,217.43
Less: Cash at the beginning of the period 4,733,512,222.35 5,405,113,257.99
Net increase in cash 545,237,700.28 132,492,959.44
(3) Cash and cash equivalent
30 June 2022 31 December 2021
Cash
Inclue: Cash on hand 8,343,211.00 4,642,730.62
Bank deposits on demand 5,270,406,711.63 4,728,869,491.73
Ending banlance cash and cash equivalent 5,278,749,922.63 4,733,512,222.35
113
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
58. Assets under restricted ownership or right of use
Book value Reasons
Cash and bank balances 294,808,514.11 Note 1
Notes receivable that have been endorsed and
are outstanding at the balance sheet date 11,080,505.71 Note 2
305,889,019.82
Note 1: As at 30 June 2022, the the Group’s cash and bank balances with a book value of RMB 294,808,514.11 (December
31, 2021: RMB 392,646,858.59) are mainly Bankers' acceptances deposits, concessionary reserve funds and other restricted
monetary funds etc. (Note V.1)
Note 2: As at 30 June 2022, the Group had notes receivable of RMB11,080,505.71, endorsed but not due (31 December
2021: notes receivable of RMB 31,886,681.19). (Note V.2)
59. Government grants
The amount recorded
Items of financial into profit or loss for
Type Amount statements the current period
Tax return 18,301,369.35 Other income 18,301,369.35
Other income/
Stabilitation allowances 6,891,637.35 Deferred income 6,891,637.35
Guangzhou headquarters enterprises leasing
office buildings incentive subsidies in 2019 2,000,000.00 Other income 2,000,000.00
Resettlement Compensation of No. 7 Zhongyu Non-operating income
Road 1,349,204.28 /Deferred income 1,349,204.28
Government support fund 1,211,065.88 Other income 1,211,065.88
Construction fund of the modern supply chain Other income/
system in the central circulation field in 2018 988,540.86 Deferred income 988,540.86
Government grants for COVID-19 955,282.64 Other income 955,282.64
Other income
Enterprise Economic Reward 308,624.96 /Deferred income 308,624.96
Guangzhou Logistics Standardization Pilot Other income/
Project 273,123.42 Deferred income 273,123.42
Unemployment insurance support for Other income/
enterprises to stabilize job subsidies 168,625.00 Deferred income 168,625.00
Foshan City reserve drug unit grants 150,000.00 Other income 150,000.00
114
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
59 Government grants (Continued)
The amount recorded
Items of financial into profit or loss for
Type Amount statements the current period
Guangzhou Finance Bureau modern service
industry comprehensive pilot work of the Other income/
central financial subsidies in 2013 150,000.00 Deferred income 150,000.00
Special funds for industrial transformation and Other income
upgrading in dualized integration projects 139,907.58 /Deferred income 139,907.58
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 centre 71,428.56 /Deferred income 71,428.56
Special Fund for the construction of Enterprise
Research and development Institutions in Other income
Guangzhou 44,705.94 /Deferred income 44,705.94
Shenyang Tiexi District Government Housing Other income
Purchase Subsidy 40,561.32 /Deferred income 40,561.32
Other income/Finance
Industrialization application project of patented costs/Administrative
incubator for pharmaceutical cold chain /Selling expenses
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
Guangzhou special subsidy for commerce and Other income
trade circulation industry 8,559.36 /Deferred income 8,559.36
Other income/Finance
costs/Administrative
/Selling expenses
Other government grants 189,644.65 /Deferred income 189,644.65
115
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
VI. Changes in scope of consolidation
1. Establishment of subsidiary
30 June 2022 For the six month ended
30 June 2022
Net assets Net profit
Sinopharm Holding Chongzuo Co., Ltd(“Sinopharm Chongzuo”) - -
On June 10 2022, the Group and Guangxi Zhenghao Pharmaceutical Co., Ltd. established Sinopharm Chongzuo, with subscribed
registered capitals of RMB24,000,000 and RMB6,000,000 respectively. After the establishment, the Group holds 80% of its equity.
On 18 July 2022, the payment has been completed.
2. Cancellation of subsidiaries
Registered Shareholding
Principal place Place of Nature of
Subsidiary capital Reasons
of business establishment business Indirect Direct
(RMB0’000)
Sinopharm Guoda
Taiyuan Tongxinli
Pharmacy Co., Ltd.
(“Taiyuan Tongxinli”) Taiyuan Taiyuan 560.00 Commercial - 100.00 Cancellation
116
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 acquisition
business incorporation business Direct Indirect
Sinopharm Holding
Shenzhen Logistics
Co., Ltd. (hereafter Business
refered combinations
as“Sinopharm involving entities
Shenzhen under common
Logistics") Shenzhen Shenzhen Services 100.00% - control
Sinopharm Holding
Shenzhen
Traditional & Herbal
Medicine Co., Ltd. Business
(hereafter referred combinations
as “Sinopharm involving entities
Traditional & Herbal under common
Medicine") Shenzhen Shenzhen Commercial 100.00% - control
Business
combinations
involving entities
Sinopharm Shenzhen under common
Jianmin Shenzhen Shenzhen Commercial 100.00% - control
Business
combinations
involving entities not
under common
Sinopharm Yanfeng Shenzhen Shenzhen Commercial 51.00% - control
Sinopharm Accord
Medical
Devices(Shenzhen)
Co., Ltd.
(“Sinopharm Accord
Devices ") Shenzhen Shenzhen Commercial 60.00% - Establishment
Business
combinations
involving entities
under common
Sinopharm Guangzhou Guangzhou Guangzhou Commercial 100.00% - control
Sinopharm Holding
Guangzhou Medical
Treatment Co., Ltd. Guangzhou Guangzhou Commercial - 51.00% Establishment
Sinopharm Holding
Guangyi Health
Management
(Zhanjiang) Co., Ltd. Zhanjiang Zhanjiang Commercial - 60.00% Establishment
Sinopharm Holding
Guangzhou Medical
Technology Co., Ltd. Guangzhou Guangzhou Commercial - 51.00% Establishment
Sinopharm Holding
Guangzhou Medical
Supply Chain
Service Co., Ltd. Guangzhou Guangzhou Commercial - 51.00% Establishment
Business
combinations
involving entities not
Sinopharm Holding under common
Heyuan Co., Ltd.(a) Heyuan Heyuan Commercial - 70.00% control
Sinopharm Holding
Foshan Medical
Consumables
Supply Chain Co.,
Ltd. Foshan Foshan Commercial - 70.00% Establishment
117
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Holding Guangzhou involving entities not under
Huadu Co., Ltd. Guangzhou Guangzhou Commercial - 70.00% 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(b) Huizhou Huizhou Commercial - 100.00% common control
Business combinations
involving entities not under
Sinopharm Zhaoqing(c) Zhaoqing Zhaoqing Commercial - 100.00% common control
Business combinations
involving entities not under
Sinopharm Jiangmen(d) Jiangmen Jiangmen Commercial - 100.00% common control
Business combinations
involving entities not under
Sinopharm Shaoguan Shaoguan Shaoguan Commercial - 70.00% common control
Sinopharm Holding Zhongshan
Co., Ltd. (hereafter referred
as “Sinopharm
Zhongshan")(e) Zhongshan Zhongshan Service - 100.00% Establishment
Sinopharm Holding Shantou Business combinations
Co., Ltd. (hereafter referred involving entities not under
as “Sinopharm Shantou")(f) Shantou Shantou Commercial - 100.00% common control
Business combinations
Sinopharm Holding Guangdong involving entities under
Hengxing Co., Ltd. Guangzhou Guangzhou Commercial - 100.00% common control
Business combinations
Guangdong Huixin Investment involving entities under
Co., Ltd. Guangzhou Guangzhou Commercial - 100.00% common control
Sinopharm Holding Foshan Co., Business combinations
Ltd. (hereafter referred as involving entities under
“Sinopharm Foshan")(g) Foshan Foshan Commercial - 100.00% common control
Sinopharm Holding Guangdong
Logistics Co., Ltd. (hereafter Business combinations
referred as “Sinopharm involving entities under
Guangdong Logistics")(h) Guangzhou Guangzhou Commercial - 100.00% common control
Sinopharm Holding Guangdong
Yuexing Co., Ltd. (hereafter Business combinations
referred as “Sinopharm involving entities under
Yuexing”) Guangzhou Guangzhou Commercial - 100.00% common control
Business combinations
involving entities not under
Sinopharm Dongguan(i) 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 under
Nanhai Pharmaceutical Group Foshan Foshan Commercial - 100.00% common control
Foshan Nanhai Uptodate &
Special Medicines Co.,
Ltd.( hereafter referred as Business combinations
“Foshan Nanhai Uptodate & involving entities under
Special Medicines”)(j) Foshan Foshan Commercial - 100.00% common control
Foshan Nanhai Medicine Co.,
Ltd. ( hereafter referred as Business combinations
“Foshan Nanhai involving entities under
Medicine”)(k) Foshan Foshan Commercial - 100.00% common control
Sinopharm Holding Guangdong
Special Medicines
( hereafter referred as Business combinations
“Sinopharm Guangdong involving entities under
Special Medicines”)(l) Guangzhou Guangzhou Commercial - 100.00% common control
118
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
South Pharma & Trade(m) Guangzhou Guangzhou Commercial - 100.00% common control
Business combinations
involving entities not under
Sinopharm Zhuhai(n) Zhuhai Zhuhai Commercial - 100.00% common control
Business combinations
involving entities not under
Sinopharm Maoming Maoming Maoming Commercial - 100.00% common control
Business combinations
involving entities not under
Guangzhou Medicine(o) Guangzhou Guangzhou Commercial - 70.00% common control
Business combinations
involving entities not under
Yangjiang Medicine Yangjiang Yangjiang Commercial - 70.00% 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 Services - 100.00% common control
Business combinations
involving entities under
Sinopharm Yulin Yulin Yulin Commercial - 100.00% common control
Business combinations
involving entities under
Sinopharm Wuzhou Wuzhou Wuzhou Commercial - 99.90% common control
Sinopharm Baise Baise Baise Commercial - 100.00% Establishment
Sinopharm Guilin Guilin Guilin Commercial - 100.00% Establishment
Sinopharm Guigang Guigang Guigang Commercial - 100.00% Establishment
Sinopharm Beihai Beihai Beihai Commercial - 100.00% Establishment
Sinopharm Holding Medical
Supply Chain Service
(Guangxi) Co., Ltd. Nanning Nanning Commercial - 30.60% Establishment
Baiyi Pharmacy Nanning Nanning Commercial - 51.00% Establishment
Sinopharm Hezhou Hezhou Hezhou Commercial - 100.00% Establishment
Sinopharm Qinzhou Qinzhou Qinzhou Commercial - 100.00% Establishment
Sinopharm Hechi Hechi Hechi Commercial - 100.00% Establishment
Business combinations
involving entities under
Sinopharm Liuzhou Liuzhou Liuzhou Commercial - 51.00% common control
Guigang Pharmacy Guigang Guigang Commercial - 100.00% Establishment
Sinopharm Chongzuo(p) Chongzuo Chongzuo Commercial - 80.00% Establishment
Business combinations
involving entities under
Guoda Drugstore Shanghai Shanghai Commercial 60.00% - common control
Business combinations
involving entities under
Shanghai Chain Shanghai Shanghai Commercial - 100.00% common control
Business combinations
involving entities under
Shanghai Dongsheng Shanghai Shanghai Commercial - 100.00% common control
Business combinations
involving entities under
Shanghai Dongxin Shanghai Shanghai Commercial - 100.00% common control
Business combinations
involving entities under
Shanghai Shanghong Shanghai Shanghai Commercial - 51.00% common control
Business combinations
involving entities under
Shanghai Guodong Shanghai Shanghai Medical clinic - 100.00% common control
119
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Guoda Yongsheng Shanghai Shanghai Commercial - 55.00% Establishment
Shanghai Guoda Haohai
Pharmacy Co., Ltd. Shanghai Shanghai Commercial - 51.00% Establishment
Shanghai Ruijing Shanghai Shanghai Commercial - 55.00% Establishment
Business combinations
involving entities under
Yangzhou adesheng Yangzhou Yangzhou Commercial - 93.68% common control
Business combinations
Tianjin Guoda Pharmacy Chain involving entities under
Store Co., Ltd. Tianjin Tianjin Commercial - 80.00% common control
Business combinations
Beijing Guoda Pharmacy Chain involving entities under
Store Co., Ltd. Beijing Beijing Commercial - 100.00% common control
Business combinations
involving entities under
Guoda Zhejiang Hangzhou Hangzhou Commercial - 100.00% common control
Business combinations
involving entities under
Zhejiang Dongshan Hangzhou Hangzhou Commercial - 51.00% 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
Guoda Guangzhou Guangzhou Guangzhou 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 Taishan Taishan Taishan Commercial - 70.00% common control
Sinopharm Holdings Guozhi
Pharmacy Chain (Heyuan)
Co., Ltd. Heyuan Heyuan Commercial - 70.00% Establishment
Business combinations
involving entities under
Guoda Guangxi Liuzhou Liuzhou Commercial - 100.00% common control
Business combinations
involving entities under
Guangxi Consulting Nanning Nanning Commercial - 100.00% common control
Business combinations
involving entities under
Guoda Ningxia Yinchuan Yinchuan Commercial - 70.00% common control
Business combinations
involving entities under
Guoda Xinjiang Urumqi Urumqi Commercial - 51.00% common control
Business combinations
involving entities under
Guoda Shenyang Shenyang Shenyang Commercial - 51.00% common control
Sinopharm Guoda Drug Store
Anshan Chain Co., Ltd. Anshan Anshan Commercial - 51.00% Establishment
Sinopharm holding Guoda
pharmacy yongxingtang
chain (Chaoyang) Co., Ltd. Chaoyang Chaoyang Commercial - 51.00% Establishment
Business combinations
Guoda pharmacy (Chaoyang) involving entities not under
Ren'ai pharmacy Co., Ltd. Chaoyang Chaoyang Commercial - 51.00% common control
Liaoning Guoda Pharmaceutical
Co., Ltd. Shenyang Shenyang Commercial - 100.00% Establishment
Liaoning Health Shenyang Shenyang Commercial - 100.00% Establishment
Liaoning Guoda Pharmacy
Chain Co., Ltd. Dalian Dalian Commercial - 100.00% Establishment
Liaoning Huludao Huludao Huludao Commercial - 100.00% Establishment
120
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Guoda Nanjing Nanjing Nanjing Commercial - 60.00% common control
Business combinations
involving entities under
Guoda Shandong Linyi Linyi Commercial - 55.00% common control
Guoda Rizhao Rizhao Rizhao Commercial - 100.00% Establishment
Guoda Pharmacy (Heze) Co.,
Ltd. (hereafter referred as
“Guoda Heze”) (q) Heze Heze Commercial - 51.00% Establishment
Business combinations
Anhui Guoda Pharmacy Chain involving entities under
Store Co., Ltd. Hefei Hefei Commercial - 60.00% common control
Business combinations
involving entities under
Guoda Quanzhou Quanzhou Quanzhou Commercial - 51.00% common control
Business combinations
involving entities under
Guoda Hunan Hengyang Hengyang Commercial - 51.00% common control
Hunan Guoda Pharmacy
Pharmaceutical Co., Ltd.
(hereafter referred as
“Hunan Medicine”) (r) Hengyang Hengyang Commercial - 100.00% Establishment
Business combinations
involving entities under
Shanxi Wanmin Taiyuan Taiyuan Commercial - 85.00% common control
Business combinations
involving entities under
Changzhi Wanmin Changzhi Changzhi Commercial - 51.00% common control
Business combinations
Shanxi Tongfeng Pharmacy involving entities under
Logistics Co., Ltd. Taiyuan Taiyuan Commercial - 100.00% common control
Business combinations
Medical involving entities under
Wanmin Chain Taiyuan Taiyuan services - 100.00% common control
Business combinations
involving entities under
Xiaoyi Wanmin Xiaoyi Xiaoyi Commercial - 70.00% common control
Jinzhong Yuci Guoda Wanmin
Clinic Co., Ltd. Jinzhong Jinzhong Commercial - 100.00% Establishment
Huimin Lvliang LvLiang LvLiang Commercial - 51.00% Establishment
Business combinations
involving entities under
Liyang Guoda Liyang Liyang Commercial - 80.00% common control
Business combinations
involving entities under
Guoda Henan Pingdingshan Pingdingshan Commercial - 60.00% common control
Business combinations
involving entities under
Guoda Inner Mongolia Hohhot Hohhot Commercial - 96.70% common control
Business combinations
involving entities under
Guoda Hulun Buir Hulun Buir Hulun Buir Commercial - 51.00% common control
Guoda Ulanqab Ulanqab Ulanqab Commercial - 60.00% Establishment
Guoda Manchuria Manchuria Manchuria Commercial - 51.00% Establishment
Guoda Bayannur Bayannur Bayannur Commercial - 80.00% Establishment
Inner Mongolia Medicine Hohhot Hohhot Commercial - 100.00% Establishment
Business combinations
involving entities under
Hebei Lerentang Shijiazhuang Shijiazhuang Commercial - 60.00% common control
Sinopharm Lerentang Business combinations
Shijiazhuang involving entities under
Pharmaceutical Co., Ltd. Shijiazhuang Shijiazhuang Commercial - 100.00% common control
121
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Guoda Jiangmen(s) Jiangmen Jiangmen Commercial - 65.00% common control
Guoda Jianfeng (Jiangmen)
Pharmaceutical Chain Co., Establishment
Ltd. Jiangmen Jiangmen Commercial - 51.00%
Business combinations
involving entities under
Shanxi Yiyuan Taiyuan Taiyuan Commercial - 80.00% common control
Sinopharm Holding Guoda Business combinations
Shanxi Pharmaceutical Co., involving entities not under
Ltd. Taiyuan Taiyuan Commercial - 100.00% common control
Business combinations
involving entities under
ForMe Medicines Shanghai Shanghai Commercial - 97.00% common control
Business combinations
involving entities under
ForMe Pharmacy Chain Store Shanghai Shanghai Commercial - 99.76% common control
Shanghai Yutaitang Chinese Business combinations
Traditional Medicine Clinic involving entities under
Co., Ltd. Shanghai Shanghai Commercial - 100.00% common control
Business combinations
involving entities under
ForMe Xuhui Shanghai Shanghai Commercial - 100.00% common control
Business combinations
involving entities under
Beijing Golden Elephant Beijing Beijing Commercial - 53.13% common control
Business combinations
Sanhe Liyang Golden Elephant involving entities under
Pharmacy Co., Ltd. (t) Langfang Langfang Commercial - 100.00% common control
Business combinations
involving entities not under
Golden Elephant Guoxing Beijing Beijing Commercial - 100.00% common control
Sinopharm Holding Guoda
Pharmacy Zhengzhou Chain
Store Co., Ltd Zhengzhou Zhengzhou Commercial - 60.00% Establishment
Fujian Guoda Pharmaceutical
Establishment
Co., Ltd. Xiamen Xiamen Commercial - 100.00%
Business combinations
involving entities under
Guoda Fujian chain Xiamen Xiamen Commercial - 100.00% common control
Business combinations
involving entities not under
Guoda Pu’er Pu’er Pu’er Commercial - 60.00% common control
Business combinations
involving entities not under
Shanghai Dingqun Shanghai Shanghai 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
involving entities not under
Jilin Yihe Drug Store Co., Ltd. Changchun Changchun Commercial - 100.00% common control
Business combinations
involving entities not under
Jilin Donglong Changchun Changchun Commercial - 100.00% common control
Yushu City Dinghe Medical Business combinations
Pharmaceutical Technology involving entities not under
Co., Ltd. Changchun Changchun Commercial - 51.00% common control
Business combinations
involving entities not under
Yanji Xianghe Yanji Yanji Commercial - 51.00% common control
Business combinations
involving entities under
Pudong Medicine Shanghai Shanghai Commercial - 75.00% common control
122
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Shanghai Yanghetang Business combinations
Pharmaceutical Chain involving entities under
Operation Co., Ltd. Shanghai Shanghai Commercial - 100.00% common control
Business combinations
involving entities under
Pudong Yanghetang Shanghai Shanghai Commercial - 100.00% common control
Business combinations
CDFY involving entities not under
Shenyang Shenyang Commercial - 100.00% common control
Business combinations
involving entities not under
Shandong Chengda Fangyuan Qingdao Qingdao Commercial - 100.00% common control
Business combinations
Liaoning Chengda Pharmacy involving entities not under
Chains Shenyang Shenyang Commercial - 100.00% common control
Chengda Fangyuan (Liaoning) Business combinations
New and Special Drugs involving entities not under
Chain 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 services - 100.00% common control
Business combinations
involving entities not under
Liaoning Cdfy Pharm Shenyang Shenyang Commercial - 100.00% common control
Business combinations
involving entities not under
Dalian Zhengda Dalian Dalian Commercial - 100.00% common control
Business combinations
Qinghuangda involving entities not under
Hebei Chengda Fangyuan o Qinghuangdao Commercial - 100.00% common control
Liaoning Chengda Fangyuan Business combinations
Pharmaceutical Logistics involving entities not under
Co., Ltd. Shenyang Shenyang services - 100.00% common control
Business combinations
Liaoning Chengda Fangyuan 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 control
Jilin Chengda Fangyuan Business combinations
Pharmaceutical Chain Co., involving entities not under
Ltd. Changchun Changchun Commercial - 99.00% common control
Business combinations
Inner Mongolia Chengda involving entities not under
Fangyuan Medicine Co., Ltd. Chifeng Chifeng Commercial - 70.00% common control
Inner Mongolia Chengda Business combinations
Fangyuan Pharmaceutical involving entities not under
Chain Co., Ltd. Chifeng Chifeng Commercial - 99.00% common control
Business combinations
Xishuangban involving entities not under
Disheng Medicine na Xishuangbanna Commercial - 70.00% common control
Business combinations
Xishuangban involving entities not under
Disheng Pharmaceutical Chain na Xishuangbanna Commercial - 70.00% common control
123
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 27 July 2022, the registered capital of Guoxin Heyuan was changed from RMB13,400,000 to RMB22,000,000, after
which the Group contributed RMB15,400,000 to the registered capital and Heyuan Mairui Trading Company Limited
contributed RMB6,600,000 to the registered capital, which was completed on 27 July 2022. The Group's shareholding ratio
remains unchanged.
b. On 25 April 2022, the registered capital of Sinopharm Huizhou was changed from the original RMB 38 million to RMB 50
million, after which, the registered capital subscibed by the Group was RMB 50 million. As of 30 June 2022, the payment has
been completed.
c. On 31 March 2022, the registered capital of Sinopharm Zhaoqing was changed from RMB 40 million to RMB 80 million, after
which, registered capital subscibed by the Group was RMB 80 million. As of 30 June 2022, the payment has been
completed.
d. On 28 March 2022, the registered capital of Sinopharm Jiangmen was changed from RMB 60 million to RMB 80 million, after
which, the registered capital subscribed by the Group was RMB 80 million. As of 30 June 2022, the payment has been
completed.
e. On 1 April 2022, the registered capital of Sinopharm Zhongshan was changed from RMB 30 million to RMB 50 million, after
which, the registered capital subscribed by the Group was RMB 50 million. As of 30 June 2022, the payment has been
completed.
f. On 28 March 2022, the registered capital of Sinopharm Shantou was changed from RMB 21 million to RMB 50 million, after
which, the registered capital subscribed by the Group was RMB 50 million. As of 30 June 2022, the payment has been
completed.
g. On 1 April 2022, the registered capital of Sinopharm Foshan was changed from RMB 41 million to RMB 50 million, after
which, the registered capital subscribed by the Group was RMB 50 million. As of 30 June 2022, the payment has been
completed.
h. On 11 April 2022, the registered capital of Sinopharm Guangdong Logistics was changed from the RMB 13 million to RMB
20 million, after which, the registered capital subscribed by the Group was RMB 20 million. As of 30 June 2022, the payment
has been completed.
i. On 17 May 2022, the registered capital of Sinopharm Dongguan was changed from the RMB 73 million to RMB 100 million,
after which, the registered capital subscribed by the Group was RMB 100 million. As of 30 June 2022, the payment has been
completed.
j. On 27 April 2022, the registered capital of Foshan Nanhai Uptodate & Special Medicines was changed from the RMB 40
million to RMB 70 million, after which, the registered capital subscribed by the Group was RMB 70 million. As of 30 June
2022, the payment has been completed.
124
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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):
k. On 27 April 2022, the registered capital of Foshan Nanhai Medicine was changed from the RMB 40 million to RMB 70 million,
after which, the registered capital subscribed by the Group was RMB 70 million. As of 30 June 2022, the payment has been
completed.
l. On 13 April 2022, the registered capital of Sinopharm Guangdong Special Medicines was changed from the RMB 50 million
to RMB 80 million, after which, the registered capital subscribed by the Group was RMB 80 million. As of 30 June 2022, the
payment has been completed.
m. On 8 April 2022, the registered capital of South Pharma & Trade was changed from the RMB 30 million to RMB 100 million,
after which, the registered capital subscribed by the Group was RMB 100 million. As of 30 June 2022, the payment has been
completed.
n. On 19 April 2022, the registered capital of Sinopharm Zhuhai was changed from the RMB 30 million to RMB 50 million, after
which, the registered capital subscribed by the Group was RMB 50 million. As of 30 June 2022, the payment has been
completed.
o. On 29 June 2022, the registered capital of Guangzhou Medicine was changed from the RMB 2 million to RMB 8 million,
after which, the registered capital subscribed by the Group was RMB 8 million. As of 30 June 2022, the payment has been
completed.
p. On 10 June 2022, the Group and Guangxi Zhengzheng Pharmaceutical Co., Ltd. established Sinopharm Chongzuo, with
subscribed registered capitals of RMB 24 million and RMB 6 million respectively. After the establishment, the Group holds 80%
of its equity. On 18 July 2022, the payment has been completed.
q. On 10 September 2021, the Group and Shandong Luzhong Investment Co., Ltd. (“Shandong luzhong”) accumulatively
invested RMB 5.1 million and RMB 4.9 million to set up Guoda Heze respectively. After the establishment, the Group held 51%
of its equity interest in the company. As of 30 June 2022, the payment has been completed.
r. On 31 December 2021, the Group contributed capital for the establishment of Hunan Medicine with a subscribed registered
capital of RMB2,800,000. As of June 30, 2022, the capital contribution has been completed
s. On 14 January 2022, Sinopharm holding Guoda pharmacy Jiangmen Chain Co., Ltd. was renamed as Sinopharm United
Guoda (Jiangmen) Co., Ltd.
t. On 6 July 2022, Sanhe Liyang Golden Elephant Pharmacy Co., Ltd. has completed the industrial and commercial
cancellation, and the cancellation announcement period was from May 16, 2022 to June 30, 2022.
125
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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% 38,685,894.70 - 2,002,600,094.57
126
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
VII Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(3) Key financial information of important non-wholly owned subsidiaries
30 June 2022 31 December 2021
Subsidiaries Current Non-current Current Non-current Current Non-current Current Non-current
Total assets Total liabilities Total assets Total liabilities
assets assets liabilities liabilities assets assets liabilities liabilities
Guoda
Pharmacy 9,413,155,933.96 6,932,043,431.25 16,345,199,365.21 9,086,807,541.64 1,465,637,180.61 10,552,444,722.25 9,093,088,349.46 6,890,746,889.09 15,983,835,238.55 8,912,034,922.32 1,389,487,840.12 10,301,522,762.44
For the six months ended 30 June 2022 For the six months ended 30 June 2021
Subsidiaries Total comprehensive Cash flow from Total comprehensive Cash flow from
Operating revenue Net profit Operating revenue Net profit
income operating activities income operating activities
Guoda Pharmacy 11,149,016,465.15 141,089,231.46 141,089,231.46 629,652,996.63 10,841,326,194.08 263,262,365.37 263,262,365.37 786,526,215.87
127
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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（a） 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（b） Zhanjiang Zhanjiang Commercial - 10.00% Equity
Jialong Hainan Chengmai Chengmai Commercial - 25.00% Equity
(a) Shyndec Pharma 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 has one vote on the board, taking 11.11% of the
voting rights. Except for special resolutions adopted by half of the board of directors. The Group has significant influence
over Shyndec Pharma.
(b) 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 20.00% of voting rights. The voting right of resolutions of the
board of directors is one vote for one person. Except for some special matters, other resolutions of the board of directors are
approved by more than two-thirds of all directors. Therefore, the Group has significant influence over Guangdong Jianhui.
