China National Accord Medicines Corporation Ltd.
Semi-Annual Financial Report 2018
August 2018
Section X Financial Reporting
I.Report of the Auditors
Consolidated financial statements for the six months ended 30 June 2018 haven’t been audited.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED BALANCE SHEET
As at 30 June 2018
(Expressed in Renminbi Yuan)
ASSETS Note V 30 June 2018 31 December 2017
Current assets
Cash and bank balances 1 3943595560.58 4191655438.51
Notes receivable 2 1021697370.21 1504194764.08
Accounts receivable 3 9441542367.19 7589412679.88
Advances to suppliers 4 456680224.23 516778117.47
Interest receivable 5 47507.80 61441.11
Other receivables 6 698672023.18 657871058.54
Inventories 7 4245354625.22 3781858238.12
Other current assets 8 91769652.56 78947644.62
Total current assets 19899359330.97 18320779382.33
Non-current assets
Financial assets available-for-sale 9 13685760.00 13685760.00
Long-term equity investments 10 1756735242.44 1650619373.09
Investment properties 11 149409723.79 153678339.11
Fixed assets 12 550102564.29 551710434.02
Construction in progress 13 30805874.11 22947258.99
Intangible assets 14 314816778.00 325751430.88
Goodwill 15 830729152.75 830729152.75
Long-term prepaid expenses 16 261074227.40 252247050.79
Deferred tax assets 17 76070138.33 79472883.06
Other non-current assets 18 130226885.24 142022462.75
Total non-current assets 4113656346.35 4022864145.44
Total assets 24013015677.32 22343643527.77
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED BALANCE SHEET (Continued)
As at 30 June 2018
(Expressed in Renminbi Yuan)
LIABILITIES Note V 30 June 2018 31 December 2017
Current liabilities
Short-term borrowings 19 2051139651.67 1561354521.64
Notes payable 20 2373628140.86 2732437828.42
Accounts payable 21 7230024480.35 6144221000.10
Advances from customers 22 178425087.30 216938239.32
Employee benefits payable 23 150685442.26 215656526.54
Tax payable 24 223351730.76 223752900.24
Interest payable 25 10378213.91 7311819.65
Dividends payable 26 8889443.11 11889443.11
Other payables 27 1024176704.11 1011128397.26
Non-current liabilities due within one year 28 5651227.56 5434770.70
Other current liabilities 29 114239.45 112817.65
Total current liabilities 13256464361.34 12130238264.63
Non-current liabilities
Long-term borrowings 30 31600000.00 31600000.00
Long-term payables 31 6604575.84 9332537.14
Payable for specific projects 33 800000.00 800000.00
Deferred income 34 121995380.11 125082372.53
Long-term employee benefits payable 32 1636000.00 1777000.00
Deferred tax liabilities 18 69864262.88 71883253.02
Other non-current liabilities 35 45427343.31 45427343.31
Total non-current liabilities 277927562.14 285902506.00
Total liabilities 13534391923.48 12416140770.63
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED BALANCE SHEET (Continued)
As at 30 June 2018
(Expressed in Renminbi Yuan)
SHAREHOLDERS’ EQUITY Note V 30 June 2018 31 December 2017
Shareholders’ equity
Share capital 36 428126983.00 428126983.00
Capital surplus 37 3181826407.20 3181429064.99
Other equity instruments - -
Surplus reserve 38 214063491.50 214063491.50
Retained earnings 39 6086241746.42 5572952806.39
Shareholders’ equity attributable
to shareholders of the parent 9910258628.12 9396572345.88
Non-controlling interests 568365125.72 530930411.26
Total shareholders’ equity 10478623753.84 9927502757.14
Total liabilities and shareholders’
equity 24013015677.32 22343643527.77
The accompanying notes form an integral part of these financial statements
The financial statements have been signed by:
Legal representative: Financial controller: Head of Accounting Department:
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED INCOME STATEMENT
For the six months ended 30 June 2018
(Expressed in Renminbi Yuan)
Note V
For the six months ended
30 June 2018
For the six months ended
30 June 2017
Operating revenue 40 20779166699.67 20524807669.57
Less: Operating costs 40 18367643723.84 18364034450.83
Tax and surcharge 41 56620527.25 63185620.86
Selling expenses 42 1273588756.07 1110446938.17
Administrative expenses 43 351820063.78 340636051.11
Finance costs 44 57541544.32 44498778.76
Impairment loss 45 (517852.98) 96757.16
Add: Investment income 46 162693771.35 146726039.90
Incl: Investment income from
associates
162662271.35 146676039.90
Gain on disposal of assets 47 4281164.61 485085.66
Other income 48 10589212.57 7958493.67
Operating profits 850034085.92 757078691.91
Add: Non-operating income 49 5498951.11 6056142.83
Incl: Gain from disposal of non-current
assets
- -
Less: Non-operating expenses 50 1797292.80 3559988.09
Incl: Loss from disposal of non-current
assets
- -
Total profit 853735744.23 759574846.65
Less: Income taxes 51 164486734.32 160041107.63
Net profit 689249009.91 599533739.02
Incl: Net profit of acquiree before business
combinations involving enterprises under
common control - -
Net Profit from continuing operations 689249009.91 599533739.02
Net profit attributable to shareholders of the parent 641727034.93 556125318.19
Profit or loss of non-controlling interests 47521974.98 43408420.83
Total comprehensive income 689249009.91 599533739.02
Incl: Total comprehensive income for the year
attributable to owners of the parent
641727034.93 556125318.19
Total comprehensive income for the year
attributable to non-controlling interests 47521974.98 43408420.83
Earnings per share
Basic earnings per share 1.50 1.30
Diluted earnings per share 1.50 1.30
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
For the six months ended 30 June 2018
(Expressed in Renminbi Yuan)
2018 Shareholders’ equity attributable to shareholders of the parent Non-controlling
interests
Total equity
Share capital
Other equity
instrument Capital surplus Surplus reserve Retained earnings Subtotal
Closing balance of the preceding year 428126983.00 - 3181429064.99 214063491.50 5572952806.39 9396572345.88 530930411.26 9927502757.14
Business combination involving
enterprises under common control - - - - - - - -
Opening balance of the current year 428126983.00 - 3181429064.99 214063491.50 5572952806.39 9396572345.88 530930411.26 9927502757.14
Movements in the current year - - 397342.21 - 513288940.03 513686282.24 37434714.46 551120996.70
(1) Total comprehensive income - - - - 641727034.93 641727034.93 47521974.98 689249009.91
(2) Capital paid and reduced by
owners - - 397342.21 - - 397342.21 26721512.76 27118854.97
1.Capital injection by owners - - - - - - 24381200.00 24381200.00
2.Business combination involving
enterprises under common control - - - - - - - -
3.Others - - 397342.21 - - 397342.21 2340312.76 2737654.97
(3) Profit distribution - - - - (128438094.90) (128438094.90) (36808773.28) (165246868.18)
1.Distribution to equity owners - - - - (128438094.90) (128438094.90) (36808773.28) (165246868.18)
2.Others - - - - - - - -
Closing balance of the current year 428126983.00 - 3181826407.20 214063491.50 6086241746.42 9910258628.12 568365125.72 10478623753.84
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
For the year ended 31 December 2017
(Expressed in Renminbi Yuan)
2017
Shareholders’ equity attributable to shareholders of the parent
Non-controlling interests Total equity
Share capital
Other equity
instruments Capital surplus Surplus reserve Retained earnings Subtotal
Closing balance of the preceding year 362631943.00 65495040.00 3151518024.92 181315971.50 4689189642.51 8450150621.93 463832912.18 8913983534.11
Business combination involving enterprises
under common control - - 1200000.00 - 1076241.59 2276241.59 1517494.39 3793735.98
Opening balance of the current year 362631943.00 65495040.00 3152718024.92 181315971.50 4690265884.10 8452426863.52 465350406.57 8917777270.09
Movements in the current year 65495040.00 (65495040.00) 28711040.07 32747520.00 882686922.29 944145482.36 65580004.69 1009725487.05
(1) Total comprehensive income - - - - 1057791930.67 1057791930.67 98946915.42 1156738846.09
(2) Capital paid and reduced by owners 65495040.00 (65495040.00) 28711040.07 - (1075583.99) 27635456.08 20214810.63 47850266.71
1.Capital injection by owners 5114297.00 (5114297.00) - - - - 14873000.00 14873000.00
2.Significant reorganization 60380743.00 (60380743.00) (3430029.00) - - (3430029.00) - (3430029.00)
3.Business combination involving
enterprises under common control - - (1200000.00) - (1075583.99) (2275583.99) (1517055.99) (3792639.98)
4.Business combination not involving
enterprises under common control - - - - - - 6858866.62 6858866.62
5.Others - - 33341069.07 - - 33341069.07 - 33341069.07
(3) Profit distribution - - - 32747520.00 (174029424.39) (141281904.39) (53581721.36) (194863625.75)
1. Withdrawal of statutory surplus
reserve - - - 32747520.00 (32747520.00) - - -
2.Distribution to equity owners - - - - (141281904.39) (141281904.39) (53581721.36) (194863625.75)
Closing balance of the current year 428126983.00 - 3181429064.99 214063491.50 5572952806.39 9396572345.88 530930411.26 9927502757.14
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 30 June 2018
(Expressed in Renminbi Yuan)
Note V
For the six months ended
30 June 2018
For the six months ended
30 June 2017
1.CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from sales of good or rendering of
services 22055082715.59 21970884180.09
Tax refunds 1593193.21 5740675.89
Cash receipts related to other operating activities 52 311984787.60 98022828.67
Sub-total of cash inflows from operating activities 22368660696.40 22074647684.65
Cash paid for goods and services 19799894631.80 19734413196.28
Cash paid to and on behalf of employees 956322585.28 864562267.50
Cash paid for all types of taxes 548616793.36 601078629.47
Cash payments related to other operating
activities 52 838468976.76 646256160.00
Sub-total of cash outflows from operating
activities 22143302987.20 21846310253.25
Net cash flows from operating activities 53 225357709.20 228337431.40
2.CASH FLOWS FROM INVESTING ACTIVITIES
Cash received from recovery of investments - -
Cash received from returns on investments 78825446.85 58647191.65
Net cash received from disposal of fixed assets
intangible assets and other long-term assets 6064099.87 171059.95
Net cash received from disposal of subsidiaries
and other business units - -
Cash receipts related to other investing activities
52 48766145.15 87027340.19
Sub-total of cash inflows from investing activities 133655691.87 145845591.79
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED CASH FLOW STATEMENT (Continued)
For the six months ended 30 June 2018
(Expressed in Renminbi Yuan)
Note V
For the six months
ended 30 June
2018
For the six months
ended 30 June
2017
2.CASH FLOWS FROM INVESTING ACTIVITIES(Continued)
Cash paid for acquisition of fixed assets
intangible assets and other long-term assets
97867494.61 82123615.39
Cash paid for acquisition of investments 10000000.00 71120000.00
Net cash paid for acquisition of subsidiaries and
other business units
52 - 14706789.56
Net cash paid from disposal of subsidiaries and other
business units
52 - -
Cash payments related to other investing activities 52 43999800.00 70175078.90
Sub-total of cash outflows from investing activities 151867294.61 238125483.85
Net cash flows from investing activities (18211602.74) (92279892.06)
3.CASH FLOWS FROM FINANCING ACTIVITIES
Cash proceeds from investments by others 11781200.00 9075000.00
Incl: Cash received from capital contributions from
non-controlling shareholders of
subsidiaries
11781200.00 9075000.00
Cash received from borrowings 40775440.04 233533871.46
Cash receipts related to other financing activities 53 83745164.60 90932396.75
Sub-total of cash inflows from financing activities 136301804.64 333541268.21
Cash repayments for debts 79670200.30 201503745.30
Cash payments for distribution of dividends or profit
and interest expenses
226149759.15 215828281.10
Incl: Profit and dividends paid to non-controlling
shareholders of subsidiaries
40392215.98 30408202.08
Cash payments related to other financing activities 53 118725719.23 178991574.67
Sub-total of cash outflows from financing activities 424545678.68 596323601.07
Net cash flows from financing activities (288243874.04) (262782332.86)
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
CONSOLIDATED CASH FLOW STATEMENT (Continued)
For the six months ended 30 June 2018
(Expressed in Renminbi Yuan)
Note V
For the six months
ended 30 June 2018
For the six months
ended 30 June 2017
4.EFFECT OF FOREIGN EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS
314863.47 -
5.NET INCREASE IN CASH AND CASH EQUIVALENTS 53 (80782904.11) (126724793.52)
Add: Cash and cash equivalents at beginning of the
year
3673498691.48 3150915425.49
6.CASH AND CASH EQUIVALENTS AT END OF YEAR 53 3592715787.37 3024190631.97
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY BALANCE SHEET
As at 30 June 2018
(Expressed in Renminbi Yuan)
ASSETS Note XIV 30 June 2018 31 December 2017
Current assets
Cash and bank balances 1521055158.90 1776696342.87
Notes receivable 63423575.48 64799618.07
Accounts receivable 1 553496096.71 480467760.92
Advances to suppliers 1230913.18 1138312.26
Interest receivable 1861132.76 1844294.10
Dividends receivable - -
Other receivables 2 1629938110.28 1516037945.71
Inventories 193931164.48 172022676.96
Other current assets 39482.38 788964.90
Total current assets 3964975634.17 4013795915.79
Non-current assets
Long-term equity investments 3 7297085972.70 7180306084.56
Investment properties 2359843.19 2763831.92
Fixed assets 17398259.52 13831103.54
Construction in progress - -
Intangible assets 1501299.51 1287775.78
Long-term deferred expenses 5003173.65 5543217.86
Deferred tax assets 3293246.89 2764724.75
Other non-current assets 67397698.11 71808611.00
Total non-current assets 7394039493.57 7278305349.41
Total assets 11359015127.74 11292101265.20
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY BALANCE SHEET (Continued)
As at 30 June 2018
(Expressed in Renminbi Yuan)
LIABILITIES 30 June 2018 31 December 2017
Current liabilities
Short-term borrowings 694424900.71 707000000.00
Notes payable 227485804.97 239563961.30
Accounts payable 462200812.82 434886685.35
Advances from customers 3941540.07 1912503.90
Employee benefits payable 24654592.33 33592851.93
Tax payables 41130974.27 42386907.00
Interest payable 547681.64 669533.78
Other payables 1056082762.67 1415053655.18
Non-current liabilities due within one
year
- -
Other current liabilities 114239.45 112817.65
Total current liabilities 2510583308.93 2875178916.09
Non-current liabilities
Long-term borrowings 31600000.00 31600000.00
Payables for specific projects 800000.00 800000.00
Deferred income 1824963.62 2054250.00
Long-term employee benefits payable - -
Deferred tax liabilities 3773319.00 3773319.00
Total non-current liabilities 37998282.62 38227569.00
Total liabilities 2548581591.55 2913406485.09
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY BALANCE SHEET (Continued)
As at 30 June 2018
(Expressed in Renminbi Yuan)
SHAREHOLDERS’ EQUITY 30 June 2018 31 December 2017
Shareholders’ equity
Share capital 428126983.00 428126983.00
Capital surplus 4407488826.34 4407091484.13
Surplus reserves 214063491.50 214063491.50
Other equity instruments - -
Retained earnings 3760754235.35 3329412821.48
Total shareholders’ equity 8810433536.19 8378694780.11
Total liabilities and shareholders’ equity 11359015127.74 11292101265.20
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY INCOME STATEMENT
For the six months ended 30 June 2018
(Expressed in Renminbi Yuan)
Note XIV
For the six months
ended 30 June 2018
For the six months
ended 30 June 2017
Operating revenue 4 1687621355.83 1658600818.96
Less: Operating costs 4 1614717473.91 1600647589.46
Tax and surcharge 2016368.93 5062317.16
Selling expenses 25894795.45 22844614.29
Administrative expenses 33679106.75 24917988.21
Finance costs (19369880.08) (37042967.55)
Impairment loss 623542.31 (32604.71)
Add: Investment income 5 534840744.46 508360741.85
Incl: Investment income from associates 173326290.14 155838740.45
Gain on disposal of assets - 1087.38
Other income 1299345.14 641300.00
Operating profits 566200038.16 551207011.33
Add: Non-operating income 33.08 184531.96
Incl: Gain from disposal of
non-current assets - -
Less: Non-operating expenses 127688.63 1011760.15
Incl: Loss from disposal of
non-current assets - -
Total profit 566072382.61 550379783.14
Less: Income taxes 6292873.84 21856015.57
Net profit 559779508.77 528523767.57
Net Profit from continuing operations 559779508.77 528523767.57
Total comprehensive income 559779508.77 528523767.57
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
For the six months ended 30 June 2018
(Expressed in Renminbi Yuan)
2018 Share capital
Other equity
instruments
Capital surplus Surplus reserve Retained earnings Total equity
Closing balance of the preceding year 428126983.00 - 4407091484.13 214063491.50 3329412821.48 8378694780.11
Others - - - - - -
Opening balance of the current year 428126983.00 - 4407091484.13 214063491.50 3329412821.48 8378694780.11
Movements in the current year - - 397342.21 - 431341413.87 431738756.08
(1) Total comprehensive income - - - - 559779508.77 559779508.77
(2) Capital paid and reduced by owners - - 397342.21 - - 397342.21
1. Capital injection by owners - - - - - -
2. Significant reorganization - - - - - -
3. Others - - 397342.21 - - 397342.21
(3) Profit distribution - - - - (128438094.90) (128438094.90)
1. Distribution to owners - - - - (128438094.90) (128438094.90)
Closing balance of the current year 428126983.00 - 4407488826.34 214063491.50 3760754235.35 8810433536.19
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (Continued)
For the Year ended 31 December 2017
(Expressed in Renminbi Yuan)
2017 Share capital
Other equity
instruments
Capital surplus Surplus reserve Retained earnings Total equity
Closing balance of the preceding year 362631943.00 65495040.00 4381845619.03 181315971.50 2829823727.08 7821112300.61
Others - - - - - -
Opening balance of the current year 362631943.00 65495040.00 4381845619.03 181315971.50 2829823727.08 7821112300.61
Movements in the current year 65495040.00 (65495040.00) 25245865.10 32747520.00 499589094.40 557582479.50
(1) Total comprehensive income - - - - 673618518.79 673618518.79
(2) Capital paid and reduced by owners 65495040.00 (65495040.00) 25245865.10 - - 25245865.10
1. Capital injection by owners 5114297.00 (5114297.00) - - - -
2. Significant reorganization - - - - - -
3. Others 60380743.00 (60380743.00) 25245865.10 - - 25245865.10
(3) Profit distribution - - - 32747520.00 (174029424.39) (141281904.39)
1. Transferred from surplus reserve - - - 32747520.00 (32747520.00) -
2. Distribution to owners - - - ( - (141281904.39) (141281904.39)
Closing balance of the current year 428126983.00 - 4407091484.13 214063491.50 3329412821.48 8378694780.11
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY CASH FLOW STATEMENT
For the six months ended 30 June 2018
(Expressed in Renminbi Yuan)
For the six months
ended 30 June 2018
For the six months
ended 30 June 2017
1.CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from sales of good or rendering
of services 1787065555.60 1691499935.88
Cash receipts related to other operating
activities 43943301.92 16864750.56
Sub-total of cash inflows from operating
activities 1831008857.52 1708364686.44
Cash paid for goods and services 1655107446.18 1590317986.60
Cash paid to and on behalf of employees 44855325.83 40727189.33
Cash paid for all types of taxes 18706775.51 28888466.38
Cash payments related to other operating
activities 36183479.25 17091927.42
Sub-total of cash outflows from operating
activities 1754853026.77 1677025569.73
Net cash flows from operating activities 76155830.75 31339116.71
2. CASH FLOWS FROM INVESTING ACTIVITIES
Cash received from returns of investments 187137437.23 202011829.53
Cash receipts related to other investing activities 857940000.00 1979269200.00
Sub-total of cash inflows from investing activities 1045077437.23 2181281029.53
Cash paid for acquisition of fixed assets
intangible assets and other long-term assets 6044462.78 3921020.07
Cash paid for investment 10000000.00 1019000000.00
Net cash paid for purchasing subsidiaries and
other business - 16840000.00
Cash payments related to other investing
activities 1051642980.00 1424861720.90
Sub-total of cash outflows from investing
activities 1067687442.78 2464622740.97
Net cash flows from investing activities (22610005.55) (283341711.44)
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
COMPANY CASH FLOW STATEMENT (Continued)
For the six months ended 30 June 2018
(Expressed in Renminbi Yuan)
18
For the six months
ended 30 June 2018
For the six months
ended 30 June 2017
3. CASH FLOWS FROM FINANCING ACTIVITIES
Cash received from borrowings 10000000.00 41600000.00
Cash receipts related to other financing
activities
8065884436.80 7272687714.06
Sub-total of cash inflows from financing
activities
8075884436.80 7314287714.06
Cash repayments for debts 10000000.00 41600000.00
Cash payments for distribution of dividends or
profit and interest expenses
144898008.66 143087008.08
Cash payments related to other financing
activities
8230488300.78 7131182482.56
Sub-total cash outflows from financing activities 8385386309.44 7315869490.64
Net cash flows from financing activities (309501872.64) (1581776.58)
4.EFFECT OF FOREIGN EXCHANGE RATE
CHANGES ON CASH AND CASH
EQUIVALENTS
314863.47 -
5. NET INCREASE IN CASH AND CASH
EQUIVALENTS
(255641183.97) (253584371.31)
Add: Cash and cash equivalents at beginning of
the year
1776696342.87 1342041409.86
6. CASH AND CASH EQUIVALENTS
AT END OF YEAR
1521055158.90 1088457038.55
The accompanying notes form an integral part of these financial statements
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
I Profile of the Company
(1) Historical development and basic information
As approved by the People’s Government of Shenzhen (SFBF (1993) No.356) China National Accord
Medicines Corporation Ltd. (hereinafter referred to as the “the Company”) formerly known as Shenzhen
Health Mineral Water Corp. Ltd. was registered as a joint stock liability limited company on 1 February
1993 through stock transformation. In March 1993 with the approval from the Shenzhen Branch of the
People’s Bank of China the Company issued 30 million A shares (including 16.5 million public shares
3.5 million employee shares and 10 million corporation shares) and 20 million B shares. After this
issuance the Company’s share capital was RMB105 million. Through convert capital surplus into share
capital bonus issues and issuance of shares for years the share capital of the Company increased to
RMB428126983 as at 30 June 2018.
In November 2000 the Company entered into an Assets Exchange Agreement with Shenzhen
Investment Management Company the original major shareholder of the Company to exchange all the
assets and liabilities of the Company as of 31 August 2000 for Shenzhen Investment Management
Company’s 100% equity interests in 11 pharmaceutical companies and certain properties as well as 51%
equity interests in Shenzhen Tefa Modern Computer Co. Ltd. The above assets exchange proposal was
approved by shareholders in the Second Extraordinary General Meeting on December 29 2000. The
transaction was completed on 8 January 2001.
On 18 February 2004 the Company’s original major shareholder Shenzhen Investment Management
Company entered into a Stock Transfer Agreement with Sinopharm Group Co. Ltd. (hereinafter referred
to as “Sinopharm Group”) to transfer its 43.33% shares in the Company to Sinopharm Group. The legal
procedures of the above equity transfer were completed on 9 December 2004. At the same time as
approved by the State-owned Assets Supervision and Administration Commission of the State Council
(GZCQ (2004) No.525) and the China Securities Regulatory Commission (ZJGSZ (2004) No.94) the
nature of these shares was changed from state-owned stock to state-owned legal entity stock and
Sinopharm Group became the largest shareholder of the Company.
On 14 April 2006 the Company’s proposal on reformation of segregated stocks was approved. To gain
liquidity for the restricted stocks of the Company the holders of the restricted stocks of the Company
agreed to pay the following consideration: based on the stock registration as of 27 April 2006 the
Company issued bonus shares on 28 April 2006 at the ratio of 3 shares to every 10 A shares to
liquidated A-shareholders which went public on the same day. After this bonus issue the total number of
shares of the Company remained unchanged with corresponding changes in the composition of
shareholdings.On March 14 2014 the company issued 74482543 ordinary shares (A shares) through the non-public
offering. Par value per share is RMB1 yuan. The shares shall not be transferred within 36 months since
the issued day. The total number of shares of the Company was 362631943 since the date of issue.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
I Profile of the Company (Continued)
(1) Historical development and basic information (Continued)
As of 31 October 2016 the company issued RMB65495040.00 ordinary shares (A shares) through the
non-public offering. Par value per share is RMB1 yuan. Through the non-public offering the Company
acquired the companies under common control including Sinopharm Holding Guoda Pharmacy Co.Ltd. (“Guoda Pharmacy”) Foshan Nanhai Medicine Group Co. Ltd.(“Foshan Nanhai”)GuangdongSouth Pharmaceutical Foreign Trade Co. Ltd. (“South Pharma & Trade) Guangdong Dong FangUptodate & Special Medicines Co. Ltd. (“ Guangdong Uptodate & Special Medicines”) by issuingshares and raised supporting funds by issuing shares to Ping An Asset Management Co. Ltd.(“Ping An
Asset Management”) to acquire non-controlling interest of South Pharma & Trade. The relevant shares
were successfully issued and listed on 5 January 2017.
As of 30 June 2018 the total share capital was RMB428126983.
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 RMB428126983. The legal representative of
the Company is Lin Zhaoxiong.The approved scope of business of the Company and its subsidiaries (together “the Group”) includes:
the wholesale of traditional Chinese medicine preparations bulk pharmaceutical drugs chemical
preparations bulk antibiotic drugs antibiotic preparations biochemical drugs biological products
(including vaccines and in vitro diagnostic reagents psychotropic drugs and preparations narcotic drugs
toxic drugs for medical use protein assimilation preparation and peptide hormones; trade of dietary
supplement; research development and consultation services of pharmaceutical packaging materials
and pharmaceutical industry products; industrial investment holding; domestic trade; material supply
and marketing industry (other than special licensing); sale of ambulances; trade of second-class and
third- class medical equipment; project investment; property management and lease of self-owned
properties; pharmacovigilance and medical information consulting; parking operation; logistics and
related services; package agency business; logistic design; import and export services (excluding
projects that are prohibited by the country; limited projects has to be approved before operating).
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
I Profile of the Company (Continued)
(2) The Group’s parent and ultimate parent company is Sinopharm Group and China National
Pharmaceutical Group Corporation respectively.
(3) These financial statements were authorized for issue by the board of directors of the Company
on 24 Augustl 2018.
II Basis of preparation
The financial statements were prepared in accordance with the Basic Standard and specific standards
of the Accounting Standards for Business Enterprises issued by the Ministry of Finance on 15 February
2006 and the specific accounting standards and the relevant regulations issued thereafter (hereafter
collectively referred to as the “Accounting Standards for Business Enterprises” or “CAS”) and the
disclosure requirements in the Preparation Convention of Information Disclosure by Companies
Offering Securities to the Public No.15 – General Rules on Financial Reporting issued by the China
Securities Regulatory Commission.These financial statements are prepared on a going concern basis.
Except for certain financial instruments the financial statements have been prepared using historical
cost as the principle of measurement. Where assets are impaired provisions for asset impairment are
made in accordance with the relevant requirements.The Group has made accounting policies and accounting estimates according to its own operation and
production characteristics which are mainly reflected in the bad debt provision for account receivables
(NoteⅢ (10)) inventory costing methods (NoteⅢ (11)) depreciation methods for fixed assets and
amortization method for intangible assets (NoteⅢ(14)Note III(17)) judgement basis for capitalization of
development costs (NoteⅢ(17)) impairment of long-term assets (NoteⅢ(20)) revenue recognition
(NoteⅢ(24)).
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates
(1) Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the period ended 30 June 2018 are in compliance with the
Accounting Standards for Business Enterprises and truly and completely present the financial position
of the Group and the Company as of 30 June 2018 and the operating results cash flows and other
information of the Group and the Company for the year then ended.
(2) Accounting year
The Company’s accounting year starts on 1 January and ends on 31 December.
(3) Functional currency
The functional currency is Renminbi (RMB).
(4) Business combinations
(a) Business combinations involving entities under common control
Assets and liabilities (including goodwill arising from ultimate controlling shareholder’s acquisition of the
party being absorbed) that are obtained by the absorbing party in a business combination shall be
measured at their carrying amounts at the combination date as recorded by the party being absorbed.The difference between the carrying amount of the net assets obtained and the carrying amount of the
consideration paid for the combination (or the aggregate face value of shares issued as consideration)
shall be adjusted to share premium under capital surplus. If the capital surplus is not sufficient to absorb
the difference any excess shall be adjusted against retained earnings. The transaction costs of issuing
equity securities or debt securities for business combination are recognized at the initial recognition
amount of equity securities or debt securities.(b) Business combinations involving enterprises not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business combination
are measured at fair value at the acquisition date. Where the cost of the combination exceeds the
acquirer’s interest in the fair value of the acquirer’s identifiable net assets the difference is recognized
as goodwill; where the cost of combination is lower than the acquirer’s interest in the fair value of the
acquirer’s identifiable net assets the difference is recognized in profit or loss for the current period.
Costs directly attributable to the combination are included in profit or loss in the period in which they are
incurred. Transaction costs associated with the issue of equity or debt securities for the business
combination are included in the initially recognized amounts of the equity or debt securities.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(4) Business combinations (Continued)
Where the business combination not involving enterprises under common control which is achieved in
stages the acquirer’s previously held equity interests in the acquiree are remeasured at the fair value
on the acquisition date with the difference between fair value and carrying amount recognized as
investment income for the current period. If the acquirer’s previously held equity interests of the
acquiree involve other comprehensive income (“OCI”) under the equity method the accounting
treatment is conducted on the same basis as would have been required if the investee had directly
disposed of the related assets or liabilities and the changes in shareholders’ equity other than net profit
or loss OCI and profit distributions are charged to profit or loss for the current period on the acquisition
date. For the acquirer’s previously held other equity instruments the fair value of OCI accumulated
before the acquisition date are transferred into retained earnings.
(5) Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and all of its
subsidiaries.Subsidiaries are consolidated from the date on which the Group obtains control and are de-
consolidated from the date that such control ceases. For a subsidiary that is acquired in a business
combination involving enterprises under common control it is included in the consolidated financial
statements from the date when it together with the Company comes under common control of the
ultimate controlling party. The portion of the net profits realized before the combination date is
presented separately in the consolidated income statement.In preparing the consolidated financial statements where the accounting policies and the accounting
periods of the Company and subsidiaries are inconsistent the financial statements of the subsidiaries
are adjusted in accordance with the accounting policies and the accounting period of the Company. For
subsidiaries acquired from business combinations involving enterprises not under common control the
individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable
net assets at the acquisition date.
All significant intra-group balances transactions and unrealized profits are eliminated in the
consolidated financial statements. The portion of a subsidiary’s equity and the portion of a subsidiary’s
net profits losses and comprehensive income for the period not attributable to the Company are
recognized as non-controlling interests and presented separately in the consolidated financial
statements within equity net profits and total comprehensive income respectively. Unrealized gain or
loss from selling assets to subsidiaries fully offsets the net income attributable to equity holders of the
company. Unrealized gain or loss from purchasing assets from subsidiaries offsets the net income
attributable to equity holders of the company and attributable to the non-controlling interest by the
distribution proportion regarding the Company and the subsidiary. Unrealized gain or loss from
transaction between subsidiaries offsets the net income attributable to equity holders of the company
and attributable to the non-controlling interest by the distribution proportion regarding the Company and
the selling side of the subsidiaries. If different recognition perspectives for the same transaction arise
within different accounting identities setup there is an adjustment for the transaction from the Group’s
perspective.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(6) Acquisition of non-controlling interests in controlled subsidiaries
The Company acquires equity from the minority shareholders after taking control of the subsidiary in
the consolidated financial statements the subsidiary’s assets liabilities should be measured from the
combination or acquisition date. The difference between the carrying amount of acquisition of non-
controlling interest and the net assets proportion calculated by the original share percentage since the
acquisition date should be recognized in capital surplus. If the capital surplus is insufficient to dilute the
retained earnings shall be adjusted.
(7) Cash and cash equivalents
Cash and cash equivalent comprise cash on hand deposits that can be readily drawn on demand and
short-term and highly liquid investments that are readily convertible to known amounts of cash and are
subject to an insignificant risk of changes in value.
(8) Foreign currency translation
Foreign currency transact translated into RMB using the exchange rates prevailing at the dates of the
transactions.
At the balance sheet date monetary items denominated in foreign currencies are translated into RMB
using the spot exchange rates on the balance sheet date. Exchange differences arising from these
translations are recognized in profit or loss for the current period except for those attributable to foreign
currency borrowings that have been taken out specifically for the acquisition or construction of
qualifying assets which are capitalized as part of the cost of those assets. Non-monetary items
denominated in foreign currencies that are measured at historical costs are translated at the balance
sheet date using the spot exchange rates at the date of the transactions. The effect of exchange rate
changes on cash is presented separately in the cash flow statement.
(9) Financial instruments
(a) Financial assets
(i) Classification of financial assets
Financial assets are classified into the following categories at initial recognition including: financial
assets measured at amortised cost financial assets measured at fair value through other
comprehensive income and financial assets measured at fair value through profit or loss. At initial
recognition the Group measures a financial assets at its fair value plus in the case of a financial asset
not at a fair value through profit or loss transaction costs that are directly attributable to the acquisition
of the financial asset.Transaction expenses of financial assets measured at fair value through profit or loss are expensed in
profit or loss and those of others are included in receivables’ original book value.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(9) Financial instruments (Continued)
(a) Financial assets (Continued)
(ii) Recognition and measurement
Subsequent measurement of financial assets depends on the Group’s business model for managing the
asset and the cash flow characterisitics of the asset.
Financial assets measured at amortised cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment
that is measured at amortised cost and is not part of a hedging relationship is recognized in profit or
loss when the asset is derecognized or impaired. Interest income from thses financial asset is included
in finance income using the effective interest rate method.
Financial assets measured at fair value through other comprehensive income
Where the Group’s management has elected to present fair value gains and losses on equity
investments in other comprehensive income there is no subsequence reclassification of fair value gains
and losses to profit or loss. Dividends from such investments continue to be recognized in investment
income when the Group’s right to receive payments is established.
Financial assets measured subsequently at fair value through profit or loss
For this kind of fincial asset it measured subsequently at fair value and the movement of fair value is
recorded in profit or loss
(iii) Impairment of financial assets
The Group assesses the expected credit losses associated with its financial assets measured at
amortised cost on a forward looking basis. The impairment methodology applied depends on whether
there has been a significant increase in credit risk .
