Joincare Pharmaceutical Group Industry Co., Ltd. 2021 Third Quarterly Report
Stock code：600380 Stock abbreviation：健康元
Joincare Pharmaceutical Group Industry Co., Ltd.
2021 Third Quarterly Report
Board of Directors (the “Board”) and all directors of the Company hereby warrant that there are no false
representations, misleading statements or material omissions contained in the third quarterly report (the “Report”),
and severally and jointly accept responsibility for the truthfulness, accuracy and completeness of the contents of
the Report.
IMPORTANT NOTICE:
The Board, the Supervisory Committee and the directors, supervisors and senior management of the
Company hereby warrant the truthfulness, accuracy and completeness of the contents of the Report,
and that there are no false representations, misleading statements or material omissions contained in
the Report, and severally and jointly accept responsibility.
The person-in-charge of the Company, the person-in-charge of the Company's accounting work and
the person-in-charge of the accounting department (the head of the accounting department) hereby
warrant the truthfulness, accuracy and completeness of the financial statements contained in the
Report.
Whether the third quarterly financial statements are audited
□Applicable √N/A
The Report is prepared in both Chinese and English. In case of any ambiguity in the understanding
of the Chinese and English texts, the Chinese version shall prevail.
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Joincare Pharmaceutical Group Industry Co., Ltd. 2021 Third Quarterly Report
I Principal Financial Data
(I) Principal accounting data and financial indicators
Unit: Yuan Currency: RMB
From the beginning
The Reporting of the year to the
Period Year-on-Year end of the Year-on-Year Change
Item
(July-September Change (%) Reporting Period (%)
2021) (January –
September 2021)
Revenues 4,098,276,714.19 12.98 11,933,648,988.85 18.12
Net profit attributable to
Shareholders of the listed 321,327,690.20 27.91 1,008,675,184.73 8.76
company
Net profit attributable to
Shareholders of the listed
company after deducting 321,676,905.90 52.36 919,569,233.33 14.45
the extraordinary gain or
loss
Net cash flow from
N/A N/A 1,621,169,704.58 -18.31
operating activities
Basic earnings per share
0.1640 25.67 0.5154 7.64
(RMB/share)
Diluted earnings per share
0.1638 26.49 0.5142 7.96
(RMB/share)
Weighted average return on Increased by 0.47 Increased by 0.17
2.85 8.89
net assets (%) percentage point percentage point
End of the
End of the Previous Year Change (%)
Reporting Period
Total assets 29,154,637,491.82 28,156,977,599.07 3.54
Owners’ equity attributable
to Shareholders of the listed 11,314,080,616.51 11,096,125,890.51 1.96
company
Note: 1. “Reporting Period” refers to the 3rd Quarter of 2021, from July 1, 2021 to September 30, 2021.
2. From January to September 2021, the Company recorded operating revenues of RMB 11,934
million, representing an increase of 18.12% year-on-year; the main driver of the growth is significant
increasing sales volume of main product categories in key specialist arenas of the Chemical drug
preparation segment. Revenues from chemical drug preparation products amounted to RMB 6,907
million, representing an increase of 40.96% year-on-year, of which, revenues from Inhalation products
amounted to 274 million, representing an increase of 957.88% year-on-year; Revenues from
anti-infective drugs amounted to RMB1,053 million, representing a decrease of 0.19% year-on-year;
Revenues from gastroenterology products amounted to RMB 2,993 million, representing an increase of
68.66% year-on-year; Revenues from gonadotropic hormones products amounted to RMB 1,978 million,
representing an increase of 37.75% year-on-year; Revenues from psychiatric products amounted to
RMB 306 million, representing an increase of 49.77% year-on-year. Revenues from APIs and
intermediates amounted to RMB 3,441 million, representing an increase of 17.51% year-on-year.
Revenues from traditional Chinese drug preparation products amounted to RMB 853 million,
representing a decrease of 10.53% year-on-year. Revenues from diagnostic reagents and equipment
products amounted to RMB552 million, representing a decrease of 52.64% year-on-year. Revenues from
health care products amounted to RMB 86 million, representing a decrease of 20.28% year-on-year.