128
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022/ For the six months ended 1 January 2021/ For the six months ended
30 June 2022 30 June 2021
Sinopharm Sh Zhijun Main Luck Sinopharm S Zhijun Main Luck
yndec Medicine Pharmaceutical hyndec Medicine Pharmaceutical
Current assets 11,143,064,232.15 1,449,663,154.08 949,215,595.83 10,886,446,261.52 1,435,210,018.93 1,084,994,896.84
Non-current
assets 7,957,423,245.78 257,044,526.31 189,445,706.55 8,183,515,130.93 261,609,950.81 161,776,731.97
Total assets 19,100,487,477.93 1,706,707,680.39 1,138,661,302.38 19,069,961,392.45 1,696,819,969.74 1,246,771,628.81
Current
liabilities 5,560,462,826.88 626,917,615.54 268,401,326.35 6,842,570,937.46 671,896,297.56 264,584,338.32
Non-current
liabilities 3,027,055,232.60 9,982,767.18 14,610,760.83 1,857,531,965.46 11,570,731.00 14,610,760.83
Total liabilities 8,587,518,059.48 636,900,382.72 283,012,087.18 8,700,102,902.92 683,467,028.56 279,195,099.15
Non-controlling
interests 1,797,915,657.60 - - 1,777,094,904.67 - -
Shareholders’
equity
attributable
to
shareholder
s of the
parent 8,715,053,760.85 1,069,807,297.67 855,649,215.20 8,592,763,584.86 1,013,352,941.18 967,576,529.66
Portion of net
assets
calculated
by
shareholding
ratio 1,418,328,612.65 524,205,575.84 301,102,958.84 1,398,901,911.62 496,542,941.16 340,490,180.80
Carrying value
of equity
investment
in joint
ventures 1,418,328,612.65 524,205,575.84 301,102,958.84 1,398,901,911.62 496,542,941.16 340,490,180.800
Operating
revenue 6,387,024,045.16 696,481,359.17 473,188,187.20 7,632,136,688.61 746,410,222.02 476,292,028.69
Net profit 330,017,532.36 56,454,356.49 88,072,685.53 541,049,057.92 57,257,762.64 98,308,111.37
Other
comprehensi
ve income (23,176.75) - - 398,371.61 - -
Total
comprehensi
ve income 329,994,355.61 56,454,356.49 88,072,685.53 541,447,429.53 57,257,762.64 98,308,111.37
Dividends
received
from joint
ventures this
period - - 70,380,000.00 16,714,220.20 - -
129
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022/ For the six 1 January 2021/ For the six months
months ended 30 June 2022 ended 30 June 2021
associated enterprises：
Carrying value of equity investment 227,987,270.91 223,897,513.16
Net profit 4,089,757.75 25,668,595.57
Total comprehensive income 4,089,757.75 25,668,595.57
Excess losses incurred by joint ventures or associates:
Accumulated unrecognized 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.
130
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
VIII Risks related to financial instruments
1. Classification of financial instruments
30 June 2022:
Financial assets at fair
Financial value through profit Financial assets at fair value through
assets Financial assets at
or loss amortised cost other comprehensive income Total
Mandatorily required Mandatorily
Designated
required
Cash and bank
balances - 5,573,558,436.74 - - 5,573,558,436.74
Notes
receivable - 634,263,913.50 - - 634,263,913.50
Accounts
receivable - 19,066,131,973.48 - - 19,066,131,973.48
Receivable
financing - - 632,101,362.15 - 632,101,362.15
Other
receivables - 624,860,452.74 - - 624,860,452.74
Other non-
current
financial
assets 135,974,908.51 - - - 135,974,908.51
Other equity
instrument
investment - - - 62,488,312.99 62,488,312.99
135,974,908.51 25,898,814,776.46 632,101,362.15 62,488,312.99 26,729,379,360.11
Financial liabilities Financial liabilities at amortised cost
Short-term borrowings 3,099,020,701.18
Notes payable 6,390,557,494.64
Accounts payable 11,329,463,911.07
Other payables 2,248,815,946.18
Non-current liabilities due within 1 year 858,086,989.55
Lease liabilities 1,391,474,612.88
Long-term borrowings 62,633,794.44
Other non-current liabilities 71,400,000.00
25,451,453,449.94
131
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 - 5,126,159,080.94 - - 5,126,159,080.94
Notes
receivable - 680,196,380.57 - - 680,196,380.57
Accounts
receivable - 15,964,603,345.91 - - 15,964,603,345.91
Receivable
-
financing - - 1,027,226,940.21 1,027,226,940.21
Other
receivables - 718,089,129.10 - - 718,089,129.10
Other non-
current
financial
assets 135,974,908.51 - - - 135,974,908.51
Other equity
instrument
investment - - - 62,488,312.99 62,488,312.99
135,974,908.51 22,489,047,936.52 1,027,226,940.21 62,488,312.99 23,714,738,098.23
Financial liabilities Financial liabilities at amortised cost
Short-term borrowings 1,930,467,146.38
Notes payable 7,660,216,823.68
Accounts payable 9,057,718,968.14
Other payables 1,714,746,986.46
Non-current liabilities due within 1 year 848,328,648.14
Lease liabilities 1,375,427,877.28
Long-term borrowings 71,637,173.89
Other non-current liabilities 71,400,000.00
22,729,943,623.97
132
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022, the carrying value of the commercial acceptances endorsed by the Group
to the suppliers for settlement of accounts payable was RMB0.00 (31 December 2021:
RMB0.00); the carrying value of the banker's acceptances endorsed to the suppliers for
settlement of accounts payable was RMB11,080,505.71 (December 31, 2021:
RMB31,886,681.19). As at 30 June 2022, the carrying value of the Group's commercial
acceptances that have been discounted to banks was RMB0.00 (31 December 2021 : Nil). The
Group considers that it retains substantially all of its risks and rewards, including the risk of
default associated with it, and therefore continues to recognize its and its settled accounts
payable related to it in full. After the transfer, the Group no longer retains the right to use it,
including the right to sell, assign or pledge it to other third parties.
As at 30 June 2022, the carrying value of the Group's accounts payable settled by it totaled
RMB11,080,505.71 (31 December 2021: RMB31,886,681.19).
133
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022, the Group had endorsed bank acceptance bills (the "Endorsed Bills") with
a carrying amount of RMB900,427,092.54 (31 December 2021: RMB1,222,202,123.45) to
certain of its suppliers to settle accounts payable due to such suppliers. As at 30 June 2022,
the Group had discounted bank acceptance bills (the "Discounted Bills") with a carrying amount
of RMB1,383,829,318.51 (31 December 2021: RMB984,152,993.81) 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 2022, 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. Endorsements occurred in a roughly balanced
manner during the year.
During 2022, the Group has not recognised any gain or loss on the date of transfer of the
receivable financing. No gains or losses were recognised from the Continuing Involvement,
both during the year or cumulatively.
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 procedures. 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.
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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.
136
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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.
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.
137
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022
Within 1 year 1 to 2 years 2 to 5 years Above 5 years Total
Short-term borrowings 3,139,880,724.05 - - - 3,139,880,724.05
Long-term borrowings - 33,096,683.33 30,974,783.33 - 64,071,466.67
Notes payable 6,390,557,494.64 - - - 6,390,557,494.64
Accounts payable 11,329,463,911.07 - - - 11,329,463,911.07
Other payables 2,248,815,946.18 - - - 2,248,815,946.18
Non-current liabilities due within 1 year 938,401,136.67 - - - 938,401,136.67
Lease liabilities - 661,584,530.34 696,510,155.34 136,301,920.54 1,494,396,606.22
Other non-current liabilities - 71,400,000.00 - - 71,400,000.00
24,047,119,212.61 766,081,213.67 727,484,938.67 136,301,920.54 25,676,987,285.49
138
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2021
Within 1 year 1 to 2 years 2 to 5 years Above 5 years Total
Short-term borrowings 1,947,231,588.48 - - - 1,947,231,588.48
Long-term borrowings - 34,379,752.78 40,881,388.89 - 75,261,141.67
Notes payable 7,660,216,823.68 - - - 7,660,216,823.68
Accounts payable 9,057,718,968.14 - - - 9,057,718,968.14
Other payables 1,714,746,986.46 - - - 1,714,746,986.46
Non-current liabilities due within 1 year 984,474,954.40 - - - 984,474,954.40
Lease liabilities - 671,938,054.49 727,760,496.55 19,832,053.23 1,419,530,604.27
Other non-current liabilities - 71,400,000.00 - - 71,400,000.00
21,364,389,321.16 777,717,807.27 768,641,885.44 19,832,053.23 22,930,581,067.10
139
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022, 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 RMB 58,438.36 (31 December 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 increase or
decrease by RMB118,500.00).
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 2022 and 2021, the
Group had not entered into any interest rate swap agreements.
For the year ended 30 June 2022, the Group has long-term interest-bearing borrowings with
floating interest rates amounting to RMB62,600,000.00 (31 December 2021: RMB71,600,000.00).
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 the amounts of assets and
liabilities, and transactions denominated in foreign currencies aim at mitigating the potential
foreign exchange risk to a large extent.
140
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Gearing ratio 59.69% 57.88%
141
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
IX. Disclosure of fair value
1. Assets and liabilities at fair value
30 June 2022:
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 - 632,101,362.15 - 632,101,362.15
Other investment in equity
instruments - 62,488,312.99 - 62,488,312.99
Other non-current financial
assets - - 135,974,908.51 135,974,908.51
- 694,589,675.14 135,974,908.51 830,564,583.65
31 December 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 - 1,027,226,940.21 - 1,027,226,940.21
Other investment in equity
instruments - 62,488,312.99 - 62,488,312.99
Other non-current financial
assets - - 135,974,908.51 135,974,908.51
- 1,089,715,253.20 135,974,908.51 1,225,690,161.71
142
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
IX. Disclosure of fair value(Continued)
2. Assets and liabilities disclosed at fair value
30 June 2022:
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 - 62,633,794.44 - 62,633,794.44
31 December 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 - 71,637,173.89 - 71,637,173.89
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 2022 31 December 2021 30 June 2022 31 December 2021
Financial liabilities - - - -
Long-term borrowings 62,633,794.44 71,637,173.89 62,633,794.44 71,637,173.89
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.
143
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
IX. Disclosure of fair value(Continued)
3. Estimation of fair value(Continued)
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 2022, 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.
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 2022, 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 2022 and 31 December 2021, there were no transfers of fair value measurements between Level 1 and
Level 2.
144
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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.
145
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Sinopharm Shantou Jinshi Pharmaceutical Co., Ltd. Controlled by CNPGC
China National of Traditional & Herbal Medicine Co., Ltd. Controlled by CNPGC
Huayi Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Beijing Huamiao Pharmaceutical Co., Ltd. Controlled by CNPGC
Sichuan Jiangyou Zhongba Aconiti Science and Technology Development Controlled by CNPGC
Co., Ltd.
Sinopharm Tongjitang (Guizhou) Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm (Anhui) Jingfang Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Guangdong Global Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Fengliaoxing (Foshan) Medicines Co., Ltd. Controlled by CNPGC
Sinopharm Luya (Shandong) Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Fengliaoxing (Foshan) Pharmaceutical Drugs Co., Ltd. Controlled by CNPGC
Foshan Winteam Pharmaceutical Group Ltd. Controlled by CNPGC
Sinopharm Dezhong (Foshan) Pharmaceutical Co., Ltd. Controlled by CNPGC
Chengdu Rongsheng Pharmacy Co., Ltd. Controlled by CNPGC
Lanzhou Biotechnology Development Co., Ltd. Controlled by CNPGC
Beijing Huasheng Pharmaceutical Biotechnology Development Co., Ltd. Controlled by CNPGC
Shanghai Shangsheng Biological Products Co., Ltd. Controlled by CNPGC
Shantou Jinshi Powder Injection Co., Ltd. Controlled by CNPGC
Chengdu Institute of Biological Products Co., Ltd. Controlled by CNPGC
China National Pharmaceutical Industry Co., Ltd. Controlled by CNPGC
Sinopharm Weiqida Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Xinjiang Pharmaceutical Co., Ltd. Controlled by CNPGC
Shanghai Modern Hasen (Shangqiu) Pharmaceutical Co., Ltd. Controlled by CNPGC
Shanghai Shyndec Pharmaceutical Marketing Co., Ltd. Controlled by CNPGC
Sinopharm Group Rongsheng Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Zhonglian Pharmaceutical Group Co., Ltd. Controlled by CNPGC
146
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Wuhan Zhonglian Siyao Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm ChuanKang Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Group Financial Co., Ltd. Controlled by CNPGC
China National Pharmaceutical Foreign Trade Corporation. Controlled by CNPGC
Sinopharm Foreign Trade (Beijing) Co., Ltd. Controlled by CNPGC
Sinopharm Group Yibin Pharmaceuticals Co., Ltd. Controlled by CNPGC
Sinopharm Fengliaoxing Medical Hospital Co., Ltd. Controlled by CNPGC
Guangdong Yifang Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Yixin Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm ChangChun A-THINK Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Sanyi Medicine (Wuhu) Co., Ltd. Controlled by CNPGC
Sinopharm Wuhan Blood Products Co., Ltd. Controlled by CNPGC
Wuhan Zhongsheng Yujin Biomedical Co., Ltd. Controlled by CNPGC
Sinopharm Group Fengliaoxing Medical Hospital (Foshan Nanhai) Co., Ltd. Controlled by CNPGC
Fujian Tianjiang Pharmaceutical Co., Ltd. Controlled by CNPGC
Chongqing Tianjiang Yifang Pharmaceutical Co., Ltd. Controlled by CNPGC
Yunnan Tianjiang Yifang Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Group Fengliaoxing Pharmacy (Foshan) Co., Ltd. Controlled by CNPGC
Guangxi Yifang Tianjiang Pharmaceutical Co., Ltd. Controlled by CNPGC
Hubei Sinopharm Zhonglian Medicine Co., Ltd. Controlled by CNPGC
Taiji Group Co., Ltd. Controlled by CNPGC
Taiji Group Chongqing Fuling Pharmaceutical Factory Co., Ltd. Controlled by CNPGC
Taiji Group Sichuan Nanchong Pharmaceutical Co., Ltd. Controlled by CNPGC
Chongqing Tongjunge Co., Ltd. Controlled by CNPGC
Taiji Group Chongqing No.2 Traditional Chinese Medicine Factory Co., Ltd. Controlled by CNPGC
Chongqing Taiji Group TongJunGe Pharmaceutical Co. Ltd. Controlled by CNPGC
Sichuan Taiji Pharmacy Chain Co., Ltd. Controlled by CNPGC
Southwest Pharmaceutical Co., Ltd. Controlled by CNPGC
Gansu Tianshui Zhangjiachuan Donkey-hide Gelatin Factory Controlled by CNPGC
Zhejiang Dongfang Pharmaceutical Co., Ltd. Controlled by CNPGC
Taiji Group Sichuan Mianyang Pharmaceutical Co., Ltd. Controlled by CNPGC
Taiji Group Sichuan Tiancheng Pharmaceutical Co., Ltd. Controlled by CNPGC
Sinopharm Shanghai Plasma-derived Biotherapies Co., Ltd. Controlled by CNPGC
147
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Cohealta(Beijing) Co., Ltd. Controlled by CNPGC
Changchun Lnstitute of Biological Products Co., Ltd. Controlled by CNPGC
Chongqing Taiji Industry (Group) Co., Ltd. Controlled by CNPGC
Zhejiang Yinuo Pharmaceutical Co., Ltd. Controlled by CNPGC
Chongqing Prepared Herbal Medicine Factory Co., Ltd. Controlled by CNPGC
Guangxi Fangning Pharmaceutical Co., Ltd. Controlled by CNPGC
China National Pharmaceutical Group Shanxi Rfl Pharmaceutical Co., Ltd. Associate of CNPGC
Changchun Changsheng Gene Pharmaceutical Co., Ltd. Associate of CNPGC
China Otsuka Pharmaceutical Co., Ltd. Associate of CNPGC
Fresenius Kabi Huarui Pharmaceuticals Co., Ltd. Associate of CNPGC
Sinopharm Holding Shanxi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Linfen Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Shanghai Co., Ltd. Controlled by Sinopharm Group
Beijing Sinopharm Tianyuan Real Estate & Property Management Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Southwest Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tianjin Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding (Tianjin Binhai) Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tianjin North Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Biopharmaceutical (Tianjin) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zhihuiminsheng (Tianjin) Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shenyang Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Dalian Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Dalian Special Drug Store Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jinzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Anshan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Liaoning Medical Equipment Distribution Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Shaanxi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shaanxi Pharmacy Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shaanxi Medical Consumables Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hubei Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding (Hubei) Hankou Pharmacy Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holdings Wuhan Guoda Pharmacy Chain Co., Ltd. Controlled by Sinopharm Group
148
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Group Hubei Yukang Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hubei Hongyuan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Shanxi Linfen Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Jincheng Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Mingdikang Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Medicine Logistic Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hunan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Medicine Holding Chenzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Changde Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company Controlled by Sinopharm Group
Limited
China National Medicines Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Guorui Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Jiankun (Beijing) Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Beijing Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holdings Beijing Huahong co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zhejiang Co., Ltd. Controlled by Sinopharm Group
Shanghai Tongyu Information Technology Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Sub Marketing Center Co., Ltd. Controlled by Sinopharm Group
Shanghai Shengxin Pharmacy Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Henan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jiaozuo Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shangqiu Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Pingdingshan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Anhui Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Wuhu Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Fuzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shandong Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Lunan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Linyi Medical Device Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jinan Co., Ltd. Controlled by Sinopharm Group
149
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Holding Dezhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Liaocheng Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding (Shandong) Medical Device Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yunnan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Pu'er Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Honghe Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Chuxiong Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holdings Kunming Co., Ltd. Controlled by Sinopharm Group
Yunnan Sinopharm Holding Dongchang Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hainan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hainan Hongyi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Guanai Yuankang Pharmacy (Haikou) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Gansu Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Fujian Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Putian Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Longyan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zhangzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Ningde Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Quanzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xiamen Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Nanping Newforce Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Ningxia Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jiangxi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holdings Xinyu Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Guizhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Anshun Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tongren Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zunyi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Qianxinan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Guizhou Medical Device Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Inner Mongolia Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tongliao Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Baotou Co., Ltd. Controlled by Sinopharm Group
150
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Holding Ulanqab Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Bayannur Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Chifeng Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hulun Buir Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Ordos Co., Ltd. Controlled by Sinopharm Group
Sinopharm In Inner Mongolia Medical Instrument Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Xinte Karamay Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Special Drugs Kashgar Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Xinte Shenrong Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Xinjiang Baitong Property Service Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinte Yili Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanghai Likang Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jilin Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holdings Professional Pharmacy Songyuan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Wenzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Chongqing Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jiangsu Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yangzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yangzhou Biological Products Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Taizhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yangzhou Medical Treatment Equipment Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Nantong Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Wuxi Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Nanjing Wende Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Changzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Changzhou Medical Logistics Center Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xuzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yancheng Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Heilongjiang Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Medicine Co., Ltd. Controlled by Sinopharm Group
151
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Lerentang Hebei Medical Instrument Trade Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Lerentang Hebei Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Chengde Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Qinhuangdao Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Shijiazhuang Traditional Chinese Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Zhangjiakou Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Hengshui Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Handan Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Tangshan Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Cangzhou Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Baoding Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Xintai Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Healthcare Shijiazhuang Pharmacy Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Shijiazhuang Medical Management Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Baoding Hongkang Pharmaceutical Chain Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Qinghai Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Donghong Medical (Shanghai) Co., Ltd. Controlled by Sinopharm Group
Shanghai Merro Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Xingsha Pharmaceuticals (Xiamen) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Huaideju Pharmaceutical (Xiamen) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Huaideju (Xiamen) Pharmacy Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Chongqing Taimin Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holdings Chongqing Health Management Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanghai Biomedicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Sichuan Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Chengdu Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Dalian Hecheng Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hongrun Medical Business Service (Shanghai) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Changsha Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Pharmacy (Shanghai) Co., Ltd. Controlled by Sinopharm Group
China National Medical Device Co., Ltd. Controlled by Sinopharm Group
Sinopharm Medical Instrument Guizhou Qiannan Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Guizhou (Zunyi) Medical Equipment Co., Ltd. Controlled by Sinopharm Group
152
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 (Tianjin) Medical Equipment Co., Ltd. Controlled by Sinopharm Group
China Medical Equipment Shandong Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Guangdong Medicine Device Co., Ltd. Controlled by Sinopharm Group
China National Scientific Instruments & Materials I&E Shenzhen Co., Ltd. Controlled by Sinopharm Group
Sinopharm Guangdong Medical Examination Co., Ltd. Controlled by Sinopharm Group
Sinopharm Shenzhen Medicine Device Co., Ltd. Controlled by Sinopharm Group
Sinopharm Instruments (Jiangmen) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Medical Instrument (Foshan) Co., Ltd. Controlled by Sinopharm Group
China National Medical Device (Hui Zhou) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Guangdong Medicine Device Supply Chain Co., Ltd. Controlled by Sinopharm Group
Sinopharm Advanced (Shanghai) Medical Device Co., Ltd. Controlled by Sinopharm Group
Sinopharm Liaoning Medical Equipment Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Shanxi Medical Devices Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Guangxi Medical Device Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Shanghai Medicine Device Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hunan Pharmaceutical Development Co., Ltd. Controlled by Sinopharm Group
Sinopharm Medical Instrument (Hainan) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Guangxi Medical Technology Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Dajiuzhou Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Anhui Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holdings Anhui Pharmaceutical Chain Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Changxing Professional Pharmacy (Haikou) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Special Drugs Shihezi Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Device (Guangdong) Medical Technology Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Anhui Huaning Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Huixinqinyuan (Beijing) Technology Development Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Changsha Gaoxin Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Zhongjian Medical Device Chain Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Qinhuangdao Pharmaceutical Trading Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Langfang Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang (Langfang) Pharmaceutical Trade Co., Ltd. Controlled by Sinopharm Group
Shanghai International Pharmaceutical Trade Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Guizhou Yitong Medicine Co., Ltd. Controlled by Sinopharm Group
153
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Holding Zhuanye Pharmacy (Dongfang) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Xingtai Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Handan Sinopharm Lerentang Pharmacy Chain Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holdings Kangfu (Tengzhou) Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinye (Hubei) Medicine Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Linfen Ningle Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Shanghai Guoda Shengxin Pharmacy Co., Ltd. Controlled by Sinopharm Group
Sinopharm Baise Device Co., Ltd. Controlled by Sinopharm Group
Sinopharm Shengshi (Guangdong) Medical Technology Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Tangshan Pharmacy Chain Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Cangzhou Pharmaceutical Trading Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Baoding Trading Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holdings Professional Pharmacy Chain (Hainan) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Benxi Co., Ltd. Controlled by Sinopharm Group
Shanghai Guodaai Pharmacy Co., Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Zhangjiakou Pharmaceutical Trading Co., Ltd. Controlled by Sinopharm Group
Shaanxi National Medical Equipment Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Anhui Medical Device Co., Ltd. Controlled by Sinopharm Group
Sinopharm Equipment Supply Chain Service (Liaoning) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Hebei Medicine Co., Ltd. Controlled by Sinopharm Group
Guorun Medical Supply Chain Service (Shanghai) Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holdings Guang'an Co., Ltd. Controlled by Sinopharm Group
Sinopharm JI LIN MEDICAL Device Co., Ltd. Controlled by Sinopharm Group
Qinghai Guoyao Holding Pharmaceutical Chain Co., Ltd. Controlled by Sinopharm Group
Qinghai Guoyao Holding Medical Equipment Co., Ltd. Controlled by Sinopharm Group
Sinopharm Medicine Holding Yantai Co., Ltd. Controlled by Sinopharm Group
Sinopharm Henan MEDICAL Device Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holdings Lu'an Co., Ltd. Controlled by Sinopharm Group
Sinopharm(Zhaoqing) Medical Equipment Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holdings Guizhou Medical Supply Chain Service Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holdings Chaoyang Co., Ltd. Controlled by Sinopharm Group
Korla Medicine Co., Ltd., Xinjiang Pharmaceutical Group Controlled by Sinopharm Group
Sinopharm Medicine Holding Jining Co., Ltd. Controlled by Sinopharm Group
154
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Holding Weifang Co., Ltd. Controlled by Sinopharm Group
Sinopharm Hubei Medical Instrument Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Jiangxi MEDICAL Instrument Supply CHAIN Co., Ltd. Controlled by Sinopharm Group
Sinopharm Group Ganzhou Medical Trade Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holdings Haoyang Mianyang Pharmaceutical Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holdings Wuhan Hengfeng Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holdings Chongqing Medical Device Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jilin Medical Device Co., Ltd. Controlled by Sinopharm Group
Sinopharm Medicine Holding Suzhou Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holdings Huai'an Co., Ltd. Controlled by Sinopharm Group
Sinopharm Holdings Chuangke Medical Technology (Shenzhen) Co., Ltd. Associate of Sinopharm Group
Sinopharm Holding Chuangke Medical Technology (Guangxi) Co., Ltd. Associate of Sinopharm Group
Yichang Humanwell Pharmaceutical Co., Ltd. Associate of Sinopharm Group
Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co., Ltd. Associate of Sinopharm Group
Shanghai Guoda Lingyun Pharmacy Co., Ltd. Associate of Sinopharm Group
Sinopharm Health Industry (Shanghai) Co., Ltd. Associate of Sinopharm Group
Sinopharm Holding (China) Financing Lease Co., Ltd. Associate of Sinopharm Group
Sinopharm Health Online Co., Ltd. Associate of Sinopharm Group
Sinopharm Group Anhui Great Health Industry Co., Ltd. Associate of Sinopharm Group
Gongqingcheng Qixin A partnership in which an associate of
Sinopharm Group acts as executive
partner
Shenzhen Wanwei Medicine Trading Co., Ltd. Subsidiary of Main Luck
Pharmaceutical
Chongqing Yaoyou Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Sichuan Hexin Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Guilin Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Shanghai Chaohui Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Tibet Yaoyou Medicines Co., Ltd. Subsidiary of Fosun Pharm
Shenyang Hongqi Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Shanghai Transfusion Technology Co., Ltd. Subsidiary of Fosun Pharm
Suzhou Laishi Transfusion Equipment Co., Ltd. Subsidiary of Fosun Pharm
Shanghai Henlius Biopharmaceuticals Co., Ltd. Subsidiary of Fosun Pharm
Jiangsu Wanbang Pharmacy Marketing Co., Ltd. Subsidiary of Fosun Pharm
Chongqing Haisiman Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Jinzhou Avanc 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 2022
(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
Dalian Aleph Biomedical Co., Ltd. Subsidiary of Fosun Pharm
Hunan Dongting Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Chancheng Central Hospital of Foshan City Subsidiary of Fosun Pharm
Foshan Chanyixing Medicine Development Co., Ltd. Subsidiary of Fosun Pharm
Foshan Chancheng Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Jiangsu Huanghe Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Suzhou Erye Pharmaceutical Limited Company Subsidiary of Fosun Pharm
Fosun Pharmaceutical Distribution Jiangsu Co., Ltd. Subsidiary of Fosun Pharm
Shenzhen Chindex Medical Beauty Clinic Subsidiary of Fosun Pharm
Shenzhen Hengsheng Hospital Subsidiary of Fosun Pharm
Jinzhou Avanc Medicine Co., Ltd. Subsidiary of Fosun Pharm
Jiangxi Erye Medicine Marketing Co., Ltd. Subsidiary of Fosun Pharm
Foshan Shunde Lecong Supply and Marketing Group Shunketang Subsidiary of Fosun Pharm
Pharmaceutical Co., Ltd.