For trade receivables the Group applies the simplified approach which requires expected lifetime
losses to be recognized from initial recognition of the receivables.(iv) Derecognition of financial assets
A financial asset is derecognized when any of the following criteria is met: (i) the contractual rights to
receive the cash flows from the financial asset expire; (ii) the financial asset has been transferred and
the Group transfers substantially all the risks and rewards of ownership of the financial asset to the
transferee; or (iii) the financial asset has been transferred and the Group has not retained control of the
financial asset although the Group neither transfers nor retains substantially all the risks and rewards of
ownership of the financial asset.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(9) Financial instruments (Continued)
(a) Financial assets (Continued)
(iv) Derecognition of financial assets (Continued)
On derecognition of a financial asset the difference between the carrying amount and the sum of the
consideration received and the cumulative changes in fair value that had been recognized directly in
equity is recognized in profit or loss.(b) Financial liabilities
Financial liabilities are classified into the following categories at initial recognition including financial
liabilities measured at fair value through profit or loss and other financial liabilities. Transaction
expenses of financial liabilities measured at fair value through profit or loss are expensed in profit or
loss and those of others are included in receivables’ original book value.Subsequent measurement of financial liabilities depends on their catagories:
Other financial liabilities
For other fincial liabilities it measured subsequently at amortized value.
(c) Offset of financial instruments
A financial asset and a financial liability shall be offset and the net amount presented in the balance
sheet when both of the following conditions are satisfied: 1) the enterprise has a legal right to set off the
recognized amounts and the legal right is currently enforceable; 2) the enterprise intends either to settle
on a net basis or to realize the financial asset and settle the financial liability simultaneously.(d) Transfer of financial assets
A financial asset is derecognized when the Group has transferred substantially all the risks and rewards
of the asset to the referee. A financial asset is not derecognized when the Group retains substantially all
the risks and rewards of the asset.When the Group has neither transferred nor retained substantially all the risks and rewards of the asset
it either i) derecognizes the transferred asset when it has transferred control of the asset; or ii)
continues to recognize the transferred asset to the extent of the Group's continuing involvement in
which case the Group also recognizes an associated liability.
Continuing involvement that takes the form of a guarantee over the transferred financial asset is
measured at the lower of the original carrying amount of the asset and the guarantee amount. The
guarantee amount is the maximum amount of consideration that the Group could be required to repay.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(10) Receivables
Receivables comprise notes receivable accounts receivable and other receivables. Accounts
receivable arising from the sale of goods or rendering of services are initially recognized at fair value of
the contractual payments from the buyers or service recipients.(a) Receivables with amounts that are individually significant and subject to separate assessment
for provision for bad debts
Receivables with amounts that are individually significant are subject to assessment for
impairment on the individual basis. If there exists objective evidence that the Group will not be
able to collect the amount under the original terms a provision for impairment of that receivable
is made.The criterion for determining individually significant amounts is that any individual amount is
more than RMB5 million.The method of providing for bad debts for those individually significant amounts is as follows:
the amount of the present value of the future cash flows expected to be derived from the
receivable below its carrying amount.(b) Receivables that are subject to provision for bad debts on the grouping basis
Receivables with amounts that are not individually significant and those receivables that have
been individually assessed for impairment and have not been found impaired are classified into
certain groupings based on their credit risk characteristics. The provision for bad debts is
determined based on the historical loss experience for the groupings of receivables with similar
credit risk characteristics taking into consideration of the current circumstances.
A provision for impairment of the receivables is made based on the ageing of receivables at the
following percentage:
Provision ratios used for accounts
receivable
Provision ratios used for
other receivables
Within 1 year 0-5% 0-5%
1 to 2 years 5-10% 5-10%
2 to 3 years 10-30% 10-30%
3 to 4 years 20-50% 20-50%
4 to 5 years 20-80% 20-80%
More than 5 years 20-100% 20-100%
(c) Receivables with amounts that are not individually significant but subject to separate
assessment for provision for bad debts
The reason for making separate assessment for provision for bad debts is that there exists
objective evidence that the Group will not be able to collect the amount under the original terms
of the receivable.The provision for bad debts is determined based on the amount of the present value of the
future cash flows expected to be derived from the receivable below its carrying amount.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(10) Receivables (Continued)
(d) When the Group transfers the accounts receivable to the financial institutions without recourse
the difference between the proceeds received from the transaction and their carrying amounts
and the related taxes is recognized in profit or loss for the current period.
(11) Inventories
(a) Classification
Inventories include raw materials work in progress finished goods delegate processing
supplies and turnover materials and are measured at the lower of cost and net realizable
value.(b) Costing of inventories
Cost is determined on the weighted average method. The cost of finished goods and work in
progress comprises raw materials direct labor and an allocation of systematically allocated
overhead expenditures incurred based on the normal operating capacity.(c) Basis for determining net realizable values of inventories and method for making provisions for
decline in the value of inventories
Provisions for declines in the value of inventories are determined at the excess amount of the
carrying value of the inventories over their net realizable value. Net realizable value is
determined based on the estimated selling price in the ordinary course of business less the
estimated costs to completion and estimated costs necessary to make the sale and related
taxes.(d) The Group adopts the perpetual inventory system.(e) Amortization methods of low value consumables and packaging materials
Turnover materials include low value consumables and packaging materials which are
expensed when issued.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(12) Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries
and the Group’s long-term equity investments in its associates.Subsidiaries are the investees over which the Company is able to exercise control. Associates are the
investees that the Group has significant influence on their financial and operating policies.Investments in subsidiaries are measured using the cost method in the Company’s financial statements
and adjusted by using the equity method when preparing the consolidated financial statements.Interests in associates are accounted for using the equity method.(a) Determination of investment cost
For long-term equity investments acquired through a business combination: for long-term equity
investments acquired through a business combination involving enterprises under common control the
investment cost shall be the absorbing party’s share of the carrying amount of shareholders’ equity of
the party being absorbed at the combination date; for long-term equity investments acquired through a
business combination involving enterprises not under common control the investment cost shall be the
combination cost.(b) Subsequent measurement and recognition of related profit or loss
For long-term equity investments accounted for using the cost method they are measured at the initial
investment costs and cash dividends or profit distribution declared by the investees are recognized as
investment income in profit or loss.
For long-term equity investments accounted for using the equity method where the initial investment
cost of a long-term equity investment exceeds the Group’s share of the fair value of the investee’s
identifiable net assets at the acquisition date the long-term equity investment is measured at the initial
investment cost; where the initial investment cost is less than the Group’s share of the fair value of the
investee’s identifiable net assets at the acquisition date the difference is included in profit or loss and
the cost of the long-term equity investment is adjusted upwards accordingly.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(12) Long-term equity investments (Continued)
For long-term equity investments accounted for using the equity method the Group recognizes the
investment income according to its share of net profit or loss of the investee. The Group discontinues
recognizing its share of net losses of an investee after the carrying amount of the long-term equity
investment together with any long-term interests that in substance form part of the investor’s net
investment in the investee are reduced to zero. However if the Group has obligations for additional
losses and the criteria with respect to recognition of provisions under the accounting standards on
contingencies are satisfied the Group continues recognizing the investment losses and the provisions.
For changes in shareholders’ equity of the investee other than those arising from its net profit or loss
other comprehensive income and profit distribution the Group adjusts the book value of the investment
and records capital surplus accordingly. The carrying amount of the investment is reduced by the
Group’s share of the profit distribution or cash dividends declared by an investee.The unrealized profits or losses arising from the intra-group transactions amongst the Group and its
investees are eliminated in proportion to the Group’s equity interest in the investees and then based on
which the investment gains or losses are recognized. For the loss on the intra-group transaction
amongst the Group and its investees attributable to asset impairment any unrealized loss is not
eliminated.(c) Basis for determining existence of control joint control or significant influence over investees
Control is the power to govern the financial and operating policies of the investee so as to obtain
benefits from its operating activities. In determining whether the Company is able to exercise control
over the investee the effect of potential voting rights over the investee is considered such as
convertible debts and warrants currently exercisable.Significant influence is the power to participate in the financial and operating policy decisions of the
investee but is not control or joint control over those policies.(d) Impairment of long-term equity investments
The carrying amount of long-term equity investments in subsidiaries and associates is reduced to the
recoverable amount when the recoverable amount is less than the carrying amount (Note III (21)).
(13) Investment properties
Investment properties including land use rights that have already been leased out buildings that are
held for the purpose of leasing and buildings that are being constructed or developed for the purpose of
leasing in future are measured initially at cost. Subsequent expenditures incurred in relation to an
Investment properties are included in the cost of the Investment properties when it is probable that the
associated economic benefits will flow to the Group and their costs can be reliably measured;
otherwise the expenditures are recognized in profit or loss in the period in which they are incurred.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(13) Investment properties (Continued)
The Group adopts the cost model for subsequent measurement of investment properties. Buildings and
land use rights are depreciated or amortized to their estimated net residual values over their estimated
useful lives. The estimated useful lives the estimated net residual values that are expressed as a
percentage of cost and the annual depreciation (amortization) rates of investment properties are as
follows:
Estimated useful life Estimated residual value Annual depreciation (amortization)
rates
Buildings 12-35 years 0-5% 2.71-7.92%
Land use rights 30-50 years - 2.00-3.33%
When an Investment properties is transferred to owner-occupied properties it is reclassified as a fixed
asset or intangible asset at the date of the transfer. When an owner-occupied property is transferred out
for earning rentals or for capital appreciation the fixed asset or intangible asset is reclassified as an
investment property at its carrying amount at the date of the transfer.The Investment properties’ estimated useful life net residual value and depreciation (amortization)
method applied are reviewed and adjusted as appropriate at each end of year.
An Investment properties is derecognized on disposal or when the Investment properties is permanently
withdrawn from use and no future economic benefits are expected from its disposal. The net amount of
proceeds from sale transfer retirement or damage of an Investment properties after its carrying
amount and related taxes and expenses is recognized in profit or loss for the current period.The carrying amount of an Investment properties is reduced to the recoverable amount if the
recoverable amount is below the carrying amount (Note III (20)).
(14) Fixed assets
(a) Recognition and initial measurement of fixed assets
Fixed assets comprise buildings machinery and equipment motor vehicles other equipment and
leasehold improvements.
Fixed assets are recognized when it is probable that the related economic benefits will flow to the
Group and the costs can be reliably measured. Fixed assets purchased or constructed by the Group
are initially measured at cost at the acquisition date. The fixed assets contributed by the State
shareholders at the reorganization of the Company into a corporation entity are recognized based on
the revaluated amounts approved by the State-owned Assets Administration Department.Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is
probable that the associated economic benefits will flow to the Group and the related cost can be
reliably measured. The carrying amount of the replaced part is derecognized. All the other subsequent
expenditures are recognized in profit or loss in the period in which they are incurred.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(14) Fixed assets (Continued)
(b) Depreciation methods of fixed assets
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their
estimated residual values over their estimated useful lives. For the fixed assets that have been provided
for impairment loss the related depreciation charge is prospectively determined based upon the
adjusted carrying amounts over their remaining useful lives.The estimated useful lives the estimated residual values expressed as a percentage of cost and the
annual depreciation rates are as follows:
Estimated useful lives Estimated residual value Annual depreciation
rates
Buildings 20-35 years 0-5% 2.71-5.00%
Machinery and equipment 5-14 years 3-6% 6.79-19.40%
Motor vehicles 3-10 years 0-5% 9.50-33.33%
Other equipment 3-10 years 0-5% 9.50-33.33%
Leasehold improvements within 5 years 0% 20% and
above
The estimated useful life the estimated net residual value of a fixed asset and the depreciation method
applied to the asset are reviewed and adjusted as appropriate at least at each end of year.(c) The carrying amount of fixed assets is reduced to the recoverable amount when the
recoverable amount is less than the carrying amount (Note III (20)).(d) Recognition basis and measurement method for financing leased fixed assets.
Finance leases are leases with the whole risks and rewards related to the asset substantially
transferred. Fixed assets leased under finance lease are recognized with at smaller value of the fair
value and minimum lease payments. The difference between the book value and the minimum lease
payments should be recognized as unrecognized financing charges (Note III (27) (b)).
Fixed assets leased under finance lease are depreciated using the same policy as that those fixed
assets owned by the company. For those leased assets that the ownership of the assets can be
ascertained by the expiration date the assets should be depreciated within estimated useful lives.Otherwise the assets should be depreciated within the shorter period of the leasing period and
estimated useful lives.(e) Disposal of fixed assets
A fixed asset is derecognized on disposal or when no future economic benefits are expected from its
use or disposal. The amount of proceeds from disposal on sale transfer retirement or damage of a
fixed asset net of its carrying amount and related taxes and expenses is recognized in profit or loss for
the current period.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(15) Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction costs
installation costs borrowing costs that are eligible for capitalization and other costs necessary to bring
the fixed assets ready for their intended use. Construction in progress is transferred to fixed assets
when the assets are ready for their intended use and depreciation begins from the following month.The carrying amount of construction in progress is reduced to the recoverable amount when the
recoverable amount is less than the carrying amount (Note III (20)).
(16) Borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction of a fixed asset that
needs a substantially long period of time for its intended use commence to be capitalized and recorded
as part of the cost of the asset when expenditures for the asset and borrowing costs have been
incurred and the activities relating to the acquisition and construction that are necessary to prepare the
asset for its intended use have commenced. The capitalization of borrowing costs ceases when the
asset under acquisition or construction becomes ready for its intended use and the borrowing costs
incurred thereafter are recognized in profit or loss for the current period. Capitalization of borrowing
costs is suspended during periods in which the acquisition or construction of a fixed asset is interrupted
abnormally and the interruption lasts for more than 3 months until the acquisition or construction is
resumed.
For the specific borrowings obtained for the acquisition or construction of a fixed asset qualifying for
capitalization the amount of borrowing costs eligible for capitalization is determined by deducting any
interest income earned from depositing the unused specific borrowings in the banks or any investment
income arising on the temporary investment of those borrowings during the capitalization period.
For the general borrowings obtained for the acquisition or construction of a fixed asset qualifying for
capitalization the amount of borrowing costs eligible for capitalization is determined by applying the
weighted average effective interest rate of general borrowings to the weighted average of the excess
amount of cumulative expenditures on the asset over the amount of specific borrowings. The effective
interest rate is the rate at which the estimated future cash flows during the period of expected duration
of the borrowings or an applicable shorter period are discounted to the initial amount of the borrowings.
(17) Intangible assets
Intangible assets include land use rights computer software technology patents trademarks and
distribution network which are initially recognized at cost. Intangible assets contributed by state-owned
shareholders during the Company reorganization were recorded based on the valuation amount
approved by the State-owned Assets Supervision and Management Department.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(17) Intangible assets (Continued)
Categories Useful lives
Land use rights Between the approved useful period and the Company’s
operating period
Software 3-5 years
Trademarks 5-10 years
Technology patents 5 years
Distribution network 20 years
Franchising rights 10 years
Favorable leases 17-20 years
A land use right granted by government with an infinite useful life would not be amortized. Other land
use rights are amortized on the straight-line basis over their approved useful period. If the acquisition
costs of land use rights and the buildings located thereon cannot be reliably allocated between the land
use rights and the buildings all of the acquisition costs are recognized as fixed assets.
For an intangible asset with a finite useful life review of its useful life and amortization method is
performed at each end of year with adjustments made as appropriate. For an intangible asset without a
definite useful life review of its useful life is performed at each end of year.The expenditure on an internal research and development project is classified into expenditure on the
research phase and expenditure on the development phase based on its nature and whether there is
material uncertainty that the research and development activities can form an intangible asset at end of
the project.
Expenditure for investigation evaluation and selection of production process and new drugs researches
is recognized in profit or loss in the period in which it is incurred. Expenditure on the designation
measurement of the final utilization of the production process and new drugs before mass production is
capitalized only if all of the following conditions are satisfied:
? development of the production process and new drugs has been fully demonstrated by the
technical team;
? management has approved the budget of drug production development and new drugs;
? market research analysis suggests that the products produced by the new production
technology are able to be promoted;
? adequate technical financial and other resources to complete the development and the ability
to use or sell the intangible asset;
? the expenditure attributable to the intangible asset during its development phase can be reliably
measured.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(17) Intangible assets (Continued)
Other development costs that do not meet the conditions above are recognized in profit or loss in the
period in which they are incurred. Development costs previously recognized as expenses are not
recognized as an asset in a subsequent period. Capitalized expenditure on the development phase is
presented as development costs in the balance sheet and transferred to intangible assets at the date
that the asset is ready for its intended use.The carrying amount of intangible assets is reduced to the recoverable amount when the recoverable
amount is less than the carrying amount (Note III (20)).
(18) Long-term prepaid expenses
Long-term prepaid expenses include the expenditure for improvements to fixed assets under operating
leases and other expenditures that have been made but should be recognized as expenses over more
than one year in the current and subsequent periods. Long-term prepaid expenses are amortized on the
straight-line basis over the expected beneficial period and are presented at actual expenditure net of
accumulated amortization.
(19) Governmental medical reserve funds and specially approved reserving materials
Appointed by the PRC Government CNPGC is responsible for purchasing allocating and providing the
governmental medical reserves which include the medical products traditional Chinese medicine and
medical appliances for nation-wide emergency rescue and disaster relief. Appointed by the Government
of Guangxi Province Sinopharm Medicine Holding Guangxi Co. Ltd. (“Sinopharm Guangxi”) a
subsidiary of the Company is responsible for purchasing allocating and providing the medical
reserves which include the medical products needed for serious disasters epidemics and other
emergencies as well as endemic diseases in Guangxi Province. In accordance with the regulation of
CNPGC as being the enterprise who bears the obligation for specially approved medical reserving
materials the medical reserve funds received from the PRC Government or local government are
recognized as other non-current liabilities. The Group reserves the specially approved medical
reserving materials according to the reserve program (by category and by quantity) applies dynamic
management and recognizes as other non-current assets.
(20) Impairment of long-term assets
Fixed assets construction in progress intangible assets with finite useful lives long-term prepaid
expenses and investment properties measured using the cost model and long-term equity investments
in subsidiaries and associates are tested for impairment if there is any indication that an asset may be
impaired at the balance sheet date. If the result of the impairment test indicates that the recoverable
amount of the asset is less than its carrying amount a provision for impairment and an impairment loss
are recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount.The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of
the future cash flows expected to be derived from the asset. Provision for asset impairment is
determined and recognized on the individual asset basis. If it is not possible to estimate the recoverable
amount of an individual asset the recoverable amount of a group of assets to which the asset belongs
is determined. A group of assets is the smallest group of assets that is able to generate independent
cash inflows.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(20) Impairment of long-term assets (Continued)
Goodwill that is separately presented in the financial statements，intangible assets with infinite usefullives and capitalized development costs are tested at least annually for impairment irrespective of
whether there is any indication that it may be impaired. In conducting the test the carrying value of
goodwill is allocated to the related asset groups or groups of asset groups which are expected to benefit
from the synergies of the business combination. If the result of the test indicates that the recoverable
amount of an asset group or group of asset groups including the goodwill allocated is lower than its
carrying amount the corresponding impairment loss is recognized. The impairment loss is first
deducted from the carrying
amount of goodwill that is allocated to the asset group or group of asset groups and then deducted
from the carrying amount of other assets within the asset groups or groups of asset groups in proportion
to the carrying amount of other assets.Once the above Impairment loss is recognized it will not be reversed for the value recovered in the
subsequent periods.
(21) Employee benefits
Employee benefits mainly include short-term employee benefits post-employment benefits termination
benefits and other long-term employee benefits incurred in exchange for service rendered by
employees or various forms of rewards or compensation due to severance of labor relation.(a) Short-term employee benefits
Short-term employee benefits include wages or salaries bonuses allowances and subsidies staff
welfare medical insurance work injury insurance maternity insurance housing funds and labor union
funds and employee education funds. The employee benefits are recognized in the accounting period in
which the service has been rendered by the employees and as costs of assets or expenses to
whichever the employee service is attributable.(b) Post-employment benefits (defined contribution plans)
The Company classifies post-employment benefit plans into either defined contribution plans or defined
benefit plans. Defined contribution plans are post-employment benefit plans under which the Company
pays fixed contributions into a separate fund and will have no obligation to pay further contributions; and
defined benefit plans are post-employment benefit plans other than defined contribution plans. During
the reporting period the Company's post-employment benefits mainly include basic pensions
unemployment insurance and enterprise annuity both of which belong to the defined contribution plans.
Basic pensions
The Company’s employees participate in the defined basic pension insurance plan set up and
administered by local labor and social protection authorities. Basic pensions are provided monthly
according to stipulated bases and proportions to local labor and social security contribution. When
employees retire local labor and social security institutions have a duty to pay the basic pension
insurance to them. The amounts payable are recognized as liabilities based on the above provisions in
the accounting period in which the service has been rendered by the employees and as costs of assets
or expenses to whichever the employee service is attributable.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(21) Employee benefits (Continued)
(c) Termination benefits
The Group recognizes the debt and the gain or loss when offering compensation for terminating the
labor contract before the due date or encouraging the staff to resign voluntarily at the earlier of when
the Group cannot unilaterally withdraw the labor relation plan and when the Group recognizes the cost
relating to recombinant involving the payment of termination benefits.(d) Retirement benefits
The Group provides retirement benefits to employees who accept the internal retirement arrangements.Retirement benefits refer to the salary and social security contribution provided to those staff who
voluntarily quit the job with approval from the management team before the retirement age.The group offers retirement benefits from the date when the arrangement begins to the date when the
staff reaches the retirement age. The liability including salary and security contribution funds is
recognized when conditions for recognition are meet regarding to the period from the staff leaves the
position to the normal retirement date. Difference arising from the changes in actuarial assumptions for
retirement benefits and adjustments in welfare standard will be accounted for in the current profits and
losses.Retirement benefits that are expected to be paid within one year from the balance sheet date are
disclosed as current liabilities.
(22) Provisions
An obligation related to a contingency shall be recognized by the Group as a provision when all of the
following conditions are satisfied except contingent considerations and contingent liabilities assumed in
a business combination not involving enterprises under common control:
(1) The obligation is a present obligation of the Group;
(2) It is probable that an outflow of economic benefits from the Group will be required to settle the
obligation; and
(3) The amount of the obligation can be measured reliably.
The provisions are initially measured at the best estimate of the expenditure required to settle the
related present obligation taking into account factors pertaining to a contingency such as the risks
uncertainties and time value of money as a whole. The carrying amount of provisions is reviewed at the
balance sheet date. Where there is clear evidence that the carrying amount of a provision does not
reflect the current best estimate the carrying amount is adjusted to the current best estimate.
Contingent liabilities of the acquiree obtained in a business combination shall be measured at fair value
in initial recognition. After initial recognition subsequent measurement is conducted using the higher of
the
amount recognized by provisions and the amount of initial recognition deducting the accumulated
amortization amount determined by the principles of revenue recognition.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(23) Dividend distribution
Cash dividend distribution is recognized as a liability in the period in which it is approved by shareholder
at the annual shareholders’ meeting.
(24) Revenue recognition
Revenue is recognized when control of the goods or services has been transferred to customers.Revenue from the sale of products directly to customers is recognized when control the goods
transferred being when the products are accepted by customers. The customers have full dicretion
over the products and there is no un-fufilled obligation that could affect the cutomers’ acceptance of the
products.The Group provides freight storage and other services to external parties. The freights are recognized
on a percentage-of-completion basis and determined on the time propotion method. Other revenue is
determined in accordance with the amount provided in the service period stipulated in the contract.The Group shall recognise a refund liability if the Group receives consideration from a customer and
expects to refund some or all of that consideration to the customer. A refund liability is measured at the
amount of consideration received (or receivable) for which the entity does not expect to be entitled (ie
amounts not included in the transaction price). The refund liability (and corresponding change in the
transaction price and therefore the contract liability) shall be updated at the end of each reporting
period for changes in circumstances.The Group offers a customer loyalty programme where points earned through the purchase of goods
can only be redeemed for goods provided by Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co.Ltd. or other free goods. The fair value of the consideration received or receivable in respect of the
initial sale is allocated between the award credits and the other components of the sale. Fair value of
award points is measured on the basis of the value of the awards (that is goods or services) for which
they could be redeemed the fair value of the award credits should take account of expected forfeitures
as well as the discounts or incentives that would otherwise be offered to customers who have not
earned award credits from an initial sale.
Determing whether revenue of the Group should be reported gross or net is based on a continuing
assessment of various factors. Since the Group has sole discretion in determing the pricing takes full
responsibility of a good or service provided to the customers and also is responsible for the risk
associated with the goods before change of control over the goods and the customers’ complaints and
requests the Group considers it controls the specified goods or services before their delivery to its
customers and is a principal in the transactions. Accordingly the Group recognizes revenue in the
gross basis. Otherwise the Group records the net amount earned as commissions from products sold
or services provided.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(24) Revenue recognition (Continued)
When another party is involved in providing goods or services to a customer the Group determines
whether the nature of its promise is a performance obligation to provide the specified goods or services
itself as a principal or to arrange for those goods or services to be provided by the other party as an
agent. The Group determines whether it is a principal or an agent for each specified good or service
promised to the customer. A specified good or service is a distinct good or service (or a distinct bundle
of goods or services) to be provided to the customer. If a contract with a customer includes more than
one specified good or service an entity could be a principal for some specified goods or services and
an agent for others.Interest income is recognized and measured based on the loan period and the actual interest rate.Rental income is recognized and measured based to the straight-line method during the rental period.
(25) Government grants
Government grants are transfers of monetary or non-monetary assets from the government to the
Group at nil consideration including refund of taxes and financial subsidies etc.
A government grant is recognized when the conditions attached to it can be complied with and the
government grant can be received. For a government grant in the form of transfer of monetary assets
the grant is measured at the amount received or receivable. For a government grant in the form of
transfer of
non-monetary assets it is measured at fair value; if the fair value is not reliably determinable the grant
is measured at nominal amount.
A government grant related to an asset is a grant received aimed to create a long-term asset by
contracting or other methods. A government grant related to income is any grant other than government
grants related to assets.
A government grant related to an asset is recognized as deferred income and evenly amortized to
profit or loss over the useful life of the related asset. Government grants measured at nominal amounts
are recognized immediately in profit or loss for the current period.
For government grants related to income where the grant is a compensation for related expenses or
losses to be incurred by the Group in the subsequent periods the grant is recognized as deferred
income and included in profit or loss over the periods in which the related costs are recognized; where
the grant is a compensation for related expenses or losses already incurred by the Group the grant is
recognized immediately in profit or loss for the current period.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(26) Income tax
Income tax comprises current and deferred tax. Income tax is recognized as income or an expense in
profit or loss of the current period or recognized directly in shareholders’ equity if it arises from a
business combination or relates to a transaction or event which is recognized directly in shareholders’
equity.The Group measures a current tax asset or liability arising from the current and prior period based on
the amount of income tax expected to be paid by the Group or returned by tax authority calculated
according to related tax laws.
Deferred tax assets and deferred tax liabilities are calculated and recognized based on the differences
arising between the tax bases of assets and liabilities and their carrying amounts (temporary
differences). Deferred tax asset is recognized for the deductible losses that can be carried forward to
subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax
liability is recognized for a temporary difference arising from the initial recognition of goodwill. No
deferred tax asset or deferred tax liability is recognized for the temporary differences resulting from the
initial recognition of assets or liabilities due to a transaction other than a business combination which
affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date
deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply
to the period when the asset is realized or the liability is settled.
Deferred tax assets are only recognized for deductible temporary differences deductible losses and tax
credits to the extent that it is probable that taxable profit will be available in the future against which the
deductible temporary differences deductible losses and tax credits can be utilized.
Deferred tax assets and liabilities are offset when:
? the deferred taxes are related to the same tax payer within the Group and the same taxation
authority; and
? that tax payer has a legally enforceable right to offset current tax assets against current tax
liabilities.
Deferred tax liabilities are recognized for temporary differences arising from investments in subsidiaries
and associates except where the Group is able to control the timing of the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future.When it is probable that the temporary differences arising from investments in subsidiaries and
associates will be reversed in the foreseeable future and that the taxable profit will be available in the
future against which the temporary differences can be utilized the corresponding deferred tax assets
are recognized.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(27) Leases
Finance leases are leases with the whole risks and rewards related to the asset substantially
transferred. The other kinds of leases are nominated operating leases.(a) Operating leases
Lease payments under an operating lease are recognized on a straight-line basis over the period of the
lease and are either capitalized as part of the cost of related assets or charged as an expense for the
current period.Lease income under an operating lease is recognized on a straight-line basis over the period of the
lease.(b) Finance leases
Fixed assets leased under finance leases are recognized at the smaller value of the fair value and
present value of the minimum lease payments. The difference between the book value and the
minimum lease payments should be recognized as unrecognized financing charges and amortized
within the leasing period. The minimum lease payments net off the unrecognized financing charges
should be classified as long-term payables.
(28) Discontinued operations
A discontinued operation is a component of an enterprise that either has been disposed of or is
classified as held for sale and is separately identifiable operationally and for financial reporting purpose
and satisfies one of the following conditions:
(1) Represents a separate major line of business or geographical area of operations;
(2) Is part of a single coordinated plan to dispose of a separate major line of business or
geographical area of operation;
(3) Is a subsidiary acquired exclusively with a view to resale.
(29) Segment information
The Group identifies operating segments based on the internal organization structure management
requirements and internal reporting system and discloses segment information of reportable segments
which is determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (1) the
component is able to earn revenues and incur expenses from its ordinary activities; (2) whose operating
results are regularly reviewed by the Group’s management to make decisions about resources to be
allocated to the segment and to assess its performance and (3) for which the information on financial
position operating results and cash flows is available to the Group. If two or more operating segments
have similar economic characteristics and satisfy certain conditions they are aggregated into one single
operating segment.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(30) Critical accounting estimates
The Group continually evaluates the critical accounting estimates and key judgments applied based on
historical experience and other factors including expectations of future events that are believed to be
reasonable.(a) Critical accounting estimates and key assumptions
The critical accounting estimates and key assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next accounting year are outlined
below:
(i) Accounting estimates on impairment of goodwill
The Group tests annually whether goodwill has suffered any impairment. The recoverable amount of
asset groups and groups of asset groups is the present value of the future cash flows expected to be
derived from them. These calculations require the use of estimates (Note V (16)).If management revises the gross margin that is used in the calculation of the future cash flows of asset
groups and groups of asset groups and the revised gross margin is lower than the one currently used
the Group would need to recognize further impairment against goodwill and fixed assets.If management revises the pre-tax discount rate applied to the discounted cash flows and the revised
pre-tax discount rate is higher than the one currently applied the Group would need to recognize further
impairment against goodwill and fixed assets.If the actual gross margin/pre-tax discount rate is higher/lower than management’s estimates the
impairment loss of goodwill previously provided for is not allowed to be reversed by the Group.(ii) Accounting estimates on impairment of accounts receivable
In accordance with the Group’s accounting policy (Note III (10)) the Group’s management tests
annually whether receivables have suffered any impairment. Impairment of receivables has been
assessed by taking into account the customers’ credit history and financial position together with the
current market conditions. Even if the Group’s management has made bad debt provision for the
expected loss at its best estimate there is a possibility that changes in customers’ financial position or
market conditions will alter the result.(iii) Accounting estimates on impairment of inventories
In accordance with the Group’s accounting policy (Note III (11) (c)) the Group’s management estimates
the net realizable value of the inventory. Net realizable value is determined based on the estimated
selling price in the ordinary course of business less the estimated costs to completion and estimated
costs necessary to make the sale and related taxes. Even if the Group’s management has made stock
provision for the expected impairment at its best estimate there is a possibility that changes in market
conditions will alter the result.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(30) Critical accounting estimates (Continued)
(a) Critical accounting estimates and key assumptions (Continued)
(iv) Sales return
A refund liability is measured at the amount of consideration received (or receivable) for which the entity
does not expect to be entitled (ie amounts not included in the transaction price). The refund liability (and
corresponding change in the transaction price and therefore the contract liability) shall be updated at the
end of each reporting period for changes in circumstances.(v) Customer loyalty programme
The fair value of the consideration received or receivable in respect of the initial sale is allocated
between the award credits and the other components of the sale. Fair value of award points is
measured on the basis of the value of the awards (that is goods or services) for which they could be
redeemed the fair value of the award credits should take account of expected forfeitures as well as the
discounts or incentives that would otherwise be offered to customers who have not earned award
credits from an initial sale.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(30) Critical accounting estimates (Continued)
(b) Changes in accounting policies
Accounting policies of revenue were altered in accordance with the requirement of Notice on Issuing
and Revising Accounting Standard No. 14 – Revenue by Ministry of Finance. And those of financial
instruments were also altered in accordance with the requirement of Notice on Issuing and Revising
Accounting Standard No. 22 – Recognization and Measurement of Financial Instruments No. 23 –
Transfer of Financial Instruments No. 24 – Hedging Instruments and No.37 – Disclosures of Financial
Instruments. The Group adopted these standards since January 1 2018. The alteration of these
accounting policies had no effect on the net profit of the Group as well as the stockholders’ equity of the
Group.The content and reasons of
changes in accounting policies
Procedures Remarks
In 5
th
July 2017 Notice on Issuing
and Revising Accounting Standard
No. 14 – Revenue was announced
by Ministry of Finance. The
enterprises listed in Mainland and
abroad simultaneously should
adopt the standard since 1
st
January 2018 while others should
adopt it since 1
st
January 2020.
Agreed in the
meeting of board
of directors held
in 22
nd
August
2018.
The Group adopted this new standard since 1
st
January 2018. The adoption of this standard did not
lead to the significant changes in revenue
recognition. It had no effect on the net profit total
assets and total liabilities of the Group.。
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
III Summary of significant accounting policies and accounting estimates (Continued)
(30) Critical accounting estimates (Continued)
(b) Changes in accounting policies (Continued)
The content and reasons of
changes in accounting policies
Procedures Remarks
Notice on Issuing and Revising
Accounting Standard No. 22 –
Recognization and Measurement
of Financial Instruments No. 23 –
Transfer of Financial Instruments
No. 24 – Hedging Instruments and
No.37 – Disclosures of Financial
Instruments were announced by
Ministry of Finance in 2017. The
enterprises listed in Mainland and
abroad simultaneously should
adopt the standard since 1
st
January 2018 while others should
adopt it since 1
st
January 2019.
Agreed in the
meeting of board
of directors held
in 22
nd
August
2018.
(1) The percentages of voting interests held by
the Group in Shanghai Guoda Shuguang
Pharmacy Co. Ltd Shanghai Guoren
Pharmacy Co. Ltd. Sinopharm Holding Hubei
Guoda Pharmacy Co. Ltd. Hunan Zhongbai
pharmaceutical investment Co. Ltd. and
Sinopharm Health Online Co. Ltd. are 25%
10% 10% 6.31% and 8.06% respectively.
However the Group neither appoint the
directors and key management for those 5
companies nor involve in or affect the financial
or operating decision-making process or
ordinary course of business of those
companies. Therefore the Group had no
significant influence over the above companies
and recognized its investments in those
companies as available-for-sale equity
instruments. The Group recorded these assets
as available-for-sale financial assets. After
adopting new standard these assets were
recorded in financial assets measured at fair
value through other comprehensive income.The alteration had no effect on the retained
earnings other comprehensive income and
other data in comparative period.