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Joincare Pharmaceutical Group Industry Co., Ltd. 2021 Third Quarterly Report
(Ⅱ) Items and amounts of extraordinary gains and losses
Unit: Yuan Currency: RMB
Amount from the
beginning of the year to
Amounts for the
Item the end of the Reporting Description
Reporting Period
Period (January –
September 2021)
Gains and losses on disposal of
non-current assets (Including the Proceeds from disposal of
528,115.38 20,878,916.52
write-off part of the provision for fixed assets
impairment of assets）
Government grants included in profit
and loss for the Period (except for
government grants closely associated Government grants included
with normal corporate businesses, 45,995,421.31 175,456,418.58 in profit and loss for the
entitled at fixed amount or fixed level Period
according to national policies and
national unified standards)
Gains and losses on fair value changes
of financial assets held for trading,
derivative financial assets, financial
liabilities held for trading, derivative Gains or losses arising from
financial liabilities, and investment changes in fair value of
income generated on disposal of financial assets/liabilities held
financial assets held for trading, for trading, and investment
-48,806,320.50 6,742,628.05
derivative financial assets, financial gains from holding and
liabilities held for trading, derivative disposal of financial
financial liabilities and other debt assets/liabilities held for
investments, except for effective trading
hedging activities related to the
ordinary operating business of the
Company
Other non-operating
Other non-operating revenues and
Revenues and non-operating
non-operating expenditures apart from -12,046,187.71 -13,444,794.44
expenditures apart from the
the above items
above items
Effect of the above items on
Less: Effect on income tax 3,376,118.90 29,574,335.32
income tax
The portion of the above
Effect on minority interests after
-17,355,874.72 70,952,881.99 items to which minority
tax
shareholders are entitled
Total -349,215.70 89,105,951.40
The explanation on the recognitions of the items of extraordinary gains and losses as set out in the
“Interpretative Announcement for Information Disclosure of Companies that Issue Securities to the
Public No. 1 – Extraordinary Gains or Losses” as items of recurring gains and losses
□Applicable √N/A
(Ⅲ) Changes and the reasons for changes in principal accounting data and financial indicators
√Applicable □N/A
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Joincare Pharmaceutical Group Industry Co., Ltd. 2021 Third Quarterly Report
Change in proportion（%）
Name of item Explanation
(2021Q3 compared with 2020 Q3)
Net profit attributable to
Mainly due to the significant growth of
Shareholders of the listed
the sales revenues from the chemical
company after deducting the 52.36
drugs, which is the main driver of the
extraordinary gain or loss
growth of the net incomes.
(2021 Q3 )
(IV) Substantial changes of other items in the Financial Statements and financial indicators and
reasons thereof
Unit Yuan Currency：RMB
Change in
Balance Sheet 2021/09/30 2020/12/31 proportion Main Reason
（%）
Mainly due to the fact that the subsidiary Livzon
Group was allocated the shares of Beam
Therapeutics Inc. (NASDAQ: BEAM) originally
Financial assets held held by SCC VENTURE VII 2018-C, L.P. pursuant
189,909,950.41 28,328,748.72 570.38
for trading to the investment agreement, as a result of the
proposed deregistration of SCC VENTURE VII
2018-C, L.P. in which Livzon Group made
investment.
Mainly due to the increase in procurement amounts
Prepayments 522,396,275.49 209,926,040.57 148.85
and costs prepaid for materials.
Mainly due to the receipt of consideration for the
Non-current assets
8,634,022.41 19,934,376.07 -56.69 transfer of some equity interest in a controlling
due within one year
subsidiary of the subsidiary Livzon Group.
Mainly due to the subsidiary Livzon Group’s
Long-term equity acquisition of 40% equity interest in Tianjin
1,418,022,709.96 628,279,599.73 125.70
investments Tongrentang Group Co., Ltd. (天津同仁堂集团股
份有限公司).
Other non-current Mainly due to the increase in prepayment for
608,764,830.86 373,557,910.72 62.96
assets engineering equipment.
Financial liabilities Mainly due to the increased losses from foreign
39,018.28 212.07 18298.77
held for trading exchange forward contracts owned by Livzon Group
Mainly due to the payment for the special funds of
Employee benefits
280,937,529.46 476,521,798.51 -41.04 the “Medium to Long-term Business Partner Share
payables
Ownership Scheme”.
Mainly due to some contract amounts received in
Other current advance were transferred to revenue upon fulfilling
3,343,666.92 6,267,034.79 -46.65
liabilities the conditions for revenue recognition, and the
decrease in tax for items pending for settlement.
Mainly due to the new bank borrowings of the
Long-term loans 688,100,000.00 360,324,027.48 90.97
subsidiary Livzon Group.
Mainly due to the subsidiary Livzon Group’s
reclassification of leasing liabilities due within one
Leasing liabilities 6,042,261.51 9,817,780.04 -38.46
year to non-current liabilities due within one year
caused by the change in credit period.
Mainly due to Livzon Group’s transfer of other
Other comprehensive comprehensive income recognized in the previous
25,758,615.13 116,300,559.28 -77.85
income period into retained earnings after the disposal of
investment in other equity instruments.
Change in
Income Statement 2021 Jan-Sep 2020 Jan-Sep proportion Main Reason
（%）
Mainly due to the increase in selling expenses in line
with a prominent growth in the sales revenue of drug
Selling expenses 3,820,420,328.92 2,933,764,220.56 30.22
preparation products during the Period, as a result of
the Company’s increased marketing efforts for
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Joincare Pharmaceutical Group Industry Co., Ltd. 2021 Third Quarterly Report
Inhalation, gastroenterology and psychiatry products
during the Period.
Mainly due to an increase in R&D investment, as a
result of actively advancing the R&D progress of
Research and
project of innovative drug “Recombinant
Development(“R&D”) 959,056,925.14 695,722,058.28 37.85
SARS-CoV-2 Fusion Protein Vaccine” and the
expenses
expansion of the scientific research team during the
Period.
Mainly due to an increase in interest expenses as a
result of an increase in loans during the Period and
Finance expenses -43,302,001.92 -92,039,637.31 N/A lower interest income than the previous period as a
result of a decrease in deposit interest rate and no
interest settled for some unexpired deposits.