Glaxosmithkline Pharmaceuticals (Suzhou) Co., Ltd. Subsidiary of Fosun Pharm
Hunan Yaoyou Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Shandong Skyway Pharmaceutical Sales Co., Ltd. Subsidiary of Fosun Pharm
Foshan Chanyun Medical Clinic Co., Ltd. Subsidiary of Fosun Pharm
Fresenius Kabi(Wuhan)Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Fosun Kite Biotechnology Co., Ltd. Subsidiary of Fosun Pharm
Shenzhen Xinsheng Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Breas (Shanghai) Medical Technology Co., Ltd. Subsidiary of Fosun Pharm
Wanbang Biopharmaceuticals Subsidiary of Fosun Pharm
Fosun Health Technology (Jiangsu) Co., Ltd. Subsidiary of Fosun Pharm
Guangzhou Xinshi Hospital Co., Ltd. Subsidiary of Fosun Pharm
Hainan Fucong Health Management Co., Ltd. Subsidiary of Fosun Pharm
Hebei Wanbang Fulin Pharmaceutical Co., Ltd. Subsidiary of Fosun Pharm
Hunan Minshengtang Biotechnology Co., Ltd. Minority shareholders of a subsidiary
Taishan Qunkang Pharmacy Co., Ltd. Minority shareholders of a subsidiary
Shenzhen Jiufeng Investment Co., Ltd. Minority shareholders of a subsidiary
Shenyang Pharmaceutical Co., Ltd. Minority shareholders of a subsidiary
Zhang Zhenfang Minority shareholders of a subsidiary
Pingdingshan Pusheng Pharmaceutical Co., Ltd. Minority shareholders of a subsidiary
156
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Lerentang Investment Group Co., Ltd. Minority shareholders of a subsidiary
Guangdong Jiyuantang Development Co., Ltd. Minority shareholders of a subsidiary
Shanghai Baizhong Business Development (Group) Co., Ltd. Minority shareholders of a subsidiary
Beijing Huafang Investment Co., Ltd. Minority shareholders of a subsidiary
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. Minority shareholders of a subsidiary
Gu Haiqun Minority shareholders of a subsidiary
Pu'er Songmao Medicine Group Co., Ltd. Minority shareholders of a subsidiary
Jilin Province Yihe Investment Consulting Co., Ltd. Minority shareholders of a subsidiary
Zhang Haiyan Minority shareholders of a subsidiary
Shenyang Shengdiou Trading Co., Ltd. Minority shareholders of a subsidiary
Xiong Xinyuan Minority shareholders of a subsidiary
Jiangmen Xinhui District Jianfeng Pharmaceutical Co., Ltd. Minority shareholders of a subsidiary
Xishuangbanna Disheng Pharmaceutical Co., Ltd. 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
Nanjing Yuanguang Trading Co., Ltd. Companies owned by minority
shareholders of a subsidiary
Southeast (Quanzhou) Biotechnology Pharmaceutical Co., Ltd. Companies owned by minority
shareholders of a subsidiary
Zhang Guitang Family members of minority
shareholders of a subsidiary
Yangjiang Kangmin Pharmaceutical Co., Ltd. Family members of the actual
controller of minority shareholders of a
subsidiary
Jilin Ronghe Real Estate Development Co., Ltd. Companies with subsidiary directors,
supervisors and senior executives
serving as key management personnel
Zhongshan Kangyue Medical Instrument Co., Ltd. Company invested by family member
of the director and supervisor of a
subsidiary
Jilin Tianheke Industry and Trade Co., Ltd. Company influenced by key
management personnel of a subsidiary
Gu Jinhua The actual controller of minority
shareholders of a subsidiary
Li Fang The actual controller of minority
shareholders of a subsidiary
Zhang Kai The actual controller of minority
shareholders of a subsidiary
Wang Yixuan Major investor of minority shareholders
of a subsidiary
Wang Yang Family members of the actual
controller of minority shareholders of a
subsidiary
157
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Zhang Yechuan Family members of the actual
controller of minority shareholders of a
subsidiary
Guangzhou Tianren Pharmaceutical Co., Ltd. Company owned by family member of
the actual controller of the non-
controlling shareholder of a subsidiary
Naton Biotechnology (Beijing) Co., Ltd. Subsidiary of Naton
Zhao Xiaoxiao Family members of key management
personnel of a subsidiary
Zheng Jing Family members of key management
personnel of a subsidiary
Beijing Natong Shichuang Investment Management Co., Ltd. Subsidiary of Naton
Guangzhou Tianren Pharmacy Chain Co., Ltd. Company owned by family member of
the actual controller of the non-
controlling shareholder of a subsidiary
Liu Zhiping The actual controller of minority
shareholders of a subsidiary
158
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Related party Type of For the six Approved trading quota whether the For the six months
transaction months ended transaction ended 30 June
30 June 2022 limit is 2021
exceeded
Sinopharm Holding Sub Purchase
Marketing Center Co., Ltd. of goods 577,218,337.71 NO 567,957,995.48
China National Medicines Purchase
Co., Ltd. of goods 357,017,451.57 NO 378,976,943.17
Sinopharm Holding Shanxi Purchase
Co., Ltd. of goods 318,234,860.84 NO 291,169,816.86
Sinopharm Holding Purchase
Shenyang Co., Ltd. of goods 263,886,903.84 NO 218,687,438.90
Sinopharm Group Xinjiang
Special Drugs National Purchase
Pharmaceutical Co., Ltd. of goods 227,667,440.04 NO 132,068,068.87
Purchase
Sinopharm Group Co., Ltd. of goods 188,443,291.91 NO 130,357,912.20
Sinopharm Holding Shanxi Purchase
Co., Ltd. of goods 183,978,057.29 NO 204,598,556.55
Sinopharm Lerentang Purchase
Medicine Co., Ltd. of goods 156,176,948.57 NO 212,774,916.08
Jiangsu Wanbang
Pharmacy Marketing Co., Purchase
Ltd. of goods 98,144,275.79 NO 80,954,984.16
Fresenius Kabi Huarui Purchase
Pharmaceuticals Co., Ltd. of goods 84,213,549.45 NO 83,397,212.70
10,355,000,000.00
Sinopharm Holding Purchase
Yangzhou Co., Ltd. of goods 65,335,420.07 NO 51,592,777.55
Shanghai Henlius
Biopharmaceuticals Co., Purchase
Ltd. of goods 58,704,238.04 NO 26,663,502.35
Sinopharm Holding Inner Purchase
Mongolia Co., Ltd. of goods 56,241,823.58 NO 40,632,946.46
Sinopharm Holding Jilin Purchase
Co., Ltd. of goods 51,845,516.71 NO 30,157,192.13
Chongqing Yaoyou Purchase
Pharmaceutical Co., Ltd. of goods 49,193,013.03 NO 37,011,667.64
Lanzhou Biotechnology Purchase
Development Co., Ltd. of goods 48,118,083.19 NO 68,090,371.68
Southwest Pharmaceutical Purchase
Co., Ltd. of goods 47,785,194.97 NO 17,542,194.64
Sinopharm Holding Lunan Purchase
Co., Ltd. of goods 37,955,700.50 NO 40,999,864.55
Sinopharm Holding Purchase
Shandong Co., Ltd. of goods 33,385,817.37 NO 22,619,090.27
Taiji Group Chongqing
Fuling Pharmaceutical Purchase of
Co., Ltd. goods 32,364,005.17 NO 5,323,305.69
159
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Related party Type of For the six Approved trading quota whether the For the six months
transaction months ended transaction ended 30 June
30 June 2022 limit is 2021
exceeded
Foshan Winteam Purchase of
Pharmaceutical Group Ltd. goods 31,572,384.22 NO 23,659,412.81
Sinopharm Xingsha
Pharmaceuticals (Xiamen) Purchase of
Co., Ltd. goods 28,799,500.16 NO 9,851,650.37
Sinopharm Holding Purchase of
Tongliao Co., Ltd. goods 24,457,147.31 NO 16,039,594.19
Purchase of
Main Luck Pharmaceutical goods 23,968,456.02 NO 25,917,861.73
Sinopharm Holding Henan Purchase of
Co., Ltd. goods 23,222,605.65 NO 22,693,352.04
Taiji Group Chongqing
Tongjunge Pharmaceutical Purchase of
Co., Ltd. goods 23,042,443.58 NO 3,955,453.47
Sinopharm Holding Fujian Purchase of
Co., Ltd. goods 22,959,844.44 NO 26,242,880.93
Sinopharm Yixin Purchase of
Pharmaceutical Co., Ltd. goods 21,537,832.07 NO 28,345,022.18
Sinopharm Holding Xinjiang
Special Drugs Western Purchase of
Pharmaceutical Co., Ltd. goods 21,515,638.38 NO 45,696,541.00
Shenzhen Wanwei Purchase of
10,355,000,000.00
Medicine Trading Co., Ltd. goods 21,288,696.68 NO 13,151,952.24
Sinopharm Holding Purchase of
Changzhou Co., Ltd. goods 20,341,776.01 NO 10,160,654.93
Sinopharm Holding Beijing Purchase of
Co., Ltd. goods 19,925,755.17 NO 17,360,821.15
China National
Pharmaceutical Foreign Purchase of
Trade Corporation goods 18,962,586.42 NO 31,428,461.51
Sinopharm Holding Hunan Purchase of
Co., Ltd. goods 18,117,814.44 NO 13,204,231.22
Sinopharm Holding Xinjiang
Xinte Shenrong Purchase of
Pharmaceutical Co., Ltd. goods 17,920,014.27 NO 17,310,598.75
Sinopharm Group Guorui Purchase of
Medicine Co., Ltd. goods 16,175,927.81 NO 15,180,518.65
Sinopharm Holding Jiangsu Purchase of
Co., Ltd. goods 16,084,288.10 NO 16,730,745.30
Purchase of
Sinopharm Zhijun goods 15,640,952.26 NO 15,931,558.84
Sinopharm Holding
Lerentang Pharmaceutical Purchase of
Co., Ltd. goods 15,292,974.45 NO 19,472,073.81
160
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Related party Type of For the six Approved trading quota whether the For the six months
transaction months ended transaction ended 30 June
30 June 2022 limit is 2021
exceeded
Sinopharm Hubei Purchase of
MEDICAL Device Co., Ltd. goods 14,883,132.80 NO -
China Otsuka Purchase of
Pharmaceutical Co., Ltd. goods 14,659,161.80 NO 11,763,554.47
Shanghai Shyndec
Pharmaceutical Marketing Purchase of
Co., Ltd. goods 14,639,605.08 NO 36,421,939.26
Sinopharm Holding Purchase of
Jinzhou Co., Ltd. goods 13,151,698.93 NO 8,931,064.40
Yichang Humanwell Purchase of
Pharmaceutical Co., Ltd. goods 12,930,498.02 NO 12,457,905.62
Sinopharm Jiankun Purchase of
(Beijing) Medicine Co., Ltd. goods 12,290,194.84 NO 4,529,929.13
Yunnan Sinopharm
Holding Dongchang Purchase of
Medicine Co., Ltd. goods 11,889,393.76 NO 9,191,104.74
Fosun Pharmaceutical
Distribution Jiangsu Co., Purchase of
Ltd. goods 11,646,928.19 NO 5,932,515.36
Sinopharm Holding Xiamen Purchase of
Co., Ltd. goods 11,547,313.21 NO 11,957,608.14
10,355,000,000.00
Sinopharm Lerentang
Shijiazhuang Medicine Co., Purchase of
Ltd. goods 11,112,225.74 NO 9,697,409.23
Sinopharm Holding Purchase of
Pingdingshan Co., Ltd. goods 10,999,809.50 NO 11,979,529.78
Chengdu Rongsheng Purchase of
Pharmacy Co., Ltd. goods 10,903,730.00 NO 14,584,099.03
Shanghai Chaohui Purchase of
Pharmaceutical Co., Ltd. goods 10,733,383.55 NO 7,770,056.47
Tibet Yaoyou Medicines Purchase of
Co.,Ltd. goods 10,602,831.41 NO 14,011,950.98
Sinopharm Holding Ningxia Purchase of
Co., Ltd. goods 10,485,536.70 NO 7,527,437.99
Jiangxi Erye Medicine Purchase of
Marketing Co., Ltd. goods 9,965,371.14 NO 6,315,288.30
Sinopharm Holding Anshan Purchase of
Co., Ltd. goods 9,751,585.88 NO 7,386,999.04
Jinzhou Avanc Purchase of
Pharmaceutical Co., Ltd. goods 9,739,150.30 NO 11,829,570.34
Sinopharm Group Shanxi Purchase of
Medical Devices Co., Ltd. goods 8,913,461.47 NO 6,568,011.43
161
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Related party Type of For the six Approved trading quota whether the For the six months
transaction months ended transaction ended 30 June
30 June 2022 limit is 2021
exceeded
Sinopharm Group
Rongsheng Purchase of
Pharmaceutical Co., Ltd. goods 8,073,472.28 NO 2,917,177.22
Sinopharm holdings Hubei Purchase of
Co., Ltd. goods 7,949,628.05 NO 531,440.87
Sinopharm Holding Shanxi
Zhongjian Medicial Device Purchase of
Chain Co., Ltd. goods 7,048,662.52 NO 6,180,889.71
Sinopharm Zhonglian
Pharmaceutical Group Co., Purchase of
Ltd. goods 6,375,613.27 NO 2,350,922.70
Hunan Dongting Purchase of
Pharmaceutical Co., Ltd. goods 6,251,679.06 NO 1,673,060.75
Sinopharm Holding Wuxi Purchase of
Co., Ltd. goods 6,106,247.58 NO 2,439,252.13
Sinopharm Lerentang
Hebei Medical Instrument Purchase of
Trade Co., Ltd. goods 6,000,694.22 NO 14,889,163.04
Sinopharm holdings Beijing Purchase of 10,355,000,000.00
Huahong Co., Ltd. goods 5,961,645.59 NO 471,946.23
Zhijun Pingshan Purchase of
goods 5,629,313.91 NO 10,838,947.13
Sinopharm Holding
Donghong Medical Purchase of
(Shanghai) Co., Ltd. goods 5,354,207.36 NO 4,477,305.68
Sinopharm
Pharmaceuticals Purchase of
(Shanghai) Co., Ltd. goods 5,023,580.83 NO 12,051,455.59
Shaanxi National Medical Purchase of
Equipment Co., Ltd. goods 5,002,539.81 NO -
Sinopharm Holding Shanxi
Dajiuzhou Medicine Co., Purchase of
Ltd. goods 4,900,064.15 NO 5,438,916.55
Jinzhou Avanc Medicine Purchase of
Co., Ltd. goods 4,893,043.53 NO 265,412.37
Sinopharm Holding Jinan Purchase of
Co., Ltd. goods 4,852,942.46 NO 5,593,031.01
162
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Related party Type of For the six Approved trading quota whether the For the six months
transaction months ended transaction ended 30 June
30 June 2022 limit is 2021
exceeded
Sinopharm Wonder Dream Purchase of
Pharmaceutical (Xiamen) goods 4,799,825.30 NO -
Sinopharm Holding Hulun Purchase of
Buir Co., Ltd. goods 4,584,675.34 NO 2,425,267.22
China National
Pharmaceutical Industry Purchase of
Co., Ltd. goods 4,055,984.31 NO 1,658,893.69
Sinopharm Chuankang Purchase of
Pharmaceutical Co., Ltd. goods 3,546,481.54 NO 1,292,333.10
Taiji Group Purchase of
goods 3,103,599.64 NO 166,678.24
Sinopharm Holding Tianjin Purchase of
Co., Ltd. goods 3,064,838.26 NO 2,113,934.18
Sinopharm Holding
Shanghai Likang Purchase of
Pharmaceutical Co., Ltd. goods 3,029,923.97 NO 4,051,307.75
Sinopharm Holding Linfen
Ningle Pharmaceutical Co., Purchase of
Ltd. goods 3,022,449.03 NO 1,922,967.49
Guangdong Global Purchase of
Pharmaceutical goods 2,955,096.51 NO -
10,355,000,000.00
Sichuan Hexin Purchase of
Pharmaceutical Co., Ltd. goods 2,679,383.32 NO 3,903,635.62
Sinopharm Shanghai
Plasma-derived Purchase of
Biotherapies Co., Ltd. goods 2,655,771.84 NO -
Sinopharm Holding Purchase of
Heilongjiang Co., Ltd. goods 2,616,750.02 NO 2,700,433.59
Beijing Huasheng
Pharmaceutical
Biotechnology Purchase of
Development Co., Ltd. goods 2,610,337.20 NO 4,230,984.00
Taiji Group Zhejiang
Dongfang Pharmaceutical Purchase of
Co., Ltd. goods 2,567,421.22 NO 79,709.72
Sinopharm Luya
(Shandong) Purchase of
Pharmaceutical Co., Ltd. goods 2,512,845.00 NO 1,537,349.20
Fresenius Kabi (Wuhan) Purchase of
Pharmaceutical Co., Ltd. goods 2,493,312.53 NO -
Sinopharm Holding Yunnan Purchase of
Co., Ltd. goods 2,429,262.58 NO 805,065.42
163
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Related party Type of For the six Approved trading quota whether the For the six months
transaction months ended transaction ended 30 June
30 June 2022 limit is 2021
exceeded
Shanghai International
Pharmaceutical Trade Co., Purchase of
Ltd. goods 2,375,683.11 NO 3,215,831.81
Sinopharm Holding Purchase of
Taizhou Co., Ltd. goods 2,316,838.25 NO (350.45)
Sinopharm Holding Dalian Purchase of
Co., Ltd. goods 2,085,255.89 NO 1,618,603.64
Chongqing Taiji Industry Purchase of
(Group) Co., Ltd. goods 2,069,070.40 NO -
Sinopharm Holding Chifeng Purchase of
Co., Ltd. goods 1,895,142.57 NO 347,527.93
Sinopharm Weiqida Purchase of
Pharmaceutical Co., Ltd. goods 1,827,299.52 NO 690,157.52
Sinopharm Holding Benxi Purchase of
Co., Ltd. goods 1,777,546.43 NO 559,188.59
Yunnan Tianjiang Yifang Purchase of
Pharmaceutical Co., Ltd. goods 1,713,228.93 NO 497,209.07
Jiangxi National Medical Purchase of
Equipment Co., Ltd. goods 1,446,991.15 NO -
Guangdong Yifang Purchase of 10,355,000,000.00
Pharmaceutical Co., Ltd. goods 1,384,459.85 NO -
Sinopharm Holding Beijing
Kangchen Bio- Purchase of
Pharmaceutical Co., Ltd. goods 1,360,791.79 NO 2,321,886.33
Sinopharm Group
Fengliaoxing (Foshan) Purchase of
Pharmaceutical Co., Ltd. goods 1,360,654.87 NO -
Sinopharm Holding Fuzhou Purchase of
Co., Ltd. goods 1,267,923.77 NO 1,152,589.16
Sinopharm Holding Purchase of
Yancheng Co., Ltd. goods 1,191,411.93 NO 1,355,193.79
Beijing Golden Elephant
Fosun Pharmaceutical Co., Purchase of
Ltd. goods 1,180,223.35 NO 984,816.68
Sinopharm Advanced
(Shanghai) Medicine Purchase of
Device Co., Ltd. goods 1,141,738.72 NO 4,359,697.01
Sinopharm Group Shanxi Purchase of
Ruifulai Co., Ltd. goods 1,096,614.36 NO 404,922.04
164
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Related party Type of For the six Approved trading quota whether the For the six months
transaction months ended transaction ended 30 June
30 June 2022 limit is 2021
exceeded
Fosun Kite Biotechnology Purchase of
Co., Ltd. goods 1,046,946.90 NO -
Sinopharm Tongjitang
(Guizhou) Pharmaceutical Purchase of
Co., Ltd. goods 1,010,998.93 NO 1,342,043.34
Sinopharm Holding Anhui Purchase of
Huaning Medicine Co., Ltd. goods 986,032.47 NO 781,575.58
Sinopharm Lingyun
Biopharmaceutical Purchase of
(Shanghai) Co., Ltd. goods 940,244.05 NO 1,017,142.82
Sinopharm Fengliaoxing
(Foshan) Pharmaceutical Purchase of
Drugs Co., Ltd. goods 939,969.76 NO 3,765,974.30
Chengdu Institute of
Biological Products Purchase of
Co.,Ltd. goods 790,713.15 NO 562,767.00
Sinopharm Xinjiang Purchase of
Pharmaceutical Co., Ltd. goods 753,761.98 NO 341,818.02
Glaxosmithkline
Pharmaceuticals (Suzhou) Purchase of
Co., Ltd. goods 703,316.38 NO 1,312,782.80
Sinopharm Holding
Xinjiang Special Drugs
Karamay Pharmaceutical Purchase of 10,355,000,000.00
Co., Ltd. goods 686,893.15 NO 1,801,633.72
Shanghai Modern Hasen
(Shangqiu) Pharmaceutical Purchase of
Co., Ltd. goods 659,496.99 NO 1,553,305.70
Sinopharm Holding Purchase of
Quanzhou Co., Ltd. goods 658,072.27 NO 662,423.54
Taiji Group Chongqing
No.2 Traditional Chinese Purchase of
Medicine Factory Co., Ltd. goods 640,017.30 NO -
Sinopharm Shantou Jinshi Purchase of
Pharmaceutical Co., Ltd. goods 636,169.31 NO 781,581.70
Sinopharm Holding Hainan Purchase of
Co., Ltd. goods 614,233.58 NO 13,042.99
Foshan Chancheng Purchase of
Pharmaceutical Co., Ltd. goods 603,709.11 NO -
Shanghai Transfusion Purchase of
Technology Co., Ltd. goods 587,033.20 NO 667,699.12
Sinopharm Lerentang
Qinhuangdao
Pharmaceutical Trading Purchase of
Co., Ltd goods 573,344.72 NO 1,156,691.29
Sinopharm Group Ganzhou Purchase of
Medical Trade Co., Ltd. goods 558,630.18 NO -
165
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Related party Type of For the six Approved trading quota whether the For the six months
transaction months ended transaction ended 30 June
30 June 2022 limit is 2021
exceeded
Sinopharm Holding
Yangzhou Medical
Treatment Equipment Co., Purchase of
Ltd. goods 552,129.24 NO 371,264.92
Shanghai Shangsheng
Biological Products Co., Purchase of
Ltd. goods 547,184.16 NO 3,748,316.28
Guilin Pharmaceutical Co., Purchase of
Ltd. goods 544,088.50 NO 491,568.15
Wuhan Zhongsheng Yujin
Biological Medicine Co., Purchase of
Ltd. goods 530,656.00 NO 354,016.00
Gansu Tianshui
Zhangjiachuan Donkey- Purchase of
hide Gelatin Factory goods 526,205.33 NO -
Sinopharm Holding Shanxi
Mingdikang Medicine Co., Purchase of
Ltd. goods 477,543.09 NO 110,206.77
Sinopharm Liaoning
Medical Equipment Co., Purchase of
Ltd. goods 462,208.86 NO 1,610,762.20
Sinopharm Group Linfen Purchase of
Co., Ltd. goods 456,010.04 NO 8,257.25
Sinopharm Holding
10,355,000,000.00
Xinjiang Special Drugs
Kashgar Pharmaceutical Purchase of
Co., Ltd. goods 450,058.48 NO 773,057.14
Sinopharm Holding Purchase of
Zhejiang Co., Ltd. goods 430,796.23 NO 317,534.11
Taiji Group Sichuan
Mianyang Pharmaceutical Purchase of
Co., Ltd. goods 415,373.53 NO 48,842.47
Sinopharm Holdings
Kangfu (Tengzhou) Purchase of
Pharmaceutical Co., Ltd. goods 371,055.96 NO -
Sinopharm Inner Mongolia
Medical Instrument Co., Purchase of
Ltd. goods 357,851.47 NO 35,000.88
Shanghai Merro Purchase of
Pharmaceutical Co., Ltd. goods 339,760.00 NO 542,162.94
Sinopharm Baise Device Purchase of
Co., Ltd. goods 323,893.80 NO -
Sinopharm Holding
Yangzhou Biological Purchase of
Products Co., Ltd. goods 316,700.00 NO 1,850.00
Sinopharm Holding
Biopharmaceutical (Tianjin) Purchase of
Co., Ltd. goods 284,655.56 NO 682,560.86
166
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Related party Type of For the six Approved trading quota whether the For the six months
transaction months ended transaction ended 30 June
30 June 2022 limit is 2021
exceeded
Sinopharm Jiangxi Co., Purchase of
Ltd. goods 275,462.40 NO -
Suzhou Erye
Pharmaceutical Limited Purchase of
Company goods 266,017.70 NO 1,942,102.86
Breas (Shanghai) Medical Purchase of
Technology Co., Ltd. goods 265,486.72 NO -
Sinopharm Holding Anhui Purchase of
Medical Device Co., Ltd. goods 265,486.71 NO -
Sinopharm Holding Anhui Purchase of
Pharmaceutical Co., Ltd. goods 250,059.82 NO -
Sinopharm Holding
Shanghai Biomedicine Co., Purchase of
Ltd. goods 241,761.13 NO 408,296.15
Sinopharm Holding Purchase of
Bayannur Co., Ltd. goods 235,284.80 NO 234,878.49
Beijing Natong Shichuang
Investment Management Purchase of
Co., Ltd. goods 165,366.00 NO -
Sinopharm Holding Putian Purchase of
Co., Ltd. goods 164,764.21 NO 257,643.78
Sinopharm Group Yibin Purchase of
Pharmaceuticals Co., Ltd. goods 160,710.75 NO 536,821.03
Sichuan Jiangyou Zhongba
Aconiti Science and 10,355,000,000.00
Technology Development Purchase of
Co., Ltd. goods 157,830.27 NO 142,201.82
Sinopharm Holdings Purchase of
Longyan Co., Ltd. goods 157,571.03 NO -
Sinopharm Holding Anhui Purchase of
Co., Ltd. goods 142,752.12 NO 180,725.82
Sinopharm Holding Xinye Purchase of
(Hubei) Medicine Co., Ltd. goods 131,697.05 NO 101,222.21
Sinopharm Holdings
Haoyang Mianyang Purchase of
Pharmaceutical Co., Ltd. goods 114,857.52 NO -
Sinopharm Purchase of
Cohealta(Beijing) Co., Ltd. goods 113,274.00 NO -
Sinopharm Holding Puer Purchase of
Co., Ltd. goods 112,870.04 NO 296,085.02
Sinopharm Shanxi Linfen Purchase of
Co., Ltd. goods 107,642.27 NO -
Sinopharm Holding Purchase of
Nanping Newforce Co., Ltd goods 106,618.64 NO 105,027.03
Taiji Group Sichuan
Nanchong Pharmaceutical Purchase of
Co., Ltd. goods 100,871.54 NO 18,751.86
167
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Related party Type of For the six Approved trading quota whether the For the six months
transaction months ended transaction ended 30 June
30 June 2022 limit is 2021
exceeded
Shandong Skyway
Pharmaceutical Sales Co., Purchase of
Ltd. goods 94,364.59 NO -
Sinopharm Equipment
Supply Chain Service Purchase of
(Liaoning) Co., Ltd. goods 94,037.61 NO -
Sinopharm Wuhan Blood Purchase of
Products Co., Ltd. goods 88,400.00 NO 281,200.00
Sinopharm Holding Ordos Purchase of
Co., Ltd. goods 88,150.98 NO 35,001.77
Sinopharm Holding Special
Drugs Shihezi Purchase of
Pharmaceutical Co., Ltd. goods 86,639.80 NO 607,344.52
Sinopharm Group
Dezhong(Foshan)Pharmac Purchase of
eutical Co., Ltd. goods 77,861.95 NO -
Sinopharm Holding Sanyi Purchase of
Medicine (Wuhu) Co., Ltd. goods 73,645.12 NO 37,095.80
Sinopharm Lerentang
Qinhuangdao Medicine Purchase of
Co., Ltd. goods 70,318.58 NO -
Sinopharm Holding Hunan
Pharmaceutical Purchase of 10,355,000,000.00
Development Co., Ltd. goods 60,977.01 NO 136,860.13
Sinopharm Holding Purchase of
Nantong Co., Ltd. goods 50,647.43 NO 697,002.20
Hainan Fucong Health Purchase of
Management Co., Ltd. goods 44,814.15 NO -
Sinopharm Holding Purchase of
Changde Co., Ltd. goods 40,566.37 NO 48,318.59
Changchun Lnstitute of
Biological Products Co., Purchase of
Ltd. goods 40,294.80 NO -
Sinopharm Jingfang
(Anhui) Pharmaceutical Purchase of
Co., Ltd. goods 37,711.49 NO 20,306.19
Shantou Jinshi Powder Purchase of
Injection Co., Ltd. goods 35,470.80 NO 351,589.74
Sinopharm Holding Hainan Purchase of
Hongyi Co., Ltd. goods 34,899.26 NO 258,280.38
Sinopharm Holding Beijing
Tianxing Puxin Biological Purchase of
Medical Co., Ltd. goods 29,305.51 NO 1,591,292.21
Sinopharm Holdings Purchase of
Wuhan Hengfeng Co., Ltd. goods 29,203.54 NO -
168
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Related party Type of For the six Approved trading quota whether the For the six months
transaction months ended transaction ended 30 June
30 June 2022 limit is 2021
exceeded
Sinopharm Group Hebei Purchase of
Medicine Co., Ltd. goods 28,949.12 NO -
Sinopharm Holding Purchase of
Changsha Co., Ltd. goods 27,499.47 NO 84,558.36
Jiangsu Huanghe Purchase of