(2) According to the new standard the Group
should assess the expected credit losses
associated with its financial assets measured at
amortized cost on a forward looking basis. The
impairment methodology applied depends on
whether there has been a significant increase in
credit risk. The management considered that
although the Group adopted new standard it
could still assess the provision of bad debt on
the grouping basis. And it had no significant
effect on the financial statements of the Group.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
IV Taxation
1. Main categories and rates of taxes:
Categories Tax base Tax rate
Corporate income tax (“CIT”) Taxable income 15%20% or 25%
Value added tax (“VAT”)
Taxable value added amount (Tax payable is calculated
using the taxable sales amount multiplied by the effective
tax rate less deductible VAT input of the current period) 0%3%5%6%10%11%16% or 17%
Business tax
Revenue from rental income interest income and etc.(from 1 January 2016 to 30 April 2016) 5%
City maintenance and
construction tax Amount of VAT 5% or 7%
Educational surcharge Amount of VAT 3%
Local educational surcharge Amount of VAT 2%
2. Tax preferences(a) In 2014 the Group’s subsidiary Sinopharm Holding Guangxi Logistics Co. Ltd. (“SinopharmGuangxi Logistics”) was approved by the Guangxi Local Tax Bureau to enjoy a tax discount
applicable to corporations in the region of Western Development to pay income tax at a tax rate of
15%. In 2016，due to the real estate relocation income the operating revenue’s proportion is
below 70% which does not meet the requirements of the preferential tax rate so Sinopharm
Guangxi Logistics was subject to a corporate income tax rate of 25% during the year.
From May to December of 2015 eight subsidiaries in Guangxi Province of the Group including
Sinopharm Guangxi Sinopharm Holding Liuzhou Co. Ltd. (“Sinopharm Liuzhou”) Sinopharm
Holding Beihai Co. Ltd (“Sinopharm Beihai”) Sinopharm Holding Guilin Co. Ltd. (“SinopharmGuilin”) Sinopharm Holding Guigang Co. Ltd. (“Sinopharm Guigang”) Sinopharm Holding Yulin
Co. Ltd. (“Sinopharm Yulin”) Sinopharm Holding Baise Co. Ltd (“Sinopharm Baise”)and
Sinopharm Holding Wuzhou Co. Ltd. (“Sinopharm Wuzhou”) were all approved by the Guangxi
Local Tax Bureau to enjoy a tax concession of Western Development at a preferential CIT rate of
15%. The applicable period for Sinopharm Guangxi Sinopharm Liuzhou and Sinopharm Beihai is
1 January 2014 to 31 December 2020 and that for the other 5 subsidiaries is 1 January 2015 to 31
December 2020.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
IV Taxation (Continued)
2. Tax preferences (Continued)
(b) The Urumqi Head Office Changji Branch and Karamay Branch of Sinopharm Holding Xinjiang New
& Special Medicines Chain Store Co. Ltd. (“Xinjiang New & Special Medicines”) a subsidiary of
the Group shall pay tax at a rate of 15% by jurisdictions According to the Circular of the Ministry of
Finance the State Administration of Taxation the General Administration of Customs on Issues
Concerning Tax Policies for the Further Development of the Western Regions (Cai shui [2011]
No.58) enterprises from encouraged industries in the Western Regions could enjoy a reduced
CIT rate of 15% from 1 January 2011 to 31 December 2020. According to the reply to Registration
Form for Items Enjoying Preferential Treatments in Corporate Income Tax by local tax authorities
in 2016 and 2017 the Urumqi Head Office Changji Branch and Karamay Branch of Xinjiang New
& Special Medicines were subject to a reduced CIT rate of 15%.
According to Ning cai (shui) fa [2012] No.957 Ningxia Guoda Pharmacy Chain Store Co. Ltd. a
subsidiary of the Group was qualified for the enterprise from encouraged industries of Western
Development. Therefore in 2016 and 2017 the company was exempt from the local retained
portion of the corporate income tax (40%) and therefore subject to a CIT rate of 15%.
According to Cai shui [2011] No.58 and Notices on Tax Reduction and Exemption (Hu shi hui guo
shui deng zi [2014] No. 37) Sinopharm Holding Guoda Neimenggu Pharmacy Chain Store Co.Ltd. a subsidiary of the Group was entitled to the preferential tax rate for the further development
of the Western Regions. Therefore the company is entitled to a preferential CIT rate of 15%.
According to the tax reduction and exemption conditions under the Circular of Local Taxation
Bureau of the Autonomous Region on Printing and Distributing the Administration and
Implementation Measures for Preferential Corporate Income Tax (Gui di shui fa [2009] No. 150)
Sinopharm Holding Guoda Guangxi Pharmacy Chain Store Co. Ltd. received the Written Decision
on Approval and Confirmation of Preferential Tax from local taxation bureau of Liuzhou city on 21
May 2015 which approved that the company was subject to a CIT rate of 15% in 2016 and 2017.(c) The Corporate Income Tax Law of the People's Republic of China stipulates in Article 28 that
small low-profit enterprises are subject to corporate income tax at a rate of 20%. The
Implementation Rules for the Corporate Income Tax Law of the People's Republic of China
stipulate in Article 92 that small low-profit enterprises refer to enterprises operating in industries
not restricted or prohibited by the State and satisfying following conditions: 1. For industrial
enterprises the annual taxable income does not exceed RMB300000; the number of employees
does not exceed 100 and the total assets does not exceed RMB30 million; 2. for other industries
the annual taxable income does not exceed RMB300000; the number of employees does not
exceed 80 and the total assets does not exceed RMB10 million.In addition according to the Circular on Issues Concerning the Preferential Policies for Corporate
Income Tax for Small Low-profit Enterprises (Cai shui [2015] No. 34) Announcement of the State
Administration of Taxation on Issues concerning the Implementation of the Further Expansion of
the Scope of Small Low-profit Enterprises (Cai shui [2015] No.99) small low-profit enterprises with
annual taxable income of RMB300000 or less enjoy a tax reduction of 50% of the income and
pays income tax at a rate of 20%. That is the applicable corporate income tax rate is 10%.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements
1. Cash and bank balances
30 June 2018 31 December 2017
Cash on hand 3721460.75 6208674.32
Cash at banks 3588994326.62 3667290017.16
Other cash balances 350879773.21 518156747.03
3943595560.58 4191655438.51
At 30 June 2018 other cash balances were consisted of letter credit deposits amounting to
RMB228116.00 (31 December 2017: RMB258800.00) bank acceptance notes deposits amounting to
RMB350651657.21 (31 December 2017: RMB514638979.04). At the peiod end there was no pledge
loans deposits (31 December 2017: RMB3258967.99).
2. Notes receivable
30 June 2018 31 December 2017
Trade acceptance notes 750395988.43 584211909.22
Bank acceptance notes 271301381.78 919982854.86
1021697370.21 1504194764.08
At 30 June 2018 and 31 December 2017 there were no notes receivable that were pledged
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
2. Notes receivable (Continued)
Notes receivable endorsed or discounted by the Group to other parties which were not yet due at
30 June 2018 and 31 December 2017 are as follows:
30 June 2018
Derecognized Not derecognized
Trade acceptance notes - 209881899.63
Bank acceptance notes 706198208.44 -
706198208.44 209881899.63
As at 30 June 2018 and 31 December 2017 notes that were converted into accounts receivable
due to the drawer’s inability to settle the note on maturity date are as follows:
30 June 2018
Bank acceptance notes 868060.00
Trade acceptance notes 14804431.01
15672491.01
3. Accounts receivable
The accounts receivable by category are analyzed below:
30 June 2018 31 December 2017
Gross carrying amount Provision for bad debt Gross carrying amount Provision for bad debt
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
Individually
significant
items for
which
provision for
bad debt is
recognized
separately 575496544.28 6.07% 11858368.75 2.06% 497346019.41 6.52% 11968509.21 2.41%
Items for
which
provision for
bad debt is
recognized by
group 8860337753.97 93.43% 28158497.05 0.32% 7106178799.93 93.09% 26069970.29 0.37%
Not
individually
significant
Items for
which
provision for
bad debt is
recognized
separately 47417171.54 0.50% 1692236.80 3.57% 29813325.95 0.39% 5886985.91 19.75%
9483251469.79 100.00% 41709102.60 0.44% 7633338145.29 100.00% 43925465.41 0.58%
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
3. Accounts receivable (Continued)
At 30 June 2018 accounts receivable that are individually significant and individually assessed for
provisions are as follows:
Accounts receivable(by
company)
Carrying
amount
Bad debt
provision Rate Assessment for impairment
Receivable of medical
insurance
425708736.16 282897.53 0.07%
Part of the medical insurance
receivable takes longer to
collect and has risk of default
Receivable of E-Business
47432657.88 - 0.00%
Receivable of E-Business with no
risk of recoverability
Receivable of Franchises
43303952.30 16292.93 0.04%
Receivable of Franchises with no
risk of recoverability
Sinopharm Group Co. Ltd.
30140408.15 - 0.00%
Receivable due from a related
party with low risk of
recoverability
Daton Xin Jian Kang
Hospital
17351611.50 - 0.00%
Receivable due from a fixed
cooperative hospital with no
risk of recoverability
Receivable of medical
insurance
11559178.29 11559178.29 100.00%
Part of the medical insurance
receivable takes longer to
collect and has risk of default
Total 575496544.28 11858368.75 - -
The accounts receivable for which the Group recognized provision for bad debt using the aging
analysis method are presented as follows
30 June 2018
Carrying amount Bad debt provision
Amount Amount Proportion
Within 1 year 8817097861.51 24372754.71 0.28%
1 to 2 years 33418766.48 1918465.80 5.74%
2 to 3 years 5871978.85 660521.64 11.25%
Over 3 years 3949147.13 1206754.90 30.56%
8860337753.97 28158497.05 0.32%
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
3. Accounts receivable (Continued)
The provision for bad debt was RMB7628609.34 in 30 June 2018 including RMB9827439.11
recovered or reversed. Important recovered or reversed bad debt items are listed below:
Recovered or
reversed amount
Way of
recovery
Guangdong Tasly Yue Jian Pharmaceutical Co.Ltd.
4083065.20 Amount
received due
to the lawsuit
Tianjin Social Security Fund Management Centre
200000.00 Amount
reversed
Yunfu People’s Hospital
172831.60 Amount
received
People’s Hospital of Deqing County
96757.20 Amount
received
Zhaoqing Chinese Medical Hospital
84623.81 Amount
received
Health Centre of Heshan City Yayao Town
54698.00 Amount
received
Others
140430.23 Amount
received
4832406.04
Accounts receivable written off in 30 June 2018 are analysed below:
Company Amount
Shenzhen Bainian Out-patient Department
28571.84
Company
Nature of the
receivable Amount Reason
Procedure performed Related party transaction or
not
Shenzhen Bainian Out-
patient Department
Receivables
of goods sold 28571.84 Non-recoverable
Written off according to
company policy No
As at 30 June 2018 the top five accounts receivable by customer are summarised below:
Amount
Bad debt provision
amount
% of the total accounts
receivable
The top five accounts
receivable total 648539647.93 1806641.25 6.84%
In 30 June 2018 accounts receivable of RMB1703007115.68 have been factored to a
financial institute.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
4. Advances to suppliers
(a) The aging of advances to suppliers is analyzed below:
30 June 2018 31 December 2017
Amount % of total balance Amount % of total balance
Within 1 year 451853929.99 98.95% 507613407.19 98.23%
1 to 2 years 3573044.24 0.78% 7410774.78 1.43%
2 to 3 years 1253250.00 0.27% 1753935.50 0.34%
Above 3 years - 0.00% - 0.00%
456680224.23 - 516778117.47 -
The prepayment aged for more than a year is mainly the advance made by South Pharma &
Trade to suppliers for equipment to be resold to the hospitals amounting to RMB4826294.24 (31
December 2017: RMB9164710.28) as the hospital equipment procurement is a large project and
takes a long time to complete.(b) As at 30 June 2018 the top five advances to suppliers by customer are summarized below:
Amount Proportion of total balance
Total amount of top five advances to suppliers 47114151.95 10.32%
5. Interest receivable
30 June 2018 31 December 2017
Fixed deposits - -
Entrusted Loans 47507.80 61441.11
47507.80 61441.11
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
6. Other receivables
(a) Other receivables and related provision for bad debts by category are analyzed below:
30 June 2018 31 December 2017
Carrying amount
Bad debt
provision Carrying amount
Bad debt
provision
Amount % Amount % Amount % Amount %
Individually significant
and subject to
separate
impairment
assessment 217091197.85 30.37% 9268199.70 4.27% 355636071.62 52.84% 8980000.00 2.53%
Receivable accounts
with similar credit
risk 485835323.29 67.95% 4122008.68 0.85% 282169420.65 41.93% 2782712.61 0.99%
Individually not
significant but
individually
evaluated for
impairment 12028679.44 1.68% 2892969.02 24.05% 35176616.14 5.23% 3348337.26 9.52%
714955200.58 100.00% 16283177.40 2.28% 672982108.41 100.00% 15111049.87 2.25%
(b) As at 30 June 2018 impairment provision for other receivables individually significant are
analyzed as below:
Amount
Bad debt
provision Rate Assessment for impairment
Shanghai Shyndec
Pharmaceutical Co. Ltd.(“Morden Pharma”) 101166758.92 - -
Receivable due from a related party with low
risk of recoverability
Deposit
95782045.77 288199.70 0.30%
Cash deposit no risk of recoverable no
provision
Shanghai Roche
Pharmaceutical Co. Ltd. 11162393.16 - -
Price reduction compensation for DTP
medicine
Shenzhen YinghaiTechnology
Investment Co. Ltd 8980000.00 8980000.00 100.00%
The ageing is over 5 years
217091197.85 9268199.70 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
6. Other receivables (Continued)
(c) Provisions for impairment of the receivables which are within a similar risk group are analyzed
below:
30 June 2018
Carrying amount Bad debt provision
amount Amount Rate
Within 1 year 456116259.07 2147110.50 0.47%
1 to 2 years 10122384.98 152153.35 1.50%
2 to 3 years 4810948.33 436170.53 9.07%
Above 3 years 14785730.91 1386574.30 9.38%
485835323.29 4122008.68 0.85%
(d)
Nature 30 June 2018 31 December 2017
Deposits 271993381.60 226111186.83
Receivable due from related parties 114539922.50 127922489.88
Petty cash advance to employees 16905695.03 13392873.34
Entrusted borrowings 44000000.00 44000000.00
Receivable of equity transactions 8980000.00 8980000.00
Others 258536201.45 252575558.36
714955200.58 672982108.41
(e)
Bad debt provision of other receivables in 2018 was RMB2284955.11 (2017: RMB747448.78)
with the recovered or reversed amount of RMB1112827.58 (2017: 929511.16 ).(f) There were no other receivables written off in the current year.(g) As at 30 June 2018，the top 5 parties that owed the largest amounts of other receivable balances
are analyzed below:
Nature Amount Age % of total amount Provision of bad debt
Morden Pharma Recivables of merge 101166758.92
Within 2
year 14.15% -
Guangdong Pharmaceutical
electronic trading platform
Pharmaceutical trading platform
repayment not yet cleared 90619946.24
Within 1
year 12.67% -
Sinopharm Group Zhijun (Suzhou)
Pharmaceutical Co. Ltd.(“Zhijun Suzhou”)
Entrusted borrowings
44000000.00
Within 1
year 6.15% -
TCM-Integrated Cancer Center of
Southern Medical University
Deposit of logistics extension
services project 30000000.00
Within 1
year 4.20% -
Shenyang Social Security
Administration Medical insurance deposi 26870049.18
Within 1
year 3.76% -
292656754.34 40.93% -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
7. Inventories
(a) Inventories by category are analyzed below:
30 June 2018 31 December 2017
Book value Provision Net book value Book value Provision Net book value
Raw materials 1526166.46 - 1526166.46 1181095.08 - 1181095.08
Work in progress 1252296.05 - 1252296.05 129098.02 - 129098.02
Finished goods 4243417987.75 6667841.42 4236750146.33 3785146957.42 6840110.55 3778306846.87
Low cost consumables 5826016.38 - 5826016.38 2241198.15 - 2241198.15
4252022466.64 6667841.42 4245354625.22 3788698348.67 6840110.55 3781858238.12
(b) Provision for declines in value of inventories is analysed below:
1 January 2018
Increases Decreases
30 June 2018
charge Other
Reversal or
Written off
Other
Finished goods 6840110.55 2390647.06 2562916.19 - 6667841.42
6840110.55 2390647.06 2562916.19 - 6667841.42
(c) Provision of inventories is determined according to the gap between the net realizable value and
the inventory book value.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
8. Other current assets
30 June 2018 31 December 2017
Input VAT to be credited 91576950.50 78014460.84
Corporate income tax to be deducted 192702.06 933183.78
Others - -
91769652.56 78947644.62
9. Financial assets available-for-sale
（1） Financial assets available-for-sale
30 June 2018 31 December 2017
Book value Provision Net book value Book value Provision Net book value
Available-for-sale
equity instruments 13685760.00 - 13685760.00
13865760.00 180000.00 13685760.00
- Measured at cost - - - 13865760.00 180000.00 13685760.00
- Measured at fair
value through other
comprehensive
income 13685760.00 - 13685760.00
- - -
13685760.00 - 13685760.00 13865760.00 180000.00 13685760.00
（2） Financial assets available-for-sale measured at fair value
Classificantion
Equity investments
available for sale
Debt instrument
available for sale
Total
Fair value 13685760.00 - 13685760.00
Notice:
According to “CSA No.22- Financial Instrument Measurement and Recognition” and “CSA No.37- FinancialInstrument Disclosure” the boarder regonized the assets as financial assets measured at fair value
through other comprehensive income
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
9. Financial assets available-for-sale
（3） Financial assets available-for-sale measured at cost
Investee
Carrying amount Impairment provision Shareholding
(%) received for the year Opening Increase Decrease Closing Opening Increase Decrease Closing
Sinopharm Health Online
Co. Ltd. 12000000.00 - (12000000.00) - - - - - 8.06 -
Sinopharm Holding Hubei
Guoda Pharmacy Co. Ltd. 1000000.00 - (1000000.00) - - - - - 10.00 -
Hunan Zhongbai
pharmaceutical investment
Co. Ltd. 315000.00 - (315000.00) - - - 6.31 31500.00
Shanghai Guoda Shuguang
Pharmacy Co. Ltd. 270760.00 - (270760.00) - - - - - 25.00 -
Xinxiang Golden Elephant. 180000.00 - (180000.00) - (180000.00) - 180000.00 - 18.00 -
Shanghai Guoren Pharmacy
Co. Ltd. 100000.00 - (100000.00) - - - - - 10.00 -
13865760.00 - 13865760.00 - (180000.00) - 180000.00 - - 31500.00
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
10. Long-term equity investments
Associates in 2018
Investee 1 January 2018
Changes in the year
30 June 2018
Provision for
impairment
Additional
Investment
Profit of loss under
equity method
Other changes in
equity
Cash dividend
declared by
investee
Other
Associates
Shenzhen Main Luck Pharmaceutical Inc.(“Main Luck Pharmaceutical”).
239046738.14 - 29983887.32 - - - 269030625.46 -
Zhijun Medicine 291042921.20 - 61373560.78 - (58111254.57) - 294305227.41 -
Zhijun Trade 7676142.69 - 853674.01 - (664795.03) - 7865021.67 -
Zhijun Suzhou 46199728.91 - (10671086.78) - - - 35528642.13 -
Pingshan Medicine 68686804.33 - 15453485.62 - (9719480.71) - 74420809.24 -
Morden Pharma 979174050.62 - 65661682.41 397342.21 (8641853.20) 193639.30 1036784861.34 -
Shanghai Beiyi Guoda Pharmaceutical Co. Ltd. 9518694.65 - 659783.20 - - - 10178477.85 -
Shanghai Liyi Pharmacy Co. Ltd. 771408.05 - - - - - 771408.05 -
Sinopharm Jienuo Medical Treatment Service
Guangdong Co. Ltd. (“Guangdong Jie nuo”)
8502884.50 - (652715.21) - - - 7850169.29 -
Shanghai Dingqun Management & Consulting
Co. Ltd
- 20000000.00 - - - - 20000000.00 -
Dongyuan Accord Pharmaceutical Chain Co.
Ltd.
396638.32 - - - - - 396638.32 396638.32
1651016011.41 20000000.00 162662271.35 397342.21 (77137383.51) 193639.30 1757131880.76 396638.32
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
11. Investment properties
Subsequent measurement under the cost model:
2018
Buildings and
constructions Land use right Total
Original cost
Opening balance 245932518.64 23370084.72 269302603.36
Purchase 45481.13 - 45481.13
Transfer from fixed assets 4605965.69 - 4605965.69
Transfer to fixed assets 6209855.73 - 6209855.73
Transfer to intangible assets 470783.88 - 470783.88
Closing balance 243903325.85 23370084.72 267273410.57
Accumulated
depreciation and
amortization
Opening balance 106139314.25 8184950.00 114324264.25
Provision 4506346.47 249314.66 4755661.13
Transfer from fixed assets 1192262.29 - 1192262.29
Transfer to fixed assets 3420626.15 - 3420626.15
Transfer to intangible assets 287874.74 - 287874.74
Closing balance 108129422.12 8434264.66 116563686.78
Provision for
impairment
Opening balance 1300000.00 - 1300000.00
Closing balance 1300000.00 - 1300000.00
Carrying amount
At end of year 134473903.73 14935820.06 149409723.79
At beginning of the year 138493204.39 15185134.72 153678339.11
（2）The fixed asset failing to accomplish certification of title
Items
Carrying amount Reason for outstanding property right
certificates
Reconstruction of old
town 65329796.40
Sinopharm Guangxi Logistics leased the
property. As at 30 June 2018 the original cost
is RMB70085820.00 and the Accumulated
depreciation and amortization is
RMB4756023.60. The certification of title is in
progress.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
12. Fixed assets
2018
Buildings Machinery Vehicles Other equipment
Fixed asset
improvements
Total
Original cost
Opening balance 456161611.21 183752571.14 87999790.56 259281585.41 30111198.47 1017306756.79
Purchase 11609004.98 7511943.05 2537492.46 8854897.18 6106795.57 36620133.24
Transfer from construction in progress - 2066324.80 - - - 2066324.80
Transfer from Investment properties 6209855.73 - - - - 6209855.73
Business combination not involving enterprises under
common control
- - - - - -
Transfer to Investment properties 4605965.69 - - - - 4605965.69
Disposal of subsidiaries - - - - - -
Disposal or retirement - 1176437.95 3672293.82 1263162.39 1110799.64 7222693.80
Closing balance 469374506.23 192154401.04 86864989.20 266873320.20 35107194.40 1050374411.07
Accumulated depreciation
Opening balance 149119755.22 73601067.33 59221772.87 154689144.23 28964583.12 465596322.77
Provision 6394173.54 11961644.96 3796763.45 9720011.38 6493533.09 38366126.42
Transfer from Investment properties 3420626.15 - - - - 3420626.15
Transfer to Investment properties 1192262.29 - - - - 1192262.29
Disposal of subsidiaries - - - - - -
Disposal or retirement - 1037763.79 3142894.82 979173.35 759134.31 5918966.27
Closing balance 157742292.62 84524948.50 59875641.50 163429982.26 34698981.90 500271846.78
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
12. Fixed assets (Continued)
2018(Continued)
Buildings Machinery Vehicles Other equipment
Fixed asset
improvements
Total
Provision for impairment
Opening balance - - - - - -
Disposal of subsidiaries - - - - - -
Closing balance - - - - - -
Carrying amount
At end of year 311632213.61 107629452.54 26989347.70 103443337.94 408212.50 550102564.29
At beginning of the year 307041855.99 110151503.81 28778017.69 104592441.18 1146615.35 551710434.02
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
12. Fixed assets (Continued)
(a) Fixed assets held under finance leases are presented as follows:
2018
Original cost Accumulated depreciation Provision for impairment Carrying amount
Machinery 25065579.83 8994037.20 - 16071542.63
(b) Fixed assets without official property right certificates
Items Carrying amount Reason for outstanding property right certificates
Buildings 27867743.48 In the process
(c) As at 30 June 2018 there were no fixed assets that were leased under operating leases.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
13. Construction in progress
30 June 2018 31 December 2017
Carrying
balance
Provision for
impairment Carrying amount Carrying balance
Provision for
impairment Carrying amount
Warehouse improvement project 3563091.66 - 3563091.66 1009314.93 - 1009314.93
New office building project 1056812.98 - 1056812.98 765882.63 - 765882.63
Supply chain extension project 8234723.40 - 8234723.40 8193935.70 - 8193935.70
Software project 8038066.18 - 8038066.18 3926271.33 - 3926271.33
Other projects 9913179.89 - 9913179.89 9051854.40 - 9051854.40
30805874.11 - 30805874.11 22947258.99 - 22947258.99
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
13. Construction in progress (Continued)
(a) Changes of significant construction in progress
Changes of significant construction in progress in 2018 are presented as follows:
Project name Budget
At beginning of
the year
Increase
Decrease
At end of year
Source of
funds
Proportion of
investment to
budget (%) Transferred to fixed
assets
Transferred to
intangible assets
Transfer to long
term prepaid
expense
Disposal of
subsidiaries
Others
Warehouse improvement
project 6808651.57 1009314.93 3919831.35 - - - - 1366054.62 3563091.66 Other 70.65%
New office building Project 1410920.18 765882.63 290930.35 - - - - - 1056812.98 Other 86.80%
Supply chain extension
project 32144615.39 8193935.70 2107112.50 2066324.80 - - - - 8234723.40 Other 87.41%
Software project 10880000.00 3926271.33 4111794.85 - - - - - 8038066.18 Other 30.00%
Other construction projects 207890962.32 9051854.40 1939425.82 - - - - 1078100.33 9913179.89 Other 5.21%
259135149.46 22947258.99 12369094.87 2066324.80 - - - 2444154.95 30805874.11 - -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
V Notes to the consolidated financial statements (Continued)
13. Construction in progress (Continued)
(a) Changes of significant construction in progress（Continued）
Project name Budget Progress（%）
Accumulated amount of
interest capitalized
Incl: interest capitalized
in current year
Capitalization
rate (%)
Warehouse improvement project 6808651.57 70.65% - - -
New office building project 1410920.18 86.80% - - -
Supply chain extension project 32144615.39 87.41% - - -
Software project 10880000.00 30.00% - - -
Other construction projects 207890962.32 5.21% - - -
259135149.46 - - - -
For the six month ended 30 June 2018 the original cost of construction in progress transferred to fixed assets amounted to RMB2066324.80 (For the six month
ended 30 June 2017: RMB1687272.11) the original cost of construction in progress transferred to long term prepaid expense amounted to RMB2444154.95
(For the six month ended 30 June 2017: RMB14725268.66) and there is no construction in progress transferred to intangible assets (For the six month ended 30
June 2017: RMB15395443.32).
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
18
V Notes to the consolidated financial statements (Continued)
14. Intangible assets
2018 Land use right Software Sales network Trademarks Franchise Total
Original cost
Opening balance 60481989.28 126128809.36 112117142.86 159219850.00 710000.00 458657791.50
Purchase - 1925352.60 - - - 1925352.60
Transfer from construction in
progress - - - - - -
Transfer from investment properties 470783.88 - - - - 470783.88
Disposal of subsidiaries - - - - - -
Transfer to investment properties - - - - - -
Transfer to long term prepaid expense - - - - - -
Disposal or retirement 1210000.00 1210000.00
Closing balance 59742773.16 128054161.96 112117142.86 159219850.00 710000.00 459843927.98
Accumulated amortization
Opening balance 26667841.47 55408075.33 35086476.18 15033967.64 710000.00 132906360.62
Provision 288177.06 6268956.05 2802928.57 2472852.94 - 11832914.62
Transfer from investment properties 287874.74 - - - - 287874.74
Disposal of subsidiaries - - - - - -
Transfer to investment properties - - - - - -
Transfer to long term prepaid expense - - - - - -
Disposal or retirement - - - - - -
Closing balance 27243893.27 61677031.38 37889404.75 17506820.58 710000.00 145027149.98
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
67
V Notes to the consolidated financial statements (Continued)
14. Intangible assets (Continued)
2018 (Continued) Land use right Software Sales network Trademarks Franchise Total
Provision for impairment
Opening balance - - - - - -
Disposal of subsidiaries - - - - - -
Closing balance - - - - - -
Carrying amount
At end of the year 32498879.89 66377130.58 74227738.11 141713029.42 - 314816778.00
At beginning of the year 33814147.81 70720734.03 77030666.68 144185882.36 - 325751430.88
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
18
V Notes to the consolidated financial statements (Continued)
14. Intangible assets (Continued)
As at 30 June 2018 there were no intangible assets arising from internal research and
development (30 June 2017: none)
As at30 June 2018 intangible assets without the right certificates as below
Items Carrying amount Reason for outstanding property right certificates
Land use
right
4000000.00 In the process
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
69
V Notes to the consolidated financial statements (Continued)
15. Goodwill
(1) Goodwill cost
30 June 2018 Opening balance Increase Decrease Closing balance
Jiangmen Renren Medical Co. Ltd.(“Sinopharm Jiangmen”) 27392317.73 - - 27392317.73
Sinopharm Holding ShenzhenYanfeng Co. Ltd. (“SinopharmYanfeng”) 16868644.87 - - 16868644.87
Sinopharm Holding Zhaoqing Co. Ltd.(“Sinopharm Zhaoqing”) 2594341.53 - - 2594341.53
Sinopharm Holding Shaoguan Co.Ltd. (“Sinopharm Shaoguan”) 1686496.80 - - 1686496.80
Sinopharm Holding Meizhou Co. Ltd.(“Sinopharm Meizhou”) 1610819.66 - - 1610819.66
Sinopharm Holding Huizhou Co. Ltd.(“Sinopharm Huizhou”) 923184.67 - - 923184.67
Sinopharm Holding Zhanjiang Co.Ltd. (“Sinopharm Zhanjiang”) 282135.55 - - 282135.55
Sinopharm Holding Dongguan Co.Ltd. (“Sinopharm Dongguan”) 1499.02 - - 1499.02
South Pharma & Trade 2755680.62 - - 2755680.62
Foshan Nanhai 88877850.51 - - 88877850.51
Sinopharm Holding Zhuhai
Co.Ltd.(Sinopharm Zhuhai) 6772561.47 - - 6772561.47
Sinopharm Holding Maoming Co. Ltd.(“Sinopharm Maoming”) 66417.07 - - 66417.07
Sinopharm Holding Guoda ForMe
Medicines (Shanghai) Co. Ltd.
( “ForMe Medicines”) 3033547.53 - - 3033547.53
Sinopharm Holding Guoda ForMe
Pharmacy Chain Store Co. Ltd.
(“ForMe Pharmacy Chain Store”) 19405450.23 - - 19405450.23
Sinopharm Holding Guoda Shanxi
Yiyuan Pharmacy Chain Store Co.Ltd. 9080100.00 - - 9080100.00
Sinopharm Holding Guoda Yangzhou
Dadesheng Pharmacy Chain Store
Co. Ltd. 7979000.00 - - 7979000.00
Zhejiang Guoda Pharmacy Co. Ltd. 3045183.85 - - 3045183.85
Guoda Shenyang Tianyitang
Pharmacy Chain 1687942.92 - - 1687942.92
Sinopharm Holding Guoda Shenyang
Pharmacy Chain Store Co. Ltd. 39360015.16 - - 39360015.16
Sinopharm Holding Guoda Nanjing
Pharmacy Chain Store Co. Ltd. 11598341.12 - - 11598341.12
Sinopharm Holding Guoda Shandong
Pharmacy Chain Store Co. Ltd. 29110409.46 - - 29110409.46
Quanzhou Guoda Pharmacy Chain
Store Co. Ltd. 41298622.59 - - 41298622.59
Shanxi Guoda Wanmin Pharmacy
Chain Store Co. Ltd. 65025000.00 - - 65025000.00
Sinopharm Holding Hunan Guoda
Minshengtang Pharmacy Chain
Co. Ltd. 41165574.64 - - 41165574.64
Liyang Guoda People Pharmacy
Chain Store Co. Ltd. 107275095.74 - - 107275095.74
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
70
V Notes to the consolidated financial statements (Continued)
15. Goodwill (Continued)
(1)Goodwill cost (Continued)
30 June 2018 (Continued) Opening balance
Increase Decrease
Closing balance Business combination not
involving enterprises under
common control Disposal
Sinopharm Holding Guoda Henan
Pharmacy Chain Store Co. Ltd. 22666179.77 - - 22666179.77
Sinopharm Holding Guoda
Neimenggu Pharmacy Chain Store
Co. Ltd. 70485777.00 - - 70485777.00
Sinopharm Guoda Pharmacy
Jiangmen Chain Co. Ltd. 77350000.00 - - 77350000.00
Fujian Guoda Pharmacy Chain Store
Co. Ltd. 1567250.76 - - 1567250.76
Sinopharm Holding Guoda Pharmacy
Chain Store Shanghai Co. Ltd. 5028638.00 - - 5028638.00
Beijing Golden Elephant Pharmacy
Medicine Chain Company Limited
(“Beijing Golden Elephant”) 63546507.81 - - 63546507.81
Beijing Yangqiao Rongzhi Golden
Elephant Pharmacy Company
Limited 593616.55 - - 593616.55
Xiaoyi Guoda Wanmin Baicaotang
Pharmacy Chain Store Co. Ltd.(“Xiaoyi Wanmin”) 15866680.00 - - 15866680.00
Shijiazhuang Lerentang Yikang
Pharmacy Chain Store Co. Ltd.(“Hebei Yikang”) 29482149.57 - - 29482149.57
Shenzhen Guanganli Pharmacy Chain
Store Co. Ltd. store acquisition 13420000.00 - - 13420000.00
Guoda Taishan 26826120.55 - - 26826120.55
855729152.75 - - 855729152.75
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
71
V Notes to the consolidated financial statements (Continued)
15. Goodwill (Continued)
(2)Provision of impairment loss
Changes in provision for impairment of goodwill are presented as follows:
2018 Opening balance Increase Decrease Closing balance
Quanzhou Guoda Pharmacy
Chain Store Co. Ltd. 25000000.00 - - 25000000.00
The method of goodwill impairment testing process parameter and recognition of impairment loss:
The recoverable amount of asset groups and groups of asset groups is calculated by using the
estimated cash flows according to the five-year budget approved by management. Management
determines budgeted gross margin based on historical experience and forecast on market
development. The discount rates determined by management are the pre-tax interest rates which
reflect the risks specific to the related asset groups and groups of asset groups. The above
assumptions are used to assess the recoverable amount of each asset group and group of asset
groups within the corresponding operating segment.