Mainly due to the the subsidiary Livzon Group’s
income from the disposal of the equity interest in
Investment income 69,260,277.50 140,803,971.20 -50.81
Jiangsu Ni Ke Medical Device Co., Ltd. (江苏尼科
医疗器械有限公司) in the previous period.
Mainly due to fluctuations in the market value of
Gains from changes in
-18,014,545.96 6,163,867.32 -392.26 investment in securities held by the subsidiary
fair value
Livzon Group.
Credit impairment Mainly due to the increase in the expected credit
-10,549,870.63 -3,974,299.64 165.45
loss loss of receivables.
Mainly due to the increase in the provision for
Asset impairment loss -35,798,711.62 -26,883,492.66 33.16
inventory depreciation.
Gains from disposal Mainly due to the gains from the external disposal of
18,357,859.21 -43,950.50 N/A
of assets Land use rights during the Period.
Change in
Cash Flow Statement 2021 Jan-Sep 2020 Jan-Sep proportion Main Reason
（%）
Mainly due to the subsidiary Livzon Group’s
Subtotal of cash payment of consideration for the Livzon’s
outflow from 1,739,746,862.49 618,514,702.58 181.28 acquisition of 40% equity interest in Tianjin
investing activities Tongrentang Group Co., Ltd. (天津同仁堂集团股
份有限公司).
Mainly due to the subsidiary Livzon Group’s
Net cash flow from payment of consideration for the acquisition of 40%
-1,509,334,937.50 -402,448,366.98 N/A
investing activities equity interest in Tianjin Tongrentang Group Co.,
Ltd. (天津同仁堂集团股份有限公司).
Effect of changes in Mainly due to the decrease of the subsidiary Livzon
foreign exchange rates Group’s exchange losses on cash held in foreign
-20,822,588.77 -36,878,975.00 N/A
on cash and cash currencies, as a result of the changes in exchange
equivalents rates.
Mainly due to the subsidiary Livzon Group’s
Net increase in cash payment of consideration for the acquisition of 40%
-1,692,759,711.75 -655,783,619.10 N/A equity interest in Tianjin Tongrentang Group Co.,
and cash equivalents
Ltd. (天津同仁堂集团股份有限公司).
II Shareholders' Information
(I) Table of the total number of ordinary shareholders, the number of preferred shareholders with
resumed voting rights and shareholdings of the top 10 shareholders
Unit: Shares
Total number of preferred shareholders
Total number of ordinary shareholders at
111,259 with resumed voting rights at the end of 0
the end of the Reporting Period
the Reporting Period (if any)
Shareholdings of the top 10 shareholders
Nature of Number of Percentage Number of
Name of shareholders Pledge, mark or lock-up
shareholders shares (%) shares held
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Joincare Pharmaceutical Group Industry Co., Ltd. 2021 Third Quarterly Report
with selling Share
restrictions Number
status
Domestic
Shenzhen Baiyeyuan Investment Co.,
non-state-owned 895,653,653 47.01 0 Pledge 95,679,725
Ltd.*(深圳市百业源投资有限公司)
legal person
Hong Kong Securities Clearing
Unknown 88,941,864 4.67 0 Unknown
Company Limited
Might Seasons Limited Overseas legal
71,859,334 3.77 0 Unknown
(鸿信行有限公司) person
108 portfolio of national social security
Unknown 12,461,721 0.65 0 Unknown
fund
16011 portfolio of basic endowment
Unknown 12,119,743 0.64 0 Unknown
insurance fund
Overseas legal
Abu Dhabi Investment Authority 12,018,189 0.63 0 Unknown
person
Hua Life Insurance Co., Ltd. -
Unknown 9,112,618 0.48 0 Unknown
proprietary investment account
Bosera Funds Management Co., Ltd. -
Unknown 8,732,946 0.46 0 Unknown
419 portfolio of social security funds
Domestic natural
He Zhong 7,650,024 0.40 0 Unknown
person
Agricultural Bank of China Limited -
China 500 Exchange Traded Open-End Unknown 6,295,902 0.33 0 Unknown
Index Securities Investment Fund (ETF)
Shareholdings of the top 10 shareholders without selling restrictions
Number of tradable shares held without selling Class and number of shares
Name of shareholders
restrictions Class Number
Shenzhen Baiyeyuan Investment Co., Ordinary shares
895,653,653 895,653,653
Ltd.*(深圳市百业源投资有限公司) denominated in Renminbi
Hong Kong Securities Clearing Ordinary shares
88,941,864 88,941,864
Company Limited denominated in Renminbi
Might Seasons Limited Ordinary shares
71,859,334 71,859,334
(鸿信行有限公司) denominated in Renminbi
108 portfolio of national social security Ordinary shares
12,461,721 12,461,721
fund denominated in Renminbi
16011 portfolio of basic endowment Ordinary shares
12,119,743 12,119,743
insurance fund denominated in Renminbi
Ordinary shares
Abu Dhabi Investment Authority 12,018,189 12,018,189
denominated in Renminbi
Hua Life Insurance Co., Ltd. - Ordinary shares
9,112,618 9,112,618
proprietary investment account denominated in Renminbi
Bosera Funds Management Co., Ltd. - Ordinary shares
8,732,946 8,732,946
419 portfolio of social security funds denominated in Renminbi
Ordinary shares
He Zhong 7,650,024 7,650,024
denominated in Renminbi
Agricultural Bank of China Limited -
Ordinary shares
China 500 Exchange Traded Open-End 6,295,902 6,295,902
denominated in Renminbi
Index Securities Investment Fund (ETF)
There was no connection or acting-in-concert relationship between Shenzhen Baiyeyuan
Description of connection or
Investment Co., Ltd., the controlling shareholder of the Company, and other shareholders;
acting-in-concert relationship of the
whether there is connection or acting-in-concert relationship among other shareholders is
above shareholders
unknown.