Pharmaceutical Co., Ltd. goods 26,506.67 NO 162,782.30
Sinopharm Medical
Instrument (Huizhou) Co., Purchase of
Ltd. goods 22,204.44 NO 10,618.77
Sinopharm Shengshi
(Guangdong) Medical Purchase of
Technology Co., Ltd. goods 20,616.36 NO -
Sinopharm Group
Guangdong Medicine Purchase of
Device Co., Ltd. goods 19,557.52 NO 19,340,530.98
Shenyang Hongqi Purchase of
Pharmaceutical Co., Ltd. goods 19,430.09 NO 653,104.18
Sinopharm Group
Southwest Medicine Co., Purchase of
Ltd. goods 17,770.83 NO 2,313,721.29
Sinopharm Holding Shanxi Purchase of
Jincheng Co., Ltd. goods 15,707.97 10,355,000,000.00 NO -
China National Medical Purchase of
Device Co., Ltd. goods 10,667.09 NO 2,866,958.60
Zhejiang Yinuo Purchase of
Pharmaceutical Co., Ltd. goods 7,412.39 NO -
Sinopharm Holding Dalian Purchase of
Hecheng Co., Ltd. goods 2,831.85 NO 17,404.47
Sinopharm Holding
Xinjiang Special Drugs Yili Purchase of
Pharmaceutical Co., Ltd. goods 2,207.85 NO 68,861.47
Guangxi Fangning Purchase of
Pharmaceutical Co., Ltd. goods 2,108.68 NO -
Suzhou Laishi Transfusion Purchase of
Equipment goods 509.73 NO 1,019.47
Sinopharm Shyndec Purchase of
goods 69.95 NO 36,180.53
Sinopharm Holding
Chuangke Medicial
Technology (Guangxi) Co., Purchase of
Ltd. goods - NO 3,741,777.16
Huayi Pharmaceutical Co., Purchase of
Ltd. goods - NO 1,266,831.84
Sinopharm Huixinqinyuan
(Beijing) Technology Purchase of
Development Co., Ltd. goods NO 753,274.35
169
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Related party Type of For the six Approved trading quota whether the For the six months
transaction months ended transaction ended 30 June
30 June 2022 limit is 2021
exceeded
Sinopharm Holding
Zhihuiminsheng (Tianjin) Purchase of
Pharmaceutical Co., Ltd. goods - NO 295,539.81
Sinopharm Group Hubei Purchase of
Yukang Co., Ltd. goods - NO 260,747.00
Sinopharm Sichuan Purchase of
Pharmaceutical Co., Ltd. goods - NO 253,894.16
Hunan Yaoyou Purchase of
Pharmaceutical Co., Ltd. goods - NO 121,513.28
Sinopharm Holdings Purchase of
Kunming Co., Ltd. goods - NO 58,396.46
Sinopharm Group Purchase of
Medicine Logistic Co., Ltd. goods - NO 9,450.54
Sinopharm Holding
Changsha Gaoxin Medicine Purchase of
Co., Ltd. goods - NO 9,380.53
Sinopharm Holding Nanjing
Wende Pharmaceutical Purchase of
Co., Ltd. goods - NO 9,026.54
Sinopharm Device
(Guangdong) Medical Purchase of
Technology Co., Ltd. goods - NO 6,578.33
Sinopharm Liaoning
Medical Equipment Purchase of
Distribution Co., Ltd. goods - NO 4,424.78
10,355,000,000.00
Sinopharm Holding Purchase of
Zhangzhou Co., Ltd. goods NO 2,835.40
Naton Biotechnology Purchase of
(Beijing) Co., Ltd. goods NO 63.72
Sinopharm Holding Baotou Purchase of
Co., Ltd. goods NO (88.50)
Sinopharm Group
Shanghai Medicine Device Purchase of
Co., Ltd. goods NO (209.96)
Sinopharm Holding Purchase of
Guang’an Co., Ltd. goods NO (6,594.69)
China Medical Equipment Purchase of
Shandong Co., Ltd. goods (160.97) NO (2,177.00)
Sinopharm Holding Dezhou Purchase of
Co., Ltd. goods (223.18) NO (223.18)
Guangzhou Tianren Purchase of
Pharmaceutical Co., Ltd. goods (1,452.72) NO -
Guangzhou Tianren Purchase of
Pharmacy Chain Co., Ltd. goods (8,880.53) NO -
Sinopharm Holdings Linyi
Medical Instrument Co., Purchase of
Ltd. goods (13,074.33) NO -
Sinopharm Holding
Huaideju Pharmaceutical Purchase of
(Xiamen) Co., Ltd. goods (1,091,450.68) NO 2,654,950.93
170
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Related party Type of For the six Approved trading quota whether the For the six months
transaction months ended transaction ended 30 June
30 June 2022 limit is 2021
exceeded
Sinopharm Wuhan
ZhongLian SiYao Purchase of 10,355,000,000.00
Pharmaceutical Co., Ltd. goods - NO 124,447.86
Sinopharm Group Medicine receiving of
Logistic Co., Ltd. services 6,181,245.42 NO 9,631,686.33
China Pharmaceutical receiving of
Health Online Co., Ltd. services 5,493,166.49 NO -
Sinopharm Group
Guangdong Medicine receiving of
Device Co., Ltd. services 591,995.39 NO 34,651.32
Sinopharm Holding
Zhihuiminsheng (Tianjin) receiving of
Pharmaceutical Co., Ltd. services 476,689.66 NO 518,400.00
Puer Songmao Medicine receiving of
Group Co., Ltd. services 177,474.52 NO -
Shanghai Tongyu
Information Technology receiving of
Co., Ltd. services 172,998.92 NO 476,169.82
Sinopharm Foreign receiving of
Trade(Beijing) Co., Ltd. services 64,159.31 NO 141,592.92
Sinopharm Group Xiamen receiving of
80,000,000.00
Co., Ltd. services 39,471.70 NO -
Guorun Medical Supply
Chain Service (Shanghai) receiving of
Co., Ltd. services 25,000.00 NO 49,056.60
receiving of
Sinopharm Group services - NO 2,269,577.44
Sinopharm Huixinqinyuan
(Beijing) Technology receiving of
Development Co., Ltd. services - NO 658,831.86
Sinopharm Holding Henan receiving of
Co., Ltd. services - NO 106,046.95
China National
Pharmaceutical Foreign receiving of
Trade Corporation services - NO 68,938.05
Xinjiang Baitong Property receiving of s
Service Co., Ltd. ervices - NO 1,150.44
Sinopharm Holding Jilin receiving of
Co., Ltd. services - NO 109.23
171
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Related Party Type of transaction
ended 30 June 2022 ended 30 June 2021
Sinopharm Holding Sub Marketing Center Co., Ltd. Sale of goods 238,596,646.39 6,713,774.05
Foshan Chancheng Pharmaceutical Co., Ltd. Sale of goods 77,447,659.74 68,883,280.00
Sinopharm Holding Jilin Co., Ltd. Sale of goods 71,947,999.61 2,942,030.47
Sinopharm Group Sale of goods 69,911,174.65 139,234,971.54
Sinopharm Holding Hainan Co., Ltd. Sale of goods 57,956,239.22 56,647,385.55
Shanghai Beiyi Guoda Pharmaceutical Co. Ltd. Sale of goods 46,179,339.42 51,633,689.10
Fosun Health Technology (Jiangsu) Co., Ltd. Sale of goods 37,288,929.85 -
Sinopharm Holding Hubei Co., Ltd. Sale of goods 22,714,690.22 5,725,139.41
Sinopharm Holding Hainan Hongyi Co., Ltd. Sale of goods 18,242,777.80 19,732,331.43
China National Medical Device(Hai Nan) Co., Ltd. Sale of goods 18,053,097.39 -
Sinopharm Lerentang Medicine Co., Ltd. Sale of goods 17,485,730.43 30,299,085.61
Sinopharm Holding Wenzhou Co., Ltd. Sale of goods 16,867,572.83 16,294,606.34
China National Medicines Co., Ltd. Sale of goods 12,374,758.53 1,269,341.13
Shenzhen Hengsheng Hospital Sale of goods 12,151,223.36 13,376,757.25
Sinopharm Holding Shandong Co., Ltd. Sale of goods 11,793,989.32 14,001,108.69
Sinopharm Holding Beijing Co., Ltd. Sale of goods 10,434,145.19 20,211,375.98
Guangzhou Xinshi Hospital Co., Ltd. Sale of goods 10,167,494.98 -
Sinopharm Holding Hunan Co., Ltd. Sale of goods 9,017,405.14 2,170,058.36
Sinopharm Holding Jinzhou Co., Ltd. Sale of goods 8,680,234.86 7,182,756.92
Beijing Golden Elephant Fosun Pharmaceutical
Co., Ltd. Sale of goods 8,598,128.73 10,239,238.49
Foshan Chancheng Central Hospital Co., Ltd. Sale of goods 8,590,171.60 12,092,528.87
Sinopharm Holding Henan Co., Ltd. Sale of goods 8,051,806.62 12,870,576.33
172
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Related Party Type of transaction
ended 30 June 2022 ended 30 June 2021
Sinopharm Lingyun Biopharmaceutical (Shanghai)
Co., Ltd. Sale of goods 7,838,724.33 15,169,815.63
Sinopharm Holding Donghong Medical (Shanghai)
Co., Ltd. Sale of goods 6,891,131.97 6,709,036.12
Sinopharm Group (Tianjin) Eastern Bokang
Pharmaceutical Co., Ltd. Sale of goods 6,420,700.27 5,801,373.68
Sinopharm Sichuan Pharmaceutical Co., Ltd. Sale of goods 5,607,836.62 2,270,896.31
Sinopharm Holding Tianjin Co., Ltd. Sale of goods 5,311,089.13 2,941,625.35
Sinopharm Holding Nantong Co., Ltd. Sale of goods 5,064,569.46 8,373,035.18
Sinopharm Holding Jiangxi Co., Ltd.
Sale of goods 4,989,683.59 1,230,819.17
Sinopharm holdings Beijing Huahong Co., Ltd. Sale of goods 4,956,666.30 10,138,011.45
Sinopharm Group Xinjiang Special Drugs National
Pharmaceutical Co., Ltd. Sale of goods 4,940,793.86 8,887,736.05
Sinopharm Holding Yangzhou Co., Ltd. Sale of goods 4,872,460.21 5,243,275.79
Sinopharm Group Shanxi Co., Ltd Sale of goods 4,784,858.35 6,114,523.08
Sinopharm Holding Shanxi Co., Ltd. Sale of goods 4,378,032.64 2,569,451.46
Sinopharm Group Southwest Medicine Co., Ltd.
Sale of goods 3,866,348.67 1,686,783.92
Handan Sinopharm Lerentang Pharmacy Chain
Co., Ltd. Sale of goods 3,842,969.83 13,521,643.14
Foshan Chanyixing Medicine Development Co Ltd.
Sale of goods 3,648,580.51 4,356,266.82
Sinopharm Holding Anshan Co., Ltd. Sale of goods 3,188,314.96 1,410,135.08
Sinopharm Holding Yunnan Co., Ltd. Sale of goods 2,309,599.26 2,197,412.02
Sinopharm Holding Anhui Co., Ltd.
Sale of goods 2,281,078.42 1,714,909.94
Shanghai Merro Pharmaceutical Co., Ltd. Sale of goods 2,134,114.96 2,858,507.18
Hutchison Whampoa Sinopharm Pharmaceuticals
(Shanghai) Co., Ltd. Sale of goods 2,122,792.57 2,280,410.62
Sinopharm Holding Gansu Co., Ltd. Sale of goods 2,021,033.82 863,189.43
173
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Related Party Type of transaction
ended 30 June 2022 ended 30 June 2021
Sinopharm Holding Benxi Co., Ltd. Sale of goods 1,868,638.73 134,235.92
Shanghai Guoda Shengxin Pharmacy Co., Ltd. Sale of goods 1,839,197.93 -
Shanghai Guodaai Pharmacy Co., Ltd. Sale of goods 1,707,215.39 -
Sinopharm Holding Guizhou Co., Ltd. Sale of goods 1,581,548.88 836,038.24
Sinopharm Holding Xinjiang Special Drugs
Western Pharmaceutical Co., Ltd. Sale of goods 1,511,909.50 1,732,284.48
Shanghai Liyi Pharmacy Co.,Ltd Sale of goods 1,240,869.94 1,102,980.44
Sinopharm Holding Qinghai Co., Ltd. Sale of goods 1,231,518.56 262,068.06
Sinopharm Holding Lerentang Hebei
Pharmaceutical Co., Ltd. Sale of goods 1,217,108.90 585,023.94
Sinopharm Holding Dalian Co., Ltd. Sale of goods 1,058,459.12 1,505,999.43
Sinopharm Holding Inner Mongolia Co., Ltd. Sale of goods 1,035,028.89 150,193.67
Sinopharm Holding Fujian Co., Ltd. Sale of goods 975,376.99 992,070.43
Shenzhen Xinsheng Pharmaceutical Co., Ltd. Sale of goods 911,275.84 -
Sinopharm Holding Ningxia Co., Ltd. Sale of goods 880,530.27 766,385.82
Sinopharm Holding Anhui Pharmaceutical Co., Ltd. Sale of goods 845,414.06 1,152,047.45
Sinopharm Holding Shanghai Biomedicine Co.,
Ltd. Sale of goods 833,628.33 367,752.21
Sinopharm Holding Chongqing Taimin
Pharmaceutical Co., Ltd. Sale of goods 826,951.45 675,555.69
Sinopharm Holding Xuzhou Co., Ltd. Sale of goods 751,604.04 1,108,631.54
Sinopharm Holding Guizhou (Zunyi) Medical
Equiment Co., Ltd. Sale of goods 654,444.32 551,323.97
Sinopharm Holding Fuzhou Co., Ltd. Sale of goods 592,328.15 93,210.07
Sinopharm Lerentang Xingtai Pharmaceutical Co.,
Ltd. Sale of goods 571,105.16 3,311,038.77
Sinopharm Holding Jiangsu Co., Ltd. Sale of goods 529,772.51 526,573.72
Sinopharm Lerentang Hebei Medical Instrument
Trade Co., Ltd. Sale of goods 518,561.98 3,187,482.23
174
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Related Party Type of transaction
ended 30 June 2022 ended 30 June 2021
Sinopharm JI LIN MEDICAL Device Co., Ltd. Sale of goods 486,725.67 -
Sinopharm Holding Tongren Co., Ltd. Sale of goods 474,993.63 608,054.18
Sinopharm Lerentang Qinhuangdao Medicine Co.,
Ltd. Sale of goods 441,747.49 352,417.43
Sinopharm Holding Dalian Hecheng Co., Ltd. Sale of goods 429,081.72 440,610.07
Sinopharm Holding Shenyang Co., Ltd. Sale of goods 361,934.64 839.65
Sinopharm Holding Shanxi Co., Ltd. Sale of goods 361,219.35 1,759,444.55
Sinopharm Inner Mongolia Medical Instrument Co.,
Ltd. Sale of goods 343,274.36 -
Sinopharm Lerentang Hengshui Medicine Co., Ltd. Sale of goods 318,299.30 1,541,096.39
Sinopharm Holdings Qianxinan Co., Ltd. Sale of goods 290,137.09 -
Sinopharm Holdings Chongqing Health
Management Co., Ltd. Sale of goods 288,059.85 -
Qinghai Guoyao Holding Pharmaceutical Chain
Co., Ltd. Sale of goods 272,448.67 -
Sinopharm Fengliaoxing Medical Hospital Co., Ltd. Sale of goods 239,306.13 123,210.38
Sinopharm Lerentang Tangshan Medicine Co., Ltd. Sale of goods 225,301.22 3,561,044.84
Sinopharm Lerentang Chengde Medicine Co., Ltd. Sale of goods 223,046.99 129,707.75
Sinopharm Holding Shanxi Pharmacy Co., Ltd. Sale of goods 209,204.51 274,021.65
Sinopharm Holding Wuhu Co., Ltd. Sale of goods 201,936.94 483,333.34
Sinopharm Lerentang Tangshan Medicine Co., Ltd. Sale of goods 197,644.06 330,239.40
Sinopharm Holding Shanghai Likang
Pharmaceutical Co., Ltd. Sale of goods 194,712.99 2,986,283.70
Sinopharm Holding Wuxi Co., Ltd. Sale of goods 190,797.73 651,490.72
Sinopharm Holdings Chongqing Medical Device
Co., Ltd. Sale of goods 190,118.94 -
Shenzhen Chindex Medical Beauty Clinic Sale of goods 178,088.61 388,613.67
Sinopharm Holding Honghe Co., Ltd. Sale of goods 174,758.78 233,627.39
Sinopharm Qinghai Medical Equipment Co., Ltd. Sale of goods 159,292.04 -
Sinopharm Medicine Holding Yantai Co., Ltd. Sale of goods 150,483.19 -
Sinopharm Henan Medical Device Co., Ltd. Sale of goods 146,720.00 -
175
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Related Party Type of transaction
ended 30 June 2022 ended 30 June 2021
Sinopharm Guangdong Medical Examination Co.,
Ltd. Sale of goods 139,317.87 134,910.79
Sinopharm Holding Chuxiong Co., Ltd. Sale of goods 138,537.63 185,415.94
Sinopharm Holding Chaoyang Co., Ltd. Sale of goods 116,930.27 -
Sinopharm Baise Device Co., Ltd. Sale of goods 110,713.27 328,663.72
Sinopharm Holding Lu'an Co., Ltd. Sale of goods 102,654.87 -
Sinopharm Group Guangdong Medicine Device
Co., Ltd. Sale of goods 98,426.61 48,348.50
Sinopharm Medical Instrument Guizhou Qiannan
Co., Ltd. Sale of goods 89,931.94 70,346.37
Sinopharm Zhijun Sale of goods 86,066.90 54,493.27
Sinopharm Holding Tianjin North Medicine Co.,
Ltd. Sale of goods 74,867.26 165,577.13
Sinopharm Holding Professional Pharmacy
(Hainan) Co., Ltd. Sale of goods 69,744.72 40,146.37
Sinopharm(Zhaoqing) Medical Equipment Co., Ltd. Sale of goods 69,412.34 -
Guoyao Lerentang Shijiazhuang Medical
Management Co., Ltd. Sale of goods 59,030.87 169,490.24
Sinopharm Holding Nanjing Wende
Pharmaceutical Co.,Ltd. Sale of goods 58,348.67 175,046.02
China National Scientific Instruments & Materials
I&E Shenzhen Co., Ltd. Sale of goods 55,569.04 25,022.45
Sinopharm Medicine Holding Chenzhou Co., Ltd. Sale of goods 50,370.27 -
Chongqing Tongjunge Co., Ltd. Sale of goods 36,293.81 19,289.52
Sinopharm Lerentang Handan Medicine Co., Ltd. Sale of goods 33,197.66 69,991.28
Sinopharm Lerentang Zhangjiakou Medicine Co.,
Ltd. Sale of goods 29,666.49 55,499.70
Sinopharm Lerentang Shijiazhuang Medicine Co.,
Ltd. Sale of goods 29,082.57 135,104.03
Sinopharm Lerentang Healthcare Shijiazhuang
Pharmacy Co., Ltd. Sale of goods 28,065.45 35,758.14
176
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Related Party Type of transaction
ended 30 June 2022 ended 30 June 2021
Sinopharm Holding Zunyi Co., Ltd. Sale of goods 27,609.03 497,385.52
Sinopharm Holdings Guizhou Medical Supply
Chain Service Co., Ltd. Sale of goods 23,787.61 -
Sinopharm Lerentang Xingtai Medicine Co., Ltd. Sale of goods 22,837.84 224,344.53
Guangxi Fangning Pharmaceutical Co., Ltd. Sale of goods 21,512.75 -
Foshan Chanyun Medical Clinic Co., Ltd. Sale of goods 20,056.28 -
Sinopharm Holding Taizhou Co., Ltd. Sale of goods 14,587.16 5,834.87
Sinopharm Holding Hongrun Medical Business
Service (Shanghai) Co., Ltd. Sale of goods 13,196.79 16,629.61
Sinopharm Holding Anshun Co., Ltd. Sale of goods 12,418.33 637,336.24
Sinopharm Group Feng Liao Xing (Foshan)
Medicinal Material & Slices Co., Ltd. Sale of goods 11,705.22 -
Sinopharm Holding Pharmacy (Shanghai) Co., Ltd. Sale of goods 9,884.60 4,862.18
Sinopharm Group Fengliaoxing Medical Hospital
(Foshan Nanhai) Co., Ltd. Sale of goods 7,619.07 3,939.20
Korla Medicine Co., Ltd., Xinjiang Pharmaceutical
Group Sale of goods 4,353.98 -
Sinopharm Holding Zhuanye Pharmacy
(Dongfang) Co., Ltd. Sale of goods 2,766.78 14,607.52
Sinopharm Holding Guizhou Medical Device Co.,
Ltd. Sale of goods 2,499.47 2,506,974.27
Sinopharm Medicine Holding Jining Co., Ltd. Sale of goods 1,577.34 -
Sinopharm Medical Instrument (Jiangmen) Co.,
Ltd. Sale of goods 579.65 884.96
Sinopharm Group Quanzhou Co., Ltd. Sale of goods 185.85 -
177
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Related Party Type of transaction
ended 30 June 2022 ended 30 June 2021
Sinopharm Group Heilongjiang Co., Ltd. Sale of goods 119.47 -
Sinopharm Holding Suzhou Co., Ltd. Sale of goods 106.02 3.54
Sinopharm Holding Longyan Co., Ltd. Sale of goods 88.96 87,410.63
Sinopharm Group Nanping New Power Limited Sale of goods 50.44 -
Sinopharm Holding Ningde Co., Ltd. Sale of goods 44.24 10,083.19
Sinopharm Holding Weifang Co., Ltd. Sale of goods 23.36 -
Sinopharm Holding Tongliao Co., Ltd. Sale of goods 12.74 45.14
Sinopharm Holding Changzhou Co., Ltd. Sale of goods 2.83 21,218.05
Shanghai Guoda Lingyun Pharmacy Co., Ltd. Sale of goods - 1,444,193.49
Sinopharm Holding (Hubei) Hankou Pharmacy Co.,
Ltd. Sale of goods - 1,164,258.24
Sinopharm Holding Shangqiu Co., Ltd.
Sale of goods - 1,039,646.02
Shanghai Shengxin Pharmacy Co., Ltd. Sale of goods - 352,446.68
Jiangmen Xinhui District Jianfeng Pharmaceutical
Co., Ltd. Sale of goods - 253,856.26
Sinopharm Holding Jiaozuo Co., Ltd. Sale of goods - 220,106.10
Sinopharm Holding Anhui Pharmaceutical Chain
Co., Ltd. Sale of goods - 190,577.18
Sinopharm Holding Chongqing Co., Ltd. Sale of goods - 157,390.71
Sinopharm Lerentang Cangzhou Pharmaceutical
Trading Co., Ltd. Sale of goods - 143,767.71
Sinopharm Holding Pingdingshan Co., Ltd. Sale of goods - 121,061.94
Sinopharm Group Guangxi Medical Device Co.,
Ltd. Sale of goods - 110,309.74
Sinopharm Advanced (Shanghai) Medical Device
Co., Ltd. Sale of goods - 107,011.95
178
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Related Party Type of transaction
ended 30 June 2022 ended 30 June 2021
Sinopharm Lerentang Langfang Pharmaceutical
Co., Ltd. Sale of goods - 88,799.03
Sinopharm Holding Hubei Hongyuan Co., Ltd. Sale of goods - 74,265.48
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
Sinopharm Holding Putian Co., Ltd. Sale of goods - 26,888.49
Sinopharm Holding Yancheng Co., Ltd. Sale of goods - 25,340.97
Sichuan Taiji Pharmacy Chain Co., Ltd. Sale of goods - 18,141.59
Sinopharm Holding Hunan Weian Pharmacy
Medicine Chain Company Limited Sale of goods - 13,825.24
Sinopharm Holding Changxing Professional
Pharmacy (Haikou) Co., Ltd. Sale of goods - 6,978.32
Sinopharm Guanai Yuankang Pharmacy (Haikou)
Co., Ltd. Sale of goods - 2,902.65
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 (Shandong) Medicine Device
Co., Ltd. Sale of goods - 2,492.03
Sinopharm Holding Professional Pharmacy
Songyuan Co., Ltd. Sale of goods - 1,231.86
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 Chengdu Co., Ltd. Sale of goods - (20,800.88)
Sinopharm Lerentang Zhangjiakou Medicine Co.,
Ltd. Sale of goods (2,946.27) 107,351.54
Foshan Chengnan Fengliaoxing Medicial Hospital
Co., Ltd. Sale of goods (4,998.99) 134,895.13
Sinopharm Lerentang Baoding Hongkang
Pharmaceutical Chain Co., Ltd. Sale of goods (6,009.23) 2,371,766.36
179
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Related Party Type of transaction
ended 30 June 2022 ended 30 June 2021
Sinopharm Lerentang Cangzhou Medicine
Co., Ltd. Sale of goods (88,198.75) 441,107.97
Sinopharm Lerentang Qinhuangdao
Pharmaceutical Trading Co., Ltd Sale of goods (103,082.20) 2,637,455.35
Sinopharm Lerentang (Langfang)
Pharmaceutical Trade Co., Ltd. Sale of goods (137,280.72) 4,540,492.31
Sinopharm Lerentang Baoding Trading Co.,
Ltd. Sale of goods (429,303.50) 2,386,692.15
Sinopharm Group Medicine Logistic Co., Ltd. rendering of services 5,441,080.56 4,729,519.50
China National Medicines Co., Ltd. rendering of services 4,504,022.67 1,658,616.64
Sinopharm Holding Sub Marketing Center
Co., Ltd. rendering of services 2,387,853.65 404,513.64
Sinopharm Guangdong Medicine Device
Supply Chain Co., Ltd. rendering of services 475,699.61 498,556.31
Shenzhen Xinsheng Pharmaceutical Co.,
Ltd. rendering of services 317,734.86 -
Sinopharm Medical Instrument Guangxi
Medical Technology Co., Ltd. rendering of services 297,578.29 135,813.29
Sinopharm Group Guangdong Medicine
Device Co., Ltd. rendering of services 201,052.12 1,523.21
Wanbang Biopharmaceuticals rendering of services 182,950.57 -
Dalian Aleph Biomedical Co., Ltd. rendering of services 168,251.54 -
Sinopharm Baise Device Co., Ltd.
rendering of services 114,133.20 104,923.15
Sinopharm Group Guangxi Medical Device
Co., Ltd. rendering of services 112,186.46 25,173.94
Sinopharm Holding Lerentang Hebei
Pharmaceutical Co., Ltd. rendering of services 110,799.52 50,471.71
180
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Related Party Type of transaction
ended 30 June 2022 ended 30 June 2021
Sinopharm Holding Hunan Weian Pharmacy
Medicine Chain Company Limited rendering of services 102,102.06 102,102.49
Sinopharm Holding Shenyang Co., Ltd. rendering of services 78,800.39 2,452.83
Zhijun Pingshan rendering of services 64,164.13 83,186.24
Sinopharm Shengshi (Guangdong) Medical
Technology Co., Ltd. rendering of services 60,625.67 19,777.54
Sinopharm Medical Instrument (Foshan) Co.,
Ltd. rendering of services 46,593.49 89,941.38
Sinopharm Holding Shanxi Co., Ltd. rendering of services 43,018.86 31,886.79
Sinopharm Holding Shanxi Zhongjian
Medical Device Chain Co., Lt rendering of services 33,584.90 51,415.10
Jiangsu Huanghe Medical Co., Ltd. rendering of services 1,981.14 -
Foshan Winteam Pharmaceutical Group Ltd.
rendering of services 1,981.13 -
Sinopharm Holding Chongqing Taimin
Medicine Co., Ltd. rendering of services 1,886.79 -
Sinopharm Shenzhen MEDICAL Equipment
Co., Ltd. rendering of services 1,332.45 -
Sinopharm Holdings Chuangke Medical
Technology (Shenzhen) Co., Ltd. rendering of services 1,098.87 -
Sinopharm Medical Instrument (Huizhou)
Co., Ltd. rendering of services 915.07 173.96
Sinopharm Holding Benxi Co., Ltd.
rendering of services 849.06 -
Sinopharm Holdings Anshan Co., Ltd.
rendering of services 587.91 -
China National Scientific
INSTRUMENTS&MATERIALS I&E
Shenzhen Co., Ltd. rendering of services 63.40 -
181
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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
Related Party Type of transaction
ended 30 June 2022 ended 30 June 2021
Sinopharm Zhijun rendering of services - 1,299,722.86
rendering of services
Guangdong Jienuo - 252,229.35
Zhijun Trade rendering of services - 157,142.88
Sinopharm Group Southwest Medicine Co., rendering of services
Ltd. - 79,480.00
Sinopharm Holding Jilin Co., Ltd. rendering of services - 26,000.00
Sinopharm Holding Shanxi Dajiuzhou rendering of services
Medicine Co., Ltd. - 15,377.36
182
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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) Affiliated management/contracting and entrusted management/contracting
Escrow
Commissioner/Contracting Type of assets Commissioning/Contracting Trustee/contracting Escrow revenue/contracting income/contracting
Trustee/Contractor
party entrusted/contracted Start Date termination date revenue pricing basis income recognized
during the period
n principle, the term of
equity custody starts from
January 1, 2022 to
December 31, 2024. At
the same time, the term
of custody of the target
company shall be when
the entrusting party or its
Sinopharm Holding
Sinopharm Group Hubei related parties no longer
Guoda Pharmacy Co., Equity Escrow 1 Jan 22 Custodial agreement -
Co., Ltd. hold the equity of the
Ltd.
target company or the
pharmaceutical of the
target company. The
retail business ceases to
compete with Guoda
Pharmacy in the social
retail pharmacy industry
(whichever is earlier).