16. Long-term prepaid expenses
2018 Opening balance Additions Amortization Other decrease Closing balance
Fixed asset improvement
expenditure 199209837.80 47172150.82 37044188.47 1059643.27 208278156.88
Acquisition expenditure to
obtain the right to operate 49013331.48 4191488.00 3801140.68 - 49403678.80
Others 4023881.51 161478.68 792968.47 - 3392391.72
252247050.79 51525117.50 41638297.62 1059643.27 261074227.40
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
72
V Notes to the consolidated financial statements (Continued)
17. Deferred tax assets/liabilities
(a) Deferred tax assets before offseting
30 June 2018 31 December 2017
Deductible temporary
differences Deferred tax assets
Deductible temporary
differences Deferred tax assets
Provision for
impairment of assets 65649831.79 15142434.13 66273264.14 16274860.36
Deductible tax loss 92143605.37 22824595.10 115556647.93 28705915.53
Accrued payroll 38401349.70 9046959.71 60250524.89 14540506.81
Accrued expenses 83904219.01 20394682.93 47994796.55 11141862.66
Deferred revenue 29041585.51 7198990.94 30837426.91 7540824.20
Others 6946672.66 1462475.52 5424788.24 1268913.50
316087264.04 76070138.33 326337448.66 79472883.06
(b) Deferred tax liabilities before offseting
30 June 2018 31 December 2017
Taxable temporary
differences Deferred tax liabilities
Taxable temporary
differences Deferred tax liabilities
Fair value adjustment
for business
combination not
involving enterprises
under common
control 233836821.08 58459205.27 239773296.84 59943324.20
Changes in fair value 45620230.45 11405057.61 53300601.31 11939928.82
279457051.53 69864262.88 293073898.15 71883253.02
Deferred tax assets and liabilities are presented after being offset against each other:
30 June 2018 31 December 2017
Deferred tax
assets/liabilities -
Net
Temporary
differences
after set-off
Deferred tax
assets/liabilities -
Net
Temporary
differences
after set-off
Deferred tax assets 76070138.33 79472883.06
Deferred tax liabilities 69864262.88 71883253.02
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
73
V Notes to the consolidated financial statements (Continued)
17. Deferred tax assets/liabilities (Continued)
(c) The deductible temporary differences and deductible losses that were not recognized as
deferred tax assets are presented as follows:
30 June 2018 31 December 2017
Deductible temporary differences 886927.95 1480000.00
Deductible loss (i) 21759547.45 21759547.45
22646475.40 23239547.45
(i) For those loss-making subsidiaries as it is not considered probable that taxable profit will be
available against which the tax losses can be utilized the Group has not recognized deferred
tax assets arising from accumulated losses amounting to RMB21759547.45 which are tax
deductible under the tax law.The aforesaid unrecognized deductible losses will due:
30 June 2018 31 December 2017
2018 2970715.21 2970715.21
2019 3159690.78 3159690.78
2020 4835260.23 4835260.23
2021 2641220.49 2641220.49
2022 8152660.74 8152660.74
21759547.45 21759547.45
(note) As some subsidiaries are still making loss and it’s uncertainty that the loss-making subsidiarie
can obtain enough taxable income to offset against the loss in the future. So the group do not
recognised deferred tax assets which came from the deductible loss of RMB 21759547.45 .
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
74
V Notes to the consolidated financial statements (Continued)
18. Other non-current assets
30 June 2018 31 December 2017
Prepayment for investment (Note 1) 60000000.00 60000000.00
Physical assets reserve specifically
authorized 43002651.70 45074249.27
Prepayment for a rental fee (Note 2) 13728510.39 17506780.28
Prepayment for project and equipment 13495723.15 19441433.20
130226885.24 142022462.75
Note 1 On March 2017 the Group subscribed to Sinopharm Zhongjin medical industry fund as
its limited partner. The total investment which amounted to RMB200 million will be paid within 3
years gradually. The total amount paid unitl now was 30% of the total investment which was
RMB60 million. The amount which should be paid in current year have not been settled.
Note 2: The prepayment for a rental fee which is over one year is recognized at other non-
current assets for the Group.
19. Short-term borrowings
30 June 2018 31 December 2017
Credit borrowings 1841257752.04 1413638993.97
Discounted notes 209881899.63 147715527.67
2051139651.67 1561354521.64
As at 30 June 2018 the annual interest rate for the above borrowings was 4.65% (31
December 2017: 4.34%).
As at 30 June 2018 credit borrowings of RMB1423611601.11 were guaranteed by the
Company and its subsidiaries (31 December 2017: credit borrowings of RMB1156302581.02
were guaranteed by the Company and its subsidiaries.) guaranteed borrowings of
RMB122986581.52 (31 December 2017: RMB147715527.67) were guaranteed by
Sinopharm Group.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
75
V Notes to the consolidated financial statements (Continued)
20. Notes payable
30 June 2018 31 December 2017
Commercial acceptance notes 40893576.65 60129565.95
Bank acceptance notes 2332734564.21 2672308262.47
2373628140.86 2732437828.42
At 30 June 2018，balance of notes payable at maturity was RMB0.00. (31 December 2017：RMB
19900.00).
21. Accounts payable
30 June 2018 31 December 2017
Trade payables 7230024480.35 6144221000.10
At 30 June 2018 the total amount of accounts payable aged over one year was
RMB391213598.73(31 December 2017: RMB269295585.18 ) and the payment has not yet
been cleared.
22. Advances from customers
30 June 2018 31 December 2017
Sales received in advance 178425087.30 216938239.32
At 30 June 2018 the total amount of accounts payable aged over one year was
RMB3598442.48(31 December 2017: RMB16618324.72).
23. Employee benefits payable
2018
At beginning of
the year Increase Decrease
At end of the
year
Short-term employee
benefits (a) 209320163.70 828379586.12 897398633.92 140301115.90
Post-employment
benefits (defined
contribution plan)(b) 5596277.12 83185725.88 78979669.66 9802333.34
Termination benefits (c) 740085.72 587663.14 745755.84 581993.02
215656526.54 912152975.14 977124059.42 150685442.26
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
76
V Notes to the consolidated financial statements (Continued)
23. Employee benefits payable (Continued)
(a) Short-term employee benefits
2018
At beginning of
year Increase Decrease At end of year
Salaries bonuses allowances
and grants 193078506.49 721571753.11 790541221.26 124109038.34
Staff welfare 2602805.92 21451963.99 22876399.30 1178370.61
Social security contribution 1363649.32 41911740.91 40873381.07 2402009.16
Incl: Medical insurance 1130984.41 37059846.24 36185027.55 2005803.10
Work injury insurance 10541.55 1788839.75 1680745.39 118635.91
Maternity insurance 222123.36 3063054.92 3007608.13 277570.15
Housing funds 929089.33 28300167.29 28485275.01 743981.61
Labor union funds and
employee education funds 10178562.87 14254035.42 13705147.37 10727450.92
Other short-term benefits 1167549.77 889925.40 917209.91 1140265.26
Total 209320163.70 828379586.12 897398633.92 140301115.90
(b) Defined contribution plan
2018
At beginning of
year Increase Decrease At end of year
Basic pension
insurance 1739623.34 79178966.66 76578569.12 4340020.88
Unemployment
insurance 221831.21 2274056.40 2062541.82 433345.79
Contribution to
pension fund 3634822.57 1732702.82 338558.72 5028966.67
5596277.12 83185725.88 78979669.66 9802333.34
Note：
For half year of 2018 the Group provided other termination benefits for severing labor relations of
RMB69075.00 (2017: RMB117149.03).
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
77
V Notes to the consolidated financial statements (Continued)
24. Tax payable
30 June 2018 31 December 2017
Value-added tax 82014625.51 85843903.33
Corporate Income taxes 100059775.47 102947883.38
Individual income tax payable 11467041.74 3921305.41
City maintenance and construction surtax 7179360.17 6691713.89
Educational surcharge payable 5219506.77 4862588.43
Water conservancy fund payable 5216011.64 5356119.89
Stamp duty 3350847.10 4166596.91
Property tax 811622.69 971268.99
Land use tax payable 187073.98 513790.48
Others 7845865.69 8477729.53
223351730.76 223752900.24
25. Interest payable
30 June 2018 31 December 2017
Interest payable
- interest on long-term borrowings 35440.24 38984.28
- interest on short-term borrowings 10316727.99 6968878.69
Factoring interest paybale 10856.93 -
Interest payable to former shareholder 15188.75 303956.68
10378213.91 7311819.65
26. Dividend payable
30 June 2018 31 December 2017
Shanghai Fosun Pharmaceutical (Group) Co. Ltd. 4835511.58 4835511.58
Luqi Zhong 1853188.06 4103188.06
Lunan Zhong 345928.44 765928.44
Xiangjun Zhong 271800.92 601800.92
Meiluo Pharmaceutical Co. Ltd. 164170.07 164170.07
Ganyin Bai 29204.73 29204.73
Zhenfang Zhang 1389639.31 1389639.31
8889443.11 11889443.11
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
78
V Notes to the consolidated financial statements (Continued)
27. Other payables
30 June 2018 31 December 2017
Payables for factoring programs 305380394.63 388729758.59
Deposit 231443810.46 129662851.39
Payables arising from acquisition of
subsidiaries 80432813.17 109445960.00
Payables for construction in progress and
equipment 50543206.13 98293860.11
Accrued selling and distribution expenses 128398461.81 96065832.84
Payables to individuals 49879370.07 34316089.64
Payables for rentals 13320632.62 27766119.66
Payables for land transfer payments 18071000.00 18071000.00
Payables to related parties 20450723.24 15817669.33
Temparary loan 15800000.00 15800000.00
Collection of others 18182500.61 8430347.08
Others 92273791.37 68728908.62
1024176704.11 1011128397.26
At 30 June 2018 other payables due within 1 year amounted to RMB 184112776.75(31 December
2017: RMB 136676639.91 ). It is mainly consisted of construction cost payable company
borrowings payable deposits and etc.
28. Non-current liabilities due within 1 year
30 June 2018 31 December 2017
Finance lease payables 5651227.56 5434770.70
5651227.56 5434770.70
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
79
V Notes to the consolidated financial statements (Continued)
29. Other current liabilities
30 June 2018 31 December 2017
Output VAT to be recognized 114239.45 112817.65
30. Long-term borrowings
30 June 2018 31 December 2017
Credit borrowings (a) 31600000.00 31600000.00
31600000.00 31600000.00
(a) At 30 June 2018 the entrusted borrowings of RMB31600000.00 were provided by Sinopharm
Group through Group Financial Co.
At 30 June 2018 the annual interest rate of above-mentioned borrowings was 4.04% (31 December
2017: 4.40%).
31. Long-term payables
30 June 2018 31 December 2017
Finance lease payables 12255803.40 14767307.84
Less: due within one year (5651227.56) (5434770.70)
6604575.84 9332537.14
32. Long-term employee benefits payable
30 June 2018 31 December 2017
Early retirement benefits payable 1636000.00 1777000.00
Less: Retirement benefits payable –
within 1 year (Note V (24)(c))
- -
1636000.00 1777000.00
33. Payable for specific projects
2018
At beginning of year Increase Decrease At end of year
Special funds granted by
government 800000.00 - - 800000.00
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
80
V Notes to the consolidated financial statements (Continued)
34. Deferred income
2018 Opening balance Increase Decrease Closing balance
Reasons of derred
income
Government
grants 96725183.34 - 2663153.60 94062029.74
Government grants
Promotion
Rewards
Program 28357189.19 1189038.59 1612877.41 27933350.37
The fair value of
promotion rewards
125082372.53 1189038.59 4276031.01 121995380.11
As at 30 June 2018 deferred income from government grants are as follow:
Government grants
program
Opening
balance
Addition in
the year
Amount included
in non-operating
income in the
year
Amount
included in
other income
in the year
Closing balance Asset related/
income related
Resettlement
Compensation (i) 78253849.73 - 1349204.28 - 76904645.45 Asset related
Guangxi Logistics Project 6949832.98 - - 248203.20 6701629.78 Asset related
Logistics standardization
project 3361259.39 - - 273123.42 3088135.97 Asset related
A comprehensive
experimental modern
service industry
subsidies 1800000.00 - - 150000.00 1650000.00 Asset related
Shared Logistics Center
(completed) 270858.75 - - 9400.20 261458.55 Asset related
Other projects 6089382.49 - - 633222.50 5456159.99 income related
96725183.34 - 1349204.28 1313949.32 94062029.74
Due to the implementation of urban planning for old town reconstruction in Nanning the operating
center of Guangxi Logistics which was located in Longteng Road District Nanning City was to be
reconstructed in another place. According to the agreement signed between Guangxi Logistics and the
real estate developer Guangxi Logistics would obtain a compensation of RMB120250000.00
including cash of RMB50000000.00 and property in constructing equaling a value of
RMB70250000.00. Cash compensation of RMB 50000000.00 was received in May 2012. In year
2015 construction properties with a value of RMB70250000.00 were built and delivered and had
been recognized as investment properties (Note V (18)).The compensation relating the capital expenditure in the reconstruction of the new logistic center in
another place amounting to RMB93.32 million was recognized as deferred revenue and would be
amortized and recognized in the income statement within the expected useful lives using the straight
line method (Note V(71)) and the other cash compensation which amount approximates to RMB26.93
million was recognized in the income statement in 2012.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
81
V Notes to the consolidated financial statements (Continued)
35. Other non-current liabilities
30 June 2018 31 December 2017
Governmental medical reserve
funds
45427343.31 45427343.31
Certain medical reserves funds were received by the Group from the PRC government and local
government for purchasing medical products (including medicines) required to respond to serious
disasters epidemics and other emergencies.
36. Share capital
2018 At beginning of year At end of year
Shares 428126983.00 428126983.00
37. Capital surplus
2018 At beginning of year Increase Decrease At end of year
Share premium 2118174787.27 - - 2118174787.27
Significant reorganization 1173907763.19 - - 1173907763.19
Transition reserves from
investments in associates
reclassified from capital surplus to
other comprehensive income 2020250.22 - - 2020250.22
Transfer of capital surplus
recognized under the previous
accounting system 2650322.00 - - 2650322.00
Others (115324057.69) 397342.21 - (114926715.48)
3181429064.99 397342.21 - 3181826407.20
Capital surplus-others increased by RMB397342.21 when other changes in equity of Modern
Pharmaceutical resulted in adjustment of long-term equity investment and an increase of capital
surplus by RMB397342.21.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
82
V Notes to the consolidated financial statements (Continued)
38. Surplus reserve
At beginning of year Increase Decrease At end of year
Surplus reserve 214063491.50 - - 214063491.50
214063491.50 - - 214063491.50
39. Retained earnings
30 June 2018 31 December 2017
Retained earnings at the end of the prior year 5572952806.39 4689189642.51
A business combination involving enterprises under
common control - 1076241.59
Retained earnings at beginning of year after
retrospective adjustment and restatement 5572952806.39 4690265884.10
Add: Net profit attributable to the parent 641727034.93 1057791930.67
Deduct: Withdrew surplus reserve - (32747520.00)
Ordinary share cash dividends payable (128438094.90) (141281904.39)
Others - (1075583.99)
Retained earnings at end of year 6086241746.42 5572952806.39
40. Operating revenue and cost
For the six months ended
30 June 2018
For the six months ended
30 June 2017
Revenue Cost Revenue Cost
main operations 20606027974.57 18355002752.42 20372097755.35 18352591276.82
Other operating 173138725.10 12640971.42 152709914.22 11443174.01
20779166699.67 18367643723.84 20524807669.57 18364034450.83
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
83
V Notes to the consolidated financial statements (Continued)
41. Tax and surcharges
For the six month ended
30 June 2018
For the six month ended
30 June 2017
City maintenance and construction tax 22352680.77 24931171.70
Educational surcharge 16112625.97 18243233.02
Property tax 3075856.41 3345273.43
Land tax 245070.74 172937.56
Vehicle and vessel use tax 98966.20 98180.93
Stamp duty 14200426.96 14569034.12
Others 534900.20 1825790.10
56620527.25 63185620.86
42. Selling expenses
For the six month ended
30 June 2018
For the six month ended 30 June
2017
Employees payroll and welfare
benefits 659176548.69 582798944.53
Rental expenses 322805173.33 285053247.11
Transportation charges 33086676.72 29416679.32
Depreciation expenses 26125384.59 21860957.80
Promotion and marketing expenses 18454328.54 16881877.36
Office allowances 16283197.98 15153489.34
Entertainment expenses 11357532.12 11158406.02
Storage expenses 14866861.14 23155581.32
Travel allowances 3415890.36 3425411.69
Market development fees 3255084.76 250938.26
Conference expenses 1654991.62 2800521.29
Others 163107086.22 118490884.13
1273588756.07 1110446938.17
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
84
V Notes to the consolidated financial statements (Continued)
43. Administrative expenses
For the six month ended
30 June 2018
For the six month ended
30 June 2017
Employees payroll and welfare benefits 248803724.84 237320475.09
Rental expenses 18347245.83 17030347.32
Depreciation expenses 12732380.45 14130107.15
Office allowances 11877499.56 13498455.92
Amortization of intangible assets 8272613.85 7873617.35
Entertainment expenses 6428775.38 5878571.05
Amortization of long-term deferred
expenses 4518905.10 4478646.05
Vehicle management expenses 4435451.82 4100271.65
Travel allowances 4323679.13 3538432.83
Utilities 2713666.76 3714057.62
Taxations 2241415.79 4087147.80
Conference expenses 2059875.35 718993.59
Repairing fees 1624550.73 1665071.14
Others 23440279.19 22601856.55
351820063.78 340636051.11
44. Finance costs
For the six month ended
30 June 2018
For the six month ended
30 June 2017
Interest expenses 83356367.18 59569071.77
Less: Interest income (23082233.56) (17460371.42)
Cash discount (21542580.44) (13655314.59)
Exchanges loss/(gain) 329665.40 (283622.22)
Others 18480325.74 16329015.22
57541544.32 44498778.76
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
85
V Notes to the consolidated financial statements (Continued)
45. Impairment loss
For the six month ended
30 June 2018
For the six month ended
30 June 2017
Inventories provision 508849.26 (836741.23)
Bad debt allowance (1026702.24) 933498.39
Impairment in fixed assets - -
Impairment in goodwill - -
(517852.98) 96757.16
46. Investment income
For the six month ended
30 June 2018
For the six month ended
30 June 2017
Investment income from long-term equity investments
under the equity method
162662271.35
146775417.29
Investment income from disposal of subsidiaries - -
Gain from remeasurement of fair value of remaining
equity interest upon loss of control - -
Investment income from available-for-sale financial
assets
31500.00
50000.00
Remeasurement loss of fair value when achieved
subsidary in stages - (99377.39)
162693771.35 146726039.90
47. Gain on disposal of assets
For the six month ended
30 June 2018
For the six month ended
30 June 2017
Gain on disposal of fixed assets 389144.70 554192.50
Gain on disposal of intangible assets 3892019.91 -
Gain on disposal of other non-current assets - (69106.84)
4281164.61 485085.66
48. Other income
For the six month ended
30 June 2018
For the six month ended
30 June 2017
Government grants related to
daily activities
10589212.57
7958493.67
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
86
V Notes to the consolidated financial statements (Continued)
49. Non-operating income
For the six month
ended
30 June 2018
For the six month
ended
30 June 2017
Amount classified as
non-recurring profit or
loss
Government grants (Note a) 1349204.28 1349204.28 1349204.28
Gain on disposal of non-current assets 2303.00 1363.70 2303.00
Incl: Gain on disposal of fixed assets - - -
Gain from writing off the unnecessary
payment 2898512.62 2249156.84 2898512.62
Gain arising from donation - - -
Others 1248931.21 2456418.01 1248931.21
5498951.11 6056142.83 5498951.11
All non-operating income was wholly classified as non-recurring profit or loss for the six month ended
Note a:
Government grants which was recorded in profit or loss are as follow：
For the six month
ended
30 June 2018
For the six month
ended
30 June 2017
Related to asset/income
Resettlement Compensation of Guangxi
Logistics 1349204.28 1349204.28
Asset related
50. Non-operating expenses
For the six month ended
30 June 2018
For the six month ended
30 June 2017
Amount
classified as
non-recurring
profit or loss
Donation expenses 60000.00 59900.00 60000.00
Losses on disposal of non-current
assets 28525.01 284142.93 28525.01
Incl: Losses on disposal of fixed
assets 8300.35 284142.93 8300.35
Penalty expenses 1194388.28 1925449.66 1194388.28
Others 514379.51 1290495.50 514379.51
1797292.80 3559988.09 1797292.80
Non-operating cost was wholly classified as non-recurring profit or loss for the six month ended
30 June 2018.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
87
V Notes to the consolidated financial statements (Continued)
51. Income taxes
For the six month ended
30 June 2018
For the six month ended
30 June 2017
Current income tax 163102979.73 162853639.57
Deferred income tax 1383754.59 (2812531.94)
164486734.32 160041107.63
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 2018
Total profit 853735744.23
Income taxes calculated at applicable tax rates 213433936.06
Lower tax rates enacted by local authorities (12404268.99)
Adjustment of income tax expense of previous year (799186.91)
Income not subject to tax (40673442.84)
Expenses not deductible for tax 4061292.94
Utilization of previously unrecognized tax losses 16701.91
Deductible loss on unconfirmed deferred tax assets at end
of the year 951711.58
Impact of the temporary discrepancy on unconfirmed
deductible deferred tax assets at end of the year (100009.43)
Income tax 164486734.32
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
88
V Notes to the consolidated financial statements (Continued)
52. Notes to items in the cash flow statement
(a) Cash receipts related to other operating activities
2018 2017
Government grants except tax return 10345223.64 1349204.28
Rent income 37793728.50 28140527.98
Operational restricted bank deposits received 88156799.79 4067748.35
Interest income 22642258.30 17412415.01
Others 153046777.37 47052933.05
311984787.60 98022828.67
(b) Cash paid relating to other operating activities
2018 2017
Rental expenses 341152419.16 302083594.43
Entertainment expenses 17786307.50 17036977.07
Shipping expenses 33086676.72 29416679.32
Travel expenses 7739569.49 6963844.52
Storage expenses 14866861.14 23155581.32
Office expenses 28160697.54 28651945.26
Advertising expenses 18454328.54 16881877.36
Others 377222116.67 222065660.72
838468976.76 646256160.00
(c) Cash received relating to other investing activities
2018 2017
Received Entrusted loan payments
from Zhijun Suzhou
44000000.00
-
Received funds of acquiring
Sinopharm Guangzhou Huadu
4680000.00
-
Received deposits returned by
Shyndec
-
75259200.00
Others 86145.15 11768140.19
48766145.15 87027340.19
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
89
V Notes to the consolidated financial statements (Continued)
52. Notes to items in cash flow statement (Continued)
(d)
Cash paid relating to other
investing activities
2018 2017
Entrusted loan payments to Zhijun
Suzhou
43999800.00
44000000.00
Others - 26175078.90
43999800.00 70175078.90
(e)
Cash received relating to other
financing activities
2018 2017
Received bank factoring money - 59676813.84
Received security deposit of pledged
borrowings
79825164.60
31255582.91
Others 3920000.00 -
83745164.60 90932396.75
(f)
Cash payments relating to other
financing activities
2018 2017
Repayment of bank factoring 64002739.23 -
Cash paid for acquisition of non-controlling
interests
54722980.00
158996642.00
Repayment of entrusted borrowings
provided by Sinopharm Group
-
13415363.07
Others - 6579569.60
118725719.23 178991574.67
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
90
V Notes to the consolidated financial statements (Continued)
53. Supplementary information of cash flow statement
(a) Reconciliation of net profit to cash flows from operating activities
For the six month ended
30 June 2018
For the six month ended
30 June 2017
Net profit 689249009.91 599533739.02
Adjustments: Provision for asset impairment (506814.18) 422321.11
Depreciation of fixed assets and investment
properties
38366126.42 35222304.68
Amortization of intangible assets 11832914.62 12273709.34
Amortization of long-term prepaid expenses 41638297.62 31374523.14
Gains on disposal of fixed assets and other
non-current assets
(4254942.60) (202306.43)
Financial expenses 82449854.36 28528443.16
Investment income (162693771.35) (146726039.90)
Decrease/(increase) of deferred tax assets 3402744.73 (1641139.11)
Decrease of deferred tax liabilities (2018990.14) (2666680.74)
Decrease/(increase) of inventory (463324117.97) 113733297.36
(Increase)/decrease in operating receivables
items
(1298602834.11) (1127697064.94)
Increase/(decrease) in operating payables
items
1170553090.12 596195867.27
Others 119267141.77 89986457.44
Net cash generated from operating activities 225357709.20 228337431.40
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
91
V Notes to the consolidated financial statements (Continued)
53. Supplementary information of cashflow statement (Continued)
(c) Movement of cash
For the six month ended
30 June 2018
For the six month ended
30 June 2017
Cash at end of year 3592715787.37 3024190631.97
Less: cash at beginning of year 3673498691.48 3150915425.49
Net increase in cash (80782904.11) (126724793.52)
(d) Acquisition of subsidiaries and operating units
For the six month ended
30 June 2018
Cash and cash equivalents paid for acquisitions
of subsidiaries and other business units 16380000.00
Incl: Sinopharm Zhuhai -
Sinopharm Guangzhou Huadu 16380000.00
Maoming Yongsheng Medicines Co. Ltd.（Maoming Yongsheng） -
Less: Cash held by subsidiaries at the acquisition
date 21146145.15
Incl: Sinopharm Zhuhai -
Sinopharm Guangzhou Huadu 21146145.15 -
Maoming Yongsheng -
Net cash outflow on acquisition of the subsidiaries
and business units (4766145.15)
(e) Cash
30 June 2018 31 December 2017
Cash 3592715787.37 3673498691.48
Incl: Cash on hand 3721460.75 6208674.32
Bank deposits on demand 3588994326.62 3667290017.16
Ending banlance cash and
cash equivalent 3592715787.37 3673498691.48
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
92
V Notes to the consolidated financial statements (Continued)
54. Notes to changes in shareholders’ equity
Capital surplus-others increased by RMB397342.21 when other changes in equity of Modern
Pharmaceutical resulted in adjustment of long-term equity investment and an increase of capital
surplus by RMB397342.21.
55. Assets under restricted ownership or right to use
Book value Reasons
Cash and cash equivalents 350879773.21
Deposits of bank acceptance notes
depostis for letter of credit
Notes receivables 209881899.63
Notes receivable endorsed but not
due notes receivable discounted but
not due.
560761672.84
56. Foreign monetary items
30 June 2018
Original currency Exchange rate Equivalent to RMB
Short-term borrowings 10000.00 6.3978 63978.00
US dollar 10000.00 6.3978 63978.00
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
93
VI. Changes in the scope of consolidation
1. Business combination not involving enterprises under common control
(1) Business combination not involving enterprises under common control during the current
period
Name of
the entity
acquired
Equity
acquisition
date
Equity acquisition
cost
Equity
acquisition
ratio
Equity
acquisition
method
Date of
acquisition
Basis for
determining the
acquisition date
Revenue of the
entity acquired from
the acquisition date
to the end of period
Net income of the
entity acquired from
the acquisition date to
the end of period
Sinopharm
Holding
Guangzhou
Huadu Co.Ltd.
Apr.26
th
2018 16380000.00 70.00% Cash
Apr.30
th
2018
Acquisition of
controlling
interest 0.00 (415654.72)
Other information：
In April 2018 the Group increased capital in Guangzhou Honoka red Pharmaceutical Co. Ltd.
to 70% for RMB 16380000.00 to constitue a business combination involving enterprises not
under common control. After the increase of capital Guangzhou Honoka red Pharmaceutical
Co. Ltd. changed it’s name to Sinopharm Holding Guangzhou Huadu Co. Ltd..The acquisition
was completed on April 30
th
2018 and included in the consolidation scope of the company.
(2) Cost of combination and Goodwill
Cost of combination
Sinopharm Holding
Guangzhou Huadu Co. Ltd.
Cash 16380000.00
Total cost of combination 16380000.00
Less: Fair value shares of identifiable net assets obtained 16380729.29
The amount of Goodwill / Cost of combination less than fair
value shares of identifiable net assets obtained (729.29)
Illustration for the method of determining fair value of the cost of combination and for contingent
consideration and its variation:
Fair value of the cost of combination is determined by the consideration actually paid.
(3) Identifiable assets and liabilities of the acquired entity on the acquisition date
Sinopharm Holding Guangzhou Huadu Co. Ltd.
Fair value Carrying amount
Cash and bank balances 16466145.15 16466145.15
Accounts receivable 8111461.42 8111461.42
Advances to suppliers 2140000.00 2140000.00
Other receivables 1751932.93 1751932.93
Accounts payable 244940.00 244940.00
Tax payables 1341300.52 1341300.52
Other payables 24587265.45 24587265.45
Net assets 2296033.53 2296033.53
Method of determining fair value of the identifiable assets and liabilities:
Determined by valuation price.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
94
VI. Changes in scope of consolidation (Continued)
2. Changes in scope of consolidation for other reasons
Establishment of subsidiaries:
30 June 2018 30 June 2018
Net assets Net profits Remarks
Sinopharm Holding Guoda Haohai
Pharmacy Co. Ltd. (a) - -
New
establishment
Sinopharm Holding Foshan Medical
Consumables Supply Chain Co. Ltd. (b) 7994832.20 (5167.80)
New
establishment
Sinopharm Holding Medical Supply Chain
Services (Guangxi) Co. Ltd. (c) 19583025.78 (416974.22)
New
establishment
Sinopharm Holding Baiyi Pharmacy
Guangxi Co. Ltd. (d) 1938956.56 (61043.44)
New
establishment
a. On 18 January 2018 the Group and Shanghai Linhong Medical Equipment Co. Ltd. set up
Sinopharm Holding Guoda Haohai Pharmacy Co. Ltd. registered capital subscribed RMB
408000.00 and RMB 392000.00 respctively. As of 30 June 2018 funding has not yet been
completed.b. On 30 January 2018 the Group and Shenzhen Qingniu Medical Investment Co. Ltd. set
upSinopharm Holding Foshan Medical Consumables Supply Chain Co. Ltd. subscription of
registered capital of RMB 8000000.00 for which the Group has indirect holding of 70%.c. On 4 January 2018 the Group Guorun Medical Supply Chain Service (Shanghai) Co. Ltd. and
Guangxi Deyiyuan Medical Investment Center (Limited Partnership) set upSinopharm Holding
Medical Supply Chain Services (Guangxi) Co. Ltd. registered capital subscribed
RMB6120000.00 RMB5880000.00 and RMB8000000.00 respectively. As of 30 June 2018
fundings of RMB3060000.00 RMB2940000.00 and RMB4000000.00 has been completed
respectively.d. On 24 April 2018 the Group and Baise Jian’an Medical Chain Co. Ltd. set upSinopharm
Holding Baiyi Pharmacy Guangxi Co. Ltd. registered capital subscribed RMB1020000.00 and
RMB980000.00 respectively. As of 30 June 2018 funding has not yet been completed.
3. Cancellation of subsidiary
Subsidiaries
Principal place
of business
Place of
incorporation
Registered
capital (RMB
0.000)
Nature of
business
Shareholding Reason for no longer
being a subsidiary
Direct Indirect
Tangshan
Lerentang
Pharmacy
Chain Store
Co. Ltd.e Tangshan Tangshan 300
Wholesale
and sales of
medicines
and health
products - 100% Absorption merger
e. In March 2018 Tangshan Lerentang Pharmacy Chain Store Co. Ltd. completed industrial and
commercial cancellation procedures and cancelled corporate body.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
95
VII Interests in other entities
1． Interests in subsidiaries
(1) The composition of the Group:
Subsidiaries
Principal place of
business
Place of
incorporation
Nature of
business
Shareholding
Ways of acquisition
Direct Indirect
Sinopharm Guilin Guilin Guilin Commercial - 100.00% Establishment
Sinopharm Baise Baise Baise Commercial - 100.00% Establishment
Sinopharm Holding
Zhongshan Co. Ltd.(“SinopharmZhongshan") Zhongshan Zhongshan Commercial 100.00% - Establishment
Sinopharm Guigang Guigang Guigang Commercial - 100.00% Establishment
Sinopharm Beihai Beihai Beihai Commercial - 100.00% Establishment
Guangzhou Medical
Treatment Guangzhou Guangzhou
Commercial - 51.00% Establishment
Shenzhen Jianmin
Pharmaceutical Co.Ltd. (“SinopharmJianmin") Shenzhen Shenzhen
Commercial 100.00% -
Business
combinations
involving entities
under common
control
Sinopharm Holding
Shenzhen Traditional &
Herbal Medicine Co.Ltd. (“SinopharmTraditional & Herbal
Medicine") Shenzhen Shenzhen
Commercial 100.00% -
Business
combinations
involving entities
under common
control
Sinopharm Holding
Shenzhen Logistics
Co. Ltd. (“ShenzhenLogistics") Shenzhen Shenzhen Services 100.00% -
Business
combinations
involving entities
under common
control
Sinopharm Holding
Guangzhou Co. Ltd.(“SinopharmGuangzhou") Guangzhou Guangzhou Commercial 100.00% -
Business
combinations
involving entities
under common
control
Sinopharm Holding
Guangdong Hengxing
Co. Ltd. (“SinopharmHengxing") Guangzhou Guangzhou Commercial 100.00% -
Business
combinations
involving entities
under common
control
Sinopharm Yulin Yulin Yulin Commercial - 100.00%
Business
combinations
involving entities
under common
control
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
96
VII Interests in other entities (Continued)
1. Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Subsidiaries
Principal place
of business
Place of
incorporation
Nature of business
Shareholding
Ways of acquisition
Direct Indirect
Sinopharm Liuzhou Liuzhou Liuzhou Commercial 51.00% -
Business combinations
involving entities under
common control
Guangdong Huixin Investment Co.Ltd. (“Huixin Investment”) Guangzhou Guangzhou Service 100.00% -
Business combinations
involving entities under
common control
Sinopharm Holding Foshan Co.Ltd. (“Sinopharm Foshan") Foshan Foshan Commercial 100.00% -
Business combinations
involving entities under
common control
Sinopharm Holding GuangdongYuexing Co. Ltd. (“SinopharmYuexing”) Guangzhou Guangzhou Commercial 100.00% -
Business combinations
involving entities under
common control
Sinopharm Holding Guangdong
Logistics Co. Ltd.(“Guangdong Logistic”) Guangzhou Guangzhou Service 100.00% -
Business combinations
involving entities under
common control
Sinopharm Guangxi Nanning Nanning Commercial 100.00% -
Business combinations
involving entities under
common control
Guangxi Logistic Nanning Nanning Service - 100.00%
Business combinations
involving entities under
common control
Sinopharm Wuzhou Wuzhou Wuzhou Commercial - 99.90%
Business combinations
involving entities under
common control
Sinopharm Holding Dongguan Co.Ltd. (“Sinopharm Dongguan") Dongguan Dongguan Commercial 100.00% -
Business combinations
involving entities not under
common control
Sinopharm Holding Zhanjiang Co.Ltd. (“Sinopharm Zhanjiang") Zhanjiang Zhanjiang Commercial 100.00% -
Business combinations
involving entities not under
common control
Sinopharm Holding Yanfeng Co.Ltd. (“Sinopharm Yanfeng ") Shenzhen Shenzhen Commercial 51.00% -
Business combinations
involving entities not under
common control
Sinopharm Holding Meizhou Co.Ltd. (“Sinopharm Meizhou") Meizhou Meizhou Commercial 100.00% -
Business combinations
involving entities not under
common control
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
97
VII Interests in other entities (Continued)
1． Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued):
Subsidiaries
Principal place of
business
Place of
incorporation
Nature of
business
Shareholding
Ways of acquisition
Direct Indirect
Sinopharm Holding Huizhou Co.Ltd.("Sinopharm Huizhou") Huizhou Huizhou Commercial 100.00% -
Business combinations
involving entities not under
common control
Sinopharm Holding Zhaoqing Co.Ltd.("Sinopharm Zhaoqing") Zhaoqing Zhaoqing Commercial 100.00% -
Business combinations
involving entities not under
common control
Sinopharm Holding Jiangmeng
Renren Medical Co.Ltd.(“Sinopharm Jiangmen”) Jiangmen Jiangmen Commercial 100.00% -
Business combinations
involving entities not under
common control
Sinopharm Holding Shaoguan Co.Ltd.("Sinopharm Shaoguan") Shaoguan Shaoguan Commercial 70.00% -
Business combinations
involving entities not under
common control
Sinopharm Shantou Shantou Shantou Commercial 100.00% -
Business combinations
involving entities not under
common control
Foshan Nanhai Medicine Co. Ltd. Foshan Foshan Commercial 100.00% -
Business combinations
involving entities under
common control
Foshan Nanhai Uptodate & Special
Medicines Co. Ltd. Foshan Foshan Commercial - 100.00%
Business combinations
involving entities under
common control
Foshan Nanhai Medicine Co. Ltd. Foshan Foshan Commercial - 100.00%
Business combinations
involving entities under
common control
Guangdong Uptodate & Special
Medicines Guangzhou Guangzhou Commercial 100.00% -
Business combinations
involving entities under
common control
Guangdong South Pharmaceutical
Foreign Trade Co. Ltd. Guangzhou Guangzhou Commercial 100.00% -
Business combinations
involving entities under
common control
Sinopharm Zhuhai Zhuhai Zhuahai Commercial 100.00% -
Business combination not
involving enterprises under
common control
Sinopharm Maoming Maoming Maoming Commercial 100.00% -
Business combination not
involving enterprises under
common control
Sinopharm Holding Guangzhou
Medical Treatment Technology
Co. Ltd. Guangzhou Guangzhou Commercial - 51.00% Establishment
Sinopharm Holding Guangzhou
Medical Supply Chain Co. Ltd. Guangzhou Guangzhou Commercial - 51.00% Establishment
Sinopharm Heyuan Heyuan Heyuan Commercial - 70.00%
Business combination not
involving enterprises under
common control
Sinopharm Holding Foshan Medical
Consumables Supply Chain
Co. Ltd. Foshan Foshan Commercial - 70.00% Establishment
Sinopharm Holding Medical Supply
Chain Services (Guangxi) Co.