Description of the participation of the top
10 shareholders and the top 10
Shareholder He Zhong held 850,000 shares through an ordinary securities account and
shareholders without selling restriction in
6,800,024 shares through a customer's margin account, namely 7,650,024 shares in total.
securities margin trading and securities
financing (if any)
As at the end of the Reporting Period, the special repurchase account of the Company
Notes on the special repurchase account
(special securities repurchase account of Joincare Pharmaceutical Group Industry Co., Ltd.)
among the top 10 shareholders
owned 17,459,813 shares in total, accounting for 0.92% of total share capital of the Company.
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Joincare Pharmaceutical Group Industry Co., Ltd. 2021 Third Quarterly Report
III Other Information
Other key information on the operations of the Company during the Reporting Period to which investors
should be reminded to pay attention
√Applicable □N/A
1. Use of Proceeds
According to the Reply to the Approval of Share Allotment of Joincare Pharmaceutical Group
Industry Co., Ltd. issued by China Securities Regulatory Commission (Zheng Jian Xu Ke [2018] No.
1284), the Company allotted 365,105,066 new shares to the original shareholders. The total amount of
actual proceeds from the allotment was RMB 1,715,993,810.20; the deducted distribution expenses were
RMB 46,253,565.29; the net amount of proceeds was RMB 1,669,740,244.91. As at October 16, 2018,
the said proceeds were in place, which was validated by the Capital Verification Report of Joincare
Pharmaceutical Group Industry Co., Ltd. issued by Ruihua Certified Public Accountants (Rui Hua Yan
Zi [2018] No. 40060006).
As at September 30, 2021, the use of proceeds was as follows:
Unit: RMB 10,000
Total Total amount Use of proceeds as Balance of proceeds
Project name amount of of proceeds at September 30, as at September 30,
investment invested 2021 2021
Zhuhai Health Industry Base
98,066.84 76,974.02 3,386.29 73,587.73
Construction Project
Haibin Pharma Pingshan
Pharmaceutical Industrialization Base 125,471.35 90,000.00 63,350.74 26,649.26
Project
Total 223,538.19 166,974.02 66,737.03 100,236.99
Pursuant to the Resolution on the Temporary Replenishment of Working Capital with Idle Proceeds
considered and approved at the 37th Meeting of the 7th Session of the Board of the Company on 30
December 2020, it was agreed that the Company temporarily replenished the working capital with no
more than RMB 900 million of idle proceeds from January 1, 2021 to December 31, 2021, so as to
improve the use efficiency of proceeds and reduce financial expenses of the Company. Pursuant to the
Resolution on Cash Management with Idle Proceeds considered and approved, it was agreed that the
Company carried out cash management with no more than RMB 250 million of idle proceeds and
purchased principal-guaranteed bank cash management products with high security and good liquidity or
deposit products with high investment incomes, without prejudice to the implementation of projects
invested with proceeds and the use of proceeds. Duration of the said cash management was from January
1, 2021 to December 31, 2021; the funds may be used on revolving basis within the approved limit.
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Joincare Pharmaceutical Group Industry Co., Ltd. 2021 Third Quarterly Report
As at the date of disclosure of the Report, the balance for temporary replenishment of working
capital was RMB 860 million. The outstanding balance for cash management with idle proceeds was
RMB 130 million.
2. Matters About Equity Incentives
Pursuant to the Resolution relating to Cancellation of Certain Share Options under the 2018 Share
Option Incentive Plan considered and approved at the 52nd Meeting of the 7th Session of the Board and
the 38th Meeting of the 7th Session of the Supervisor Committee of the Company on August 10, 2021,
share options under the first grant and reserved grant that have been granted but not yet exercised due to
resignation of some Incentive Participants or other reasons were canceled. The number of Incentive
Participants for the first grant was adjusted from 233 to 211, while the number of unexercised share
options under the first grant was adjusted from 9,505,859 to 8,827,859, with 678,000 share options
canceled; the number of Incentive Participants for the reserved grant was adjusted from150 to 142, and
the number of unexercised share options under the reserved grant was adjusted from 3,370,472 to
3,210,472, with 160,000 share options canceled. See the Announcement on the Cancellation of Certain
Share Options of Joincare Pharmaceutical Group Industry Co., Ltd. Granted but Not Yet Exercised under
the 2018 Share Option Incentive Plan (Lin 2021-098) disclosed by the Company on August 11, 2021 for
details. The Company completed the above stock option cancellation on August 17, 2021; the
cancellation was validated and confirmed by Shanghai Branch of China Securities Depository and
Clearing Corporation Limited.