183
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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) Affiliated management/contracting and entrusted management/contracting (Continued)
Escrow
Commissioner/Contracting Type of assets Commissioning/Contracting Trustee/contracting Escrow revenue/contracting income/contracting
Trustee/Contractor
party entrusted/contracted Start Date termination date revenue pricing basis income recognized
during the period
Termination upon the
occurrence of any of the
following circumstances:
(1) the entrusted party or
its affiliates no longer hold
equity interests in the
Sinopharm Holding Zhejiang Int'l Pharmacy subject company; (2) the
Equity Escrow 1 Jan 22 Custodial agreement -
Huzhou Ltd. Co., Ltd. subject company's
pharmaceutical retail
business no longer
competes with the
entrusted party in the
same industry as social
retail pharmacies.
184
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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) Affiliated management/contracting and entrusted management/contracting (Continued)
Escrow
Commissioner/Contracting Type of assets Commissioning/Contracting Trustee/contracting Escrow revenue/contracting income/contracting
Trustee/Contractor
party entrusted/contracted Start Date termination date revenue pricing basis income recognized
during the period
In principle, the term of
equity custody starts from
January 1, 2022 to
December 31, 2024. At
the same time, the term
of custody of the target
company shall be when
the entrusting party or its
Sinopharm Holding
Sinopharm Huangshi Co., related parties no longer
Guoda Pharmacy Co., Equity Escrow 1 Jan 22 Custodial agreement -
Ltd. hold the equity of the
Ltd.
target company or the
pharmaceutical of the
target company. The
retail business ceases to
compete with Guoda
Pharmacy in the social
retail pharmacy industry
(whichever is earlier).
185
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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) Affiliated management/contracting and entrusted management/contracting (Continued)
Escrow
Commissioner/Contracting Type of assets Commissioning/Contracting Trustee/contracting Escrow revenue/contracting income/contracting
Trustee/Contractor
party entrusted/contracted Start Date termination date revenue pricing basis income recognized
during the period
Termination upon the
occurrence of any of the
following circumstances:
(1) the entrusted party or
its affiliates no longer hold
equity interests in the
Sinopharm Group Jinhua Zhejiang Int'l Pharmacy subject company; (2) the
Equity Escrow 1 Jan 22 Custodial agreement -
Co., Ltd. Co., Ltd. subject company's
pharmaceutical retail
business no longer
competes with the
entrusted party in the
same industry as social
retail pharmacies.
186
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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) Affiliated management/contracting and entrusted management/contracting (Continued)
Escrow
Commissioner/Contracting Type of assets Commissioning/Contracting Trustee/contracting Escrow revenue/contracting income/contracting
Trustee/Contractor
party entrusted/contracted Start Date termination date revenue pricing basis income recognized
during the period
Termination upon the
occurrence of any of the
following circumstances:
(1) the entrusted party or
its affiliates no longer hold
equity interests in the
Sinopharm Medicine Zhejiang Int'l Pharmacy subject company; (2) the
Equity Escrow 1 Jan 22 Custodial agreement -
Holding Lishui Co., Ltd. Co., Ltd. subject company's
pharmaceutical retail
business no longer
competes with the
entrusted party in the
same industry as social
retail pharmacies.
187
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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) Affiliated management/contracting and entrusted management/contracting (Continued)
Escrow
Commissioner/Contracting Type of assets Commissioning/Contracting Trustee/contracting termination Escrow income/contracting
Trustee/Contractor
party entrusted/contracted Start Date date revenue/contracting income recognized
revenue pricing basis during the period
In principle, the term of equity
custody starts from the date of
signing the agreement and
ends on December 31, 2024. At
the same time, the term of
custody of the target company
shall be when the entrusting
Sinopharm Holding
Sinopharm Group Hubei party or its affiliates no longer
Guoda Pharmacy Co., Equity Escrow 27 Jun 22 Custodial agreement -
Co., Ltd. hold the equity of the target
Ltd.
company or the pharmaceutical
retail business of the target
company. The date on which
there is no more social retail
pharmacy competition with
Guoda Pharmacy (whichever is
earlier) will be terminated.
Sinopharm Holding
Sinopharm Group Co., Ltd. Guoda Pharmacy Co., Equity Escrow 1 Jan 22 31 Dec 26 Custodial agreement -
Ltd.
Table of the Group’s entrusted management/contracting status:
Nil
188
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 – 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 2022 ended 30 June 2021
Sinopharm Holding Hunan Weian Pharmacy
Medicine Chain Company Limited Building 204,204.00 102,102.49
China National Pharmaceutical Group Guangdong
MEDICAL Equipment Co., Ltd. Building 116,271.70 -
China National Medicines Co., Ltd. Building 61,754.94 52,554.86
Sinopharm Zhijun Building - 957,142.86
Zhijun Trade Building - 157,142.88
Beijing Golden Elephant Fosun Pharmaceutical
Co., Ltd. Building - 66,666.66
189
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee
Rental costs for short-term Variable lease
Increase in right-of-use assets
leases and low-value asset payments not included Interest expense on lease
Rental payments (amount of right-of-use assets added
leases with simplified in the measurement of liabilities assumed
by new affiliated leases)
Types of processing lease liabilities
assets For the For the
Lessors
under For the six For the six six six For the six For the six
leases For the six For the six For the six For the six
months months months months months months
months ended months ended months ended months ended 30
ended 30 ended 30 ended 30 ended 30 ended 30 ended 30
30 June 2022 30 June 2021 30 June 2022 June 2021
June 2022 June 2021 June June June 2022 June 2021
2022 2021
Lerentang
Investment Group
Co., Ltd. Building - - - - 5,488,417.42 4,361,467.88 591,581.04 139,558.59 25,470,770.45 -
Jilin Tianheke 428,197.00 1,794,900.19
Industry and
Trade Co., Ltd. Building - - 2,063,440.08 - 3,771.18 4,889.78 - -
Sinopharm
Medicine Holding
Yangzhou Co.,
Ltd. Building - - - - 1,866,023.82 1,866,023.82 259,284.97 324,161.24 - 15,254,943.30
Guangdong
Jiyuantang
Pharmaceutical
Co., Ltd. Building - - - - 889,233.06 921,180.26 7,920.63 44,147.81 - -
Zhang Yechuan Building - - - - 780,000.00 333,046.64 98,604.95 112,393.16 - -
190
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Rental costs for short-
Variable lease payments not Increase in right-of-use assets
term leases and low- Interest expense on lease
included in the measurement Rental payments (amount of right-of-use assets
value asset leases with liabilities assumed
Types of lease liabilities added by new affiliated leases)
simplified processing
of
Lessors assets For the
under six For the six For the six
For the six For the six For the six For the six For the six For the six For the six
leases months months months
months ended months ended months ended months ended months ended months ended months ended
ended 30 ended 30 ended 30
30 June 2021 30 June 2022 30 June 2021 30 June 2022 30 June 2021 30 June 2022 30 June 2021
June June 2021 June 2022
2022
Sinopharm
Holding Shanxi
Jincheng Co.,
Ltd. Building - 96,986.32 - - 600,000.00 600,000.00 68.42 8,184.73 - 982,203.43
Wang Yixuan Building - - - - 560,000.00 - 52,966.37 139,292.57 - -
Shaoguan
Wujiang
Muyang
Pharmaceutical
Information
Consulting Co.,
Ltd. Building - - - - 508,827.42 508,827.42 116,279.29 132,111.50 - -
Zhang Guitang Building - - - - 430,000.00 49,714.26 184,443.83 6,071.40 2,307,589.89 -
Xiong Xinyuan Building - - - - 355,000.00 - 53,813.71 58,762.07 - -
191
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Rental costs for short-
Variable lease payments not Increase in right-of-use assets
term leases and low- Interest expense on lease
included in the measurement Rental payments (amount of right-of-use assets
value asset leases with liabilities assumed
Types of lease liabilities added by new affiliated leases)
simplified processing
of
Lessors assets For the
under six For the six For the six
For the six For the six For the six For the six For the six For the six For the six
leases months months months
months ended months ended months ended months ended months ended months ended months ended
ended 30 ended 30 ended 30
30 June 2021 30 June 2022 30 June 2021 30 June 2022 30 June 2021 30 June 2022 30 June 2021
June June 2021 June 2022
2022
Wang Yang Building - - - - 327,921.00 312,305.70 9,019.04 21,278.32 - 902,986.69
Li Fang Building - - - - 272,400.00 272,400.00 29,691.26 39,803.67 - -
Shenyang
Shengdiou
Trading Co.,
Ltd. Building - - - - 271,202.19 - 38,633.13 52,897.74 - -
Sinopharm
Holding Beijing
Co., Ltd. Building - - - - 264,394.23 269,047.62 21,291.42 15,290.50 - -
Guangxi Yifang
Tianjiang
Pharmaceuticrl
Co., Ltd. Building - - - - 257,389.00 257,389.00 60,145.24 68,099.87 - -
192
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Rental costs for short-
Variable lease payments not Increase in right-of-use assets
term leases and low- Interest expense on lease
included in the measurement Rental payments (amount of right-of-use assets
value asset leases with liabilities assumed
Types of lease liabilities added by new affiliated leases)
simplified processing
of
Lessors assets For the
under six For the six For the six
For the six For the six For the six For the six For the six For the six For the six
leases months months months
months ended months ended months ended months ended months ended months ended months ended
ended 30 ended 30 ended 30
30 June 2021 30 June 2022 30 June 2021 30 June 2022 30 June 2021 30 June 2022 30 June 2021
June June 2021 June 2022
2022
Beijing
Traditional
Chinese
Medicine
Tianyuan
Property
Management
Co., Ltd. Building - - - - 254,432.46 242,857.14 17,619.99 28,329.05 - -
Beijing
Huafang
Investment
Co., Ltd. Building 76,954.26 - - - 124,954.26 119,004.08 1,225.81 5,144.30 - -
Gu Haiqun Building - - - - 109,302.87 104,099.04 3,661.42 7,928.29 - -
Zhang Haiyan Building - - - - 90,000.00 85,714.26 6,474.40 9,777.03 - -
193
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Rental costs for short-term
Variable lease payments not Increase in right-of-use assets
leases and low-value asset Interest expense on lease
Types included in the measurement Rental payments (amount of right-of-use assets
leases with simplified liabilities assumed
of of lease liabilities added by new affiliated leases)
processing
Lessors assets
under For the six For the six For the six For the six
For the six For the six For the six For the six For the six For the six
leases months months months months
months ended months ended months ended months ended months ended months ended
ended 30 ended 30 ended 30 ended 30
30 June 2022 30 June 2021 30 June 2022 30 June 2021 30 June 2022 30 June 2021
June 2022 June 2021 June 2022 June 2021
Sinopharm
Zhijun
(Shenzhen)
Pingshan
Pharmaceutical
Co., Ltd. Building - - - - 25,458.72 50,917.44 4,738.18 6,662.54 - -
Hunan
Minsheng Tang
Biotechnology
Co., Ltd. Building - - - - - 7,317,209.70 - - - -
Nanjing
Yuanguang
Trading Co.,
Ltd. Building 831,206.77 1,082,390.13 - - - 1,077,247.29 9,983.46 386.94 - 422,480.04
194
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Rental costs for short-term Variable lease payments not Increase in right-of-use
leases and low-value asset included in the Interest expense on lease liabilities assets (amount of right-of-
Rental payments
Types of leases with simplified measurement of lease assumed use assets added by new
assets processing liabilities affiliated leases)
Lessors
under For the six For the six For the six For the six For the six For the six
leases For the six For the six For the six For the six
months months months months months months
months ended months ended months ended months ended 30
ended 30 ended 30 ended 30 ended 30 ended 30 ended 30
30 June 2022 30 June 2021 30 June 2022 June 2021
June 2022 June 2021 June 2022 June 2021 June 2022 June 2021
Sinopharm
Group Xinjiang
Pharmaceutical
Co., Ltd. Building - - - - - 177,233.88 - 8,160.28 - -
Shenzhen
Jiufeng
Investment
Co., Ltd. Building - - - - - 92,279.59 - - - -
Taishan
Qunkang
Pharmacy Co.,
Ltd. Equipment 37,545.73 37,545.72 - - - 11,258.41 - - - -
Beijing
GOLDEN
Elephant
Fortune
Pharmacy
Stock Co., Ltd. Building 5,729,873.40 5,490,816.74 - - 5,777,358.49 5,536,320.75 - - - -
195
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Rental costs for short-term
Variable lease payments not Increase in right-of-use assets
leases and low-value asset Interest expense on lease
included in the measurement Rental payments (amount of right-of-use assets
Types of leases with simplified liabilities assumed
of lease liabilities added by new affiliated leases)
assets processing
Lessors
under For the six For the six For the six For the six For the six For the six
leases For the six For the six For the six For the six
months months months months months months
months ended months ended months ended months ended
ended 30 ended 30 ended 30 ended 30 ended 30 ended 30
30 June 2022 30 June 2021 30 June 2022 30 June 2021
June 2022 June 2021 June 2022 June 2021 June 2022 June 2021
Sinopharm
Logistics Co.,
Ltd. Equipment 3,750,000.00 3,750,000.00 - - - 3,749,999.99 - - - -
Sinopharm
Logistics Co.,
Ltd. Building 3,540,000.00 3,540,000.00 - - - 3,539,999.99 - - - -
Shenyang
Pharmaceutical
Co., Ltd. Building 3,425,634.67 3,518,551.97 - - 3,454,166.66 3,543,964.78 - - - -
Puer Songmao
Medicine
Group Co., Ltd. Building 991,403.95 - - - 1,999,240.00 - - - - -
Pingdingshan
Pusheng
Accordance
Pharm. Chain
Co., Ltd. Building 2,451,503.11 2,413,238.91 - - 1,651,717.99 - - - - -
196
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Rental costs for short-term Increase in right-of-use
Variable lease payments not
leases and low-value asset Interest expense on lease assets (amount of right-of-
Types included in the measurement of Rental payments
leases with simplified liabilities assumed use assets added by new
of lease liabilities
processing affiliated leases)
Lessors assets
under For the six For the six For the six
For the six For the six For the six For the six For the six For the six For the six
leases months months months
months ended months ended months ended months ended months ended months ended months ended
ended 30 ended 30 ended 30
30 June 2022 30 June 2022 30 June 2022 30 June 2021 30 June 2022 30 June 2022 30 June 2021
June 2021 June 2021 June 2022
Sinopharm
Xinjiang Xinte
Pharmaceutical
Co., Ltd. Building 935,464.72 3,030,746.03 - - 943,217.19 2,748,595.47 - - - -
Xishuangbanna
Disheng
Pharmaceutical
Co., Ltd. Building 357,041.09 793,424.66 - - 720,000.00 360,000.00 - - - -
Sinopharm
Xinjiang Xinte
Karamay
Pharmaceutical
Co., Ltd. Building 260,297.57 36,695.88 - - 524,909.53 215,968.52 - - - -
Sinopharm
Holding
Xinjiang
Xintekashi
Pharmaceutical
Co., Ltd. Building 196,982.90 215,254.27 - - 428,937.87 216,191.74 - - - -
197
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Rental costs for short-term Variable lease payments Increase in right-of-use
leases and low-value asset not included in the Interest expense on lease assets (amount of right-of-
Rental payments
leases with simplified measurement of lease liabilities assumed use assets added by new
Types of
processing liabilities affiliated leases)
Lessors assets under
leases For the six For the six For the six For the six For the six For the six For the six For the six
For the six For the six
months months months months months months months months
months ended months ended
ended 30 ended 30 ended 30 ended 30 ended 30 ended 30 ended 30 ended 30
30 June 2022 30 June 2021
June 2021 June 2022 June 2021 June 2022 June 2022 June 2021 June 2022 June 2021
Zhang Kai Building 173,602.75 218,219.00 - - 345,000.00 - - - - -
Sinopharm Holding
(China) Finance Leasing
co., Ltd Equipment 225,692.82 235,568.99 - - 255,033.22 462,670.01 - 13,063.93 - -
Gu Jinhua Building 186,196.94 183,114.89 - - 187,740.00 187,740.00 - - - -
Southeast (Quanzhou)
Biotechnology
Pharmaceutical Co., Ltd. Building 117,055.19 - - - 118,025.28 118,025.28 - - - -
Sinopharm Group Co.,
Ltd. Building 6,612,173.59 5,366,818.72 - - - 5,406,057.00 - - - -
198
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Rental costs for short-term
Variable lease payments not Increase in right-of-use assets
leases and low-value asset Interest expense on lease
included in the measurement Rental payments (amount of right-of-use assets
Types of leases with simplified liabilities assumed
of lease liabilities added by new affiliated leases)
assets processing
Lessors
under For the six For the six
leases For the six For the six For the six For the six For the six For the six For the six For the six
months months
months ended months ended months ended 30 months ended months ended months ended months ended months ended
ended 30 ended 30
30 June 2021 30 June 2021 June 2022 30 June 2021 30 June 2022 30 June 2021 30 June 2022 30 June 2021
June 2022 June 2022
Sinopharm
Shanghai Co.,
Ltd. Building 95,647.70 99,291.41 - - - 586,365.00 - - -
Taishan
Xiangranhui
Trade Co., Ltd. Building - 403,221.85 - - - 405,799.98 - - -
Shanghai
Baizhong
Business
Development
(Group) Co.,
Ltd. Building 152,380.96 - - - - - 10,002.59 3,891.49 447,377.33 -
Zhao Xiaoxiao Building 30,904.11 28,602.74 - - - - 1,152.11 - 207,520.47 -
Zheng Jing Building - - - - - - 1,110.33 1,598.15 267,756.07 -
199
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 – leases (Continued)
(b) As the lessee (Continued)
Rental costs for short-term
Variable lease payments not Increase in right-of-use assets
leases and low-value asset Interest expense on lease
included in the measurement Rental payments (amount of right-of-use assets
Types of leases with simplified liabilities assumed
of lease liabilities added by new affiliated leases)
assets processing
Lessors
under For the six For the six
leases For the six For the six For the six For the six For the six For the six For the six For the six
months months
months ended months ended months ended 30 months ended months ended months ended months ended months ended
ended 30 ended 30
30 June 2021 30 June 2021 June 2022 30 June 2021 30 June 2022 30 June 2021 30 June 2022 30 June 2021
June 2022 June 2022
Sinopharm
Holding Ningxia
Co., Ltd. Building 14,194.29 15,471.77 - - - - - - - -
Sinopharm
Holding Anhui
Pharmaceutical
Co., Ltd. Building 73,448.45 73,448.45 - - - - - - - -
Zhang Zhenfang Building 201,250.00 201,250.00 - - - - - - - -
Xinjiang
Baitong
Property
Management
Co., Ltd. Building 3,967.13 - - - - - - - - -
Wang
Dongdong Building - 37,547.70 - - - - - - - -
200
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
(4) Related party transactions - Financing
Related Party Amount Inception Date Maturity Date Note
Borrow from
Sinopharm Group Finance Co., Ltd. 4,581,694.14 14 Jan 2022 29 Apr 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 11,460,983.72 17 Jan 2022 17 Apr 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 12,952,711.02 18 Jan 2022 18 May 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 10,201,698.91 18 Jan 2022 31 May 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 8,143,675.05 20 Jan 2022 20 Apr 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 18,362,109.53 20 Jan 2022 31 May 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 15,549,777.49 21 Jan 2022 31 May 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 6,437,993.18 25 Jan 2022 25 Apr 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 39,995,842.36 25 Jan 2022 25 May 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 50,000,000.00 28 Jan 2022 28 May 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 19,157,104.09 29 Jan 2022 29 Apr 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 20,950,310.84 30 Jan 2022 30 Apr 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 10,521,252.43 17 Feb 2022 17 May 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 13,277,395.44 18 Feb 2022 30 Aug 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 9,735,750.45 22 Feb 2022 1 Jul 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 12,508,032.26 24 Feb 2022 24 May 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 3,654,799.40 25 Feb 2022 1 Jul 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 50,000,000.00 15 Mar 2022 15 Mar 2023 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 25,000,000.00 16 Mar 2022 15 Mar 2023 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 18,561,004.29 24 Mar 2022 24 Jun 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 20,882,647.12 1 Apr 2022 1 Jul 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 66,923,292.74 2 Apr 2022 1 Jul 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 10,501,537.53 6 Apr 2022 6 Jul 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 5,710,440.09 7 Apr 2022 8 Oct 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 9,989,616.10 11 Apr 2022 11 Jul 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 23,311,533.65 13 Apr 2022 13 Oct 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 9,902,885.33 20 Apr 2022 1 Jul 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 21,615,699.33 21 Apr 2022 21 Oct 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 26,688,466.35 26 Apr 2022 26 Oct 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 2,127,311.90 27 Apr 2022 1 Jul 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 5,290,400.00 27 Apr 2022 26 Jul 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 8,578,763.14 27 Apr 2022 8 Oct 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 24,003,101.55 28 Apr 2022 28 Jul 2022 Short-term borrowings
201
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Related Party Amount Inception Date Maturity Date Note
Borrow from
Sinopharm Group Finance Co., Ltd. 25,178,973.40 9 May 2022 9 Aug 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 36,082,085.04 10 May 2022 10 Aug 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 14,155,733.97 10 May 2022 10 Nov 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 15,142,718.12 16 May 2022 16 Aug 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 33,000,000.00 16 May 2022 16 Nov 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 33,152,811.99 20 May 2022 20 Aug 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 24,301,867.45 24 May 2022 24 Aug 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 4,918,260.04 26 May 2022 25 Nov 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 29,176,472.57 30 May 2022 30 Aug 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 70,194,568.98 1 Jun 2022 1 Sep 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 31,220,496.54 24 Jun 2022 23 Sep 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 39,960,884.49 29 Jun 2022 29 Dec 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 200,000,000.00 26 Jan 2022 26 May 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 100,000,000.00 27 Jan 2022 27 May 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 5,093,477.36 13 Jan 2022 13 Apr 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 7,211,500.00 21 Jan 2022 21 Apr 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 6,858,600.00 17 Feb 2022 17 May 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 5,770,613.20 25 Feb 2022 25 May 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 7,387,982.36 15 Apr 2022 15 Jul 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 2,785,458.00 25 Apr 2022 25 Jul 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 7,406,166.80 13 May 2022 13 Aug 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 2,027,376.00 19 May 2022 19 Aug 2022 Short-term borrowings
Sinopharm Group Finance Co., Ltd. 4,070,860.01 31 May 2022 31 Aug 2022 Short-term borrowings
Discount on bank
Sinopharm Group Finance Co., Ltd. 3,758,607.41 26 Nov 2021 26 Sep 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,515,104.15 30 Nov 2021 30 Aug 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 26,256,887.32 24 Dec 2021 24 Oct 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 4,814,223.58 28 Dec 2021 28 Sep 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,000,000.00 13 Jan 2022 13 Jul 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 22,607,725.39 24 Jan 2022 24 Nov 2022 acceptance bill
202
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Related Party Amount Inception Date Maturity Date Note
Borrow from
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,390,397.74 28 Jan 2022 25 Oct 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,000,000.00 10 Feb 2022 10 Aug 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,000,000.00 15 Feb 2022 15 Aug 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,504,056.92 16 Feb 2022 16 Aug 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,000,000.00 17 Feb 2022 17 Aug 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,000,000.00 18 Feb 2022 19 May 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,005,059.95 18 Feb 2022 19 Aug 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 13,081,903.63 23 Feb 2022 23 Dec 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 8,533,553.63 25 Feb 2022 25 Aug 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,752,706.28 2 Mar 2022 2 Jun 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 8,216,532.88 3 Mar 2022 3 Jun 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,403,674.00 3 Mar 2022 3 Sep 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 4,614,657.80 8 Mar 2022 8 Jun 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,650,254.64 11 Mar 2022 11 Jun 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 4,509,431.97 15 Mar 2022 15 Jun 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 8,824,287.96 16 Mar 2022 16 Jun 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,400,000.00 16 Mar 2022 16 Sep 2022 acceptance bill
203
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Related Party Amount Inception Date Maturity Date Note
Borrow from
Discount on bank
Sinopharm Group Finance Co., Ltd. 4,000,000.00 18 Mar 2022 18 Sep 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,355,848.94 22 Mar 2022 20 Jun 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,353,278.20 23 Mar 2022 21 Jun 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 28,579,985.36 23 Mar 2022 23 Jun 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,220,226.56 24 Mar 2022 24 Jun 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 725,340.88 30 Mar 2022 22 May 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 500,000.00 30 Mar 2022 16 Jun 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,853,735.49 30 Mar 2022 17 Jun 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 19,000,000.00 30 Mar 2022 18 Jun 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 600,000.00 30 Mar 2022 25 Jun 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,618,112.76 30 Mar 2022 20 Sep 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,768,964.11 30 Mar 2022 21 Sep 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 6,448,329.08 30 Mar 2022 25 Oct 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,839,720.77 31 Mar 2022 17 Jun 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 2,280,054.97 31 Mar 2022 10 Jul 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 603,523.00 31 Mar 2022 28 Jul 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 712,370.09 31 Mar 2022 21 Aug 2022 acceptance bill
204
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Related Party Amount Inception Date Maturity Date Note
Borrow from
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,716,602.32 31 Mar 2022 24 Aug 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 834,825.38 31 Mar 2022 10 Sep 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 17,000,000.00 31 Mar 2022 21 Sep 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 1,243,588.88 31 Mar 2022 23 Sep 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 23,428,197.29 31 Mar 2022 28 Sep 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 783,392.65 31 Mar 2022 23 Nov 2022 acceptance bill
Discount on bank
Sinopharm Group Finance Co., Ltd. 566,705.70 31 Mar 2022 24 Nov 2022 acceptance bill
205
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
(5) Related party asset transfer
Related party Types of transaction For the six months For the six months
ended 30 June 2022 ended 30 June 2021
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
(6) Remuneration for key management personnel
For the six months For the six months
ended 30 June 2022 ended 30 June 2021
Remuneration for key management personnel 2,875,002.00 3,729,169.00
206
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
(7) Other related party transactions
Interest expense
Related party Types of transactions For the six months For the six months
ended 30 June 2022 ended 30 June 2021
Payment of finance
Sinopharm Group Finance Co., Ltd. companies loan interest 9,929,959.40 5,933,752.64
Payment of notes discount
Sinopharm Group Finance Co., Ltd. interest 2,755,665.70 8,036,560.44
Payment of entrusted loan
China Pharmaceutical Group Co., Ltd interest 611,679.44 611,679.44
Payment of entrusted loan
Jilin Yihe Investment Consulting Co., Ltd interest - 1,289,047.50
13,297,304.54 15,871,040.02
Interest income
Types of transactions For the six months For the six months
Related party ended 30 June 2022 ended 30 June 2021
Sinopharm Group Finance Co., Ltd. Deposit interest 68,478.73 190,537.17
207
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Item Related Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Accounts receivable Sinopharm Holding Sub Marketing
Center Co., Ltd. 150,246,571.76 - 171,358.08 -
Accounts receivable Foshan Chancheng Pharmaceutical
Co., Ltd. 49,143,104.57 342,906.83 65,478,562.26 462,468.44
Accounts receivable Sinopharm Group 28,741,689.58 - 47,281,052.10 -
Accounts receivable Fosun Health Technology (Jiangsu)
Co., Ltd. 13,452,790.75 - - -
Accounts receivable Sinopharm Holding Hainan Co., Ltd. 12,840,398.47 31.50 7,231,524.03 -
Accounts receivable Shanghai Beiyi Guoda
Pharmaceutical Co., Ltd. 10,726,478.86 - 10,107,687.43 -
Accounts receivable Sinopharm Health Online Co., Ltd. 10,046,668.30 - 10,199,385.40 -
Accounts receivable Sinopharm Lerentang Medicine Co.,
Ltd. 7,660,234.30 12,898,932.46 -
Accounts receivable Sinopharm Holding Jinzhou Co., Ltd. 5,967,033.85 - 3,018,576.58 -
Accounts receivable Sinopharm Holding Hainan Hongyi
Co., Ltd. 5,371,319.04 - 6,408,518.60 -
Accounts receivable Sinopharm Holding Wenzhou Co.,
Ltd. 5,038,204.28 - 3,340,580.04 -
Accounts receivable Shenzhen Hengsheng Hospital 5,003,818.98 - 5,970,504.45
Accounts receivable Sinopharm Lerentang Baoding
Hongkang Pharmaceutical Chain
Co., Ltd. 4,356,479.10 - 4,363,269.54 -
Accounts receivable Chancheng Central Hospital of
Foshan City 4,321,338.03 28,813.61 9,512,634.08 73,064.98
Accounts receivable Guangzhou New City Hospital Co. ,
Ltd. 3,530,345.11 - - -
Accounts receivable Sinopharm Holding Hubei Co., Ltd. 3,406,471.17 - 1,134,254.71 -
Accounts receivable Beijing Golden Elephant Fosun
Pharmaceutical Co., Ltd. 3,152,973.56 - 5,199,441.83 -
Accounts receivable Handan Sinopharm Lerentang
Pharmacy Chain Co., Ltd. 3,127,462.10 - 6,350,115.15 -
Accounts receivable Foshan Chanyixing Medicine
Development Co., Ltd. 3,092,493.91 20,654.37 2,100,192.09 12,889.35
208
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Item Related Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Accounts receivable Sinopharm Holding Shandong Co.,
Ltd. 3,020,348.88 - 1,287,142.05 -
Accounts receivable Sinopharm Lingyun Biopharmaceutical
(Shanghai) Co., Ltd. 2,921,795.61 - 4,816,881.56 -
Accounts receivable Shanghai Merro Pharmaceutical Co.,
Ltd. 2,753,219.10 - 2,760,284.00 -
Accounts receivable Sinopharm Holding Henan Co., Ltd. 2,523,366.34 - 2,290,850.82 -
Accounts receivable Sinopharm Holding Donghong
Medical (Shanghai) Co., Ltd. 2,437,578.93 - 315,743.01 -
Accounts receivable Sinopharm Holding Beijing Co., Ltd. 2,409,020.55 - 3,190,026.19 -
Accounts receivable Sinopharm Holding Anshan Co., Ltd. 2,070,739.60 - 231,929.14 -
Accounts receivable Sinopharm Group Medicine Logistic
Co., Ltd. 2,068,735.25 - 169,680.00 -
Accounts receivable Sinopharm Group (Tianjin) Eastern
Bokang Pharmaceutical Co., Ltd. 2,008,709.51 - 1,149,961.88 -
Accounts receivable Sinopharm Holding Shanxi Co., Ltd. 1,885,768.15 - 1,356,765.58 -
Accounts receivable Sinopharm Holding Yangzhou Co.,
Ltd. 1,842,956.17 - 953,620.90 -
Accounts receivable Sinopharm Holding Tianjin Co., Ltd. 1,632,557.72 - 701,659.92 -
Accounts receivable Sinopharm Holding Jilin Co., Ltd. 1,470,028.18 - 160,179.70 -
Accounts receivable Sinopharm Holding Hunan Co., Ltd. 1,452,606.41 - 840,572.31 -
Accounts receivable Shanghai Guodaai Pharmacy Co.,
Ltd. 1,384,329.12 - 196,142.04 -
Accounts receivable Sinopharm Holding Shanxi Co., Ltd. 1,288,115.76 - 196,356.42 -
Accounts receivable Sinopharm Holdings Beijing Huahong
1,243,113.01 - 1,490,684.54 -
co., Ltd.