Ltd. Nanning Nanning Commercial - 30.60% Establishment
Sinopharm Holding Guoda Haohai
Pharmacy Co. Ltd. Shanghai Shanghai Commercial - 51.00% Establishment
Sinopharm Holding Guangzhou
Huadu Co. Ltd. Guangzhou Guangzhou Commercial - 70.00%
Business combination not
involving enterprises under
common control
Sinopharm Holding Baiyi Pharmacy
Guangxi Co. Ltd. Nanning Nanning Commercial - 51.00% Establishment
Sinopharm Holding Guoda
Pharmacy Co. Ltd. Shanghai Shanghai Commercial - 100.00%
Business combinations
involving entities under
common control
Sinopharm Holding Guoda
Pharmacy Chain Store
Shanghai Co. Ltd. Shanghai Shanghai Commercial - 100.00%
Business combinations
involving entities under
common control
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
98
VII. Interests in other entities (Continued)
1． Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued)
Subsidiaries Principal place
of business
Place of
incorporation
Nature of business Shareholding Ways of acquisition
Direct Indirect
Beijing Guoda Pharmacy
Chain Store Co. Ltd. Beijing Beijing Commercial - 100.00%
Business combinations involving
entities under common control
Tianjin Guoda Pharmacy
Chain Store Co. Ltd. Tianjin Tianjin Commercial - 80.00%
Business combinations involving
entities under common control
Guangxi Guoda Pharmacy
Consulting Chain Store
Co. Ltd. Nanning Nanning Commercial - 100.00%
Business combinations involving
entities under common control
Sinopharm Holding Guoda
Pharmacy Guangdong
Co. Ltd. Shenzhen Shenzhen Commercial - 100.00%
Business combinations involving
entities under common control
Sinopharm Guoda
Pharmacy Guangxi
Chain Co. Ltd. Liuzhou Liuzhou Commercial - 100.00%
Business combinations involving
entities under common control
Zhejiang Guoda Pharmacy
Co. Ltd. Hangzhou Hangzhou Commercial - 100.00%
Business combinations involving
entities under common control
Sinopharm Holding Guoda
Yangzhou Dadesheng
Pharmacy Chain Store
Co. Ltd. Yangzhou Yangzhou Commercial - 93.68%
Business combinations involving
entities under common control
Ningxia Guoda Pharmacy
Chain Store Co. Ltd. Yinchuan Yinchuan Commercial - 70.00%
Business combinations involving
entities under common control
Sinopharm Holding Guoda
Nanjing Pharmacy Chain
Store Co. Ltd. Nanjing Nanjing Commercial - 60.00%
Business combinations involving
entities under common control
Sinopharm Holding Guoda
Shandong Pharmacy
Chain Store Co. Ltd. Linyi Linyi Commercial - 55.00%
Business combinations involving
entities under common control
Sinopharm Holding Guoda
Shenyang Pharmacy
Chain Store Co. Ltd. Shenyang Shenyang Commercial - 51.00%
Business combinations involving
entities under common control
Fujian Guoda Pharmacy
Chain Store Co. Ltd. Xiamen Xiamen Commercial - 100.00%
Business combinations involving
entities under common control
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
99
VII. Interests in other entities (Continued)
1． Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued)
Subsidiaries Principal place
of business
Place of
incorporation
Nature of
business
Shareholding Ways of acquisition
Direct Indirect
Anhui Guoda Pharmacy Chain
Store Co. Ltd. Hefei Hefei Commercial - 60.00%
Business combinations
involving entities under
common control
Quanzhou Guoda Pharmacy
Chain Store Co. Ltd. Quanzhou Quanzhou Commercial - 51.00%
Business combinations
involving entities under
common control
Shanxi Guoda Wanmin Pharmacy
Chain Store Co. Ltd. Taiyuan Taiyuan Commercial - 85.00%
Business combinations
involving entities under
common control
Sinopharm Holding Hunan Guoda
Minshengtang Pharmacy
Chain Co. Ltd. Hengyang Hengyang Commercial - 51.00%
Business combinations
involving entities under
common control
Liyang Guoda People Pharmacy
Chain Store Co. Ltd. Liyang Liyang Commercial - 80.00%
Business combinations
involving entities under
common control
Sinopharm Holding Guoda Henan
Pharmacy Chain Store Co.Ltd. Pingdingshan Pingdingshan Commercial - 60.00%
Business combinations
involving entities under
common control
Sinopharm Holding Guoda
Neimenggu Pharmacy Chain
Store Co. Ltd. Hohhot Hohhot Commercial - 96.70%
Business combinations
involving entities under
common control
Sinopharm Hebei Lerentang
Pharmacy Chain Store Co.Ltd. Shijiazhuang Shijiazhuang Commercial - 60.00%
Business combinations
involving entities under
common control
Sinopharm Guoda Pharmacy
Jiangmen Chain Co. Ltd. Jiangmen Jiangmen Commercial - 65.00%
Business combinations
involving entities under
common control
Sinopharm Holding Guoda Shanxi
Yiyuan Pharmacy Chain Store
Co. Ltd. Taiyuan Taiyuan Commercial - 80.00%
Business combinations
involving entities under
common control
Sinopharm Holding Xinjiang New
& Special Medicines Chain
Store Co. Ltd. Urumqi Urumqi Commercial - 51.00%
Business combinations
involving entities under
common control
Sinopharm Holding Guoda ForMe
Medicines (Shanghai) Co.Ltd. Shanghai Shanghai Commercial - 97.00%
Business combinations
involving entities under
common control
Sinopharm Holding Guoda ForMe
Pharmacy Chain Store Co.Ltd. (Formerly “Shanghai
ForMe YiXing Pharmacy
Chain Store Co. Ltd.”) Shanghai Shanghai Commercial - 99.76%
Business combinations
involving entities under
common control
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
100
VII. Interests in other entities (Continued)
1． Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued)
Subsidiaries Principal place
of business
Place of
incorporation
Nature of
business
Shareholding Ways of acquisition
Direct Indirect
Beijing Golden Elephant
Pharmacy Medicine Chain
Company Limited Beijing Beijing Commercial - 53.13%
Business combinations
involving entities under
common control
Shanxi Tongfeng Pharmacy
Logistics Co. Ltd. Taiyuan Taiyuan Commercial - 100.00%
Business combinations
involving entities under
common control
Datong Guoda Wanmin
Pharmacy Chain Store
Co. Ltd. Datong Datong Commercial - 100.00%
Business combinations
involving entities under
common control
Changzhi Guoda Wanmin
Pharmacy Chain Store
Co. Ltd. Changzhi Changzhi Commercial - 51.00%
Business combinations
involving entities under
common control
Shanxi Guoda Wanmin Clinic
Management Chain Co.Ltd. Taiyuan Taiyuan Medical services - 100.00%
Business combinations
involving entities under
common control
Shanghai Guoda Shanghong
Qibao Pharmacy Co. Ltd. Shanghai Shanghai Commercial - 51.00%
Business combinations
involving entities under
common control
Zhejiang Intlmedicine
Pharmacy Dongshan Co.Ltd. Hangzhou Hangzhou Commercial - 51.00%
Business combinations
involving entities under
common control
Shanghai Guoda Dongsheng
Pharmacy Co. Ltd. Shanghai Shanghai Commercial - 100.00%
Business combinations
involving entities under
common control
Sinopharm Guoda Drug Store
(Shenzhen) Chain Co.Ltd. Shenzhen Shenzhen Commercial - 100.00%
Business combinations
involving entities under
common control
Sinopharm Holding Guoda
Pharmacy Guangzhou
Chain Co. Ltd. Guangzhou Guangzhou Commercial - 100.00%
Business combinations
involving entities under
common control
Shanghai Guoda Changxin
Pharmacy Co. Ltd. Shanghai Shanghai Commercial - 100.00%
Business combinations
involving entities under
common control
Shanghai Guodong Chinese
Traditional Medicine Clinic
Co. Ltd. Shanghai Shanghai Medical clinic - 100.00%
Business combinations
involving entities under
common control
Shanghai Guoda Dongxin
Pharmacy Chain Store
Co. Ltd. Shanghai Shanghai Commercial - 100.00%
Business combinations
involving entities under
common control
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
101
VII. Interests in other entities (Continued)
1． Interests in subsidiaries (Continued)
(1) The composition of the Group (Continued)
Subsidiaries Principal place of
business
Place of
incorporation
Nature of business Shareholding Ways of acquisition
Direct Indirect
Shanghai Yutaitang Chinese
Traditional Medicine
Clinic Co. Ltd. Shanghai Shanghai Commercial - 100.00%
Business combinations
involving entities under
common control
Beijing Yangqiao Rongzhi
Golden Elephant
Pharmacy Company
Limited Beijing Beijing Commercial - 50.79%
Business combinations
involving entities under
common control
Sanhe Liyang Golden
Elephant Pharmacy Co.
Ltd. Langfang Langfang Commercial - 100.00%
Business combinations
involving entities under
common control
Xiaoyi Guoda Wanmin
Baicaotang Pharmacy
Chain Store Co. Ltd. Xiaoyi Xiaoyi Commercial - 70.00%
Business combinations
involving entities under
common control
Sinopharm Holding Guoda
Pharmacy Hulun Buir
Co. Ltd. Hulun Buir Hulun Buir Commercial - 51.00%
Business combinations
involving entities under
common control
Shijiazhuang Lerentang
Yikang Pharmacy Chain
Store Co. Ltd. Shijiazhuang Shijiazhuang Commercial - 100.00%
Business combinations
involving entities under
common control
Shanghai ForMe Pharmacy
Co. Ltd. Shanghai Shanghai Commercial - 100.00%
Business combinations
involving entities under
common control
Sinopharm Holding Ulanqab
Co. Ltd. Ulanqab Ulanqab Commercial - 60.00% Establishment
Sinopharm Guoda
Pharmacy Qinhuangdao
Chain Co. Ltd. Qinhuangdao Qinhuangdao Commercial - 51.00%
Business combinations
involving entities under
common control
Taishan Sinopharm Holding
Guoda Qunkang
Pharmacy Chain Store
Co. Ltd. Taishan Taishan Commercial - 70.00%
Business combinations
involving entities under
common control
Beijing Golden Elephant
Fuxing Technology Co.
Ltd. Beijing Beijing Commercial - 80.00%
Business combinations
involving entities under
common control
Sinopharm Lerentang Shijiazhuang Shijiazhuang Commercia - 100%
mbinations involving
entities under common
control
GuoDa Drugstore Manzhouli
Co. Ltd Manzhouli Manzhouli Commercial - 51.00% Establishment
Sinopharm Guoda
Pharmacy Maanshan
Chain Store Co. Ltd. Anshan Anshan Commercial - 51.00% Establishment
Sinopharm Guoda
Pharmacy Yongsheng
(Shanghai) Co. Ltd. Shanghai Shanghai Commercial - 55.00% Establishment
Sanhe Lixin Golden
Elephant Pharmacy Co.
Ltd. Langfang Langfang Commercial - 100.00% Establishment
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
102
VII. Interests in other entities (Continued)
2. Interests in associates
Principal place
of business
Place of
incorporation
Nature of
business
Shareholding(%)
Accounting
Direct Indirect
Associates
Shenzhen Main Luck
Pharmaceutical Co. Ltd.("Main Luck
Pharmaceutical ") Shenzhen Shenzhen Manufacturing 35.19% - Equity
Sinopharm Group
Zhijun(Suzhou)
Pharmaceutical Co. Ltd. Suzhou Suzhou Manufacturing 33.00% - Equity
Sinopharm Group
Zhijun(Shenzhen)
Pharmaceutical Co. Ltd. Shenzhen Shenzhen Manufacturing 49.00% - Equity
Shenzhen Zhijun
Pharmaceutical Trade Co.Ltd. Shenzhen Shenzhen Commercial 49.00% - Equity
Sinopharm Group
Zhijun(Shenzhen) Pingshan
Pharmaceutical Co. Ltd. Shenzhen Shenzhen Manufacturing 49.00% - Equity
Shanghai Shyndec
Pharmaceutical Co. Ltd.(“ShyndecPharmaceutical”) Shanghai Shanghai Manufacturing 16.00% - Equity上海鼎群企业管理咨询有限公司
Shanghai Shanghai商务服务业
2.53% Equity
Shanghai Beiyi Guoda
pharmaceutical Co. Ltd. Shanghai Shanghai Commercial - 26.00% Equity
Shanghai Liyi Pharmacy
Co. Ltd Shanghai Shanghai Commercial - 35.00% Equity
Sinopharm Jienuo Medical
Treatment Service
Guangdong Co. Ltd. Guangzhou Guangzhou Commercial - 29.00% Equity
Dongyuan accord
pharmaceutical chain
Co. Ltd. Heyuan Heyuan Commercial - 45.00% Equity
Accoding to the Articles of Association and investment aggrement the board of directors of Shanghai
Dingqun Enterprise Management Consulting consisted of three directors in which one were appointed by
the Group accounting for 33.33% of voting rights.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
103
VII. Interests in other entities (Continued)
3. Summarised financial information of significant associate
30 June 2018 30 June 2017
Shanghai Shyndec
Pharmaceutical Co. Ltd.Shanghai Shyndec
Pharmaceutical Co. Ltd.
Current assets 8210661752.98 6919923607.58
Non-current assets 8136876492.43 8250667440.18
Total assets 16347538245.41 15170591047.76
Current liabilities 6124167753.55 5390426266.96
Non-current liabilities 2190226473.72 2132391027.26
Total liabilities 8314394227.27 7522817294.22
Non-controlling interests 1502385107.44 1474395375.11
Shareholders’ equity attributable
to shareholders of the parent 6530758910.70 6173378378.43
Portion of net assets calculated
by shareholding ratio 1036784861.34 979174050.63
Carrying value of equity
investment in joint ventures 1036784861.34 979174050.63
Operating revenue 5853255169.05 4579660856.59
Net profit 575258204.58 524753028.55
Total comprehensive income 575258204.58 524753028.55
Dividends received from joint
ventures this year 8641853.20 22468818.32
VIIl. Risks related to financial instruments
1. Classification of financial instruments
The fair values of each category of financial instruments that reasonably approximate to their
carrying amounts at the end of the reporting period are as follows:
30 June 2018
Financial assets
Borrowings and
receivables
Available-for-sale
financial assets
Total
Cash and bank balances 3943595560.58 - 3943595560.58
Notes receivable 1021697370.21 - 1021697370.21
Accounts receivable 9441542367.19 - 9441542367.19
Interest receivable 47507.80 - 47507.80
Other receivables 698672023.18 - 698672023.18
Available-for-sale financial
assets - 13685760.00
13685760.00
15105554828.96 13685760.00 15119240588.96
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
104
VIIl. Risks related to financial instruments (Continued)
1. Classification of financial instruments (Continued)
31 December 2017
Financial assets
Borrowings and
receivables
Available-for-sale
financial assets
Total
Cash and bank balances 4191655438.51 - 4191655438.51
Notes receivable 1504194764.08 - 1504194764.08
Accounts receivable 7589412679.88 - 7589412679.88
Interest receivable 61441.11 - 61441.11
Other receivables 657871058.54 - 657871058.54
Available-for-sale financial
assets - 13685760.00
13685760.00
13943195382.12 13685760.00 13956881142.12
Financial liabilities 30 June 2018 31 December 2017
Short-term borrowings 2051139651.67 1561354521.64
Notes payable 2373628140.86 2732437828.42
Accounts payable 7230024480.35 6144221000.10
Dividends payable 8889443.11 11889443.11
Other payables 1024176704.11 1011128397.26
Non-current liabilities due within one year 5651227.56 5434770.70
Interest payable 10378213.91 7311819.65
Long-term borrowings 31600000.00 31600000.00
Long-term payables 6604575.84 9332537.14
12742092437.41 11514710318.02
2. Transfer of financial assets
Transferred financial assets that are not derecognized in their entirety
As at 30 June 2018 the Group had endorsed commercial bills receivable (the "Endorsed Bills")
to certain of its suppliers in order to settle accounts payable due to such suppliers of RMB0 (31
December 2017: RMB0 ). During the year the Group operated a number of discounting business
through several banks in China. At 30 June 2018 the carrying value thereof was
RMB209881899.63 (31 December 2017: RMB147715527.67). In the opinion of the directors
the Group has retained the substantial risks and rewards which include default risks relating to
such Endorsed Bills and accordingly it continued to recognize the full carrying amounts of the
Endorsed Bills and the associated accounts payable settled. Subsequent to the Endorsement
the Group did not retain any rights on the use of the Endorsed Bills including the sales transfer
or pledge of the Endorsed Bills to any other third parties. As at 30 June 2018 the carrying value
of accounts payable settled by the Group totalled RMB209881899.63 (31 December 2017:
RMB147715527.67).
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
105
VIIl. Risks related to financial instruments (Continued)
2. Transfer of financial assets (Continued)
Transferred financial assets that are derecognized in their entirety in which continuing
involvement exists
As at 30 June 2018 the Group had endorsed commercial bills receivable (the "Endorsed Bills")
to certain of its suppliers in order to settle accounts payable due to such suppliers of
RMB706198208.44(31 December 2017: RMB667900939.97). During the year the Group
operated a number of discounting business through several banks in China. At 30 June 2018
the carrying value thereof was RMB361130021.33 (31 December 2016: RMB367011030.59).The Derecognized 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 Derecognized Bills havea right of recourse against the Group if the accepting banks default (the “ContinuingInvolvement”). In the opinion of the directors the Group has transferred substantially all risks
and rewards relating to the Derecognized Bills. Accordingly it has derecognized the full
carrying amounts of the Derecognized Bills and the associated accounts payable. The
maximum exposure to loss from the Group's Continuing Involvement in the Derecognized Bills
and the undiscounted cash flows to repurchase these Derecognized Bills is equal to their
carrying amounts. In the opinion of the directors the fair values of the Group’s Continuing
Involvement in the Derecognized Bills are not significant.
As part of its normal business the Group entered into an accounts receivable factoring
arrangement (the “Arrangement”) without recourse and transferred certain accounts receivable
to a bank. In the opinion of the directors the Group has transferred substantially all risks and
rewards under the arrangement. Accordingly it has derecognized the full carrying amounts of
the associated accounts receivable. The original carrying value of the derecognized accounts
receivable transferred under the Arrangement that have not been settled as at 30 June 2018
amounted to RMB761574518.74 (31 December 2017: RMB525614331.67).
As of 30 June 2018 the Group has not recognized any gain or loss on the date of transfer. No
gain or loss were recognized from derecognized financial assets in which Continuing
Involvement exists both during the year or cumulatively.
As of 30 June 2018 the Group has not recognized any gain or loss on the date of transfer of
the Derecognized Bills. No gains or losses were recognized from the Continuing Involvement
both during the year or cumulatively.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
106
VIIl. Risks related to financial instruments (Continued)
3. Risks of financial instruments
The main purpose and policies of financial risk management
The Group's principal financial instruments comprise bank borrowings and cash and short term
deposits. The main purpose of these financial instruments is to raise finance for the Group's
operations. The Group has various other financial assets and liabilities such as accounts
receivable and accounts payable which arise directly from its operations.The main risks arising from the Group's financial instruments are interest rate risk liquidity risk
foreign currency risk and credit risk.
Credit risk
Credit risk is managed on the basis of the Group. Credit risk mainly arises from cash at banks
and on hand accounts receivable other receivables and notes receivable etc.The Group expects that there is no significant credit risk associated with cash at banks since it is
deposited with state-owned banks and other medium or large sized listed banks. Management
does not expect that there will be any significant losses from non-performance by these
counterparties.In addition the Group has policies to limit the credit exposure on accounts receivable other
receivables and notes receivable. The Group assesses the credit quality of and sets credit limits
on its customers by taking into account their financial position the availability of guarantees from
third parties their credit history and other factors such as current market conditions. The Group
will confirm the balances with its clients regarding the accounts receivable semi-annually and
assess the recoverability of each account receivable by using individual evaluation and similar
credit risk group methods. The credit history of the customers is regularly monitored by the
Group. In respect of customers with a poor credit history the Group will use written payment
reminders or shorten or cancel credit periods to ensure the overall credit risk of the Group is
limited to a controllable extent.Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the
Group’s finance department in its headquarter. The Group’s finance department at its
headquarter monitors rolling forecasts of the Group's short-term and long-term liquidity
requirements to ensure it has sufficient cash and securities that are readily convertible to cash to
meet operational needs. In the meanwhile the Group continually monitors the terms of the debt
covenants in the loan agreements ensuring that sufficient unutilized commitments from major
financial institutions in order to meet the short-term and long-term liquidity requirements.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
107
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:
30 June 2018
Within 1 year
1 to 2 years
2 to 5 years
Above 5 years
Total
Short-term borrowings
2070582956.14 - - - 2070582956.14
Notes payable
2373628140.86 - - - 2373628140.86
Accounts payable
7230024480.35 - - - 7230024480.35
Interest payables
10378213.91 - - - 10378213.91
Dividend payables 8889443.11 - - - 8889443.11
Other payables
1024176704.11 - - - 1024176704.11
Current portion of non-current
liabilities
5651227.56 - - - 5651227.56
Long-term payables
- 3716803.49 2887772.35 - 6604575.84
Long-term borrowings 1293570.14 32695104.58 33988674.72
12724624736.18 36411908.07 2887772.35 12763924416.60
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
108
VIII Risks related to financial instruments (Continued)
3. Risks of financial instruments (Continued)
Liquidity risk (Continued)
31 December 2017
Within 1 year
1 to 2 years
2 to 5 years
Above 5 years
Total
Short-term borrowings
1574233015.06 - - - 1574233015.06
Notes payable
2732437828.42 - - - 2732437828.42
Accounts payable
6144221000.10 - - - 6144221000.10
Interest payables
7311819.65 - - - 7311819.65
Dividend payables 11889443.11 - - - 11889443.11
Other payables
1011128397.26 - - - 1011128397.26
Current portion of non-current
liabilities
7304197.88 - - - 7304197.88
Long-term payables
- 7304197.88 4987438.87 - 12291636.75
Long-term borrowings 1293570.14 1293570.14 32043003.47 - 34630143.75
11489819271.62 8597768.02 37030442.34 - 11535447481.98
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
109
VIII Risks related to financial instruments (Continued)
4. 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 2018 if the floating interest rates of the long-term interest-bearing
borrowings increases or decreases by 50 base points while other factors does not change the
Group’s net income will decrease or increase by RMB118500 (31 December 2017: RMB118500).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 finance department at its headquarter
continuously monitors the interest rate position of the Group and makes decisions with reference to
the latest market conditions. The Group may enter into interest rate swap agreements to mitigate its
exposure to interest rate risk. During first half of 2018 and 2017 the Group did not enter into any
interest rate swap agreements.
For the year ended 30 June 2018 the Group has long-term interest-bearing borrowings with
floating interest rates amounted to RMB31600000.00 (31 December 2017: RMB31600000.00).
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 recognized assets and liabilities and future transactions denominated in foreign currencies
primarily with respect to United States dollars and Hong Kong dollars. The Group’s finance
department at its headquarter is responsible for monitoring the amounts of assets and liabilities
and transactions denominated in foreign currencies. The Group may consider entering into forward
exchange contracts or currency swap contracts to mitigate the foreign exchange risk.
As at 30 June 2018 if the currency had weakened/strengthened by 5% against the United States
dollar while all other variables had been held constant the Group’s net profit for the year would
increase/decrease by RMB0 (2017: RMB0).
As at 30 June 2018 if the currency had weakened/strengthened by 5% against the Hong Kong
Dollar while all other variables had been held constant the Group’s net profit for the year would
increase/decrease by RMB0 (2017: RMB0 ).
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
110
VIII Risks related to financial instruments (Continued)
5. Capital management
The Company’s primary objective for managing capital is to ensure that it maintains a strong credit
rating and healthy capital ratio in order to support its business maximize shareholders’ value and
benefit related parties. Management also aims to maintain a capital structure that ensures the
lowest cost of capital 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 were as follows:
30 June 2018 31 December 2017
Gearing ratio 56.36% 55.57%
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
111
IX Disclosure of fair value
1. The fair value of financial assets and liabilities recorded in fair value
Fair value at period end
Level 1 Level 2 Level 3 Total
Financial assets
available-for-sale
- - 13685760.00 13685760.00
（1）Debt investment - - - -
（2）Equity investment - - 13685760.00 13685760.00
（3）Others - - - -
The results of fair value measurement are categorized within the fair value hierarchy described as
follows based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair
value are observable either directly or indirectly; and
Level 3: techniques which use inputs which have a significant effect on the recorded fair value that
are not based on observable market data.
(1) Assets that are measured at fair value on a recurring basis
The Group has no assets that are measured at fair value on a recurring basis.
(2) Assets that are measured at fair value on a non-recurring basis
The Group has no assets that are measured at fair value on a non-recurring basis.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
112
X. Related party relationships and transactions (Continued)
1. Parent
Registered
address Nature of business
Share
capital
(RMB’0000)
Proportion of
ownership
interest in the
Company
Proportion of
voting power
in the
Company
Sinopharm
Group Shanghai
Industrial investment holding trustee of a
pharmaceutical enterprise assets
reorganization distribution and retail of
medicines and pharmaceutical products etc. 276709.51 56.06% 56.06%
The ultimate controlling party of the Company is CNPGC.
2. Subsidiaries
Refer to Note VII (1) for details of subsidiaries.
3. Associates
Refer to Note VII (2) for details of associates.
Company name Related party relationships
Shenzhen Main Luck Pharmaceutical Co. Ltd. Associate
Sinopharm Group Zhijun(Shenzhen) Pharmaceutical Co. Ltd. Associate
Shenzhen Zhijun Pharmaceutical Trade Co. Ltd. Associate
Sinopharm Group Zhijun(Shenzhen) Pingshan Pharmaceutical Co. Ltd. Associate
Shanghai Modern Pharmaceutical Co. Ltd. (Modern Pharmaceutical) Associate
Sinopharm Group Zhijun(Suzhou) Pharmaceutical Co. Ltd. Associate
Shanghai Dingqun Enterprise Management Consulting Co. Ltd. Associate
Sinopharm Jienuo Medical Treatment Sevice Guangdong Co. Ltd. Associate
Shanghai Beiyi Guoda pharmaceutical Co. Ltd. Associate
Shanghai Liyi Drug Store Co.Ltd Associate
Dongyuan accord pharmaceutical chain Co. Ltd. Associate
4. Other related parties
Company name Related party relationships
China Otsuka Pharmaceutical Co. Ltd. Associate of CNPGC
Fresenius Kabi Huarui Pharmaceuticals Co. Ltd. Associate of CNPGC
Changchun Changsheng Gene Pharmaceutical Co. Ltd. Associate of CNPGC
Shenzhen Wanwei Medicine trading Co. Ltd.Subsidiary of Main Luck
Pharmaceutical
Sinopharm Holding Financing Lease Co. Ltd. Associate of Sinopharm Group
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
113
Company name Related party relationships
China Otsuka Pharmaceutical Co. Ltd. Associate of CNPGC
Fresenius Kabi Huarui Pharmaceuticals Co. Ltd. Associate of CNPGC
Changchun Changsheng Gene Pharmaceutical Co. Ltd. Associate of CNPGC
Shenzhen Wanwei Medicine trading Co. Ltd.Subsidiary of Main Luck
Pharmaceutical
Yichang Humanwell Pharmaceutical Co. Ltd. Associate of Sinopharm Group
Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co. Ltd. Associate of Sinopharm Group
Sinopharm Health Online Co. Ltd.. Associate of Sinopharm Group
Shanghai Guoda Lingyun Pharmacy Co. Ltd. Associate of Sinopharm Group
Sichuan Kang Daxin Pharmaceutical Co. Ltd Associate of Sinopharm Group
Hubei Medical Group Co. Ltd. Associate of Sinopharm Group
Shanghai Fosun Pharmaceutical (Group) Co. Ltd.("Fosun Pharm")
Shareholder who has significant
influence over Sinopharm Group
Chongqing Yaoyou Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm
Sichuan Hexin Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm
Shanghai Chaohui Pharmecurical Co. Ltd. Subsidiary of Fosun Pharm
Tibet Yaopharma Co. Ltd. Subsidiary of Fosun Pharm
Shenyang Hongqi Pharmaceutical 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 AoHong Pharmaceuticals Co. Ltd. Subsidiary of Fosun Pharm
Hunan Dongting Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm
Suzhou Erye Pharmaceutical Limited Company Subsidiary of Fosun Pharm
Foshan Chancheng District Central Hospital Subsidiary of Fosun Pharm
Foshan Chanyixing Medicine Development Co Ltd. Subsidiary of Fosun Pharm
Foshan Chancheng Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm
Shenzhen Hengsheng Hospital Subsidiary of Fosun Pharm
Guilin South pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm
Shanghai Transfusion Technology Co. Ltd. Subsidiary of Fosun Pharm
Jiangsu Huanghe Pharmaceutical Co. Ltd. Subsidiary of Fosun Pharm
Jiangsu Fuxing Pharmaceutical Trading Co. Ltd. Subsidiary of Fosun Pharm
Group Financial Co.Group Financial Co. Controlled by CNPGC
Sinopharm Group Guangdong Medicine Device Co. Ltd. Controlled by CNPGC
Huayi Pharmaceutical Co. Ltd. Controlled by CNPGC
Sichuan Jiangyouzhongbafuzi Technology Development Co. Ltd. Controlled by CNPGC
Guizhou Tongjitang Pharmaceutical Co. Ltd. Controlled by CNPGC
Anhui Jingfang Pharmaceutical Co. Ltd. Controlled by CNPGC
Guangdong Medi-World Pharmaceutical Co. Ltd. Controlled by CNPGC
Shandong Lu Ya Pharmaceutical Co. Ltd. Controlled by CNPGC
Foshan Fengliaoxing Pharmaceutical Co. Ltd. Controlled by CNPGC
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
114
Company name Related party relationships
China Otsuka Pharmaceutical Co. Ltd. Associate of CNPGC
Fresenius Kabi Huarui Pharmaceuticals Co. Ltd. Associate of CNPGC
Changchun Changsheng Gene Pharmaceutical Co. Ltd. Associate of CNPGC
Shenzhen Wanwei Medicine trading Co. Ltd.Subsidiary of Main Luck
Pharmaceutical
Winteam Pharmaceutical Group Ltd. Controlled by CNPGC
Chengdu Rongsheng Pharmacy Co. Ltd. Controlled by CNPGC
Lanzhou Institute of Biological Products Co. Ltd. Controlled by CNPGC
Shantou Jinshi Powder Injection Co. Ltd. Controlled by CNPGC
China National Pharmaceutical Industry Co. Ltd. Controlled by CNPGC
Sinopharm Group Weiqida Medicine 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
Wuhan Zhonglian Pharmaceutical Group Co. Ltd. Controlled by CNPGC
The Fourth Pharmaceutical Co. Ltd. of Zhonglian Group Controlled by CNPGC
Sinopharm Chuan Kang Pharmaceutical Co. Ltd. Controlled by CNPGC
China National Pharmaceutical Foreign Trade Corporation Controlled by CNPGC
Sinopharm Group Yibin Pharmaceuticals Co. Ltd. Controlled by CNPGC
Sinopharm Zhuhai Medical Instrument Co. Ltd. Controlled by CNPGC
Sinopharm Fujian Medical Examination Co. Ltd. Controlled by CNPGC
Beijing Huasheng Pharmaceutical Biotechnology Development Co. Ltd. Controlled by CNPGC
Beijing Huamiao Pharmaceutical Co. Ltd. Controlled by CNPGC
Sinopharm Xinjiang Pharmaceutical Co. Ltd. Controlled by CNPGC
Sinopharm Holding Sanyi Medicine (Wuhu) Co. Ltd. Controlled by CNPGC
Sinopharm Shantou Jinshi Pharmaceutical Co. Ltd. Controlled by CNPGC
Sinopharm Hebei Medical Instrument Co. Ltd. Controlled by CNPGC
Sinopharm Fengliaoxing (Foshan) Medicines Co. Ltd. Controlled by CNPGC
China National Scientific Instruments & Materials Imp/Exp Shenzhen Co. Ltd. Controlled by CNPGC
CMDC Guizhou Qiannan Co. Ltd. Controlled by CNPGC
Fujian CMDC Co. Ltd. Controlled by CNPGC
Sinopharm Fengliaoxing Medical Hospital Co. Ltd. Controlled by CNPGC
Beijing Tiantan Biological Products Co. Ltd. Controlled by CNPGC
Sinopharm Guangdong Medical Examination Co. Ltd. Controlled by CNPGC
Sinopharm Group Shanghai Medicine Device Co. Ltd. Controlled by CNPGC
Foshan Dezhong Pharmaceutical Co. Ltd. Controlled by CNPGC
Chengdu Institute of Biological Products Co. Ltd. Controlled by CNPGC
China National of Traditional&Herbal Medicine Co. Ltd. Controlled by CNPGC
Sinopharm Chongqing Pharmaceutical and Medical Industry Design Institute Controlled by CNPGC
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
115
Company name Related party relationships
China Otsuka Pharmaceutical Co. Ltd. Associate of CNPGC
Fresenius Kabi Huarui Pharmaceuticals Co. Ltd. Associate of CNPGC
Changchun Changsheng Gene Pharmaceutical Co. Ltd. Associate of CNPGC
Shenzhen Wanwei Medicine trading Co. Ltd.Subsidiary of Main Luck
Pharmaceutical
Sinopharm (Guangzhou) Medical Equipment Co. Ltd. Controlled by CNPGC
China Sinopharm International Corporation Controlled by CNPGC
Shanghai Shangsheng Biological Products Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tianjin Binhai Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Shanghai Tongyu Information Technology Co. Ltd. Controlled by Sinopharm Group
Guorun Medical Supply Chain Services (Shanghai) 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 Holding Hunan Co. Ltd. Controlled by Sinopharm Group
China National Medicines Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group Guorui Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Beijing Huahong Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Sub Marketing Center Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Henan 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 Dezhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hainan Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Fujian Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Guizhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Lianyungang Co. Ltd. Controlled by Sinopharm Group
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Lerentang Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Shijiazhuang Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Xingsha Pharmaceuticals (Xiamen) Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Co. Ltd. Controlled by Sinopharm Group
Sinopharm Le-Ren-Tang Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shenyang Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yangzhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Lunan Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Beijing Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hulun Buir Co. Ltd. Controlled by Sinopharm Group
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
116
Company name Related party relationships
China Otsuka Pharmaceutical Co. Ltd. Associate of CNPGC
Fresenius Kabi Huarui Pharmaceuticals Co. Ltd. Associate of CNPGC
Changchun Changsheng Gene Pharmaceutical Co. Ltd. Associate of CNPGC
Shenzhen Wanwei Medicine trading Co. Ltd.Subsidiary of Main Luck
Pharmaceutical
Sinopharm Holding Inner Mongolia Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Pingdingshan Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jiangsu Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xiamen Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Suzhou Co. Ltd. Controlled by Sinopharm Group
Shanghai Merro Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Changzhou Medical Logistics Center Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Changzhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Ningxia Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanxi Instrument Branch Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Wuxi Co. Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Hebei Medical Instrument Trade Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Dalian Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jinan Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tianjin Distribution Center Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Donghong Medical (Shanghai) Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yancheng Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jinzhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Shanghai Likang Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Rizhao Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Putian Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinjiang Xinte Karamay Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group Shanxi Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Chengdu Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Quanzhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Kashi New & Special Drugs Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Anhui Co. Ltd. Controlled by Sinopharm Group
Beijing Tongyu Information Technology Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Ulanqab Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hubei Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zhihui Minsheng (Tianjin) Medicine Co. Ltd. Controlled by Sinopharm Group
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
117
Company name Related party relationships
China Otsuka Pharmaceutical Co. Ltd. Associate of CNPGC
Fresenius Kabi Huarui Pharmaceuticals Co. Ltd. Associate of CNPGC
Changchun Changsheng Gene Pharmaceutical Co. Ltd. Associate of CNPGC
Shenzhen Wanwei Medicine trading Co. Ltd.Subsidiary of Main Luck
Pharmaceutical
Sinopharm Holding Shanxi Jincheng Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zhejiang Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Changsha Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Nanping Newforce Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yangzhou Biological Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Taizhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Wende Medicine Nanjing Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Dalian Hecheng Co. Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Qinhuangdao Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tongliao Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jiangxi Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group Chemical Reagent Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Ordos Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Tianjin North Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yongzhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jinhua Co. Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Tangshan Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Chongqing Co. Ltd. Controlled by Sinopharm Group
Sinopharm Prospect Dentech (Beijing) Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Biopharmaceutical (Tianjin) Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group Medicine Logistic Co. Ltd. Controlled by Sinopharm Group
China National Pharmaceutical Logistics Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hubei Hongyuan Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Wuhu Co. Ltd.. Controlled by Sinopharm Group
Sinopharm Holding Lu'an Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Suzhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jiling Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Liaocheng Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Yunnan Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Honghe Co. Ltd. Controlled by Sinopharm Group
Yuxi Sinopharm Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hainan Hongyi Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Gansu Co. Ltd. Controlled by Sinopharm Group
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
118
Company name Related party relationships
China Otsuka Pharmaceutical Co. Ltd. Associate of CNPGC
Fresenius Kabi Huarui Pharmaceuticals Co. Ltd. Associate of CNPGC
Changchun Changsheng Gene Pharmaceutical Co. Ltd. Associate of CNPGC
Shenzhen Wanwei Medicine trading Co. Ltd.Subsidiary of Main Luck
Pharmaceutical
Sinopharm Holding Longyan Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Ningde Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Nanchang Pharmacy 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 Guizhou Medical Equiment Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jilin Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Jilin Pharmacy Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Siping Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Wenzhou Co. Ltd Controlled by Sinopharm Group
Sinopharm Holding Nantong Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Heilongjiang Co. Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Hengshui Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Lerentang Baoding Medicine Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Qinghai Co. Ltd. Controlled by Sinopharm Group
Sinopharm Sichuan Pharmaceutical Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Zhangzhou Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Huaian Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xiangyang Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinxiang Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hongrun Medical Business Service (Shanghai) Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Huangshi Co. Ltd. Controlled by Sinopharm Group
Sinopharm Xinxiang Chain Store Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Qianxinan 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
Xinjiang Baitong Property Service Co. Ltd. Controlled by Sinopharm Group
Sinopharm Group Shanghai Management Consulting Branch Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Huaideju Pharmaceutical (Xiamen) Co. Ltd. Controlled by Sinopharm Group
Pudong New Area of Shanghai Pharmaceutical Medicine Ltd. Controlled by Sinopharm Group
Sinopharm Holding Xinyu Co. Ltd. Controlled by Sinopharm Group
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain Company
Ltimited. Controlled by Sinopharm Group
Sinopharm Holding Jiaozuo Co. Ltd. Controlled by Sinopharm Group
Sinopharm Xinjiang Korla Pharmaceutical Co. Ltd. Sinopharm Xinjiang Korla Controlled by Sinopharm Group
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
119
Company name Related party relationships
China Otsuka Pharmaceutical Co. Ltd. Associate of CNPGC
Fresenius Kabi Huarui Pharmaceuticals Co. Ltd. Associate of CNPGC
Changchun Changsheng Gene Pharmaceutical Co. Ltd. Associate of CNPGC
Shenzhen Wanwei Medicine trading Co. Ltd.Subsidiary of Main Luck
Pharmaceutical
Pharmaceutical Co. Ltd.