The Resolution on Fulfillment of Exercise Conditions for the Second Exercise Period of the
Reserved Grant under the 2018 Share Options Incentive Scheme was considered and approved at the
53rd Meeting of the 7th Session of the Board and the 40th Meeting of the 7th Session of the Supervisory
Committee of the Company on August 25, 2021. The independent directors of the Company voiced
independent opinions on the resolution and the supervisors voiced opinions on approval of the resolution.
The number of exercisable options during the second exercise period of the reserved grant under the
2018 Share Options Incentive Scheme of the Company was 2,935,000 and the exercise period was from
September 23, 2021 to September 22, 2022. The share options may be exercised on a voluntary basis.
See the Announcement on Fulfillment of Exercise Conditions for the Second Exercise Period of the
Reserved Grant under the 2018 Share Options Incentive Scheme of Joincare Pharmaceutical Group
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Joincare Pharmaceutical Group Industry Co., Ltd. 2021 Third Quarterly Report
Industry Co., Ltd. (Lin 2021-107) disclosed by the Company on August 26, 2021 for details.
As at the end of the Reporting Period, the number of options cumulatively exercised and
completing share transfer registration under the first grant and reserved grant of the 2018 Share Options
Incentive Scheme of the Company was 22,459,801. In 2021 Q3, the paid-in capital for exercise was
RMB 16,219,524.94, among which, the newly registered capital was RMB 1,899,922, and RMB
14,319,602.94 was recognized as capital reserve (additional paid in capital). The exercise this time did
not impose a heavy impact on the financial status and operating results of the Company. See the
Announcement on 2021 Q3 Voluntary Exercise Results of the 2018 Share Options Incentive Scheme of
Joincare Pharmaceutical Group Industry Co., Ltd. & Changes in Shares (Lin 2021-124) disclosed by the
Company on October 9, 2021 for details.
3. Matters About Share Repurchase
Pursuant to the Resolution on Share Repurchase Scheme by Way of Centralized Price Bidding and
other resolutions considered and approved at the 41st Meeting of the 7th Session of the Board and the
2021 First Extraordinary General Meeting of the Company on February 9, 2021 and February 25, 2021,
respectively, it was approved that the Company repurchased company shares by way of centralized price
bidding with its own funds or self-raised funds; the total amount of repurchase funds should be no less
than RMB 350 million (inclusive) and no more than RMB 700 million (inclusive); the repurchase price
should be no more than RMB 20/share (inclusive); the repurchase term should be no more than 12
months from the date when the repurchase scheme was approved by the General Meeting of the
Company. See the Announcement of Joincare Pharmaceutical Group Industry Co., Ltd. on the Share
Repurchase Scheme by Way of Centralized Price Bidding (Lin 2021-016) and the Announcement on the
Resolution of the 2021 First Extraordinary General Meeting of Joincare Pharmaceutical Group Industry
Co., Ltd. (Lin 2021-025) disclosed by the Company on February 10, 2021 and February 26, 2021 for
details. The Repurchase Report of Joincare Pharmaceutical Group Industry Co., Ltd. on Share
Repurchase by Way of Centralized Price Bidding (Lin 2021-027) was disclosed by the Company on
March 5, 2021.
As at September 14, 2021, the Company cumulatively repurchased 55,135,296 shares by way of
centralized price bidding, representing 2.81% of total share capital of the Company (1,959,977,436
shares); the maximum repurchase price was RMB 16.92/share; the minimum repurchase price was RMB
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Joincare Pharmaceutical Group Industry Co., Ltd. 2021 Third Quarterly Report
10.80/share; the average repurchase price was RMB 12.69/share; and the total amount paid was RMB
699,900,526.87 (including commissions). The Company completed the cancellation of repurchased
shares with the Shanghai Branch of China Securities Depository and Clearing Corporation Limited on
September 16, 2021. See the Announcement of Joincare Pharmaceutical Group Industry Co., Ltd. on the
Results of Share Repurchase & Changes in Shares (Lin 2021-122) disclosed by the Company on
September 16, 2021 for details.
4. Medium to Long-term Business Partner Share Ownership Scheme
Pursuant to the Resolution on the First Phase Ownership Scheme under Medium to Long-term
Business Partner Share Ownership Scheme of the Company and its Summary considered and approved
at the 48th Meeting of the 7th Session of the Board on June 10, 2021 and the 2021 Second Extraordinary
General Meeting on June 29, 2021, the Company compiled the First Phase Ownership Scheme under
Medium to Long-term Business Partner Share Ownership Scheme of Joincare Pharmaceutical Group
Industry Co., Ltd. (hereinafter referred to as this "Scheme") and its Summary to guide the
implementation of this Scheme. The participants of this Scheme include senior management of the
Company and core R&D, production, sales and management personnel who have made outstanding
contribution to the Company during the performance appraisal period or have a significant impact on the
future performance of the Company. The total number of participants in the phase shall not exceed 41,
and the final participants shall be determined according to the actual subscription. The source of funds
shall be the special fund for the Scheme as withdrawn by the Company, in amount totaling RMB
31,038,241.