Accounts receivable Sinopharm Holding Nantong Co., Ltd. 1,217,047.97 - 255,871.32 -
Accounts receivable Sinopharm Holding Benxi Co., Ltd. 1,123,401.97 - - -
Accounts receivable Sinopharm Holding Gansu Co., Ltd. 940,700.22 - 394,600.62 -
Accounts receivable Sinopharm Holding Inner Mongolia
Co., Ltd. 929,900.60 - - -
Accounts receivable Hutchison Whampoa Sinopharm
Pharmaceuticals (Shanghai) Co., Ltd. 903,907.60 - 1,125,442.00 -
Accounts receivable Sinopharm Holding Yunnan Co., Ltd. 871,407.11 - 967,537.06 -
209
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Item Related Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Accounts receivable Sinopharm Group Xinjiang Special
Drugs National Pharmaceutical Co.,
Ltd. 861,516.15 - 1,911,926.34 -
Accounts receivable Sinopharm Holding Lerentang Hebei
Pharmaceutical Co., Ltd. 812,461.01 - 443,582.00 -
Accounts receivable Shanghai Guoda Shengxin
Pharmacy Co., Ltd. 692,660.81 - 522,931.21 -
Accounts receivable Sinopharm Lerentang Xingtai
Pharmaceutical Co., Ltd. 567,400.00 - 690,415.60 -
Accounts receivable Sinopharm Lerentang Hebei Medical
Instrument Trade Co., Ltd. 567,156.83 - 1,368,182.85 -
Accounts receivable Sinopharm Holding Shanghai
Biomedicine Co., Ltd.
556,560.00 - 242,784.00 -
Accounts receivable Sinopharm Holding Anhui Co., Ltd.
499,519.06 - 612,838.36 -
Accounts receivable Sinopharm Holding Dalian Co., Ltd.
487,222.13 - 379,440.63 -
Accounts receivable Sinopharm Holding Xinjiang Special
Drugs Western Pharmaceutical Co.,
Ltd. 417,036.44 - 808,618.62 -
Accounts receivable Sinopharm Holding Shenyang Co.,
Ltd.
408,000.00 - 332,160.00 -
Accounts receivable China National Medicines Co., Ltd. 364,618.26 - 266,427.06 -
Accounts receivable Shenzhen Xinsheng Pharmaceutical
Co., Ltd. 360,590.82 - - -
Accounts receivable Sinopharm Sichuan Pharmaceutical
Co., Ltd. 341,307.76 - 892,243.77 -
Accounts receivable Sinopharm Holding Guizhou Co., Ltd. 294,138.16 - 35,603.48
Accounts receivable Shanghai Guoda Lingyun Pharmacy
Co., Ltd. 249,668.91 - 264,849.72 -
Accounts receivable Sinopharm Holding Tongren Co., Ltd. 247,406.00 - 198,715.20 -
210
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Item Related Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Accounts receivable Sinopharm Holding Xuzhou Co., Ltd. 218,432.03 - 143,015.94 -
Accounts receivable Sinopharm Holding Anhui
Pharmaceutical Co., Ltd. 181,495.40 - 269,385.42 -
Accounts receivable Sinopharm Group Southwest
Medicine Co., Ltd. 156,521.04 - 360,415.22 -
Accounts receivable Sinopharm Holding Jiangxi Co., Ltd. 151,570.23 - 421,243.00 -
Accounts receivable Dalian Aleph Biomedical Co., Ltd. 138,717.60 - - -
Accounts receivable Shanghai Liyi Drug Store Co., Ltd. 128,641.37 - 12,853.00 -
Accounts receivable Sinopharm Holding Ningxia Co., Ltd. 117,377.90 - 127,072.00 -
Accounts receivable Sinopharm Guangxi Medical
Technology Co., Ltd. 112,405.74 - 370,628.89 -
Accounts receivable Sinopharm Holding Shanghai Likang
Pharmaceutical Co., Ltd. 100,653.89 - 101,141.01 -
Accounts receivable Sinopharm Holding Qinghai Co., Ltd. 97,882.16 - 108,298.26 -
Accounts receivable Sinopharm Lerentang Baoding
Trading Co., Ltd. 87,642.44 - 2,115,416.23 -
Accounts receivable Sinopharm Group Shaanxi Co., Ltd. 82,030.08 - 62,513.05 -
Accounts receivable Guoyao Instrument Baise Co., Ltd. 57,199.19 - - -
Accounts receivable Chinese Medicine Lerentang
Qinhuangdao Pharmaceutical Co.,
Ltd. 56,892.50 - - -
Accounts receivable Sinopharm Lerentang Hengshui
Medicine Co., Ltd. 48,015.10 - - -
Accounts receivable Sinopharm Lerentang Tangshan
Medicine Co., Ltd. 34,247.55 - 1,908,215.11 -
Accounts receivable Sinopharm Holding Honghe Co., Ltd. 32,580.60 - 56,747.40 -
Accounts receivable Sinopharm Lerentang Chengde
Medicine Co., Ltd. 31,797.46 - - -
Accounts receivable Sinopharm Holding Jiangsu Co., Ltd. 25,928.10 - 6,147.90 -
Accounts receivable Sinopharm Zhijun (SHENZHEN)
Pingshan Pharmaceutical Co., Ltd. 24,876.00 - - -
Accounts receivable Guangxi Fangning Pharmaceutical
Co., Ltd. 24,188.00 - - -
211
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Item Related Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Accounts receivable Sinopharm Medicine Holding Tianjin
North Pharmaceutical Co., Ltd. 24,000.00 - - -
Accounts receivable Sinopharm Lerentang (Langfang)
Pharmaceutical Trade Co., Ltd. 23,412.19 - 721,159.72 -
Accounts receivable Sinopharm Group Guangxi Medical
Device Co., Ltd. 19,863.53 - 18,785.23 -
Accounts receivable Sinopharm Holdings Professional
Pharmacy Chain (Hainan) Co., Ltd. 19,393.90 - 28,785.90 -
Accounts receivable Chinese Medicine Lerentang Handan
Medicine Co., Ltd. 14,694.62 - - -
Accounts receivable China National Pharmaceutical
Group Guangdong MEDICAL
Equipment Co., Ltd. 14,688.00 - - -
Accounts receivable Sinopharm Fengliaoxing Medical
Hospital Co., Ltd. 12,373.32 102.23 27,591.69 275.92
Accounts receivable Sinopharm Holding Zunyi Co., Ltd. 12,238.80 - 36,840.30 -
Accounts receivable Sinopharm Holding Fujian Co., Ltd.
8,305.20 - 211,858.00 -
Accounts receivable Sinopharm Lerentang Xingtai
Pharmaceutical Co., Ltd. 7,216.92 - - -
Accounts receivable Sinopharm Holding Chuxiong Co.,
Ltd. 6,446.00 - 10,159.90 -
Accounts receivable Sinopharm Holding Hongrun Medical
Business Service (Shanghai) Co.,
Ltd. 6,364.47 - 4,507.11 -
Accounts receivable Sinopharm Holdings Chaoyang Co.,
Ltd. 4,032.00 - - -
Accounts receivable Chinese Medicine Lerentang
Zhangjiakou Pharmaceutical Co., Ltd. 2,452.28 - - -
Accounts receivable Sinopharm Group Fengliaoxing
Medical Hospital (Foshan Nanhai)
Co., Ltd. 2,012.50 11.84 53.28 0.53
Accounts receivable Sinopharm Group Zhijun (Shenzhen)
Pharmaceutical Co., Ltd. 1,688.05 - 4,583.10 -
212
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Item Related Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Accounts receivable Foshan Chengnan Fengliaoxing
Medical Hospital Co., Ltd. 527.60 5.28 1,525.37 15.25
Accounts receivable Sinopharm Holding Pharmacy
(Shanghai) Co., Ltd. 396.44 - 1,967.13 -
Accounts receivable Sinopharm Shengshi (Guangdong)
Medical Technology Co., Ltd. 283.10 - 3,904.85 -
Accounts receivable
Sinopharm Group Fuzhou Co., Ltd. 176.00 - - -
Accounts receivable Sinopharm Group Heilongjiang Co.,
Ltd. 135.00 - - -
Accounts receivable
Sinopharm Group Suzhou Co., Ltd.
55.80 - 1.60 -
Accounts receivable Sinopharm Holding Shaanxi
Pharmacy Co., Ltd. 28.80 - - -
Accounts receivable Sinopharm Holdings Tongliao Co.,
Ltd. 14.40 - - -
Accounts receivable Sinopharm Holdings Weifang Co.,
Ltd. 8.00 - - -
Accounts receivable Sinopharm Holdings Changzhou Co.,
Ltd. 3.20 - - -
Accounts receivable Sinopharm Holdings Longyan Co.,
Ltd. 1.60 - 0.40 -
Accounts receivable Sinopharm Lerentang Zhangjiakou
Pharmaceutical Trading Co., Ltd. - - 244,330.30 -
Accounts receivable Sinopharm Lerentang Qinhuangdao
Pharmaceutical Trading Co., Ltd. - - 241,098.79 -
Accounts receivable Sinopharm Lerentang Cangzhou
Pharmaceutical Trading Co., Ltd. - - 128,717.07 -
Accounts receivable
Sinopharm Holding Wuxi Co., Ltd.
- - 122,175.00 -
Accounts receivable
Sinopharm Holding Anshun Co., Ltd.
- - 72,413.70 -
Accounts receivable Sinopharm Lerentang Shijiazhuang
Traditional Chinese Medicine Co.,
Ltd. - - 65,745.00 -
213
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Item Related Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Accounts receivable Shenzhen Chindex Medical Beauty
Clinic - - 13,800.00 -
Accounts receivable Sinopharm Holding (Shandong)
Medical Device Co., Ltd. - - 2,112.00 -
Accounts receivable Sinopharm Holding Dalian Hecheng
Co., Ltd. - - 741.95 -
Note receivable Sinopharm Holding Hainan Co., Ltd. 27,543,463.81 - 17,445,992.19 -
Note receivable Sinopharm Holding Hubei Co., Ltd. 1,672,272.00 - - -
Note receivable Sinopharm Holding Hainan Hongyi
Co., Ltd. 823,017.86 - 1,085,621.78 -
Note receivable Sinopharm Holding Anshan Co., Ltd. 498,000.00 - - -
Note receivable Sinopharm Holding Jinzhou Co., Ltd. 290,394.60 - - -
Note receivable Sinopharm Holding Benxi Co., Ltd. 203,675.28 - 352,530.00 -
Note receivable Sinopharm Holding Shanxi Co., Ltd. - - 995,708.88 -
Note receivable Sinopharm Holding Lerentang Hebei
Pharmaceutical Co., Ltd. - - 466,015.90 -
Note receivable Sinopharm Holding Beijing Co., Ltd. - - 404,893.56 -
214
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Item Related Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Other receivable Sinopharm Group Zhijun (Suzhou)
Pharmaceutical Co., Ltd. 46,334,222.24 46,334,222.24 46,334,222.24 46,334,222.24
Other receivable Jiangmen Xinhui District Jianfeng
Pharmaceutical Co., Ltd. 3,214,529.94 - 577,674.47 -
Other receivable Sinopharm Xingsha
Pharmaceuticals (Xiamen) Co.,
Ltd. 2,000,000.00 - 3,870,978.00 -
Other receivable Sinopharm Holding Sub Marketing
Center Co., Ltd. 1,804,020.87 - 438,891.84 -
Other receivable Sinopharm Group Medicine
Logistic Co., Ltd. 1,508,427.90 - 1,442,469.62 -
Other receivable Sinopharm Holding (China)
Financing Lease Co., Ltd. 1,199,270.14 - 1,140,000.00 -
Other receivable Taiji Group Chongqing Fuling
Pharmaceutical Factory Co., Ltd. 400,000.00 - 900,000.00 -
Other receivable Sinopharm Holding Shanghai
Biomedicine Co., Ltd. 400,000.00 - 400,000.00 -
Other receivable Chongqing Taiji Industry (Group)
Co., Ltd. 300,000.00 - - -
Other receivable Guangdong Jiyuantang
Development Co., Ltd. 283,300.00 - 283,300.00 -
Other receivable Sinopharm Guangxi Medical
Technology Co., Ltd. 251,410.38 - 96,861.72 -
Other receivable Sinopharm Group Fujian Co., Ltd.
113,921.03 - - -
Other receivable Sinopharm Health Online Co., Ltd.
100,000.00 - 100,000.00 -
Other receivable Zhejiang Dongfang
Pharmaceutical Co., Ltd. 59,378.34 - - -
Other receivable Southwest Pharmaceutical Co.,
Ltd. 50,000.00 - 50,000.00 -
Other receivable Gu Jinhua
47,000.00 - 47,000.00 -
Other receivable Jiangsu Wanbang Pharmaceutical
Marketing & Distribution Co., Ltd. 35,437.00 - - -
Other receivable Zhang Haiyan 30,000.00 - 30,000.00 -
215
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Item Related Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Other receivable Sinopharm Xinjiang Xinte
Karamay Pharmaceutical Co., Ltd. 20,000.00 - - -
Other receivable Sinopharm Group Zhijun
(Shenzhen) Pingshan
Pharmaceutical Co., Ltd. 18,500.00 1,850.00 41,558.00 -
Other receivable Sinopharm Holding Huaideju
Pharmaceutical (Xiamen) Co.,
Ltd. 10,000.00 - 10,000.00 -
Other receivable Xinjiang Baitong Property Service
Co., Ltd. 2,000.00 - 2,000.00 -
Other receivable Sinopharm Group Guangdong
Medicine Device Co., Ltd. 1,989.91 - 936.48 -
Other receivable Shenzhen Zhijun Pharmaceutical
Trade Co., Ltd. 1,667.70 - 1,667.70 -
Other receivable Sinopharm Group Guangxi
Medical Device Co., Ltd. 1,376.18 - 1,910.43 -
Other receivable China National Scientific
Instruments & Materials I&E
Shenzhen Co., Ltd. 775.20 - 1,550.40 -
Other receivable Sinopharm Shengshi
(Guangdong) Medical Technology
Co., Ltd. 57.60 - 101.60 -
Other receivable China National Medical Device
(Hui Zhou) Co., Ltd. 44.93 - - -
Other receivable Shanghai Shyndec
Pharmaceutical Co., Ltd. - - 983,940.00 -
Other receivable Sinopharm (Tianjin) Medical
Equipment Co., Ltd. - - 248,000.00 -
Other receivable Sinopharm Holding Tongliao Co.,
Ltd. - - 231,000.00 -
Other receivable Sinopharm Holding Inner
Mongolia Co., Ltd. - - 142,500.00 -
216
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Item Related Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Other receivable Sinopharm Guangdong Medicine Device
Supply Chain Co., Ltd. - - 63,108.18 -
Other receivable Chancheng Central Hospital of Foshan
City - - 40,000.00 -
Other receivable Sinopharm Holding Hunan Weian
Pharmacy Medicine Chain Company
Limited - - 27,476.72 -
Other receivable Sinopharm Holding Chuangke Medical
Technology (Guangxi) Co., Ltd. - - 20,000.00 -
Other receivable Sinopharm Shenzhen Medicine Device
Co., Ltd. - - 4,116.60 -
Other receivable Jilin Ronghe Real Estate Development
Co., Ltd. - - 1,577.93 -
Other receivable Dalian Yalifeng Biopharmaceutical Co.,
Ltd. - - 1.00 -
217
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Item Related Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Advances to suppliers Southwest Pharmaceutical Co., Ltd. 3,954,496.59 - 3,533,846.50 -
Advances to suppliers Sinopharm Holding Huaideju (Xiamen)
Pharmacy Co., Ltd. 2,378,205.01 - - -
Advances to suppliers Sinopharm Holding Sub Marketing
Center Co., Ltd. 2,327,120.61 - 76,301.97 -
Advances to suppliers Chongqing Taiji Group TongJunGe
Pharmaceutical Co. Ltd. 1,312,459.05 - 1,294,310.50 -
Advances to suppliers Shanghai Shyndec Pharmaceutical
Marketing Co., Ltd. 947,517.00 - 156,582.46 -
Advances to suppliers Sinopharm Group Guorui Medicine
Co., Ltd. 872,915.51 - 737,263.10 -
Advances to suppliers Sinopharm Xingsha Pharmaceuticals
(Xiamen) Co., Ltd. 850,000.00 - 8,700.00 -
Advances to suppliers Xishuangbanna Disheng
Pharmaceutical Co., Ltd. 806,575.34 - 880,000.00 -
Advances to suppliers Sinopharm Foreign Trade (Beijing)
Co., Ltd. 434,400.00 - 9,318.58 -
Advances to suppliers Sinopharm Xinjiang Xinte Karamay
Pharmaceutical Co., Ltd. 361,000.37 - - -
Advances to suppliers Chongqing Yaoyou Pharmaceutical
Co., Ltd. 292,839.93 - 311,317.00 -
Advances to suppliers Sinopharm Group Xinjiang Special
Drugs National Pharmaceutical Co.,
Ltd. 277,177.95 - 424,726.49 -
Advances to suppliers Sinopharm Holding Xinjiang
Xintekashi Pharmaceutical Co., Ltd. 202,601.48 - - -
Advances to suppliers Taiji Group Chongqing Fuling
Pharmaceutical Factory Co., Ltd. 181,616.18 - 51,193.60 -
Advances to suppliers Zhangkai 171,397.25 - - -
Advances to suppliers Sinopharm Holding Beijing Co., Ltd. 150,000.00 - - -
Advances to suppliers Beijing Sinopharm Tianyuan Real
Estate & Property Management Co.,
Ltd. 150,000.00 - 63,388.34 -
Advances to suppliers Taiji Group Co., Ltd. 140,688.00 - 120,210.80 -
218
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Item Related Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Advances to suppliers Jiangxi Erye Medicine Marketing Co.,
Ltd. 122,057.22 - 311,318.12 -
Advances to suppliers Yun Nan Sinopharm Shares Holding
Dong Chang Company 100,267.43 - - -
Advances to suppliers Fresenius Kabi SSPC 86,892.39 - - -
Advances to suppliers China National Pharmaceutical
Group Guangdong MEDICAL
Equipment Co., Ltd. 57,000.00 - - -
Advances to suppliers Sinopharm Holdings Taizhou Co.,
Ltd. 42,347.20 - - -
Advances to suppliers Shenyang Red Flag Pharmaceutical
Co., Ltd. 37,224.00 - - -
Advances to suppliers Healthman Pharma Co., Ltd. 35,226.00 - - -
Advances to suppliers Sinopharm Holdings Tongliao Co.,
Ltd. 31,070.67 - - -
Advances to suppliers China National Medicines
Corporation Ltd. 25,942.21 - - -
Advances to suppliers Sinopharm Sanyi 22,168.00 - - -
Advances to suppliers Hubei Sinopharm Zhonglian
Medicine Co., Ltd. 13,529.23 - 13,529.23 -
Advances to suppliers Sinopharm Group Southwest
Medicine Co., Ltd. 8,606.16 - 25,386.90 -
Advances to suppliers Foshan Winteam Pharmaceutical
Group Ltd. 7,483.82 - - -
Advances to suppliers Sinopharm Shantou Jinshi
Pharmaceutical Co., Ltd. 7,256.35 - 1,946.55 -
Advances to suppliers Guilin Pharmaceutical Co., Ltd. 6,847.43 - - -
Advances to suppliers Guangzhou Tianren Pharmaceutical
Co., Ltd. 4,111.65 - - -
Advances to suppliers Taiji Group Sichuan Mianyang
Pharmaceutical Co., Ltd. 1,331.87 - - -
Advances to suppliers Sinopharm Luya (Shandong)
Pharmaceutical Co., Ltd. 701.96 - 701.96 -
Advances to suppliers Shanghai Shyndec Pharmaceutical
Co., Ltd. 61.20 - 61.20 -
219
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Item Related Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Advances to suppliers Sinopharm Holding Shanxi Co., Ltd. - - 19,702,020.00 -
Advances to suppliers Sinopharm Group Shanxi Co., Ltd. - - 17,500,000.00 -
Advances to suppliers Hutchison Whampoa Sinopharm
Pharmaceuticals (Shanghai) Co.,
Ltd. - - 1,568,550.89 -
Advances to suppliers Sinopharm Holding Hubei Co., Ltd. - - 1,263,180.42 -
Advances to suppliers Nanjing Yuanguang Trading Co.,
Ltd. - - 1,060,382.05 -
Advances to suppliers Sichuan Hexin Pharmaceutical Co.,
Ltd. - - 710,539.19 -
Advances to suppliers Sinopharm Group Zhijun
(Shenzhen) Pharmaceutical Co.,
Ltd. - - 626,400.00 -
Advances to suppliers Sinopharm Group Rongsheng
Pharmaceutical Co., Ltd. - - 153,853.81 -
Advances to suppliers Fosun Kite Biotechnology Co., Ltd. - - 136,103.10 -
Advances to suppliers Sinopharm Weiqida Pharmaceutical
Co., Ltd. - - 71,705.64 -
Advances to suppliers Sinopharm Holding Hunan Co., Ltd. - - 69,804.80 -
Advances to suppliers Suzhou Erye Pharmaceutical
Limited Company - - 62,732.38 -
Advances to suppliers Sinopharm Yixin Pharmaceutical
Co., Ltd. - - 58,896.00 -
Advances to suppliers Taiji Group Sichuan Nanchong
Pharmaceutical Co., Ltd. - - 18,428.18 -
Advances to suppliers Chengdu Rongsheng Pharmacy
Co., Ltd. - - 5,440.00 -
Advances to suppliers Sinopharm Tongjitang (Guizhou)
Pharmaceutical Co., Ltd. - - 4,998.68 -
Advances to suppliers Sinopharm Guangdong Global
Pharmaceutical Co., Ltd. - - 4,708.38 -
220
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Item Related Party Gross carrying Provision for Gross carrying Provision for
amount bad debt amount bad debt
Advances to suppliers Fosun Pharmaceutical Distribution
Jiangsu Co., Ltd. - - 4,417.91 -
Advances to suppliers Zhejiang Dongfang Pharmaceutical
Co., Ltd. - - 4,261.50 -
Advances to suppliers Xinjiang Baitong Property Service
Co., Ltd. - - 3,514.30 -
Advances to suppliers Sinopharm (Anhui) Jingfang
Pharmaceutical Co., Ltd. - - 3,371.29 -
Advances to suppliers China National Pharmaceutical
Industry Co., Ltd. - - 3,001.60 -
221
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2022 31 December 2021
Accounts Payable Sinopharm Holding Sub Marketing
Center Co., Ltd. 183,466,297.12 100,465,193.70
Accounts Payable China National Medicines Co., Ltd. 90,407,868.16 52,212,994.39
Accounts Payable Sinopharm Holding Shanxi Co., Ltd. 88,328,359.17 10,842,699.12
Accounts Payable Sinopharm Lerentang Medicine Co.,
Ltd. 75,396,268.11 1,772,417.74
Accounts Payable Sinopharm Group Xinjiang Special
Drugs National Pharmaceutical Co., Ltd. 74,756,678.16 31,979,965.48
Accounts Payable Sinopharm Holding Shenyang Co., Ltd. 69,775,002.13 14,164,516.46
Accounts Payable Sinopharm Group 41,213,453.09 33,021,236.10
Accounts Payable Sinopharm Holding Shanxi Co., Ltd. 37,527,900.03 1,729,364.11
Accounts Payable Jiangsu Wanbang Pharmacy Marketing
Co., Ltd. 33,190,005.07 20,971,910.88
Accounts Payable Lanzhou Biotechnology Development
Co., Ltd. 22,629,127.43 7,090,194.69
Accounts Payable Shanghai Henlius Biopharmaceuticals
Co., Ltd. 20,182,490.30 10,656,658.04
Accounts Payable Sinopharm Holding Inner Mongolia Co.,
Ltd. 17,398,810.70 9,983,494.97
Accounts Payable Sinopharm Holding Yangzhou Co., Ltd. 17,029,115.10 9,186,413.01
Accounts Payable Sinopharm Holding Jilin Co., Ltd. 15,557,574.41 9,216,663.08
Accounts payable Sinopharm Holding Lerentang Hebei
Pharmaceutical Co., Ltd. 14,739,649.66 14,283,922.83
Accounts Payable Fresenius Kabi Huarui Pharmaceuticals
Co., Ltd. 13,948,086.24 6,967,890.39
Accounts Payable Sinopharm Holding Lunan Co., Ltd. 13,856,866.03 16,602.33
Accounts Payable Foshan Winteam Pharmaceutical Group
Ltd. 12,762,448.46 8,713,524.04
Accounts Payable Chongqing Yaoyou Pharmaceutical Co.,
Ltd. 10,693,236.41 9,649,289.64
Accounts Payable Shenzhen Wanwei Medicine Trading
Co., Ltd. 10,124,241.02 5,777,054.25
Accounts Payable Sinopharm Holding Tongliao Co., Ltd. 9,739,298.59 2,314,397.29
Accounts Payable Sinopharm Holding Shandong Co., Ltd. 9,326,307.95 3,578,812.54
Accounts Payable Sinopharm Group Shanxi Medical
Devices Co., Ltd. 8,363,223.45 4,334,076.69
222
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2022 31 December 2021
Accounts Payable Main Luck Pharmaceutical 8,282,392.50 6,482,264.86
Accounts Payable Sinopharm Holding Changzhou Co.,
Ltd. 7,859,578.75 6,341,497.17
Accounts Payable Sinopharm Holding Shanxi Zhongjian
Medical Device Chain Co., Ltd. 7,580,196.51 7,525,613.61
Accounts Payable Sinopharm Yixin Pharmaceutical Co.,
Ltd. 7,241,458.23 6,415,382.87
Accounts Payable Sinopharm Holding Hunan Co., Ltd. 7,148,202.14 29,824.83
Accounts Payable Sinopharm Holding Fujian Co., Ltd. 6,773,925.76 8,654,123.83
Accounts Payable Sinopharm Holding Xinjiang Special
Drugs Western Pharmaceutical Co.,
Ltd. 6,299,919.98 16,361,977.42
Accounts Payable Sinopharm Lerentang Hebei Medical
Instrument Trade Co., Ltd. 5,967,114.95 12,471,680.21
Accounts Payable Sinopharm Holding Ningxia Co., Ltd. 5,823,598.02 3,447,317.96
Accounts Payable Sinopharm Holding Jiangsu Co., Ltd. 5,623,470.20 5,874,594.31
Accounts Payable Sinopharm Lerentang Shijiazhuang
Traditional Chinese Medicine Co., Ltd. 5,560,570.59 7,322,693.76
Accounts Payable Tibet Yaoyou Medicines Co., Ltd. 5,508,914.87 2,610,078.41
Accounts Payable Sinopharm Holding Xiamen Co., Ltd. 4,875,927.33 1,740,138.88
Accounts Payable China Otsuka Pharmaceutical Co., Ltd. 4,820,295.28 4,500,861.35
Accounts Payable Sinopharm Holding Wuxi Co., Ltd. 4,640,242.01 3,207,600.75
Accounts Payable Jinzhou Avanc Medicine Co., Ltd. 4,635,409.68 1,099,223.58
Accounts Payable Yichang Humanwell Pharmaceutical
Co., Ltd. 4,422,829.29 3,385,475.40
Accounts Payable Sinopharm Zhonglian Pharmaceutical
Group Co., Ltd. 4,324,400.09 535,158.85
Accounts Payable Sinopharm Holding Jinzhou Co., Ltd. 4,262,720.29 1,620,270.87
Accounts Payable Taiji Group Chongqing Fuling
Pharmaceutical Factory Co., Ltd. 4,053,575.09 649,888.79
Accounts Payable Jinzhou Avanc Pharmaceutical Co.,
Ltd. 3,807,159.34 2,878,136.54
Accounts Payable Sinopharm Holding Pingdingshan Co.,
Ltd. 3,720,555.86 1,592,906.66
Accounts Payable Sinopharm Holdings Beijing Huahong
co., Ltd. 3,477,616.71 649,250.59
223
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2022 31 December 2021
Accounts Payable Fosun Pharmaceutical Distribution
Jiangsu Co., Ltd. 3,439,804.24 2,431,261.32
Accounts Payable China National Pharmaceutical
Foreign Trade Corporation 3,148,330.20 1,396,353.99
Accounts Payable Sinopharm Hubei Medical Instrument
Co., Ltd. 3,082,800.00 -
Accounts Payable Sinopharm Holding Henan Co., Ltd. 2,972,512.54 1,015,692.22