Beijing Golden Elephant Fosun Pharmaceutical Co. Ltd Non-controlling interest of a subsidiary
Hunan Minshengtang Investment Co. Ltd. Non-controlling interest of a subsidiary
Shenyang Pharmaceutical Co. Ltd Non-controlling interest of a subsidiary
Lerentang Investment Group Co. Ltd. Non-controlling interest of a subsidiary
Pingdingshan Pusheng Pharmaceutical Co. Ltd. Non-controlling interest of a subsidiary
Linyi Medical Group Co. Ltd. Non-controlling interest of a subsidiary
Huang Lijin Huang Lijin Non-controlling interest of a subsidiary
Guangdong Jiyuantang Development Co. Ltd. Non-controlling interest of a subsidiary
Shenzhen Jiufeng Investment Co. Ltd. Non-controlling interest of a subsidiary
Taishan Qunkang Pharmacy Co. Ltd. Non-controlling interest of a subsidiary
Zhang Zhenfang Zhang Zhenfang Non-controlling interest of a subsidiary
Hangzhou Xihu Business Group Corporation Non-controlling interest of a subsidiary
Guangxi Deyiyuan Medical Investment Center (Limited Partnership) Non-controlling interest of a subsidiary
Baise Jianan Medicine Chain Co. Ltd. Non-controlling interest of a subsidiary
Heyuan Mairui Trading Co. Ltd. Non-controlling interest of a subsidiary
Wang Yang Wang Yang
Family member of the non-controlling
shareholder of a subsidiary
Gu Jinfang Gu Jinfang
Controller of non-controlling interest of
a subsidiary
Nanjing Yuanguang Trading Co. Ltd.
Controlled by non-controlling interest
of a subsidiary
Taishan Xiangranhui Trade Co. Ltd
Controlled by non-controlling interest
of a subsidiary
Shaoguan Wujiang District Muyang Medicine Information Consultant Co. Ltd.
Controlled by non-controlling interest
of a subsidiary
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
120
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 transaction 2018 2017
Sinopharm Holding Sub Marketing Center Co.Ltd. Purchase of goods 515167083.81 503647182.73
China National Medicines Co. Ltd. Purchase of goods 237636101.58 192328445.40
Sinopharm Holding Shanxi Co. Ltd.Purchase of goods 156466334.83 105080688.10
Sinopharm Lingyun Biopharmaceutical
(Shanghai) Co. Ltd. Purchase of goods 127271627.94 100523284.41
Sinopharm Group Co. Ltd. Purchase of goods 95150353.69 246228882.09
Fresenius Kabi Huarui Pharmaceuticals Co. Ltd.
Purchase of goods 90145795.30 86204005.23
Sinopharm Holding Shanxi Co. Ltd.Purchase of goods 83517976.15 75921179.25
Sinopharm Le-Ren-Tang Medicine Co. Ltd.Purchase of goods 79259083.01 79720630.75
Sinopharm Holding Shenyang Co. Ltd.Purchase of goods 63689297.73 48659442.34
Lanzhou Institute of Biological Products Co. Ltd. Purchase of goods 52860000.00 30600000.00
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co. Ltd. Purchase of goods 39872567.55 31547957.86
Sinopharm Holding Lunan Co. Ltd.Purchase of goods 39298409.81 22663023.60
Jiangsu Wanbang Pharmacy Marketing Co. Ltd.Purchase of goods 33623739.18 34629877.72
Sinopharm Holding Beijing Co. Ltd.Purchase of goods 23822442.41 21094588.81
Jinzhou AoHong Pharmaceuticals Co. Ltd.Purchase of goods 23749213.17 -
Sinopharm Holding Yangzhou Co. Ltd.Purchase of goods 23005232.97 25252127.28
Sinopharm Holding Hunan Co. Ltd.Purchase of goods 22435971.65 9503424.67
Chongqing Yaoyou Pharmaceutical Co. Ltd.
Purchase of goods 21508305.23 16356695.13
Sinopharm Holding Inner Mongolia Co. Ltd.Purchase of goods 18984953.29 17911878.26
Sinopharm Holding Lerentang Pharmaceutical
Co. Ltd. Purchase of goods 16967826.05 14552984.64
Winteam Pharmaceutical Group Ltd.Purchase of goods 15331219.12 4095720.68
Sinopharm Holding Pingdingshan Co. Ltd.Purchase of goods 14446097.55 17629734.37
Shenzhen Main Luck Pharmaceutical Co. Ltd. Purchase of goods 14173934.35 18163682.64
China National Pharmaceutical Foreign Trade
Corporation
Purchase of goods 13645110.09 2074302.37
Sinopharm Holding Jiangsu Co. Ltd. Purchase of goods 12276533.11 13721003.83
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
121
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 transaction 2018 2017
Sinopharm Lerentang Shijiazhuang Medicine Co.Ltd. Purchase of goods 10465965.70 14140996.60
Shenzhen Wanwei Medicine Trading Co. Ltd. Purchase of goods 10428796.93 12411303.09
Suzhou Erye Pharmaceutical Limited Company Purchase of goods 9554764.03 -
Sinopharm Holding Xiamen Co. Ltd. Purchase of goods 9246131.91 9257962.72
Sinopharm Holding Fujian Co. Ltd. Purchase of goods 9171420.33 11822333.08
Chengdu Rongsheng Pharmacy Co. Ltd. Purchase of goods 8958139.00 10163100.00
Sinopharm Holding Shanxi Instrument Branch
Co. Ltd. Purchase of goods 7410730.23 3895843.72
Sinopharm Holding Henan Co. Ltd. Purchase of goods 6575293.46 2394853.44
Sinopharm Holding Suzhou Co. Ltd.Purchase of goods 6247553.79 8828494.63
Sinopharm Holding Ningxia Co. Ltd. Purchase of goods 6113483.50 5691842.49
Sinopharm Chuan Kang Pharmaceutical Co. Ltd. Purchase of goods 5794907.91 -
Sinopharm Group Zhijun (Shenzhen) PingShan
Pharmaceutical Co. Ltd. Purchase of goods 5519530.03 4251111.59
Sinopharm Holding Fuzhou Co. Ltd. Purchase of goods 4703935.11 3003163.81
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co. Ltd. Purchase of goods 4670243.13 2222406.63
Sinopharm Holding Changzhou Medical Logistics
Center Co. Ltd. Purchase of goods 4530675.45 7317867.44
Yichang Humanwell Pharmaceutical Co. Ltd.Purchase of goods 4513583.78 4109780.72
Sinopharm Xingsha Pharmaceuticals (Xiamen)
Co. Ltd. Purchase of goods 3676515.83 933727.04
Sinopharm Holding Jinan Co. Ltd. Purchase of goods 3621583.69 1832235.96
Sinopharm Holding Xinjiang Special Drugs
Western Pharmaceutical Co. Ltd. Purchase of goods 3614733.64 4544410.21
Sinopharm Holding Beijing Huahong Co. Ltd. Purchase of goods 3550261.18 3843243.29
Sinopharm Group Guorui Medicine Co. Ltd. Purchase of goods 3735052.72 65812.60
Shandong Lu Ya Pharmaceutical Co. Ltd. Purchase of goods 2909280.05 -
Sinopharm Holding Changzhou Co. Ltd. Purchase of goods 2900395.11 7051762.45
Tibet Yaopharma Co. Ltd. Purchase of goods 2761512.07 -
Sinopharm Holding Wuxi Co. Ltd. Purchase of goods 2453393.36 2736138.04
Pudong New Area of Shanghai Pharmaceutical
Medicine Ltd. Purchase of goods 2298554.23 -
Sinopharm Holding Jinzhou Co. Ltd. Purchase of goods 2249516.98 1199028.41
Sinopharm Holding Beijing Kangchen Bio-
Pharmaceutical Co. Ltd. Purchase of goods 2240460.54 3179370.11
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
122
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 transaction 2018 2017
Shanghai Merro Pharmaceutical Co. Ltd. Purchase of goods 2016321.47 8681736.93
Foshan Fengliaoxing Pharmaceutical Co. Ltd. Purchase of goods 2015702.90 320789.59
Sinopharm Holding Shanghai Likang
Pharmaceutical Co. Ltd. Purchase of goods 2003690.59 1111214.17
Sinopharm Lerentang Hebei Medical Instrument
Trade Co. Ltd. Purchase of goods 1889376.44 2446393.63
Beijing Golden Elephant Fosun Pharmaceutical
Co. Ltd. Purchase of goods 1799439.15 2203729.99
Sinopharm Holding Tianjin Co. Ltd. Purchase of goods 1598345.37 1531041.56
Sinopharm Group Rongsheng Pharmaceutical
Co. Ltd. Purchase of goods 1574958.10 367123.16
Guizhou Tongjitang Pharmaceutical Co. Ltd. Purchase of goods 1536282.82 783375.17
Sinopharm Holding Xinjiang Xinte Karamay
Pharmaceutical Co. Ltd. Purchase of goods 1451522.48 866286.88
Sinopharm Holding Yancheng Co. Ltd. Purchase of goods 1402672.48 1321450.59
Sichuan Hexin Pharmaceutical Co. Ltd. Purchase of goods 1094458.11 (288.55)
Shenyang Hongqi Pharmaceutical Co. Ltd. Purchase of goods 1058670.33 509884.44
Shanghai Shyndec Pharmaceutical Marketing
Co. Ltd. Purchase of goods 995510.64 1019792.18
Sinopharm Group (Tianjin) Eastern Bokang
Pharmaceutical Co. Ltd. Purchase of goods 921863.31 1117427.20
Sinopharm Holding Putian Co. Ltd. Purchase of goods 895532.89 1060202.09
Sinopharm Holding Dalian Co. Ltd. Purchase of goods 769041.46 1933096.74
Hutchison Whampoa Sinopharm Pharmaceuticals
(Shanghai) Co. Ltd. Purchase of goods 763625.20 321124.91
Sinopharm Holding Shandong Co. Ltd. Purchase of goods 718163.95 -
Sinopharm Holding Hulun Buir Co. Ltd. Purchase of goods 713341.49 18397145.25
Huayi Pharmaceutical Co. Ltd. Purchase of goods 695732.52 -
Sinopharm Holding Donghong Medical
(Shanghai) Co. Ltd. Purchase of goods 615989.84 1398400.16
Sinopharm Holding Rizhao Co. Ltd. Purchase of goods 586905.03 1070541.55
Sinopharm Holding Tongliao Co. Ltd. Purchase of goods 584726.70 74569.23
Guangdong Medi-World Pharmaceutical Co. Ltd. Purchase of goods 584223.16 -
Sinopharm Holding Anhui Co. Ltd. Purchase of goods 539726.50 251374.86
Sinopharm Holding Quanzhou Co. Ltd. Purchase of goods 509662.25 693843.09
Sinopharm Holding Yangzhou Biological Medicine
Co. Ltd. Purchase of goods 444000.00 -
Wuhan Zhonglian Pharmaceutical Group Co. Ltd.Purchase of goods 435887.39 583749.71
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
123
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 transaction 2018 2017
Sinopharm Holding Changsha Co. Ltd. Purchase of goods 414897.11 -
Sinopharm Holding Kashi New & Special Drugs
Co. Ltd. Purchase of goods 400421.76 488097.76
Hunan Dongting Pharmaceutical Co. Ltd.Purchase of goods 340441.92 135686.75
Sinopharm Holding Beijing Tianxing Puxin
Biological Medical Co. Ltd. Purchase of goods 335484.62 72490.93
Shanghai Chaohui Pharmaceutical Co. Ltd. Purchase of goods 330363.62 -
Shantou Jinshi Powder Injection Co. Ltd.Purchase of goods 330119.93 -
Sinopharm Holding Ulanqab Co. Ltd.Purchase of goods 308191.79 142060.09
Sinopharm Holding Zhejiang Co. Ltd.Purchase of goods 289516.54 -
Sinopharm Holding Dalian Hecheng Co. Ltd.Purchase of goods 262027.99 -
China Otsuka Pharmaceutical Co. Ltd. Purchase of goods 241236.29 2811496.30
Sinopharm Holding Dezhou Co. Ltd.Purchase of goods 228731.52 228117.43
Shanghai Modern Hasen (Shangqiu)
Pharmaceutical Co. Ltd. Purchase of goods 200544.82 -
Sinopharm Lerentang Qinhuangdao Medicine
Co. Ltd. Purchase of goods 193277.45 116087.32
China National Pharmaceutical Industry Co. Ltd.
Purchase of goods 188275.39 80821.92
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co. Ltd. Purchase of goods 173484.94 923.08
Sinopharm Group Southwest Medicine Co. Ltd.Purchase of goods 153389.66 -
Sinopharm Holding Lianyungang Co. Ltd.Purchase of goods 153111.27 -
Shanghai Modern Pharmaceutical Co. Ltd.(Modern Pharmaceutical) Purchase of goods 142521.39 -
Sinopharm Group Yibin Pharmaceuticals Co. Ltd.Purchase of goods 121618.26 4666.51
Sinopharm Shantou Jinshi Pharmaceutical Co.Ltd. Purchase of goods 109039.96 55299.53
Sinopharm Holding Hainan Co. Ltd.Purchase of goods 97450.60 -
Sinopharm Group Shanxi Co. Ltd.Purchase of goods 87596.90 862803.50
Sinopharm Holding Zhihui Minsheng (Tianjin)
Medicine Co. Ltd.Purchase of goods 80410.58 -
Sinopharm Holding Guizhou Co. Ltd. Purchase of goods 73729.75 -
Sinopharm Holding Taizhou Co. Ltd. Purchase of goods 73304.23 -
Sinopharm Holding Biopharmaceutical (Tianjin)
Co. Ltd. Purchase of goods 63648.72 (1108.71)
Sinopharm Holding Sanyi Medicine (Wuhu) Co.Ltd.Purchase of goods 58952.78 102930.09
Sichuan Jiangyouzhongbafuzi Technology
Development Co. Ltd. Purchase of goods 49297.30 22300.88
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
124
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 transaction 2018 2017
Sinopharm Holding Yongzhou Co. Ltd. Purchase of goods 38141.67 22688.00
Chongqing Haisiman Pharmaceutical Co. Ltd. Purchase of goods 33895.38 22055921.01
Sinopharm Group Weiqida Medicine Co. Ltd.Purchase of goods 31965.52 -
Sinopharm Holding Wende Medicine Nanjing
Co. Ltd. Purchase of goods 27310.34 -
The Fourth Pharmaceutical Co. Ltd. of
Zhonglian Group Purchase of goods 24295.86 112080.00
Sinopharm Lerentang Tangshan Medicine Co.Ltd. Purchase of goods 20598.94 14862.40
Sinopharm Holding Nanping Newforce Co. Ltd.Purchase of goods 15315.32 -
Sinopharm Holding Shanxi Jincheng Co. Ltd.Purchase of goods 11481.46 -
Sinopharm Zhuhai Medical Instrument Co. Ltd.Purchase of goods 9564.95 -
Sinopharm Hebei Medical Instrument Co. Ltd. Purchase of goods 6533.84 29467.36
Sinopharm Prospect Dentech (Beijing) Co. Ltd.Purchase of goods 4073.48 2101.14
Beijing Huamiao Pharmaceutical Co. Ltd.
Purchase of goods 2649.79 -
Sinopharm Group Guangdong Medicine Device
Co. Ltd. Purchase of goods 1770.86 -
Sinopharm Holding Jinhua Co. Ltd.Purchase of goods 38.80 15569.23
Sinopharm Xinjiang Pharmaceutical Co. Ltd.Purchase of goods 12.82 -
Sinopharm Holding Tianjin Distribution Center
Co. Ltd. Purchase of goods - 1452364.83
Sinopharm Holding Chengdu Co. Ltd. Purchase of goods - 809743.62
Sinopharm Fujian Medical Examination Co.Ltd. Purchase of goods - 680423.93
Beijing Huasheng Pharmaceutical
Biotechnology Development Co. Ltd. Purchase of goods - 219374.28
Guizhou Longlife Pharmacertical Co. Ltd.Purchase of goods - 188738.84
Beijing Tongyu Information Technology Co.
Ltd. Purchase of goods - 175351.00
Sinopharm Holding Hubei Co. Ltd. Purchase of goods - 137617.16
Sinopharm Holding Jiangxi Co. Ltd. Purchase of goods - 69941.45
Sinopharm Group Chemical Reagent Co. Ltd. Purchase of goods - 46153.84
Sinopharm Holding Tianjin North Medicine Co.Ltd. Purchase of goods - 23066.70
Sinopharm Holding Chongqing Co. Ltd.Purchase of goods - 9230.76
Sinopharm Fengliaoxing (Foshan) Medicines
Co. Ltd. Purchase of goods - 2332.96
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
125
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 transaction 2018 2017
China National Scientific Instruments &
Materials Imp/Exp Shenzhen Co. Ltd. Purchase of goods - (1598611.60)
Sinopharm Holding Ordos Co. Ltd. Purchase of goods (10667.01) 35826.67
Anhui Jingfang Pharmaceutical Co. Ltd.
Purchase of goods (13269.30) 460506.20
Sinopharm Group Medicine Logistic Co. Ltd.Storage and transport cost 6666668.71 7395406.16
Sinopharm Health Online Co. Ltd.
Consulting service fee 6085895.22 3071581.63
Shanghai Beiyi Guoda pharmaceutical Co.Ltd. Consulting service fee 1263962.22 589442.86
Shanghai Tongyu Information Technology Co.Ltd.Information system access
fee 98113.21 98113.21
China National Pharmaceutical Logistics Co.
Ltd. Storage and transport cost 44030.65 28856.97
Sinopharm Holding Tianjin Binhai
Pharmaceutical Co. Ltd.Information system access
fee 7075.47 -
Sinopharm Group Co. Ltd.
Consulting service fee - 5982.51
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
126
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
Related party
Type of
transaction 2018 2017
Sinopharm Group Co. Ltd. Sale of goods 54514170.65 5593686.39
Shanghai Beiyi Guoda pharmaceutical Co. Ltd. Sale of goods 49727338.63 51483490.91
Foshan Chancheng Pharmaceutical Co. Ltd. Sale of goods 42375781.14 33011056.01
Sinopharm Holding Hainan Co. Ltd. Sale of goods 29338160.25 36385390.99
Sinopharm Holding Hainan Hongyi Co. Ltd. Sale of goods 24127524.50 25628473.91
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co. Ltd. Sale of goods 17376808.71 13060212.97
Sinopharm Holding Wenzhou Co. Ltd. Sale of goods 10830194.79 16144827.68
Pudong New Area of Shanghai Pharmaceutical
Medicine Ltd. Sale of goods 10524551.98
Beijing Golden Elephant Fosun
Pharmaceutical Co. Ltd. Sale of goods 9738902.57
9566003.52
Sinopharm Sichuan Pharmaceutical Co. Ltd. Sale of goods 9061104.38 37145400.72
Sinopharm Holding Sub Marketing Center Co.Ltd. Sale of goods 8970804.72
12124282.34
Sinopharm Holding Henan Co. Ltd. Sale of goods 8736054.45 15920365.63
Sinopharm Holding Nantong Co. Ltd. Sale of goods 8717338.95 10668342.56
Shenzhen Hengsheng Hospital Sale of goods 8215885.93
Sinopharm Le-Ren-Tang Medicine Co. Ltd. Sale of goods 7728482.84 29700260.69
Sinopharm Lingyun Biopharmaceutical
(Shanghai) Co. Ltd. Sale of goods 7489471.75
137615.38
Sinopharm Group (Tianjin) Eastern Bokang
Pharmaceutical Co. Ltd. Sale of goods 6837559.00
28222286.50
Sinopharm Holding Beijing Co. Ltd. Sale of goods 5770691.44 46330723.11
Sinopharm Holding Yunnan Co. Ltd. Sale of goods 5713012.18 13882513.85
Sinopharm Holding Yangzhou Co. Ltd. Sale of goods 5144530.81 4983173.28
Sinopharm Holding Beijing Huahong Co. Ltd. Sale of goods 4816641.92 18809022.65
Sinopharm Holding Shandong Co. Ltd. Sale of goods 4577546.05 54609405.93
Foshan Chancheng District Central Hospital Sale of goods 4504644.96 4152584.46
Sinopharm Holding Xinjiang Special Drugs
Western Pharmaceutical Co. Ltd. Sale of goods 4409528.78 2315354.12
Sinopharm Holding Hubei Co. Ltd. Sale of goods 3772162.27 36728642.88
Sinopharm Holding Shanxi Co. Ltd. Sale of goods 2577305.96 1347127.61
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
127
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
Related party
Type of
transaction 2018 2017
China National Medicines Co. Ltd. Sale of goods 1740716.75 2063573.21
Foshan Chanyixing Medicine Development Co
Ltd. Sale of goods 1450198.02 1405871.30
Sinopharm Holding Gansu Co. Ltd. Sale of goods 1353030.00 2884856.13
Sinopharm Holding Hunan Co. Ltd. Sale of goods 1308950.82 5020059.72
Sinopharm Holding Dalian Co. Ltd. Sale of goods 1263047.36 486071.84
Shanghai Merro Pharmaceutical Co. Ltd. Sale of goods 1223626.19 3234923.55
Sinopharm Holding Jilin Co. Ltd. Sale of goods 1172196.27 3009786.08
Sinopharm Holding Anhui Co. Ltd. Sale of goods 1168187.29 366059.49
Sinopharm Holding Guizhou Co. Ltd. Sale of goods 1042466.52 5972815.92
Sinopharm Holding Tianjin Co. Ltd. Sale of goods 1029758.40 8825649.05
Sinopharm Group Southwest Medicine Co.Ltd. Sale of goods 1006172.43 15591867.75
Sinopharm Holding Fujian Co. Ltd. Sale of goods 979220.98 6048503.32
Sinopharm Holding Zhejiang Co. Ltd. Sale of goods 921282.05 6829401.70
Sinopharm Holding Shanxi Co. Ltd. Sale of goods 917123.69 6299521.58
Hubei Medical Group Co. Ltd. Sale of goods 853130.68 -
Sinopharm Holding Shanghai Likang
Pharmaceutical Co. Ltd. Sale of goods 673847.93 4235.90
Yuxi Sinopharm Medicine Co. Ltd. Sale of goods 625927.21 -
Shanghai Guoda Lingyun Pharmacy Co. Ltd. Sale of goods 540476.78 713931.05
Sinopharm Group Shanxi Co. Ltd. Sale of goods 486510.78 844560.30
Sinopharm Holding Donghong Medical
(Shanghai) Co. Ltd. Sale of goods 448887.64 201902.45
Sinopharm Holding Changzhou Co. Ltd. Sale of goods 435840.01 -
Sinopharm Holding Jiangxi Co. Ltd. Sale of goods 371671.87 647485.30
Sinopharm Holding Wuxi Co. Ltd. Sale of goods 349203.27 215010.22
Sinopharm Holding Heilongjiang Co. Ltd. Sale of goods 324789.98 2720546.27
Sinopharm Holding Dalian Hecheng Co. Ltd. Sale of goods 301982.46 366975.51
Sinopharm Holding Ningxia Co. Ltd. Sale of goods 240539.93 6303526.27
Sinopharm Holding Inner Mongolia Co. Ltd. Sale of goods 239130.68 366510.94
Sinopharm Holding Chengdu Co. Ltd. Sale of goods 215685.18 1227783.73
Sinopharm Holding Yongzhou Co. Ltd. Sale of goods 203544.77 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
128
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
Related party
Type of
transaction 2018 2017
Sinopharm Holding Ulanqab Co. Ltd. Sale of goods 175775.17 92908.28
Sinopharm Holding Changzhou Medical
Logistics Center Co. Ltd. Sale of goods 175352.41 291901.64
Sinopharm Holding Qinghai Co. Ltd. Sale of goods 168653.68 1759644.99
Sinopharm Holding Chongqing Co. Ltd. Sale of goods 145147.69 125938.47
Sinopharm Holding Guizhou Medical Equiment
Co. Ltd. Sale of goods 133404.19 -
Sinopharm Holding Huaian Co. Ltd. Sale of goods 128653.00 440133.12
Sinopharm Holding Wuhu Co. Ltd. Sale of goods 127195.59 -
Sinopharm Holding Shenyang Co. Ltd. Sale of goods 103846.57 3907366.12
Sinopharm Holding Suzhou Co. Ltd. Sale of goods 103840.63 -
Sinopharm Holding Hubei Hongyuan Co. Ltd. Sale of goods 97162.40 -
Sinopharm Holding Jilin Pharmacy Co. Ltd. Sale of goods 91435.98 -
Sinopharm Group Zhijun (Shenzhen)
PingShan Pharmaceutical Co. Ltd. Sale of goods 79279.28 -
Sinopharm Holding Lu'an Co. Ltd. Sale of goods 66987.18 -
Sinopharm Holding Putian Co. Ltd. Sale of goods 64610.68 637366.11
Sinopharm Holding Tianjin North Medicine Co.Ltd. Sale of goods 58775.86 -
Sinopharm Holding Longyan Co. Ltd. Sale of goods 58172.99 114780.52
Sinopharm Holding Nanchang Pharmacy Co.Ltd. Sale of goods 54017.59 -
Dongyuan accord pharmaceutical chain
Co. Ltd. Sale of goods 39393.65 -
Sinopharm Holding Zunyi Co. Ltd. Sale of goods 35054.94 -
Sinopharm Holding Xinxiang Co. Ltd. Sale of goods 34164.62 -
Sinopharm Holding Huangshi Co. Ltd. Sale of goods 34025.78 87938.08
Sinopharm Holding Siping Co. Ltd. Sale of goods 26548.13 -
Sinopharm Holding Ningde Co. Ltd. Sale of goods 23864.90 603115.39
Sinopharm Holding Tongren Co. Ltd. Sale of goods 21011.20 -
Sinopharm Holding Hongrun Medical Business
Service (Shanghai) Co. Ltd. Sale of goods 19240.32 -
Sinopharm Holding Jiling Co. Ltd. Sale of goods 19035.54 -
Sinopharm Fengliaoxing Medical Hospital Co.Ltd. Sale of goods 16804.60 2175.11
Sinopharm Holding Liaocheng Co. Ltd. Sale of goods 15596.82 -
Fujian CMDC Co. Ltd. Sale of goods 13988.00 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
129
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
Related party
Type of
transaction 2018 2017
Sinopharm Lerentang Baoding Medicine Co.Ltd. Sale of goods 12991.45 -
CMDC Guizhou Qiannan Co. Ltd. Sale of goods 12712.58 -
Sinopharm Lerentang Hengshui Medicine Co.Ltd. Sale of goods 12108.38 -
Sinopharm Holding Honghe Co. Ltd. Sale of goods 9595.25 -
Sinopharm Zhuhai Medical Instrument Co.Ltd. Sale of goods 9119.70 -
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co. Ltd. Sale of goods 7617.49 -
Sinopharm Holding Fuzhou Co. Ltd. Sale of goods 6927.14 6073301.78
Sinopharm Holding Hulun Buir Co. Ltd. Sale of goods 4570.00 5955618.61
Hunan Minshengtang Investment Co. Ltd. Sale of goods - 4378542.02
Sinopharm Holding Quanzhou Co. Ltd. Sale of goods - 2300292.62
Sinopharm Holding Lunan Co. Ltd. Sale of goods - 1004572.65
Sinopharm Holding Zhangzhou Co. Ltd. Sale of goods - 750514.60
Sinopharm Holding Beijing Tianxing Puxin
Biological Medical Co. Ltd. Sale of goods - 598153.85
Sinopharm Group Guangdong Medicine
Device Co. Ltd. Sale of goods - 557307.70
Hutchison Whampoa Sinopharm
Pharmaceuticals (Shanghai) Co. Ltd. Sale of goods - 409246.96
China Otsuka Pharmaceutical Co. Ltd. Sale of goods - 153846.15
China National Scientific Instruments &
Materials Imp/Exp Shenzhen Co. Ltd. Sale of goods - 121846.14
Sinopharm Holding Xiangyang Co. Ltd. Sale of goods - 109542.99
Sinopharm Xinxiang Chain Store Co. Ltd. Sale of goods - 66445.13
Sichuan Kang Daxin Pharmaceutical Co. Ltd. Sale of goods - 33230.76
Beijing Tiantan Biological Products Co. Ltd. Sale of goods - 7692.31
Sinopharm Holding Qianxinan Co. Ltd. Sale of goods - 7478.63
Sinopharm Guangdong Medical Examination
Co. Ltd. Sale of goods - 802.05
China National Medicines Co. Ltd.
Transport and
storage
income 3580698.30 3785126.52
Sinopharm Group Medicine Logistic Co. Ltd.Transport and
storage
income 294804.62 1133089.80
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co. Ltd. Meal fee 294180.00 266360.00
Sinopharm Group Zhijun (Shenzhen)
PingShan Pharmaceutical Co. Ltd.Transport and
storage
income 122242.00 110434.27
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
130
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
Related party Type of transaction 2018 2017
Sinopharm Holding Shanxi Co. Ltd.