According to the "Confirmation Letter on Securities Transfer and Registration" received from
China Securities Depository and Clearing Corporation Limited on August 5, 2021, 2,430,800 shares held
in the Company's special security repurchase account had been transferred to the Company's first phase
share ownership scheme account by way of non-trade transfer on August 4, 2021 at a price of RMB
12.75/share, representing 0.12% of the total share capital of the Company (1,959,507,007 shares). The
shares acquired by employees under the Scheme will be locked up for 36 months, from August 4, 2021
to August 3, 2024. See the Announcement of Joincare Pharmaceutical Group Industry Co., Ltd. on
Completion of the Non-Trade Transfer of Shares under the First Phase Ownership Scheme under
Medium to Long-term Business Partner Share Ownership Scheme (Lin 2021-091) disclosed by the
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Joincare Pharmaceutical Group Industry Co., Ltd. 2021 Third Quarterly Report
Company on August 6, 2021 for details.
The 1st meeting of participants of the First Phase Share Ownership Scheme under Medium to
Long-term Business Partner Share Ownership Scheme (hereinafter referred to as the "First Phase Share
Ownership Scheme") was held on August 10, 2021, at which, the management committee for the First
Phase Share Ownership Scheme was established and three members were elected. The management
committee was authorized to handle matters related to the Scheme. See the Announcement of Joincare
Pharmaceutical Group Industry Co., Ltd. on Resolution of the 1st Meeting of Participants of the First
Phase Share Ownership Scheme under Medium to Long-term Business Partner Share Ownership
Scheme (Lin 2021-092) disclosed by the Company on August 11, 2021 for details.
IV Quarterly Financial Statements
(I) Audit Opinion
□Applicable √N/A
(II) Financial statements
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Joincare Pharmaceutical Group Industry Co., Ltd. 2021 Third Quarterly Report
Consolidated Balance Sheet
At 30 September 2021
Prepared by: Joincare Pharmaceutical Group Industry Co., Ltd.
Unit：Yuan Currency：RMB Unaudited
Item 30 September 2021 31 December 2020
Current assets:
Monetary fund 10,550,971,638.68 12,289,098,613.19
Financial assets held for trading 189,909,950.41 28,328,748.72
Bills receivables 1,733,017,107.76 1,343,013,818.54
Accounts receivables 3,018,237,975.29 2,447,406,222.52
Receivables financing
Prepayments 522,396,275.49 209,926,040.57
Other receivables 213,796,272.84 177,240,162.81
Of which: Interest receivable
Dividends receivable
Inventories 1,855,536,544.45 1,831,509,012.27
Contract assets
Held-for-sale assets
Non-current assets due within one year 8,634,022.41 19,934,376.07
Other current assets 69,332,467.13 58,098,049.20
Total current assets 18,161,832,254.46 18,404,555,043.89
Non-current assets:
Debt investments
Other debt investments
Long-term receivables 584,284.36 584,284.36
Long-term equity investments 1,418,022,709.96 628,279,599.73
Other equity instrument investments 1,405,665,198.19 1,576,391,663.13
Other non-current financial assets
Investment properties 6,191,475.43 6,191,475.43
Fixed assets 4,531,137,755.33 4,380,285,156.93
Construction in progress 811,363,845.40 648,478,042.42
Productive biological assets
Oil and gas assets
Right-of-use assets 15,403,116.86 18,030,132.69
Intangible assets 468,512,047.53 468,087,916.05
Development expenditure 467,080,044.56 399,119,603.78
Goodwill 614,468,698.73 614,468,698.73
Long-term deferred expenses 196,581,636.02 170,049,601.98
Deferred income tax assets 449,029,594.13 468,898,469.23
Other non-current assets 608,764,830.86 373,557,910.72
Total non-current assets 10,992,805,237.36 9,752,422,555.18
Total assets 29,154,637,491.82 28,156,977,599.07
Current liabilities:
Short-term loans 1,854,753,015.63 2,110,942,804.06
Financial liabilities held for trading 39,018.28 212.07
Bills payables 1,411,712,620.87 1,087,759,353.31
Accounts payables 868,649,376.95 832,632,206.53
Receipts in advance
Contract liabilities 96,384,826.19 133,422,354.03
Employee benefits payables 280,937,529.46 476,521,798.51
Tax and surcharge payables 276,034,461.08 298,342,182.44
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Joincare Pharmaceutical Group Industry Co., Ltd. 2021 Third Quarterly Report
Other payables 3,272,120,955.95 2,847,688,065.59
Of which: Interest payable
Dividends payable 40,826,174.22 8,418,590.50
Held-for-sale liabilities
Non-current liabilities due within one year 9,821,001.35 8,539,077.05
Other current liabilities 3,343,666.92 6,267,034.79
Total current liabilities 8,073,796,472.68 7,802,115,088.38
Non-current liabilities:
Long-term loans 688,100,000.00 360,324,027.48
Notes payables
Leasing liabilities 6,042,261.51 9,817,780.04
Long-term payables
Long-term employee benefits payables
Provisions
Deferred gains 454,618,399.79 467,562,770.49
Deferred income tax liabilities 188,101,595.20 202,259,855.68
Other non-current liabilities 78,000,000.00 78,000,000.00
Total non-current liabilities 1,414,862,256.50 1,117,964,433.69
Total liabilities 9,488,658,729.18 8,920,079,522.07
Owners’ (or shareholders’) equity
Paid-in capital (or share capital) 1,905,357,843.00 1,952,780,764.00
Other equity instruments
Of which: Preferred shares
Perpetual bonds
Capital reserve 2,061,174,342.81 2,533,288,674.28
Less: Treasury shares 222,644,454.50 253,637,154.50
Other consolidated earnings 25,758,615.13 116,300,559.28
Special reserve
Surplus reserve 515,941,465.20 515,941,465.19
Undistributed profits 7,028,492,804.87 6,231,451,582.26
Total owners’ equity (or shareholders’ equity)
11,314,080,616.51 11,096,125,890.51
attributable to equity holders of the parent company
Minority interests 8,351,898,146.13 8,140,772,186.49
Total owners’ (or shareholders’) equity 19,665,978,762.64 19,236,898,077.00
Total liabilities and owners’ (or
29,154,637,491.82 28,156,977,599.07
shareholders’) equity
Person-in-charge of the Person-in-charge of the Person-in-charge of the
Company: Zhu Baoguo Company’s accounting work: accounting department:
Qiu Qingfeng Qiu Qingfeng
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Joincare Pharmaceutical Group Industry Co., Ltd. 2021 Third Quarterly Report
Consolidated Income Statement
January to September, 2021
Prepared by: Joincare Pharmaceutical Group Industry Co., Ltd.