Accounts Payable Zhijun Medicine 2,766,875.50 1,926,000.31
Accounts Payable Sinopharm Jiankun (Beijing) Medicine
Co., Ltd. 2,754,490.08 2,160,853.09
Accounts Payable Hutchison Whampoa Sinopharm
Pharmaceuticals (Shanghai) Co., Ltd. 2,567,572.34 549,543.84
Accounts Payable Zhijun Pingshan 2,519,380.63 3,457,919.47
Accounts Payable Sinopharm Holding Beijing Co., Ltd. 2,449,533.26 1,508,298.20
Accounts Payable Sinopharm Fengliaoxing (Foshan)
Pharmaceutical Drugs Co., Ltd. 2,434,377.87 3,043,319.35
Accounts Payable Sinopharm Holding Shanxi Dajiuzhou
Medicine Co., Ltd. 2,413,887.55 2,862,510.77
Accounts Payable Sinopharm Holding Hubei Co., Ltd. 2,396,284.38 6,529,646.18
Accounts Payable Sinopharm Holding Anshan Co., Ltd. 2,236,972.53 3,186,284.97
Accounts Payable Sinopharm Holding Jinan Co., Ltd. 1,965,327.02 389,141.05
Accounts Payable Sichuan Hexin Pharmaceutical Co.,
Ltd. 1,893,320.40 658,286.40
Accounts Payable Sinopharm Xingsha Pharmaceuticals
(Xiamen) Co., Ltd. 1,829,706.59 2,220,600.38
Accounts Payable Sinopharm Holding Xinjiang Xinte
Shenrong Pharmaceutical Co., Ltd. 1,800,356.36 14,039,337.70
Accounts Payable Sinopharm Group Rongsheng
Pharmaceutical Co., Ltd. 1,640,352.65 27,742.96
Accounts Payable Chongqing Taiji Group TongJunGe
Pharmaceutical Co. Ltd. 1,579,358.98 713,626.45
Accounts Payable Shanghai Shyndec Pharmaceutical
Marketing Co., Ltd. 1,564,527.54 1,761,406.69
Accounts Payable Sinopharm Luya (Shandong)
Pharmaceutical Co., Ltd. 1,450,330.00 1,212,120.00
Accounts Payable Guangdong Yifang Pharmaceutical
Co., Ltd. 1,337,024.81 -
224
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2022 31 December 2021
Accounts Payable China National Pharmaceutical
Industry Co., Ltd. 1,285,105.61 405,250.71
Accounts Payable Sinopharm Holding Hulun Buir Co.,
Ltd. 1,179,089.17 2,415,775.69
Accounts Payable Sinopharm Liaoning Medical
Equipment Co., Ltd. 1,129,579.64 727,241.39
Accounts Payable Yunnan Sinopharm Holding
Dongchang Medicine Co., Ltd. 1,087,473.91 2,961,127.17
Accounts Payable Sinopharm Holding Beijing Kangchen
Bio-Pharmaceutical Co., Ltd. 1,024,277.19 589,718.36
Accounts Payable Sinopharm Group Jiangxi MEDICAL
Instrument Supply CHAIN Co., Ltd. 1,007,140.00 -
Accounts Payable Sinopharm Holding Tianjin Co., Ltd. 985,793.10 229,813.17
Accounts Payable Sinopharm Holding Fuzhou Co., Ltd. 961,602.04 62,948.98
Accounts Payable Yunnan Tianjiang Yifang
Pharmaceutical Co., Ltd. 899,169.93 714,922.11
Accounts Payable Shanghai Shangsheng Biological
Products Co., Ltd. 894,093.03 579,241.40
Accounts Payable Shanghai International
Pharmaceutical Trade Co., Ltd. 891,276.96 2,548,990.42
Accounts Payable Sinopharm Holding Linfen Ningle
Pharmaceutical Co., Ltd. 872,746.49 12,060.40
Accounts Payable Sinopharm Holding Heilongjiang Co.,
Ltd. 858,285.89 719,296.07
Accounts Payable Sinopharm Holding Donghong
Medical (Shanghai) Co., Ltd. 856,950.24 5,055,020.40
Accounts Payable Sinopharm Advanced (Shanghai)
Medical Device Co., Ltd. 851,541.64 399,264.55
Accounts Payable Beijing Huasheng Pharmaceutical
Biotechnology Development Co., Ltd. 844,704.00 629,630.00
Accounts Payable Southwest Pharmaceutical Co., Ltd. 844,534.81 945,357.43
Accounts Payable China National Pharmaceutical Group
Shanxi Rfl Pharmaceutical Co., Ltd. 727,986.18 180,070.39
Accounts Payable Sinopharm Holding Benxi Co., Ltd. 680,012.88 429,027.88
Accounts Payable Shanghai Transfusion Technology
Co., Ltd. 672,576.44 503,000.00
225
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2022 31 December 2021
Accounts Payable Taiji Group Chongqing No.2
Traditional Chinese Medicine Factory
Co., Ltd. 633,418.38 506,211.59
Accounts Payable Glaxosmithkline Pharmaceuticals
(Suzhou) Co., Ltd. 626,210.36 263,701.38
Accounts Payable Sinopharm Holding Yunnan Co., Ltd. 624,328.33 695,144.06
Accounts Payable Sinopharm Holding Anhui Huaning
Medicine Co., Ltd. 598,645.35 821,729.86
Accounts Payable Sinopharm Guangdong Global
Pharmaceutical Co., Ltd. 576,411.51 6,418.59
Accounts Payable Fresenius
Kabi(Wuhan)Pharmaceutical Co., Ltd. 563,320.49 340,458.00
Accounts Payable Sinopharm Holding Dalian Co., Ltd. 548,795.98 323,244.86
Accounts Payable Sinopharm Lingyun
Biopharmaceutical (Shanghai) Co.,
Ltd. 539,001.92 652,334.19
Accounts Payable Sinopharm Weiqida Pharmaceutical
Co.,Led. 538,625.93 -
Accounts Payable Sinopharm Group Ganzhou Medical
Trade Co., Ltd. 538,553.05 -
Accounts Payable Beijing Golden Elephant Fosun
Pharmaceutical Co., Ltd. 529,814.80 639,514.41
Accounts Payable Sinopharm ChuanKang
Pharmaceutical Co., Ltd. 506,385.14 763,860.95
Accounts Payable Sinopharm Holding Shanghai Likang
Pharmaceutical Co., Ltd. 488,822.94 2,036,285.63
Accounts Payable Sinopharm Holding Shanxi
Mingdikang Medicine Co., Ltd. 466,688.45 269,440.56
Accounts Payable Sinopharm Holding Chifeng Co., Ltd. 457,177.80 47,040.00
Accounts Payable Hunan Dongting Pharmaceutical Co.,
Ltd. 450,911.10 1,416,518.77
Accounts Payable Zhejiang Dongfang Pharmaceutical
Co., Ltd. 429,618.19 57,390.71
Accounts Payable Taiji Group Co., Ltd. 426,356.16 1,024,875.40
Accounts Payable Sinopharm Tongjitang (Guizhou)
Pharmaceutical Co., Ltd. 391,373.95 402,146.32
226
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2022 31 December 2021
Accounts Payable Sinopharm Holding Xinjiang Xinte
Karamay Pharmaceutical Co., Ltd. 387,113.26 971,002.28
Accounts Payable Jiangxi Erye Medicine Marketing Co.,
Ltd. 373,347.40 940,966.38
Accounts Payable Sinopharm Holding Chuangke
Medical Technology (Guangxi) Co.,
Ltd. 283,590.00 283,590.00
Accounts Payable Jiangsu Huanghe Pharmaceutical
Co., Ltd. 282,220.96 252,184.96
Accounts Payable Sinopharm Group Yibin
Pharmaceuticals Co., Ltd. 277,253.65 164,625.16
Accounts Payable Chengdu Institute of Biological
Products Co., Ltd. 234,000.00 374,400.00
Accounts Payable Sinopharm Holding Yangzhou Medical
Treatment Equipment Co., Ltd. 218,683.61 319,244.28
Accounts Payable Sinopharm In Inner Mongolia Medical
Instrument Co., Ltd. 211,992.20 310,945.00
Accounts Payable Sinopharm Lerentang Qinhuangdao
Pharmaceutical Trading Co., Ltd. 211,586.92 577,020.69
Accounts Payable Shanghai Merro Pharmaceutical Co.,
Ltd. 209,733.37 174,610.00
Accounts Payable Sinopharm Holding Yangzhou
Biological Products Co., Ltd. 199,233.90 62,378.07
Accounts Payable Sinopharm Holding Changsha Gaoxin
Medicine Co., Ltd. 165,451.38 177,637.00
Accounts Payable Sinopharm Holding Huaideju
Pharmaceutical (Xiamen) Co., Ltd. 161,480.01 1,115.51
Accounts Payable Zhejiang Yinuo Pharmaceutical Co.,
Ltd. 157,360.01 -
Accounts Payable Taiji Group Sichuan Mianyang
Pharmaceutical Co., Ltd. 154,230.42 109,776.29
Accounts Payable Sinopharm Holding Xinjiang Special
Drugs Kashgar Pharmaceutical Co.,
Ltd. 153,795.07 398,026.67
Accounts Payable Sinopharm Holding Quanzhou Co.,
Ltd. 151,986.25 246,133.04
227
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2022 31 December 2021
Accounts Payable Suzhou Erye Pharmaceutical Limited
Company 147,222.37 195,104.80
Accounts Payable Sichuan Jiangyou Zhongba Aconiti
Science and Technology
Development Co., Ltd. 124,600.21 224,877.24
Accounts Payable Sinopharm Xinjiang Pharmaceutical
Co., Ltd. 118,824.53 100,728.21
Accounts Payable Shanghai Modern Hasen (Shangqiu)
Pharmaceutical Co., Ltd. 115,379.03 31,686.85
Accounts Payable Sinopharm Holdings Haoyang
Mianyang Pharmaceutical Co., Ltd. 114,857.52 -
Accounts Payable Sinopharm Holding Longyan Co., Ltd. 110,332.10 15,386.89
Accounts Payable Sinopharm (Anhui) Jingfang
Pharmaceutical Co., Ltd. 110,031.02 96,686.13
Accounts Payable Chengdu Rongsheng Pharmacy Co.,
Ltd. 100,000.02 100,000.02
Accounts Payable Sinopharm Shantou Jinshi
Pharmaceutical Co., Ltd. 98,278.63 98,916.34
Accounts Payable Sinopharm Holding Special Drugs
Shihezi Pharmaceutical Co., Ltd. 93,144.00 553,976.72
Accounts Payable Sinopharm Group Guorui Medicine
Co., Ltd. 92,400.64 36,000.00
Accounts Payable Sinopharm Holding Biopharmaceutical
(Tianjin) Co., Ltd. 91,675.12 77,344.37
Accounts Payable Wuhan Zhongsheng Yujin Biomedical
Co., Ltd. 88,320.00 265,512.00
Accounts Payable Sinopharm Holding Beijing Tianxing
Puxin Biological Medical Co., Ltd. 85,754.02 369,230.45
Accounts Payable Taiji Group Sichuan Nanchong
Pharmaceutical Co., Ltd. 85,402.96 -
Accounts Payable Foshan Chancheng Pharmaceutical
Co., Ltd. 84,394.80 -
Accounts Payable Sinopharm Huixinqinyuan (Beijing)
Technology Development Co., Ltd. 82,650.00 936,950.00
Accounts Payable Sinopharm Holding Anhui
Pharmaceutical Co., Ltd. 82,362.90 -
Accounts Payable Sinopharm Holding Zhejiang Co., Ltd. 80,383.91 89,674.81
228
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2022 31 December 2021
Accounts Payable Sinopharm Holding Pu'er Co., Ltd. 78,768.88 147,216.27
Accounts Payable Sinopharm Holding Changsha Co.,
Ltd. 78,431.62 76,264.60
Accounts Payable Shanghai Chaohui Pharmaceutical
Co., Ltd. 77,388.24 3,570.24
Accounts Payable Sinopharm Holding Bayannur Co.,
Ltd. 71,218.36 282,878.24
Accounts Payable Sinopharm Holding Putian Co., Ltd. 67,413.58 100,819.11
Accounts Payable Sinopharm Holding Shanghai
Biomedicine Co., Ltd. 59,228.00 99,248.80
Accounts Payable Sinopharm Holding Hainan Co., Ltd. 58,540.41 1,865.92
Accounts Payable Sinopharm Holding Yancheng Co.,
Ltd. 55,441.18 -266.37
Accounts Payable Sinopharm Sanyi Medicine (Wuhu)
Co., Ltd. 49,992.11 23,795.16
Accounts Payable Sinopharm Holding Anhui Co., Ltd. 49,006.52 4,873.80
Accounts Payable Sinopharm Holding Hunan
Pharmaceutical Development Co.,
Ltd. 45,334.83 104,439.37
Accounts Payable Hainan Fucong Health Management
Co., Ltd. 44,820.00 -
Accounts Payable Sinopharm Holding Taizhou Co., Ltd. 42,821.68 11,637.48
Accounts Payable Sinopharm Holdings Kangfu
(Tengzhou) Pharmaceutical Co., Ltd. 34,773.57 -
Accounts Payable Sinopharm Holding Changzhou
Medical Logistics Center Co., Ltd. 33,944.20 33,944.19
Accounts Payable Sinopharm Holding Dezhou Co., Ltd. 33,918.71 33,918.71
Accounts Payable Chinese Medicine Lerentang
Qinhuangdao Pharmaceutical Co.,
Ltd. 32,564.40 -
Accounts Payable Sinopharm Shanxi Linfen Co., Ltd. 31,991.52 3,217.49
Accounts Payable Sinopharm Holding Nantong Co., Ltd. 28,580.48 4,237.17
Accounts Payable Sinopharm Beijing Huamiao
Pharmaceutical Co., Ltd. 26,862.15 26,862.15
Accounts Payable Sinopharm Holding Changde Co., Ltd. 24,240.00 -
Accounts Payable Shenyang Hongqi Pharmaceutical
Co., Ltd. 23,916.53 62,777.47
229
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2022 31 December 2021
Accounts Payable Sinopharm Instrument Shengshi
(Guangdong Province) Medical
Technology Co., Ltd. 20,616.36 -
Accounts Payable Sinopharm Dezhong (Foshan)
Pharmaceutical Co., Ltd. 20,359.83 55.83
Accounts Payable Chongqing Haisiman Pharmaceutical
Co., Ltd. 18,488.82 18,488.82
Accounts Payable Shandong Skyway Pharmaceutical
Sales Co., Ltd. 16,170.00 23,214.32
Accounts Payable Sinopharm Holdings Wuhan
Hengfeng Co., Ltd. 14,601.77 -
Accounts Payable Sinopharm Holdings Xinye (Hubei)
Pharmaceutical Co., Ltd. 13,569.93 -
Accounts Payable Shantou Jinshi Powder Injection Co.,
Ltd. 12,247.70 32,570.00
Accounts Payable Sinopharm Group Hainan Hongyi Co.,
Ltd. 10,670.40 -
Accounts Payable China National Medical Device (Hui
Zhou) Co., Ltd. 9,845.00 895.00
Accounts Payable Taiji Group Sichuan Tiancheng
Pharmaceutical Co., Ltd. 9,268.51 9,268.51
Accounts Payable Sinopharm Holding Guizhou Yitong
Medicine Co., Ltd. 7,803.40 8,442.61
Accounts Payable Sinopharm Wuhan Plasma-derived
Biotherapies Co., Ltd. 7,800.00 -
Accounts Payable Sinopharm ChangChun A-THINK
Pharmaceutical Co., Ltd. 7,339.20 47,520.00
Accounts Payable Chongqing Prepared Herbal Medicine
Factory Co., Ltd. 6,753.24 -
Accounts Payable Sinopharm Holding Ordos Co., Ltd. 5,881.20 1,771.20
Accounts Payable China Medical Equipment Shandong
Co., Ltd. 5,880.26 6,204.94
Accounts Payable Sinopharm Holding Nanping Newforce
Co., Ltd. 5,507.63 318,518.38
Accounts Payable Sinopharm Holding Linyi Medical
Device Co., Ltd. 4,641.67 17,716.00
230
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2022 31 December 2021
Accounts Payable Sinopharm Holding Nanjing Wende
Pharmaceutical Co., Ltd. 3,060.00 10,858.84
Accounts Payable Changchun Changsheng Gene
Pharmaceutical Co., Ltd. 3,017.25 3,017.25
Accounts Payable Guangxi Fangning Pharmaceutical
Co., Ltd. 2,108.68 -
Accounts Payable Sinopharm Holding Ulanqab Co., Ltd. 2,092.20 16,092.20
Accounts Payable Sinopharm Nutraceuticals (Shanghai)
Co., Ltd. 1,461.56 1,461.56
Accounts Payable Guangzhou Tianren Pharmaceutical
Co., Ltd. 805.90 371,144.36
Accounts Payable Guilin Pharmaceutical Co., Ltd. 627.25 627.25
Accounts Payable Shyndec Pharma 612.78 599.57
Accounts Payable Sinopharm Group Anhui Great Health
Industry Co., Ltd.. 504.00 504.00
Accounts Payable Sinopharm Holding Liaocheng Co.,
Ltd. 174.00 174.00
Accounts Payable Sinopharm Fengliaoxing (Foshan)
Medicines Co., Ltd. 127.72 127.72
Accounts Payable Naton Biotechnology (Beijing) Co.,
Ltd. 63.72 -
Accounts Payable Sinopharm Holding Jilin Medical
Device Co., Ltd. 47.50 47.50
Accounts Payable Sinopharm MEDICINE Holding
Chongqing Co., Ltd. 45.00 45.00
Accounts Payable Hebei Wanbang Fulin Pharmaceutical
Co., Ltd. 22.98 22.98
Accounts Payable Sinopharm Holding Suzhou Co., Ltd. 11.07 11.09
Accounts Payable Shenzhen Zhijun
Medical&Pharmaceutical Trading Co.,
Ltd. 0.15 0.15
Accounts Payable Sinopharm Holding Xinyu Co., Ltd. 0.01 0.01
Accounts Payable Sinopharm Group Medicine Logistic
Co., Ltd. - 1,161,108.00
Accounts Payable Huayi Pharmaceutical Co., Ltd. - 697,088.00
Accounts Payable Fujian Tianjiang Pharmaceutical Co.,
Ltd. - 444,156.10
231
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2021 31 December 2020
Accounts Payable Chongqing Tianjiang Yifang
Pharmaceutical Co., Ltd. - 110,091.74
Accounts Payable Sinopharm Holding Huaideju
(Xiamen) Pharmacy Co., Ltd. - 76,448.34
Accounts Payable Sinopharm Holding Xinte Yili
Pharmaceutical Co., Ltd. - 69,004.64
Accounts Payable Zhongshan Kangyue Medical
Instrument Co., Ltd. - 43,949.18
Accounts Payable Sinopharm Holding Zhihuiminsheng
(Tianjin) Pharmaceutical Co., Ltd. - 37,841.70
Accounts Payable Sinopharm Wuhan ZhongLian SiYao
Pharmaceutical Co., Ltd. - 30.42
232
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2022 31 December 2021
Notes Payable Sinopharm Holding Sub Marketing
Center Co., Ltd. 220,779,199.33 174,238,525.98
Notes Payable Sinopharm Lerentang Medicine Co.,
Ltd. 125,702,166.97 223,988,788.54
Notes Payable Sinopharm Group Xinjiang Special
Drugs National Pharmaceutical Co.,
Ltd. 112,295,137.56 76,810,217.21
Notes Payable Sinopharm Group Shanxi Co., Ltd 54,497,693.37 175,372,554.73
Notes Payable Sinopharm Holding Shanxi Co., Ltd. 53,277,965.87 104,731,118.54
Notes Payable China National Medicines Co., Ltd. 50,594,345.47 35,668,918.85
Notes Payable Jiangsu Wanbang Pharmacy
Marketing Co., Ltd. 27,594,789.62 17,224,478.34
Notes Payable Sinopharm Holding Inner Mongolia
Co., Ltd. 25,383,313.52 19,372,594.16
Notes Payable Sinopharm Holding Shenyang Co.,
Ltd. 24,861,354.63 126,012,599.41
Notes Payable Sinopharm Holding Yangzhou Co.,
Ltd. 20,654,830.31 10,450,000.00
Notes Payable Sinopharm Holding Lunan Co., Ltd. 15,001,000.00 9,000,000.00
Notes Payable Sinopharm Holding Tongliao Co., Ltd. 13,317,562.50 11,376,675.46
Notes Payable Sinopharm Holding Fujian Co., Ltd. 10,997,916.52 15,478,021.78
Notes Payable Sinopharm Holding Henan Co., Ltd. 10,150,272.30 9,578,311.14
Notes Payable Chengdu Rongsheng Pharmacy Co.,
Ltd. 9,373,730.00 10,923,445.00
Notes Payable Sinopharm Xingsha Pharmaceuticals
(Xiamen) Co., Ltd. 9,068,594.08 12,211,842.35
Notes Payable Sinopharm Holding Xinjiang Special
Drugs Western Pharmaceutical Co.,
Ltd. 6,496,162.84 6,696,068.44
Notes Payable Taiji Group Chongqing Fuling
Pharmaceutical Factory Co., Ltd. 6,098,556.00 85,680.00
Notes Payable Sinopharm Yixin Pharmaceutical Co.,
Ltd. 5,954,614.57 5,133,788.50
Notes Payable Sinopharm Holding Xiamen Co., Ltd. 5,946,348.79 8,272,423.94
233
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2022 31 December 2021
Notes Payable Lanzhou Biotechnology Development
Co., Ltd. 5,872,800.00 29,760,000.00
Notes Payable Sinopharm Holding Hunan Co., Ltd. 5,507,081.28 7,064,529.75
Notes Payable Sinopharm Holding Jilin Co., Ltd. 5,115,285.54 12,609,905.80
Notes Payable Chongqing Taiji Industry (Group) Co.,
Ltd. 5,004,500.00 -
Notes Payable Sinopharm Lerentang Hebei Medical
Instrument Trade Co., Ltd. 4,337,020.77 6,563,665.32
Notes Payable Sinopharm Holding Pingdingshan Co.,
Ltd. 3,856,672.70 6,615,141.50
Notes Payable Chongqing Yaoyou Pharmaceutical
Co., Ltd. 3,579,326.99 4,078,053.88
Notes Payable Shenzhen Main Luck Pharmaceutical
Co., Ltd. 3,043,461.50 2,401,888.00
Notes Payable Sinopharm Group Shanxi Medical
Devices Co., Ltd. 2,813,318.36 230,762.90
Notes Payable Foshan Winteam Pharmaceutical
Group Ltd. 2,437,483.65 647,720.03
Notes Payable Sinopharm Holding Ningxia Co., Ltd. 2,315,775.00 2,506,342.07
Notes Payable Sinopharm Lerentang Shijiazhuang
Traditional Chinese Medicine Co., Ltd. 2,053,318.21 -
Notes Payable Sinopharm Holding Jinzhou Co., Ltd. 2,008,725.92 1,442,607.32
Notes Payable Sinopharm Holding Hulun Buir Co.,
Ltd. 1,981,532.68 2,577,203.68
Notes Payable Taiji Group Co., Ltd. 1,932,360.00 204,159.80
Notes Payable Sinopharm Zhonglian Pharmaceutical
Group Co., Ltd. 1,848,219.82 2,740,999.00
Notes Payable Sinopharm Holding Shanxi Dajiuzhou
Medicine Co., Ltd. 1,769,222.15 418,255.20
Notes Payable Sinopharm Holding Jinan Co., Ltd. 1,650,000.00 1,958,000.00
Notes Payable Shenzhen Wanwei Medicine Trading
Co., Ltd. 1,363,415.56 9,693,962.13
Notes Payable Fosun Pharmaceutical Distribution
Jiangsu Co., Ltd. 1,316,786.57 1,576,278.05
Notes Payable Sinopharm Holding Lerentang Hebei
Pharmaceutical Co., Ltd. 1,199,286.87 2,347,835.68
234
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2022 31 December 2021
Notes Payable Sinopharm Holding Linfen Ningle
Pharmaceutical Co., Ltd. 1,070,393.33 462,145.70
Notes Payable Sinopharm Holding Huaideju
(Xiamen) Pharmacy Co., Ltd 900,120.00 -
Notes Payable Sinopharm Tongjitang (Guizhou)
Pharmaceutical Co., Ltd. 804,339.00 208,837.60
Notes Payable Sinopharm Jiankun (Beijing) Medicine
Co., Ltd. 788,308.87 989,760.00
Notes Payable Sinopharm Holding Anshan Co., Ltd. 726,747.79 9,391,498.13
Notes Payable Wuhan Zhongsheng Yujin Biomedical
Co., Ltd. 707,848.00 486,772.00
Notes Payable Sinopharm Holding Yancheng Co.,
Ltd. 656,964.90 310,706.43
Notes Payable Sinopharm Holding Quanzhou Co.,
Ltd. 538,727.15 328,144.20
Notes Payable Sinopharm Ronshyn Pharmaceutical
Co., Ltd. 529,680.00 -
Notes Payable Sinopharm Holding Heilongjiang Co.,
Ltd. 470,363.14 544,058.52
Notes Payable Sinopharm Holding Bayannur Co.,
Ltd. 468,502.62 518,770.32
Notes Payable Jinzhou Avanc Pharmaceutical Co.,
Ltd. 425,032.00 1,881,505.80
Notes Payable Sinopharm Group Zhijun (Shenzhen)
Pingshan Pharmaceutical Co., Ltd. 411,533.58 771,839.40
Notes Payable Sinopharm Holding Changzhou Co.,
Ltd. 309,138.32 140,000.00
Notes Payable Sinopharm Group Feng Liao Xing
(Foshan) Medicinal Material & Slices
Co., Ltd. 264,025.70 -
Notes Payable Shanghai Transfusion Technology
Co., Ltd. 150,900.00 452,700.00
Notes Payable Sinopharm Group Zhijun (Shenzhen)
Pharmaceutical Co., Ltd. 130,693.22 533,291.20
Notes Payable Sinopharm Wuhan Plasma-derived
Biotherapies Co., Ltd. 80,600.00 -
235
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2022 31 December 2021
Notes Payable China National Pharmaceutical
Industry Co., Ltd. 50,266.00 174,480.00
Notes Payable Yunnan Tianjiang Yifang
Pharmaceutical Co., Ltd. 49,764.80 670,119.59
Notes Payable Sinopharm (Anhui) Jingfang
Pharmaceutical Co., Ltd. 21,556.00 17,410.46
Notes Payable Sinopharm Holding Dalian Co., Ltd. 5,600.00 371,213.00
Notes Payable Sinopharm Holding Xinjiang Xinte
Shenrong Pharmaceutical Co., Ltd. - 6,336,725.00
Notes Payable Sinopharm Holding Huaideju
(Xiamen) Pharmacy Co., Ltd. - 3,000,400.00
Notes Payable China Otsuka Pharmaceutical Co.,
Ltd. - 1,418,770.56
Notes Payable Sinopharm Holding Benxi Co., Ltd. - 1,328,629.14
Notes Payable Sinopharm Liaoning Medical
Equipment Co., Ltd. - 354,145.10
Notes Payable Jinzhou Avanc Medicine Co., Ltd. - 268,218.00
Notes Payable Fujian Tianjiang Pharmaceutical Co.,
Ltd. - 214,990.00
Notes Payable Sinopharm Holding Shanxi Zhongjian
Medical Device Chain Co., Ltd. - 182,068.51
Notes Payable Sinopharm Holding Nanping Newforce
Co., Ltd. - 137,011.36
Notes Payable Sinopharm Holding Changsha Co.,
Ltd. - 110,200.29
236
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2022 31 December 2021
Contract liabilities Sinopharm Holding Jilin Co., Ltd. 4,086,924.78 -
Contract liabilities Sinopharm Holding Shenyang Co., Ltd. 101,347.72 101,556.92
Contract liabilities Sinopharm Lerentang Cangzhou
Medicine Co., Ltd. 99,664.59 -
Contract liabilities Sinopharm Holding Yunnan Co., Ltd. 44,648.00 -
Contract liabilities Sinopharm Holding Guizhou Co., Ltd. 26,017.70 -
Contract liabilities Sinopharm Group Hulun Bei'er Co.,
Ltd. 21,177.25 -
Contract liabilities Chancheng Central Hospital of Foshan
City 17,342.00 -
Contract liabilities Sinopharm Holdings Chongqing
Medical Device Co., Ltd. 16,911.19 -
Contract liabilities Sinopharm Lerentang Qinhuangdao
Pharmaceutical Trading Co., Ltd. 12,048.06 -
Contract liabilities Sinopharm Guangdong Province
Clinical Diagnostics Co., Ltd. 10,300.00 -
Contract liabilities Sinopharm Lerentang Hengshui
Medicine Co., Ltd. 6,822.47 -
Contract liabilities Sinopharm Holdings Qianxinan Co.,
Ltd. 4,846.10 -
Contract liabilities China National Medical Equipment
Guizhou Qiannan Co., Ltd. 4,522.52 48.44
Contract liabilities Sinopharm Holding Hainan Co., Ltd. 3,300.64 -
Contract liabilities Sinopharm Lerentang Medicine Co.,
Ltd. 2,905.26 492,616.95
Contract liabilities Jiangmen Xinhui District Jianfeng
Pharmaceutical Co., Ltd. 1,368.00 1,368.00
Contract liabilities Sinopharm Holding Jiangxi Co., Ltd. 1,043.57 -
Contract liabilities Sinopharm Lerintang Handan
Pharmaceutical Co. 932.50 -
237
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2022 31 December 2021
Contract liabilities Sinopharm Holding Chengdu Co.,
Ltd. 851.59 851.59
Contract liabilities Sinopharm Holding Chongqing Co.,