Consulting service
income 9433.96 28301.88
Guizhou Tongjitang Pharmaceutical Co. Ltd.
Consulting service
income 8285.71 -
Winteam Pharmaceutical Group Ltd.
Consulting service
income 2023.58 6580.11
Sinopharm Holding Shanxi Instrument Branch
Co. Ltd. Other income 1132.08 22830.19
Sinopharm Holding Sub Marketing Center Co.Ltd.
Consulting service
income - 51379.25
Shenzhen Wanwei Medicine Trading Co. Ltd.Transport and
storage income - 38808.71
Sinopharm Holding Shanxi Co. Ltd. Other income - 19433.96
Shenzhen Main Luck Pharmaceutical Co. Ltd.Transport and
storage income - 18277.71
Shenzhen Zhijun Pharmaceutical Trade Co.Ltd. Meal fee - 17461.63
Sinopharm Group (Tianjin) Eastern Bokang
Pharmaceutical Co. Ltd. Other income - 13650.94
Sinopharm Health Online Co. Ltd.
Consulting service
income - 10697.08
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
131
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(2) Related party transactions - leases
(a) As the lessor
Type of assets under
leases
Income from
leases in 2018
Income from leases in
2017
Sinopharm Group Zhijun (Shenzhen)
Pharmaceutical Co. Ltd.
Building
351428.58 637142.88
Shenzhen Zhijun Pharmaceutical Trade Co.Ltd.
Building
285714.30 -
China National Medicines Co. Ltd.
Building
45714.29 45714.29
Sinopharm Holding Sub Marketing Center Co.Ltd.
Building
- 22857.14
(b) As the lessee
Type of assets under
leases
Expenses from
leases in 2018
Expenses from leases
in 2017
Beijing Golden Elephant Fosun Pharmaceutical
Co. Ltd. Building 5461904.76 4780000.00
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co. Ltd. Building 3914124.76 4239560.37
Sinopharm Group Shanghai Co. Ltd. Building 3790426.48 3574131.14
Beijing Sinopharm Tianyuan Real Estate &
Property Management Co. Ltd. Equipment 3750000.00 3750000.00
Shenyang Pharmaceutical Co. Ltd. Building 3548219.75 3263809.62
Sinopharm Group Medicine Logistic Co. Ltd. Building 3539999.98 3539999.98
Lerentang Investment Group Co. Ltd. Building 2277892.99 2700000.00
Hunan Minshengtang Investment Co. Ltd. Building 2027673.99 1548351.84
Sinopharm Holding Yangzhou Co. Ltd. Building 1862857.14 1862857.14
Linyi Medical Group Co. Ltd. Building (Store) 1329859.65 -
Pingdingshan Pusheng Pharmaceutical Co. Ltd. Building 1277732.57 2402965.82
Guangdong Jiyuantang Development Co. Ltd. Building 1192864.11 611398.72
Nanjing Yuanguang Trading Co. Ltd. Building 866794.89 -
Linyi Medical Group Co. Ltd.
Building (Warehouse
Office) 706516.80 -
Shaoguan Wujiang District Muyang Medicine
Information Consultant Co. Ltd. Building 470161.86 470161.86
Taishan Xiangranhui Trade Co. Ltd Building 451963.88 -
Zhang Zhenfang Building 402499.98 402499.98
Wang Yang Building 262857.12 262857.12
Sinopharm Group Co. Ltd. Building 259915.02 259915.04
Sinopharm Holding Kashi New & Special Drugs
Co. Ltd. Building 236051.50 212179.81
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
132
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(2) Related party transactions – leases (Continued)
(b) As the lessee (continued)
Type of assets
under leases
Expenses from
leases in 2018
Expenses from
leases in 2017
Sinopharm Holding Beijing Co. Ltd. Building 235714.29 221944.46
Sinopharm Holding Shanxi Co. Ltd. Building 234017.16 297653.30
Sinopharm Holding Xinjiang Xinte Karamay
Pharmaceutical Co. Ltd. Building 184253.18 184253.33
Gu Jinhua Building 178800.00 596654.10
Beijing Sinopharm Tianyuan Real Estate &
Property Management Co. Ltd. Building 173523.81 254544.44
China National Medicines Co. Ltd. Building 153750.00 199563.50
Hangzhou Xihu Business Group Corporation Building 132823.81 126500.00
Sinopharm Xinjiang Pharmaceutical Co.Ltd. Building 130208.30 125000.04
Shenzhen Jiufeng Investment Co. Ltd. Building 89260.15 -
Taishan Qunkang Pharmacy Co. Ltd. Building 74170.32 -
Xinjiang Baitong Property Service Co. Ltd. Building 44581.16 34551.74
Sinopharm Group Zhijun (Shenzhen)
PingShan Pharmaceutical Co. Ltd. Park 35428.57 -
Sinopharm Holding Fujian Co. Ltd. Building 6571.38 1999.98
Huang Lijin Building - 819144.15
Taishan Qunkang Pharmacy Co. Ltd. Building - 81271.80
Linyi Medical Group Co. Ltd. Building - 2010483.23
Sinopharm Group Xinjiang Pharmaceutical
Co. Ltd. Building - 27000.00
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
133
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(3) Related party transactions – Financing
Related party Amount Inception Maturity Note
Borrowed from
Group Financial Co.
28864324.33 6.February.2018 31.March.2018
Discount on commercial
acceptance notes
Group Financial Co.
17745523.36 8.June.2018 31.July.2018
Discount on commercial
acceptance notes
Group Financial Co.
16989310.72 8.June.2018 2.July.2018
Discount on commercial
acceptance notes
Group Financial Co.
15000000.00 6.February.2018 9.May.2018
Discount on commercial
acceptance notes
Group Financial Co.
15000000.00 8.June.2018 9.July.2018
Discount on commercial
acceptance notes
Group Financial Co.
14421033.37 8.June.2018 31.July.2018
Discount on commercial
acceptance notes
Group Financial Co.
13299616.90 6.February.2018 9.June.2018
Discount on commercial
acceptance notes
Group Financial Co.
10427104.57 8.June.2018 9.August.2018
Discount on commercial
acceptance notes
Group Financial Co.
10000000.00 8.June.2018 25.July.2018
Discount on commercial
acceptance notes
Group Financial Co.
10000000.00 8.June.2018 25.August.2018
Discount on commercial
acceptance notes
Group Financial Co.
9154974.69 6.February.2018 31.March.2018
Discount on commercial
acceptance notes
Group Financial Co.
8492564.70 6.February.2018 31.March.2018
Discount on commercial
acceptance notes
Group Financial Co.
6533003.82 23.May.2018 27.June.2018
Discount on commercial
acceptance notes
Group Financial Co.
5824599.68 8.June.2018 31.July.2018
Discount on commercial
acceptance notes
Group Financial Co.
5494215.57 29.January.2018 25.July.2018
Discount on bank
acceptance notes
Group Financial Co.
5397269.57 8.June.2018 25.August.2018
Discount on commercial
acceptance notes
Group Financial Co.
4829908.00 6.February.2018 25.April.2018
Discount on commercial
acceptance notes
Group Financial Co.
3500231.10 23.May.2018 28.September.2018
Discount on bank
acceptance notes
Group Financial Co.
3203901.98 8.June.2018 25.July.2018
Discount on commercial
acceptance notes
Guorun Medical Supply
Chain Services
(Shanghai) Co. Ltd. 3200000.00 27.June.2018 26.June.2018 Short-term borrowings
Group Financial Co.
2985850.00 8.June.2018 25.July.2018
Discount on commercial
acceptance notes
Group Financial Co.
2586003.25 6.February.2018 9.April.2018
Discount on commercial
acceptance notes
Group Financial Co.
2500661.99 8.June.2018 9.July.2018
Discount on commercial
acceptance notes
Group Financial Co.
2000000.00 23.May.2018 28.June.2018
Discount on bank
acceptance notes
Group Financial Co.
2000000.00 23.May.2018 19.October.2018
Discount on bank
acceptance notes
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
134
Related party Amount Inception Maturity Note
Borrowed from
Group Financial Co.
1819472.43 29.January.2018 25.July.2018
Discount on bank
acceptance notes
Group Financial Co.
1782632.39 6.February.2018 31.May.2018
Discount on commercial
acceptance notes
Group Financial Co.
1727218.03 8.June.2018 31.August.2018
Discount on commercial
acceptance notes
Group Financial Co.
1721826.42 29.January.2018 26. August.2018
Discount on bank
acceptance notes
Group Financial Co.
1614923.40 29.January.2018 25.June.2018
Discount on bank
acceptance notes
Group Financial Co.
1567611.66 8.June.2018 31.July.2018
Discount on commercial
acceptance notes
Group Financial Co.
1424501.98 8.June.2018 3.November.2018
Discount on commercial
acceptance notes
Group Financial Co. 1350000.00 29.January.2018 27.June.2018
Discount on bank
acceptance notes
Group Financial Co. 1020299.50 6.February.2018 26.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 1009120.49 8.June.2018 30.September.2018
Discount on commercial
acceptance notes
Group Financial Co. 1000000.00 23.May.2018 30.July.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 23.May.2018 17.October.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 25.July.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 25.July.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 25.July.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 25.July.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 25.July.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 25.July.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 26.August.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 26.August.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 26.August.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 26.August.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 26.August.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 26.August.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 28.June.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 28.June.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 28.June.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 28.June.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 28.June.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 28.June.2018
Discount on bank
acceptance notes
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
135
Related party Amount Inception Maturity Note
Borrowed from
Group Financial Co. 1000000.00 29.January.2018 28.June.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 28.June.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 27.March.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 27.March.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 27.March.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 27.March.2018
Discount on bank
acceptance notes
Group Financial Co. 1000000.00 29.January.2018 27.March.2018
Discount on bank
acceptance notes
Group Financial Co. 999000.00 11.February.2018 30.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 30.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 27.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 27.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 27.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 31.May.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 31.May.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
136
Related party Amount Inception Maturity Note
Borrowed from
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 999000.00 11.February.2018 25.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 965711.76 29.January.2018 27.March.2018
Discount on bank
acceptance notes
Group Financial Co. 960382.84 23.May.2018 30.June.2018
Discount on bank
acceptance notes
Group Financial Co. 881196.30 23.May.2018 13.July.2018
Discount on bank
acceptance notes
Group Financial Co. 866989.11 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 832908.92 23.May.2018 20.October.2018
Discount on bank
acceptance notes
Group Financial Co. 773422.00 8.June.2018 26.July.2018
Discount on commercial
acceptance notes
Group Financial Co. 762190.80 6.February.2018 26.May.2018
Discount on commercial
acceptance notes
Group Financial Co. 726717.56 23.May.2018 26.July.2018
Discount on bank
acceptance notes
Group Financial Co. 725482.85 23.May.2018 8.September.2018
Discount on bank
acceptance notes
Group Financial Co. 705466.20 6.February.2018 30.June.2018
Discount on commercial
acceptance notes
Group Financial Co. 700894.97 23.May.2018 7.September.2018
Discount on bank
acceptance notes
Group Financial Co. 700000.00 23.May.2018 26.September.2018
Discount on bank
acceptance notes
Group Financial Co. 682963.15 29.January.2018 28.June.2018
Discount on bank
acceptance notes
Group Financial Co. 663946.00 8.June.2018 26.August.2018
Discount on commercial
acceptance notes
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
137
Related party Amount Inception Maturity Note
Borrowed from
Group Financial Co. 662209.60 23.May.2018 26.July.2018
Discount on bank
acceptance notes
Group Financial Co. 644139.50 11.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 637825.05 11.February.2018 25.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 630654.72 23.May.2018 12.June.2018
Discount on bank
acceptance notes
Group Financial Co. 626307.92 23.May.2018 27.July.2018
Discount on bank
acceptance notes
Group Financial Co. 605037.40 8.June.2018 26.September.2018
Discount on commercial
acceptance notes
Group Financial Co. 603985.26 11.February.2018 30.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 579670.29 23.May.2018 23.July.2018
Discount on bank
acceptance notes
Group Financial Co. 572565.64 8.June.2018 31.October.2018
Discount on commercial
acceptance notes
Group Financial Co. 509183.55 23.May.2018 23.August.2018
Discount on bank
acceptance notes
Group Financial Co. 483944.32 6.February.2018 25.March.2018
Discount on commercial
acceptance notes
Group Financial Co. 448347.26 11.February.2018 27.April.2018
Discount on commercial
acceptance notes
Group Financial Co. 234565.32 23.May.2018 28.July.2018
Discount on bank
acceptance notes
Group Financial Co. 217124.56 11.February.2018 31.May.2018
Discount on commercial
acceptance notes
Group Financial Co. 147903.08 8.June.2018 25.July.2018
Discount on commercial
acceptance notes
Lend to
Sinopharm Group
Zhijun(Suzhou)
Pharmaceutical Co. Ltd. 44000000.00 26.January.2018 25. January.2019 Entrusted loan
(4) Related party asset transfer
Type of transaction 2018 2017
Sinopharm Holding Tianjin Binhai Pharmaceutical Co.Ltd.Purchase of construction
in progress 21794.87
Shanghai Tongyu Information Technology Co. Ltd.Purchase of intangible
asset 46153.85
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
138
X. Related party relationships and transactions (Continued)
5. Major transactions between the Group and its related parties (Continued)
(5) Other related party transactions
2018 2017
(a) Remuneration for key management personnel 2981250.00 2507458.00
(b) Interest expense
Related party Category 2018 2017
Group Financial Co.Payment of notes
discount interest 3411652.84 3150834.52
China National Pharmaceutical Group
Corporation
Payment of entrusted loan
interest 641469.02 134673.05
Sinopharm Holding Financing Lease
Co. Ltd.
Payment of financing
lease interest 623402.17 837111.29
Guorun Medical Supply Chain
Services (Shanghai) Co. Ltd.Payment of related parties
loan interest 1778.67 -
Group Financial Co.. Payment of loan interest - 688598.96
4678302.70 4811217.82
(c) Interest income
Related party Category 2018 2017
Sinopharm Group Zhijun (Suzhou)
Pharmaceutical Co. Ltd. Entrusted loan interest 1549650.99 937951.77
Group Financial Co. Deposit interest 387479.46 129656.35
Shanghai Shyndec Pharmaceutical
Co. Ltd. Other interest - 47628.66
1937130.45 1115236.78
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
139
X. Related party relationships and transactions (Continued)
6. Commitments between the Group and related parties
2018
RMB‘0000
2017
RMB‘0000
Leases
Beijing Golden Elephant Fosun Pharmaceutical Co. Ltd. 3439.50 2580.00
Shenyang Pharmaceutical Co. Ltd. 3000.00 700.00
Sinopharm Holding Yangzhou Co. Ltd. 978.00 1173.60
Linyi Medical Group Co. Ltd. 959.42 429.97
Sinopharm Group Medicine Logistic Co. Ltd. 806.70 -
Guangdong Jiyuantang Development Co. Ltd. 685.50 -
Nanjing Yuanguang Trading Co. Ltd. 672.00 463.09
Taishan Xiangranhui Trade Co. Ltd 551.18 527.54
Pingdingshan Pusheng Pharmaceutical Co. Ltd. 512.85 162.11
Sinopharm Group Shanghai Co. Ltd. 488.79 4032.80
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co. Ltd. 352.45 877.80
Lerentang Investment Group Co. Ltd. 263.50 527.00
Shaoguan Wujiang District Muyang Medicine Information Consultant Co. Ltd. 216.08 263.09
Gu Jinhua 213.96 289.06
Sinopharm Group Co. Ltd. 147.29 173.28
Sinopharm Holding Beijing Co. Ltd. 146.00 166.42
Taishan Qunkang Pharmacy Co. Ltd. 93.01 53.36
Beijing Sinopharm Tianyuan Real Estate & Property Management Co. Ltd. 86.90 -
Wang Yang 82.80 110.40
China National Medicines Co. Ltd. 75.00 94.50
Hangzhou Xihu Business Group Corporation 73.99 87.93
Shenzhen Jiufeng Investment Co. Ltd. 58.00 -
Sinopharm Holding Kashi New & Special Drugs Co. Ltd. 48.54 52.89
Sinopharm Xinjiang Pharmaceutical Co. Ltd. 27.56 40.69
Sinopharm Holding Fujian Co. Ltd. 1.96 2.65
Hunan Minshengtang Investment Co. Ltd. - 841.86
Sinopharm Group Zhijun (Shenzhen) PingShan Pharmaceutical Co. Ltd. - -
Xinjiang Baitong Property Service Co. Ltd. - -
Zhang Zhenfang - 80.50
Shenzhen Jiufeng Investment Co. Ltd. - 78.00
Sinopharm Holding Shanxi Co. Ltd. - 49.14
Sinopharm Holding Xinjiang Xinte Karamay Pharmaceutical Co. Ltd. - 45.31
13980.97 13902.99
Lease out
Sinopharm Group Zhijun (Shenzhen) Pharmaceutical Co. Ltd. - 35.14
Shenzhen Zhijun Pharmaceutical Trade Co. Ltd. - 28.57
Sinopharm Group Medicine Logistic Co. Ltd. - 16.94
- 80.65
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
140
X. Related party relationships and transactions (Continued)
7. Amounts due from related parties
Accounts receivable 2018 2017
Related party
Gross carrying
amount
Provision for
bad debt
Gross carrying
amount
Provision for
bad debt
Foshan Chancheng Pharmaceutical Co.
Ltd. 36703959.69 207364.54 21934107.53 175357.55
Sinopharm Group Co. Ltd. 30140408.15 - 15369464.29 -
Shanghai Beiyi Guoda pharmaceutical Co.Ltd. 18617164.50 - 17897203.42 -
Sinopharm Holding Hainan Co. Ltd. 10514385.94 - 14215247.85 -
Sinopharm Holding Hainan Hongyi Co. Ltd. 8529182.80 - 8091971.32 -
Sinopharm Lingyun Biopharmaceutical
(Shanghai) Co. Ltd. 4589946.00 - 2157970.20 -
Sinopharm Health Online Co. Ltd. 4525649.68 - 9422294.03 -
Sinopharm Holding Sub Marketing Center
Co. Ltd. 4190027.84 - 2804530.25 -
Beijing Golden Elephant Fosun
Pharmaceutical Co. Ltd. 4124312.92 - 8809915.50 -
Sinopharm Sichuan Pharmaceutical Co.Ltd. 3976185.33 - 662971.38 -
Foshan Chancheng District Central Hospital 3576265.62 20670.88 2529205.51 12659.85
China National Medicines Co. Ltd. 3501874.71 - 2676276.13 -
Shenzhen Hengsheng Hospital 3490867.82 - - -
Sinopharm Le-Ren-Tang Medicine Co. Ltd. 3339262.36 - 3637345.22 -
Pudong New Area of Shanghai
Pharmaceutical Medicine Ltd. 2854404.51 - 7370859.93 -
Sinopharm Holding Nantong Co. Ltd. 2722425.92 - 1704073.87 -
Sinopharm Group (Tianjin) Eastern Bokang
Pharmaceutical Co. Ltd. 2635080.55 - 1005726.44 -
Sinopharm Holding Yunnan Co. Ltd. 2532060.95 - 1035424.32 -
Sinopharm Holding Henan Co. Ltd. 1557141.42 - 1154757.68 -
Sinopharm Holding Beijing Huahong Co.Ltd. 1375881.06 - 506804.30 -
Sinopharm Holding Hubei Co. Ltd. 1339756.44 - 2748951.80 -
Sinopharm Holding Beijing Co. Ltd. 1296500.16 - 90046.08 -
Sinopharm Holding Shanxi Co. Ltd. 1265918.60 - 1200884.28 -
Sinopharm Holding Wenzhou Co. Ltd. 1230357.78 - 1158304.46 -
Sinopharm Holding Shandong Co. Ltd. 1225393.60 - 588056.32 -
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co. Ltd. 1148175.69 - 4323084.16 -
Foshan Chanyixing Medicine Development
Co Ltd. 987490.80 3943.78 673746.17 2421.30
Sinopharm Holding Yangzhou Co. Ltd. 935414.27 - 1296112.24 -
Sinopharm Holding Shanghai Likang
Pharmaceutical Co. Ltd. 675756.00 - 130704.00 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
141
X. Related party relationships and transactions (Continued)
7. Amounts due from related parties (Continued)
Accounts receivable(continued) 2018 2017
Related party
Gross carrying
amount
Provision for
bad debt
Gross carrying
amount
Provision for
bad debt
Sinopharm Holding Guizhou Co. Ltd. 639918.78 - 170986.79 -
Sinopharm Holding Hunan Co. Ltd. 595452.08 - 43981.92 -
Sinopharm Holding Jilin Co. Ltd. 492849.62 - 565721.74 -
Sinopharm Holding Tianjin Co. Ltd. 416379.20 - 135626.56 -
Sinopharm Holding Anhui Co. Ltd. 391641.84 - 33633.20 -
Sinopharm Holding Xinjiang Special Drugs
Western Pharmaceutical Co. Ltd. 329296.00 - 380649.04 -
Shanghai Merro Pharmaceutical Co. Ltd. 249999.26 - 612664.66 -
Sinopharm Holding Fujian Co. Ltd. 235092.24 - 180055.08 -
Sinopharm Holding Shanxi Co. Ltd. 229324.80 - 36481.28 -
Sinopharm Holding Ningxia Co. Ltd. 227560.68 - 1104953.59 -
Sinopharm Group Southwest Medicine
Co. Ltd. 224193.04 - 16558.20 -
Sinopharm Holding Dalian Co. Ltd. 214854.56 - 541531.52 -
Shanghai Guoda Lingyun Pharmacy Co.Ltd. 209212.66 - 270164.54 -
Sinopharm Holding Donghong Medical
(Shanghai) Co. Ltd. 179629.32 - 124991.20 -
Sinopharm Group Medicine Logistic Co.Ltd. 155588.33 - 189151.95 -
Yuxi Sinopharm Medicine Co. Ltd. 146026.37 - 146026.37 -
Sinopharm Holding Qinghai Co. Ltd. 108180.98 - 27315.00 -
Sinopharm Holding Gansu Co. Ltd. 98794.08 - - -
Sinopharm Holding Ulanqab Co. Ltd. 97118.11 - - -
Hubei Medical Group Co. Ltd. 85653.12 - 113688.23 -
Sinopharm Holding Heilongjiang Co. Ltd. 76328.00 - 50000.00 -
Sinopharm Holding Tianjin North Medicine
Co. Ltd. 68180.00 - - -
Sinopharm Holding Nanchang Pharmacy
Co. Ltd. 62660.40 - - -
Sinopharm Holding Dalian Hecheng Co.Ltd. 62495.50 - 168912.00 -
Sinopharm Group Shanxi Co. Ltd. 52792.80 - 127541.80 -
Sinopharm Holding Changzhou Medical
Logistics Center Co. Ltd. 44066.56 - 67701.92 -
Sinopharm Holding Huangshi Co. Ltd. 39317.00 - - -
Sinopharm Group Zhijun (Shenzhen)
PingShan Pharmaceutical Co. Ltd. 39204.00 - 19980.00 -
Sinopharm Holding Chengdu Co. Ltd. 35908.41 - 144788.41 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
142
X. Related party relationships and transactions (Continued)
7. Amounts due from related parties (Continued)
Accounts receivable(continued) 2018 2017
Related party
Gross carrying
amount
Provision for
bad debt
Gross carrying
amount
Provision for bad
debt
Sinopharm Holding Wuxi Co. Ltd. 30260.00 - 61247.00 -
Sinopharm Holding Fuzhou Co. Ltd. 15192.00 - - -
Sinopharm Holding Putian Co. Ltd. 15192.00 - - -
Sinopharm Holding Longyan Co. Ltd. 15192.00 - - -
Sinopharm Holding Zunyi Co. Ltd. 12238.80 - - -
Sinopharm Holding Jiangxi Co. Ltd. 11188.52 - 129605.63 -
Sinopharm Holding Honghe Co. Ltd. 11130.50 - - -
Sinopharm Holding Xinxiang Co. Ltd. 9789.00 - - -
Sinopharm Holding Ningde Co. Ltd. 7596.00 - - -
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co. Ltd. 3534.90 - 6780.30 -
Sinopharm Holding Hongrun Medical
Business Service (Shanghai) Co. Ltd. 2316.62 - - -
Sinopharm Fengliaoxing Medical Hospital
Co. Ltd. 2278.20 - 4611.25 14.56
Sinopharm Holding Beijing Tianxing Puxin
Biological Medical Co. Ltd. - - 155520.00 -
Sinopharm Holding Zhejiang Co. Ltd. - - 716400.00 -
Sinopharm Xinxiang Chain Store Co. Ltd. - - 20066.29 -
Sinopharm Holding Changzhou Co. Ltd. - - 483328.40 -
China National Pharmaceutical Foreign
Trade Corporation - - 1327.42 -
Hutchison Whampoa Sinopharm
Pharmaceuticals (Shanghai) Co. Ltd. - - 72992.40 -
Shanghai Liyi Drug Store Co.Ltd - - 35579.55 -
Linyi Medical Group Co. Ltd. - - 2538.80 -
Sinopharm Holding Huaian Co. Ltd. (19.40) - - -
Sinopharm Holding Hulun Buir Co. Ltd. (33295.45) - 982776.96 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
143
X. Related party relationships and transactions (Continued)
7. Amounts due from related parties (Continued)
Notes receivable 2018 2017
Related party
Gross carrying
amount
Provision for
bad debt
Gross carrying
amount
Provision for
bad debt
Sinopharm (Guangzhou) Medical
Equipment Co. Ltd. 20000000.00 - - -
Sinopharm Holding Hainan Co. Ltd. 6160961.40 - 3650933.87 -
Sinopharm Le-Ren-Tang Medicine Co.Ltd. 900000.00 - - -
Sinopharm Holding Hubei Co. Ltd. 243000.00 - - -
Sinopharm Group Zhijun (Shenzhen)
PingShan Pharmaceutical Co. Ltd. 80000.00 - - -
Sinopharm Group (Tianjin) Eastern
Bokang Pharmaceutical Co. Ltd. - - 161555.40 -
Sinopharm Holding Shanxi Co. Ltd. - - 500000.00 -
Sinopharm Holding Henan Co. Ltd. - - 1500000.00 -
Sinopharm Holding Inner Mongolia Co.Ltd. - - 136172.00 -
Sinopharm Holding Nantong Co. Ltd. - - 2240000.00 -
Sinopharm Holding Dalian Hecheng Co.Ltd. - - 116885.00 -
Foshan Chancheng Pharmaceutical Co.
Ltd. - - 8149623.63 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
144
X. Related party relationships and transactions (Continued)
7. Amounts due from related parties (Continued)
Other receivables 2018 2017
Related party
Gross carrying
amount
Provision for
bad debt
Gross carrying
amount
Provision for bad
debt
Sinopharm Group Medicine Logistic Co.Ltd. 5001939.98 - 1398849.53 -
Sinopharm Group Zhijun(Suzhou)
Pharmaceutical Co. Ltd. 44000000.00 - 44000000.00 -
Guorun Medical Supply Chain Services
(Shanghai) Co. Ltd. 2940000.00 - - -
Sinopharm Holding Sub Marketing Center
Co. Ltd. 8120.00 - - -
Sinopharm Holding Henan Co. Ltd. 67526.20 - - -
Sinopharm Holding Jiaozuo Co. Ltd. 21476.00 - - -
Sinopharm Holding Fujian Co. Ltd. 5476.29 - - -
Shanghai Modern Pharmaceutical Co. Ltd.(Modern Pharmaceutical) 101166758.92 - 125181658.92 -
Wuhan Zhonglian Pharmaceutical Group
Co. Ltd. 5000.00 500.00 5000.00 500.00
Sinopharm Group Zhijun(Shenzhen)
Pharmaceutical Co. Ltd. 79791.10 600.00 17060.30 300.00
Guangxi Deyiyuan Medical Investment
Center (Limited Partnership) 4000000.00 - - -
China National Medicines Co. Ltd. 115340.85 - - -
Sinopharm Holding Shanxi Co. Ltd. - - 100000.00
Baise Jianan Medicine Chain Co. Ltd. 980000.00 - - -
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co. Ltd. 100000.00 - 100000.00 -
Sinopharm Lerentang Hebei Medical
Instrument Trade Co. Ltd. 48493.16 - 48493.16 -
Sinopharm Health Online Co. Ltd. - - 1071427.97 -
Advances to suppliers 2018 2017
Related party
Gross carrying
amount
Provision for
bad debt
Gross carrying
amount
Provision for bad
debt
Hunan Minshengtang Investment Co. Ltd. 4466242.71 - 2670438.92 -
Sinopharm Holding Shanxi Co. Ltd. 3119762.79 - 287996.37 -
Sinopharm Group Xinjiang Special Drugs
National Pharmaceutical Co. Ltd. 1532954.29 - 2025021.70 -
Sinopharm Group Co. Ltd. 1327141.31 - 1963516.79 -
Sinopharm Chuan Kang Pharmaceutical
Co. Ltd. 717145.38 - -
Linyi Medical Group Co. Ltd. 596733.21 - -
Nanjing Yuanguang Trading Co. Ltd. 395816.01 - 168168.19 -
Sinopharm Xinjiang Korla Pharmaceutical
Co. Ltd. 264360.50 - 264360.50 -
Sinopharm Holding Kashi New & Special
Drugs Co. Ltd. 241371.50 - 25200.00 -
Sinopharm Holding Shanxi Co. Ltd. 234017.13 - 5502363.26 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
145
X. Related party relationships and transactions (Continued)
7. Amounts due from related parties (Continued)
Advances to suppliers (continued) 2018 2017
Related party
Gross carrying
amount
Provision for
bad debt
Gross carrying
amount
Provision for bad
debt
Sinopharm Holding Xinjiang Xinte Karamay
Pharmaceutical Co. Ltd. 213574.68 - - -
Chongqing Yaoyou Pharmaceutical Co.