Unit：Yuan Currency：RMB Unaudited
First three quarters of 2021 First three quarters of 2020
Item
（January to September） （January to September）
I. Total revenues 11,933,648,988.85 10,103,029,326.93
Of which: operating revenues 11,933,648,988.85 10,103,029,326.93
II. Total operating costs 9,728,395,382.69 7,866,803,182.98
Of which: Operating costs 4,202,628,262.24 3,580,932,722.96
Tax and surcharge 138,588,360.34 117,469,489.45
Selling expenses 3,820,420,328.92 2,933,764,220.56
Administrative expenses 651,003,507.97 630,954,329.04
R&D expenses 959,056,925.14 695,722,058.28
Finance expenses -43,302,001.92 -92,039,637.31
Of which: Interest expenses 73,581,421.29 22,518,905.86
Interest income 111,786,015.39 139,660,448.43
Add: Other income 177,015,688.29 202,763,992.92
Investment income (“-” represents
69,260,277.50 140,803,971.20
losses)
Of which: Income from investments in
11,789,322.81 7,593,871.51
associates and joint ventures
Gains from terminated recognition of
financial assets measured at amortized cost
(“-” represents losses)
Gains from hedging net exposure (“-”
represents losses)
Gains from changes in fair value (“-”
-18,014,545.96 6,163,867.32
represents losses)
Credit impairment loss (“-” represents
-10,549,870.63 -3,974,299.64
losses)
Asset impairment loss (“-” represents
-35,798,711.62 -26,883,492.66
losses)
Gains from disposal of assets (“-”
18,357,859.21 -43,950.50
represents losses)
III. Operating profit (“-” represents losses) 2,405,524,302.95 2,555,056,232.59
Add: non-operating income 5,662,349.74 5,112,433.42
Less: non-operating expenditure 19,120,502.95 25,809,994.34
IV. Total profit (“-” represents net losses) 2,392,066,149.74 2,534,358,671.67
Less: income tax expenses 316,486,740.44 354,387,233.65
V. Net profit (“-” represents net losses) 2,075,579,409.30 2,179,971,438.02
(I) Classified by continuing operations:
1.Net profit from continuing
2,075,579,409.30 2,179,971,438.02
operations (“-” represents net losses)
2.Net profit from discontinued
operations (“-” represents net losses)
(II) Classified by attribution to ownership:
1. Net profit attributable to
shareholders of the parent company (“-” 1,008,675,184.73 927,470,889.00
represents net losses)
2. Profit and loss attributable to
minority interests (“-” represents net 1,066,904,224.57 1,252,500,549.02
losses)
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Joincare Pharmaceutical Group Industry Co., Ltd. 2021 Third Quarterly Report
Ⅵ. Other comprehensive net income after
-177,089,388.22 -31,992,939.62
taxation
（I）Other comprehensive net income
after taxation attributable to shareholders -90,541,944.15 -28,845,456.03
of the parent company
1. Other comprehensive income not to
-55,197,967.72 -9,381,197.73
be reclassified into profit or loss
（1）Changes in re-measurement of
defined benefit plans
（2）Other comprehensive income not
to be reclassified into profit or loss under -3,992,639.64
equity method
（3）Changes in fair value of other
-51,205,328.08 -9,381,197.73
equity instruments
（4）Changes in fair value of
enterprise’s own credit risk
2. Other comprehensive income to be
-35,343,976.43 -19,464,258.30
reclassified as profit or loss
（1）Other comprehensive income to
be reclassified into profit or loss under
equity method
（2）Changes in fair value of other
debt investments
（3）Financial assets reclassified into
other comprehensive income
（4）Credit impairment provision for
other debt investments
（5）Reserve for cash flow hedging
（6）Translation difference of financial
statements denominated in foreign -35,343,976.43 -19,464,258.30
currency
（7）Others
（II）Other comprehensive net income
after taxation attributable to minority -86,547,444.07 -3,147,483.59
interests
Ⅶ. Total comprehensive income 1,898,490,021.08 2,147,978,498.40
（I）Total comprehensive income
attributable to shareholders of the parent 918,133,240.58 898,625,432.97
company
（II）Total comprehensive income
980,356,780.50 1,249,353,065.43
attributable to minority interests
Ⅷ. Earnings per share:
（I）Basic earnings per share 0.5154 0.4788
（II）Diluted earnings per share 0.5142 0.4763
Person-in-charge of the Person-in-charge of the Person-in-charge of the
Company: Zhu Baoguo Company’s accounting work: accounting department:
Qiu Qingfeng Qiu Qingfeng
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Joincare Pharmaceutical Group Industry Co., Ltd. 2021 Third Quarterly Report
Consolidated Cash Flow Statement
January to September, 2021
Prepared by: Joincare Pharmaceutical Group Industry Co., Ltd.