Ltd. 755.62 755.62
Contract liabilities Sinopharm Holding Dalian
Hecheng Co., Ltd. 152.11 -
Contract liabilities Sinopharm Holding Inner Mongolia
Co., Ltd. 83.60 142,565.60
Contract liabilities Guangdong Kangmin
Pharmaceutical Group Co., Ltd. 30.10 -
Contract liabilities Sinopharm Holding Huaian Co.,
Ltd. 19.40 -
Contract liabilities Sinopharm Holding Beijing Co., Ltd. 6.48 6.48
Contract liabilities Sinopharm Holding Care Direct
Chongqing Health Management
Co. , Ltd 0.04 -
Contract liabilities Sinopharm Holding Wuhu Co., Ltd. - 36,591.72
Contract liabilities Shenzhen Xinsheng
Pharmaceutical Co., Ltd. - 25,158.00
Contract liabilities Sinopharm Holding Fujian Co., Ltd. - 21,967.30
Contract liabilities Sinopharm Lerentang Chengde
Medicine Co., Ltd. - 4,130.85
Contract liabilities Sinopharm Lerentang Healthcare
Shijiazhuang Pharmacy Co., Ltd. - 2,427.42
Contract liabilities Sinopharm Lerentang
Qinhuangdao Medicine Co., Ltd. - 436.15
Contract liabilities Sinopharm Lerentang Zhangjiakou
Medicine Co., Ltd. - 280.38
Contract liabilities Sinopharm Lerentang Tangshan
Medicine Co., Ltd. - 268.00
Contract liabilities Sinopharm Holding Lerentang
Hebei Pharmaceutical Co., Ltd. - 219.51
238
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2022 31 December 2021
Other Payable Sinopharm Group Medicine Logistic
Co., Ltd. 19,620,584.93 1,059,562.73
Other Payable Sinopharm Group 14,396,673.52 5,992,688.10
Other Payable Zhang Zhenfang 5,127,500.01 4,724,999.99
Other Payable Guangdong Kangmin
Pharmaceutical Group Co. ,Ltd. 1,894,658.90 -
Other Payable Sinopharm Group Shanghai Co.,
Ltd. 1,660,431.38 1,660,431.38
Other Payable China National of Traditional &
Herbal Medicine Co., Ltd. 1,300,000.00 1,300,000.00
Other Payable Pingdingshan Pusheng
Pharmaceutical Co. ,Ltd. 828,571.90 -
Other Payable Xishuangbanna Disheng
Pharmaceutical Co., Ltd. 814,571.16 370,554.86
Other Payable Sinopharm Holding Zhihuiminsheng
(Tianjin) Pharmaceutical Co., Ltd. 668,687.00 191,887.00
Other Payable Liu Zhiping 319,609.99 -
Other Payable Sinopharm Health Online Co., Ltd. 297,686.83 221,919.66
Other Payable Shanghai Beiyi Guoda
Pharmaceutical Co., Ltd. 296,828.39 298,903.40
Other Payable Zhang Guitang 264,714.25 -
Other Payable Sinopharm Holding (Tianjin Binhai)
Pharmaceutical Co., Ltd. 241,760.00 241,760.00
Other Payable Sinopharm Group Guangdong
Medicine Device Co., Ltd. 219,102.30 260,732.18
Other Payable Sinopharm Holding Xinjiang Xinte
Karamay Pharmaceutical Co., Ltd. 196,003.13 101,087.98
Other Payable Sinopharm Holdings Hunan Wei'an
Pharmacy Chain Co. ,Ltd. 104,625.22 -
Other Payable Sinopharm Holdings Henan
Co. ,Ltd. 85,578.73 -
Other Payable Sinopharm Holding Sub Marketing
Center Co., Ltd. 84,866.63 57,429.17
Other Payable Shanghai Tongyu Information
Technology Co., Ltd. 67,241.42 322,136.44
239
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 Related Party 30 June 2022 31 December 2021
Other Payable Sinopharm Zhijun (Shenzhen)
Pingshan Pharmaceutical Co. ,Ltd. 25,458.72 -
Other Payable Sinopharm Devices Baise Co. ,Ltd. 20,400.00 -
Other Payable Suzhou Erye Pharmaceutical Limited
Company 18,043.80 -
Other Payable Beijing Sanoqiang Pharmaceutical
Foreign Trade Co. ,Ltd. 11,061.96 -
Other Payable Zhang Haiyan 5,223.63 6,713.73
Other Payable Sinopharm Holdings Tianjin Co. ,Ltd. 3,743.26 -
Other Payable Shanghai Modern Pharmaceutical
Marketing Co.,Ltd. 3,379.20 -
Other Payable Shenzhen Main Luck Pharmaceutical
Co., Ltd. 2,770.60 2,770.60
Other Payable Fresenius Kabiwari Pharmaceutical
Co. ,Ltd. 474.73 6.28
Other Payable Xinjiang Baitong Property Services
Co. ,Ltd. 452.83 -
Other Payable Sinopharm Pharmaceutical Co. ,Ltd. 350.10 -
Other Payable Chengdu Institute of Biological
Products Co., Ltd. 327.60 327.60
Other Payable Sinopharm Devices (Huizhou)
Co. ,Ltd. 157.00 -
Other Payable Shenzhen Wanwei Medicine Trading
Co., Ltd. 123.46 15,011.46
Other Payable Chongqing Yaoyou Pharmaceutical
Co., Ltd. 37.20 -
Other Payable Jiangsu Wanbang Pharmaceutical
Marketing Co. ,Ltd. 24.00 24.00
Other Payable Sinopharm Holdings Beijing Huahong
co., Ltd. - 38,577.60
Other Payable Taishan Xiangranhui Trade Co., Ltd. - 22,270.00
Other Payable Sinopharm Tongjitang (Guizhou)
Pharmaceutical Co., Ltd. - 11,355.26
Other Payable Sinopharm Guangdong Global
Pharmaceutical Co., Ltd. - 5,903.47
Other Payable Foshan Winteam Pharmaceutical
Group Ltd. - 148.65
240
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
7. Commitments of Related Party
Lease commitment
Rent-out
Related Party 30 June 2022 31 December 2021
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company Limited 918,918.00 -
Sinopharm Group Guangdong Medical Equipment Co., Ltd. 300,141.45 -
Sinopharm Group Pharmaceutical Co., Ltd. - 56,284.20
Rent-in
Related Party 30 June 2022 31 December 2021
Lerentang Investment Group Co., Ltd. 29,126,376.12 1,883,600.91
Sinopharm Holding Yangzhou Co., Ltd. 13,062,166.74 14,928,190.56
Shenyang Pharmaceutical Co., Ltd. 6,569,444.45 10,023,611.11
Shaoguan Wujiang District Muyang Medicine Information Consultant Co., Ltd. 6,190,733.61 6,699,561.03
Beijing Golden Elephant Fosun Pharmaceutical Co., Ltd. 5,777,358.49 -
Pingdingshan Pusheng Pharmaceutical Co., Ltd. 4,957,848.72 -
Zhang Yechuan 4,896,500.00 5,579,000.00
Jilin Province Tianhe Technology Industry and Trade Co., Ltd. 4,158,238.10 -
Guangxi Yifang Tianjiang Pharmaceutical Co., Ltd. 2,854,222.82 3,460,171.22
Xiong Xinyuan 2,750,000.00 3,105,000.00
Zhang Guitang 2,649,190.33 190,571.33
Wang Yixuan 2,550,000.00 3,160,000.00
Shenyang Shengdiou Trading Co., Ltd. 2,125,396.82 1,961,904.76
Li Fang 1,362,000.00 1,634,400.00
Nanjing Yuanguang Trading Co., Ltd. 1,239,047.62 2,073,968.30
Sinopharm Holding Beijing Co., Ltd. 1,050,000.00 1,280,952.36
Beijing Sinopharm Tianyuan Real Estate & Property Management Co., Ltd. 900,000.00 999,999.98
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co., Ltd. 880,479.00 -
Xishuangbanna Disheng Pharmaceutical Co., Ltd. 750,000.00 -
241
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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)
Related Party 30 June 2022 31 December 2021
Shanghai Baizhong Commercial Development (Group) Co., Ltd. 616,761.92 -
Shenzhen Jiufeng Investment Co., Ltd. 600,000.00 400,000.00
Sinopharm Holding Co., Ltd. 390,915.00 -
Gu Jinhua 344,190.00 156,450.00
Wang Yang 312,305.70 624,611.40
Zheng Jing 300,000.00 -
Zhang Haiyan 280,101.96 365,816.32
Zhao Xiaoxiao 240,000.00 -
Sinopharm Zhijun (Shenzhen) Pingshan Pharmaceutical Co., Ltd. 237,614.72 263,073.44
Sinopharm Group Shanghai Co., Ltd. 192,880.72 -
Sinopharm Holding (China) Financial Leasing Co., Ltd. 191,916.48 338,053.05
Gu Haiqun 128,540.02 237,842.89
Zhang Kai 120,200.00 2,837,718.00
Southeast (Quanzhou) Biotechnology Pharmaceutical Co., Ltd. 117,055.19 -
Beijing Huafang Investment Co., Ltd. 48,000.00 96,000.00
Guangdong Jiyuantang Development Co., Ltd. - 995,104.74
Sinopharm Holding Shanxi Jincheng Co., Ltd - 699,931.58
Sinopharm Group Xinjiang Xintec Karamay Pharmaceutical Co., Ltd. - 524,909.53
The Group as an investor
Amount signed but
Units of the Group investee company Signing date pay consideration Equity ratio
not paid
Sinopharm Accord
Pharmaceutical
Co., Ltd. Komsomolsk Qixin 42,000,000.00 2021/7/16 60,000,000.00 2.93%
242
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Others
Related Party 30 June 2022 31 December 2021
Short-term Borrowing
Sinopharm Group Finance Co., Ltd. 717,967,509.50 92,357,153.59
Entrusted loan
CNPGC (1) 31,633,794.44 31,637,173.89
Jilin Province Yihe Investment Consulting Co., Ltd. (2) 72,450,000.00
(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 entrusted by Jilin Yihe Investment Consulting Co., Ltd. to Everbright Bank, which borrows from Jilin bank to
the group
30 June 2022 31 December 2021
Other non-current liabilities
Sinopharm Group Co., Ltd. 23,085,874.07 23,085,874.07
China Pharmaceutical Group Limited - 1,975,869.24
Cash deposite within a related party
30 June 2022 31 December 2021
Sinopharm Group Finance Co., Ltd. 2,002,037.36 1,974,371.39
For the six months ended 30 June 2022, the annual interest rates of the above deposits are 0.35% to 1.15%. (In year 2021,
the annual interest rates of the above deposits are 0.35% to 1.15%.)
243
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Others(Continued)
Other non-current assets
30 June 2022 31 December 2021
Guangxi Yifang Tianjiang Pharmaceutical Co., Ltd. 52,858.00 -
Lease liability
30 June 2022 31 December 2021
Lerentang Investment Group Co., Ltd. 26,719,400.27 1,819,686.02
Sinopharm Holding Yangzhou Co., Ltd. 12,215,775.17 13,822,514.01
Shaoguan Wujiang District Muyang Medicine Information Consultant
Co., Ltd. 5,477,107.18 5,869,655.31
Zhang Yechuan 4,182,075.37 4,863,470.42
Guangxi Yifang Tianjiang Pharmaceutical Co., Ltd. 2,854,222.82 3,032,718.03
Zhang Guitang 2,524,818.55 183,481.78
Xiong Xinyuan 2,335,666.29 2,636,852.58
Wang Yixuan 2,275,240.51 2,831,454.19
Shenyang Shengdiou Trading Co., Ltd. 1,891,162.78 1,852,529.65
Li Fang 1,293,405.88 1,536,114.62
Sinopharm Holding Beijing Co., Ltd. 969,290.78 1,228,951.74
Beijing Sinopharm Tianyuan Real Estate & Property Management Co.,
694,681.41 962,775.70
Ltd.
Shanghai Baizhong Business Development (Group) Co., Ltd. 450,685.42 -
Wang Yang 309,551.59 612,838.25
Nanjing Yuanguang Trading Co., Ltd. 303,651.84 513,668.40
244
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
X. Related party relationships and transactions (Continued)
8. Others (Continued)
Related Party 30 June 2022 31 December 2021
Lease liability(Continued)
Zhang haiyan 270,917.46 350,157.32
Sinopharm Zhijun (Shenzhen)
203,256.89 249,436.15
Pingshan Pharmaceutical Co., Ltd.
Jilin Province Tianhe Technology
171,889.90 -
Industry and Trade Co., Ltd.
Zheng Jing 145,883.96 -
Gu Haiqun 127,141.74 232,783.19
Zhao xiaoxiao 116,707.17 -
Beijing Huafang Investment Co., Ltd. 47,744.09 94,518.27
Guangdong Jiyuantang Development
- 881,312.42
Co., Ltd.
Sinopharm Holding Shanxi Jincheng
- 599,931.58
Co., Ltd.
Shenzhen Jiufeng Investment Co., Ltd. - 379,792.66
Total 65,580,277.07 44,554,642.29
245
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
XI Commitments and contingencies
1. Commitments
Capital expenditures contracted for at the balance sheet date but not recognised in the balance sheet are analysed as
follows:
30 June 2022 31 December 2021
(RMB‘0,000) (RMB‘0,000)
Capital commitments 1,321.60 2,649.01
Investment commitments 4,200.00 4,200.00
5,521.60 6,849.01
A Pursuant to the approval of Sinopharm Holdings' document [Sinopharm General Investment [2021] No. 523], the Group
subscribed for shares of the Industry Fund (Phase II) and Gongqingcheng Qixin by contributing RMB60 million. The fund
adopts a progressive funding approach, with investors contributing in tranches. As of June 30, 2022, The manager of the
Industry Fund will issue payment notices to the investors according to the actual project progress. RMB18 million, 30% of
the Group's contribution, the remaining outstanding contribution will be RMB42 million.
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, which is mainly engaged in the investment and management of businesses;
(2) Pharmaceutical 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 making 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 prices.
246
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 retail Total
segments
Principal operations income - 25,305,598,411.30 10,941,200,117.49 (478,016,598.45) 35,768,781,930.34
Principal cost of sales - (23,868,869,549.94) (8,432,158,478.56) 469,854,329.47 (31,831,173,699.03)
Income from investments in associates 100,525,425.88 (645,876.71) (1,010,887.08) - 98,868,662.09
Net profit 344,067,581.01 528,782,126.73 141,089,231.46 (219,169,846.43) 794,769,092.77
Total assets 16,376,350,240.95 28,100,891,247.35 16,345,199,365.21 (14,853,460,028.94) 45,968,980,824.57
Total liabilities (4,684,035,758.53) (21,461,893,967.76) (10,552,444,722.25) 9,259,549,465.51 (27,438,824,983.03)
247
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
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 49,180,515.92 8.92% (2,725,926.56) 5.54% 46,454,589.36 26,787,302.03 4.49% (3,680,022.61) 13.74% 23,107,279.42
Items for which provision for
bad debt is recognized by
group (credit risk
characteristics) 502,366,270.19 91.08% (18,297.71) - 502,347,972.48 569,340,700.47 95.51% (47,671.02) 0.01% 569,293,029.45
551,546,786.11 100.00% (2,744,224.27) 0.50% 548,802,561.84 596,128,002.50 100.00% (3,727,693.63) 0.63% 592,400,308.87
248
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022, accounts receivable that are individually assessed for provisions are as follows:
Bad debt
Debtor’s name Carrying amount provision Rate Assessment for impairment
Receivables from subsidiaries Internal related parties, with lower-
of the Group 45,812,069.16 - - tier recovery risk
Debtor had mismanagement, subject
to serious financial difficulties, and
Client A
the expected recoverability is
2,391,631.86 (2,391,631.86) 100.00% very low
Internal related parties within
Client B Sinoharm Group, with lower-tier
587,425.20 - - recovery risk
Debtor had mismanagement, subject
Client C to serious financial difficulties, and is
323,044.50 (323,044.50) 100.00% in bankruptcy liquidation.
Internal related parties within
Client D Sinoharm Group, with lower-tier
55,095.00 - - recovery risk
Debtor had mismanagement, subject
to serious financial difficulties, listed
Client E as a dishonest person subject to
execution by the court, and the
11,250.20 (11,250.20) 100.00% expected recoverability is very low
49,180,515.92 (2,725,926.56)
Provision for bad debts of accounts receivable according to the general model of expected credit loss:
30 June 2022
Estimated default Expected credit loss in
amount entire lifetime Expected credit loss rate
Within 1 year 501,530,331.98 - -
1 to 2 years 802,628.21 (14,966.71) 1.86%
2 to 3 years 33,310.00 (3,331.00) 10.00%
502,366,270.19 (18,297.71) -
249
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements(Continued)
1. Accounts receivable (Continued)
The accounts receivable for which the Company recognised provision for bad debts using the aging analysis method are
presented as follows:
30 June 2022
Within 1 year 547,984,921.34
1 to 2 years 3,194,260.07
2 to 3 years 33,310.00
Above 3 years 334,294.70
551,546,786.11
Bad debt provision for the current period as follows:
Increases during Reversal during Write-off during Oth
Opening balance Closing balance
the period the period the period er
Bad debt
provision （3,727,693.63） （279,904.80） 983,469.36 279,904.80 - （2,744,224.27）
Accounts receivable actually written off in the current period
Write off amount
Client A 279,904.80
As at 30 June 2022, the top five accounts receivable by customer are as follows:
% of the total accounts Bad debt provision
Amount receivable amount
Top 1 Account receivable 30,385,367.43 5.51% -
Top 2 Account receivable 29,779,470.84 5.40% 12,747.71
Top 3 Account receivable 26,325,898.25 4.77% -
Top 4 Account receivable 20,214,679.31 3.67% -
Top 5 Account receivable 18,075,138.10 3.28% -
124,780,553.93 22.63% 12,747.71
Accounts receivable derecognised due to transfer of financial assets was as follows:
From January to June 2022, the Company factored a small portion of accounts receivable at amortised cost to financial
institutions. The amount of accounts receivable derecognised was RMB 179,347,606.49 (from January to June 2021:
RMB26,097,254.38), and the amount of loss recognised through Investment income was RMB 1,781,142.79 (from January
to June 2021: RMB 221,815.32).
250
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(All amounts in Renminbi “RMB” unless otherwise stated)
XIII Notes to key items of the company financial statements (Continued)
2. Other receivables
30 June 2022 31 December 2021
Dividends receivable 16,714,220.20 -
Other receivables 4,595,538,761.51 5,003,805,208.01
4,612,252,981.71 5,003,805,208.01
Category of Dividends receivable:
30 June 2022 31 December 2021
Sinopharm Shyndec 16,714,220.20 -
Category of other receivables by nature is as follows:
Nature 30 June 2022 31 December 2021
Amounts due from subsidiaries 4,581,451,939.48 4,989,971,028.15
Receivable of equity transactions 8,980,000.00 8,980,000.00
Deposit 346,597.78 344,600.17
Others 60,165,689.51 59,914,399.34
4,650,944,226.77 5,059,210,027.66
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 2022
- 90,597.41 55,314,222.24 55,404,819.65
Balance at 1 January 2022
during the period
Provisions during the period - 645.61 - 645.61
Balance at 30 June 2022 - 91,243.02 55,314,222.24 55,405,465.26
251
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022
Within 1 year 4,594,953,153.57
1 to 2 years 224,673.39
2 to 3 years 2,358,983.90
Over 3 years 53,407,415.91
Total 4,650,944,226.77
Bad debt provision for the current period as follows:
Increases Write-off
Reversal during
Opening balance during the during the Other Closing balance
the period
peried period
Bad debt
provision （55,404,819.65） （645.61） - - - （55,405,465.26）
As at 30 June 2022，the accumulated top five other receivables are analysed below:
% of total Bad debt
Nature Amount Age
amount provision
Sinopharm Guangzhou Entrusted borrowings 2,160,350,833.45 Within 1 year 46.45% -
Sinopharm Guangxi Entrusted borrowings 840,301,675.04 Within 1 year 18.07% -
Sinopharm Dongguan Entrusted borrowings 161,152,663.83 Within 1 year 3.46% -
Sinopharm Zhuhai Entrusted borrowings 140,134,944.61 Within 1 year 3.01% -
Sinopharm Guangdong
Yuexing Entrusted borrowings 133,793,439.60 Within 1 year 2.88% -
3,435,733,556.53 73.87% -
252
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 31 December 2021
Original value Bad debt provision Carrying amount Original value Bad debt 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 2,483,597,350.57 （39,930,000.00） 2,443,667,350.57 2,470,148,715.28 （39,930,000.00） 2,430,218,715.28
8,098,274,778.15 （39,930,000.00） 8,058,344,778.15 8,084,826,142.86 （39,930,000.00） 8,044,896,142.86
(1) Subsidiaries
Amount of provision
31 December 2021 Increases Decrease 30 June 2022 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 -
253
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 340,490,180.80 30,992,778.04 - - (70,380,000.00) 301,102,958.84 -
Zhijun Suzhou - - - - - - （39,930,000.00）
Sinopharm Zhijun 496,542,941.16 27,662,634.68 - - - 524,205,575.84 -
Zhijun Trade 10,377,417.89 220,557.56 - - - 10,597,975.45 -
Zhijun Pingshan 183,906,263.81 5,525,963.98 - - - 189,432,227.79 -
Sinopharm Shyndec 1,398,901,911.62 36,123,491.62 (3,773.17) 21,202.78 (16,714,220.20) 1,418,328,612.65 -
2,430,218,715.28 100,525,425.88 (3,773.17) 21,202.78 (87,094,220.20) 2,443,667,350.57 （39,930,000.00）
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 2022 30 June 2022
Revenue Cost Revenue Cost
Principal
operations 1,965,927,776.25 1,901,785,707.34 2,062,334,204.15 1,982,274,379.60
Other
operations 14,586,522.08 8,276,541.50 16,035,919.21 9,145,932.20
1,980,514,298.33 1,910,062,248.84 2,078,370,123.36 1,991,420,311.80
For the six months ended
Classification 30 June 2022
By product
Include:
Pharmaceuticals 1,859,918,374.96
Medical devices and disposables 102,229,598.81
Diagnostic reagents 3,705,672.82
Medical equipment 74,129.66
Other 11,791,251.36
By area
Include:
China 1,977,719,027.61
By major activities
Include:
Pharmaceutical distribution 1,965,927,776.25
Others 11,791,251.36
By contract duration
Include:
At a point in time 1,965,927,776.25
Overtime 11,791,251.36
1,977,719,027.61
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2022
(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 5,491,416.33, which is expected to be recognized within 1 year.
Revenue is as follows:
30 June 2022 30 June 2021
Revenue from contracts with customers 1,977,719,027.61 2,073,736,734.56
Rentals 2,795,270.72 4,633,388.80
1,980,514,298.33 2,078,370,123.36
5. Investment income
For the six months ended For the six months ended
30 June 2022 30 June 2021
Gain on long-term equity investments under the cost
method 218,380,273.84 619,290,387.90
Gain on long-term equity investments under the
equity method 100,525,425.88 157,696,473.52
Income from the derecognition of financial assets
measured at amortised cost measured at
amortised cost (1,781,142.79) (221,815.32)
Dividends from other financial assets - 3,599,555.61
317,124,556.93 780,364,601.71
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CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Supplementary information to financial statements
For the six months ended 30 June 2022
(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 2022 Illustration
Mainly probability of gain and
Gains and losses from disposal of non-current assets 2,572,259.70)losses from the end of lease
Government grants recognized in income statement for the Mainly probability of
current year, except for those closely related to the ordinary exemption and other
operation of the Company which the Group enjoyed government grants for
constantly according to the allotment standards or special purpose and finance
quantitative criteria of the country 33,357,845.59Discount
Reversal of bad debt provision for accounts receivable that
were tested for impairment individuall 3,151,359.86
Mainly probability of the non
operating income generated
from the write off of funds
Non-operating income and expenses other than the aforesaid that do not need to be paid in
items 1,435,887.44the current period
Other 2,574,793.60
Less:Impact of income tax 10,195,412.45
Impact of non-controlling interests after tax 11,538,123.57
21,358,610.17
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 with the provisions of Explanatory
announcement No.1 on information disclosure by companies offering securities to the public - non-recurring profit or
loss.
257
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Appendix(Continued)
For the six months ended 30 June 2022
(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 4.44% 1.57 1.57
Net profit after deducting non-recurring
profit or loss attributable to the
Company’s ordinary shareholders of
the parent 4.30% 1.52 1.52
258