Ltd. 211092.00 - - -
Guizhou Tongjitang Pharmaceutical Co.Ltd. 154778.29 - - -
Anhui Jingfang Pharmaceutical Co. Ltd. 150708.40 - - -
Chengdu Rongsheng Pharmacy Co. Ltd. 143348.00 - 633.13 -
Sinopharm Holding Beijing Co. Ltd. 130000.00 - 117500.00 -
Sinopharm Group Yibin Pharmaceuticals
Co. Ltd. 112426.00 - - -
Shanghai Modern Hasen (Shangqiu)
Pharmaceutical Co. Ltd. 88685.38 - - -
China National Medicines Co. Ltd. 78750.00 - 183033.71 -
Beijing Sinopharm Tianyuan Real Estate &
Property Management Co. Ltd. 72000.00 - - -
Xinjiang Baitong Property Service Co. Ltd. 67427.65 - 10867.40 -
Suzhou Erye Pharmaceutical Limited
Company 50220.00 - - -
Sinopharm Holding Sub Marketing Center
Co. Ltd. 35181.20 - 1025.86 -
Taishan Qunkang Pharmacy Co. Ltd. 26140.03 - - -
Sinopharm Holding Lerentang
Pharmaceutical Co. Ltd. 7960.00 - - -
Sinopharm Holding Tianjin Co. Ltd. 7705.88 - - -
China Sinopharm International Corporation 7314.00 - - -
Winteam Pharmaceutical Group Ltd. 1927.17 - 19160.00 -
Sinopharm Holding Hunan Co. Ltd. - - 3136.32 -
Sinopharm Group Guorui Medicine Co.Ltd. - - 279120.00 -
Sinopharm Holding Fujian Co. Ltd. - - 5476.24 -
Sinopharm Holding Yangzhou Co. Ltd. - - 4127.79 -
Sinopharm Holding Suzhou Co. Ltd. - - 7676.52 -
Guilin South pharmaceutical Co. Ltd. - - 20000.00 -
Jinzhou AoHong Pharmaceuticals Co. Ltd. - - 20136997.60 -
Shanghai Shangsheng Biological Products
Co. Ltd. - - 1271300.00 -
Sinopharm Xinjiang Pharmaceutical Co.Ltd. - - 42708.30 -
Sinopharm Group Zhijun (Shenzhen)
PingShan Pharmaceutical Co. Ltd. - - 158.49 -
Gu Jihua - - 78420.01 -
Sinopharm Holding Jinhua Co. Ltd. - - 38.80 -
Sinopharm Holding Tianjin Distribution
Center Co. Ltd. - - 1735.14 -
Sinopharm Holding Shenyang Co. Ltd. - - 1334883.98 -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
146
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties
Related party 2018 2017
Accounts payable
Sinopharm Holding Sub Marketing Center Co. Ltd. 185434546.68 143908467.08
China National Medicines Co. Ltd. 50999852.95 28362452.88
Sinopharm Lingyun Biopharmaceutical (Shanghai) Co. Ltd. 38736408.80 37504845.76
Sinopharm Holding Shanxi Co. Ltd. 37706274.33 244476.98
Fresenius Kabi Huarui Pharmaceuticals Co. Ltd. 35753944.33 16003934.07
Sinopharm Le-Ren-Tang Medicine Co. Ltd. 28095649.43 -
Sinopharm Group Xinjiang Special Drugs National Pharmaceutical Co.Ltd. 19956249.97 19742833.00
Sinopharm Group Co. Ltd. 19380143.87 45203988.04
Lanzhou Institute of Biological Products Co. Ltd. 18300000.00 -
Jiangsu Wanbang Pharmacy Marketing Co. Ltd. 18191902.38 10003320.16
Sinopharm Holding Shenyang Co. Ltd. 11775646.40 -
Sinopharm Holding Lerentang Pharmaceutical Co. Ltd. 11678984.58 7796905.93
Sinopharm Holding Lunan Co. Ltd. 11599866.46 152924.30
Sinopharm Holding Beijing Co. Ltd. 10395045.63 1148947.27
Sinopharm Holding Inner Mongolia Co. Ltd. 10291898.39 2664468.46
Chongqing Yaoyou Pharmaceutical Co. Ltd. 10162662.09 5449975.66
Winteam Pharmaceutical Group Ltd. 8836641.73 1291002.80
Sinopharm Holding Fujian Co. Ltd. 8523446.87 3717579.24
Sinopharm Holding Jiangsu Co. Ltd. 6712929.75 7730787.92
Sinopharm Holding Shanxi Instrument Branch Co. Ltd. 6108785.26 4089563.14
Suzhou Erye Pharmaceutical Limited Company 6043499.78 -
Shenzhen Wanwei Medicine Trading Co. Ltd. 4844806.71 4240123.65
Shenzhen Main Luck Pharmaceutical Co. Ltd. 4827911.78 6520471.48
Sinopharm Holding Yangzhou Co. Ltd. 4754359.23 5987057.82
Jinzhou AoHong Pharmaceuticals Co. Ltd. 4663433.10 -
Sinopharm Group Zhijun(Shenzhen) Pharmaceutical Co. Ltd. 4540260.42 1141702.25
Sinopharm Lerentang Shijiazhuang Medicine Co. Ltd. 4086875.36 2106607.37
Sinopharm Holding Pingdingshan Co. Ltd. 3648364.61 8178253.43
Tibet Yaopharma Co. Ltd. 3148580.21 -
Sinopharm Holding Ningxia Co. Ltd. 2799537.02 2809371.28
Sinopharm Group Zhijun (Shenzhen) PingShan Pharmaceutical Co.Ltd. 2714815.09 1350614.09
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
147
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
Related party 2018 2017
Accounts payable (Continued)
Sinopharm Holding Shanxi Co. Ltd. 2652903.44 -
Sinopharm Holding Xiamen Co. Ltd. 2630865.97 4006491.37
Sinopharm Holding Changzhou Medical Logistics Center Co. Ltd. 2131769.27 2792663.08
Yichang Humanwell Pharmaceutical Co. Ltd. 2073807.37 2620139.37
Sinopharm Xingsha Pharmaceuticals (Xiamen) Co. Ltd. 2057833.38 803559.06
Sinopharm Holding Beijing Huahong Co. Ltd. 1874216.57 1277513.68
Sinopharm Holding Fuzhou Co. Ltd. 1616691.28 996015.17
Sinopharm Holding Hulun Buir Co. Ltd. 1600453.94 2902181.03
Sinopharm Lerentang Hebei Medical Instrument Trade Co. Ltd. 1582888.55 1708132.21
Sinopharm Holding Jinan Co. Ltd. 1374865.44 71695.99
Sinopharm Holding Hunan Co. Ltd. 1364062.66 148565.65
Foshan Fengliaoxing Pharmaceutical Co. Ltd. 1358827.63 1380114.57
China Otsuka Pharmaceutical Co. Ltd. 1352547.35 1073847.85
Sinopharm Holding Beijing Kangchen Bio-Pharmaceutical Co. Ltd. 1297375.21 1095793.12
Sinopharm Holding Xinjiang Special Drugs Western Pharmaceutical Co.Ltd. 1074129.27 321836.11
Sinopharm Holding Xinjiang Xinte Karamay Pharmaceutical Co. Ltd. 935712.46 482357.79
Sinopharm Holding Henan Co. Ltd. 875000.19 1526472.33
Shanghai Transfusion Technology Co. Ltd. 779650.00 251500.00
Sinopharm Group Rongsheng Pharmaceutical Co. Ltd. 773028.14 197304.23
Sinopharm Holding Changzhou Co. Ltd. 762677.30 156301.06
Sinopharm Holding Wuxi Co. Ltd. 744575.65 234944.25
Sinopharm Holding Shandong Co. Ltd. 718163.95 -
Sinopharm Holding Shanghai Likang Pharmaceutical Co. Ltd. 713718.67 495022.50
Sinopharm Holding Suzhou Co. Ltd. 710094.01 656992.49
Shenyang Hongqi Pharmaceutical Co. Ltd. 588503.90 394762.85
Huayi Pharmaceutical Co. Ltd. 532096.11 -
Pudong New Area of Shanghai Pharmaceutical Medicine Ltd. 521871.90 798390.65
Wuhan Zhonglian Pharmaceutical Group Co. Ltd. 503372.84 526750.40
Hunan Dongting Pharmaceutical Co. Ltd. 488665.79 110111.27
Hutchison Whampoa Sinopharm Pharmaceuticals (Shanghai) Co. Ltd. 456155.01 363937.65
Sinopharm Holding Yangzhou Biological Medicine Co. Ltd. 444000.00 24852.45
Sinopharm Holding Dalian Co. Ltd. 437980.07 80166.00
Sinopharm Group Guorui Medicine Co. Ltd. 366991.38 34649.98
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
148
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
Related party 2018 2017
Accounts payable (Continued)
Sinopharm Holding Donghong Medical (Shanghai) Co. Ltd. 363060.90 46098.20
Sichuan Hexin Pharmaceutical Co. Ltd. 350457.93 -
China National Pharmaceutical Foreign Trade Corporation 341551.34 2035108.96
Shantou Jinshi Powder Injection Co. Ltd. 319759.20 -
Sinopharm Holding Jinzhou Co. Ltd. 306370.88 520194.75
Chongqing Haisiman Pharmaceutical Co. Ltd. 275753.91 438368.99
Guizhou Tongjitang Pharmaceutical Co. Ltd. 240306.88 557491.17
Chengdu Rongsheng Pharmacy Co. Ltd. 235668.87 -
Shanghai Merro Pharmaceutical Co. Ltd. 232663.76 311639.09
Anhui Jingfang Pharmaceutical Co. Ltd. 226349.94 275317.28
Sinopharm Holding Dezhou Co. Ltd. 209815.57 239430.02
Sinopharm Group Shanxi Co. Ltd. 206588.00 -
Chengdu Institute of Biological Products Co. Ltd. 183600.00 -
Sinopharm Group Southwest Medicine Co. Ltd. 177932.00 -
Sinopharm Holding Anhui Co. Ltd. 171254.00 -
Sinopharm Holding Tongliao Co. Ltd. 165592.89 440884.70
Shanghai Modern Pharmaceutical Co. Ltd. (Modern Pharmaceutical) 163448.94 12807.61
Sinopharm Holding Putian Co. Ltd. 161557.66 149819.81
Sinopharm Holding Lianyungang Co. Ltd. 155264.40 -
Sinopharm Holding Beijing Tianxing Puxin Biological Medical Co. Ltd. 155194.84 42425.80
Shanghai Chaohui Pharmaceutical Co. Ltd. 152724.16 8938.82
Jiangsu Fuxing Pharmaceutical Trading Co. Ltd 139480.00 183799.20
Sinopharm Holding Yancheng Co. Ltd. 122112.27 960.10
Sinopharm Holding Kashi New & Special Drugs Co. Ltd. 105211.32 155512.79
Sinopharm Shantou Jinshi Pharmaceutical Co. Ltd. 96434.97 55307.67
Sinopharm Holding Changsha Co. Ltd. 92749.70 -
Guangdong Medi-World Pharmaceutical Co. Ltd. 87519.32 248787.32
Sinopharm Holding Taizhou Co. Ltd. 86054.00 94976.03
Sinopharm Holding Dalian Hecheng Co. Ltd. 84645.00 -
The Fourth Pharmaceutical Co. Ltd. of Zhonglian Group 82099.79 77147.00
Sinopharm Holding Ulanqab Co. Ltd. 80963.40 133641.00
Sinopharm Holding Zhihui Minsheng (Tianjin) Medicine Co. Ltd. 80410.58 -
Sinopharm Holding Quanzhou Co. Ltd. 77881.33 106979.43
Beijing Golden Elephant Fosun Pharmaceutical Co. Ltd. 75814.60 150269.45
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
149
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
Related party 2018 2017
Accounts payable (Continued)
Foshan Dezhong Pharmaceutical Co. Ltd. 58320.10 98779.60
Sinopharm Group (Tianjin) Eastern Bokang Pharmaceutical Co. Ltd. 55598.69 -
China National Pharmaceutical Industry Co. Ltd. 54841.86 52320.00
Sinopharm Holding Tianjin Co. Ltd. 52844.12 88599.65
Shandong Lu Ya Pharmaceutical Co. Ltd. 52819.07 1507459.07
Sinopharm Holding Zhejiang Co. Ltd. 46789.67 55459.28
Sinopharm Holding Sanyi Medicine (Wuhu) Co. Ltd. 45404.17 74439.47
Sinopharm Holding Wende Medicine Nanjing Co. Ltd. 42760.80 -
Jiangsu Huanghe Pharmaceutical Co. Ltd. 35363.79 53331.64
Sichuan Jiangyouzhongbafuzi Technology Development Co. Ltd. 33454.55 8648.65
Sinopharm Holding Ordos Co. Ltd. 33195.00 55635.00
Sinopharm Holding Yongzhou Co. Ltd. 30907.44 30163.49
Sinopharm Holding Biopharmaceutical (Tianjin) Co. Ltd. 30235.86 20509.50
Shanghai Modern Hasen (Shangqiu) Pharmaceutical Co. Ltd. 29921.40 30918.42
Sinopharm Group Yibin Pharmaceuticals Co. Ltd. 29603.90 23030.00
Sinopharm Group Shanghai Medicine Device Co. Ltd. 16603.02 16603.02
Sinopharm Holding Liaocheng Co. Ltd. 16197.93 16197.93
Sinopharm Holding Shanxi Jincheng Co. Ltd 13110.09 -
Sinopharm Lerentang Qinhuangdao Medicine Co. Ltd. 11086.50 -
Sinopharm Hebei Medical Instrument Co. Ltd. 7644.60 3564.00
Sinopharm Group Zhijun(Suzhou) Pharmaceutical Co. Ltd. 6408.00 -
Sinopharm Holding Rizhao Co. Ltd. 5292.81 -
Sinopharm Prospect Dentech (Beijing) Co. Ltd. 2548.01 1206.00
Changchun Changsheng Gene Pharmaceutical Co. Ltd. 1492.91 14232.00
Guilin South pharmaceutical Co. Ltd. 1211.92 1201.12
Sinopharm Holding Huaideju Pharmaceutical (Xiamen) Co. Ltd. 1113.85 1113.85
Sinopharm Fengliaoxing (Foshan) Medicines Co. Ltd. 767.28 149.02
Beijing Huasheng Pharmaceutical Biotechnology Development Co. Ltd. 637.01 637.01
Shenzhen Zhijun Pharmaceutical Trade Co. Ltd. 534.20 534.20
Sinopharm Holding Chongqing Co. Ltd. 117.64 117.64
Sinopharm Zhuhai Medical Instrument Co. Ltd. 104.31 -
Shanghai Shyndec Pharmaceutical Marketing Co. Ltd. 77.76 566354.26
Sinopharm Holding Tianjin Distribution Center Co. Ltd. 35.32 -
Sinopharm Group Weiqida Medicine Co. Ltd. 28.93 28.93
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
150
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
Related party 2018 2017
Accounts payable (Continued)
Linyi Medical Group Co. Ltd. 10.47 10.47
Sinopharm Holding Xinyu Co. Ltd. 0.01 0.01
Sinopharm Group Shanghai Management Consulting Branch Co. Ltd. - -
Beijing Huamiao Pharmaceutical Co. Ltd. - 339889.47
Sinopharm Holding Chengdu Co. Ltd. - 104102.57
Guizhou Longlife Pharmacertical Co. Ltd. - 103560.00
Sinopharm ShanXi Ruifulai Pharmaceutical Co. Ltd. - 63081.60
Sinopharm Holding Jiangxi Co. Ltd. - 30372.00
Sinopharm Xinjiang Pharmaceutical Co. Ltd. - 27692.31
Sinopharm Holding Tianjin North Medicine Co. Ltd. - 19275.46
Related party 2018 2017
Notes payable
Sinopharm Holding Shanxi Co. Ltd. 96633609.80 96829230.00
Sinopharm Holding Shenyang Co. Ltd. 77441965.84 40215446.25
Sinopharm Holding Sub Marketing Center Co. Ltd. 74535975.61 91320346.11
Sinopharm Holding Shanxi Co. Ltd. 43255070.00 29931650.00
Sinopharm Holding Inner Mongolia Co. Ltd. 8725011.77 -
Sinopharm Lerentang Shijiazhuang Medicine Co. Ltd. 6146830.73 4180000.97
Lanzhou Institute of Biological Products Co. Ltd. 3760000.00 21600000.00
Sinopharm Holding Lerentang Pharmaceutical Co. Ltd. 3646912.36 2669407.85
Sinopharm Holding Xiamen Co. Ltd. 3589479.22 8573712.86
Sinopharm Holding Fujian Co. Ltd. 3582375.49 6294466.11
Sinopharm Holding Hunan Co. Ltd. 3525946.06 -
Sinopharm Holding Jinzhou Co. Ltd. 2823753.72 647386.99
Sinopharm Holding Shanxi Instrument Branch Co. Ltd. 2508000.00 2051364.70
China National Medicines Co. Ltd. 1776402.01 8223431.95
Shenzhen Main Luck Pharmaceutical Co. Ltd. 1052377.40 -
Shenzhen Wanwei Medicine Trading Co. Ltd. 995346.00 1495728.00
Chengdu Rongsheng Pharmacy Co. Ltd. 953756.00 1760000.00
Sinopharm Holding Dalian Co. Ltd. 645404.90 295145.94
Sinopharm Holding Ningxia Co. Ltd. 500000.00 1700000.00
Shanghai Shyndec Pharmaceutical Marketing Co. Ltd. 369006.80 -
Sinopharm Group Zhijun(Shenzhen) Pharmaceutical Co. Ltd. 341833.60 123292.80
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
151
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
Related party 2018 2017
Notes payable (Continued)
Sinopharm Holding Putian Co. Ltd. 327255.56 594085.45
Sinopharm Group Zhijun (Shenzhen) PingShan Pharmaceutical Co.Ltd. 318324.00 157760.00
Sinopharm Holding Quanzhou Co. Ltd. 290051.32 457039.40
Foshan Fengliaoxing Pharmaceutical Co. Ltd. 201891.16 -
Sinopharm Holding Changsha Co. Ltd. 110056.00 -
Sinopharm Group Rongsheng Pharmaceutical Co. Ltd. 104417.00 170130.00
Sinopharm Group Co. Ltd. - 60681897.22
Chongqing Haisiman Pharmaceutical Co. Ltd. - 3556905.12
Chongqing Yaoyou Pharmaceutical Co. Ltd. - 6722293.66
Winteam Pharmaceutical Group Ltd. - 68542.00
Shenyang Hongqi Pharmaceutical Co. Ltd. - 780010.90
Sinopharm Holding Jinan Co. Ltd. - 240000.00
Sinopharm Le-Ren-Tang Medicine Co. Ltd. - 20376118.04
Jiangsu Wanbang Pharmacy Marketing Co. Ltd. - 2207677.30
Anhui Jingfang Pharmaceutical Co. Ltd. - 348304.76
Guizhou Tongjitang Pharmaceutical Co. Ltd. - 980303.96
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
152
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
Related party 2018 2017
Other payables
Sinopharm Group Co. Ltd. 3414612.73 584000.84
Sinopharm Group Shanghai Co. Ltd. 1660431.38 -
Sinopharm Group Chemical Reagent Co. Ltd. 175700.00 -
Sinopharm Holding Tianjin Binhai Pharmaceutical Co. Ltd. 1162820.00 1137319.99
Sinopharm Group Medicine Logistic Co. Ltd. 9106938.25 4128793.99
Guorun Medical Supply Chain Services (Shanghai) Co. Ltd. 3200000.00 -
China National Scientific Instruments & Materials Imp/Exp
Shenzhen Co. Ltd. 37450.00 37450.00
China National of Traditional&Herbal Medicine Co. Ltd. 1300000.00 1300000.00
Sinopharm Chongqing Pharmaceutical and Medical Industry
Design Institute 6712832.46 -
Shanghai Modern Pharmaceutical Co. Ltd. (Modern
Pharmaceutical) 503462.18 503462.18
China National Pharmaceutical Foreign Trade Corporation 6437142.44 -
Shenzhen Wanwei Medicine Trading Co. Ltd. 103269.08 -
Shenyang Pharmaceutical Co. Ltd. 842544.29 6092544.00
Zhang Zhenfang 1907499.98 1505000.00
Pingdingshan Pusheng Pharmaceutical Co. Ltd. 1277732.57 1235779.46
Lerentang Investment Group Co. Ltd. - 3027759.85
Shanghai Beiyi Guoda pharmaceutical Co. Ltd. 855341.63 496651.75
Beijing Golden Elephant Fosun Pharmaceutical Co. Ltd. - 200000.00
Sinopharm Holding Sub Marketing Center Co. Ltd. 37782.33 37782.33
Sinopharm Group Xinjiang Special Drugs National
Pharmaceutical Co. Ltd. 546753.39 466443.39
China National Pharmaceutical Logistics Co. Ltd. 8445.56 7424.97
Sinopharm Health Online Co. Ltd. 50005.79 -
Heyuan Mairui Trading Co. Ltd. 672396.36 -
Sinopharm Holding Hunan Weian Pharmacy Medicine Chain
Company Limited 95100.00 6900.00
Shenzhen Jiufeng Investment Co. Ltd. - 180000.00
Linyi Medical Group Co. Ltd. - 862063.20
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
153
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
Related party 2018 2017
Advances from customers
Sinopharm Holding Beijing Huahong Co. Ltd. 976210.65 -
Sinopharm Holding Guizhou Medical Equiment Co. Ltd. 275090.49 -
Sinopharm Holding Shenyang Co. Ltd. 60059.47 10114.48
Sinopharm Holding Wuhu Co. Ltd. 45576.00 -
China National Pharmaceutical Foreign Trade
Corporation 24941.19 12505381.84
Sinopharm Holding Suzhou Co. Ltd. 13800.00 -
Sinopharm Holding Lu'an Co. Ltd. 4750.00 -
Sinopharm Zhuhai Medical Instrument Co. Ltd. 4074.00 11512.00
Fujian CMDC Co. Ltd. 1510.32 -
Sinopharm Holding Chongqing Co. Ltd. 755.62 755.62
Dongyuan accord pharmaceutical chain Co. Ltd. 62.00 -
Sinopharm Holding Inner Mongolia Co. Ltd. 41.80 -
Sinopharm Xinxiang Chain Store Co. Ltd. 0.01 -
Sinopharm Holding Gansu Co. Ltd. - 28914.27
Sinopharm Holding Chengdu Co. Ltd. - 1270.20
Sinopharm Sichuan Pharmaceutical Co. Ltd. - 739603.08
Sinopharm Group Southwest Medicine Co. Ltd. - 676734.09
Sinopharm Group Co. Ltd. - 21346.83
Sinopharm Holding Hunan Co. Ltd. - 77403.51
Sinopharm Holding Beijing Co. Ltd. - 2349113.58
Sinopharm Holding Shandong Co. Ltd. - 2515702.87
Sinopharm Holding Lunan Co. Ltd. - 62787.26
Sinopharm Holding Nanping Newforce Co. Ltd. - 295818.24
Sinopharm Holding Suzhou Co. Ltd. - 7676.52
Sinopharm Holding Qinghai Co. Ltd. - 3545.67
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
154
X. Related party relationships and transactions (Continued)
8. Amounts due to related parties (Continued)
Related party 30 June 2018 31December 2017
Interest payable
China National Pharmaceutical Group Corporation 35440.24 38984.38
Guorun Medical Supply Chain Services (Shanghai) Co. Ltd. 1778.67 -
Entrusted borrowings
China National Pharmaceutical Group Corporation 31600000.00 31600000.00
Other non-current liabilities
Sinopharm Group Co. Ltd.
35061743.31 35061743.31
Short-term borrowings
Group Financial Co.
122986581.52 147715527.67
Long-term payables
Sinopharm Holding Financing Lease Co. Ltd.
7557432.82 9332537.14
Non-current liabilities due within one year
Sinopharm Holding Financing Lease Co. Ltd.
5651227.56 5434770.70
Cash deposite with a related party
Group Financial Co.
29919274.53 156740929.50
Amounts due to related parties were interest-free and unsecured with no fixed terms of repayment.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
155
XI Commitments and contingencies
1. Commitments
(1) Capital commitments
Capital expenditures contracted for at the balance sheet date but not recognized in balance sheet
are analyzed as follows:
30 June 2018 31December 2017
RMB‘0000 RMB‘0000
Buildings machinery and equipment 223.92 600.45
Investment commitments (Note) 14000.00 14000.00
Note: The Group subscribed to Sinopharm Zhongjin medical industry fund as its limited
partnerand the total investment amounted to RMB200 million. The investors contribute year by
year in batch. The fund manager will send out payment notification to investors according to the
actual progress of the project and the investors will commit to complete the payment in 3 year.The investors have paid 30% of the amount of contribution during 2017 namely RMB 60 million
and the rest is RMB 140 million.
(2) Operating lease commitments
The future minimum lease payments due under the signed irrevocable operating leases contracts
are summarized as follows:
30 June 2018 31 December 2017
RMB‘0000 RMB‘0000
Within one year 51747.87 49860.66
Between 1 and 2 years 41329.26 39575.48
Between 2 and 3 years 30422.97 29537.37
Over 3 years 43819.79 51138.78
167319.89 170112.29
2. Contingencies
As of the balance sheet date there were no contingencies that the Group was required to
disclose.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the Year ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
156
XII Events after the balance sheet date
Guoda Pharmacy a subsidiary of the Group acquired a strategic investor which named
Walgreens Boots Alliance (Hong Kong) Investments Limited (“WBA”) through capital increase
amounting to RMB2.77 billion. Guoda Pharmacy became a sino-foreign joint enterprise since
business registration finished in June 28 2018. The registered capital is RMB1.68 billion
including RMB1.01 billion from the Group (60% of all shares) and RMB0.67 billion from WBA
(40% of all shares). In July 4 2018 all related procedures have been finished.
XIII Other significant events
1. Segment reporting
Operating segments
For management purpose the Group is organized into business units based on its product and
service and has four reportable operating segments as follows:
a) The Head Office which is mainly engaged in investing and managing business;
b) Pharmaceutical distribution segment which is mainly engaged in the distribution of
medicine and pharmaceutical products to customers;
c) Retail pharmacy segment which is the managing the operation of Guoda Pharmacy;
Management monitors the results of the Group’s operating segments separately for the
purpose of making decisions about resource allocation and performance assessment. Segment
performance is evaluated based on reportable segment profit which is a measure of adjusted
profit before tax. The adjusted profit before tax is measured consistently with the Group’s profit
before tax except that finance costs dividend income non-operating income non-operating
expense investment income as well as head office and corporate expenses are excluded from
such measurement.Inter-segment sales and transfers are transacted with reference to the selling prices used in the
transactions carried out with third parties at the then prevailing market prices.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
157
XIII Other significant events (Continued)
3. Segment reporting (Continued)
Operating segments (Continued)
Operating segment information as at and for the semi year ended
Head Office Pharmaceutical distribution Retail
Elimination between
segments
Total
Revenue of main operations - 15858317084.75 4993130188.24 (245419298.42) 20606027974.57
Cost of main operations - (14879713386.35) (3721948448.31) 246659082.25 (18355002752.42)
Investment income 162655203.36 (652715.21) 659783.20 - 162662271.35
Net profit 529974276.77 347154169.85 172985004.03 (360864440.74) 689249009.91
Total assets 10680924970.49 16539616967.79 5605478618.09 (8813004879.05) 24013015677.32
Total liabilities (1891354344.87) (11593180303.89) (3507124611.26) 3457267336.54 (13534391923.48)
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
158
XIV Notes to key items of the company financial statements
1. Accounts receivable
(a) The aging of accounts receivable and the related provision for bad debts is analyzed below:
30 June 2018
Amount Provision for bad debts
Within 1 year 553496096.71 -
1 to 2 years - -
2 to 3 years - -
553496096.71 -
(b) There were no increase no reversal and no write-off of provision for bad for the six month ended
30 June 2018.
(c) The accounts receivable and related provision for bad debts by category are analyzed below:
30 June 2018 31 December 2017
Amount Provision for bad debts Amount Provision for bad debts
amount
% of total
balance
amount rate amount
% of total
balance
amount
rate
Accounts
receivable
with similar
credit risk 553496096.71 99.98% - - 480467760.92 99.98% - -
individually not
significant but
individually
evaluated for
impairment 116855.40 0.02% 116855.40 100.00% 117320.70 0.02% 117320.70 100.00%
553612952.11 - 116855.40 - 480585081.62 - 117320.70 -
As at 30 June 2018，there were no accounts receivable which were individually significant and for which the provision for bad debt was
separately recognized.
As at 30 June 2018 accounts receivable which is actually written off:
Amount
Shenzhen Centennial Clinic
465.30
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
159
XIV Notes to key items of the company financial statements (Continued)
1. Accounts receivable (Continued)
(d) the accumulated top five Accounts receivables by customer are analysed below:
Amount
% of the total
other receivable Bad debt provision
Shenzhen Hospital of Southern Medical
University
55567087.27 3.41% -
Shenzhen People's Hospital 34490479.76 2.12% -
Peking University Shenzhen Hospital 29293468.53 1.80% -
The university of Hong Kong – Shenzhen
hospital
21317591.27 1.31% -
The Second People's Hospital of Shenzhen 19580436.19 1.20% -
9.84% -
2. Other receivables
(a) Other receivables and related provision for bad debts by category are analyzed below:
30 June 2018 31 December 2017
Carrying amount Bad debt provision Carrying amount Bad debt provision
amount
% of
total
amount amount rate amount
% of
total
amount
amount rate
Individually
significant and
subject to
separate
impairment
assessment 110146758.92 6.72% 8980000.00 8.15% 134161658.92 8.79% 8980000.00 6.69%
Receivable
accounts with
similar credit
risk 1528788306.69 93.22% 16955.33 - 1390860253.14 91.14% 20286.35 -
Individually not
significant but
individually
evaluated for
impairment 989623.95 0.06% 989623.95 100.00% 1010023.95 0.07% 993703.95 98.38%
1639924689.56 100.00% 9986579.28 0.61% 1526031936.01 100.00% 9993990.30 0.65%
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
160
XIV Notes to key items of the company financial statements (Continued)
2. Other receivables (Continued)
(b) As at 30 June 2018 impairment provision for other receivables individually significant is analyzed as follows:
Amount Bad debt provision Rate
Assessment for
impairment
Modern Pharmaceutical 101166758.92 - -
Other receivable from
related party no
uncertainty in
recoverability
Shenzhen Yinghai Technology
Investment Co. Ltd. 8980000.00 8980000.00 100.00%
Uncertainty in
recoverability
110146758.92 8980000.00 -
(c) Provisions for impairment of the receivables which have similar credit risk are analyzed below:
30 June 2018
Carrying amount Bad debt provision
Amount Amount Rate
Within 1 year 1528612874.88 - -
1 to 2 years 53815.00 2690.75 5.00%
2 to 3 years 100587.85 10058.79 10.00%
Over 3 years 21028.96 4205.79 20.00%
1528788306.69 16955.33 -
(d) The other receivables by category are listed below:
30 June 2018 31 December 2017
Amounts due from subsidiaries and
related party 1459816430.56 1324203206.47
Receivable from equity transaction 8980000.00 8980000.00
Deposit 1840914.63 1864394.68
Others 169287344.37 190984334.86
1639924689.56 1526031936.01
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
161
XIV Notes to key items of the company financial statements (Continued)
2. Other receivables (Continued)
(e) As at 30 June 2018 the accumulated top five other receivables by customer are analysed below:
Nature Amount Aging
% of the total
other receivable
Bad debt
provision
Sinopharm Guangxi
Entrusted
borrowings 252900000.00 Within 1 year 15.42% -
Sinopharm Yuexing
Entrusted
borrowings 162700000.00 Within 1 year 9.92% -
Sinopharm Zhanjiang
Entrusted
borrowings 145000000.00 Within 1 year 8.84% -
Sinopharm Dongguan
Entrusted
borrowings 121000000.00 Within 1 year 7.38% -
Modern Pharmaceutical
Restructuring
consideration
receivable 101166758.92 Within 2 year 6.17% -
782766758.92 47.73% -
3. Long-term equity investments
30 June 2018 31 December 2017
Original value
Bad debt
provision Carrying amount Original value
Bad debt
provision Carrying amount
Investments in
subsidiaries 5594679427.58 - 5594679427.58 5594679427.58 - 5594679427.58
Investments in
associates 1742336545.12 39930000.00 1702406545.12 1625556656.98 39930000.00 1585626656.98
7337015972.70 39930000.00 7297085972.70 7220236084.56 39930000.00 7180306084.56
The long-term equity investments of the Company are not subject to restriction on conversion into cash.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
162
XIV Notes to key items of the company financial statements (Continued)
3. Long-term equity investments (Continued)
(a) Subsidiaries
31 December 2017 Increases
decrease 30 June 2018
Provision for
impairment in the
current period
Ending value of
impairment
provision
Sinopharm Jianming 60054911.04 - - 60054911.04 - -
Sinopharm Shenzhen
Material
15450875.93 - - 15450875.93 - -
Shenzhen Logistics 5019062.68 - - 5019062.68 - -
Sinopharm Guangzhou 1565440323.63 - - 1565440323.63 - -
Sinopharm Hengxing 91763288.00 - - 91763288.00 - -
Sinopharm Liuzhou 21407965.79 - - 21407965.79 - -
Sinopharm Dongguan 72942000.00 - - 72942000.00 - -
Huixin Investment 64416937.72 - - 64416937.72 - -
Guangdong Logistics 13596006.21 - - 13596006.21 - -
Sinopharm Yuexing 243459326.27 - - 243459326.27 - -
Sinopharm Foshan 45995065.51 - - 45995065.51 - -
Sinopharm Guangxi 504048985.28 - - 504048985.28 - -
Sinopharm Zhanjiang 131769864.65 - - 131769864.65 - -
Sinopharm Yanfeng 38207800.00 - - 38207800.00 - -
Sinopharm Meizhou 51281900.00 - - 51281900.00 - -
Sinopharm Huizhou 36644200.00 - - 36644200.00 - -
Sinopharm Zhaoqing 43060000.00 - - 43060000.00 - -
Sinopharm Jiangmen 106000000.00 - - 106000000.00 - -
Sinopharm Zhongshan 30000000.00 - - 30000000.00 - -
Sinopharm Shaoguan 13580000.00 - - 13580000.00 - -
Sinopharm Shantou 23990000.00 - - 23990000.00 - -
Guangdong South
Pharmaceutical Foreign
Trade Co. Ltd. 401922987.18 - - 401922987.18 - -
Guangdong Uptodate &
Special Medicines 144682822.34 - - 144682822.34 - -
Guoda Pharmacy 1361800110.06 - - 1361800110.06 - -
Foshan Nanhai Medicine
Co. Ltd. 462682298.01 - - 462682298.01 - -
Maoming Yogshen 8300000.00 - - 8300000.00 - -
Sinopharm Zhuhai 37162697.28 - - 37162697.28 - -
5594679427.58 - - 5594679427.58 - -
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
163
XIV Notes to key items of the company financial statements (Continued)
3. Long-term equity investments (Continued)
(b)
Movement
31 December
2017 Investment
Profit or loss under
the equity method
Other changes in
equity
Dividend
declared
Other 30 June 2018
Provision of
impairment
Main Luck
Pharmaceutical 239046738.14 - 29983887.32 - - - 269030625.46 -
Zhijun Suzhou 39930000.00 - - - - - 39930000.00 39930000.00
Zhijun Medicine 291042921.20 - 61373560.78 - (58111254.57) - 294305227.41 -
Zhijun Trade 7676142.69 - 853674.01 - (664795.03) - 7865021.67 -
Pingshan Medicine 68686804.33 - 15453485.62 - (9719480.71) - 74420809.24 -
Shanghai Shyndec
Pharmaceutical
Co. Ltd. 979174050.62 - 65661682.41 397342.21 (8641853.20) 193639.30 1036784861.34 -
Shanghai Dingqun
Enterprise
Management
Consulting Co.
Ltd. - 20000000.00 - - - - 20000000.00 -
1625556656.98 20000000.00 173326290.14 397342.21 (77137383.51) 193639.30 1742336545.12 39930000.00
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Notes to financial statements (Continued)
For the six months ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
18
XIV Notes to key items of the company financial statements (Continued)
4. Sales and cost of sales
For the six months ended
30 June 2018
For the six months ended
30 June 2017
Revenue Cost Revenue Cost
main
operations 1681220169.43 1612710688.13
1652563177.90 1597779406.09
Other
operating 6401186.40 2006785.78
6037641.06 2868183.37
1687621355.83 1614717473.91 1658600818.96 1600647589.46
5. Investment income
For the six month ended
30 June 2018
For the six month ended
30 June 2017
Gain on long-term equity investment
under cost method 361514454.32 352522001.40
Gain on long-term equity investment
under equity method (Note
XIV(3)(b)) 173326290.14 155838740.45
Investment income from disposal of
other long-term equity investments - -
534840744.46 508360741.85
There is no major restriction on the collection of the gains on investments.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Supplementary information to financial statements
For the six months ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
18
Supplementary information to financial statements
1. Schedule of non-recurring profit or loss
Amount for 30 June 2018 Illustration
Gains and losses from disposal of non-current assets
including write off of accrued asset impairment 4254942.60
Mainly contains income
from disposal of intangible
assets of Sinopharm
Guangxi Logistics.Government grants recognized in income statement for the
current year except for those closely related to the ordinary
operation of the Company which the Group enjoyed constantly
according to the allotment standards or quantitative criteria of
the country 11938416.85
Mainly contains tax
subsidies and financial
incentives received during
current period
Net profit and loss arising from the subsidiaries acquired in the
business combinations involving enterprises under common
control for the period from the beginning of the reporting period
to the combination date 729.29
Mainly contains income
arising from the acquisition
of Sinopharm Holding
Guangzhou Huadu Co.Ltd.Reversal of bad debt provision for accounts receivable that were
tested for impairment individually 4203173.20
Mainly contains the
recovery of impairment
provision for receivables
individually significat during the
current period
Profit or loss from outward entrusted borrowings 1549650.99
Income from entrusted management services 2377946.75
Less:Impact on income tax 5505057.19
Impact on non-controlling interests after tax 389106.90
18430695.59
Basis for preparation of detailed list of non-recurring profit or loss items:
Under the requirements in Explanatory announcement No. 1 on information disclosure by companiesoffering securities to the public – non-recurring profit or loss (2008) (“Explanatory announcement
No.1”) from CSRC nonrecurring profit or loss refer to those arising from transactions and events that
are not directly relevant to ordinary business or that are relevant to ordinary business but are so
extraordinary that would have an influence on users of financial statements making proper judgments
on the performance and profitability of an enterprise.
CHINA NATIONAL ACCORD MEDICINES CORPORATION LTD.
Appendix(Continued)
For the six months ended 30 June 2018
(All amounts in Renminbi “RMB” unless otherwise stated)
2
Supplementary information to financial statements (Continued)
2. Return on equity (“ROE”) and earnings per share (“EPS”)
Weighted
average
ROE (%)
Basic EPS (RMB/Share)
Basic
EPS(RMB/Share)
Diluted
EPS(RMB/Share)
Net profit attributable to ordinary
shareholders of the parent
6.64% 1.50 1.50
Net profit after deducting non-recurring
profit or loss attributable to the
Company’s ordinary shareholders of the
parent
6.45% 1.46 1.46
The above-mentioned return on net assets and earnings per share were calculated according to the
Information Disclosure and Presentation Rules for Companies Making Public Offering of Securities No.9
– Calculation and Disclosure of Return on Net Assets and Earnings Per Share (revision 2010) issued by
the CSRC.Note 1: There were no potential dilutive ordinary shares for the six months ended 30 June 2018 hence
no presentation of diluted EPS were provided.Section XI. Documents Available for Reference
1. Accounting Statements carried with the signature and seals of legal representative chief financial officer
and person in charge of accounting;
2. Original text of all documents of the Company as well as manuscript of the announcement disclosed in
reporting period on Securities Times China Securities Journal and Hong Kong Commercial Daily appointed
by the CSRC;
3. The Place Where the document placed: Office of Secretariat of the Board of Directors Accord Pharm
Bldg. No. 15 Ba Gua Si Road Futian District Shenzhen
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