Unit：Yuan Currency：RMB Unaudited
Item First three quarters of 2021 First three quarters of 2020
（January to September） （January to September）
I、Cash flow from operating activities:
Cash received from sale of goods and services
11,899,181,183.24 9,671,345,406.05
rendered
Refund of taxes and levies 117,304,422.29 99,308,914.72
Cash received relating to other operating
357,722,261.48 510,886,420.13
activities
Subtotal of cash inflow from operating
12,374,207,867.01 10,281,540,740.90
activities
Cash paid for purchase of goods and services
3,161,363,236.72 2,588,418,331.36
rendered
Cash paid to and on behalf of employees 1,546,737,299.97 1,126,745,210.15
Payments for various taxes and levies 1,263,867,720.70 1,008,790,561.58
Cash paid relating to other operating activities 4,781,069,905.04 3,573,070,935.44
Subtotal of cash outflow from operating
10,753,038,162.43 8,297,025,038.53
activities
Net cash flow from operating activities 1,621,169,704.58 1,984,515,702.37
II、Cash flow from investing activities:
Cash received from disposal of investments 110,302,936.39 157,344,429.75
Cash received on investment income 93,348,249.99 30,382,854.27
Net cash received from disposal of fixed assets,
8,684,509.74 1,630,636.20
intangible assets and other long-term assets
Net cash received from disposal of subsidiaries
3,311,220.53 5,339,063.95
and other operating units
Cash received relating to other investing
14,765,008.34 21,369,351.43
activities
Sub-total of cash inflow from investing activities 230,411,924.99 216,066,335.60
Cash payments for acquisition of fixed assets,
960,679,392.16 516,342,226.37
intangible assets and other long-term assets
Cash payments for investments 774,000,000.00 94,514,395.92
Net cash paid for acquisition of subsidiaries and
other operating units
Cash paid relating to other investing activities 5,067,470.33 7,658,080.29
Sub-total of cash outflow from investing
1,739,746,862.49 618,514,702.58
activities
Net cash flow from investing activities -1,509,334,937.50 -402,448,366.98
III. Cash flow from financing activities:
Cash received from absorption of investments 521,836,124.79 397,884,596.14
Of which: Cash received by subsidiaries from
324,225,000.00 8,000,000.00
investments of minority interests
Cash received from borrowings 2,354,753,015.63 1,853,579,914.03
Cash received relating to other financing
34,430,100.74 5,582,663.82
activities
Sub-total of cash inflow from financing activities 2,911,019,241.16 2,257,047,173.99
Cash paid on repayment of debts 2,282,684,146.53 2,929,711,030.60
Cash paid for distribution of dividends and profit
1,211,553,686.47 1,031,200,679.92
or interest payments
Of which: Dividends and profits paid to minority 846,741,767.14 673,935,179.07
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Joincare Pharmaceutical Group Industry Co., Ltd. 2021 Third Quarterly Report
interests by subsidiaries
Cash paid relating to other financing activities 1,200,553,298.22 497,107,442.96
Sub-total of cash outflow from financing
4,694,791,131.22 4,458,019,153.48
activities
Net cash flow from financing activities -1,783,771,890.06 -2,200,971,979.49
IV. Effect of changes in foreign exchange rates
-20,822,588.77 -36,878,975.00
on cash and cash equivalents
V. Net increase in cash and cash equivalents -1,692,759,711.75 -655,783,619.10
Add: Balance of cash and cash equivalents at
12,122,781,311.49 10,940,305,225.81
the beginning of the period
VI. Cash and cash equivalents at the end of the
10,430,021,599.74 10,284,521,606.71
period
Person-in-charge of the Person-in-charge of the Person-in-charge of the
Company: Zhu Baoguo Company’s accounting work: accounting department:
Qiu Qingfeng Qiu Qingfeng
17 / 18
Joincare Pharmaceutical Group Industry Co., Ltd. 2021 Third Quarterly Report
(III) Information on adjustment to relevant items in the financial statements at the beginning of the
year of first implementation in respect of the new leasing standards adopted for the first time starting
from 2021
□Applicable √N/A
Notice is hereby given.
Joincare Pharmaceutical Group Industry Co., Ltd.
October 26, 2021
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